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18473000

25788000

<div> <div> <div> <div> <div> NOTE 9.   ACCOUNTS PAYABLE AND ACCRUED LIABILITIES   Accounts payable and accrued liabilities consist of the following (in thousands):     <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; margin-left: 0.75in; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="80%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 54.96%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="54%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> September 30, 2011</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> December 31, 2010</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 54.96%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="54%"> Accounts payable </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 17.46%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="17%"> 3,380</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 17.46%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="17%"> 1,655</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 54.96%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="54%"> Accrued compensation </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> 2,827</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> 2,638</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 54.96%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="54%"> Accrued clinical trial expense </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> 1,094</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> 307</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 54.96%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="54%"> Accrued rebates and sales discounts </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> 2,232</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> 2,625</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 54.96%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="54%"> Allowance for product returns </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> 9,333</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> 5,355</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 54.96%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="54%"> Accrued promotion fee </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> 2,490</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 54.96%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="54%"> Other accrued liabilities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> 6,922</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 18.76%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="18%" colspan="2"> 3,403</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 54.96%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="54%"> Total accounts payable and accrued liabilities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 17.46%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="17%"> 25,788</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 17.46%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="17%"> 18,473</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr></table></div></div></div></div> </div>

6094000

827000

69000

-32000

87031000

171785000

79599000

125243000

26821000

20225000

22526000

19945000

-6596000

-2581000

<div> <div style="font-family: Times New Roman;"> <div> <div> <div> NOTE 4. LICENSE AND COLLABORATIVE ARRANGEMENTS <div> </div> <div> <div> <div> Santarus, Inc.   In August 2011, the Company entered into a commercialization agreement with Santarus granting Santarus exclusive rights to manufacture and commercialize Glumetza in the United States. The commercialization agreement supersedes the previous promotion agreement between the parties originally entered into in July 2008.   Under the commercialization agreement, the Company will transition to Santarus responsibility for manufacturing, distribution, pharmacovigilance and regulatory affairs. The Company ceased shipments of Glumetza in August 2011 and Santarus began distributing and recording product sales on shipments of Glumetza in September 2011. Santarus will continue to be responsible for advertising and promotional marketing activities for Glumetza.   Santarus will be required to pay the Company royalties on net product sales of Glumetza in the United States of 26.5% in 2011; 29.5% in 2012; 32.0% in 2013 and 2014; and 34.5% in 2015 and beyond prior to generic entry of a Glumetza product.  In the event of generic entry of a Glumetza product in the United States, the parties will equally share proceeds based on a gross margin split. Santarus has the exclusive right to commercialize authorized generic versions of the Glumetza products.  Santarus will not pay additional sales milestones to the Company as was required under the prior promotion agreement.        In connection with its assumption of distribution and sales responsibility of Glumetza, Santarus purchased Depomed's existing inventory of Glumetza and bulk metformin hydrochloride at cost.  Depomed will be financially responsible for returns of Glumetza distributed by Depomed, up to the amount of the product returns reserve account for Glumetza product returns on the date immediately before Santarus begins distributing Glumetza.  Depomed will be financially responsible for Glumetza rebates and chargebacks up to the amount of its reserve accounts for those items.  Santarus will be responsible for all other Glumetza returns, rebates and chargebacks.         Pursuant to the terms of the commercialization agreement, Depomed has the option to co-promote Glumetza products to physicians other than those called on by Santarus, subject to certain limitations.  Depomed will be entitled to receive a royalty equal to 70% of net sales attributable to prescriptions generated by its called on physicians over a pre-established baseline.                 Under the commercialization agreement, Depomed will continue to manage the ongoing patent infringement lawsuits against Sun Pharmaceutical Industries, Inc. (Sun) and Lupin Limited (Lupin), subject to certain consent rights in favor of Santarus, including with regard to any proposed settlements.  Santarus will reimburse Depomed for 70% of its out-of-pocket costs, and Depomed will reimburse Santarus for 30% of its out-of-pocket costs related to these two existing infringement cases.   The commercialization agreement will continue in effect for so long as Santarus commercializes branded Glumetza or authorized generic products, unless terminated sooner.  