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Fair Value Measurement
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
Assets and liabilities measured at fair value on a recurring basis consist of the following as of December 31, 2021 (in thousands):
  Fair Value Measurements at Reporting Date Using
 December 31,
2021
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:    
Money market funds$4,134 $4,134 $— $— 
Marketable securities:
Tax-exempt municipal securities18,817 18,817 — 
Corporate debt securities11,061 11,061 — 
Total assets at fair value on a recurring basis$34,012 $4,134 $29,878 $— 
Liabilities:
Deferred payments$658 $— $— $658 
Assets and liabilities measured at fair value on a recurring basis consist of the following as of December 31, 2020 (in thousands):
  Fair Value Measurements at Reporting Date Using
 December 31,
2020
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:    
Money market funds$2,841 $2,841 $— $— 
Marketable securities:
Tax-exempt municipal securities20,289 — 20,289 — 
Corporate debt securities17,538 — 17,538 — 
Total assets at fair value on a recurring basis$40,668 $2,841 $37,827 $— 
Liabilities:
Deferred payments$1,658 $— $— $1,658 
The Company measures the above items on a recurring basis at fair value as follows:
Money market funds — Classified in Level 1 is excess cash the Company holds in both taxable and tax-exempt money market funds, which are included in cash and cash equivalents in the accompanying consolidated balance sheets. The Company records any net unrealized gains and losses for changes in fair value as a component of accumulated other comprehensive income in stockholders’ equity. The Company’s cash and cash equivalents held at December 31, 2020 and 2021, approximate fair value and are not disclosed in the above tables because of the short-term nature of the financial instruments.
Marketable securities – Classified in Level 2 and valued using readily available pricing sources for comparable instruments utilizing observable inputs from active markets. The Company does not hold securities in inactive markets.
Deferred payments — The Company acquired certain assets and entered into deferred payment arrangements with the sellers in transactions that occurred in 2011. The deferred payments are classified within Level 3 as there is no liquid market for similarly priced instruments and are valued using discounted cash flow models that encompass significant unobservable inputs. The assumptions used to prepare the discounted cash flows include estimates for interest rates, enrollment growth, retention rates, and pricing strategies. These assumptions are subject to change as the underlying data sources evolve and the programs mature. The short-term portion of deferred payments was $0.7 million as of December 31, 2021 and is included in accounts payable and accrued expense.
The Company did not change its valuation techniques associated with recurring fair value measurements from prior periods and did not transfer assets or liabilities between levels of the fair value hierarchy during the years ended December 31, 2020 or 2021.
Changes in the fair value of the Company’s Level 3 liabilities during the years ended December 31, 2020 and 2021 are as follows (in thousands):
 December 31, 2020December 31, 2021
Balance as of the beginning of period$3,257 $1,658 
Amounts paid(1,628)(1,470)
Other adjustments to fair value29 470 
Balance at end of period$1,658 $658