XML 26 R14.htm IDEA: XBRL DOCUMENT v3.23.2
Fair Value Measurement
6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
Assets measured at fair value on a recurring basis consist of the following as of June 30, 2023 (in thousands):
Fair Value Measurements at Reporting Date Using
June 30, 2023Quoted 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$62,951 $62,951 $— $— 
U.S. treasury bills39,776 39,776 — — 
Available-for-sale securities:
Tax-exempt municipal securities14,471 — 14,471 — 
Corporate debt securities3,053 — 3,053 — 
Total assets at fair value on a recurring basis$120,251 $102,727 $17,524 $— 
Assets and liabilities measured at fair value on a recurring basis consist of the following as of December 31, 2022 (in thousands):
Fair Value Measurements at Reporting Date Using
December 31, 2022Quoted 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$217 $217 $— $— 
Available-for-sale securities:
Tax-exempt municipal securities15,347 — 15,347 — 
Corporate debt securities6,932 — 6,932 — 
Total assets at fair value on a recurring basis$22,496 $217 $22,279 $— 
The Company measures the above items on a recurring basis at fair value as follows:
Money market funds and U.S. treasury bills – Classified in Level 1 is excess cash the Company holds in money market funds and U.S. treasury bills, which are included in cash and cash equivalents in the accompanying unaudited condensed 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 (loss) in stockholders’ equity. The Company’s cash and cash equivalents and held-to-maturity securities held at December 31, 2022 and June 30, 2023 approximate fair value and are not disclosed in the above tables because of the short-term nature of the financial instruments.
Available-for-sale 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.
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 six months ended June 30, 2022 and 2023.
The Company acquired certain assets and entered into deferred payment arrangements with the sellers in transactions that occurred in 2011. The deferred payments were classified within Level 3 as there was no liquid market for similarly priced instruments and were valued using discounted cash flow models that encompassed significant unobservable inputs. The assumptions used to prepare the discounted cash flows included estimates for interest rates, enrollment growth, retention rates, and pricing strategies. The final payment related to the deferred payment arrangements was made in the first quarter of 2022.
Changes in the fair value of the Company’s Level 3 liabilities during the six months ended June 30, 2022 are as follows (in thousands):
As of June 30, 2022
Balance as of the beginning of period$658 
Amounts paid(658)
Other adjustments to fair value— 
Balance at end of period$—