Item 7A. Quantitative and Qualitative Disclosures About Market Risk



Our exposure to market risk for changes in interest rates relates primarily to
our debt and investment portfolio. In our investment portfolio, we do not use
derivative financial instruments. We place our investments with high quality
issuers and, by policy, limit the amount of risk by investing primarily in money
market funds, United States Treasury obligations, high-quality corporate and
municipal obligations and certificates of deposit. Our investment policy also
limits the amount of our credit exposure to any one issue or issuer and seeks to
manage these assets to achieve our goals of preserving principal, maintaining
adequate liquidity at all times and maximizing returns subject to our investment
policy. Our investment portfolio at December 31, 2007 included minimal positions
in two asset-backed securities that were acquired during 2005. We have received
the return of the majority of the principal and do not expect to realize a loss
on these positions.


We held approximately $280.0 million in municipal auction rate securities at
December 31, 2007. Such investments consisted solely of municipal debt
securities; none of the auction rate securities in our portfolio are
mortgage-backed. Through February 26, 2008, approximately $145.5 million of the
municipal auction rate securities we held had experienced failed auctions. The
continued uncertainty in the credit markets, which caused our auction rate
securities to fail, prevented us from liquidating certain of our holdings of
auction rate securities. Based on our ability to access our cash and other
short-term investments, our expected operating cash flows, and our other sources
of cash, we do not anticipate the current lack of liquidity on these investments
to have a material impact on our financial condition or results of operation.


Our 1% convertible senior notes are subject to changes in market value. Under
certain conditions, the holders of our 1% convertible senior notes may require
us to redeem the notes on or after December 15, 2010. As of December 31, 2007,
the aggregate outstanding principal amount and the fair value of the 1%
convertible senior notes were $199.9 million and $227.5 million, respectively.


We have operations in Europe, Asia, Australia and India. As a result, we are
exposed to fluctuations in foreign exchange rates. Additionally, we may continue
to expand our operations globally and sell to customers in foreign locations,
which may increase our exposure to foreign exchange fluctuations. We do not have
any foreign hedge contracts.



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