Short-Term Investments

9 Months Ended

Sep. 30, 2011

Short-Term Investments [Abstract]

Short-Term Investments

(5) Short-Term Investments

The Company’s short-term investments totaling $223.6 million consist of U.S. treasury bills and notes that are issued by the U.S. government, all of which are accounted for as trading securities. The Company’s short-term investment amount represents a portion of the net proceeds from the Company’s April 2011 senior note issuance after repaying all of its revolving credit facility borrowings. Trading securities are recorded at fair value with the unrealized holding gains and losses included in net income. Included in interest expense, net is $0.1 million of income for the nine months ended September 30, 2011 related to these short-term investments. The Company intends to use these funds, together with $117.5 million of cash and cash equivalents that was available at September 30, 2011 to partially fund the redemption of the $400 million aggregate principal amount of the 1.50% senior exchangeable notes due 2026. The remainder will be funded by borrowings under the revolving credit facility. The 1.50% senior exchangeable notes become subject to redemption on December 15, 2011 at a redemption price of 100% of the principal amount of the notes outstanding (see note 8). On October 17, 2011, the Company issued notice to the holders of the senior exchangeable notes that it will redeem all of the senior exchangeable notes on December 15, 2011.