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Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2012
Fair Value of Financial Instruments  
Fair Value of Financial Instruments

Note 2: Fair Value of Financial Instruments

 

The estimated fair values of financial instruments outstanding were as follows (in thousands):

 

 

 

March 31, 2012

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Cash and cash equivalents

 

$

9,420

 

$

—

 

$

—

 

$

9,420

 

Short-term investments:

 

 

 

 

 

 

 

 

 

U.S. government debt securities

 

$

12,415

 

$

2

 

$

(4

)

$

12,413

 

Corporate notes and commercial paper

 

10,237

 

6

 

(4

)

10,239

 

Certificates of deposit

 

716

 

—

 

—

 

716

 

Total short-term investments

 

$

23,368

 

$

8

 

$

(8

)

$

23,368

 

Long-term investments:

 

 

 

 

 

 

 

 

 

U.S. government debt securities

 

$

15,239

 

$

4

 

$

(13

)

$

15,230

 

Corporate notes

 

6,681

 

4

 

(7

)

6,678

 

Total long-term investments

 

$

21,920

 

$

8

 

$

(20

)

$

21,908

 

 

 

 

December 31, 2011

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Cash and cash equivalents

 

$

40,025

 

$

—

 

$

—

 

$

40,025

 

Short-term investments:

 

 

 

 

 

 

 

 

 

U.S. government debt securities

 

$

4,834

 

$

2

 

$

—

 

$

4,836

 

Corporate notes

 

4,578

 

1

 

(2

)

4,577

 

Total short-term investments

 

$

9,412

 

$

3

 

$

(2

)

$

9,413

 

Long-term investments:

 

 

 

 

 

 

 

 

 

U.S. government debt securities

 

$

5,721

 

$

1

 

$

(1

)

$

5,721

 

Corporate notes

 

2,816

 

2

 

(2

)

2,816

 

Total long-term investments

 

$

8,537

 

$

3

 

$

(3

)

$

8,537

 

 

As of March 31, 2012 and December 31, 2011, all of the available-for-sale securities with unrealized losses were in a loss position for less than 12 months.  Total fair value of available-for-sale securities with unrealized losses was $29.6 million at March 31, 2012.

 

Cost and fair value of investments based on two maturity groups were as follows (in thousands):

 

 

 

March 31, 2012

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Due within 1 year

 

$

23,368

 

$

8

 

$

(8

)

$

23,368

 

Due in 1-2 years

 

21,920

 

8

 

(20

)

21,908

 

Total

 

$

45,288

 

$

16

 

$

(28

)

$

45,276

 

 

 

 

December 31, 2011

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Due within 1 year

 

$

9,412

 

$

3

 

$

(2

)

$

9,413

 

Due in 1-2 years

 

8,537

 

3

 

(3

)

8,537

 

Total

 

$

17,949

 

$

6

 

$

(5

)

$

17,950

 

 

The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) as of March 31, 2012 and December 31, 2011 (in thousands):

 

 

 

March 31, 2012

 

 

 

Fair Value

 

Level 1

 

Level 2

 

Level 3

 

Money market funds

 

$

6,355

 

$

6,355

 

$

—

 

$

—

 

Certificates of deposit

 

965

 

—

 

965

 

—

 

Corporate notes and commercial paper

 

18,916

 

—

 

18,916

 

—

 

U.S. government debt securities

 

27,644

 

—

 

27,644

 

—

 

Total assets

 

$

53,880

 

$

6,355

 

$

47,525

 

$

—

 

 

 

 

December 31, 2011

 

 

 

Fair Value

 

Level 1

 

Level 2

 

Level 3

 

Money market funds

 

$

2,792

 

$

2,792

 

$

—

 

$

—

 

Corporate notes

 

7,393

 

—

 

7,393

 

—

 

U.S. government debt securities

 

10,557

 

—

 

10,557

 

—

 

Total assets

 

$

20,742

 

$

2,792

 

$

17,950

 

$

—

 

 

There were no transfers in or out of Level 1 and Level 2 securities during the three months ended March 31, 2012 and 2011.  There were no Level 3 financial assets as of March 31, 2012 and December 31, 2011.