Fair Value Measurements

6 Months Ended

Jun. 30, 2020

Fair Value Measurements

Fair Value Measurements

4. Fair Value Measurements

Assets measured at fair value on a recurring basis as of June 30, 2020 were as follows (in thousands):

			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
	June 30,		Identical Assets		Inputs		Inputs
Financial Assets	2020		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Money market funds	$	485,819	$	485,819	$	—	$	—
Marketable securities:
U.S. Treasuries		26,997		26,997		—		—
Government agency securities		67,712		67,712		—		—
Corporate equity securities		18,192		—		18,192		—
Restricted cash and other non-current assets:
Money market funds		3,877		3,877		—		—
Total financial assets	$	602,597	$	584,405	$	18,192	$	—

Assets measured at fair value on a recurring basis as of December 31, 2019 were as follows (in thousands):

			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
	December 31,		Identical Assets		Inputs		Inputs
Financial Assets	2019		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Money market funds	$	230,201	$	230,201	$	—	$	—
U.S. Treasuries		7,982		7,982		—		—
Marketable securities:
U.S. Treasuries		63,386		63,386		—		—
Government agency securities		155,571		155,571		—		—
Restricted cash and other non-current assets:
Corporate equity securities		3,667		—		3,667		—
Money market funds		1,619		1,619		—		—
Total financial assets	$	462,426	$	458,759	$	3,667	$	—

The Company holds an investment in Beam Therapeutics Inc. (“Beam Therapeutics”) consisting of shares of Beam Therapeutics’ common stock. Prior to Beam Therapeutics’ initial public offering in February 2020, the Company valued such investment based on the cost of the equity securities adjusted for any observable market transactions. Following the initial public offering, the equity securities have a readily determinable fair value, and are included in marketable securities on the condensed consolidated balance sheet with a fair value based on Level 2 inputs due to transfer restrictions associated with the securities. Upon the expiration of the transfer restrictions the Company expects to transfer the value of these equity securities from Level 2 to Level 1. During the three and six months ended June 30, 2020, the Company recorded unrealized gains of $7.2 million and $14.5 million, respectively in other income (expense), net on the consolidated statements of operations.