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Fair Value Of Financial Instruments
 3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value Of Financial Instruments
Fair Value of Financial Instruments
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016:
 
 
 
Fair Value Measurement Using
 
Total Fair Value
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
(In thousands)
As of March 31, 2017:
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Investments in money market funds
$
192,524

 
$
192,524

 
$
—

 
$
—

Debt securities issued by the U.S. Treasury
1,561,918

 
1,561,918

 
—

 
—

Equity securities of public companies
$
2,372

 
$
2,372

 
$
—

 
$
—

Foreign currency forward contracts (1)
40

 
—

 
40

 
—

Total
$
1,756,854

 
$
1,756,814

 
$
40

 
$
—

Liabilities:
 
 
 
 
 
 
 
Foreign currency forward contracts (2)
380

 
—

 
380

 
—

Total
$
380

 
$
—

 
$
380

 
$
—

As of December 31, 2016:
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Investments in money market funds
$
134,790

 
$
134,790

 
$
—

 
$
—

Debt securities issued by the U.S. Treasury
1,626,764

 
1,626,764

 
—

 
—

Equity securities of public companies
2,174

 
2,174

 
—

 
—

Foreign currency forward contracts (1)
242

 
—

 
242

 
—

Total
$
1,763,970

 
$
1,763,728

 
$
242

 
$
—

Liabilities:
 
 
 
 
 
 
 
Contingent interest derivative on Subordinated Convertible Debentures
$
14,339

 
$
—

 
$
—

 
$
14,339

Foreign currency forward contracts (2)
87

 
—

 
87

 
—

Total
$
14,426

 
$
—

 
$
87

 
$
14,339


(1)
Included in Other current assets
(2)
Included in Accounts payable and accrued liabilities
The fair value of the Company’s investments in money market funds approximates their face value. Such instruments are classified as Level 1 and are included in Cash and cash equivalents. The fair value of the debt securities consisting of U.S. Treasury bills is based on their quoted market prices and are classified as Level 1. Debt securities purchased with original maturities in excess of three months are included in Marketable securities. The fair value of the equity securities of public companies is based on quoted market prices and are classified as Level 1. Investments in equity securities of public companies are included in Marketable securities. The fair value of the Company’s foreign currency forward contracts is based on foreign currency rates quoted by banks or foreign currency dealers and other public data sources.
The $14.3 million contingent interest derivative on the Subordinated Convertible Debentures as of December 31, 2016 includes $7.7 million contingent interest that was paid in February 2017, and $6.6 million estimated fair value of the contingent interest to be paid in August 2017. As of March 31, 2017, the derivative represents only the $7.5 million contingent interest amount, as determined in February 2017, and to be paid in August 2017. Verisign will have the right to redeem the Subordinated Convertible Debentures under the terms of the indenture, starting August 15, 2017. Therefore, the fair value of the contingent interest embedded derivative for periods after August 15, 2017 is negligible.
The Company’s other financial instruments include cash, accounts receivable, restricted cash, and accounts payable. As of March 31, 2017, the carrying value of these financial instruments approximated their fair value. The fair value of the Company’s Subordinated Convertible Debentures was $3.2 billion as of March 31, 2017. The fair values of the senior notes due 2023 (the “2023 Senior Notes”) and the senior notes due 2025 (the “2025 Senior Notes”) were $761.3 million and $515.0 million, respectively, as of March 31, 2017. The fair values of these debt instruments are based on available market information from public data sources and are classified as Level 2.