Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurement (Tables)

v3.20.2
Fair Value Measurement (Tables)
9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Summary of Investments Measured at Fair Value on Recurring Basis

The following table summarizes the Company’s investments at September 30, 2020 and December 31, 2019 measured at fair value on a recurring basis (in thousands):

 

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

Gains

 

 

Recorded

 

 

 

 

 

 

Gains

 

 

Recorded

 

 

 

Cost

 

 

(Losses)

 

 

Basis

 

 

Cost

 

 

(Losses)

 

 

Basis

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

32,723

 

 

$

 

 

$

32,723

 

 

$

35,526

 

 

$

 

 

$

35,526

 

Discount notes

 

 

9,998

 

 

 

1

 

 

 

9,999

 

 

 

 

 

 

 

 

 

 

Total cash equivalents

 

 

42,721

 

 

 

1

 

 

 

42,722

 

 

 

35,526

 

 

 

 

 

 

35,526

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

36,732

 

 

 

558

 

 

 

37,290

 

 

 

53,493

 

 

 

156

 

 

 

53,649

 

Asset backed securities

 

 

36,950

 

 

 

(330

)

 

 

36,620

 

 

 

14,017

 

 

 

(13

)

 

 

14,004

 

U.S. government agency securities

 

 

7,399

 

 

 

791

 

 

 

8,190

 

 

 

7,408

 

 

 

282

 

 

 

7,690

 

Mortgage backed securities

 

 

4,465

 

 

 

13

 

 

 

4,478

 

 

 

2,737

 

 

 

1

 

 

 

2,738

 

U.S. treasuries

 

 

100

 

 

 

1

 

 

 

101

 

 

 

4,500

 

 

 

9

 

 

 

4,509

 

Total investments

 

 

85,646

 

 

 

1,033

 

 

 

86,679

 

 

 

82,155

 

 

 

435

 

 

 

82,590

 

Restricted cash and investments (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

95,881

 

 

 

4,461

 

 

 

100,342

 

 

 

98,481

 

 

 

1,931

 

 

 

100,412

 

Mortgage backed securities

 

 

52,650

 

 

 

2,481

 

 

 

55,131

 

 

 

62,930

 

 

 

837

 

 

 

63,767

 

Money market funds

 

 

32,879

 

 

 

3

 

 

 

32,882

 

 

 

29,046

 

 

 

 

 

 

29,046

 

U.S. government agency securities

 

 

25,697

 

 

 

2,514

 

 

 

28,211

 

 

 

27,885

 

 

 

642

 

 

 

28,527

 

Commercial paper

 

 

5,998

 

 

 

1

 

 

 

5,999

 

 

 

 

 

 

 

 

 

 

Supranational bonds

 

 

4,773

 

 

 

29

 

 

 

4,802

 

 

 

4,770

 

 

 

30

 

 

 

4,800

 

U.S. treasuries

 

 

4,760

 

 

 

31

 

 

 

4,791

 

 

 

16,906

 

 

 

21

 

 

 

16,927

 

Mutual funds

 

 

4,712

 

 

 

 

 

 

4,712

 

 

 

3,466

 

 

 

 

 

 

3,466

 

Municipal bonds

 

 

4,062

 

 

 

14

 

 

 

4,076

 

 

 

 

 

 

 

 

 

 

Asset backed securities

 

 

270

 

 

 

5

 

 

 

275

 

 

 

303

 

 

 

 

 

 

303

 

Total restricted cash and investments

 

 

231,682

 

 

 

9,539

 

 

 

241,221

 

 

 

243,787

 

 

 

3,461

 

 

 

247,248

 

Total investments

 

$

360,049

 

 

$

10,573

 

 

$

370,622

 

 

$

361,468

 

 

$

3,896

 

 

$

365,364

 

 

(1) Included in restricted cash and investments within the condensed consolidated balance sheets is restricted cash of $94.4 million and $197.0 million as of September 30, 2020 and December 31, 2019, respectively, which is excluded from the table above. Restricted cash and investments are classified as current and noncurrent on the balance sheets based on the nature of the restriction.

