Cash and Cash Equivalents and Short-Term Investments

12 Months Ended

Dec. 31, 2016

Cash and Cash Equivalents and Short-Term Investments

Cash and Cash Equivalents and Short-Term Investments

4.Cash and Cash Equivalents and Short-Term Investments

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Short-term investments include investments with maturities greater than three months, but not exceeding 12 months, or highly liquid investments with maturities greater than 12 months that the Company intends to liquidate during the next 12 months for working capital needs.

The following tables summarize the Company's short-term investments at December 31, 2016 and 2015:

			Estimated		Carrying
December 31, 2016	Cost		Fair Value		Value
		(inthousands)
Investments:
Short-term:
Available for sale common stock	$	275	$	334	$	334
Total available for sale		275		334		334
Total short term	$	275	$	334	$	334
December 31, 2015
Investments:
Short-term:
Available for sale common stock	$	199	$	72	$	72
Total available for sale		199		72		72
Total short term	$	199	$	72	$	72

Credit Risk

The Company invests substantially all of its excess cash with high credit-quality financial institutions or in U.S. government or debt securities.  Credit risk is the risk that a third party might fail to fulfill its performance obligations under the terms of a financial instrument. For cash and equivalents and investments, credit risk represents the carrying amount on the balance sheet. The Company mitigates credit risk for cash and equivalents and investments by placing its funds and investments with high credit-quality financial institutions, limiting the amount of exposure to each of the financial institutions, monitoring the financial condition of the financial institutions and investing only in government and corporate securities rated “investment grade” or better.  The Company invests with financial institutions that maintain a net worth of not less than $1 billion and are members in good standing of the Securities Investor Protection Corporation.