FAIR VALUE OF ASSETS AND LIABILITIES

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

FAIR VALUE OF ASSETS AND LIABILITIES

FAIR VALUE OF ASSETS AND LIABILITIES

Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price)”. The accounting standard establishes a consistent framework for measuring fair value and expands disclosure requirements regarding fair value measurements. This accounting standard, among other things, requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The table below presents the balances of investments measured at fair value on a recurring basis at September 30, 2012:

	September 30, 2012
	Total		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash
Money market funds	$	1,029	$	1,029	$	—	$	—
Short-term investments
Corporate equity securities	2,136		2,136		—		—
Total short-term investments	2,136		2,136		—		—
Other assets
Auction-rate securities	1,066		—		—		1,066
Investment funds - Deferred compensation plan assets
Institutional money market funds	1,500		1,500		—		—
Fixed income	2,977		2,977		—		—
Marketable equity securities	470		470		—		—
Total institutional funds - Deferred compensation plan	4,947		4,947		—		—
Total other assets	6,013		4,947		—		1,066
Total	$	9,178	$	8,112	$	—	$	1,066

The table below presents the balances of investments measured at fair value on a recurring basis at December 31, 2011:

	December 31, 2011
	Total		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash
Money market funds	$	18,164	$	18,164	$	—	$	—
Short-term investments
Corporate debt securities	3,079		—		3,079		—
Total short-term investments	3,079		—		3,079		—
Other assets
Auction-rate securities	2,251		—		—		2,251
Investment funds - Deferred compensation plan assets
Institutional money market funds	549		549		—		—
Fixed income	1,613		1,613		—		—
Marketable equity securities	2,737		2,737		—		—
Total institutional funds - Deferred compensation plan	4,899		4,899		—		—
Total other Assets	7,150		4,899		—		2,251
Total	$	28,393	$	23,063	$	3,079	$	2,251

The Company’s investments, with the exception of auction-rate securities, are classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities and money market securities. Such instruments are generally classified within Level 1 of the fair value hierarchy. The types of instruments valued based on other observable inputs include corporate debt securities and other obligations. Such instruments are generally classified within Level 2 of the fair value hierarchy.

Auction-rate securities are classified within Level 3 because significant assumptions for such securities are not observable in the market. The total amount of assets measured using Level 3 valuation methodologies represented less than 1% of the Company's total assets as of September 30, 2012. The Company redeemed one auction rate security in the open market at book value of $1.2 million in the nine months ended September 30, 2012.

There were no changes in Level 3 assets measured at fair value on a recurring basis for the three and nine months ended September 30, 2012 and the year ended December 31, 2011. There were no transfers between Level 1 and 2 hierarchies for the three and nine months ended September 30, 2012.