Investment Securities

9 Months Ended

Sep. 30, 2016

Investments Debt And Equity Securities [Abstract]

Investment Securities

4. Investment Securities

Investment securities are marketable equity or debt securities. All of our investment securities are “available-for-sale” securities and carried at fair value. Fair value for securities with short maturities and infrequent secondary market trades typically is determined by using a curve-based evaluation model that utilizes quoted prices for similar securities. The evaluation model takes into consideration the days to maturity, coupon rate and settlement date convention. Net unrealized gains or losses on these securities are included in accumulated other comprehensive loss, which is a separate component of stockholders’ equity. Realized gains and realized losses are included in other income, net while amortization of premiums and accretion of discounts are included in interest income. Interest and dividends on available-for-sale securities are included in interest income. We periodically evaluate our investment securities for impairment. If we determine that a decline in fair value of any investment security is other than temporary, then the cost basis would be written down to fair value and the decline in value would be charged to earnings.

Our investment securities are under the custodianship of a major financial institution and consist of FDIC-insured certificates of deposit. We have classified all of our available-for-sale investment securities, as current assets on our consolidated balance sheets because we consider them to be highly liquid and available for use, if needed, in current operations. As of September 30, 2016, none of our investment securities had contractual maturity dates of more than one year.  

At September 30, 2016 and December 31, 2015, our investment securities were as follows (in thousands):

	September 30,			December 31,
	2016			2015
Fair value of investment securities	$	6,429		$	17,929
Cost basis of investment securities		6,425			17,946
	September 30,			December 31,
	2016			2015
Net unrealized (gains)/losses on investment securities	$	(4	)	$	17