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

Quarterly report pursuant to Section 13 or 15(d)

Investments in Marketable Debt Securities, Available-for-Sale (Tables)

Investments in Marketable Debt Securities, Available-for-Sale (Tables)

6 Months Ended

Jun. 30, 2022

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 thousands):


	June 30, 2022
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments:

U.S. treasuries	$	123,715	$	—	$	—	$	(1,233	)	$	122,482
Corporate debt		129,913		—		—		(206	)		129,707
Asset-backed securities (“ABS”) and other		859		—		1		(9	)		851

	$	254,487	$	—	$	1	$	(1,448	)	$	253,040

Long-term investments:
U.S. treasuries	$	40,827	$	—	$	—	$	(619	)	$	40,208
U.S. government sponsored entities		646		—		—		(42	)		604
Corporate debt		31,956		—		1		(2,100	)		29,857
ABS and other		7,338		—		3		(422	)		6,919

	$	80,767	$	—	$	4	$	(3,183	)	$	77,588


	December 31, 2021
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term investments:
U.S. treasuries	$	35,767	$	—	$	—	$	(34	)	$	35,733
Corporate debt		148,148		—		22		(35	)		148,135

	$	183,915	$	—	$	22	$	(69	)	$	183,868

Long-term investments:
U.S. treasuries	$	70,902	$	—	$	128	$	(263	)	$	70,767
U.S. government sponsored entities		726		—		22		(3	)		745
Corporate debt		33,197		—		962		(146	)		34,013
ABS and other		7,033		—		82		(30	)		7,085

	$	111,858	$	—	$	1,194	$	(442	)	$	112,610

Available-for-sale Marketable Debt Securities in a Continuous Unrealized Loss Position

The Company’s investments in marketable debt securities,

available-for-sale,

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):


	June 30, 2022
	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	$	162,281	$	(1,852	)	$	—	$	—		$	162,281	$	(1,852	)
U.S. government sponsored entities		506		(27	)		96		(16	)		602		(43	)
Corporate debt		157,965		(2,225	)		592		(80	)		158,557		(2,305	)
ABS and other		6,342		(431	)		—		—			6,342		(431	)

	$	327,094	$	(4,535	)	$	688	$	(96	)	$	327,782	$	(4,631	)


	December 31, 2021
	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	$	103,019	$	(297	)	$	—	$	—		$	103,019	$	(297	)
U.S. government sponsored entities		115		(3	)		—		—			115		(3	)
Corporate debt		115,908		(173	)		146		(8	)		116,054		(181	)
ABS and other		2,915		(30	)		—		—			2,915		(30	)

	$	221,957	$	(503	)	$	146	$	(8	)	$	222,103	$	(511	)

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

Gross realized gains and losses from the sales of the Company’s marketable debt securities,

available-for-sale,

consisted of the following (in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2022			2021		2022			2021


Gross realized gains (1)	$	1		$	9	$	114		$	10

Gross realized losses (1)	$	(17	)	$	—	$	(17	)	$	—

(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.

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):


	June 30, 2022				December 31, 2021
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	254,487	$	253,040	$	183,915	$	183,868
Due after one year through five years		64,064		62,267		96,035		96,257
Due after five years through ten years		11,588		10,546		11,129		11,601
Due after ten years		5,115		4,775		4,694		4,752

	$	335,254	$	330,628	$	295,773	$	296,478

Weighted average contractual maturity				1.3 years				1.5 years