Pandora 2012 Annual Report Download - page 85

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Table of Contents
Pandora Media, Inc.
Notes to Consolidated Financial Statements - Continued
3. Composition of Certain Financial Statement Captions
Cash, Cash Equivalents and Short-term Investments
Cash, cash equivalents and short-term investments consisted of the following:
As of
January 31,
2011
As of
January 31,
2012
(in thousands)
Cash and cash equivalents:
Cash $ 4,974 $ 6,604
Money market funds 38,074 31,614
Commercial paper — 2,893
Corporate debt securities — 3,015
Total cash and cash equivalents $ 43,048 $ 44,126
Short-term investments:
Commercial paper $ — $ 27,587
Corporate debt securities — 17,968
U.S. agency notes — 900
Total short-term investments $ — $ 46,455
Cash, cash equivalents and short-term investments $ 43,048 $ 90,581
The Company's short-term investments have maturities of less than 12 months and are classified as available for sale. As of January 31, 2011 and 2012
the cost basis of the Company's cash and cash equivalents approximated their fair values and as a result, no unrealized gains or losses were recorded as of
January 31, 2011 and 2012.
The following table summarizes the Company's available-for-sale securities' adjusted cost, gross unrealized gains, gross unrealized losses and fair value
by significant investment category as of January 31, 2012. No such investments were held as of January 31, 2011.
As of January 31, 2012
Adjusted
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
(in thousands)
Money market funds $ 31,614 $ — $ — $ 31,614
Commercial paper 30,481 — (1) 30,480
Corporate debt securities 20,987 1 (5) 20,983
U.S. agency notes 900 — — 900
Total cash equivalents and marketable securities $ 83,982 $1 $(6) $ 83,977
The Company's 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, 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.
73