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Table of Contents
As of December 31, 2011 and 2010, the fair value hierarchy for our financial assets and financial liabilities that are carried at fair value was
as follows (in thousands):
Our available-for-sale marketable securities classified by security type as of December 31, 2011 consisted of the following (in thousands):
Our marketable securities with gross unrealized losses have been in a continuous unrealized loss position for less than twelve months. We
have determined that the gross unrealized losses on our marketable securities as of December 31, 2011 were temporary in nature.
The changes in the fair value of our common stock and convertible preferred stock warrant liability were as follows (in thousands):
The estimated fair value of our long-
term debt based on a market approach was approximately $220.3 million (par value of $276.3 million)
and $53.4 million (par value of $71.8 million) as of December 31, 2011 and 2010, respectively. When determining the estimated fair value of
our long-term debt, we used a commonly accepted valuation methodology and market-based risk measurements, such as credit risk.
We operate in various foreign countries, which exposes us to foreign currency exchange risk between the U.S. dollar and various foreign
currencies, the most significant of which have been the British pound and Japanese yen. In order to manage this risk, we enter into foreign
currency forward contracts. These contracts are not designated as hedges, and as a result, changes in their fair value are recorded in interest and
other income, net, on our consolidated statements of operations. During the years ended December 31, 2011, 2010 and 2009, net gains and losses
related to these instruments were not significant. We had notional amounts on foreign currency exchange contracts outstanding of $8.8 million
and $7.2 million as of December 31, 2011 and 2010, respectively.
118
December 31, 2011
December 31, 2010
Fair
Value
Level I
Level II
Level III
Fair
Value
Level I
Level II
Level III
Money market funds
$
196,701
$
196,701
$
—
$
—
$
145,708
$
145,708
$
—
$
—
Corporate note
10,062
—
10,062
—
—
—
—
—
Commercial paper
14,999
—
14,999
—
—
—
—
—
Total
$
221,762
$
196,701
$
25,061
$
—
$
145,708
$
145,708
$
—
$
—
Common stock warrant liability
$
8,838
$
—
$
—
$
8,838
$
6,088
$
—
$
—
$
6,088
Foreign currency forward contracts
109
—
109
—
125
—
125
—
Total
$
8,947
$
—
$
109
$
8,838
$
6,213
$
—
$
125
$
6,088
December 31, 2011
Amortized Cost
Gross Unrealized
Gains
Gross Unrealized
Losses
Fair Value
Corporate note
$
10,065
$
—
$
(
3
)
$
10,062
Commercial paper
14,999
—
—
$
14,999
Total
$
25,064
$
—
$
(
3
)
$
25,061
Year Ended December 31,
2011
2010
Fair value, beginning of period
$
6,088
$
1,734
Issuances
—
6,294
Settlements and extinguishments
—
(
6,962
)
Change in fair value
2,750
5,022
Fair value, end of period
$
8,838
$
6,088