Marketable Securities

9 Months Ended

Sep. 30, 2024

Debt Securities, Available-for-Sale [Abstract]

Rambus invests its excess cash and cash equivalents primarily in U.S. government-sponsored obligations, corporate bonds, commercial paper and notes, time deposits and money market funds 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, 2024
(In thousands)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses
Cash	$	101,110	$	101,110	$	—	$	—
Cash equivalents:
Money market funds	6,089		6,089		—		—

Corporate bonds, commercial paper and notes	6,781		6,781		1		(1)
Total cash equivalents	12,870		12,870		1		(1)
Total cash and cash equivalents	113,980		113,980		1		(1)
Marketable securities:
Time deposits	13,090		13,090		—		—
U.S. Government bonds and notes	180,035		179,639		428		(32)
Corporate bonds, commercial paper and notes	125,592		125,315		287		(10)
Total marketable securities	318,717		318,044		715		(42)
Total cash, cash equivalents and marketable securities	$	432,697	$	432,024	$	716	$	(43)


	As of December 31, 2023
(In thousands)	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses
Cash	$	88,486	$	88,486	$	—	$	—
Cash equivalents:
Money market funds	3,790		3,790		—		—
U.S. Government bonds and notes	2,491		2,491		—		—
Total cash equivalents	6,281		6,281		—		—
Total cash and cash equivalents	94,767		94,767		—		—
Marketable securities:
U.S. Government bonds and notes	194,428		194,389		251		(212)
Corporate bonds, commercial paper and notes	136,649		136,892		162		(405)
Total marketable securities	331,077		331,281		413		(617)
Total cash, cash equivalents and marketable securities	$	425,844	$	426,048	$	413	$	(617)

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


	As of
(In thousands)	September 30, 2024		December 31, 2023
Cash	$	101,110	$	88,486
Cash equivalents	12,870		6,281
Total cash and cash equivalents	113,980		94,767
Marketable securities	318,717		331,077
Total cash, cash equivalents and marketable securities	$	432,697	$	425,844

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 impairment.

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, 2024 and December 31, 2023 are as follows:


	Fair Value				Gross Unrealized Losses
(In thousands)	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Less than 12 months
U.S. Government bonds and notes	$	46,746	$	32,454	$	(32)	$	(53)
Corporate bonds, commercial paper and notes	21,009		46,407		(11)		(40)
Total cash equivalents and marketable securities in a continuous unrealized loss position for less than 12 months	67,755		78,861		(43)		(93)
12 months or greater
U.S. Government bonds and notes	—		6,841		—		(159)
Corporate bonds, commercial paper and notes	—		16,619		—		(365)
Total marketable securities in a continuous unrealized loss position for 12 months or greater	—		23,460		—		(524)
Total cash equivalents and marketable securities in a continuous unrealized loss position	$	67,755	$	102,321	$	(43)	$	(617)

The gross unrealized losses at September 30, 2024 and December 31, 2023 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 bonds, commercial paper and notes. 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). 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, 2024
Due in less than one year	$	282,683
Due from one year through three years	42,815
Total	$	325,498

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