Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following fair value hierarchy table presents the Company’s assets that are measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021:


	As of March 31, 2022								As of December 31, 2021
	Fair Value Hierarchy								Fair Value Hierarchy
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents(a)	$	316,499	$	—	$	—	$	316,499	$	202,197	$	—	$	—	$	202,197
Restricted cash(a)	4,870		—		—		4,870		9,199		—		—		9,199
Restricted investments(b)	—		85,075		—		85,075		—		84,355		—		84,355
Investments in lieu of retention(c)	25,949		59,610		—		85,559		27,472		58,856		—		86,328
Total	$	347,318	$	144,685	$	—	$	492,003	$	238,868	$	143,211	$	—	$	382,079

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(a)Includes money market funds and short-term investments with maturity dates of three months or less when acquired.

(b)Restricted investments, as of March 31, 2022, consist of investments in corporate debt securities of $46.0 million, U.S. government agency securities of $38.6 million and corporate certificates of deposits of $0.5 million with maturities of up to five years, and are valued based on pricing models, which are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets and are therefore classified as Level 2 assets. As of December 31, 2021, restricted investments consisted of investments in corporate debt securities of $46.7 million, U.S. government agency securities of $37.1 million and corporate certificates of deposits of $0.6 million with maturities of up to five years. The amortized cost of these available-for-sale securities at March 31, 2022 and December 31, 2021 was not materially different from the fair value.

(c)Investments in lieu of retention are included in retention receivable and as of March 31, 2022 are comprised of corporate debt securities of $58.6 million, money market funds of $25.9 million and municipal bonds of $1.1 million. The fair values of the money market funds are measured using quoted market prices; therefore, they are classified as Level 1 assets. The corporate and municipal bonds have maturity periods up to five years, and their fair values are determined from a compilation of primarily observable market information, third-party quoted market prices, broker quotes in non-active markets or similar assets; therefore, they are classified as Level 2 assets. As of December 31, 2021, investments in lieu of retention consisted of corporate debt securities of $57.5 million, money market funds of $27.5 million and municipal bonds of $1.3 million. The amortized cost of these available-for-sale securities at March 31, 2022 and December 31, 2021 was not materially different from the fair value.