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Financial Instruments | 12 Months Ended
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Dec. 31, 2018
Fair Value Disclosures [Abstract] |
Financial Instruments | 4. FINANCIAL INSTRUMENTS Investments consist of the following as of December 31, 2018 and 2017 (dollars in thousands):
|  | December 31, 2018 |
|  |  |  |  |  | Gross Unrealized |  |  |  |  |
|  | Cost |  |  | Gain |  |  | (Loss) |  |  | Fair Value |
Short-term investments (available for sale): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-governmental debt securities |  | $ | 179,393 |  |  | $ | 35 |  |  | $ | (337 | ) |  | $ | 179,091 |
Treasury and federal agencies |  |  | 17,417 |  |  |  | 5 |  |  |  | (85 | ) |  |  | 17,337 |
Total short-term investments (available for sale) |  | $ | 196,810 |  |  | $ | 40 |  |  | $ | (422 | ) |  | $ | 196,428 |
|  | December 31, 2017 |
|  |  |  |  |  | Gross Unrealized |  |  |  |  |
|  | Cost |  |  | Gain |  |  | (Loss) |  |  | Fair Value |
Short-term investments (available for sale): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal bonds |  | $ | 830 |  |  | $ | - |  |  | $ | - |  |  | $ | 830 |
Non-governmental debt securities |  |  | 125,485 |  |  |  | 7 |  |  |  | (222 | ) |  |  | 125,270 |
Treasury and federal agencies |  |  | 30,211 |  |  |  | - |  |  |  | (133 | ) |  |  | 30,078 |
Total short-term investments |  |  | 156,526 |  |  |  | 7 |  |  |  | (355 | ) |  |  | 156,178 |
Restricted short-term investments (available for sale): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-governmental debt securities |  |  | 5,070 |  |  |  | - |  |  |  | - |  |  |  | 5,070 |
Total short-term investments (available for sale) |  | $ | 161,596 |  |  | $ | 7 |  |  | $ | (355 | ) |  | $ | 161,248 |
In the table above, unrealized holding gains (losses) as of December 31, 2018 relate to short-term investments that have been in a continuous unrealized gain (loss) position for less than one year. Our unrestricted non-governmental debt securities primarily consist of commercial paper and certificates of deposit. Our treasury and federal agencies primarily consist of U.S. Treasury bills and federal home loan debt securities. We do not intend to sell our investments in these securities prior to maturity and it is not likely that we will be required to sell these investments before recovery of the amortized cost basis. Our restricted short-term investments were comprised entirely of certificates of deposit, which secured our letters of credit. A schedule of available-for-sale investments segregated by their original stated terms to maturity as of December 31, 2018 and 2017 are as follows (dollars in thousands):
|  | Less than one year |  |  | One to five years |  |  | Six to ten years |  |  | Greater than ten years |  |  | Total |
Original stated term to maturity of available-for-sale- investments as of December 31, 2018 |  | $ | 156,657 |  |  | $ | 38,845 |  |  | $ | - |  |  | $ | 926 |  |  | $ | 196,428 |
Original stated term to maturity of available-for-sale- investments as of December 31, 2017 |  | $ | 113,634 |  |  | $ | 46,586 |  |  | $ | - |  |  | $ | 1,028 |  |  | $ | 161,248 |
Realized gains or losses resulting from sales of investments during the years ended December 31, 2018, 2017 and 2016 were not significant. Fair Value Measurements FASB ASC Topic 820 – Fair Value Measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. As of December 31, 2018, we held investments that are required to be measured at fair value on a recurring basis. These investments (available-for-sale) consist of non-governmental debt securities and treasury and federal agencies securities. Available for sale securities included in Level 1 are valued at quoted prices in active markets for identical assets and liabilities. Available for sale securities included in Level 2 are estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for identical or similar assets or liabilities in inactive markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Investments measured at fair value on a recurring basis subject to the disclosure requirements of FASB ASC Topic 820 – Fair Value Measurements at December 31, 2018 and 2017 were as follows (dollars in thousands):
|  | As of December 31, 2018 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Non-governmental debt securities |  | $ | 20,000 |  |  | $ | 159,091 |  |  | $ | - |  |  | $ | 179,091 |
Treasury and federal agencies |  |  | - |  |  |  | 17,337 |  |  |  | - |  |  |  | 17,337 |
Totals |  | $ | 20,000 |  |  | $ | 176,428 |  |  | $ | - |  |  | $ | 196,428 |
|  | As of December 31, 2017 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Municipal bonds |  | $ | - |  |  | $ | 830 |  |  | $ | - |  |  | $ | 830 |
Non-governmental debt securities |  |  | 31,500 |  |  |  | 98,840 |  |  |  | - |  |  |  | 130,340 |
Treasury and federal agencies |  |  | - |  |  |  | 30,078 |  |  |  | - |  |  |  | 30,078 |
Totals |  | $ | 31,500 |  |  | $ | 129,748 |  |  | $ | - |  |  | $ | 161,248 |
Equity Method Investment Our investment in an equity affiliate, which is recorded within other noncurrent assets on our consolidated balance sheets, represents an international investment in a private company. As of December 31, 2018, our investment in an equity affiliate equated to a 30.7%, or $2.7 million, non-controlling interest in CCKF, a Dublin-based educational technology company providing intelligent systems to power the delivery of individualized and personalized learning. For the years ended December 31, 2018, 2017 and 2016, we recorded approximately $0.4 million, $0.3 million and $0.9 million of loss, respectively, related to our proportionate investment in CCKF within miscellaneous income (expense) on our consolidated statements of income (loss) and comprehensive income (loss). We make periodic operating maintenance payments related to proprietary rights that we use in our intellipath® personalized learning technology. The total fees paid to CCKF for the years ended December 31, 2018, 2017 and 2016 were as follows (dollars in thousands):
|  | Maintenance Fee Payments |
For the year ended December 31, 2018 |  | $ | 1,462 |
For the year ended December 31, 2017 |  | $ | 1,371 |
For the year ended December 31, 2016 |  | $ | 1,375 |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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