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Investments
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments

Note 5 – Investments

Debt Securities and Other Investments

The Company did not have any debt securities and other investments as of December 31, 2023.

As of December 31, 2022, the following debt securities and other investments were included in short-term investments and long-term investments on the Consolidated Balance Sheet and recorded at fair value:

 

 

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

 

 

Realized gains and losses on sales of securities are computed under the specific identification method. The following table presents gross realized gains and losses related to our debt securities for the years ended December 31, 2023, 2022 and 2021:

 

 

For the year ended December 31,

 

(In thousands)

 

2023

 

 

2022

 

 

2021

 

Gross realized gains on debt securities

 

$

9

 

 

$

17

 

 

$

241

 

Gross realized losses on debt securities

 

 

(355

)

 

 

(1,211

)

 

 

(159

)

Total (loss) gain recognized, net

 

$

(346

)

 

$

(1,194

)

 

$

82

 

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 the total investment portfolio. The Company did not purchase any available-for-sale debt with credit deterioration during the years ended December 31, 2023, 2022 and 2021.

The following table presents the breakdown of debt securities and other investments with unrealized losses as of December 31, 2022:

 

 

 

Continuous Unrealized
Loss Position for Less
than 12 Months

 

 

Continuous Unrealized
Loss Position for 12
Months or Greater

 

 

Total

 

(In thousands)

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

 

Fair Value

 

 

Unrealized
Losses

 

Corporate bonds

 

$

1,367

 

 

$

(39

)

 

$

583

 

 

$

(42

)

 

$

1,950

 

 

$

(81

)

Municipal fixed-rate bonds

 

 

—

 

 

 

—

 

 

 

180

 

 

 

(5

)

 

 

180

 

 

 

(5

)

Asset-backed bonds

 

 

524

 

 

 

(14

)

 

 

117

 

 

 

(10

)

 

 

641

 

 

 

(24

)

Mortgage/Agency-backed bonds

 

 

825

 

 

 

(23

)

 

 

844

 

 

 

(82

)

 

 

1,668

 

 

 

(105

)

U.S. government bonds

 

 

2,215

 

 

 

(106

)

 

 

1,063

 

 

 

(82

)

 

 

3,278

 

 

 

(188

)

Foreign government bonds

 

 

—

 

 

 

—

 

 

 

383

 

 

 

(24

)

 

 

383

 

 

 

(24

)

Total

 

$

4,931

 

 

$

(182

)

 

$

3,170

 

 

$

(245

)

 

$

8,100

 

 

$

(427

)

Marketable Equity Securities

Marketable equity securities consist of publicly traded stock, funds and certain other investments measured at fair value or cost, where appropriate.

Realized and unrealized gains and losses for our marketable equity securities for the year ended December 31, 2023, 2022 and 2021 were as follows:

 

 

 

For the year ended December 31,

 

(In thousands)

 

2023

 

 

2022

 

 

2021

 

Realized gains (losses) on equity securities sold

 

$

17

 

 

$

(1,675

)

 

$

(992

)

Unrealized gains (losses) on equity securities held

 

 

3,083

 

 

 

(8,470

)

 

 

2,671

 

Total gain (loss) recognized, net

 

$

3,100

 

 

$

(10,145

)

 

$

1,679

 

 

As of December 31, 2022, gross unrealized losses related to individual investments in a continuous loss position for twelve months or longer were not material.

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; 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 December 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

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

5,302

 

 

$

5,302

 

 

$

—

 

 

$

—

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities - various industries

 

 

905

 

 

 

905

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

26,838

 

 

 

26,838

 

 

 

—

 

 

 

—

 

Total

 

$

33,045

 

 

$

33,045

 

 

$

—

 

 

$

—

 

 

 

 

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 our 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.

The fair value of Level 3 securities is calculated based on unobservable inputs. Quantitative information with respect to unobservable inputs consisted of third-party valuations performed in accordance with ASC 820 – Fair Value Measurement. Inputs used in preparing the third-party valuation included the following assumptions, among others: estimated discount rates and fair market yields.

Our variable rate demand notes have a structure that implies a standard expected market price. The frequent interest rate resets make it reasonable to expect the price to stay at par. These securities are priced at the expected market price.