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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2024
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note 10—Fair Value Measurements The Company’s current assets and current liabilities are financial instruments and most of these items (other than marketable securities, restricted marketable securities, inventories and the short-term portion of deferred compensation funding) are recorded at cost in the Consolidated Balance Sheets. The estimated fair value of these financial instruments approximates their carrying value due to their short-term nature. The carrying value of the Company’s line of credit represents the outstanding amount of the borrowings, which approximates fair value. The Company’s financial assets that are measured at fair value on a recurring basis are its marketable securities, restricted marketable securities, and deferred compensation funding. The recorded values of all of the financial instruments approximate their current fair values because of their nature, stated interest rates and respective maturity dates or durations. The Company’s marketable securities are held by the Company’s captive insurance company to satisfy capital requirements of the state regulator related to captive insurance companies. Restricted marketable securities are held by the Company’s captive insurance company as collateral for certain insurance coverages. Such securities consist primarily of municipal bonds, U.S. treasury bonds and corporate bonds, which are classified as available-for-sale and are reported at fair value. Unrealized gains and losses associated with these investments are included within “Unrealized (loss) gain on available-for-sale marketable securities, net of taxes” in the Consolidated Statements of Comprehensive (Loss) Income. Marketable securities, including restricted marketable securities, are classified within Level 2 of the fair value hierarchy, as these securities are measured using quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable. Such valuations are determined by a third-party pricing service. For the three and six months ended June 30, 2024, the Company recorded unrealized losses, net of taxes of $0.4 million and $0.8 million on marketable securities and restricted marketable securities, respectively. For the three and six months ended June 30, 2023, the Company recorded unrealized losses, net of taxes of $0.9 million and unrealized gains, net of taxes of $0.3 million on marketable securities, respectively. As part of a 2021 acquisition of a prepackaged meal manufacturer, the Company agreed to pay royalties to the seller on all future product sales. The Company recorded a liability for the expected future payments within Other long-term liabilities in the Consolidated Balance Sheets. The fair value of this liability is measured using forecasted sales models (Level 3). For the three months ended June 30, 2024 and 2023, the Company recorded realized losses of $0.5 million and gains of $0.6 million, respectively, within “Costs of services provided” in the Consolidated Statements of Comprehensive (Loss) Income related to the subsequent measurement of the liability at each balance sheet date. For the six months ended June 30, 2024 and 2023, the Company recorded realized gains of $0.3 million and $0.2 million, respectively, within “Costs of services provided” in the Consolidated Statements of Comprehensive (Loss) Income related to the subsequent measurement of the liability at each period end. For the three months ended June 30, 2024 and 2023, the Company received total proceeds, less the amount of interest received, of $11.4 million and $1.2 million, respectively, from sales of available-for-sale securities. For the three months ended June 30, 2024 and 2023, these sales resulted in realized losses of $0.1 million and gains of less than $0.1 million, respectively, which were recorded within “Investment and other income, net” in the Consolidated Statements of Comprehensive (Loss) Income. For the six months ended June 30, 2024 and 2023, the Company received total proceeds, less the amount of interest received, of $28.0 million and $1.4 million, respectively, from sales of available-for-sale securities. For the six months ended June 30, 2024 and 2023, these sales resulted in realized losses of $0.3 million and losses of less than $0.1 million, respectively, which were recorded within “Investment and other income, net” in the Consolidated Statements of Comprehensive (Loss) Income. The