Subject to 60 days prior written notice to Santarus, Depomed may terminate the agreement if Santarus fails to meet its obligations with respect to minimum promotion and expenditure obligations and fails to cure such breach within a specified time period.  Either party may terminate the agreement if the other party fails to perform any material term of the agreement and fails to cure such breach, subject to prior written notice within a specified time period.  In addition, either party may terminate the agreement if a force majeure event prevents the other party from carrying out its material obligations under the agreement for a period of at least six months.  Finally, either party may terminate the agreement if the other party becomes insolvent, files or consents to the filing of a petition under any bankruptcy or insolvency law or has any such petition filed against it, and within a specified time period, such filing has not been dismissed.  Santarus has a voluntary right to terminate the agreement upon 120 days' written notice.   During the quarter ended September 30, 2011, Depomed distributed Glumetza for the first two months of the quarter, recognized Glumetza product sales on those respective sales and paid Santarus a promotion fee equal to 75% of Glumetza gross margin. In the final month of the quarter, the distribution and sales responsibility transitioned to Santarus. Santarus sold Glumetza for the final month of the quarter, recognized Glumetza product sales on those respective sales and paid Depomed a royalty equal to 26.5% of net sales.                 For the three and nine months ended September 30, 2011, the Company recognized $6.0 million and $27.3 million, respectively, in promotion fee expense to Santarus related to sales of Glumetza by Depomed. For the three and nine months ended September 30, 2010, the Company recognized $6.8 million and $23.8 million, respectively, in promotion fee expense to Santarus. Promotion fee expense is classified within selling, general and administrative expense.   Royalty revenue from Santarus during three and nine months ended September 30, 2011 was $2.1 million and represented one month of Santarus distributing Glumetza under the commercialization agreement. There were no royalty revenue amounts from Santarus in the prior year.   The Company accounted for the transaction as a sale of a business as defined by FASB Accounting Standards Codification Topic 805, "Business Combinations". In connection with entering into the commercialization agreement with Santarus, no additional consideration was exchanged between the two parties. Accordingly, the Company did not record a gain or loss with respect to this transaction and related transfer of Glumetza manufacturing and distribution activities. As the Company will have significant continuing cash inflows with respect to receiving royalties on net sales of Glumetza by Santarus, the previously reported and future activities related to Glumetza will continue to be presented in income from continuing operations in the Company's income statement.   Pursuant to the promotion agreement originally entered into in July 2008, Santarus paid the Company a $12.0 million upfront fee. The upfront payment received was originally being amortized as revenue ratably until October 2021, which represented the estimated length of time the Company's obligations existed under the promotion agreement related to manufacturing Glumetza and paying Santarus promotion fees on gross margin of Glumetza. The commercialization agreement in August 2011 superseded the promotion agreement and removed the manufacturing and promotion fee obligations of the Company. The commercialization agreement includes obligations with respect to manufacturing and regulatory transition to Santarus and managing the ongoing patent infringement lawsuits against Sun and Lupin. These obligations are estimated to be completed in December 2013. Accordingly, on the effective date of the commercialization agreement, the amortization period related to remaining deferred revenue on the $12.0 million upfront fee has been adjusted, and the remaining deferred revenue will be recognized ratably until December 2013. The Company recognized approximately $0.6 million and $1.0 million of license revenue associated with this upfront license fee during the three and nine months ended September 30, 2011, respectively. For the three and nine months ended September 30, 2010, the Company recognized $0.2 million and $0.7 million of license revenue associated with this upfront license fee. The remaining deferred revenue balance related to this upfront payment is $8.8 million at September 30, 2011.   Ventiv Commercial Services, LLC   In June 2011, the Company entered into a service agreement with Ventiv Commercial Services, LLC (Ventiv), pursuant to which inVentiv Selling Solutions, Ventiv's outsourced sales business, will provide sales force recruiting, training, deployment and ongoing operational support to the Company to promote Gralise. The agreement provides for a sales force of 164 full-time sales representatives dedicated to the Company, all of whom are employees of Ventiv.    Under the terms of the agreement, the Company paid Ventiv an upfront implementation fee and will pay an agreed upon fixed monthly management fee of $1.8 million, which is subject to adjustment based on actual staffing levels.  During the term of the agreement, a portion of Ventiv's monthly management fee will be subject to payment by the Company only to the extent that specified performance objectives are met.  The Company will also pay certain pass-through costs of Ventiv incurred in connection with the agreement, which primarily include bonuses, travel costs and certain administrative expenses. The Company incurred $1.6 million and $2.5 million of expense related to Ventiv for the three and nine months ended September 30, 2011.   The agreement will expire on the second anniversary of the date on which sales representatives hired by Ventiv are deployed. The agreement is subject to early termination under certain circumstances and may be terminated by either party upon advance notice beginning in October 2012.   Abbott Products Inc. (formerly Solvay Pharmaceuticals, Inc.)           In November 2008, the Company entered into an exclusive license agreement with Solvay Pharmaceuticals, Inc. (Solvay) granting Solvay exclusive rights to develop and commercialize GraliseTM (gabapentin) for pain indications in the United States, Canada and Mexico. In February 2010, Abbott Laboratories acquired the pharmaceutical business of Solvay and Abbott Products, a subsidiary of Abbott Laboratories, became responsible for the Gralise license agreement with the Company.           