Cash, cash equivalents and short-term investments

9 Months Ended

Mar. 31, 2020

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Cash, cash equivalents and short-term investments

Cash, cash equivalents and short-term investments

Cash and cash equivalents consist of unrestricted cash and highly liquid fixed-income investments with original maturities of three months or less at the time of purchase, including money market funds and commercial paper. Short-term investments consist of readily marketable debt securities with a remaining maturity of more than three months from the date of purchase. Short-term investments are classified as current assets, even though maturities may extend beyond one year, because they represent investments of cash available for operations. We classify all cash equivalents and short-term investments as “available for sale,” as these investments are free of trading restrictions. Marketable debt securities are carried at fair value, with the unrealized gains and losses, net of tax, reported as accumulated other comprehensive income (loss) and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are determined using the specific identification method. We had no material realized gains or losses in the nine months ended March 31, 2020 or 2019.

Short-term investments as of June 30, 2019 also included marketable equity securities, which are carried at fair value with unrealized gains and losses recognized in other income (expense), net. We had no net realized gains (losses) from marketable equity securities in the nine months ended March 31, 2020 or 2019. As of March 31, 2020, we had no marketable equity securities.

Cash, cash equivalents and short-term investments consisted of the following as of March 31, 2020 (in thousands):

Description	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Cash	$	15,594	$	—	$	—		$	15,594
Cash equivalents:
Money market mutual funds	382		—		—			382
Commercial paper	500		—		—			500
Total cash equivalents	882		—		—			882
Total cash and cash equivalents	16,476		—		—			16,476
Short-term investments:
U.S. treasury securities	2,615		54		—			2,669
U.S. agency securities	3,809		62		—			3,871
Asset-backed securities	20,610		106		(74		)	20,642
Municipal securities	9,415		43		—			9,458
Commercial paper	3,193		2		—			3,195
Corporate bonds	67,601		181		(344		)	67,438
Total short-term investments	107,243		448		(418		)	107,273
Cash, cash equivalents and short-term investments	$	123,719	$	448	$	(418	)	$	123,749

Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2019 (in thousands):

Description	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Cash	$	25,987	$	—	$	—		$	25,987
Cash equivalents:
Money market mutual funds	790		—		—			790
Commercial paper	498		—		—			498
Total cash equivalents	1,288		—		—			1,288
Total cash and cash equivalents	27,275		—		—			27,275
Short-term investments:
U.S. treasury securities	3,570		6		(4		)	3,572
U.S. agency securities	3,002		9		(2		)	3,009
Asset-backed securities	12,319		104		(10		)	12,413
Municipal securities	4,124		16		—			4,140
Commercial paper	1,986		—		—			1,986
Corporate bonds	45,492		269		(27		)	45,734
Total debt securities	70,493		404		(43		)	70,854
Marketable equity securities	250		1,099		—			1,349
Total short-term investments	70,743		1,503		(43		)	72,203
Cash, cash equivalents and short-term investments	$	98,018	$	1,503	$	(43	)	$	99,478

The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than 12 months or a continuous unrealized loss position for 12 months or greater, as of March 31, 2020 and June 30, 2019 (in thousands):

	March 31, 2020
	Less than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset-backed securities	$	7,671	$	(74	)	$	—	$	—	$	7,671	$	(74	)
Corporate bonds	40,090		(344		)	—		—		40,090		(344		)
Total	$	47,761	$	(418	)	$	—	$	—	$	47,761	$	(418	)

	June 30, 2019
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. treasury securities	$	—	$	—		$	2,992	$	(5	)	$	2,992	$	(5	)
U.S. agency securities	—		—			998		(1		)	998		(1		)
Asset-backed securities	—		—			3,537		(11		)	3,537		(11		)
Commercial paper	493		(1		)	—		—			493		(1		)
Corporate bonds	4,600		(3		)	14,615		(24		)	19,215		(27		)
Total	$	5,093	$	(4	)	$	22,142	$	(41	)	$	27,235	$	(45	)

There were 131 securities and 11 securities in an unrealized loss position for less than 12 months at March 31, 2020 and at June 30, 2019, respectively, and no securities and 51 securities in an unrealized loss position for 12 months or greater at March 31, 2020 and June 30, 2019, respectively.

The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated maturities as of March 31, 2020 (in thousands):

	Amortized Cost		Estimated Fair Value
Due within one year	$	44,564	$	44,549
Due between one and two years	44,235		44,345
Due between two and three years	18,444		18,379
Total	$	107,243	$	107,273

Declines in fair value judged to be other-than-temporary on securities available for sale are included as a component of other income (expense), net. In order to determine whether a decline in value is other-than-temporary, we evaluate, among other factors: the duration and extent to which the fair value has been less than the carrying value and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair market value. As of March 31, 2020, we did not consider any of our short-term investments to be other-than-temporarily impaired.