| Cash, Cash Equivalents and Investments |
Cash, Cash Equivalents and Investments
Cash, cash equivalents and investments consisted of the following:
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As of
December 31,
2017 |
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As of
March 31,
2018 |
|
(in thousands) |
Cash and cash equivalents |
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|
|
|
Cash |
$ |
146,294 |
|
|
$ |
231,740 |
|
Money market funds |
353,303 |
|
|
105,865 |
|
Commercial paper |
— |
|
|
117,318 |
|
Total cash and cash equivalents |
$ |
499,597 |
|
|
$ |
454,923 |
|
Short-term investments |
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|
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Commercial paper |
$ |
— |
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|
$ |
77,065 |
|
Corporate debt securities |
1,250 |
|
|
12,417 |
|
Total short-term investments |
$ |
1,250 |
|
|
$ |
89,482 |
|
Cash, cash equivalents and investments |
$ |
500,847 |
|
|
$ |
544,405 |
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Our short-term investments have maturities of twelve months or less and are classified as available-for-sale.
The following table summarizes our available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category as of March 31, 2018. As of December 31, 2017, the adjusted cost and fair value by significant investment category are the same.
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As of March 31, 2018 |
|
Adjusted
Cost
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
(in thousands) |
Money market funds |
$ |
105,865 |
|
|
$ |
— |
|
|
$ |
105,865 |
|
Commercial paper |
194,384 |
|
|
(1 |
) |
|
194,383 |
|
Corporate debt securities |
12,432 |
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|
(15 |
) |
|
12,417 |
|
Total cash equivalents and marketable securities |
$ |
312,681 |
|
|
$ |
(16 |
) |
|
$ |
312,665 |
|
All of our investments have maturities of twelve months or less as of December 31, 2017 and March 31, 2018.
The following table summarizes 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 March 31, 2018. We had no securities that had been in a continuous unrealized loss position for greater than 12 months as of December 31, 2017.
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As of March 31, 2018 |
|
Twelve Months or Less |
|
Total |
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Fair
Value |
|
Gross Unrealized Losses |
|
Fair
Value |
|
Gross Unrealized Losses |
|
(in thousands) |
Commercial paper |
$ |
4,981 |
|
|
$ |
(1 |
) |
|
$ |
4,981 |
|
|
$ |
(1 |
) |
Corporate debt securities |
12,417 |
|
|
(15 |
) |
|
12,417 |
|
|
(15 |
) |
Total |
$ |
17,398 |
|
|
$ |
(16 |
) |
|
$ |
17,398 |
|
|
$ |
(16 |
) |
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 March 31, 2018 were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. As of March 31, 2018, we owned six 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 March 31, 2018 is deemed to be other-than-temporary, and the unrealized losses are not deemed to be credit losses. When evaluating 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 months ended March 31, 2018, we did not recognize any impairment charges. There were no sales of available-for-sale securities during the three months ended March 31, 2018.
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