XML 31 R12.htm IDEA: XBRL DOCUMENT

Cash, Cash Equivalents and Short-Term Investments

12 Months Ended

Dec. 31, 2023

Cash, Cash Equivalents and Short-Term Investments

Cash, Cash Equivalents and Short-Term Investments

Note 4. Cash, Cash Equivalents and Short-term Investments

Cash, cash equivalents and short-term investments consisted of the following as of December 31, 2023 and 2022 (in thousands):


	December 31,				Carrying Value
	2023		2022		2023		2022
Cash	$	40,979	$	34,752	$	40,979	$	34,752
Cash equivalents:
Money market mutual fund		5,367		1,843		5,367		1,843
Total cash and cash equivalents		46,346		36,595		46,346		36,595
Short-term investments:
U.S. Treasury notes		136,665		190,718		136,665		190,718
Mutual funds		101,085		99,777		101,085		99,777
Corporate debt securities		172,658		196,233		172,658		196,233
Total short-term investments		410,409		486,728		410,409		486,728
Cash, cash equivalents and short-term investments	$	456,755	$	523,323	$	456,755	$	523,323

Available-for-sale debt securities

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale debt securities by type of security at December 31, 2023 were as follows (in thousands):


	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
U.S. Treasury notes	$	133,989	$	2,697	$	(21)	$	136,665
Corporate debt securities		168,592		4,067		(1)		172,658
Total available-for-sale investments	$	302,581	$	6,764	$	(22)	$	309,323

The following table summarizes the fair value of available-for-sale debt securities based on stated contractual maturities as of December 31, 2023:


	Amortized Cost		Fair Value
Due within one year	$	101,252	$	103,802
Due after one year through five years		201,329		205,521
Total	$	302,581	$	309,323

The amortized cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale debt securities by type of security at December 31, 2022 were as follows (in thousands):


	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
U.S. Treasury notes	$	199,626	$	5	$	(8,913)	$	190,718
Corporate debt securities		210,764		1,243		(15,774)		196,233
Total available-for-sale investments	$	410,390	$	1,248	$	(24,687)	$	386,951

The following table summarizes the fair value of available-for-sale debt securities based on stated contractual maturities as of December 31, 2022 (in thousands):


	Amortized Cost		Fair Value
Due within one year	$	129,568	$	126,776
Due after one year through five years		280,822		260,175
Due after five years through ten years		—		—
Total	$	410,390	$	386,951

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 debt securities 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.

The following table shows the Company’s gross unrealized losses and fair value of available-for-sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023:


	Less than 12 Months				12 Months or More				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Treasury notes	$	44,693	$	(21)	$	91,972	$	—	$	136,665	$	(21)
Corporate debt securities		9,033		(1)		163,625		—		172,658		(1)
Total	$	53,726	$	(22)	$	255,597	$	—	$	309,323	$	(22)

For U.S. Treasury notes, the unrealized losses were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider the U.S. Treasury notes to be other-than-temporarily impaired at December 31, 2023. For corporate debt securities, the unrealized losses were primarily caused by interest rate increases. The Company does not intend to sell these debt securities that are in an unrealized loss position, and it is not more likely than not that the Company will be required to sell these debt securities before recovery of their amortized cost bases, which may be at maturity. Based on the credit quality of the debt securities, and the Company’s estimates of future cash flows to be collected from those securities, the Company believes the unrealized losses are not credit losses. Accordingly, the Company does not consider the corporate debt securities to be other-than-temporarily impaired at December 31, 2023.

During the years ended December 31, 2023, 2022 and 2021, we had realized losses of $0.1 million, $0.1 million and $0.08 million on available-for-sale debt securities, respectively.

Equity Investments

We held investments in equity securities with readily determinable fair values of $101.8 million and $99.8 million at December 31, 2023 and 2022, respectively. These investments consist of mutual funds that invest primarily in tax free municipal bonds and treasury inflation protected securities.

Unrealized gains (losses) during 2023, 2022 and 2021 related to equity securities held at December 31, 2023, 2022 and 2021 are as follows (in thousands):


	Year Ended December 31,
	2023		2022			2021
Net losses recognized during the twelve months on equity securities	$	(3,764)	$	(11,406)	$	(1,386)
Less: net gains recognized during the year on equity securities sold during the year		5,072		—		—
Unrealized gains (losses) recognized during the year on equity securities still held at December 31, 2023, 2022 and 2021	$	1,308	$	(11,406)	$	(1,386)