Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of 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, 2023 and December 31, 2022:


	As of March 31, 2023								As of December 31, 2022
	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)	$	282,695	$	—	$	—	$	282,695	$	259,351	$	—	$	—	$	259,351
Restricted cash(a)	19,946		—		—		19,946		14,480		—		—		14,480
Restricted investments(b)	—		88,240		—		88,240		—		91,556		—		91,556
Investments in lieu of retention(c)	23,177		67,299		—		90,476		20,100		68,228		—		88,328
Total	$	325,818	$	155,539	$	—	$	481,357	$	293,931	$	159,784	$	—	$	453,715

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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, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022, and are comprised of money market funds of $23.2 million and $20.1 million, respectively, and AFS debt securities of $67.3 million and $68.2 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 March 31, 2023 and December 31, 2022:


	As of March 31, 2023								As of December 31, 2022
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Restricted investments:
Corporate debt securities	$	52,027	$	22	$	(3,045)	$	49,004	$	53,452	$	1	$	(3,550)	$	49,903
U.S. government agency securities	32,099		43		(1,379)		30,763		34,920		13		(1,688)		33,245
Municipal bonds	9,039		—		(1,017)		8,022		9,211		—		(1,257)		7,954
Corporate certificates of deposit	504		—		(53)		451		507		—		(53)		454
Total restricted investments	93,669		65		(5,494)		88,240		98,090		14		(6,548)		91,556

Investments in lieu of retention:
Corporate debt securities	69,458		31		(3,219)		66,270		70,968		1		(3,724)		67,245
Municipal bonds	819		210		—		1,029		818		165		—		983
Total investments in lieu of retention	70,277		241		(3,219)		67,299		71,786		166		(3,724)		68,228

Total AFS debt securities	$	163,946	$	306	$	(8,713)	$	155,539	$	169,876	$	180	$	(10,272)	$	159,784

Schedule of 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 March 31, 2023 and December 31, 2022:


	As of March 31, 2023
	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	$	11,456	$	(204)	$	32,499	$	(2,841)	$	43,955	$	(3,045)
U.S. government agency securities	13,782		(154)		14,194		(1,225)		27,976		(1,379)
Municipal bonds	737		(23)		7,285		(994)		8,022		(1,017)
Corporate certificates of deposit	—		—		451		(53)		451		(53)
Total restricted investments	25,975		(381)		54,429		(5,113)		80,404		(5,494)

Investments in lieu of retention:
Corporate debt securities	13,065		(146)		46,350		(3,073)		59,415		(3,219)
Total investments in lieu of retention	13,065		(146)		46,350		(3,073)		59,415		(3,219)

Total AFS debt securities	$	39,040	$	(527)	$	100,779	$	(8,186)	$	139,819	$	(8,713)


	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)

Schedule of Investments Classified by Contractual Maturity Date

The amortized cost and fair value of AFS debt securities by contractual maturity as of March 31, 2023 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	$	25,973	$	25,531
Due after one year through five years	127,355		120,639
Due after five years	10,618		9,369
Total	$	163,946	$	155,539