Fair Value Measurements

9 Months Ended

Sep. 30, 2012

Fair Value Measurements [Abstract]

Fair Value, Measurement Inputs, Disclosure

Fair Value Measurements

The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. The following levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities:

• Level 1 - quoted prices in active markets for identical investments

• Level 2 - other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.)

• Level 3 - significant unobservable inputs (including the Company's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the credit risk associated with investing in those securities. The following table provides the fair value measurements of applicable Company assets and liabilities that are measured at fair value on a recurring basis according to the fair value levels described above as of September 30, 2012 and December 31, 2011.

	Assets and Liabilities at Fair Value as of September 30, 2012
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents	$	20,759	$	—	$	—	$	20,759
Short-term investments	186,089		—		—		186,089
Total cash and cash equivalents and investments	$	206,848	$	—	$	—	$	206,848
Liabilities
Other long-term liabilities	$	—	$	—	$	30,120	$	30,120
Total liabilities	$	—	$	—	$	30,120	$	30,120

	Assets and Liabilities at Fair Value as of December 31, 2011
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash and cash equivalents	$	186,309	$	—	$	—	$	186,309
Short-term investments	95,383		—		—		95,383
Total cash and cash equivalents and investments	$	281,692	$	—	$	—	$	281,692
Liabilities
Other long-term liabilities	$	—	$	—	$	55,033	$	55,033
Total liabilities	$	—	$	—	$	55,033	$	55,033

The Company's Level 3 liabilities are estimated using a probability-based income approach utilizing an appropriate discount rate. Subsequent changes in the fair value of the Symphony Icon purchase consideration liability are recorded as an increase or decrease in Symphony Icon purchase liability expense in the accompanying consolidated statements of comprehensive loss. The following table summarizes the change in consolidated balance sheet carrying value associated with Level 3 liabilities for the nine months ended September 30, 2012 and 2011.

	Other Long-term Liabilities
	(in thousands)
Balance at December 31, 2011	$	55,033
Change in valuation of purchase consideration payable to former Symphony Icon stockholders	10,087
Payment of base payment obligation with common stock	(35,000		)
Balance at September 30, 2012	$	30,120
Balance at December 31, 2010	$	48,267
Change in valuation of purchase consideration payable to former Symphony Icon stockholders	5,198
Balance at September 30, 2011	$	53,465

The Company also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets include goodwill associated with the acquisitions of Coelacanth Corporation in 2001 and Symphony Icon on July 30, 2010 and intangible assets associated with the acquisition of Symphony Icon on July 30, 2010. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if one or more is determined to be impaired.