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FAIR VALUE MEASUREMENT
 9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT
NOTE 4: FAIR VALUE MEASUREMENT

The Company measures its marketable securities and foreign currency derivative contracts at 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 I Unadjusted quoted prices in active markets that are accessible on the measurement date for identical, unrestricted assets or liabilities;

 

  Level II 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 III 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 marketable securities and foreign currency derivative contracts at fair value. Marketable securities and 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,
2013		      Level I      Level II      Level III  

Assets:

            

Marketable securities:

            

Corporate bonds

    $ 80,503       $ —         $ 80,503       $ —     

Foreign exchange contracts

      65         —           65         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

      80,568         —           80,568         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities:

            

Foreign exchange contracts

      6         —           6         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

      6         —           6         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Description

    December 31,
2012		      Level I      Level II      Level III  

Assets:

            

Marketable securities:

            

Certificates of deposits

    $ 1,959       $ —         $ 1,959       $ —     

Foreign government bond

      575         —           575         —     

Corporate bonds

      66,809         —           66,809         —     

Foreign exchange contracts

      216         —           216         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

      69,559         —           69,559         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities:

            

Foreign exchange contracts

      112         —           112         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

      112         —           112         —     
  

 

 

     

 

 

     

 

 

     

 

 

  

 

In addition to the assets and liabilities described above, the Company’s financial instruments also include cash, cash equivalents, short term bank deposits, trade receivables, other accounts receivable, trade payables, income taxes payable and other accounts payables. The fair values of these financial instruments were not materially different from their carrying values at September 30, 2013 due to the short-term maturities of these instruments.