Marcus & Millichap, Inc. Quarterly report pursuant to Section 13 or 15(d)

Investments in Marketable Securities (Tables)

Investments in Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Allowance for Credit Losses, Gross Unrealized Gains/Losses in Accumulated Other Comprehensive Income/Loss and Fair Value of Marketable Securities, Available-for-Sale, by Type of Security

Amortized cost, allowance for credit losses, gross unrealized gains/losses in accumulated other comprehensive income/loss and fair value of marketable debt securities,

available-for-sale,

by type of security consisted of the following (in th

usands):


	September 30, 2020
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments:
U.S. treasuries	$	93,425	$	—	$	216	$	—		$	93,641
U.S. government sponsored entities		37,721		—		19		—			37,740
Corporate debt		38,093		—		40		(1	)		38,132

	$	169,239	$	—	$	275	$	(1	)	$	169,513

Long-term investments:
U.S. treasuries	$	3,396	$	—	$	293	$	—		$	3,689
U.S. government sponsored entities		1,233		—		36		—			1,269
Corporate debt		32,584		—		1,837		(64	)		34,357
ABS and other		7,033		—		189		(32	)		7,190

	$	44,246	$	—	$	2,355	$	(96	)	$	46,505


	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments:
U.S. treasuries	$	124,389	$	196	$	(5	)	$	124,580
U.S. government sponsored entities		—		—		—			—
Corporate debt		26,128		44		—			26,172

	$	150,517	$	240	$	(5	)	$	150,752

Long-term investments:
U.S. treasuries	$	24,188	$	235	$	—		$	24,423
U.S. government sponsored entities		1,353		3		(1	)		1,355
Corporate debt		25,447		1,027		(3	)		26,471
ABS and other		8,480		93		(13	)		8,560

	$	59,468	$	1,358	$	(17	)	$	60,809

Available-for-Sale Debt Securities in a Continuous Unrealized Loss Position

The Company’s investments in

available-for-sale

debt securities that have been in a continuous unrealized loss position, for which an allowance for credit losses has not been recorded, by type of security consisted of the following (in thousands):


	September 30, 2020
	Less than 12 months					12 months or greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. treasuries	$	5,051	$	—		$	—	$	—		$	5,051	$	—
Corporate debt		9,823		(65	)		—		—			9,823		(65	)
ABS and other		1,143		(25	)		155		(7	)		1,298		(32	)

	$	16,017	$	(90	)	$	155	$	(7	)	$	16,172	$	(97	)


	December 31, 2019
	Less than 12 months					12 months or greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. treasuries	$	39,823	$	(5	)	$	—	$	—		$	39,823	$	(5	)
U.S. government sponsored entities		—		—			566		(1	)		566		(1	)
Corporate debt		6,029		(3	)		—		—			6,029		(3	)
ABS and other		1,971		(13	)		—		—			1,971		(13	)

	$	47,823	$	(21	)	$	566	$	(1	)	$	48,389	$	(22	)

Gross Realized Gains and Losses from Sale of Available for Sale Debt Securities

Gross realized gains and losses from the sales of the Company’s

available-for-sale

debt securities consisted of the following (in thousands):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019		2020			2019
Gross realized gains (1)	$	97		$	58	$	229		$	117

Gross realized losses (1)	$	(34	)	$	—	$	(49	)	$	(47	)

(1)	Recorded in other income (expense), net in the condensed consolidated statements of net and comprehensive income. The cost basis of securities sold were determined based on the specific identification method.

Schedule of Amortized Cost and Fair Value of Marketable Debt Securities, Available-for-Sale, by Contractual Maturity

Amortized cost and fair value of marketable debt securities,

available-for-sale,

by contractual maturity consisted of the following (in thousands, except weighted average data):


	September 30, 2020				December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	169,239	$	169,513	$	150,517	$	150,752
Due after one year through five years		29,162		30,488		41,123		41,794
Due after five years through ten years		10,307		11,136		12,813		13,467
Due after ten years		4,777		4,881		5,532		5,548

	$	213,485	$	216,018	$	209,985	$	211,561

Weighted average contractual maturity				1.7 years				1.7 years