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Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 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):

 

 

 

June 30, 2013

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Cash and cash equivalents

 

$

8,172

 

$

—

 

$

—

 

$

8,172

 

Short-term investments:

 

 

 

 

 

 

 

 

 

U.S. government debt securities

 

$

17,097

 

$

6

 

$

(2

)

$

17,101

 

Corporate notes

 

10,440

 

2

 

(6

)

10,436

 

Certificates of deposit

 

4,280

 

1

 

(5

)

4,276

 

Total short-term investments

 

$

31,817

 

$

9

 

$

(13

)

$

31,813

 

Long-term investments:

 

 

 

 

 

 

 

 

 

U.S. government debt securities

 

$

9,016

 

$

5

 

$

(10

)

$

9,011

 

Corporate notes

 

8,310

 

—

 

(46

)

8,264

 

Certificates of deposit

 

1,680

 

1

 

(5

)

1,676

 

Total long-term investments

 

$

19,006

 

$

6

 

$

(61

)

$

18,951

 

 

 

 

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

 

 

The estimated fair values of available-for-sale securities with unrealized losses were as follows (in thousands):

 

 

 

June 30, 2013

 

 

 

Cost

 

Unrealized
Losses

 

Fair
Value

 

Short-term investments:

 

 

 

 

 

 

 

U.S. government debt securities

 

$

3,804

 

$

(2

)

$

3,802

 

Corporate notes

 

5,870

 

(6

)

5,864

 

Certificates of deposit

 

2,880

 

(5

)

2,875

 

Total short-term investments

 

$

12,554

 

$

(13

)

$

12,541

 

Long-term investments:

 

 

 

 

 

 

 

U.S. government debt securities

 

$

6,020

 

$

(10

)

$

6,010

 

Corporate notes

 

8,310

 

(46

)

8,264

 

Certificates of deposit

 

1,200

 

(5

)

1,195

 

Total long-term investments

 

$

15,530

 

$

(61

)

$

15,469

 

 

 

 

December 31, 2012

 

 

 

Cost

 

Unrealized
Losses

 

Fair
Value

 

Short-term investments:

 

 

 

 

 

 

 

U.S. government debt securities

 

$

2,546

 

$

(2

)

$

2,544

 

Corporate notes

 

5,668

 

(4

)

5,664

 

Total short-term investments

 

$

8,214

 

$

(6

)

$

8,208

 

 

As of June, 30, 2013 and December 31, 2012, all of the available-for-sale securities with unrealized losses had been in a loss position for less than 12 months.

 

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

 

 

 

June 30, 2013

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Due within 1 year

 

$

31,817

 

$

9

 

$

(13

)

$

31,813

 

Due in 1-2 years

 

19,006

 

6

 

(61

)

18,951

 

Total

 

$

50,823

 

$

15

 

$

(74

)

$

50,764

 

 

 

 

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 June 30, 2013 and December 31, 2012 (in thousands):

 

 

 

June 30, 2013

 

 

 

Fair Value

 

Level 1

 

Level 2

 

Level 3

 

Money market funds

 

$

4,126

 

$

4,126

 

$

—

 

$

—

 

Certificates of deposit

 

5,952

 

—

 

5,952

 

—

 

Corporate notes

 

18,699

 

—

 

18,699

 

—

 

U.S. government debt securities

 

29,574

 

—

 

29,574

 

—

 

Total assets

 

$

58,351

 

$

4,126

 

$

54,225

 

$

—

 

 

 

 

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 and six months ended June 30, 2013 and 2012. As of June 30, 2013 and December 31, 2012, the Company had no Level 3 financial assets or financial liabilities measured at fair value on a recurring basis.