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Fair Value Measurement
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement

Note 2 - Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

All of our financial instruments are recognized in our consolidated balance sheets. Carrying values approximate fair value of most financial assets and liabilities. Investments and restricted cash and investments are recorded at market value. The interest rates on our investments approximate current market rates for these types of investments.

In determining the fair value of our financial assets, the Company predominantly uses the market approach. In determining the fair value of all its corporate bonds, mortgage-backed securities, U.S. treasuries, U.S. government agency securities, mutual funds, money market funds, asset-backed securities, and emerging markets, the Company utilizes non-binding quotes provided by our investment brokers.

Factors used in determining the fair value of our financial assets and liabilities are summarized into three levels as established in the fair value hierarchy framework. The three levels of the fair value hierarchy are described below.

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs to the valuation methodology include:

•
Quoted prices for similar assets or liabilities in active markets;
•
Quoted prices for identical or similar assets or liabilities in inactive markets;
•
Inputs other than quoted prices that are observable for the asset or liability;
•
Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

In determining the fair value measurement of our financial assets, the fair value measurement level within the hierarchy is based on the lowest level input and is applied to each financial asset. Valuation techniques are used to maximize the use of observable inputs and minimize the use of unobservable inputs.

The following table summarizes the Company’s investments at December 31, 2024 and 2023 measured at fair value on a recurring basis (in thousands):

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

Recorded

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

Recorded

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Basis

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Basis

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

26,661

 

 

$

—

 

 

$

—

 

 

$

26,661

 

 

$

19,539

 

 

$

—

 

 

$

—

 

 

$

19,539

 

Total cash equivalents

 

 

26,661

 

 

 

—

 

 

 

—

 

 

 

26,661

 

 

 

19,539

 

 

 

—

 

 

 

—

 

 

 

19,539

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

27,954

 

 

 

3

 

 

 

(2,365

)

 

 

25,592

 

 

 

34,472

 

 

 

2

 

 

 

(3,161

)

 

 

31,313

 

U.S. government agency securities

 

 

12,734

 

 

 

—

 

 

 

(203

)

 

 

12,531

 

 

 

12,830

 

 

 

—

 

 

 

(408

)

 

 

12,422

 

U.S. treasuries

 

 

12,460

 

 

 

—

 

 

 

(1,140

)

 

 

11,320

 

 

 

12,448

 

 

 

—

 

 

 

(1,253

)

 

 

11,195

 

Mortgage-backed securities

 

 

12,128

 

 

 

—

 

 

 

(2,592

)

 

 

9,536

 

 

 

13,084

 

 

 

—

 

 

 

(2,454

)

 

 

10,630

 

Asset-backed securities

 

 

7,610

 

 

 

12

 

 

 

(109

)

 

 

7,513

 

 

 

13,659

 

 

 

4

 

 

 

(191

)

 

 

13,472

 

Emerging markets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,003

 

 

 

—

 

 

 

(8

)

 

 

1,995

 

Total current investments

 

 

72,886

 

 

 

15

 

 

 

(6,409

)

 

 

66,492

 

 

 

88,496

 

 

 

6

 

 

 

(7,475

)

 

 

81,027

 

Restricted cash and investments (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

100,030

 

 

 

16

 

 

 

(7,302

)

 

 

92,744

 

 

 

82,481

 

 

 

19

 

 

 

(8,473

)

 

 

74,027

 

U.S. treasuries

 

 

54,900

 

 

 

—

 

 

 

(6,348

)

 

 

48,552

 

 

 

109,020

 

 

 

21

 

 

 

(6,436

)

 

 

102,605

 

Mortgage-backed securities

 

 

40,858

 

 

 

10

 

 

 

(5,674

)

 

 

35,194

 

 

 

42,077

 

 

 

2

 

 

 

(5,218

)

 

 

36,861

 

U.S. government agency securities

 

 

16,785

 

 

 

—

 

 

 

(914

)

 

 

15,871

 

 

 

16,863

 

 

 

—

 

 

 

(1,199

)

 

 

15,664

 

Mutual funds

 

 

10,961

 

 

 

—

 

 

 

—

 

 

 

10,961

 

 

 

8,941

 

 

 

—

 

 

 

—

 

 

 

8,941

 

Asset-backed securities

 

 

1,666

 

 

 

6

 

 

 

(1

)

 

 

