Fair Value Measurements

3 Months Ended

Mar. 31, 2012

Fair Value Measurements

Note 5. Fair Value Measurements

We measure certain financial assets at fair value on a recurring basis, including cash equivalents, short-term investments, and equity investments of publicly traded companies. The fair value of these financial assets was determined based on three levels of inputs:

• Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities

• Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active

• Level 3: Unobservable inputs that reflect our own assumptions

Items Measured at Fair Value on a Recurring Basis

The following table presents information about our financial assets that have been measured at fair value on a recurring basis as of March 31, 2012, and December 31, 2011, and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands).

	Fair Value Measurements as of March 31, 2012
	Total		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	11,347	$	11,347	$	0	$	0
Corporate notes and bonds		18,550		18,550		0		0
Short-term investments:
Corporate notes and bonds		46,524		46,524		0		0
U.S. government agency securities		37,157		37,157		0		0
Restricted cash equivalents and investments		10,173		10,173		0		0
Equity investments:
Publicly traded investments		45,630		45,630		0		0
Total	$	169,381	$	169,381	$	0	$	0

	Fair Value Measurements as of December 31, 2011
	Total		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	6,544	$	6,544	$	0	$	0
Corporate notes and bonds		20,697		20,697		0		0
Short-term investments:
Corporate notes and bonds		39,254		39,254		0		0
U.S. government agency securities		39,485		39,485		0		0
Restricted cash equivalents and investments		10,168		10,168		0		0
Equity investments:
Publicly traded investments		37,204		37,204		0		0
Total	$	153,352	$	153,352	$	0	$	0

Investments in marketable securities classified as short-term investments and equity investments of public companies are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy.

Our equity investments in publicly traded companies consisted of J-Stream Inc., a Japanese media services company, and LoEn Entertainment, Inc., a Korean digital music distribution company. These equity investments are accounted for as available for sale. The aggregate cost basis of these securities totaled $10.8 million as of March 31, 2012.

Items Measured at Fair Value on a Non-recurring Basis

Certain of our assets and liabilities are measured at estimated fair value on a non-recurring basis. These instruments are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). During the quarters ended March 31, 2012 and 2011, we did not record any impairments on those assets required to be measured at fair value on a non-recurring basis.