Cash Equivalents and Investments

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

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 June 30, 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	$	907,229	$	—	$	—	$	907,229	$	907,229	$	—	$	—
U.S. Treasury securities	1,711,715		235		(5,860)		1,706,090		—		1,158,402		547,688
Subtotal	2,618,944		235		(5,860)		2,613,319		907,229		1,158,402		547,688
Level 2
U.S. agency securities	323,932		10		(299)		323,643		—		47,453		276,190


Commercial paper	192,136		—		—		192,136		9,978		182,158		—
Corporate debt securities	422,521		660		(1,709)		421,472		—		56,215		365,257
Subtotal	938,589		670		(2,008)		937,251		9,978		285,826		641,447
Total Debt Securities	$	3,557,533	$	905	$	(7,868)	$	3,550,570	$	917,207	$	1,444,228	$	1,189,135
Equity Securities
Level 1
Mutual funds (1)							$	1,461	$	—	$	1,461	$	—
Total Equity Securities							$	1,461	$	—	$	1,461	$	—
Total Investments	$	3,557,533	$	905	$	(7,868)	$	3,552,031	$	917,207	$	1,445,689	$	1,189,135


	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 June 30, 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 between one and five 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 June 30, 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 June 30, 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	$	1,046,150	$	(1,445)	$	350,312	$	(4,415)	$	1,396,462	$	(5,860)
U.S. agency securities	276,175		(258)		32,458		(41)		308,633		(299)



Corporate debt securities	194,913		(903)		95,549		(806)		290,462		(1,709)
Total	$	1,517,238	$	(2,606)	$	478,319	$	(5,262)	$	1,995,557	$	(7,868)


	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)