Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Fair Value Measurements

Fair Value Measurements

4.   Fair Value Measurements

The Company's financial assets and liabilities carried at fair value are comprised of investment assets that include money market and investments.  

The fair value accounting guidance requires that assets and liabilities be carried at fair value and classified in one of the following three categories:

Level I: Quoted prices in active markets for identical assets and liabilities that the Company has the ability to access.

Level II: Observable market-based inputs or unobservable inputs that are corroborated by market data, such as quoted prices, interest rates, and yield curves.

Level III: Inputs that are unobservable data points that are not corroborated by market data.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis

The following table represents the fair value hierarchy for the Company’s financial assets and financial liabilities measured at fair value on a recurring basis:

	December 31, 2022								December 31, 2021
	Level I		Level II		Level III		Total		Level I		Level II		Level III		Total
	(in thousands)
Financial Assets:
Money market deposits	$	283,358	$	—	$	—	$	283,358	$	10,041	$	—	$	—	$	10,041
Liquid demand deposits		125,596		—		—		125,596		—		—		—		—
U.S. Treasury securities		346,057		—		—		346,057		688,097		—		—		688,097
Corporate bonds and notes		—		23,529		—		23,529		—		52,337		—		52,337
Municipal securities		—		62,715		—		62,715		—		89,462		—		89,462
Total financial assets	$	755,011	$	86,244	$	—	$	841,255	$	698,138	$	141,799	$	—	$	839,937

Fair Value of Short-Term and Long-Term Debt:

As of December 31, 2022, the estimated fair value of the total principal outstanding and accrued interest of the Credit Line, which are not presented at fair value on the Consolidated Balance Sheets as of December 31, 2022 and 2021, was $80.4 million and $50.1 million, respectively, and were based upon observable Level 1 inputs, including the interest rate based on the 30-day SOFR average, plus 1.21% (see Note 10, Debt).

As of December 31, 2022, the estimated fair value of the Convertible Notes, which are not presented at fair value on the Consolidated Balance Sheets as of December 31, 2022 and 2021, was $358.4 million and $715.7 million, respectively, was based upon observable Level 2 inputs, including pricing information from recent trades of the Convertible Notes (see Note 10, Debt).