Note E - Marketable Securities and Time Deposits

3 Months Ended

Mar. 31, 2021

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 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 March 31, 2021 and December 31, 2020:

	Amortized cost				Unrealized losses, net				Fair value
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
	(Unaudited)		(Audited)		(Unaudited)		(Audited)		(Unaudited)		(Audited)
Short-term deposits		22,153	$	22,241		-	$	-	$	22,153	$	22,241
U.S. GSE securities		1,146		1,149		12		11		1,158		1,160
Corporate obligations		85,105	$	87,319		52		349		85,157	$	87,668
	$	108,404	$	110,709	$	64	$	360	$	108,468	$	111,069

The amortized cost of marketable debt securities at March 31, 2021, by contractual maturities, is shown below:

			Unrealized gains (losses)
	Amortized cost		Gains		Losses			Fair value
Due in one year or less	$	31,099	$	55	$	(40	)	$	31,114
Due after one year to five years		55,152		308		(259	)		55,201
	$	86,251	$	363	$	(299	)	$	86,315

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

The total fair value of marketable securities with outstanding unrealized losses as of March 31, 2021 amounted to $48,276, and the unrealized losses for these marketable securities amounted to $299.

Management believes that as of March 31, 2021, the unrealized losses in the Company’s investments in all types of marketable securities were temporary and no credit loss was realized in the Company’s consolidated interim statements of operations.

The Company assessed available-for-sale debt securities with an amortized cost basis in excess of estimated fair value to determine what amount of the difference, if any, is caused by expected credit losses in accordance with ASC 326 “Financial Instruments – Credits Losses.” Allowance for credit losses on available-for-sale debt securities are recognized as a charge in the consolidated statement of operation, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders' equity. The unrealized losses related to the Company’s marketable securities were primarily due to changes in interest rates. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity and because the unrealized losses are not as a result of a credit loss, the Company does not consider the losses to be a credit loss at March 31, 2021.

Proceeds from maturity of available-for-sale marketable securities during the first quarter of 2021 and 2020 were $3,054 and $16,684, respectively. Proceeds from sales of available-for-sale marketable securities during the first quarter of 2021 and 2020 were $1,693 and $5,734, respectively. Net realized loss from the sale of available-for-sale securities for the three months ended March 31, 2021 were $8 compared to net realized gain for the three months ended March 31, 2020 of $7. The Company determines realized gains or losses on the sale of available-for-sale marketable securities based on a specific identification method.