Investments

9 Months Ended

Sep. 30, 2020

Available-for-sale Investments

Investments in available-for-sale securities at fair value were as follows for the periods ended (in thousands):


	September 30, 2020
Description of the Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Agency securities	$	39,993	$	2	$	—	$	—	$	39,995
Corporate securities	197,239		4		(12)		(147)		197,084

Government securities	132,475		1		(7)		—		132,469
Total	$	369,707	$	7	$	(19)	$	(147)	$	369,548


	December 31, 2019
Description of the Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Agency securities	$	1,681	$	1	$	—	$	1,682
Corporate securities	49,027		6		(149)		48,884

Government securities	9,124		5		—		9,129
Total	$	59,832	$	12	$	(149)	$	59,695

The change in net unrealized gains (losses) on available-for-sale securities recorded in Other comprehensive income (loss) includes unrealized gains (losses) that arose from changes in market value, excluding credit-related factors, of specifically identified securities that were held during the period, gains (losses) that were previously unrealized, but have been recognized in current period net income due to sales, and prepayments of available-for-sale investments purchased at a premium. See Note 13 for more information related to comprehensive income.

The average remaining maturities of the Company’s short-term and long-term available-for-sale investments at September 30, 2020 were approximately three months and two years, respectively.

For the three and nine months ended September 30, 2020, the Company did not receive any proceeds from the sales of available-for-sale investments. For the three months ended September 30, 2019, the Company had no proceeds from the sales of available-for-sale investments. For the nine months ended September 30, 2019, the Company received proceeds from the sales of available-for-sale investments of $938.0 million.

Realized and Unrealized Gains and Losses on Available-for-sale Investments

For the three and nine months ended September 30, 2020, the Company did not have any realized gains on available-for-sale investments. For the three months ended September 30, 2019, the Company had no realized gains of available-for-sale investments. For the nine months ended September 30, 2019, the Company had realized gains on available-for-sale investments of $1.5 million.

Effective January 1, 2020, the new CECL guidance requires the recognition of an allowance for estimated credit losses on investments in available-for-sale debt securities. For the three and nine months ended September 30, 2020, the Company did not have any realized losses on available-for-sale investments. For the three months ended September 30, 2019, the Company did not have any realized losses on available-for-sale investments. For the nine months ended September 30, 2019, the Company had realized losses on available-for-sale investments of $0.9 million. Realized losses primarily related to sales of

these investments during the respective periods. All realized gains and losses related to the sales of available-for-sale investments are included in Other income, net, in the accompanying condensed consolidated statements of income.

As of December 31, 2019, the Company's gross unrealized losses on available-for-sale investments were $0.1 million and were not deemed to be other-than-temporarily impaired under the prior accounting guidance.

Equity Securities without Readily Determinable Fair Values

The Company held direct investments in privately-held companies of $12.3 million as of September 30, 2020 and December 31, 2019, which are accounted for at cost, less impairment plus or minus adjustments resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer. These investments are included in Other assets in the accompanying condensed consolidated balance sheets. The Company periodically reviews these investments for impairment and observable price changes on a quarterly basis, and adjusts the carrying value accordingly. The fair value of these investments represent a Level 3 valuation as the assumptions used in valuing these investments are not directly or indirectly observable. See Note 7 for detailed information on fair value measurements.

Equity Securities Accounted for at Net Asset Value

The Company held equity interests in certain private equity funds of $10.7 million and $11.2 million as of September 30, 2020 and December 31, 2019, respectively, which are accounted for under the net asset value practical expedient. These investments are included in Other assets in the accompanying condensed consolidated balance sheets. The net asset value of these investments is determined using quarterly capital statements from the funds, which are based on the Company’s contributions to the funds, allocation of profit and loss and changes in fair value of the underlying fund investments. These private equity funds focus on making venture capital investments, principally by investing in equity securities of early and late stage privately-held corporations. The funds’ general partner shall determine the amount, timing and form (whether cash or in kind) of all distributions made by the funds. The Company may only transfer its investments in private equity fund interests subject to the general partner’s written consent and cannot trade its fund interests in established securities markets, secondary markets or equivalents thereof. The Company has unfunded commitments of $0.5 million as of September 30, 2020.