In March 2010, Abbott Products submitted an NDA for Gralise to the U.S. Food and Drug Administration (FDA) for the management of postherpetic neuralgia (PHN). In May 2010, the FDA accepted the NDA filing for Gralise, which triggered a $10.0 million milestone payment from Abbott Products which Depomed received in June 2010. As the nonrefundable milestone was substantive in nature, achievement of the milestone was not reasonably assured at the inception of the agreement and the milestone was related to past performance, the Company recognized the entire $10.0 million as revenue in the second quarter of 2010.   In January 2011, Abbott Products received FDA approval of Gralise for the management of PHN, which triggered a $48.0 million development milestone from Abbott Products to the Company, which the Company received in February 2011. As the nonrefundable milestone was substantive in nature, achievement of the milestone was not reasonably assured at the inception of the agreement and the milestone was related to past performance, the entire $48.0 million was recognized as license revenue in the first quarter of 2011.            In March 2011, the Company entered into a settlement agreement with Abbott Laboratories which provided for (i) the immediate termination of the Gralise license agreement; (ii) the transition of Gralise back to Depomed; and (iii) a $40.0 million payment to Depomed which the Company received in March 2011. The $40.0 million payment was recognized as a gain within operating income in the first quarter of 2011.   Pursuant to the exclusive license agreement originally entered into in November 2008, Solvay paid the Company a $25.0 million upfront fee in February 2009. The upfront payment received was originally being amortized as revenue ratably until January 2013, which represented the estimated length of time the Company's development and supply obligations existed under the agreement. In connection with the termination of the license agreement with Abbott Products, the Company no longer has continuing obligations to Abbott Products. Accordingly, all remaining deferred revenue related to the $25.0 million upfront license fee previously received from Abbott Products was fully recognized as revenue in March 2011, resulting in immediate recognition of approximately $11.3 million of license revenue.   Boehringer Ingelheim International GMBH           In March 2011, the Company entered into a license and service agreement with Boehringer Ingelheim International GMBH (Boehringer Ingelheim) granting Boehringer Ingelheim a license to certain patents related to the Company's Acuform drug delivery technology to be used in developing fixed dose combinations of extended release metformin and proprietary Boehringer Ingelheim compounds in development for type 2 diabetes. Under the terms of the agreement, Boehringer Ingelheim was also granted a right of reference to the New Drug Application covering the Company's Glumetza product and associated data for use in potential regulatory submission processes.           In connection with the license and service agreement, the Company received an upfront payment of $10.0 million less applicable withholding taxes of approximately $1.5 million, for a net receipt of approximately $8.5 million in April 2011. The Company received the remaining $1.5 million of taxes previously withheld directly from German tax authorities in June 2011.        The $10.0 million upfront fee is being amortized ratably through November 2011, which is the estimated length of time Depomed is obligated to perform formulation work under the agreement. The Company recognized approximately $3.8 million and $8.6 million of revenue associated with this upfront license fee during the three and nine months ended September 30, 2011, respectively. The remaining deferred revenue balance is $1.4 million at September 30, 2011.          Under the terms of the agreement, the Company may receive an additional $2.5 million upon delivery of experimental batches of prototype formulations that meet certain specification. The Company is also eligible to receive additional milestone payments based on regulatory filing and approval events, as well as royalties on worldwide net sales of products.          Depomed is responsible for providing certain initial formulation work associated with the fixed dose combination products. Work performed by the Company under the service agreement will be reimbursed by Boehringer Ingelheim on an agreed-upon FTE rate per hour plus out-of-pocket expenses. The Company recognized approximately $0.2 million and $0.8 million of revenue associated with the reimbursement of formulation work under the service agreement during the three and nine months ended September 30, 2011, respectively.   Ironwood Pharmaceuticals, Inc.          In July 2011, the Company entered into a collaboration and license agreement with Ironwood Pharmaceuticals, Inc. (Ironwood) granting Ironwood a license for worldwide rights to the Company's Acuform drug delivery technology for an undisclosed Ironwood early stage development program.          In connection with the agreement, the Company received an upfront payment of $0.9 million which is being amortized ratably through June 2012, which is the estimated length of time Depomed is obligated to perform formulation work under the agreement. The Company recognized approximately $0.2 million of revenue associated with this upfront license fee during the three and nine months ended September 30, 2011. The remaining deferred revenue balance related to this upfront payment is $0.7 million at September 30, 2011.         Under the terms of the agreement, the Company will assist with initial product formulation and Ironwood will be responsible for all development and commercialization of the product. The initial formulation work performed by the Company under the agreement will be reimbursed by Ironwood on an agreed-upon FTE rate per hour plus out-of-pocket expenses. The Company recognized approximately $0.1 million of revenue associated with the reimbursement of formulation work under the agreement during the three and nine months ended September 30, 2011.         Under the terms of the agreement, the Company may receive additional payments pending achievement of certain development and regulatory milestones, as well as royalties on product sales.</div></div>      </div></div></div></div></div> </div>

