NOTE 4:

Cash, Cash Equivalents, and Investments

Cash, cash equivalents, and investments consisted of the following (in thousands):


	March 31, 2013		December 31, 2012
Cash	$	32,290	$	34,986
Cash equivalents		9,398		5,098
Money market instruments		1,069		5,076

Cash and cash equivalents		42,757		45,160


Corporate bonds		60,962		46,001
Asset-backed securities		22,982		17,666
Municipal bonds		12,952		16,224
Agency bonds		11,493		7,482
Treasury bills		5,604		5,997
Covered bonds		4,660		5,618
Commercial paper		2,998		—
Sovereign bonds		1,997		3,986
Corporate stock		1,763		2,131

Short-term investments		125,411		105,105


Corporate bonds		110,443		100,072
Asset-backed securities		42,337		34,710
Treasury bills		28,123		36,276
Agency bonds		27,785		29,441
Municipal bonds		16,619		17,846
Sovereign bonds		9,826		10,606
Covered bonds		6,611		5,564
Limited partnership interest (accounted for using cost method)		3,740		3,740

Long-term investments		245,484		238,255

	$	413,652	$	388,520

The Company’s investment portfolio includes corporate bonds, asset-backed securities, municipal bonds, agency bonds, treasury bills, covered bonds, commercial paper, and sovereign bonds. Corporate bonds consist of debt securities issued by both domestic and foreign companies; asset-backed securities consist of debt securities collateralized by pools of receivables or loans with credit enhancement; municipal bonds consist of debt securities issued by state and local government entities; agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing; treasury bills consist of debt securities issued by both the U.S. and foreign governments; covered bonds consist of debt securities backed by governments, mortgages, or public sector loans; commercial paper consists of debt instruments issued by corporations or financial institutions with high quality debt ratings; and sovereign bonds consist of direct debt issued by foreign governments.

During the fourth quarter of 2012, the Company purchased equity securities, representing stock in a publicly-traded U.S. company, with an aggregate fair value of $2,131,000 as of December 31, 2012. As of March 31, 2013, these securities had an aggregate fair value of $1,763,000, resulting in an unrealized loss of $368,000.

The following table summarizes the Company’s available-for-sale investments as of March 31, 2013 (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value

Short-term:
Corporate bonds	$	60,871	$	111	$	(20	)	$	60,962
Asset-backed securities		22,984		20		(22	)		22,982
Municipal bonds		12,917		35		—			12,952
Agency bonds		11,502		—		(9	)		11,493
Treasury bills		5,602		2		—			5,604
Covered bonds		4,676		1		(17	)		4,660
Commercial paper		2,998		—		—			2,998
Sovereign bonds		2,000		—		(3	)		1,997
Long-term:
Corporate bonds		109,693		796		(46	)		110,443
Asset-backed securities		42,581		25		(269	)		42,337
Treasury bills		28,117		7		(1	)		28,123
Agency bonds		27,720		89		(24	)		27,785
Municipal bonds		16,477		142		—			16,619
Sovereign bonds		9,794		32		—			9,826
Covered bonds		6,591		20		—			6,611

	$	364,523	$	1,280	$	(411	)	$	365,392

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of March 31, 2013 (in thousands):


	Less than 12 Months
	Fair Value		Unrealized Losses
Corporate bonds	$	45,301	$	(66	)
Asset-backed securities		43,706		(291	)
Agency bonds		13,371		(33	)
Treasury bills		12,498		(1	)
Covered bonds		2,937		(17	)
Sovereign bonds		1,997		(3	)

	$	119,810	$	(411	)

As of March 31, 2013, the Company did not recognize an other-than-temporary impairment of these investments. In its evaluation, management considered the type of security, the credit rating of the security, the length of time the security has been in a loss position, the size of the loss position, our intent and ability to hold the security to expected recovery of value, and other meaningful information. The Company does not intend to sell, and is unlikely to be required to sell, any of these securities before its effective maturity or market price recovery. The Company recorded gross realized gains on the sale of debt securities totaling $50,000 and $94,000, respectively, in the first quarters of 2013 and 2012, and gross realized losses on the sale of debt securities totaling $19,000 in the first quarter of 2013.

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of March 31, 2013 (in thousands):


	<1 Year		1-2 Years		2-3 Years		3-4 Years		4-5 Years		Total
Corporate bonds	$	60,962	$	36,566	$	64,948	$	7,381	$	1,548	$	171,405
Asset-backed securities		22,982		34,387		7,950		—		—		65,319
Agency bonds		11,493		20,385		6,477		—		923		39,278
Treasury bills		5,604		4,503		23,620		—		—		33,727
Municipal bonds		12,952		11,181		2,437		1,427		1,574		29,571
Commercial paper		2,998		—		—		—		—		2,998
Sovereign bonds		1,997		1,522		6,727		1,577		—		11,823
Covered bonds		4,660		3,766		—		2,845		—		11,271

	$	123,648	$	112,310	$	112,159	$	13,230	$	4,045	$	365,392

In June 2000, the Company became a Limited Partner in Venrock Associates III, L.P. (Venrock), a venture capital fund. A Director of the Company was a General Partner of Venrock Associates through December 31, 2009. The Company has committed to a total investment in the limited partnership of up to $20,500,000, with an expiration date of December 31, 2013. As of March 31, 2013, the Company contributed $19,886,000 to the partnership. The remaining commitment of $614,000 can be called by Venrock at any time before December 31, 2013. No contributions were made and no distributions were received in the first quarter of 2013. Distributions are received and contributions are requested at the discretion of Venrock’s management.