Fair Value Measurements

12 Months Ended

Dec. 31, 2022

The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy:


	December 31, 2022
	Fair Value Hierarchy	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
	(In thousands)
Money market funds	Level 1	$	74,848	$	—	$	—		$	74,848
U.S. government treasury securities	Level 1		506,372		7		(4,569	)		501,810
Commercial paper	Level 2		44,438		2		(8	)		44,432
Corporate bonds	Level 2		29,352		4		(10	)		29,346
Total cash equivalents and marketable securities		$	655,010	$	13	$	(4,587	)	$	650,436


	December 31, 2021
	Fair Value Hierarchy	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Market Value
	(In thousands)
Money market funds	Level 1	$	218,451	$	—	$	—		$	218,451
U.S. government treasury securities	Level 1		407,041		8		(950	)		406,099
Total cash equivalents and marketable securities		$	625,492	$	8	$	(950	)	$	624,550

The Company’s Level 2 securities are valued using third-party pricing sources. The pricing services utilize industry standard valuation models for which all significant inputs are observable. The Company classifies marketable securities available to fund current operations as current assets. As of December 31, 2022, the remaining contractual maturities of $640.8 million of investments were less than one year and $9.6 million of investment were after one year through two years. As of December 31, 2022, fifteen U.S. government treasury securities with an aggregate fair value of $133.2 million and an aggregate unrealized loss of $3.1 million were in a loss position for more than twelve months. The Company does not intend to sell the investments that are currently in an unrealized loss position, and it is highly unlikely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity. The Company did not sell any marketable securities for the years ended December 31, 2022 and 2020. For the year ended December 31, 2021, the Company sold marketable securities for the total proceeds of $10.7 million for an immaterial realized gain based on the specific identification method.

- 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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