Note 2. Cash and Cash Equivalents and Marketable Securities

The Company considers all highly liquid investments, with an original maturity of three months or less at the time of purchase, to be cash equivalents. Investments in debt securities are accounted for as “available-for-sale” securities, carried at fair value with unrealized gains and losses reported in other comprehensive loss, held for use in current operations and classified in current assets as “Marketable investments.”

The following tables summarize unrealized gains and losses related to our marketable investments, designated as available-for-sale (in thousands):

September 30, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	1,830	$	—	$	—		$	1,830
Money market funds		12,180		—		—			12,180
Commercial paper		1,150		—		—			1,150
Total cash and cash equivalents		15,160		—		—			15,160

Marketable securities:
U.S. government notes		5,997		14		—			6,011
U.S. government agencies		30,499		40		(13	)		30,526
Municipal securities		2,604		2		(4	)		2,602
Commercial paper		9,357		4		—			9,361
Corporate debt securities		18,570		56		(5	)		18,621
Total marketable investments		67,027		116		(22	)		67,121

Total cash, cash equivalents and marketable investments	$	82,187	$	116	$	(22	)	$	82,281

December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	2,198	$	—	$	—		$	2,198
Money market funds		17,348		—		—			17,348
Commercial paper		4,000		—		—			4,000
Total cash and cash equivalents		23,546		—		—			23,546

Marketable securities:
U.S. government notes		4,005		4		—			4,009
U.S. government agencies		24,910		48		—			24,958
Municipal securities		4,184		23		(1	)		4,206
Commercial paper		10,515		4		—			10,519
Corporate debt securities		18,281		59		(6	)		18,334
Total marketable investments		61,895		138		(7	)		62,026

Total cash, cash equivalents and marketable investments	$	85,441	$	138	$	(7	)	$	85,572

As of September 30, 2013 and December 31, 2012, the total gross unrealized losses were $22,000 and $7,000, respectively, and were related to interest rate changes on short-term marketable investments. The Company has concluded that it is more-likely-than-not that the securities will be held until maturity or a recovery of the cost basis. No securities were in unrealized loss positions for more than 12 months.

The following table summarizes the estimated fair value of our securities available-for-sale and classified as cash and cash equivalents and marketable investments classified by the contractual maturity date of the security as of September 30, 2013 (in thousands):

	Amount
Due in less than one year	$	31,472
Due in 1 to 3 years		36,799
	$	68,271