100000000

52957787

55398067

52957787

55398067

191343000

202022000

<div> <div> <div> <div> NOTE 7. COMPREHENSIVE INCOME (LOSS)   The following table summarizes components of total comprehensive income (loss) (in thousands):     <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; margin-left: 20.15pt; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="96%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 38.72%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="38%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 27.52%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="27%" colspan="5"> Three Months Ended September 30,</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 27.52%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="27%" colspan="5"> Nine Months Ended September 30,</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.04%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 38.72%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="38%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.46%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 2011</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.46%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 2010</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.46%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 2011</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.46%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 2010</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.04%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 38.72%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="38%"> Net income (loss) </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> (8,576) </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 1,891 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 84,563</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 2,188</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.04%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 38.72%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="38%"> Unrealized gain (loss) on available-for-sale securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.46%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> (187)</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.46%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 19</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.46%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> (101)</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.46%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 66</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.04%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 38.72%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="38%"> Total comprehensive income (loss) </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> (8,763) </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 1,910</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 84,462</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 2,254</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.04%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr></table></div></div></div> </div>

6961000

2499000

4925000

1150000

57493000

18205000

37336000

25832000

10665000

7664000

30926000

19320000

331000

232000

<div> <div> <div> NOTE 6.  STOCK-BASED COMPENSATION   <div> <div> The following table presents stock-based compensation expense recognized for stock options, stock awards and the Company's employee stock purchase program (ESPP) in the Company's statements of operations (in thousands):   <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; margin-left: 20.15pt; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="92%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 39.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="39%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 27.42%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="27%" colspan="5"> Three Months Ended September 30,</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 27.4%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="27%" colspan="5"> Nine Months Ended September 30,</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 39.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="39%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 2011</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 2010</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 2011</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 2010</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 39.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="39%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 39.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="39%"> Cost of sales </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.14%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%"> 17</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.14%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%"> 8</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.14%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%"> 50</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.14%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%"> 14</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 39.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="39%"> Research and development expense </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 155</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 119</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 466</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 428</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 39.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="39%"> Selling, general and administrative expense </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 769</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 348</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 2,292</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.4%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 1,094</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 39.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="39%"> Total </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.14%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 941</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.62%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.14%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 475</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.14%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 2,808</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.6%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.26%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.14%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 1,536</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr></table>   For the three and nine months ended September 30, 2011, the Company recognized zero and approximately $0.4 million in stock-compensation expense, respectively, associated with the accelerated vesting of stock options in connection with a separation agreement and release with Carl A. Pelzel, the Company's former President and Chief Executive Officer. See Note 11 for further information with regards to the separation agreement and release.   At September 30, 2011, the Company had $7.6 million of total unrecognized compensation expense, net of estimated forfeitures, related to stock option grants that will be recognized over an average vesting period of 2.6 years. </div></div></div></div> </div>

0.04

1.56

-0.15

0.04

1.51

-0.15

<div> <div>   <div> <div> NOTE 3. NET INCOME (LOSS) PER COMMON SHARE   Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period, plus dilutive common shares for the period determined using the treasury-stock method. For purposes of this calculation, options to purchase stock are considered to be potential common shares and are only included in the calculation of diluted net income (loss) per share when their effect is dilutive. Basic and diluted earnings per share are calculated as follows:   <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%"> (in thousands, except for per share amounts) </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 24.5%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="24%" colspan="5"> Three Months Ended September 30,</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 24.5%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="24%" colspan="5"> Nine Months Ended September 30,</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 2011</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 2010</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 2011</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 2010</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%"> Numerator:</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%"> Net income (loss) </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> (8,576) </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> 1,891</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> 84,563</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> 2,188</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%"> Denominator for basic net income (loss) per share </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 55,372</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 52,595</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 54,268</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 52,445</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%"> Net effect of dilutive common stock equivalents </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 711</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 1,804</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 616</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%"> Denominator for diluted net income (loss) per share:</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 55,372</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 53,306</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 56,072</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 53,061</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%"> Basic net income (loss) per share </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> (0.15) </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> 0.04</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> 1.56</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> 0.04</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 45%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="45%"> Diluted net income (loss) per share </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> (0.15) </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> 0.04</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> 1.51</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 9.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="9%"> 0.04</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr></table>   For the three and nine months ended September 30, 2011, the total number of antidilutive outstanding common stock equivalents excluded from the net income per share computation was 4.9 million and 1.2 million, respectively. For the three and nine months ended September 30, 2010, the total number of antidilutive outstanding common stock equivalents excluded from the net income per share computation was 3.0 million and 3.4 million, respectively.</div></div></div> </div>

40000000

-46000

2192000

1892000

84218000

-8924000

<div> <div> <div> <div> <div> NOTE 12.  INCOME TAXES   As of December 31, 2010 and September 30, 2011, the Company had $3.4 million and $3.5 million of unrecognized tax benefits, respectively. All tax years since inception remain open to examination by the Internal Revenue Service and the California Franchise Tax Board until such time the Company's net operating losses and credits are either utilized or expire. Interest and penalties, if any, related to unrecognized tax benefits, would be recognized as income tax expense by the Company. The Company does not have any accrued interest or penalties associated with unrecognized tax benefits.</div></div></div></div> </div>

4000

1000

-345000

-348000

4337000

1125000

-408000

189000

-4956000

-15268000

-1603000

1722000

1331000

6862000

772000

4157000

471000

130000

133000

24000

<div> <div> NOTE 8.  INVENTORIES   <div> <div> Inventories relate to the manufacture of the Company's Gralise and Proquin XR products at September 30, 2011 and Gralise, Glumetza and Proquin XR products at December 31, 2010. In August 2011, the Company sold its Glumetza inventory, at cost, to Santarus as part of the commercialization agreement. See Note 4 for further information with regards to the Santarus commercialization agreement. Inventories are stated at the lower of cost or market and consist of the following (in thousands):   <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; margin-left: 1in; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="73%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 50.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="50%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 20.46%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="20%" colspan="2"> September 30, 2011</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 20.46%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="20%" colspan="2"> December 31, 2010</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.36%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 50.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="50%"> Raw materials </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 19.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="19%"> 1,273</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 19.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="19%"> 74</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.36%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 50.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="50%"> Work-in-process </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 20.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="20%" colspan="2"> 258</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 20.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="20%" colspan="2"> 202</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.36%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 50.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="50%"> Finished goods </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 20.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="20%" colspan="2"> 1,746</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 20.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="20%" colspan="2"> 1,254</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.36%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 50.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="50%"> Deferred costs </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 20.46%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="20%" colspan="2"> 15</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 20.46%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="20%" colspan="2"> 41</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.36%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 50.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="50%"> Total </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 19.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="19%"> 3,292</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3.4%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 19.16%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="19%"> 1,571</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.36%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr></table>    Deferred costs represent the costs of Proquin XR product shipped for which recognition of revenue has been deferred.</div></div></div> </div>

