Cash Equivalents and Investments

9 Months Ended

Sep. 30, 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 September 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	$	513,512	$	—	$	—	$	513,512	$	513,512	$	—	$	—
U.S. Treasury securities	2,150,181		7,485		(127)		2,157,539		30,929		1,382,112		744,498
Subtotal	2,663,693		7,485		(127)		2,671,051		544,441		1,382,112		744,498
Level 2
U.S. agency securities	269,994		172		(65)		270,101		—		22,505		247,596
Commercial paper	285,884		—		(2)		285,882		—		285,882		—
Corporate debt securities	587,872		6,817		(20)		594,669		—		27,917		566,752
Subtotal	1,143,750		6,989		(87)		1,150,652		—		336,304		814,348
Total Debt Securities	$	3,807,443	$	14,474	$	(214)	$	3,821,703	$	544,441	$	1,718,416	$	1,558,846
Equity Securities
Level 1
Mutual funds (1)							$	1,907	$	—	$	1,907	$	—
Total Equity Securities							$	1,907	$	—	$	1,907	$	—
Total Cash Equivalents and Investments	$	3,807,443	$	14,474	$	(214)	$	3,823,610	$	544,441	$	1,720,323	$	1,558,846

	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 Cash Equivalents and 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 September 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 September 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 September 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	$	141,181	$	(82)	$	62,000	$	(45)	$	203,181	$	(127)
U.S. agency securities	47,443		(65)		—		—		47,443		(65)
Commercial paper	10,797		(2)		—		—		10,797		(2)
Corporate debt securities	11,138		(11)		3,032		(9)		14,170		(20)
Total	$	210,559	$	(160)	$	65,032	$	(54)	$	275,591	$	(214)

	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)