Cash Equivalents and Investments

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Cash Equivalents and Investments

5. Cash Equivalents and Investments

The following is a summary of the Company’s cash equivalents and short-term and long-term investments (in thousands):

	As of March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash Equivalents		Short-Term Investments		Long-Term Investments
Debt Securities
Level 1
Money market funds	$	798,671	$	—	$	—	$	798,671	$	798,671	$	—	$	—
U.S. Treasury securities	1,746,818		371		(5,848)		1,741,341		—		1,209,733		531,608
Subtotal	2,545,489		371		(5,848)		2,540,012		798,671		1,209,733		531,608
Level 2
U.S. agency securities	261,358		2		(278)		261,082		—		106,496		154,586
Commercial paper	185,507		—		—		185,507		6,909		178,598		—
Corporate debt securities	421,469		1,065		(1,599)		420,935		—		47,883		373,052
Subtotal	868,334		1,067		(1,877)		867,524		6,909		332,977		527,638
Total Debt Securities	$	3,413,823	$	1,438	$	(7,725)	$	3,407,536	$	805,580	$	1,542,710	$	1,059,246
Equity Securities
Level 1
Mutual funds (1)							$	1,109	$	—	$	1,109	$	—
Total Equity Securities							$	1,109	$	—	$	1,109	$	—
Total Investments	$	3,413,823	$	1,438	$	(7,725)	$	3,408,645	$	805,580	$	1,543,819	$	1,059,246

	As of December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash Equivalents		Short-Term Investments		Long-Term Investments
Debt Securities
Level 1
Money market funds	$	614,888	$	—	$	—	$	614,888	$	614,888	$	—	$	—
U.S. Treasury securities	1,692,700		2,007		(2,547)		1,692,160		—		1,155,218		536,942
Subtotal	2,307,588		2,007		(2,547)		2,307,048		614,888		1,155,218		536,942
Level 2
U.S. agency securities	286,007		27		(197)		285,837		—		137,151		148,686
Commercial paper	184,465		—		—		184,465		14,827		169,638		—
Corporate debt securities	409,037		2,066		(1,262)		409,841		—		52,070		357,771
Subtotal	879,509		2,093		(1,459)		880,143		14,827		358,859		506,457
Total Debt Securities	$	3,187,097	$	4,100	$	(4,006)	$	3,187,191	$	629,715	$	1,514,077	$	1,043,399
Equity Securities
Level 1
Mutual funds (1)							$	731	$	—	$	731	$	—
Total Equity Securities							$	731	$	—	$	731	$	—
Total Investments	$	3,187,097	$	4,100	$	(4,006)	$	3,187,922	$	629,715	$	1,514,808	$	1,043,399

(1)The equity securities relate to the Company’s nonqualified deferred compensation plan and are held in a rabbi trust. Refer to Note 14, “Employee and Director Benefits”, to the notes to the condensed consolidated financial statements for more information.

As of March 31, 2024, all of the Company’s short-term debt investments have contractual maturities of one year or less and all of the Company’s long-term debt investments have contractual maturities of between one and three years.

Changes in market interest rates, credit risk of borrowers and overall market liquidity, amongst other factors, may cause our short-term and long-term debt investments to fall below their amortized cost basis, resulting in unrealized losses. For those debt securities in an unrealized loss position as of March 31, 2024, the unrealized losses were primarily driven by increases in interest rates following the date of purchase and the Company does not intend to sell, nor is it more likely than not it will be required to sell, such securities before recovering the amortized cost basis.

The following table presents fair values and gross unrealized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands):

	As of March 31, 2024
	Less Than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	1,459,154	$	(5,848)	$	—	$	—	$	1,459,154	$	(5,848)
U.S. agency securities	223,619		(241)		22,463		(37)		246,082		(278)
Corporate debt securities	232,518		(1,278)		35,662		(321)		268,180		(1,599)
Total	$	1,915,291	$	(7,367)	$	58,125	$	(358)	$	1,973,416	$	(7,725)

	As of December 31, 2023
	Less Than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	486,424	$	(2,547)	$	—	$	—	$	486,424	$	(2,547)
U.S. agency securities	182,475		(197)		—		—		182,475		(197)
Corporate debt securities	248,287		(1,262)		—		—		248,287		(1,262)
Total	$	917,186	$	(4,006)	$	—	$	—	$	917,186	$	(4,006)