Fair Value Measurements
 6 Months Ended
Jun. 30, 2012
Fair Value Measurements [Abstract]  
Fair Value Measurements

Note 5—Fair Value Measurements

In accordance with current accounting standards, fair value is defined as the price that the Company would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. A fair value hierarchy is provided that gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

The following three-tier fair value hierarchy prioritizes the inputs used in measuring fair value:

Level 1—observable inputs such as quoted prices in active markets for identical securities;

Level 2—other significant observable inputs (including but not limited to quoted prices for similar securities, interest rates, prepayment rates, credit risk, etc.); and

Level 3—significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments).

 

The following provides the hierarchy of inputs used to derive the fair value of the Company’s assets as of June 30, 2012 and December 31, 2011:

 

                                 
    Level 1     Level 2     Level 3     Totals  
    (in thousands)  

At June 30, 2012

                                

Equity securities

   $ 4,243     $ 1,501     $ —       $ 5,744  

Short-term securities

     800       —         —         800  

Managed mutual funds

     778       —         —         778  

U.S. Treasury Note (0.375%, 9/30/2012)

     —         506       —         506  

U.S. Treasury Note (1.75%, 1/31/2014)

     —         103       —         103  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 5,821     $ 2,110     $ —       $ 7,931  
   

 

 

    

 

 

    

 

 

    

 

 

  

At December 31, 2011

                                

Equity securities

   $ 2,656     $ —       $ —       $ 2,656  

Short-term securities

     636       —         —         636  

Managed mutual funds

     740       —         —         740  

U.S. Treasury Note (0.375%, 9/30/2012)

     —         506       —         506  

U.S. Treasury Note (1.75%, 1/31/2014)

     —         104       —         104  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 4,032     $ 610     $ —       $ 4,642  
   

 

 

    

 

 

    

 

 

    

 

 

  

There were no Level 3 securities held by the Company as of June 30, 2012 or December 31, 2011.

The Company’s policy is to recognize transfers in and transfers out of the valuation levels as of the beginning of the reporting period. There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2012.