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Table of Contents
NOTE 14: CASH, CASH EQUIVALENTS AND SHORT TERM INVESTMENTS
Cash and cash equivalents by security type at December 31, 2011 were as follows (in thousands):
Cash, cash equivalents and short term investments by security type at December 31, 2010 were as follows (in thousands):
NOTE 15: FAIR VALUE MEASUREMENTS
The following tables provide a summary of the fair value measurements of our assets as of December 31, 2011 (in thousands):
We did not have any Level 3 assets for the year ended December 31, 2011.
As discussed in “Note 3— Acquisitions ”, we have a redeemable noncontrolling interest related to a 2008 acquisition, which fair value
determinations are based on various internal valuation techniques, including market comparables and discounted cash flow projections and is
considered a Level 3 liability at December 31, 2011. Certain assumptions are used in determining fair value, including revenue growth rates and
discount rates. Changes in these assumptions would impact the fair value. Changes in the fair value of the shares for which the minority holders
may sell to us are recorded to the redeemable noncontrolling interest with charges or credits to additional paid in capital. Our redeemable
noncontrolling interest is not material for all periods presented and is included in other long-term liabilities at December 31, 2010 and in other
current liabilities at December 31, 2011, as we expect the noncontrolling interest to be redeemed in 2012.
We currently invest excess cash balances primarily in cash deposits and money market investment accounts at major banks. The carrying
amount of cash deposits, accounts receivable, related party receivables, accounts payable, and accrued and other current liabilities, as reported on
the consolidated and combined balance sheet as of December 31, 2011, approximate their fair value because of the short maturity of those
instruments. The carrying value of the borrowings outstanding on our new Credit Agreement bear interest at a variable rate and are considered to
approximate fair value.
102
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Cash
$
114,532
$
—
$
—
$
114,532
Money market funds
-
cash equivalent
69,000
—
—
69,000
Total
$
183,532
$
—
$
—
$
183,532
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Cash
$
53,133
$
—
$
—
$
53,133
Money market funds
—
cash equivalent
40,000
—
—
40,000
Time deposits with financial institutions—short term
investment
20,297
—
—
20,297
Total
$
113,430
$
—
$
—
$
113,430
Level 1
Level 2
Level 3
Assets at
Fair
Value
Money market funds
—
cash equivalent (1)
$
69,000
$
—
$
—
$
69,000
Total
$
69,000
$
—
$
—
$
69,000
(1)
Cash equivalents include money market investment accounts that hold excess liquid funds. The fair value measurement of these assets is
based on quoted market prices in active markets and, therefore, is recorded at fair value on a recurring basis and classified as Level 1
assets.