Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

3. Fair Value Measurements

The carrying values of our cash and cash equivalents, marketable securities and other securities, carried at fair value as of September 30, 2011 are classified in the table below in one of the three categories of the fair value hierarchy described below:

	Fair Value Measurements
	($ in ‘000’s)
	Level 1		Level 2		Level 3		Total
2011
Assets:
Cash and cash equivalents	$	110,293	$	—	$	—	$	110,293
Bank CDs		—		27,115		—		27,115
Money market currency funds		—		23,369		—		23,369
Cash and cash equivalents and marketable securities		110,293		50,484		—		160,777
Other securities		213		—		—		213
	$	110,506	$	50,484	$	—	$	160,990

We measure fair value based on the prices 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. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include the following:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. These inputs include quoted prices for similar assets or liabilities; quoted market prices 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: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in the assessment of fair value. Cash equivalents consist of certificates of deposit and are valued at cost, which approximates fair value due to the short-term maturities of these instruments. Marketable securities consist of certificates of deposit, US Treasury bills, US Treasury-backed securities and corporate deposits, which are stated at carrying value as it approximates fair value due to the short term maturities of these instruments.

The following summarizes the activity of Level 3 inputs measured on a recurring basis for the nine months ended September 30, 2011:

	Fair Value
	Measurements of
	Common Stock
	Warrants Using
	Significant
	Unobservable
	Inputs (Level 3)
	($ in ‘000’s)
Balance at December 31, 2010	$	3,904
Adjustments resulting from change in value of warrants recognized in earnings		3,488
Adjustments resulting from exercise of warrants recognized in equity		(7,392	)
Balance at September 30, 2011	$	—

During the nine months ended September 30, 2011, the fair value of common stock warrants decreased approximately $3.9 million due to the exercise of 3,747,312 warrants on or before September 15, 2011, for a total aggregate exercise price of $24.8 million

We did not elect the fair value option, as allowed, to account for financial assets and liabilities that were not previously carried at fair value. Therefore, material financial assets and liabilities that are not carried at fair value, such as trade accounts receivable and payable, are reported at their historical carrying values.