Investments

Marketable Securities

All of the Company's marketable securities as of September 30, 2013, and December 31, 2012, were classified as "available-for-sale" securities, with changes in fair value recognized in stockholders' equity as "other comprehensive income (loss)". Classification of marketable securities as a current asset is based on the intended holding period and realizability of the investment.

Marketable securities at September 30, 2013, consisted of the following:



	Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
Short-term deposits	$	106,903		$	—	$	—		$	106,903
Mutual funds	12,506			3,623		—			16,129
United States government securities	50,383			29		—			50,412
Corporate securities	69,974			8,220		(4,224		)	73,970
Corporate obligations	23,573			855		(42		)	24,386
Commercial paper	6,297			1		—			6,298
Total available-for-sale securities	269,636			12,728		(4,266		)	278,098
Amounts classified as cash equivalents	(108,603		)	—		—			(108,603		)
Amounts classified as marketable securities	$	161,033		$	12,728	$	(4,266	)	$	169,495

Marketable securities at December 31, 2012, consisted of the following:



	Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
Short-term deposits	$	48,596		$	—	$	—		$	48,596
Mutual funds	10,368			1,452		—			11,820
United States government securities	99,299			178		—			99,477
Corporate securities	20,842			1,255		(1,980		)	20,117
Corporate obligations	48,708			283		(277		)	48,714
Commercial paper	22,275			16		—			22,291
Total available-for-sale securities	250,088			3,184		(2,257		)	251,015
Amounts classified as cash equivalents	(51,887		)	—		—			(51,887		)
Amounts classified as marketable securities	$	198,201		$	3,184	$	(2,257	)	$	199,128

Proceeds from sales of marketable securities were $65.5 million and $568.6 million for the nine months ended September 30, 2013 and 2012, respectively, and $20.4 million and $77.7 million for the three months ended September 30, 2013 and 2012, respectively. The company determines gains and losses from sales of marketable securities based on specific identification of the securities sold. Gross realized gains and losses from sales of marketable securities, all of which are reported as a component of "Other income (expense), net" in the consolidated statements of operations for the three months and nine months ended September 30, 2013 and 2012, were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(in thousands)
Gross realized gains	$	1,914		$	42		$	5,779		$	138
Gross realized losses	(51		)	(35		)	(3,945		)	(40		)
Realized gains (losses) - net	$	1,863		$	7		$	1,834		$	98

The fair value of the Company’s marketable securities with unrealized losses at September 30, 2013, and the duration of time that such losses had been unrealized, were as follows:



	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(in thousands)
Corporate securities	$	22,725	$	(3,968	)	$	176	$	(256	)	$	22,901	$	(4,224	)
Corporate obligations	940		(42		)	—		—			940		(42		)
Total	$	23,665	$	(4,010	)	$	176	$	(256	)	$	23,841	$	(4,266	)

The fair value of the Company’s marketable securities with unrealized losses at December 31, 2012, all of which had been unrealized for a period of less than twelve months, were as follows:



	Fair Value		Gross Unrealized Losses
	(in thousands)
Corporate securities	$	6,389	$	(1,980	)
Corporate obligations	14,252		(277		)
Total	$	20,641	$	(2,257	)

Gross unrealized losses primarily related to losses on corporate securities. The Company has evaluated such securities, which primarily consist of investments in publicly-traded entities, as of September 30, 2013, and has determined that there was no indication of other-than-temporary impairments. This determination was based on several factors, including the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the entity, and the Company's intent and ability to hold the corporate securities for a period of time sufficient to allow for any anticipated recovery in market value.

The amortized cost and estimated fair value of available-for-sale debt securities at September 30, 2013, by contractual maturity, were as follows:



	Cost		Estimated Fair Value
	(in thousands)
Debt securities:
Mature in one year or less	$	44,134	$	44,157
Mature after one year through three years	14,285		14,435
Mature in more than three years	21,834		22,504
Total debt securities	80,253		81,096
Securities with no contractual maturities	189,383		197,002
Total	$	269,636	$	278,098

Equity-Method Investments

In January 2013, the Company acquired a 40% membership interest in Again Faster LLC, a fitness equipment company, for total cash consideration of $4.0 million. The Company accounts for its investment in Again Faster under the equity method as the Company owns more than 20%, providing the Company with significant influence, but does not have a controlling financial interest or other control over the operations of Again Faster.

On August 23, 2013, the Company acquired 1,316,866 shares of the common stock of iGo, Inc. (“iGo”), in a cash tender offer for total consideration of $5.2 million. The shares of common stock of iGo acquired by the Company represent approximately 44.0% of the outstanding shares of iGo on a fully-diluted basis and approximately 44.7% of the issued and outstanding shares of iGo. Pursuant to the Stock Purchase and Sale Agreement between the Company and iGo entered into on July 11, 2013, two members of iGo’s four-member board of directors were replaced by two designees of the Company. The Company accounts for its investment in iGo under the equity method as the Company’s 44.7% voting interest and board representation provide it with significant influence, but do not provide the Company with control over iGo’s operations. The value of the Company’s investment in iGo was approximately $4.0 million at September 30, 2013, based on the closing market price of iGo’s publicly-traded shares. The Company believes that this decline in value is temporary and therefore has not adjusted the carrying value of the investment.

Other Investments

In July 2013, the Company invested $25.0 million in a limited partnership that co-invested with other private investment funds in a public company. The Company accounts for this investment under the cost method as the limited partnership has no operations and the Company does not have significant influence over the operations of the public company investee. Such investment had an approximate fair value of $24.9 million at September 30, 2013, based on the net asset value included in the monthly statement it receives from the partnership.