FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2011

Notes To Consolidated Financial Statement Abstract

6. FAIR VALUE MEASUREMENTS

As of June 30, 2011, the Company held certain assets that are required to be measured at fair value on a recurring basis. These included certain of the Company's short-term and long-term investments, including investments in auction rate floating securities.

The Company has invested in auction rate floating securities, which are classified as available-for-sale securities and reflected at fair value. Due to events in credit markets, the auction events for some of these instruments held by the Company failed during the three months ended March 31, 2008 (see Note 5). Therefore, the fair values of these auction rate floating securities, which are primarily rated AAA, are estimated utilizing a discounted cash flow analysis as of June 30, 2011. These analyses consider, among other items, the collateralization underlying the security investments, the creditworthiness of the counterparty, the timing of expected future cash flows, and the expectation of the next time the security is expected to have a successful auction. These investments were also compared, when possible, to other observable market data with similar characteristics to the securities held by the Company. Changes to these assumptions in future periods could result in additional declines in fair value of the auction rate floating securities.

The Company's assets measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820, Fair Value Measurements and Disclosures, at June 30, 2011, were as follows (in thousands):

			Fair Value Measurement at Reporting Date Using
			Quoted		Significant
			Prices in		Other		Significant
			Active		Observable		Unobservable
			Markets		Inputs		Inputs
	June 30, 2011		(Level 1)		(Level 2)		(Level 3)

Corporate notes and bonds	$	361,104	$	361,104	$	-	$	-
Federal agency notes and bonds		251,897		251,897		-		-
Auction rate floating securities		19,884		-		-		19,884
Asset-backed securities		45,049		45,049		-		-
Total assets measured at fair value	$	677,934	$	658,050	$	-	$	19,884

The following tables present the Company's assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2011 (in thousands):

	Fair Value Measurements
	Using Significant Unobservable
	Inputs (Level 3)
	Auction Rate
	Floating
	Securities

Balance at March 31, 2011	$	20,772
Transfers to (from) Level 3		-
Total gains (losses) included in other
(income) expense, net		-
Total gains included in other
comprehensive income		12
Purchases		-
Settlements		(900)
Balance at June 30, 2011	$	19,884


	Fair Value Measurements
	Using Significant Unobservable
	Inputs (Level 3)
	Auction Rate
	Floating
	Securities

Balance at December 31, 2010	$	21,480
Transfers to (from) Level 3		-
Total gains (losses) included in other
(income) expense, net		-
Total gains included in other
comprehensive income		404
Purchases		-
Settlements		(2,000)
Balance at June 30, 2011	$	19,884

- Definition

This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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