(4) Cash, Cash Equivalents and Short-Term Investments

The Company considers all highly liquid investments with maturities of 90 days or less when purchased to be cash equivalents. Cash and cash equivalents at June 30, 2011 and December 31, 2010 consisted of cash and money market funds.

Management determines the appropriate classification of marketable securities at the time of purchase. Investments that the Company does not have the positive intent to hold to maturity are classified as “available-for-sale” and reported at fair market value. Unrealized gains and losses associated with available-for-sale investments are recorded in “Accumulated other comprehensive income” on the accompanying balance sheets. The amortization of premiums and accretion of discounts, and any realized gains and losses and declines in value judged to be other-than-temporary, and interest and dividends for all available-for-sale securities are included in “Investment income, net” on the accompanying statements of operations. Investments that the Company intends to hold to maturity are classified as “held-to-maturity” investments. The Company had no “held-to-maturity” investments at either June 30, 2011 or December 31, 2010. The cost of securities sold is based on the specific identification method.

The Company had no realized gains or losses from available-for-sale securities in the three or six months ended June 30, 2011 and 2010. There were no losses or other-than-temporary declines in value included in “Investment income, net” for any securities for the three or six months ended June 30, 2011 and 2010. The Company had no auction rate securities as of June 30, 2011 and December 31, 2010.

The Company’s available-for-sale short-term investments consisted of the following at June 30, 2011 and December 31, 2010:


	June 30, 2011
			Gross		Gross		Estimated
			Unrealized		Unrealized		Fair
(In thousands)	Cost		(Losses)		Gains		Value
Corporate bonds due in one year or less	$	2,016	$	—	$	—	$	2,016

Total	$	2,016	$	—	$	—	$	2,016


	December 31, 2010
			Gross		Gross		Estimated
			Unrealized		Unrealized		Fair
(In thousands)	Cost		(Losses)		Gains		Value
Agency bonds due in one year or less	$	3,201	$	—	$	—	$	3,201
Corporate bonds due in one year or less		3,214		—		4		3,218
U.S. government bonds dues in one year or less		11,207		—		9		11,216

Total	$	17,622	$	—	$	13	$	17,635