Fair Value Measurements

3 Months Ended

Jun. 30, 2020

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2020 and March 31, 2020 based on the three-tier fair value hierarchy (in thousands):


	Fair Value Measurements as of June 30, 2020
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents:
Money market funds	$	102,064	$	—	$	—	$	102,064



Short-term investments:
Certificates of deposit	—		23,229		—		23,229
Commercial paper	—		17,283		—		17,283
Corporate notes and bonds	—		57,120		—		57,120
U.S. treasury securities	474,379		—		—		474,379

Restricted cash:
Money market funds	5,642		—		—		5,642
Total	$	582,085	$	97,632	$	—	$	679,717
Included in cash and cash equivalents							$	102,064
Included in short-term investments							$	572,011
Included in restricted cash							$	5,642

	Fair Value Measurements as of March 31, 2020
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents:
Money market funds	$	107,663	$	—	$	—	$	107,663

U.S. treasury securities	27,938		—		—		27,938
U.S. government agencies	—		24,999		—		24,999
Short-term investments:
Certificates of deposit	—		14,986		—		14,986
Commercial paper	—		13,334		—		13,334
Corporate notes and bonds	—		60,319		—		60,319
U.S. treasury securities	422,333		—		—		422,333
U.S. government agencies	—		1,602		—		1,602
Restricted cash:
Money market funds	5,641		—		—		5,641
Total	$	563,575	$	115,240	$	—	$	678,815
Included in cash and cash equivalents							$	160,600
Included in short-term investments							$	512,574
Included in restricted cash							$	5,641

There were no transfers between fair value measurement levels during the three months ended June 30, 2020 and 2019.

The Company invests in certificates of deposit, commercial paper, corporate debt securities, U.S. treasury securities, and U.S. agency securities, which are classified as available-for-sale securities. The following table presents the Company’s available-for-sale securities as of June 30, 2020 (in thousands):



	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value



Short-term investments:
Certificates of deposit	23,200		29		—		23,229
Commercial paper	17,173		110		—		17,283
Corporate notes and bonds	56,260		860		—		57,120
U.S. treasury securities	469,560		4,819		—		474,379

Total available-for-sale investments	$	566,193	$	5,818	$	—	$	572,011

The following table presents the Company’s available-for-sale securities as of March 31, 2020 (in thousands):



	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash and cash equivalents:
U.S. treasury securities	$	27,923	$	15	$	—	$	27,938
U.S. government agencies	24,995		4		—		24,999
Short-term investments:
Certificates of deposit	15,000		20		(34)		14,986
Commercial paper	13,318		16		—		13,334
Corporate notes and bonds	60,211		221		(113)		60,319
U.S. treasury securities	415,889		6,444		—		422,333
U.S. government agencies	1,600		2		—		1,602
Total available-for-sale investments	$	558,936	$	6,722	$	(147)	$	565,511

As of June 30, 2020 and March 31, 2020, securities that were in an unrealized loss position for more than 12 months were not significant. In addition, the Company did not consider any available-for-sale securities to be impaired as of June 30, 2020 and March 31, 2020.

The following table classifies the Company’s available-for-sale short-term investments by contractual maturities as of June 30, 2020 and March 31, 2020 (in thousands):


	June 30, 2020		March 31, 2020
Due within one year	$	353,078	$	320,582
Due after one year and within three years	218,933		191,992
Total	$	572,011	$	512,574

For certain other financial instruments, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances.

Convertible Senior Notes

As of June 30, 2020, the fair value of the 0.50% convertible senior notes due 2023 (the “Notes”) was $440.2 million. The fair value was determined based on the quoted price of the Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 in the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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