Fair Value Measurements

6 Months Ended

Jul. 01, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

NOTE 4.Fair Value Measurements

ASC Topic 820 specifies a hierarchy of valuation techniques which requires an entity to maximize the use of observable inputs that may be used to measure fair value:

Level 1 – Quoted prices in active markets are available for identical assets and liabilities.The Company’s Level 1 assets include cash equivalents, short-term investments, and long-term investment securities, which are generally acquired or sold at par value and are actively traded.

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.The Company’s Level 2 liabilities include forward currency contracts whose value is determined using a pricing model with inputs that are observable in the market or corroborated with observable market data.Level 2 observable inputs were used in estimating interest rates used to determine the fair value (on a non-recurring basis) of the debt component of the Company’s senior convertible notes.See Note 9. Senior Convertible Notes.

Level 3 - Pricing inputs include significant inputs that are generally not observable in the marketplace. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. At each balance sheet date, the Company performs an analysis of all applicable instruments and would include in Level 3 all of those whose fair value is based on significant unobservable inputs.Level 3 inputs are used on a recurring basis to measure the fair value of the liability for contingent consideration.Level 3 inputs are used on a non-recurring basis to measure the fair value of non-financial assets, including intangible assets.

Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis

Financial assets measured on a recurring basis as at July 1, 2012 and December 31, 2011, are summarized below:

	Fair value,
(in thousands)	July 1, 2012
	Level 1		Level 2		Level 3
Assets:
Corporate bonds and notes (1)	$	179,018	$	-	$	-
Money market funds (1)		24,564		-		-
United States ("US") treasury and government agency notes (1)		50,232		-		-
Foreign government and agency notes (1)		8,390		-		-
US state and municipal securities (1)		1,742		-		-
Total assets	$	263,946	$	-	$	-
	Fair value,
	December 31, 2011
(in thousands)	Level 1
Assets:
Corporate bonds and notes (1)	$	254,522
Money market funds (1)		54,588
US treasury and government agency notes (1)		62,350
Foreign government and agency notes (1)		12,389
US state and municipal securities (1)		1,749
Total assets	$	385,598
(1)Included in Cash and cash equivalents, Short-term investments, and Long-term investment securities.See Note 7. Investment Securities.

Financial liabilities measured on a recurring basis are summarized below:

	Fair value,
	July 1, 2012
(in thousands)	Level 2
Current liabilities:
Forward currency contracts (1)	$	472
	Fair value,
	December 31, 2011
(in thousands)	Level 2
Current liabilities:
Forward currency contracts (1)	$	1,780
(1)Included in Accrued liabilities.

Assets/ Liabilities Measured and Recorded at Fair Value on a Non-Recurring Basis

The following liabilities have been measured at fair value on a non-recurring basis, as follows:

	Fair value,
	July 1, 2012
(in thousands)	Level 2
Current liabilities:
2.25% senior convertible notes due October 15, 2025, net (see Note 9.Senior Convertible Notes)	$	68,084
	Fair value,
	December 31, 2011
(in thousands)	Level 2
Current liabilities:
2.25% senior convertible notes due October 15, 2025, net (see Note 9.Senior Convertible Notes)	$	67,913