Marketable Securities and Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Marketable Securities and Fair Value Measurements

As of December 31, 2019, marketable securities by security type consisted of:


(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Commercial paper (due within one year)	$	314,292	$	74	$	(23)	$	314,343
U.S. Government securities (due within one year)	78,612		48		(3)		78,657
Certificates of deposit (due within one year)	66,241		17		(2)		66,256
Total	$	459,145	$	139	$	(28)	$	459,256

The Company had no marketable securities as of December 31, 2018.

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:


As of December 31, 2019 (in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	—	$	28,192	$	—	$	28,192
Certificates of deposit	—		20,500		—		20,500
Marketable securities:
Commercial paper	—		314,343		—		314,343
U.S. Government securities	—		78,657		—		78,657
Certificates of deposit	—		66,256		—		66,256
Total	$	—	$	507,948	$	—	$	507,948


As of December 31, 2018 (in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	—	$	267,145	$	—	$	267,145
Total	$	—	$	267,145	$	—	$	267,145

The tables above exclude certificates of deposit of $1.5 million and $1.1 million as of December 31, 2019 and December 31, 2018, respectively, that the Company held to secure a letter of credit associated with a lease and to secure a credit card account in 2019. The certificates of deposit are measured at carrying value in the consolidated balance sheets in long-term investment—restricted and approximate fair value. For additional information on the letter of credit associated with a lease, please read Note 6, Leases, to these consolidated financial statements.

During the years ended December 31, 2019 and 2018, there were no transfers between Level 1, Level 2 and Level 3. The fair value of Level 2 instruments classified as cash equivalents and marketable securities were determined through third-party pricing services. The pricing services use many observable market inputs to determine value, including reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates, and other industry and economic events.

- 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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