Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

v3.3.1.900
Fair Value Measurements
12 Months Ended
Dec. 31, 2015
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]  
Fair Value Measurements
Fair Value Measurements
Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels which are directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows:
Level 1 — Inputs that are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2 — Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.
We determine the fair value of Level 1 assets using quoted prices in active markets for identical assets. We classify our investment in CO2 Solutions as Level 2 assets due to the volatile and low trading volume on TSX Venture Exchange in Canada. See also Note 5 - Cash Equivalents and Marketable Securities. There were no transfers between Level 1 and Level 2 securities in the periods presented.
The following table presents the financial instruments that were measured at fair value on a recurring basis at December 31, 2015 and 2014 by level within the fair value hierarchy (in thousands): 
 
December 31, 2015
Financial Assets
Level 1
 
Level 2
 
Level 3
 
Total
Money market funds
$
11,120

 
$

 
$

 
$
11,120

Common shares of CO2 Solutions (1)

 
1,549

 

 
1,549

Total
$
11,120

 
$
1,549

 
$

 
$
12,669

 
December 31, 2014
Financial Assets
Level 1
 
Level 2
 
Level 3
 
Total
Money market funds
$
14,602


$

 
$


$
14,602

Common shares of CO2 Solutions (1)


688

 

 
688

Total
$
14,602

 
$
688

 
$

 
$
15,290


(1)
We estimated the fair value of our investment in 10,000,000 common shares of CO2 Solutions using the market value of common shares as determined by trading on the TSX Venture Exchange.