Cash, Cash Equivalents and Short Term Investments

6 Months Ended

Jun. 30, 2011

Cash, Cash Equivalents and Short Term Investments [Abstract]

Cash, Cash Equivalents and Short Term Investments

Note 2. Cash, Cash Equivalents and Short Term Investments

As of June 30, 2011, the Company held $25.8 million in cash and cash equivalents and $57.3 million of short term investment securities. The short term investment securities are classified as available-for-sale and as such, are reported at fair value on the Company’s balance sheet. Unrealized holding gains and losses are reported within accumulated other comprehensive income/(loss) as a separate component of stockholders’ equity. If a decline in the fair value of a marketable security below the Company’s cost basis is determined to be other than temporary, such marketable security is written down to its estimated fair value as a new cost basis and the amount of the write-down is included in earnings as an impairment charge. To date, only temporary impairment adjustments have been recorded.

Consistent with the Company’s investment policy, the Company does not use derivative financial instruments in its investment portfolio. The Company regularly invests excess operating cash in deposits with major financial institutions, money market funds, notes issued by the U.S. government, as well as fixed income investments and U.S. bond funds both of which can be readily purchased and sold using established markets. The Company believes that the market risk arising from its holdings of these financial instruments is mitigated as many of these securities are either government backed or of the highest credit rating.

Cash and available for sale securities consisted of the following as of December 31, 2010 and June 30, 2011 (in thousands):

	As of December 31, 2010
			Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
Cash balances	$	29,572	$	—	$	—		$	29,572
U.S. government agency securities		12,000		—		(9	)		11,991
Corporate debt securities		42,075		2		(33	)		42,044
Commercial paper		23,476		12		—			23,488
Certificate of deposit		350		—		—			350
	$	107,473	$	14	$	(42	)	$	107,445
Included in cash and cash equivalents	$	29,572	$	—	$	—		$	29,572
Included in marketable securities		77,901		14		(42	)		77,873
Total cash and available for sale securities	$	107,473	$	14	$	(42	)	$	107,445

	As of June 30, 2011
			Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
Cash balances	$	25,789	$	—	$	—		$	25,789
U.S. government agency securities		2,000		—		(3	)		1,997
Corporate debt securities		44,933		2		(24	)		44,911
Commercial paper		9,988		11		—			9,999
Certificate of deposit		350		—		—			350
	$	83,060	$	13	$	(27	)	$	83,046
Included in cash and cash equivalents	$	25,789	$	—	$	—		$	25,789
Included in marketable securities		57,271		13		(27	)		57,257
Total cash and available for sale securities	$	83,060	$	13	$	(27	)	$	83,046

Unrealized gains and losses are reported as a component of accumulated other comprehensive income/(loss) in stockholders’ equity. For the year ended December 31, 2010, unrealized holding gains included in accumulated other comprehensive income was $0.1 million. For the six months ended June 30, 2011, unrealized holding gains included in accumulated other comprehensive income were de minimis.

For the year ended December 31, 2010 and the six months ended June 30, 2011, there were no realized gains or losses. The cost of securities sold is based on the specific identification method.

Unrealized loss positions in the available for sale securities as of December 31, 2010 and June 30, 2011 reflect temporary impairments that have not been recognized and have been in a loss position for less than twelve months. The fair value of these available for sale securities in unrealized loss positions was $46.1 million and $29.8 million as of December 31, 2010 and June 30, 2011, respectively.