Cash, Cash Equivalents, and Marketable Securities

The following table summarizes the Company’s cash, cash equivalents, and marketable securities as of June 30, 2017 and December 31, 2016:



	June 30,		December 31,
	2017		2016
	(In thousands)
Cash	$	56,748	$	39,183
Time deposits	3,173		4,632
Debt securities issued by the U.S. Treasury (Level 1)	1,564,097		1,626,764
Money market funds (Level 1)	191,781		134,790
Equity securities of public companies (Level 1)	1,920		2,174
Total	$	1,817,719	$	1,807,543

Included in Cash and cash equivalents	$	242,426	$	231,945
Included in Marketable securities	1,566,017		1,565,962
Included in Other long-term assets (Restricted cash)	9,276		9,636
Total	$	1,817,719	$	1,807,543

The fair value of the debt securities held as of June 30, 2017 was 1.6 billion, including less than $0.5 million of gross and net unrealized gains. All of the debt securities held as of June 30, 2017 are scheduled to mature in less than one year.

Fair Value Measurements

The fair value of the Company’s investments in money market funds approximates their face value. Such instruments 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. 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 included in Marketable securities. The fair value of all of these financial instruments are classified as Level 1 in the fair value hierarchy.

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 June 30, 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 June 30, 2017, the carrying value of these financial instruments approximated their fair value. The fair value of the Company’s Subordinated Convertible Debentures was $3.4 billion as of June 30, 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 $772.2 million and $535.0 million, respectively, as of June 30, 2017. The fair values of these debt instruments are based on available market information from public data sources and are classified as Level 2.