12. FAIR VALUE MEASUREMENTS
The various inputs used to measure assets at fair value establish a hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three broad levels as follows:
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1. |
Level 1 – Quoted market prices in active markets for identical assets or liabilities. |
|
2. |
Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
|
3. |
Level 3 – Unobservable inputs developed using the Company’s estimates and assumptions, which reflect those that market participants would use. |
The following table summarizes the valuation of financial instruments measured at fair value on a recurring basis on the balance sheet as of March 31, 2018 and December 31, 2017:
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|
Fair Value Measurements at March 31, 2018 with: |
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|
|
|
| |
|
|
|
|
|
|
| (in thousands) |
|
Total |
|
|
Quoted prices in
active markets
for
identical assets |
|
|
Significant
other
observable
inputs |
|
|
Significant
unobservable
inputs
|
|
| |
|
|
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Municipal Obligations |
|
$ |
9,764 |
|
|
$ |
— |
|
|
$ |
9,764 |
|
|
$ |
— |
|
| Corporate Obligations |
|
|
1,748 |
|
|
|
— |
|
|
|
1,748 |
|
|
|
— |
|
| |
|
$ |
11,512 |
|
|
$ |
— |
|
|
$ |
11,512 |
|
|
$ |
— |
|
| Investments measured at Net Asset Value - Trading securities |
|
$ |
5,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Fair Value Measurements at December 31, 2017 with: |
|
|
|
|
| |
|
|
|
|
|
|
| (in thousands) |
|
Total |
|
|
Quoted prices in
active markets
for
identical assets
|
|
|
Significant
other
observable
inputs
|
|
|
Significant
unobservable
inputs
|
|
| |
|
|
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available-for-sale debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Municipal Obligations |
|
$ |
13,031 |
|
|
$ |
— |
|
|
$ |
13,031 |
|
|
$ |
— |
|
| Corporate Obligations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
$ |
13,031 |
|
|
$ |
— |
|
|
$ |
13,031 |
|
|
$ |
— |
|
| Investments measured at Net Asset Value - Trading securities |
|
$ |
6,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The carrying amount of other financial instruments reported in the consolidated balance sheets for current assets and current liabilities approximate their fair values because of the short-term nature of these instruments.
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