XML 26 R14.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Investments
 3 Months Ended
Mar. 31, 2024
Investments [Abstract]  
Investments
7.  Investments


The following table summarizes the contract maturity of the available-for-sale securities we held as of March 31, 2024:

One year or less
    
69
%
After one year but within two years
    
26
%
After two years but within three and a half years
    
5
%
Total
    
100
%


As illustrated above, at March 31, 2024, 95 percent of our available-for-sale securities had a maturity of less than two years.


All of our available-for-sale debt securities are available to us for use in our current operations. As a result, we categorize 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.


We invest in debt securities with strong credit ratings and an investment grade rating at or above A-1, P-1 or F-1 by Standard & Poor’s, Moody’s or Fitch, respectively.


At March 31, 2024, we had an equity ownership interest of less than 20 percent in seven private companies and three public companies with which we conduct business.


The following is a summary of our investments (in thousands):

 
Amortized
    
Gross Unrealized
    
Estimated
  
March 31, 2024
  
Cost
    
Gains
    
Losses
    
Fair Value
  
Available-for-sale debt securities:
                        
Corporate debt securities (1)
  
$
529,593
    
$
87
    
$
(1,990
)
  
$
527,690
  
Debt securities issued by U.S. government agencies
    
179,632
      
24
      
(409
)
    
179,247
  
Debt securities issued by the U.S. Treasury (1)
    
582,782
      
38
      
(1,372
)
    
581,448
  
Debt securities issued by states of the U.S. and political subdivisions of the states
    
15,017
      
29
      
(77
)
    
14,969
  
Total debt securities with a maturity of one year or less
    
1,307,024
      
178
      
(3,848
)
    
1,303,354
  
Corporate debt securities
    
248,548
      
405
      
(890
)
    
248,063
  
Debt securities issued by U.S. government agencies
    
115,152
      
134
      
(187
)
    
115,099
  
Debt securities issued by the U.S. Treasury
    
204,535
      
133
      
(1,086
)
    
203,582
  
Debt securities issued by states of the U.S. and political subdivisions of the states
    
1,420
      
—
      
(3
)
    
1,417
  
Total debt securities with a maturity of more than one year
    
569,655
      
672
      
(2,166
)
    
568,161
  
Total available-for-sale debt securities
  
$
1,876,679
    
$
850
    
$
(6,014
)
  
$
1,871,515
  
Equity securities:
                                
Publicly traded equity securities included in other current assets (2)
  
$
11,897
    
$
319
    
$
(3,756
)
  
$
8,460
  
Privately held equity securities included in deposits and other assets (3)
    
23,115
      
25,001
      
(5,125
)
    
42,991
  
Total equity securities
    
35,012
      
25,320
      
(8,881
)
    
51,451
  
Total available-for-sale debt and equity securities
  
$
1,911,691
    
$
26,170
    
$
(14,895
)
  
$
1,922,966
  

 
Amortized
    
Gross Unrealized
    
Estimated
  
December 31, 2023
  
Cost
    
Gains
    
Losses
    
Fair Value
  
Available-for-sale debt securities:
                        
Corporate debt securities (1)
  
$
559,967
    
$
157
    
$
(2,625
)
  
$
557,499
  
Debt securities issued by U.S. government agencies
    
224,711
      
64
      
(611
)
    
224,164
  
Debt securities issued by the U.S. Treasury (1)
    
513,784
      
152
      
(1,889
)
    
512,047
  
Debt securities issued by states of the U.S. and political subdivisions of the states
    
17,757
      
42
      
(113
)
    
17,686
  
Total debt securities with a maturity of one year or less
    
1,316,219
      
415
      
(5,238
)
    
1,311,396
  
Corporate debt securities
    
243,151
      
1,270
      
(692
)
    
243,729
  
Debt securities issued by U.S. government agencies
    
110,138
      
547
      
(21
)
    
110,664
  
Debt securities issued by the U.S. Treasury
    
294,873
      
1,239
      
(480
)
    
295,632
  
Debt securities issued by states of the U.S. and political subdivisions of the states
    
3,466
      
7
      
(4
)
    
3,469
  
Total debt securities with a maturity of more than one year
    
651,628
      
3,063
      
(1,197
)
    
653,494
  
Total available-for-sale debt securities
  
$
1,967,847
    
$
3,478
    
$
(6,435
)
  
$
1,964,890
  
Equity securities:
                                
Publicly traded equity securities included in other current assets (2)
  
$
11,897
    
$
236
    
$
(5,832
)
  
$
6,301
  
Privately held equity securities included in deposits and other assets (3)
    
23,115
      
25,001
      
(5,125
)
    
42,991
  
Total equity securities
    
35,012
      
25,237
      
(10,957
)
    
49,292
  
Total available-for-sale debt and equity securities
  
$
2,002,859
    
$
28,715
    
$
(17,392
)
  
$
2,014,182
  

(1)
Includes investments classified as cash equivalents in our condensed consolidated balance sheets.

(2)
Our publicly traded equity securities are included in other current assets. We recognize publicly traded equity securities at fair value. In the three months ended March 31, 2024, we recorded a $2.2 million net unrealized gain in our condensed consolidated statements of operations related to changes in the fair value of our investments in publicly traded companies.

(3)
Our privately held equity securities are included in deposits and other assets. We recognize our privately held equity securities at cost minus impairments, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer, which are Level 3 inputs. In the three months ended March 31, 2024, there were no changes in the fair value of our investments in privately held companies.


The following is a summary of our investments we consider to be temporarily impaired at March 31, 2024 (in thousands, except for number of investments):

       
Less than 12 Months of
Temporary Impairment
    
More than 12 Months of
Temporary Impairment
    
Total Temporary
Impairment
  
   
Number of
Investments
    
Estimated
Fair Value
    
Unrealized
Losses
    
Estimated
Fair Value
    
Unrealized
Losses
    
Estimated
Fair Value
    
Unrealized
Losses
  
Corporate debt securities
    
392
    
$
487,939
    
$
(1,361
)
  
$
96,219
    
$
(1,519
)
  
$
584,158
    
$
(2,880
)
Debt securities issued by U.S. government agencies
    
80
      
176,956
      
(360
)
    
12,375
      
(236
)
    
189,331
      
(596
)
Debt securities issued by the U.S. Treasury
    
64
      
588,958
      
(1,773
)
    
86,772
      
(685
)
    
675,730
      
(2,458
)
Debt securities issued by states of the U.S. and political subdivisions of the states
    
53
      
7,978
      
(22
)
    
5,703
      
(58
)
    
13,681
      
(80
)
Total temporarily impaired securities
    
589
    
$
1,261,831
    
$
(3,516
)
  
$
201,069
    
$
(2,498
)
  
$
1,462,900
    
$
(6,014
)


We believe that the decline in value of these securities is temporary and is primarily related to the change in market interest rates since purchase rather than underlying credit deterioration for any of the issuers. We believe it is more likely than not that we will be able to hold our debt securities with declines in value to maturity. Therefore, we intend to hold these securities to maturity and anticipate full recovery of our debt securities’ amortized cost basis at maturity.