3. Cash and Cash Equivalents, Restricted Cash and Marketable Securities

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of ninety days or less to be cash equivalents. These investments, along with cash deposited in institutional money market funds, regular interest bearing and non-interest bearing depository accounts, are classified as cash and cash equivalents on the accompanying condensed consolidated balance sheet. The following table summarizes the Company’s cash and cash equivalents:

	June 30,		December 31,		Recurring Fair
	2014		2013		Value Measurement
	(in thousands)
Cash and cash equivalents:
Cash	$	209,538	$	86,074
Money market funds		88,619		88,769	Level 1
Commercial paper		38,171		11,499	Level 2
Total Cash and cash equivalents	$	336,328	$	186,342

The increase in cash, cash equivalents, and marketable securities from December 31, 2013 to June 30, 2014 is due to the proceeds from the sale of the Company’s common stock and Series B Cumulative Perpetual Convertible Preferred Stock. For further discussion of the Company’s equity transactions, see the Equity Transactions and Instruments footnote below.

Restricted Cash

The Company is required to maintain a minimum cash reserve for debt service related to its $1.8 billion loan facility (the “Credit Facility”). As of June 30, 2014 and December 31, 2013, the Company’s restricted cash balance, which includes a minimum cash reserve for debt service related to the Credit Facility and the interest earned on these amounts, was $83.6 million and $81.2 million, respectively. For further discussion on the cash reserve for debt service related to the Credit Facility, see the Commitments and Contingencies footnote below.

Marketable Securities

Marketable securities consist of fixed-income debt securities and commercial paper with an original maturity in excess of ninety days. These investments are classified as available-for-sale and are included in marketable securities within current assets on the accompanying condensed consolidated balance sheet. All investments are carried at fair value. Unrealized gains and losses, net of taxes, are reported as a component of other comprehensive income or loss. The specific identification method is used to determine the cost basis of the marketable securities sold. There were no material realized gains or losses on the sale of marketable securities for the three and six months ended June 30, 2014 and 2013. The Company regularly monitors and evaluates the fair value of its investments to identify other-than-temporary declines in value. The Company determined that no other-than-temporary declines in value existed at June 30, 2014.

The following table summarizes the Company’s marketable securities as of June 30, 2014 and December 31, 2013:

	June 30,		December 31,		Recurring Fair
	2014		2013		Value Measurement

	(in thousands)
Marketable securities:
Fixed-income debt securities	$	114,383	$	57,032	Level 2
Commercial paper		49,776		19,615	Level 2
Total Marketable securities	$	164,159	$	76,647

The following tables present the contractual maturities of the Company’s marketable securities:

	As of June 30, 2014
	Amortized		Unrealized		Estimated
	Cost		Gain		Fair Value

	(in thousands)
Fixed-income debt securities:
Mature after one year and within three years	$	114,300	$	83	$	114,383
Commercial paper:
Mature within one year		49,776		-		49,776
Total	$	164,076	$	83	$	164,159

	As of December 31, 2013
	Amortized		Unrealized		Estimated
	Cost		Loss		Fair Value
	(in thousands)
Fixed-income debt securities:
Mature within one year	$	3,004	$	-	$	3,004
Mature after one year and within three years		54,044		(16)		54,028
Commercial paper:
Mature within one year		19,615		-		19,615
Total	$	76,663	$	(16)	$	76,647

The Company’s gross and net-of-tax unrealized gain on marketable securities for the three months ended June 30, 2014 was approximately $3,000 and $2,000, respectively. The Company’s gross and net-of-tax unrealized loss on marketable securities for the three months ended June 30, 2013 was $271,000 and $169,000, respectively.

The Company’s gross and net-of-tax unrealized gain on marketable securities for the six months ended June 30, 2014 was approximately $99,000 and $62,000, respectively. The Company’s gross and net-of-tax unrealized loss on marketable securities for the six months ended June 30, 2013 was $285,000 and $178,000, respectively. The change in unrealized gain and loss on marketable securities, net of tax, is included within comprehensive income on the accompanying condensed consolidated statements of operations and comprehensive income.