FAIR VALUE MEASUREMENTS:

6 Months Ended

Jun. 30, 2015

NOTE 3 — FAIR VALUE MEASUREMENTS:

Fair value hierarchy

The Company measures its financial instruments at fair value. The Company’s cash equivalents are classified within Level 1. Cash equivalents are valued primarily using quoted market prices utilizing market observable inputs. The Company’s investments in debt securities and certificates of deposits are classified within Level 2 as the market inputs to value these instruments consist of market yields, reported trades and broker/dealer quotes. In addition, foreign currency contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Level 3 valuation inputs include the Company’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. At June 30, 2015 and December 31, 2014, the Company did not have any financial instruments valued based on Level 3 valuations.

The following table represents the fair value hierarchy of the Company’s financial assets measured at fair value at June 30, 2015.

	Level 1		Level 2		Total
	(in thousands)
Money market funds	$	6,623	$	—	$	6,623
Certificates of deposit	—		103,895		103,895
U.S. Government and agency securities	—		62,610		62,610
Commercial paper	—		59,635		59,635
Corporate bonds	—		127,018		127,018
Municipal bonds	—		28,090		28,090
Foreign government bonds	—		14,096		14,096
Derivative contracts	—		2,186		2,186

Total financial assets	$	6,623	$	397,530	$	404,153

The following table represents the fair value hierarchy of the Company’s financial assets and liabilities measured at fair value at December 31, 2014.

	Level 1		Level 2		Total
	(in thousands)
Money market funds	$	4,426	$	—	$	4,426
Certificates of deposit	—		80,275		80,275
U.S. Government and agency securities	—		99,114		99,114
Commercial paper	—		23,019		23,019
Corporate bonds	—		111,736		111,736
Municipal bonds	—		13,104		13,104
Foreign government bonds	—		6,790		6,790

Total financial assets	$	4,426	$	334,038	$	338,464

Derivative contracts	—		3,562		3,562

Total financial liabilities	$	—	$	3,562	$	3,562

The Company had no financial liabilities measured at fair value at June 30, 2015. There were no transfers between Level 1 and Level 2 securities during the six months ended June 30, 2015 or during the year ended December 31, 2014.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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