| Investments in Marketable Debt Securities, Available-for-Sale |
Investments in Marketable Debt Securities, Available-for-Sale Amortized cost, allowance for credit losses, gross unrealized gains (losses) in accumulated other comprehensive (loss) income and fair value of marketable debt securities, available-for-sale, by type of security consisted of the following (in thousands):
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September 30, 2023 |
|
Amortized
Cost |
|
Allowance
for Credit
Losses |
|
Gross
Unrealized
Gains |
|
Gross
Unrealized
Losses |
|
Fair
Value |
| Short-term investments: |
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|
|
|
|
|
|
|
| U.S. treasuries |
$ |
52,455 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(201) |
|
|
$ |
52,254 |
|
| Corporate debt |
64,534 |
|
|
— |
|
|
— |
|
|
(75) |
|
|
64,459 |
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|
|
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|
|
|
|
|
|
$ |
116,989 |
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|
$ |
— |
|
|
$ |
— |
|
|
$ |
(276) |
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|
$ |
116,713 |
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| Long-term investments: |
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| U.S. treasuries |
$ |
18,152 |
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|
$ |
— |
|
|
$ |
— |
|
|
$ |
(651) |
|
|
$ |
17,501 |
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| U.S. government sponsored entities |
562 |
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|
— |
|
|
— |
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|
(88) |
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|
474 |
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| Corporate debt |
44,018 |
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|
— |
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|
— |
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|
(2,911) |
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|
41,107 |
|
| Asset-backed securities (“ABS”) and other |
12,044 |
|
|
— |
|
|
— |
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|
(616) |
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|
11,428 |
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|
$ |
74,776 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(4,266) |
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|
$ |
70,510 |
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December 31, 2022 |
|
Amortized
Cost |
|
Allowance
for Credit
Losses |
|
Gross
Unrealized
Gains |
|
Gross
Unrealized
Losses |
|
Fair
Value |
| Short-term investments: |
|
|
|
|
|
|
|
|
|
| U.S. treasuries |
$ |
135,688 |
|
|
$ |
— |
|
|
$ |
14 |
|
|
$ |
(1,153) |
|
|
$ |
134,549 |
|
| Corporate debt |
118,135 |
|
|
— |
|
|
1 |
|
|
(95) |
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|
118,041 |
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| ABS and other |
859 |
|
|
— |
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|
— |
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(15) |
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|
$ |
844 |
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|
$ |
254,682 |
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|
$ |
— |
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|
$ |
15 |
|
|
$ |
(1,263) |
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|
$ |
253,434 |
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| Long-term investments: |
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| U.S. treasuries |
$ |
21,434 |
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|
$ |
— |
|
|
$ |
— |
|
|
$ |
(719) |
|
|
$ |
20,715 |
|
| U.S. government sponsored entities |
602 |
|
|
— |
|
|
— |
|
|
(66) |
|
|
536 |
|
| Corporate debt |
44,214 |
|
|
— |
|
|
21 |
|
|
(2,877) |
|
|
41,358 |
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| ABS and other |
6,569 |
|
|
— |
|
|
— |
|
|
(583) |
|
|
5,986 |
|
|
$ |
72,819 |
|
|
$ |
— |
|
|
$ |
21 |
|
|
$ |
(4,245) |
|
|
$ |
68,595 |
|
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):
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|
September 30, 2023 |
|
Less than 12 months |
|
12 months or greater |
|
Total |
|
Fair
Value |
|
Gross
Unrealized
Losses |
|
Fair
Value |
|
Gross
Unrealized
Losses |
|
Fair
Value(1)
|
|
Gross
Unrealized
Losses |
| U.S. treasuries |
$ |
25,803 |
|
|
$ |
(23) |
|
|
$ |
43,677 |
|
|
$ |
(829) |
|
|
$ |
69,480 |
|
|
$ |
(852) |
|
| U.S. government sponsored entities |
— |
|
|
— |
|
|
472 |
|
|
(88) |
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|
472 |
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|
(88) |
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| Corporate debt |
71,514 |
|
|
(255) |
|
|
33,638 |
|
|
(2,731) |
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|
105,152 |
|
|
(2,986) |
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| ABS and other |
5,265 |
