Fair Value Measurement

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurement

Note 2 - Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

All of our financial instruments are recognized in our consolidated balance sheets. Carrying values approximate fair value of most financial assets and liabilities. Investments and restricted cash and investments are recorded at market value. The interest rates on our investments approximate current market rates for these types of investments.

In determining the fair value of our financial assets, the Company predominately uses the market approach. In determining the fair value of all its corporate bonds, mortgage backed securities, U.S. treasuries, U.S. government agency securities, mutual funds, money market funds, asset backed securities, and emerging markets, the Company utilizes non-binding quotes provided by our investment brokers.

Factors used in determining the fair value of our financial assets and liabilities are summarized into three levels as established in the fair value hierarchy framework. The three levels of the fair value hierarchy are described below.

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs to the valuation methodology include:

•Quoted prices for similar assets or liabilities in active markets;

•Quoted prices for identical or similar assets or liabilities in inactive markets;

•Inputs other than quoted prices that are observable for the asset or liability;

•Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

In determining the fair value measurement of our financial assets, the fair value measurement level within the hierarchy is based on the lowest level input and is applied to each financial asset. Valuation techniques are used to maximize the use of observable inputs and minimize the use of unobservable inputs.

The following table summarizes the Company’s investments at December 31, 2022 and 2021 measured at fair value on a recurring basis (in thousands):

	December 31, 2022							December 31, 2021
			Gross							Gross
			Unrealized							Unrealized
			Gains			Recorded				Gains			Recorded
	Cost		(Losses)			Basis		Cost		(Losses)			Basis
Current:
Cash equivalents:
Money market funds	$	40,296	$	—		$	40,296	$	13,384	$	—		$	13,384
Total cash equivalents		40,296		—			40,296		13,384		—			13,384
Investments:
Corporate bonds		38,489		(5,181	)		33,308		41,954		(136	)		41,818
Mortgage backed securities		16,135		(3,139	)		12,996		18,089		(440	)		17,649
Asset backed securities		13,709		(737	)		12,972		29,533		(38	)		29,495
U.S. government agency securities		7,369		(302	)		7,067		7,383		418			7,801
Emerging markets		2,044		(62	)		1,982		—		—			—
Total current investments		77,746		(9,421	)		68,325		96,959		(196	)		96,763
Restricted cash and investments (1):
Corporate bonds		81,993		(11,296	)		70,697		117,700		(17	)		117,683
U.S. treasuries		66,479		(9,222	)		57,257		67,614		(342	)		67,272
Mortgage backed securities		46,138		(6,045	)		40,093		64,217		764			64,981
U.S. government agency securities		26,479		(2,156	)		24,323		32,898		1,281			34,179
Mutual funds		6,301		—			6,301		6,273		—			6,273
Money market funds		646		—			646		528		—			528
Asset backed securities		9		—			9		107		1			108
Total restricted cash and investments		228,045		(28,719	)		199,326		289,337		1,687			291,024
Total investments	$	346,087	$	(38,140	)	$	307,947	$	399,680	$	1,491		$	401,171

(1) Included in restricted cash and investments within the consolidated balance sheets as of December 31, 2022 and 2021 is restricted cash of $15.9 million and $9.2 million, respectively, which is excluded from the table above. Restricted cash and investments are classified as current and noncurrent on the balance sheet based on the nature of the restriction.

The following table summarizes the Company's investments at December 31, 2022 and 2021 measured at fair value on a recurring basis by fair value hierarchy level (in thousands):

	December 31, 2022										December 31, 2021
	Total										Total
	Recorded										Recorded
	Basis		Level 1		Level 2		Level 3		Other (1)		Basis		Level 1		Level 2		Level 3		Other (1)
Cash equivalents:
Money market    funds	$	40,296	$	—	$	—	$	—	$	40,296	$	13,384	$	—	$	—	$	—	$	13,384
Investments:
Corporate bonds		33,308		—		33,308		—		—		41,818		—		41,818		—		—
Mortgage backed    securities		12,996		—		12,996		—		—		17,649		—		17,649		—		—
Asset backed securities		12,972		—		12,972		—		—		29,495		—		29,495		—		—
U.S. government    agency securities		7,067		—		7,067		—		—		7,801		—		7,801		—		—
Emerging markets		1,982		—		1,982		—		—		—		—		—		—		—
Restricted cash and investments:
Corporate bonds		70,697		—		70,697		—		—		117,683		—		117,683		—		—
U.S. treasuries		57,257		—		57,257		—		—		67,272		—		67,272		—		—
Mortgage backed    securities		40,093		—		40,093		—		—		64,981		—		64,981		—		—
U.S. government    agency securities		24,323		—		24,323		—		—		34,179		—		34,179		—		—
Mutual funds		6,301		6,301		—		—		—		6,273		6,273		—		—		—
Money market    funds		646		—		—		—		646		528		—		—		—		528
Asset backed securities		9		—		9		—		—		108		—		108		—		—
Total investments	$	307,947	$	6,301	$	260,704	$	—	$	40,942	$	401,171	$	6,273	$	380,986	$	—	$	13,912

(1) Investments in money market funds measured at fair value using the net asset value per share practical expedient are not subject to hierarchy level classification disclosure. The Company invests in money market funds that seek to maintain a stable net asset value. These investments include commingled funds that comprise high-quality short-term securities representing liquid debt and monetary instruments where the redemption value is likely to be the fair value. Redemption is permitted daily without written notice.

The following table summarizes the contractual maturities of the Company’s available for sale securities at December 31, 2022 and 2021. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. The table also includes money market funds, which are classified as cash and cash equivalents on the Company’s consolidated balance sheets.

	December 31, 2022
(In thousands)	Less than 1 Year		Between 1 to 5 Years		Between 5 to 10 Years		After 10 Years		Total
Corporate bonds	$	646	$	50,439	$	52,920	$	—	$	104,005
U.S. treasuries		440		3,405		53,412		—		57,257
Money market funds		40,539		—		—		—		40,539
U.S. government agency securities		3,943		24,025		3,422		—		31,390
Asset backed securities		—		9		2,113		10,859		12,981
Emerging markets		—		1,982		—		—		1,982
Total	$	45,568	$	79,860	$	111,867	$	10,859	$	248,154
	December 31, 2021
(In thousands)	Less than 1 Year		Between 1 to 5 Years		Between 5 to 10 Years		After 10 Years		Total
Corporate bonds	$	24,601	$	35,570	$	99,180	$	150	$	159,501
U.S. treasuries		953		4,295		62,024		—		67,272
U.S. government agency securities		—		25,171		16,809		—		41,980
Asset backed securities		—		108		2,200		27,295		29,603
Money market funds		13,657		—		—		—		13,657
Total	$	39,211	$	65,144	$	180,213	$	27,445	$	312,013

The average contractual maturity of mortgage backed securities, which are excluded from the table above, was 24 years and 23 years as of December 31, 2022 and 2021, respectively.