MARKETABLE SECURITIES

ASC 320, “Investments – Debt and Equity Securities” requires that an enterprise classify all debt securities as either held-to-maturity, trading or available-for-sale. The Company has elected to classify its securities as available-for-sale and therefore is required to adjust securities to fair value at each reporting date. All costs and both realized and unrealized gains and losses on securities are determined on a specific identification basis. The following is a summary of available-for-sale securities at:



($ in thousands)		September 30, 2018				December 31, 2017
Marketable Securities:	Fair Value Hierarchy	Cost		Fair Value		Cost		Fair Value
Certificates of deposit
with unrecognized losses for less than 12 months		$	5,237	$	5,183	$	6,238	$	6,222
with unrecognized losses for more than 12 months		1,087		1,085		102		100
with unrecognized gains		—		—		2,088		2,089
Total Certificates of deposit	Level 1	6,324		6,268		8,428		8,411
U.S. Treasury and agency notes
with unrecognized losses for less than 12 months		29,766		29,528		29,741		29,669
with unrecognized losses for more than 12 months		234		233		137		135
with unrecognized gains		3		4		152		153
Total U.S. Treasury and agency notes	Level 2	30,003		29,765		30,030		29,957
Corporate notes
with unrecognized losses for less than 12 months		21,453		21,304		18,230		18,159
with unrecognized losses for more than 12 months		3,063		3,047		2,804		2,788
with unrecognized gains		1,125		1,125		—		—
Total Corporate notes	Level 2	25,641		25,476		21,034		20,947
Municipal notes
with unrecognized losses for less than 12 months		6,770		6,717		10,298		10,288
with unrecognized losses for more than 12 months		1,074		1,065		999		987
with unrecognized gains		90		90		277		278
Total Municipal notes	Level 2	7,934		7,872		11,574		11,553
		$	69,902	$	69,381	$	71,066	$	70,868

We evaluate our securities for other-than-temporary impairment based on the specific facts and circumstances surrounding each security valued below its cost. Factors considered include the length of time the securities have been valued below cost, the financial condition of the issuer, industry reports related to the issuer, the severity of any decline, our intention not to sell the security, and our assessment as to whether it is not more likely than not that we will be required to sell the security before a recovery of its amortized cost basis. We then segregate the loss between the amounts representing a decrease in cash flows expected to be collected, or the credit loss, which is recognized through earnings, and the balance of the loss, which is recognized through other comprehensive income. At September 30, 2018, the fair market value of investment securities was $521,000 below the cost basis of securities.

As of September 30, 2018, the adjustment to accumulated other comprehensive loss in consolidated equity for the temporary change in the value of securities reflected a decrease in the market value of available-for-sale securities of $323,000, which includes estimated taxes of $69,000. As of September 30, 2018, the Company’s gross unrealized holding gains equaled $1,000 and gross unrealized holding losses equaled $522,000.

The following tables summarize the maturities, at par, of marketable securities as of:



	September 30, 2018
($ in thousands)	2018		2019		2020		2021		Total
Certificates of deposit	$	2,211	$	2,311	$	1,799	$	—	$	6,321
U.S. Treasury and agency notes	3,351		17,574		9,174		—		30,099
Corporate notes	4,325		13,721		7,150		400		25,596
Municipal notes	823		5,111		2,000		—		7,934
	$	10,710	$	38,717	$	20,123	$	400	$	69,950



	December 31, 2017
($ in thousands)	2018		2019		2020		2021		Total
Certificates of deposit	$	4,306	$	2,311	$	1,799	—		$	8,416
U.S. Treasury and agency notes	6,399		14,599		9,171		—		30,169
Corporate notes	7,954		6,430		6,450		—		20,834
Municipal notes	1,568		6,957		3,003		—		11,528
	$	20,227	$	30,297	$	20,423	$	—	$	70,947

The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s.