Fair Value Measurements
 9 Months Ended
Sep. 30, 2012
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 September 30, 2012 and December 31, 2011:

 

     Level 1      Level 2      Level 3      Totals  
     (in thousands)  

At September 30, 2012

            

Equity securities

    $ 5,689       $ —         $ —         $ 5,689   

Fixed income securities

      —           5,014        —           5,014   

Short-term securities

      1,111         —           —           1,111   

Managed mutual funds

      208         —           —           208   

U.S. Treasury Notes

      —           608         —           608   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 7,008       $ 5,622       $ —         $ 12,630   
  

 

 

     

 

 

     

 

 

     

 

 

  

At December 31, 2011

            

Equity securities

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

Short-term securities

      636         —           —           636   

Managed mutual funds

      740         —           —           740   

U.S. Treasury Notes

      —           610         —           610   
  

 

 

     

 

 

     

 

 

     

 

 

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

 

 

     

 

 

     

 

 

     

 

 

  

There were no Level 3 securities held by the Company at September 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 securities during the nine months ended September 30, 2012.