Financial Instruments

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

NOTE 5 – FINANCIAL INSTRUMENTS

The Company has investments in debt securities, which include corporate bonds and notes, treasury and agency notes and bills, commercial paper, certificates of deposit, and in equity securities consisting of money market funds. The Company classifies its debt securities as available-for-sale (“AFS”), which are accounted for at fair value with credit related losses recognized as a provision for credit losses in its Consolidated Statements of Income and all non-credit related unrealized gains and losses recognized in accumulated other comprehensive income or loss on the Consolidated Balance Sheets. Under ASU 2016-01 (Topic 321), equity securities are measured at fair value with unrealized gains and losses recognized in other income and expense, net, in the Consolidated Statements of Income.

The following is a summary of marketable securities at June 30, 2024 and December 31, 2023 (in thousands):


	June 30, 2024
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Estimated Fair Values
Marketable securities
Commercial paper	$	11,154	$	—	$	(17	)	$	—	$	11,137
Corporate bonds and notes		16,687		7		(44	)		—		16,650
Treasury and agency notes and bills		3,481		—		(2	)		—		3,479
Total debt securities		31,322		7		(63	)		—		31,266
Money market funds		4,200		—		—			—		4,200
Total equity securities		4,200		—		—			—		4,200
Total marketable securities	$	35,522	$	7	$	(63	)	$	—	$	35,466
Reported in:
Cash and cash equivalents										$	7,469
Marketable securities										$	27,997
Total marketable securities										$	35,466


	December 31, 2023
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Estimated Fair Values
Marketable securities
Commercial paper	$	12,421	$	5	$	(4	)	$	—	$	12,422
Treasury and agency notes and bills		10,746		—		(1	)		—		10,745
Corporate bonds and notes		5,813		34		(2	)		—		5,845
Total debt securities		28,980		39		(7	)		—		29,012
Money market funds		5,778		—		—			—		5,778
Total equity securities		5,778		—		—			—		5,778
Total marketable securities	$	34,758	$	39	$	(7	)	$	—	$	34,790
Reported in:
Cash and cash equivalents										$	5,778
Marketable securities										$	29,012
Total marketable securities										$	34,790

At June 30, 2024 and December 31, 2023, the Company had $94.5 million and $83.6 million, respectively, in cash and cash equivalents and short-term investments. A portion of these amounts was held in marketable securities, as shown above. The remaining balances of $59.0 million and $48.8 million at June 30, 2024 and December 31, 2023, respectively, consisted of cash held in operating accounts not included in the tables above.

Debt Securities

The gross realized gains and losses on sales of marketable debt securities were immaterial during the three months and six months ended June 30, 2024 and 2023. Unrealized losses on AFS debt securities were immaterial as of June 30, 2024 and December 31, 2023. The Company evaluated whether the decline in fair value has resulted from credit losses or other factors and concluded these amounts were related to temporary fluctuations in value of AFS securities and were due primarily to changes in interest rates and market conditions of the underlying securities. The Company did not recognize a provision for credit losses related to its AFS debt securities during the three months and six months ended June 30, 2024 and 2023, respectively.

The estimated fair value of AFS debt securities by contractual maturity at June 30, 2024 is shown below (in thousands). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.


	Amortized Cost		Estimated Fair Value
Due in one year or less	$	17,597	$	17,571
Due in one to two years		8,202		8,182
Due in two to three years		5,523		5,513
Total	$	31,322	$	31,266