Fair Value Measurements (Tables)

12 Months Ended

Dec. 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 December 31, 2022 and 2021:


	As of December 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)	$	259,351	$	—	$	—	$	259,351	$	202,197	$	—	$	—	$	202,197
Restricted cash(a)	14,480		—		—		14,480		9,199		—		—		9,199
Restricted investments(b)	—		91,556		—		91,556		—		84,355		—		84,355
Investments in lieu of retention(c)	20,100		68,228		—		88,328		27,472		58,856		—		86,328
Total	$	293,931	$	159,784	$	—	$	453,715	$	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 December 31, 2022 and 2021, consist of 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 December 31, 2022 and 2021, and are comprised of AFS debt securities of $68.2 million and $58.9 million, respectively, and money market funds of $20.1 million and $27.5 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 December 31, 2022 and December 31, 2021:


	As of December 31, 2022								As of December 31, 2021
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Restricted investments:
Corporate debt securities	$	53,452	$	1	$	(3,550)	$	49,903	$	46,649	$	438	$	(438)	$	46,649
U.S. government agency securities	34,920		13		(1,688)		33,245		28,316		459		(133)		28,642
Municipal bonds	9,211		—		(1,257)		7,954		8,475		100		(78)		8,497
Corporate certificates of deposit	507		—		(53)		454		571		2		(6)		567
Total restricted investments	98,090		14		(6,548)		91,556		84,011		999		(655)		84,355

Investments in lieu of retention:
Corporate debt securities	70,968		1		(3,724)		67,245		58,261		72		(741)		57,592
Municipal bonds	818		165		—		983		812		452		—		1,264
Total investments in lieu of retention	71,786		166		(3,724)		68,228		59,073		524		(741)		58,856

Total AFS debt securities	$	169,876	$	180	$	(10,272)	$	159,784	$	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 December 31, 2022 and December 31, 2021:


	As of December 31, 2022
	Less than 12 Months				12 Months or Greater				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Restricted investments:
Corporate debt securities	$	23,559	$	(733)	$	25,842	$	(2,817)	$	49,401	$	(3,550)
U.S. government agency securities	24,834		(939)		5,593		(749)		30,427		(1,688)
Municipal bonds	4,998		(672)		2,956		(585)		7,954		(1,257)
Corporate certificates of deposit	63		(12)		391		(41)		454		(53)
Total restricted investments	53,454		(2,356)		34,782		(4,192)		88,236		(6,548)

Investments in lieu of retention:
Corporate debt securities	34,553		(843)		32,391		(2,881)		66,944		(3,724)
Total investments in lieu of retention	34,553		(843)		32,391		(2,881)		66,944		(3,724)

Total AFS debt securities	$	88,007	$	(3,199)	$	67,173	$	(7,073)	$	155,180	$	(10,272)


	As of December 31, 2021
	Less than 12 Months				12 Months or Greater				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Restricted investments:
Corporate debt securities	$	28,639	$	(434)	$	207	$	(4)	$	28,846	$	(438)
U.S. government agency securities	5,382		(97)		824		(36)		6,206		(133)
Municipal bonds	2,714		(35)		907		(43)		3,621		(78)
Corporate certificates of deposit	435		(6)		—		—		435		(6)
Total restricted investments	37,170		(572)		1,938		(83)		39,108		(655)

Investments in lieu of retention:
Corporate debt securities	46,486		(736)		714		(5)		47,200		(741)
Total investments in lieu of retention	46,486		(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 December 31, 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 Cost		Fair Value

Due within one year	$	20,301	$	20,113
Due after one year through five years	138,683		130,365
Due after five years	10,892		9,306
Total	$	169,876	$	159,784