Fair Value Measurement

6 Months Ended

Jun. 30, 2019

Note 2 - Fair Value Measurement

The following table summarizes the Company’s investments at June 30, 2019 and December 31, 2018 measured at fair value on a recurring basis (in thousands):

	June 30, 2019							December 31, 2018
			Gross							Gross
			Unrealized							Unrealized
			Gains			Recorded				Gains			Recorded
	Cost		(Losses)			Basis		Cost		(Losses)			Basis
Current:
Cash equivalents:
Money market funds	$	224	$	—		$	224	$	30	$	—		$	30
Total cash equivalents		224		—			224		30		—			30
Investments:
Corporate bonds		48,822		(126	)		48,696		20		—			20
U.S. treasuries		19,002		(50	)		18,952		347		—			347
U.S. government agency securities		8,913		248			9,161		50		(1	)		49
Mortgage backed securities		447		(4	)		443		—		—			—
Asset backed securities		19		—			19		—		—			—
Total current investments		77,203		68			77,271		417		(1	)		416
Long term:
Investments:
U.S. treasuries		—		—			—		794		(3	)		791
Mortgage backed securities		—		—			—		484		(13	)		471
Corporate bonds		—		—			—		422		(7	)		415
Asset backed securities		—		—			—		10		—			10
Total long term investments		—		—			—		1,710		(23	)		1,687
Restricted cash and investments ⁽¹⁾:
Corporate bonds		128,012		1,265			129,277		185,116		(3,739	)		181,377
Mortgage backed securities		71,839		192			72,031		89,426		(2,026	)		87,400
U.S. government agency securities		29,801		675			30,476		45,548		(908	)		44,640
U.S. treasuries		18,794		21			18,815		44,304		(283	)		44,021
Money market funds		16,614		—			16,614		419		—			419
Supranational bonds		4,767		34			4,801		4,765		(24	)		4,741
Mutual funds		2,550		—			2,550		1,093		—			1,093
Asset backed securities		126		1			127		75		(1	)		74
Municipal bonds		50		—			50		50		—			50
Total restricted cash and investments		272,553		2,188			274,741		370,796		(6,981	)		363,815
Total investments	$	349,980	$	2,256		$	352,236	$	372,953	$	(7,005	)	$	365,948

(1) Included in restricted cash and investments within the condensed consolidated balance sheet is restricted cash of $169.5 million and $104.5 million as of June 30, 2019 and December 31, 2018, 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 June 30, 2019 and December 31, 2018 measured at fair value on a recurring basis by fair value hierarchy level (in thousands):

	June 30, 2019								December 31, 2018
	Total								Total
	Recorded								Recorded
	Basis		Level 1		Level 2		Other ⁽¹⁾		Basis		Level 1		Level 2		Other ⁽¹⁾
Cash equivalents:
Money market funds	$	224	$	—	$	—	$	224	$	30	$	—	$	—	$	30
Investments:
Corporate bonds		48,696		—		48,696		—		435		—		435		—
U.S. treasuries		18,952		—		18,952		—		1,138		—		1,138		—
U.S. government agency securities		9,161		—		9,161		—		49		—		49		—
Mortgage backed securities		443		—		443		—		471		—		471		—
Asset backed securities		19		—		19		—		10		—		10		—
Restricted cash and investments:
Corporate bonds		129,277		—		129,277		—		181,377		—		181,377		—
Mortgage backed securities		72,031		—		72,031		—		87,400		—		87,400		—
U.S. government agency securities		30,476		—		30,476		—		44,640		—		44,640		—
U.S. treasuries		18,815		—		18,815		—		44,021		—		44,021		—
Money market funds		16,614		—		—		16,614		419		—		—		419
Supranational bonds		4,801		—		4,801		—		4,741		—		4,741		—
Mutual funds		2,550		2,550		—		—		1,093		1,093		—		—
Asset backed securities		127		—		127		—		74		—		74		—
Municipal bonds		50		—		50		—		50		—		50		—
Total investments	$	352,236	$	2,550	$	332,848	$	16,838	$	365,948	$	1,093	$	364,406	$	449

(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 June 30, 2019. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	June 30, 2019
(In thousands)	Less than 1 Year		Between 1 to 5 Years		Between 5 to 10 Years		After 10 Years		Total
Corporate bonds	$	9,162	$	143,773	$	24,886	$	152	$	177,973
U.S. government agency securities		4,002		7,921		27,714		—	$	39,637
U.S. treasuries		21,155		16,612		—		—	$	37,767
Money market funds		16,838		—		—		—	$	16,838
Supranational bonds		—		4,801		—		—	$	4,801
Asset backed securities		—		146		—		—	$	146
Municipal bonds		50		—		—		—	$	50
Total	$	51,207	$	173,253	$	52,600	$	152	$	277,212

The average contractual maturity of mortgage backed securities was 17 years as of June 30, 2019.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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