Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

2. Fair Value of Financial Instruments

The estimated fair values of the Company’s financial instruments, which include cash equivalents, accounts receivable, accounts payable and other accrued liabilities, approximate their carrying values due to the short-term nature of these instruments. The Company’s marketable securities are now classified as available-for-sale, as the Company recently sold a marketable security, which was previously classified as held-to-maturity. The Company has reassessed classification of the remaining marketable securities and therefore adjusted them to be reported at fair value. Unrealized holding gains and losses are excluded from earnings and are reported net of tax in “accumulated other comprehensive income (loss)” in the Consolidated Balance Sheets until realized. Realized gains and losses are included in “other income (loss), net” in the Consolidated Statement of Operations and are derived using the specific identification method for determining the cost of marketable securities sold.

As of December 31, 2021, the Company’s marketable securities were classified as held-to-maturity and reported at amortized cost, which approximated fair value.

The Company’s fair value hierarchy for its cash equivalents and marketable securities was as follows:

March 31, 2022	Level 1		Level 2		Level 3		Total
Money market securities	$	4	$	—	$	—	$	4
Commercial paper		—		11,351		—		11,351
Corporate notes		—		6,425		—		6,425
Federal agency notes		—		3,739		—		3,739
Pre-refunded municipals		—		152		—		152
Total	$	4	$	21,667	$	—	$	21,671

December 31, 2021	Level 1		Level 2		Level 3		Total
Money market securities	$	2,478	$	—	$	—	$	2,478
Commercial paper		—		13,382		—		13,382
Corporate notes		—		9,585		—		9,585
Federal agency notes		—		3,799		—		3,799
Pre-refunded municipals		—		1,063		—		1,063
Total	$	2,478	$	27,829	$	—	$	30,307

The fair value maturities of the Company’s cash equivalents and marketable securities as of March 31, 2022, were as follows:

	Maturities by Period
	Total		Less than 1 year		1-5 years		5 - 10 years		More than 10 years
Cash equivalents and marketable securities	$	21,671	$	15,962	$	5,709	$	—	$	—

The Company considers all highly liquid marketable securities with original maturities of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents include money market securities totaling $4 and $2,478 at March 31, 2022, and December 31, 2021, respectively. Cash equivalents are carried at either cost or fair value, depending on the type of security.