Quarterly report pursuant to Section 13 or 15(d)

Investments in Marketable Securities

v3.5.0.2
Investments in Marketable Securities
 6 Months Ended
Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
Investments in Marketable Securities
4. Investments in Marketable Securities

Amortized cost and fair value of marketable securities, available-for-sale, by type of security consisted of the following (in thousands):

 

     June 30, 2016      December 31, 2015  
     Amortized
Cost		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value 		     Amortized
Cost		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value 		 

Short-term investments:

                      

U.S. Treasuries

    $ 53,278       $ 35       $ —        $ 53,313       $ 62,343       $ —         $ (71 )    $ 62,272   

U.S. Government Sponsored Entities

      8,509         7         —          8,516         17,571         —           (12 )      17,559   

Corporate debt securities

      19,939         7         —          19,946         29         —           —          29   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
   $ 81,726       $ 49       $ —        $ 81,775       $ 79,943       $ —         $ (83 )    $ 79,860   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Long-term investments:

                      

U.S. Treasuries

    $ 21,176       $ 250       $ —        $ 21,426       $ 15,283       $ —         $ (112 )    $ 15,171   

U.S. Government Sponsored Entities

      15,919         48         —          15,967         12,107         —           (85 )      12,022   

Corporate debt securities

      16,412         503         (39 )      16,876         17,219         5         (519 )      16,705   

Asset-backed securities and other

      9,839         128         (58 )      9,909         10,649         —           (152 )      10,497   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  
   $ 63,346       $ 929       $ (97 )    $ 64,178       $ 55,258       $ 5       $ (868 )    $ 54,395   
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

The amortized cost and fair value of the Company’s investments in available-for-sale securities that have been in a continuous unrealized loss position consisted of the following (in thousands):

 

     June 30, 2016      December 31, 2015  
     Unrealized
Loss		      Fair Value      Unrealized
Loss		      Fair Value  

Less than 12 months

    $ (72 )     $ 4,607       $ (951 )     $ 129,117   
  

 

 

     

 

 

     

 

 

     

 

 

  

12 months or longer

    $ (25 )     $ 1,879       $ —         $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

 

Gross realized gains and gross realized losses from the sales of the Company’s available-for-sale securities consisted of the following (in thousands):

 

     Three Months Ended
June 30,		      Six Months Ended
June 30,		  
     2016      2015      2016      2015  

Gross realized gain (1)

    $ 20       $ 56       $ 20       $ 133   
  

 

 

     

 

 

     

 

 

     

 

 

  

Gross realized loss (1)

    $ —         $ —         $ (155 )     $ (3 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(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 on the specific identification method.

The Company may sell certain of its marketable securities, available-for-sale prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration, duration management and when a security no longer meets the criteria of the Company’s investment policy. During the six months ended June 30, 2016, the Company sold one security, which no longer met the requirements of its investment policy, for a loss of $152,000.

The Company considers the declines in market value of its marketable securities, available-for-sale to be temporary in nature and does not consider any of its investments other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy generally requires investments to be investment grade, with the primary objective of minimizing the potential risk of principal loss and matching long-term liabilities. When evaluating an investment for other-than-temporary impairment the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates and the Company’s 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 cost basis.

Amortized cost and fair value of marketable securities, available-for-sale, by contractual maturity consisted of the following (in thousands):

 

     June 30, 2016      December 31, 2015  
     Amortized
Cost		      Fair Value      Amortized
Cost		      Fair Value  

Due in one year or less

    $ 81,726       $ 81,775       $ 79,943       $ 79,860   

Due after one year through five years

      40,259         40,473         28,634         28,465   

Due after five years through ten years

      15,002         15,529         18,020         17,466   

Due after ten years

      8,085         8,176         8,604         8,464   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 145,072       $ 145,953       $ 135,201       $ 134,255   
  

 

 

     

 

 

     

 

 

     

 

 

  

Weighted average contractual maturity

      3.0 years            3.3 years      

Actual maturities may differ from contractual maturities because certain borrowers have the right to prepay certain obligations with or without prepayment penalties.