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Investments | 3 Months Ended
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Mar. 31, 2020
Investments Debt And Equity Securities [Abstract] |
Investments | 6. INVESTMENTS Debt Securities and Other Investments As of March 31, 2020, the following debt securities and other investments were included on the Condensed Consolidated Balance Sheet and recorded at fair value:
|  | Amortized |  |  | Gross Unrealized |  |  | Fair |
(In thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Corporate bonds |  | $ | 8,967 |  |  | $ | 43 |  |  | $ | (87 | ) |  | $ | 8,923 |
Municipal fixed-rate bonds |  |  | 931 |  |  |  | 3 |  |  |  | — |  |  |  | 934 |
Asset-backed bonds |  |  | 6,052 |  |  |  | 17 |  |  |  | (76 | ) |  |  | 5,993 |
Mortgage/Agency-backed bonds |  |  | 8,389 |  |  |  | 140 |  |  |  | (62 | ) |  |  | 8,467 |
U.S. government bonds |  |  | 12,788 |  |  |  | 319 |  |  |  | (6 | ) |  |  | 13,101 |
Other |  |  | 442 |  |  |  | — |  |  |  | — |  |  |  | 442 |
Available-for-sale debt securities held at fair value |  | $ | 37,569 |  |  | $ | 522 |  |  | $ | (231 | ) |  | $ | 37,860 |
As of December 31, 2019, the following debt securities and other investments were included on the Condensed Consolidated Balance sheet and recorded at fair value:
|  | Amortized |  |  | Gross Unrealized |  |  | Fair |
(In thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Corporate bonds |  | $ | 9,304 |  |  | $ | 80 |  |  | $ | — |  |  | $ | 9,384 |
Municipal fixed-rate bonds |  |  | 930 |  |  |  | — |  |  |  | — |  |  |  | 930 |
Asset-backed bonds |  |  | 6,867 |  |  |  | 26 |  |  |  | (3 | ) |  |  | 6,890 |
Mortgage/Agency-backed bonds |  |  | 6,944 |  |  |  | 26 |  |  |  | (8 | ) |  |  | 6,962 |
U.S. government bonds |  |  | 12,311 |  |  |  | 21 |  |  |  | (9 | ) |  |  | 12,323 |
Foreign government bonds |  |  | 372 |  |  |  | — |  |  |  | (1 | ) |  |  | 371 |
Variable rate demand notes |  |  | 800 |  |  |  | — |  |  |  | — |  |  |  | 800 |
Available-for-sale debt securities held at fair value |  | $ | 37,528 |  |  | $ | 153 |  |  | $ | (21 | ) |  | $ | 37,660 |
As of March 31, 2020, contractual maturities related to debt securities and other investments were as follows:
(In thousands) |  | Corporate bonds |  |  | Municipal fixed-rate bonds |  |  | Asset- backed bonds |  |  | Mortgage / Agency- backed bonds |  |  | U.S. government bonds |  |  | Other |
Less than one year |  | $ | 3,274 |  |  | $ | — |  |  | $ | 101 |  |  | $ | — |  |  | $ | 61 |  |  | $ | 442 |
One to two years |  |  | 3,702 |  |  |  | 934 |  |  |  | 389 |  |  |  | 584 |  |  |  | 5,376 |  |  |  | — |
Two to three years |  |  | 1,947 |  |  |  | — |  |  |  | 1,559 |  |  |  | 1,769 |  |  |  | 7,285 |  |  |  | — |
Three to five years |  |  | — |  |  |  | — |  |  |  | 2,174 |  |  |  | 107 |  |  |  | 379 |  |  |  | — |
Five to ten years |  |  | — |  |  |  | — |  |  |  | 1,505 |  |  |  | 1,655 |  |  |  | — |  |  |  | — |
More than ten years |  |  | — |  |  |  | — |  |  |  | 265 |  |  |  | 4,352 |  |  |  | — |  |  |  | — |
Total |  | $ | 8,923 |  |  | $ | 934 |  |  | $ | 5,993 |  |  | $ | 8,467 |  |  | $ | 13,101 |  |  | $ | 442 |
Actual maturities may differ from contractual maturities as some borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Realized gains and losses on sales of debt securities are computed under the specific identification method. The following table presents gross realized gains and losses related to our debt securities:
|  | Three Months Ended |
|  | March 31, |
(In thousands) |  | 2020 |  |  | 2019 |
Gross realized gains on debt securities |  | $ | 43 |  |  | $ | 41 |
Gross realized losses on debt securities |  |  | (20 | ) |  |  | (19 | )
Total gain recognized, net |  | $ | 23 |  |  | $ | 22 |
The Company’s investment policy provides limitations for issuer concentration, which limits, at the time of purchase, the concentration in any one issuer to 5% of the market value of our total investment portfolio. The Company did not purchase any available-for-sale debt security with credit deterioration during the three months ended March 31, 2020. Marketable Equity Securities Our marketable equity securities consist of publicly traded stock, funds and certain other investments measured at fair value or cost (where appropriate). During the three months ended March 31, 2019, an outstanding note receivable of $4.3 million was repaid and reissued in the form of debt and equity. Of the outstanding $4.3 million, $3.4 million was issued as an equity investment, which represented a non-cash investing activity. We elected to record this equity investment that does not have a readily determinable fair value using the measurement alternative. Under the measurement alternative, equity investments that do not have a readily determinable fair value can be recorded at cost less impairment, if any, adjusted for observable price changes for an identical or similar investment. The carrying value of this investment under the measurement alternative was $3.4 million as of December 31, 2019. During the three months ended March 31, 2020, an impairment charge of $1.6 million was recorded related to this equity investment, which is included in net investment gain (loss) on the Condensed Consolidated Statement of Income (Loss). As a result, the carrying value of this investment was $1.8 million as of March 31, 2020. The remaining amount, $0.9 million of the original $4.3 million note receivable, was reissued as a new note receivable, which is included in long-term investments on the Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019, and represented a non-cash operating activity during the three months ended March 31, 2019. No impairment charge was recognized related to the note receivable as it is a secured loan. Realized and unrealized gains and losses related to marketable equity securities for the three months ended March 31, 2020 and 2019 were as follows:
