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## Valuation Methods for Financial Instruments Measured at Fair Value on a Recurring Basis 

The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis at December 31, 2012 and 2011 allocated to the appropriate fair value hierarchy: 

<img src='content_image/154288.jpg'>

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The following table reconciles the changes in the Company’s Level 3 financial instruments during 2012: 

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Changes in the fair value of available-for-sale securities are included in other comprehensive income to the extent the changes are not considered other-than-temporary impairments. Other-than-temporary impairment tests are performed on a quarterly basis and any decline in the fair value of an individual security below its cost that is deemed to be other-than- temporary results in a write-down of that security’s cost basis. 

