Quarterly report pursuant to Section 13 or 15(d)

Cash Equivalents and Marketable Securities

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Cash Equivalents and Marketable Securities
9 Months Ended
Sep. 30, 2017
Cash Equivalents and Marketable Securities  
Cash Equivalents and Marketable Securities

3. Cash Equivalents and Marketable Securities

 

Cash equivalents are highly liquid investments that are readily convertible into cash with original maturities of three months or less when purchased. Marketable securities consist of securities with original maturities greater than 90 days when purchased. The Company classifies these marketable securities as available-for-sale and records them at fair value in the accompanying condensed consolidated balance sheets. Unrealized gains or losses are included in accumulated other comprehensive loss. Premiums or discounts from par value are amortized to investment income over the life of the underlying security.

Cash equivalents and marketable securities, available-for-sale, consisted of the following at September 30, 2017 and December 31, 2016 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

Unrealized

 

Fair

 

September 30, 2017

    

Amortized Cost

    

Gains

    

Losses

    

Value

 

Cash Equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

   Money market funds

 

$

12,149

 

$

 —

 

$

 —

 

$

12,149

 

   Overnight repurchase agreements

 

 

30,000

 

 

 —

 

 

 —

 

 

30,000

 

Marketable Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. treasury obligations

 

 

39,809

 

 

 —

 

 

(10)

 

 

39,799

 

Total:

 

$

81,958

 

$

 —

 

$

(10)

 

$

81,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

Unrealized

 

Fair

 

December 31, 2016

    

Amortized Cost

    

Gains

    

Losses

    

Value

 

Cash Equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

   Money market funds

 

$

58,588

 

$

 —

 

$

 —

 

$

58,588

 

Marketable Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. treasury obligations

 

 

25,014

 

 

 —

 

 

(9)

 

 

25,005

 

Total:

 

$

83,602

 

$

 —

 

$

(9)

 

$

83,593

 

 

Although available to be sold to meet operating needs or otherwise, securities are generally held through maturity. The cost of securities sold is determined based on the specific identification method for purposes of recording realized gains and losses. During the nine months ended September 30, 2017, there were no realized gains or losses on sales of investments, and no investments were adjusted for other than temporary declines in fair value.

 

At September 30, 2017, the Company held 13 securities that were in an unrealized loss position. The aggregate fair value of securities held by the Company in an unrealized loss position for less than 12 months as of September 30, 2017 was $32.3 million, and there were no securities held by the Company in an unrealized loss position for more than 12 months. The Company has the intent and ability to hold such securities until recovery. The Company determined that there was no material change in the credit risk of the above investments. As a result, the Company determined it did not hold any investments with an other-than temporary impairment as of September 30, 2017.