Cash Equivalents and Marketable Securities

9 Months Ended

Sep. 30, 2011

Cash Equivalents and Marketable Securities

Cash Equivalents and Marketable Securities

Note 3—Cash Equivalents and Marketable Securities

At September 30, 2011, cash equivalents and marketable securities primarily consisted of money market mutual funds, US government and US Government Sponsored Entities (GSE’s) and high credit quality corporate debt securities that are guaranteed by the US government. The Company’s marketable securities are classified as available-for-sale, with long-term investments, if applicable, having a maturity date greater than one year from the date of the balance sheet.

Marketable securities are summarized as follows (in thousands):

					Gross			Gross
					Unrealized			Unrealized
			Gross		Losses			Losses
	Amortized		Unrealized		Less than			12 Months		Aggregate
Balance at September 30, 2011	Cost		Gains		12 Months			or Longer		Fair Value
Corporate debt securities	$	7,519	$	5	$	—		$	—	$	7,524
US government debt securities	9,112		8		(1		)	—		9,119
Foreign government debt securities	5,948		—		(10		)	—		5,938
Total	$	22,579	$	13	$	(11	)	$	—	$	22,581

					Gross			Gross
					Unrealized			Unrealized
			Gross		Losses			Losses
	Amortized		Unrealized		Less than			12 Months		Aggregate
Balance at December 31, 2010	Cost		Gains		12 Months			or Longer		Fair Value
Corporate debt securities	$	22,597	$	6	$	(3	)	$	—	$	22,600
US government debt securities	47,466		12		(3		)	—		47,475
Total	$	70,063	$	18	$	(6	)	$	—	$	70,075

Advent regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition, credit quality and near-term prospects of the investee, and Advent’s ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value.

The gross unrealized losses related to investments are primarily due to a decrease in the fair value of debt securities as a result of an increase in interest rates since the acquisition of the securities. For fixed income securities that have unrealized losses as of September 30, 2011,  the Company has determined that (i) it does not have the intent to sell any of these investments and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, the Company has evaluated these fixed income securities and has determined that no credit losses exist.

During the nine months ended September 30, 2011 and 2010, $85.4 million and $19.0 million, respectively, of marketable securities matured, which did not have any associated gross realized gains or losses.