Note 6. Investment Securities

Our marketable investment securities, restricted cash and cash equivalents, and other investments consisted of the following:

	As of
	March 31,		December 31,
	2014		2013
	(In thousands)
Marketable investment securities—current:
Corporate bonds	$	900,148	$	833,791
VRDNs	31,110		34,705
Strategic equity securities	33,247		33,613
Other	41,753		84,424
Total marketable investment securities—current	1,006,258		986,533
Restricted marketable investment securities (1)	7,666		7,965
Total	1,013,924		994,498

Restricted cash and cash equivalents (1)	11,438		8,172

Other investments—noncurrent:
Cost method	25,977		25,977
Equity method	139,546		143,794
Total other investments—noncurrent	165,523		169,771
Total marketable investment securities, restricted cash and cash equivalents, and other investments	$	1,190,885	$	1,172,441

(1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash and marketable investment securities” in our Condensed Consolidated Balance Sheets.

Marketable Investment Securities

Our marketable investment securities portfolio consists of various debt and equity instruments, all of which are classified as available-for-sale.

Corporate Bonds

Our corporate bond portfolio includes debt instruments issued by individual corporations, primarily in the industrial and financial services industries.

Variable Rate Demand Notes (“VRDNs”)

VRDNs are long-term floating rate bonds with embedded put options that allow the bondholder to sell the security at par plus accrued interest. All of the put options are secured by a pledged liquidity source. Our VRDN portfolio is comprised of investments in municipalities and corporations, which are backed by financial institutions or other highly rated companies that serve as the pledged liquidity source. While they are classified as marketable investment securities, the put option allows VRDNs to be liquidated generally on a same day or on a five business day settlement basis.

Strategic Equity Securities

Our strategic investment portfolio consists of investments in shares of common stock of public companies, which are highly speculative and have experienced and continue to experience volatility. The value of our investment portfolio depends on the value of such shares of common stock.

Other

Our other current marketable investment securities portfolio includes investments in various debt instruments, including government bonds.

Restricted Cash and Marketable Investment Securities

As of March 31, 2014 and December 31, 2013, our restricted marketable investment securities, together with our restricted cash, included amounts required as collateral for our letters of credit or surety bonds.

Other Investments - Noncurrent

We have several strategic investments in certain equity securities that are accounted for using either the equity or the cost method of accounting. Our ability to realize value from our strategic investments in companies that are not publicly traded depends on the success of those companies’ businesses and their ability to obtain sufficient capital to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them.

Unrealized Gains (Losses) on Marketable Investment Securities

The components of our available-for-sale investments are summarized in the table below.

	Amortized		Unrealized					Estimated
	Cost		Gains		Losses			Fair Value
	(In thousands)
As of March 31, 2014
Debt securities:
Corporate bonds	$	900,002	$	451	$	(305	)	$	900,148
VRDNs	31,110		—		—			31,110
Other (including restricted)	49,385		35		(1		)	49,419
Equity securities - strategic	15,272		17,975		—			33,247
Total marketable investment securities	$	995,769	$	18,461	$	(306	)	$	1,013,924
As of December 31, 2013
Debt securities:
Corporate bonds	$	833,888	$	227	$	(324	)	$	833,791
VRDNs	34,705		—		—			34,705
Other (including restricted)	92,876		14		(501		)	92,389
Equity securities - strategic	15,272		18,341		—			33,613
Total marketable investment securities	$	976,741	$	18,582	$	(825	)	$	994,498

As of March 31, 2014, restricted and non-restricted marketable investment securities included debt securities of $840.0 million with contractual maturities of one year or less and $140.7 million with contractual maturities greater than one year. We may realize proceeds from certain investments prior to their contractual maturity as a result of our ability to sell these securities prior to their contractual maturity.

Marketable Investment Securities in a Loss Position

The following table reflects the length of time that our available-for-sale securities have been in an unrealized loss position. We do not intend to sell these securities before they recover or mature, and it is more likely than not that we will hold these securities until they recover or mature. In addition, we are not aware of any specific factors indicating that the underlying issuers of these securities would not be able to pay interest as it becomes due or repay the principal at maturity. Therefore, we believe that these changes in the estimated fair values of these securities are primarily related to temporary market fluctuations.

	As of
	March 31, 2014					December 31, 2013
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Less than 12 months	$	346,835	$	(306	)	$	571,592	$	(825	)
12 months or more	3,987		—			—		—
Total	$	350,822	$	(306	)	$	571,592	$	(825	)

Realized Gains (Losses) on Marketable Investment Securities

We recognized minimal gains from the sales of our available-for-sale marketable investment securities for the three months ended March 31, 2014 and $19.1 million for the three months ended March 31, 2013. We recognized zero and minimal losses from the sales of our available-for-sale marketable investment securities for the three months ended March 31, 2014 and 2013, respectively.

Proceeds from sales of our available-for-sale marketable investment securities totaled $0.5 million and $41.5 million for the three months ended March 31, 2014 and 2013, respectively.

Fair Value Measurements

Our current marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of March 31, 2014 and December 31, 2013, we did not have investments that were categorized within Level 3 of the fair value hierarchy.

	As of
	March 31, 2014						December 31, 2013
	Total		Level 1		Level 2		Total		Level 1		Level 2
	(In thousands)
Cash equivalents (including restricted)	$	616,316	$	7,906	$	608,410	$	548,714	$	49,338	$	499,376
Debt securities:
Corporate bonds	$	900,148	$	—	$	900,148	$	833,791	$	—	$	833,791
VRDNs	31,110		—		31,110		34,705		—		34,705
Other (including restricted)	49,419		—		49,419		92,389		—		92,389
Equity securities - strategic	33,247		33,247		—		33,613		33,613		—
Total marketable investment securities	$	1,013,924	$	33,247	$	980,677	$	994,498	$	33,613	$	960,885