Financial Instruments

6 Months Ended

Jun. 30, 2011

Financial Instruments

Financial Instruments

8. FINANCIAL INSTRUMENTS

The Company considers the recorded value of its financial assets and liabilities, consisting primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities, and real estate loan to approximate the fair value of the respective assets and liabilities at June 30, 2011 and December 31, 2010. At June 30, 2011, the fair value of the Company's 6.00% Convertible Senior Subordinated Notes due 2012 was estimated at $123.3 million based on quoted market prices.

The Company uses interest rate swaps to manage its exposure to fluctuations in the interest rates on its variable-rate debt. At December 31, 2010, the fair value of our outstanding interest rate swap was $0.3 million. During the six months ended June 30, 2011, in conjunction with paying off its real estate note, the Company paid approximately $0.3 million to settle its interest rate swap. As a result of the settlement of its interest rate swap, the Company reclassified a $0.2 million loss (net of tax expense of $0.1 million) previously included in "Accumulated other comprehensive loss" to "Interest expense, net."