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Investment Securities At Fair Value
 9 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Investment Securities At Fair Value
INVESTMENT SECURITIES AT FAIR VALUE

Investment securities at fair value consisted of the following:
 
September 30, 2018
 
December 31, 2017
Debt securities available for sale
$
84,252

 
$
84,814

Equity securities available for sale
—

 
65,675

Equity securities at fair value
50,994

 
—

Total investment securities at fair value
$
135,246

 
$
150,489


On January 1, 2018, the Company adopted the amendments in ASU 2016-01 which required all equity securities to be measured at fair value with changes in fair value recognized in net income. Therefore, all of the Company’s equity investments that were classified as equity securities available for sale at December 31, 2017 are now classified as equity securities at fair value. These equity securities include marketable equity securities and mutual funds invested in fixed-income securities that had fair values of $44,634 and $21,041 at December 31, 2017, respectively, as shown below.
Prior to the adoption of ASU 2016-01, equity securities were measured at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. At December 31, 2017, $9,681 of net unrealized gains related to equity securities had been recognized in AOCI. After the adoption of ASU 2016-01, these unrealized gains and losses were reclassified out of AOCI and into opening stockholders’ deficiency with subsequent changes in fair value being recognized in net income.
Sales of investment securities totaled $14,895 and $23,066 and proceeds from early redemptions by issuers totaled $18,192 and $97,011 in the nine months ended September 30, 2018 and 2017, respectively, mainly from the sales and redemptions of Corporate securities and U.S. Government securities.

(a) Debt and Equity Securities Available for Sale
The components of debt securities available for sale at September 30, 2018 were as follows:

 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Marketable debt securities
$
84,250

 
$
2

 
$
—

 
$
84,252

Total debt securities available for sale
$
84,250

 
$
2

 
$
—

 
$
84,252




The table below summarizes the maturity dates of debt securities available for sale at September 30, 2018.

Investment Type:
Fair Value
 
Under 1 Year
 
1 Year up to 5 Years
 
More than 5 Years
U.S. Government securities
$
28,311

 
$
11,215

 
$
17,096

 
$
—

Corporate securities
42,858

 
9,124

 
33,734

 
—

U.S. mortgage-backed securities
3,194

 
771

 
2,423

 
—

Commercial mortgage-backed securities
407

 
—

 
407

 
—

Commercial paper
5,992

 
5,992

 
—

 
—

Index-linked U.S. bonds
2,345

 
1,576

 
769

 
—

Foreign fixed-income securities
1,145

 
153

 
992

 
—

Total debt securities available for sale by maturity dates
$
84,252

 
$
28,831

 
$
55,421

 
$
—



The components of debt and equity securities available for sale at December 31, 2017 were as follows:

 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Marketable equity securities
$
35,020

 
$
10,994

 
$
(1,380
)
 
$
44,634

Mutual funds invested in fixed income securities
20,977

 
93

 
(29
)
 
21,041

Marketable debt securities
84,708

 
106

 
—

 
84,814

Total debt and equity securities available for sale
$
140,705

 
$
11,193

 
$
(1,409
)
 
$
150,489




The available-for-sale investment securities with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:

 
In loss position for
 
 
 
 
 
Less than 12 months
 
12 months or more
 
 
 
 
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Total Fair Value
 
Total Unrealized Losses
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Marketable equity securities
$
9,523

 
$
(1,380
)
 
$
—

 
$
—

 
$
9,523

 
$
(1,380
)
Mutual funds invested in fixed-income securities
10,483

 
(29
)
 
—

 
—

 
10,483

 
(29
)
 
$
20,006

 
$
(1,409
)
 
$
—

 
$
—

 
$
20,006

 
$
(1,409
)


Unrealized losses from marketable equity securities were due to market price movements. Unrealized losses from mutual funds invested in fixed-income securities were primarily attributable to changes in interest rates.

Gross realized gains and losses on debt and equity securities available for sale were as follows:

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2018
 
2017
 
2018
 
2017
Gross realized gains on sales
$
1

 
$
141

 
$
3

 
$
419

Gross realized losses on sales
(5
)
 
(45
)
 
(20
)
 
(136
)
Net (losses) gains on sale of debt and equity securities available for sale
$
(4
)
 
$
96

 
$
(17
)
 
$
283

 
 
 
 
 
 
 
 
Gross realized losses on other-than-temporary impairments
$
(161
)
 
$
(53
)
 
$
(972
)
 
$
(179
)
 

 

 

 



Although management generally does not have the intent to sell any specific securities at the end of the period, in the ordinary course of managing the Company’s investment securities portfolio, management may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements.



(b) Equity Securities at Fair Value
Equity securities at fair value consisted of the following:
 
September 30, 2018
Marketable equity securities
$
29,807

Mutual funds invested in fixed income securities
21,187

Total equity securities at fair value
$
50,994


The following is a summary of unrealized and realized net losses and gains recognized in net income on equity securities at fair value after the adoption of ASU 2016-01 during the three and nine months ended September 30, 2018:

 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2018
 
2018
Net losses recognized on equity securities (1)
$
(797
)
 
$
(306
)
Less: Net losses recognized on equity securities sold
(717
)
 
(534
)
Net unrealized (losses) gains recognized on equity securities still held at the reporting date
$
(80
)
 
$
228

 
 
 
 
(1) 
Includes $405 and $3,641 of net gains recognized on equity securities at fair value that qualify for the net asset value (“NAV”) practical expedient during the three and nine months ended September 30, 2018, respectively. These equity securities are included in the “Long-term investments” line item on the condensed consolidated balance sheet and are further discussed in Note 5.

The Company’s marketable equity securities and mutual funds invested in fixed-income securities are classified as Level 1 under the fair value hierarchy disclosed in Note 11. Their fair values are based on quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets.
    
(c) Equity Securities Without Readily Determinable Fair Values That Do Not Qualify for the NAV Practical Expedient

Equity securities without readily determinable fair values that do not qualify for the NAV practical expedient consisted of investments in the common stock of a reinsurance company and a residential real estate company. At December 31, 2017, prior to the adoption of ASU 2016-01 and ASU 2018-03, these investments were classified as cost-method long-term investments and had a total carrying value of $5,428. On January 1, 2018, upon the adoption of the new guidance, the Company classified these investments as equity securities without readily determinable fair values that do not qualify for the NAV practical expedient and valued them at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. At September 30, 2018, the total carrying value of these investments were $5,428, of which $428 was included in “Other current assets” and $5,000 was included in “Other assets” on the condensed consolidated balance sheet. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified for the nine months ended September 30, 2018.