Marketable Securities

9 Months Ended

Sep. 30, 2018

6. Marketable Securities

The following is a summary of available-for-sale securities as of September 30, 2018 (in thousands):


	September 30, 2018
		Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Losses)		Estimated Fair Value
Tax-exempt municipal securities	$	21,366	$	1	$	(69)	$	21,298
Corporate debt securities		41,730		7		(272)		41,465
Variable rate demand notes		8,700		-		-		8,700
Total	$	71,796	$	8	$	(341)	$	71,463

The marketable securities were acquired in the merger with CEC; the Company had no holdings of marketable securities classified as available-for-sale as of December 31, 2017. The unrealized gains and losses on the Company’s investments in municipal and corporate debt securities as of September 30, 2018 were caused by changes in market values primarily due to interest rate changes. As of September 30, 2018, the fair value of the Company’s securities which were in an unrealized loss position for a period longer than twelve months was $5.9 million. The Company does not intend to sell these securities, and it is not more likely than not that the Company will be required to sell these securities prior to the recovery of their amortized cost basis, which may be at maturity. No other-than-temporary impairment charges were recorded during the three and nine months ended September 30, 2018.

The following table summarizes the maturities of the Company’s marketable securities as of September 30, 2018 (in thousands):


		September 30, 2018
Due within one year	$	38,139
Due after one year through five years		33,324
Total	$	71,463

Amounts due within one year in the table above included $8.7 million of variable rate demand notes, with contractual maturities ranging from 19 years to 31 years as of September 30, 2018. The variable rate demand notes are floating rate municipal bonds with embedded put options that allow the Company to sell the security at par plus accrued interest on a settlement basis ranging from one day to seven days. We have classified these securities based on their effective maturity date, which ranges from one day to seven days from the balance sheet date.

The Company received $5.8 million of proceeds from the maturities of available-for-sale securities during the three and nine months ended September 30, 2018. The Company did not record any gross realized gains or gross realized losses in net income during the three and nine months ended September 30, 2018. Additionally, there were no proceeds from sales of marketable securities prior to maturity during the three and nine months ended September 30, 2018.