Investments

9 Months Ended

Sep. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Investments

Note 6. Investments

ARRIS’s investments consisted of the following (in thousands):

	As of September 30, 2018		As of December 31, 2017
Current Assets:
Available-for-sale securities	$	39,640	$	23,874
Noncurrent Assets:
Available-for-sale securities		5,996		5,718
Equity method investments		22,217		22,021
Cost method investments		9,986		10,092
Other investments		33,548		33,251
Total classified as non-current assets		71,747		71,082
Total	$	111,387	$	94,956

Available-for-sale securities - ARRIS’s investments in debt and marketable equity securities are categorized as available-for-sale and are carried at fair value. Realized gains and losses on available-for-sale securities are included in net income. Unrealized gains and losses on available-for-sale debt securities are included in the Consolidated Balance Sheets as a component of accumulated other comprehensive income (loss).

The amortized costs and fair value of available-for-sale securities were as follows (in thousands):

	September 30, 2018									December 31, 2017
	Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Certificates of deposit (non-U.S.)	$	39,640	$	—	$	—		$	39,640	$	12,809	$	—	$	—		$	12,809
Corporate bonds		—		—		—			—		11,003		86		(24	)		11,065
Corporate obligations		14		—		—			14		13		—		—			13
Money markets		37		—		—			37		38		—		—			38
Mutual funds		87		—		(1	)		86		65		14		—			79
Other investments		5,898		531		(570	)		5,859		4,941		744		(97	)		5,588
Total	$	45,676	$	531	$	(571	)	$	45,636	$	28,869	$	844	$	(121	)	$	29,592

The following table represents the breakdown of the available-for-sale investments with gross unrealized losses and the duration that those losses had been unrealized (in thousands):  

	September 30, 2018
	Less than 12 months					12 months or more				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Certificates of deposit (non-U.S.)	$	39,640	$	—		$	—	$	—	$	39,640	$	—
Corporate obligations		14		—			—		—		14		—
Money markets		37		—			—		—		37		—
Mutual funds		86		(1	)		—		—		86		(1	)
Other investments		5,859		(570	)		—		—		5,859		(570	)
Total	$	45,636	$	(571	)	$	—	$	—	$	45,636	$	(571	)

	December 31, 2017
	Less than 12 months					12 months or more				Total
	Fair value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Certificates of deposit (non-U.S.)	$	12,809	$	—		$	—	$	—	$	12,809	$	—
Corporate bonds		11,065		(24	)		—		—		11,065		(24	)
Corporate obligations		13		—			—		—		13		—
Money markets		38		—			—		—		38		—
Mutual funds		79		—			—		—		79		—
Other investments		5,588		(97	)		—		—		5,588		(97	)
Total	$	29,592	$	(121	)	$	—	$	—	$	29,592	$	(121	)

As of September 30, 2018, for fixed income securities that were in unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments, and (ii) it is more likely than not that it will not be required to sell any of these investments before recovery of the entire amortized cost basis.

The sale and/or maturity of available-for-sale securities resulted in the following activity (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Proceeds from sales	$	31,876	$	5,000	$	45,638	$	155,301
Gross gains		—		1		5		13
Gross losses		—		—		—		—

The contractual maturities of the Company’s available-for-sale securities as of September 30, 2018 are shown below. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties (in thousands):

	September 30, 2018
	Amortized Cost		Fair Value
Within 1 year	$	39,640	$	39,640
After 1 year through 5 years		—		—
After 5 years through 10 years		—		—
After 10 years		6,036		5,996
Total	$	45,676	$	45,636

Other-than-temporary investment impairments - ARRIS evaluates its investments for any other-than-temporary impairment on a quarterly basis considering all available evidence, including changes in general market conditions, specific industry and individual entity data, the financial condition and the near-term prospects of the entity issuing the security, and the Company’s ability and intent to hold the investment until recovery. For the three and nine months ended September 30, 2018, ARRIS concluded that no other-than-temporary impairment losses existed.

For the three months ended September 30, 2017, the Company concluded that no other-than-temporary impairment losses existed. For the nine months ended September 30, 2017, the Company concluded that one private company had indicators of impairment, as the cost basis exceeded the fair value of the investments resulting in other-than-temporary impairment charges of $2.8 million. These charges are reflected in the Consolidated Statements of Operations.

Classification of securities as current or non-current is dependent upon management’s intended holding period, the security’s maturity date and liquidity consideration based on market conditions. If management intends to hold the securities for longer than one year as of the balance sheet date, they are classified as non-current.