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Investments
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments

6. INVESTMENTS

Debt Securities and Other Investments

The following debt securities and other investments were included on the Condensed Consolidated Balance Sheets and recorded at fair value:

 

 

 

As of March 31, 2023

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

2,218

 

 

$

4

 

 

$

(63

)

 

$

2,159

 

Municipal fixed-rate bonds

 

 

185

 

 

 

—

 

 

 

(4

)

 

 

181

 

Asset-backed bonds

 

 

734

 

 

 

1

 

 

 

(20

)

 

 

715

 

Mortgage/Agency-backed bonds

 

 

1,699

 

 

 

1

 

 

 

(82

)

 

 

1,618

 

U.S. government bonds

 

 

4,299

 

 

 

5

 

 

 

(151

)

 

 

4,153

 

Foreign government bonds

 

 

406

 

 

 

—

 

 

 

(19

)

 

 

387

 

Available-for-sale debt securities held at fair value

 

$

9,541

 

 

$

11

 

 

$

(339

)

 

$

9,213

 

 

 

 

As of December 31, 2022

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

2,538

 

 

$

5

 

 

$

(81

)

 

$

2,462

 

Municipal fixed-rate bonds

 

 

185

 

 

 

—

 

 

 

(5

)

 

 

180

 

Asset-backed bonds

 

 

818

 

 

 

1

 

 

 

(24

)

 

 

795

 

Mortgage/Agency-backed bonds

 

 

1,853

 

 

 

—

 

 

 

(105

)

 

 

1,748

 

U.S. government bonds

 

 

3,870

 

 

 

3

 

 

 

(188

)

 

 

3,685

 

Foreign government bonds

 

 

407

 

 

 

—

 

 

 

(24

)

 

 

383

 

Available-for-sale debt securities held at fair value

 

$

9,671

 

 

$

9

 

 

$

(427

)

 

$

9,253

 

 

The contractual maturities related to debt securities and other investments were as follows:

 

 

 

As of March 31, 2023

(In thousands)

 

Corporate
bonds

 

 

Municipal
fixed-rate
bonds

 

 

Asset-
backed
bonds

 

 

Mortgage/
Agency-
backed bonds

 

 

U.S. government
bonds

 

 

Foreign government bonds

 

 

Less than one year

 

$

369

 

 

$

181

 

 

$

—

 

 

$

—

 

 

$

508

 

 

$

—

 

 

One to two years

 

 

966

 

 

 

—

 

 

 

169

 

 

 

166

 

 

 

3,174

 

 

 

387

 

 

Two to three years

 

 

824

 

 

 

—

 

 

 

49

 

 

 

600

 

 

 

348

 

 

 

—

 

 

Three to five years

 

 

—

 

 

 

—

 

 

 

337

 

 

 

242

 

 

 

123

 

 

 

—

 

 

Five to ten years

 

 

—

 

 

 

—

 

 

 

—

 

 

 

238

 

 

 

—

 

 

 

—

 

 

More than ten years

 

 

—

 

 

 

—

 

 

 

160

 

 

 

372

 

 

 

—

 

 

 

—

 

 

Total

 

$

2,159

 

 

$

181

 

 

$

715

 

 

$

1,618

 

 

$

4,153

 

 

$

387

 

 

 

Actual maturities may differ from contractual maturities as some borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Realized gains and losses on sales of debt securities are computed under the specific identification method. The following table presents the gross realized gains and losses related to its debt securities:

 

 

 

Three Months Ended

 

 

 

March 31,

 

(In thousands)

 

2023

 

 

2022

 

     Gross realized gain on debt securities

 

$

4

 

 

$

12

 

     Gross realized loss on debt securities

 

 

(11

)

 

 

(40

)

Total (loss) gain recognized, net

 

$

(7

)

 

$

(28

)

Income generated from available-for-sale debt securities was recorded as interest and dividend income in the Condensed Consolidated Statements of Loss. No allowance for credit losses was recorded for the three months ended March 31, 2023 and 2022 related to available-for-sale debt securities. The Company’s investment policy provides limitations for issuer concentration, which limits, at the time of purchase, the concentration in any one issuer to 5% of the market value of its total investment portfolio. The Company did not purchase any available-for-sale debt security with credit deterioration during the three months ended March 31, 2023.

Realized and unrealized gains and losses related to marketable equity securities were as follows:

 

 

 

Three Months Ended

 

 

 

March 31,

 

(In thousands)

 

2023

 

 

2022

 

     Realized (loss) gain on equity securities sold

 

$

13

 

 

$

(25

)

     Unrealized (loss) gain on equity securities held

 

 

1,246

 

 

 

(3,362

)

Total (loss) gain recognized, net

 

$

1,259

 

 

$

(3,387

)

 

Income generated from marketable equity securities was recorded as interest and dividend income in the Condensed Consolidated Statements of Loss. U.S. GAAP establishes a three-level valuation hierarchy based upon observable and unobservable inputs for fair value measurement of financial instruments:


• Level 1 – Observable outputs; values based on unadjusted quoted prices for identical assets or liabilities in an active market;

• Level 2 – Significant inputs that are observable; values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly;

• Level 3 – Significant unobservable inputs; values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs could include information supplied by investees.

The Company’s cash equivalents and investments held at fair value are categorized into this hierarchy as follows:

 

 

 

 

 

 

Fair Value Measurements as of March 31, 2023 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices
in Active
Market for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

US government securities

 

$

175

 

 

$

175

 

 

$

—

 

 

$

—

 

Money market funds

 

 

243

 

 

 

243

 

 

 

—

 

 

 

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

2,159

 

 

 

—

 

 

 

2,159

 

 

 

—

 

Municipal fixed-rate bonds

 

 

181

 

 

 

—

 

 

 

181

 

 

 

—

 

Asset-backed bonds

 

 

715

 

 

 

—

 

 

 

715

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

1,618

 

 

 

—

 

 

 

1,618

 

 

 

—

 

U.S. government bonds

 

 

4,153

 

 

 

4,153

 

 

 

—

 

 

 

—

 

Foreign government securities

 

 

387

 

 

 

—

 

 

 

387

 

 

 

—

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

821

 

 

 

821

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

24,013

 

 

 

24,013

 

 

 

—

 

 

 

—

 

Total

 

$

34,465

 

 

$

29,405

 

 

$

5,060

 

 

$

—

 

 

 

 

 

 

 

 

Fair Value Measurements as of December 31, 2022 Using

 

(In thousands)

 

Fair Value

 

 

Quoted Prices
in Active
Market for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

228

 

 

$

228

 

 

$

—

 

 

$

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

2,462

 

 

 

—

 

 

 

2,462

 

 

 

—

 

Municipal fixed-rate bonds

 

 

180

 

 

 

—

 

 

 

180

 

 

 

—

 

Asset-backed bonds

 

 

795

 

 

 

—

 

 

 

795

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

1,748

 

 

 

—

 

 

 

1,748

 

 

 

—

 

U.S. government bonds

 

 

3,685

 

 

 

3,685

 

 

 

—

 

 

 

—

 

Foreign government bonds

 

 

383

 

 

 

—

 

 

 

383

 

 

 

—

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

804

 

 

 

804

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

22,942

 

 

 

22,942

 

 

 

—

 

 

 

—

 

Total

 

$

33,227

 

 

$

27,659

 

 

$

5,568

 

 

$

—

 

 

The fair value of its Level 2 securities is calculated using a weighted average market price for each security. Market prices are obtained from a variety of industry standard data providers, large financial institutions and other third-party sources. These multiple market prices are used as inputs into a distribution-curve-based algorithm to determine the daily market value of each security.