We have categorized our cash equivalents and our investments held at fair value into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique for the cash equivalents and investments as follows: Level 1 - Values based on unadjusted quoted prices for identical assets or liabilities in an active market; Level 2 - Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly;  Level 3 - Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the  overall fair value measurement. These inputs include information supplied by investees. Fair Value Measurements at December 31, 2013 Using Fair Value Measurements at December 31, 2012 Using Our investment policy includes various guidelines and procedures designed to ensure assets are invested in a manner necessary to meet expected future benefits earned by participants. The investments guidelines consider a broad range of economic conditions. Central to the policy are target allocation ranges by asset class, which is currently 75% for bond funds  and 25% for equity funds. The objectives of the target allocations are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the plans’ actuarial assumptions, and achieve asset returns that are competitive with like institutions employing similar investment strategies. The investment policy is periodically reviewed by us and a designated third-party fiduciary for investment matters. The  policy is established and administered in a manner that is compliant at all times with applicable government regulations. ADTRAN 2013 Annual Report 62  (In thousands)  Fair Value Quoted Prices  in Active  Markets for Identical  Assets (Level 1) Significant Other  Observable  Inputs  (Level 2) Significant  Unobservable  Inputs  (Level 3) Cash equivalents $4 $4  $— $— Available-for-sale securities Bond funds Corporate bonds 12,976 12,976 — — Government bonds 1,915 1,915 —  — Equity funds Large cap blend 4,720 4,720 — — Large cap value 287 287 — — Balanced fund 871 871 — — Available-for-sale securities 20,769 20,769 — — Total  $20,773 $20,773 $— $—  (In thousands)  Fair Value Quoted Prices  in Active  Markets for Identical  Assets (Level 1) Significant Other  Observable  Inputs  (Level 2) Significant  Unobservable  Inputs  (Level 3) Cash equivalents $6 $6  $— $— Available-for-sale securities Bond funds Corporate bonds 12,041 12,041 — — Government bonds 1,839 1,839 —  — Equity funds Large cap blend 3,740 3,740 — — Large cap value 235 235 — — Balanced fund 759 759 — — Available-for-sale securities 18,614 18,614 — — Total  $18,620 $18,620 $— $—