We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. An entity is required to classify certain assets and liabilities measured at fair value based on the following fair value hierarchy that prioritizes the inputs used to measure fair value:

Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3– Unobservable inputs that are supported by little or no market activity, may be derived from internally developed methodologies based on management’s best estimate of fair value and that are significant to the fair value of the asset or liability.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect its placement within the fair value hierarchy. The following tables show, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis.


	June 30, 2025
	Level 1		Level 2		Level 3		Total
Assets:

Money market funds	$	6,884	$	77,001	$	—	$	83,885
Equity securities	—		11,941		—		11,941
Commingled fixed income securities	1,666		524		—		2,190
Government and related securities	2,377		12,786		—		15,163
Corporate debt securities	—		43,299		—		43,299
Mortgage-backed / asset-backed securities	—		90,366		—		90,366



Total assets	$	10,927	$	235,917	$	—	$	246,844


	December 31, 2024
	Level 1		Level 2		Level 3		Total
Assets:

Money market funds	$	6,435	$	140,125	$	—	$	146,560
Equity securities	—		12,518		—		12,518
Commingled fixed income securities	1,612		534		—		2,146
Government and related securities	2,334		13,410		—		15,744
Corporate debt securities	—		42,159		—		42,159
Mortgage-backed / asset-backed securities	—		98,464		—		98,464



Total assets	$	10,381	$	307,210	$	—	$	317,591

The valuation of investment securities is based on a market approach using inputs that are observable, or can be corroborated by observable data, in an active marketplace. The following information relates to our classification within the fair value hierarchy:

•Money Market Funds: Money market funds typically invest in government securities, certificates of deposit, commercial paper and other highly liquid, low risk securities. Money market funds are principally used for overnight deposits and are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange.

•Equity Securities: Equity securities are comprised of mutual funds investing in U.S. and foreign stocks. These mutual funds are classified as Level 2.

•Commingled Fixed Income Securities: Commingled fixed income securities are comprised of mutual funds that invest in a variety of fixed income securities, including securities of the U.S. government and its agencies, corporate debt, mortgage-backed securities and asset-backed securities. Fair value is based on the value of the underlying investments owned by each fund, minus its liabilities, divided by the number of shares outstanding, as reported by the fund manager. These mutual funds are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange.

•Government and Related Securities: Debt securities are classified as Level 1 when unadjusted quoted prices in active markets are available. Debt securities are classified as Level 2 where fair value is determined using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities.

•Corporate Debt Securities: Corporate debt securities are valued using recently executed comparable transactions, market price quotations or bond spreads for the same maturity as the security. These securities are classified as Level 2.

•Mortgage-Backed / Asset-Backed Securities: These securities are valued based on external pricing indices or external price/spread data. These securities are classified as Level 2.

Investment securities classified as available-for-sale are recorded at fair value. Changes in fair value due to market conditions are recorded in accumulated other comprehensive loss (AOCL), and changes in fair value due to credit conditions are recorded in earnings. There were no changes in fair value charged to earnings in the six months ended June 30, 2025 or 2024.


	June 30, 2025
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Government and related securities	$	21,384	$	1	$	(6,222)	$	15,163
Corporate debt securities	49,876		—		(6,577)		43,299
Commingled fixed income securities	1,860		—		(194)		1,666
Mortgage-backed / asset-backed securities	111,460		—		(21,094)		90,366
Total	$	184,580	$	1	$	(34,087)	$	150,494


	December 31, 2024
	Amortized cost		Gross unrealized losses		Estimated fair value
Government and related securities	$	21,432	$	(5,688)	$	15,744
Corporate debt securities	50,367		(8,208)		42,159
Commingled fixed income securities	1,835		(223)		1,612
Mortgage-backed / asset-backed securities	123,289		(24,825)		98,464
Total	$	196,923	$	(38,944)	$	157,979


	June 30, 2025				December 31, 2024
	Fair Value		Gross unrealized losses		Fair Value		Gross unrealized losses
Greater than 12 continuous months
Government and related securities	$	15,163	$	6,222	$	15,744	$	5,688
Corporate debt securities	43,299		6,577		39,845		8,206
Commingled fixed income securities	1,666		194		—		—
Mortgage-backed / asset-backed securities	90,366		21,094		98,464		24,825
Total	$	150,494	$	34,087	$	154,053	$	38,719

Less than 12 continuous months

Corporate debt securities	$	—	$	—	$	2,314	$	2
Commingled fixed income securities	—		—		1,612		223

Total	$	—	$	—	$	3,926	$	225

At June 30, 2025, substantially all securities in the investment portfolio were in an unrealized loss position. However, we have not recorded an allowance for credit loss or an impairment charge as we have the ability and intent to hold these securities until recovery of the unrealized losses or expect to receive the stated principal and interest at maturity.


	Amortized cost		Estimated fair value
Within 1 year	$	4,115	$	3,922
After 1 year through 5 years	21,035		18,947
After 5 years through 10 years	25,984		22,729
After 10 years	133,446		104,896
Total	$	184,580	$	150,494

Actual maturities may not coincide with scheduled maturities as certain securities contain early redemption features and/or allow for the prepayment of obligations.

Certain investment securities are classified as held-to-maturity and include certificates of deposits with maturities less than 90 days and highly-liquid government securities with maturities less than two years. Held-to-maturity securities at June 30, 2025 and December 31, 2024 totaled $104 million and $203 million, respectively.

We are exposed to the impact of changes in interest rates and foreign currency exchange rates. We may use derivative instruments to limit the effects on our financial results from changes in interest rates and currency exchange rates. We do not use derivatives for trading or speculative purposes. We did not enter into any derivative instruments during the six months ended June 30, 2025.

At June 30, 2024, we had outstanding interest rate swap agreements that effectively converted $200 million of variable rate debt to fixed rates. These swaps were designated as cash flow hedges. The swaps were recorded at fair value at the end of each reporting period with the change in fair value reflected in AOCL. For the three months ended June 30, 2024, the amount recognized in AOCL was a loss of $2 million and the amount reclassified from AOCL to earnings was a gain of $3 million. For the six months ended June 30, 2024, the amount recognized in AOCL was a loss of $4 million and the amount reclassified from AOCL to earnings was a gain of $5 million.

Our financial instruments include cash and cash equivalents, available-for-sale and held-to-maturity investment securities, accounts receivable, loan receivables, accounts payable and debt. The carrying value of cash and cash equivalents, held-to-maturity investment securities, accounts receivable, loans receivable, and accounts payable approximate fair value. The fair value of available-for-sale investment securities is presented above. The inputs used to estimate the fair value of debt included recently executed transactions and market price quotations (Level 2 inputs within the fair value hierarchy).