Note 6 - Marketable Securities

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Investment [Text Block]

Note 6 – Marketable Securities

The Company invests in short-term and long-term agency, municipal, corporate and other debt securities. The securities are categorized as held-to-maturity and are recorded at amortized cost, net of an allowance for credit losses. Categorization as held-to-maturity is based on the Company’s ability and intent to hold these securities to maturity. The following table summarizes information regarding the Company’s short-term and long-term marketable securities as of  March 31, 2020 and December 31, 2019:

	March 31, 2020
(in thousands)	Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. municipal securities	$	12,704	$	19		(14	)	$	12,709
Corporate debt securities		35,100		45		(239	)		34,906
U.S. government agency securities		20,801		61		-			20,862
Certificates of deposit/time deposits		3,697		31		(2	)		3,726
Commercial paper		2,969		11		-			2,980
Total marketable securities	$	75,271	$	167	$	(255	)	$	75,183

	December 31, 2019
(in thousands)	Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. municipal securities	$	10,204	$	9	$	(3	)	$	10,210
Corporate debt securities		26,944		80		(12	)		27,012
U.S. government agency securities		6,274		1		(7	)		6,268
Certificates of deposit/time deposits		1,484		22		-			1,506
Commercial paper		3,491		-		-			3,491
Total marketable securities	$	48,397	$	112	$	(22	)	$	48,487

Fair values for the corporate debt securities are primarily determined based on quoted market prices (Level 1). Fair values for the U.S. municipal securities, U.S. government agency securities, certificates of deposit and U.S. treasury securities are primarily determined using dealer quotes or quoted market prices for similar securities (Level 2).

During the first quarter of 2020, the Company adopted the FASB ASU 2016-13, Financial Instruments – Credit Losses. The Company calculated the expected credit loss for each security in its portfolio using the probability-of-default method. The Company concluded the adoption of the guidance had no material impact on its consolidated financial statements. 

Classification of marketable securities as current or non-current is based upon the security’s maturity date as of the date of these financial statements.

The  March 31, 2020 balance of held-to-maturity debt securities by contractual maturity is shown in the following table at amortized cost, net of an allowance for credit losses. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

	March 31,
(in thousands)	2020
Due in one year or less	$	38,194
Due after one year through five years		37,077
Total marketable securities	$	75,271