Fair Value Measurement

9 Months Ended

Sep. 30, 2012

Fair Value Measurement [Abstract]

Fair Value Measurement

7.   Fair Value Measurement

Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are classified in one of three categories which are described below.

•Level 1 — Quoted prices in active markets for identical assets or liabilities.

•Level 2 — Inputs, other than quoted market prices in active markets, that are observable either directly or indirectly.

•Level 3 — Unobservable inputs based on our own assumptions.

The following table sets forth our assets and liabilities that are measured at fair value on a recurring basis at September 30, 2012:

( in thousands )
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	248,921	$	248,921
Liabilities:
Derivative liability	$	794			$	794
Temporary equity:
Redeemable noncontrolling interest	$	115,722					$	115,722

The following table sets forth our assets and liabilities that are measured at fair value on a recurring basis at December 31, 2011:

( in thousands )
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	587,617	$	587,617
Derivative asset		5,820			$	5,820
Total assets	$	593,437	$	587,617	$	5,820
Temporary equity:
Redeemable noncontrolling interest	$	162,750					$	162,750

Derivatives include freestanding foreign currency forward contracts which are marked to market at each reporting period. We classify our foreign currency forward contracts within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

We determine the fair value of the redeemable noncontrolling interest using a combination of a discounted cash flow valuation model and a market approach that applies revenues and EBITDA estimates against the calculated multiples of comparable companies.  Operating revenues and EBITDA are key assumptions utilized in both the discounted cash flow valuation model and the market approach.  The selected discount rate of approximately 12% is also a key assumption in our discounted cash flow valuation model (Refer to Note 12—Redeemable Noncontrolling Interest and Noncontrolling Interest for additional information).

The following table summarizes the activity for account balances whose fair value measurements are estimated utilizing level 3 inputs:

( in thousands )	Redeemable Noncontrolling Interests
				Three months ended					Nine months ended
				September 30,					September 30,
	2012			2011		2012			2011
Beginning period balance	$	116,843		$	163,087	$	162,750		$	158,148
Redemption of noncontrolling interest										(3,400	)
Dividends paid to noncontrolling interest							(52,500	)
Net income (loss) and fair value adjustment		(1,121	)		2,479		5,472			10,659
Noncontrolling interest's share of foreign currency translation										159

   End period balance $ 115,722 $ 165,566 $ 115,722 $ 165,566