Cash and Cash Equivalents, Short-term Investments and Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2011

Cash and Cash Equivalents, Short-term Investments and Fair Value of Financial Instruments

Cash and Cash Equivalents, Short-term Investments and Fair Value of Financial Instruments

Note 4. Cash and Cash Equivalents, Short-term Investments and Fair Value of Financial Instruments

        Cash and cash equivalents and short-term investments consist of the following significant investment asset classes, with disclosure of carrying cost, gross unrealized gains and losses, and fair value as of December 31, 2011 and 2010, respectively (in thousands):

	December 31, 2011
									Net Carrying Amount
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash / Cash Equivalents		Short-Term Investments		Security Classification
Cash	$	14,452	$	—	$	—	$	14,452	$	14,452	$	—	N/A
Money market funds		177,310		—		—		177,310		177,310		—	Available for sale
Non-U.S. government securities		8,106		1		—		8,107		—		8,107	Available for sale
Total cash, cash equivalents and short-term investments	$	199,868	$	1		—	$	199,869	$	191,762	$	8,107

	December 31, 2010
									Net Carrying Amount
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash / Cash Equivalents		Short-Term Investments		Security Classification
Cash	$	25,593	$	—		—	$	25,593	$	25,593	$	—	N/A
Money market funds		150,042		—		—		150,042		150,042		—	Available for sale
Non-U.S. government securities		8,074		12		—		8,086		—		8,074	Held-to-maturity
Total cash, cash equivalents and short-term investments	$	183,709	$	12		—	$	183,721	$	175,635	$	8,074

        The money market fund is a daily-traded cash equivalent with price of $1.00, making it a Level 1 asset class; its carrying cost closely approximates fair value. As the demand deposit (cash) balances vary with the timing of collections and payments, the money market fund can cover any surplus or deficit, and thus is considered available-for-sale.

        The short term investments purchased in November 2010 were comprised of California revenue anticipation notes, which matured in June 2011. They were recorded at their carrying cost as held-to-maturity as we had both the ability and intent to keep these investments until they matured. The notes were a Level 2 asset class, because their pricing is drawn from multiple market-related inputs, but in general not from unadjusted trades accessible to us for the same-day, same-security.

        The short term investments purchased in September 2011 are comprised of California revenue anticipation notes, which mature in June 2012. As this is the initial investment in a broader portfolio strategy for yield management, these are considered available-for-sale. The notes are considered a Level 2 asset class, because their pricing is drawn from multiple market-related inputs, but in general not from unadjusted trades accessible to us for the same-day, same-security.

        The following table displays the financial assets carried at fair value, on a recurring basis (in thousands):

	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
At December 31, 2011
Money market funds	$	177,310		—		—	$	177,310
Non-U.S. Government securities		—	$	8,107		—	$	8,107
Total	$	177,310	$	8,107		—	$	185,417
At December 31, 2010
Money market funds	$	150,042		—		—	$	150,042
Total	$	150,042		—		—	$	150,042

        Current assets and current liabilities are recorded at amortized cost, which approximates fair value due to the short maturities implied.

        The following table displays the financial assets carried at amortized cost, but for which disclosure of fair value is required on a recurring basis (in thousands):

	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
At December 31, 2010
Non-U.S. Government securities		—	$	8,086		—	$	8,086
Total		—	$	8,086		—	$	8,086