Fair Value Measures and Disclosures

9 Months Ended

Sep. 30, 2022

4. FAIR VALUE MEASUREMENT

The following tables summarize our assets and liabilities measured at fair value on a recurring basis using the following levels of inputs (in thousands):


	Fair Value Measurements at September 30, 2022
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents—Money market funds	$	250,889	$	250,889	$	—	$	—
Equity securities, at fair value	93,407		380		—		93,027

Trading securities held in a "rabbi trust" (1)	328		328		—		—
Total assets	$	344,624	$	251,597	$	—	$	93,027
Liabilities:

Deferred compensation accrual "rabbi trust" (2)	$	328	$	328	$	—	$	—
Total liabilities	$	328	$	328	$	—	$	—


	Fair Value Measurements at December 31, 2021
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents—Money market funds	$	—	$	—	$	—	$	—
Equity securities, at fair value	102,529		174		—		102,355

Trading securities held in a "rabbi trust" (1)	179		179		—		—
Total assets	$	102,708	$	353	$	—	$	102,355
Liabilities:

Deferred compensation accrual "rabbi trust" (2)	$	188	$	188	$	—	$	—
Total liabilities	$	188	$	188	$	—	$	—

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(1) — Trading securities held in a rabbi trust are included in Other long-term assets, net in the consolidated balance sheets.

(2) — Non-qualified deferred compensation in a rabbi trust is included in Accrued liabilities and Other long-term liabilities in the consolidated balance sheets.

The following table provides activity for our Level 3 investments (in thousands):


	Amount
Level 3 investments at December 31, 2020	$	—
Increase due to acquisition of Level 3 investments	99,723
Increase in fair value of Level 3 investments	2,632
Level 3 investments at December 31, 2021	102,355
Increase due to acquisition of Level 3 investments	18,920
Decrease in fair value of Level 3 investments	(28,248)
Level 3 investments at September 30, 2022	$	93,027

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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