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Investments
 3 Months Ended
Mar. 31, 2019
Investments Debt And Equity Securities [Abstract]  
Investments

4. INVESTMENTS

Investments consisted of the following (in thousands):

 

 

 

 

 

 

 

Gross Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses

 

 

 

 

 

 

 

Amortized

 

 

 

 

 

 

Less than

 

 

Greater than

 

 

Estimated

 

March 31, 2019

 

Cost

 

 

Gains

 

 

One Year

 

 

One Year

 

 

Fair Value

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

156,443

 

 

$

349

 

 

$

(11

)

 

$

(149

)

 

$

156,632

 

U.S. government and agency debt securities

 

 

108,113

 

 

 

257

 

 

 

(4

)

 

 

(45

)

 

 

108,321

 

International government agency debt securities

 

 

91,818

 

 

 

193

 

 

 

—

 

 

 

(70

)

 

 

91,941

 

Total short-term investments

 

 

356,374

 

 

 

799

 

 

 

(15

)

 

 

(264

)

 

 

356,894

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

28,570

 

 

 

—

 

 

 

(84

)

 

 

(45

)

 

 

28,441

 

U.S. government and agency debt securities

 

 

10,984

 

 

 

—

 

 

 

(4

)

 

 

(5

)

 

 

10,975

 

 

 

 

39,554

 

 

 

—

 

 

 

(88

)

 

 

(50

)

 

$

39,416

 

Held-to-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

1,820

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,820

 

Fixed term deposit account

 

 

1,667

 

 

 

102

 

 

 

—

 

 

 

—

 

 

 

1,769

 

 

 

 

3,487

 

 

 

102

 

 

 

—

 

 

 

—

 

 

 

3,589

 

Total long-term investments

 

 

43,041

 

 

 

102

 

 

 

(88

)

 

 

(50

)

 

 

43,005

 

Total investments

 

 

399,415

 

 

 

901

 

 

 

(103

)

 

 

(314

)

 

 

399,899

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

120,197

 

 

$

57

 

 

$

(62

)

 

$

(274

)

 

$

119,918

 

U.S. government and agency debt securities

 

 

80,055

 

 

 

115

 

 

 

(11

)

 

 

(87

)

 

 

80,072

 

International government agency debt securities

 

 

72,091

 

 

 

85

 

 

 

(8

)

 

 

(117

)

 

 

72,051

 

 

 

 

272,343

 

 

 

257

 

 

 

(81

)

 

 

(478

)

 

 

272,041

 

Held-to-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

492

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

492

 

Total short-term investments

 

 

272,835

 

 

 

257

 

 

 

(81

)

 

 

(478

)

 

 

272,533

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

53,505

 

 

 

—

 

 

 

(185

)

 

 

(93

)

 

$

53,227

 

U.S. government and agency debt securities

 

 

18,474

 

 

 

—

 

 

 

(21

)

 

 

(12

)

 

 

18,441

 

International government agency debt securities

 

 

5,457

 

 

 

—

 

 

 

(4

)

 

 

—

 

 

 

5,453

 

 

 

 

77,436

 

 

 

—

 

 

 

(210

)

 

 

(105

)

 

 

77,121

 

Held-to-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

1,820

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,820

 

Fixed term deposit account

 

 

1,667

 

 

 

136

 

 

 

—

 

 

 

—

 

 

 

1,803

 

 

 

 

3,487

 

 

 

136

 

 

 

—

 

 

 

—

 

 

 

3,623

 

Total long-term investments

 

 

80,923

 

 

 

136

 

 

 

(210

)

 

 

(105

)

 

 

80,744

 

Total investments

 

$

353,758

 

 

$

393

 

 

$

(291

)

 

$

(583

)

 

$

353,277

 

 

The proceeds from the sales and maturities of marketable securities, which were identified using the specific identification method and were primarily reinvested, were as follows:

 

 

 

Three Months Ended March 31,

 

(In thousands)

 

2019

 

 

2018

 

Proceeds from the sales and maturities of marketable securities

 

$

55,978

 

 

$

79,500

 

Realized gains

 

$

—

 

 

$

1

 

Realized losses

 

$

492

 

 

$

4

 

 

The Company’s available-for-sale and held-to-maturity securities at March 31, 2019 had contractual maturities in the following periods:

 

 

 

Available-for-sale

 

 

Held-to-maturity

 

 

 

Amortized

 

 

Estimated

 

 

Amortized

 

 

Estimated

 

(In thousands)

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

Within 1 year

 

$

213,318

 

 

$

213,172

 

 

$

1,820

 

 

$

1,820

 

After 1 year through 5 years

 

 

182,610

 

 

 

183,138

 

 

 

1,667

 

 

 

1,769

 

Total

 

$

395,928

 

 

$

396,310

 

 

$

3,487

 

 

$

3,589

 

 

At March 31, 2019, the Company believed that the unrealized losses on its available-for-sale investments were temporary. The investments with unrealized losses consisted primarily of corporate debt securities. In making the determination that the decline in fair value of these securities was temporary, the Company considered various factors, including, but not limited to: the length of time each security was in an unrealized loss position; the extent to which fair value was less than cost; financial condition and near-term prospects of the issuers; the Company’s intent not to sell these securities; and the assessment that it is more likely than not that the Company would not be required to sell these securities before the recovery of their amortized cost basis.

In May 2014, the Company entered into an agreement whereby it is committed to provide up to €7.4 million to a partnership, Fountain Healthcare Partners II, L.P. of Ireland (“Fountain”), which was created to carry on the business of investing exclusively in companies and businesses engaged in the healthcare, pharmaceutical and life sciences sectors. As of March 31, 2019, the Company’s total contribution in Fountain was equal to €5.5 million. The Company’s commitment represents approximately 7% of the partnership’s total funding. The Company is accounting for its investment in Fountain under the equity method. During the three months ended March 31, 2019 and 2018, the Company recorded a decrease in its investment in Fountain of less than $0.1 million. The changes recorded represent the Company’s proportional share of Fountain’s net losses for these periods. The Company’s $5.6 million and $5.5 million net investment in Fountain at March 31, 2019 and December 31, 2018, respectively, was included within “Other assets” in the accompanying condensed consolidated balance sheets.