Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis include the following as of June 30, 2014 (in thousands):


	Using
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value as of June 30, 2014
Cash Equivalents:
Money market funds	$	12,041	$	—	$	—	$	12,041
Short-term investments:
Brokered certificates of deposit		—		642		—		642
Long-term investments:
Failed Auction Securities		—		—		4,904		4,904
Brokered certificates of deposit		—		91		—		91

Assets measured at fair value on a recurring basis include the following as of December 31, 2013 (in thousands):


	Using
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value as of December 31, 2013
Cash Equivalents:
Money market funds	$	12,407	$	—	$	—	$	12,407
Short-term investments:
Brokered certificates of deposit		—		463		—		463
Long-term investments:
Failed Auction Securities		—		—		4,825		4,825
Brokered certificates of deposit		—		363		—		363

Quantitative Information about Level 3 Fair Value Measurements

Quantitative information about Level 3 fair value measurements as of June 30, 2014 are as follows (dollars in thousands):


				Range
		Valuation	Unobservable	(Weighted
	Fair Value	Technique	Input	Average)
Failed Auction Securities	$4,904	Discounted cash flow	Cumulative probability of earning the maximum rate until maturity	0.01% - 0.07% (0.04%)
			Cumulative probability of principal return prior to maturity	72.02% - 94.82% (83.42%)
			Cumulative probability of default	5.17% - 27.92% (16.55%)
			Liquidity risk premium	5.00% - 5.00% (5.00%)
			Recovery rate in default	40.00% - 40.00% (40.00%)

Change in Estimated Fair Values Calculated for Assets Valued on Recurring Basis Utilizing Level 3 Inputs

The following table summarizes the change in the estimated fair values calculated for those assets valued on a recurring basis utilizing Level 3 inputs (i.e., the Failed Auction Securities) for the six months ended June 30, 2014 (in thousands):


Balance at the beginning of the period	$	4,825
Credit gain on available-for-securities included in Other income, net		20
Unrealized gain included in Other comprehensive income (loss)		59

Balance at the end of the period	$	4,904