v2.3.0.11
Investments and Fair Value Measurements
 6 Months Ended
Jun. 30, 2011
Investments and Fair Value Measurements [Abstract]  
Fair Value, Measurement Inputs, Disclosure [Text Block]
INVESTMENTS AND FAIR VALUE MEASUREMENTS


The following table summarizes our investments in available-for-sale securities ($ amounts in 000's):
 
 
June 30, 2011
 
Amortized Cost
  
Unrealized Gains
  
Unrealized Losses
 
Estimated Fair Value
Available-for-sale securities:
 
  
 
  
 
 
 
U.S. government and agency securities
16,115


  
14


  
—


 
16,129


Corporate debt securities
305,932


  
230


  
—


 
306,162


Commercial paper
49,476


  
25


  
—


 
49,501


Municipal bonds
6,587


 
14


 
—


 
6,601


Term deposits
12,086


 
—


 
—


 
12,086


Total available-for-sale securities
390,196


  
283


  
—


 
390,479




 
December 31, 2010
 
Amortized Cost
  
Unrealized Gains
  
Unrealized Losses
 
Estimated Fair Value
Available-for-sale securities:
 
  
 
  
 
 
 
U.S. government and agency securities
51,989


 
—


 
(46
)
 
51,943


Corporate debt securities
213,237


 
159


 
—


 
213,396


Commercial paper
38,914


 
5


 
—


 
38,919


Municipal bonds
11,069


 
11


 
—


 
11,080


Term deposits
5,263


 
—


 
—


 
5,263


Total available-for-sale securities
320,472


  
175


  
(46
)
 
320,601




The contractual maturities of our investments are as follows ($ amounts in 000's):
 
 
June 30,

2011
  
December 31,

2010
Due within one year
264,001


 
246,651


Due within one to three years
126,478


 
73,950


Total
390,479


  
320,601




Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, included as a separate component of stockholders' equity and in total comprehensive income. Realized gains and losses on available-for-sale securities are included in other income (expense), net in our consolidated statements of operations.


Realized gains or losses from the sale of available-for-sale securities were not significant for any period presented.
 
Fair Value Accounting—We apply ASC 820 which establishes a valuation hierarchy for disclosure of the inputs to fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows:


Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.


Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.


Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation.
The valuation techniques we use to measure the fair value of money market funds and term deposits were derived from quoted prices in active markets for identical assets or liabilities. The valuation techniques used to measure the fair value of all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data.


We classify investments within Level 1 if quoted prices are available in active markets.


We classify items in Level 2 if the investments are valued using quoted prices for identical assets in markets that are not active, using quoted prices for similar assets in an active market, or using model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets.


The following table presents the fair value of our financial assets as of June 30, 2011 and December 31, 2010 using the ASC 820 input categories ($ amounts in 000's):


 
June 30, 2011
  
December 31, 2010
 
Aggregate
Fair
Value
  
Quoted
Prices in
Active
Markets For
Identical
Assets
  
Significant
Other
Observable
Remaining
Inputs
  
Aggregate
Fair
Value
  
Quoted
Prices in
Active
Markets For
Identical
Assets
  
Significant
Other
Observable
Remaining
Inputs
 
 
  
(Level 1)
  
(Level 2)
  
 
  
(Level 1)
  
(Level 2)
Assets:
 
  
 
  
 
  
 
  
 
  
 
U.S. government and agency securities
16,129


 
—


 
16,129


 
51,943


 
—


 
51,943


Corporate debt securities
306,162


 
—


 
306,162


 
213,396


 
—


 
213,396


Commercial paper
57,500


 
—


 
57,500


 
52,415


 
—


 
52,415


Municipal bonds
10,600


 
—


 
10,600


 
11,080


 
—


 
11,080


Term deposits
12,086


 
12,086


 
—


 
5,263


 
5,263


 
—


Money market funds
32,370


 
32,370


 
—


 
7,078


 
7,078


 
—


Foreign currency contracts
—


 
—


 
—


 
74


 
—


 
74


Total
434,847


 
44,456


 
390,391


 
341,249


 
12,341


 
328,908


Reported as:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
44,368


 
 
 
 
 
20,574


 
 
 
 
Short-term investments
264,001


 
 
 
 
 
246,651


 
 
 
 
Prepaid expenses and other current assets
—


 
 
 
 
 
74


 
 
 
 
Long-term investments
126,478


 
 
 
 
 
73,950


 
 
 
 
Total
434,847


 
 
 
 
 
341,249


 
 
 
 


We did not hold financial assets or liabilities which were recorded at fair value using inputs in the Level 3 category as of June 30, 2011 or December 31, 2010. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the three or six months ended June 30, 2011.