XML 65 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2012
Fair Value of Financial Instruments  
Fair Value of Financial Instruments

Note 3: Fair Value of Financial Instruments

        The estimated fair values of financial instruments outstanding at December 31, 2012 and 2011 were as follows (in thousands):

 
   2012  
 
   Cost   Unrealized
Gains		   Unrealized
Losses		   Fair
Value		  

Cash and cash equivalents

   $ 2,529   $ —   $ —   $ 2,529  
                   

Short-term investments:

                          

U.S. government debt securities

   $ 15,852   $ 6   $ (2 ) $ 15,856  

Corporate notes

     14,471     8     (4 )   14,475  

Certificates of deposit

     467     —     —     467  
                   

Total short-term investments

   $ 30,790   $ 14   $ (6 ) $ 30,798  
                   

Long-term investments:

                          

U.S. government debt securities

   $ 6,330   $ 2   $ —   $ 6,332  

Corporate notes

     1,050     1     —     1,051  
                   

Total long-term investments

   $ 7,380   $ 3   $ —   $ 7,383  
                   


 

 
   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 December 31, 2012 and 2011, all of the available-for-sale securities with unrealized losses had been in a loss position for less than 12 months. Total fair value of available-for-sale securities with unrealized losses was $8.2 million at December 31, 2012.

        Cost and fair value of investments based on two maturity groups at December 31, 2011 and 2010 were as follows (in thousands):

 
   2012  
 
   Cost   Unrealized
Gains		   Unrealized
Losses		   Fair
Value		  

Due within 1 year

   $ 30,790   $ 14   $ (6 ) $ 30,798  

Due in 1-2 years

     7,380     3     —     7,383  
                   

Total

   $ 38,170   $ 17   $ (6 ) $ 38,181  
                   


 

 
   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 December 31, 2012 and 2011 (in thousands):

 
   2012  
 
   Fair Value   Level 1   Level 2   Level 3  

Money market funds

   $ 1,407   $ 1,407   $ —   $ —  

U.S. government debt securities

     22,289     —     22,289     —  

Corporate notes

     16,226     —     16,226     —  

Certificates of deposit

     467     —     467     —  
                   

Total assets

   $ 40,389   $ 1,407   $ 38,982   $ —  
                   


 

 
   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 years ended December 31, 2012 and 2011. There were no Level 3 financial assets as of December 31, 2012 and 2011.

        The following table provides a summary of changes in fair value of the Company's acquisition-related earn-out liabilities measured at fair value using significant unobservable inputs (Level 3) for the year ended December 31, 2011 (in thousands):

 
   Fair Value  

Balance at December 31, 2010

     $ 1,000  

Payment of earn-out

     (1,000 )
       

Balance at December 31, 2011

   $    —