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Fair Value Measurements
9 Months Ended
Sep. 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 September 30, 2011, the carrying value of cash and cash equivalents, accounts receivable and payable, short-term borrowings, accrued liabilities, and certain other financial assets and liabilities approximated fair value due to the short maturities of these instruments.

        As of September 30, 2011 and December 31, 2010, the Company held cash of $17.0 million and $17.3 million, respectively. The Company also held cash equivalents in money market funds and short-term certificates of deposit that were subject to the disclosure requirements of the fair value accounting guidance. The net carrying value of the Company's cash equivalents as of September 30, 2011 and December 10, 2010 was $0.5 million and $45.3 million, respectively, which was equal to the fair value based upon Level 1 inputs.

        The Company uses a discounted cash flow technique that incorporates a market interest rate adjusted for risk profile based upon Level 3 inputs to determine the fair value of its long-term debt. The carrying amount reported in the consolidated balance sheet at September 30, 2011 for the current portion of long-term debt was $10.0 million. The Company estimated the fair value of that debt to be $9.9 million at September 30, 2011. The carrying amount reported in the consolidated balance sheet as of December 31, 2010 for long-term debt was $30.0 million, and the Company determined the fair value of that debt to be $29.6 million at December 31, 2010.