Summary of Assets Measured at Fair Value on Recurring Basis

The following table summarizes the Company’s investments at September 30, 2020 and December 31, 2019 measured at fair value on a recurring basis by fair value hierarchy level (in thousands):

 

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

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

 

$

32,723

 

 

$

 

 

$

 

 

$

 

 

$

32,723

 

 

$

35,526

 

 

$

 

 

$

 

 

$

 

 

$

35,526

 

Discount notes

 

 

9,999

 

 

 

 

 

 

9,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

37,290

 

 

 

 

 

 

37,290

 

 

 

 

 

 

 

 

 

53,649

 

 

 

 

 

 

53,649

 

 

 

 

 

 

 

Asset backed

     securities

 

 

36,620

 

 

 

 

 

 

36,620

 

 

 

 

 

 

 

 

 

14,004

 

 

 

 

 

 

14,004

 

 

 

 

 

 

 

U.S. government

     agency

     securities

 

 

8,190

 

 

 

 

 

 

8,190

 

 

 

 

 

 

 

 

 

7,690

 

 

 

 

 

 

7,690

 

 

 

 

 

 

 

Mortgage backed

     securities

 

 

4,478

 

 

 

 

 

 

4,478

 

 

 

 

 

 

 

 

 

2,738

 

 

 

 

 

 

2,738

 

 

 

 

 

 

 

U.S. treasuries

 

 

101

 

 

 

 

 

 

101

 

 

 

 

 

 

 

 

 

4,509

 

 

 

 

 

 

4,509

 

 

 

 

 

 

 

Restricted cash and investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

100,342

 

 

 

 

 

 

100,342

 

 

 

 

 

 

 

 

 

100,412

 

 

 

 

 

 

100,412

 

 

 

 

 

 

 

Mortgage backed

     securities

 

 

55,131

 

 

 

 

 

 

55,131

 

 

 

 

 

 

 

 

 

63,767

 

 

 

 

 

 

63,767

 

 

 

 

 

 

 

Money market

     funds

 

 

32,882

 

 

 

 

 

 

 

 

 

 

 

 

32,882

 

 

 

29,046

 

 

 

 

 

 

 

 

 

 

 

 

29,046

 

U.S. government

     agency

     securities

 

 

28,211

 

 

 

 

 

 

28,211

 

 

 

 

 

 

 

 

 

28,527

 

 

 

 

 

 

28,527

 

 

 

 

 

 

 

Commercial paper

 

 

5,999

 

 

 

 

 

 

5,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supranational

     bonds

 

 

4,802

 

 

 

 

 

 

4,802

 

 

 

 

 

 

 

 

 

4,800

 

 

 

 

 

 

4,800

 

 

 

 

 

 

 

U.S. treasuries

 

 

4,791

 

 

 

 

 

 

4,791

 

 

 

 

 

 

 

 

 

16,927

 

 

 

 

 

 

16,927

 

 

 

 

 

 

 

Mutual funds

 

 

4,712

 

 

 

4,712

 

 

 

 

 

 

 

 

 

 

 

 

3,466

 

 

 

3,466

 

 

 

 

 

 

 

 

 

 

Municipal bonds

 

 

4,076

 

 

 

 

 

 

4,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset backed

     securities

 

 

275

 

 

 

 

 

 

275

 

 

 

 

 

 

 

 

 

303

 

 

 

 

 

 

303

 

 

 

 

 

 

 

Total investments

 

$

370,622

 

 

$

4,712

 

 

$

300,305

 

 

$

 

 

$

65,605

 

 

$

365,364

 

 

$

3,466

 

 

$

297,326

 

 

$

 

 

$

64,572

 

 

(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.

Summary of Contractual Maturities of Available for Sale Securities

The following table summarizes the contractual maturities of the Company’s available-for-sale securities at September 30, 2020. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

 

 

September 30, 2020

 

(In thousands)

Less than 1 Year

 

 

Between 1 to 5 Years

 

 

Between 5 to 10 Years

 

 

After 10 Years

 

 

Total

 

Corporate bonds

$

41,077

 

 

$

62,479

 

 

$

34,076

 

 

$

 

 

$

137,632

 

Money market funds

 

65,605

 

 

 

 

 

 

 

 

 

 

 

 

65,605

 

Asset backed securities

 

 

 

 

286

 

 

 

 

 

 

36,609

 

 

 

36,895

 

U.S. government agency securities

 

1,018

 

 

 

14,646

 

 

 

20,737

 

 

 

 

 

 

36,401

 

Discount notes

 

9,999

 

 

 

 

 

 

 

 

 

 

 

 

9,999

 

Commercial paper

 

5,999

 

 

 

 

 

 

 

 

 

 

 

 

5,999

 

U.S. treasuries

 

3,330

 

 

 

1,562

 

 

 

 

 

 

 

 

 

4,892

 

Supranational bonds

 

4,802

 

 

 

 

 

 

 

 

 

 

 

 

4,802

 

Municipal bonds

 

 

 

 

4,076

 

 

 

 

 

 

 

 

 

4,076

 

Total

$

131,830

 

 

$

83,049

 

 

$

54,813

 

 

$

36,609

 

 

$

306,301