Fair Value Measurements

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

4) Fair Value Measurements

In accordance with the provisions of fair value accounting, a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability and defines fair value based upon an exit price model.

The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:

Level 1	Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2	Observable inputs other than Level 1 prices, 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 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments or securities or derivative contracts that are valued using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.
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. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the Company categorizes such assets and liabilities based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset.

Assets and liabilities of the Company are measured at fair value on a recurring basis as of March 31, 2013 and are summarized as follows:

			Fair Value Measurements at Reporting Date Using
Description	Total March 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Money market funds	$	85,863	$	85,863	$	—	$	—
Bankers’ acceptance drafts		136		—		136		—
Trading securities:
Mutual funds		813		813		—		—
Available-for-sale securities:
Bankers’ acceptance drafts		93		—		93		—
U.S. treasury obligations		13,042		—		13,042		—
U.S. agency obligations		327,790		302,684		25,106		—
Derivatives – currency forward contracts		1,566		—		1,566		—
Total assets	$	429,303	$	389,360	$	39,943	$	—
Liabilities:
Derivatives – currency forward contracts	$	300	$	—	$	300	$	—
Reported as follows:
Assets:
Cash and cash equivalents(1)	$	85,999	$	85,863	$	136	$	—
Short-term investments		331,634		293,393		38,241		—
Other current assets		1,566		—		1,566		—
Total current assets	$	419,199	$	379,256	$	39,943	$	—
Long-term investments(2)	$	10,104	$	10,104	$	—	$	—
Liabilities:
Other current liabilities	$	300	$	—	$	300	$	—

(1) The cash and cash equivalent amounts presented in the table above do not include cash of $169,929 and non-negotiable time deposits of $10,780 as of March 31, 2013.

(2) The long-term investments presented in the table above do not include non-negotiable time deposits of $53 as of March 31, 2013.

Assets and liabilities of the Company are measured at fair value on a recurring basis as of December 31, 2012 and are summarized as follows:

			Fair Value Measurements at Reporting Date Using
Description	Total December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Money market funds	$	51,291	$	51,291	$	—	$	—
Bankers acceptance drafts		16		—		16		—
Trading securities:
Mutual funds		791		791		—		—
Available-for-sale securities:
Bankers’ acceptance drafts		242		—		242		—
U.S. treasury obligations		13,054		—		13,054		—
U.S. agency obligations		325,672		295,665		30,007		—
Derivatives – currency forward contracts		961		—		961		—
Total assets	$	392,027	$	347,747	$	44,280	$	—
Liabilities:
Derivatives – currency forward contracts	$	1,310	$	—	$	1,310	$	—
Reported as follows:
Assets:
Cash and cash equivalents(1)	$	51,307	$	51,291	$	16	$	—
Short-term investments(2)		327,601		284,298		43,303		—
Other current assets		961		—		961		—
Total current assets	$	379,869	$	335,589	$	44,280	$	—
Long-term investments	$	12,158	$	12,158	$	—	$	—
Liabilities:
Other current liabilities	$	1,310	$	—	$	1,310	$	—

(1) The cash and cash equivalent amounts presented in the table above do not include cash of $185,143 and non-negotiable time deposits of $51,138 as of December 31, 2012.

(2) The short-term investments presented in the table above do not include non-negotiable time deposits of $52 as of December 31, 2012.

Money Market Funds

Money market funds are cash and cash equivalents and are classified within Level 1 of the fair value hierarchy.

Trading Mutual Fund Investments

As of March 31, 2013 and December 31, 2012, trading investments consisted of certain U.S. and international equity mutual funds and government agency fixed income mutual funds.

Bankers’ Acceptance Drafts

Bankers’ acceptance drafts are short-term credit investments created by a non-financial firm and guaranteed by a bank. These drafts are often traded at a discount from face value and may be traded on a secondary market.

Available-For-Sale Investments

As of March 31, 2013 and December 31, 2012, available-for-sale investments consisted of time deposits and drafts denominated in the Euro currency, U.S. treasury obligations and U.S. agency obligations. The Company measures its debt and equity investments at fair value. The Company’s available-for-sale investments are classified within Level 1 and Level 2 of the fair value hierarchy.

Derivatives

As a result of the Company’s global operating activities, the Company is exposed to market risks from changes in foreign currency exchange rates, which may adversely affect its operating results and financial position. When deemed appropriate, the Company minimizes its risks from foreign currency exchange rate fluctuations through the use of derivative financial instruments. The principal market in which the Company executes its foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants usually are large commercial banks. The forward foreign currency exchange contracts are valued using broker quotations, or market transactions and are classified within Level 2 of the fair value hierarchy.