Marketable Securities

3 Months Ended

Mar. 31, 2013

Marketable Securities

Marketable Securities

Note 8. Marketable Securities

Marketable securities consist primarily of corporate debt securities, corporate commercial paper, debt securities of United States government agencies, auction rate notes and money market funds and are classified as “available for sale”.  Available for sale securities are reported at fair value based on quoted market prices, with unrealized gains and losses reported in accumulated other comprehensive income (loss) within stockholders’ equity. The cost of a security sold or the amount reclassified out of accumulated other comprehensive income (loss) into earnings is determined using specific identification. The Company may pay a premium or receive a discount upon the purchase of marketable securities. Interest earned and gains/losses realized on marketable securities and amortization of discounts received and accretion of premiums paid on the purchase of marketable securities are included in investment income/expense. The weighted-average maturity of the Company’s current marketable securities as of March 31, 2013 was approximately nine months.

Available-for-sale marketable securities consisted of the following:

	March 31, 2013
	Adjusted		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
	(In thousands)
Agency bond investments:
Current	$	100,320	$	82	$	—		$	100,402
Total agency bond investments	$	100,320	$	82	$	—		$	100,402
Corporate debt investments:
Current	$	193,598	$	184	$	(27	)	$	193,755
Non-current	8,375		—		(197		)	8,178
Total corporate investments	$	201,973	$	184	$	(224	)	$	201,933
Total available-for-sale marketable securities	$	302,293	$	266	$	(224	)	$	302,335

	December 31, 2012
	Adjusted		Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
	(In thousands)
Agency bond investments:
Current	$	107,673	$	65	$	—		$	107,738
Total agency bond investments	$	107,673	$	65	$	—		$	107,738
Corporate debt investments:
Current	$	223,192	$	269	$	(7	)	$	223,454
Non-current	8,575		—		(252		)	8,323
Total corporate investments	$	231,767	$	269	$	(259	)	$	231,777
Total available-for-sale marketable securities	$	339,440	$	334	$	(259	)	$	339,515

Estimated fair value was determined for each individual security in the investment portfolio. The Company attributes the unrealized losses in its auction rate securities portfolio to liquidity issues rather than credit issues. The Company’s available-for-sale auction rate securities portfolio at March 31, 2013 is comprised solely of AAA rated securities collateralized by student loan portfolios, which are substantially guaranteed by the United States government. The estimated fair value of auction rate securities was based on a discounted cash flow model and classified as non-current marketable securities on the accompanying unaudited Condensed Consolidated Balance Sheet. The Company recorded a $0.2 million unrealized loss through accumulated other comprehensive income or loss instead of earnings because the Company has deemed the impairment of these securities to be temporary. Refer to Note 7 “Fair Value Measurements” for further details.