Nutrisystem 2015 Annual Report Download - page 54

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4. FAIR VALUE MEASUREMENTS
A three-tier fair value hierarchy has been established by the FASB to prioritize the inputs used in measuring fair
value. These tiers are as follows:
Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets.
Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted
prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and
liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable
market data.
Level 3—Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with
reasonably available assumptions made by other market participants. These valuations require significant
judgment.
The fair values of the Company’s Level 1 instruments are based on quoted prices in active exchange markets for
identical assets. The Company had no Level 2 or 3 instruments at December 31, 2015 and 2014.
The following table summarizes the Company’s financial assets measured at fair value at December 31, 2015:
Total Fair Value
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
Money market funds ........................................... $ 301 $ 301
Government and agency securities ................................ 6,217 6,217
Corporate debt securities ....................................... 3,100 3,100
Total assets .................................................. $9,618 $9,618
The following table summarizes the Company’s financial assets measured at fair value at December 31, 2014:
Total Fair Value
Quoted Prices in Active
Markets for Identical
Assets (Level 1)
Money market funds ........................................... $ 149 $ 149
Government and agency securities ................................ 9,935 9,935
Corporate debt securities ....................................... 6,692 6,692
Total assets .................................................. $16,776 $16,776
5. FIXED ASSETS
Fixed assets consist of the following:
December 31,
2015 2014
Furniture and fixtures ............................................. $ 5,701 $ 5,673
Computer hardware and software .................................... 68,387 59,035
Equipment ...................................................... 3,326 2,621
Leasehold improvements .......................................... 11,367 11,357
88,781 78,686
Accumulated depreciation ......................................... (57,932) (51,835)
$ 30,849 $ 26,851
50