8x8 2013 Annual Report Download - page 60

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58
The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs
used to measure fair value by requiring that the most observable inputs be used when available. A financial instrument’s
categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value
measurement. The fair value hierarchy is as follows:
• Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or
liabilities that the Company has the ability to access at the measurement date.
• Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in
active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent
transactions (less active markets).
• Level 3 applies to assets or liabilities for which fair value is derived from valuation techniques in which one or more
significant inputs are unobservable, including the Company’s own assumptions.
The following table presents the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring
basis at March 31, 2013 and 2012 (in thousands):
Quoted Prices
in Active
Markets Other Significant
for Identical Observable Unobservable Balance at
Assets Inputs Inputs March 31,
(Level 1) (Level 2) (Level 3) 2013
Cash equivalents:
Money market funds $ 14,376 $ - $ - $ 14,376
Short-term investments:
Mutual funds 1,964 - - 1,964
Total $ 16,340 $ - $ - $ 16,340
Quoted Prices
in Active
Markets Other Significant
for Identical Observable Unobservable Balance at
Assets Inputs Inputs March 31,
(Level 1) (Level 2) (Level 3) 2012
Cash equivalents:
Money market funds $ 14,366 $ - $ - $ 14,366
Short-term investments:
Mutual funds 1,942 - - 1,942
Total $ 16,308 $ - $ - $ 16,308