Fair Value Measurement

6 Months Ended

Jun. 30, 2020

Note 2 - Fair Value Measurement

The following table summarizes the Company’s investments at June 30, 2020 and December 31, 2019 measured at fair value on a recurring basis (in thousands):

	June 30, 2020							December 31, 2019
			Gross							Gross
			Unrealized							Unrealized
			Gains			Recorded				Gains			Recorded
	Cost		(Losses)			Basis		Cost		(Losses)			Basis
Current:
Cash equivalents:
Money market funds	$	58,299	$	—		$	58,299	$	35,526	$	—		$	35,526
Total cash equivalents		58,299		—			58,299		35,526		—			35,526
Investments:
Asset backed securities		36,961		(1,001	)		35,960		14,017		(13	)		14,004
Corporate bonds		20,167		499			20,666		53,493		156			53,649
U.S. government agency securities		7,402		702			8,104		7,408		282			7,690
U.S. treasuries		2,400		5			2,405		4,500		9			4,509
Mortgage backed securities		327		11			338		2,737		1			2,738
Total investments		67,257		216			67,473		82,155		435			82,590
Restricted cash and investments ⁽¹⁾:
Corporate bonds		95,827		4,506			100,333		98,481		1,931			100,412
Mortgage backed securities		56,551		2,356			58,907		62,930		837			63,767
Money market funds		32,864		10			32,874		29,046		—			29,046
Commercial paper		31,844		26			31,870		—		—			—
U.S. government agency securities		25,718		2,394			28,112		27,885		642			28,527
U.S. treasuries		6,320		46			6,366		16,906		21			16,927
Supranational bonds		4,772		56			4,828		4,770		30			4,800
Mutual funds		4,262		—			4,262		3,466		—			3,466
Municipal bonds		2,473		7			2,480		—		—			—
Asset backed securities		280		5			285		303		—			303
Total restricted cash and investments		260,911		9,406			270,317		243,787		3,461			247,248
Total investments	$	386,467	$	9,622		$	396,089	$	361,468	$	3,896		$	365,364

(1) Included in restricted cash and investments within the condensed consolidated balance sheet is restricted cash of $51.3 million and $197.0 million as of June 30, 2020 and December 31, 2019, respectively, which is excluded from the table above. Restricted cash and investments are classified as current and noncurrent on the balance sheet based on the nature of the restriction.

The following table summarizes the Company’s investments at June 30, 2020 and December 31, 2019 measured at fair value on a recurring basis by fair value hierarchy level (in thousands):

	June 30, 2020										December 31, 2019
	Total										Total
	Recorded										Recorded
	Basis		Level 1		Level 2		Level 3		Other ⁽¹⁾		Basis		Level 1		Level 2		Level 3		Other ⁽¹⁾
Cash equivalents:
Money market funds	$	58,299	$	—	$	—	$	—	$	58,299	$	35,526	$	—	$	—	$	—	$	35,526
Investments:
Asset backed securities		35,960		—		35,960		—		—		14,004		—		14,004		—		—
Corporate bonds		20,666		—		20,666		—		—		53,649		—		53,649		—		—
U.S. government agency securities		8,104		—		8,104		—		—		7,690		—		7,690		—		—
U.S. treasuries		2,405		—		2,405		—		—		4,509		—		4,509		—		—
Mortgage backed securities		338		—		338		—		—		2,738		—		2,738		—		—
Restricted cash and investments:
Corporate bonds		100,333		—		100,333		—		—		100,412		—		100,412		—		—
Mortgage backed securities		58,907		—		58,907		—		—		63,767		—		63,767		—		—
Money market funds		32,874		—		—		—		32,874		29,046		—		—		—		29,046
Commercial paper		31,870		—		31,870		—		—		—		—		—		—		—
U.S. government agency securities		28,112		—		28,112		—		—		28,527		—		28,527		—		—
U.S. treasuries		6,366		—		6,366		—		—		16,927		—		16,927		—		—
Supranational bonds		4,828		—		4,828		—		—		4,800		—		4,800		—		—
Mutual funds		4,262		4,262		—		—		—		3,466		3,466		—		—		—
Municipal bonds		2,480		—		2,480		—				—		—		—		—		—
Asset backed securities		285		—		285		—		—		303		—		303		—		—
Total investments	$	396,089	$	4,262	$	300,654	$	—	$	91,173	$	365,364	$	3,466	$	297,326	$	—	$	64,572

(1) Investments in money market funds measured at fair value using the net asset value per share practical expedient are not subject to hierarchy level classification disclosure. The Company invests in money market funds that seek to maintain a stable net asset value. These investments include commingled funds that comprise high-quality short-term securities representing liquid debt and monetary instruments where the redemption value is likely to be the fair value. Redemption is permitted daily without written notice.

The following table summarizes the contractual maturities of the Company’s available-for-sale securities at June 30, 2020. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	June 30, 2020
(In thousands)	Less than 1 Year		Between 1 to 5 Years		Between 5 to 10 Years		After 10 Years		Total
Corporate bonds	$	29,891	$	63,851	$	27,257	$	—	$	120,999
Money market funds		91,173		—		—		—		91,173
Asset backed securities		—		298		—		35,947		36,245
U.S. government agency securities		—		12,195		24,021		—		36,216
Commercial paper		31,870		—		—		—		31,870
U.S. treasuries		7,747		1,024		—		—		8,771
Supranational bonds		4,828		—		—		—		4,828
Municipal bonds		—		2,480		—		—		2,480
Total	$	165,509	$	79,848	$	51,278	$	35,947	$	332,582

The average contractual maturity of mortgage backed securities was 17 years as of June 30, 2020 which is excluded from the table above.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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