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, 2016

Cash and Cash Equivalents [Abstract]

Cash, cash equivalents and investments consisted of the following:



	As of December 31, 2015		As of March 31, 2016
	(in thousands)
Cash and cash equivalents
Cash	$	104,361	$	109,287
Money market funds	180,021		112,561
Commercial paper	31,089		68,547
Corporate debt securities	2,000		11,058
U.S. government and government agency debt securities	17,196		2,001
Total cash and cash equivalents	$	334,667	$	303,454
Short-term investments
Commercial paper	$	4,792	$	8,795
Corporate debt securities	31,052		37,010
Total short-term investments	$	35,844	$	45,805
Long-term investments
Corporate debt securities	$	46,369	$	33,238
Total long-term investments	$	46,369	$	33,238
Cash, cash equivalents and investments	$	416,880	$	382,497

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, 2015 and March 31, 2016.



	As of December 31, 2015
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	180,021	$	—	$	—		$	180,021
Commercial paper	35,881		—		—			35,881
Corporate debt securities	79,760		8		(347		)	79,421
U.S. government and government agency debt securities	17,198		—		(2		)	17,196
Total cash equivalents and marketable securities	$	312,860	$	8	$	(349	)	$	312,519



	As of March 31, 2016
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Money market funds	$	112,561	$	—	$	—		$	112,561
Commercial paper	77,342		—		—			77,342
Corporate debt securities	81,342		36		(72		)	81,306
U.S. government and government agency debt securities	2,001		—		—			2,001
Total cash equivalents and marketable securities	$	273,246	$	36	$	(72	)	$	273,210

The following table presents available-for-sale investments by contractual maturity date as of December 31, 2015 and March 31, 2016.



	As of December 31, 2015
	Adjusted Cost		Fair Value
	(in thousands)
Due in one year or less	$	266,205	$	266,150
Due after one year through three years	46,655		46,369
Total	$	312,860	$	312,519



	As of March 31, 2016
	Adjusted Cost		Fair Value
	(in thousands)
Due in one year or less	$	239,998	$	239,972
Due after one year through three years	33,248		33,238
Total	$	273,246	$	273,210

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, 2015 and March 31, 2016.



	As of December 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)
Corporate debt securities	$	64,804	$	(293	)	$	8,531	$	(54	)	$	73,335	$	(347	)
U.S. government and government agency debt securities	16,241		(2		)	—		—			16,241		(2		)
Total	$	81,045	$	(295	)	$	8,531	$	(54	)	$	89,576	$	(349	)



	As of March 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	$	24,891	$	(30	)	$	19,488	$	(42	)	$	44,379	$	(72	)
Total	$	24,891	$	(30	)	$	19,488	$	(42	)	$	44,379	$	(72	)

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, 2016 were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. As of March 31, 2016, we owned 37 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, 2016 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, 2016, we did not recognize any impairment charges.