Investments

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

7. INVESTMENTS

Debt Securities and Other Investments

The following debt securities and other investments were included on the Condensed Consolidated Balance Sheets and recorded at fair value:


	As of September 30, 2022
	Amortized		Gross Unrealized					Fair
(In thousands)	Cost		Gains		Losses			Value
Corporate bonds	$	9,358	$	—	$	(374	)	$	8,984
Municipal fixed-rate bonds		1,411		—		(54	)		1,357
Asset-backed bonds		2,988		—		(77	)		2,911
Mortgage/Agency-backed bonds		4,720		—		(280	)		4,440
U.S. government bonds		11,231		—		(642	)		10,589
Foreign government bonds		409		—		(27	)		382
Available-for-sale debt securities held at fair value	$	30,117	$	—	$	(1,454	)	$	28,663


	As of December 31, 2021
	Amortized		Gross Unrealized					Fair
(In thousands)	Cost		Gains		Losses			Value
Corporate bonds	$	10,776	$	6	$	(35	)	$	10,747
Municipal fixed-rate bonds		1,553		2		(4	)		1,551
Asset-backed bonds		322		3		(3	)		322
Mortgage/Agency-backed bonds		4,754		15		(33	)		4,736
U.S. government bonds		12,251		12		(92	)		12,171
Foreign government bonds		543		—		(4	)		539
Available-for-sale debt securities held at fair value	$	30,199	$	38	$	(171	)	$	30,066

The contractual maturities related to debt securities and other investments were as follows:


	As of September 30, 2022
(In thousands)	Corporate bonds		Municipal fixed-rate bonds		Asset- backed bonds		Mortgage/ Agency- backed bonds		U.S. government bonds		Foreign government bonds
Less than one year	$	96	$	525	$	—	$	182	$	—	$	—
One to two years		5,371		722		95		464		7,421		275
Two to three years		3,517		110		715		1,321		2,889		107
Three to five years		—		—		1,306		166		279		—
Five to ten years		—		—		382		810		—		—
More than ten years		—		—		413		1,497		—		—
Total	$	8,984	$	1,357	$	2,911	$	4,440	$	10,589	$	382

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 its debt securities:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands)	2022			2021			2022			2021
Gross realized gain on debt securities	$	1		$	22		$	14		$	206
Gross realized loss on debt securities		(116	)		(17	)		(242	)		(53	)
Total (loss) gain recognized, net	$	(115	)	$	5		$	(228	)	$	153

Income generated from available-for-sale debt securities was recorded as interest and dividend income in the Condensed Consolidated Statements of Loss. No allowance for credit losses was recorded for the nine months ended September 30, 2022 and 2021 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 its total investment portfolio. The Company did not purchase any available-for-sale debt security with credit deterioration during the nine months ended September 30, 2022.

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)	2022			2021			2022			2021
Realized (loss) gain on equity securities sold	$	(1,358	)	$	—		$	(1,675	)	$	(55	)
Unrealized (loss) gain on equity securities held		(1,217	)		(68	)		(8,849	)		2,844
Total (loss) gain recognized, net	$	(2,575	)	$	(68	)	$	(10,524	)	$	2,789

Income generated from marketable equity securities was recorded as interest and dividend income in the Condensed Consolidated Statements of 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, 2022 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	$	698	$	698	$	—	$	—
Available-for-sale debt securities
Corporate bonds		8,984		—		8,984		—
Municipal fixed-rate bonds		1,357		—		1,357		—
Asset-backed bonds		2,911		—		2,911		—
Mortgage/Agency-backed bonds		4,440		—		4,440		—
U.S. government bonds		10,589		10,589		—		—
Foreign government securities		382		—		382		—
Marketable equity securities
Marketable equity securities – various industries		760		760		—		—
Deferred compensation plan assets		21,511		21,511		—		—
Total	$	51,632	$	33,558	$	18,074	$	—


			Fair Value Measurements as of December 31, 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	$	652	$	652	$	—	$	—
Available-for-sale debt securities
Corporate bonds		10,747		—		10,747		—
Municipal fixed-rate bonds		1,551		—		1,551		—
Asset-backed bonds		322		—		322		—
Mortgage/Agency-backed bonds		4,736		—		4,736		—
U.S. government bonds		12,171		12,171		—		—
Foreign government bonds		539		—		539		—
Marketable equity securities
Marketable equity securities – various industries		12,606		12,606		—		—
Deferred compensation plan assets		26,935		26,935		—		—
Total	$	70,259	$	52,364	$	17,895	$	—

The fair value of its 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.