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Cash, Cash Equivalents and Short-Term Investments

9 Months Ended

Sep. 30, 2021

Cash, Cash Equivalents and Short-Term Investments

Cash, Cash Equivalents and Short-Term Investments

Note 5. Cash, Cash Equivalents and Short-Term Investments

Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands):


	September 30,		December 31,
	2021		2020
Cash	$	29,296	$	25,053
Cash equivalents:
Money market mutual fund		14,384		11,820
Total cash and cash equivalents		43,680		36,873
Short-term investments:
U.S. Treasury notes and bills		153,377		23,309
Mutual funds		110,060		33,135
Corporate debt securities		42,365		—
Total short-term investments		305,802		56,444
Cash, cash equivalents and short-term investments	$	349,482	$	93,317

Available-for-sale investments

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale investments by type of security at September 30, 2021 were as follows (in thousands):


	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
U.S. Treasury notes	$	124,171	$	13	$	(802)	$	123,382
U.S. Treasury bills		29,987		8		—		29,995
Corporate debt securities		42,991		—		(626)		42,365
Total available-for-sale investments	$	197,149	$	21	$	(1,428)	$	195,742

The following table summarizes the fair value of available-for-sale investments based on stated contractual maturities as of September 30, 2021:


	Amortized Cost		Fair Value
Due within one year	$	42,087	$	42,085
Due between one and five years		155,062		153,657
Total	$	197,149	$	195,742

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale investments by type of security at December 31, 2020 were as follows (in thousands):


			Unrealized		Unrealized
	Amortized Cost		Gains		Losses		Fair Value
U.S. Treasury notes	$	23,179	$	173	$	(43)	$	23,309
Total available-for-sale investments	$	23,179	$	173	$	(43)	$	23,309

The following table summarizes the fair value of available-for-sale investments based on stated contractual maturities as of December 31, 2020:


	Amortized Cost		Fair Value
Due within one year	$	14,084	$	14,111
Due between one and two years		9,095		9,198
Total	$	23,179	$	23,309

The primary objective of our investment portfolio is to enhance overall returns in an efficient manner while maintaining safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with primarily investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.

We review our available-for-sale investments for other-than-temporary declines in fair value below our cost basis each quarter and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. The evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below our cost basis, as well as adverse conditions related specifically to the security such as any changes to the credit rating of the security and the intent to sell or whether we will more likely than not be required to sell the security before recovery of its amortized cost basis. Our assessment of whether a security is other-than-temporarily impaired could change in the future based on new developments or changes in assumptions related to that particular security.

During the three and nine months ended September 30, 2021, we had realized (gains) and losses of ($0.01) and $0.08 million, respectively, on available-for-sale investments.

Equity Investments

We held investments in equity securities with readily determinable fair values of $110.1 million at September 30, 2021. These investments consist of mutual funds that invest primarily in tax-free municipal bonds and treasury inflation protected securities.

Unrealized gains (losses) during 2021 and 2020 related to equity securities held at September 30, 2021 and 2020 are as follows (in thousands):


	September 30,
	2021		2020
Net losses recognized during the nine months ended September 30 on equity securities	$	(308)	$	(367)
Less: net gains (losses) recognized during the year on equity securities sold during the period		—		(805)
Unrealized gains (losses) recognized during the nine months on equity securities still held at September 30, 2021 and 2020	$	(308)	$	438