Cash, Cash Equivalents, Restricted Cash, and Short-term Investments

3 Months Ended

Mar. 31, 2014

Cash and Cash Equivalents, Restricted Cash and Short-Term Investments [Abstract]

Cash and Cash Equivalents, Restricted Cash and Short-Term Investments

5.            Cash and Cash Equivalents, Restricted Cash and Short-Term Investments

The Company considers all highly liquid investments with original maturities of 90 days or less at the time of purchase to be cash equivalents and investments with original maturities of between 91 days and one year to be short-term investments. In order to manage exposure to credit risk, the Company invests in high-quality investments rated at least A2 by Moody's Investors Service or A by Standard & Poor.

Restricted cash consisting of a money market account used as collateral securing a letter of credit under the terms of the corporate office operating lease that commenced in 2010 was $250,000 and $375,000 as of March 31, 2014 and 2013, respectively.

The Company's investments consist of corporate bonds and are classified as available for sale. Investments classified as available for sale are measured at fair value, and net unrealized gains and losses are recorded as a component of accumulated other comprehensive income (loss) on the balance sheet until realized. Realized gains and losses on sales of investment securities are determined based on the specific-identification method and are recorded in interest and other income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest method. Such amortization and accretion is included in interest expense, net. Related unrealized gains and losses were not material as of March 31, 2014 and December 31, 2013. There have been no unrealized gains or losses reclassified to accumulated other comprehensive income.

Cash, cash equivalents, restricted cash, and short-term investments consist of the following:

	March 31,		December 31,
	2014		2013
	(unaudited)
	(In thousands)
Cash	$	1,403	$	930
Money market		2,757		9,084
Total cash and cash equivalents	$	4,160	$	10,014
Corporate bonds	$	4,469	$	6,191
Total short-term investments	$	4,469	$	6,191
Total restricted cash	$	250	$	375
Total	$	8,879	$	16,580