NOTE 5—INVESTMENTS:

Cash, cash equivalents and short-term investments:

At December 31, 2012 and 2011, the Company held short-term investments classified as available-for-sale securities as follows:

	December 31, 2012

	Amortized Cost			Net Unrealized Gains (Losses)			Estimated Fair Value
	(in thousands)
Cash	$	110,148		$	—		$	110,148
Certificates of deposit		90,437			(6	)		90,431
U.S. Government and agency securities		115,179			(50	)		115,129
Commercial paper		34,977			(30	)		34,947
Corporate bonds		61,543			(81	)		61,462
Foreign government bonds		7,511			19			7,530

Total investments in marketable securities	$	419,795		$	(148	)	$	419,647
Less amounts classified as cash and cash equivalents		(117,054	)		—			(117,054	)

	$	302,741		$	(148	)	$	302,593

	December 31, 2011

	Amortized Cost			Net Unrealized Gains (Losses)			Estimated Fair Value
	(in thousands)
Cash	$	71,808		$	—		$	71,808
Money market funds		105,246			—			105,246
Certificates of deposit		50,170			(18	)		50,152
U.S. Government and agency securities		250			1			251
Corporate bonds		5,215			2			5,217
Foreign government bonds		957			0			957

Total investments in marketable securities	$	233,646		$	(15	)	$	233,631
Less amounts classified as cash and cash equivalents		(181,258	)		—			(181,258	)

	$	52,388		$	(15	)	$	52,373

Realized gains upon the sale of marketable securities were approximately $0.9 million and less than $0.1 million for the years ended December 31, 2012 and December 31, 2011, respectively. At December 31, 2012, the investments with gross unrealized losses were not deemed to be other-than-temporarily impaired and the unrealized losses were recorded in OCI.

The contractual maturities of debt securities at December 31, 2012 and December 31, 2011 were as follows:

	December 31, 2012				December 31, 2011

	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(in thousands)
Due in less than one year	$	58,758	$	58,724	$	42,670	$	42,660
Due in one to three years		243,983		243,869		9,718		9,713

	$	302,741	$	302,593	$	52,388	$	52,373

Investments in privately-held company:

As of December 31, 2012, the Company held a $4.4 million investment in a privately-held company. This investment is accounted for under the cost method, net of impairment write down. The Company monitors the investment and if facts and circumstances indicate that the investment may be impaired, then it conducts an impairment test of its investment. To determine if the investment is recoverable, it reviews the privately-held company's revenue and earnings trends relative to pre-defined milestones and overall business prospects, the general market conditions in its industry and other factors related to its ability to remain in business, such as liquidity and receipt of additional funding.