Investments

3 Months Ended

Mar. 31, 2021

Investments

4- Investments

(4)

Investments

As of March 31, 2021, we held investments in commercial paper, bonds, money market accounts, mutual funds and equity securities. The commercial paper and bonds are considered held-to-maturity and are recorded at amortized cost in the accompanying consolidated balance sheets. The money market accounts, equity securities and mutual funds are recorded at fair value in the accompanying consolidated balance sheets. The fair values of these investments were estimated using recently executed transactions and market price quotations. We consider as current assets those investments which will mature in the next 12 months including interest receivable on the long-term bonds. The remaining investments are considered non-current assets including our investment in equity securities we intend to hold longer than 12 months.

The components of the Company’s cash and cash equivalents and our short and long-term investments are as follows (in thousands):

	March 31, 2021			December 31, 2020
Cash and cash equivalents:
Cash deposits	$	22,007		$	16,628
Money market funds		3,695			4,822
Commercial paper		3,725			1,000
Total cash and cash equivalents	$	29,427		$	22,450
Short-term investments:
Commercial paper (held-to-maturity)	$	5,329		$	5,178
Bonds (held-to-maturity)		13,086			14,101
Allowance for credit losses		(22	)		(21	)
Total short-term investments	$	18,393		$	19,258
Long-term investments:
Mutual funds (available for sale)	$	591		$	563
Bonds (held-to-maturity)		36,012			41,619
Allowance for credit losses		(34	)		(52	)
Equity securities (available for sale)		4,103			4,077
Total long-term investments	$	40,672		$	46,207
Total cash, cash equivalents and short and long-term investments	$	88,492		$	87,915

We utilize a lifetime “expected credit loss” measurement objective for the recognition of credit losses for held-to-maturity securities at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. Our credit loss calculations for held-to-maturity securities are based upon historical default and recovery rates of bonds rated with the same rating as our portfolio. We also apply an adjustment factor to these credit loss calculations based upon our assessment of the expected impact from current economic conditions on our investments, including the impact of COVID-19. We monitor the credit quality of debt securities classified as held-to-maturity through the use of their respective credit ratings and update them on a quarterly basis with our latest assessment completed on March 31, 2021. During the first quarter of 2021, our allowance for credit losses related to short-term investments increased by $1,000 and our allowance for credit losses related to long-term investments decreased by $18,000.

The following table summarizes the amortized cost of our held-to-maturity bonds at March 31, 2021, aggregated by credit quality indicator (in thousands):

Held-to-Maturity Bonds
Credit Quality Indicators	Asset Backed Bonds		Fed Govt. Bonds/Notes		Municipal Bonds		Corporate Bonds		Totals
AAA/AA/A	$	245	$	3,159	$	639	$	32,558	$	36,601
BBB/BB		-		-		-		12,497		12,497
TOTAL	$	245	$	3,159	$	639	$	45,055	$	49,098

Our investments are required to be measured for disclosure purposes at fair value on a recurring basis. Our investments are considered Level 1 or Level 2 as detailed in the table below. The fair values of these investments were estimated using recently executed transactions and market price quotations. The amortized cost and fair value of our investments, and the related gross unrealized gains and losses, were as follows as of the dates shown below (in thousands):

				Gross Unrealized
	Level	Cost		Gains		Losses			Fair Value
As of March 31, 2021:
Money market	1		3,695	$	-	$	-		$	3,695
Commercial paper	2		9,054	$	-	$	-		$	9,054
Bonds	2		49,098	$	306	$	(28	)	$	49,376
Mutual funds	1		609	$	-	$	(18	)	$	591
Equity investments	2		5,675	$	-	$	(1,572	)	$	4,103
As of December 31, 2020:
Money Market	1		4,822	$	-	$	-		$	4,822
Commercial paper	2		6,178	$	-	$	-		$	6,178
Bonds	2		55,720	$	505	$	(44	)	$	56,181
Mutual funds	1		599	$	-	$	(36	)	$	563
Equity investments	2		5,675	$	-	$	(1,598	)	$	4,077

The carrying value of our investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggest an investment may not be fully recoverable. The bonds represent investments in various issuers at March 31, 2021. The unrealized losses for some of these bond investments reflect changes in interest rates following their acquisition. As of March 31, 2021, we had no bond investments in a loss position for more than 12 months.

At March 31, 2021, the length of time until maturity of the commercial paper we owned ranged from less than a month to six months and the length of time to maturity for the bonds ranged from less than a month to 57 months.