XML 21 R11.htm IDEA: XBRL DOCUMENT

Investments and Fair Value Measurements

6 Months Ended

Jun. 30, 2022

The Company's total cash, cash equivalents and marketable securities as of June 30, 2022 and December 31, 2021 consisted of the following:


	As of June 30,		As of December 31,
	2022		2021
	(in thousands)
Cash and cash equivalents:
Cash	$	48,864	$	134,774
Money market funds	9,665		31,294
Commercial paper	3,981		—
Total cash and cash equivalents (1)	$	62,510	$	166,068
Marketable securities:
U.S. Treasury securities	$	274,449	$	184,946
Corporate notes and bonds	77,241		11,327
Commercial paper	16,489		124,089
Asset-backed securities	31,840		21,576
Municipal securities	—		2,250
Foreign government and supranational securities	19,886		17,607
Total marketable securities, current (2)	$	419,905	$	361,795
U.S. Treasury securities	53,555		239,528
Corporate notes and bonds	173,509		197,298
Asset-backed securities	55,648		77,142
Municipal securities	2,239		2,312
Foreign government and supranational securities	—		12,631
Total marketable securities, non-current (3)	$	284,951	$	528,911
Total marketable securities	$	704,856	$	890,706
Total cash, cash equivalents and marketable securities	$	767,366	$	1,056,774

(1)The Company's cash equivalents include investments with an original maturity date of three months or less.

(2)The Company classifies its marketable securities as current, where it intends to hold the securities for less than 12 months.

(3)The Company classifies its marketable securities are non-current, where it intends to hold the securities for longer than 12 months.

Available-for-Sale Investments

The Company’s marketable securities are classified as available-for-sale as of the balance sheet date and are reported at fair value with unrealized gains and losses reported, net of tax, as a separate component of accumulated other comprehensive income (loss) in stockholders’ equity.

The following table summarizes adjusted cost, gross unrealized gains and losses, and fair value related to available-for-sale securities classified as marketable securities as of June 30, 2022 and December 31, 2021:


	As of June 30, 2022
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	(in thousands)
U.S. Treasury securities	$	333,938	$	—	$	(5,934)	$	328,004
Corporate notes and bonds	255,927		—		(5,177)		250,750
Commercial paper	16,489		—		—		16,489
Asset-backed securities	88,020		—		(532)		87,488
Municipal securities	2,325		—		(86)		2,239
Foreign government and supranational securities	20,145		—		(259)		19,886
Total available-for-sale investments	$	716,844	$	—	$	(11,988)	$	704,856

	As of December 31, 2021
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	(in thousands)
U.S. Treasury securities	$	425,560	$	1	$	(1,086)	$	424,475
Corporate notes and bonds	209,550		—		(925)		208,625
Commercial paper	124,098		—		(9)		124,089
Asset-backed securities	98,857		—		(140)		98,717
Municipal securities	4,577		—		(15)		4,562
Foreign government and supranational securities	30,306		—		(68)		30,238
Total available-for-sale investments	$	892,948	$	1	$	(2,243)	$	890,706

There were no material realized gains or losses from sales of marketable securities that were reclassified out of accumulated other comprehensive (loss) income into investment income during the three and six months ended June 30, 2022 and 2021.

There was one security in a continuous loss position for 12 months or longer as of June 30, 2022. No other securities were in a continuous loss position for 12 months or longer as of June 30, 2022. No securities were in a continuous loss position for 12 months or longer as of December 31, 2021. Investments are reviewed periodically to identify possible other-than-temporary impairments. No impairment loss has been recorded on the securities included in either of the periods as the Company believes that the decrease in fair value of these securities is temporary.

Fair Value of Financial Instruments

For certain of the Company's financial instruments, including cash held in banks, accounts receivable, and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities;

Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3—Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation.

The Company measures its cash equivalents, marketable securities, and restricted cash at fair value. The Company classifies its cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The fair value of the Company's Level 1 financial assets is based on quoted market prices of the identical underlying security. The fair value of the Company's Level 2 financial assets is based on inputs that are directly or indirectly observable in the market, including the readily available pricing sources for the identical underlying security that may not be actively traded.

Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments:


	As of June 30, 2022
	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash equivalents:
Money market funds	$	9,665	$	—	$	—	$	9,665
Commercial paper	—		3,981		—		3,981
Total cash equivalents	9,665		3,981		—		13,646
Marketable securities:
Corporate notes and bonds	—		250,750		—		250,750
Commercial paper	—		16,489		—		16,489
U.S. Treasury securities	—		328,004		—		328,004
Municipal securities	—		2,239		—		2,239
Asset-backed securities	—		87,488		—		87,488
Foreign government and supranational securities	—		19,886		—		19,886
Total marketable securities	—		704,856		—		704,856
Restricted cash:
Restricted cash, current	150		—		—		150
Total restricted cash	150		—		—		150
Total financial assets	$	9,815	$	708,837	$	—	$	718,652


	As of December 31, 2021
	Level 1		Level 2		Level 3		Total
	(in thousands)
Cash equivalents:
Money market funds	$	31,294	$	—	$	—	$	31,294
Total cash equivalents	31,294		—		—		31,294
Marketable securities:
U.S. Treasury securities	—		424,475		—		424,475
Corporate notes and bonds	—		208,625		—		208,625
Commercial paper	—		124,089		—		124,089
Asset-backed securities	—		98,717		—		98,717
Municipal securities	—		4,562		—		4,562
Foreign government and supranational securities	—		30,238		—		30,238
Total marketable securities	—		890,706		—		890,706
Restricted cash:
Restricted cash, non-current	893		—		—		893
Total restricted cash	893		—		—		893
Total financial assets	$	32,187	$	890,706	$	—	$	922,893

The Company classifies its investments, which are comprised of corporate notes and bonds, commercial paper, U.S. treasury securities, foreign government and supranational securities and asset-backed securities within Level 2 of the fair value hierarchy because the fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments.

Restricted cash was $0.2 million and $0.9 million as of June 30, 2022 and December 31, 2021, respectively. The restricted cash balance consisted of letters of credit related to lease arrangements that were collateralized by restricted cash. The amounts as of June 30, 2022 and December 31, 2021, were classified as current and non-current, respectively, on the Company's Condensed Consolidated Balance Sheets.

There were no transfers of assets and liabilities measured at fair value between Level 1 and Level 2, or between Level 2 and Level 3, during the three and six months ended June 30, 2022 and 2021.

- 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.

+ References + Details