Marketable Securities

9 Months Ended

Sep. 30, 2020

Debt Securities, Available-for-sale [Abstract]

Marketable SecuritiesRambus invests its excess cash and cash equivalents primarily in U.S. government-sponsored obligations, commercial paper, corporate notes and bonds, money market funds and municipal notes and bonds that mature within three years.

All cash equivalents and marketable securities are classified as available-for-sale. Total cash, cash equivalents and marketable securities are summarized as follows:


	As of September 30, 2020
(In thousands)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Weighted Rate of Return
Money market funds	$	25,123	$	25,123	$	—	$	—	0.04	%
U.S. Government bonds and notes	203,461		203,482		4		(25)		0.13	%
Corporate notes, bonds, commercial paper and other	232,785		232,857		15		(87)		0.21	%
Total cash equivalents and marketable securities	461,369		461,462		19		(112)
Cash	58,852		58,852		—		—
Total cash, cash equivalents and marketable securities	$	520,221	$	520,314	$	19	$	(112)


	As of December 31, 2019
(In thousands)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Weighted Rate of Return
Money market funds	$	10,065	$	10,065	$	—	$	—	1.48	%
U.S. Government bonds and notes	39,086		39,087		—		(1)		1.49	%
Corporate notes, bonds, commercial paper and other	314,391		314,435		19		(63)		1.81	%
Total cash equivalents and marketable securities	363,542		363,587		19		(64)
Cash	44,122		44,122		—		—
Total cash, cash equivalents and marketable securities	$	407,664	$	407,709	$	19	$	(64)

Available-for-sale securities are reported at fair value on the balance sheets and classified as follows:


	As of
(In thousands)	September 30, 2020		December 31, 2019
Cash equivalents	$	30,623	$	58,054
Short term marketable securities	430,746		305,488
Total cash equivalents and marketable securities	461,369		363,542
Cash	58,852		44,122
Total cash, cash equivalents and marketable securities	$	520,221	$	407,664

The Company continues to invest in highly rated quality, highly liquid debt securities. The Company holds all of its marketable securities as available-for-sale, marks them to market, and regularly reviews its portfolio to ensure adherence to its investment policy and to monitor individual investments for risk analysis, proper valuation, and unrealized losses that may be other than temporary.

The estimated fair value and gross unrealized losses of cash equivalents and marketable securities classified by the length of time that the securities have been in a continuous unrealized loss position at September 30, 2020 and December 31, 2019 are as follows:


	Fair Value				Gross Unrealized Loss
(In thousands)	September 30, 2020		December 31, 2019		September 30, 2020		December 31, 2019
Less than 12 months:
U.S. Government bonds and notes	$	61,419	$	14,112	$	(25)	$	(1)
Corporate notes, bonds, commercial paper and other	99,678		250,822		(87)		(63)





Total cash equivalents and marketable securities in a continuous unrealized loss position	$	161,097	$	264,934	$	(112)	$	(64)

The gross unrealized loss at September 30, 2020 and December 31, 2019 was not material in relation to the Company’s total available-for-sale portfolio. The gross unrealized loss can be primarily attributed to a combination of market conditions as well as the demand for and duration of the U.S. government-sponsored obligations and corporate notes and bonds. The Company

reasonably believes that there is no need to sell these investments and that it can recover the amortized cost of these investments. The Company has found no evidence of impairment due to credit losses in its portfolio. Therefore, these unrealized losses were recorded in other comprehensive income. However, the Company cannot provide any assurance that its portfolio of cash, cash equivalents and marketable securities will not be impacted by adverse conditions in the financial markets, which may require the Company in the future to record an impairment charge for credit losses which could adversely impact its financial results.

The contractual maturities of cash equivalents (excluding money market funds which have no maturity) and marketable securities are summarized as follows:



(In thousands)	September 30, 2020
Due less than one year	$	379,932
Due from one year through three years	56,314
Total	$	436,246

Refer to Note 8, “Fair Value of Financial Instruments,” for discussion regarding the fair value of the Company’s cash equivalents and marketable securities.