Marketable Investment Securities

9 Months Ended

Sep. 30, 2018

Investments, Debt and Equity Securities [Abstract]

MARKETABLE INVESTMENT SECURITIES

Overview

Our marketable investment securities portfolio consists of various debt and equity instruments as follows:



	As of
	September 30, 2018		December 31, 2017
	(In thousands)
Marketable investment securities:
Debt securities:
Corporate bonds	$	1,028,521	$	368,083
Other debt securities	172,612		86,417
Total debt securities	1,201,133		454,500
Equity securities	1,357		1,102
Total marketable investment securities	$	1,202,490	$	455,602

Debt Securities

Our corporate bond portfolio includes debt instruments issued by individual corporations, primarily in the industrial and financial services industries. Our other debt securities portfolio includes investments in various debt instruments, including U.S. government bonds and commercial paper.

A summary of our available-for-sale debt securities is presented in the table below.



	Amortized		Unrealized					Estimated
	Cost		Gains		Losses			Fair Value
	(In thousands)
As of September 30, 2018
Corporate bonds	$	1,028,554	$	502	$	(535	)	$	1,028,521
Other debt securities	172,612		—		—			172,612
Total available-for-sale debt securities	$	1,201,166	$	502	$	(535	)	$	1,201,133
As of December 31, 2017
Corporate bonds	$	368,291	$	—	$	(208	)	$	368,083
Other debt securities	86,425		—		(8		)	86,417
Total available-for-sale debt securities	$	454,716	$	—	$	(216	)	$	454,500

As of September 30, 2018, we have $711.2 million of available-for-sale debt securities with contractual maturities of one year or less and $490.0 million with contractual maturities greater than one year.

Equity Securities

Our marketable equity securities consist primarily of shares of common stock of public companies. Prior to January 1, 2018, we classified our marketable equity securities as available-for-sale or trading securities, depending on our investment strategy for the securities. As of December 31, 2017, our marketable equity securities consisted of available-for-sale securities with a fair value of $1.1 million, reflecting an adjusted cost basis of $1.5 million and unrealized losses of $0.4 million. Substantially all unrealized losses on our available-for-sale securities related to securities that were in a continuous loss position for less than 12 months. We recognized a $3.3 million other-than-temporary impairment for the nine months ended September 30, 2017 on one of our available-for-sale securities which had experienced a decline in market value as a result of adverse developments during the nine months ended September 30, 2017.

Upon adoption of the New Investment Standard as of January 1, 2018 (see Note 2), we account for investments in equity securities at their fair value and we recognize unrealized gains and losses in Gains and losses on investments, net in our Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). For the three and nine months ended September 30, 2018, Gains and losses on investments, net included net gains of $0.1 million and $0.3 million, respectively, related to equity securities that we held as of September 30, 2018.

Sales of Available-for-Sale Securities

Proceeds from sales of our available-for-sale securities totaled $50.0 million for both the three and nine months ended September 30, 2018. We recognized zero gains and losses from the sales of our available-for-sale portfolio for each of the three and nine months ended September 30, 2018. Proceeds from sales of our available-for-sale securities was zero and $8.9 million for the three and nine months ended September 30, 2017. We recognized zero gains and losses from the sales of our available-for-sale securities for each of the three and nine months ended September 30, 2017.

Fair Value Measurements

Our marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of September 30, 2018 and December 31, 2017, we did not have investments that were categorized within Level 3 of the fair value hierarchy.



	As of
	September 30, 2018						December 31, 2017
	Level 1		Level 2		Total		Level 1		Level 2		Total
	(In thousands)
Debt securities:
Corporate bonds	$	—	$	1,028,521	$	1,028,521	$	—	$	368,083	$	368,083
Other	—		172,612		172,612		—		86,417		86,417
Total debt securities	—		1,201,133		1,201,133		—		454,500		454,500
Equity securities	1,357		—		1,357		1,102		—		1,102
Total marketable investment securities	$	1,357	$	1,201,133	$	1,202,490	$	1,102	$	454,500	$	455,602