Sirius XM Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Cash, Cash Equivalents and Investments

Cash, Cash Equivalents and Investments

9 Months Ended

Sep. 30, 2014

Cash and Cash Equivalents [Abstract]

Cash, cash equivalents and investments consisted of the following:



	As of December 31, 2013		As of September 30, 2014
	(in thousands)
Cash and cash equivalents:
Cash	$	89,176	$	51,004
Money market funds	98,437		91,780
Commercial paper	54,247		6,100
Corporate debt securities	3,895		—
Total cash and cash equivalents	$	245,755	$	148,884
Short-term investments:
Commercial paper	$	47,526	$	54,643
Corporate debt securities	50,436		112,867
U.S. government and government agency debt securities	700		—
Total short-term investments	$	98,662	$	167,510
Long-term investments:
Corporate debt securities	$	100,690	$	107,840
U.S. government and government agency debt securities	4,996		13,104
Total long-term investments	$	105,686	$	120,944
Cash, cash equivalents and investments	$	450,103	$	437,338

Our short-term investments have maturities of less than twelve months 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, 2013 and September 30, 2014.



	As of December 31, 2013
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	98,437	$	—	$	—		$	98,437
Commercial paper	101,773		—		—			101,773
Corporate debt securities	155,273		6		(258		)	155,021
U.S. government and government agency debt securities	5,700		—		(4		)	5,696
Total cash equivalents and marketable securities	$	361,183	$	6	$	(262	)	$	360,927



	As of September 30, 2014
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	91,780	$	—	$	—		$	91,780
Commercial paper	60,743		—		—			60,743
Corporate debt securities	220,969		24		(286		)	220,707
U.S. government and government agency debt securities	13,115		2		(13		)	13,104
Total cash equivalents and marketable securities	$	386,607	$	26	$	(299	)	$	386,334

The following table presents available-for-sale investments by contractual maturity date as of December 31, 2013 and September 30, 2014.



	As of December 31, 2013
	Adjusted Cost		Fair Value
	(in thousands)
Due in one year or less	$	255,278	$	255,241
Due after one year through three years	105,905		105,686
Total	$	361,183	$	360,927



	As of September 30, 2014
	Adjusted Cost		Fair Value
	(in thousands)
Due in one year or less	$	265,438	$	265,390
Due after one year through three years	121,169		120,944
Total	$	386,607	$	386,334

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 September 30, 2014 were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. As of September 30, 2014, we owned 119 securities that were in an unrealized loss position. We do not intend nor expect to need to sell these securities before recovering the associated unrealized losses. We expect to recover the full carrying value of these securities. As a result, no portion of the unrealized losses at September 30, 2014 is deemed to be other-than-temporary and the unrealized losses are not deemed to be credit losses. No available-for-sale securities have been in an unrealized loss position for twelve months or more. 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 nine months ended September 30, 2014, we did not recognize any impairment charges.