Investments

12 Months Ended

Dec. 31, 2021

Investments

2- Investments

(2) Investments

As of December 31, 2021 and 2020, we held investments in commercial paper, bonds, money market funds, mutual funds, and equity securities that are required to be measured for disclosure purposes at fair value on a recurring basis. 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 funds, equity securities, and mutual funds are recorded at fair value in the accompanying consolidated balance sheets. These investments are considered Level 1 or Level 2 as detailed in the table below. 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 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 December 31, 2021:
Money market funds		1	$	29,876	$	--	$	--		$	29,876
Commercial paper		2	$	2,248	$	--	$	--		$	2,248
Bonds		2	$	40,236	$	97	$	(37	)	$	40,296
Mutual funds		1	$	558	$	1	$	--		$	559
Equity investments		2	$	5,675	$	--	$	(207	)	$	5,468
As of December 31, 2020:
Money market funds		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 above equity investments represent an investment in one company at December 31, 2021 and is classified as available for sale. 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 recoverable. As of December 31, 2021, we had two bond investments in a loss position for more than 12 months.

At December 31, 2021, the length of time until maturity of the bonds we currently own ranged from one to 48 months and the length of time until maturity of the commercial paper ranged from one to four months.

We use 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 December 31, 2021. Our allowance for credit losses was $29 thousand as of December 31, 2021 and $72 thousand as of December 31, 2020.

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

Held-to-Maturity Bonds
Credit Quality Indicators	Fed Govt. Bonds/Notes		Municipal Bonds		Corporate Bonds		Total
AA/A	$	2,413	$	632	$	23,835	$	26,880
BBB		-		-		13,356		13,356
TOTAL	$	2,413	$	632	$	37,191	$	40,236