Fair Value Measurements

9 Months Ended

Sep. 30, 2013

Fair Value Measurements [Abstract]

Fair Value Measurements

(4) Fair Value Measurements

Our financial instruments include cash and cash equivalents, accounts receivable, marketable and non‑marketable securities, accounts payable, debt payable, and certain accrued liabilities.  The carrying amounts of our cash and cash equivalents (which are comprised primarily of deposit and overnight sweep accounts), accounts receivable, accounts payable, and certain accrued liabilities approximate fair value due to the short maturity of these instruments.  The carrying amounts of our marketable equity securities were based on the quoted price of the security in an active market.  The estimated fair values of the non-marketable equity securities have been determined from information obtained from independent valuations and management estimates.  The fair value of our Term Loan, which replaced our Notes during the second quarter, was approximately 98.5% of par value as of September 30, 2013, based on quoted prices.  The fair value of our previous Notes was 107.88% of par value as of December 31, 2012.

Current Investment

During the third quarter, we sold an equity security investment for $1,785 that was classified as a Level 1 trading security within other current assets in our condensed consolidated balance sheets.  We recorded a realized gain of $135 within the Other, net line in our statement of operations for the three months ended September 30, 2013.  We recorded an unrealized loss of $366 within the Other, net line in our statement of operations for the nine months ended September 30, 2013.  We recorded an unrealized loss of $76 and an unrealized gain of $982 within the Other, net line in our statements of operations for the three and nine months ended September 30, 2012, respectively.  Previously, we estimated the fair value of this investment on a recurring basis based on the quoted market price of the security.  

Non-Current Investments

At September 30, 2013, we held certain securities in private companies, which are classified within other assets in our condensed consolidated balance sheets.  The investments in equity securities of private companies are classified as Level 3 investments and are reported at cost or equity.  Any loss due to impairment in value is recorded as a realized loss when such loss occurs.  We performed the evaluation of our Level 3 investments as of September 30, 2013, and recorded a realized loss of $12 and $100 for the three and nine months ended September 30, 2013, respectively, based on our proportionate share of the losses from the Level 3 investment that we account for under the equity method of accounting.

During the third quarter, we wrote off an investment in a publicly traded company as the company filed bankruptcy and trading of the stock was halted.  The investment in the publicly traded equity security, over which we do not exert significant influence, was classified as available-for-sale and reported at fair value on a recurring basis using Level 1 inputs.  Unrealized gains and losses were reported within the accumulated other comprehensive income component of shareholders’ equity.  As a result of the bankruptcy filing, we recorded an unrealized loss of $10 within other comprehensive income for the three months ended September 30, 2013 and reclassified $454 from accumulated other comprehensive income into the Other, net line in our statements of operations for the three and nine months ended September 30, 2013, respectively.

The following table sets forth the change in the fair value of our investments for the periods indicated:

	Level 1			Level 2			Level 3			Total
Balance at December 31, 2012	$	56		$	2,016		$	553		$	2,625
Unrealized gain (loss)		19			(441	)		-			(422	)
Realized gain (loss)		135			-			(100	)		35
Level inputs transfer		1,575			(1,575	)		-			-
Sale of investment		(1,785	)		-			-			(1,785	)
Balance at September 30, 2013	$	-		$	-		$	453		$	453

Unrealized gains or losses on our available-for-sale (publicly traded) security, as well as foreign currency translation adjustments, are components of accumulated other comprehensive income as set forth in the following table:

	Three Months Ended September 30, 2013
	Cumulative  Translation Adjustment			Unrealized Losson Available- For-Sale Security, Net of Tax			Accumulated Other Comprehensive Income
Balance - beginning of period	$	1,975		$	(444	)	$	1,531
Other comprehensive income before reclassification		(230	)		(10	)		(240	)
Amounts reclassified from accumulated other comprehensive income		-			454			454
Net current period other comprehensive income		(230	)		444			214
Balance - end of period	$	1,745		$	-		$	1,745
	Nine Months Ended September 30, 2013
	Cumulative Translation Adjustment			Unrealized Losson Available- For-Sale Security, Net of Tax			Accumulated Other Comprehensive Income
Balance - beginning of period	$	1,965		$	(398	)	$	1,567
Other comprehensive income before reclassification		(220	)		(56	)		(276	)
Amounts reclassified from accumulated other comprehensive income		-			454			454
Net current period other comprehensive income		(220	)		398			178
Balance - end of period	$	1,745		$	-		$	1,745