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(97) |
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|
6,130 |
|
|
(519) |
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|
11,395 |
|
|
(616) |
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|
$ |
102,582 |
|
|
$ |
(375) |
|
|
$ |
83,917 |
|
|
$ |
(4,167) |
|
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$ |
186,499 |
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|
$ |
(4,542) |
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|
December 31, 2022 |
|
Less than 12 months |
|
12 months or greater |
|
Total |
|
Fair
Value |
|
Gross
Unrealized
Losses |
|
Fair
Value |
|
Gross
Unrealized
Losses |
|
Fair
Value(1)
|
|
Gross
Unrealized
Losses |
| U.S. treasuries |
$ |
73,055 |
|
|
$ |
(1,232) |
|
|
$ |
66,144 |
|
|
$ |
(640) |
|
|
$ |
139,199 |
|
|
$ |
(1,872) |
|
| U.S. government sponsored entities |
447 |
|
|
(46) |
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|
87 |
|
|
(20) |
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|
534 |
|
|
(66) |
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| Corporate debt |
130,816 |
|
|
(1,909) |
|
|
10,681 |
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|
(1,063) |
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|
141,497 |
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(2,972) |
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| ABS and other |
4,710 |
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(314) |
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|
2,091 |
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(284) |
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|
6,801 |
|
|
(598) |
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|
$ |
209,028 |
|
|
$ |
(3,501) |
|
|
$ |
79,003 |
|
|
$ |
(2,007) |
|
|
$ |
288,031 |
|
|
$ |
(5,508) |
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| (1) |
The fair value excludes accrued interest receivable. |
Gross realized gains and losses from the sales of the Company’s marketable debt securities, available-for-sale, consisted of the following (in thousands):
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Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Gross realized gains (1)
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
114 |
|
Gross realized losses (1)
|
$ |
— |
|
|
$ |
(10) |
|
|
$ |
(23) |
|
|
$ |
(27) |
|
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| (1) |
Recorded in other income, net in the condensed consolidated statements of operations. The cost basis of securities sold were determined based on the specific identification method. |
The Company invests its excess cash in a diversified portfolio of fixed and variable rate debt securities to meet current and future cash flow needs. All investments are made in accordance with the Company’s approved investment policy. As of September 30, 2023, the portfolio had a weighted average credit rating of AA- and a weighted term to contractual maturity of 1.9 years, with 220 securities in the portfolio representing an unrealized aggregate loss of $4.5 million, or 2% of amortized cost, and a weighted average credit rating of AA-.
As of September 30, 2023, the Company performed an impairment analysis and determined an allowance for credit losses was not required. The Company determined that it did not have an intent to sell and it was not more likely than not that the Company would be required to sell any security based on its current liquidity position, or to maintain compliance with its investment policy, specifically as it relates to minimum credit ratings. The Company evaluated the securities with an unrealized loss considering severity of loss, credit ratings, specific credit events during the period since acquisition, overall likelihood of default, market sector, potential impact from the current economic environment, including interest
rates, geopolitical unrest and a review of an issuer’s and securities’ liquidity and financial strength, as needed. The Company concluded that it would receive all scheduled interest and principal payments. The Company, therefore, determined qualitatively that the unrealized loss was related to changes in interest rates and other market factors and therefore no allowance for credit losses was required.
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):
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September 30, 2023 |
|
December 31, 2022 |
|
Amortized
Cost |
|
Fair Value |
|
Amortized
Cost |
|
Fair Value |
| Due in one year or less |
$ |
116,989 |
|
|
$ |
116,713 |
|
|
$ |
254,683 |
|
|
$ |
253,434 |
|
| Due after one year through five years |
55,024 |
|
|
52,633 |
|
|
56,507 |
|
|
54,169 |
|
| Due after five years through ten years |
12,293 |
|
|
10,987 |
|
|
13,435 |
|
|
11,850 |
|
| Due after ten years |
7,459 |
|
|
6,890 |
|
|
2,876 |
|
|
2,576 |
|
|
$ |
191,765 |
|
|
$ |
187,223 |
|
|
$ |
327,501 |
|
|
$ |
322,029 |
|
| Weighted average contractual maturity |
|
|
1.9 years |
|
|
|
1.1 years |
|