Fair Value Measurement

6 Months Ended

Jun. 30, 2012

Fair Value Measurement [Abstract]

FAIR VALUE MEASUREMENT

NOTE 4:    FAIR VALUE MEASUREMENT

The Company measures its marketable securities and foreign currency derivative contracts at fair value. Fair value is an exit price, representing the amount that would be received for selling an asset or paid for the transfer of a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:

Level 1	Unadjusted quoted prices in active markets that are accessible on the measurement date for identical, unrestricted assets or liabilities;
Level 2	Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Marketable securities and foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

The table below sets forth the Company’s assets and liabilities measured at fair value by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Description	June 30, 2012		Level I		Level II		Level III
Assets:
Marketable securities:
Certificates of deposits	$	1,959	$	—	$	1,959	$	—
Foreign government bond		581		—		581		—
Corporate bonds		51,991		—		51,991		—
Foreign exchange contracts		22		—		22		—
Total assets		54,553		—		54,553		—
Liabilities:
Foreign exchange contracts		141		—		141		—
Total liabilities		141		—		141		—
Description	December 31, 2011		Level I		Level II		Level III
Assets:
Marketable securities:
Certificates of deposits	$	2,204	$	—	$	2,204	$	—
Foreign government bond		589		—		589		—
Corporate bonds		66,234		—		66,234		—
Total assets		69,027		—		69,027		—
Liabilities:
Foreign exchange contracts		225		—		225		—
Total liabilities		225		—		225		—

In addition to the assets and liabilities described above, the Company’s financial instruments also include cash, cash equivalents, short term bank deposits, trade receivables, other accounts receivable, trade payables, income taxes payable and other accounts payables. The fair values of these financial instruments were not materially different from their carrying values at June 30, 2012 due to the short-term maturities of these instruments.