1571000

3292000

251000

100000

846000

410000

87031000

171785000

32984000

34218000

25565000

10223000

77760000

5138000

2170000

<div> NOTE 5.  LONG-TERM DEBT   <div> <div> <div> In June 2008, the Company entered into a loan and security agreement with General Electric Capital Corporation, as agent (GECC), and Oxford Finance Corporation (Oxford) that provided the Company with a $15.0 million credit facility. The credit facility was available in up to three tranches. The first tranche of $3.8 million was advanced to the Company upon the closing of the loan agreement. The second tranche of $5.6 million was advanced to the Company in July 2008. The third tranche of $5.6 million was not drawn and is no longer available to the Company, and GECC and Oxford waived the 2% unused line fee related to the unused portion of the credit facility.   The Company paid interest only on the first tranche for the first six months at an interest rate of 11.59%. Beginning in January 2009, the Company began principal payments on the first tranche, plus interest at such rate, which will be paid in 30 equal monthly installments. The second tranche was interest-only through December 31, 2008, with principal and interest payable thereafter in 30 equal monthly installments at an interest rate of 11.59%. Interest expense, which includes amortization of debt issuance costs, was approximately $24,000 and $133,000 for the three and nine months ended September 30, 2011, respectively.           The credit facility was fully repaid in July 2011. </div></div></div> </div>

47825000

89018000

6537000

45233000

<div> <div style="font-family: Times New Roman;"> <div> <div> <div> <div> <div> <div> <div> NOTE 2. CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES   Securities classified as cash and cash equivalents and available-for-sale marketable securities as of September 30, 2011 and December 31, 2010 are summarized below (in thousands). Estimated fair value is based on quoted market prices for these investments. <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="40%"> September 30, 2011 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Amortized Cost</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Gross Unrealized Gains</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Gross Unrealized Losses</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> Fair Value</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Cash and cash equivalents:</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Cash </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 5,086</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 5,086</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Money market funds </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 6,410</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 6,410</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U. S. corporate debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 8,449</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 8,449</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Total cash and cash equivalents </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 19,945</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 19,945</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%">   Available-for-sale securities:</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Total maturing within 1 year and included in marketable securities: </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. corporate debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 44,865</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 3</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> (24) </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 44,844</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. government agency debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 2,997</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 2</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 2,999</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. Treasury securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 41,129</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 45</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 41,174</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Total maturing between 1 and 2 years and included in marketable securities:</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. corporate debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 19,225</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 6</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> (89)</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 19,142</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. government agency debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 21,061</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 18</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> (5)</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 21,074</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. Treasury securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 5,006</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 12</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 5,018</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Total available-for-sale securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 134,283</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 86</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> (118)</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 134,251</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Total cash, cash equivalents and marketable securities</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 154,228</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 86</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> (118)</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 154,196</td></tr></table>   <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="40%">       December 31, 2010 </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Amortized Cost</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Gross Unrealized Gains</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Gross Unrealized Losses</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> Fair Value</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Cash and cash equivalents:</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Cash </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 3,913</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 3,913</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Money market funds </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 17,613</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 17,613</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. Treasury securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 1,000</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%"> 1,000</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Total cash and cash equivalents </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 22,526</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 22,526</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%">   Available-for-sale securities:</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Total maturing within 1 year and included in marketable securities: </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. corporate debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 12,099</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 4</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> (2) </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 12,101</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. government agency debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 25,667</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 21</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 25,688</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. Treasury securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 10,015</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 21</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> — </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 10,036</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Total maturing between 1 and 2 years and included in marketable securities:</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. corporate debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> —</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. government agency debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> —</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> U.S. Treasury securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.2%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 6,512</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 25</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.24%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.98%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%" colspan="2"> 6,537</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Total available-for-sale securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 54,293</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 71</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> (2)</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 54,362</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 40.9%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="40%"> Total cash, cash equivalents and marketable securities</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.46%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.28%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.92%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 76,819</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.7%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 71</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.94%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> (2)</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.26%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10.68%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%"> 76,888</td></tr></table>   <div> The Company considers all highly liquid investments with a maturity at date of purchase of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks, money market instruments and commercial paper. The Company places its cash, cash equivalents and marketable securities with high quality, U.S. financial institutions and, to date has not experienced material losses on any of its balances. All marketable securities are classified as available-for-sale since these instruments are readily marketable. These securities are carried at fair value, which is based on readily available market information, with unrealized gains and losses included in accumulated other comprehensive gain within shareholders' equity. The Company uses the specific identification method to determine the amount of realized gains or losses on sales of marketable securities. Realized gains or losses have been insignificant and are included in "interest and other income" in the condensed statement of operations.   At September 30, 2011, the Company had thirty-two securities in an unrealized loss position. The following table shows the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2011 (in thousands):   <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 27%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="27%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 22%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="22%" colspan="5"> Less than 12 months</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 22%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="22%" colspan="5"> 12 months or greater</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 22%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="22%" colspan="5"> Total</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 27%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="27%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> Fair Value</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> Gross Unrealized Losses</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> Fair Value</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> Gross Unrealized Losses</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> Fair Value</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> Gross Unrealized Losses</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 27%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="27%"> U.S. corporate debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> $        45,741</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> $            (113</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%"> )</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> $        45,741</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> $            (113</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> )</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 27%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="27%"> U.S. government agency debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> 15,010</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> (5</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%"> )</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> 15,010</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> (5</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> )</td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 27%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="27%"> U.S. Treasury securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 10%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="10%" colspan="2"> — </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 27%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="27%"> Total available-for-sale </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 8.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="8%"> 60,751</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 8.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="8%"> (118</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%"> )</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 8.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="8%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 8.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="8%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 8.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="8%"> 60,751</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 8.7%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="8%"> (118</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> )</td></tr> <tr><td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="202"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="15"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="10"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="65"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="15"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="10"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="65"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="15"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="10"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="65"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="15"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="10"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="65"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="15"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="10"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="65"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="15"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="10"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="65"> </td> <td style="border-bottom: medium none; border-left: medium none; border-top: medium none; border-right: medium none;" width="7"> </td></tr></table>   The gross unrealized losses above were caused by interest rate increases. No significant facts or circumstances have arisen to indicate that there has been any deterioration in the creditworthiness of the issuers of the Company's securities. Based on the Company's review of these securities, including the assessment of the duration and severity of the unrealized losses and the Company's ability and intent to hold the investments until maturity, there were no material other-than-temporary impairments for these securities at September 30, 2011.   Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.   The Company utilizes the following fair value hierarchy based on three levels of inputs:   ·                  Level 1: Quoted prices in active markets for identical assets or liabilities. ·                  Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ·                  Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.   The following table represents the Company's fair value hierarchy for its financial assets measured at fair value on a recurring basis as of September 30, 2011 (in thousands):   <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; margin-left: 0.25in; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="93%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 37.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="37%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Level 1</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Level 2</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Level 3</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Total</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.84%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 37.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="37%"> Money market funds </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 6,410</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 6,410</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.84%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 37.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="37%"> U.S. corporate debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 72,435</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 72,435</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.84%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 37.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="37%"> U.S. government agency debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 24,073</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 24,073</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.84%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 37.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="37%"> U.S. Treasury securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 46,192</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 46,192</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.84%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 37.02%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="37%"> Total </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 6,410</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 142,700</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 149,110</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.84%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr></table>   The following table represents the Company's fair value hierarchy for its financial assets measured at fair value on a recurring basis as of December 31, 2010 (in thousands):   <table style="border-collapse: collapse; font-family: 'Times New Roman','serif'; margin-left: 0.25in; font-size: 10pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="93%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 36.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="36%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Level 1</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Level 2</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Level 3</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> Total</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 36.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="36%"> Money market funds </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 17,613</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 17,613</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 36.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="36%"> U.S. corporate debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 12,101</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 12,101</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 36.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="36%"> U.S. government agency debt securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 25,688</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 25,688</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 36.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="36%"> U.S. Treasury securities </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 17,573</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 12.86%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="12%" colspan="2"> 17,573</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 36.94%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="36%"> Total </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 17,613</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 55,362</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> —</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2.68%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%">  </td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 1.3%; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" width="1%"> $</td> <td style="border-bottom: windowtext 3px double; border-left: medium none; padding-bottom: 0in; padding-left: 0in; width: 11.56%; padding-right: 0in; border-top: windowtext 1pt solid; border-right: medium none; padding-top: 0in;" valign="bottom" width="11%"> 72,975</td> <td style="padding-bottom: 0in; padding-left: 0in; width: 0.92%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="0%">  </td></tr></table>   There are no financial liabilities measured at fair value on a recurring basis as of September 30, 2011 and December 31, 2010.</div></div></div></div></div></div></div></div></div> </div>

