Fair Value Of Financial Instruments

9 Months Ended

Oct. 02, 2011

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

14. Fair Value of Financial Instruments

The Company measures certain financial assets and liabilities at fair value on a recurring basis.

The following tables summarize the valuation of the Company's financial instruments as of October 2, 2011 (in thousands):

	As of October 2, 2011
	Total		Quoted market prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents—money-market funds	$	24,624	$	24,624	$	—	$	—
Available-for-sale securities—U.S. Treasuries (1)		145,192		145,192		—		—
Available-for-sale securities—Certificates of Deposit (1)		1,589		1,589		—		—
Foreign currency forward contracts (2)		1,970		—		1,970		—
Total	$	173,375	$	171,405	$	1,970	$	—

(1) Included in short-term investments on the Company's unaudited condensed consolidated balance sheet.

(2) Included in prepaid expenses and other current assets on the Company's unaudited condensed consolidated balance sheet.

	As of October 2, 2011
	Total			Quoted market prices in active markets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Foreign currency forward contracts (3)	$	(573	)	$	—	$	(573	)	$	—
Total	$	(573	)	$	—	$	(573	)	$	—

(3) Included in other accrued liabilities on the Company's unaudited condensed consolidated balance sheet.

The following tables summarize the valuation of the Company's financial instruments as of December 31, 2010 (in thousands):

	As of December 31, 2010
	Total		Quoted market prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents—money-market funds	$	77,795	$	77,795	$	—	$	—
Available-for-sale securities—Treasuries (1)		144,564		144,564		—		—
Foreign currency forward contracts (2)		1,389		—		1,389		—
Total	$	223,748	$	222,359	$	1,389	$	—

(1) Included in short-term investments on the Company's unaudited condensed consolidated balance sheet.

(2) Included in prepaid expenses and other current assets on the Company's unaudited condensed consolidated balance sheet.

	As of December 31, 2010
	Total			Quoted market prices in active markets (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Foreign currency forward contracts (3)	$	(789	)	$	—	$	(789	)	$	—
Total	$	(789	)	$	—	$	(789	)	$	—

(3) Included in other accrued liabilities on the Company's unaudited condensed consolidated balance sheet.

The Company's investments in cash equivalents and available-for-sale securities are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company enters into foreign currency forward contracts with only those counterparties that have long-term credit ratings of A+/A1 or higher. The Company's foreign currency forward contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that take into account the contract terms as well as currency rates and counterparty credit rates. The Company verifies the reasonableness of these pricing models using observable market data for related inputs into such models. Additionally, the Company includes an adjustment for non-performance risk in the recognized measure of fair value of derivative instruments. At October 2, 2011 and December 31, 2010, the adjustment for non-performance risk did not have a material impact on the fair value of the Company's foreign currency forward contracts. The carrying value of non-financial assets and liabilities measured at fair value in the financial statements on a recurring basis, including accounts receivable and accounts payable, approximate fair value due to their short maturities.