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Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2013
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, 2013

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Cash and cash equivalents

 

$

 5,279

 

$

 —

 

$

 —

 

$

 5,279

 

Short-term investments:

 

 

 

 

 

 

 

 

 

U.S. government debt securities

 

$

 10,888

 

$

 6

 

$

 —

 

$

 10,894

 

Corporate notes

 

11,190

 

16

 

(1

)

11,205

 

Certificates of deposit

 

3,080

 

2

 

(1

)

3,081

 

Total short-term investments

 

$

 25,158

 

$

 24

 

$

 (2

)

$

 25,180

 

Long-term investments:

 

 

 

 

 

 

 

 

 

U.S. government debt securities

 

$

 4,507

 

$

 —

 

$

 (2

)

$

 4,505

 

Corporate notes

 

2,109

 

—

 

(6

)

2,103

 

Certificates of deposit

 

240

 

1

 

—

 

241

 

Total long-term investments

 

$

 6,856

 

$

 1

 

$

 (8

)

$

 6,849

 

 

 

 

December 31, 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

 

 

As of March 31, 2013 and December 31, 2012, 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 $10.9 million at March 31, 2013.

 

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

 

 

 

March 31, 2013

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Due within 1 year

 

$

 25,158

 

$

 24

 

$

 (2

)

$

 25,180

 

Due in 1-2 years

 

6,856

 

1

 

(8

)

6,849

 

Total

 

$

 32,014

 

$

 25

 

$

 (10

)

$

 32,029

 

 

 

 

December 31, 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

 

 

The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) as of March 31, 2013 and December 31, 2012 (in thousands):

 

 

 

March 31, 2013

 

 

 

Fair Value

 

Level 1

 

Level 2

 

Level 3

 

Money market funds

 

$

1,159

 

$

1,159

 

$

—

 

$

—

 

Certificates of deposit

 

3,802

 

—

 

3,802

 

—

 

Corporate notes

 

13,308

 

—

 

13,308

 

—

 

U.S. government debt securities

 

17,630

 

—

 

17,630

 

—

 

Total assets

 

$

35,899

 

$

1,159

 

$

34,740

 

$

—

 

 

 

 

December 31, 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

 

$

—

 

 

There were no transfers in or out of Level 1 and Level 2 securities during the three months ended March 31, 2013 and 2012.  As of March 31, 2013 and December 31, 2012, the Company had no Level 3 financial assets or financial liabilities measured at fair value on a recurring basis.