Financial Instruments

3 Months Ended

Mar. 31, 2017

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, 2017								December 31, 2016
	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	$	520	$	—	$	—	$	520	$	10,777	$	—	$	—	$	10,777
U.S. Treasury securities		40,751		—		(346)		40,405		57,846		—		(404)		57,442
U.S. agency securities		50,160		—		(152)		50,008		56,261		—		(147)		56,114
Municipal securities		16,306		5		(32)		16,279		17,478		—		(174)		17,304
Total	$	107,737	$	5	$	(530)	$	107,212	$	142,362	$	—	$	(725)	$	141,637
Classified as:
Cash equivalents							$	520							$	10,777
Short-term investments								106,692								130,860
Total							$	107,212							$	141,637

The Company invests in U.S. Treasuries, U.S. agency and high quality municipal bonds which mature at par value and are all paying their coupons on schedule. The Company has therefore concluded there is currently no other than temporary impairment of its investments and will continue to recognize unrealized gains and losses in other comprehensive income (loss). During the three months ended March 31, 2017, the Company had immaterial realized gains and losses. The Company uses the specific investment identification method to calculate realized gains and losses and amounts reclassified out of other comprehensive income to net income. As of March 31, 2017, the Company has 21 investments in an unrealized loss position in its portfolio. The Company earned interest income of $0.3 million during the three months ended March 31, 2017. The following table summarizes the Company’s portfolio of available-for-sale securities by contractual maturity as of March 31, 2017:

	March 31, 2017
	Amortized Cost		Fair Value
	(in thousands)
Less than one year	$	39,169	$	39,100
Greater than one year but less than five years		68,048		67,592
Total	$	107,217	$	106,692