Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments

v2.3.0.15
Financial Instruments
 9 Months Ended
Sep. 30, 2011
Financial Instruments [Abstract]  
Financial Instruments

3. Financial Instruments

The composition of financial instruments is as follows:

 

     September 30, 2011  
     Amortized
Cost 		    Gross Unrealized     Fair
Value 		 
       Gains      Losses    

Money market funds

    $ 21,030      $ —       $ —      $ 21,030   

Government debt securities

      8,282        —         —        8,282   

Corporate debt securities

      42,906        —         (36 )      42,870   
  

 

 

    

 

 

     

 

 

    

 

 

  
     72,218        —         (36 )      72,182   

Less amounts included in cash and cash equivalents

      (27,829 )      —         —        (27,829 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  
   $ 44,389      $ —       $ (36 )    $ 44,353   
  

 

 

    

 

 

     

 

 

    

 

 

  

 

     December 31, 2010  
     Amortized
Cost 		    Gross Unrealized     Fair
Value 		 
       Gains      Losses    

Money market funds

    $ 208      $ —       $ —      $ 208   

Government debt securities

      37,068        12         (3 )      37,077   

Corporate debt securities

      39,316        38         (5 )      39,349   
  

 

 

    

 

 

     

 

 

    

 

 

  
     76,592        50         (8 )      76,634   

Less amounts included in cash and cash equivalents

      (3,712 )      —         1        (3,711 ) 
  

 

 

    

 

 

     

 

 

    

 

 

  
   $ 72,880      $ 50       $ (7 )    $ 72,923   
  

 

 

    

 

 

     

 

 

    

 

 

  

The gross unrealized losses of $36 at September 30, 2011 represent temporary impairments on corporate debt securities related to multiple issuers, which have been in loss positions for less than 12 consecutive months, and were primarily caused by fluctuations in U.S. interest rates. We have determined that the gross unrealized losses on these investments at September 30, 2011 are temporary in nature. We evaluate securities for other-than-temporary impairment on a quarterly basis. Impairment is evaluated considering numerous factors, and their relative significance varies depending on the situation. Factors considered include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the issuer, and our intent and ability to hold the investment in order to allow for an anticipated recovery in fair value.

All of the Company's available-for-sale securities were due within one year as of September 30, 2011.

The fair values of the Company's financial instruments are the amounts that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants and are recorded using a hierarchal disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The levels are described below:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3: Unobservable inputs are used when little or no market data is available.

 

The following table presents a summary of the Company's financial instruments that are measured on a recurring basis:

 

            Fair Value Measurements at September 30, 2011  
     Balance at
September 30,
2011 		     Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) 		     Significant
Other
Observable
Inputs
(Level 2) 		     Significant
Unobservable
Inputs
(Level 3) 		 

Money market funds

    $ 21,030       $ 21,030       $ —       $ —   

Government debt securities

      8,282         —         8,282         —   

Corporate debt securities

      42,870         —         42,870         —   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 72,182       $ 21,030       $ 51,152       $ —   
  

 

 

     

 

 

     

 

 

     

 

 

  

There were no transfers between Level 1, Level 2 or Level 3 securities in the nine months ended September 30, 2011.