-1930000

5629000

-1229000

-80591000

-3437000

72381000

2188000

1891000

84563000

-8576000

-220000

-30000

713000

386000

2412000

1922000

83505000

-9310000

<div>   <div> NOTE 13. LEASE AMENDMENTS   <div>In June 2011, the Company entered into amendments to its existing leases for the Company's premises located at 1330 and 1360 O'Brien Drive, Menlo Park, California, consisting of approximately 46,000 rentable square feet.  The lease amendments extend the term of the existing leases for twelve months, from February 1, 2012 through January 31, 2013.  All material provisions of the leases remain the same, except that the Company may not extend either of the lease terms. The lease for the Company's premises located at 1430 O'Brien Drive, consisting of approximately 9,000 rentable square feet, was not amended by the lease amendments, and has a term through January 31, 2012.</div></div> </div>

1330000

5516000

197000

169000

635000

387000

15000

56110000

153875000

86000

665000

5000000

18158

910000

7872000

47482000

41117000

7485000

32832000

698000

1140000

<div>   <div> <div> <div class="MetaData"> NOTE 11.  RELATED PARTY TRANSACTIONS   Carl A. Pelzel  In April 2011, the Company entered into a separation agreement and release with Carl A. Pelzel, the Company's former President and Chief Executive Officer. Pursuant to the separation agreement, Mr. Pelzel will be paid $520,000, which is equivalent to one year of his base salary.  Payments are being made over one year, and will be reduced dollar-for-dollar by any compensation Mr. Pelzel receives in connection with employment (or full-time consulting) by another employer (or third party).  The Company will also pay Mr. Pelzel's health and dental insurance COBRA premiums for up to 18 months following his separation from the Company.  The separation agreement further provides for three months' accelerated vesting of Mr. Pelzel's options to purchase the Company's common stock, and a release of claims in favor of the Company.  The Company incurred a one-time severance charge of approximately $1.0 million in the second quarter of 2011 with respect to this separation agreement, consisting of approximately $0.4 million in stock-based compensation related to the accelerated vesting of Mr. Pelzel's awards and approximately $0.6 million of severance expense related to future payments and health care benefits </div></div></div> </div>

