Fair Value Measurements

12 Months Ended

Dec. 31, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 4 — Fair Value Measurements

The following table represents the Company’s fair value hierarchy for its financial assets (available-for-sale investments) and liability measured at fair value on a recurring basis (in thousands):

	Fair Value Measurements at December 31, 2012 Using
		Quoted Prices in		Significant
		Active Markets		Other		Significant
		for		Observable		Unobservable		Balance
		Identical Assets		Inputs		Inputs		as of
Description		(Level 1)		(Level 2)		(Level 3)		December 31, 2012
Assets:
Certificate of deposit	$	—	$	75	$	—	$	75
Money market funds		43,505		—		—		43,505
Restricted Italian state
bonds		384		—		—		384
Total	$	43,889	$	75	$	—	$	43,964

	Fair Value Measurements at December 31, 2011 Using
		Quoted Prices in		Significant
		Active Markets		Other		Significant
		for		Observable		Unobservable		Balance
		Identical Assets		Inputs		Inputs		as of
Description		(Level 1)		(Level 2)		(Level 3)		December 31, 2011
Assets:
Money market funds	$	31,849	$	—	$	—	$	31,849
Restricted Italian state
bonds		364		—		—		364
Total	$	32,213	$	—	$	—	$	32,213
Liability:
Contingent
consideration	$	—	$	—	$	15,400	$	15,400
Total	$	—	$	—	$	15,400	$	15,400

The following table provides a summary of changes in fair value of the Company’s level 3 financial assets and liability during fiscal 2010, 2011, and 2012(in thousands):

	Auction Rate		Put		Contingent
	Securities		Option		Consideration
Balance at December 31, 2009	$	1,588	$	202	$	—
Proceeds from sales		(1,800)		—		—
Total realized gain (loss) included in other income (expense)		212		(202)		—
Balance at December 31, 2010		—		—		—
Fair value at acquisition date		—		—		18,870
Change in the estimated fair value of the
contingent consideration liability		—		—		(3,495)
Translation adjustments		—		—		25
Balance at December 31, 2011		—		—		15,400
Change in the estimated fair value of the
contingent consideration liability		—		—		(15,422)
Translation adjustments		—		—		22
Balance at December 31, 2012	$	—	$	—	$	—

Contingent Consideration

As part of the acquisition of NovaMed, the Company would have been required to pay up to an additional $43.0million in earn-out payments upon the successful achievement of revenue and earnings targets for the 2011 and 2012 fiscal years (the “earn-out” or “contingent consideration”). The measurement period for the contingent consideration ended on December 31, 2012 and the payout of the contingent consideration was determined to be zero. The terms governing the earn-out and information regarding the estimated fair value of the earn-out are disclosed in Note 9,Acquistion.

Auction Rate Securities and Put Option

In November 2008, the Company accepted an Auction Rate Securities Rights Offer (the “Settlement Agreement”) from UBS AG under which, in return for a general release of claims and the grant of a right to UBS AG to purchase the Company’s ARS at any time for full par value, the Company received the right to require UBS AG to purchase the Company’s ARS beginning in June 2010 (the “Rights”). By entering into the Settlement Agreement, the Company (1) received the right (the “Put Option”) to sell these auction rate securities back to the investment firm at par, at its sole discretion, anytime during the period from June 30, 2010 through July 2, 2012, and (2) gave the investment firm the right to purchase these auction rate securities or sell them on the Company’s behalf at par anytime after the execution of the Settlement Agreement through July 2, 2012. On June 30, 2010, the Company exercised the Put Option and sold its ARS back to the investment firm.