Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.21.2
Fair Value Measurements
9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company's financial instruments consist primarily of cash and cash equivalents, investments, accounts receivable, accounts payable and accrued liabilities. The carrying value of accounts receivable, accounts payable and accrued liabilities approximate their fair value because of their short-term nature. Estimated fair values of held to maturity and 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 deposits held with banks 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. The Company has no Level 3 instruments as of September 30, 2021 and December 31, 2020.
There were no transfers between Level 1, Level 2 and Level 3 instruments in the periods presented.
The following tables present the financial assets measured at fair value on a recurring basis:
September 30, 2021
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash and cash equivalents:
Deposits held with banks $ 35,070  $   $   $ 35,070 
Short-term highly liquid investments 19,417  3,100    22,517 
Investments 197,734  31,079  —  228,813 
Total $ 252,221  $ 34,179  $   $ 286,400 
December 31, 2020
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
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 
Total $ 342,096  $ 80,613  $ —  $ 422,709 
Refer to Note 4, “Investments,” for the carrying amount and related unrealized gains (losses) by type of investment.