Quarterly report pursuant to Section 13 or 15(d)

Cash, Cash Equivalents and Investments

v3.7.0.1
Cash, Cash Equivalents and Investments
6 Months Ended
Jun. 30, 2017
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Investments Cash, Cash Equivalents and Investments
 
Cash, cash equivalents and investments consisted of the following:
 
 
As of 
 December 31, 
 2016
 
As of 
 June 30, 
 2017
 
(in thousands)
Cash and cash equivalents
 

 
 

Cash
$
144,192

 
$
148,057

Money market funds
55,752

 
61,524

Total cash and cash equivalents
$
199,944

 
$
209,581

Short-term investments
 

 
 

Corporate debt securities
$
37,109

 
$
18,056

Total short-term investments
$
37,109

 
$
18,056

Long-term investments
 

 
 

Corporate debt securities
$
6,252

 
$

Total long-term investments
$
6,252

 
$

Cash, cash equivalents and investments
$
243,305

 
$
227,637


 
Our short-term investments have maturities of twelve months or less and are classified as available-for-sale. Our long-term investments have maturities of greater than twelve months and are classified as available-for-sale.
 
The following tables summarize our available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category as of December 31, 2016 and June 30, 2017.
 
 
As of December 31, 2016
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
(in thousands)
Money market funds
$
55,752

 
$

 
$

 
$
55,752

Corporate debt securities
43,413

 
3

 
(55
)
 
43,361

Total cash equivalents and marketable securities
$
99,165

 
$
3

 
$
(55
)
 
$
99,113


 
As of June 30, 2017
 
Adjusted
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
(in thousands)
Money market funds
$
61,524

 
$

 
$

 
$
61,524

Corporate debt securities
18,066

 


 
(10
)
 
18,056

Total cash equivalents and marketable securities
$
79,590

 
$

 
$
(10
)
 
$
79,580


 
The following table presents available-for-sale investments by contractual maturity date as of December 31, 2016 and June 30, 2017.
 
 
As of December 31, 2016
 
Adjusted
Cost
 
Fair Value
 
(in thousands)
Due in one year or less
$
92,914

 
$
92,861

Due after one year through three years
6,251

 
6,252

Total
$
99,165

 
$
99,113

 
As of June 30, 2017
 
Adjusted
Cost
 
Fair Value
 
(in thousands)
Due in one year or less
$
79,590

 
$
79,580

Total
$
79,590

 
$
79,580


 
The following tables summarize our available-for-sale securities’ fair value and gross unrealized losses aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2016 and June 30, 2017.

 
As of December 31, 2016
 
Twelve Months or Less
 
More than Twelve Months
 
Total
 
Fair
Value
 
Gross Unrealized Losses
 
Fair
Value
 
Gross Unrealized Losses
 
Fair
Value
 
Gross Unrealized Losses
 
(in thousands)
Corporate debt securities
$
34,257

 
$
(52
)
 
$
4,099

 
$
(3
)
 
$
38,356

 
$
(55
)
Total
$
34,257

 
$
(52
)
 
$
4,099

 
$
(3
)
 
$
38,356

 
$
(55
)

 
As of June 30, 2017
 
Twelve Months or Less
 
More than Twelve Months
 
Total
 
Fair
Value
 
Gross Unrealized Losses
 
Fair
Value
 
Gross Unrealized Losses
 
Fair
Value
 
Gross Unrealized Losses
 
(in thousands)
Corporate debt securities
$
18,056

 
$
(10
)
 
$

 
$

 
$
18,056

 
$
(10
)
Total
$
18,056

 
$
(10
)
 
$

 
$

 
$
18,056

 
$
(10
)


Our investment policy requires investments to be investment grade, primarily rated "A1" by Standard & Poor’s or "P1" by Moody’s or better for short-term investments and rated "A" by Standard & Poor’s or "A2" by Moody’s or better for long-term investments, with the objective of minimizing the potential risk of principal loss. In addition, the investment policy limits the amount of credit exposure to any one issuer.
 
The unrealized losses on our available-for-sale securities as of June 30, 2017 were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. As of June 30, 2017, we owned 12 securities that were in an unrealized loss position. Based on our cash flow needs, we may be required to sell a portion of these securities prior to maturity. However, we expect to recover the full carrying value of these securities. As a result, no portion of the unrealized losses at June 30, 2017 is deemed to be other-than-temporary and the unrealized losses are not deemed to be credit losses. When evaluating the investments for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and our intent to sell, or whether it is more likely than not we will be required to sell, the investment before recovery of the investment’s amortized cost basis. During the three and six months ended June 30, 2017, we did not recognize any impairment charges.