FAIR VALUE

3 Months Ended

Mar. 31, 2012

FAIR VALUE [Abstract]

FAIR VALUE

NOTE 2-FAIR VALUE

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance.

A fair value hierarchy was established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities;

Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities 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; or

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2012 and December 31, 2011 (in thousands):

			Significant
	Quoted Prices		Other
	In Active		Observable
	Markets		Inputs
	(Level 1)		(Level 2)		Total
March 31, 2012:
Assets:
U.S. government obligations and agency securities	$	-	$	19,594	$	19,594
U.S. corporate debt		-		24,837		24,837
Foreign government obligations and agency securities		-		2,795		2,795
Foreign corporate debt and equity securities		-		15,053		15,053
Total	$	-	$	62,279	$	62,279
Foreign currency derivative assets	$	-	$	410	$	410
Liabilities:
Foreign currency derivative liabilities	$	-	$	133	$	133
December 31, 2011:
Assets:
U.S. government obligations and agency securities	$	-	$	19,598	$	19,598
U.S. corporate debt		-		25,100		25,100
Foreign government obligations and agency securities		-		2,810		2,810
Foreign corporate debt and equity securities		105		14,825		14,930
Total	$	105	$	62,333	$	62,438
Foreign currency derivative assets	$	-	$	940	$	940
Liabilities:
Foreign currency derivative liabilities	$	-	$	217	$	217

The fair value of the Company's foreign currency derivative assets and liabilities is determined based on the estimated consideration the Company would pay or receive to terminate these agreements on the reporting date. The foreign currency derivative assets and liabilities are located in other current assets and accrued liabilities, respectively, in the Condensed Consolidated Balance Sheets.

The fair value of the Company's 3.50% senior convertible notes (the "Notes") is estimated based on recent transactions with the holders (the "Holders") of the Notes. As described in further detail in "Note 8 - Senior Convertible Notes," on March 5, 2012, the Company completed the repurchase of $91.6 million in aggregate principal amount of its Notes and paid to the Holders aggregate consideration of $92.1 million, including accrued interest. As of March 31, 2012, the estimated fair value of the Notes was $3.9 million.

As of March 31, 2012 and December 31, 2011, the Company had no financial assets or liabilities requiring Level 3 classification, including those that have unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets and liabilities.