Note 10 - Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note 10 – Fair Value Measurements

The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs that may be used to measure fair value:

Level 1 – The valuation is based on quoted prices in active markets for identical instruments.

Level 2 – The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model–based valuation techniques for which all significant assumptions are observable in the market.

Level 3 – The valuation is based on unobservable inputs that are supported by minimal or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar techniques that incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument, or valuations that require significant management judgment or estimation.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

The following table summarizes fair value measurements by level at March 31, 2020 and December 31, 2019 for assets and liabilities measured at fair value on a recurring basis (in thousands):

	Fair Value Measurements Using
March 31, 2020	Fair Value		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	69,492	$	69,492	$	–	$	–
Restricted cash and cash equivalents		14,688		14,688		–		–
Marketable equity securities		92,061		92,061		–		–
Corporate debt securities		67,151		47,434		19,717		–
Mortgage–backed securities		53,465		–		53,465		–
U.S. Treasury securities		14,130		14,130		–		–
State and municipal securities		13,065		1,974		11,091		–
Total financial assets	$	324,052	$	239,779	$	84,273	$	–

	Fair Value Measurements Using
December 31, 2019	Fair Value		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	50,334	$	50,334	$	–	$	–
Restricted cash and cash equivalents		10,676		10,676		–		–
Marketable equity securities		152,453		152,453		–		–
Corporate debt securities		65,653		48,584		17,069		–
Asset - backed securities		55,185		–		55,185		–
U.S. Treasury securities		13,410		13,410		–		–
State and municipal securities		13,158		1,975		11,183		–
Total financial assets	$	360,869	$	277,432	$	83,437	$	–