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Investments | 9 Months Ended
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Sep. 30, 2021
Investments Debt And Equity Securities [Abstract] |
Investments | 6. INVESTMENTS Debt Securities and Other Investments The following debt securities and other investments were included on the Condensed Consolidated Balance Sheet and recorded at fair value:
|  | As of September 30, 2021 |
|  | Amortized |  |  | Gross Unrealized |  |  | Fair |
(In thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Corporate bonds |  | $ | 13,381 |  |  | $ | 39 |  |  | $ | (6 | ) |  | $ | 13,414 |
Municipal fixed-rate bonds |  |  | 2,236 |  |  |  | 13 |  |  |  | (1 | ) |  |  | 2,248 |
Asset-backed bonds |  |  | 3,497 |  |  |  | 17 |  |  |  | (1 | ) |  |  | 3,513 |
Mortgage/Agency-backed bonds |  |  | 9,194 |  |  |  | 35 |  |  |  | (17 | ) |  |  | 9,212 |
U.S. government bonds |  |  | 16,031 |  |  |  | 34 |  |  |  | (13 | ) |  |  | 16,052 |
Foreign government bonds |  |  | 544 |  |  |  | 1 |  |  |  | (2 | ) |  |  | 543 |
Other |  |  | 533 |  |  |  | — |  |  |  | — |  |  |  | 533 |
Available-for-sale debt securities held at fair value |  | $ | 45,416 |  |  | $ | 139 |  |  | $ | (40 | ) |  | $ | 45,515 |
|  | As of December 31, 2020 |
|  | Amortized |  |  | Gross Unrealized |  |  | Fair |
(In thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Corporate bonds |  | $ | 11,762 |  |  | $ | 123 |  |  | $ | — |  |  | $ | 11,885 |
Municipal fixed-rate bonds |  |  | 2,854 |  |  |  | 30 |  |  |  | — |  |  |  | 2,884 |
Asset-backed bonds |  |  | 6,634 |  |  |  | 74 |  |  |  | — |  |  |  | 6,708 |
Mortgage/Agency-backed bonds |  |  | 11,536 |  |  |  | 114 |  |  |  | (6 | ) |  |  | 11,644 |
U.S. government bonds |  |  | 9,763 |  |  |  | 112 |  |  |  | — |  |  |  | 9,875 |
Foreign government bonds |  |  | 1,334 |  |  |  | 4 |  |  |  | (1 | ) |  |  | 1,337 |
Commercial Paper |  |  | 250 |  |  |  | — |  |  |  | — |  |  |  | 250 |
Other |  |  | 533 |  |  |  | — |  |  |  | — |  |  |  | 533 |
Available-for-sale debt securities held at fair value |  | $ | 44,666 |  |  | $ | 457 |  |  | $ | (7 | ) |  | $ | 45,116 |
The contractual maturities related to debt securities and other investments were as follows:
|  | As of September 30, 2021 |
(In thousands) |  | Corporate bonds |  |  | Municipal fixed-rate bonds |  |  | Asset- backed bonds |  |  | Mortgage/ Agency- backed bonds |  |  | U.S. government bonds |  |  | Foreign government bonds |  |  | Other |
Less than one year |  | $ | 275 |  |  | $ | 652 |  |  | $ | — |  |  | $ | 638 |  |  | $ | 2,593 |  |  | $ | — |  |  | $ | 533 |
One to two years |  |  | 4,494 |  |  |  | 534 |  |  |  | — |  |  |  | 1,005 |  |  |  | 4,021 |  |  |  | 246 |  |  |  | — |
Two to three years |  |  | 6,616 |  |  |  | 761 |  |  |  | 93 |  |  |  | 1,102 |  |  |  | 5,810 |  |  |  | 297 |  |  |  | — |
Three to five years |  |  | 2,029 |  |  |  | 301 |  |  |  | 1,573 |  |  |  | 235 |  |  |  | 3,628 |  |  |  | — |  |  |  | — |
Five to ten years |  |  | — |  |  |  | — |  |  |  | 785 |  |  |  | 1,322 |  |  |  | — |  |  |  | — |  |  |  | — |
More than ten years |  |  | — |  |  |  | — |  |  |  | 1,062 |  |  |  | 4,910 |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 13,414 |  |  | $ | 2,248 |  |  | $ | 3,513 |  |  | $ | 9,212 |  |  | $ | 16,052 |  |  | $ | 543 |  |  | $ | 533 |
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 the gross realized gains and losses related to our debt securities:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
(In thousands) |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Gross realized gain on debt securities |  | $ | 22 |  |  | $ | 70 |  |  | $ | 206 |  |  | $ | 303 |
Gross realized loss on debt securities |  |  | (17 | ) |  |  | (6 | ) |  |  | (53 | ) |  |  | (45 | )
Total gain recognized, net |  | $ | 5 |  |  | $ | 64 |  |  | $ | 153 |  |  | $ | 258 |
