The

 

Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. This standard also establishes a hierarchy for inputs used in measuring fair value. This standard maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available in the circumstances.

 

The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into levels. Level inputs are quoted prices in active markets for identical assets or liabilities. Level inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level inputs are unobservable for the asset or liability and their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least significant model assumption or input is unobservable. Level also include certain investment securities for which there is limited market activity or a decrease in the observability of market pricing for the investments, such that the determination of fair value requires significant judgment or estimation.

The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):

 

		Total carrying value as of				Fair Value Measurements Using Inputs Considered as
		September 3 0 , 2017				Level 1				Level 2				Level 3
Assets
Equity securities (1)		$	47,247			$	47,247			$	-			$	-
Liabilities
Contingent Consideration		$	40,900			$	-			$	-			$	40,900

 

		Total carrying value a s of				Fair Value Measurements Using Inputs Considered as
		June 30, 2017				Level 1				Level 2				Level 3
Assets
Equity securities (1)		$	59,616			$	59,616			$	-			$	-
Corporate bond securities (1)			2,057				-				2,057				-
Total Assets		$	61,673			$	59,616			$	2,057			$	-
Liabilities
Contingent Consideration		$	68,400			$	-			$	-			$	68,400

 

 

Our available for sale securities are measured at fair value using quoted market prices in active markets for identical assets and are therefore classified as Level assets. We value our Level assets using inputs that are based on market indices of similar assets within an active market.

 

The use of different assumptions, applying different judgment to matters that inherently are subjective and changes in future market conditions could result in different estimates of fair value of our securities or contingent consideration, currently and in the future. If market conditions deteriorate, we incur impairment charges for securities in our investment portfolio. We also incur changes to our contingent consideration liability as discussed below.

 

In connection with the Advanced Cell Diagnostics  During the

 

The following table presents a reconciliation of the liability measured at fair value on a recurring basis using significant unobser

 

		Quarter Ended
		September 30, 2017
Fair value at the beginning of period		$	68,400
P ayments			(35,000	)
Change in fair value of contingent consideration			7,500
Fair value at the end of period		$	40,900

 

 

Cash and cash equivalents,

 

Long-term debt