Fair value measurements

6 Months Ended

Jun. 30, 2022

The following table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine these fair values as of June 30, 2022 (in thousands):


	Fair Value		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	57,033	$	57,033	$	—	$	—

Marketable securities:
Corporate debt securities	264,071		—		264,071		—
U.S. government debt securities	50,779		—		50,779		—
U.S. Treasury securities	25,691		—		25,691		—
Total cash equivalents and marketable securities	$	397,574	$	57,033	$	340,541	$	—

There have been no transfers between fair value levels during the six months ended June 30, 2022.


	Fair Value		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	59,162	$	59,162	$	—	$	—
Corporate debt securities	11,649		—		11,649		—
U.S. Treasury securities	5,000		—		5,000		—
Marketable securities:
Corporate debt securities	308,300		—		308,300		—
U.S. government debt securities	37,883		—		37,883		—
U.S. Treasury securities	29,172		—		29,172		—
Total cash equivalents and marketable securities	$	451,166	$	59,162	$	392,004	$	—

The Company classifies its money market funds, which are valued based on quoted market prices in active markets, with no valuation adjustment, as Level 1 assets within the fair value hierarchy.

Marketable securities consist of U.S. Treasury securities, U.S. government debt securities, and corporate debt securities, all of which are classified as available-for-sale pursuant to Accounting Standards Codification, ASC, 320, Investments – Debt and Equity Securities. Marketable securities are classified within Level 2 of the fair value hierarchy because pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined using models or other valuation methodologies on a recurring basis.

- 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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