9.	CASH AND CASH EQUIVALENTS AND SHORT TERM INVESTMENTS

Cash and Cash Equivalents

For the purpose of reporting cash and cash equivalents, the Company considers all liquid investments purchased with an original maturity of three months or less to be cash equivalents.

As of September 30, 2015, the total cash and cash equivalents and short term investments balance was $980.5 million of that amount, $923.7 million was held by Indian subsidiaries consisting of $542 million held in U.S. dollars and $381.7 million held in Indian rupees. The Company believes that the amount of cash and cash equivalents outside the U.S. will not have a material impact on liquidity.

At September 30, 2015 and December 31, 2014, approximately $Nil and $30.3 million, respectively, were held in JPMorgan Chase Bank NA through a sweep account. At September 30, 2015 approximately $30.2 million was held in Bank of America. At September 30, 2015, $108 million in term deposits with an original maturity of three months or less were held with the Bank of India and Punjab National Bank. At year end, December 31, 2014, $13.0 million in term deposits with an original maturity of three months or less were held with the Bank of India and Punjab National Bank. The remaining amounts of cash and cash equivalents of $368.9 million were held in bank and fixed deposits with various banking and financial institutions.

Short-term Investments

The Company’s short-term investments consist of short-term mutual funds, which have been classified as available-for-sale and are carried at estimated fair value. Fair value is determined based on quoted market prices. Unrealized gains and losses, net of taxes, on available-for-sale securities are reported as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. Net realized gains or losses resulting from the sale of these investments, and losses resulting from decline in fair values of these investments that are other than temporary declines, are included in other income. The cost of securities sold is determined using the weighted-average method.

Short-term investments include term deposits with an original maturity exceeding three months and whose maturity date is within one year from the date of the balance sheet. Term deposits were $409.1 million and $466.6 million at September 30, 2015 and December 31, 2014, respectively.

Short-term investments also include Fixed Maturity Plans (FMPs) of mutual funds, which are classified as held to maturity securities and are reported at cost. As at September 30, 2015, the Company’s Indian subsidiaries had no investments in FMPs of mutual funds and as at December 31, 2014, the Company’s Indian subsidiaries invested $15.9 million in FMPs of mutual funds.

The following table summarizes short-term investments as at September 30, 2015 and December 31, 2014:


	2015 September 30		2014 December 31
	(In thousands)
Investments in mutual funds at fair value	$	94,503	$	186,842

Term deposits with banks		409,084		466,625

Fixed Maturity Plans (FMPs) of mutual funds, at cost		—		15,886

Total	$	503,587	$	669,353

Non-current Term Deposits with Banks

Non-current term deposits with banks include deposits with maturity exceeding one year from the date of the balance sheet. As at September 30, 2015 and December 31, 2014 non-current term deposits with banks were $0.08 and $0.11 million, respectively. Term deposits with banks include restricted deposits of $1.25 million and $0.53 million as at September 30, 2015 and December 31, 2014 respectively, placed as security towards performance guarantees issued by the Company’s bankers on the Company’s behalf.

Held to Maturity Securities

Investments in held-to-maturity securities (“HTM”) of the Company consist of investments in the units of FMPs of mutual funds in Indian subsidiaries.


Description	As of September 30, 2015		As of December 31, 2014
(In thousands)
Aggregate fair value of the investment	$	—	$	16,612
Less: Gross unrecognized holding gain	$	—		726
Net carrying amount	$	—	$	15,886