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Investment Securities At Fair Value

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES AT FAIR VALUE

Investment securities at fair value consisted of the following:



	June 30, 2019		December 31, 2018
Debt securities available for sale	$	88,831	$	84,367
Equity securities at fair value	46,269		47,202
Total investment securities at fair value	$	135,100	$	131,569

Net gains (losses) recognized on investment securities were as follows:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Net gains recognized on equity securities	$	2,311		$	3,236		$	7,051		$	491
Net gains (losses) recognized on debt securities available for sale	6			(5		)	42			(13		)
Gross realized losses on other-than-temporary impairments	(2		)	(225		)	(5		)	(811		)
Net gains (losses) recognized on investment securities	$	2,315		$	3,006		$	7,088		$	(333	)

Sales of investment securities totaled $12,942 and $2,647 and proceeds from early redemptions by issuers totaled $29,155 and $11,526 for the six months ended June 30, 2019 and 2018, respectively, mainly from the sales and redemptions of Corporate securities and U.S. Government securities.

(a) Debt Securities Available for Sale

The components of debt securities available for sale at June 30, 2019 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable debt securities	$	87,977	$	854	$	—	$	88,831
Total debt securities available for sale	$	87,977	$	854	$	—	$	88,831

The table below summarizes the maturity dates of debt securities available for sale at June 30, 2019.



Investment Type:	Fair Value		Under 1 Year		1 Year up to 5 Years		More than 5 Years
U.S. Government securities	$	19,535	$	7,797	$	11,738	$	—
Corporate securities	47,427		13,341		34,086		—
U.S. mortgage-backed securities	8,623		4,026		4,597		—
Commercial mortgage-backed securities	394		29		365		—
Commercial paper	9,026		9,026		—		—
Index-linked U.S. bonds	2,664		2,664		—		—
Foreign fixed-income securities	1,162		654		508		—
Total debt securities available for sale by maturity dates	$	88,831	$	37,537	$	51,294	$	—

The components of debt securities available for sale at December 31, 2018 were as follows:



	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable debt securities	$	84,199	$	168	$	—	$	84,367
Total debt securities available for sale	$	84,199	$	168	$	—	$	84,367

There were no available-for-sale debt securities with continuous unrealized losses for less than 12 months and 12 months or greater at June 30, 2019 and December 31, 2018, respectively.

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



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Gross realized gains on sales	$	9		$	2		$	47		$	2
Gross realized losses on sales	(3		)	(7		)	(5		)	(15		)
Net gains (losses) recognized on debt securities available for sale	$	6		$	(5	)	$	42		$	(13	)

Gross realized losses on other-than-temporary impairments	$	(2	)	$	(225	)	$	(5	)	$	(811	)

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:



	June 30, 2019		December 31, 2018
Marketable equity securities	$	24,257	$	26,010
Mutual funds invested in fixed income securities	22,012		21,192
Total equity securities at fair value	$	46,269	$	47,202

The following is a summary of unrealized and realized net gains and losses recognized in net income on equity securities at fair value during the three and six months ended June 30, 2019 and 2018, respectively:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Net gains recognized on equity securities ⁽¹⁾	$	2,311	$	3,236	$	7,051	$	491
Less: Net gains recognized on equity securities sold ⁽²⁾	278		53		410		183
Net unrealized gains recognized on equity securities still held at the reporting date	$	2,033	$	3,183	$	6,641	$	308

⁽¹⁾

Includes $1,911 and $1,505 of net gains recognized on equity securities at fair value that qualify for the net asset value (“NAV”) practical expedient during the three months ended June 30, 2019 and 2018, respectively, and $5,470 and $3,236 of net gains recognized on equity securities at fair value that qualify for the NAV practical expedient during the six months ended June 30, 2019 and 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 6.


⁽²⁾	Includes $215 and $649 of gains recognized on sales of equity securities at fair value that qualify for the NAV practical expedient during the three and six months ended June 30, 2019. These equity securities are included in the “Long-term investments” line item on the condensed consolidated balance sheet and are further discussed in Note 6.

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 12. 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.

Equity securities without readily determinable fair values that do not qualify for the NAV practical expedient consisted of an investment in the common stock of a reinsurance company at June 30, 2019 and December 31, 2018, respectively. The total carrying value of this investment was $5,000 and was included in “Other assets” on the condensed consolidated balance sheet at June 30, 2019 and December 31, 2018, respectively. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified for the three and six months ended June 30, 2019 and 2018, respectively.