2840000

2243000

14360000

4602000

12405000

3208000

-168306000

-83743000

59905000

20127000

120841000

16522000

254000

75000

2412000

2179000

34086000

9829000

40669000

9205000

<div> NOTE 14. SUBSEQUENT EVENTS          In October 2011, the Company announced the commercial availability of Gralise and began distributing Gralise to wholesalers and retail pharmacies. </div>

23769000

6791000

27339000

6023000

36172000

11104000

60006000

21474000

1537000

2807000

<div> <div style="font-family: Times New Roman;"> NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES <div>   <div> <div> Basis of Presentation   These unaudited condensed financial statements and the related footnote information of Depomed, Inc. (the Company or Depomed) have been prepared pursuant to the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information that are normally required by U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Company's management, the accompanying interim unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the information for the periods presented. The results for the interim period ended September 30, 2011 are not necessarily indicative of results to be expected for the entire year ending December 31, 2011 or future operating periods.   The accompanying condensed financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2010, included in the Company's Annual Report on Form 10-K filed with the SEC. The balance sheet at December 31, 2010 has been derived from the audited financial statements at that date.   Reclassifications   Certain reclassifications have been made to the December 31, 2010 balance sheet in order to conform to the Company's current presentation. The Company has now classified receivables from collaborative partners as a separate line-item on its balance sheet, which was previously included under accounts receivable.   Use of Estimates   The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.   Revenue Recognition   The Company recognizes revenue from the sale of its products, royalties earned, and on payments received and services performed under contractual arrangements. Revenue arrangements with multiple elements are evaluated to determine whether the multiple elements met certain criteria for dividing the arrangement into separate units of accounting, including whether the delivered element(s) have stand-alone value to the Company's customer or licensee. Where there are multiple deliverables combined as a single unit of accounting, revenues are deferred and recognized over the period that we remain obligated to perform services.   Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred and title has passed, the price is fixed or determinable and the Company is reasonably assured of collecting the resulting receivable.   ·                  Product Sales:   ·                  Glumetza®: Up until August 2011, the Company distributed and recorded product sales on shipments of Glumetza® (metformin hydrochloride extended release tablets) to wholesalers and retail pharmacies.  The Company and Santarus, Inc. (Santarus) entered into a commercialization agreement in August 2011, under which Depomed transferred the rights to distribute Glumetza in the United States to Santarus. Santarus commenced distribution of Glumetza in September 2011 and began recording product sales.  See Note 4 for further information on the Santarus commercialization agreement.           Product distributed by Depomed up until August 2011 is subject to rights of return six months before product expiration and up to twelve months after product expiration. The Company recognized revenue for Glumetza sales at the time title transferred to its customers, which occurred at the time product was delivered to its customers.   ·                  Proquin®XR: Up until October 2010, the Company sold Proquin® XR (ciprofloxacin hydrochloride) to wholesalers and retail pharmacies subject to rights of return six months before product expiration and up to twelve months after product expiration.  Given the Company's limited history of selling Proquin XR and declining prescription demand for Proquin XR, the Company was not able to reliably estimate expected returns of the product at the time of shipment. Accordingly, the Company defers recognition of revenue on product shipments of Proquin XR until the right of return no longer exists, which occurs at the earlier of the time Proquin XR units are dispensed through patient prescriptions or expiration of the right of return. The Company estimates patient prescriptions dispensed using an analysis of third-party information, including third-party market research data and information obtained from wholesalers with respect to inventory levels and inventory movement. As a result of this policy, the Company has a deferred revenue balance of $0.4 million at September 30, 2011 related to Proquin XR product shipments that have not been recognized as revenue, which is net of wholesaler fees, retail pharmacy discounts and prompt payment discounts. In addition, the costs of manufacturing Proquin XR associated with the deferred revenue are recorded as deferred costs, which are included in inventory, until such time the related deferred revenue is recognized.   ·                  Product Sales Allowances - The Company recognizes product sales allowances as a reduction of product sales in the same period the related revenue is recognized. Product sales allowances are based on amounts owed or to be claimed on the related sales. These estimates take into consideration the terms of the Company's agreements with customers, historical product returns, rebates or discounts taken, estimated levels of inventory in the distribution channel, the shelf life of the product, and specific known market events, such as competitive pricing and new product introductions. If actual future results vary from the Company's estimates, the Company may need to adjust these estimates, which could have an effect on product sales and earnings in the period of adjustment. The Company's product sales allowances include:   ·                  Product Returns - The Company estimates product returns on sales of Glumetza that were originally distributed by the Company. The Company allows customers to return product that is within six months before and up to twelve months after its product expiration date.  The shelf life of the 500mg Glumetza is currently 48 months from the date of tablet manufacture. On product launch in August 2006 and through the second quarter of 2008, the shelf life of 500mg Glumetza product shipped was 36 months from the date of tablet manufacture. The shelf life of the 1000mg Glumetza is 24 to 36 months from the date of tablet manufacture. The Company monitors actual return history on individual product lot basis since product launch, which provides it with a basis to reasonably estimate future product returns, taking into consideration the shelf life of product, shipment and prescription trends, estimated distribution channel inventory levels, and consideration of the introduction of competitive products.   ·                  Managed Care Rebates - The Company offers rebates under contracts with certain managed care organizations. The Company establishes an accrual equal to its estimates of future managed care rebates attributable to sales and recognizes the estimated rebates as a reduction of revenue in the same period the related revenue is recognized. The Company estimates its managed care rebates based on the terms of each agreement, estimated levels of inventory in the distribution channel, and historical and expected future utilization of product by the managed care organization.   ·                  Wholesaler and Retail Pharmacy Discounts - The Company offers discounts to certain wholesale distributors and retail pharmacies based on contractually determined rates. The Company accrues the discount on shipment to the respective wholesale distributors and retail pharmacies and recognizes the discount as a reduction of revenue in the same period the related revenue is recognized.   ·                  Prompt Pay Discounts - The Company offers cash discounts to its customers, generally 2% of the sales price, as an incentive for prompt payment. Based on the Company's experience, the Company expects its customers to comply with the payment terms to earn the cash discount. The Company accounts for cash discounts by reducing accounts receivable by the full amount and recognizes the discount as a reduction of revenue in the same period the related revenue is recognized.   ·                  Medicaid Rebates - The Company participates in Medicaid rebate programs, which provide assistance to certain eligible low-income patients based on each individual state's guidelines regarding eligibility and services. Under the Medicaid rebate programs, the Company pays a rebate to each participating state, generally two to three months after the quarter in which the prescription is filled. The Company estimates and accrues Medicaid rebates based on product pricing, current rebates and changes in the level of discounts the Company offers that may affect the level of Medicaid discount, historical and estimated future percentages of product sold to Medicaid recipients and estimated levels of inventory in the distribution channel.   ·                  Chargebacks - The Company provides discounts to authorized users of the Federal Supply Schedule (FSS) of the General Services Administration under an FSS contract with the Department of Veterans Affairs.  These federal entities purchase products from wholesale distributors at a discounted price, and the wholesale distributors then charge back to the Company the difference between the current retail price and the price the federal entity paid for the product.  The Company estimates and accrues chargebacks based on estimated wholesaler inventory levels, current contract prices and historical chargeback activity.   ·                  Patient Discount Programs - The Company offers loyalty card programs to patients for Glumetza in which patients receive certain discounts at participating retail pharmacies that are reimbursed by the Company.  The Company estimates and accrues future redemptions based on historical redemption activity.   ·                  Royalties - Royalties are recognized as earned in accordance with the contract terms when royalties from licensees can be reliably measured and collectability is reasonably assured.  Under the commercialization agreement between the Company and Santarus, the Company receives royalties on net sales of Glumetza distributed by Santarus in the United States. Santarus commenced distributing and recording product sales on shipments of Glumetza in September 2011. Royalties from Santarus are recognized in the period earned as the royalty amounts can reliably be estimated and collectability is reasonably assured.  See Note 4 for further information on the Santarus commercialization agreement.   Royalties received under the Company's agreements with Valeant Pharmaceuticals International, Inc. (Valeant) and LG Life Sciences (LG) are recognized when the royalty payments are received as they cannot reliably be estimated.   ·         License and Collaborative Arrangements - Revenue from license and collaborative arrangements is recognized when the Company has substantially completed its obligations under the terms of the arrangement and the Company's remaining involvement is inconsequential and perfunctory. If the Company has significant continuing involvement under such an arrangement, license and collaborative fees are recognized over the estimated performance period. The Company recognizes milestone payments for its research and development collaborations upon the achievement of specified milestones if (1) the milestone is substantive in nature, and the achievement of the milestone was not reasonably assured at the inception of the agreement; (2) consideration earned relates to past performance, and (3) the milestone payment is nonrefundable. A milestone is considered substantive if the consideration earned from the achievement of the milestone is consistent with the Company's performance required to achieve the milestone or consistent with the increase in value to the collaboration resulting from the Company's performance, the consideration earned relates solely to past performance, and the consideration earned is reasonable relative to all of the other deliverables and payments within the arrangement. License, milestones and collaborative fee payments received in excess of amounts earned are classified as deferred revenue until earned.   Recently Issued Accounting Standards   In September 2009, the Financial Accounting Standards Board (FASB) revised the authoritative guidance for revenue arrangements with multiple deliverables. The guidance addresses how to determine whether an arrangement involving multiple deliverables contains more than one unit of accounting and how the arrangement consideration should be allocated among the separate units of accounting. The guidance may be applied retrospectively or prospectively for new or materially modified arrangements. The Company elected to adopt this guidance prospectively, effective for the Company's fiscal year beginning January 1, 2011. Upon adoption, the guidance did not have a material impact on the Company's financial statements and is not expected to have a material impact on the Company's future operating results.   In June 2011, the FASB issued guidance amending the presentation requirements for comprehensive income. For public entities, this guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 with early adoption permitted. Upon adoption, the Company will have the option to report total comprehensive income, including components of net income and components of other comprehensive income, as a single continuous statement or in two separate but consecutive statements. The Company does not anticipate the adoption of this guidance will have a material impact on its financial statements.</div></div></div></div> </div>

23106000

118247000

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55371954

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52595214

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