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In September 2015, the FASB issued Accounting Standards Update No. 2015-16,€Business Combinations€("ASU
2015-16"). ASU 2015-16 eliminates the requirement for an acquirer in a business combination to account for measurement-
period adjustments retrospectively. Rather, the acquirer must recognize adjustments during the period in which the amounts are
determined, including the effect on earnings of any amounts that would have been recorded in previous periods. The guidance
is effective for fiscal years beginning after December 15, 2015, although early adoption is permitted. We early adopted this
standard in the year ended December 31, 2015. The adoption of this guidance did not have a material effect on our consolidated
financial statements, as there were no measurement period adjustments.
In April 2015, The FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (Subtopic
835-30) ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in
the balance sheet as a direct deduction from the corresponding debt liability, consistent with the presentation of a debt discount.
The guidance is effective for fiscal years beginning after December 15, 2015, although early adoption is permitted. We early
adopted this standard in the year ended December 31, 2015. This resulted in a $5.9 million and $2.6 million reduction to our
convertible senior notes and equity at December 31, 2015 related to issuance costs paid, which will be accreted to interest
expense over the term of the notes.
In May€2014, the FASB issued Accounting Standards Update No.€2014-9,€Revenue from Contracts with Customers
(Topic 606)€(“ASU 2014-9”). ASU 2014-9€outlines a single comprehensive model for entities to use in accounting for revenue.
In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the
Effective Date, which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose
to adopt the standard as of the original effective date. As such, the updated standard will be effective for us in the first quarter of
2018, with the option to adopt it in the first quarter of 2017. Entities have the option of using either a full retrospective or a
modified retrospective approach to adopt the guidance.€We are currently evaluating implementation methods and the effect that
implementation of this standard will have on our consolidated financial statements upon adoption.
Table of Contents
Pandora Media,€Inc.
79
3.€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ Composition of Certain Financial Statement Captions
€
Cash, Cash Equivalents and Investments
Cash, cash equivalents and investments consisted of the following:
€
As of December 31,
2014 2015
(in€thousands)
Cash and cash equivalents
Cash $72,487 $104,361
Money market funds 89,113 180,021
Commercial paper 9,349 31,089
Corporate debt securities 5,008 2,000
U.S. government and government agency debt securities — 17,196
Total cash and cash equivalents $175,957 $334,667
Short-term investments
Commercial paper $45,443 $4,792
Corporate debt securities 128,691 31,052
U.S. government and government agency debt securities 4,497 —
Total short-term investments $178,631 $35,844
Long-term investments
Corporate debt securities $100,998 $46,369
U.S. government and government agency debt securities 3,245 —
Total long-term investments $104,243 $46,369
Total cash, cash equivalents and investments $458,831 $416,880
€