FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2011

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

7.     FAIR VALUE MEASUREMENTS

• Assets and Liabilities Measured at Fair Value on a Recurring Basis

  The following fair value hierarchy table presents the components of the Company's financial assets and liabilities measured at fair value as of September 30, 2011 and December 31, 2010:

				As of September 30, 2011										As of December 31, 2010
				Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
	Cash equivalents:
		Money market funds		$	78,340		$	78,340	$	—	$	—		$	91,448		$	91,448	$	—	$	—
	Marketable securities:
		Available-for-sale debt securities:
			Corporate bonds		2,967			2,967		—		—			6,340			—		6,340		—
			Government-sponsored enterprise securities		—			—		—		—			1,826			—		1,826		—
				$	81,307		$	81,307	$	—	$	—		$	99,614		$	91,448	$	8,166	$	—
Liabilities:
	Acquisition-related contingent consideration			$	(424,317	)	$	—	$	—	$	(424,317	)	$	(20,220	)	$	—	$	—	$	(20,220	)

• Fair value measurements are estimated based on valuation techniques and inputs categorized as follows:

  •

  Level 1 — Quoted prices in active markets for identical assets or liabilities;

  •

  Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

  •

  Level 3 — Unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using discounted cash flow methodologies, pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

  If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

  The fair value measurement of contingent consideration obligations arising from business combinations is determined using unobservable (Level 3) inputs. These inputs include (i) the estimated amount and timing of projected cash flows; (ii) the probability of the achievement of the factor(s) on which the contingency is based; and (iii) the risk-adjusted discount rate used to present value the probability-weighted cash flows. The following table presents a reconciliation of contingent consideration obligations measured on a recurring basis for the nine months ended September 30, 2011:

	Balance, January 1, 2011		Issuances		Net Unrealized Loss (Gain)(a)		Foreign Exchange(b)			Transfers Into Level 3		Transfers Out of Level 3		Balance, September 30, 2011
Acquisition-related contingent consideration		20,220		397,150		9,042		(2,095	)		—		—		424,317

(a)

Recognized as acquisition-related contingent consideration in the consolidated statements of income (loss).

(b)

Included in foreign exchange and other in the consolidated statements of income (loss).

• Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

  There were no significant assets or liabilities that were re-measured at fair value on a non-recurring basis subsequent to initial recognition in the nine months ended September 30, 2011.