NOTE 4: Cash, Cash Equivalents, and Investments

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


	September 29, 2013		December 31, 2012
Cash	$	30,221	$	34,986
Cash equivalents		—		5,098
Money market instruments		225		5,076

Cash and cash equivalents		30,446		45,160

Corporate bonds		104,720		46,001
Asset-backed securities		41,269		17,666
Municipal bonds		17,013		16,224
Treasury bills		11,654		5,997
Sovereign bonds		8,553		3,986
Corporate stock		1,864		2,131
Agency bonds		1,499		7,482
Covered bonds		—		5,618

Short-term investments		186,572		105,105

Corporate bonds		105,621		100,072
Treasury bills		57,623		36,276
Asset-backed securities		28,659		34,710
Sovereign bonds		21,370		10,606
Municipal bonds		10,992		17,846
Agency bonds		—		29,441
Covered bonds		—		5,564
Limited partnership interest (accounted for using cost method)		2,455		3,740

Long-term investments		226,720		238,255

	$	443,738	$	388,520

The Company’s investment portfolio includes corporate bonds, asset-backed securities, treasury bills, sovereign bonds, municipal bonds, and agency 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; treasury bills consist of debt securities issued by both the U.S. and foreign governments; sovereign bonds consist of direct debt issued by foreign governments; municipal bonds consist of debt securities issued by state and local government entities; and agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing.

The following tables summarize the Company’s available-for-sale investments as of September 29, 2013 (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term:
Corporate bonds	$	104,580	$	270	$	(130	)	$	104,720
Asset-backed securities		41,600		7		(338	)		41,269
Municipal bonds		16,969		44		—			17,013
Treasury bills		11,647		7		—			11,654
Sovereign bonds		8,554		9		(10	)		8,553
Agency bonds		1,500		—		(1	)		1,499
Long-term:
Corporate bonds		105,251		513		(143	)		105,621
Treasury bills		57,604		24		(5	)		57,623
Asset-backed securities		28,810		10		(161	)		28,659
Sovereign bonds		21,386		57		(73	)		21,370
Municipal bonds		10,957		45		(10	)		10,992

	$	408,858	$	986	$	(871	)	$	408,973

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 September 29, 2013 (in thousands):


	Unrealized Loss Position For:
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Corporate bonds	$	62,910	$	(272	)	$	2,455	$	(1	)	$	65,365	$	(273	)
Asset- backed securities		41,848		(102	)		16,332		(397	)		58,180		(499	)
Sovereign bonds		9,300		(25	)		888		(58	)		10,188		(83	)
Treasury bills		7,614		(5	)		—		—			7,614		(5	)
Municipal bonds		4,374		(10	)		—		—			4,374		(10	)
Agency bonds		1,499		(1	)		—		—			1,499		(1	)

	$	127,545	$	(415	)	$	19,675	$	(456	)	$	147,220	$	(871	)

As of September 29, 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 available-for-sale investments before its effective maturity or market price recovery.

The Company recorded gross realized gains and gross realized losses on the sale of investments totaling $32,000 and $12,000, respectively, during the three-month period ended September 29, 2013 and $342,000 and $1,000, respectively, during the three-month period ended September 30, 2012. The Company recorded gross realized gains and gross realized losses of $182,000 and $79,000, respectively, during the nine-month period ending September 29, 2013, and $1,669,000 and $239,000, respectively, during the nine-month period ended September 30, 2012.

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of September 29, 2013 (in thousands):


	<1 Year		1-2 Years		2-3 Years		3-4 Years		4-5 Years		Total
Corporate bonds	$	104,720	$	61,596	$	41,299	$	2,203	$	523	$	210,341
Asset-backed securities		41,269		28,659		—		—		—		69,928
Treasury bills		11,654		48,015		9,608		—		—		69,277
Sovereign bonds		8,553		9,571		10,911		—		888		29,923
Municipal bonds		17,013		4,576		4,531		1,385		500		28,005
Agency bonds		1,499		—		—		—		—		1,499

	$	184,708	$	152,417	$	66,349	$	3,588	$	1,911	$	408,973

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 September 29, 2013, these securities had an aggregate fair value of $1,864,000, resulting in a net unrealized loss of $267,000.

The Company is a Limited Partner in Venrock Associates III, L.P. (Venrock), a venture capital fund. 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 September 29, 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. Distributions and contributions are at the discretion of Venrock’s management. No contributions were made during the nine-month period ended September 29, 2013. The Company received a cash distribution of $1,285,000 during the second quarter of 2013, which was accounted for as a return of capital.