Fair Value Measurements

3 Months Ended

Mar. 31, 2012

Fair Value Measurements [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

The Company applies a three-level valuation hierarchy for fair value measurements. This hierarchy prioritizes the inputs into three broad levels.  Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. Level 3 inputs are unobservable inputs based on management’s assumptions used to measure assets and liabilities at fair value. A financial asset’s or liability’s fair value measurement classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following tables provide the assets carried at fair value measured on a recurring basis at March 31, 2012 and December 31, 2011:

			Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2012
Available-for-sale debt securities:
Municipal notes and bonds	$	84,313	$	84,313	$	—	$	—
Auction rate securities	336		—		—		336
Total available-for-sale debt securities	84,649		84,313		—		336
Derivatives:
Foreign currency forward contracts	181		181		—		—
Total derivatives	181		181		—		—
Total	$	84,830	$	84,494	$	—	$	336
December 31, 2011
Available-for-sale debt securities:
Municipal notes and bonds	$	70,525	$	70,525	$	—	$	—
Auction rate securities	363		—		—		363
Total available-for-sale debt securities	70,888		70,525		—		363
Derivatives:
Foreign currency forward contracts	99		99		—		—
Total derivatives	99		99		—		—
Total	$	70,987	$	70,624	$	—	$	363

The Company’s investments classified as Level 1 are based on quoted prices that are available in active markets. The foreign currency forward contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. The municipal notes and bonds are measured based on quoted market prices.

Level 2 investments are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Investment prices are obtained from third party pricing providers, which models prices utilizing the above observable inputs, for each asset class.

Level 3 investments consist of an auction rate security for which the Company uses a discounted cash flow model to value this investment. The Level 3 assumptions used in preparing the discounted cash flow model included estimates of, based on data available as of March 31, 2012, interest rates, timing and amount of cash flows and expected holding periods of the auction rate security. Changes in the unobservable input values would be unlikely to cause material changes in the fair value of the auction rate security.

This table presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months endedMarch 31, 2012:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance at December 31, 2011	$	363
Unrealized loss in accumulated other comprehensive income	(27		)
Purchases, sales, issuances, and settlements	—
Transfers into (out of) Level 3	—
Balance at March 31, 2012	$	336

See Note 3 for additional discussion regarding the fair value of the Company’s marketable securities.

Fair Value of Other Financial Instruments

The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value because of the short maturity of these instruments. The estimated fair value of these obligations is based, primarily, on a market approach, comparing the Company’s interest rates to those rates the Company believes it would reasonably receive upon re-entry into the market. Judgment is required to estimate the fair value, using available market information and appropriate valuation methods.

The Company’s convertible senior notes are not publicly traded. The carrying amount of the Company’s convertible senior notes was $47,129 as of March 31, 2012. The estimated fair value of the Company’s convertible senior notes was $49,164 as of March 31, 2012 and was valued using a discounted cash flow model. The Level 3 assumptions, based on data available as of March 31, 2012, used in preparing the discounted cash flow model included estimates of interest rates, timing and amount of cash flows and expected holding periods of the convertible senior notes. The fair value of the contingent interest associated with the convertible notes is $0 as of March 31, 2012 and is valued quarterly using the present value of expected cash flow models incorporating the probabilities of the contingent events occurring.