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Cash, Cash Equivalents, and Investments
 12 Months Ended
Dec. 31, 2011
Cash, Cash Equivalents, and Investments [Abstract]  
Cash, Cash Equivalents, and Investments

NOTE 4:  Cash, Cash Equivalents, and Investments

Cash, cash equivalents, and investments consisted of the following (in thousands):

 

 

                 
    December 31,  
    2011     2010  

Cash

   $     36,404     $     26,650  

Money market instruments

     1,699       6,553  
   

 

 

    

 

 

  

Cash and cash equivalents

     38,103       33,203  
   

 

 

    

 

 

  

Corporate bonds

     55,570       34,543  

Municipal bonds

     54,036       75,457  

Agency bonds

     27,545       15,979  

Sovereign bonds

     4,016       19,350  

Treasury bills

     1,945       2,494  

Covered bonds

     1,319       -  
   

 

 

    

 

 

  

Short-term investments

     144,431       147,823  
   

 

 

    

 

 

  

Municipal bonds

     69,680       34,794  

Corporate bonds

     59,902       36,762  

Sovereign bonds

     22,355       -  

Agency bonds

     12,335       21,025  

Covered bonds

     4,701       3,541  

Limited partnership interest (accounted for using cost method)

     5,933       5,933  
   

 

 

    

 

 

  

Long-term investments

     174,906       102,055  
   

 

 

    

 

 

  
    $ 357,440     $ 283,081  
   

 

 

    

 

 

  

The Company’s cash balance included foreign bank balances totaling $29,452,000 and $23,639,000 as of December 31, 2011 and 2010, respectively.

The Company’s portfolio of debt securities consists of treasury bills, municipal bonds, corporate bonds, agency bonds, sovereign bonds, and covered bonds. Treasury bills consist of debt securities issued by both the U.S. and foreign governments; municipal bonds consist of debt securities issued by state and local government entities; corporate bonds consist of debt securities issued by both domestic and foreign companies; agency bonds consist of domestic or foreign obligations of government agencies and government sponsored enterprises that have government backing; sovereign bonds consist of direct debt issued by foreign governments; and covered bonds consist of debt securities backed by governments, mortgages, or public sector loans.

 

The following table summarizes the Company’s available-for-sale investments as of December 31, 2011 (in thousands):

 

 

                                 
    Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  

Short-term:

                                

Corporate bonds

   $ 56,277     $ 32     $ (739 )    $ 55,570  

Municipal bonds

     53,974       65       (3 )      54,036  

Agency bonds

     27,676       19       (150 )      27,545  

Sovereign bonds

     3,973       43       -       4,016  

Treasury bills

     1,944       1       -       1,945  

Covered bonds

     1,317       2       -       1,319  
         

Long-term:

                                

Municipal bonds

     69,576       201       (97 )      69,680  

Corporate bonds

     59,461       467       (26 )      59,902  

Sovereign bonds

     22,029       326       -       22,355  

Agency bonds

     12,371       35       (71 )      12,335  

Covered bonds

     4,679       22       -       4,701  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $     313,277     $     1,213     $     (1,086)     $     313,404  
   

 

 

    

 

 

    

 

 

    

 

 

  

The following table summarizes the Company’s gross unrealized losses and fair values for available-for-sale investments in an unrealized loss position as of December 31, 2011 (in thousands):

 

 

                                                 
    Unrealized Loss Position For:              
    Less than 12 Months     12 Months or Greater     Total  
    Fair Value     Unrealized
Losses		     Fair Value     Unrealized
Losses		     Fair Value     Unrealized
Losses		  

Corporate bonds

   $ 42,094     $ (754 )    $ 5,316     $ (11 )    $ 47,410     $ (765 ) 

Municipal bonds

     34,657       (100 )      -       -       34,657       (100 ) 

Agency bonds

     24,610       (220 )      3,280       (1 )      27,890       (221 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 101,361     $ (1,074 )    $ 8,596     $ (12 )    $ 109,957     $ (1,086 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As of December 31, 2011, the Company did not recognize an other-than-temporary impairment of these investments. In its evaluation, management considered the type of security, the credit rating of the security, the length of time the security has been in a loss position, the size of the loss position, our intent and ability to hold the security to expected recovery of value, and other meaningful information. The Company does not intend to sell, and is unlikely to be required to sell, any of these securities before its effective maturity or market price recovery. The Company recorded gross realized gains on the sale of debt securities totaling $82,000 in 2011, $7,000 in 2010, and $19,000 in 2009, and gross realized losses on the sale of debt securities totaling $263,000 in 2011. Losses were immaterial in 2010 and 2009.

