Cash and Cash Equivalents and Fair Value Measurements

6 Months Ended

Jun. 30, 2011

Cash and Cash Equivalents and Fair Value Measurements [Abstract]

CASH AND CASH EQUIVALENTS AND FAIR VALUE MEASUREMENTS

2. CASH AND CASH EQUIVALENTS AND FAIR VALUE MEASUREMENTS

Cash and cash equivalents consisted of the following (in thousands):

	June 30,		December 31,
	2011		2010
Cash	$	24,237	$	12,687
Cash equivalents:
Money market funds		46,782		52,832
Total cash and cash equivalents	$	71,019	$	65,519

Cash equivalents are measured at fair value. Fair value is based on the price 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. In order to increase consistency and comparability in fair value measurements, the accounting guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels. These levels, in order of highest priority to lowest priority, are described below:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3: Unobservable inputs are used when little or no market data is available.

The company’s cash equivalents at June 30, 2011 and December 31, 2010 were all classified within Level 1. There were no movements between fair value measurement levels of the company’s cash equivalents during the six months ended June 30, 2011.

The carrying amounts reported in the financial statements for accounts receivable and accounts payable approximate their fair values because of the short-term maturities of these financial instruments.