Cash, cash equivalents and short-term investments

3 Months Ended

Sep. 30, 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. 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 three months ended September 30, 2020 or 2019.

Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2020 (in thousands):

Description	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash	$	23,010	$	—	$	—	$	23,010
Cash equivalents:
Money market mutual funds	5,303		—		—		5,303
Total cash equivalents	5,303		—		—		5,303
Total cash and cash equivalents	28,313		—		—		28,313
Short-term investments:
U.S. treasury securities	1,532		27		—		1,559
U.S. agency securities	3,188		44		—		3,232
Asset-backed securities	16,599		352		—		16,951
Municipal securities	6,280		83		—		6,363
Corporate bonds	41,651		750		(1)		42,400
Total short-term investments	69,250		1,256		(1)		70,505
Cash, cash equivalents and short-term investments	$	97,563	$	1,256	$	(1)	$	98,818

Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2020 (in thousands):

Description	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash	$	20,323	$	—	$	—	$	20,323
Cash equivalents:
Money market mutual funds	195		—		—		195
Total cash equivalents	195		—		—		195
Total cash and cash equivalents	20,518		—		—		20,518
Short-term investments:
U.S. treasury securities	3,712		41		—		3,753
U.S. agency securities	5,004		54		—		5,058
Asset-backed securities	20,392		434		—		20,826
Municipal securities	9,464		78		—		9,542
Corporate bonds	50,173		963		—		51,136
Total short-term investments	88,745		1,570		—		90,315
Cash, cash equivalents and short-term investments	$	109,263	$	1,570	$	—	$	110,833

There were no available-for-sale securities that were in a material unrealized loss position as of September 30, 2020 or June 30, 2020.

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 September 30, 2020 (in thousands):

	Amortized Cost		Estimated Fair Value
Due within one year	$	29,750	$	30,096
Due between one and two years	28,791		29,479
Due between two and three years	10,709		10,930
Total	$	69,250	$	70,505

Declines in fair value judged to be other-than-temporary on securities available for sale are included as a component of other income, 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 September 30, 2020, we did not consider any of our short-term investments to be other-than-temporarily impaired.