Fair Value Measurements

6 Months Ended

Jun. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

(5) Fair Value Measurements

The Company measures certain financial instruments, including Cash and Cash Equivalents, such as money market funds, at their fair value.  The fair value was determined based on a three-tier valuation hierarchy for disclosure of significant inputs.  These hierarchical tiers are defined as follows:

Level 1 – inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 – inputs are other than quoted prices in active markets that are either directly or indirectly observable through market corroboration.

Level 3 – inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions based on the best information available in the circumstances.

The following tables provide the assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2011 and December 31, 2010 (in thousands):

			Fair Value Measurements at June 30, 2011 Using
	Total Carrying Value at June 30, 2011		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash and Cash Equivalents (1)	$	420,978	$	420,978	$	-	$	-
Restricted Cash (1)		32,443		32,443		-		-
Short-term investments (2)		1,154		1,154		-		-
Long-term Investments – Auction rate securities (3)		88,129		-		-		88,129
Total	$	542,704	$	454,575	$	-	$	88,129

			Fair Value Measurements at December 31, 2010 Using
	Total Carrying Value at December 31, 2010		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash and Cash Equivalents (1)	$	471,378	$	471,378	$	-	$	-
Restricted Cash (1)		23,550		23,550		-		-
Short-term investments (2)		28		28		-		-
Long-term Investments –  Auction rate securities (3)		88,129		-		-		88,129
Total	$	583,085	$	494,956	$	-	$	88,129

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(1) Cash, Cash Equivalents and Restricted Cash consist primarily of money market funds with original maturity dates of three months or less, for which fair value is determined through quoted market prices.

(2) Short-term Investments are included in Other Current Assets and consist of certificates of deposit with original maturity dates in excess of three months and an S&P 500 index mutual fund.   The fair values are determined through quoted market prices.

(3) At June 30, 2011 and December 31, 2010, the Company had $88.1 million invested in auction rate securities (“ARS”) which the Company considers as available-for-sale.  The majority of the ARS held by the Company at June 30, 2011, are in securities collateralized by student loan portfolios, totaling $67.9 million, which are guaranteed by the U.S. government.  Additional amounts totaling $12.2 million are invested in securities collateralized by student loan portfolios, which are privately insured.  The remainder of the securities, totaling $8.0 million, is invested in tax-exempt bonds.  Most of the Company's ARS are rated AAA or AA.  The Company estimated the fair value of its ARS utilizing an income approach valuation model which considered, among other items, the following inputs: (i) the underlying structure of each security; (ii) the present value of future principal and interest payments discounted at rates considered to reflect current market conditions; and (iii) consideration of the probabilities of default or repurchase at par for each period.

Assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2011 and 2010 are as follows (in thousands):

	Auction Rate Securities
Balance at December 31, 2010	$	88,129
Purchases		-
Settlements		-
Balance at March 31, 2011		88,129
Purchases		-
Settlements		-
Balance at June 30, 2011	$	88,129

	Auction Rate Securities
Balance at December 31, 2009	$	101,201
Purchases		-
Settlements		(375	)
Balance at March 31, 2010		100,826
Purchases		-
Settlements		(150	)
Impairment charge included in Other Income (Expense), net		(360	)
Balance at June 30, 2010	$	100,316

Due to the Company's belief that the market for both government-backed and privately insured student loans, as well as for tax-exempt municipal bonds, may take in excess of twelve months to fully recover, the Company has classified its $88.1 million investment in these securities as non-current and this amount is included in Long-term Investments in the Consolidated Condensed Balance Sheet at June 30, 2011.

The carrying amount of Cash and Cash Equivalents approximates fair value due to the short-term nature of these items. The carrying value of receivables, payables, other amounts arising out of normal contract activities, including retainage, which may be settled beyond one year, is estimated to approximate fair value.  Of the Company's Long-term Debt, the fair value of the fixed rate senior unsecured notes as of June 30, 2011 is $285.8 million, compared to its carrying value of $297.9 million.  The fair value of the senior unsecured notes was estimated based on market quotations at June 30, 2011.  For the remainder of the Company's Long-term Debt, the carrying value is estimated to approximate fair value.