Quarterly report pursuant to Section 13 or 15(d)

Investments in Marketable Securities

v3.7.0.1
Investments in Marketable Securities
6 Months Ended
Jun. 30, 2017
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, 2017      December 31, 2016  
     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

   $ 59,044      $ —        $ (141   $ 58,903      $ 24,987      $ —        $ (30   $ 24,957  

U.S. government sponsored entities

     7,016        —          (12     7,004        2,497        —          —         2,497  

Corporate debt securities

     6,428        —          (2     6,426        —          —          —         —    
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
   $ 72,488      $ —        $ (155   $ 72,333      $ 27,484      $ —        $ (30   $ 27,454  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Long-term investments:

                     

U.S. treasuries

   $ 16,338      $ 11      $ (114   $ 16,235      $ 40,865      $ —        $ (229   $ 40,636  

U.S. government sponsored entities

     5,454        —          (52     5,402        12,618        —          (58     12,560  

Corporate debt securities

     22,531        291        (48     22,774        17,841        74        (165     17,750  

Asset-backed securities and other

     6,891        36        (13     6,914        6,557        18        (46     6,529  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 
   $ 51,214      $ 338      $ (227   $ 51,325      $ 77,881      $ 92      $ (498   $ 77,475  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

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, 2017      December 31, 2016  
     Unrealized
Losses
     Fair
Value
     Unrealized
Losses
     Fair
Value
 

Less than 12 months

   $ (370    $ 93,711      $ (491    $ 86,105  
  

 

 

    

 

 

    

 

 

    

 

 

 

12 months or longer

   $ (12    $ 697      $ (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):

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2017      2016      2017      2016  

Gross realized gains (1)

   $ 1      $ 20      $ 1      $ 20  
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross realized losses (1)

   $ —        $ —        $ —        $ (155
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(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, anticipated capital requirements, anticipated credit deterioration, duration management or when a security no longer meets the criteria of the Company’s investment policy.

As of June 30, 2017, 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, 2017      December 31, 2016  
     Amortized
Cost
     Fair Value      Amortized
Cost
     Fair Value  

Due in one year or less

   $ 72,488      $ 72,333      $ 27,484      $ 27,454  

Due after one year through five years

     29,593        29,561        57,309        57,144  

Due after five years through ten years

     15,525        15,644        14,992        14,841  

Due after ten years

     6,096        6,120        5,580        5,490  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 123,702      $ 123,658      $ 105,365      $ 104,929  
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average contractual maturity

     2.9 years           3.5 years     

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