Cash and Cash Equivalents and Short-term Investments

We consider highly liquid investments purchased within three months of their date of maturity to be cash equivalents. The fair value of these investments approximates their carrying value. In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. All short-term investments are classified as available-for-sale. Changes in the market value of these securities are reflected as unrealized gains or losses on investments, net of tax, within other comprehensive income (loss) and accumulated other comprehensive loss. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in our statement of operations, and a new cost basis in the investment is established.

Cash and cash equivalents were $85.2 million and $95.1 million at December 31, 2012 and 2011, respectively, and consisted mainly of bank deposits and money market funds. We had deposits in a Wells Fargo Bank money market fund, which represents 39% and 16% of cash and cash equivalents at December 31, 2012 and 2011, respectively.

Short-term investments totaled $0.2 million at December 31, 2012 and 2011. Our short-term investments consisted of available-for-sale equity securities at December 31 (in thousands):



	December 31,
Equity Security	2012			2011
Cost	$	327		$	405
Gross unrealized loss	(130		)	(235		)
Fair value	$	197		$	170