Marketable Securities

3 Months Ended

Mar. 31, 2022

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 March 31, 2022
(In thousands, except percentages)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Weighted Rate of Return
Money market funds	$	6,058	$	6,058	$	—	$	—	0.21	%
U.S. Government bonds and notes	63,023		64,547		—		(1,524)		0.37	%
Corporate notes, bonds and commercial paper	111,314		113,421		—		(2,107)		0.33	%
Total cash equivalents and marketable securities	180,395		184,026		—		(3,631)
Cash	163,296		163,296		—		—
Total cash, cash equivalents and marketable securities	$	343,691	$	347,322	$	—	$	(3,631)


	As of December 31, 2021
(In thousands, except percentages)	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)

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


	As of
(In thousands)	March 31, 2022		December 31, 2021
Cash equivalents	$	15,833	$	20,401
Short-term marketable securities	164,562		377,718
Total cash equivalents and marketable securities	180,395		398,119
Cash	163,296		87,490
Total cash, cash equivalents and marketable securities	$	343,691	$	485,609

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 March 31, 2022 and December 31, 2021 are as follows:


	Fair Value				Gross Unrealized Losses
(In thousands)	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Less than 12 months
U.S. Government bonds and notes	$	63,023	$	82,822	$	(1,524)	$	(301)
Corporate notes, bonds and commercial paper	104,432		255,783		(2,068)		(770)
Total cash equivalents and marketable securities in a continuous unrealized loss position for less than 12 months	167,455		338,605		(3,592)		(1,071)
12 months or greater

Corporate notes, bonds and commercial paper	1,878		—		(39)		—
Total cash equivalents and marketable securities in a continuous unrealized loss position for 12 months or greater	1,878		—		(39)		—
Total cash equivalents and marketable securities in a continuous unrealized loss position	$	169,333	$	338,605	$	(3,631)	$	(1,071)

The gross unrealized losses at March 31, 2022 and December 31, 2021 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 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 (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)	March 31, 2022
Due less than one year	$	65,210
Due from one year through three years	109,127
Total	$	174,337

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