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Fair Value Measurment
9 Months Ended
Sep. 30, 2011
Fair Value Measurment [Abstract] 
Fair Value Measurment

NOTE 4:    FAIR VALUE MEASURMENT

FASB ASC No. 820, "Fair Value Measurements and Disclosures" defines fair value, and establishes a framework for measuring fair value. Fair value is an exit price, representing the amount that would be received for selling an asset or paid for the transfer of 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 a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:

 

Level 1

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

Level 2

    Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3

    Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The Company measures its bank deposits, marketable securities and foreign currency derivative contracts at fair value. Bank deposits and marketable securities are classified within Level 1 or Level 2 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

The table below sets forth the Company's assets and liabilities measured at fair value by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

 

Description

    September 30,
2011		      Level I      Level II      Level III  

Assets:

            

Short term bank deposits

    $ 34,527       $ —         $ 34,527       $ —     

Marketable securities:

            

Certificates of deposits

      2,750         —           2,750         —     

Government securities

      592         —           592         —     

Corporate bonds and securities

      76,668         —           76,668         —     

Long term bank deposits

      18,369         —           18,369         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

      132,906         —           132,906         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities:

            

Foreign exchange contracts

      165         —           165         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

      165         —           165         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Description

    December 31,
2010		      Level I      Level II      Level III  

Assets:

            

Short term bank deposits

    $ 24,807       $ —         $ 24,807       $ —     

Marketable securities:

            

Certificates of deposits

      5,361         4,316         1,045         —     

Corporate bonds and securities

      68,513         —           68,513         —     

Foreign exchange contracts

      241         —           241         —     

Long term bank deposits

      15,173         —           15,173         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

      114,095         4,316         109,779         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities:

            

Foreign exchange contracts

      709         —           709         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

      709         —           709         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

In addition to the assets and liabilities described above, the Company's financial instruments also include cash, cash equivalents, trade receivables, other accounts receivable, trade payables and accrued expenses and other payables. The fair values of these financial instruments were not materially different from their carrying values at September 30, 2011 due to the short-term maturities of these instruments.