Quarterly report pursuant to Section 13 or 15(d)

Cash Equivalents and Investments

v2.4.0.8
Cash Equivalents and Investments
9 Months Ended
Sep. 30, 2013
Cash Equivalents and Investments [Abstract]  
Cash Equivalents and Investments
8. Cash Equivalents and Investments
 
Our cash equivalents and investments consist of money market, asset-backed securities, US government obligations, and public corporate debt securities at September 30, 2013 and December 31, 2012. We consider all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. All of our investments are classified as available for sale and are recorded at market value using the specific identification method. Realized gains and losses are reflected in other income, net using the specific identification method.  There was no material realized gain or loss with respect to our investments during the three and nine months ended September 30, 2013. Unrealized gains and losses are included as a separate component of stockholders' equity.  We do not intend to sell investments with an amortized cost basis exceeding fair value and it is not likely that we will be required to sell the investments before recovery of their amortized cost bases. We have 6 securities with a total fair value of $1.3 million that have unrealized losses of approximately $6,000 as of September 30, 2013.
 
On at least a quarterly basis, we evaluate our available for sale securities, and record an “other-than-temporary impairment” (“OTTI”) if we believe their fair value is less than historical cost and it is probable that we will not collect all contractual cash flows. We did not record any OTTI during the three and nine months ended September 30, 2013, after evaluating a number of factors including, but not limited to:
 
·
How much fair value has declined below amortized cost
·
The financial condition of the issuers
·
Significant rating agency changes on the issuer
·
Our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value
 
The following tables summarize our cash, cash equivalents and investments as of September 30, 2013 and December 31, 2012 (in thousands):
 
 
 
September 30, 2013
 
 
 
Cost or
   
Gross
   
Gross
   
 
 
 
Amortized
   
Unrealized
   
Unrealized
   
Estimated
 
 
 
Cost
   
Gains
   
Losses
   
Fair Value
 
Cash and cash equivalents:
 
   
   
   
 
Cash
 
$
39,447
     
     
   
$
39,447
 
Money market
   
25,736
     
     
     
25,736
 
Cash and cash equivalents
   
65,183
     
     
     
65,183
 
Short-term investments:
                               
Corporate bonds and asset backed securities
   
8,280
     
76
     
(1
)
   
8,355
 
Short-term investments
   
8,280
     
76
     
(1
)
   
8,355
 
Long-term investments:
                               
Corporate bonds and asset backed securities
   
9,922
     
89
     
(5
)
   
10,006
 
Long-term investments
   
9,922
     
89
     
(5
)
   
10,006
 
Cash, cash equivalents and investments
 
$
83,385
     
165
     
(6
)
 
$
83,544
 

 
 
December 31, 2012
 
 
 
Cost or
   
Gross
   
Gross
   
 
 
 
Amortized
   
Unrealized
   
Unrealized
   
Estimated
 
 
 
Cost
   
Gains
   
Losses
   
Fair Value
 
Cash and cash equivalents:
 
   
   
   
 
Cash
 
$
7,043
     
     
   
$
7,043
 
Money market
   
22,533
     
     
     
22,533
 
Cash and cash equivalents
   
29,576
     
     
     
29,576
 
Short-term investments:
                               
Corporate notes and bonds
   
5,248
     
66
     
     
5,314
 
U.S. government and agency securities
   
1,005
     
4
     
     
1,009
 
Short-term investments
   
6,253
     
70
     
     
6,323
 
Long-term investments:
                               
   Corporate bonds and asset backed securities
   
10,539
     
190
     
(9
)
   
10,720
 
Long-term investments
   
10,539
     
190
     
(9
)
   
10,720
 
Cash, cash equivalents and investments
 
$
46,368
     
260
     
(9
)
 
$
46,619
 
 
The following table summarizes contractual maturities of our marketable fixed-income securities as of September 30, 2013 (in thousands):
 
 
Amortized
Cost
   
Estimated
Fair Value
 
Due within one year  
 
$
8,280
   
$
8,355
 
Due after one year through five years  
   
9,922
     
10,006
 
Due after five years through ten years  
   
     
 
Total  
 
$
18,202
   
$
18,361