XML 22 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Marketable Securities
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities MARKETABLE SECURITIES
ASC Topic 320, “Investments – Debt and Equity Securities,” requires that an enterprise classify all debt securities as either held-to-maturity, trading or available-for-sale. The Company classifies its securities as available-for-sale and therefore is required to adjust securities to fair value at each reporting date. All costs and both realized and unrealized gains and losses on securities are determined on a specific identification basis. The following is a summary of available-for-sale securities at:
($ in thousands) September 30, 2020December 31, 2019
Marketable Securities:Fair Value
Hierarchy		CostFair ValueCostFair Value
Certificates of deposit
with unrealized losses for less than 12 months$— $— $251 $250 
with unrealized gains1,799 1,806 1,799 1,806 
Total Certificates of depositLevel 11,799 1,806 2,050 2,056 
U.S. Treasury and agency notes
with unrealized losses for less than 12 months— — 6,485 6,479 
with unrealized gains5,347 5,360 14,413 14,434 
Total U.S. Treasury and agency notesLevel 25,347 5,360 20,898 20,913 
Corporate notes
with unrealized losses for less than 12 months1,113 1,112 1,004 1,002 
with unrealized gains3,912 3,920 13,082 13,106 
Total Corporate notesLevel 25,025 5,032 14,086 14,108 
Municipal notes
with unrealized gains1,999 2,001 1,999 2,007 
Total Municipal notesLevel 21,999 2,001 1,999 2,007 
$14,170 $14,199 $39,033 $39,084 

The Company adopted ASU No. 2016-13, "Financial Instruments — Credit Losses (Topic 326)" on January 1, 2020 prospectively. Under ASC Topic 326-30, the Company is now required to use an allowance approach when recognizing credit loss for available-for-sale debt securities, measured as the difference between the security's amortized cost basis and the amount expected to be collected over the security's lifetime. Under this approach, at each reporting date, the Company records impairment related to credit losses through earnings offset with an allowance for credit losses, or ACL. At September 30, 2020 the Company has not recorded any credit losses.
At September 30, 2020, the fair market value of marketable securities was $29,000 above their cost basis. The Company’s gross unrealized holding gains equaled $30,000 and gross unrealized holding losses equaled $1,000. As of September 30, 2020, the adjustment to accumulated other comprehensive loss reflected an improvement in market value of $22,000, including estimated taxes of $6,000.
The Company elected to exclude applicable accrued interest from both the fair value and the amortized cost basis of the available-for-sale debt securities, and separately present the accrued interest receivable balance per ASC Topic 326-30-50-3A. The accrued interest receivables balance totaled $107,000 as of September 30, 2020, and was included within the Other Assets line item of the Consolidated Balance Sheets. The Company elected not to measure an allowance for credit losses on accrued interest receivable as an allowance on possible uncollectible accrued interest is not warranted.
U.S. Treasury and agency notes
The unrealized losses on the Company's investments in U.S. Treasury and agency notes at December 31, 2019 were caused by relative changes in interest rates since the time of purchase. The contractual cash flows for these securities are guaranteed by U.S. government agencies. The unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. As of December 31, 2019, the Company did not intend to sell these securities and it is not more-likely-than-not that the Company would be required to sell these securities before recovery of their cost basis. Therefore, these investments did not require an ACL as of December 31, 2019.
Corporate notes
The contractual terms of those investments do not permit the issuers to settle the securities at a price less than the amortized cost basis of the investments. The unrealized losses on corporate notes are a function of changes in investment spreads and interest rate movements and not changes in credit quality. The Company expects to recover the entire amortized cost basis of these securities. As of September 30, 2020, the Company did not intend to sell these securities and it is not more-likely-than-not that the Company would be required to sell these securities before recovery of their cost basis. Therefore, these investments did not require an ACL as of September 30, 2020.
The following tables summarize the maturities, at par, of marketable securities as of:
September 30, 2020
($ in thousands)20202021Total
Certificates of deposit$1,799 $— $1,799 
U.S. Treasury and agency notes4,544 802 5,346 
Corporate notes3,050 1,950 5,000 
Municipal notes2,000 — 2,000 
$11,393 $2,752 $14,145 
 
December 31, 2019
($ in thousands)20202021Total
Certificates of deposit$2,049 $— $2,049 
U.S. Treasury and agency notes20,393 502 20,895 
Corporate notes13,685 400 14,085 
Municipal notes2,000 — 2,000 
$38,127 $902 $39,029 
The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s as of September 30, 2020.