CASH AND EQUIVALENTS AND MARKETABLE SECURITIES

The Company considers all highly liquid, short-term debt instruments with original maturities of three months or less to be cash equivalents.

Marketable debt securities consist primarily of certificates of deposit, medium-term corporate debt, and United States government and agency backed securities. The Company classifies these marketable debt securities as available-for-sale in “Marketable Debt Securities”. The Company records the amortization of premium and accretion of discount on marketable debt securities in the results of operations.

The Company uses the specific identification method as a basis for determining cost and calculating realized gains and losses with respect to marketable debt securities. The gross gains and losses realized related to sales and maturities of marketable debt securities were not material during the nine months ended September 28, 2013 and the year ended December 29, 2012.

Investments in available-for-sale marketable debt securities are as follows at September 28, 2013 and December 29, 2012:



	Amortized Cost				Unrealized Gains				Unrealized Losses						Fair Value
	2013		2012		2013		2012		2013			2012			2013		2012
U.S. government and agency backed securities	$	71,496,967	$	38,074,136	$	—	$	508,820	$	(519,660	)	$	—		$	70,977,307	$	38,582,956
Corporate debt and certificates of deposit	26,594,161		27,031,866		—		—		(114,058		)	(264,860		)	26,480,103		26,767,006
Total	$	98,091,128	$	65,106,002	$	—	$	508,820	$	(633,718	)	$	(264,860	)	$	97,457,410	$	65,349,962

The contractual maturity of the Company’s marketable debt securities is as follows at September 28, 2013:



	Less than One year		One to Five years		Greater than Five years		Total
U.S. government and agency backed securities	$	11,706,953	$	47,301,186	$	11,969,168	$	70,977,307
Corporate debt and certificates of deposit	21,600,623		3,886,980		992,500		26,480,103
Total	$	33,307,576	$	51,188,166	$	12,961,668	$	97,457,410

The Company conducts a review of its marketable debt securities on a quarterly basis for the presence of other-than-temporary impairment (OTTI). The Company assesses whether OTTI is present when the fair value of a debt security is less than its amortized cost basis at the balance sheet date. Under these circumstances OTTI is considered to have occurred (1) if the Company intends to sell the security before recovery of its amortized cost basis; (2) if it is “more likely than not” the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis.

The Company further estimates the amount of OTTI resulting from a decline in the credit worthiness of the issuer (credit-related OTTI) and the amount of non credit-related OTTI. Noncredit-related OTTI can be caused by such factors as market illiquidity. Credit-related OTTI is recognized in earnings while noncredit-related OTTI on securities not expected to be sold is recognized in other comprehensive loss. The Company did not record an OTTI for the three and nine months ended September 28, 2013 and September 29, 2012.