Marketable Securities

3 Months Ended

Mar. 31, 2023

Debt Securities, Available-for-Sale [Abstract]

Rambus invests its excess cash and cash equivalents primarily in money market funds, time deposits, U.S. government-sponsored obligations, and corporate notes, bonds and commercial paper 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, 2023
(In thousands, except percentages)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Weighted Average Rate of Return
Money market funds	$	13,089	$	13,089	$	—	$	—	3.80	%
Time deposits	9,646		9,646		—		—		6.98	%
U.S. Government bonds and notes	96,250		97,469		16		(1,235)		2.37	%
Corporate notes, bonds and commercial paper	90,360		91,534		4		(1,178)		2.31	%
Total cash equivalents and marketable securities	209,345		211,738		20		(2,413)
Cash	82,792		82,792		—		—
Total cash, cash equivalents and marketable securities	$	292,137	$	294,530	$	20	$	(2,413)


	As of December 31, 2022
(In thousands, except percentages)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Weighted Average Rate of Return
Money market funds	$	15,763	$	15,763	$	—	$	—	2.63	%
U.S. Government bonds and notes	96,371		98,250		1		(1,880)		1.73	%
Corporate notes, bonds and commercial paper	106,355		108,092		7		(1,744)		2.59	%
Total cash equivalents and marketable securities	218,489		222,105		8		(3,624)
Cash	94,737		94,737		—		—
Total cash, cash equivalents and marketable securities	$	313,226	$	316,842	$	8	$	(3,624)

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, 2023		December 31, 2022
Cash equivalents	$	17,084	$	30,597
Marketable securities	192,261		187,892
Total cash equivalents and marketable securities	209,345		218,489
Cash	82,792		94,737
Total cash, cash equivalents and marketable securities	$	292,137	$	313,226

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, 2023 and December 31, 2022 are as follows:


	Fair Value				Gross Unrealized Losses
(In thousands)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Less than 12 months
U.S. Government bonds and notes	$	30,240	$	28,893	$	(26)	$	(23)
Corporate notes, bonds and commercial paper	29,310		45,538		(24)		(35)
Total cash equivalents and marketable securities in a continuous unrealized loss position for less than 12 months	59,550		74,431		(50)		(58)
12 months or greater
U.S. Government bonds and notes	52,211		62,588		(1,209)		(1,857)
Corporate notes, bonds and commercial paper	49,966		49,559		(1,154)		(1,709)
Total cash equivalents and marketable securities in a continuous unrealized loss position for 12 months or greater	102,177		112,147		(2,363)		(3,566)
Total cash equivalents and marketable securities in a continuous unrealized loss position	$	161,727	$	186,578	$	(2,413)	$	(3,624)

The gross unrealized losses at March 31, 2023 and December 31, 2022 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, 2023
Due less than one year	$	170,602
Due from one year through three years	25,654
Total	$	196,256

Refer to Note 7, “Fair Value of Financial Instruments,” for a discussion regarding the fair value of the Company’s cash equivalents and marketable securities.