Marketable Securities and Equity Investments

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Marketable Securities and Equity Investments

A summary of the Company’s cash equivalents and marketable securities, which are recorded at fair value (and do not include $1.8 billion and $2.3 billion of cash as of March 31, 2020 and December 31, 2019, respectively), is shown below:



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
As of March 31, 2020
Cash equivalents:
Money market funds	$	1,736,913	$	—	$	—		$	1,736,913
Commercial paper	30,700		4		(4		)	30,700
Total cash equivalents	1,767,613		4		(4		)	1,767,613
Marketable securities:
Government-sponsored enterprise securities	7,717		74		—			7,791
Corporate debt securities	305,808		255		(1,012		)	305,051
Commercial paper	118,542		426		(4		)	118,964
Total marketable debt securities	432,067		755		(1,016		)	431,806
Corporate equity securities	87,096		78,082		—			165,178
Total marketable securities	$	519,163	$	78,837	$	(1,016	)	$	596,984

As of December 31, 2019
Cash equivalents:
Money market funds	$	791,039	$	—	$	—		$	791,039
Corporate debt securities	6,070		—		—			6,070
Commercial paper	29,470		3		(1		)	29,472
Total cash equivalents	826,579		3		(1		)	826,581
Marketable securities:
Government-sponsored enterprise securities	12,689		44		—			12,733
Corporate debt securities	301,458		391		(50		)	301,799
Commercial paper	102,240		121		(5		)	102,356
Total marketable debt securities	416,387		556		(55		)	416,888
Corporate equity securities	113,829		168,255		—			282,084
Total marketable securities	$	530,216	$	168,811	$	(55	)	$	698,972

Available-for-sale debt securities were classified on the Company's condensed consolidated balance sheets at fair value as follows:



	As of March 31, 2020		As of December 31, 2019
	(in thousands)
Cash and cash equivalents	$	1,767,613	$	826,581
Marketable securities	431,806		416,888
Total	$	2,199,419	$	1,243,469

Available-for-sale debt securities by contractual maturity were as follows:



	As of March 31, 2020		As of December 31, 2019
	(in thousands)
Matures within one year	$	2,157,586	$	1,137,942
Matures after one year through five years	41,833		105,527
Total	$	2,199,419	$	1,243,469

The Company has a limited number of available-for-sale debt securities in insignificant loss positions as of March 31, 2020, which it does not intend to sell and has concluded it will not be required to sell before recovery of the amortized costs for the investments at maturity. The Company did not record any charges for other-than-temporary declines in the fair value of available-for-sale debt securities or gross realized gains or losses in the three months ended March 31, 2020 and 2019.

As of March 31, 2020 and December 31, 2019, the total fair value of the Company’s strategic investments in the common stock of publicly traded companies, which was primarily related to its investment in CRISPR, was $165.2 million and $282.1 million, respectively, and was classified as “Marketable securities” on its condensed consolidated balance sheets.

The Company records changes in the fair value of its investments in corporate equity securities, which are primarily attributable to its investment in CRISPR, to “Other (expense) income, net” on its condensed consolidated statements of operations. During the three months ended March 31, 2020 and 2019, the Company recorded a net unrealized loss of $39.4 million and a net unrealized gain of $43.6 million, respectively, on corporate equity securities held at the conclusion of each period. During the three months ended March 31, 2020, the Company received proceeds of $72.0 million related to sales of CRISPR’s common stock, which had an original weighted-average cost basis of $26.7 million. There were no sales of CRISPR’s common stock during the three months ended March 31, 2019.

As of March 31, 2020, the carrying value of the Company’s equity investments without readily determinable fair values, which are recorded in “Other assets” on its condensed consolidated balance sheets, was $46.6 million.