Fair Value Measurements

3 Months Ended

Mar. 31, 2026

Note 10—Fair Value Measurements

The Company’s current assets and current liabilities are financial instruments and most of these items (other than marketable securities, restricted marketable securities, inventories and supplies and the short-term portion of deferred compensation assets and liabilities) are recorded at cost in the Consolidated Balance Sheets. The estimated fair value of these financial instruments approximates their carrying value due to their short-term nature. The carrying value of the Company’s line of credit represents the outstanding amount of the borrowings, which approximates fair value. The Company’s financial assets that are measured at fair value on a recurring basis are its marketable securities, restricted marketable securities and deferred compensation funding. The recorded values of all of the financial instruments approximate their current fair values because of their nature, stated interest rates and respective maturity dates or durations.

The Company’s marketable securities and restricted marketable securities are held by the Company’s captive insurance company to satisfy capital requirements of the state regulator related to captive insurance companies. Restricted marketable securities are held by the Company’s captive insurance company as collateral for certain insurance coverages. Such securities are primarily comprised of municipal bonds, treasury notes, corporate bonds and other government bonds which are classified as available-for-sale and are reported at fair value. Unrealized gains and losses associated with these investments are included in “Unrealized (loss) gain on available-for-sale marketable securities, net of taxes” within the Consolidated Statements of Comprehensive Income. Marketable securities and restricted marketable securities are classified within Level 2 of the fair value hierarchy, as these securities are measured using 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. Such valuations are determined by a third-party pricing service. For the three months ended March 31, 2026 and 2025, the Company recorded unrealized losses, net of taxes of $0.4 million and gains, net of taxes of $0.5 million on marketable securities and restricted marketable securities, respectively.

For the three months ended March 31, 2026 and 2025, the Company received total proceeds of $1.6 million and less than $0.1 million, respectively, from sales of available-for-sale marketable securities. These sales resulted in realized losses of less than $0.1 million during the three months ended March 31, 2026 and 2025, respectively. Such losses were recorded in “Investment and other income, net” in the Consolidated Statements of Comprehensive Income. The basis for the sale of these securities was the specific identification of each security sold during the period.

As part of an acquisition in 2025, the Company paid consideration to the seller based on post-acquisition revenues. The Company recorded a liability for the expected future consideration within Other long-term liabilities on the Consolidated Balance Sheets. The fair value of this liability is measured using forecasted sales models (Level 3). The Company records gains and losses from this liability within “Selling, general and administrative expense” in the Consolidated Statements of Comprehensive Income related to the measurement of the liability at each reporting date. For the three months ended March 31, 2026 and 2025, the Company recorded less than $0.1 million of unrealized losses related to changes in valuation of this liability.

The investments under the deferred compensation plan are accounted for as trading securities and unrealized gains or losses are recorded within “Investment and other income, net” in the Consolidated Statements of Comprehensive Income. The fair values of these investments are determined based on quoted market prices (Level 1) or the net asset value (“NAV”) of underlying share investments (Level 2). For the three months ended March 31, 2026 and 2025, the Company recorded unrealized losses of $1.6 million and $1.4 million, respectively, related to trading securities still held at the respective reporting dates.

The following table summarizes the contractual maturities of debt securities held as of March 31, 2026 and December 31, 2025, which are classified within “Marketable securities, at fair value” and “Restricted marketable securities, at fair value” in the Consolidated Balance Sheets:


	Debt Securities — Available-for-Sale
Contractual maturity:	March 31, 2026		December 31, 2025
	(in thousands)
Marketable securities, at fair value
Maturing in one year or less	$	4,453	$	4,424
Maturing in second year through fifth year	9,228		10,850
Maturing in sixth year through tenth year	21,691		21,962
Maturing after ten years	7,070		5,538
Total marketable securities, at fair value	$	42,442	$	42,774
Restricted marketable securities, at fair value
Maturing in one year or less	5,331		4,635
Maturing in second year through fifth year	19,775		15,011
Maturing in sixth year through tenth year	9,758		9,653
Maturing after ten years	1,034		1,053
Total restricted marketable securities, at fair value	$	35,898	$	30,352
Total debt securities — available-for-sale	$	78,340	$	73,126

The following table shows the amortized cost, unrealized gains and losses, and estimated fair value of the Company’s debt securities as of March 31, 2026 and December 31, 2025:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Credit Impairment Losses1
March 31, 2026	(in thousands)
Type of security:
Marketable securities
Municipal bonds — taxable	$	4,146	$	6	$	(87)	$	4,065	$	—
Municipal bonds — non-taxable	39,658		51		(1,332)		38,377		—
Total marketable securities	$	43,804	$	57	$	(1,419)	$	42,442	$	—
Restricted marketable securities
U.S. treasury bonds	$	13,688	$	72	$	(38)	$	13,722	$	—
U.S. government agency bonds	1,222		2		—		1,224		—
International fixed income bonds	731		—		—		731		—
Corporate bonds	10,699		90		(24)		10,765		—
Municipal bonds — taxable	9,260		201		(5)		9,456		—
Total restricted marketable securities	$	35,600	$	365	$	(67)	$	35,898	$	—
Total debt securities — available-for-sale	$	79,404	$	422	$	(1,486)	$	78,340	$	—

