Marketable Securities

3 Months Ended

Mar. 31, 2020

Debt Securities, Available-for-sale [Abstract]

Rambus invests its excess cash and cash equivalents primarily in U.S. government-sponsored obligations, commercial paper, corporate notes and bonds, money market funds and municipal notes and bonds that mature within three years. As of March 31, 2020 and December 31, 2019, all of the Company’s cash equivalents and marketable securities had a remaining maturity of less than one year.

All cash equivalents and marketable securities are classified as available-for-sale. Total cash, cash equivalents and marketable securities are summarized as follows:



	As of March 31, 2020
(In thousands)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Weighted Rate of Return
Money market funds	$	22,143	$	22,143	$	—	$	—		0.32	%
U.S. Government bonds and notes	44,247		44,135		112		—			1.20	%
Corporate notes, bonds, commercial paper and other	323,639		323,892		47		(300		)	1.61	%
Total cash equivalents and marketable securities	390,029		390,170		159		(300		)
Cash	45,416		45,416		—		—
Total cash, cash equivalents and marketable securities	$	435,445	$	435,586	$	159	$	(300	)



	As of December 31, 2019
(In thousands)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Weighted Rate of Return
Money market funds	$	10,065	$	10,065	$	—	$	—		1.48	%
U.S. Government bonds and notes	39,086		39,087		—		(1		)	1.49	%
Corporate notes, bonds, commercial paper and other	314,391		314,435		19		(63		)	1.81	%
Total cash equivalents and marketable securities	363,542		363,587		19		(64		)
Cash	44,122		44,122		—		—
Total cash, cash equivalents and marketable securities	$	407,664	$	407,709	$	19	$	(64	)

Available-for-sale securities are reported at fair value on the balance sheets and classified as follows:



	As of
(In thousands)	March 31, 2020		December 31, 2019
Cash equivalents	$	130,030	$	58,054
Short term marketable securities	259,999		305,488
Total cash equivalents and marketable securities	390,029		363,542
Cash	45,416		44,122
Total cash, cash equivalents and marketable securities	$	435,445	$	407,664

The Company continues to invest in highly rated quality, highly liquid debt securities. The Company holds all of its marketable securities as available-for-sale, marks them to market, and regularly reviews its portfolio to ensure adherence to its investment policy and to monitor individual investments for risk analysis, proper valuation, and unrealized losses that may be other than temporary.

The estimated fair value of cash equivalents and marketable securities classified by the length of time that the securities have been in a continuous unrealized loss position at March 31, 2020 and December 31, 2019 are as follows:



	Fair Value				Gross Unrealized Loss
(In thousands)	March 31, 2020		December 31, 2019		March 31, 2020			December 31, 2019
Less than one year
U.S. Government bonds and notes	$	—	$	14,112	$	—		$	(1	)
Corporate notes, bonds and commercial paper	182,702		250,822		(300		)	(63		)
Total Corporate notes, bonds, and commercial paper and U.S. Government bonds and notes	$	182,702	$	264,934	$	(300	)	$	(64	)

The gross unrealized loss at March 31, 2020 and December 31, 2019 was not material in relation to the Company’s total available-for-sale portfolio. The gross unrealized loss can be primarily attributed to a combination of market conditions as well as the demand for and duration of the U.S. government-sponsored obligations and corporate notes and bonds. There is no need to sell these investments, and the Company believes that it can recover the amortized cost of these investments. The Company

has found no evidence of impairment due to credit losses in its portfolio. Therefore, these unrealized losses were recorded in other comprehensive income. However, the Company cannot provide any assurance that its portfolio of cash, cash equivalents and marketable securities will not be impacted by adverse conditions in the financial markets, which may require the Company in the future to record an impairment charge for credit losses which could adversely impact its financial results.

Refer to Note 8, “Fair Value of Financial Instruments,” for discussion regarding the fair value of the Company’s cash equivalents and marketable securities.