Financial Instruments

12 Months Ended

Dec. 31, 2023

Financial Instruments

Financial Instruments

5.    Financial Instruments

The Company elected to invest a portion of its cash assets in conservative, income earning, and liquid investments. Cash, cash equivalents, restricted cash and investments, which are classified as available-for-sale securities, consisted of the following:

	December 31, 2023								December 31, 2022
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)		Estimated Fair Value		Amortized Cost		Gross Unrealized Gain		Gross Unrealized (Loss)		Estimated Fair Value
	(in thousands)
Cash, cash equivalents and restricted cash (2)		642,095		—		—		642,095		466,091		—		—		466,091
U.S. Treasury securities (1)		201,522		14		(1,118)		200,418		358,385		—		(12,328)		346,057
Corporate bonds and notes (1)		—		—		—		—		24,045		—		(516)		23,529
Municipal securities (1)		38,091		—		(1,627)		36,464		65,973		1		(3,259)		62,715
Total	$	881,708	$	14	$	(2,745)	$	878,977	$	914,494	$	1	$	(16,103)	$	898,392
Classified as:
Cash, cash equivalents and restricted cash (2)							$	642,095							$	466,091
Short-term investments								236,882								432,301
Total							$	878,977							$	898,392

(1)

Per the Company’s investment policy, all debt securities are classified as short-term investments irrespective of holding period.

(2) Cash equivalents includes liquid demand deposits, money market funds, and other liquid investments having an original maturity of less than three months.

The Company invests in U.S. Treasuries, U.S. agency and high quality municipal bonds which mature at par value and are all paying their coupons on schedule. The Company has therefore concluded there is currently no other than temporary impairment of its investments and will continue to recognize unrealized gains and losses in other comprehensive income (loss). The Company did not sell any investments in the year ending December 31, 2023. $248.5 million of investments were sold in the year ended December 31, 2022 resulting in a gross realized losses upon sales of investments of $0.9 million. The Company uses the specific investment identification method to calculate realized gains and losses and amounts reclassified out of other comprehensive income to net income. As of December 31, 2023, the Company had 19 investments in an unrealized loss position in its portfolio. Gross unrealized losses were not material as of December 31, 2023. As of December 31, 2022, gross unrealized losses were primarily due to declines in the value of fixed rate instruments as interest rates in the broader market increased, and were not indictive of a decline in the credit worthiness of the underlying issuers. Accordingly, the Company did not record a credit loss reserve as of December 31, 2022.

The following table presents debt securities available-for-sale that were in an unrealized loss position as of December 31, 2023, aggregated by major security type and length of time in a continuous loss position. There were no debt securities available-for-sale in an unrealized loss position for less than 12 months as of December 31, 2023.

		Total
		Fair Value		Unrealized Loss
	(in thousands)
U.S. Treasury securities		$	78,908	$	(1,118)
Corporate bonds and notes			—		—
Municipal securities			36,464		(1,627)
Total		$	115,372	$	(2,745)

The following table summarizes the Company’s portfolio of available-for-sale securities by contractual maturity as of December 31, 2023:

	December 31, 2023
	Amortized Cost		Fair Value
	(in thousands)
Less than or equal to one year	$	216,548	$	215,095
Greater than one year but less than five years		23,065		21,787
Total	$	239,613	$	236,882