Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurement

v3.19.3
Fair Value Measurement
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurement

Note 2 - Fair Value Measurement

The following table summarizes the Company’s investments at September 30, 2019 and December 31, 2018 measured at fair value on a recurring basis (in thousands):

 

 

 

September 30, 2019

 

 

December 31, 2018

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

Gains

 

 

Recorded

 

 

 

 

 

 

Gains

 

 

Recorded

 

 

 

Cost

 

 

(Losses)

 

 

Basis

 

 

Cost

 

 

(Losses)

 

 

Basis

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

6,121

 

 

$

 

 

$

6,121

 

 

$

30

 

 

$

 

 

$

30

 

Total cash equivalents

 

 

6,121

 

 

 

 

 

 

6,121

 

 

 

30

 

 

 

 

 

 

30

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

70,922

 

 

 

36

 

 

 

70,958

 

 

 

20

 

 

 

 

 

 

20

 

U.S. treasuries

 

 

18,642

 

 

 

(27

)

 

 

18,615

 

 

 

347

 

 

 

 

 

 

347

 

U.S. government agency securities

 

 

8,910

 

 

 

313

 

 

 

9,223

 

 

 

50

 

 

 

(1

)

 

 

49

 

Mortgage backed securities

 

 

2,943

 

 

 

(8

)

 

 

2,935

 

 

 

 

 

 

 

 

 

 

Asset backed securities

 

 

17

 

 

 

 

 

 

17

 

 

 

 

 

 

 

 

 

 

Total current investments

 

 

101,434

 

 

 

314

 

 

 

101,748

 

 

 

417

 

 

 

(1

)

 

 

416

 

Long term:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

 

 

 

 

 

 

 

 

 

 

794

 

 

 

(3

)

 

 

791

 

Mortgage backed securities

 

 

 

 

 

 

 

 

 

 

 

484

 

 

 

(13

)

 

 

471

 

Corporate bonds

 

 

 

 

 

 

 

 

 

 

 

422

 

 

 

(7

)

 

 

415

 

Asset backed securities

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

Total long term investments

 

 

 

 

 

 

 

 

 

 

 

1,710

 

 

 

(23

)

 

 

1,687

 

Restricted cash and investments (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

101,533

 

 

 

1,793

 

 

 

103,326

 

 

 

185,116

 

 

 

(3,739

)

 

 

181,377

 

Mortgage backed securities

 

 

66,012

 

 

 

507

 

 

 

66,519

 

 

 

89,426

 

 

 

(2,026

)

 

 

87,400

 

U.S. government agency securities

 

 

29,780

 

 

 

947

 

 

 

30,727

 

 

 

45,548

 

 

 

(908

)

 

 

44,640

 

Money market funds

 

 

19,085

 

 

 

(2

)

 

 

19,083

 

 

 

419

 

 

 

 

 

 

419

 

U.S. treasuries

 

 

18,397

 

 

 

24

 

 

 

18,421

 

 

 

44,304

 

 

 

(283

)

 

 

44,021

 

Supranational bonds

 

 

4,769

 

 

 

33

 

 

 

4,802

 

 

 

4,765

 

 

 

(24

)

 

 

4,741

 

Mutual funds

 

 

2,844

 

 

 

 

 

 

2,844

 

 

 

1,093

 

 

 

 

 

 

1,093

 

Asset backed securities

 

 

116

 

 

 

1

 

 

 

117

 

 

 

75

 

 

 

(1

)

 

 

74

 

Municipal bonds

 

 

50

 

 

 

 

 

 

50

 

 

 

50

 

 

 

 

 

 

50

 

Total restricted cash and investments

 

 

242,586

 

 

 

3,303

 

 

 

245,889

 

 

 

370,796

 

 

 

(6,981

)

 

 

363,815

 

Total investments

 

$

350,141

 

 

$

3,617

 

 

$

353,758

 

 

$

372,953

 

 

$

(7,005

)

 

$

365,948

 

 

(1) Included in restricted cash and investments within the condensed consolidated balance sheet is restricted cash of $173.7 million and $104.5 million as of September 30, 2019 and December 31, 2018, 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 September 30, 2019 and December 31, 2018 measured at fair value on a recurring basis by fair value hierarchy level (in thousands):

 

 

 

September 30, 2019

 

