Investments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Available-for-Sale Short-Term Investments

Our available-for-sale short-term investments as of September 30, 2012 and December 31, 2011 are as follows (in thousands):

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
September 30, 2012
U.S. Government and sponsored entities	$	14,518	$	47	$	—		$	14,565
Foreign government securities		2,002		—		(1	)		2,001
Corporate debt securities		51,981		350		(2	)		52,329
Municipal securities		1,708		3		—			1,711
Mortgage-backed securities – residential		10,986		50		(18	)		11,018
Total short-term investments	$	81,195	$	450	$	(21	)	$	81,624
December 31, 2011
U.S. Government and sponsored entities	$	21,366	$	85	$	(10	)	$	21,441
Foreign government securities		3,782		—		(4	)		3,778
Corporate debt securities		62,218		182		(117	)		62,283
Mortgage-backed securities – residential		11,592		48		(42	)		11,598
Total short-term investments	$	98,958	$	315	$	(173	)	$	99,100

Summary of Fair Value and Duration of Investments, Including Cash Equivalents, that have been Classified in Gross Unrealized Loss Position

The fair value and duration that investments, including cash equivalents, have been in a gross unrealized loss position as of September 30, 2012 and December 31, 2011 are as follows (in thousands):

	Less than 12 Months					More than 12 Months					TOTAL
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2012
Foreign government securities	$	2,001	$	(1	)	$	—	$	—		$	2,001	$	(1	)
Corporate debt securities		2,666		(2	)		—		—			2,666		(2	)
Mortgage-backed securities – residential		2,348		(9	)		425		(9	)		2,773		(18	)
Total	$	7,015	$	(12	)	$	425	$	(9	)	$	7,440	$	(21	)
December 31, 2011
U.S. Government and sponsored entities	$	3,510	$	(10	)	$	—	$	—		$	3,510	$	(10	)
Foreign government securities		3,778		(4	)		—		—			3,778		(4	)
Corporate debt securities		16,708		(108	)		1,006		(9	)		17,714		(117	)
Mortgage-backed securities – residential		3,508		(42	)		1		—			3,509		(42	)
Total	$	27,504	$	(164	)	$	1,007	$	(9	)	$	28,511	$	(173	)

Amortized Cost and Estimated Fair Value of Investments

Amortized cost and estimated fair value of investments at September 30, 2012 is summarized by maturity date as follows (in thousands):

	Amortized cost		Fair value
Mature in less than one year	$	35,249	$	35,345
Mature in one to three years		45,946		46,279
Total short-term investments	$	81,195	$	81,624

Investments in Accordance with Fair Value Hierarchy

Our investments and liabilities measured at fair value have been presented in accordance with the fair value hierarchy specified in ASC 820 as of September 30, 2012 and December 31, 2011 in order of liquidity as follows (in thousands):

			Fair Value Measurements at Reporting Date using
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant other Observable Inputs (Level 2)		Unobservable Inputs (Level  3)
September 30, 2012
Assets:
Money market funds	$	17,877	$	17,877	$	—	$	—
U.S. Government and sponsored entities		14,565		7,347		7,218		—
Foreign government securities		2,001		—		2,001		—
Corporate debt securities		53,694		—		53,659		35
Municipal securities		1,711		—		1,711		—
Mortgage-backed securities – residential		11,018		—		11,018		—
	$	100,866	$	25,224	$	75,607	$	35
Liabilities:
Contingent consideration, current and noncurrent	$	30,379	$	—	$	—	$	30,379
Self-insurance		1,497		—		—		1,497
	$	31,876	$	—	$	—	$	31,876
December 31, 2011
Assets:
Money market funds	$	50,532	$	50,532	$	—	$	—
U.S. Government and sponsored entities		21,441		9,194		12,247		—
Foreign government securities		3,778		—		3,778		—
Corporate debt securities		62,283		—		62,239		44
Mortgage-backed securities – residential		11,598		—		11,598		—
	$	149,632	$	59,726	$	89,862	$	44
Liabilities:
Contingent consideration, current and noncurrent	$	8,704	$	—	$	—	$	8,704
Self-insurance		1,640		—		—		1,640
	$	10,344	$	—	$	—	$	10,344

Schedule of Accumulated Other-than-Temporary Credit-Related Impairments Charged to Retained Earnings and Other Income (Expense), Net

Based on this analysis, there were no other-than-temporary impairments, including credit-related impairments, during the nine months ended September 30, 2012 and 2011. Accumulated other-than-temporary credit-related impairments charged to retained earnings and interest and other income, net, consists of the following (in thousands):

	Impairments Charged to Retained Earnings		Impairments Recognized in Other Income (Expense), Net		TOTAL
Accumulated impairments, net, attributable to assets still held at September 30, 2012	$	58	$	824	$	882

Changes in Fair Value of Contingent Consideration Recognized in General and Administrative Expense

Changes in the fair value of contingent consideration are summarized as follows:

Fair value of contingent consideration at January 1, 2011	$	2,744
Fair value of Streamline contingent consideration at February 16, 2011		1,320
Fair value of Entrac contingent consideration at July 25, 2011		2,730
Fair value of Alphagraph contingent consideration at December 6, 2011		2,588
Changes in valuation		1,538
Payment		(2,125	)
Foreign currency adjustment		(91	)
Fair value of contingent consideration at December 31, 2011	$	8,704
Fair value of Cretaprint contingent consideration at January 10, 2012	$	16,445
Fair value of FX Colors contingent consideration at April 5, 2012		190
Fair value of Metrics contingent consideration at April 10, 2012		5,582
Deferred compensation cost dependent on future employment		678
Changes in valuation		(476	)
Payments		(382	)
Foreign currency adjustment		(362	)
Fair value of contingent consideration at September 30, 2012	$	30,379

Schedule of Liability for Self-Insurance

Changes in the contingent liability for self-insurance are summarized as follows:

Fair value of self-insurance liability at January 1, 2011	$	—
Additions to reserve		11,840
Employee contributions		2,710
Less: insurance claims and administrative fees paid		(12,910	)
Fair value of self-insurance liability at December 31, 2011	$	1,640
Additions to reserve		9,380
Employee contributions		1,769
Less: insurance claims and administrative fees paid		(11,292	)
Fair value of self-insurance liability at September 30, 2012	$	1,497