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Cash and Investments in Marketable Securities

12 Months Ended

Dec. 31, 2019

Cash and Investments in Marketable Securities

Cash and investments in marketable securities, including cash equivalents, are as follows (in thousands):



	Estimated Fair Value at
	December 31, 2019		December 31, 2018
Cash and cash equivalents	$	96,363	$	194,905
Short-term investments	1,228,499		1,140,445
Long-term investments	279,119		582,889
Total cash and investments in marketable securities	$	1,603,981	$	1,918,239

We invest in liquid, high quality debt securities. Our investments in debt securities are subject to interest rate risk. To minimize the exposure due to an adverse shift in interest rates, we invest in securities with maturities of two years or less and maintain a weighted average maturity of one year or less. All of our long-term investments as of December 31, 2019 and 2018 had maturities between one and two years.

Gross unrealized gains and losses were not significant at either December 31, 2019 or 2018. During the year ended December 31, 2019, we sold no available-for-sale securities and during the years ended December 31, 2018 and 2017, we sold available-for-sale securities totaling $12.0 million and $37.5 million, respectively, and realized gains and losses were not significant in any of those periods.

Our portfolio of cash and investments in marketable securities includes (in thousands):



	Fair Value Hierarchy Level	Estimated Fair Value at
	Fair Value Hierarchy Level	December 31, 2019		December 31, 2018
Corporate notes and bonds	2	$	1,132,182	$	1,288,986
Corporate commercial paper	2	375,473		498,048
Obligations of U.S. government agencies	2	—		12,977
Available-for-sale investments		1,507,655		1,800,011
Money market funds	1	83,546		105,656
Certificate of deposit	N/A	6,951		6,760
Cash	N/A	5,829		5,812
Total cash and investments in marketable securities		$	1,603,981	$	1,918,239

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Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

We use a market approach to value our Level 2 investments. The disclosed fair value related to our investments is based on market prices from a variety of industry standard data providers and generally represents quoted prices for similar assets in active markets or has been derived from observable market data.

For the years ended December 31, 2019 and 2018, there were no transfers between Level 1 and Level 2 of the fair value hierarchy.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

At December 31, 2019 and 2018, we had letter of credit arrangements in favor of our landlords and certain vendors totaling $6.8 million and $6.6 million, respectively. These letters of credit are secured by investments of similar amounts.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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