FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2012

FINANCIAL INSTRUMENTS [Abstract]

Summary of available-for-sale securities

The following is a summary of available-for-sale securities as of December 31, 2012 (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
U.S. government obligations and agency securities	$	6,775	$	54	$	-	$	6,829
U.S. corporate debt		651		13		-		664
Foreign corporate debt and equity securities		1,837		36		-		1,873
Total available-for-sale securities	$	9,263	$	103	$	-	$	9,366

The following is a summary of available-for-sale securities as of December 31, 2011 (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
U.S. government obligations and agency securities	$	19,421	$	177	$	-		$	19,598
U.S. corporate debt		24,942		259		(101	)		25,100
Foreign government obligations and agency securities		2,805		6		(1	)		2,810
Foreign corporate debt and equity securities		15,157		41		(268	)		14,930
Total available-for-sale securities	$	62,325	$	483	$	(370	)	$	62,438

Contractual maturities of available for sale securities

Contractual maturities of available-for-sale securities as of December 31, 2012 and 2011 are as follows (in thousands):

	December 31,		December 31,
	2012		2011
Less than one year	$	7,083	$	7,937
One to two years		664		25,785
More than two years		1,619		28,716
Total available-for-sale securities	$	9,366	$	62,438

Notional values of entity's foreign currency forward contracts mature within 12 months

As of December 31, 2012 and 2011, the total notional values of the Company's derivative assets and liabilities that mature within 12 months are as follows (in thousands):

	December 31,		December 31,
	2012		2011
Euro	$	16,933	$	11,851
Japanese yen		10,542		7,008
British pound		4,278		4,459
Interest rate swap		27,519		-
Total	$	59,272	$	23,318

Entity's foreign currency derivatives measured at fair value

The following table shows the Company's foreign currency derivatives measured at fair value as reflected on the accompanying Consolidated Balance Sheets as of December 31, 2012 and 2011 (in thousands):

	December 31,		December 31,		Balance Sheet
	2012		2011		Classification
Derivative assets:
Foreign exchange contracts	$	842	$	940	Other current assets
Derivative liabilities:
Foreign exchange contracts		752		217	Accrued liabilities
Interest rate swap		77		-	Accrued liabilities

Effect of entity's derivative instruments, net of tax, on Condensed Statements of Operations

The following table shows the effect, net of tax, of the Company's derivative instruments on the accompanying Consolidated Statements of Operations and OCI for the years ended December 31, 2012, 2011 and 2010 (in thousands):

	Year ended December 31,
	2012			2011			2010
Derivatives in cash flow hedging relationships:
Net (loss) gain recognized in OCI, net of tax (1)	$	(794	)	$	826		$	-
Net gain reclassified from accumulated OCI into income, net of tax (2)		1,226			-			-
Net gain (loss) recognized in other income and expense (3)		109			(103	)		-
Derivatives not designated as hedging relationships:
Net (loss) gain recognized in income (4)		(539	)		(1,720	)		957

(1) Net change in the fair value of the effective portion classified in OCI

(2) Effective portion classified as revenue

(3) Ineffective portion and amount excluded from effectiveness testing classified as Interest and other, net

(4) Classified in Interest and other, net