Note 4 - Investments

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Investment [Text Block]

4

. Investments

The following table summarizes the investments by investment category:

	December 31, 201 8
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
Available-for-sale securities:
Municipal bonds	$	6,751	$	1	$	(19	)	$	6,733
Corporate notes/bonds		146,466		14		(354	)		146,126
Variable rate demand notes		8,900		—		—			8,900
Asset-backed securities		32,986		—		(63	)		32,923
Commercial paper		39,707		—		(6	)		39,701
Certificate of deposit		956		—		—			956
Total investments	$	235,766	$	15	$	(442	)	$	235,339

	December 31, 201 7
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
Available-for-sale securities:
Municipal bonds	$	27,725	$	—	$	(68	)	$	27,657
Corporate notes/bonds		146,549		49		(197	)		146,401
Variable rate demand notes		3,500		—		—			3,500
Asset-backed securities		7,197		—		(12	)		7,185
Commercial paper		57,006		1		(13	)		56,994
Total investments	$	241,977	$	50	$	(290	)	$	241,737

As of

December 

31,

2018,

the Company had

99

investments that were in an unrealized loss position. The gross unrealized losses on these investments at

December 31, 2018

were primarily due to changes in interest rates and determined to be temporary in nature. 

The realized gain related to the Company’s available-for-sale investment, which was reclassified from accumulated other comprehensive income, was included in other income in the consolidated statements of income.

The contractual maturities of available-for-sale securities at

December 31, 2018

are presented in the following table:

	Cost		Fair Value
Due in one year or less	$	147,908	$	147,712
Due between one and five years		75,458		75,236
Due after five years		12,400		12,391
	$	235,766	$	235,339

The Company has a marketable equity investment in a company located in Taiwan. The fair value of the investment and unrealized loss as of

December 31, 2018

was

$1,387

and

$607,

respectively. This investment is presented as Other assets, net on the consolidated balance sheet.

          The Company has non-marketable equity investments in privately held companies without readily determinable market values. Prior to

January 1, 2018,

the Company accounted for non-marketable equity investments at cost less impairment. Realized gains and losses on non-marketable equity investments sold or impaired were recognized in Other income, net. On

January 1, 2018,

the Company adopted ASU

2016

-

01,

Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities, which changed the way the Company accounts for non-marketable equity investments. The Company adjusts the carrying value of non-marketable equity investments to fair value upon observable transactions for identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). All gains and losses on non-marketable equity investments, realized and unrealized, are recognized in Other income, net. There was

no

cumulative effect adjustment upon adoption of this guidance. As of

December 31, 2018,

non-marketable equity investments had a carrying value of approximately

$16,866,

of which

$6,066

was remeasured to fair value based on observable transaction during the year ended

December 31, 2018.

These investments are presented as Other assets, net on the consolidated balance sheet. The unrealized gain recorded in other income, net and included as adjustment to the carrying value of non-marketable equity investments held as of

December 31, 2018

was

$3,066

for the year ended

December 31, 2018.

During the year ended

December 31, 2018,

the Company recorded an impairment charge of

$7,000

related to a certain investment in a private company because the investee is currently in receivership and the Company is

not

expected to recover its cost.  The impairment charge was included in other income, net in the consolidated statements of income (loss).

In

July 2016,

the Company sold its minority interest in a cost method investment for

$8,759,

of which

$2,414

was received in

2018.

The gain on sale of

$1,138

was included in other income in the consolidated statements of income for the year ended

December 31, 2016.