FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

FAIR VALUE

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 details the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2013 and December 31, 2012 (in thousands):

	Quoted Prices In Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
June 30, 2013
Assets:
Derivative assets	$	—	$	804	$	804
Liabilities:
Derivative liabilities	$	—	$	93	$	93
December 31, 2012
Assets:
U.S. government obligations and agency securities	$	—	$	6,829	$	6,829
U.S. corporate debt	—		664		664
Foreign corporate debt and equity securities	—		1,873		1,873
Total	$	—	$	9,366	$	9,366
Derivative assets	$	—	$	842	$	842
Liabilities:
Derivative liabilities	$	—	$	829	$	829

The Company’s Level 2 input assumptions are determined based on review of third-party sources.

The fair value of the Company’s derivative assets and liabilities is based on the estimated consideration the Company would pay or receive to terminate these agreements on the reporting date as determined by quoted prices for such instruments in active markets. The derivative assets and liabilities are located in Other current assets and Accrued liabilities, respectively, in the accompanying Condensed Consolidated Balance Sheets.

As of June 30, 2013 and December 31, 2012, the Company had no financial assets or liabilities measured on a recurring basis 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.

Debt Obligations

Debt obligations are not recorded at fair value on a recurring basis and are carried at amortized cost. The fair value of the Company's 4.00% Convertible Senior Notes (“4.00% Notes”) is based on quoted market prices at the balance sheet date and categorized within Level 1 of the fair value hierarchy. At June 30, 2013, the fair value of the 4.00% notes was approximately $106.1 million. The fair value of the third-party financing (“Term Loan”) approximated its carrying value and is categorized within Level 3 of the fair value hierarchy. At June 30, 2013, the fair value of the Term Loan was $66.9 million. See Note 9. “Debt Obligations” for further information on the Company’s debt obligations.