Fair Value Measurements

6 Months Ended

Jun. 30, 2011

Fair Value Measurements

Fair Value Measurements

4.    FAIR VALUE MEASUREMENTS

Assets Measured at Fair Value on a Recurring Basis

The Company's assets and liabilities measured at fair value on a recurring basis are classified within the fair value hierarchy as follows:

Level 1	-	Quoted prices in active markets for identical assets or liabilities.
Level 2	-	Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

The Company's cash equivalents and marketable securities are classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices, or broker dealer quotations and matrix pricing compiled by third party pricing vendors, respectively. The Company's marketable securities and forward foreign currency contracts are valued based on a market approach in which all significant inputs are observable or can be derived from or corroborated by observable market data such as interest rates, yield curves, and credit risk.

Assets and liabilities measured at fair value on a recurring basis were as follows:

			Fair Value Measurements at Reporting     Date Using
(in thousands)	June 30, 2011		Quoted Prices in  Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
ASSETS
Money market funds	$	8,227	$	8,227	$	—
Marketable securities:
Municipal bonds	$	16,802	$	7,528	$	9,274
Government sponsored enterprise bonds		10,002		—		10,002
Corporate bonds		4,831		4,831		—
Commercial paper		999		—		999
Total marketable securities	$	32,634	$	12,359	$	20,275
LIABILITIES
Forward foreign currency contracts	$	120	$	—	$	120

(in thousands)	December 31, 2010		Fair Value Measurements at Reporting     Date Using
			Quoted Prices in  Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Money market funds	$	14,342	$	14,342	$	—
Marketable securities:
Government sponsored enterprise bonds	$	5,593	$	-	$	5,593
Corporate bonds		5,419		5,419		—
Commercial paper		2,998		—		2,998
Municipal bonds		2,114		—		2,114
Total marketable securities	$	16,124	$	5,419	$	10,705

Assets Measured at Fair Value on a Nonrecurring Basis

Assets not recorded at fair value on a recurring basis, such as property and equipment and intangible assets, are recognized at fair value when they are impaired. During the first six months of 2011 and 2010, the Company did not recognize any nonrecurring fair value measurements from impairments. The Company recorded assets acquired and liabilities assumed related to its acquisition of Chordiant at fair value as described in Note 6 "Acquisition, Goodwill, and Other Intangible Assets."