Financial Instruments

6 Months Ended

Jun. 30, 2011

Financial Instruments

Financial Instruments

(2) Financial InstrumentsAssets recorded at fair value in the balance sheet as of June 30, 2011 are categorized based upon the level of judgment associatedwith the inputs used to measure their fair value. Hierarchical levels, defined by Accounting Standards Codification ("ASC") 820,Fair Value Measurements and Disclosures, which are directly related to the amount of subjectivity associated with the inputs to fairvaluation of these assets, are as follows:Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;Level 2 – Inputs other than Level 1 inputs that are either directly or indirectly observable; andLevel 3 – Unobservable inputs, for which little or no market data exist, therefore requiring an entity to develop its ownassumptions.As of June 30, 2011 we held certain items that are required to be measured at fair value on a recurring basis. The following tablesummarizes the fair value of these financial assets:

				Quoted prices in
				active markets for	Significant other			Significant
				identical assets	observable inputs			unobservable inputs
	Total			(Level 1)	(Level 2)			(Level 3)
Cash and cash equivalents	$	1,412	$	1,412	$	-	$	-
Investments available-for-sale		2,126		25		-		2,101
Total	$	3,538	$	1,437	$	-	$	2,101

Cash and cash equivalents consist primarily of money market funds with original maturity dates of three months or less, for whichwe determine fair value through quoted market prices. Investments available-for-sale consist of two auction rate municipalsecurities ("ARS") which are collateralized debt obligations supported by municipal agencies and do not include mortgage-backedsecurities. These ARS are debt instruments with stated maturities of 21 and 31 years, for which the interest rate is designed to bereset through Dutch auctions approximately every 30 days. However, due to events in the credit markets, auctions for thesesecurities have not occurred since February 2008. Both of our ARS have had a series of very small partial redemptions at par inthe period from July 2009 through July 2011. As of June 30, 2011 we have continued to earn and collect interest on both of ourARS.Because quoted prices in active markets are no longer available we determined the estimated fair values of these securities utilizinga discounted trinomial model. The model considers the probability of three potential occurrences for each auction event throughthe maturity date of each ARS. The three potential outcomes for each auction are (i) successful auction/early redemption, (ii)failed auction and (iii) issuer default. Inputs in determining the probabilities of the potential outcomes include but are not limitedto, the securities' collateral, credit rating, insurance, issuer's financial standing, contractual restrictions on disposition and theliquidity in the market. The fair value of each ARS is determined by summing the present value of the probability-weighted future

principal and interest payments determined by the model. Since there can be no assurances that auctions for these securities willbe successful in the near future, we have classified our ARS as non-current investments.The par and carrying values, and related cumulative unrealized loss for our non-current investments available-for-sale as of June30, 2011 are as follows:

			Temporary		Carrying
	Par Value		Impairment		Value
$	2,525	$	424	$	2,101

We consider the impairment in our ARS as temporary because we do not have the intent to sell, nor is it more-likely-than-not thatwe will be required to sell these securities before recovery of their cost basis. We believe that this decline in fair value istemporary, because the underlying assets of these securities are supported by municipal agencies and do not include mortgage-backed securities, have redemption features which call for redemption at 100% of par value and have a current credit rating of A orAA. The ratings on the ARS take into account credit support through insurance policies guaranteeing each of the bonds' paymentof principal and accrued interest, if it becomes necessary. In addition, both ARS have had a series of very small partialredemptions at par in the period July 2009 through July 2011. We did not record any unrealized gains or losses on our ARS in thesix months ended June 30, 2011. Based on our cash and cash equivalents balance of $1.4 million, expected operating cash flowsand a $150.0 million credit line, we do not believe a lack of liquidity associated with our ARS will adversely affect our ability toconduct business, and believe we have the ability to hold the securities throughout the currently estimated recovery period. Wewill continue to evaluate any changes in the market value of our ARS and in the future, depending upon existing marketconditions, we may be required to record an other-than-temporary decline in market value.The following table reflects the activity for assets measured at fair value using Level 3 inputs for the six months endedJune 30, 2011:

Balance as of December 31, 2010	$	2,126
Transfers into level 3		-
Transfers out of level 3		-
Unrealized gains included in accumulated other comprehensive loss		-
Balance as of March 31, 2011		2,126
Transfers into level 3		-
Transfers out of level 3		(25	)
Unrealized losses included in accumulated other comprehensive loss		-
Balance as of June 30, 2011	$	2,101