Fair Value Of Financial Instruments

6 Months Ended

Jun. 30, 2011

Fair Value Of Financial Instruments

Fair Value Of Financial Instruments

Note 3 — Fair value of financial instruments

We measure certain financial instruments at fair value on a recurring basis. We have established a hierarchy, which consists of three levels, for disclosure of the inputs used to determine the fair value of our financial instruments.

Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities.

Level 2 valuations are based on inputs that are observable, either directly or indirectly, other than quoted prices included within Level 1. Such inputs used in determining fair value for Level 2 valuations include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 valuations are based on information that is unobservable and significant to the overall fair value measurement.

All of our cash equivalents and short-term investments are classified within Level 1 or Level 2. The fair values of these financial instruments were determined using the following inputs at June 30, 2011 (in thousands):

	Fair Value Measurements at June 30, 2011 Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Description
Cash equivalents:
Money market mutual funds	$	5,466	$	5,466	$	—	$	—
Municipal securities		2,300		—		2,300		—
Total cash equivalents		7,766		5,466		2,300		—
Short-term investments:
Certificate of deposit		750		—		750		—
Municipal securities		29,297		—		29,297		—
Commercial paper		7,190		—		7,190		—
Corporate bonds		4,829		—		4,829		—
Total short-term investments		42,066		—		42,066		—
Cash equivalents and short-term investments	$	49,832	$	5,466	$	44,366	$	—

The Company did not have any financial liabilities measured at fair value on a recurring basis as of June 30, 2011 or December 31, 2010.