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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
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 September 30, 2022 and December 31, 2021:
As of September 30, 2022As of December 31, 2021
Fair Value HierarchyFair Value Hierarchy
(in thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash and cash equivalents(a)
$323,200 $— $— $323,200 $202,197 $— $— $202,197 
Restricted cash(a)
21,817 — — 21,817 9,199 — — 9,199 
Restricted investments(b)
— 79,562 — 79,562 — 84,355 — 84,355 
Investments in lieu of retention(c)
23,434 58,441 — 81,875 27,472 58,856 — 86,328 
Total$368,451 $138,003 $— $506,454 $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 September 30, 2022 and December 31, 2021, consist of available-for-sale (“AFS”) debt securities, which are valued based on pricing models determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets; therefore, they are classified as Level 2 assets.
(c)Investments in lieu of retention are included in retention receivable as of September 30, 2022 and December 31, 2021, and are comprised of money market funds of $23.4 million and $27.5 million, respectively, and AFS debt securities of $58.4 million and $58.9 million, respectively. The fair values of the money market funds are measured using quoted market prices; therefore, they are classified as Level 1 assets. The fair values of AFS debt securities are determined from a compilation of primarily observable market information, broker quotes in non-active markets or similar assets; therefore, they are classified as Level 2 assets.
Schedule of Available-for-Sale Securities Reconciliation
Investments in AFS debt securities consisted of the following as of September 30, 2022 and December 31, 2021:
As of September 30, 2022As of December 31, 2021
(in thousands)Amortized CostUnrealized GainsUnrealized LossesFair ValueAmortized CostUnrealized GainsUnrealized LossesFair Value
Restricted investments:
Corporate debt securities$47,529 $22 $(3,866)$43,685 $46,649 $438 $(438)$46,649 
U.S. government agency securities29,063 — (1,756)27,307 28,316 459 (133)28,642 
Municipal bonds9,334 — (1,274)8,060 8,475 100 (78)8,497 
Corporate certificates of deposit564 — (54)510 571 2 (6)567 
Total restricted investments86,490 22 (6,950)79,562 84,011 999 (655)84,355 
Investments in lieu of retention:
Corporate debt securities61,656 — (4,143)57,513 58,261 72 (741)57,592 
Municipal bonds816 112 — 928 812 452 — 1,264 
Total investments in lieu of retention62,472 112 (4,143)58,441 59,073 524 (741)58,856 
Total AFS debt securities$148,962 $134 $(11,093)$138,003 $143,084 $1,523 $(1,396)$143,211 
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
The following table summarizes the fair value and gross unrealized losses aggregated by category and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2022 and December 31, 2021:
As of September 30, 2022
Less than 12 Months12 Months or GreaterTotal
(in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Restricted investments:
Corporate debt securities$26,673 $(1,817)$16,742 $(2,049)$43,415 $(3,866)
U.S. government agency securities22,552 (1,108)4,755 (648)27,307 (1,756)
Municipal bonds6,037 (816)2,023 (458)8,060 (1,274)
Corporate certificates of deposit118 (12)392 (42)510 (54)
Total restricted investments55,380 (3,753)23,912 (3,197)79,292 (6,950)
Investments in lieu of retention:
Corporate debt securities57,513 (4,143)— — 57,513 (4,143)
Total investments in lieu of retention57,513 (4,143)— — 57,513 (4,143)
Total AFS debt securities$112,893 $(7,896)$23,912 $(3,197)$136,805 $(11,093)
As of December 31, 2021
Less than 12 Months12 Months or GreaterTotal
(in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Restricted investments:
Corporate debt securities$28,639 $(434)$207 $(4)$28,846 $(438)
U.S. government agency securities5,382 (97)824 (36)6,206 (133)
Municipal bonds2,714 (35)907 (43)3,621 (78)
Corporate certificates of deposit435 (6)— — 435 (6)
Total restricted investments37,170 (572)1,938 (83)39,108 (655)
Investments in lieu of retention:
Corporate debt securities46,486 (736)714 (5)47,200 (741)
Total investments in lieu of retention46,486 (736)714 (5)47,200 (741)
Total AFS debt securities$83,656 $(1,308)$2,652 $(88)$86,308 $(1,396)
Investments Classified by Contractual Maturity Date
The amortized cost and fair value of AFS debt securities by contractual maturity as of September 30, 2022 are summarized in the table below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.
(in thousands)Amortized CostFair Value
Due within one year$20,553 $20,333 
Due after one year through five years117,590 108,498 
Due after five years10,819 9,172 
Total$148,962 $138,003