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

3 Months Ended

Mar. 31, 2015

Cash and Cash Equivalents [Abstract]

Cash, cash equivalents and investments consisted of the following:



	As of December 31, 2014		As of March 31, 2015
	(in thousands)
Cash and cash equivalents
Cash	$	72,487	$	93,900
Money market funds	89,113		93,160
Commercial paper	9,349		29,199
Corporate debt securities	5,008		4,755
Total cash and cash equivalents	$	175,957	$	221,014
Short-term investments
Commercial paper	$	45,443	$	23,635
Corporate debt securities	128,691		132,433
U.S. government and government agency debt securities	4,497		4,498
Total short-term investments	$	178,631	$	160,566
Long-term investments
Corporate debt securities	$	100,998	$	96,455
U.S. government and government agency debt securities	3,245		3,249
Total long-term investments	$	104,243	$	99,704
Cash, cash equivalents and investments	$	458,831	$	481,284

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, 2014 and March 31, 2015.



	As of December 31, 2014
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	89,113	$	—	$	—		$	89,113
Commercial paper	54,792		—		—			54,792
Corporate debt securities	235,135		6		(444		)	234,697
U.S. government and government agency debt securities	7,751		—		(9		)	7,742
Total cash equivalents and marketable securities	$	386,791	$	6	$	(453	)	$	386,344



	As of March 31, 2015
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	93,160	$	—	$	—		$	93,160
Commercial paper	52,834		—		—			52,834
Corporate debt securities	233,528		269		(154		)	233,643
U.S. government and government agency debt securities	7,751		2		(6		)	7,747
Total cash equivalents and marketable securities	$	387,273	$	271	$	(160	)	$	387,384

The following table presents available-for-sale investments by contractual maturity date as of December 31, 2014 and March 31, 2015.



	As of December 31, 2014
	Adjusted Cost		Fair Value
	(in thousands)
Due in one year or less	$	282,206	$	282,101
Due after one year through three years	104,585		104,243
Total	$	386,791	$	386,344



	As of March 31, 2015
	Adjusted Cost		Fair Value
	(in thousands)
Due in one year or less	$	287,571	$	287,680
Due after one year through three years	99,702		99,704
Total	$	387,273	$	387,384

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, 2014 and March 31, 2015.



	As of December 31, 2014
	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)
Money market funds	$	—	$	—		$	—	$	—		$	—	$	—
Commercial paper	—		—			—		—			—		—
Corporate debt securities	192,699		(422		)	12,148		(22		)	204,847		(444		)
U.S. government and government agency debt securities	5,240		(9		)	—		—			5,240		(9		)
Total	$	197,939	$	(431	)	$	12,148	$	(22	)	$	210,087	$	(453	)



	As of March 31, 2015
	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)
Money market funds	$	—	$	—		$	—	$	—		$	—	$	—
Commercial paper	—		—			—		—			—		—
Corporate debt securities	117,964		(143		)	10,737		(11		)	128,701		(154		)
U.S. government and government agency debt securities	3,249		(1		)	1,995		(5		)	5,244		(6		)
Total	$	121,213	$	(144	)	$	12,732	$	(16	)	$	133,945	$	(160	)

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, 2015 were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. As of March 31, 2015, we owned 101 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 March 31, 2015 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 months ended March 31, 2015, we did not recognize any impairment charges.