Marketable Securities and Equity Investments

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Marketable Securities and Equity Investments

A summary of the Company’s cash equivalents and marketable securities, which are recorded at fair value (and do not include $1.9 billion and $1.4 billion of cash as of September 30, 2019 and December 31, 2018, respectively), is shown below:



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
As of September 30, 2019
Cash equivalents:
Money market funds	$	1,476,254	$	—	$	—		$	1,476,254
U.S. Treasury securities	5,892		1		—			5,893
Government-sponsored enterprise securities	13,370		—		—			13,370
Commercial paper	50,125		1		(7		)	50,119
Total cash equivalents	1,545,641		2		(7		)	1,545,636
Marketable securities:
Government-sponsored enterprise securities	14,188		29		—			14,217
Corporate debt securities	264,613		465		(27		)	265,051
Commercial paper	82,825		113		—			82,938
Total marketable debt securities	361,626		607		(27		)	362,206
Corporate equity securities	133,157		107,450		(4,423		)	236,184
Total marketable securities	$	494,783	$	108,057	$	(4,450	)	$	598,390

As of December 31, 2018
Cash equivalents:
Money market funds	$	1,226,603	$	—	$	—		$	1,226,603
U.S. Treasury securities	5,967		—		(1		)	5,966
Government-sponsored enterprise securities	7,124		—		(1		)	7,123
Commercial paper	58,271		—		(3		)	58,268
Total cash equivalents	1,297,965		—		(5		)	1,297,960
Marketable securities:
U.S. Treasury securities	6,026		—		—			6,026
Government-sponsored enterprise securities	10,704		—		—			10,704
Corporate debt securities	234,088		27		(450		)	233,665
Commercial paper	100,498		—		(108		)	100,390
Total marketable debt securities	351,316		27		(558		)	350,785
Corporate equity securities	133,157		40,619		(6,453		)	167,323
Total marketable securities	$	484,473	$	40,646	$	(7,011	)	$	518,108

Available-for-sale debt securities were recorded in the Company's condensed consolidated balance sheets at fair value as follows:



	As of September 30, 2019		As of December 31, 2018
	(in thousands)
Cash and cash equivalents	$	1,545,636	$	1,297,960
Marketable securities	362,206		350,785
Total	$	1,907,842	$	1,648,745

Available-for-sale debt securities by contractual maturity were as follows:



	As of September 30, 2019		As of December 31, 2018
	(in thousands)
Matures within one year	$	1,778,426	$	1,647,500
Matures after one year through five years	129,416		1,245
Total	$	1,907,842	$	1,648,745

The Company has a limited number of available-for-sale debt securities in insignificant loss positions as of September 30, 2019, 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 nine months ended September 30, 2019 and 2018.

The Company maintains strategic investments separately from the investment policy that governs its other cash, cash equivalents and marketable securities. The Company’s investments in the common stock of publicly traded companies, CRISPR and Moderna, as of September 30, 2019 and December 31, 2018, respectively, have readily determinable fair values and are recorded in “Marketable securities” on its condensed consolidated balance sheets. As of September 30, 2019 and December 31, 2018, the total fair value of the Company’s strategic investments in the common stock of publicly traded companies, was $236.2 million and $167.3 million, respectively. The Company records unrealized gains or losses related to its strategic investments, which are primarily attributable to its investment in CRISPR, to “Other (expense) income, net” on its condensed consolidated statements of operations. During the three and nine months ended September 30, 2019, the Company recorded an unrealized loss of $31.2 million and unrealized gain of $68.9 million, respectively. During the three and nine months ended September 30, 2018, the Company recorded an unrealized loss of $61.2 million and an unrealized gain of $88.2 million, respectively.

As of September 30, 2019, the carrying value of the Company’s equity investments without readily determinable fair values, which are recorded in “Other assets” on its condensed consolidated balance sheets, was $40.8 million.