Fair Value Of Financial Instruments

6 Months Ended

Jun. 30, 2014

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

Note 3.  Fair Value of Financial Instruments

We measure assets and liabilities at fair value based on an exit price as defined by the FASB guidance on fair value measurements, which represents the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:

• Level 1 - Quoted prices in active markets for identical assets or liabilities;

• Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.;

• Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

We measure the following financial assets at fair value on a recurring basis. The fair value of these financial assets as of June 30, 2014 (in thousands) is as follows:

			Fair Value at  Reporting Date Using
				Quoted
				Prices in
				Active
				Markets		Significant
				for		Other		Significant
				Identical		Observable		Unobservable
	June 30,			Assets		Inputs		Inputs
	2014			(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents:
Cash	$	31,472		$	31,472	$	-	$	-
Money market funds		10			10		-		-
Total cash and cash equivalents	$	31,482		$	31,482	$	-	$	-
Fixed income securities
Certificates of deposits	$	1,361		$	-	$	1,361	$	-
Corporate bonds - financial		9,458			-		9,458		-
Corporate bonds - industrial		1,647			-		1,647		-
Total fixed income securities	$	12,466		$	-	$	12,466	$	-

 Level 2 securities are priced using quoted market prices for similar instruments, nonbinding market prices that are corroborated by observable market data, or discounted cash flow techniques.

The fair value of accounts receivable and accounts payable for all periods presented approximates their respective carrying amounts due to the short-term nature of these balances.