Note 2 - Investment Securities

12 Months Ended

Dec. 31, 2014

Disclosure Text Block Supplement [Abstract]

Investments in Debt and Equity Instruments, Cash and Cash Equivalents, Unrealized and Realized Gains (Losses) [Text Block]

NOTE 2—INVESTMENT SECURITIES

The following tables summarize cash, cash equivalents and marketable securities (in thousands):

	December 31,
	2014		2013
Cash and cash equivalents:
Cash	$	7,761	$	3,816
Cash equivalents:
Money market funds		242		9,926
Commercial paper		1,800		2,500
Total cash and cash equivalents		9,803		16,242
Marketable securities:
U.S. government notes		18,361		10,522
U.S. government agencies		19,800		25,858
Municipal securities		3,607		2,039
Commercial paper		10,695		10,242
Corporate debt securities		18,880		18,170
Total marketable securities		71,343		66,831
Total cash, cash equivalents and marketable securities	$	81,146	$	83,073

The following table summarizes unrealized gains and losses related to our marketable investments (in thousands):

December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	9,803	$	—	$	—		$	9,803
Marketable investments
U.S. government notes		18,345		17		(1	)		18,361
U.S. government agencies		19,768		33		(1	)		19,800
Municipal securities		3,607		3		(3	)		3,607
Commercial paper		10,693		2		—			10,695
Corporate debt securities		18,875		13		(8	)		18,880
Total marketable securities		71,288		68		(13	)		71,343
Total cash, cash equivalents and marketable securities	$	81,091	$	68	$	(13	)	$	81,146

December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
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 securities		66,730		114		(13	)		66,831
Total cash, cash equivalents and marketable securities	$	82,972	$	114	$	(13	)	$	83,073

No investments were in a continuous unrealized loss position for longer than 12 months.

The following table summarizes the estimated fair value of our marketable investments classified by the contractual maturity date of the security as of December 31, 2014 (in thousands):

	Amount
Due in less than one year (fiscal year 2015)	$	37,023
Due in 1 to 3 years (fiscal year 2016 - 2017)		34,320
	$	71,343

Fair Value Measurements

The following table summarizes financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above (in thousands):

December 31, 2014	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	242	$	—	$	—	$	242
Commercial paper		—		1,800		—		1,800
Short term marketable investments:
Available-for-sale securities		—		71,343		—		71,343
Total assets at fair value	$	242	$	73,143	$	—	$	73,385

December 31, 2013	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	9,926	$	—	$	—	$	9,926
Commercial paper		—		2,500		—		2,500
Short term marketable investments:
Available-for-sale securities		—		66,831		—		66,831
Total assets at fair value	$	9,926	$	69,331	$	—	$	79,257

The Company’s Level 1 financial assets are money market funds with fair values are based on quoted market prices The Company’s Level 2 investments include U.S. government-backed securities and corporate securities that are valued based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. The average remaining maturity of the Company’s Level 2 investments as of December 31, 2014 is less than 36 months and all of these investments are rated by S&P and Moody’s at A or better.

The table presented below summarizes the change in carrying value associated with Level 3 financial assets, which represents the Company’s investment in long term Auction Rate Securities, for the year ended December 31, 2012 (in thousands):

	Amount
Balance at December 31, 2011	$	3,027
Total gains or losses (realized or unrealized)
Included in other comprehensive income (loss)		262
Settlements		(3,289	)
Balance at December 31, 2012, 2013 and 2014	$	—

At December 31, 2014, the Company evaluated the fair values of its intangible assets, which are classified within Level 3 of the fair value hierarchy. With respect to the purchased intangible assets associated with the Iridex acquisition in 2012, the Company determined that there was impairment in the value of these intangible assets based on an undiscounted cash flow model. Based on a discounted cash flow model, we measured the impairment of the purchased intangibles. This model relied on Level 3 inputs that included expected future cash flow streams as well as a market discount rate and is subject to uncertainties that are difficult to predict.