4. Cash, Cash Equivalents and Investments

Cash and cash equivalents consist of highly liquid investments with maturities of three months or less at date of purchase. Cash equivalents are carried at cost, which approximates their fair market value. Cash and cash equivalents consisted of the following:


	June 30,		December 31,
	2011		2010
	(Unaudited)
Cash	$	13,644	$	9,209
Money market funds		8,173		23,375

Total cash and cash equivalents	$	21,817	$	32,584

The Company’s short and long-term investments are accounted for as available for sale securities. These investments are recorded at fair value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders’ equity, net of tax. The unrealized gain (loss), net of taxes, was $5 and $(5) as of June 30, 2011 and December 31, 2010, respectively. Realized gains and losses on the sale of these investments are determined using the specific identification method. There were no realized gains or losses during the three or six months ended June 30, 2011 or 2010.

Short and long-term investments consisted of the following:


	June 30, 2011
			Gross		Gross
			Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
	(Unaudited)
Short and long-term investments:
Municipal bonds	$	32,560	$	26	$	(18	)	$	32,568


Total short and long-term investments	$	32,560	$	26	$	(18	)	$	32,568


	December 31, 2010
			Gross		Gross
			Unrealized		Unrealized			Estimated
	Cost		Gains		Losses			Fair Value
Short and long-term investments:
Government agency bonds	$	2,008	$	1	$	—		$	2,009
Municipal bonds		15,550		2		(11	)		15,541

Total short and long-term investments	$	17,558	$	3	$	(11	)	$	17,550

The Company had seven debt securities in an unrealized loss position at June 30, 2011. Six of these securities have been in such a position for less than 12 months; the unrealized loss on those securities was approximately $17 and the fair value was $13.1 million. As of June 30, 2011, the Company does not consider these investments to be other-than-temporarily impaired. One of these securities has been in such a position for more than 12 months and may be permanently impaired. The unrealized loss on that security was approximately $1 and the fair value was $2.0 million.

Municipal bonds have contractual maturity dates within 18 months. All income generated from these investments is recorded as interest income.