Fair Value Measurements

9 Months Ended

Jun. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements [Text Block]

Fair Value Measurements

Under FASB guidance, fair value is defined as the price expected to be received from the sale of an asset or paid to transfer a liability in a transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches, including quoted market prices and discounted cash flows. The FASB guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that the market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect a company’s judgment concerning the assumptions that market participants would use in pricing the asset or liability developed based on the best information available at that time. The fair value hierarchy is broken down into the following three levels based on the reliability of inputs:

• Level 1 – Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices which are readily and regularly available in an active market, valuation of these products can be done without a significant degree of judgment.

• Level 2 – Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments and model-derived valuations in which all significant inputs and significant value drives are observable in active markets.

• Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

As of June 30, 2011, the Company’s financial assets utilizing Level 1 inputs included a short-term investment security traded on an active securities exchange. The Company did not have any financial assets utilizing Level 2 or Level 3 inputs at June 30, 2011 and September 30, 2010.

The following table represents the Company’s fair value hierarchy for financial assets measured at fair value on a recurring basis:

	June 30, 2011 (Level 1)		September 30, 2010 (Level 1)
	(In thousands)
Money market instruments (1)	$	34,276	$	44,239
Semiconductor Manufacturing International Corp.
(SMIC) common stock (2)	2,167		2,156
	$	36,443	$	46,395

(1) Included in cash and cash equivalents

(2) Included in short-term investments

There were no transfers in or out of our Level 1 assets during the three and nine months ended June 30, 2011.

As of June 30, 2011, the Company did not have any liabilities or non-financial assets that are measured on a fair value basis on a recurring basis.

Available-for-sale marketable securities consisted of the following:

June 30, 2011	Amortized Cost			Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
				(In thousands)
Money market instruments	$	34,276		$	—	$	—		$	34,276
Certificates of deposit	11,337			—		—			11,337
SMIC common stock	3,426			—		(1,259		)	2,167
Total	49,039			—		(1,259		)	47,780
Less: Amounts included in cash and cash equivalents and restricted cash	(43,551		)	—		—			(43,551		)
	$	5,488		$	—	$	(1,259	)	$	4,229
September 30, 2010	Amortized Cost			Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
				(In thousands)
Money market instruments	$	44,239		$	—	$	—		$	44,239
Certificates of deposit	9,352			—		—			9,352
SMIC common stock	3,426			—		(1,270		)	2,156
Total	57,017			—		(1,270		)	55,747
Less: Amounts included in cash and cash equivalents and restricted cash	(50,910		)	—		—			(50,910		)
	$	6,107		$	—	$	(1,270	)	$	4,837