Marketable Securities and Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Marketable Securities and Fair Value Measurements

The following tables present marketable securities by contractual maturity and security type:


As of December 31, 2021 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Due within one year:

Commercial paper	$	105,433	$	1	$	(44)	$	105,390
Corporate debt securities	61,721		—		(70)		61,651
Certificates of deposit	23,528		1		(7)		23,522
U.S. government securities	8,008		—		—		8,008
Due after one year through five years:
Corporate debt securities	37,003		—		(129)		36,874
U.S. government securities	5,094		—		(18)		5,076
Total	$	240,787	$	2	$	(268)	$	240,521


As of December 31, 2020 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Due within one year:
U.S. government securities	$	298,335	$	49	$	(1)	$	298,383
Commercial paper	62,037		9		(15)		62,031
Corporate debt securities	38,309		—		(34)		38,275
Certificates of deposit	17,344		1		(1)		17,344
Due after one year through five years:

U.S. government securities	9,370		5		—		9,375
Total	$	425,395	$	64	$	(51)	$	425,408

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, 2021 (in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	—	$	47,800	$	—	$	47,800
U.S. government securities	—		—		—		—
Marketable securities:
U.S. government securities	—		13,084		—		13,084
Commercial paper	—		105,390		—		105,390
Corporate debt securities	—		98,525		—		98,525
Certificates of deposit	—		23,522		—		23,522
Total	$	—	$	288,321	$	—	$	288,321


As of December 31, 2020 (in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	—	$	46,676	$	—	$	46,676
Certificates of deposit	—		30,000		—		30,000
Marketable securities:
U.S. government securities	—		307,758		—		307,758
Commercial paper	—		62,031		—		62,031
Corporate debt securities	—		38,275		—		38,275
Certificates of deposit	—		17,344		—		17,344
Total	$	—	$	502,084	$	—	$	502,084

The tables above exclude certificates of deposit of $3.1 million as of both December 31, 2021 and 2020 that the Company held to secure a letter of credit associated with its leases and to secure a credit card account. The certificates of deposit are measured at carrying value in the consolidated balance sheets in long-term investments—restricted and approximate fair value. For additional information on the letter of credit associated with the Company's leases, please read Note 7, Leases, to these consolidated financial statements.

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. The Company performs validation procedures to ensure the reasonableness of this data. The Company performs its own review of prices received from the independent pricing services by comparing these prices to other sources. After completing the validation procedures, the Company did not adjust or override any fair value measurements provided by the pricing services as of December 31, 2021 and 2020.

- 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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