1,671

 

 

 

799

 

 

 

1

 

 

 

(1

)

 

 

799

 

Money market funds

 

 

216

 

 

 

—

 

 

 

—

 

 

 

216

 

 

 

337

 

 

 

—

 

 

 

—

 

 

 

337

 

Emerging markets

 

 

200

 

 

 

1

 

 

 

—

 

 

 

201

 

 

 

200

 

 

 

2

 

 

 

—

 

 

 

202

 

Total restricted cash and investments

 

 

225,616

 

 

 

33

 

 

 

(20,239

)

 

 

205,410

 

 

 

260,718

 

 

 

45

 

 

 

(21,327

)

 

 

239,436

 

Total investments

 

$

325,163

 

 

$

48

 

 

$

(26,648

)

 

$

298,563

 

 

$

368,753

 

 

$

51

 

 

$

(28,802

)

 

$

340,002

 

 

(1) Included in restricted cash and investments within the consolidated balance sheets as of December 31, 2024 and 2023 is restricted cash of $26.7 million and $3.6 million, respectively, which is excluded from the table above. Restricted cash and investments are classified as current and noncurrent on the balance sheet based on the nature of the restriction.

 

 

 

The following table summarizes the Company's investments at December 31, 2024 and 2023 measured at fair value on a recurring basis by fair value hierarchy level (in thousands):

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Other (1)

 

 

Basis

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Other (1)

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market
   funds

 

$

26,661

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

26,661

 

 

$

19,539

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

19,539

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

25,592

 

 

 

—

 

 

 

25,592

 

 

 

—

 

 

 

—

 

 

 

31,313

 

 

 

—

 

 

 

31,313

 

 

 

—

 

 

 

—

 

U.S. government
   agency securities

 

 

12,531

 

 

 

—

 

 

 

12,531

 

 

 

—

 

 

 

—

 

 

 

12,422

 

 

 

—

 

 

 

12,422

 

 

 

—

 

 

 

—

 

U.S. treasuries

 

 

11,320

 

 

 

—

 

 

 

11,320

 

 

 

—

 

 

 

—

 

 

 

11,195

 

 

 

—

 

 

 

11,195

 

 

 

—

 

 

 

—

 

Mortgage-backed
   securities

 

 

9,536

 

 

 

—

 

 

 

9,536

 

 

 

—

 

 

 

—

 

 

 

10,630

 

 

 

—

 

 

 

10,630

 

 

 

—

 

 

 

—

 

Asset-backed securities

 

 

7,513

 

 

 

—

 

 

 

7,513

 

 

 

—

 

 

 

—

 

 

 

13,472

 

 

 

—

 

 

 

13,472

 

 

 

—

 

 

 

—

 

Emerging markets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,995

 

 

 

—

 

 

 

1,995

 

 

 

—

 

 

 

—

 

Restricted cash and investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

92,744

 

 

 

—

 

 

 

92,744

 

 

 

—

 

 

 

—

 

 

 

74,027

 

 

 

—

 

 

 

74,027

 

 

 

—

 

 

 

—

 

U.S. treasuries

 

 

48,552

 

 

 

—

 

 

 

48,552

 

 

 

—

 

 

 

—

 

 

 

102,605

 

 

 

—

 

 

 

102,605

 

 

 

—

 

 

 

—

 

Mortgage-backed
   securities

 

 

35,194

 

 

 

—

 

 

 

35,194

 

 

 

—

 

 

 

—

 

 

 

36,861

 

 

 

—

 

 

 

36,861

 

 

 

—

 

 

 

—

 

U.S. government
   agency securities

 

 

15,871

 

 

 

—

 

 

 

15,871

 

 

 

—

 

 

 

—

 

 

 

15,664

 

 

 

—

 

 

 

15,664

 

 

 

—

 

 

 

—

 

Mutual funds

 

 

10,961

 

 

 

10,961

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,941

 

 

 

8,941

 

 

 

—

 

 

 

—

 

 

 

—

 

Asset-backed securities

 

 

1,671

 

 

 

—

 

 

 

1,671

 

 

 

—

 

 

 

—

 

 

 

799

 

 

 

—

 

 

 

799

 

 

 

—

 

 

 

—

 

Money market
   funds

 

 

216

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

216

 

 

 

337

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

337

 

Emerging markets

 

 

201

 

 

 

—

 

