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

3 Months Ended

Mar. 31, 2012

Cash and Cash Equivalents [Abstract]

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

Cash and cash equivalents and short-term investments consist of the following significant investment asset classes, with disclosure of amortized cost, gross unrealized gains and losses, and fair value as of March 31, 2012 and December 31, 2011 (in thousands):

	March 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash / Cash Equivalents		Short-term Investments		Security Classification (1)
Cash	$	12,717	$	—	$	—	$	12,717	$	12,717	$	—	N/A
Money market funds	188,703		—		—		188,703		188,703		—		Available for sale
Non-U.S. Government securities	8,114		3		—		8,117		—		8,117		Available for sale
Total cash, cash equivalents and short-term investments	$	209,534	$	3	$	—	$	209,537	$	201,420	$	8,117

	December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Cash / Cash Equivalents		Short-term Investments		Security Classification (1)
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

(1)           For Available-for-sale securities, fair value is the asset’s carrying value, equal to the amortized cost plus any unrealized gains/losses. For Held-to-maturity securities, the amortized cost is the asset’s carrying value (since there are no other-than-temporary impairments) and the fair value gains/losses are not only unrealized, but also unrecorded.

The money market fund is a daily-traded cash equivalent with the price of $1.00, making it a Level 1 asset class, and its carrying cost closely approximates fair value. As 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 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 same-day, same-security trades.

The following table displays the financial assets measured at fair value, on a recurring basis, with money market funds recorded within cash and cash equivalents and non-U.S Government securities in short-term investments (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 March 31, 2012
Money market funds	$	188,703	$	—	—	$	188,703
Non U.S. Government securities	—		8,117		—	8,117
Total	$	188,703	$	8,117	—	$	196,820
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

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