Fair Value Measures

9 Months Ended

Sep. 30, 2012

Fair Value Measures [Abstract]

Fair Value Measures

4. Fair Value Measures

The Company measures its investments at fair value under accounting principles generally accepted in the Unites States of America (“GAAP”). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company measures its cash equivalents, available-for-sale investments, and derivative instruments at fair value. The cash equivalents and available-for-sale investments are valued within Level 2 in the fair value hierarchy because the Company values its cash equivalents and marketable securities using alternative pricing sources utilizing market observable inputs. The Company classifies its interest rate swap derivative within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Company classifies its warrant derivative within Level 3 because it is valued using the Black-Scholes valuation model, which has significant unobservable inputs. Those unobservable inputs reflect the Company’s assumptions, consistent with reasonably available assumptions made by other market participants. This valuation requires significant judgment.

The fair value hierarchy of the Company’s financial assets and liabilities carried at fair value and measured on a recurring basis is as follows (in thousands):

				Fair value measurements at the reporting date using
	September 30, 2012			Quoted prices in active markets using identical assets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Assets
Cash equivalents:
U.S. government securities	$	22,623		$	—	$	22,623		$	—
Money market and other funds		24,201			—		24,201			—
Commercial paper		10,074			—		10,074			—
Time deposits		1,990			—		1,990			—
Taxable municipal bonds		3,052			—		3,052			—
Total cash equivalents		61,940			—		61,940			—
Available-for-sale securities:
U.S. government securities		27,264			—		27,264			—
Commercial paper		4,595			—		4,595			—
Time deposits		5,713			—		5,713			—
Taxable municipal bonds		16,438			—		16,438			—
Total available-for-sale securities		54,010			—		54,010			—
Total assets		115,950			—		115,950			—
Liabilities
Derivative instruments
Warrant (see Note 6)		(10,492	)		—		—			(10,492	)
Interest rate swap (see Note 9)		(459	)		—		(459	)		—
Total liabilities		(10,951	)		—		(459	)		(10,492	)
Total assets and liabilities at fair value	$	104,999		$	—	$	115,491		$	(10,492	)
				Fair value measurements at the reporting date using
	December 31, 2011			Quoted prices in active markets using identical assets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Assets
Cash equivalents:
Money market funds	$	32,637		$	—	$	32,637		$	—
Commercial paper		20,000			—		20,000			—
Total cash equivalents		52,637			—		52,637			—
Available-for-sale securities:
U.S. government securities		162,170			—		162,170			—
Commercial paper		49,484			—		49,484			—
Total available-for-sale securities		211,654			—		211,654			—
Total assets at fair value	$	264,291		$	—	$	264,291		$	—

Maturity information was as follows for investments classified as available-for-sale at September 30, 2012 (in thousands):

	Amortized Cost		Gross unrealized gains		Gross unrealized losses			Fair Value
Within one year	$	54,000	$	14	$	(4	)	$	54,010
Greater than one year		—		—		—			—
Total	$	54,000	$	14	$	(4	)	$	54,010

Maturity information was as follows for investments classified as available-for-sale at December 31, 2011 (in thousands):

	Amortized Cost		Gross unrealized gains		Gross unrealized losses			Fair Value
Within one year	$	211,622	$	34	$	(2	)	$	211,654
Greater than one year		—		—		—			—
Total	$	211,622	$	34	$	(2	)	$	211,654

In the nine months ended September 30, 2012 and at December 31, 2011, the Company did not measure the fair value of any of its assets or liabilities other than cash equivalents, available-for-sale investments, and the derivative instruments. The Company’s management considers the carrying values of accounts receivable, other receivables, prepaid expenses and other current assets, accounts payable, accrued expenses, and other current liabilities to approximate fair values primarily due to their short-term nature.