Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Fair Value Measurement

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Note 11 - Fair Value Measurement
3 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
(11)
Fair Value Measurements
 
We determine fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value is calculated based on assumptions that market participants use in pricing the asset or liability, and not on assumptions specific to the Company. In addition, the fair value of liabilities includes consideration of non-performance risk including our own credit risk. Each fair value measurement is reported in one of three levels, determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:
 
Level 1      Inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.
 
Level 2      Inputs are based upon 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.
 
Level 3      Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.
 
The following section describes the valuation methodologies we use to measure different financial assets and liabilities at fair value.
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
The following table presents our assets and liabilities measured at fair value on a recurring basis at September 30, 2016 and June 30, 2016 (in thousands):
 
 
September 30, 2016
   
Level 1
   
Level 2
   
Level 3
   
Balance
 
Cash equivalents
  $ 76,556     $ -     $ -     $ 76,556  
Total
  $ 76,556     $ -     $ -     $ 76,556  
 
 
 
June 30, 2016
   
Level 1
   
Level 2
   
Level 3
   
Balance
 
Cash equivalents
  $ 60,479     $ -     $ -     $ 60,479  
Total
  $ 60,479     $ -     $ -     $ 60,479  
 
Cash equivalents consist of money market accounts and mutual funds in U.S. government and agency fixed income securities. We use quoted prices in active markets for identical assets or liabilities to determine fair value. There were no transfers between level 1 and level 2 during the first three months of fiscal 2017 or fiscal 2016. At September 30, 2016 and June 30, 2016, $7.3 million and $7.8 million, respectively, of the cash equivalents were restricted, and classified as long-term assets.
 
No investments have been in a continuous loss position for more than one year, and no other-than-temporary impairments were recognized. See also Note 4, "Restricted Cash and Investments" .
 
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis
 
We measure certain assets at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. During the three month period ended September 30, 2016, we did not record any other-than-temporary impairments on those assets required to be measured at fair value on a non-recurring basis.