Cash, Cash Equivalents, and Investments (Tables)

12 Months Ended

Dec. 31, 2015

Cash, Cash Equivalents and Investments

Our cash and cash equivalents consist of cash and instruments with original maturities of less than 90 days. Our investments consist of instruments with original maturities of more than 90 days. As of December 31, 2015 and, 2014, our cash, cash equivalents and investments are classified as follows (in thousands):


	December 31, 2015								December 31, 2014
			Gross		Gross						Gross		Gross
	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
	Cost		Gain		(Loss)		Value		Cost		Gain		(Loss)		Value
Classified as:
Cash	$	10,289	$	—	$	—	$	10,289	$	22,337	$	—	$	—	$	22,337
Cash equivalents:
Certificates of deposit 1		14,586		—		—		14,586		6,454		—		—		6,454
Money market fund		—		—		—		—		23		—		—		23
Total cash and cash equivalents		24,875		—		—		24,875		28,814		—		—		28,814
Investments (available for sale):
Certificates of deposit 2		9,795		1		(13)		9,783		10,195		1		(13)		10,183
Corporate bonds		8,776		—		(63)		8,713		9,214		1		(29)		9,186
Corporate equity securities		200		432		—		632		44		710		—		754
Total investments		18,771		433		(76)		19,128		19,453		712		(42)		20,123
Total cash, cash equivalents and investments	$	43,646	$	433	$	(76)	$	44,003	$	48,267	$	712	$	(42)	$	48,937
Contractual maturities on investments:
Due within 1 year	$	11,022					$	11,437	$	11,631					$	12,340
Due after 1 through 5 years		7,749						7,691		7,822						7,783
	$	18,771					$	19,128	$	19,453					$	20,123

Certificate of deposit with original maturities of less than 90 days.

Certificate of deposit with original maturities of more than 90 days.

Fair value and gross unrealized losses related to available-for-sale securities

A portion of our investments would generate a loss if we sold them on December 31, 2015. The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2015 (in thousands):


	In Loss Position				In Loss Position				Total In
	< 12 months				> 12 months				Loss Position
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 31, 2015	Value		(Losses)		Value		(Losses)		Value		(Losses)
Investments:
Certificates of deposit	$	4,509	$	(11)	$	3,543	$	(2)	$	8,052	$	(13)
Corporate bonds		6,866		(56)		1,847		(7)		8,713	$	(63)
Total in loss position	$	11,375	$	(67)	$	5,390	$	(9)	$	16,765	$	(76)

The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2014 (in thousands):


	In Loss Position				In Loss Position				Total In
	< 12 months				> 12 months				Loss Position
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
As of December 31, 2014	Value		(Loss)		Value		(Loss)		Value		(Loss)
Investments:
Certificates of deposit	$	4,492	$	(13)	$	—	$	—	$	4,492	$	(13)
Corporate bonds		3,770		(27)		4,309		(2)		8,079	$	(29)
Total in loss position	$	8,262	$	(40)	$	4,309	$	(2)	$	12,571	$	(42)

Summary of financial assets and liabilities measured at fair value on a recurring basis

The type of instrument valued based on quoted market prices in active markets include our money market funds, which are generally classified within Level 1 of the fair value hierarchy. Other than corporate equity securities which are based on quoted market prices and classified as Level 1, we classify our available-for-sale securities including certificates of deposit and corporate bonds as having Level 2 inputs. The valuation techniques used to measure the fair value of these financial instruments having Level 2 inputs were derived from bank statements, quoted market prices, broker or dealer statements or quotations, or alternative pricing sources with reasonable levels of price transparency. There were no changes in valuation techniques or related inputs in the year ended December 31, 2015. There have been no transfers between fair value measurement levels during the year ended December 31, 2015.

We place short-term foreign currency hedges that are intended to offset the potential cash exposure related to fluctuations in the exchange rate between the United States dollar and Japanese yen. We measure the fair value of these foreign currency hedges at each month end and quarter end using current exchange rates and in accordance with generally accepted accounting principles. At quarter end any foreign currency hedges not settled are netted in “accrued liabilities” on the consolidated balance sheet and classified as Level 3 assets and liabilities. As of December 31, 2015, the net change in fair value from the placement of the hedge to settlement at each month end during the quarter had a de minimis impact to the consolidated results.

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2015 (in thousands):


			Quoted Prices in				Significant
			Active Markets of		Significant Other		Unobservable
	Balance as of		Identical Assets		Observable Inputs		Inputs
	December 31, 2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents and investments:
Certificates of deposit	$	9,783	$	—	$	9,783	$	—
Corporate bonds		8,713		—		8,713		—
Corporate equity securities		632		632		—		—
Total	$	19,128	$	632	$	18,496	$	—
Liabilities:
Foreign currency hedge obligations	$	36	$	—	$	—	$	36

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis in accordance with ASC 820 as of December 31, 2014 (in thousands):


			Quoted Prices in				Significant
			Active Markets of		Significant Other		Unobservable
	Balance as of		Identical Assets		Observable Inputs		Inputs
	December 31, 2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents and investments:
Money market fund	$	23	$	23	$	—	$	—
Certificates of deposit		10,183		—		10,183		—
Corporate bonds		9,186		—		9,186		—
Corporate equity securities		754		754		—		—
Total	$	20,146	$	777	$	19,369	$	—
Liabilities	$	—	$	—	$	—	$	—