Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

On January 1, 2008, we adopted ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) for financial assets and liabilities recognized at fair value on a recurring basis. On January 1, 2009, we adopted ASC 820 for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis. These nonfinancial items include assets and liabilities such as reporting units measured at fair value in a goodwill impairment test and nonfinancial assets acquired and liabilities assumed in a business combination. The adoption of this deferred portion of ASC 820 did not have any impact on our results of operations or financial position.

Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

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

• Level 2—Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

• Level 3—Model derived valuations in which one or more significant inputs or significant value drivers are unobservable.

We measure certain financial assets and liabilities at fair value on a recurring basis, including available-for-sale securities and foreign currency derivatives. The fair value of these certain financial assets and liabilities was determined using the following inputs at December 31, 2011 and 2010, respectively:

	Fair Value Measurements at December 31, 2011 Using
In thousands	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available-for-sale securities(1)
Commercial paper	$	9,996		$	—	$	9,996		$	—
Money market funds	6,706			6,706		—			—
U.S. corporate debt securities	1,440			—		1,440			—
U.S. treasury bills and notes	3,913					3,913			—
Securities and obligations of U.S. government agencies	162,669			—		162,669			—
	184,724			6,706		178,018			—
Foreign currency derivatives(2)	3			—		3			—
Foreign currency derivatives(3)	(1		)	—		(1		)	—
	$	184,726		$	6,706	$	178,020		$	—
	Fair Value Measurements at December 31, 2010 Using
In thousands	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available-for-sale securities(1)
Commercial paper	$	11,994		$	—	$	11,994		$	—
Money market funds	9,593			9,593		—			—
U.S. corporate debt securities	—			—		—			—
U.S. treasury bills and notes	—			—		—			—
Securities and obligations of U.S. government agencies	114,669			—		114,669			—
	136,256			9,593		126,663			—
Foreign currency derivatives(2)	15			—		15			—
Foreign currency derivatives(3)	(41		)	—		(41		)	—
	$	136,230		$	9,593	$	126,637		$	—

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(1) Included in cash and cash equivalents and short-term investments on our consolidated balance sheet. Cash equivalents at December 31, 2011 and 2010 were $15.6 million and $15.6 million, respectively.

(2) Included in current assets on our consolidated balance sheet. Consisted of forward foreign exchange contracts for the Japanese yen. See note 4.

(3) Included in current liabilities on our consolidated balance sheet. Consisted of forward foreign exchange contracts for the Japanese yen. See note 4.