basis for the sale of these securities was the specific identification of each bond sold during the period. The investments under the funded deferred compensation plan are classified as trading securities and unrealized gains or losses are recorded within “Investment and other income, net” in the Consolidated Statements of Comprehensive (Loss) Income. The fair value of the investments are determined based on quoted market prices (Level 1) or the net asset value (“NAV”) of underlying share investments (Level 2). For the three months ended June 30, 2024 and 2023, the Company recognized unrealized gains of $1.3 million and gains of $2.3 million, respectively, related to equity securities held at the respective reporting dates. For the six months ended June 30, 2024 and 2023, the Company recognized unrealized gains of $5.4 million and $3.8 million, respectively, related to equity securities held at the respective reporting dates. The following table summarizes the contractual maturities of debt securities held at June 30, 2024 and December 31, 2023, which are classified as “Marketable securities, at fair value” and “Restricted marketable securities, at fair value” in the Consolidated Balance Sheets:
|  | Debt Securities — Available-for-Sale
Contractual maturity: |  | June 30, 2024 |  | December 31, 2023
|  | (in thousands)
Marketable securities, at fair value |  |  |  |
Maturing in one year or less |  | $ | 1,007 |  |  | $ | 6,324 |
Maturing in second year through fifth year |  | 27,296 |  |  | 34,939 |
Maturing in sixth year through tenth year |  | 32,934 |  |  | 39,309 |
Maturing after ten years |  | 17,897 |  |  | 12,559 |
Total marketable securities, at fair value |  | $ | 79,134 |  |  | $ | 93,131 |
Restricted marketable securities, at fair value |  |  |  |
Maturing in one year or less |  | $ | 1,047 |  |  | $ | — |
Maturing in second year through fifth year |  | 7,058 |  |  | — |
Maturing in sixth year through tenth year |  | 12,895 |  |  | — |
Maturing after ten years |  | 1,022 |  |  | — |
Total restricted marketable securities, at fair value |  | $ | 22,022 |  |  | $ | — |
Total debt securities — available-for-sale |  | $ | 101,156 |  |  | $ | 93,131 |
The following table shows the amortized cost, unrealized gains and losses, and estimated fair value of the Company’s debt securities as of June 30, 2024 and December 31, 2023:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Credit Impairment Losses 1
| (in thousands)
June 30, 2024 |  |  |  |  |  |  |  |  |
Type of security: |  |  |  |  |  |  |  |  |
Marketable securities |  |  |  |  |  |  |  |  |
Municipal bonds — taxable | $ | 9,242 |  |  | $ | 18 |  |  | $ | (752) |  |  | $ | 8,508 |  |  | $ | — |
Municipal bonds — non-taxable | 73,216 |  |  | 49 |  |  | (2,639) |  |  | 70,626 |  |  | — |
Total marketable securities | $ | 82,458 |  |  | $ | 67 |  |  | $ | (3,391) |  |  | $ | 79,134 |  |  | $ | — |
Restricted marketable securities |  |  |  |  |  |  |  |  |
U.S. treasury bonds | $ | 6,888 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 6,901 |  |  | $ | — |
U.S. government agency bonds | 1,207 |  |  | 2 |  |  | — |  |  | 1,209 |  |  | — |
International fixed income bonds | 625 |  |  | — |  |  | (1) |  |  | 624 |  |  | — |
Corporate bonds | 5,134 |  |  | 5 |  |  | (2) |  |  | 5,137 |  |  | — |
Municipal bonds — taxable | 8,156 |  |  | 16 |  |  | (21) |  |  | 8,151 |  |  | — |
Total restricted marketable securities | $ | 22,010 |  |  | $ | 36 |  |  | $ | (24) |  |  | $ | 22,022 |  |  | $ | — |
Total debt securities — available-for-sale | $ | 104,468 |  |  | $ | 103 |  |  | $ | (3,415) |  |  | $ | 101,156 |  |  | $ | — |
December 31, 2023 |  |  |  |  |  |  |  |  |
Type of security: |  |  |  |  |  |  |  |  |
Municipal bonds — non-taxable | $ | 95,466 |  |  | $ | 387 |  |  | $ | (2,722) |  |  | $ | 93,131 |  |  | $ | — |
Total debt securities — available-for-sale | $ | 95,466 |  |  | $ | 387 |  |  | $ | (2,722) |  |  | $ | 93,131 |  |  | $ | — |
1.The Company performs a credit impairment loss assessment quarterly on an individual security basis. As of June 30, 2024 and December 31, 2023, no allowance for credit loss has been recognized as the issuers of these securities have not established a cause for default and various rating agencies have reaffirmed each security’s investment grade status. The fair value of these securities have fluctuated since the purchase date as market interest rates fluctuate. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell before the recovery of the securities’ amortized cost basis. The following tables provide fair value measurement information for the Company’s financial assets, including marketable securities, restricted marketable securities and deferred compensation fund investments as of June 30, 2024 and December 31, 2023:
