Financial Instruments

3 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

Financial Instruments

FINANCIAL INSTRUMENTS

The following is a summary of marketable securities at March 31, 2017 and December 31, 2016 (in thousands):

	March 31, 2017
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Values
Available-for-sale securities
Corporate bonds and notes	$	43,517	$	11	$	(83	)	$	43,445
Commercial paper	3,733		—		(2		)	3,731
Treasury and agency notes and bills	6,000		—		(38		)	5,962
Money market funds	2,121		—		—			2,121
Total available-for-sale securities	$	55,371	$	11	$	(123	)	$	55,259
Reported in:
Cash and cash equivalents								$	2,121
Short-term investments								53,138
Total marketable securities								$	55,259

	December 31, 2016
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Values
Available-for-sale securities
Corporate bonds and notes	$	36,590	$	7	$	(95	)	$	36,502
Commercial paper	5,220		—		(4		)	5,216
Treasury and agency notes and bills	6,029		—		(57		)	5,972
Money market funds	14,146		—		—			14,146
Total available-for-sale securities	$	61,985	$	7	$	(156	)	$	61,836
Reported in:
Cash and cash equivalents								$	14,457
Short-term investments								47,379
Total marketable securities								$	61,836

At March 31, 2017 and December 31, 2016, the Company had $113.7 million and $113.0 million, respectively, in cash, cash equivalents and short-term investments. These balances include $58.4 million and $51.2 million in cash held in operating accounts not included in the tables above at March 31, 2017 and December 31, 2016, respectively. The Company has $8.5 million in restricted cash which is required to secure bonds against potential damages Broadcom may face as a result of the Company enforcing the injunction granted by the court in Germany. If the injunction is reversed or vacated, all or a portion of the restricted cash could be at risk.  The Company currently estimates this cash will be restricted for longer than 12 months. See Part II, Item 1 "legal Proceedings" for additional information.

The gross realized gains and losses on sales of marketable securities were not significant during the three months ended March 31, 2017 and 2016.

Unrealized losses (net of unrealized gains) were $0.1 million, net of tax, as of March 31, 2017 and March 31, 2016. These amounts were related to temporary fluctuations in value of the remaining available-for-sale securities and were due primarily to changes in interest rates and market and credit conditions of the underlying securities. Certain investments with a temporary decline in value are not considered to be other-than-temporarily impaired as of March 31, 2017 because the Company has the ability to hold these investments to allow for recovery, does not anticipate having to sell these securities with unrealized losses and continues to receive interest at the maximum contractual rate. For the three months ended March 31, 2017 and 2016, respectively, the Company did not record any impairment charges related to its marketable securities.

The following table summarizes the fair value and gross unrealized losses related to individual available-for-sale securities at March 31, 2017 and December 31, 2016, which have been in a continuous unrealized loss position, aggregated by investment category and length of time (in thousands):

March 31, 2017	Less Than 12 Months					12 Months or More					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate bonds and notes	$	27,962	$	(62	)	$	3,811	$	(21	)	$	31,773	$	(83	)
Treasury and agency notes and bills	5,962		(38		)	—		—			5,962		(38		)
Commercial paper	3,731		(2		)	—		—			3,731		(2		)
Total	$	37,655	$	(102	)	$	3,811	$	(21	)	$	41,466	$	(123	)

December 31, 2016	Less Than 12 Months					12 Months or More					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate bonds and notes	$	14,678	$	(44	)	$	13,230	$	(51	)	$	27,908	$	(95	)
Commercial paper	5,216		(4		)	—		—			5,216		(4		)
Treasury and agency notes and bills	5,972		(57		)	—		—			5,972		(57		)
Total	$	25,866	$	(105	)	$	13,230	$	(51	)	$	39,096	$	(156	)

The estimated fair value of marketable securities by contractual maturity at March 31, 2017 is shown below (in thousands). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

	Estimated Fair Value
Due in one year or less	$	21,936
Due in one to two years	15,860
Due in two to three years	17,463
Total	$	55,259