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Investments | 9 Months Ended
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Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract] |
Investments | INVESTMENTS Marketable Securities Our marketable securities are classified as available-for-sale and carried at fair value in current assets on the consolidated balance sheets. While our intent is to hold our securities to maturity, sudden changes in the market or our liquidity needs may cause us to sell certain securities in advance of their maturity date. Any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive income on the consolidated balance sheets, unless we determine that the amortized cost basis is not recoverable. If we determine that the amortized cost basis of the impaired security is not recoverable, we recognize the credit loss by increasing the allowance for those losses. We did not have an allowance for credit losses on our marketable securities as of September 30, 2024 or December 31, 2023. Cost basis is determined using the specific identification method. The following table presents the remaining maturities and values of our marketable securities as of the dates shown.
|  | September 30, 2024 |  | December 31, 2023
(in millions, except maturities in months) |  | Remaining Maturities |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
U.S. treasury and government agencies |  | 3 to 77 months |  | $ | 23.0 |  |  | $ | 21.5 |  |  | $ | 24.9 |  |  | $ | 22.9 |
Corporate debt securities |  | 8 to 103 months |  | 17.3 |  |  | 17.0 |  |  | 20.0 |  |  | 19.2 |
State and municipal bonds |  | 6 to 169 months |  | 14.2 |  |  | 14.1 |  |  | 15.5 |  |  | 15.1 |
Total marketable securities |  |  |  | $ | 54.5 |  |  | $ | 52.6 |  |  | $ | 60.4 |  |  | $ | 57.2 |
Equity Investments without Readily Determinable Fair Values The Company’s primary strategic equity investments without readily determinable fair values include Platform Science, Inc., a provider of telematics and fleet management tools; MLSI, a transportation technology development company; and ChemDirect, a business-to-business digital marketplace for the chemical industry. These investments are being accounted for under ASC 321, Investments - Equity Securities, using the measurement alternative, and their combined values as of September 30, 2024 and December 31, 2023 were $121.9 million and $121.8 million, respectively. If the Company identifies observable price changes for identical or similar securities of the same issuer, the equity security is measured at fair value as of the date the observable transaction occurred using Level 3 inputs. As of September 30, 2024, our cumulative upward adjustments were $72.0 million. In addition to our investment in MLSI, we hold a $10.0 million note receivable from MLSI as of September 30, 2024 and 2023. The note was funded during the first quarter of 2023, is subject to interest over its term, and matures in March 2030. We also hold a $2.5 million note receivable from Platform Science as of September 30, 2024. This note was executed and funded during the second quarter of 2024, is subject to interest over its term, and matures in March 2027. The following table summarizes the activity related to these equity investments during the periods presented.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Investment in equity securities |  | $ | 0.2 |  |  | $ | 10.3 |  |  | $ | 0.2 |  |  | $ | 15.3 |
Upward adjustments (1) |  | — |  |  | 2.3 |  |  | — |  |  | 20.0 |
(1) Our updated investment value in 2023 was determined using a hybrid backsolve method, a valuation approach incorporating both IPO and M&A scenarios to estimate the value based on recently issued shares. Equity Investments with Readily Determinable Fair Values In 2021, the Company purchased a $5.0 million non-controlling interest in TuSimple, a global self-driving technology company. Upon completion of its IPO in April 2021, our investment in TuSimple was converted into Class A common shares and is now being accounted for under ASC 321, Investments - Equity Securities. Our net investment and activity were not material for the three and nine months ended September 30, 2024 and 2023. See Note 4, Fair Value, for additional information on the fair value of our investment in TuSimple. Equity Method Investment In the second quarter of 2023, the Company invested $5.0 million consisting primarily of internal use software and cash in exchange for a 50% non-controlling ownership interest in Scope 23 LLC, an entity that provides a platform for shippers to track and manage their greenhouse gas emissions. Our interest is being accounted for under ASC 323, Investments - Equity Method and Joint Ventures. For the three and nine months ended September 30, 2024 and 2023, activity was not material. The carrying value of our investment was $4.7 million and $4.9 million as of September 30, 2024 and December 31, 2023, respectively. All of our equity investments, as well as our notes receivable from MLSI and Platform Science, Inc., are included in internal use software and other noncurrent assets on the consolidated balance sheets. Gains or losses on our equity investments are recognized within other expenses (income)—net on the consolidated statements of comprehensive income.

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- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 321 -Publisher FASB -URI https://asc.fasb.org/321/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 325 -Publisher FASB -URI https://asc.fasb.org/325/tableOfContent + Details
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