Note 2. Cash, Cash Equivalents and Marketable Investments

The Company invests its cash primarily in money market funds, commercial paper, corporate notes and bonds and U.S. government debt 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 with maturities of greater than three months at the time of purchase are accounted for as “available-for-sale”, are carried at fair value with unrealized gains and losses reported as a component of stockholders’ equity, held for use in current operations and classified in current assets as “marketable investments”.

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

March 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	2,757	$	—	$	—		$	2,757
Money market funds		5,736		—		—			5,736
Commercial paper		2,250		—		—			2,250
Total cash and cash equivalents		10,743		—		—			10,743

Marketable investments:
U.S. government notes		17,107		14		(9	)		17,112
U.S. government agencies		21,088		39		(1	)		21,126
Municipal securities		2,042		4		—			2,046
Commercial paper		14,885		5		—			14,890
Corporate debt securities		17,854		57		(6	)		17,905
Total marketable investments		72,976		119		(16	)		73,079

Total cash, cash equivalents and marketable investments	$	83,719	$	119	$	(16	)	$	83,822

December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	3,816	$	—	$	—		$	3,816
Money market funds		9,926		—		—			9,926
Commercial paper		2,500		—		—			2,500
Total cash and cash equivalents		16,242		—		—			16,242

Marketable investments:
U.S. government notes		10,516		11		(5	)		10,522
U.S. government agencies		25,823		38		(3	)		25,858
Municipal securities		2,043		1		(5	)		2,039
Commercial paper		10,239		3		—			10,242
Corporate debt securities		18,109		61		—			18,170
Total marketable investments		66,730		114		(13	)		66,831

Total cash, cash equivalents and marketable investments	$	82,972	$	114	$	(13	)	$	83,073

As of March 31, 2014 and December 31, 2013, the total gross unrealized losses were $16,000 and $13,000, 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 the recovery of their cost basis. No securities were in unrealized loss positions for more than 12 months.

The following table summarizes the contractual maturities of the Company’s available-for-sale securities, classified as marketable investments as of March 31, 2014 (in thousands):

	Amount
Due in less than one year	$	35,678
Due in 1 to 3 years		37,401
	$	73,079