Investments

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Note 6 – Investments

Debt Securities and Other Investments

As of December 31, 2022, the following debt securities and other investments were included in short-term investments and long-term investments on the Consolidated Balance Sheet and recorded at fair value:


	Amortized		Gross Unrealized					Fair
(In thousands)	Cost		Gains		Losses			Value
Corporate bonds	$	2,538	$	5	$	(81	)	$	2,462
Municipal fixed-rate bonds		185				(5	)		180
Asset-backed bonds		818		1		(24	)		795
Mortgage/Agency-backed bonds		1,853				(105	)		1,748
U.S. government bonds		3,870		3		(188	)		3,685
Foreign government bonds		407				(24	)		383
Available-for-sale debt securities held at fair value	$	9,671	$	9	$	(427	)	$	9,253

As of December 31, 2021, the following debt securities and other investments were included in short-term investments and long-term investments on the Consolidated Balance Sheet and recorded at fair value:


	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

As of December 31, 2022, our debt securities had the following contractual maturities:


(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	$	—	$	180	$	—	$	—	$	160	$	—
One to two years		1,450		—		96		162		2,787		276
Two to three years		1,012		—		186		598		617		107
Three to five years		—		—		335		253		121		—
Five to ten years		—		—		—		317		—		—
More than ten years		—		—		178		418		—		—
Total	$	2,462	$	180	$	795	$	1,748	$	3,685	$	383

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 securities are computed under the specific identification method. The following table presents gross realized gains and losses related to our debt securities for the years ended December 31, 2022, 2021 and 2020:


	For the year ended December 31,
(In thousands)	2022			2021			2020
Gross realized gains on debt securities	$	17		$	241		$	459
Gross realized losses on debt securities		(1,211	)		(159	)		(58	)
Total (loss) gain recognized, net	$	(1,194	)	$	82		$	401

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 the total investment portfolio. The Company did not purchase any available-for-sale debt with credit deterioration during the years ended December 31, 2022, 2021 and 2020.

The following table presents the breakdown of debt securities and other investments with unrealized losses as of December 31, 2022:


	Continuous Unrealized Loss Position for Less than 12 Months					Continuous Unrealized Loss Position for 12 Months or Greater					Total
(In thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Corporate bonds	$	1,367	$	(39	)	$	583	$	(42	)	$	1,950	$	(81	)
Municipal fixed-rate bonds		—		—			178		(5	)		180		(5	)
Asset-backed bonds		524		(14	)		117		(10	)		641		(24	)
Mortgage/Agency-backed bonds		825		(23	)		844		(82	)		1,668		(105	)
U.S. government bonds		2,215		(106	)		1,063		(82	)		3,278		(188	)
Foreign government bonds		—		—			383		(24	)		383		(24	)
Total	$	4,931	$	(182	)	$	3,168	$	(245	)	$	8,100	$	(427	)

The following table presents the breakdown of debt securities and other investments with unrealized losses as of December 31, 2021:


	Continuous Unrealized Loss Position for Less than 12 Months					Continuous Unrealized Loss Position for 12 Months or Greater				Total
(In thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate bonds	$	6,795	$	(35	)	$	—	$	—	$	6,795	$	(35	)
Municipal fixed-rate bonds		1,129		(4	)		—		—		1,129		(4	)
Asset-backed bonds		198		(3	)		—		—		198		(3	)
Mortgage/Agency-backed bonds		3,006		(33	)		—		—		3,006		(33	)
U.S. government bonds		10,552		(92	)		—		—		10,552		(92	)
Foreign government bonds		294		(4	)		—		—		294		(4	)
Total	$	21,974	$	(171	)	$	—	$	—	$	21,974	$	(171	)

The increase in unrealized losses during 2022 resulted from changes in market positions associated with our fixed income portfolio.

Marketable Equity Securities

Marketable equity securities consist of publicly traded stock, funds and certain other investments measured at fair value or cost, where appropriate.

Realized and unrealized gains and losses for our marketable equity securities for the year ended December 31, 2022, 2021 and 2020 were as follows:


	For the year ended December 31,
(In thousands)	2022			2021			2019
Realized losses on equity securities sold	$	(1,675	)	$	(992	)	$	(2,382	)
Unrealized (losses) gains on equity securities held		(8,470	)		2,671			6,831
Total (loss) gain recognized, net	$	(10,145	)	$	1,679		$	4,449

As of December 31, 2022 and 2021, gross unrealized losses related to individual investments in a continuous loss position for twelve months or longer were not material.

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; 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 December 31, 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	$	228	$	228			$	—
Available-for-sale debt securities
Corporate bonds		2,462				2,462		—
Municipal fixed-rate bonds		180				180		—
Asset-backed bonds		795				795		—
Mortgage/Agency-backed bonds		1,748				1,748		—
U.S. government bonds		3,685		3,685				—
Foreign government bonds		383				383		—
Marketable equity securities
Marketable equity securities - various industries		804		804				—
Deferred compensation plan assets		22,942		22,942				—
Total	$	33,227	$	27,659	$	5,568	$	—


	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 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 consisted 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.

Our variable rate demand notes have a structure that implies a standard expected market price. The frequent interest rate resets make it reasonable to expect the price to stay at par. These securities are priced at the expected market price.