Investments | 3 Months Ended |
Mar. 31, 2014 |
Investments [Abstract] | ' |
Investments | ' |
Investments |
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Marketable Securities |
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All of the Company's marketable securities at March 31, 2014, and December 31, 2013, were classified as "available-for-sale" securities, with changes in fair value recognized in stockholders' equity as "other comprehensive income (loss)". Marketable securities at March 31, 2014, consisted of the following: |
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| Cost | | Gross | | Gross | | Estimated | | | | | | | | |
Unrealized | Unrealized | Fair | | | | | | | | |
Gains | Losses | Value | | | | | | | | |
| (in thousands) | | | | | | | | |
Short-term deposits | $ | 41,035 | | | $ | — | | | $ | — | | | $ | 41,035 | | | | | | | | | |
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Mutual funds | 15,722 | | | 4,945 | | | — | | | 20,667 | | | | | | | | | |
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United States government securities | 23,889 | | | 26 | | | — | | | 23,915 | | | | | | | | | |
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Corporate securities | 105,272 | | | 13,881 | | | (3,957 | ) | | 115,196 | | | | | | | | | |
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Corporate obligations | 35,949 | | | 1,642 | | | (3 | ) | | 37,588 | | | | | | | | | |
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Commercial paper | 4,499 | | | — | | | — | | | 4,499 | | | | | | | | | |
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Total available-for-sale securities | 226,366 | | | 20,494 | | | (3,960 | ) | | 242,900 | | | | | | | | | |
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Amounts classified as cash equivalents | (43,935 | ) | | — | | | — | | | (43,935 | ) | | | | | | | | |
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Amounts classified as marketable securities | $ | 182,431 | | | $ | 20,494 | | | $ | (3,960 | ) | | $ | 198,965 | | | | | | | | | |
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Marketable securities at December 31, 2013, consisted of the following: |
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| Cost | | Gross | | Gross | | Estimated | | | | | | | | |
Unrealized | Unrealized | Fair | | | | | | | | |
Gains | Losses | Value | | | | | | | | |
| (in thousands) | | | | | | | | |
Short-term deposits | $ | 60,909 | | | $ | — | | | $ | — | | | $ | 60,909 | | | | | | | | | |
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Mutual funds | 15,722 | | | 5,061 | | | — | | | 20,783 | | | | | | | | | |
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United States government securities | 50,356 | | | 23 | | | — | | | 50,379 | | | | | | | | | |
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Corporate securities | 69,806 | | | 9,961 | | | (5,208 | ) | | 74,559 | | | | | | | | | |
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Corporate obligations | 31,356 | | | 885 | | | (276 | ) | | 31,965 | | | | | | | | | |
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Commercial paper | 1,799 | | | — | | | — | | | 1,799 | | | | | | | | | |
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Total available-for-sale securities | 229,948 | | | 15,930 | | | (5,484 | ) | | 240,394 | | | | | | | | | |
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Amounts classified as cash equivalents | (61,909 | ) | | — | | | — | | | (61,909 | ) | | | | | | | | |
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Amounts classified as marketable securities | $ | 168,039 | | | $ | 15,930 | | | $ | (5,484 | ) | | $ | 178,485 | | | | | | | | | |
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Proceeds from sales of marketable securities were $40.6 million and $8.3 million for the three months ended March 31, 2014 and 2013, respectively. The company determines gains and losses from sales of marketable securities based on specific identification of the securities sold. Gross realized gains and losses from sales of marketable securities, all of which are reported as a component of "Other income (expense), net" in the consolidated statements of operations for the three months ended March 31, 2014 and 2013, were as follows: |
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| Three Months Ended March 31, | | | | | | | | | | | | | | | | |
| 2014 | | 2013 | | | | | | | | | | | | | | | | |
| (in thousands) | | | | | | | | | | | | | | | | |
Gross realized gains | $ | 3,200 | | | $ | 1,258 | | | | | | | | | | | | | | | | | |
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Gross realized losses | (209 | ) | | (42 | ) | | | | | | | | | | | | | | | | |
Realized gains, net | $ | 2,991 | | | $ | 1,216 | | | | | | | | | | | | | | | | | |
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The fair value of the Company’s marketable securities with unrealized losses at March 31, 2014, and the duration of time that such losses had been unrealized, were as follows: |
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| Less than 12 Months | | 12 Months or Greater | | Total |
| Fair | | Gross | | Fair | | Gross | | Fair | | Gross |
Value | Unrealized | Value | Unrealized | Value | Unrealized |
| Losses | | Losses | | Losses |
| (in thousands) |
Corporate securities | $ | 30,339 | | | $ | (3,299 | ) | | $ | 551 | | | $ | (658 | ) | | $ | 30,890 | | | $ | (3,957 | ) |
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Corporate obligations | 1,045 | | | (3 | ) | | — | | | — | | | 1,045 | | | (3 | ) |
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Total | $ | 31,384 | | | $ | (3,302 | ) | | $ | 551 | | | $ | (658 | ) | | $ | 31,935 | | | $ | (3,960 | ) |
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The fair value of the Company’s marketable securities with unrealized losses at December 31, 2013, and the duration of time that such losses had been unrealized, were as follows: |
