Quarterly report pursuant to Section 13 or 15(d)

Cash, Cash Equivalents, Short-Term And Long-Term Investments

v3.24.3
Cash, Cash Equivalents, Short-Term And Long-Term Investments
9 Months Ended
Sep. 30, 2024
Cash Cash Equivalents And Short Term And Long Term Investments [Abstract]  
Cash, Cash Equivalents, Short-Term and Long-Term Investments
(2)
Cash, Cash Equivalents, Short-term and Long-term Investments

The following tables show the Company’s cash, cash equivalents, short-term and long-term investments by significant investment category:

 

 

 

As of September 30, 2024

 

(in thousands)

 

Adjusted Cost

 

 

Fair Value

 

 

Cash and Cash Equivalents

 

 

Short-Term Investments

 

 

Long-Term Investments

 

Cash

 

$

1,324,798

 

 

$

1,324,798

 

 

$

1,324,798

 

 

$

 

 

$

 

Level 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

18,009

 

 

 

18,009

 

 

 

18,009

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

10,553

 

 

 

10,553

 

 

 

 

 

 

8,483

 

 

 

2,070

 

Mutual funds

 

N/A

 

 

 

4,469

 

 

 

 

 

 

 

 

 

4,469

 

Total level 1

 

 

28,562

 

 

 

33,031

 

 

 

18,009

 

 

 

8,483

 

 

 

6,539

 

Level 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate notes and bonds

 

 

125,521

 

 

 

125,521

 

 

 

6,998

 

 

 

83,545

 

 

 

34,978

 

Asset-backed securities

 

 

18,499

 

 

 

18,499

 

 

 

 

 

 

839

 

 

 

17,660

 

U.S. Agency securities

 

 

29,058

 

 

 

29,058

 

 

 

4,249

 

 

 

20,928

 

 

 

3,881

 

Total level 2

 

 

173,078

 

 

 

173,078

 

 

 

11,247

 

 

 

105,312

 

 

 

56,519

 

Total

 

$

1,526,438

 

 

$

1,530,907

 

 

$

1,354,054

 

 

$

113,795

 

 

$

63,058

 

 

 

 

As of December 31, 2023

 

(in thousands)

 

Adjusted Cost

 

 

Fair Value

 

 

Cash and Cash Equivalents

 

 

Short-Term Investments

 

 

Long-Term Investments

 

Cash

 

$

972,278

 

 

$

972,278

 

 

$

972,278

 

 

$

 

 

$

 

Level 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

176,317

 

 

 

176,317

 

 

 

176,317

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

39,769

 

 

 

39,769

 

 

 

29,942

 

 

 

9,827

 

 

 

 

Mutual funds

 

N/A

 

 

 

8,535

 

 

 

 

 

 

 

 

 

8,535

 

Total level 1

 

 

216,086

 

 

 

224,621

 

 

 

206,259

 

 

 

9,827

 

 

 

8,535

 

Level 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate notes and bonds

 

 

97,795

 

 

 

97,795

 

 

 

9,374

 

 

 

50,949

 

 

 

37,472

 

Asset-backed securities

 

 

11,159

 

 

 

11,159

 

 

 

 

 

 

 

 

 

11,159

 

U.S. Agency securities

 

 

27,269

 

 

 

27,269

 

 

 

1,999

 

 

 

11,819

 

 

 

13,451

 

Total level 2

 

 

136,223

 

 

 

136,223

 

 

 

11,373

 

 

 

62,768

 

 

 

62,082

 

Total

 

$

1,324,587

 

 

$

1,333,122

 

 

$

1,189,910

 

 

$

72,595

 

 

$

70,617

 

 

The Company’s investments consist of U.S. Treasury securities, corporate notes and bonds, asset-backed securities and U.S. agency securities, which the Company has the intent and ability to hold to maturity and therefore are classified as held-to-maturity. The Company holds mutual funds in its deferred compensation plan which are classified as trading securities. The Company may sell certain of its investments prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Company’s long-term investments are less than two years. The Company minimizes the potential risk of principal loss by investing in highly-rated securities and limiting the amount of credit exposure to any one issuer. Fair values were determined for each individual security in the investment portfolio. Included in long-term investments on the Condensed Consolidated Balance Sheets are company owned life insurance contracts of $67.4 million and $53.4 million at September 30, 2024 and December 31, 2023. Interest income was $11.2 million and $7.3 million for the three months ended September 30, 2024 and 2023, and $30.2 million and $15.2 million for the nine months ended September 30, 2024 and 2023.

When evaluating an investment for its current expected credit losses, the Company reviews factors such as historical experience with defaults, losses, credit ratings, term and macroeconomic trends, including current conditions and forecasts to the extent they are reasonable and supportable.