Investments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Available-for-Sale Short-Term Investments

Our available-for-sale short-term investments as of June 30, 2013 and December 31, 2012 are as follows (in thousands):


	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
June 30, 2013
U.S. Government and sponsored entities	$	5,033	$	2	$	(1	)	$	5,034
Corporate debt securities		38,302		114		(87	)		38,329
Municipal securities		1,709		1		(4	)		1,706
Asset-backed securities		11,702		61		(21	)		11,742
Mortgage-backed securities – residential		6,751		22		(34	)		6,739

Total short-term investments	$	63,497	$	200	$	(147	)	$	63,550


December 31, 2012
U.S. Government and sponsored entities	$	17,371	$	7	$	—		$	17,378
Corporate debt securities		40,218		194		(17	)		40,395
Municipal securities		1,710		3		—			1,713
Asset-backed securities		12,128		66		(2	)		12,192
Mortgage-backed securities – residential		9,237		63		(12	)		9,288

Total short-term investments	$	80,664	$	333	$	(31	)	$	80,966

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 June 30, 2013 and December 31, 2012 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
June 30, 2013
U.S. Government and sponsored entities	$	1,439	$	(1	)	$	—		$	—		$	1,439	$	(1	)
Corporate debt securities		18,228		(87	)		—			—			18,228		(87	)
Municipal securities		831		(4	)		—			—			831		(4	)
Asset-backed securities		6,935		(21	)		—			—			6,935		(21	)
Mortgage-backed securities – residential		3,782		(28	)		(233	)		(6	)		3,549		(34	)

Total	$	31,215	$	(141	)	$	(233	)	$	(6	)	$	30,982	$	(147	)


December 31, 2012
U.S. Government and sponsored entities	$	15,791	$	(1	)	$	—		$	—		$	15,791	$	(1	)
Corporate debt securities		11,288		(17	)		—			—			11,288		(17	)
Asset-backed securities		1,959		(2	)		—			—			1,959		(2	)
Mortgage-backed securities – residential		1,263		(7	)		(300	)		(4	)		963		(11	)

Total	$	30,301	$	(27	)	$	(300	)	$	(4	)	$	30,001	$	(31	)

Amortized Cost and Estimated Fair Value of Investments

Amortized cost and estimated fair value of investments at June 30, 2013 is summarized by maturity date as follows (in thousands):


	Amortized cost		Fair value
Mature in less than one year	$	11,829	$	11,855
Mature in one to three years		51,668		51,695

Total short-term investments	$	63,497	$	63,550

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 June 30, 2013 and December 31, 2012 in order of liquidity as follows (in thousands):


			Fair Value Measurements at Reporting Date using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
June 30, 2013
Assets:
Money market funds	$	123,502	$	123,502	$	—	$	—
U.S. Government and sponsored entities		5,034		—		5,034		—
Corporate debt securities		41,691		—		41,691		—
Municipal securities		1,706		—		1,706		—
Asset-backed securities		11,742		—		11,672		70
Mortgage-backed securities – residential		6,739		—		6,739		—

	$	190,414	$	123,502	$	66,842	$	70

Liabilities:
Contingent consideration, current and noncurrent	$	29,627	$	—	$	—	$	29,627
Self-insurance		1,558		—		—		1,558

	$	31,185	$	—	$	—	$	31,185


December 31, 2012
Assets:
Money market funds	$	112,714	$	112,714	$	—	$	—
U.S. Government and sponsored entities		20,177		15,214		4,963		—
Corporate debt securities		42,069		—		42,069		—
Municipal securities		1,713		—		1,713		—
Asset-backed securities		12,192		—		12,139		53
Mortgage-backed securities – residential		9,288		—		9,288		—

	$	198,153	$	127,928	$	70,172	$	53

Liabilities:
Contingent consideration, current and noncurrent	$	38,050	$	—	$	—	$	38,050
Self-insurance		1,375		—		—		1,375

	$	39,425	$	—	$	—	$	39,425

Schedule of Accumulated Other-than-Temporary Credit-Related Impairments Charged to Retained Earnings and Interest and Other Expense Net

Accumulated other-than-temporary credit-related impairments charged to retained earnings and interest and other expense, 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 June 30, 2013	$	58	$	824	$	882

Summary of Changes in Fair Value of Contingent Consideration

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


Fair value of contingent consideration at January 1, 2012	$	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
Fair value of OPS contingent consideration at October 1, 2012		2,600
Fair value of Technique contingent consideration at November 16, 2012		4,410
Deferred compensation expense dependent on future employment		907
Changes in valuation		(432	)
Payments		(968	)
Foreign currency adjustment		612

Fair value of contingent consideration at December 31, 2012	$	38,050
Fair value of PrintLeader contingent consideration at May 8, 2013		389
Fair value of GamSys contingent consideration at May 31, 2013		2,640
Deferred compensation expense dependent on future employment		465
Changes in valuation		(828	)
Payments		(10,616	)
Foreign currency adjustment		(473	)

Fair value of contingent consideration at June 30, 2013	$	29,627

Summary of Changes in Contingent 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, 2012	$	1,640
Additions to reserve		12,440
Employee contributions		2,340
Less: insurance claims, stop loss premium, and administrative fees paid		(15,045	)

Fair value of self-insurance liability at December 31, 2012	$	1,375
Additions to reserve		5,920
Employee contributions		1,154
Less: insurance claims, stop loss premium, and administrative fees paid		(6,891	)

Fair value of self-insurance liability at June 30, 2013	$	1,558

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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