 

 

201

 

 

 

—

 

 

 

—

 

 

 

202

 

 

 

—

 

 

 

202

 

 

 

—

 

 

 

—

 

Total investments

 

$

298,563

 

 

$

10,961

 

 

$

260,725

 

 

$

—

 

 

$

26,877

 

 

$

340,002

 

 

$

8,941

 

 

$

311,185

 

 

$

—

 

 

$

19,876

 

 

(1) Investments in money market funds measured at fair value using the net asset value per share practical expedient are not subject to hierarchy level classification disclosure. The Company invests in money market funds that seek to maintain a stable net asset value. These investments include commingled funds that comprise high-quality short-term securities representing liquid debt and monetary instruments where the redemption value is likely to be the fair value. Redemption is permitted daily without written notice.

 

The following table summarizes the contractual maturities of the Company’s available for sale securities at December 31, 2024 and 2023. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. The table also includes money market funds, which are classified as cash and cash equivalents on the Company’s consolidated balance sheets.

 

 

December 31, 2024

 

(In thousands)

Less than 1 Year

 

 

Between 1 to 5 Years

 

 

Between 5 to 10 Years

 

 

After 10 Years

 

 

Total

 

Corporate bonds

$

18,815

 

 

$

76,574

 

 

$

22,947

 

 

$

—

 

 

$

118,336

 

U.S. treasuries

 

497

 

 

 

42,333

 

 

 

17,042

 

 

 

—

 

 

 

59,872

 

U.S. government agency securities

 

8,014

 

 

 

19,333

 

 

 

1,055

 

 

 

—

 

 

 

28,402

 

Money market funds

 

26,877

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,877

 

Asset-backed securities

 

—

 

 

 

1,228

 

 

 

6,654

 

 

 

1,302

 

 

 

9,184

 

Emerging markets

 

—

 

 

 

—

 

 

 

201

 

 

 

—

 

 

 

201

 

Total

$

54,203

 

 

$

139,468

 

 

$

47,899

 

 

$

1,302

 

 

$

242,872

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

(In thousands)

Less than 1 Year

 

 

Between 1 to 5 Years

 

 

Between 5 to 10 Years

 

 

After 10 Years

 

 

Total

 

U.S. treasuries

$

55,955

 

 

$

32,706

 

 

$

25,139

 

 

$

—

 

 

$

113,800

 

Corporate bonds

 

6,859

 

 

 

67,731

 

 

 

30,574

 

 

 

176

 

 

 

105,340

 

U.S. government agency securities

 

39

 

 

 

27,018

 

 

 

1,029

 

 

 

—

 

 

 

28,086

 

Money market funds

 

19,876

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,876

 

Asset-backed securities

 

—

 

 

 

799

 

 

 

12,182

 

 

 

1,290

 

 

 

14,271

 

Emerging markets

 

1,995

 

 

 

—

 

 

 

202

 

 

 

—

 

 

 

2,197

 

Total

$

84,724

 

 

$

128,254

 

 

$

69,126

 

 

$

1,466

 

 

$

283,570

 

 

The average contractual maturity of mortgage-backed securities, which are excluded from the table above, was 21 years and 23 years as of December 31, 2024 and 2023, respectively.

The fair values and gross unrealized losses of the Company’s available for sale securities that were in an unrealized loss position as of December 31, 2024 and 2023, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows (in thousands):

 

 

 

December 31, 2024

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

 

 

 

 

 

Gross

 

 

 

 

 

Gross

 

 

 

 

 

Gross

 

 

 

Recorded

 

 

Unrealized

 

 

Recorded

 

 

Unrealized

 

 

Recorded

 

 

Unrealized

 

 

 

Basis

 

 

Losses

 

 

Basis

 

 

Losses

 

 

Basis

 

 

Losses

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

$

20

 

 

$

—

 

 

$

25,377

 

 

$

(2,365

)

 

$

25,397

 

 

$

(2,365

)

U.S. government agency securities

 

 

—

 

 

 

—

 

 

 

12,531

 

 

 

(203

)

 

 

12,531

 

 

 

(203

)

U.S. treasuries

 

 

—

 

 

 

—

 

 

 

11,320

 

 

 

(1,140

)

 

 

11,320

 

 

 

(1,140

)

Mortgage-backed securities

 

 

—

 

 

 

—

 

 

 

