XML 83 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Cash, Cash Equivalents, and Investments | 12 Months Ended
--- | ---
Dec. 31, 2012
Cash, Cash Equivalents, and Investments | NOTE 3: Cash, Cash Equivalents, and Investments Cash, cash equivalents, and investments consisted of the following (in thousands):
|  | December 31, |
|  | 2012 |  |  | 2011 |
Cash |  | $ | 34,986 |  |  | $ | 36,404 |
Cash equivalents |  |  | 5,098 |  |  |  | — |
Money market instruments |  |  | 5,076 |  |  |  | 1,699 |
Cash and cash equivalents |  |  | 45,160 |  |  |  | 38,103 |
Corporate bonds |  |  | 46,001 |  |  |  | 55,570 |
Asset-backed securities |  |  | 17,666 |  |  |  | — |
Municipal bonds |  |  | 16,224 |  |  |  | 54,036 |
Agency bonds |  |  | 7,482 |  |  |  | 27,545 |
Treasury bills |  |  | 5,997 |  |  |  | 1,945 |
Covered bonds |  |  | 5,618 |  |  |  | 1,319 |
Sovereign bonds |  |  | 3,986 |  |  |  | 4,016 |
Corporate stock |  |  | 2,131 |  |  |  | — |
Short-term investments |  |  | 105,105 |  |  |  | 144,431 |
Corporate bonds |  |  | 100,072 |  |  |  | 59,902 |
Treasury bills |  |  | 36,276 |  |  |  | — |
Asset-backed securities |  |  | 34,710 |  |  |  | — |
Agency bonds |  |  | 29,441 |  |  |  | 12,335 |
Municipal bonds |  |  | 17,846 |  |  |  | 69,680 |
Sovereign bonds |  |  | 10,606 |  |  |  | 22,355 |
Covered bonds |  |  | 5,564 |  |  |  | 4,701 |
Limited partnership interest (accounted for using cost method) |  |  | 3,740 |  |  |  | 5,933 |
Long-term investments |  |  | 238,255 |  |  |  | 174,906 |
|  | $ | 388,520 |  |  | $ | 357,440 |
The Company’s cash balance included foreign bank balances totaling $23,614,000 and $29,452,000 as of December 31, 2012 and 2011, respectively. 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’s investment portfolio includes corporate bonds, asset-backed securities, treasury bills, agency bonds, municipal bonds, sovereign bonds, and covered bonds. Corporate bonds consist of debt securities issued by both domestic and foreign companies; 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; agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing; municipal bonds consist of debt securities issued by state and local government entities; sovereign bonds consist of direct debt issued by foreign governments; and covered bonds consist of debt securities backed by governments, mortgages, or public sector loans. During the fourth quarter of 2012, the Company purchased equity securities, representing stock in a publicly-traded U.S. company, for $2,136,000. As of December 31, 2012, this security had an aggregate fair value of $2,131,000, resulting in an unrealized loss of $5,000. The following tables summarize the Company’s available-for-sale investments as of December 31, 2012 (in thousands):
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Short-term: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 45,965 |  |  | $ | 68 |  |  | $ | (32 | ) |  | $ | 46,001 |
Asset-backed securities |  |  | 17,668 |  |  |  | 16 |  |  |  | (18 | ) |  |  | 17,666 |
Municipal bonds |  |  | 16,198 |  |  |  | 26 |  |  |  | — |  |  |  | 16,224 |
Agency bonds |  |  | 7,489 |  |  |  | — |  |  |  | (7 | ) |  |  | 7,482 |
Treasury bills |  |  | 5,996 |  |  |  | 1 |  |  |  | — |  |  |  | 5,997 |
Covered bonds |  |  | 5,637 |  |  |  | 2 |  |  |  | (21 | ) |  |  | 5,618 |
Sovereign bonds |  |  | 4,000 |  |  |  | — |  |  |  | (14 | ) |  |  | 3,986 |
Long-term: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  |  | 99,464 |  |  |  | 647 |  |  |  | (39 | ) |  |  | 100,072 |
Treasury bills |  |  | 36,277 |  |  |  | 8 |  |  |  | (9 | ) |  |  | 36,276 |
Asset-backed securities |  |  | 34,831 |  |  |  | 32 |  |  |  | (153 | ) |  |  | 34,710 |
Agency bonds |  |  | 29,411 |  |  |  | 54 |  |  |  | (24 | ) |  |  | 29,441 |
