FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

6. FAIR VALUE MEASUREMENTS

We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

● 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; and

● 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 fair value hierarchy for our financial assets (cash equivalents and investments in marketable securities) measured at fair value on a recurring basis (in thousands):

	Level 1		Level 2		Level 3		Total
September 30, 2012:
Available for sale securities:
Money market funds	$	—	$	—	$	—	$	—
	$	—	$	—	$	—	$	—

		Level 1		Level 2		Level 3		Total
December 31, 2011:
Available for sale securities:
Money market funds(1)		$	9,237	$	—	$	—	$	9,237
		$	9,237	$	—	$	—	$	9,237
(1)	Included in “Cash and cash equivalents” in the consolidated balance sheets as of December 31, 2011 in addition to $20.6 million of cash. Unrealized gains and losses on money market funds were nominal due to the short-term nature of the investments.

The fair value of our term loan and revolving credit facility, estimated using discounted cash flow analysis based on incremental borrowing rates for similar types of borrowing arrangements, is as follows (in thousands):

	September 30, 2012				December 31, 2011
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
Term loan	$	66,155	$	66,500	$	58,571	$	58,750
Revolving credit facility		22,204		22,329		100		100