Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 2. Fair Value Measurements

Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

•Level 1 — Quoted prices in active markets for identical assets or liabilities.

•Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities.

•Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require.

We applied the following methods and assumptions in estimating our fair value measurements:

Cash Equivalents — Cash equivalents consist of highly liquid investments, including money market funds with original maturities of less than three months at the acquisition date. We record the fair value measurement of these assets based on quoted market prices in active markets.

Investments — Our investments comprise fixed income securities, which include U.S. government agency securities, corporate notes and bonds, commercial paper, treasury bills and asset-backed securities. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Long-term Debt — See Note 6 for the carrying amount and estimated fair value of the Notes.

The following table presents the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands):

	March 31, 2022						December 31, 2021
	Level 1		Level 2		Total		Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	56,283	$	—	$	56,283	$	113,058	$	—	$	113,058
Total cash equivalents		56,283		—		56,283		113,058		—		113,058
Short-term investments:
U.S. government agency securities		—		21,086		21,086		—		4,066		4,066
Corporate notes and bonds		—		38,379		38,379		—		36,966		36,966
Commercial paper		—		21,420		21,420		—		16,489		16,489
Treasury bill		—		18,447		18,447		—		4,490		4,490
Asset-backed securities		—		2,392		2,392		—		7,432		7,432
Total short-term investments		—		101,724		101,724		—		69,443		69,443
Long-term investments:
U.S. government agency securities		—		20,722		20,722		—		14,225		14,225
Corporate notes and bonds		—		6,448		6,448		—		—		—
Asset-backed securities		—		974		974		—		—		—
Total long-term investments		—		28,144		28,144		—		14,225		14,225
Total	$	56,283	$	129,868	$	186,151	$	113,058	$	83,668	$	196,726

We did not have any Level 3 assets nor did we measure any liabilities at fair value as of March 31, 2022 or December 31, 2021. Short-term investments are expected to mature within 1 year from the reporting date. Long-term investments are expected to mature between 1 and 2 years from the reporting date. Amortized Cost of all investments by category does not materially differ from fair value. See Note 6 for the carrying amount and estimated fair value of the Notes.