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Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2015
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 (in thousands):

 

 

 

June 30, 2015

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Cash and cash equivalents

 

$
5,602

 

$

—

 

$

—

 

$
5,602

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

U.S. government-sponsored enterprise bonds

 

$
8,197

 

$

—

 

$
(1

)

$
8,196

 

Corporate notes

 
13,482

 
1

 
(4

)
13,479

 

Municipal bonds

 
3,101

 

—

 

—

 
3,101

 

Certificates of deposit

 
1,108

 

—

 

—

 
1,108

 

Commercial paper

 
500

 

—

 

—

 
500

 

 

 

 

 

 

 

 

 

 

 

Total short-term investments

 

$
26,388

 

$
1

 

$
(5

)

$
26,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

Corporate notes

 
3,291

 

—

 
(5

)
3,286

 

 

 

 

 

 

 

 

 

 

 

Total long-term investments

 

$
3,291

 

$

—

 

$
(5

)

$
3,286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Cash and cash equivalents

 

$
3,110

 

$

—

 

$

—

 

$
3,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

U.S. government-sponsored enterprise bonds

 

$
1,250

 

$

—

 

$

—

 

$
1,250

 

Municipal bonds

 
841

 

—

 

—

 
841

 

Corporate notes

 
15,921

 
2

 
(6

)
15,917

 

Certificates of deposit

 
2,430

 
1

 

—

 
2,431

 

 

 

 

 

 

 

 

 

 

 

Total short-term investments

 

$
20,442

 

$
3

 

$
(6

)

$
20,439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

U.S. government-sponsored enterprise bonds

 

$
1,000

 

$

—

 

$
(2

)

$
998

 

Corporate notes

 
1,252

 

—

 
(5

)
1,247

 

 

 

 

 

 

 

 

 

 

 

Total long-term investments

 

$
2,252

 

$

—

 

$
(7

)

$
2,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

June 30, 2015

 

 

 

Cost

 

Unrealized
Losses

 

Fair Value

 

Short-term investments:

 

 

 

 

 

 

 

U.S. government-sponsored enterprise bonds

 

$
3,617

 

$
(1

)

$
3,616

 

Corporate notes

 
8,180

 
(4

)
8,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total short-term investments

 

$
11,797

 

$
(5

)

$
11,792

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

Corporate notes

 
3,291

 
(5

)
3,286

 

 

 

 

 

 

 

 

 

Total long-term investments

 

$
3,291

 

$
(5

)

$
3,286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

 

Cost

 

Unrealized
Losses

 

Fair Value

 

Short-term investments:

 

 

 

 

 

 

 

Corporate notes

 

$
13,006

 

$
(6

)

$
13,000

 

 

 

 

 

 

 

 

 

 

 

 

Total short-term investments

 

$
13,006

 

$
(6

)

$
13,000

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

U.S. government-sponsored enterprise bonds

 

$
1,000

 

$
(2

)

$
998

 

Corporate notes

 
1,252

 
(5

)
1,247

 

 

 

 

 

 

 

 

 

Total long-term investments

 

$
2,252

 

$
(7

)

$
2,245

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 30, 2015 and December 31, 2014, 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 (in thousands):

 

 

 

June 30, 2015

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Due within 1 year

 

$
26,388

 

$
1

 

$
(5

)

$
26,384

 

Due in 1-2 years

 
3,291

 

—

 
(5

)
3,286

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
29,679

 

$
1

 

$
(10

)

$
29,670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

 

Cost

 

Unrealized
Gains

 

Unrealized
Losses

 

Fair
Value

 

Due within 1 year

 

$
20,442

 

$
3

 

$
(6

)

$
20,439

 

Due in 1-2 years

 
2,252

 

—

 
(7

)
2,245

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
22,694

 

$
3

 

$
(13

)

$
22,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) as of June 30, 2015 and December 31, 2014 (in thousands):

 

 

 

June 30, 2015

 

 

 

Fair Value

 

Level 1

 

Level 2

 

Level 3

 

Money market funds

 

$
4,043 

 

$
4,043 

 

$

—

 

$

—

 

U.S. government-sponsored enterprise bonds

 
8,196 

 

—

 
8,196 

 

—

 

Corporate notes

 
16,765 

 

—

 
16,765 

 

—

 

Municipal bonds

 
3,101 

 

—

 
3,101 

 

—

 

Certificates of deposit

 
1,223 

 

—

 
1,223 

 

—

 

Commercial paper

 
500 

 

—

 
500 

 

—

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$
33,828 

 

$
4,043 

 

$
29,785 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

 

Fair Value

 

Level 1

 

Level 2

 

Level 3

 

Money market funds

 

$
1,837 

 

$
1,837 

 

$

—

 

$

—

 

U.S. government-sponsored enterprise bonds

 
2,248 

 

—

 
2,248 

 

—

 

Municipal bonds

 
1,243 

 

—

 
1,243 

 

—

 

Corporate notes

 
17,164 

 

—

 
17,164 

 

—

 

Certificates of deposit

 
2,676 

 

—

 
2,676 

 

—

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$
25,168 

 

$
1,837 

 

$
23,331 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There were no transfers in or out of Level 1 and Level 2 securities during the three or six months ended June 30, 2015 and 2014.