Quarterly report pursuant to Section 13 or 15(d)

Investments in Marketable Securities

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Investments in Marketable Securities
9 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Investments in Marketable Securities
6.

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):

 

     September 30, 2018      December 31, 2017  
     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

   $ 106,291      $ —        $ (150   $ 106,141      $ 57,712      $ —        $ (88   $ 57,624  

U.S. government sponsored entities

     3,502        —          (17     3,485        7,016        —          (8     7,008  

Corporate debt securities

     10,988        —          (13     10,975        8,931        —          (3     8,928  

Asset-backed securities and other

     100        —          —         100        —          —                 
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
   $ 120,881      $ —        $ (180   $ 120,701      $ 73,659      $ —        $ (99   $ 73,560  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Long-term investments:

                     

U.S. treasuries

   $ 52,865      $ —        $ (343   $ 52,522      $ 18,111      $ 7      $ (164   $ 17,954  

U.S. government sponsored entities

     1,603        —          (83     1,520        5,306        —          (62     5,244  

Corporate debt securities

     25,374        4        (471     24,907        22,505        268        (54     22,719  

Asset-backed securities and other

     6,252        1        (67     6,186        6,180        17        (15     6,182  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
   $ 86,094      $ 5      $ (964   $ 85,135      $ 52,102      $ 292      $ (295   $ 52,099  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

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):

 

     September 30, 2018      December 31, 2017  
     Unrealized
Loss
     Fair Value      Unrealized
Loss
     Fair Value  

Less than 12 months

   $ (730    $ 187,177      $ (158    $ 63,229  
  

 

 

    

 

 

    

 

 

    

 

 

 

12 months or longer

   $ (414    $ 17,099      $ (236    $ 44,961  
  

 

 

    

 

 

    

 

 

    

 

 

 

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
September 30,
     Nine Months Ended
September 30,
 
     2018      2017      2018      2017  

Gross realized gains (1)

   $ —        $ 1      $ 12      $ 2  
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross realized losses (1)

   $ —        $ —        $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(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.

As of September 30, 2018, 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 that it will be required to sell the investment before recovery of the investment’s cost basis. The Company has no current intent to sell, and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. 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, anticipated liquidity and capital requirements, anticipated credit deterioration, duration management or when a security no longer meets the criteria of the Company’s investment policy.

 

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

 

     September 30, 2018      December 31, 2017  
     Amortized
Cost
     Fair Value      Amortized
Cost
     Fair Value  

Due in one year or less

   $ 120,881      $ 120,701      $ 73,659      $ 73,560  

Due after one year through five years

     63,511        63,236        30,644        30,517  

Due after five years through ten years

     16,451        15,955        15,090        15,200  

Due after ten years

     6,132        5,944        6,368        6,382  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 206,975      $ 205,836      $ 125,761      $ 125,659  
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average contractual maturity

     2.0 years           2.6 years     

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