Cash and Cash Equivalents and Short-term Investments

3 Months Ended

Mar. 31, 2018

Cash Cash Equivalents And Short Term Investments [Abstract]

Cash and Cash Equivalents and Short-term Investments

NOTE 3 — Cash and Cash Equivalents and Short-term Investments

The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Cash equivalents are comprised of money market accounts, U.S. Treasury securities, corporate bonds and commercial paper, and repurchase agreements. Short-term investments are comprised of U.S. Treasury securities and corporate bonds and commercial paper with an original maturity of six months or less from date of purchase. The Company classifies its short-term investments as held to maturity as the Company has positive intent and ability to hold to maturity. Cash, cash equivalents, and short-term investments consist of the following:

	March 31,		December 31,
	2018		2017
	(In thousands)
Current assets:
Cash and cash equivalents:
Cash	$	10,525	$	8,971
Money market funds		96,575		215,572
U.S. Treasury securities		13,992		—
Corporate bonds and commercial paper		36,156		—
Repurchase Agreements		15,000		—
Total cash and cash equivalents		172,248		224,543
Short-term investments:
U.S. Treasury securities		13,945		—
Corporate bonds and commercial paper		52,626		—
Total short-term securities		66,571		—
Total cash, cash equivalents, and short-term investments	$	238,819	$	224,543

The Company reviews its debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer and intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s amortized cost basis. If the Company believes that an other-than-temporary decline exists in one of these securities, it writes down these investments to fair value. For debt securities, the portion of the write-down related to credit loss would be recorded to other expense. During the three months ended March 31, 2018 and 2017, the Company did not record any other-than-temporary impairment losses associated with short-term investments.

Financial Engines, Inc. 10-Q