Investments in Marketable Securities

3 Months Ended

Jun. 30, 2019

Note 2 – Investments in Marketable Securities

Investments in marketable securities consist of debt securities and equity investments. We classify all of our debt securities as available-for-sale. All equity investments are recorded at fair value with changes in fair value included in Investment and other income, net within our Consolidated Statements of Income.

Investments in marketable securities consisted of the following:

	June 30, 2019
	Amortized		Unrealized		Unrealized			Fair
	cost		gains		losses			value
Available-for-sale debt securities:
U.S. government and agency obligations	$	194	$	6	$	(1	)	$	199
Municipal debt securities		9		2		-			11
Certificates of deposit		325		-		-			325
Commercial paper		100		-		-			100
Corporate debt securities		163		8		(1	)		170
Mortgage-backed securities:
U.S. government agency		33		1		-			34
Non-agency residential		1		-		-			1
Non-agency commercial		39		1		-			40
Asset-backed securities		65		1		-			66
Total available-for-sale debt securities	$	929	$	19	$	(2	)	$	946
Equity investments								$	2,350
Total investments in marketable securities								$	3,296

	March 31, 2019
	Amortized		Unrealized		Unrealized			Fair
	cost		gains		losses			value
Available-for-sale debt securities:
U.S. government and agency obligations	$	213	$	2	$	(3	)	$	212
Municipal debt securities		9		2		-			11
Certificates of deposit		50		-		-			50
Commercial paper		70		-		-			70
Corporate debt securities		160		3		(1	)		162
Mortgage-backed securities:
U.S. government agency		35		-		-			35
Non-agency residential		1		-		-			1
Non-agency commercial		39		-		-			39
Asset-backed securities		52		1		-			53
Total available-for-sale debt securities	$	629	$	8	$	(4	)	$	633
Equity investments									2,275
Total investments in marketable securities								$	2,908

A portion of our equity investments are investments in funds that are privately placed and managed by an open-end investment management company (the “Trust”). If we elect to redeem shares, the Trust will normally redeem all shares for cash, but may, in unusual circumstances, redeem amounts exceeding the lesser of $250 thousand or 1 percent of the Trust’s asset value by payment in kind of securities held by the respective fund during any 90-day period.

We also invest in actively traded open-end mutual funds. Redemptions are subject to normal terms and conditions as described in each fund’s prospectus.

Note 2 – Investments in Marketable Securities (Continued)

Unrealized Losses on Securities

Available-for-sale debt securities in a continuous loss position for less than twelve months and greater than twelve months were not significant as of June 30, 2019 and March 31, 2019.

Gains and Losses on Securities

The following table represents gains and losses on our investments in marketable securities presented in our Consolidated Statements of Income:

	Three Months Ended
	June 30,
	2019		2018
Equity investments:
Unrealized gains (losses) recognized	$	55	$	(25	)
Realized gains (losses) on sales	$	2	$	-

Contractual Maturities

The amortized cost and fair value, by contractual maturity of available-for-sale debt securities are summarized in the following table. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.

	June 30, 2019
	Amortized Cost		Fair Value
Available-for-sale debt securities:
Due within 1 year	$	463	$	463
Due after 1 year through 5 years		114		116
Due after 5 years through 10 years		139		145
Due after 10 years		75		81
Mortgage-backed and asset-backed securities¹		138		141
Total	$	929	$	946

¹	Mortgage-backed and asset-backed securities are shown separately from other maturity groupings as these securities have multiple maturity dates.