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Investments in Marketable Securities
 9 Months Ended
Dec. 31, 2018
Marketable Securities [Abstract]  
Investments in Marketable Securities

Note 3 – Investments in Marketable Securities

Investments in marketable securities consist of debt securities and equity investments.  We classify all of our debt securities as available-for-sale.  Prior to April 1, 2018, our equity investments were also considered available-for-sale.  However, upon the adoption of new accounting guidance, all equity investments are measured at fair value with changes in fair value recognized in net income.

Investments in marketable securities consisted of the following:

 

 

 

December 31, 2018

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

 

cost

 

 

gains

 

 

losses

 

 

value

 

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency obligations

 

$

209

 

 

$

1

 

 

$

(5

)

 

$

205

 

Municipal debt securities

 

 

9

 

 

 

1

 

 

-

 

 

 

10

 

Commercial paper

 

 

189

 

 

-

 

 

-

 

 

 

189

 

Corporate debt securities

 

 

180

 

 

-

 

 

 

(5

)

 

 

175

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency

 

 

36

 

 

 

1

 

 

 

(1

)

 

 

36

 

Non-agency residential

 

 

1

 

 

 

1

 

 

-

 

 

 

2

 

Non-agency commercial

 

 

40

 

 

-

 

 

 

(1

)

 

 

39

 

Asset-backed securities

 

 

48

 

 

-

 

 

-

 

 

 

48

 

Total available-for-sale debt securities

 

$

712

 

 

$

4

 

 

$

(12

)

 

$

704

 

Equity investments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,198

 

Total investments in marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,902

 

 

 

 

March 31, 2018

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

 

cost

 

 

gains

 

 

losses

 

 

value

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency obligations

 

$

2,821

 

 

$

-

 

 

$

(23

)

 

$

2,798

 

Municipal debt securities

 

 

10

 

 

 

1

 

 

 

-

 

 

 

11

 

Certificates of deposit

 

 

475

 

 

 

-

 

 

 

(1

)

 

 

474

 

Commercial paper

 

 

52

 

 

 

-

 

 

 

-

 

 

 

52

 

Corporate debt securities

 

 

203

 

 

 

1

 

 

 

(3

)

 

 

201

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency

 

 

38

 

 

 

1

 

 

 

-

 

 

 

39

 

Non-agency residential

 

 

1

 

 

 

1

 

 

 

-

 

 

 

2

 

Non-agency commercial

 

 

30

 

 

 

-

 

 

 

(1

)

 

 

29

 

Asset-backed securities

 

 

39

 

 

 

-

 

 

 

-

 

 

 

39

 

Equity investments

 

 

2,196

 

 

 

11

 

 

 

(23

)

 

 

2,184

 

Total investments in marketable securities

 

$

5,865

 

 

$

15

 

 

$

(51

)

 

$

5,829

 

 

A portion of our equity investments are investments in funds that are privately placed and managed by an open-end investment management company (the “Trust”).  If we elect to redeem shares, the Trust will normally redeem all shares for cash, but may, in unusual circumstances, redeem amounts exceeding the lesser of $250 thousand or 1 percent of the Trust’s asset value by payment in kind of securities held by the respective fund during any 90-day period.

We also invest in actively traded open-end mutual funds.  Redemptions are subject to normal terms and conditions as described in each fund’s prospectus.

Note 3 – Investments in Marketable Securities (Continued)

Unrealized Losses on Securities

Available-for-sale debt securities in a continuous loss position for less than twelve months and greater than twelve months were not significant as of December 31, 2018.  Available-for-sale debt securities and equity investments in a continuous loss position for less than twelve months and for greater than twelve months were not significant as of March 31, 2018.

Gains and Losses on Securities

The following table represents gains and losses on our investments in marketable securities presented in our Consolidated Statements of Income:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized (losses) gains

 

$

(11

)

 

$

3

 

 

$

(12

)

 

$

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized losses recognized

 

$

(8

)

 

 

 

 

 

$

(48

)

 

 

 

 

 

Prior to April 1, 2018, available-for-sale securities included debt securities and equity investments.  Upon adoption of the new accounting guidance, equity investments are measured at fair value with changes in fair value recognized in net income.

Contractual Maturities

The amortized cost, fair value, and contractual maturities of available-for-sale debt securities are summarized in the following table.  Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.

 

 

 

December 31, 2018

 

 

 

Amortized Cost

 

 

Fair Value

 

Available-for-sale debt securities:

 

 

 

 

 

 

 

 

Due within 1 year

 

$

264

 

 

$

264

 

Due after 1 year through 5 years

 

 

96

 

 

 

95

 

Due after 5 years through 10 years

 

 

156

 

 

 

152

 

Due after 10 years

 

 

71

 

 

 

68

 

Mortgage-backed and asset-backed securities1

 

 

125

 

 

 

125

 

Total

 

$

712

 

 

$

704

 

 

1

Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities have multiple maturity dates.