Marketable Securities

12 Months Ended

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

4. Marketable Securities

Our marketable securities consist of fixed income securities with original maturities of greater than three months and include obligations of U.S. government sponsored enterprises, commercial paper, certificates of deposit, and corporate and municipal debt. We account for our investments in marketable securities in accordance with FASB ASC Topic 320, Investments—Debt and Equity Securities (“ASC Topic 320”). Accordingly, our marketable securities have been classified as available-for-sale and are recorded at their estimated fair value, with unrealized gains and losses recorded in stockholders' equity and included in accumulated other comprehensive income. Realized gains and losses on the sale of available-for-sale marketable securities are recorded in royalty and other income, net. Available-for-sale marketable securities with original maturities greater than three months and remaining maturities of one year or less are classified as short-term available-for-sale marketable securities. Available-for-sale marketable securities with remaining maturities of greater than one year are classified as long-term available-for-sale marketable securities, as we intend to hold these securities until maturity. Unrealized losses that are not considered other-than-temporary and unrealized gains are included in accumulated other comprehensive income in stockholders' equity. Unrealized losses that are determined to be other-than-temporary are recorded as a charge against income. The cost of marketable securities sold is determined based on the specific identification method.

Marketable securities as of December 31, 2013 and 2012 consisted of the following:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
December 31, 2013:
Short-Term Marketable Securities:
U.S. Treasury securities	$	1,500	$	3	$	—		$	1,503
U.S. government and agency securities	151		1		—			152
Commercial paper and certificates of deposit	1,300		—		—			1,300
Corporate debt securities	22,409		18		(2		)	22,425
Municipal debt securities	500		—		—			500
Total Short-Term Marketable Securities	$	25,860	$	22	$	(2	)	$	25,880
Long-Term Marketable Securities:
Corporate debt securities	2,876		4		(1		)	2,879
Total Long-Term Marketable Securities	$	2,876	$	4	$	(1	)	$	2,879

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
December 31, 2012:
Short-Term Marketable Securities:
U.S. Treasury securities	$	1,800	$	5	$	—		$	1,805
U.S. government and agency securities	3,018		5		—			3,023
Commercial paper and certificates of deposit	6,001		2		—			6,003
Corporate debt securities	16,010		11		(1		)	16,020
Municipal debt securities	—		—		—			—
Total Short-Term Marketable Securities	$	26,829	$	23	$	(1	)	$	26,851
Long-Term Marketable Securities:
U.S. Treasury securities	$	1,502	$	19	$	—		$	1,521
U.S. government and agency securities	156		2		—			158
Corporate debt securities	10,835		34		—			10,869
Total Long-Term Marketable Securities	$	12,493	$	55	$	—		$	12,548

As of December 31, 2013 and 2012, we did not have any investments in marketable securities with material unrealized loss position for twelve months or greater.

We assess our marketable securities for impairment under the guidance provided by ASC Topic 320. Accordingly, we review the fair value of our marketable securities at least quarterly to determine if declines in the fair value of individual securities are other-than-temporary in nature. If we believe the decline in the fair value of an individual security is other-than-temporary, we write-down the carrying value of the security to its estimated fair value, with a corresponding charge against income. To determine if a decline in the fair value of an investment is other-than-temporary, we consider several factors, including, among others, the period of time and extent to which the estimated fair value has been less than cost, overall market conditions, the historical and projected future financial condition of the issuer of the security and our ability and intent to hold the security for a period of time sufficient to allow for a recovery of the market value. The unrealized losses related to our marketable securities held as of December 31, 2013 and 2012 were primarily caused by recent fluctuations in market interest rates, and not the credit quality of the issuer, and we have the ability and intent to hold these securities until a recoveries of fair value, which may be at maturity. As a result, we do not believe these securities to be other-than-temporarily impaired as of December 31, 2013.

The contractual maturities of our marketable securities at December 31, 2013 are as follows (in thousands):

Due within one year	$	25,880
Due in one to five years	2,879
Total	$	28,759