Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024 and December 31, 2023:


	As of March 31, 2024								As of December 31, 2023
	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)	$	358,304	$	—	$	—	$	358,304	$	380,564	$	—	$	—	$	380,564
Restricted cash(a)	14,749		—		—		14,749		14,116		—		—		14,116
Restricted investments(b)	—		130,499		—		130,499		—		130,287		—		130,287
Investments in lieu of retention(c)	28,342		87,614		—		115,956		19,988		86,961		—		106,949
Total	$	401,395	$	218,113	$	—	$	619,508	$	414,668	$	217,248	$	—	$	631,916

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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, 2024 and December 31, 2023, 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, 2024 and December 31, 2023, and are composed of money market funds of $28.3 million and $20.0 million, respectively, and AFS debt securities of $87.6 million and $87.0 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, 2024 and December 31, 2023:


	As of March 31, 2024								As of December 31, 2023
(in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Restricted investments:
Corporate debt securities	$	101,568	$	395	$	(2,257)	$	99,706	$	95,903	$	762	$	(2,202)	$	94,463
U.S. government agency securities	24,380		4		(1,050)		23,334		29,082		18		(1,054)		28,046
Municipal bonds	7,899		4		(908)		6,995		8,227		5		(914)		7,318
Corporate certificates of deposit	495		—		(31)		464		498		—		(38)		460
Total restricted investments	134,342		403		(4,246)		130,499		133,710		785		(4,208)		130,287

Investments in lieu of retention:
Corporate debt securities	88,134		105		(1,682)		86,557		87,601		246		(1,950)		85,897
Municipal bonds	824		233		—		1,057		823		241		—		1,064
Total investments in lieu of retention	88,958		338		(1,682)		87,614		88,424		487		(1,950)		86,961

Total AFS debt securities	$	223,300	$	741	$	(5,928)	$	218,113	$	222,134	$	1,272	$	(6,158)	$	217,248

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, 2024 and December 31, 2023:


	As of March 31, 2024
	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	$	22,242	$	(123)	$	37,507	$	(2,134)	$	59,749	$	(2,257)
U.S. government agency securities	3,333		(24)		14,869		(1,026)		18,202		(1,050)
Municipal bonds	—		—		6,814		(908)		6,814		(908)
Corporate certificates of deposit	—		—		465		(31)		465		(31)
Total restricted investments	25,575		(147)		59,655		(4,099)		85,230		(4,246)

Investments in lieu of retention:
Corporate debt securities	24,714		(125)		45,925		(1,557)		70,639		(1,682)
Total investments in lieu of retention	24,714		(125)		45,925		(1,557)		70,639		(1,682)

Total AFS debt securities	$	50,289	$	(272)	$	105,580	$	(5,656)	$	155,869	$	(5,928)


	As of December 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	$	4,971	$	(3)	$	40,649	$	(2,199)	$	45,620	$	(2,202)
U.S. government agency securities	1,280		(4)		22,858		(1,050)		24,138		(1,054)
Municipal bonds	99		(2)		7,038		(912)		7,137		(914)
Corporate certificates of deposit	—		—		460		(38)		460		(38)
Total restricted investments	6,350		(9)		71,005		(4,199)		77,355		(4,208)

Investments in lieu of retention:
Corporate debt securities	11,398		(55)		49,726		(1,895)		61,124		(1,950)
Total investments in lieu of retention	11,398		(55)		49,726		(1,895)		61,124		(1,950)

Total AFS debt securities	$	17,748	$	(64)	$	120,731	$	(6,094)	$	138,479	$	(6,158)

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, 2024 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	$	38,792	$	38,009
Due after one year through five years	174,478		171,095
Due after five years	10,030		9,009
Total	$	223,300	$	218,113