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Fair Value of Financial Assets and Liabilities

6 Months Ended

Jun. 30, 2020

Fair Value of Financial Assets and Liabilities

Fair Value of Financial Assets and Liabilities

4. Fair Value of Financial Assets and Liabilities

As of June 30, 2020 and December 31, 2019, the carrying amount of cash and cash equivalents and short-term investments was $228,626 and $292,459, respectively, which approximates fair value. Cash and cash equivalents and short-term investments includes investments in U.S. treasury securities and money market funds that invest in U.S. government securities that are valued using quoted market prices. Accordingly, money market funds and government funds are categorized as Level 1. The financial assets valued based on Level 2 inputs consist of corporate debt securities and commercial paper, which consist of investments in highly-rated investment-grade corporations.

The following tables present information about the Company's financial assets measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values:


		Fair value Measurements as of
		June 30, 2020 using:
		Level 1			Level 2			Level 3			Total
Assets:
Cash Equivalents:
Corporate Debt Securities and Commercial Paper		$	—		$	5,748		$	—		$	5,748
U.S. Treasury Securities and Money Market Funds		$	49,594		$	—		$	—		$	49,594
Marketable Securities:
Corporate Debt Securities and Commercial Paper			—			169,535			—			169,535
Total		$	49,594		$	175,283		$	—		$	224,877


		Fair value Measurements as of
		December 31, 2019 using:
		Level 1			Level 2			Level 3			Total
Assets:
Cash Equivalents:
Corporate Debt Securities and Commercial Paper		$	—		$	8,885		$	—		$	8,885
Money Market Funds			53,014			—			—			53,014
Marketable Securities:
Corporate Debt Securities and Commercial Paper			—			230,165			—			230,165
Total		$	53,014		$	239,050		$	—		$	292,064

Marketable Securities

The following tables summarize the Company's marketable securities:


		June 30, 2020
					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
		Cost			Gains			Losses			Value
Assets
Corporate debt securities and commercial paper (due within 1 year)		$	168,904		$	642		$	(11)		$	169,535
		$	168,904		$	642		$	(11)		$	169,535


		December 31, 2019
					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
		Cost			Gains			Losses			Value
Assets
Corporate debt securities and commercial paper (due within 1 year)		$	230,155		$	54		$	(44)		$	230,165
		$	230,155		$	54		$	(44)		$	230,165

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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