Financial Instruments

9 Months Ended

Sep. 30, 2011

Financial Instruments [Abstract]

Financial Instruments

2.  Financial Instruments

        The Company's financial instruments include cash equivalents, marketable securities, restricted securities, accounts receivable, and accounts payable.  The Company typically values financial assets and liabilities such as receivables, accounts payable, and debt obligations at their carrying values, which approximate fair value due to their generally short-term duration. 

        The Company records certain financial instruments at fair value, including: cash equivalents, certain marketable securities, and certain restricted securities.  These financial instruments are discussed in further detail in the notes below.  The Company may make an irrevocable election to measure other financial instruments at fair value on an instrument-by-instrument basis, although as of September 30, 2011 the Company has not chosen to make any such elections.  Fair value financial instruments are recorded in accordance with the fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair values in their broad levels.  These levels from highest to lowest priority are as follows:

• Level 1:  Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities;
• Level 2:  Quoted prices in active markets for similar assets or liabilities or observable prices that are based on inputs not quoted on active markets, but corroborated by market data; and
• Level 3:  Unobservable inputs or valuation techniques that are used when little or no market data is available.

        The determination of fair value and the assessment of a measurement's placement within the hierarchy require judgment.  Although the Company believes that the recorded fair values of its financial instruments are appropriate, these fair values may not be indicative of net realizable value or reflective of future fair values.

        The following is a summary of the Company's financial instruments measured at fair value (in thousands):

September 30, 2011				Level 1				Level 2			Level 3			Total
Cash equivalents:
Money market funds				$	--			$	5,239		$		--	$			5,239
Restricted securities:
Money market funds					--				5,313				--				5,313
Total assets				$	--			$	10,552		$		--	$			10,552
	December 31, 2010	Level 1				Level 2				Level 3					Total
	Cash equivalents:
	Money market funds	$	--			$	2,056			$		--			$	2,056
	U.S. Treasury debt securities		14,099				--					--				--
	Restricted securities:
	Money market funds		--				309					--				309
	U.S. Treasury debt securities		5,000				--					--				--
	Total assets	$	19,099			$	2,365			$		--			$	21,464

The Company uses prices quoted from its investment management companies to determine the level 2 valuation of its investments in money market funds and securities.