| As of June 30, 2024
|  |  |  |  | Fair Value Measurement Using:
| Carrying Amount |  | Total Fair Value |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
| (in thousands)
Marketable securities |  |  |  |  |  |  |  |  |
Municipal bonds — taxable | $ | 8,508 |  |  | $ | 8,508 |  |  | $ | — |  |  | $ | 8,508 |  |  | $ | — |
Municipal bonds — non-taxable | 70,626 |  |  | 70,626 |  |  | — |  |  | 70,626 |  |  | — |
Total marketable securities | $ | 79,134 |  |  | $ | 79,134 |  |  | $ | — |  |  | $ | 79,134 |  |  | $ | — |
Restricted marketable securities |  |  |  |  |  |  |  |  |
U.S. treasury bonds | $ | 6,901 |  |  | $ | 6,901 |  |  | $ | — |  |  | $ | 6,901 |  |  | $ | — |
U.S. government agency bonds | 1,209 |  |  | 1,209 |  |  | — |  |  | 1,209 |  |  | — |
International fixed income bonds | 624 |  |  | 624 |  |  | — |  |  | 624 |  |  | — |
Corporate bonds | 5,137 |  |  | 5,137 |  |  | — |  |  | 5,137 |  |  | — |
Municipal bonds — taxable | 8,151 |  |  | 8,151 |  |  | — |  |  | 8,151 |  |  | — |
Total restricted marketable securities | $ | 22,022 |  |  | $ | 22,022 |  |  | $ | — |  |  | $ | 22,022 |  |  | $ | — |
Deferred compensation fund |  |  |  |  |  |  |  |  |
Money market 1 | $ | 1,933 |  |  | $ | 1,933 |  |  | $ | — |  |  | $ | 1,933 |  |  | $ | — |
Commodities | 315 |  |  | 315 |  |  | 315 |  |  | — |  |  | — |
Fixed income | 4,605 |  |  | 4,605 |  |  | 4,605 |  |  | — |  |  | — |
International | 4,942 |  |  | 4,942 |  |  | 4,942 |  |  | — |  |  | — |
Large cap blend | 5,794 |  |  | 5,794 |  |  | 5,794 |  |  | — |  |  | — |
Large cap growth | 16,890 |  |  | 16,890 |  |  | 16,890 |  |  | — |  |  | — |
Large cap value | 6,543 |  |  | 6,543 |  |  | 6,543 |  |  | — |  |  | — |
Mid cap blend | 3,382 |  |  | 3,382 |  |  | 3,382 |  |  | — |  |  | — |
Real estate | 350 |  |  | 350 |  |  | 350 |  |  | — |  |  | — |
Small cap blend | 2,679 |  |  | 2,679 |  |  | 2,679 |  |  | — |  |  | — |
Total deferred compensation fund 2 | $ | 47,433 |  |  | $ | 47,433 |  |  | $ | 45,500 |  |  | $ | 1,933 |  |  | $ | — |
| As of December 31, 2023
|  |  |  |  | Fair Value Measurement Using:
| Carrying Amount |  | Total Fair Value |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
| (in thousands)
Marketable securities |  |  |  |  |  |  |  |  |
Municipal bonds — non-taxable | $ | 93,131 |  |  | $ | 93,131 |  |  | $ | — |  |  | $ | 93,131 |  |  | $ | — |
Deferred compensation fund |  |  |  |  |  |  |  |  |
Money market 1 | $ | 2,007 |  |  | $ | 2,007 |  |  | $ | — |  |  | $ | 2,007 |  |  | $ | — |
Commodities | 298 |  |  | 298 |  |  | 298 |  |  | — |  |  | — |
Fixed income | 4,254 |  |  | 4,254 |  |  | 4,254 |  |  | — |  |  | — |
International | 4,621 |  |  | 4,621 |  |  | 4,621 |  |  | — |  |  | — |
Large cap blend | 5,053 |  |  | 5,053 |  |  | 5,053 |  |  | — |  |  | — |
Large cap growth | 13,886 |  |  | 13,886 |  |  | 13,886 |  |  | — |  |  | — |
Large cap value | 5,964 |  |  | 5,964 |  |  | 5,964 |  |  | — |  |  | — |
Mid cap blend | 3,192 |  |  | 3,192 |  |  | 3,192 |  |  | — |  |  | — |
Real estate | 374 |  |  | 374 |  |  | 374 |  |  | — |  |  | — |
Small cap blend | 2,664 |  |  | 2,664 |  |  | 2,664 |  |  | — |  |  | — |
Deferred compensation fund 2 | $ | 42,313 |  |  | $ | 42,313 |  |  | $ | 40,306 |  |  | $ | 2,007 |  |  | $ | — |
1.The fair value of the money market fund is based on the NAV of the shares held by the plan at the end of the period. The money market fund includes short-term United States dollar denominated money market instruments and the NAV is determined by the custodian of the fund. The money market fund can be redeemed at its NAV at the measurement date as there are no significant restrictions on the ability to sell this investment. 2.As of June 30, 2024 and December 31, 2023, $1.4 million and $1.5 million of short-term deferred compensation funding is included within “Prepaid expenses and other assets” in the Company’s Consolidated Balance Sheets, respectively. Such amounts of short-term deferred compensation funding represent investments expected to be liquidated and paid within 12 months of June 30, 2024 and December 31, 2023, respectively.

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- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent + Details
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