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Financial Instruments
 12 Months Ended
Dec. 31, 2018
Financial Instruments  
Financial Instruments

5.    Financial Instruments

 

The Company elected to invest a portion of its cash assets in conservative, income earning, liquid investments. Cash equivalents and investments, all of which are classified as available-for-sale securities, consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

December 31, 2017

 

 

    

Amortized
Cost

    

Gross
Unrealized
Gain

    

Gross
Unrealized
(Loss)

    

Estimated Fair
Value

    

Amortized
Cost

    

Gross
Unrealized
Gain

    

Gross
Unrealized
(Loss)

    

Estimated Fair
Value

 

 

 

(in thousands)

 

Money market deposits

 

$

26,539

 

$

 —

 

$

 —

 

$

26,539

 

$

3,477

 

$

 —

 

$

 —

 

$

3,477

 

U.S. Treasury securities

 

 

76,061

 

 

29

 

 

(405)

 

 

75,685

 

 

67,480

 

 

10

 

 

(464)

 

 

67,026

 

U.S. agency securities

 

 

13,017

 

 

 —

 

 

(126)

 

 

12,891

 

 

27,293

 

 

 —

 

 

(221)

 

 

27,072

 

Municipal securities

 

 

18,935

 

 

 7

 

 

(57)

 

 

18,885

 

 

12,240

 

 

 —

 

 

(91)

 

 

12,149

 

Total

 

$

134,552

 

$

36

 

$

(588)

 

$

134,000

 

$

110,490

 

$

10

 

$

(776)

 

$

109,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified as:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

$

26,539

 

 

 

 

 

 

 

 

 

 

$

3,477

 

Short-term investments

 

 

 

 

 

 

 

 

 

 

 

107,461

 

 

 

 

 

 

 

 

 

 

 

106,247

 

Total

 

 

 

 

 

 

 

 

 

 

$

134,000

 

 

 

 

 

 

 

 

 

 

$

109,724

 

 

The Company invests in U.S. Treasuries, U.S. agency and high quality municipal bonds which mature at par and are all paying their coupons on schedule. Thus, the Company has determined there is currently no other than temporary impairment of its investments, and will continue to recognize unrealized losses in other comprehensive income. As of December 31, 2018, the Company has 16 investments in an unrealized loss position in its portfolio. During the years ended December 31, 2018 and 2017, the amount of gross realized gains and realized losses upon sales of investments were insignificant, and during the year ended December 31, 2016, sales of investments resulted in gross realized gains of $0.2 million and insignificant gross realized losses. Realized gains and losses are reported in interest and other (expense) income, net in the statements of operations and comprehensive loss. The following table shows the change in the net unrealized positions of the available-for-sale securities and reclassifications from accumulated other comprehensive loss upon the sale of those securities:

 

 

 

 

 

 

 

 

 

December 31,

 

 

2018

 

2017

 

 

(in thousands)

Balance at beginning of year

 

$

(766)

 

$

(725)

Net unrealized gains (losses) on available-for-sale securities, net of tax

 

 

171

 

 

(105)

Reclassifications of losses realized from sale of available-for-sale securities

 

 

43

 

 

64

Increase (decrease) in other comprehensive loss

 

 

214

 

 

(41)

Balance at end of year

 

$

(552)

 

$

(766)

 

 

 

 

 

 

 

 

During the years ended December 31, 2018, 2017 and 2016, the Company earned interest income of $1.8 million,  $1.2 million and $1.5 million, respectively, from its investment portfolio.

 

The following table summarizes the Company’s portfolio of available-for-sale securities by contractual maturity as of December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

Amortized
Cost

 

Fair
Value

 

 

 

(in thousands)

 

Less than one year

 

$

64,477

 

$

64,276

 

Greater than one year but less than five years

 

 

43,536

 

 

43,185

 

Total

 

$

108,013

 

$

107,461