Fair Value Measurements

9 Months Ended

Sep. 30, 2021

We measure and report our cash equivalents, restricted cash, and available-for-sale marketable securities at fair value on a recurring basis. The following tables summarize the amortized costs, unrealized gains and losses and fair value of these financial assets by significant investment category and their levels within the fair value hierarchy (in thousands):


	September 30, 2021
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Level I		Level II		Level III
Financial Assets:
Cash Equivalents:
Money market funds	$	277,510	$	—	$	—	$	277,510	$	277,510	$	—	$	—



Marketable Securities:
Commercial paper	127,925		—		—		127,925		—		127,925		—
Certificate of deposits(1)	86,685		—		—		86,685		—		86,685		—
U.S. government notes	1,079,140		120		(205)		1,079,055		1,079,055		—		—
Corporate bonds	1,190,273		377		(533)		1,190,117		—		1,190,117		—
Agency securities	271,589		147		(19)		271,717		—		271,717		—
	2,755,612		644		(757)		2,755,499		1,079,055		1,676,444		—
Other Assets:
Money market funds - restricted	4,236		—		—		4,236		4,236		—		—
Total Financial Assets	$	3,037,358	$	644	$	(757)	$	3,037,245	$	1,360,801	$	1,676,444	$	—


	December 31, 2020
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Level I		Level II		Level III
Financial Assets:
Cash Equivalents:
Money market funds	$	438,854	$	—	$	—	$	438,854	$	438,854	$	—	$	—


Marketable Securities:
Commercial paper	51,211		—		—		51,211		—		51,211		—
Certificate of deposits(1)	50,136		3		—		50,139		—		50,139		—
U.S. government notes	523,320		187		(1)		523,506		523,506		—		—
Corporate bonds	878,484		1,167		(330)		879,321		—		879,321		—
Agency securities	475,132		343		(3)		475,472		—		475,472		—
	1,978,283		1,700		(334)		1,979,649		523,506		1,456,143		—
Other Assets:
Money market funds - restricted	4,235		—		—		4,235		4,235		—		—
Total Financial Assets	$	2,421,372	$	1,700	$	(334)	$	2,422,738	$	966,595	$	1,456,143	$	—

______________________

(1) As of September 30, 2021 and December 31, 2020, all of our certificates of deposits were domestic deposits.

As of September 30, 2021 and December 31, 2020, total unrealized losses of our marketable securities were immaterial. We invest in marketable securities that have maximum maturities of two years and are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these marketable securities, the more susceptible they are to changes in market interest rates and bond yields. We expect to realize the full value of these investments upon maturity or sale and therefore, we do not consider any of our marketable securities to be impaired as of September 30, 2021. We did not recognize any credit losses or non-credit-related impairments related to our available-for-sale marketable securities during the three and nine months ended September 30, 2021.

As of September 30, 2021, we had no investments with contractual maturities that exceed 24 months. The fair values of available-for-sale marketable securities, by remaining contractual maturities, are as follows (in thousands):


	September 30, 2021
Due in 1 year or less	$	1,559,405
Due in 1 year through 2 years	1,196,094
Total marketable securities	$	2,755,499

The weighted-average remaining duration of our marketable securities is approximately 1.0 year as of September 30, 2021. As we view these securities as available to support current operations, we classify securities with maturities beyond 12 months as current assets under the caption "Marketable securities" on the condensed consolidated balance sheets.

- 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