Financial Instruments - Cash, Cash Equivalents and Marketable Securities

9 Months Ended

Sep. 30, 2012

Financial Instruments - Cash, Cash Equivalents and Marketable Securities

Financial Instruments - Cash, Cash Equivalents and Marketable Securities

3. Financial Instruments - Cash, Cash Equivalents and Marketable Securities

All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. The Company’s marketable securities consist solely of investments in US Treasury Bills and Notes and have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the available-for-sale designations as of each balance sheet date.

Cash equivalents and marketable securities are carried at amounts that approximate fair value due to their short-term maturities.  As of September 30, 2012, gross unrealized losses were not material. The Company recognized no net realized gains or losses during the three and nine month periods ended September 30, 2012. The Company considers the declines in market value of its marketable securities investment portfolio to be temporary in nature. Fair values were determined for each individual security in the investment portfolio. When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s amortized cost basis. During the three and nine month periods ended September 30, 2012, the Company did not recognize any impairment charges. As of September 30, 2012, the Company did not consider any of its investments to be other-than-temporarily impaired.