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Cash, Cash Equivalents, and Investments | 9 Months Ended
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Sep. 30, 2012
Cash, Cash Equivalents, and Investments | NOTE 3: Cash, Cash Equivalents, and Investments Cash, cash equivalents, and investments consisted of the following (in thousands):
|  | September 30, 2012 |  |  | December 31, 2011 |
Cash |  | $ | 43,260 |  |  | $ | 36,404 |
Cash equivalents |  |  | 6,799 |  |  |  | — |
Money market instruments |  |  | 4,099 |  |  |  | 1,699 |
Cash and cash equivalents |  |  | 54,158 |  |  |  | 38,103 |
Corporate bonds |  |  | 45,025 |  |  |  | 55,570 |
Municipal bonds |  |  | 25,257 |  |  |  | 54,036 |
Asset-backed securities |  |  | 12,184 |  |  |  | — |
Treasury bills |  |  | 10,043 |  |  |  | 1,945 |
Covered bonds |  |  | 4,664 |  |  |  | 1,319 |
Agency bonds |  |  | 2,998 |  |  |  | 27,545 |
Sovereign bonds |  |  | 1,699 |  |  |  | 4,016 |
Short-term investments |  |  | 101,870 |  |  |  | 144,431 |
Corporate bonds |  |  | 91,839 |  |  |  | 59,902 |
Municipal bonds |  |  | 58,586 |  |  |  | 69,680 |
Treasury bills |  |  | 35,989 |  |  |  | — |
Asset-backed securities |  |  | 35,018 |  |  |  | — |
Agency bonds |  |  | 24,025 |  |  |  | 12,335 |
Sovereign bonds |  |  | 6,134 |  |  |  | 22,355 |
Covered bonds |  |  | 2,757 |  |  |  | 4,701 |
Limited partnership interest (accounted for using cost method) |  |  | 5,562 |  |  |  | 5,933 |
Long-term investments |  |  | 259,910 |  |  |  | 174,906 |
|  | $ | 415,938 |  |  | $ | 357,440 |
The Company’s investment portfolio includes corporate bonds, municipal bonds, asset-backed securities, treasury bills, covered bonds, agency bonds, and sovereign bonds. Corporate bonds consist of debt securities issued by both domestic and foreign companies; municipal bonds consist of debt securities issued by state and local government entities; asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; treasury bills consist of debt securities issued by both the U.S. and foreign governments; covered bonds consist of debt securities backed by governments, mortgages, or public sector loans; agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing; and sovereign bonds consist of direct debt issued by foreign governments. The following tables summarize the Company’s available-for-sale investments as of September 30, 2012 (in thousands):
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Short-term: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 44,935 |  |  | $ | 94 |  |  | $ | (4 | ) |  | $ | 45,025 |
Municipal bonds |  |  | 25,241 |  |  |  | 17 |  |  |  | (1 | ) |  |  | 25,257 |
Asset-backed securities |  |  | 12,192 |  |  |  | 5 |  |  |  | (13 | ) |  |  | 12,184 |
Treasury bills |  |  | 10,044 |  |  |  | — |  |  |  | (1 | ) |  |  | 10,043 |
Covered bonds |  |  | 4,679 |  |  |  | — |  |  |  | (15 | ) |  |  | 4,664 |
Agency bonds |  |  | 2,999 |  |  |  | — |  |  |  | (1 | ) |  |  | 2,998 |
Sovereign bonds |  |  | 1,699 |  |  |  | — |  |  |  | — |  |  |  | 1,699 |
Long-term: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  |  | 91,131 |  |  |  | 723 |  |  |  | (15 | ) |  |  | 91,839 |
Municipal bonds |  |  | 58,246 |  |  |  | 341 |  |  |  | (1 | ) |  |  | 58,586 |
Treasury bills |  |  | 35,993 |  |  |  | 2 |  |  |  | (6 | ) |  |  | 35,989 |
Asset-backed securities |  |  | 34,998 |  |  |  | 48 |  |  |  | (28 | ) |  |  | 35,018 |
Agency bonds |  |  | 24,001 |  |  |  | 43 |  |  |  | (19 | ) |  |  | 24,025 |
Sovereign bonds |  |  | 6,118 |  |  |  | 18 |  |  |  | (2 | ) |  |  | 6,134 |
Covered bonds |  |  | 2,753 |  |  |  | 4 |  |  |  | — |  |  |  | 2,757 |
|  | $ | 355,029 |  |  | $ | 1,295 |  |  | $ | (106 | ) |  | $ | 356,218 |
The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of September 30, 2012 (in thousands):
|  | Unrealized Loss Position For |
|  | Less than 12 Months |
|  | Fair Value |  |  | Unrealized Losses |
Treasury bills |  | $ | 38,529 |  |  | $ | (7 | )
Asset-backed securities |  |  | 30,573 |  |  |  | (41 | )
Corporate bonds |  |  | 17,333 |  |  |  | (19 | )
Agency bonds |  |  | 12,558 |  |  |  | (20 | )
Municipal bonds |  |  | 4,828 |  |  |  | (2 | )
Covered bonds |  |  | 4,664 |  |  |  | (15 | )
Sovereign bonds |  |  | 2,464 |  |  |  | (2 | )
|  | $ | 110,949 |  |  | $ | (106 | )
