Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value of Financial Instruments

Schedule of estimated fair values of financial instruments outstanding

The estimated fair values of financial instruments outstanding were as follows (in thousands):

	September 30, 2013
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
Cash and cash equivalents	$	2,174	$	—	$	—		$	2,174
Short-term investments:
U.S. government debt securities	$	20,753	$	12	$	(3	)	$	20,762
Corporate notes	7,643		2		(1		)	7,644
Certificates of deposit	5,005		1		(3		)	5,003
Total short-term investments	$	33,401	$	15	$	(7	)	$	33,409
Long-term investments:
U.S. government debt securities	$	5,220	$	3	$	(1	)	$	5,222
Corporate notes	10,307		1		(13		)	10,295
Certificates of deposit	2,160		1		(7		)	2,154
Total long-term investments	$	17,687	$	5	$	(21	)	$	17,671

	December 31, 2012
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
Cash and cash equivalents	$	2,529	$	—	$	—		$	2,529
Short-term investments:
U.S. government debt securities	$	15,852	$	6	$	(2	)	$	15,856
Corporate notes	14,471		8		(4		)	14,475
Certificates of deposit	467		—		—			467
Total short-term investments	$	30,790	$	14	$	(6	)	$	30,798
Long-term investments:
U.S. government debt securities	$	6,330	$	2	$	—		$	6,332
Corporate notes	1,050		1		—			1,051
Total long-term investments	$	7,380	$	3	$	—		$	7,383

Schedule of estimated fair values of available-for-sale securities with unrealized losses

The estimated fair values of available-for-sale securities with unrealized losses were as follows (in thousands):

	September 30, 2013
	Cost		Unrealized Losses			Fair Value
Short-term investments:
U.S. government debt securities	$	2,041	$	(3	)	$	2,038
Corporate notes	3,270		(1		)	3,269
Certificates of deposit	3,320		(3		)	3,317
Total short-term investments	$	8,631	$	(7	)	$	8,624
Long-term investments:
U.S. government debt securities	$	3,758	$	(1	)	$	3,757
Corporate notes	9,286		(13		)	9,273
Certificates of deposit	1,680		(7		)	1,673
Total long-term investments	$	14,724	$	(21	)	$	14,703

	December 31, 2012
	Cost		Unrealized Losses			Fair Value
Short-term investments:
U.S. government debt securities	$	2,546	$	(2	)	$	2,544
Corporate notes	5,668		(4		)	5,664
Total short-term investments	$	8,214	$	(6	)	$	8,208

Schedule of cost and fair value of investments based on maturity groups

Cost and fair value of investments based on two maturity groups were as follows (in thousands):

	September 30, 2013
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
Due within 1 year	$	33,401	$	15	$	(7	)	$	33,409
Due in 1-2 years	17,687		5		(21		)	17,671
Total	$	51,088	$	20	$	(28	)	$	51,080

	December 31, 2012
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
Due within 1 year	$	30,790	$	14	$	(6	)	$	30,798
Due in 1-2 years	7,380		3		—			7,383
Total	$	38,170	$	17	$	(6	)	$	38,181

Schedule of fair value hierarchy for financial assets (cash equivalents and investments)

The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) as of September 30, 2013 and December 31, 2012 (in thousands):

	September 30, 2013
	Fair Value		Level 1		Level 2		Level 3
Money market funds	$	1,682	$	1,682	$	—	$	—
Certificates of deposit	7,397		—		7,397		—
Corporate notes	17,939		—		17,939		—
U.S. government debt securities	25,984		—		25,984		—
Total assets	$	53,002	$	1,682	$	51,320	$	—

	December 31, 2012
	Fair Value		Level 1		Level 2		Level 3
Money market funds	$	1,407	$	1,407	$	—	$	—
U.S. government debt securities	22,289		—		22,289		—
Corporate notes	16,226		—		16,226		—
Certificates of deposit	467		—		467		—
Total assets	$	40,389	$	1,407	$	38,982	$	—