Cash, Cash Equivalents and Investment Debt Securities

6 Months Ended

Jun. 30, 2022

Cash, Cash Equivalents and Investment Debt Securities

Cash, Cash Equivalents and Investment Debt Securities

5.    Cash, Cash Equivalents and Investment Debt Securities

The following table summarizes the Company’s cash, cash equivalents and investment debt securities as of June 30, 2022 and December 31, 2021:

	As of June 30, 2022
			Allowance		Gross		Gross
			for Credit		Unrealized		Unrealized
	Amortized Cost		Losses		Gains		Losses		Fair Value
	(in thousands)
Cash and cash equivalents:
Cash and money market funds	$	58,019	$	—	$	—	$	—	$	58,019
Total cash and cash equivalents		58,019		—		—		—		58,019
Investment debt securities:
Commercial paper		143,932		—		—		(320)		143,612
Corporate debt securities		180,955		—		—		(1,319)		179,636
U.S. government agency bonds		3,500		—		—		(58)		3,442
U.S Treasury securities		20,176		—		—		(109)		20,067
Total investment debt securities		348,563		—		—		(1,806)		346,757
Total cash, cash equivalents and investment debt securities	$	406,582	$	—	$	—	$	(1,806)	$	404,776

	As of December 31, 2021
			Allowance		Gross		Gross
			for Credit		Unrealized		Unrealized
	Amortized Cost		Losses		Gains		Losses		Fair Value
	(in thousands)
Cash and cash equivalents:
Cash and money market funds	$	76,709	$	—	$	—	$	—	$	76,709
Commercial paper		8,000		—		—		—		8,000
Total cash and cash equivalents		84,709		—		—		—		84,709
Investment debt securities:
Commercial paper		84,513		—		—		(49)		84,464
Corporate debt securities		232,721		—		16		(245)		232,492
Municipal bonds		5,028		—		—		(1)		5,027
U.S Treasury securities		12,998		—		—		(1)		12,997
Total investment debt securities		335,260		—		16		(296)		334,980
Total cash, cash equivalents and investment debt securities	$	419,969	$	—	$	16	$	(296)	$	419,689

The aggregate fair value of the Company’s available-for-sale investment debt securities that have been in a continuous unrealized loss position for less than twelve months or twelve months or longer is as follows:

	As of June 30, 2022
	Less than 12 months				12 months or longer				Total
	(in thousands)
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Commercial paper	$	143,612	$	(320)	$	—	$	—	$	143,612	$	(320)
Corporate debt securities		178,637		(1,318)		999		(1)		179,636		(1,319)
U.S. government agency bonds		3,442		(58)		—		—		3,442		(58)
U.S. Treasury securities		20,067		(109)		—		—		20,067		(109)
Total	$	345,758	$	(1,805)	$	999	$	(1)	$	346,757	$	(1,806)

	As of December 31, 2021
	Less than 12 months				12 months or longer				Total
	(in thousands)
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Commercial paper	$	81,464	$	(49)	$	—	$	—	$	81,464	$	(49)
Corporate debt securities		196,120		(245)		—		—		196,120		(245)
Municipal bonds		5,027		(1)		—		—		5,027		(1)
U.S Treasury securities		12,997		(1)		—		—		12,997		(1)
Total	$	295,608	$	(296)	$	—	$	—	$	295,608	$	(296)

At June 30, 2022 and December 31, 2021, respectively the Company had 112 and 97 available-for-sale investment debt securities in an unrealized loss position without an allowance for credit losses. Unrealized losses on corporate debt securities have not been recognized into income because the issuers’ bonds are of high credit quality (rated A3/A- or higher) and the decline in fair value is largely due to market conditions and/or changes in interest rates. Management does not intend to sell and it is likely that management will not be required to sell the securities prior to the anticipated recovery of their amortized cost basis. The issuers continue to make timely interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

Accrued interest receivable on available-for-sale investment debt securities totaled $0.9 million and $1.3 million at June 30, 2022 and December 31, 2021, respectively, is excluded from the estimate of credit losses and is included in Prepaid expenses and other current assets.