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Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The fair value hierarchy established by ASC 820, Fair Value Measurement, prioritizes the use of inputs used in valuation techniques into the following three levels:
•Level 1 inputs are observable quoted prices in active markets for identical assets or liabilities
•Level 2 inputs are observable, either directly or indirectly, but are not Level 1 inputs
•Level 3 inputs are unobservable
The following fair value hierarchy table presents the Company’s assets that are measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024:
As of March 31, 2025As of December 31, 2024
Fair Value HierarchyFair Value Hierarchy
(in thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash and cash equivalents(a)
$276,489 $— $— $276,489 $455,084 $— $— $455,084 
Restricted cash(a)
40,296 — — 40,296 9,104 — — 9,104 
Restricted investments(b)
— 135,592 — 135,592 — 139,986 — 139,986 
Investments in lieu of retention(c)
62,171 92,593 — 154,764 38,359 106,765 — 145,124 
Total$378,956 $228,185 $— $607,141 $502,547 $246,751 $— $749,298 
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(a)Includes money market funds and short-term investments with maturity dates of three months or less when acquired.
(b)Restricted investments, as of March 31, 2025 and December 31, 2024, consist of available-for-sale (“AFS”) debt securities, which are valued based on pricing models determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets; therefore, they are classified as Level 2 assets.
(c)Investments in lieu of retention are included in retention receivable as of March 31, 2025 and December 31, 2024, and are composed of money market funds of $62.2 million and $38.4 million, respectively, and AFS debt securities of $92.6 million and $106.8 million, respectively. The fair values of the money market funds are measured using quoted market prices; therefore, they are classified as Level 1 assets. The fair values of AFS debt securities are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets; therefore, they are classified as Level 2 assets.
Investments in AFS debt securities consisted of the following as of March 31, 2025 and December 31, 2024:
As of March 31, 2025As of December 31, 2024
(in thousands)Amortized CostUnrealized GainsUnrealized LossesFair ValueAmortized CostUnrealized GainsUnrealized LossesFair Value
Restricted investments:
Corporate debt securities$115,378 $1,079 $(818)$115,639 $118,421 $603 $(1,242)$117,782 
U.S. government agency securities14,059 45 (519)13,585 16,323 35 (663)15,695 
Municipal bonds6,894 2 (709)6,187 7,159 — (831)6,328 
Corporate certificates of deposit200 — (19)181 200 — (19)181 
Total restricted investments136,531 1,126 (2,065)135,592 142,103 638 (2,755)139,986 
Investments in lieu of retention:
Corporate debt securities90,604 372 (151)90,825 106,014 224 (491)105,747 
Municipal bonds1,602 177 (11)1,768 830 188 — 1,018 
Total investments in lieu of retention92,206 549 (162)92,593 106,844 412 (491)106,765 
Total AFS debt securities$228,737 $1,675 $(2,227)$228,185 $248,947 $1,050 $(3,246)$246,751 
The following table summarizes the fair value and gross unrealized losses aggregated by category and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2025 and December 31, 2024:
As of March 31, 2025
Less than 12 Months12 Months or GreaterTotal
(in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Restricted investments:
Corporate debt securities$3,476 $(23)$27,630 $(795)$31,106 $(818)
U.S. government agency securities571 (35)8,710 (484)9,281 (519)
Municipal bonds535 (5)5,411 (704)5,946 (709)
Corporate certificates of deposit— — 181 (19)181 (19)
Total restricted investments4,582 (63)41,932 (2,002)46,514 (2,065)
Investments in lieu of retention:
Corporate debt securities13,468 (58)23,487 (93)36,955 (151)
Municipal bonds374 (11)— — 374 (11)
Total investments in lieu of retention13,842 (69)23,487 (93)37,329 (162)
Total AFS debt securities$18,424 $(132)$65,419 $(2,095)$83,843 $(2,227)
As of December 31, 2024
Less than 12 Months12 Months or GreaterTotal
(in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Restricted investments:
Corporate debt securities$23,985 $(159)$30,384 $(1,083)$54,369 $(1,242)
U.S. government agency securities4,371 (43)10,699 (620)15,070 (663)
Municipal bonds704 (13)5,560 (818)6,264 (831)
Corporate certificates of deposit— — 181 (19)181 (19)
Total restricted investments29,060 (215)46,824 (2,540)75,884 (2,755)
Investments in lieu of retention:
Corporate debt securities24,470 (149)37,755 (342)62,225 (491)
Total investments in lieu of retention24,470 (149)37,755 (342)62,225 (491)
Total AFS debt securities$53,530 $(364)$84,579 $(2,882)$138,109 $(3,246)
The unrealized losses in AFS debt securities as of March 31, 2025 and December 31, 2024 are primarily attributable to market interest rate increases and not a deterioration in credit quality of the issuers. Management evaluated the unrealized losses in AFS debt securities considering factors including credit ratings and other relevant information, which may indicate that contractual cash flows are not expected to occur. Based on the analysis, management determined that credit losses did not exist for AFS debt securities in an unrealized loss position as of March 31, 2025 and December 31, 2024.
It is not considered likely that the Company will be required to sell the investments before full recovery of the amortized cost basis of the AFS debt securities, which may be at maturity. As a result, consistent with the same period in 2024, the Company has not recognized any impairment losses in earnings during the three months ended March 31, 2025.
The amortized cost and fair value of AFS debt securities by contractual maturity as of March 31, 2025 are summarized in the table below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.
(in thousands)Amortized CostFair Value
Due within one year$70,227 $69,949 
Due after one year through five years146,911 147,405 
Due after five years11,599 10,831 
Total$228,737 $228,185 
The carrying values of receivables, payables and other amounts arising out of normal contract activities, including retention, which may be settled beyond one year, are estimated to approximate fair value. Of the Company’s long-term debt, the fair value of the 2024 Senior Notes was $441.5 million and $441.9 million as of March 31, 2025 and December 31, 2024, respectively. The fair values of the 2024 Senior Notes were determined using Level 1 inputs, specifically current observable market prices. The fair value of the Term Loan B was $121.9 million as of December 31, 2024. The fair value of the Term Loan B was determined using Level 2 inputs, specifically third-party quoted market prices. The reported value of the Company’s remaining borrowings approximates fair value as of March 31, 2025 and December 31, 2024.