Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments

 v2.3.0.11
Financial Instruments
 6 Months Ended
Jun. 30, 2011
Financial Instruments  
Financial Instruments

3. Financial Instruments

The composition of financial instruments is as follows:

 

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

Money market funds

    $ 1,722      $ —       $ —      $ 1,722   

Government debt securities

      17,660        18         —        17,678   

Corporate debt securities

      52,604        10         (13 )      52,601   
                                   
       71,986        28         (13 )      72,001   

Less amounts included in cash and cash equivalents

      (2,828 )      —         1       (2,827 ) 
                                   
     $ 69,158      $ 28       $ (12 )    $ 69,174   
                                   

 

                                 
     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 $13 and $8 at June 30, 2011 and December 31, 2010, respectively, represent temporary impairments on government and 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.

The fair values of the Company's financial instruments 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 June 30, 2011  
     Balance at
June  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

    $ 1,722       $ 1,722       $ —       $ —   

Government debt securities

      17,678         —         17,678         —   

Corporate debt securities

      52,601         —         52,601         —   
                                     
     $ 72,001       $ 1,722       $ 70,279       $ —