2.2.0.25falsefalse0202 - Disclosure - Summary of Significant Accounting Policiestruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) USD ($) / shares $FROM_Jan01_2011_TO_Mar31_2011http://www.sec.gov/CIK0001265888duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0EPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0nsr_SummaryOfSignificantAccountingPoliciesAbstractnsrfalsenadurationSummary of Significant Accounting Policiesfalsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringSummary of Significant Accounting PoliciesfalsefalseSummary of Significant Accounting Policies [Abstract]3false0us-gaap_SignificantAccountingPoliciesTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse002.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESUnaudited Interim Financial InformationThe accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2011 are not necessarily indicative of the results that may be expected for the full fiscal year. The consolidated balance sheet as of December 31, 2010 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2010 (the 2010 Form 10-K) filed with the Securities and Exchange Commission.Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Significant estimates and assumptions are inherent in the analysis and the measurement of deferred tax assets; the identification and quantification of income tax liabilities due to uncertain tax positions; restructuring liabilities; valuation of investments; recoverability of intangible assets, other long-lived assets and goodwill; and the determination of the allowance for doubtful accounts. The Company bases its estimates on historical experience and assumptions that it believes are reasonable. Actual results could differ from those estimates. Fair Value of Financial InstrumentsThe Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic Financial Instruments requires disclosures of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. Due to their short-term nature, the carrying amounts reported in the accompanying consolidated financial statements approximate the fair value for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses. The Company determined the fair value of its short-term and long-term investments utilizing quoted market prices in active markets (see Note 4). The Company believes the carrying value of its notes receivable approximates fair value as the interest rate approximates a market rate. The estimated fair values of the Company's financial instruments are as follows (in thousands):<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 16px"><td style="width: 7px; text-align:left;border-color:#000000;min-width:7px;"> </td><td style="width: 64px; text-align:left;border-color:#000000;min-width:64px;"> </td><td style="width: 206px; text-align:left;border-color:#000000;min-width:206px;"> </td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;"> </td><td colspan="3" style="width: 183px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:183px;">December 31, 2010</td><td style="width: 25px; text-align:center;border-color:#000000;min-width:25px;"> </td><td style="width: 25px; text-align:left;border-color:#000000;min-width:25px;"> </td><td colspan="3" style="width: 183px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:183px;">March 31, 2011</td></tr><tr style="height: 16px"><td style="width: 7px; text-align:left;border-color:#000000;min-width:7px;"> </td><td style="width: 64px; text-align:left;border-color:#000000;min-width:64px;"> </td><td style="width: 206px; text-align:left;border-color:#000000;min-width:206px;"> </td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;"> </td><td style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:79px;">Carrying</td><td style="width: 25px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:25px;"> </td><td style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:79px;"> </td><td style="width: 25px; text-align:left;border-color:#000000;min-width:25px;"> </td><td style="width: 25px; text-align:left;border-color:#000000;min-width:25px;"> </td><td style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:79px;">Carrying</td><td style="width: 25px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:25px;"> </td><td style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:79px;"> </td></tr><tr style="height: 16px"><td style="width: 7px; text-align:left;border-color:#000000;min-width:7px;"> </td><td style="width: 64px; text-align:left;border-color:#000000;min-width:64px;"> </td><td style="width: 206px; text-align:left;border-color:#000000;min-width:206px;"> </td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;"> </td><td style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;">Amount</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;"> </td><td style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;">Fair Value</td><td style="width: 25px; text-align:center;border-color:#000000;min-width:25px;"> </td><td style="width: 25px; text-align:center;border-color:#000000;min-width:25px;"> </td><td style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;">Amount</td><td style="width: 25px; text-align:center;border-color:#000000;min-width:25px;"> </td><td style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;">Fair Value</td></tr><tr style="height: 16px"><td colspan="3" style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Cash and cash equivalents</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:79px;"> 331,570</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:79px;"> 331,570</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;"> </td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:79px;"> 296,684</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:79px;"> 296,684</td></tr><tr style="height: 16px"><td colspan="3" style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Restricted cash (current assets)</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 556</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 556</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;"> </td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 9,791</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 9,791</td></tr><tr style="height: 16px"><td colspan="3" style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Short-term investments</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 13,802</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 13,802</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;"> </td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 29,536</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 29,536</td></tr><tr style="height: 16px"><td colspan="3" style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Notes receivable</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 1,590</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 1,590</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;"> </td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 575</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 