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Fair Value of Financial Instruments | 6 Months Ended
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Jun. 30, 2023
Fair Value of Financial Instruments [Abstract] |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying value of our cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate fair value because of their short-term nature. Our held-to-maturity investments are comprised of U.S. Treasury securities and a corporate debt security, which are held at amortized cost. We also have an investment in a convertible note receivable which is held at fair value. Additionally, we maintain a deferred compensation plan with related assets held in a rabbi trust. The following tables show our cash, cash equivalents, and debt investments by significant investment category as of June 30, 2023 and December 31, 2022:
| June 30, 2023
| Adjusted cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  | Cash and Cash Equivalents |  | Current Investments |  | Long-term Investments
Cash | $ | 68,473 |  | $ | - |  | $ | - |  | $ | 68,473 |  | $ | 68,473 |  | $ | - |  | $ | -
Level 1(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | 360,901 |  |  | - |  |  | - |  |  | 360,901 |  |  | 360,901 |  |  | - |  |  | -
Time deposits |  | 75,492 |  |  | - |  |  | - |  |  | 75,492 |  |  | 75,492 |  |  | - |  |  | -
U.S. Treasury securities |  | 1,218,648 |  |  | 265 |  |  | 11,461 |  |  | 1,207,452 |  |  | - |  |  | 850,443 |  |  | 368,205
Subtotal |  | 1,655,042 |  |  | 265 |  |  | 11,461 |  |  | 1,643,846 |  |  | 436,393 |  |  | 850,443 |  |  | 368,205
Level 3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt security(2) |  | 17,700 |  |  | - |  |  | 461 |  |  | 17,239 |  |  | - |  |  | 699 |  |  | 17,001
Note receivable(3) |  | 4,860 |  |  | 284 |  |  | - |  |  | 5,144 |  |  | - |  |  | - |  |  | 5,144
Subtotal |  | 22,560 |  |  | 284 |  |  | 461 |  |  | 22,383 |  |  | - |  |  | 699 |  |  | 22,145
Total | $ | 1,746,075 |  | $ | 549 |  | $ | 11,922 |  | $ | 1,734,702 |  | $ | 504,866 |  | $ | 851,142 |  | $ | 390,350
| December 31, 2022
| Adjusted cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  | Cash and Cash Equivalents |  | Current Investments |  | Long-term Investments
Cash | $ | 75,829 |  | $ | - |  | $ | - |  | $ | 75,829 |  | $ | 75,829 |  | $ | - |  | $ | -
Level 1(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | 232,477 |  |  | - |  |  | - |  |  | 232,477 |  |  | 232,477 |  |  | - |  |  | -
Time deposits |  | 75,694 |  |  | - |  |  | - |  |  | 75,694 |  |  | 75,694 |  |  | - |  |  | -
U.S. Treasury securities |  | 847,354 |  |  | 63 |  |  | 14,355 |  |  | 833,062 |  |  | - |  |  | 515,136 |  |  | 332,218
Subtotal |  | 1,155,525 |  |  | 63 |  |  | 14,355 |  |  | 1,141,233 |  |  | 308,171 |  |  | 515,136 |  |  | 332,218
Level 3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt security(2) |  | 17,900 |  |  | - |  |  | 700 |  |  | 17,200 |  |  | - |  |  | - |  |  | 17,900
Note receivable(3) |  | 4,860 |  |  | 222 |  |  | - |  |  | 5,082 |  |  | - |  |  | - |  |  | 5,082
Subtotal |  | 22,760 |  |  | 222 |  |  | 700 |  |  | 22,282 |  |  | - |  |  | - |  |  | 22,982
Total | $ | 1,254,114 |  | $ | 285 |  | $ | 15,055 |  | $ | 1,239,344 |  | $ | 384,000 |  | $ | 515,136 |  | $ | 355,200
(1) Level 1: Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. (2) The fair value of the corporate debt security is measured using Level 3 (unobservable) inputs. We determined the fair value for the corporate debt security using an internally-developed valuation model and unobservable inputs include credit and liquidity spreads and effective maturity. (3) We have elected to measure our investment in a convertible note receivable of a private company at fair value under the fair value option. The fair value of the note receivable is measured using Level 3 (unobservable) inputs. We determined the fair value for the note receivable using an internally-developed valuation model and unobservable inputs include estimates of the equity value of the underlying business and the timing and probability of future financing events. Rabbi Trust We have elected to fund certain deferred compensation plan obligations through a rabbi trust, the assets of which are designated as trading securities. The rabbi trust is subject to creditor claims in the event of insolvency, but the assets held in the rabbi trust are not available for general corporate purposes. Amounts in the rabbi trust are invested in mutual funds, consistent with the investment choices selected by participants in their Deferred Plan accounts, which are designated as trading securities, carried at fair value and are included in other assets on the condensed consolidated balance sheets. We record trading gains and losses, along with the offsetting amount related to the increase or decrease in deferred compensation to reflect our exposure to liabilities for payment under the deferred plan in general and administrative expenses on the condensed consolidated statements of income and comprehensive income. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets recognized or disclosed at fair value on the condensed consolidated financial statements on a nonrecurring basis include items such as leasehold improvements, property and equipment, certain long-term investments, operating lease assets, other assets, and goodwill. These assets are measured at fair value whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or if there has been an observable price change of a non-marketable equity security. The following table summarizes our restaurant and office assets measured at fair value by hierarchy level on a nonrecurring basis:
|  | Carrying Value
|  | June 30,
| Level | 2023 |  | 2022
Leasehold improvements, property and equipment, net | 3 | $ | 1,290 |  | $ | 415
Operating lease assets | 3 |  | 4,693 |  |  | 477
Total |  | $ | 5,983 |  | $ | 892
Fair value of these assets was measured using Level 3 inputs (unobservable inputs for the asset or liability). Unobservable inputs include the discount rate, projected restaurant revenues and expenses, and sublease income if we are closing and intend to sublease the restaurant or office space. During the three months ended June 30, 2023 and 2022, we recorded asset impairments related to restaurants and offices of $7,816 and $367, respectively. During the six months ended June 30, 2023 and 2022, we recorded asset impairments related to restaurants and offices of $9,115 and $1,098, respectively. Costs are recorded within impairment, closure costs, and asset disposals on the condensed consolidated statements of income and comprehensive income. Carrying value after the impairment charges approximates fair value.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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