Fair Value Measurement

9 Months Ended

Sep. 30, 2025

Note 2 - Fair Value Measurement

The following table summarizes the Company’s investments at September 30, 2025 and December 31, 2024 measured at fair value on a recurring basis (in thousands):


	September 30, 2025									December 31, 2024


			Gross		Gross							Gross		Gross
			Unrealized		Unrealized			Recorded				Unrealized		Unrealized			Recorded
	Cost		Gains		Losses			Basis		Cost		Gains		Losses			Basis
Current:
Cash equivalents:
Money market funds	$	22,304	$	—	$	—		$	22,304	$	26,661	$	—	$	—		$	26,661
Total cash equivalents		22,304		—		—			22,304		26,661		—		—			26,661
Investments:
Corporate bonds		27,874		5		(1,402	)		26,477		27,954		3		(2,365	)		25,592
U.S. treasuries		14,260		—		(744	)		13,516		12,460		—		(1,140	)		11,320
Mortgage-backed securities		11,426		—		(2,132	)		9,294		12,128		—		(2,592	)		9,536
Asset-backed securities		7,572		15		(64	)		7,523		7,610		12		(109	)		7,513
U.S. government agency securities		5,330		—		(64	)		5,266		12,734		—		(203	)		12,531
Total current investments		66,462		20		(4,406	)		62,076		72,886		15		(6,409	)		66,492
Restricted cash and investments (1):
Corporate bonds		81,386		70		(4,403	)		77,053		100,030		16		(7,302	)		92,744
U.S. treasuries		52,535		14		(4,144	)		48,405		54,900		—		(6,348	)		48,552
Mortgage-backed securities		37,884		87		(4,280	)		33,691		40,858		10		(5,674	)		35,194
Mutual funds		13,003		—		—			13,003		10,961		—		—			10,961
U.S. government agency securities		5,955		—		(373	)		5,582		16,785		—		(914	)		15,871
Asset-backed securities		1,401		14		—			1,415		1,666		6		(1	)		1,671
Money market funds		1,305		—		—			1,305		216		—		—			216
Emerging markets		200		10		—			210		200		1		—			201
Total restricted cash and investments		193,669		195		(13,200	)		180,664		225,616		33		(20,239	)		205,410
Total investments	$	282,435	$	215	$	(17,606	)	$	265,044	$	325,163	$	48	$	(26,648	)	$	298,563

(1) Included in restricted cash and investments within the condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024 is restricted cash of $17.1 million and $26.7 million, 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 September 30, 2025 and December 31, 2024 measured at fair value on a recurring basis by fair value hierarchy level (in thousands):


	September 30, 2025								December 31, 2024
	Total								Total
	Recorded								Recorded
	Basis		Level 1		Level 2		Other (1)		Basis		Level 1		Level 2		Other (1)
Cash equivalents:
Money market funds	$	22,304	$	—	$	—	$	22,304	$	26,661	$	—	$	—	$	26,661
Investments:
Corporate bonds		26,477		—		26,477		—		25,592		—		25,592		—
U.S. treasuries		13,516		—		13,516		—		11,320		—		11,320		—
Mortgage-backed securities		9,294		—		9,294		—		9,536		—		9,536		—
Asset-backed securities		7,523		—		7,523		—		7,513		—		7,513		—
U.S. government agency securities		5,266		—		5,266		—		12,531		—		12,531		—
Restricted cash and investments:
Corporate bonds		77,053		—		77,053		—		92,744		—		92,744		—
U.S. treasuries		48,405		—		48,405		—		48,552		—		48,552		—
Mortgage-backed securities		33,691		—		33,691		—		35,194		—		35,194		—
Mutual funds		13,003		13,003		—		—		10,961		10,961		—		—
U.S. government agency securities		5,582		—		5,582		—		15,871		—		15,871		—
Asset-backed securities		1,415		—		1,415		—		1,671		—		1,671		—
Money market funds		1,305		—		—		1,305		216		—		—		216
Emerging markets		210		—		210		—		201		—		201		—
Total investments	$	265,044	$	13,003	$	228,432	$	23,609	$	298,563	$	10,961	$	260,725	$	26,877

(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 September 30, 2025 and December 31, 2024. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. The table also includes money market funds, which are classified as cash and cash equivalents on the Company’s condensed consolidated balance sheets.