Municipal bonds |  |  | 17,726 |  |  |  | 121 |  |  |  | (1 | ) |  |  | 17,846 |
Sovereign bonds Asset-backed securities |  |  | 10,589 |  |  |  | 20 |  |  |  | (3 | ) |  |  | 10,606 |
Covered bonds |  |  | 5,555 |  |  |  | 9 |  |  |  | — |  |  |  | 5,564 |
|  | $ | 336,806 |  |  | $ | 1,004 |  |  | $ | (321 | ) |  | $ | 337,489 |
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 December 31, 2012 (in thousands):
|  | Unrealized Loss Position For Less than 12 Months . |
|  | Fair Value |  |  | Unrealized Losses |
Corporate bonds |  | $ | 41,958 |  |  | $ | (71 | )
Asset-backed securities |  |  | 33,513 |  |  |  | (171 | )
Agency bonds |  |  | 20,270 |  |  |  | (31 | )
Treasury bills |  |  | 15,977 |  |  |  | (9 | )
Sovereign bonds |  |  | 6,322 |  |  |  | (17 | )
Covered bonds |  |  | 4,358 |  |  |  | (21 | )
Municipal bonds |  |  | 1,484 |  |  |  | (1 | )
|  | $ | 123,882 |  |  | $ | (321 | )
As of December 31, 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. The Company recorded gross realized gains on the sale of debt securities totaling $1,990,000 in 2012 and $82,000 in 2011, and gross realized losses on the sale of debt securities totaling $295,000 in 2012 and $263,000 in 2011. Gains and losses were immaterial in 2010. In 2012, the realized gain was primarily due to the liquidation of the Company’s Euro-denominated investment portfolio. Prior to the sale of these securities, unrealized gains and losses for these debt securities, net of tax, were recorded in shareholders’ equity as a component of other comprehensive income (loss). The following table presents the effective maturity dates of the Company’s available-for-sale investments as of December 31, 2012 (in thousands):
|  | <1 Year |  |  | 1-2 Years |  |  | 2-3 Years |  |  | 3-4 Years |  |  | 4-5 Years |  |  | 5-8 Years |  |  | Total |
Corporate bonds |  | $ | 46,001 |  |  | $ | 14,188 |  |  | $ | 71,828 |  |  | $ | 10,180 |  |  | $ | 3,109 |  |  | $ | 767 |  |  | $ | 146,073 |
Asset-backed securities |  |  | 17,666 |  |  |  | 26,727 |  |  |  | 7,983 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 52,376 |
Treasury bills |  |  | 5,997 |  |  |  | 17,307 |  |  |  | 18,969 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 42,273 |
Agency bonds |  |  | 7,482 |  |  |  | 17,156 |  |  |  | 8,196 |  |  |  | 3,147 |  |  |  | 942 |  |  |  | — |  |  |  | 36,923 |
Municipal bonds |  |  | 16,224 |  |  |  | 12,902 |  |  |  | 2,442 |  |  |  | 1,084 |  |  |  | 1,418 |  |  |  | — |  |  |  | 34,070 |
Sovereign bonds |  |  | 3,986 |  |  |  | 757 |  |  |  | 3,240 |  |  |  | 6,609 |  |  |  | — |  |  |  |  |  |  |  | 14,592 |
Covered bonds |  |  | 5,618 |  |  |  | 1,424 |  |  |  | 2,346 |  |  |  | 1,794 |  |  |  | — |  |  |  | — |  |  |  | 11,182 |
|  | $ | 102,974 |  |  | $ | 90,461 |  |  | $ | 115,004 |  |  | $ | 22,814 |  |  | $ | 5,469 |  |  | $ | 767 |  |  | $ | 337,489 |
In 2000, the Company became a Limited Partner in Venrock Associates III, L.P. (Venrock), a venture capital fund. 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 December 31, 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. Contributions and distributions are at the discretion of Venrock’s management. No contributions were made during 2012. The Company received stock distributions totaling $2,193,000 during 2012, which were accounted for as a return of capital. These shares were sold, shortly after the distributions, for $2,128,000, resulting in realized losses of $65,000. As of December 31, 2012, the carrying value of this investment was $3,740,000 compared to an estimated fair value of $6,932,000.

X
- 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
Name: | us-gaap_InvestmentsInDebtAndEquityInstrumentsCashAndCashEquivalentsUnrealizedAndRealizedGainsLossesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration