Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Assets Measured at Fair Value on Recurring Basis

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


	Using						Total Fair Value as of September 30, 2014
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value as of September 30, 2014
Cash Equivalents:
Money market funds	$	11,861	$	—	$	—	$	11,861
Short-term investments:
Brokered certificates of deposit		—		541		—		541
Long-term investments:
Failed Auction Securities		—		—		4,964		4,964
Brokered certificates of deposit		—		170		—		170

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 September 30, 2014 are as follows (dollars in thousands):


	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
Failed Auction Securities	$	4,964	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	73.05% - 95.15% (84.10%)
				Cumulative probability of default	4.84% - 26.88% (15.86%)
				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 nine months ended September 30, 2014 (in thousands):


Balance at the beginning of the period	$	4,825
Credit gain on available-for-sale securities included in Other income (expense), net		39
Unrealized gain included in Other comprehensive income (loss)		100

Balance at the end of the period	$	4,964