Cash and Investments in Marketable Securities

12 Months Ended

Dec. 31, 2020

Cash and Cash Equivalents [Abstract]

Cash and Investments in Marketable Securities

Cash and investments in marketable securities, including cash equivalents, are as follows (in thousands):


	Estimated Fair Value at
	December 31, 2020		December 31, 2019
Cash and cash equivalents	$	198,955	$	96,363
Short-term investments	862,941		1,228,499
Long-term investments	136,662		279,119
Total cash and investments in marketable securities	$	1,198,558	$	1,603,981

We invest in liquid, high quality debt securities. Our investments in debt securities are subject to interest rate risk. To minimize the exposure due to an adverse shift in interest rates, we invest in securities with maturities of two years or less and maintain a weighted average maturity of one year or less. All of our long-term investments as of December 31, 2020 and 2019 had maturities between one and two years.

During the year ended December 31, 2020 and 2018, we sold available-for-sale securities totaling $41.7 million and $12.0 million, respectively. Gross realized gains and losses on those sales were not significant. During the year ended December 31, 2019, we did not sell any of our available-for-sale securities. The cost of securities sold is based on the specific identification method.

We report our accrued interest receivable, which totaled $5.1 million and $6.5 million at December 31, 2020 and December 31, 2019, respectively, in other current assets on our Consolidated Balance Sheets.

Our portfolio of cash and investments in marketable securities includes (in thousands):


	Fair Value Hierarchy Level	December 31, 2020								December 31, 2019
		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Fair Value
Corporate notes and bonds	2	$	686,543	$	1,035	$	(109)	$	687,469	$	1,132,182
Corporate commercial paper	2	313,520		44		(67)		313,497		375,473
Obligations of U.S. government agencies	2	2,380		2		—		2,382		—
Available-for-sale investments		1,002,443		1,081		(176)		1,003,348		1,507,655
Money market funds	1							179,302		83,546
Certificate of deposit	N/A							9,623		6,951
Cash	N/A							6,285		5,829
Total cash and investments in marketable securities								$	1,198,558	$	1,603,981

_______________________________________________________________

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. We use a market approach to value our Level 2 investments. The disclosed fair value related to our investments is based on market prices from a variety of industry standard data providers and generally represents quoted prices for similar assets in active markets or has been derived from observable market data. For the years ended December 31, 2020 and 2019, there were no transfers between Level 1 and Level 2 of the fair value hierarchy.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

At December 31, 2019, our gross unrealized gains and losses totaled $2.1 million and $0.3 million, respectively.

At December 31, 2020 and 2019, we had letter of credit arrangements in favor of our landlords and certain vendors totaling $8.1 million and $6.8 million, respectively. These letters of credit are secured by investments of similar amounts.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details