Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair value of assets measured on recurring basis

Our financial instruments measured at fair value on a recurring basis at June 30, 2013, were as follows:



	Total		Level 1		Level 2		Level 3
	(In thousands)
Corporate debt securities	$	463,723	$	—	$	463,723	$	—
GSEs	84,101		84,101		—		—
Municipal securities	105,936		—		105,936		—
U.S. treasury notes	26,495		26,495		—		—
Certificates of deposit	38,289		—		38,289		—
Auction rate securities	12,527		—		—		12,527
1.125% Call Option derivative asset	207,123		—		—		207,123
Total assets measured at fair value on a recurring basis	$	938,194	$	110,596	$	607,948	$	219,650

Embedded cash conversion option derivative liability	$	207,017	$	—	$	—	$	207,017

Our financial instruments measured at fair value on a recurring basis at December 31, 2012, were as follows:



	Total		Level 1		Level 2		Level 3
	(In thousands)
Corporate debt securities	$	191,008	$	—	$	191,008	$	—
GSEs	29,525		29,525		—		—
Municipal securities	75,848		—		75,848		—
U.S. treasury notes	35,740		35,740		—		—
Certificates of deposit	10,724		—		10,724		—
Auction rate securities	13,419		—		—		13,419
Total assets measured at fair value on a recurring basis	$	356,264	$	65,265	$	277,580	$	13,419

Interest rate swap derivative liability	$	1,307	$	—	$	1,307	$	—

Fair value of assets measured on recurring basis using unobservable inputs

The following tables present activity relating to our assets (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3):



	Changes in Level 3 Instruments for the Six Months Ended June 30, 2013
	Total			Auction Rate Securities			Derivatives, Net
				(In thousands)
Balance at December 31, 2012	$	13,419		$	13,419		$	—
Net unrealized gains included in other comprehensive income	358			358			—
Net unrealized gains (losses) included in other expense	(3,817		)	—			(3,817		)
Issuances	(75,074		)	—			(75,074		)
Settlements and derivative redesignation	77,747			(1,250		)	78,997
Balance at June 30, 2013	$	12,633		$	12,527		$	106
The amount of total unrealized gains for the period included in other comprehensive income attributable to the change in accumulated other comprehensive losses relating to assets still held at June 30, 2013	$	290		$	290		$	—



	Changes in Level 3 Instruments for the Year Ended December 31, 2012
	Total			Auction Rate Securities			Derivatives, Net
	(In thousands)
Balance at December 31, 2011	$	16,134		$	16,134		$	—
Net unrealized gains included in other comprehensive income	1,635			1,635			—
Settlements	(4,350		)	(4,350		)	—
Balance at December 31, 2012	$	13,419		$	13,419		$	—
The amount of total unrealized gains for the period included in other comprehensive income attributable to the change in accumulated other comprehensive losses relating to assets still held at December 31, 2012	$	1,059		$	1,059		$	—

Schedule of fair value, asset and liabilities measured on recurring basis - disclosure only

Fair Value Measurements – Disclosure Only

The carrying amounts and estimated fair values of our long-term debt, as well as the applicable fair value hierarchy tiers, are contained in the tables below. Our convertible senior notes are classified as Level 2 financial instruments. Fair value for these securities is determined using a market approach based on quoted prices for similar securities in active markets or quoted prices for identical securities in inactive markets. As described in greater detail Note 10, "Long-Term Debt," we recorded lease financing obligations in connection with sale-leaseback transactions executed in the first half of 2013. The lease financing obligations are classified as Level 3 financial instruments because certain inputs used to determine their fair value are unobservable. At June 30, 2013, the carrying amount of the lease financing obligations approximate their fair value because of the short period of time between the origination of the obligations in 2013, and June 30, 2013. The credit facility was repaid and terminated effective February 15, 2013, and the term loan was repaid on June 13, 2013.



	June 30, 2013
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3
	(In thousands)
1.125% Notes	$	407,215	$	608,416	$	—	$	608,416	$	—
3.75% Notes	178,610		242,466		—		242,466		—
Lease financing obligations	175,666		175,666		—		—		175,666
	$	761,491	$	1,026,548	$	—	$	850,882	$	175,666

	December 31, 2012
	Carrying		Total
	Value		Fair Value		Level 1		Level 2		Level 3
	(In thousands)
3.75% Notes	$	175,468	$	208,460	$	—	$	208,460	$	—
Term loan	47,471		47,471		—		—		47,471
Credit facility	40,000		40,000		—		—		40,000
	$	262,939	$	295,931	$	—	$	208,460	$	87,471

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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