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MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS INVESTMENTS AND FAIR VALUE MEASUREMENTS
Marketable Debt Securities

Marketable debt securities as of September 30, 2021 consisted of the following (in thousands):

September 30, 2021
Amortized
Cost		Unrealized Holding GainsUnrealized Holding LossesFair Value
Corporate debt securities6,935 531 — 7,466 
$6,935 $531 $— $7,466 

We invest surplus funds in excess of operational requirements in a diversified portfolio of marketable securities, with the objectives of delivering competitive returns, maintaining a high degree of liquidity, and seeking to avoid the permanent
impairment of principal. Fair values were determined for each individual security in the investment portfolio based on quoted market prices.

Our investments in marketable debt securities are classified and accounted for as available-for-sale. Our marketable debt securities are classified either short-term or long-term based on each instrument’s underlying contractual maturity date. As of September 30, 2021, we reported $7.5 million investment in debt securities as Other assets on our Condensed Consolidated Balance Sheets as the management intends to hold these investment for more than 12 months from the reporting date. We did
not have marketable securities as of December 31, 2020.

Unrealized gains and losses on marketable debt securities classified as available-for-sale are recognized as Other comprehensive income (loss) on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

We may sell certain marketable debt securities prior to their stated maturities for reasons including, but not limited to, managing liquidity, credit risk, duration and asset allocation.

The amortized costs and fair value of our marketable debt securities, by contractual maturity, as of September 30, 2021 (in thousands) are as follows:

September 30, 2021

Amortized
Cost		Fair
Value
Less than 1 year$— $— 
1 to 5 years6,935 7,466 
Total$6,935 $7,466 

Marketable Equity Securities

Marketable equity securities as of September 30, 2021 consisted of the following (in thousands):


September 30, 2021
Initial CostsCumulative Unrealized Holding GainsFair Value
Equity securities$27,538 $490 $28,028 
$27,538 $490 $28,028 

Our investments in marketable equity securities are classified based on the nature of the securities and their availability for use in current operations. The marketable equity securities are measured at fair value with gains and losses recognized in Interest and other income (loss), net on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

We regularly review our investment portfolio to identify and evaluate investments that have indicators of possible impairment. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, we will record an impairment charge and establish a new cost basis in the investment.
Derivative Financial Instruments

We invest in derivatives that are not designated as hedging instruments and which consisted of call and put options. When we sell call and put options, the premium received is reported as Other current liabilities on our Condensed Consolidated Balance Sheets. When we purchase put or call options, the premium paid is reported as Marketable securities current on our Condensed Consolidated Balance Sheets. The carrying value of these options are adjusted to the fair value at the end of each reporting period until the options expire. Gains and losses recognized from the periodic adjustments to fair value are recognized as Interest and other income (loss), net on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). At September 30, 2021, we had $1.8 million derivative instruments which consisted of call and put options sold at their fair value as of the balance sheet date. These derivative instruments are reported as Other current liabilities on our Condensed Consolidated Balance Sheets.


Cost		Unrealized Holding LossesFair Value
Liabilities
Derivative instruments$1,757 $2 $1,759 
$1,757 $2 $1,759 



A summary of realized and unrealized gains and losses from our equity securities and derivative instruments are as follows (in thousands):

Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Net unrealized gains (losses) recognized on equity investments held as of the end of the period$490 $— $490 $— 
Net realized gains (losses) recognized on derivative instruments9 — 9 — 
Net unrealized gains (losses) recognized on derivative instruments(2)— $(2)— 
Total net gains (losses) recognized in Interest and other income (loss), net$497 $— $497 $— 


Fair Value Measurements

Our financial instruments measured at fair value on a recurring basis consisted of money market funds, equity securities, corporate debt securities and derivatives. We value these securities based on quoted prices in active markets for identical assets. Such instruments are generally classified within Level 1 of the fair value hierarchy. Money market accounts are classified as cash equivalents.

Financial instruments valued based on quoted prices in markets that are less active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency are generally classified within Level 2 of the fair value hierarchy and include corporate debt securities and derivative instruments. We had no Level 2 financial instruments at December 31, 2020.

Financial instruments valued based on unobservable inputs which reflect the reporting entity’s own assumptions or data that market participants would use in valuing an instrument are generally classified within Level 3 of the fair value hierarchy. As of September 30, 2021 and December 31, 2020, we did not hold any Level 3 financial instruments.
Financial instruments measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 are classified based on the valuation technique in the table below (in thousands):

 September 30, 2021 
Fair Value Measurements Using
Quoted Prices
 in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Assets:
Equity securities$28,028 $— $— $28,028 
Corporate debt securities— 7,466 — 7,466 
Total assets at fair value$28,028 $7,466 $— $35,494 
Liabilities
Derivative instruments$— $1,759 $— $1,759 
Total liabilities at fair value$— $1,759 $— $1,759 

 
 December 31, 2020 
Fair Value Measurements Using
Quoted Prices 
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Assets:
Money market accounts (1)
45,614 $— $— $45,614 
Total assets at fair value $45,614 $— $— $45,614 
(1) The above table excludes $13.9 million of cash held in banks.