Annual report pursuant to Section 13 and 15(d)

Investments in Marketable Securities

v3.6.0.2
Investments in Marketable Securities
 12 Months Ended
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
Investments in Marketable Securities
5. 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):

 

    December 31, 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

   $ 24,987     $  —     $ (30 )    $ 24,957     $ 62,343     $  —     $ (71 )    $ 62,272  

U.S. government sponsored entities

     2,497       —       —       2,497       17,571       —       (12 )      17,559  

Asset-backed securities and other

     —       —       —       —       29       —       —       29  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  $ 27,484     $ —     $ (30 )    $ 27,454     $ 79,943     $ —     $ (83 )    $ 79,860  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Long-term investments:

                

U.S. treasuries

   $ 40,865     $  —     $ (229 )    $ 40,636     $ 15,283     $  —     $ (112 )    $ 15,171  

U.S. government sponsored entities

     12,618       —       (58 )      12,560       12,107       —       (85 )      12,022  

Corporate debt securities

     17,841       74       (165 )      17,750       17,219       5       (519 )      16,705  

Asset-backed securities and other

     6,557       18       (46 )      6,529       10,649       —       (152 )      10,497  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  $ 77,881     $ 92     $ (498 )    $ 77,475     $ 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):

 

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

Less than 12 months

    $ (491 )     $ 86,105      $ (951 )     $ 129,117  
  

 

 

     

 

 

     

 

 

     

 

 

  

12 months or longer

    $ (37 )     $ 721      $ —        $ —    
  

 

 

     

 

 

     

 

 

     

 

 

  

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

 

     December 31,  
     2016      2015  

Gross realized gain (1)

    $ 43      $ 135  
  

 

 

     

 

 

  

Gross realized loss (1)

    $ (166 )     $ (3 ) 
  

 

 

     

 

 

  

 

(1)  Recorded in other income (expense), net in the 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, liquidity management and when a security no longer meets the criteria of the Company’s investment policy. During 2016, the Company sold one security, which no longer met the requirements of its investment policy for a loss of $152,000.

As of December 31, 2016, 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):

 

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

Due in one year or less

    $ 27,484      $ 27,454      $ 79,943      $ 79,860  

Due after one year through five years

      57,309        57,144        28,634        28,465  

Due after five years through ten years

      14,992        14,841        18,020        17,466  

Due after ten years

      5,580        5,490        8,604        8,464  
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 105,365      $ 104,929      $ 135,201      $ 134,255  
  

 

 

     

 

 

     

 

 

     

 

 

  

Weighted average maturity

      3.5 years           3.3 years     

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