Marketable Securities

The Company has investments in available-for-sale marketable securities which are recorded at fair market value. Prior to January 1, 2018, unrealized gains and losses on all securities are recorded as other comprehensive income (loss) in shareholders’ equity, net of income tax effects.

On January 1, 2018, the Company adopted ASU 2016-01, which requires the change in the fair value of available-for-sale equity investments to be recognized in our condensed consolidated statements of income (loss) rather than as a component of our condensed consolidated statement of comprehensive income (loss). For the three and nine months ended September 30, 2018, the net unrealized gain (loss) on our available-for-sale equity investments, recorded as a component of investment income in the accompanying condensed consolidated statements of income (loss), was immaterial. For comparability purposes, the net unrealized loss on our available-for-sale equity investments was $878 for the three months ended September 30, 2017 and the net unrealized gain was immaterial for the nine months ended September 30, 2017. These amounts were recorded as other comprehensive income in shareholders’ equity, net of income tax effects for the three and nine months ended September 30, 2017.

The following tables show the Company’s available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category as of September 30, 2018 and December 31, 2017, respectively:



	September 30, 2018
Marketable Securities:	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value

Equity securities	$	10,068	$	77	$	(209	)	$	9,936
Money market funds	41,350		200		—			41,550
Corporate bonds	33,266		6		(236		)	33,036
Government securities - U.S.	13,756		—		(200		)	13,556
Other fixed-income securities	9,361		9		(23		)	9,347
Total	$	107,801	$	292	$	(668	)	$	107,425



	December 31, 2017
Marketable Securities:	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value

Equity securities	$	443	$	31	$	(6	)	$	468
Money market funds	44,525		—		(44		)	44,481
Corporate bonds	9,285		1		(24		)	9,262
Government securities - U.S.	19,080		—		(30		)	19,050
Other fixed-income securities	4,259		—		(9		)	4,250
Total	$	77,592	$	32	$	(113	)	$	77,511

We determine realized gains or losses on the sale of marketable securities on a specific identification method. We reflect these gains and losses as a component of investment income in the accompanying condensed consolidated statements of income (loss).

We recognized gross realized gains of $143 and $2,978 for the three months ended September 30, 2018, and 2017, respectively. These realized gains were offset by realized losses of $22 and $2,432 for the three months ended September 30, 2018, and 2017, respectively.

We recognized gross realized gains of $378 and $4,228 for the nine months ended September 30, 2018, and 2017, respectively. These realized gains were offset by realized losses of $350 and $3,755 for the nine months ended September 30, 2018, and 2017, respectively.

The following table summarizes the estimated fair value of our investments in marketable debt securities, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities as of September 30, 2018:



	Maturities
Marketable Debt Securities:	Less than 1 Year		1-5 Years		5-10 Years		Greater than 10 Years		Total

Corporate bonds	$	19,017	$	13,820	$	199	$	—	$	33,036
Government securities - U.S.	831		12,224		—		501		13,556
Other fixed-income securities	51		9,296		—		—		9,347
Total	$	19,899	$	35,340	$	199	$	501	$	55,939

The Company has classified our investment in available-for-sale marketable securities as current assets in the condensed consolidated balance sheets as the securities need to be available for use, if required, to fund current operations. There are no restrictions on the sale of any securities in our investment portfolio.