 

The following table presents the effective maturity dates of the Company’s available-for-sale investments as of December 31, 2011 (in thousands):

 

 

                                                 
    <1 Year     1-2 Years     2-3 Years     3-4 Years     4-5 Years     Total  

Municipal bonds

   $ 54,036     $ 25,713     $ 23,976     $ -     $ 19,991     $ 123,716  

Corporate bonds

     55,570       33,555       21,543       2,398       2,406       115,472  

Agency bonds

     27,545       7,700       4,635       -       -       39,880  

Sovereign bonds

     4,016       10,831       5,933       -       5,591       26,371  

Covered bonds

     1,319       4,701       -       -       -       6,020  

Treasury bills

     1,945       -       -       -       -       1,945  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $     144,431     $     82,500     $     56,087     $     2,398     $     27,988     $     313,404  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The Company has chosen to disclose its Euro-denominated investment portfolio by country and specifically by security type. Financial institutions are included within the corporate bond sector and represent 11% of the total international portfolio. The following table summarizes the Company’s available-for-sale investments held in its international portfolio as of December 31, 2011 (in thousands):

 

 

                                                 

Short-term

   Corporate
bonds		     Agency
bonds		     Sovereign
bonds		     Treasury
bills		     Covered
bonds		     Total  

Australia

   $ 3,235     $ -     $ -     $ -     $ -     $ 3,235  

Canada

     3,551       -       -       -       -       3,551  

France

     3,374       -       -       -       -       3,374  

Germany

     5,062       3,636       3,973       -       -       12,671  

Great Britain

     10,836       5,466       -       -       1,317       17,619  

Japan

     1,332       -       -       -       -       1,332  

Netherlands

     2,202       10,379       -       1,945       -       14,526  

Supranational

     -       2,865       -       -       -       2,865  

Sweden

     1,943       3,557       -       -       -       5,500  

Switzerland

     3,542       -       -       -       -       3,542  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $     35,077     $     25,903     $     3,973     $     1,945     $     1,317     $     68,215  

 

 

                                         

Long-term

   Corporate
bonds		     Sovereign
bonds		     Agency
bonds		     Covered
bonds		     Total  

Austria

   $ -     $ -     $ 3,062     $ -     $ 3,062  

Canada

     -       -       4,568       -       4,568  

Denmark

     -       -       -       1,694       1,694  

Finland

     -       1,880       -       -       1,880  

France

     4,100       -       -       -       4,100  

Germany

     3,498       16,522       -       -       20,020  

Great Britain

     6,346       -       -       -       6,346  

Japan

     1,853       -       -       -       1,853  

Netherlands

     6,831       3,952       1,334       1,673       13,790  

Norway

     -       -       -       1,333       1,333  

Sweden

     -       -       1,004       -       1,004  

Switzerland

     2,149       -       -       -       2,149  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $     24,777     $     22,354     $     9,968     $     4,700     $     61,799  

In June 2000, the Company became a Limited Partner in Venrock Associates III, L.P. (Venrock), a venture capital fund. A Director of the Company was a General Partner of Venrock Associates through December 31, 2009. The Company has committed to a total investment in the limited partnership of up to $20,500,000, with an expiration date of December 31, 2013. As of December 31, 2011, the Company contributed $19,886,000 to the partnership. The remaining commitment of $614,000 can be called by Venrock at any time before December 31, 2013. No contributions were made and no distributions were received during 2011. Distributions are received and contributions are requested at the discretion of Venrock’s management. As of December 31, 2011, the carrying value of this investment was $5,933,000 compared to an estimated fair value of $7,460,000.