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Investments | 9 Months Ended
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Sep. 30, 2019
Investments [Abstract] |
Investments | 3. Investments As of September 30, 2019, we had invested our excess cash primarily in debt instruments of the U.S. Treasury, financial institutions, corporations, and U.S. government agencies with strong credit ratings and an investment grade rating at or above A-1, P-1 or F-1 by Moody’s, Standard & Poor’s, or S&P, or Fitch, respectively. We have established guidelines relative to diversification and maturities that maintain safety and liquidity. We periodically review and modify these guidelines to maximize trends in yields and interest rates without compromising safety and liquidity. The following table summarizes the contract maturity of the available-for-sale securities we held as of September 30, 2019:
One year or less |  |  | 69 | %
After one year but within two years |  |  | 22 | %
After two years but within three years |  |  | 9 | %
Total |  |  | 100 | %
As illustrated above, at September 30, 2019, 91 percent of our available-for-sale securities had a maturity of less than two years. All of our available-for-sale securities are available to us for use in our current operations. As a result, we categorize all of these securities as current assets even though the stated maturity of some individual securities may be one year or more beyond the balance sheet date. At September 30, 2019, we had an ownership interest of less than 20 percent in four private companies and two public companies with which we conduct business. The privately-held companies are Atlantic Pharmaceuticals Limited, Dynacure SAS, Seventh Sense Biosystems and Suzhou Ribo Life Science Co, Ltd. The publicly-traded companies are ProQR and ATL. The following is a summary of our investments (in thousands):
|  |  |  |  | Gross Unrealized |  |  | Estimated |
September 30, 2019 |  | Cost (1) |  |  | Gains |  |  | Losses |  |  | Fair Value |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities (2) |  | $ | 752,495 |  |  | $ | 1,484 |  |  | $ | (148 | ) |  | $ | 753,831 |
Debt securities issued by U.S. government agencies |  |  | 176,589 |  |  |  | 321 |  |  |  | (45 | ) |  |  | 176,865 |
Debt securities issued by the U.S. Treasury (2) |  |  | 331,371 |  |  |  | 264 |  |  |  | (17 | ) |  |  | 331,618 |
Debt securities issued by states of the U.S. and political subdivisions of the states |  |  | 33,986 |  |  |  | 4 |  |  |  | (27 | ) |  |  | 33,963 |
Other municipal debt securities |  |  | 2,948 |  |  |  | — |  |  |  | — |  |  |  | 2,948 |
Total securities with a maturity of one year or less |  |  | 1,297,389 |  |  |  | 2,073 |  |  |  | (237 | ) |  |  | 1,299,225 |
Corporate debt securities |  |  | 539,820 |  |  |  | 3,108 |  |  |  | (161 | ) |  |  | 542,767 |
Debt securities issued by U.S. government agencies |  |  | 106,536 |  |  |  | 101 |  |  |  | (137 | ) |  |  | 106,500 |
Debt securities issued by the U.S. Treasury |  |  | 34,692 |  |  |  | — |  |  |  | (38 | ) |  |  | 34,654 |
Debt securities issued by states of the U.S. and political subdivisions of the states |  |  | 9,283 |  |  |  | 25 |  |  |  | (6 | ) |  |  | 9,302 |
Total securities with a maturity of more than one year |  |  | 690,331 |  |  |  | 3,234 |  |  |  | (342 | ) |  |  | 693,223 |
Total available-for-sale securities |  | $ | 1,987,720 |  |  | $ | 5,307 |  |  | $ | (579 | ) |  | $ | 1,992,448 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total equity securities included in other current assets (3) |  | $ | 1,212 |  |  | $ | — |  |  | $ | (606 | ) |  | $ | 606 |
Total available-for-sale and equity securities |  | $ | 1,988,932 |  |  | $ | 5,307 |  |  | $ | (1,185 | ) |  | $ | 1,993,054 |
|  |  |  |  | Gross Unrealized |  |  | Estimated |
December 31, 2018 |  | Cost (1) |  |  | Gains |  |  | Losses |  |  | Fair Value |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities |  | $ | 956,879 |  |  | $ | 13 |  |  | $ | (1,858 | ) |  | $ | 955,034 |
