Financial Instruments

9 Months Ended

Sep. 30, 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:

	September 30, 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)	$	892,844	$	—	$	—	$	892,844	$	642,095	$	—	$	—	$	642,095
U.S. Treasury securities (1)		—		—		—		—		201,522		14		(1,118)		200,418
Municipal securities (1)		30,034		—		(544)		29,490		38,091		—		(1,627)		36,464
Total	$	922,878	$	—	$	(544)	$	922,334	$	881,708	$	14	$	(2,745)	$	878,977
Classified as:
Cash, cash equivalents and restricted cash (2)								892,844								642,095
Short-term investments								29,490								236,882
Total							$	922,334							$	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, and money market funds.

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 nine months ended September 30, 2024, the Company sold one investment,

which resulted in an immaterial gain. 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 September 30, 2024, the Company had 9 investments in an unrealized loss position in its portfolio. Gross unrealized losses were not material as of September 30, 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 September 30, 2024.

The following table presents debt securities available-for-sale that were in an unrealized loss position as of September 30, 2024, aggregated by major security type in a continuous loss position.

		Total
		Fair Value		Unrealized Loss
	(in thousands)
U.S. Treasury securities		$	—	$	—
Municipal securities			27,990		(544)
Total		$	27,990	$	(544)

The following table summarizes the Company’s portfolio of available-for-sale securities by contractual maturity as of September 30, 2024:

	September 30, 2024
	Amortized Cost		Fair Value
	(in thousands)
Less than or equal to one year	$	29,034	$	28,522
Greater than one year but less than five years		1,000		968
Total	$	30,034	$	29,490