	September 30, 2025
(In thousands)	Less than 1 Year		Between 1 to 5 Years		Between 5 to 10 Years		After 10 Years		Total
Corporate bonds	$	11,390	$	83,601	$	8,539	$	—	$	103,530
U.S. treasuries		1,477		42,404		18,040		—		61,921
Money market funds		23,609		—		—		—		23,609
U.S. government agency securities		577		9,173		1,098		—		10,848
Asset-backed securities		—		1,005		151		7,783		8,939
Emerging markets		—		—		210		—		210
Total	$	37,053	$	136,183	$	28,038	$	7,783	$	209,057

	December 31, 2024
(In thousands)	Less than 1 Year		Between 1 to 5 Years		Between 5 to 10 Years		After 10 Years		Total
Corporate bonds	$	18,815	$	76,574	$	22,947	$	—	$	118,336
U.S. treasuries		497		42,333		17,042		—		59,872
U.S. government agency securities		8,014		19,333		1,055		—		28,402
Money market funds		26,877		—		—		—		26,877
Asset-backed securities		—		1,228		6,654		1,302		9,184
Emerging markets		—		—		201		—		201
Total	$	54,203	$	139,468	$	47,899	$	1,302	$	242,872

The average contractual maturity of mortgage-backed securities, which are excluded from the table above, was 21 years as of September 30, 2025 and December 31, 2024.

The fair values and gross unrealized losses of the Company’s available for sale securities that were in an unrealized loss position as of September 30, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows (in thousands):


	September 30, 2025
	Less than 12 months					12 months or longer					Total
			Gross					Gross					Gross
	Recorded		Unrealized			Recorded		Unrealized			Recorded		Unrealized
	Basis		Losses			Basis		Losses			Basis		Losses
Investments:
Corporate bonds	$	—	$	—		$	26,258	$	(1,402	)	$	26,258	$	(1,402	)
U.S. treasuries		—		—			13,516		(744	)		13,516		(744	)
Mortgage-backed securities		—		—			9,294		(2,132	)		9,294		(2,132	)
U.S. government agency securities		—		—			5,266		(64	)		5,266		(64	)
Asset-backed securities		—		—			1,308		(64	)		1,308		(64	)
Total investments		—		—			55,642		(4,406	)		55,642		(4,406	)
Restricted investments:
Corporate bonds		—		—			73,432		(4,403	)		73,432		(4,403	)
U.S. treasuries		—		—			47,689		(4,144	)		47,689		(4,144	)
Mortgage-backed securities		—		—			28,059		(4,280	)		28,059		(4,280	)
U.S. government agency securities		—		—			5,582		(373	)		5,582		(373	)
Total restricted investments		—		—			154,762		(13,200	)		154,762		(13,200	)
Total investments and restricted investments	$	—	$	—		$	210,404	$	(17,606	)	$	210,404	$	(17,606	)

	December 31, 2024
	Less than 12 months					12 months or longer					Total
			Gross					Gross					Gross
	Recorded		Unrealized			Recorded		Unrealized			Recorded		Unrealized
	Basis		Losses			Basis		Losses			Basis		Losses
Investments:
Corporate bonds	$	20	$	—		$	25,377	$	(2,365	)	$	25,397	$	(2,365	)
U.S. government agency securities		—		—			12,531		(203	)		12,531		(203	)
U.S. treasuries		—		—			11,320		(1,140	)		11,320		(1,140	)
Mortgage-backed securities		—		—			9,536		(2,592	)		9,536		(2,592	)
Asset-backed securities		—		—			1,301		(109	)		1,301		(109	)
Total investments		20		—			60,065		(6,409	)		60,085		(6,409	)
Restricted investments:
Corporate bonds		11,142		(15	)		71,716		(7,287	)		82,858		(7,302	)
U.S. treasuries		1,399		(29	)		46,656		(6,319	)		48,055		(6,348	)
Mortgage-backed securities		3,360		(37	)		29,877		(5,637	)		33,237		(5,674	)
U.S. government agency securities		—		—			15,871		(914	)		15,871		(914	)
Asset-backed securities		443		(1	)		—		—			443		(1	)
Total restricted investments		16,344		(82	)		164,120		(20,157	)		180,464		(20,239	)
Total investments and restricted investments	$	16,364	$	(82	)	$	224,185	$	(26,566	)	$	240,549	$	(26,648	)

We have determined that the gross unrealized losses on our investments as of September 30, 2025 and December 31, 2024 were temporary in nature. The decline in fair value was due to changes in market interest rates, rather than credit losses.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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-Topic 820
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-Topic 940
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-Section 50
-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

BARRETT BUSINESS SERVICES INC 10-Q