Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 5. Fair Value Measurements

Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. There is a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

• Level 1 — Quoted prices in active markets for identical assets or liabilities.

• Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

• Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the tables below (in thousands):

	June 30, 2012						December 31, 2011
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	178,718	$	—	$	—	$	133,429	$	—	$	—
Debt securities issued by the District of Columbia		9,105		—		—		10,516		—		—
Investments held through variable insurance products in a Rabbi Trust		—		14,500		—		—		13,985		—
Forward currency exchange contracts		—		69		—		—		34		—
Financial liabilities
Forward currency exchange contracts	$	—	$	82	$	—	$	—	$	334	$	—

Investments held through variable insurance products in a Rabbi Trust consist of mutual funds available only to institutional investors. The fair value of these investments are based on the fair value of the underlying investments held by the mutual funds allocated to each share of the mutual fund using a net asset value approach. The fair values of the underlying investments held by the mutual funds are observable inputs. The fair value of foreign currency exchange contracts are based on bank quotations for similar instruments using models with market-based inputs.

Certain assets (i.e., goodwill, intangible assets) and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is impairment). No fair value adjustments were made in the three and six months ended June 30, 2012 and 2011, respectively.

Marketable Securities

The aggregate fair value, amortized cost, gross unrealized gains, and gross unrealized losses on available-for-sale marketable securities are as follows (in thousands):

	June 30, 2012
	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses
Washington D.C. tax exempt bonds	$	9,105	$	8,970	$	135	$	—
	December 31, 2011
	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses
Washington D.C. tax exempt bonds	$	10,516	$	10,226	$	290	$	—

The following table summarizes maturities of marketable securities (in thousands):

	June 30, 2012
	Fair Value		Amortized Cost
Less than one year	$	6,165	$	6,040
Matures in 1 to 5 years		2,940		2,930
Marketable securities	$	9,105	$	8,970