Note 7 - Marketable Securities

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Investment [Text Block]

Note 7 – 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. Categorization as held-to-maturity is based on the Company’s ability and intent to hold these securities to maturity. Information regarding the Company’s short-term and long-term marketable securities as of December 31, 2020 and 2019 is as follows:

	December 31, 2020
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government agency securities	$	18,500	$	6	$	(10	)	$	18,496
Corporate debt securities		42,048		211		(11	)		42,248
U.S. municipal securities		25,003		83		(2	)		25,084
Commercial paper		2,499		-		-			2,499
Certificates of deposit/time deposits		5,395		93		-			5,488
Total marketable securities	$	93,445	$	393	$	(23	)	$	93,815

	December 31, 2019
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government agency securities	$	6,274	$	1	$	(7	)	$	6,268
Corporate debt securities		26,944		80		(12	)		27,012
U.S. municipal securities		10,204		9		(3	)		10,210
Commercial paper		3,491		-		-			3,491
Certificates of deposit/time deposits		1,484		22		-			1,506
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. government agency securities, U.S. municipal securities, commercial paper and certificates of deposit 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 December 31, 2020 balance of held-to-maturity debt securities by contractual maturity is shown in the following table at amortized cost. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

	December 31,
(in thousands)	2020
Due in one year or less	$	34,088
Due after one year through five years		59,357
Total marketable securities	$	93,445