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Financial Instruments
3 Months Ended
Mar. 31, 2023
Investments, All Other Investments [Abstract]  
Financial Instruments Financial Instruments
Cash, Cash Equivalents and Marketable Securities

The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 (in thousands):
Reported as:
March 31, 2023Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair ValueCash and Cash EquivalentsMarketable securities, short-termMarketable securities, long-term
Cash$650,946 $— $— $650,946 $650,946 $— $— 
Money market funds181,437 — — 181,437 181,437 — — 
Corporate bonds62,003 — (2,187)59,816 — 35,284 24,532 
U.S. government treasury bonds
17,057 (356)16,708 — 12,039 4,669 
Asset-backed securities4,859 (24)4,837 — 1,887 2,950 
Municipal bonds2,470 — (36)2,434 — 2,434 — 
U.S. government agency bonds5,280 (54)5,228 — — 5,228 
Total$924,052 $11 $(2,657)$921,406 $832,383 $51,644 $37,379 

Reported as:
December 31, 2022Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair ValueCash and Cash EquivalentsMarketable securities, short-termMarketable securities, long-term
Cash$712,921 $— $— $712,921 $712,921 $— $— 
Money market funds229,129 — — 229,129 229,129 — — 
Corporate bonds69,390 — (2,915)66,475 — 36,510 29,965 
U.S. government treasury bonds
20,559 — (549)20,010 — 15,404 4,606 
Asset-backed securities4,514 (37)4,478 — 2,909 1,569 
Municipal bonds3,447 — (61)3,386 — 2,711 675 
U.S. government agency bonds5,231 (69)5,163 — — 5,163 
Total$1,045,191 $$(3,631)$1,041,562 $942,050 $57,534 $41,978 

The following table summarizes the fair value of our available-for-sale marketable securities classified by contractual maturity as of March 31, 2023 and December 31, 2022 (in thousands):

March 31, 2023December 31, 2022
Due in 1 year or less $45,512 $51,037 
Due in 1 year through 5 years43,511 48,475 
Total$89,023 $99,512 

The securities that we invest in are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-market unrealized loss. Our unrealized losses as of March 31, 2023 and December 31, 2022 are primarily due to changes in interest rates and credit spreads.

The following tables summarize the gross unrealized losses as of March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position (in thousands):
As of March 31, 2023
Less than 12 months12 Months of GreaterTotal
March 31, 2023Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Corporate bonds$1,793 $(9)$58,022 $(2,178)$59,815 $(2,187)
U.S. government treasury bonds
— — 14,698 (356)14,698 (356)
Asset-backed securities2,780 (13)1,053 (11)3,833 (24)
Municipal bonds— — 2,154 (36)2,154 (36)
U.S. government agency bonds2,037 (1)1,150 (53)3,187 (54)
Total$6,610 $(23)$77,077 $(2,634)$83,687 $(2,657)

As of December 31, 2022
Less than 12 months12 Months of GreaterTotal
December 31, 2022Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Corporate bonds$10,639 $(440)$54,634 $(2,475)$65,273 $(2,915)
U.S. government treasury bonds
5,262 (177)14,748 (372)20,010 (549)
Asset-backed securities2,636 (17)1,275 (20)3,911 (37)
Municipal bonds— — 2,412 (61)2,412 (61)
U.S. government agency bonds3,017 (5)1,136 (64)4,153 (69)
Total$21,554 $(639)$74,205 $(2,992)$95,759 $(3,631)

Accounts Receivable Factoring

We enter into factoring transactions on a non-recourse basis with financial institutions to sell certain of our non-U.S. accounts receivable. We account for these transactions as sales of accounts receivables and include the cash proceeds as a part of our cash flows from operations in the Condensed Consolidated Statements of Cash Flows. Total accounts receivable sold under the factoring arrangements was $8.0 million during the three months ended March 31, 2023. Factoring fees on the sales of receivables were recorded in other income (expense), net in our Condensed Consolidated Statement of Operations and were not material.

Fair Value Measurements

Fair value is an exit price, representing the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use the GAAP fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value:

Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. We obtain fair values for our Level 2 investments. Our custody bank and asset managers independently use professional pricing services to gather pricing data which may include quoted market prices for identical or comparable financial instruments, or inputs other than quoted prices that are observable either directly or indirectly, and we are ultimately responsible for these underlying estimates.

