Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

3. Fair Value Measurements

Our available-for-sale investments consist of money market funds and auction rate securities and are recorded at fair value in the accompanying Consolidated Balance Sheets in accordance with ASC 320 Investments - Debt and Equity Securities. The change in the fair value of these securities is recorded as a component of other comprehensive income (loss).

The following table presents our available-for-sale investments measured at fair value on a recurring basis, summarized by valuation hierarchy, as of December 31, 2011 and 2010:

			Fair Value Measurements at December 31, 2011
	Balance at  December 31, 2011		Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs  (Level 3)
Money market funds	$	64,068	$	64,068	$	-	$	-
Auction rate securities		3,332		-		-		3,332
Total	$	67,400	$	64,068	$	-	$	3,332

			Fair Value Measurements at December 31, 2010
	Balance at  December 31, 2010		Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs  (Level 2)		Significant Unobservable Inputs  (Level 3)
Money market funds	$	43,958	$	43,958	$	-	$	-
Auction rate securities		3,608		-		-		3,608
Total	$	47,566	$	43,958	$	-	$	3,608

At December 31, 2011, we hold $3,332 in auction rate securities which are classified as Level 3. The fair value of these securities includes $2,392 of U.S. government subsidized securities collateralized by student loan obligations and $940 of investment company perpetual preferred stock. Auction rate securities are collateralized long-term instruments that were intended to provide liquidity through an auction process that resets interest rates at pre-determined intervals. We will not realize cash in respect of the principal amount of these securities until the issuer calls or restructures the security, the security reaches any scheduled maturity and is paid, or a buyer outside the auction process emerges. As of December 31, 2011, we have received all scheduled interest payments on these securities, which, in the event of auction failure, are reset according to the contractual terms in the governing instruments.

The valuation of auction rate securities we hold is based on Level 3 unobservable inputs which consist of our internal analysis of (i) timing of expected future successful auctions, (ii) collateralization of underlying assets of the security and (iii) credit quality of the security. In re-evaluating the valuation of these securities as of December 31, 2011, the temporary impairment amount decreased $24 from $292 at December 31, 2010, to $268, which is reflected as a part of accumulated other comprehensive loss on our accompanying Consolidated Balance Sheets. These securities are held "available-for-sale" and the unrealized loss is included in accumulated other comprehensive loss. Due to the uncertainty related to the liquidity in the auction rate security market and therefore when individual positions may be liquidated, we have classified these auction rate securities as long-term assets on our accompanying Consolidated Balance Sheets. We continue to monitor markets for our investments and consider the impact, if any, of market conditions on the fair market value of our investments. We do not believe the carrying values of our investments are other than temporarily impaired and therefore expect the positions will eventually be liquidated without significant loss.

For those of our financial instruments with significant Level 3 inputs (all auction rate securities), the following tables summarize the activities for the years ended December 31, 2011 and 2010:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Description	2011			2010
Balance at beginning of period	$	3,608		$	3,792
Transfers into Level 3		-			-
Total realized/unrealized gains (losses)
Included in net income (loss)		-			-
Included in comprehensive income (loss) (1)		24			16
Settlements		(300	)		(200	)
Balance at end of period	$	3,332		$	3,608
(1)  Total amount of unrealized gains (losses) for the period included in other comprehensive loss attributable to the change in fair market value of related assets still held at the reporting date	$	-		$	-

The following tables summarize the amortized cost basis, the aggregate fair value and gross unrealized holding gains and losses at December 31, 2011 and 2010:

	Amortized		Fair		Unrealized Holding
	Cost Basis		Value		Gains		(Losses)			Net
2011:
Maturities greater than ten years:
Auction rate securities	$	2,600	$	2,392	$	-	$	(208	)	$	(208	)
Investments without stated maturity dates:
Auction rate securities		1,000		940		-		(60	)		(60	)
	$	3,600	$	3,332	$	-	$	(268	)	$	(268	)

	Amortized		Fair		Unrealized Holding
	Cost Basis		Value		Gains		(Losses)			Net
2010:
Maturities greater than ten years:
Auction rate securities	$	2,900	$	2,668	$	-	$	(232	)	$	(232	)
Investments without stated maturity dates:
Auction rate securities		1,000		940		-		(60	)		(60	)
	$	3,900	$	3,608	$	-	$	(292	)	$	(292	)

We compute the cost of its investments on a specific identification basis. Such cost includes the direct costs to acquire the securities, adjusted for the amortization of any discount or premium.

The following table shows the gross unrealized losses and fair value of our marketable securities with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2011 and 2010.

2011:

	Less than 12 Months				12 Months or Greater					Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Auction rate securities	$	-	$	-	$	3,332	$	(268	)	$	3,332	$	(268	)
Total	$	-	$	-	$	3,332	$	(268	)	$	3,332	$	(268	)

2010:

	Less than 12 Months				12 Months or Greater					Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Auction rate securities	$	-	$	-	$	3,608	$	(292	)	$	3,608	$	(292	)
Total	$	-	$	-	$	3,608	$	(292	)	$	3,608	$	(292	)

Other-than-temporary impairment analysis on auction rate securities. The unrealized losses in our auction rate securities investments were the result of an internal analysis of timing of expected future successful auctions, collateralization of underlying assets of the security and credit quality of the security. At December 31, 2011 and 2010, there were two securities with a gross unrealized loss position of $268 and $292 ($3,332 and $3,608 of the total fair value), respectively.

The severity of the unrealized losses for auction rate securities at December 31, 2011 and 2010 was ranged from 6 percent and 8 percent below amortized cost, and the weighted average duration of the unrealized losses for these securities was 46 and 34 months, respectively.

We have evaluated our individual auction rate securities holdings for other-than-temporary impairment and determined that the unrealized losses as of December 31, 2011 and 2010 are attributable to uncertainty in the liquidity of the auction rate security market. Because we do not intend to sell these securities, and believe it is not more likely than not that we would be required to sell these securities before recovery of principal, we do not consider these securities to be other-than-temporarily impaired at December 31, 2011 and 2010.