Financial Instruments

3 Months Ended

Mar. 31, 2024

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:

	March 31, 2024								December 31, 2023
	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)	$	813,817	$	—	$	—	$	813,817	$	642,095	$	—	$	—	$	642,095
U.S. Treasury securities (1)		34,996		—		(531)		34,465		201,522		14		(1,118)		200,418
Municipal securities (1)		36,013		1		(1,358)		34,656		38,091		—		(1,627)		36,464
Total	$	884,826	$	1	$	(1,889)	$	882,938	$	881,708	$	14	$	(2,745)	$	878,977
Classified as:
Cash, cash equivalents and restricted cash (2)								813,817								642,095
Short-term investments								69,121								236,882
Total							$	882,938							$	878,977

(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 an allowance for expected credit losses of its investments was not necessary and will continue to recognize unrealized gains and losses in other comprehensive income (loss). During the three months ended March 31, 2024 and March 31, 2023, the Company did not sell any investments. The Company uses the specific investment identification method to calculate realized gains and losses and amounts reclassified out of other comprehensive income (loss) to net loss. As of March 31, 2024, the Company had 14 investments in an unrealized loss position in its portfolio. Gross unrealized losses were not material as of March 31, 2024. 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 issuer, and as such, the Company did not record a credit loss reserve as of March 31, 2024.

The following table presents debt securities available-for-sale that were in an unrealized loss position as of March 31, 2024, aggregated by major security type 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 March 31, 2024.

	Total
	Fair Value		Unrealized Loss
	(in thousands)
U.S. Treasury securities	$	34,465	$	(531)
Municipal securities		31,222		(1,358)
Total	$	65,687	$	(1,889)

The following table summarizes the Company’s portfolio of available-for-sale securities by contractual maturity as of March 31, 2024:

	March 31, 2024
	Amortized Cost		Fair Value
	(in thousands)
Less than or equal to one year	$	52,960	$	52,032
Greater than one year but less than five years		18,049		17,089
Total	$	71,009	$	69,121