Note 3—Fair Value Measurement
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The tables below present information at the end of 2013 and 2012, respectively, regarding the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis and indicate the level within the fair value hierarchy reflecting the valuation techniques utilized to determine such fair value.
|
| | | | | | | |
2013: | Level 1 | | Level 2 |
Money market mutual funds(1) | $ | 87 |
| | $ | 0 |
|
Investment in government and agency securities(2) | 0 |
| | 1,263 |
|
Investment in corporate notes and bonds | 0 |
| | 9 |
|
Investment in asset and mortgage-backed securities | 0 |
| | 5 |
|
Forward foreign-exchange contracts, in asset position(3) | 0 |
| | 3 |
|
Forward foreign-exchange contracts, in (liability) position(3) | 0 |
| | (3 | ) |
Total | $ | 87 |
| | $ | 1,277 |
|
|
| | | | | | | |
2012: | Level 1 | | Level 2 |
Money market mutual funds(1) | $ | 77 |
| | $ | 0 |
|
Investment in U.S. government and agency securities(2) | 0 |
| | 794 |
|
Investment in corporate notes and bonds | 0 |
| | 54 |
|
Investment in FDIC-insured corporate bonds | 0 |
| | 35 |
|
Investment in asset and mortgage-backed securities | 0 |
| | 8 |
|
Forward foreign-exchange contracts, in asset position(3) | 0 |
| | 1 |
|
Forward foreign-exchange contracts, in (liability) position(3) | 0 |
| | (3 | ) |
Total | $ | 77 |
| | $ | 889 |
|
_______________
| |
(1) | Included in cash and cash equivalents in the accompanying consolidated balance sheets. |
| |
(2) | There were no securities included in cash and cash equivalents and $1,263 included in short-term investments in the accompanying consolidated balance sheets at the end of 2013. $12 and $782 included in cash and cash equivalents and short-term investments, respectively, in the accompanying consolidated balance sheets at the end of 2012. |
| |
(3) | The asset and the liability values are included in deferred income taxes and other current assets and other current liabilities, respectively, in the accompanying consolidated balance sheets. See Note 1 for additional information on derivative instruments. |
At the end of 2013, the Company did not hold any Level 3 financial assets and liabilities that were measured at fair value on a recurring basis. At the end of 2012, the Company's holdings of Level 3 financial assets and liabilities were immaterial. There were no financial assets and liabilities measured on a recurring basis using significant unobservable inputs (Level 3) during 2013, and they were immaterial during 2012. There were no transfers in or out of Level 1, 2, or 3 during 2013 and 2012.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Financial assets measured at fair value on a nonrecurring basis include held-to-maturity investments that are carried at amortized cost and are not remeasured to fair value on a recurring basis. There were no fair value adjustments to these financial assets during 2013 and 2012. See Note 4 for discussion on the fair value of long-term debt.
Nonfinancial assets measured at fair value on a nonrecurring basis include items such as long-lived assets that are measured at fair value resulting from an impairment, if deemed necessary. Fair value adjustments to these nonfinancial assets and liabilities during 2013 and 2012 were immaterial.
