Pandora 2016 Annual Report Download - page 92

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As of December 31, 2014
Twelve Months or Less More than Twelve Months Total
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
(in thousands)
Money market funds $—$—$—$—$—$—
Commercial paper — — — — — —
Corporate debt securities 192,699 (422)12,148 (22)204,847 (444)
U.S. government and
government agency debt
securities 5,240 (9)— — 5,240 (9)
Total $197,939 $(431) $ 12,148 $(22) $ 210,087 $(453)
As of December 31, 2015
Twelve Months or Less More than Twelve Months Total
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
(in thousands)
Money market funds $—$—$—$—$—$—
Commercial paper — — — — — —
Corporate debt securities 64,804 (293)8,531 (54)73,335 (347)
U.S. government and
government agency debt
securities 16,241 (2)— — 16,241 (2)
Total $81,045 $(295) $ 8,531 $(54) $ 89,576 $(349)
Our investment policy requires investments to be investment grade, primarily rated “A1” by Standard€& Poor’s or “P1”
by Moody’s or better for short-term investments and rated “A” by Standard€& Poor’s or “A2” by Moody’s or better for long-
term investments, with the objective of minimizing the potential risk of principal loss. In addition, the investment policy limits
the amount of credit exposure to any one issuer.
€
The unrealized losses on our available-for-sale securities as of December€31, 2015 were primarily a result of unfavorable
changes in interest rates subsequent to the initial purchase of these securities. As of December€31, 2015, we owned 71 securities
that were in an unrealized loss position. Based on our cash flow needs, we may be required to sell a portion of these securities
prior to maturity. However, we expect to recover the full carrying value of these securities. As a result, no portion of the
unrealized losses at December€31, 2015 is deemed to be other-than-temporary and the unrealized losses are not deemed to be
credit losses. When evaluating the investments for other-than-temporary impairment, we review factors such as the length of
time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and
our intent to sell, or whether it is more likely than not we will be required to sell, the investment before recovery of the
investment’s amortized cost basis. During the twelve months ended months ended December€31, 2015, we did not recognize
any impairment charges. During the€twelve months ended December€31, 2015, proceeds from the sale of available-for-sale
securities were $111.4 million. We did€not recognize a realized gain or loss in connection with these sales.
Accounts Receivable, net
Accounts receivable, net consisted of the following as of December€31, 2014 and 2015:
Table of Contents
Pandora Media,€Inc.
Notes to Consolidated Financial Statements - Continued
81