FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2011

FAIR VALUE MEASUREMENTS

NOTE 5 – FAIR VALUE MEASUREMENTS

The following tables summarize our available-for-sale securities measured at fair value:

	6/30/11		Level 1		Level 2		Level 3
	(Unaudited) (In thousands)
Mutual funds(1)	$	2,081	$	—	$	2,081	$	—
Commercial paper		142,862		—		142,862		—
U.S. Government and agency securities(2)		84,242		78,494		5,748		—
Asset-backed securities and collateralized mortgage obligations(3)		9,435		—		2,363		7,072
Total	$	238,620	$	78,494	$	153,054	$	7,072

	12/31/10		Level 1		Level 2		Level 3
	(Unaudited) (In thousands)
Mutual funds	$	2,007	$	—	$	2,007	$	—
U.S. Government and agency securities		269,161		269,161		—		—
Asset-backed securities and collateralized mortgage obligations		9,869		—		2,497		7,372
Corporate notes and bonds		4,168		—		4,168		—
Total	$	285,205	$	269,161	$	8,672	$	7,372

⁽¹⁾ Various U.S. equities and other investments managed under mutual funds.

⁽²⁾ Investments in U.S. Treasury securities with maturities of two years or less.

⁽³⁾ Asset-backed and mortgage-backed securities with maturities of up to 26 years.

Changes in Level 3 Instrument

The following is a summary of the changes in our Level 3 instrument measured on a recurring basis for the three-month and six-month periods ended June 30, 2011 and 2010:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
	(Unaudited) (In thousands)
Balance at beginning of period	$	7,503		$	7,723		$	7,372		$	7,494
Total realized and unrealized gains (losses)		(39	)		397			465			1,277
Purchases, issuances and settlements		—			—			—			(111	)
Principal repayments		(392	)		(465	)		(765	)		(1,005	)
Balance at end of period	$	7,072		$	7,655		$	7,072		$	7,655

Our Level 3 investment consists of asset-backed commercial paper notes backed by a pool of mortgage-backed securities. The fair value of this Level 3 investment was based on the calculation of an overall weighted-average valuation, using the prices of the underlying individual securities. Individual securities in the pool were valued based on market observed prices, where available. If market prices were not available, prices of similar securities backed by similar assets were used.

Other Financial Instruments

The estimated fair values of our other financial instruments are as follows:

	June 30, 2011				December 31, 2010
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Unaudited)
	(In thousands)
Balance Sheet Instruments
Debt	$	81,862	$	82,283	$	55,295	$	56,180
Forward contracts, net	$	1,460	$	1,460	$	1,352	$	1,352

We used the following methods and assumptions in estimating our fair value disclosures for our other financial instruments:

Cash and cash equivalents. The carrying amounts that we have reported in the accompanying unaudited condensed consolidated balance sheets for cash and cash equivalents approximate their fair values.

Current and long-term restricted cash and cash equivalents. The carrying amounts that we have reported in the accompanying unaudited condensed consolidated balance sheets for restricted cash and cash equivalents approximate their fair values.

Short-term and long-term debt. We base the fair values of debt instruments on quoted market prices. Where quoted prices are not available, we base the fair values on the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms.

Forward contracts. The fair value of forward contracts is determined using observable financial market inputs, such as quoted market prices.