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Marketable Securities and Equity Investments
 6 Months Ended
Jun. 30, 2018
Cash and Cash Equivalents [Abstract]  
Marketable Securities and Equity Investments
Marketable Securities and Equity Investments
Pursuant to the adoption of ASU 2016-01 on January 1, 2018, the Company began recording changes in the fair value of its investments in corporate equity securities (except those accounted for under the equity method of accounting or those that result in consolidation of an investee) to “Other income (expense), net” in the Company’s condensed consolidated statements of operations. Prior to its adoption of ASU 2016-01, the Company recorded changes in the fair value of its investments in corporate equity securities to “Accumulated other comprehensive loss” on its condensed consolidated balance sheet until the related gains or losses were realized. The Company continues to record unrealized gains (losses) on available-for-sale debt securities as a component of accumulated other comprehensive income (loss) until such gains and losses are realized.
A summary of the Company’s cash equivalents and marketable securities is shown below:
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
As of June 30, 2018
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
971,044

 
$
—

 
$
—

 
$
971,044

Government-sponsored enterprise securities
10,981

 
1

 
—

 
10,982

Commercial paper
21,270

 
—

 
(7
)
 
21,263

Total cash equivalents
1,003,295

 
1

 
(7
)
 
1,003,289

Marketable securities:
 
 
 
 
 
 
 
U.S. Treasury securities (matures within 1 year)
11,022

 
—

 
(2
)
 
11,020

Government-sponsored enterprise securities (matures within 1 year)
2,491

 
—

 
—

 
2,491

Corporate debt securities (matures within 1 year)
178,692

 
—

 
(564
)
 
178,128

Corporate debt securities (matures after 1 year through 5 years)
54,613

 
1

 
(38
)
 
54,576

Commercial paper (matures within 1 year)
133,478

 
4

 
(76
)
 
133,406

Total marketable debt securities
380,296

 
5

 
(680
)
 
379,621

Corporate equity securities
64,713

 
178,062

 
—

 
242,775

Total marketable securities
$
445,009

 
$
178,067

 
$
(680
)
 
$
622,396

 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
614,951

 
$
—

 
$
—

 
$
614,951

Government-sponsored enterprise securities
12,679

 
—

 
(1
)
 
12,678

Commercial paper
57,371

 
—

 
(14
)
 
57,357

Total cash equivalents
685,001

 
—

 
(15
)
 
684,986

Marketable securities:
 
 
 
 
 
 
 
Government-sponsored enterprise securities (matures within 1 year)
2,304

 
—

 
(1
)
 
2,303

Corporate debt securities (matures within 1 year)
215,639

 
—

 
(363
)
 
215,276

Corporate debt securities (matures after 1 year through 5 years)
50,697

 
—

 
(106
)
 
50,591

Commercial paper (matures within 1 year)
80,372

 
—

 
(109
)
 
80,263

Total marketable debt securities
349,012

 
—

 
(579
)
 
348,433

Available-for-sale corporate equity securities
43,213

 
31,608

 
—

 
74,821

Total marketable securities
$
392,225

 
$
31,608

 
$
(579
)
 
$
423,254


Available-for-sale debt securities were recorded in the Company's condensed consolidated balance sheets as follows:
 
As of June 30, 2018
 
As of December 31, 2017
 
(in thousands)
Cash and cash equivalents
$
1,003,289

 
$
684,986

Marketable securities
379,621

 
348,433

Total
$
1,382,910

 
$
1,033,419


The Company has a limited number of available-for-sale debt securities in insignificant loss positions as of June 30, 2018, which it does not intend to sell and has concluded it will not be required to sell before recovery of the amortized costs for the investments at maturity. The Company did not record any charges for other-than-temporary declines in the fair value of available-for-sale debt securities or gross realized gains or losses in the three and six months ended June 30, 2018 and 2017.
The Company maintains strategic investments separately from the investment policy that governs its other cash, cash equivalents and marketable securities. During the three and six months ended June 30, 2018, the Company recorded an aggregate unrealized gain of $53.9 million and $149.4 million, respectively, related to its investments in corporate equity securities, as follows:
•
$53.9 million and $146.5 million, respectively, related to its equity investment in CRISPR, a publicly traded company. The CRISPR common stock held by the Company has a readily determinable fair value that is recorded in “Marketable securities” on the Company’s condensed consolidated balance sheets. In January 2018, the Company purchased an additional $21.5 million of CRISPR’s common shares.
•
Zero and $2.9 million, respectively, related to its equity investment in Moderna, which is not a publicly traded company that has a readily determinable fair value for its stock. The Company increased the carrying value of its investment in Moderna, which is recorded in “Other assets” on its condensed consolidated balance sheets, to $23.0 million as of June 30, 2018 based on an observable price increase for additional shares privately issued by Moderna in an orderly transaction between market participants in the first quarter of 2018.