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CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS
 9 Months Ended
Sep. 28, 2012
CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS  
CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS

(5) CASH EQUIVALENTS, MARKETABLE SECURITIES AND LONG-TERM INVESTMENTS

        Cash equivalents and marketable securities are invested in debt and equity instruments, primarily U.S. government-backed and corporate obligations, which management believes to be high quality (investment grade) credit instruments.

        The amortized cost, gross unrealized gains and losses and fair value of the Company's marketable debt and equity securities and investments at September 28, 2012 and December 31, 2011 were comprised of the following (in thousands):

 
   September 28, 2012  
 
   Amortized
cost 		  Unrealized
gains 		  Unrealized
losses 		  Fair
value 		 

Cash equivalents

   $ 45,009   $ —   $ —   $ 45,009  
                   

Marketable securities

                          

U.S. government agency notes

   $ 66,711   $ 20   $ (1 ) $ 66,730  

Foreign government notes

     3,753     2     —     3,755  

Corporate debt securities

     113,503     77     (9 )   113,571  

Commercial paper

     5,484     10     —     5,494  

Certificates of deposit

     17,050     16     (2 )   17,064  
                   

 

   $ 206,501   $ 125   $ (12 ) $ 206,614  
                   

Investments

                          

U.S. government agency notes

   $ 16,611   $ 25   $ —   $ 16,636  

Corporate debt securities

     6,391     18     (8 )   6,401  

Asset-backed securities

     1,022     2     (3 )   1,021  
                   

 

   $ 24,024   $ 45   $ (11 ) $ 24,058  
                   

 

 
   December 31, 2011  
 
   Amortized
cost 		  Unrealized
gains 		  Unrealized
losses 		  Fair
value 		 

Cash equivalents

   $ 63,105   $ —   $ —   $ 63,105  
                   

Marketable securities

                          

U.S. government agency notes

   $ 106,631   $ 100   $ (4 ) $ 106,727  

Foreign government notes

     1,770     1     —     1,771  

Corporate debt securities

     73,218     52     (20 )   73,250  

Commercial paper

     22,787     1     (1 )   22,787  

Certificates of deposit

     19,548     8     (1 )   19,555  
                   

 

   $ 223,954   $ 162   $ (26 ) $ 224,090  
                   

Investments

                          

U.S. government agency notes

   $ 44,144   $ 4   $ (18 ) $ 44,130  

Corporate debt securities

     11,296     9     (8 )   11,297  
                   

 

   $ 55,440   $ 13   $ (26 ) $ 55,427  
                   

        The contractual maturity dates for the Company's available-for-sale securities are one year or less from the respective balance sheet dates for the securities that are classified as Marketable securities and more than one year from the respective balance sheet dates for the securities that are classified as Investments in the condensed consolidated balance sheets.

Fair Value Hierarchy

        The Company's financial assets or liabilities are measured using inputs from the three-tier fair value hierarchy, which is based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:

        Level 1.    Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

        Level 2.    Level 2 applies to assets or liabilities for which there are inputs that are directly or indirectly observable in the marketplace, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets).

        Level 3.    Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

        The following table shows the fair value of the Company's financial assets at September 28, 2012 and December 31, 2011. These financial assets are comprised of the Company's available-for-sale debt and equity securities and reported under the captions Cash and cash equivalents, Marketable securities and Investments in the condensed consolidated balance sheets (in thousands):

 
    
   Fair value measurements at
September 28, 2012 using: 		 
 
   Total carrying
value at
September 28,
2012 		  Quoted prices
in active
markets
(Level 1) 		  Significant other
observable
inputs
(Level 2) 		  Significant
unobservable
inputs
(Level 3) 		 

Cash equivalents

   $ 45,009   $ 45,009   $ —   $ —  
                   

Marketable securities

                          

U.S. government agency notes

   $ 66,730   $ —   $ 66,730   $ —  

Foreign government notes

     3,755     —     3,755     —  

Corporate debt securities

     113,571     —     113,571     —  

Commercial paper

     5,494     —     5,494     —  

Certificates of deposit

     17,064     —     17,064     —  
                   

 

   $ 206,614   $ —   $ 206,614     —  
                   

Investments

                          

U.S. government agency notes

   $ 16,636   $ —   $ 16,636   $ —  

Corporate debt securities

     6,401     —     6,401     —  

Asset-backed securities

     1,021     —     1,021     —  
                   

 

   $ 24,058   $ —   $ 24,058   $ —  
                   

 

 
    
   Fair value measurements at
December 31, 2011 using: 		 
 
   Total carrying
value at
December 31,
2011 		  Quoted prices
in active
markets
(Level 1) 		  Significant other
observable
inputs
(Level 2) 		  Significant
unobservable
inputs
(Level 3) 		 

Cash equivalents

   $ 63,105   $ 63,105   $ —   $ —  
                   

Marketable securities

                          

U.S. government agency notes

   $ 106,727   $ —   $ 106,727   $ —  

Foreign government notes

     1,771     —     1,771     —  

Corporate debt securities

     73,250     —     73,250     —  

Commercial paper

     22,787     —     22,787     —  

Certificates of deposit

     19,555     —     19,555     —  
                   

 

   $ 224,090   $ —   $ 224,090   $ —  
                   

Investments

                          

U.S. government agency notes

   $ 44,130   $ —   $ 44,130   $ —  

Corporate debt securities

     11,297     —     11,297     —  
                   

 

   $ 55,427   $ —   $ 55,427   $ —  
                   

        The Company's marketable securities and investments have been valued on the basis of valuations provided by third-party pricing services, as derived from such services' pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. The Company is ultimately responsible for the condensed consolidated financial statements and underlying estimates. Accordingly, the Company assesses the reasonableness of the valuations provided by the third-party pricing services by reviewing actual trade data, broker/dealer quotes and other similar data, which are obtained from quoted market prices or other sources.