Fair Value of Investments

12 Months Ended

Dec. 31, 2012

Fair Value of Investments [Abstract]

Fair Value of Investments

(5) Fair Value of Investments

Our financial instruments include cash and cash equivalents, accounts receivable, marketable and non-marketable securities, accounts payable, notes payable, and certain accrued liabilities.  The carrying amounts of these assets and liabilities approximate fair value due to the short maturity of these instruments.  The carrying amounts of our marketable equity securities are based on the quoted price of the security in an active market.  The estimated fair values of the non-marketable equity securities have been determined from information obtained from independent valuations and management estimates.  The fair value of our notes payable was approximately 107.875% of par value as of December 31, 2012 and 106.125% of par value as of December 31, 2011, based on Level 1 inputs which include quoted prices of the securities in an active market.  See Note 7 for further discussion of the fair value of our debt.

Current Investment

In the second quarter of 2012, we received an equity security investment from a customer as settlement for purchase commitments and outstanding receivables associated with a contract.  This equity investment is classified as a Level 2 trading security within other current assets in our condensed consolidated balance sheet.  We estimate the fair value of this investment on a recurring basis based on the quoted market price of the security less a discount due to a trading restriction.  The valuation technique for this level 2 investment utilized qualitative and quantitative methodologies including other publicly traded companies and option pricing models.  Upon receipt, we estimated the fair value of this investment at $1,530.  At December 31, 2012, we estimated the fair value of this investment at $2,016, and recorded a gain of $486 within the other, net line in our statements of operations in the twelve months ended December 31, 2012, respectively.

Non-Current Investments

At December 31, 2012, we held certain securities in a publicly traded entity and private companies, which are classified within other assets in our condensed consolidated balance sheet.  The investment in the publicly traded equity security, over which we do not exert significant influence, is classified as available-for-sale and reported at fair value on a recurring basis using Level 1 inputs.  Unrealized gains and losses are reported within the accumulated other comprehensive income component of shareholders' equity.  The investments in equity securities of private companies, over which we do not exert significant influence, are classified as Level 3 investments and are reported at cost or fair value, if an other-than-temporary loss has been determined.  Any loss due to impairment in value is recorded when such loss occurs.  We performed the evaluation of our Level 3 investments as of December 31, 2012, and concluded that there were no significant changes in their fair value.

The following tables set forth the change in the fair value of our Level 1, Level 2, and Level 3 investments for the periods indicated:

	Level 1			Level 2		Level 3		Total
Balance at December 31, 2010	$	55		$	-	$	313	$	368
Unrealized gain		51			-		-		51
Balance at December 31, 2011	$	106		$	-	$	313	$	419
Acquired investments		-			1,530		240		1,770
Unrealized gain (loss)		(50	)		486		-		436
Balance at December 31, 2012	$	56		$	2,016	$	553	$	2,625

In the second quarter of 2011, we received proceeds of $405 from the sale of an investment in equity securities of a private company, which had a carrying value of zero, and recorded a $405 gain in other income (expense) in our statement of operations.

Unrealized gains or losses on our available-for-sale (publicly traded) security, as well as foreign currency translation adjustments, are components of accumulated other comprehensive income as set forth in the following table:

	December 31,
	2012			2011			2010
Cumulative translation adjustment	$	1,965		$	1,961		$	1,936
Unrealized loss on available-for-sale security, net of tax		(398	)		(348	)		(392	)
Total accumulated other comprehensive income	$	1,567		$	1,613		$	1,544