575</td></tr><tr style="height: 16px"><td colspan="3" style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Marketable securities (other assets, long-term)</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 3,681</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 3,681</td><td style="width: 25px; text-align:left;border-color:#000000;min-width:25px;"> </td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 4,358</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 4,358</td></tr><tr style="height: 16px"><td colspan="3" style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Long-term investments</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 37,009</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 37,009</td><td style="width: 25px; text-align:left;border-color:#000000;min-width:25px;"> </td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 65,996</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 65,996</td></tr><tr style="height: 16px"><td colspan="3" style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Deferred compensation (other liabilities, long-term)</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 3,621</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 3,621</td><td style="width: 25px; text-align:left;border-color:#000000;min-width:25px;"> </td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 4,332</td><td style="width: 25px; text-align:right;border-color:#000000;min-width:25px;">$</td><td style="width: 79px; text-align:right;border-color:#000000;min-width:79px;"> 4,332</td></tr></table></div>Restricted CashAs of December 31, 2010 and March 31, 2011, restricted cash was $0.6 million and $9.8 million, respectively. As of March 31, 2011, cash of $9.3 million was restricted as collateral for the Company's outstanding letters of credit (see Note 6). As of December 31, 2010 and March 31, 2011, cash of $0.6 million and $0.5 million, respectively, was restricted for deposits on leased facilities. Revenue RecognitionThe Company provides essential technology and directory services to carrier and enterprise customers pursuant to various private commercial and government contracts. The Company's revenue recognition policies are in accordance with the Revenue Recognition Topic of the FASB ASC. Significant Contracts As part of its carrier services, the Company provides number portability administration center services (NPAC Services), which include wireline and wireless number portability, implementation of the allocation of pooled blocks of telephone numbers and network management services in the United States pursuant to seven contracts with North American Portability Management LLC (NAPM), an industry group that represents all telecommunications service providers in the United States. The aggregate fees for transactions processed under these contracts are determined by an annual fixed-fee pricing model under which the annual fixed fee (Base Fee) was set at $362.1 million and $385.6 million in 2010 and 2011, respectively, and is subject to an annual price escalator of 6.5% in subsequent years. These contracts also provide for fixed credits to customers of $25.0 million in 2010 and $5.0 million in 2011, which were applied to reduce the Base Fee for the applicable year. Customers under these contracts may earn additional credits of up to $15.0 million annually in each of 2010 and 2011 if the customers reach specific levels of aggregate telephone number inventories and adopts and implements certain IP fields and functionality. These contracts also enable the Company's customers to earn credits if the volume of transactions in a given year is above or below the contractually established volume range for that year. The determination of credits earned based on transaction volume is done annually at the end of each year and earned credits are applied to the following year's invoices. To the extent any additional credits expire unused at the end of a year, they will be recognized in revenue at that time. The Company determines the fixed and determinable fee under these contracts on an annual basis at the beginning of each year and recognizes this fee in its Carrier Services operating segment on a straight-line basis over twelve months. For 2010, the Company concluded that the fixed and determinable fee equaled $322.1 million, which represented the Base Fee of $362.1 million, reduced by the $25.0 million fixed credit and $15.0 million of additional credits. For 2011, the Company concluded that the fixed and determinable fee equals $365.6 million, which represents the Base Fee of $385.6 million, reduced by the $5.0 million fixed credit and $15.0 million of additional credits. As of March 31, 2011, the Company has determined that its carrier customers have earned all of the additional credits of $15.0 million attributable to the adoption and implementation of the requisite IP fields and functionality and the achievement of specific levels of aggregate telephone number inventories. The total amount of revenue derived under the Company's contracts with NAPM, comprised of NPAC Services, connection service fees related to the Company's NPAC Services and system enhancements, was approximately $84.8 million and $93.8 million for the three months ended March 31, 2010 and 2011, respectively.Fees under the Company's contracts with NAPM are billed to telecommunications service providers based on their allocable share of the total transaction charges. This allocable share is based on each respective telecommunications service provider's share of the aggregate end-user services revenues of all U.S. telecommunications service providers, as determined by the Federal Communications Commission. The Company also bills a Revenue Recovery Collections fee equal to a percentage of monthly billings to its customers under its NAPM contracts, which is available to the Company if any customer fails to pay its allocable share of total transactions charges under the contracts to provide NPAC Services. Carrier ServicesUnder its seven contracts with NAPM, the Company provides NPAC Services. As discussed above under the heading “Revenue Recognition - Significant Contracts,” the Company determines the fixed and determinable fee on an annual basis and recognizes such fee on a straight-line basis over twelve months. The Company provides NPAC Services in Canada under its long-term contract with the Canadian LNP Consortium Inc. The Company recognizes revenue on a per-transaction fee basis as the services are performed. The Company generates revenue from its telephone number administration services under two government contracts: North American Numbering Plan Administrator (NANPA) and National Pooling Administrator (NPA). Under its NANPA contract, the Company earns a fixed annual fee and recognizes this fee as revenue on a straight-line basis as services are provided. Under its NPA contract, the Company earns a fixed fee associated with administration of the pooling system. The Company