FAIR VALUE OF ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2011

FAIR VALUE OF ASSETS AND LIABILITIES

FAIR VALUE OF ASSETS AND LIABILITIES

Note 3 FAIR VALUE OF ASSETS AND LIABILITIES

        The Company applies the accounting standard that defines fair value 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 standard establishes a consistent framework for measuring fair value and expands disclosure requirements about 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 June 30, 2011:

		June 30, 2011
		Total		Level 1		Level 2		Level 3
		(in thousands)
Assets
Cash
	Money market funds	$	11,716	$	11,716	$	-	$	-
Short-term investments
	Corporate equity securities		127		127		-		-
	Corporate debt securities, including government-backed securities		9,352		-		9,352		-
Other assets									-
	Auction-rate securities		2,251		-		-		2,251
	Deferred compensation plan assets		4,753		4,753		-		-
	Total	$	28,199	$	16,596	$	9,352	$	2,251

        The table below presents the balances of investments measured at fair value on a recurring basis at December 31, 2010:

		December 31, 2010
		Total		Level 1		Level 2		Level 3
		(in thousands)
Assets
Cash
	Money market funds	$	-	$	-	$	-	$	-
Short-term investments
	Corporate equity securities		158		158		-		-
	Corporate debt securities, including U.S. government-backed securities		19,416		-		19,416		-
Other assets									-
	Auction-rate securities		2,251		-		-		2,251
	Deferred compensation plan assets		3,783		3,783		-		-
	Total	$	25,608	$	3,941	$	19,416	$	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, sovereign government obligations, 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 as significant assumptions that are not observable in the market. The total amount of assets measured using Level 3 valuation methodologies represented less than 1% of total assets as of June 30, 2011 and December 31, 2010.

        A summary of the changes in Level 3 assets measured at fair value on a recurring basis is as follows:

		Balance at January 1, 2011		Total Unrealized Gains		Sales and Other Settlements		Balance at June 30, 2011
		(in thousands)
Auction-rate securities		$	2,251	$	-	$	-		2,251
	Total	$	2,251	$	-	$	-	$	2,251

		Balance at January 1, 2010		Total Unrealized Gains		Sales and Other Settlements			Balance at December 31, 2010
		(in thousands)
Auction-rate securities		$	5,392	$	9	$	(3,150	)		2,251
	Total	$	5,392	$	9	$	(3,150	)	$	2,251