Investments - Available for Sale

9 Months Ended

Sep. 30, 2016

Investments Debt And Equity Securities [Abstract]

Investments - Available for Sale

NOTE 4. INVESTMENTS – AVAILABLE FOR SALE

Our investments generally consist of money market funds, commercial paper, corporate debt securities and municipal bonds.  All of our investments have original maturities (maturity at the purchase date) of less than 12 months.  Investments with original maturities of three months or less are classified as cash equivalents.

We classify our investments as available for sale at the time of purchase and we reevaluate such classification as of each balance sheet date.  These short-term investments are carried at fair value with unrealized gains or losses classified as a component of accumulated other comprehensive income (loss).  Amortization of premiums and accretion of discounts to maturity are computed under the effective interest method and is included in interest income.  Interest on securities is included in interest income when earned.  Realized gains and losses on the sale of investments are determined using the specific identification method and recorded in "Other income (expense)” in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

Our investments as of September 30, 2016 and December 31, 2015 were as follows (in thousands):

	September 30, 2016
	Amortized Cost		Net Unrealized Gains (Losses)			Fair Value/Net Carrying Value		Cash and Cash Equivalents		Investments
Commercial paper	$	17,852	$	-		$	17,852	$	-	$	17,852
Corporate debt securities		17,935		1			17,936		-		17,936
Money market funds		28,382		-			28,382		28,382		-
Municipal bonds		2,513		(2	)		2,511		-		2,511
Total	$	66,682	$	(1	)	$	66,681	$	28,382	$	38,299
	December 31, 2015
	Amortized Cost		Net Unrealized Gains (Losses)			Fair Value/Net Carrying Value		Cash and Cash Equivalents		Investments
Commercial paper	$	28,845	$	-		$	28,845	$	999	$	27,846
Corporate debt securities		45,911		(81	)		45,830		-		45,830
Money market funds		4,071		-			4,071		4,071		-
Municipal bonds		1,433		-			1,433		-		1,433
Total	$	80,260	$	(81	)	$	80,179	$	5,070	$	75,109

As of September 30, 2016 all our investments had contractual maturities of less than one year.

At September 30, 2016 and December 31, 2015, we had $5,000 and $81,000 of gross unrealized losses on certain investments, respectively. We regularly review our investment portfolio to identify and evaluate investments that have indications of possible impairment that is other-than-temporary. Factors considered in determining whether a loss is temporary include:

• the length of time and extent to which fair value has been lower than the cost basis;

• the financial condition, credit quality and near-term prospects of the investee; and

• whether it is more likely than not that the Company will be required to sell the security prior to recovery.

We believe that there were no investments held at September 30, 2016 that were other-than-temporarily impaired.  For the nine months ended September 30, 2016, proceeds from maturities of investments were $65.3 million for an immaterial realized gain, $1.0  million of these maturities were securities included in cash equivalents.  We sold $2.8 million of investments for the nine months ended September 30, 2016.