FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2011

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

12. FAIR VALUE MEASUREMENTS

The Company has certain financial assets recorded at fair value which have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements. Fair values determined by Level 1 inputs utilize observable data such as quoted prices in active markets. Fair values determined by Level 2 inputs utilize data points other than quoted prices in active markets that are observable either directly or indirectly. Fair values determined by Level 3 inputs utilize unobservable data points in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The Company’s financial assets classified as Level 2 have been initially valued at the transaction price and subsequently valued typically utilizing third party pricing services. Because the Company’s investment portfolio may include securities that do not always trade on a daily basis, the pricing services use many observable market inputs to determine value including reportable trades, benchmark yields and benchmarking of like securities. The Company validates the prices provided by the third party pricing services by reviewing their pricing methods and obtaining market values from other pricing sources. After completing the validation procedures, the Company did not adjust or override any fair value measurements provided by these pricing services as of September 30, 2011 or December 31, 2010.

The tables below present information about the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2011 and December 31, 2010 and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value. During the nine months ended September 30, 2011 there have been no transfers between Level 1 and Level 2.

	Fair value measurements at reporting date using
	Quoted prices in active markets for		Significant other		Significant unobservable
	identical assets		observable inputs		inputs		Balance as of
Description	(Level 1)		(Level 2)		(Level 3)		9/30/11
Cash equivalents:
Money Market funds	$	8,759	$	—	$	—	$	8,759
Government Securities	—		1,778		—		1,778
Short-term investments:
Treasuries	—		1,005		—		1,005
Government Securities	—		54,296		—		54,296
Long-term investments:
Government Securities	—		14,521		—		14,521
Total	$	8,759	$	71,600	$	—	$	80,359

	Fair value measurements at reporting date using
	Quoted prices in active markets for		Significant other		Significant unobservable
	identical assets		observable inputs		inputs		Balance as of
Description	(Level 1)		(Level 2)		(Level 3)		12/31/10
Cash equivalents:
Money Market funds	$	11,533	$	—	$	—	$	11,533
Short-term investments:
Treasuries	—		1,008		—		1,008
Government Securities	—		48,040		—		48,040
Total	$	11,533	$	49,048	$	—	$	60,581

In the tables above as of September 30, 2011, government securities included $36,921 of Federal Deposit Insurance Corporation guaranteed senior notes issued by financial institutions under the Temporary Liquidity Guarantee Program.

The Company’s marketable securities are classified as cash equivalents if the original maturity, from the date of purchase, is 90 days or less and as short-term or long-term investments if the original maturity, from the date of purchase is in excess of 90 days.

The Company considers investments with a maturity date of one year or less at the balance sheet date to be short-term investments. All other investments are classified as long-term.