Note 11 - Fair Value Measurements

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note 11 – 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 September 30, 2024 and December 31, 2023 for assets and liabilities measured at fair value on a recurring basis (in thousands):

	Fair Value Measurements Using
September 30, 2024	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	$	84,807	$	84,807	$	–	$	–
Restricted cash and cash equivalents		30,267		30,267		–		–
Marketable equity securities		187,755		187,755		–		–
Corporate debt securities		58,812		39,475		19,337		–
Asset–backed securities		16,646		–		16,186		460
U.S. Treasury securities		44,671		44,671		–		–
State and municipal securities		3,782		–		3,782		–
Total financial assets	$	426,740	$	386,975	$	39,305	$	460

	Fair Value Measurements Using
December 31, 2023	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	$	107,076	$	107,076	$	–	$	–
Restricted cash and cash equivalents		18,892		18,892		–		–
Marketable equity securities		137,896		137,896		–		–
Corporate debt securities		60,171		42,860		17,311		–
Asset–backed securities		17,659		–		17,210		449
U.S. Treasury securities		45,850		45,850		–		–
State and municipal securities		4,047		–		4,047		–
Total financial assets	$	391,591	$	352,574	$	38,568	$	449