Marketable Securities and Equity Investments

12 Months Ended

Dec. 31, 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 $2.3 billion and $1.4 billion of cash as of December 31, 2019 and 2018, respectively), is shown below:



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
As of December 31, 2019
Cash equivalents:
Money market funds	$	791,039	$	—	$	—		$	791,039
Corporate debt securities	6,070		—		—			6,070
Commercial paper	29,470		3		(1		)	29,472
Total cash equivalents	826,579		3		(1		)	826,581
Marketable securities:
Government-sponsored enterprise securities	12,689		44		—			12,733
Corporate debt securities	301,458		391		(50		)	301,799
Commercial paper	102,240		121		(5		)	102,356
Total marketable debt securities	416,387		556		(55		)	416,888
Corporate equity securities	113,829		168,255		—			282,084
Total marketable securities	$	530,216	$	168,811	$	(55	)	$	698,972

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 classified on the Company’s consolidated balance sheets as follows:



	As of December 31,
	2019		2018
	(in thousands)
Cash and cash equivalents	$	826,581	$	1,297,960
Marketable securities	416,888		350,785
Total	$	1,243,469	$	1,648,745

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



	As of December 31,
	2019		2018
	(in thousands)
Matures within one year	$	1,137,942	$	1,647,500
Matures after one year through five years	105,527		1,245
Total	$	1,243,469	$	1,648,745

The Company has a limited number of available-for-sale debt securities in insignificant loss positions as of December 31, 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 2019, 2018 or 2017.

As of December 31, 2019 and 2018, the total fair value of the Company’s strategic investments in the common stock of publicly traded companies, which was primarily related to its investment in CRISPR, was $282.1 million and $167.3 million, respectively, and was classified as “Marketable securities” on its consolidated balance sheets.

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 strategic corporate equity securities, which are primarily attributable to its investment in CRISPR, to “Other income (expense), net” in the Company’s 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) income” on its 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 (loss) income” until such gains and losses are realized.

During the year ended December 31, 2019 and 2018, the Company recorded unrealized gains of $132.5 million and $2.6 million, respectively, which were primarily related to the Company’s strategic investment in CRISPR. As noted above, unrealized gains or losses were recorded to “Accumulated other comprehensive (loss) income” during the year ended December 31, 2017.

During the year ended December 31, 2019, the Company recorded realized gains of $65.1 million related to sales of CRISPR’s common stock. The Company utilized a weighted-average cost basis to calculate the realized gain. There were no sales of CRISPR’s common stock in the years ended December 31, 2018 or 2017.

As of December 31, 2019, the carrying value of the Company’s equity investments without readily determinable fair values, which are recorded in “Other assets” on its consolidated balance sheets, was $40.8 million.