INVESTMENTS

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS

INVESTMENTS

Equity Investments without Readily Determinable Fair Values

Our strategic equity investments without readily determinable fair values include MLSI, a transportation management systems company, and Fleet Defender, Inc., a platform cybersecurity company for fleet owners. MLSI is developing a cloud-based transportation management system using MLSI's SaaS technology which we have agreed to license. These investments are being accounted for under ASC 321 using the measurement alternative, and are recorded in other noncurrent assets on the consolidated balance sheets. We record changes in the values of these investments based on events that occur that would indicate the values have changed, in gain or loss on investments in equity securities on the consolidated statements of income. As of December 31, 2022 and 2021, the value of our investment in MLSI was $86.8 million and $38.2 million, respectively, and the value of our investment in Fleet Defender, Inc. was $250 thousand as of December 31, 2022.

The following table summarizes the activity related to our equity investments without readily determinable fair values during the periods presented.

	Years Ended December 31,
	2022		2021		2020
Investment in equity securities	$	20,250	$	5,000	$	5,000
Upward adjustments (1)	28,638		28,151		—

(1) During 2022 and 2021, investments by third-parties resulted in the remeasurements of our investment in MLSI. Our updated investment values were based upon the prices paid by third parties.

As of December 31, 2022, cumulative upward adjustments on our equity securities without readily determinable fair values totaled $56.8 million.

Equity Investments with Readily Determinable Fair Values

We own strategic minority equity investments in autonomous technology companies, which are being accounted for under ASC 321 and are recorded in other noncurrent assets on the consolidated balance sheets. We record changes in the value of these investments, based on the share prices reported by Nasdaq, in gain or loss on investments in equity securities on the consolidated statements of income. As of December 31, 2022 and 2021, the value of these investments were $0.7 million and $17.2 million, respectively. We recognized a net unrealized loss of $16.4 million and a net unrealized gain of $12.1 million on these investments for the years ended December 31, 2022 and 2021, respectively. For additional information regarding the fair value of these equity investments, see Note 6 – Fair Value.