Fair Value Of Financial Instruments And Investments

3 Months Ended

Mar. 31, 2012

Fair Value Of Financial Instruments And Investments [Abstract]

Fair Value Of Financial Instruments And Investments

Note 3—Fair Value of Financial Instruments and Investments

The Company categorizes its financial instruments into a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

Financial assets recorded at fair value on the Company's consolidated balance sheets are categorized as follows:

Level 1: Unadjusted quoted prices for identical assets in an active market.

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. Level 2 inputs include the following:

• quoted prices for similar assets in active markets,

• quoted prices for identical or similar assets in non-active markets,

• inputs other than quoted market prices that are observable, and

• inputs that are derived principally from or corroborated by observable market data through correlation or other means.

Level 3: Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management's own assumptions about the assumptions a market participant would use in pricing the asset.

There were no transfers between levels in the fair value hierarchy during any period presented herein. The following table presents the Company's cash and cash equivalents, and investments and including the hierarchy for its financial instruments measured at fair value on a recurring basis at March 31, 2012 and December 31, 2011:

March 31, 2012	Carrying Amount		Estimated Fair  Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and cash equivalents:
Cash	$	12,529	$	12,529	$	12,529	$	—	$	—
Money market funds		70,036		70,036		70,036		—		—
Total cash and cash equivalents		82,565		82,565		82,565		—		—
Short-term investments:
Certificates of deposit		48,408		48,408		48,408		—		—
Total short-term investments		48,408		48,408		48,408		—		—
Total cash and cash equivalents and short-term investments		130,973		130,973		130,973		—		—
Restricted cash:
Certificates of deposit		2,780		2,780		2,780		—		—
Total restricted cash		2,780		2,780		2,780		—		—
Total	$	133,753	$	133,753	$	133,753	$	—	$	—
December 31, 2011	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and cash equivalents:
Cash	$	8,680	$	8,680	$	8,680	$	—	$	—
Money market funds		105,414		105,414		105,414		—		—
Total cash and cash equivalents		114,094		114,094		114,094		—		—
Short-term investments:
Certificates of deposit		55,694		55,694		55,694		—		—
Total short-term investments		55,694		55,694		55,694		—		—
Total cash and cash equivalents and short-term investments		169,788		169,788		169,788		—		—
Restricted cash:
Certificates of deposit		2,580		2,580		2,580		—		—
Total restricted cash		2,580		2,580		2,580		—		—
Total	$	172,368	$	172,368	$	172,368	$	—	$	—

The debt component of the Company's 4.75% Senior Convertible Notes due 2018 ("the 2018 Convertible Notes") was recorded at fair value of $169.8 million on the issuance date of February 4, 2011 based on Level 3 inputs. The carrying value of the Notes is accreted back to its principal amount at each reporting period. At March 31, 2012, the Company's 2018 Convertible Notes had a carrying value of $177.1 million and a fair value of $105.0 million. The fair value of the Company's 2018 Convertible Notes is based upon the quoted market price at March 30, 2012. The carrying amounts of the Company's accounts receivable, accounts payable and other current liabilities approximate fair value.

The cost and estimated fair value of the Company's certificates of deposit which are held-to-maturity and included in the Company's consolidated balance sheets as short-term investments were $48,408 and $55,694 at March 31, 2012 and December 31, 2011, respectively. The Company's certificates of deposit at March 31, 2012 and December 31, 2011 had maturity dates of less than one-year.