Investments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Company's recurring financial assets and liabilities subject to fair value measurements

The Company's recurring financial assets and liabilities subject to fair value measurements are as follows:



	Fair Value Measurements as of September 30, 2012
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds	$	126,465	$	126,465	$	—	$	—
Certificates of deposit	2,237		—		2,237		—
Bonds	6,306		6,306		—		—
Investment securities available for sale	65,193		63,790		1,403		—
Warrants (1)	894		—		—		894
Total	$	201,095	$	196,561	$	3,640	$	894

Liabilities:
Fair value of derivatives embedded within convertible debt	$	87,466	$	—	$	—	$	87,466


(1)	Warrants include 1,000,000 of LTS Warrants received on November 4, 2011 which were carried at $826 as of September 30, 2012 and are included in "Other assets". The Company recognized a loss of $1,064 for the nine months ended September 30, 2012 related to the change in fair value of the Warrants.



	Fair Value Measurements as of December 31, 2011
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds	$	194,259	$	194,259	$	—	$	—
Certificates of deposit	2,206		—		2,206		—
Bonds	4,573		4,573		—		—
Investment securities available for sale	76,486		70,884		5,602		—
Warrants (1)	1,962		—		—		1,962
Total	$	279,486	$	269,716	$	7,808	$	1,962

Liabilities:
Fair value of derivatives embedded within convertible debt	$	133,500	$	—	$	—	$	133,500


(1)	Warrants include 1,000,000 of LTS Warrants received on November 4, 2011 which were carried at $1,890 as of December 31, 2011 and are included in "Other assets".

Unobservable inputs related to the valuations of the Level 3 assets and liabilities

The unobservable inputs related to the valuations of the Level 3 assets and liabilities are as follows at September 30, 2012:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	September 30, 2012		Valuation Technique	Unobservable Input	Range (Actual)

Warrants	$	894	Option model	Stock price	$	1.32
				Exercise price	$	1.68
				Term (in years)	4.1
				Volatility	95.05		%
				Dividend rate	—
				Risk-free return	47.40		%

Fair value of derivatives embedded within convertible debt	87,466		Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Yield to worst call on the Company's Senior Secured Notes	5.58		%
				Average spread of unsecured debt	1.50		%
				Average spread of subordinated debt	1.52		%
				Discount rate	8.00% - 9.00% (8.50%)

The unobservable inputs related to the valuations of the Level 3 assets and liabilities are as follows at December 31, 2011:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2011		Valuation Technique	Unobservable Input	Range (Actual)

Warrants	$	1,962	Option model	Stock price	$	2.48
				Exercise price	$	1.68
				Term (in years)	4.9
				Volatility	94.12		%
				Dividend rate	—
				Risk-free return	0.83		%

Fair value of derivatives embedded within convertible debt	133,500		Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Yield to worst call on the Company's senior secured notes	9.33		%
				Average spread of unsecured debt	1.49		%
				Average spread of subordinated debt	1.89		%
				Discount rate	12% - 13% (12.5%)

- Definition

Tabular disclosure of the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), 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); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods. Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 6

-Footnote 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19190-110258

+ Details