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Cash and Investments in Marketable Securities
 12 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
Cash and Investments in Marketable Securities

Note 2 — Cash and Investments in Marketable Securities

Cash and investments in marketable securities, including cash equivalents and restricted cash, are as follows (in thousands):

 

     Estimated Fair Value at  
     December 31,
2013		      December 31,
2012		  

Cash and cash equivalents

    $ 39,067       $ 25,437   

Short-term investments

      197,959         251,757   

Restricted cash

      25,000         25,000   
  

 

 

     

 

 

  

Total cash and investments in marketable securities

    $ 262,026       $ 302,194   
  

 

 

     

 

 

  

We invest in liquid, high quality debt securities. Our investments in debt securities are subject to interest rate risk. To minimize the exposure due to an adverse shift in interest rates, we invest in securities with maturities of two years or less and maintain a weighted average maturity of one year or less. As of December 31, 2013 and 2012, all of our investments had contractual maturities of one year or less and were classified as short-term.

 

Gross unrealized gains and losses were not significant at either December 31, 2013 or 2012. During the years ended December 31, 2013, 2012 and 2011, we sold available-for-sale securities totaling $2.9 million, $5.4 million and $210.1 million respectively, and realized gains and losses were not significant in any of those periods.

Restricted cash of $25.0 million is required to be maintained in a separate account until July 1, 2015 under the terms of our 12% Senior Secured Notes due July 2017 (see Note 5).

Our portfolio of cash and investments in marketable securities includes (in thousands):

 

     Fair  Value
Hierarchy
Level		      Estimated Fair Value at  
        December 31,
2013		      December 31,
2012		  

Corporate notes and bonds

      2       $ 138,515       $ 241,158   

U.S. corporate commercial paper

      2         59,444         3,990   

Obligations of U.S. government agencies

      2         —          6,108   

Obligations of U.S. states and municipalities

      2         —          1,504   
     

 

 

     

 

 

  

Available-for-sale investments

         197,959         252,760   

Money market funds

      1         26,453         22,487   

Cash, including restricted cash

      N/A         37,614         26,947   
     

 

 

     

 

 

  

Total cash and investments in marketable securities

       $ 262,026       $ 302,194   
     

 

 

     

 

 

  

 

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

All of our investments are categorized as Level 1 or Level 2, as explained in the table above. We use a market approach to value our Level 2 investments. During the years ended December 31, 2013 and 2012, there were no transfers between Level 1 and Level 2 of the fair value hierarchy.

At December 31, 2013 and 2012, we had letter of credit arrangements in favor of a landlord and certain vendors totaling $2.4 million. These letters of credit are secured by investments of similar amounts.