XML 20 R9.htm IDEA: XBRL DOCUMENT v3.20.2
Fair Value Measurements
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements

2. Fair Value Measurements

The carrying amounts of cash equivalents, prepaid and other assets, accounts payable and accrued liabilities are considered to be representative of their respective fair values because of the short-term nature of those instruments. Based on the borrowing rates currently available to us for loans with similar terms, which is considered a Level 2 input, we believe that the carrying value of our long-term debt approximates their fair value. Investment securities are recorded at fair value.

The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets.

Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly.

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Financial assets measured at fair value on a recurring basis consist of investment securities. Investment securities are recorded at fair value, defined as the exit price in the principal market in which we would transact, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Level 2 securities are valued using quoted market prices for similar instruments, non-binding market prices that are corroborated by observable market data, or discounted cash flow techniques and include our investments in corporate debt securities and commercial paper. We have no financial liabilities measured at fair value on a recurring basis. None of our non-financial assets and liabilities is recorded at fair value on a non-recurring basis. No transfers between levels have occurred during the periods presented.

Assets measured at fair value on a recurring basis are as follows (in thousands):

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

 

Total

 

 

Quoted Prices in

Active Markets

for Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

As of June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

20,851

 

 

$

20,851

 

 

$

 

 

$

 

Available-for-sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed securities

 

 

2,221

 

 

 

 

 

 

2,221

 

 

 

 

Commercial paper

 

 

7,475

 

 

 

 

 

 

7,475

 

 

 

 

Corporate debt securities

 

 

8,107

 

 

 

 

 

 

8,107

 

 

 

 

United States Treasury

 

 

1,999

 

 

 

 

 

 

1,999

 

 

 

 

Total available-for-sale investments

 

 

19,802

 

 

 

 

 

 

19,802

 

 

 

 

Total assets measured at fair value

 

$

40,653

 

 

$

20,851

 

 

$

19,802

 

 

$

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

 

Total

 

 

Quoted Prices in

Active Markets

for Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

8,248

 

 

$

8,248

 

 

$

 

 

$

 

Available-for-sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed securities

 

 

6,304

 

 

 

 

 

 

6,304

 

 

 

 

Commercial paper

 

 

7,568

 

 

 

 

 

 

7,568

 

 

 

 

Corporate debt securities

 

 

8,062

 

 

 

 

 

 

8,062

 

 

 

 

Total available-for-sale investments

 

 

21,934

 

 

 

 

 

 

21,934

 

 

 

 

Total assets measured at fair value

 

$

30,182

 

 

$

8,248

 

 

$

21,934

 

 

$

 

As of June 30, 2020 and December 31, 2019, available-for-sale investments are detailed as follows (in thousands):

 

 

 

June 30, 2020

 

 

 

Gross

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Market Value

 

Available-for-sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed securities

 

$

2,219

 

 

$

2

 

 

$

 

 

$

2,221

 

Commercial paper

 

 

7,475

 

 

 

 

 

 

 

 

 

7,475

 

Corporate debt securities

 

 

8,103

 

 

 

5

 

 

 

(1

)

 

 

8,107

 

United States Treasury

 

 

1,999

 

 

 

 

 

 

 

 

 

1,999

 

 

 

$

19,796

 

 

$

7

 

 

$

(1

)

 

$

19,802

 

 

 

 

December 31, 2019

 

 

 

Gross

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Market Value

 

Available-for-sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed securities

 

$

6,299

 

 

$

5

 

 

$

 

 

$

6,304

 

Commercial paper

 

 

7,568

 

 

 

 

 

 

 

 

 

7,568

 

Corporate debt securities

 

 

8,057

 

 

 

5

 

 

 

 

 

 

8,062

 

 

 

$

21,924

 

 

$

10

 

 

$

 

 

$

21,934

 

 

As of June 30, 2020, all of our available-for-sale investments have a variety of effective maturity dates of less than one year. As of June 30, 2020, four out of seventeen of the available-for-sale investments are in gross unrealized loss positions.

At each reporting date, we perform an evaluation of impairment to determine if any unrealized losses are other-than-temporary. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition of the issuer, and our intent and ability to hold the investment until recovery of its amortized cost basis. We intend, and have the ability, to hold our investments in unrealized loss positions, if any, until their amortized cost basis has been recovered.