recognizes revenue for this contract on a straight-line basis over the term of the contract. In the event the Company estimates losses on these fixed price contracts, the Company recognizes these losses in the period in which a loss becomes apparent. The Company generates revenue from connection fees and system enhancements provided under its contracts with NAPM. The Company recognizes connection fee revenue as the service is performed. System enhancements are provided under contracts in which the Company is reimbursed for costs incurred plus a fixed fee, and revenue is recognized based on costs incurred plus a pro rata amount of the fee.The Company provides Order Management Services, consisting of customer set-up and implementation followed by transaction processing, under contracts with terms ranging from one to three years. Customer set-up and implementation is not considered a separate deliverable; accordingly, the fees for these services are deferred and recognized as revenue on a straight-line basis over the term of the contract. Per-transaction fees are recognized as the transactions are processed. Enterprise ServicesThe Company generates revenue from the management of internal and external DNS services. The Company's revenue from these services consists of customer set-up fees, monthly recurring fees and per-transaction fees for transactions in excess of pre-established monthly minimums under contracts with terms ranging from one to three years. Customer set-up fees are not considered a separate deliverable and are deferred and recognized on a straight-line basis over the term of the contract. Under the Company's contracts to provide DNS services, customers have contractually established monthly transaction volumes for which they are charged a recurring monthly fee. Transactions processed in excess of the pre-established monthly volume are billed at a contractual per-transaction rate. Each month, the Company recognizes the recurring monthly fee and usage in excess of the established monthly volume on a per-transaction basis as services are provided.The Company generates revenue related to its Internet domain name registry services under contracts with terms generally between one and ten years. The Company recognizes revenue on a straight-line basis over the term of the related customer contracts.The Company generates revenue from its U.S. Common Short Code services under short-term contracts ranging from three to twelve months, and the Company recognizes revenue on a straight-line basis over the term of the related customer contracts.Accounting for Multiple Element Arrangements Entered Into or Materially Modified After January 1, 2011 In September 2009, the FASB ratified Accounting Standard Update (ASU) 2009-13, Revenue Recognition Topic 605 - Multiple-Deliverable Revenue Arrangements (ASU 2009-13). When vendor specific objective evidence or third party evidence for deliverables in a multiple-element arrangement cannot be determined, the Company will be required to develop a best estimate of the selling price for separate deliverables and allocate arrangement consideration using the relative selling price method. The Company adopted ASU 2009-13 on a prospective basis for arrangements entered into or materially modified on or after January 1, 2011. During 2010 and the three months ended March 31, 2011, certain of the Company's arrangements included customer set-up and implementation services, followed by ongoing transaction processing. These customer set-up and implementation services were not considered a separate deliverable that provides stand-alone value to the customer and such fees were deferred and recognized as revenue on a straight-line basis over the term of the contract. Accordingly, the adoption of ASU 2009-13 did not have a material effect on the Company's revenue recognized for the three months ended March 31, 2011. Assuming the adoption of ASU 2009-13 on a prospective basis for arrangements entered into or materially modified on or after January 1, 2010, the effect on revenue recognized for the three months ended March 31, 2010 would not have been materially different.Service Level Standards Some of the Company's private commercial contracts require the Company to meet service level standards and impose corresponding penalties if the Company fails to meet those standards. The Company records a provision for these performance-related penalties in the period in which it becomes aware that it has failed to meet required service levels, triggering the requirement to pay a penalty, which results in a corresponding reduction to revenue.Income TaxesThe Company accounts for income taxes in accordance with the Income Taxes Topic of the FASB ASC. Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting bases and the tax bases of assets and liabilities. Deferred tax assets are also recognized for tax net operating loss carryforwards. These deferred tax assets and liabilities are measured using the enacted tax rates and laws that will be in effect when such amounts are expected to be reversed or utilized. Valuation allowances are provided to reduce such deferred tax assets to amounts more likely than not to be ultimately realized. The income tax provision includes U.S. federal, state, local and foreign income taxes and is based on pre-tax income or loss. In determining the projected annual effective income tax rate, the Company analyzes various factors, including the Company's annual earnings and taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes and the ability of the Company to use tax credits and net operating loss carryforwards.The Company assesses uncertain tax positions in accordance with income tax accounting standards. Under these standards, income tax benefits should be recognized when, based on the technical merits of a tax position, the Company believes that if a dispute arose with the taxing authority and were taken to a court of last resort, it is more likely than not (i.e., a probability of greater than 50 percent) that the tax position would be sustained as filed. If a position is determined to be more likely than not of being sustained, the reporting enterprise should recognize the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with the taxing authority. The Company's practice is to recognize interest and penalties related to income tax matters in income tax expense.Recent Accounting PronouncementsThere have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company's consolidated financial statements, from those disclosed in the 2010 Form 10-K. 2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESUnaudited Interim Financial InformationThe accompanying unauditedfalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringThis element may be used to describe all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 22 -Paragraph 8 falsefalseSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES12Summary of Significant Accounting PoliciesUnKnownUnKnownUnKnownUnKnownfalsetrue