Fair Value Measurements

3 Months Ended

Mar. 31, 2013

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, 2013 and December 31, 2012:

			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, 2013
Available-for-sale debt securities:
Municipal notes and bonds	$	80,489	$	—	$	80,489	$	—
Corporate bonds	501		—		501		—
Auction rate securities	330		—		—		330
Total available-for-sale debt securities	81,320		—		80,990		330
Derivatives:
Foreign currency forward contracts	200		—		200		—
Total derivatives	200		—		200		—
Total	$	81,520	$	—	$	81,190	$	330
December 31, 2012
Available-for-sale debt securities:
Municipal notes and bonds	$	64,117	$	—	$	64,117	$	—
Corporate bonds	500		—		500		—
Auction rate securities	346		—		—		346
Total available-for-sale debt securities	64,963		—		64,617		346
Derivatives:
Foreign currency forward contracts	268		—		268		—
Total derivatives	268		—		268		—
Total	$	65,231	$	—	$	64,885	$	346

Level 1 investments are based on quoted prices that are available in active markets.

The Company’s investments classified as Level 2 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. 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. Available-for-sale debt securities 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 interest rates of 2.7%, timing and amount of cash flows and expected holding periods of the auction rate security, based on data available as of March 31, 2013. 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, 2013:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance at December 31, 2012	$	346
Unrealized loss in accumulated other comprehensive income	(16		)
Purchases, sales, issuances, and settlements	—
Transfers into (out of) Level 3	—
Balance at March 31, 2013	$	330

See Note 4 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 estimated fair value of the Company’s convertible senior notes was valued using a discounted cash flow model. The Level 3 assumptions, based on data available at the valuation date was used in preparing the discounted cash flow model including 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 senior notes is valued quarterly using the present value of expected cash flow model incorporating the probabilities of the contingent events occurring.

The following table reflects information pertaining to the Company’s convertible senior notes:

	March 31, 2013			December 31, 2012
Net carrying value of convertible senior notes	$	49,677		$	49,010
Estimated fair value of convertible senior notes	$	51,048		$	51,018
Estimated interest rate used in discounted cash flow model	9.4		%	9.4		%
Fair value of contingent interest	$	—		$	—