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| Less than 12 Months | | 12 Months or Greater | | Total |
| Fair | | Gross | | Fair | | Gross | | Fair | | Gross |
Value | Unrealized | Value | Unrealized | Value | Unrealized |
| Losses | | Losses | | Losses |
| (in thousands) |
Corporate securities | $ | 15,609 | | | $ | (4,757 | ) | | $ | 803 | | | $ | (451 | ) | | $ | 16,412 | | | $ | (5,208 | ) |
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Corporate obligations | 10,477 | | | (276 | ) | | — | | | — | | | 10,477 | | | (276 | ) |
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Total | $ | 26,086 | | | $ | (5,033 | ) | | $ | 803 | | | $ | (451 | ) | | $ | 26,889 | | | $ | (5,484 | ) |
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Gross unrealized losses primarily related to losses on corporate securities. The Company has evaluated such securities, which primarily consist of investments in publicly-traded entities, as of March 31, 2014, and has determined that there was no indication of other-than-temporary impairments. This determination was based on several factors, including the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the entity, and the Company's intent and ability to hold the corporate securities for a period of time sufficient to allow for any anticipated recovery in market value. |
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The amortized cost and estimated fair value of available-for-sale debt securities at March 31, 2014, by contractual maturity, were as follows: |
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| Cost | | Estimated | | | | | | | | | | | | | | | | |
Fair Value | | | | | | | | | | | | | | | | |
| (in thousands) | | | | | | | | | | | | | | | | |
Debt securities: | | | | | | | | | | | | | | | | | | | |
Mature in one year or less | $ | 9,029 | | | $ | 9,030 | | | | | | | | | | | | | | | | | |
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Mature after one year through three years | 21,681 | | | 21,812 | | | | | | | | | | | | | | | | | |
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Mature in more than three years | 33,627 | | | 35,160 | | | | | | | | | | | | | | | | | |
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Total debt securities | 64,337 | | | 66,002 | | | | | | | | | | | | | | | | | |
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Securities with no contractual maturities | 162,029 | | | 176,898 | | | | | | | | | | | | | | | | | |
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Total | $ | 226,366 | | | $ | 242,900 | | | | | | | | | | | | | | | | | |
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Equity-Method Investments |
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In January 2013, the Company acquired a 40% membership interest in Again Faster LLC, a fitness equipment company, for total cash consideration of $4.0 million. In August 2013, the Company acquired 1,316,866 shares of the common stock of iGo, Inc. (“iGo”), in a cash tender offer for total consideration of $5.2 million. The shares of common stock of iGo acquired by the Company represent approximately 44.7% of the issued and outstanding shares of iGo. |
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The following table summarizes the Company's equity method investments. |
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| Ownership | | Carrying Value | | Income (Loss) Recognized | | |
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| March 31, 2014 | | December 31, 2013 | | March 31, 2014 | | December 31, 2013 | | March 31, 2014 | | March 31, 2013 | | |
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Again Faster | 40 | % | | 40 | % | | $ | 3,542 | | | $ | 3,671 | | | $ | (129 | ) | | $ | — | | | |
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iGo | 44.7 | % | | 44.7 | % | | 3,364 | | | 4,668 | | | (1,304 | ) | | — | | | |
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Total | | | | | $ | 6,906 | | | $ | 8,339 | | | $ | (1,433 | ) | | $ | — | | | |
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Based on the closing market price of iGo’s publicly-traded shares, the value of the Company’s investment in iGo was approximately $4.1 million at March 31, 2014. |
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The Company recognizes its equity in the losses of iGo on a one-quarter lag basis. The following table presents summarized income statement information for iGo for the three months ended December 31, 2013, the period on which the loss recognized by the Company for the three months ended March 31, 2014, was based. |
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| Amount | | | | | | | | | | | | | | | | | | | | |
| (in thousands) | | | | | | | | | | | | | | | | | | | | |
Revenues | $ | 3,210 | | | | | | | | | | | | | | | | | | | | | |
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Gross loss | $ | (1,146 | ) | | | | | | | | | | | | | | | | | | | | |
Net loss | $ | (2,917 | ) | | | | | | | | | | | | | | | | | | | | |
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Other Investments |
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The Company's other investments at March 31, 2014, include a $25.0 million cost-method investment in a limited partnership that co-invested with other private investment funds in a public company. The investment in the limited partnership had an approximate fair value of $28.5 million at March 31, 2014, based on the net asset value indicated in the monthly statement received from the partnership. The Company's other investments at March 31, 2014, also include investments in two venture capital funds totaling $0.8 million and a promissory note with an amortized cost of $3.0 million, which is a reasonable approximation of fair value at March 31, 2014. |