Fair Value of Investments

12 Months Ended

Dec. 31, 2013

Fair Value of Investments [Abstract]

Fair Value of Investments

(4)Fair Value of Investments

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 carrying value of our  long-term debt recognized in the consolidated balance sheets as of December 31, 2013 and 2012, was approximately $236,432 and $250,046, respectively, while the fair value of long-term debt as of December 31, 2013 and 2012, was approximately $226,789  and $271,858,  respectively, based on Level 2 inputs consisting of quoted market prices for the same issues.  See Note 6 for further discussion of our debt.

Current Investment

During 2013, we sold an equity security investment for $1,785 that was classified as a Level 1 trading security within Other current assets in our consolidated balance sheets.  We recorded a realized loss of $231 within the Other, net line in our statement of operations for the year ended December 31, 2013.  This equity security investment was transferred from level 2 to level 1during 2013 upon the lapse of a trading restriction.

We acquired this equity security investment in the second quarter of 2012 from a customer as settlement for purchase commitments and outstanding receivables associated with a contract.  This equity investment was classified as a Level 2 trading security within other current assets in our consolidated balance sheets.  We estimated the fair value of this investment on a recurring basis bases using the quoted market price of the security less a discount due to a trading restriction.  The valuation technique for this level 2 investment utilized qualitative and quantitative methodologies including other publicly traded companies and option pricing models.  We initially estimated the fair value of this investment to be $1,530.  At December 31, 2012, we re-estimated the fair value of this investment and recorded a gain of $486 within the other, net line in our statements of operations for the twelve months ended December 31, 2012.  The carrying value of this investment was $2,016 at December 31, 2012.

Non-Current Investments

At December 31, 2013, we held certain securities in private companies, which are classified within other assets in our consolidated balance sheets.  The investments in equity securities of private companies are classified as Level 3 investments and are reported at cost or on an equity basis.  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 December 31, 2013, and recorded a realized loss of $100 for the year ended December 31, 2013, 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 of 2013, 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.  We recorded an unrealized loss of $56 net of tax within other comprehensive income for the year ended December 31, 2013 and reclassified $454 from accumulated other comprehensive income to our statement of operations with a $414 realized loss included in the Other, net line in our statements of operations for the year ended December 31, 2013 and the balance of $40 included in tax expense.

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, 2010	$	55		$	-		$	313		$	368
Unrealized gain (loss)		51			-			-			51
Balance at December 31, 2011		106			-			313			419
Unrealized gain (loss)		(50	)		486			-			436
Acquired investments		-			1,530			240			1,770
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 December 31, 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:

	Cumulative Translation Adjustment			Unrealized Gain (Loss)on Available-For-Sale Security, Net of Tax			Accumulated Other Comprehensive Income
Balance at December 31, 2010	$	1,936		$	(392	)	$	1,544
Net current period other comprehensive income		25			44			69
Balance at December 31, 2011		1,961			(348	)		1,613
Net current period other comprehensive income (loss)		4			(50	)		(46	)
Balance at December 31, 2012		1,965			(398	)		1,567
Other comprehensive loss before reclassification		(103	)		(56	)		(159	)
Amounts reclassified from accumulated other comprehensive income		-			454			454
Net current period other comprehensive income (loss)		(103	)		398			295
Balance at December 31, 2013	$	1,862		$	-		$	1,862