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Fair Value Measurements
 6 Months Ended
Jun. 30, 2011
Fair Value Measurements  
Fair Value Measurements

2. Fair Value Measurements

        The accounting guidance provided by ASC 820 defines fair value, establishes methods used to measure fair value, and expands disclosure requirements about fair value measurements. The fair value accounting guidance establishes a three-tier hierarchy of fair value measurement, which prioritizes the inputs used in measuring fair value based upon their degree of availability in external active markets. These tiers include: Level 1 (the highest priority), defined as observable inputs, such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 (the lowest priority), defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

        As of June 30, 2011, the carrying value of cash and cash equivalents, accounts receivable and payable, accrued liabilities, and certain other financial assets and liabilities approximated fair value due to the short maturities of these instruments.

        As of June 30, 2011, the Company held cash of $24.8 million. The Company also held cash equivalents in money market funds that were subject to the disclosure requirements of the fair value accounting guidance. The net carrying value of the Company's cash equivalents was $10.6 million, which was equal to the fair value at June 30, 2011 based upon Level 1 inputs.

        The carrying amount reported in the consolidated balance sheet as of June 30, 2011 for long-term debt was $10.0 million. Using a discounted cash flow technique that incorporates a market interest rate adjusted for risk profile based upon Level 3 inputs, the Company estimated the fair value of its debt to be $9.9 million at June 30, 2011.