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Marketable Securities and Fair Value Measurements
12 Months Ended
Dec. 31, 2011
Marketable Securities and Fair Value Measurements

Note 2. Marketable Securities and Fair Value Measurements

We had the following investments (in thousands):

Short-term

 

December 31, 2011

   Amortized
Cost
     Gross
Unrealized
Gains
     Gross
Unrealized
Losses
    Fair
Value
 

Corporate bonds

   $ 4,135       $ —         $ (1   $ 4,134   

Foreign bonds

     1,248         —           (5     1,243   

Agency bonds

     2,015         3         —          2,018   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 7,398       $ 3       $ (6   $ 7,395   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

We did not have any long-term marketable securities as of December 31, 2011.

Short-term

 

December 31, 2010

   Amortized
Cost
     Gross
Unrealized
Gains
     Gross
Unrealized
Losses
    Fair Value  

Corporate bonds and certificate of deposit

   $ 3,012       $ —         $ (1   $ 3,011   

Foreign bonds

     705         —           —          705   

Commercial paper

     1,900         —           —          1,900   

Discount notes

     2,998         1         —          2,999   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 8,615       $ 1       $ (1   $ 8,615   
  

 

 

    

 

 

    

 

 

   

 

 

 

Long-term

 

December 31, 2010

   Amortized
Cost
     Gross
Unrealized
Losses
    Fair Value  

Corporate bonds

   $ 5,748       $ (11   $ 5,737   

Foreign bonds

     1,307         (1     1,306   

Agency bonds

     2,047         (1     2,046   
  

 

 

    

 

 

   

 

 

 

Total

   $ 9,102       $ (13   $ 9,089   
  

 

 

    

 

 

   

 

 

 

As of December 31, 2011 and 2010, all short-term investments have maturity dates of less than one year.  For the years ended December 31, 2011 and 2010, realized losses were immaterial.

Fair Value Measurements

We measure the fair value of our cash equivalents and marketable securities as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  We use the GAAP fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.  The three levels of inputs that may be used to measure fair value:

Level 1—Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Our Level 1 assets consist of money market funds.  We did not hold any Level 1 liabilities as of December 31, 2011.

Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Our Level 2 assets consist of corporate bonds, foreign bonds, agency bonds, and our Israeli severance funds that are mainly invested in insurance policies.  We did not hold any Level 2 liabilities as of December 31, 2011.

 

Level 3—Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities.  Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.

We did not hold any Level 3 assets or liabilities as of December 31, 2011.

The following table summarizes our financial assets measured at fair value on a recurring basis as of December 31, 2011 and 2010 (in thousands):

 

Description

   Balance as of
December 31, 2011
     Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
     Significant Other
Observable Inputs
(Level 2)
 

Cash equivalents:

        

Money market funds

   $ 86,897       $ 86,897         —     

Short-term investments:

        

Corporate bonds

     4,134         —           4,134   

Foreign bonds

     1,243         —           1,243   

Agency bonds

     2,018         —           2,018   

Other assets:

        

Israeli severance funds

     1,859         —           1,859   
  

 

 

    

 

 

    

 

 

 
   $ 96,151       $ 86,897       $ 9,254   
  

 

 

    

 

 

    

 

 

 

 

Description

   Balance as of
December 31, 2010
     Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
     Significant Other
Observable
Inputs (Level 2)
 

Cash equivalents:

        

Money market funds

   $ 164,722       $ 164,722       $ —     

Short-term investments:

        

Corporate bonds and certificate of deposit

     3,011         —           3,011   

Foreign bonds

     705         —           705   

Discount notes

     2,999         —           2,999   

Commercial paper

     1,900         —           1,900   

Long-term investments:

        

Corporate bonds

     5,737         —           5,737   

Foreign bonds

     1,306         —           1,306   

Agency bonds

     2,046         —           2,046   
  

 

 

    

 

 

    

 

 

 
   $ 182,426       $ 164,722       $ 17,704