Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurement

v3.20.2
Fair Value Measurement
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurement

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.