Debt securities issued by U.S. government agencies |  |  | 168,839 |  |  |  | 3 |  |  |  | (104 | ) |  |  | 168,738 |
Debt securities issued by the U.S. Treasury |  |  | 244,640 |  |  |  | 15 |  |  |  | (77 | ) |  |  | 244,578 |
Debt securities issued by states of the U.S. and political subdivisions of the states (2) |  |  | 63,572 |  |  |  | — |  |  |  | (323 | ) |  |  | 63,249 |
Total securities with a maturity of one year or less |  |  | 1,433,930 |  |  |  | 31 |  |  |  | (2,362 | ) |  |  | 1,431,599 |
Corporate debt securities |  |  | 299,018 |  |  |  | 194 |  |  |  | (1,286 | ) |  |  | 297,926 |
Debt securities issued by U.S. government agencies |  |  | 107,789 |  |  |  | 194 |  |  |  | (109 | ) |  |  | 107,874 |
Debt securities issued by the U.S. Treasury |  |  | 15,600 |  |  |  | — |  |  |  | (24 | ) |  |  | 15,576 |
Debt securities issued by states of the U.S. and political subdivisions of the states |  |  | 16,980 |  |  |  | — |  |  |  | (287 | ) |  |  | 16,693 |
Total securities with a maturity of more than one year |  |  | 439,387 |  |  |  | 388 |  |  |  | (1,706 | ) |  |  | 438,069 |
Total available-for-sale securities |  | $ | 1,873,317 |  |  | $ | 419 |  |  | $ | (4,068 | ) |  | $ | 1,869,668 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total equity securities included in other current assets (3) |  |  | 1,212 |  |  |  | 137 |  |  |  | — |  |  |  | 1,349 |
Total available-for-sale and equity securities |  | $ | 1,874,529 |  |  | $ | 556 |  |  | $ | (4,068 | ) |  | $ | 1,871,017 |
(1) | Our available-for-sale securities are held at amortized cost.
(2) | Includes investments classified as cash equivalents on our condensed consolidated balance sheet.
(3) | We recognize our equity securities at cost minus impairments, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on our condensed consolidated balance sheet.
The following is a summary of our investments we consider to be temporarily impaired at September 30, 2019. We believe that the decline in value of these securities is temporary and is primarily related to the change in market interest rates since purchase. We believe it is more likely than not that we will be able to hold our debt securities to maturity. Therefore, we anticipate full recovery of our debt securities’ amortized cost basis at maturity.
|  |  |  |  | Less than 12 Months of Temporary Impairment |  |  | More than 12 Months of Temporary Impairment |  |  | Total Temporary Impairment |
(In thousands) |  | Number of Investments |  |  | Estimated Fair Value |  |  | Unrealized Losses |  |  | Estimated Fair Value |  |  | Unrealized Losses |  |  | Estimated Fair Value |  |  | Unrealized Losses |
Corporate debt securities |  |  | 104 |  |  | $ | 304,705 |  |  | $ | (268 | ) |  | $ | 31,675 |  |  | $ | (41 | ) |  | $ | 336,380 |  |  | $ | (309 | )
Debt securities issued by U.S. government agencies |  |  | 28 |  |  |  | 102,733 |  |  |  | (156 | ) |  |  | 22,974 |  |  |  | (26 | ) |  |  | 125,707 |  |  |  | (182 | )
Debt securities issued by the U.S. Treasury |  |  | 9 |  |  |  | 77,918 |  |  |  | (55 | ) |  |  | — |  |  |  | — |  |  |  | 77,918 |  |  |  | (55 | )
Debt securities issued by states of the U.S. and political subdivisions of the states |  |  | 13 |  |  |  | 1,498 |  |  |  | (1 | ) |  |  | 15,597 |  |  |  | (32 | ) |  |  | 17,095 |  |  |  | (33 | )
Total temporarily impaired securities |  |  | 154 |  |  | $ | 486,854 |  |  | $ | (480 | ) |  | $ | 70,246 |  |  | $ | (99 | ) |  | $ | 557,100 |  |  | $ | (579 | )

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- Definition The entire disclosure for investments, including all tables. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 6 -Section 10 -Paragraph (c) -Subparagraph (1) + Details
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- References No definition available. + Details
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