3. Balance Sheet Details

Short-Term Investments

Short-term investments consist of U.S. government agency and government sponsored enterprise obligations. The Company accounts for these short-term investments as required by FASB ASC Topic No. 320, Investments-Debt and Equity Securities. These debt and equity securities are not classified as either held-to-maturity securities or trading securities. As such, they are classified as available-for-sale securities. Available-for-sale securities are recorded at fair value, with unrealized gains or losses recorded as a separate component of accumulated other comprehensive income in stockholders’ equity until realized. Available-for-sale securities with contractual maturities of less than 12 months were as follows (in thousands):


	December 31, 2013							December 31, 2012
		Amortized cost basis		Gross unrealized loss			Fair value		Amortized cost basis		Gross unrealized loss			Fair value
Corporate notes, bonds and paper	$	919	$	(1	)	$	918	$	9,091	$	(7	)	$	9,084
Government securities/money market		2,160		-			2,160		4,245		(1	)		4,244

Total	$	3,079	$	(1	)	$	3,078	$	13,336	$	(8	)	$	13,328

There was a de minimis amount of realized gains recognized for the year ended December 31 2012. There were no realized gains (losses) recognized in interest and other income for the years ended December 31, 2013 and 2011.

Equipment and Improvements

Equipment and improvements consist of the following (in thousands):


	December 31,
	2013			2012
Computer hardware, software, and equipment	$	16,529		$	16,122
Leasehold improvements		5,317			6,368
Office furniture and fixtures		1,213			1,611

		23,059			24,101
Less accumulated depreciation and amortization		(16,036	)		(12,890	)

Equipment and improvements, net	$	7,023		$	11,211

Depreciation and amortization expense on equipment and improvements was $4.0 million, $4.4 million and $4.1 million for the years ended December 31, 2013, 2012 and 2011 respectively.

The Company recorded an impairment charge related to our restructuring against certain equipment and improvements in the amount of $1.0 million for the year ended December 31, 2013. See Note 2 above, “Restructuring.”

Other Assets

These are office rent deposits.

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	December 31,
	2013		2012
Salaries and benefits	$	3,651	$	4,061
Restructuring		1,978		8
Pennsylvania grant liability		1,000		-
Royalties and revenue sharing		803		544
Income taxes		176		167
Marketing expenses, rebates and other		126		49

Total accrued liabilities	$	7,734	$	4,829

Deferred Rent and Other Long Term Liabilities

Deferred rent and other long term liabilities consist of the following (in thousands):


	December 31,
	2013		2012
Deferred rent	$	1,986	$	2,378
Restructuring - beyond one year		1,394		-
Pennsylvania grant liability		-		1,000
Deferred revenue - long term		3		21

Total deferred rent and other long term liabilities	$	3,383	$	3,399