XML 24 R13.htm IDEA: XBRL DOCUMENT

Marketable Securities

9 Months Ended

Sep. 30, 2022

Note 6: Marketable Securities

The Company classifies and accounts for its marketable debt securities as available-for-sale and the securities are stated at fair value.

The investments in marketable securities had an adjusted cost basis of $97.5 million and a market value of $89.9 million as of September 30, 2022. The balances consisted of the following securities (in thousands):


	Adjusted Cost		Unrealized Gain/(Loss)			Fair Value
Corporate Bonds	$	44,822	$	(2,968	)	$	41,854
U.S. Treasury		20,922		(1,437	)		19,485
Mortgage-Backed		6,285		(760	)		5,525
U.S. agency and government sponsored securities		13,116		(1,495	)		11,621
U.S. states and municipalities		11,818		(988	)		10,830
Asset-Backed		567		(9	)		558
Total	$	97,530	$	(7,657	)	$	89,873

The investments in marketable securities had an adjusted cost basis of $113.8 million and a market value of $112.5 million as of December 31, 2021. The balances consisted of the following securities (in thousands):


	Adjusted Cost		Unrealized Gain/(Loss)			Fair Value
Corporate Bonds	$	47,864	$	(529	)	$	47,335
U.S. Treasury		24,410		(257	)		24,153
Mortgage-Backed		7,504		(143	)		7,361
U.S. agency and government sponsored securities		14,675		(87	)		14,588
U.S. states and municipalities		11,871		(189	)		11,682
Asset-Backed		6,456		(50	)		6,406
Commercial paper		998		–			998
Total	$	113,778	$	(1,255	)	$	112,523

The Company reported the net unrealized losses in accumulated other comprehensive (loss) income, a component of stockholders' equity. The decline in fair value is largely due to changes in interest rates and other market conditions and is expected to recover as the securities approach maturity. The Company has evaluated these securities and determined that no allowance is necessary based on the credit quality and the low risk of loss due to the security type. The Company holds sixty-two available-for-sale securities, all of which are in an unrealized loss position as of September 30, 2022. The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period greater than 12 months as of September 30, 2022 are as follows (in thousands):


	Gross Unrealized Loss			Fair Value
Corporate Bonds	$	(2,375	)	$	34,365
U.S. Treasury		(1,456	)		19,489
Mortgage-Backed		(829	)		5,528
U.S. agency and government sponsored securities		(1,493	)		11,625
U.S. states and municipalities		(781	)		8,020
Asset-Backed		(10	)		558
Total	$	(6,944	)	$	79,585

As of December 31, 2021, the Company had not yet held marketable securities in an unrealized loss position for greater than twelve months. A net realized loss of $36,332 and $159,624 related to the prepayment of principals for certain mortgage-backed securities was recorded in earnings during the three and nine months ended September 30, 2022, respectively.

The contractual maturities of the Company’s marketable investments as of September 30, 2022 were as follows (in thousands):

Summary of contractual maturity
	Fair Value
Due within 1 year	$	8,889
Due after 1 year through 5 years		70,060
Due after 5 years through 10 years		3,752
Due after 10 years		7,172
Total	$	89,873

The Company may sell certain of its marketable debt securities prior to their stated maturities for reasons including, but not limited to, managing liquidity, credit risk, duration and asset allocation.

The Company did not sell any securities during the three or nine months ended September 30, 2022 that resulted in material gains or losses.