| 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,
2015 |
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As of
September 30,
2016 |
|
(in thousands) |
Cash and cash equivalents |
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|
|
|
|
Cash |
$ |
104,361 |
|
|
$ |
130,132 |
|
Money market funds |
180,021 |
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|
33,446 |
|
Commercial paper |
31,089 |
|
|
35,904 |
|
Corporate debt securities |
2,000 |
|
|
8,213 |
|
U.S. government and government agency debt securities |
17,196 |
|
|
— |
|
Total cash and cash equivalents |
$ |
334,667 |
|
|
$ |
207,695 |
|
Short-term investments |
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|
|
|
|
Commercial paper |
$ |
4,792 |
|
|
$ |
1,000 |
|
Corporate debt securities |
31,052 |
|
|
49,052 |
|
Total short-term investments |
$ |
35,844 |
|
|
$ |
50,052 |
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Long-term investments |
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|
|
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Corporate debt securities |
$ |
46,369 |
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|
$ |
6,273 |
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Total long-term investments |
$ |
46,369 |
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|
$ |
6,273 |
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Cash, cash equivalents and investments |
$ |
416,880 |
|
|
$ |
264,020 |
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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 September 30, 2016.
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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 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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As of September 30, 2016 |
|
Adjusted
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
(in thousands) |
Money market funds |
$ |
33,446 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
33,446 |
|
Commercial paper |
36,904 |
|
|
— |
|
|
— |
|
|
36,904 |
|
Corporate debt securities |
63,531 |
|
|
26 |
|
|
(19 |
) |
|
63,538 |
|
Total cash equivalents and marketable securities |
$ |
133,881 |
|
|
$ |
26 |
|
|
$ |
(19 |
) |
|
$ |
133,888 |
|
The following table presents available-for-sale investments by contractual maturity date as of December 31, 2015 and September 30, 2016.
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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 September 30, 2016 |
|
Adjusted
Cost
|
|
Fair Value |
|
(in thousands) |
Due in one year or less |
$ |
127,629 |
|
|
$ |
127,615 |
|
Due after one year through three years |
6,252 |
|
|
6,273 |
|
Total |
$ |
133,881 |
|
|
$ |
133,888 |
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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 September 30, 2016.
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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 |
) |
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|
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As of September 30, 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 |
$ |
33,240 |
|
|
$ |
(12 |
) |
|
$ |
8,843 |
|
|
$ |
(7 |
) |
|
$ |
42,083 |
|
|
$ |
(19 |
) |
Total |
$ |
33,240 |
|
|
$ |
(12 |
) |
|
$ |
8,843 |
|
|
$ |
(7 |
) |
|
$ |
42,083 |
|
|
$ |
(19 |
) |
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, 2016 were primarily a result of unfavorable changes in interest rates subsequent to the initial purchase of these securities. As of September 30, 2016, we owned 32 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 September 30, 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 and nine months ended September 30, 2016, we did not recognize any impairment charges. During the three and nine months ended September 30, 2016, we had proceeds from the sale of available-for-sale securities of $3.0 million and $3.5 million. We did not recognize a realized gain or loss in connection with these sales.
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