December 31, 2025
Type of security:
Marketable securities
Municipal bonds — taxable	$	4,115	$	1	$	(70)	$	4,046	$	—
Municipal bonds — non-taxable	39,827		124		(1,223)		38,728		—
Total marketable securities	$	43,942	$	125	$	(1,293)	$	42,774	$	—
Restricted marketable securities
U.S. treasury bonds	$	9,904	$	148	$	(15)	$	10,037	$	—
U.S. government agency bonds	1,210		5		—		1,215		—
International fixed income bonds	733		3		—		736		—
Corporate bonds	8,682		177		(1)		8,858		—
Municipal bonds — taxable	9,222		284		—		9,506		—
Total restricted marketable securities	$	29,751	$	617	$	(16)	$	30,352	$	—
Total debt securities — available-for-sale	$	73,693	$	742	$	(1,309)	$	73,126	$	—

1.The Company performs a credit impairment loss assessment quarterly on an individual security basis. As of March 31, 2026 and December 31, 2025, no allowance for credit loss has been recognized as the issuers of these securities have not established a cause for default and various rating agencies have reaffirmed each security’s investment grade status. The fair value of these securities have fluctuated since the purchase date as market interest rates fluctuate. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell before the recovery of the securities’ amortized cost basis.

The following tables provide fair value measurement information for the Company’s financial assets, including marketable securities, restricted marketable securities and deferred compensation plan investments as of March 31, 2026 and December 31, 2025:


	As of March 31, 2026
					Fair Value Measurement Using:
(amounts in thousands)	Carrying Amount		Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Marketable securities
Municipal bonds — taxable	$	4,065	$	4,065	$	—	$	4,065	$	—
Municipal bonds — non-taxable	38,377		38,377		—		38,377		—
Total marketable securities	$	42,442	$	42,442	$	—	$	42,442	$	—

Restricted marketable securities
U.S. treasury bonds	$	13,722	$	13,722	$	—	$	13,722	$	—
U.S. government agency bonds	1,224		1,224		—		1,224		—
International fixed income bonds	731		731		—		731		—
Corporate bonds	10,765		10,765		—		10,765		—
Municipal bonds — taxable	9,456		9,456		—		9,456		—
Total restricted marketable securities	$	35,898	$	35,898	$	—	$	35,898	$	—

Deferred compensation plan
Money market1	$	1,830	$	1,830	$	—	$	1,830	$	—
Commodities	424		424		424		—		—
Fixed income	5,224		5,224		5,224		—		—
International	6,172		6,172		6,172		—		—
Large cap blend	8,794		8,794		8,794		—		—
Large cap growth	17,400		17,400		17,400		—		—
Large cap value	7,267		7,267		7,267		—		—
Mid cap blend	4,053		4,053		4,053		—		—
Real estate	391		391		391		—		—
Small cap blend	3,462		3,462		3,462		—		—
Total deferred compensation plan2	$	55,017	$	55,017	$	53,187	$	1,830	$	—


	As of December 31, 2025
					Fair Value Measurement Using:
(amounts in thousands)	Carrying Amount		Total Fair Value		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Marketable securities
Municipal bonds — taxable	$	4,046	$	4,046	$	—	$	4,046	$	—
Municipal bonds — non-taxable	38,728		38,728		—		38,728		—
Total marketable securities	$	42,774	$	42,774	$	—	$	42,774	$	—

Restricted marketable securities
U.S. treasury bonds	$	10,037	$	10,037	$	—	$	10,037	$	—
U.S. government agency bonds	1,215		1,215		—		1,215		—
International fixed income bonds	736		736		—		736		—
Corporate bonds	8,858		8,858		—		8,858		—
Municipal bonds — taxable	9,506		9,506		—		9,506		—

Total restricted marketable securities	$	30,352	$	30,352	$	—	$	30,352	$	—

Deferred compensation plan
Money market1	$	1,965	$	1,965	$	—	$	1,965	$	—
Commodities	361		361		361		—		—
Fixed income	5,190		5,190		5,190		—		—
International	6,320		6,320		6,320		—		—
Large cap blend	8,513		8,513		8,513		—		—
Large cap growth	20,425		20,425		20,425		—		—
Large cap value	7,485		7,485		7,485		—		—
Mid cap blend	4,059		4,059		4,059		—		—
Real estate	389		389		389		—		—
Small cap blend	3,438		3,438		3,438		—		—
Deferred compensation plan2	$	58,145	$	58,145	$	56,180	$	1,965	$	—

1.The fair value of the money market is based on the NAV of the shares held by the plan at the end of the period. The money market fund includes short-term United States dollar denominated money market instruments and the NAV is determined by the custodian of the fund. The money market fund can be redeemed at its NAV at the measurement date as there are no significant restrictions on the ability to sell this investment.

2.The deferred compensation plan carrying amounts and total fair value amounts as of March 31, 2026 and December 31, 2025 are inclusive of $2.0 million and $2.2 million of holdings expected to be paid to former employees within the next twelve months which were recorded under “Prepaid expenses and other current assets” in the Company’s Consolidated Balance Sheets.