Income generated from available-for-sale debt securities was recorded as interest and dividend income in the Condensed Consolidated Statements of Income (Loss). No allowance for credit loss was recorded for the nine months ended September 30, 2021 and 2020 related to available-for-sale debt securities. 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 no t purchase any available-for-sale debt security with credit deterioration during the nine months ended September 30, 2021. Marketable Equity Securities Our marketable equity securities consist of publicly traded stock, interests in funds and certain other investments measured at fair value or cost (where appropriate). In March 2019, an outstanding note receivable of $4.3 million owed to the Company 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. The Company 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. During the year ended December 31, 2020, impairment charges totaling $2.6 million were recorded related to this equity investment, which was included in net investment gain (loss) on the Condensed Consolidated Statement of Income (Loss). As a result, the carrying value of this investment was $0.8 million as of September 30, 2021 and December 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 September 30, 2021 and December 31, 2020. 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 were as follows:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
(In thousands) |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Realized gain (loss) on equity securities sold |  | $ | — |  |  | $ | 623 |  |  | $ | (55 | ) |  | $ | (1,485 | )
Unrealized (loss) gain on equity securities held |  |  | (68 | ) |  |  | 2,157 |  |  |  | 2,844 |  |  |  | 3,046 |
Total gain (loss) recognized, net |  | $ | (68 | ) |  | $ | 2,780 |  |  | $ | 2,789 |  |  | $ | 1,561 |
Income generated from marketable equity securities was recorded as interest and dividend income in the Condensed Consolidated Statements of Income (Loss). 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 September 30, 2021 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 |  | $ | 532 |  |  | $ | 532 |  |  | $ | — |  |  | $ | — |
Commercial paper |  |  | 400 |  |  |  | — |  |  |  | 400 |  |  |  | — |
Available-for-sale debt securities |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  |  | 13,414 |  |  |  | — |  |  |  | 13,414 |  |  |  | — |
Municipal fixed-rate bonds |  |  | 2,248 |  |  |  | — |  |  |  | 2,248 |  |  |  | — |
Asset-backed bonds |  |  | 3,513 |  |  |  | — |  |  |  | 3,513 |  |  |  | — |
Mortgage/Agency-backed bonds |  |  | 9,212 |  |  |  | — |  |  |  | 9,212 |  |  |  | — |
U.S. government bonds |  |  | 16,052 |  |  |  | 16,052 |  |  |  | — |  |  |  | — |
Foreign government securities |  |  | 543 |  |  |  | — |  |  |  | 543 |  |  |  | — |
Other |  |  | 533 |  |  |  | — |  |  |  | — |  |  |  | 533 |
Marketable equity securities |  |  |  |  |  |  |  |  |  |  |  |
Marketable equity securities – various industries |  |  | 12,144 |  |  |  | 12,144 |  |  |  | — |  |  |  | — |
Deferred compensation plan assets |  |  | 25,733 |  |  |  | 25,733 |  |  |  | — |  |  |  | — |
Other investments |  |  | 1,400 |  |  |  | 1,400 |  |  |  | — |  |  |  | — |
Total |  | $ | 85,724 |  |  | $ | 55,861 |  |  | $ | 29,330 |  |  | $ | 533 |
|  |  |  |  | Fair Value Measurements as of December 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 |  | $ | 497 |  |  | $ | 497 |  |  | $ | — |  |  | $ | — |
U.S. government bonds |  |  | 350 |  |  |  | 350 |  |  |  | — |  |  |  | — |
Available-for-sale debt securities |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  |  | 11,885 |  |  |  | — |  |  |  | 11,885 |  |  |  | — |
Municipal fixed-rate bonds |  |  | 2,884 |  |  |  | — |  |  |  | 2,884 |  |  |  | — |
Asset-backed bonds |  |  | 6,708 |  |  |  | — |  |  |  | 6,708 |  |  |  | — |
Mortgage/Agency-backed bonds |  |  | 11,644 |  |  |  | — |  |  |  | 11,644 |  |  |  | — |
U.S. government bonds |  |  | 9,875 |  |  |  | 9,875 |  |  |  | — |  |  |  | — |
Foreign government bonds |  |  | 1,337 |  |  |  | — |  |  |  | 1,337 |  |  |  | — |
Commercial paper |  |  | 250 |  |  |  | — |  |  |  | 250 |  |  |  | — |
Other |  |  | 533 |  |  |  | — |  |  |  | — |  |  |  | 533 |
Marketable equity securities |  |  |  |  |  |  |  |  |  |  |  |
Marketable equity securities – various industries |  |  | 10,963 |  |  |  | 10,963 |  |  |  | — |  |  |  | — |
Deferred compensation plan assets |  |  | 23,891 |  |  |  | 23,891 |  |  |  | — |  |  |  | — |
Other investments |  |  | 1,400 |  |  |  | 1,400 |  |  |  | — |  |  |  | — |
Total |  | $ | 82,217 |  |  | $ | 46,976 |  |  | $ | 34,708 |  |  | $ | 533 |
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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