Fair Value Measurements

3 Months Ended

Mar. 31, 2013

Fair Value Measurements [Abstract]

Fair Value Measurements

4.  FAIR VALUE MEASUREMENTS:

We determine the fair value of our assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. We use a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1).  The next highest priority is based on quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in non-active markets or other observable inputs (Level 2).  The lowest priority is given to unobservable inputs (Level 3).  The following provides information regarding fair value measurements for our marketable securities and foreign exchange forward contracts as of March 31, 2013 and December 31, 2012 according to the three-level fair value hierarchy:

			Fair Value Measurements at  March 31, 2013 Using
(In thousands)	Balance   March 31, 2013			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Marketable securities:
U.S. government and agency obligations	$	15,571		$	—	$	15,571	$	—
Corporate debt securities and certificates of deposit		5,727			—		5,727		—
Asset backed securities		629			—		629		—
Equity security		45			45		—		—
Total marketable securities	$	21,972		$	45	$	21,927	$	—
Derivative instruments-liabilities:
Foreign exchange forward contracts	$	8		$	—	$	8	$	—

			Fair Value Measurements at  December 31, 2012 Using
(In thousands)	Balance December 31, 2012			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Marketable securities:
U.S. government and agency obligations	$	16,366		$	—	$	16,366	$	—
Corporate debt securities and certificates of deposit		5,300			—		5,300		—
Asset backed securities		165			—		165		—
Equity security		42			42		—		—
Total marketable securities	$	21,873		$	42	$	21,831	$	—
Derivative instruments-assets:
Foreign exchange forward contracts	$	153		$	—	$	153	$	—

During the three months ended March 31, 2013 there were no significant transfers within the three level hierarchy.  A significant transfer is recognized when the inputs used to value a security have been changed which merit a transfer between the disclosed levels of the valuation hierarchy.

The fair value for our U.S. government and agency obligations, corporate debt securities and certificates of deposit and asset backed securities are determined based on valuations provided by external investment managers who obtain them from a variety of industry standard data providers.  The fair value for our equity security is based on a quoted market price obtained from an active market.

The fair value for our foreign exchange forward contracts is based on foreign currency spot and forward rates obtained from reputable financial institutions with resulting valuations periodically validated by obtaining foreign currency spot rate and forward quotes from other industry standard sources, third party or counterparty quotes.  The fair value of our foreign exchange forward contracts representing a loss in the amount of $8,000 as of March 31, 2013 has been recorded in accrued expenses.  The fair value of our foreign exchange forward contracts representing a gain in the amount of $153,000 as of December 31, 2012 has been recorded in other current assets.

The carrying amounts of financial instruments such as cash equivalents, accounts receivable, income tax refunds receivable, other assets, accounts payable, and all current liabilities approximate the related fair values due to the short-term maturities of these instruments.  Non-financial assets such as equipment and leasehold improvements, goodwill and intangible assets are subject to non-recurring fair value measurements if they are deemed impaired.  We had no re-measurements of non-financial assets to fair value during the three months ended March 31, 2013 or March 31, 2012.