Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2015

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Note 2: Fair Value of Financial Instruments

The estimated fair values of financial instruments outstanding were (in thousands):

	March 31, 2015
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
Cash and cash equivalents	$	7,020	$	—	$	—		$	7,020
Short-term investments:
U.S. government-sponsored enterprise bonds	$	8,710	$	—	$	(3	)	$	8,707
Corporate notes	10,835		2		(3		)	10,834
Municipal bonds	3,071		1		—			3,072
Certificates of deposit	2,953		1		—			2,954
Commercial paper	499		—		—			499
Total short-term investments	$	26,068	$	4	$	(6	)	$	26,066
Long-term investments:
U.S. government-sponsored enterprise bonds	$	1,001	$	—	$	(1	)	$	1,000
Corporate notes	6,598		2		(3		)	6,597
Total long-term investments	$	7,599	$	2	$	(4	)	$	7,597
	December 31, 2014
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
Cash and cash equivalents	$	3,110	$	—	$	—		$	3,110
Short-term investments:
U.S. government-sponsored enterprise bonds	$	1,250	$	—	$	—		$	1,250
Municipal bonds	841		—		—			841
Corporate notes	15,921		2		(6		)	15,917
Certificates of deposit	2,430		1		—			2,431
Total short-term investments	$	20,442	$	3	$	(6	)	$	20,439
Long-term investments:
U.S. government-sponsored enterprise bonds	$	1,000	$	—	$	(2	)	$	998
Corporate notes	1,252		—		(5		)	1,247
Total long-term investments	$	2,252	$	—	$	(7	)	$	2,245

The estimated fair values of available-for-sale securities with unrealized losses were (in thousands):

	March 31, 2015
	Cost		Unrealized Losses			Fair Value
Short-term investments:
U.S. government-sponsored enterprise bonds	$	6,597	$	(3	)	$	6,594
Corporate notes	4,387		(3		)	4,384
Total short-term investments	$	10,984	$	(6	)	$	10,978
Long-term investments:
U.S. government-sponsored enterprise bonds	$	1,001	$	(1	)	$	1,000
Corporate notes	3,299		(3		)	3,296
Total long-term investments	$	4,300	$	(4	)	$	4,296
	December 31, 2014
	Cost		Unrealized Losses			Fair Value
Short-term investments:
Corporate notes	$	13,006	$	(6	)	$	13,000
Total short-term investments	$	13,006	$	(6	)	$	13,000
Long-term investments:
U.S. government-sponsored enterprise bonds	$	1,000	$	(2	)	$	998
Corporate notes	1,252		(5		)	1,247
Total long-term investments	$	2,252	$	(7	)	$	2,245

As of March 31, 2015 and December 31, 2014, all of the available-for-sale securities with unrealized losses had been in a loss position for less than 12 months.

Cost and fair value of investments based on two maturity groups were (in thousands):

	March 31, 2015
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
Due within 1 year	$	26,068	$	4	$	(6	)	$	26,066
Due in 1-2 years	7,599		2		(4		)	7,597
Total	$	33,667	$	6	$	(10	)	$	33,663
	December 31, 2014
	Cost		Unrealized Gains		Unrealized Losses			Fair Value
Due within 1 year	$	20,442	$	3	$	(6	)	$	20,439
Due in 1-2 years	2,252		—		(7		)	2,245
Total	$	22,694	$	3	$	(13	)	$	22,684

The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) as of March 31, 2015 and December 31, 2014 (in thousands):

	March 31, 2015
	Fair Value		Level 1		Level 2		Level 3
Money market funds	$	5,002	$	5,002	$	—	$	—
U.S. government-sponsored enterprise bonds	9,707		—		9,707		—
Corporate notes	17,431		—		17,431		—
Municipal bonds	4,205		—		4,205		—
Certificates of deposit	2,954		—		2,954		—
Commercial paper	599		—		599		—
Total assets	$	39,898	$	5,002	$	34,896	$	—
	December 31, 2014
	Fair Value		Level 1		Level 2		Level 3
Money market funds	$	1,837	$	1,837	$	—	$	—
U.S. government-sponsored enterprise bonds	2,248		—		2,248		—
Municipal bonds	1,243		—		1,243		—
Corporate notes	17,164		—		17,164		—
Certificates of deposit	2,676		—		2,676		—
Total assets	$	25,168	$	1,837	$	23,331	$	—

There were no transfers in or out of Level 1 and Level 2 securities during the three months ended March 31, 2015 and 2014.