9,536

 

 

 

(2,592

)

 

 

9,536

 

 

 

(2,592

)

Asset-backed securities

 

 

—

 

 

 

—

 

 

 

1,301

 

 

 

(109

)

 

 

1,301

 

 

 

(109

)

Total investments

 

 

20

 

 

 

—

 

 

 

60,065

 

 

 

(6,409

)

 

 

60,085

 

 

 

(6,409

)

Restricted investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

11,142

 

 

 

(15

)

 

 

71,716

 

 

 

(7,287

)

 

 

82,858

 

 

 

(7,302

)

U.S. treasuries

 

 

1,399

 

 

 

(29

)

 

 

46,656

 

 

 

(6,319

)

 

 

48,055

 

 

 

(6,348

)

Mortgage-backed securities

 

 

3,360

 

 

 

(37

)

 

 

29,877

 

 

 

(5,637

)

 

 

33,237

 

 

 

(5,674

)

U.S. government agency securities

 

 

—

 

 

 

—

 

 

 

15,871

 

 

 

(914

)

 

 

15,871

 

 

 

(914

)

Asset-backed securities

 

 

443

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

443

 

 

 

(1

)

Total restricted investments

 

 

16,344

 

 

 

(82

)

 

 

164,120

 

 

 

(20,157

)

 

 

180,464

 

 

 

(20,239

)

Total investments and restricted investments

 

$

16,364

 

 

$

(82

)

 

$

224,185

 

 

$

(26,566

)

 

$

240,549

 

 

$

(26,648

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

 

 

 

 

 

Gross

 

 

 

 

 

Gross

 

 

 

 

 

Gross

 

 

 

Recorded

 

 

Unrealized

 

 

Recorded

 

 

Unrealized

 

 

Recorded

 

 

Unrealized

 

 

 

Basis

 

 

Losses

 

 

Basis

 

 

Losses

 

 

Basis

 

 

Losses

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

$

—

 

 

$

—

 

 

$

31,122

 

 

$

(3,161

)

 

$

31,122

 

 

$

(3,161

)

U.S. government agency securities

 

 

562

 

 

 

(20

)

 

 

11,859

 

 

 

(388

)

 

 

12,421

 

 

 

(408

)

U.S. treasuries

 

 

—

 

 

 

—

 

 

 

11,195

 

 

 

(1,253

)

 

 

11,195

 

 

 

(1,253

)

Mortgage-backed securities

 

 

—

 

 

 

—

 

 

 

10,629

 

 

 

(2,454

)

 

 

10,629

 

 

 

(2,454

)

Asset-backed securities

 

 

—

 

 

 

—

 

 

 

5,268

 

 

 

(191

)

 

 

5,268

 

 

 

(191

)

Emerging Markets

 

 

—

 

 

 

—

 

 

 

1,995

 

 

 

(8

)

 

 

1,995

 

 

 

(8

)

Total investments

 

 

562

 

 

 

(20

)

 

 

72,068

 

 

 

(7,455

)

 

 

72,630

 

 

 

(7,475

)

Restricted investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

176

 

 

 

(1

)

 

 

72,439

 

 

 

(8,472

)

 

 

72,615

 

 

 

(8,473

)

U.S. treasuries

 

 

994

 

 

 

(1

)

 

 

47,046

 

 

 

(6,435

)

 

 

48,040

 

 

 

(6,436

)

Mortgage-backed securities

 

 

1,235

 

 

 

(5

)

 

 

35,383

 

 

 

(5,213

)

 

 

36,618

 

 

 

(5,218

)

U.S. government agency securities

 

 

3,287

 

 

 

(171

)

 

 

12,377

 

 

 

(1,028

)

 

 

15,664

 

 

 

(1,199

)

Asset-backed securities

 

 

300

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

300

 

 

 

(1

)

Total restricted investments

 

 

5,992

 

 

 

(179

)

 

 

167,245

 

 

 

(21,148

)

 

 

173,237

 

 

 

(21,327

)

Total investments and restricted investments

 

$

6,554

 

 

$

(199

)

 

$

239,313

 

 

$

(28,603

)

 

$

245,867

 

 

$

(28,802

)

 

We have determined that the gross unrealized losses on our investments as of December 31, 2024 and 2023 were temporary in nature. The decline in fair value was due to changes in market interest rates, rather than credit losses.