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Investments and Fair Value Measurements
 6 Months Ended
Jun. 30, 2020
Investments And Fair Value Measurements [Abstract]  
Investments And Fair Value Measurements

5.

Investments and Fair Value Measurements

Investments

As of June 30, 2020 and December 31, 2019, we primarily invested our excess cash in money market funds and debt instruments of the U.S. Treasury, financial institutions, corporations and U.S. government agencies with strong credit ratings and an investment grade rating at or above A-1, P-1 or F-1 by S&P, Moody’s or Fitch, respectively. We have established guidelines relative to diversification and maturities that maintain safety and liquidity. We periodically review and modify these guidelines to maximize trends in yields and interest rates without compromising safety and liquidity.

The following is a summary of our investments at June 30, 2020 and December 31, 2019 (in thousands):

 

 

 

 

 

 

 

Gross Unrealized

 

 

Estimated

 

June 30, 2020

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

81,143

 

 

$

374

 

 

$

(1

)

 

$

81,516

 

Debt securities issued by U.S. government agencies

 

 

118,414

 

 

 

489

 

 

 

(5

)

 

 

118,898

 

Total securities with a maturity of one year or less

 

$

199,557

 

 

$

863

 

 

$

(6

)

 

$

200,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

30,878

 

 

$

354

 

 

$

-

 

 

$

31,232

 

Debt securities issued by U.S. government agencies

 

 

22,272

 

 

 

230

 

 

 

(4

)

 

 

22,498

 

Total securities with a maturity of one to two years

 

 

53,150

 

 

 

584

 

 

 

(4

)

 

 

53,730

 

Total available-for-sale securities

 

$

252,707

 

 

$

1,447

 

 

$

(10

)

 

$

254,144

 

 

 

 

 

 

 

 

Gross Unrealized

 

 

Estimated

 

December 31, 2019

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

105,679

 

 

$

40

 

 

$

(23

)

 

$

105,696

 

Debt securities issued by U.S. government agencies

 

 

38,970

 

 

 

30

 

 

 

(6

)

 

 

38,994

 

Total securities with a maturity of one year or less

 

$

144,649

 

 

$

70

 

 

$

(29

)

 

$

144,690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

2,033

 

 

$

5

 

 

$

—

 

 

$

2,038

 

Debt securities issued by U.S. government agencies

 

 

14,079

 

 

 

—

 

 

 

(3

)

 

 

14,076

 

Total securities with a maturity of one to two years

 

 

16,112

 

 

 

5

 

 

 

(3

)

 

 

16,114

 

Total available-for-sale securities

 

$

160,761

 

 

$

75

 

 

$

(32

)

 

$

160,804

 

 

We recorded unrealized gains and losses related to the securities listed above as of June 30, 2020 and December 31, 2019. We believe that the decline in value of certain of these securities is temporary and primarily related to the change in market interest rates since purchase. We believe it is more likely than not that we will be able to hold these securities to maturity. Therefore, we anticipate a full recovery of the amortized cost basis of these securities at maturity.

All of our available-for-sale securities are available to us for use in our current operations. As a result, we categorized all of these securities as current assets even though the stated maturity of some individual securities may be one year or more beyond the balance sheet date.

Fair Value Measurements

The following tables present the investments we held at June 30, 2020 and December 31, 2019 that are regularly measured and carried at fair value. The table segregates our investments by level within the fair value hierarchy of valuation techniques used to determine their fair value (in thousands):

 

 

 

At

June 30,

2020

 

 

Quoted Prices

in Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

Money market funds (1)

 

$

105,972

 

 

$

105,972

 

 

$

—

 

Corporate debt securities (3)

 

 

112,749

 

 

 

—

 

 

 

112,749

 

Debt securities issued by U.S. government agencies (3)

 

 

141,395

 

 

 

—

 

 

 

141,395

 

Total

 

$

360,116

 

 

$

105,972

 

 

$

254,144

 

 

 

 

At

December 31,

2019

 

 

Quoted Prices

in Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

Money market funds (1)

 

$

285,510

 

 

$

285,510

 

 

$

—

 

Corporate debt securities (2)

 

 

107,735

 

 

 

—

 

 

 

107,735

 

Debt securities issued by U.S. government agencies (3)

 

 

53,069

 

 

 

—

 

 

 

53,069

 

Total

 

$

446,314

 

 

$

285,510

 

 

$

160,804

 

 

 

(1)

Included in cash and cash equivalents on our condensed consolidated balance sheet.

 

(2)

At December 31, 2019, $4.0 million was included in cash and cash equivalents on our condensed consolidated balance sheet, with the difference included in short-term investments on our condensed consolidated balance sheet.

 

(3)

Included in short-term investments on our condensed consolidated balance sheet.