Note 2.

Cash

Cash Equivalents

and

Marketable

Investments

The Company invests its cash primarily in money market funds, commercial paper, corporate notes and bonds, municipal bonds, and debt securities issued by the U.S. government and its agencies. 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, are held for use in current operations and are classified in current assets as “marketable investments

.”

The following tables summarize the components, and the unrealized gains and losses position, related to the Company’s cash, cash equivalents and marketable investments (in thousands):

June 30, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	5,528	$	—	$	—		$	5,528
Money market funds		1,343		—		—			1,343
Commercial paper		549		—		—			549
Total cash and cash equivalents		7,420		—		—			7,420

Marketable investments:
U.S. government notes		12,218		22		—			12,240
U.S. government agencies		4,027		1		—			4,028
Municipal securities		2,752		6		—			2,758
Commercial paper		5,585		2		—			5,587
Corporate debt securities		11,279		12		(2	)		11,289
Total marketable investments		35,861		43		(2	)		35,902

Total cash, cash equivalents and marketable investments	$	43,281	$	43	$	(2	)	$	43,322

December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	9,830	$	—	$	—		$	9,830
Money market funds		1,000		—		—			1,000
Commercial paper		38		—		—			38
Total cash and cash equivalents		10,868		—		—			10,868

Marketable investments:
U.S. government notes		7,780		1		(2	)		7,779
U.S. government agencies		12,630		3		(25	)		12,608
Municipal securities		4,344		2		—			4,346
Commercial paper		4,041		1		(2	)		4,040
Corporate debt securities		8,783		—		(17	)		8,766
Total marketable investments		37,578		7		(46	)		37,539

Total cash, cash equivalents and marketable investments	$	48,446	$	7	$	(46	)	$	48,407

As of June 30, 2016 and December 31, 2015, total gross unrealized losses were $2

,000 and $46,000, respectively, and were related to interest rate changes on available-for-sale 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 an unrealized loss position 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 June 30, 2016 (in thousands):

	Amount
Due in less than one year	$	28,623
Due in 1 to 3 years		7,279
Total marketable investments	$	35,902