Cash, cash equivalents, and available-for-sale marketable securities

9 Months Ended

Sep. 30, 2019

Cash, cash equivalents, and available for sale marketable securities

Cash, cash equivalents, and available for sale marketable securities

4. Cash, cash equivalents, and available-for-sale marketable securities

Cash equivalents include all highly liquid investments maturing within 90 days from the date of purchase. Marketable securities 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.

The Company classifies marketable debt securities with a remaining maturity when purchased of greater than three months as available-for-sale. Marketable debt securities with a remaining maturity date greater than one year and marketable equity securities 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 debt securities are maintained by an investment manager and consist of U.S. Treasury notes. In 2016, the Company invested in a supplier and received common stock and warrants to purchase common stock in that entity. The common stock is included in non-current marketable securities and the warrants are included in non-current assets.

All available-for-sale securities are carried at fair value with the unrealized gains and losses included in other comprehensive loss as a component of stockholders’ equity until realized. Any premium or discount arising at purchase is amortized and/or accreted to interest income and/or expense over the life of the underlying investment. 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 condensed consolidated statement of operations and comprehensive loss. No other-than-temporary losses have been recognized.

Money market funds and marketable securities included the following at September 30, 2019 and December 31, 2018:

	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(in thousands)
As of September 30, 2019
Money market funds included in cash and cash equivalents	$	81,711	$	—	$	—	$	81,711
Marketable securities:
U.S. Treasury notes		224,647		113		—		224,760
Equity securities		1,220		804		—		2,024
Total marketable securities	$	225,867	$	917	$	—	$	226,784
Total money market funds and marketable securities	$	307,578	$	917	$	—	$	308,495
As of December 31, 2018
Money market funds included in cash and cash equivalents	$	46,173	$	—	$	—	$	46,173
Marketable securities:
U.S. Treasury notes		108,951		1		5		108,947
Equity securities		1,220		—		592		628
Total marketable securities	$	110,171	$	1	$	597	$	109,575
Total money market funds and marketable securities	$	156,344	$	1	$	597	$	155,748

All of the Company’s marketable debt securities at September 30, 2019, have a contractual maturity of one year or less.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows:

	As of September 30,		As of December 31,
	2019		2018
	(in thousands)
Cash and cash equivalents	$	82,640	$	46,859
Restricted cash included in deposits and other non-current assets		735		735
Total cash, cash equivalents, and restricted cash	$	83,375	$	47,594