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Cash, Cash Equivalent and Marketable Investments

The Company invests its cash primarily in money market funds and in highly liquid debt instruments of U.S. federal and municipal governments and their agencies, commercial paper and corporate debt securities. All highly liquid investments with stated maturities of

three

months or less from date of purchase are classified as cash equivalents; all highly liquid investments with stated maturities of greater than

three

months are classified as marketable investments. The majority of the Company’s cash and investments are held in U.S. banks and its foreign subsidiaries maintain a limited amount of cash in their local banks to cover their short term operating expenses.

The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. The Company’s marketable securities have been classified and accounted for as available-for-sale securities. Investments with remaining maturities of more than

one

year are viewed by the Company as available to support current operations, and are classified as current assets under the caption marketable investments in the accompanying condensed consolidated balance sheets. Investments in marketable securities are carried at fair value, with the unrealized gains and losses reported as a component of stockholders’ equity. Any realized gains or losses on the sale of marketable securities are determined on a specific identification method, and such gains and losses are reflected as a component of interest and other income, net.

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) as of

June 30, 2018

and

December 31, 2017:

June 30, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	15,545	$	—	$	—		$	15,545
Money market funds		2,887		—		—			2,887
Total cash and cash equivalents		18,432		—		—			18,432

Marketable investments:
U.S. government notes		6,012		—		(8	)		6,004
Municipal securities		200		—		(1	)		199
Corporate debt securities		4,388		—		(18	)		4,370
Total marketable investments		10,600		—		(27	)		10,573

Total cash, cash equivalents and marketable investments	$	29,032	$	—	$	(27	)	$	29,005

December 31, 2017	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents:
Cash	$	14,058	$	—	$	—		$	14,058
Money market funds		126		—		—			126
Total cash and cash equivalents		14,184		—		—			14,184

Marketable investments:
U.S. government notes		11,885		—		(15	)		11,870
Municipal securities		201		— —		(1	)		200
Commercial paper		1,836		—		(3	)		1,833
Corporate debt securities		7,838		2		(15	)		7,825
Total marketable investments		21,760		2		(34	)		21,728

Total cash, cash equivalents and marketable investments	$	35,944	$	2	$	(34	)	$	35,912

As of

June 30, 2018

and

December 31, 2017,

net unrealized losses were

$27,000

and

$34,000,

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.

securities were in an unrealized loss position for more than

months.

The following table summarizes the contractual maturities of the Company’s available-for-sale securities, classified as marketable investments as of

June 30, 2018 (

in thousands):

	Amount
Due in less than one year	$	9,573
Due in 1 to 3 years		1,000
Total marketable investments	$	10,573