Fair Value Measurements

The Company’s valuation techniques are based on maximizing observable inputs and minimizing the use of unobservable inputs when measuring fair value. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect the Company’s market assumptions. The inputs are then classified into the following hierarchy: (1) Level 1 Inputs—quoted prices in active markets for identical assets and liabilities; (2) Level 2 Inputs—observable market-based inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities in active markets, quoted prices for similar or identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and (3) Level 3 Inputs—unobservable inputs.

The following details the Company’s financial assets and liabilities within the fair value hierarchy at
March 31, 2015, and December 31, 2014:

Fair Values Measured on a Recurring Basis

	Level 1		Level 2		Level 3		Total
	(In thousands)
As of March 31, 2015
Money Market Funds	$	8,140		--		--	$	8,140
Commercial Paper		27,921		--		--		27,921
Total	$	36,061		--		--	$	36,061

As of December 31, 2014
Money Market Funds	$	9,442		--		--	$	9,442
Commercial Paper		29,686		--		--		29,686
Total	$	39,128		--		--	$	39,128

The Company’s long-term debt is recorded at historical cost. The following are the carrying amounts and estimated fair values, based primarily on estimated current rates available for debt of the same remaining duration and adjusted for nonperformance and credit risk:

	March 31, 2015		December 31, 2014
	(In thousands)
Total carrying amounts of long-term debt	$	7,492	$	8,068
Estimated fair value of long-term debt	$	7,465	$	7,997

The Company estimated the fair value of its long-term, fixed-rate debt using a Level 2 discounted cash flow analysis based on current borrowing rates for debt with similar maturities

The Company believes that the carrying amounts of trade accounts receivable, accounts payable and accrued expenses approximate their fair value due to the short maturity of those instruments. Other current assets were written down by $657,000 for impairment on the option for a potential acquisition due to an extension on the option that decreased the probability of the exercise, as well as changed the terms in the arrangement that decreased the value of the option. All non-financial assets that are not recognized or disclosed at fair value in the financial statements on a recurring basis, which includes goodwill and non-financial long-lived assets, are measured at fair value in certain circumstances (for example, when there is evidence of impairment). As of March 31, 2015, and December 31, 2014, there was no indication of impairment related to the Company’s non-financial assets.