Marketable Securities

12 Months Ended

Dec. 31, 2021

Debt Securities, Available-for-sale [Abstract]

Rambus 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 December 31, 2021
(In thousands)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Weighted Rate of Return
Money market funds	$	7,402	$	7,402	$	—	$	—	0.02	%
U.S. Government bonds and notes	102,812		103,113		—		(301)		0.29	%
Corporate notes, bonds and commercial paper	287,905		288,667		8		(770)		0.22	%
Total cash equivalents and marketable securities	398,119		399,182		8		(1,071)
Cash	87,490		87,490		—		—
Total cash, cash equivalents and marketable securities	$	485,609	$	486,672	$	8	$	(1,071)


	As of December 31, 2020
(In thousands)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Weighted Rate of Return
Money market funds	$	18,162	$	18,162	$	—	$	—	0.01	%
U.S. Government bonds and notes	169,633		169,670		3		(40)		0.12	%
Corporate notes, bonds and commercial paper	253,391		253,412		61		(82)		0.20	%
Total cash equivalents and marketable securities	441,186		441,244		64		(122)
Cash	61,463		61,463		—		—
Total cash, cash equivalents and marketable securities	$	502,649	$	502,707	$	64	$	(122)

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


	As of December 31,
(In thousands)	2021		2020

Cash equivalents	$	20,401	$	67,504
Short-term marketable securities	377,718		373,682
Total cash equivalents and marketable securities	398,119		441,186
Cash	87,490		61,463
Total cash, cash equivalents and marketable securities	$	485,609	$	502,649

The Company continues to invest in highly rated and 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 December 31, 2021 and 2020 are as follows:


	Fair Value				Gross Unrealized Loss
(In thousands)	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020


Less than 12 months
U.S. Government bonds and notes	$	82,822	$	70,548	$	(301)	$	(40)
Corporate notes, bonds and commercial paper	255,783		181,349		(770)		(82)

Total cash equivalents and marketable securities in a continuous unrealized loss position	$	338,605	$	251,897	$	(1,071)	$	(122)

The gross unrealized losses at December 31, 2021 and 2020 were not material in relation to the Company’s total available-for-sale portfolio. The gross unrealized losses 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, bonds and commercial paper. 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 (loss). 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)	December 31, 2021
Due less than one year	$	222,641
Due from one year through three years	168,076
Total	$	390,717

Refer to Note 9, Fair Value of Financial Instruments,” for discussion regarding the fair value of the Company’s cash equivalents and marketable securities.