Level 3 — Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.
The following tables summarize our financial assets measured at fair value as of March 31, 2023 and December 31, 2022 (in thousands):
DescriptionBalance as of
March 31, 2023
Level 1

Level 2
Cash equivalents:
Money market funds$181,437 $181,437 $— 
Short-term investments:
U.S. government treasury bonds12,039 12,039 — 
Corporate bonds35,284 — 35,284 
Municipal bonds2,434 — 2,434 
Asset-backed securities1,887 — 1,887 
Long-term investments:
U.S. government treasury bonds4,669 4,669 — 
Corporate bonds24,532 — 24,532 
Municipal bonds— — — 
U.S. government agency bonds5,228 — 5,228 
Asset-backed securities2,950 — 2,950 
$270,460 $198,145 $72,315 

DescriptionBalance as of December 31, 2022Level 1Level 2
Cash equivalents:
Money market funds$229,129 $229,129 $— 
Corporate bonds— — — 
Municipal bonds— — — 
Short-term investments:
U.S. government treasury bonds15,404 15,404 — 
Corporate bonds36,510 — 36,510 
Municipal bonds2,711 — 2,711 
Asset-backed securities2,909 — 2,909 
Long-term investments:
U.S. government treasury bonds
4,606 4,606 — 
Corporate bonds29,965 — 29,965 
Municipal bonds
675 — 675 
U.S. government agency bonds
5,163 — 5,163 
Asset-backed securities
1,569 — 1,569 
$328,641 $249,139 $79,502 

Investments in Privately Held Companies

Our investments in privately held companies in which we cannot exercise significant influence and do not own a majority equity interest or otherwise control are accounted for under the measurement alternative. Under the measurement alternative, the carrying value of our equity investment is adjusted to fair value for observable transactions for identical or similar investments of the same issuer. Investments in equity securities are reported on our Consolidated Balance Sheet as other assets, and we periodically evaluate them for impairment. We record any change in carrying value of our equity securities, in other income (expense), net in our Consolidated Statement of Operations. The carrying value of our equity investments in privately held companies without readily determinable fair values were not material as of March 31, 2023 or 2022 and the associated adjustments to the carrying values of the investments were not material during the quarter ended March 31, 2023 and 2022.
Derivatives Not Designated as Hedging Instruments

We enter into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on certain trade and intercompany receivables and payables. These forward contracts are classified within Level 2 of the fair value hierarchy. As a result of the settlement of foreign currency forward contracts, we recognized a net loss of $6.4 million during the three months ended March 31, 2023 and the net losses we recognized during the three months ended March 31, 2022 were not material. As of March 31, 2023 and December 31, 2022, the fair value of foreign exchange forward contracts outstanding was not material.

The following tables present the gross notional value of all our foreign exchange forward contracts outstanding as of March 31, 2023 and December 31, 2022 (in thousands):

March 31, 2023
Local Currency AmountNotional Contract Amount (USD)
Euro€203,780$222,215 
Canadian DollarC$97,50072,007 
Chinese Yuan¥478,80569,842 
Polish ZlotyPLN277,00064,459 
British Pound£42,92053,198 
Japanese Yen¥6,170,00046,513 
Brazilian RealR$158,80031,055 
Swiss FrancCHF25,60028,081 
Israeli ShekelILS53,60014,864 
Mexican PesoM$230,00012,744 
New Zealand DollarNZ$10,5006,575 
Korean Won₩6,400,0004,946 
New Taiwan DollarNT$83,0002,737 
Australian DollarA$3,900$2,615 
Czech KorunaKč56,0002,589 
$634,440 

December 31, 2022
Local Currency AmountNotional Contract Amount (USD)
Euro€186,900$200,010 
Polish ZlotyPLN365,98883,307 
Canadian Dollar$109,00080,514 
Chinese Yuan¥471,00068,223 
British Pound£41,20049,677 
Japanese Yen¥6,200,00047,196 
Israeli ShekelILS110,03031,383 
Swiss FrancCHF25,00027,165 
Brazilian RealR$141,20026,839 
Mexican PesoM$230,000 11,746 
New Zealand DollarNZ$6,0003,806 
Australian DollarA$4,0002,721 
Czech KorunaKč56,0002,469 
New Taiwan DollarNT$60,0001,959 
$637,015