XML 38 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2011
Fair Value of Financial Instruments  
Fair Value of Financial Instruments

Note 3: Fair Value of Financial Instruments

        The estimated fair values of financial instruments outstanding at December 31, 2011 and 2010 were as follows (in thousands):

 
   2011  
 
   Cost   Unrealized
Gains 		  Unrealized
Losses 		  Fair
Value 		 

Cash and cash equivalents

   $ 40,025   $ —   $ —   $ 40,025  
                   

Short-term investments:

                          

U.S. government debt securities

   $ 4,834   $ 2   $ —   $ 4,836  

Corporate notes

     4,578     1     (2 )   4,577  
                   

Total short-term investments

   $ 9,412   $ 3   $ (2 ) $ 9,413  
                   

Long-term investments:

                          

U.S. government debt securities

   $ 5,721   $ 1   $ (1 ) $ 5,721  

Corporate notes

     2,816     2     (2 )   2,816  
                   

Total long-term investments

   $ 8,537   $ 3   $ (3 ) $ 8,537  
                   

 

 
   2010  
 
   Cost   Unrealized
Gains 		  Unrealized
Losses 		  Fair
Value 		 

Cash and cash equivalents

   $ 14,340   $ —   $ —   $ 14,340  
                   

Short-term investments:

                          

U.S. government debt securities

   $ 8,711   $ 1   $ (2 ) $ 8,710  

Corporate notes

     5,115     6     (5 )   5,116  

Certificates of deposit

     1,185     —     —     1,185  
                   

Total short-term investments

   $ 15,011   $ 7   $ (7 ) $ 15,011  
                   

Long-term investments:

                          

U.S. government debt securities

   $ 6,204   $ —   $ (2 ) $ 6,202  

Corporate notes

     1,507     6     —     1,513  

Certificates of deposit

     480     —     (2 )   478  
                   

Total long-term investments

   $ 8,191   $ 6   $ (4 ) $ 8,193  
                   

        As of December 31, 2011 and 2010, all of the available-for-sale securities with unrealized losses were in a loss position for less than 12 months. Total fair value of available-for-sale securities with unrealized losses was $8.6 million at December 31, 2011.

        Cost and fair value of investments based on two maturity groups at December 31, 2011 and 2010 were as follows (in thousands):

 
   2011  
 
   Cost   Unrealized
Gains 		  Unrealized
Losses 		  Fair
Value 		 

Due within 1 year

   $ 9,412   $ 3   $ (2 ) $ 9,413  

Due in 1-2 years

     8,537     3     (3 )   8,537  
                   

Total

   $ 17,949   $ 6   $ (5 ) $ 17,950  
                   

 

 
   2010  
 
   Cost   Unrealized
Gains 		  Unrealized
Losses 		  Fair
Value 		 

Due within 1 year

   $ 15,011   $ 7   $ (7 ) $ 15,011  

Due in 1-2 years

     8,191     6     (4 )   8,193  
                   

Total

   $ 23,202   $ 13   $ (11 ) $ 23,204  
                   

        The following table represents the Company's fair value hierarchy for its financial assets (cash equivalents and investments) and for an acquisition-related earn-out liability as of December 31, 2011 and 2010 (in thousands):

 
   2011  
 
   Fair Value   Level 1   Level 2   Level 3  

Money market funds

   $ 2,792   $ 2,792   $ —   $ —  

Corporate notes

     7,393     —     7,393     —  

U.S. government debt securities

     10,557     —     10,557     —  
                   

Total assets

   $ 20,742   $ 2,792   $ 17,950   $ —  
                   

 

 
   2010  
 
   Fair Value   Level 1   Level 2   Level 3  

Money market funds

   $ 4,399   $ 4,399   $ —   $ —  

Certificates of deposit

     1,853     —     1,853     —  

Corporate notes and commercial paper

     14,278     —     14,278     —  

U.S. government debt securities

     15,414     —     15,414     —  
                   

Total assets

   $ 35,944   $ 4,399   $ 31,545   $ —  
                   

Acquisition-related earn-out liability

   $ 1,000   $ —   $ —   $ 1,000  
                   

Total liabilities

   $ 1,000   $ —   $ —   $ 1,000  
                   

        There were no transfers in or out of Level 1 and Level 2 securities during the years ended December 31, 2011 and 2010. There were no Level 3 financial assets as of December 31, 2011 and 2010.

        The following table provides a summary of changes in fair value of the Company's acquisition-related earn-out liabilities measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2011 and 2010 (in thousands):

 
   Fair Value  

Balance at December 31, 2009

   $ 4,550  

Issuance of earn-out (see Note 4)

     1,000  

Payment of earn-out

     (4,550 )
       

Balance at December 31, 2010

     1,000  

Payment of earn-out

     (1,000 )
       

Balance at December 31, 2011

   $ —