Investments

Investments consist of certificates of deposit, mutual funds, and municipal bonds at December 31, 2012 and 2011. The Company classifies all investments as available-for-sale, as the sale of such investments may be required prior to maturity to implement management strategies. These investments are carried at fair value, with the unrealized gains and losses reported as a component of accumulated other comprehensive income in the consolidated statements of stockholders’ equity until realized. A decline in the market value of any investment below cost that is determined to be other-than-temporary will result in a revaluation of its carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the investment is established. No such impairment charges were recorded during the years ended December 31, 2012, 2011 or 2010.

Realized gains and losses from the sale of investments, if any, are determined on a specific identification basis. Realized gains and losses and declines in value judged to be other-than-temporary, if any, on available-for-sale investments are included as a component of interest and other income, net, in the consolidated statements of operations. Net realized gains and losses during the years ended December 31, 2012 and 2011 were immaterial. Premiums and discounts are amortized or accreted over the life of the related investment as an adjustment to yield using the straight-line method and are included in interest and other income, net, in the consolidated statements of operations. Interest on investments classified as available-for-sale are included in interest and other income, net, in the consolidated statements of operations.

The following is a summary of investments as of December 31, 2012 and 2011:



		As of December 31, 2012
	Contractual Maturity (in years)	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Mutual funds	Less than 1	$	7,500,063	$	83,868	$	—		$	7,583,931
Certificates of deposit	Less than 1	250,000		—		—			250,000
Municipal bonds	Less than 1	201,470		—		(1,400		)	200,070
Total investments		$	7,951,533	$	83,868	$	(1,400	)	$	8,034,001



		As of December 31, 2011
	Contractual Maturity (in years)	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Mutual funds	Less than 1	$	6,000,000	$	37,115	$	—		$	6,037,115
Certificates of deposit	Less than 1	5,771,000		—		(2,696		)	5,768,304
Municipal bonds	Less than 1	1,056,614		1,387		—			1,058,001
Total investments		$	12,827,614	$	38,502	$	(2,696	)	$	12,863,420