4.Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities

Our marketable investment securities, restricted cash and cash equivalents, and other investment securities consisted of the following:


	As of
	March 31,		December 31,
	2019		2018
	(In thousands)
Marketable investment securities:
Current marketable investment securities:
Trading/equity (Note 2)	$	2,894	$	2,370
Other		183,169		147,370
Total current marketable investment securities		186,063		149,740
Restricted marketable investment securities (1)		59,397		67,019
Total marketable investment securities		245,460		216,759

Restricted cash and cash equivalents (1)		8,666		578

Other investment securities:
Other investment securities		102,406		108,308
Total other investment securities		102,406		108,308

Total marketable investment securities, restricted cash and cash equivalents, and other investment securities	$	356,532	$	325,645

(1)

Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets.

Marketable Investment Securities

Our marketable investment securities portfolio consists of various debt and equity instruments. All debt securities are classified as available-for-sale. Subsequent to the adoption of ASU 2016-01 during the first quarter 2018, all equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information.

Current Marketable Investment Securities - Trading/Equity

We have a marketable security investment which was received for no cash consideration.

Current Marketable Investment Securities – Other

Our current other marketable investment securities portfolio includes investments in various debt instruments including, among others, commercial paper, corporate securities and United States treasury and/or agency securities.

Commercial paper consists mainly of unsecured short-term promissory notes, issued primarily by corporations, with maturities ranging up to 365 days. Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months. U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies.

Restricted Cash, Cash Equivalents and Marketable Investment Securities

As of March 31, 2019 and December 31, 2018, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit.

Other Investment Securities

We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investment securities” on our Condensed Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and our equity securities are accounted for using the equity method of accounting or recorded at fair value. Certain of our equity method investments are detailed below.

NagraStar L.L.C. As a result of the completion of the share exchange on February 28, 2017, we own a 50% interest in NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming.

Invidi Technologies Corporation. In November 2016, we, DIRECTV, LLC, a wholly-owned indirect subsidiary of AT&T Inc., and Cavendish Square Holding B.V., an affiliate of WPP plc, entered into a series of agreements to acquire Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. The transaction closed in January 2017.

Our ability to realize value from our strategic investments in securities that are not publicly traded depends on the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them.

Unrealized Gains (Losses) on Marketable Investment Securities

As of March 31, 2019 and December 31, 2018, we had accumulated net unrealized gains of less than $1 million and accumulated net unrealized losses of less than $1 million, respectively. These amounts, net of related tax effect, were accumulated net unrealized gains of less than $1 million and accumulated net unrealized losses of less than $1 million, respectively. All of these amounts are included in “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit).” The components of our available-for-sale investments are summarized in the table below.


	As of March 31, 2019								As of December 31, 2018
	Marketable								Marketable
	Investment		Unrealized						Investment		Unrealized
	Securities		Gains		Losses		Net		Securities		Gains		Losses		Net
	(In thousands)
Debt securities (including restricted):
U.S. Treasury and agency securities	$	59,155	$	71	$	(4)	$	67	$	66,823	$	40	$	(19)	$	21
Commercial paper		86,353		—		(5)		(5)		45,938		—		—		—
Corporate securities		95,542		10		(2)		8		100,662		11		(113)		(102)
Other		1,516		—		—		—		966		—		—		—
Total	$	242,566	$	81	$	(11)	$	70	$	214,389	$	51	$	(132)	$	(81)

As of March 31, 2019, restricted and non-restricted marketable investment securities included debt securities of $238 million with contractual maturities within one year and $5 million with contractual maturities extending longer than one year through and including five years. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity.

Fair Value Measurements

Our investments measured at fair value on a recurring basis were as follows:


	As of
	March 31, 2019								December 31, 2018
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	(In thousands)
Cash equivalents (including restricted)	$	343,783	$	58,435	$	285,348	$	—	$	114,464	$	12,493	$	101,971	$	—

Debt securities (including restricted):
U.S. Treasury and agency securities	$	59,155	$	59,155	$	—	$	—	$	66,823	$	66,823	$	—	$	—
Commercial paper		86,353		—		86,353		—		45,938		—		45,938		—
Corporate securities		95,542		—		95,542		—		100,662		—		100,662		—
Other		1,516		—		1,516		—		966		—		966		—

Equity securities		2,894		2,894		—		—		2,370		2,370		—		—
Total	$	245,460	$	62,049	$	183,411	$	—	$	216,759	$	69,193	$	147,566	$	—

During the three months ended March 31, 2019, we had no transfers in or out of Level 1 and Level 2 fair value measurements.

Gains and Losses on Sales and Changes in Carrying Amounts of Investments

“Other, net” within “Other Income (Expense)” included on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows:


	For the Three Months Ended
	March 31,
Other, net:	2019		2018
	(In thousands)
Marketable investment securities - realized and unrealized gains (losses) (1)	$	2,770	$	(36,548)
Costs related to early redemption of debt		(439)		(179)
Equity in earnings of affiliates		(944)		1,446
Other		46		484
Total	$	1,433	$	(34,797)

(1)

During the three months ended March 31, 2019, we recorded unrealized gains of $2 million related to equity securities held as of March 31, 2019.