Marketable Securities and Equity Investments

9 Months Ended

Sep. 30, 2020

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 $2.2 billion and $2.3 billion of cash as of September 30, 2020 and December 31, 2019, respectively), is shown below:


	As of September 30, 2020								As of December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Cash equivalents:
Money market funds	$	3,130,364	$	—	$	—	$	3,130,364	$	791,039	$	—	$	—	$	791,039
Corporate debt securities	—		—		—		—		6,070		—		—		6,070
Commercial paper	5,000		1		—		5,001		29,470		3		(1)		29,472
Total cash equivalents	$	3,135,364	$	1	$	—	$	3,135,365	$	826,579	$	3	$	(1)	$	826,581
Marketable securities:
Government-sponsored enterprise securities	$	91,256	$	33	$	(6)	$	91,283	$	12,689	$	44	$	—	$	12,733
Corporate debt securities	275,554		1,067		(11)		276,610		301,458		391		(50)		301,799
Commercial paper	112,159		242		(5)		112,396		102,240		121		(5)		102,356
Total marketable debt securities	478,969		1,342		(22)		480,289		416,387		556		(55)		416,888
Corporate equity securities	103,463		209,219		—		312,682		113,829		168,255		—		282,084
Total marketable securities	$	582,432	$	210,561	$	(22)	$	792,971	$	530,216	$	168,811	$	(55)	$	698,972

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


	As of September 30, 2020		As of December 31, 2019
	(in thousands)
Cash and cash equivalents	$	3,135,365	$	826,581
Marketable securities	480,289		416,888
Total	$	3,615,654	$	1,243,469

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


	As of September 30, 2020		As of December 31, 2019
	(in thousands)
Matures within one year	$	3,514,474	$	1,137,942
Matures after one year through five years	101,180		105,527
Total	$	3,615,654	$	1,243,469

The Company has a limited number of available-for-sale debt securities in insignificant loss positions as of September 30, 2020, 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, 2020 and 2019.

As of September 30, 2020 and December 31, 2019, the total fair value of the Company’s strategic investments in the common stock of publicly traded companies was $312.7 million and $282.1 million, respectively, and was classified as “Marketable securities” on its condensed consolidated balance sheets.

The Company records changes in the fair value of its investments in corporate equity securities to “Other income (expense), net” on its condensed consolidated statements of operations. During the three and nine months ended September 30, 2020, the Company recorded net unrealized gains of $69.8 million and $102.3 million, respectively, on corporate equity securities held as of September 30, 2020. During the three and nine months ended September 30, 2019, the Company recorded a net unrealized loss of $31.2 million and a net unrealized gain of $68.9 million, respectively, on corporate equity securities held as of September 30, 2019. During the nine months ended September 30, 2020, the Company received proceeds of $149.6 million related to the sale of the common stock of publicly traded companies, which had a total original weighted-average cost basis of $51.3 million. There were no sales of the common stock of publicly traded companies during the nine months ended September 30, 2019.

As of September 30, 2020, 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 $20.8 million.