Fair Value Measurement

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022 measured at fair value on a recurring basis (in thousands):

	December 31, 2023							December 31, 2022
			Unrealized
			Gains			Recorded				Unrealized			Recorded
	Cost		(Losses)			Basis		Cost		Losses			Basis
Current:
Cash equivalents:
Money market funds	$	19,539	$	—		$	19,539	$	40,296	$	—		$	40,296
Total cash equivalents		19,539		—			19,539		40,296		—			40,296
Investments:
Corporate bonds		34,472		(3,159	)		31,313		38,489		(5,181	)		33,308
Asset backed securities		13,659		(187	)		13,472		13,709		(737	)		12,972
U.S. government agency securities		12,830		(408	)		12,422		7,369		(302	)		7,067
U.S. treasuries		12,448		(1,253	)		11,195		—		—			—
Mortgage backed securities		13,084		(2,454	)		10,630		16,135		(3,139	)		12,996
Emerging markets		2,003		(8	)		1,995		2,044		(62	)		1,982
Total current investments		88,496		(7,469	)		81,027		77,746		(9,421	)		68,325
Restricted cash and investments (1):
U.S. treasuries		109,020		(6,415	)		102,605		66,479		(9,222	)		57,257
Corporate bonds		82,481		(8,454	)		74,027		81,993		(11,296	)		70,697
Mortgage backed securities		42,077		(5,216	)		36,861		46,138		(6,045	)		40,093
U.S. government agency securities		16,863		(1,199	)		15,664		26,479		(2,156	)		24,323
Mutual funds		8,941		—			8,941		6,301		—			6,301
Asset backed securities		799		—			799		9		—			9
Money market funds		337		—			337		646		—			646
Emerging markets		200		2			202		—		—			—
Total restricted cash and investments		260,718		(21,282	)		239,436		228,045		(28,719	)		199,326
Total investments	$	368,753	$	(28,751	)	$	340,002	$	346,087	$	(38,140	)	$	307,947

(1) Included in restricted cash and investments within the consolidated balance sheets as of December 31, 2023 and 2022 is restricted cash of $3.6 million and $15.9 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, 2023 and 2022 measured at fair value on a recurring basis by fair value hierarchy level (in thousands):

	December 31, 2023										December 31, 2022
	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	$	19,539	$	—	$	—	$	—	$	19,539	$	40,296	$	—	$	—	$	—	$	40,296
Investments:
Corporate bonds		31,313		—		31,313		—		—		33,308		—		33,308		—		—
Asset backed securities		13,472		—		13,472		—		—		12,972		—		12,972		—		—
U.S. government    agency securities		12,422		—		12,422		—		—		7,067		—		7,067		—		—
U.S. treasuries		11,195		—		11,195		—		—		—		—		—		—		—
Mortgage backed    securities		10,630		—		10,630		—		—		12,996		—		12,996		—		—
Emerging markets		1,995		—		1,995		—		—		1,982		—		1,982		—		—
Restricted cash and investments:
U.S. treasuries		102,605		—		102,605		—		—		57,257		—		57,257		—		—
Corporate bonds		74,027		—		74,027		—		—		70,697		—		70,697		—		—
Mortgage backed    securities		36,861		—		36,861		—		—		40,093		—		40,093		—		—
U.S. government    agency securities		15,664		—		15,664		—		—		24,323		—		24,323		—		—
Mutual funds		8,941		8,941		—		—		—		6,301		6,301		—		—		—
Asset backed securities		799		—		799		—		—		9		—		9		—		—
Money market    funds		337		—		—		—		337		646		—		—		—		646
Emerging markets		202		—		202		—		—		—		—		—		—		—
Total investments	$	340,002	$	8,941	$	311,185	$	—	$	19,876	$	307,947	$	6,301	$	260,704	$	—	$	40,942

(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, 2023 and 2022. 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, 2023
(In thousands)	Less than 1 Year		Between 1 to 5 Years		Between 5 to 10 Years		After 10 Years		Total
U.S. treasuries	$	55,955	$	32,706	$	25,139	$	—	$	113,800
Corporate bonds		6,859		67,731		30,574		176		105,340
U.S. government agency securities		39		27,018		1,029		—		28,086
Money market funds		19,876		—		—		—		19,876
Asset backed securities		—		799		12,182		1,290		14,271
Emerging markets		1,995		—		202		—		2,197
Total	$	84,724	$	128,254	$	69,126	$	1,466	$	283,570
	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

The average contractual maturity of mortgage backed securities, which are excluded from the table above, was 23 years and 24 years as of December 31, 2023 and 2022, respectively.