Note E - Marketable Securities and Time Deposits

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE E — MARKETABLE SECURITIES and time deposits

The Company accounts for investments in marketable securities in accordance with FASB ASC No. 320-10 “Investments in Debt and Equity Securities.” Management determines the appropriate classification of its investments in government and corporate marketable debt securities at the time of purchase and reevaluates such determinations at each balance sheet date.

The Company classifies marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported in other comprehensive income. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and interest are included in financial income, net. Interest and dividends on securities are included in financial income, net. The following is a summary of available-for-sale securities at September 30, 2020 and December 31, 2019:

	Amortized cost				Unrealized gains (losses), net					Fair value
	September 30, 2020		December 31, 2019		September 30, 2020		December 31, 2019			September 30, 2020		December 31, 2019
	(Unaudited)		(Audited)		(Unaudited)		(Audited)			(Unaudited)		(Audited)
Short-term deposits	$	18,147	$	15,067	$	-	$	-		$	18,147	$	15,067
U.S. GSE securities		1,150		4,468		11		(6	)		1,161		4,462
Corporate obligations		83,448		82,556		214		(60	)		83,662		82,496
	$	102,745	$	102,091	$	225	$	(66	)	$	102,970	$	102,025

The amortized cost of marketable debt securities and term deposits at September 30, 2020, by contractual maturities, is shown below (unaudited):

			Unrealized gains (losses)
	Amortized cost		Gains		Losses			Fair value
Due in one year or less	$	47,323	$	109	$	(17	)	$	47,415
Due after one year to five years		55,422		404		(271	)		55,555
	$	102,745	$	513	$	(288	)	$	102,970

The actual maturity dates may differ from the contractual maturities because debtors may have the right to call or prepay obligations without penalties.

Available-for-sale debt securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of that difference, if any, is caused by expected credit losses. Expected credit losses on available-for-sale debt securities are recognized in interest and other income (expense), net on the Company’s condensed consolidated statements of income, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive loss in stockholders' equity. As of September 30, 2020, the Company did not record an allowance for credit losses for its available-for-sale marketable debt securities. The Company has not recorded any impairment charge for unrealized losses in the periods presented. The Company determines realized gains or losses on sale of marketable securities on a specific identification method and records such gains or losses as interest and other income (expense), net.

The total fair value of marketable securities with outstanding unrealized losses as of September 30, 2020 amounted to $42,286, while the unrealized losses for these marketable securities amounted to $288. Of the $288 unrealized losses outstanding as of September 30, 2020, no marketable securities were in a loss position for more than 12 months.

Proceeds from maturity of available-for-sale marketable securities during the nine months ended September 30, 2020 and 2019 were $46,924 and $20,906, respectively. Proceeds from sales of available-for-sale marketable securities during the nine months ended September 30, 2020 and 2019 were $24,553 and $21,498, respectively. Net realized gains from the sale of available-for-sale securities for the nine months ended September 30, 2020 were $39 compared to net realized losses for the nine months ended September 30, 2019 of $50. The Company determines realized gains or losses on the sale of marketable securities based on a specific identification method.