As of September 30, 2012, the Company did not recognize an other-than-temporary impairment of these investments. In its evaluation, management considered the type of security, the credit rating of the security, the length of time the security has been in a loss position, the size of the loss position, our intent and ability to hold the security to expected recovery of value, and other meaningful information. The Company does not intend to sell, and is unlikely to be required to sell, any of these available-for-sale investments before its effective maturity or market price recovery. In the third quarter of 2012, management changed the domicile of the subsidiary that held the Company’s Euro-denominated investment portfolio and also changed that subsidiary’s functional currency from the Euro to the U.S. Dollar. As a result of these changes, the investment portfolio was liquidated, primarily during the second quarter of 2012, and those funds were converted to U.S. Dollars. These funds were then used to purchase U.S. Dollar-denominated investments during the third quarter of 2012 once the change of domicile was complete. The Company recorded gross realized gains and gross realized losses on the sale of investments totaling $342,000 and $1,000, respectively, during the three-month period ended September 30, 2012 and $47,000 and $28,000, respectively, during the three-month period ended October 2, 2011. The Company recorded gross realized gains and gross realized losses of $1,669,000 and $239,000, respectively, during the nine-month period ending September 30, 2012, and $78,000 and $45,000, respectively, during the nine-month period ended October 2, 2011. The following table presents the effective maturity dates of the Company’s available-for-sale investments as of September 30, 2012 (in thousands):
|  | <1 Year |  |  | 1-2 Years |  |  | 2-3 Years |  |  | 3-4 Years |  |  | 4-5 Years |  |  | 5-7 Years |  |  | Total |
Corporate bonds |  | $ | 45,025 |  |  | $ | 19,494 |  |  | $ | 61,676 |  |  | $ | 8,456 |  |  | $ | 2,213 |  |  | $ | — |  |  | $ | 136,864 |
Municipal bonds |  |  | 25,257 |  |  |  | 31,111 |  |  |  | 10,209 |  |  |  | 7,530 |  |  |  | 4,519 |  |  |  | 5,217 |  |  |  | 83,843 |
Asset-backed securities |  |  | 12,184 |  |  |  | 17,388 |  |  |  | 12,595 |  |  |  | 4,530 |  |  |  | — |  |  |  | 505 |  |  |  | 47,202 |
Treasury bills |  |  | 10,043 |  |  |  | 20,009 |  |  |  | 15,980 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 46,032 |
Covered bonds |  |  | 4,664 |  |  |  | 961 |  |  |  | — |  |  |  | 1,796 |  |  |  | — |  |  |  | — |  |  |  | 7,421 |
Agency bonds |  |  | 2,998 |  |  |  | 8,647 |  |  |  | 7,935 |  |  |  | 5,425 |  |  |  | 1,011 |  |  |  | 1,007 |  |  |  | 27,023 |
Sovereign bonds |  |  | 1,699 |  |  |  | 765 |  |  |  | 3,254 |  |  |  | 2,115 |  |  |  | — |  |  |  | — |  |  |  | 7,833 |
|  | $ | 101,870 |  |  | $ | 98,375 |  |  | $ | 111,649 |  |  | $ | 29,852 |  |  | $ | 7,743 |  |  | $ | 6,729 |  |  | $ | 356,218 |
In June 2000, the Company became a Limited Partner in Venrock Associates III, L.P. (Venrock), a venture capital fund. A Director of the Company was a General Partner of Venrock Associates through December 31, 2009. The Company has committed to a total investment in the limited partnership of up to $20,500,000, with an expiration date of December 31, 2013. As of September 30, 2012, the Company contributed $19,886,000 to the partnership. The remaining commitment of $614,000 can be called by Venrock at any time before December 31, 2013. Distributions and contributions are at the discretion of Venrock’s management. No contributions were made during the nine-month period ended September 30, 2012. During the second quarter of 2012, the Company received a stock distribution valued at $371,000 resulting from a portfolio company’s initial public offering. During the third quarter of 2012, the Company recorded a realized loss on this stock distribution of $19,000 when the shares were sold for $352,000.

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- Definition The entire disclosure for cash, cash equivalents, investments in debt and equity instruments (including cost and equity investees and related income statement amounts), equity and cost method investments, investments in joint ventures and any other investment. + References No definition available. + Details
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