 

December 31, 2018

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis

 

 

Level 1

 

 

Level 2

 

 

Other (1)

 

 

Basis

 

 

Level 1

 

 

Level 2

 

 

Other (1)

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

6,121

 

 

$

 

 

$

 

 

$

6,121

 

 

$

30

 

 

$

 

 

$

 

 

$

30

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

70,958

 

 

 

 

 

 

70,958

 

 

 

 

 

 

435

 

 

 

 

 

 

435

 

 

 

 

U.S. treasuries

 

 

18,615

 

 

 

 

 

 

18,615

 

 

 

 

 

 

1,138

 

 

 

 

 

 

1,138

 

 

 

 

U.S. government

   agency securities

 

 

9,223

 

 

 

 

 

 

9,223

 

 

 

 

 

 

49

 

 

 

 

 

 

49

 

 

 

 

Mortgage backed

   securities

 

 

2,935

 

 

 

 

 

 

2,935

 

 

 

 

 

 

471

 

 

 

 

 

 

471

 

 

 

 

Asset backed

   securities

 

 

17

 

 

 

 

 

 

17

 

 

 

 

 

 

10

 

 

 

 

 

 

10

 

 

 

 

Restricted cash and investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

103,326

 

 

 

 

 

 

103,326

 

 

 

 

 

 

181,377

 

 

 

 

 

 

181,377

 

 

 

 

Mortgage backed

   securities

 

 

66,519

 

 

 

 

 

 

66,519

 

 

 

 

 

 

87,400

 

 

 

 

 

 

87,400

 

 

 

 

U.S. government

   agency securities

 

 

30,727

 

 

 

 

 

 

30,727

 

 

 

 

 

 

44,640

 

 

 

 

 

 

44,640

 

 

 

 

Money market funds

 

 

19,083

 

 

 

 

 

 

 

 

 

19,083

 

 

 

419

 

 

 

 

 

 

 

 

 

419

 

U.S. treasuries

 

 

18,421

 

 

 

 

 

 

18,421

 

 

 

 

 

 

44,021

 

 

 

 

 

 

44,021

 

 

 

 

Supranational bonds

 

 

4,802

 

 

 

 

 

 

4,802

 

 

 

 

 

 

4,741

 

 

 

 

 

 

4,741

 

 

 

 

Mutual funds

 

 

2,844

 

 

 

2,844

 

 

 

 

 

 

 

 

 

1,093

 

 

 

1,093

 

 

 

 

 

 

 

Asset backed

   securities

 

 

117

 

 

 

 

 

 

117

 

 

 

 

 

 

74

 

 

 

 

 

 

74

 

 

 

 

Municipal bonds

 

 

50

 

 

 

 

 

 

50

 

 

 

 

 

 

50

 

 

 

 

 

 

50

 

 

 

 

Total investments

 

$

353,758

 

 

$

2,844

 

 

$

325,710

 

 

$

25,204

 

 

$

365,948

 

 

$

1,093

 

 

$

364,406

 

 

$

449

 


(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 September 30, 2019. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

 

 

September 30, 2019

 

(In thousands)

Less than 1 Year

 

 

Between 1 to 5 Years

 

 

Between 5 to 10 Years

 

 

After 10 Years

 

 

Total

 

Corporate bonds

$

30,040

 

 

$

122,786

 

 

$

21,458

 

 

$

 

 

$

174,284

 

U.S. government agency securities

 

5,499

 

 

 

6,443

 

 

 

28,008

 

 

 

 

 

$

39,950

 

U.S. treasuries

 

36,232

 

 

 

804

 

 

 

 

 

 

 

 

$

37,036

 

Money market funds

 

25,204

 

 

 

 

 

 

 

 

 

 

 

$

25,204

 

Supranational bonds

 

 

 

 

4,802

 

 

 

 

 

 

 

 

$

4,802

 

Asset backed securities

 

 

 

 

134

 

 

 

 

 

 

 

 

$

134

 

Municipal bonds

 

50

 

 

 

 

 

 

 

 

 

 

 

$

50

 

Total

$

97,025

 

 

$

134,969

 

 

$

49,466

 

 

$

-

 

 

$

281,460

 

 

The average contractual maturity of mortgage backed securities was 17 years as of September 30, 2019.