XML 24 R14.htm IDEA: XBRL DOCUMENT

Cash, Cash Equivalents and Short-Term Investments

9 Months Ended

Sep. 30, 2022

Cash, Cash Equivalents and Short-Term Investments

Cash, Cash Equivalents and Short-Term Investments

Note 5. Cash, Cash Equivalents and Short-Term Investments

Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands):


	September 30,		December 31,
	2022		2021
Cash	$	28,868	$	27,788
Cash equivalents:
Money market mutual fund		1,856		111,313
Total cash and cash equivalents		30,724		139,101
Short-term investments:
U.S. Treasury notes and bills		201,390		223,896
Mutual funds		98,747		110,006
Corporate debt securities		198,664		155,796
Total short-term investments		498,801		489,698
Cash, cash equivalents and short-term investments	$	529,525	$	628,799

Available-for-sale investments

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale investments by type of security at September 30, 2022 were as follows (in thousands):


	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
U.S. Treasury notes	$	211,391	$	6	$	(10,007)	$	201,390
Corporate debt securities		214,575		9		(15,920)		198,664
Total available-for-sale investments	$	425,966	$	15	$	(25,927)	$	400,054

The following table summarizes the fair value of available-for-sale investments based on stated contractual maturities as of September 30, 2022:


	Amortized Cost		Fair Value
Due within one year	$	100,284	$	98,528
Due after one year through five years		325,682		301,526
Due after five years through ten years		—		—
Total	$	425,966	$	400,054

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale investments by type of security at December 31, 2021 were as follows (in thousands):


			Unrealized		Unrealized
	Amortized Cost		Gains		Losses		Fair Value
U.S. Treasury notes	$	226,020	$	12	$	(2,136)	$	223,896
Corporate debt securities		157,527		—		(1,731)		155,796
Total available-for-sale investments	$	383,547	$	12	$	(3,867)	$	379,692

The following table summarizes the fair value of available-for-sale investments based on stated contractual maturities as of December 31, 2021:


	Amortized Cost		Fair Value
Due within one year	$	39,081	$	39,035
Due after one year through five years		328,776		325,047
Due after five years through ten years		15,690		15,610
Total	$	383,547	$	379,692

The primary objective of our investment portfolio is to enhance overall returns in an efficient manner while maintaining safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with primarily investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.

We review our available-for-sale investments for other-than-temporary declines in fair value below our cost basis each quarter and whenever events or changes in circumstances indicate that the cost basis of an asset may not be recoverable. The evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below our cost basis, as well as adverse conditions related specifically to the security such as any changes to the credit rating of the security and the intent to sell or whether we will more likely than not be required to sell the security before recovery of its amortized cost basis. Our assessment of whether a security is other-than-temporarily impaired could change in the future based on new developments or changes in assumptions related to that particular security.

During the nine months ended September 30, 2022 and 2021 we had realized losses (gains) of $0.1 million and $(0.01) million on available-for-sale investments, respectively.

Equity Investments

We held investments in equity securities with readily determinable fair values of $98.7 million at September 30, 2022. These investments consist of mutual funds that invest primarily in tax-free municipal bonds and treasury inflation protected securities.

Unrealized losses during 2022 and 2021 related to equity securities held at September 30, 2022 and 2021 are as follows (in thousands):


	Nine Months Ended September 30,
	2022		2021
Net losses recognized during the nine months on equity securities	$	(12,436)	$	(308)
Less: net gains (losses) recognized during the year on equity securities sold during the period		—		—
Unrealized losses recognized during the nine months on equity securities still held at September 30, 2022 and 2021	$	(12,436)	$	(308)