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Short-Term and Long-Term Investments

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Short-Term and Long-Term Investments

4.  SHORT-TERM AND LONG-TERM INVESTMENTS

As of December 31, 2022 and 2021, the Company held $0 and $45,215,000, respectively, of short-term investments, consisting of obligations of the U.S. Treasury, all of which were debt securities with original maturities greater than three months but less than one year at the time of purchase.

As of December 31, 2022 and 2021, the Company held one auction rate security with a par value of $3,000,000 and an estimated fair value of approximately $2,622,000 and $2,639,000, respectively, purchased through and held in custody by a broker-dealer affiliate of Bank of America, N.A., that has experienced failed auctions (the “Failed Auction Security”) since February 2008. The Failed Auction Security held by the Company is Aaa/AA+ rated by major credit rating agencies, is collateralized by student loans, and is guaranteed by the U.S. Department of Education under the Federal Family Education Loan Program. Management is not aware of any reason to believe the issuer of the Failed Auction Security is presently at risk of default. Through December 31, 2022, the Company has continued to receive interest payments on the Failed Auction Security in accordance with the terms of its indenture. Management believes the Company ultimately should be able to liquidate the Failed Auction Security without significant loss primarily due to the overall quality of the issue held and the collateral securing the substantial majority of the underlying obligation. Changes in the estimated fair value of the Failed

Auction Security have not been significant in the past three years. However, current conditions in the auction rate securities market have led management to conclude the recovery period for the Failed Auction Security exceeds 12 months. As a result, the Company continued to classify the Failed Auction Security as long-term as of December 31, 2022.

At this time, the Company has no intent to sell the Failed Auction Security and does not believe it is more likely than not the Company will be required to sell the security. If current market conditions deteriorate further, the Company may be required to record additional unrealized losses. If the credit rating of the security deteriorates, the Company may be required to adjust the carrying value of the investment through impairment charges recorded in the Consolidated Statement of Operations, and any such impairment adjustments may be material.

Details of our investments are as follows (in thousands):

		December 31, 2022
		Cash and Cash Equivalents				Short-Term Investments				Long-Term Investments
Measured at fair value:
Available-for-sale debt securities:
Money Market Funds		$	143,274			$	—			$	—
Failed Auction Security			—				—				2,622
Total			143,274				—				2,622
Other measurement basis:
Cash on hand			47,337				—				—
Total		$	190,611			$	—			$	2,622

		December 31, 2021
		Cash and Cash Equivalents				Short-Term Investments				Long-Term Investments
Measured at fair value:
Available-for-sale debt securities:
Money Market Funds		$	94,282			$	—			$	—
U.S. Treasury Obligations			—				45,215				—
Failed Auction Security			—				—				2,639
Total			94,282				45,215				2,639
Other measurement basis:
Cash on hand			88,136				—				—
Total		$	182,418			$	45,215			$	2,639

The following is a summary of the available-for-sale securities (in thousands):

December 31, 2022		Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value
Failed Auction Security		$	3,000			$	—			$	378			$	2,622
December 31, 2021
U.S. Treasury Obligations		$	45,238			$	—			$	23			$	45,215
Failed Auction Security			3,000				—				361				2,639

As of December 31, 2022 and 2021, the Failed Auction Security had been in an unrealized loss position for greater than 12 months.

The amortized cost and estimated fair value of the available-for-sale securities on December 31, 2022, by type and contractual maturities, are shown below (in thousands):

Failed Auction Security:
		Cost				Estimated Fair Value
Due in twenty years		$	3,000			$	2,622

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- References

No definition available.

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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)

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