Annual report pursuant to Section 13 and 15(d)

Fair Value Measurement

Fair Value Measurement
12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Disclosures Fair Value Measurement
The Company's financial instruments consist primarily of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities. The Company has determined the carrying values of these financial instruments approximate their fair value because of the relatively short period to maturity of the instruments. Estimated fair values of available-for-sale debt securities are generally based on prices obtained from commercial pricing services.
In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from sources independent from the Company) and to minimize the use of unobservable inputs (the Company’s assumptions about how market participants would price assets and liabilities). As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows:

Level 1 - Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
Level 3 - Unobservable inputs that reflect the reporting entity’s own assumptions.

The Company's Level 1 instruments include cash and cash equivalents and short-term investments that are valued using quoted market prices. Level 2 instruments include the Company's short and long term investments that are valued through third-party pricing services that use verifiable observable market data.
There were no transfers between Level 1, Level 2 and Level 3 in the periods presented.
The following tables summarize the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy:
December 31, 2020
(in thousands) Level 1 Level 2 Level 3 Total
Cash and cash equivalents:
Deposits held with banks $ 130,807  $   $   $ 130,807 
Short-term highly liquid investments 141,543      141,543 
Investments 69,746  80,613  150,359 
342,096  80,613    422,709 
December 31, 2019
(in thousands) Level 1 Level 2 Level 3 Total
Cash and cash equivalents:
Deposits held with banks $ 286,019  $ —  $ —  286,019 
Short-term highly liquid investments 20,000  —  —  20,000 
Investments —  — 
306,019  —  —  306,019