Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

3.  Fair Value Measurements

The fair value of our financial instruments are estimates of the amounts that would be received if we were to sell an asset or we paid to transfer a liability in an orderly transaction between market participants at the measurement date or exit price. The assets and liabilities are categorized and disclosed in one of the following three categories:

Level 1 – based on quoted market prices in active markets for identical assets and liabilities;

Level 2 – based on quoted market prices for similar assets and liabilities, using observable market based inputs or unobservable market based inputs corroborated by market data; and

Level 3 – based on unobservable inputs using management's best estimate and assumptions when inputs are unavailable. As of September 30, 2011, and December 31, 2010, we had no Level 3 assets or liabilities.

The following table summarizes assets and liabilities recorded at fair value by classification category:

	September 30, 2011						December 31, 2010
(In thousands)	Level 1		Level 2		Total		Level 1		Level 2		Total
Assets:
Money market funds	$	151,497	$	-	$	151,497	$	203,318	$	-	$	203,318
Corporate debt securities		49,523		-		49,523		20,434		-		20,434
Commercial paper		-		6,943		6,943		-		7,998		7,998
U.S. government sponsored agency bonds		6,223		-		6,223		8,725		-		8,725
U.S. treasury securities		5,514		-		5,514		1,997		-		1,997
Foreign currency hedge contracts		-		11,174		11,174		-		17,763		17,763
Total	$	212,757	$	18,117	$	230,874	$	234,474	$	25,761	$	260,235
Liabilities:
Foreign currency hedge contracts	$	-	$	13,883	$	13,883	$	-	$	12,810	$	12,810

The fair value of commercial paper is estimated based on observable inputs of comparable securities.

The fair value of the foreign currency hedging contracts is estimated based on pricing models using readily observable inputs from actively quoted markets and are disclosed on a gross basis.

We do not estimate the fair value of our royalty assets for financial statement reporting purposes.