Cash Equivalents and Investments and Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Unrealized Gains and Losses Related to Cash Equivalents and Investments in Marketable Securities

Cash equivalents and investments

The following table summarizes the Company’s unrealized gains and losses related to the cash equivalents and investments in marketable securities designated as available-for-sale (in thousands):

	As of September 30, 2013										As of December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash equivalents
Money market funds	$	11	$	-	$	-		$	11		$	11	$	-	$	-		$	11
Short-term investments
Money market funds		12,217		-		-			12,217			7,259		-		-			7,259
Corporate bonds		7,645		14		-			7,659			23,151		43		(1	)		23,193
U.S. federal agencies		-		-		-			-			27,241		10		-			27,251
Foreign bonds and notes		5,230		5		(3	)		5,232			4,682		14		-			4,696
Municipal obligations		1,800		-		-			1,800			1,902		-		-			1,902
Total short-term investments		26,892		19		(3	)		26,908			64,235		67		(1	)		64,301
Total investments	$	26,903	$	19	$	(3	)	$	26,919	⁽¹⁾	$	64,246	$	67	$	(1	)	$	64,312	⁽¹⁾

⁽¹⁾Interest income receivable included in total investment balance was $0.2 million and $0.4 million at September 30, 2013 and December 31, 2012, respectively.

Maturities of Investments

As of September 30, 2013, maturities of investments are as follows (in thousands):

	September 30, 2013
Less than 1 year	$	23,114
Due in 1 to 2 years		-
Due in 2 to 5 years		2,005
Due after 5 years		1,800
Total	$	26,919

Fair Value of Financial Assets

The following table sets forth the fair value of the Company’s financial assets as of the date presented (in thousands):

	As of September 30, 2013								As of December 31, 2012
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Money market funds	$	12,228	$	-	$	-	$	12,228	$	7,270	$	-	$	-	$	7,270
Marketable securities
Corporate bonds		-		7,659		-		7,659		-		23,193		-		23,193
U.S. federal agencies		-		-		-		-		-		27,251		-		27,251
Foreign bonds and notes		-		5,232		-		5,232		-		4,696		-		4,696
Municipal obligations		-		1,800		-		1,800		-		1,902		-		1,902
	$	12,228	$	14,691	$	-	$	26,919	$	7,270	$	57,042	$	-	$	64,312

Fair Value of Financial Liabilities

The following table sets forth the fair value of the Company’s financial liabilities as of the dates presented (in thousands):

	As of September 30, 2013								As of December 31, 2012
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Contingent consideration (Note 13)	$	—	$	—	$	1,985	$	1,985	$	—	$	—	$	959	$	959
Penalty payment derivative (Note 9)	$	—	$	—	$	238	$	238	$	—	$	—	$	138	$	138

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References+ Details

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References+ Details