Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Measurements

Fair Value Measurements

2. FAIR VALUE MEASUREMENTS

   Cash Equivalents and Short-term Investments

The financial instruments of the Company measured at fair value on a recurring basis are cash equivalents and short-term investments. The Company's cash equivalents and short-term investments are classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented.

The types of instruments valued based on quoted market prices in active markets include most U.S. treasury securities and most money market securities. Such instruments are generally classified within Level 1 of the fair value hierarchy.

The types of instruments valued based on quoted prices in markets that are less active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency include most investment-grade corporate commercial paper. Such instruments are generally classified within Level 2 of the fair value hierarchy.

The types of instruments valued based on unobservable inputs which reflect the reporting entity's own assumptions or data that market participants would use in valuing an instrument are generally classified within Level 3 of the fair value hierarchy.

In January 2010, the FASB ratified ASU 2010-06 "Fair Value Measurements and Disclosures – Improving Disclosures about Fair Value Measurements" ("ASU 2010-06"). ASU 2010-06 requires new disclosures for significant transfers in and out of Level 1 and 2 of the fair value hierarchy and the level of disaggregation of assets or liabilities and the valuation techniques and inputs used to measure fair value. The Company adopted the updated guidance which was effective for the Company's annual reporting period at December 31, 2009, with the exception of new Level 3 activity disclosures, which was adopted January 1, 2011. The adoption of this guidance did not have a material impact on its condensed consolidated results of operations and financial condition.

Financial instruments measured at fair value on a recurring basis as of September 30, 2011 and December 31, 2010 are classified based on the valuation technique in the table below:

	September 30, 2011 Fair value measurements using						Total
	Quoted Prices in     Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
U.S. Treasury securities	$	48,979	$	0	$	0	$	48,979
Money market accounts		11,423		0		0		11,423
Total assets at fair value	$	60,402	$	0	$	0	$	60,402

  The above table excludes $3.1 million of cash held in banks.

	December 31, 2010 Fair value measurements using						Total
	Quoted Prices in     Active Markets for Identical Assets (Level 1)		Significant   Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
U.S. Treasury securities	$	48,961	$	0	$	0	$	48,961
Money market accounts		7,356		0		0		7,356
Total assets at fair value	$	56,317	$	0	$	0	$	56,317

The above table excludes $4.9 million of cash held in banks.

   Short-term Investments

	September 30, 2011
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
	(In thousands)
U.S. Treasury securities	$	48,949	$	30	$	0	$	48,979
Total	$	48,949	$	30	$	0	$	48,979

	December 31, 2010
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
	(In thousands)
U.S. Treasury securities	$	48,942	$	19	$	0	$	48,961
Total	$	48,942	$	19	$	0	$	48,961

The contractual maturities of the Company's available-for-sale securities on September 30, 2011 and December 31, 2010 were all due within one year.