Investments

9 Months Ended

Sep. 30, 2019

Investments in privately-held companies [Abstract]

Investments

5.    Investments

Investments in Privately-Held Companies    

Our investments are in the equity of privately-held companies, which do not have readily determinable fair values. These non-marketable equity securities are initially recorded at cost, and subsequently remeasured to fair value on a non-recurring basis based on observable price changes in orderly transactions for similar investments of the same issuer, or for impairment. These investments are classified within Level III of the fair value hierarchy as we estimate the value based on valuation methods using the observable transaction price at the transaction date and other significant unobservable inputs, such as volatility, rights, and obligations related to those investments. In addition, the valuation requires management judgment due to the absence of market price and inherent lack of liquidity. The following table summarizes the activity related to our investments in privately-held companies held as of September 30, 2019 and December 31, 2018 (in thousands):

	September 30, 2019			December 31, 2018
Cost of investment	$	18,000		$	44,136
Cumulative impairment	(15,000		)	(15,000		)
Cumulative upward adjustment	1,150			1,200
Carrying amount of investment	$	4,150		$	30,336

During the three months ended September 30, 2019, the Company recorded a realized gain of $4.3 million upon the sale of one of our investments. The realized gains are classified in "Other income (expense), net" in our accompanying unaudited condensed consolidated statements of operations.

During the three months ended September 30, 2019 and September 30, 2018, there were no unrealized gains or losses recorded on our remaining investments. In each of the nine month periods ended September 30, 2019 and September 30, 2018, we recorded $1.2 million of unrealized gains. These unrealized gains were recorded on investments that were re-measured to fair value as of the date observable transactions occurred. In addition, during the nine months ended September 30, 2018, we recorded an impairment of $10.3 million on one of our investments. These unrealized gains and losses are classified in "Other income (expense), net" in our accompanying unaudited condensed consolidated statements of operations.