|  | Three Months Ended |
|  | March 31, |
(In thousands) |  | 2020 |  |  | 2019 |
Realized losses on equity securities sold |  | $ | (2,436 | ) |  | $ | (14 | )
Unrealized gains (losses) on equity securities held |  |  | (8,464 | ) |  |  | 5,918 |
Total gain (loss) recognized, net |  | $ | (10,900 | ) |  | $ | 5,904 |
U.S. GAAP establishes a three-level valuation hierarchy based upon observable and unobservable inputs for fair value measurement of financial instruments: • Level 1 – Observable outputs; values based on unadjusted quoted prices for identical assets or liabilities in an active market; • Level 2 – Significant inputs that are observable; values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly; • Level 3 – Significant unobservable inputs; values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs could include information supplied by investees. The Company’s cash equivalents and investments held at fair value are categorized into this hierarchy as follows:
|  |  |  |  |  | Fair Value Measurements as of March 31, 2020 Using |
(In thousands) |  | Fair Value |  |  | Quoted Prices in Active Market for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 4,826 |  |  | $ | 4,826 |  |  | $ | — |  |  | $ | — |
Commercial paper |  |  | 500 |  |  |  | — |  |  |  | 500 |  |  |  | — |
Available-for-sale debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  |  | 8,923 |  |  |  | — |  |  |  | 8,923 |  |  |  | — |
Municipal fixed-rate bonds |  |  | 934 |  |  |  | — |  |  |  | 934 |  |  |  | — |
Asset-backed bonds |  |  | 5,993 |  |  |  | — |  |  |  | 5,993 |  |  |  | — |
Mortgage/Agency-backed bonds |  |  | 8,467 |  |  |  | — |  |  |  | 8,467 |  |  |  | — |
U.S. government bonds |  |  | 13,101 |  |  |  | 13,101 |  |  |  | — |  |  |  | — |
Other |  |  | 442 |  |  |  | — |  |  |  | — |  |  |  | 442 |
Marketable equity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marketable equity securities – various industries |  |  | 24,823 |  |  |  | 24,823 |  |  |  | — |  |  |  | — |
Deferred compensation plan assets |  |  | 17,349 |  |  |  | 17,349 |  |  |  | — |  |  |  | — |
Other investments |  |  | 2,106 |  |  |  | 2,106 |  |  |  | — |  |  |  | — |
Total |  | $ | 87,464 |  |  | $ | 62,205 |  |  | $ | 24,817 |  |  | $ | 442 |
|  |  |  |  |  | Fair Value Measurements as of December 31, 2019 Using |
(In thousands) |  | Fair Value |  |  | Quoted Prices in Active Market for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 1,309 |  |  | $ | 1,309 |  |  | $ | — |  |  | $ | — |
Available-for-sale debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  |  | 9,384 |  |  |  | — |  |  |  | 9,384 |  |  |  | — |
Municipal fixed-rate bonds |  |  | 930 |  |  |  | — |  |  |  | 930 |  |  |  | — |
Asset-backed bonds |  |  | 6,890 |  |  |  | — |  |  |  | 6,890 |  |  |  | — |
Mortgage/Agency-backed bonds |  |  | 6,962 |  |  |  | — |  |  |  | 6,962 |  |  |  | — |
U.S. government bonds |  |  | 12,323 |  |  |  | 12,323 |  |  |  | — |  |  |  | — |
Foreign government bonds |  |  | 371 |  |  |  | — |  |  |  | 371 |  |  |  | — |
Variable rate demand notes |  |  | 800 |  |  |  | — |  |  |  | 800 |  |  |  | — |
Marketable equity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marketable equity securities – various industries |  |  | 35,501 |  |  |  | 35,501 |  |  |  | — |  |  |  | — |
Equity in escrow |  |  | 298 |  |  |  | 298 |  |  |  | — |  |  |  | — |
Deferred compensation plan assets |  |  | 21,698 |  |  |  | 21,698 |  |  |  | — |  |  |  | — |
Other investments |  |  | 2,442 |  |  |  | 2,442 |  |  |  | — |  |  |  | — |
Total |  | $ | 98,908 |  |  | $ | 73,571 |  |  | $ | 25,337 |  |  | $ | — |
The fair value of our Level 2 securities is calculated using a weighted average market price for each security. Market prices are obtained from a variety of industry standard data providers, large financial institutions and other third-party sources. These multiple market prices are used as inputs into a distribution-curve-based algorithm to determine the daily market value of each security. The fair value of Level 3 securities is calculated based on unobservable inputs. Quantitative information with respect to unobservable inputs consists of third-party valuations performed in accordance with ASC 820 – Fair Value Measurement. Inputs used in preparing the third-party valuation included the following assumptions, among others: estimated discount rates and fair market yields.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
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