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Financial Instruments
 3 Months Ended
Mar. 31, 2016
Financial Instruments  
Financial Instruments

4. Financial Instruments

The Company elected to invest a portion of its cash assets in conservative, income earning, liquid investments effective September 2015. Cash equivalents and investments, all of which are classified as available-for-sale securities, consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2016

 

December 31, 2015

 

 

    

Amortized
Cost

    

Gross
Unrealized
Gain

    

Gross
Unrealized
(Loss)

    

Estimated Fair
Value

    

Amortized
Cost

    

Gross
Unrealized
Gain

    

Gross
Unrealized
(Loss)

    

Estimated Fair
Value

 

 

 

(in thousands)

 

Money market deposits

 

$
8,263

 

$

 —

 

$

 —

 

$
8,263

 

$
5,966

 

$

 —

 

$

 —

 

$
5,966

 

U.S. Treasury securities

 

 
102,950

 

 
183

 

 
(37)

 

 
103,096

 

 
104,537

 

 
1

 

 
(725)

 

 
103,813

 

U.S. agency securities

 

 
74,428

 

 
228

 

 
(40)

 

 
74,616

 

 
79,491

 

 

 —

 

 
(638)

 

 
78,853

 

Municipal securities

 

 
18,824

 

 
68

 

 
(7)

 

 
18,885

 

 
18,974

 

 
2

 

 
(56)

 

 
18,920

 

Total

 

$
204,465

 

$
479

 

$
(84)

 

$
204,860

 

$
208,968

 

$
3

 

$
(1,419)

 

$
207,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified as:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

$
8,263

 

 

 

 

 

 

 

 

 

 

$
5,966

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 
196,597

 

 

 

 

 

 

 

 

 

 

 
201,586

 

Total

 

 

 

 

 

 

 

 

 

 

$
204,860

 

 

 

 

 

 

 

 

 

 

$
207,552

 

 

The Company invests in U.S. Treasuries, U.S. agency and high quality municipal bonds which mature at par and are all paying their coupons on schedule.  Thus the Company has determined there is currently no other than temporary impairment of its investments, and will continue to recognize unrealized losses and gains in other comprehensive income (loss).  During the three months ended March 31, 2016, the Company had $0.1 million in realized gains and immaterial losses for a total net realized gain of $0.1 million. The Company uses the specific investment identification method to calculate realized gains and losses as well as the amount reclassified out of other comprehensive income to net income. As of March 31, 2016, the Company has 34 investments in an unrealized loss position in its portfolio. The Company earned interest income of $0.4 million during the three months ended March 31, 2016. The following table summarizes the Company’s portfolio of available-for-sale securities by contractual maturity as of March 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2016

 

 

 

Amortized
Cost

 

Fair
Value

 

 

 

(in thousands)

 

Less than one year

 

$
59,489

 

$
59,464

 

Greater than one year but less than five years

 

 
144,976

 

 
145,396

 

Total

 

$
204,465

 

$
204,860