Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v3.19.1
FAIR VALUE MEASUREMENTS
3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS

As of March 31, 2019, cash and cash equivalents include the Company’s investments in debt securities, comprising municipal notes and bonds and corporate debt, commercial paper, money market funds and time deposits. The Company considers all highly liquid investments with original maturities of three months or less when purchased and have insignificant interest rate risk to be cash equivalents.  Debt securities classified as cash equivalents are required to be accounted for in accordance with the FASB Accounting Standards Codification (“ASC”) 320, Investments - Debt and Equity Securities. As such, the Company determined its investments in debt securities held at March 31, 2019 should be classified as available-for-sale and are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income in stockholders’ equity. The cost of debt securities is adjusted for amortization of premiums and discounts to maturity. This amortization is included in other income. Realized gains and losses, as well as interest income, are also included in other income. The fair values of securities are based on quoted market prices.

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents and accounts payable, approximate fair value because of their short maturities. The carrying amount of the noncurrent restricted cash approximates fair value since, absent the restrictions, the underlying assets would be included in cash and cash equivalents.
 
Accounting standards permit companies, at their option, to choose to measure many financial instruments and certain other items at fair value.  The Company has elected to not fair value existing eligible items.

Available-for-sale investments included in cash equivalents at the end of each period were as follows (in thousands):
 
March 31, 2019
 
December 31, 2018
 
Adjusted Cost
 
Gross Unrealized Losses
 
Fair Value
 
Adjusted Cost
 
Gross Unrealized Losses
 
Fair Value
Municipal bonds and notes
$
4,188

 
$

 
$
4,188

 
$
12,149

 
$
(7
)
 
$
12,142

Corporate debt securities
48,535

 
(16
)
 
48,519

 
51,862

 
(26
)
 
51,836

Financial institution instruments
33,270

 

 
33,270

 
21,352

 

 
21,352

Total available-for-sale investments
$
85,993

 
$
(16
)
 
$
85,977

 
$
85,363

 
$
(33
)
 
$
85,330


 
Financial institution instruments include instruments issued or managed by financial institutions such as money market fund deposits and time deposits.

FASB Topic 820, Fair Value Measurements, establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.

The tables below present the Company’s hierarchy for assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018.

 
March 31, 2019
 
Level 1
 
Level 2
 
Level 3
 
Total
Amounts included in cash and cash equivalents
$
85,977

 
$

 
$

 
$
85,977

Total assets measured at fair value on a recurring basis
$
85,977

 
$

 
$

 
$
85,977


 
December 31, 2018
 
Level 1
 
Level 2
 
Level 3
 
Total
Amounts included in cash and cash equivalents
$
85,330

 
$

 
$

 
$
85,330

Total assets measured at fair value on a recurring basis
$
85,330

 
$

 
$

 
$
85,330