FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2012

FAIR VALUE MEASUREMENTS

4. FAIR VALUE MEASUREMENTS

Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1:	Observable inputs such as quoted prices in active markets;
Level 2:	Inputs include quoted prices for similar instruments in active markets and/or quoted prices for identical or similar instruments in markets that are not active near the measurement date; and
Level 3:	Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The Company classifies its cash equivalents and available for sale investments within Level 1 or Level 2. The fair value of the Company’s high quality investment grade corporate debt securities is determined using proprietary valuation models and analytical tools. These valuation models and analytical tools use market pricing or prices for similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids and/or offers. The Company did not reclassify any investments between levels in the fair value hierarchy during the three or nine months ended September 30, 2012.

The Company’s assets which are measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011 were determined using the inputs described above (in millions):

				Fair Value Measurements Using
	Carrying Value			Quoted Prices in Active  Markets for Identical Assets (Level 1)			Significant Other Observable  Inputs (Level 2)			Significant Unobservable  Inputs (Level 3)
September 30, 2012:
Classified as current assets:
Cash and money market funds	$	43.5		$	43.5		$	—		$	—
Certificates of deposit		16.0			16.0			—			—
Commercial paper		7.0			—			7.0			—
Corporate bonds		111.8			—			111.8			—
Total		178.3			59.5			118.8			—
Less cash, cash equivalents and restricted cash		(48.8	)		(48.8	)		—			—
Total short-term investments		129.5			10.7			118.8			—
Classified as non-current assets:
Certificates of deposit		0.3			0.3			—			—
Corporate bonds		8.6			—			8.6			—
Total long-term investments	$	8.9		$	0.3		$	8.6		$	—
December 31, 2011:
Classified as current assets:
Cash and money market funds	$	50.5		$	50.5		$	—		$	—
Certificates of deposit		5.2			5.2			—			—
Commercial paper		12.5			—			12.5			—
Corporate bonds		65.2			—			65.2			—
Total		133.4			55.7			77.7			—
Less cash, cash equivalents and restricted cash		(54.4	)		(51.1	)		(3.3	)		—
Total investments(1)	$	79.0		$	4.6		$	74.4		$	—

(1) The Company did not hold any long-term available-for-sale securities at December 31, 2011.