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Financial Instruments
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments

5. FINANCIAL INSTRUMENTS

Investments consist of the following as of December 31, 2025 and 2024 (dollars in thousands):

 

 

December 31, 2025

 

 

 

 

 

 

Gross Unrealized

 

 

 

 

 

 

Cost

 

 

Gain

 

 

(Loss)

 

 

Fair Value

 

Short-term investments (available-for-sale):

 

 

 

 

 

 

 

 

 

 

 

 

Non-governmental debt securities

 

$

329,108

 

 

$

1,105

 

 

$

(112

)

 

$

330,101

 

Treasury and federal agencies

 

 

180,631

 

 

 

529

 

 

 

(50

)

 

 

181,110

 

Total short-term investments (available-for-sale)

 

$

509,739

 

 

$

1,634

 

 

$

(162

)

 

$

511,211

 

 

 

December 31, 2024

 

 

 

 

 

 

Gross Unrealized

 

 

 

 

 

 

Cost

 

 

Gain

 

 

(Loss)

 

 

Fair Value

 

Short-term investments (available-for-sale):

 

 

 

 

 

 

 

 

 

 

 

 

Non-governmental debt securities

 

$

246,070

 

 

$

466

 

 

$

(278

)

 

$

246,258

 

Treasury and federal agencies

 

 

213,394

 

 

 

258

 

 

 

(115

)

 

 

213,537

 

Total short-term investments (available-for-sale)

 

$

459,464

 

 

$

724

 

 

$

(393

)

 

$

459,795

 

 

In the table above, unrealized holding gains (losses) relate to short-term investments that have been in a continuous unrealized gain (loss) position for less than one year, which are recorded within accumulated other comprehensive income on our consolidated balance sheets.

Our non-governmental debt securities primarily consist of corporate bonds, certificates of deposit and commercial paper. Our treasury and federal agencies debt securities primarily consist of U.S. Treasury bills and federal home loan debt securities.

A schedule of available-for-sale investments segregated by their original stated terms to maturity as of December 31, 2025 and 2024 are as follows (dollars in thousands):

 

 

Less than
one year

 

 

One to
five years

 

 

Total

 

Original stated term to maturity of available-for-sale-
   investments as of December 31, 2025

 

$

35,240

 

 

$

475,971

 

 

$

511,211

 

Original stated term to maturity of available-for-sale-
   investments as of December 31, 2024

 

$

57,206

 

 

$

402,589

 

 

$

459,795

 

 

There were no realized gains or losses from the sale of investments for the years ended December 31, 2025, 2024 and 2023.

Fair Value Measurements

FASB ASC Topic 820 – Fair Value Measurement establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of December 31, 2025 and 2024, we held investments that are required to be measured at fair value on a recurring basis. These investments (available-for-sale) consist of non-governmental debt securities and treasury and federal agencies securities. Available-for-sale securities included in Level 2 are estimated based on observable inputs other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for identical or similar assets or liabilities in inactive markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Financial instruments measured at fair value on a recurring basis subject to the disclosure requirements of FASB ASC Topic 820 - Fair Value Measurements at December 31, 2025 and December 31, 2024 were as follows (dollars in thousands):

 

 

 

As of December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

Cash and cash equivalents - money market funds

 

$

20,202

 

 

$

-

 

 

$

20,202

 

Short-term investments - non-governmental debt securities

 

 

-

 

 

 

330,101

 

 

 

330,101

 

Short-term investments - treasury and federal agencies

 

 

-

 

 

 

181,110

 

 

 

181,110

 

Totals

 

$

20,202

 

 

$

511,211

 

 

$

531,413

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

Cash and cash equivalents - money market funds

 

$

30,189

 

 

$

-

 

 

$

30,189

 

Cash and cash equivalents - federal agency debt securities

 

 

-

 

 

 

13,078

 

 

 

13,078

 

Short-term investments - non-governmental debt securities

 

 

-

 

 

 

246,258

 

 

 

246,258

 

Short-term investments - treasury and federal agencies

 

 

-

 

 

 

213,537

 

 

 

213,537

 

Totals

 

$

30,189

 

 

$

472,873

 

 

$

503,062

 

 

Equity Method Investment

Our investment in an equity affiliate, an international private company, was sold during the fourth quarter of 2025 and a gain on sale of investment of $1.0 million was recorded within other miscellaneous income (expense) on our consolidated statement of income for the year ended December 31, 2025.

We made periodic operating maintenance payments to our former equity affiliate. The total related party fees recorded for the years ended December 31, 2025, 2024 and 2023 were as follows (dollars in thousands):

For the year ended December 31, 2025 (1)

 

$

1,663

 

For the year ended December 31, 2024

 

$

1,727

 

For the year ended December 31, 2023

 

$

1,672

 

________________

(1) Maintenance payments incurred up to the date of sale.