Quarterly report pursuant to Section 13 or 15(d)

Cash, Cash Equivalents, Short-Term And Long-Term Investments

v3.20.2
Cash, Cash Equivalents, Short-Term And Long-Term Investments
9 Months Ended
Sep. 30, 2020
Cash Cash Equivalents And Short Term And Long Term Investments [Abstract]  
Cash, Cash Equivalents, Short-Term and Long-Term Investments

 

(2)

CASH, CASH EQUIVALENTS, SHORT-TERM AND LONG-TERM INVESTMENTS

The Company’s investments consist of mutual funds held in the Company’s deferred compensation plan which are classified as trading securities, U.S. Treasury securities, corporate notes and bonds, asset-backed securities and U.S. Agency securities, which the Company has the intent and ability to hold to maturity and therefore, are classified as held-to-maturity. The following tables show the Company’s cash, cash equivalents, short-term and long-term investments by significant investment category as of September 30, 2020 and December 31, 2019 (in thousands):

 

 

 

September 30, 2020

 

 

 

Adjusted Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

 

Cash and Cash Equivalents

 

 

Short-Term Investments

 

 

Long-Term Investments

 

Cash

 

$

870,815

 

 

$

-

 

 

$

-

 

 

$

870,815

 

 

$

870,815

 

 

$

-

 

 

$

-

 

Level 1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

423,407

 

 

 

-

 

 

 

-

 

 

 

423,407

 

 

 

423,407

 

 

 

-

 

 

 

-

 

U.S. Treasury securities

 

 

18,242

 

 

 

-

 

 

 

-

 

 

 

18,242

 

 

 

-

 

 

 

7,199

 

 

 

11,043

 

Total level 1

 

 

441,649

 

 

 

-

 

 

 

-

 

 

 

441,649

 

 

 

423,407

 

 

 

7,199

 

 

 

11,043

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

Corporate notes and bonds

 

 

117,377

 

 

 

-

 

 

 

-

 

 

 

117,377

 

 

 

-

 

 

 

89,760

 

 

 

27,617

 

Asset-backed securities

 

 

31,156

 

 

 

-

 

 

 

-

 

 

 

31,156

 

 

 

-

 

 

 

5,525

 

 

 

25,631

 

U.S. Agency securities

 

 

4,283

 

 

 

-

 

 

 

-

 

 

 

4,283

 

 

 

-

 

 

 

4,283

 

 

 

-

 

Mutual funds

 

 

34,407

 

 

 

-

 

 

 

-

 

 

 

34,407

 

 

 

-

 

 

 

-

 

 

 

34,407

 

Total level 2

 

 

187,223

 

 

 

-

 

 

 

-

 

 

 

187,223

 

 

 

-

 

 

 

99,568

 

 

 

87,655

 

TOTAL

 

$

1,499,687

 

 

$

-

 

 

$

-

 

 

$

1,499,687

 

 

$

1,294,222

 

 

$

106,767

 

 

$

98,698

 

 

 

 

December 31, 2019

 

 

 

Adjusted Cost

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

 

Cash and Cash Equivalents

 

 

Short-Term Investments

 

 

Long-Term Investments

 

Cash

 

$

662,355

 

 

$

-

 

 

$

-

 

 

$

662,355

 

 

$

662,355

 

 

$

-

 

 

$

-

 

Level 1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

162,521

 

 

 

-

 

 

 

-

 

 

 

162,521

 

 

 

162,521

 

 

 

-

 

 

 

-

 

U.S. Treasury securities

 

 

9,686

 

 

 

-

 

 

 

-

 

 

 

9,686

 

 

 

-

 

 

 

1,679

 

 

 

8,007

 

Total level 1

 

 

172,207

 

 

 

-

 

 

 

-

 

 

 

172,207

 

 

 

162,521

 

 

 

1,679

 

 

 

8,007

 

Level 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

Corporate notes and bonds

 

 

132,431

 

 

 

-

 

 

 

-

 

 

 

132,431

 

 

 

-

 

 

 

104,130

 

 

 

28,301

 

Asset-backed securities

 

 

23,614

 

 

 

-

 

 

 

-

 

 

 

23,614

 

 

 

-

 

 

 

263

 

 

 

23,351

 

U.S. Agency securities

 

 

12,352

 

 

 

-

 

 

 

-

 

 

 

12,352

 

 

 

-

 

 

 

5,965

 

 

 

6,387

 

Mutual funds

 

 

28,543

 

 

 

-

 

 

 

-

 

 

 

28,543

 

 

 

-

 

 

 

-

 

 

 

28,543

 

Total level 2

 

 

196,940

 

 

 

-

 

 

 

-

 

 

 

196,940

 

 

 

-

 

 

 

110,358

 

 

 

86,582

 

TOTAL

 

$

1,031,502

 

 

$

-

 

 

$

-

 

 

$

1,031,502

 

 

$

824,876

 

 

$

112,037

 

 

$

94,589

 

 

The Company may sell certain of its investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s long-term investments are less than two years. The Company considers declines in market value of marketable securities investment portfolio to be temporary in nature. The Company minimizes the potential risk of principal loss by investing in highly-rated securities and limiting the amount of credit exposure to any one issuer. Fair values were determined for each individual security in the investment portfolio.

 

When evaluating an investment for its current expected credit losses, the Company reviews factors such as historical experience with defaults, losses, credit ratings, term, market sector and macroeconomic trends, including current conditions and forecasts to the extent they are reasonable and supportable. As of September 30, 2020, the current expected credit losses were not material to the Company’s condensed consolidated financial statements.