Cash, Cash Equivalents, and Available for Sale Marketable Investments

6 Months Ended

Jun. 30, 2016

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Available for Sale Marketable Investments

4. Cash, Cash Equivalents, and Available for Sale Marketable Investments

Cash equivalents include all highly liquid investments maturing within 90 days from the date of purchase. Investments consist of securities with original maturities greater than 90 days when purchased. The Company classifies these investments as available-for-sale and records them at fair value in the accompanying condensed consolidated balance sheets. Unrealized gains or losses are included in accumulated other comprehensive income (loss). Premiums or discounts from par value are amortized to investment income over the life of the underlying investment.

The Company classifies marketable securities with a remaining maturity when purchased of greater than three months as available‑for‑sale. Marketable securities with a remaining maturity date greater than one year are classified as non‑current where the Company has the intent and ability to hold these securities for at least the next 12 months. Available‑for‑sale securities are maintained by an investment manager and may consist of U.S. Treasury securities and U.S. Government agency securities. Available‑for‑sale securities are carried at fair value with the unrealized gains and losses included in other comprehensive income/(loss) as a component of stockholders’ deficit until realized. Any premium or discount arising at purchase is amortized and/or accreted to interest income and/or expense. Realized gains and losses are determined using the specific identification method and are included in other income (expense). If any adjustment to fair value reflects a decline in value of the investment, the Company considers all available evidence to evaluate the extent to which the decline is “other‑than‑temporary” and, if so, recognizes the unrealized loss through a charge to the Company’s statement of operations and comprehensive loss. No other temporary losses are recognized.

Cash, cash equivalents and available for sale investments included the following at June 30, 2016 and December 31, 2015:

	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(in thousands)
As of June 30, 2016
Money market funds included in cash and cash equivalents	$	65,463	$	—	$	—	$	65,463
Total money market funds included in cash and cash equivalents	$	65,463	$	—	$	—	$	65,463
Marketable securities:
U.S. Treasury notes		109,964		55		—		110,019
U.S. Government agency bonds		26,937		5		—		26,942
Total marketable securities	$	136,901	$	60	$	—	$	136,961
Total money market funds and marketable securities	$	202,364	$	60	$	—	$	202,424
As of December 31, 2015
Money market funds included in cash and cash equivalents	$	29,601	$	—	$	—	$	29,601
Total money market funds included in cash and cash equivalents	$	29,601	$	—	$	—	$	29,601
Marketable securities:
U.S. Treasury notes		158,166		—		185		157,981
U.S. Government agency bonds		35,121		—		66		35,055
Total marketable securities	$	193,287	$	—	$	251	$	193,036
Total money market funds and marketable securities	$	222,888	$	—	$	251	$	222,637

The estimated fair value of the Company’s marketable securities balance at June 30, 2016, by contractual maturity, is as follows:

Due in one year or less $ 136,961