v2.3.0.15
Fair Value Disclosure
3 Months Ended
Sep. 30, 2011
Fair Value Disclosure [Abstract] 
Fair Value Disclosure

Note 7. Fair Value Disclosure

The Company accounts for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

 

  •  

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

 

  •  

Level 2 - Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and

 

  •  

Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The financial assets of the Company measured at fair value on a recurring basis are included in cash equivalents and long-term investments. The Company's money market funds are classified within Level 1 of the fair value hierarchy which is based on quoted market prices of the identical underlying securities in active markets. The Company's long-term auction rate securities investments are classified within Level 3 of the fair value hierarchy which did not have observable inputs for its auction rate securities as of September 30, 2011 and June 30, 2011.

The following table sets forth the Company's cash equivalents and long-term investments as of September 30, 2011 and June 30, 2011 which are measured at fair value on a recurring basis by level within the fair value hierarchy. These are classified based on the lowest level of input that is significant to the fair value measurement, (in thousands):

 

September 30, 2011

    Level 1      Level 2      Level 3      Asset at
Fair  Value		  

Money market funds

    $   5,964       $   —         $ —         $   5,964   

Auction rate securities

      —           —           3,669         3,669   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 5,964       $ —         $   3,669       $ 9,633   
  

 

 

     

 

 

     

 

 

     

 

 

  

June 30, 2011

    Level 1      Level 2      Level 3      Asset at
Fair  Value		  

Money market funds

    $ 4,287       $ —         $ —         $ 4,287   

Auction rate securities

      —           —           5,188         5,188   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 4,287       $ —         $ 5,188       $ 9,475   
  

 

 

     

 

 

     

 

 

     

 

 

  

The above table excludes $86,315,000 and $65,656,000 of cash balances held on deposit at banks and $453,000 and $468,000 of certificates of deposit held by the Company as of September 30, 2011 and June 30, 2011, respectively.

The following table provides a reconciliation of the Company's financial assets measured at fair value on a recurring basis, consisting of long-term auction rate securities, using significant unobservable inputs (Level 3) for the three months ended September 30, 2011 and 2010 (in thousands):

 

     Three Months  Ended
September 30,		  
     2011     2010  

Balance as of beginning of period

    $ 5,188      $   6,688   

Total realized gains or (losses) included in net income

      —          —     

Total unrealized gains or (losses) included in other comprehensive income

      156       —     

Sales and settlements at par

      (1,675 )     (900 )

Transfers in and/or out of Level 3

      —          —     
  

 

 

    

 

 

  

Balance as of end of period

    $ 3,669      $ 5,788   
  

 

 

    

 

 

  

 

The Company's short-term investments as of September 30, 2011 and June 30, 2011 were $59,000 and are grouped in prepaid expense and other assets. There was no unrealized holding gain and losses for the periods.

The following is a summary of the Company's long-term investments as of September 30, 2011 and June 30, 2011 (in thousands):

 

     September 30, 2011  
     Amortized
Cost 		     Gross
Unrealized
Holding
Gains		      Gross
Unrealized
Holding
Losses		     Fair Value  

Auction rate securities

    $  3,850       $  —       $ (181 )   $ 3,669   
     June 30, 2011  
     Amortized
Cost		      Gross
Unrealized
Holding
Gains		      Gross
Unrealized
Holding
Losses		     Fair Value  

Auction rate securities

    $ 5,525       $ —       $ (337 )   $ 5,188   

The Company measures the fair value of outstanding debt for disclosure purposes on a recurring basis. As of September 30, 2011 and June 30, 2011, its current and non-current long-term debt of $30,600,000 and $28,151,000, respectively, is reported at amortized cost. The fair value of the outstanding debts is based on borrowing rates currently available to the Company for loans with similar terms, and approximates amortized cost.