Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 6 — Fair Value Measurements

We measure our cash equivalents, investments, and foreign exchange forward contracts at fair value. The authoritative guidance defines fair value as the exit price, or 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. The authoritative guidance also establishes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions.

The fair value hierarchy consists of the following three levels:

• Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities.

• Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.

• Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

The following table summarizes our financial assets and (liabilities) measured at fair value on a recurring basis as of September 30, 2011:

	Level 1		Level 2			Level 3		Total
Cash equivalents:
Money market funds	$	319,761	$	—		$	—	$	319,761
Time deposits		—		4,523			—		4,523
Commercial paper		—		22,094			—		22,094
Total cash equivalents		319,761		26,617			—		346,378
Investments:
Time deposits		—		294,265			—		294,265
Available-for-sale securities:
U.S. Treasury and agency debt securities		313,564		148,385			—		461,949
Corporate and other debt securities		—		199,014			—		199,014
Asset-backed debt securities		—		97,661			—		97,661
Municipal debt securities		—		44,579			—		44,579
Foreign government debt securities		—		12,589			—		12,589
Total available-for-sale securities		313,564		502,228			—		815,792
Total investments		313,564		796,493			—		1,110,057
Derivative financial instruments – foreign exchange forward contracts:
Other current assets		—		14,384			—		14,384
Accrued expenses and other current liabilities		—		(35,272	)		—		(35,272	)
Other noncurrent assets		—		1,046			—		1,046
Other noncurrent liabilities		—		(36,177	)		—		(36,177	)
Total	$	633,325	$	767,091		$	—	$	1,400,416

The following table summarizes our financial assets and (liabilities) measured at fair value on a recurring basis as of December 31, 2010:

	Level 1		Level 2			Level 3		Total
Cash equivalents:
Money market funds	$	421,424	$	—		$	—	$	421,424
Time deposits		—		67,703			—		67,703
Total cash equivalents		421,424		67,703			—		489,127
Investments:
Time deposits		—		139,391			—		139,391
Available-for-sale securities:
U.S. Treasury and agency debt securities		268,114		72,270			—		340,384
Corporate and other debt securities		—		122,909			—		122,909
Asset-backed debt securities		—		33,154			—		33,154
Municipal debt securities		—		41,655			—		41,655
Foreign government debt securities		—		7,926			—		7,926
Total available-for-sale securities		268,114		277,914			—		546,028
Total investments		268,114		417,305			—		685,419
Derivative financial instruments – foreign exchange forward contracts:
Other current assets		—		30,983			—		30,983
Accrued expenses and other current liabilities		—		(7,504	)		—		(7,504	)
Other noncurrent assets		—		8,144			—		8,144
Other noncurrent liabilities		—		(6,601	)		—		(6,601	)
Total	$	689,538	$	510,030		$	—	$	1,199,568

We measure the fair value of money market funds and U.S. Treasury securities based on quoted prices in active markets for identical assets. The fair value of commercial paper, U.S. government agency securities, municipal debt securities, U.S. and international corporate bonds and foreign government debt securities is measured based on relevant trade data, dealer quotes, or model driven valuations using significant inputs derived from or corroborated by observable market data, such as yield curves and credit spreads. We measure the fair value of our asset-backed securities using model driven valuations based on dealer quotes, available trade information, spread data, current market assumptions on prepayment speeds and defaults and historical data on deal collateral performance.

We estimate the fair value of each foreign exchange forward contract by using a present value of expected cash flows model. This model calculates the difference between the current market forward price and the contracted forward price for each foreign exchange contract and applies the difference in the rates to each outstanding contract. The market forward rates included a discount and credit risk factor. The amounts were aggregated by type of contract and maturity.

During the three and nine months ended September 30, 2011 and the year ended December 31, 2010, there were no transfers among Level 1, Level 2, or Level 3 financial assets and liabilities.