Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Note 3. Fair Value Measurements

The Company measures and reports its cash equivalents, restricted cash, and investments at fair value.

Money market funds are measured at fair value on a recurring basis using quoted prices and are classified as Level 1. Investments are measured at fair value based on inputs other than quoted prices that are derived from observable market data and are classified as Level 2 inputs.

Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements by major security type as of September 30, 2020 and December 31, 2019 are presented in the following tables (in thousands):

	Fair Value Measurements at September 30, 2020
	Total		Level 1		Level 2		Level 3
Money market funds	$	61,172	$	61,172	$	—	$	—
Certificates of deposit		39,296		—		39,296		—
Municipal notes		3,061		—		3,061		—
Corporate notes		81,112		—		81,112		—
Government and agency notes		11,192		—		11,192		—
Total	$	195,833	$	61,172	$	134,661	$	—

	Fair Value Measurements at December 31, 2019
	Total		Level 1		Level 2		Level 3
Money market funds	$	30,054	$	30,054	$	—	$	—
Certificates of deposit		20,046		—		20,046		—
Repurchase agreements		15,000		—		15,000		—
Corporate notes		38,783		—		38,783		—
Government notes		7,574		—		7,574		—
Commercial paper		1,096		—		1,096		—
Total	$	112,553	$	30,054	$	82,499	$	—

The following table summarizes the available-for-sale securities (in thousands):

	Fair Value Measurements at September 30, 2020
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Money market funds	$	61,172	$	—	$	—		$	61,172
Certificates of deposit		39,046		250		—			39,296
Municipal notes		3,060		1		—			3,061
Corporate notes		80,871		274		(33	)		81,112
Government and agency notes		11,171		22		(1	)		11,192
Total cash equivalents and investments	$	195,320	$	547	$	(34	)	$	195,833

Classified as:
Cash equivalents (maturities within 90 days)								$	62,152
Short-term investments (maturities within one year)									73,548
Long-term investments (maturities beyond 1 year)									60,133
Total cash equivalents and investments								$	195,833

	Fair Value Measurements at December 31, 2019
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Money market funds	$	30,054	$	—	$	—		$	30,054
Certificates of deposit		19,992		54		—			20,046
Repurchase agreements		15,000		—		—			15,000
Corporate notes		38,788		—		(5	)		38,783
Government notes		7,563		11					7,574
Commercial paper		1,096		—		—			1,096
Total cash equivalents and investments	$	112,493	$	65	$	(5	)	$	112,553

Classified as:
Cash equivalents (maturities within 90 days)								$	47,140
Short-term investments (maturities within one year)									48,650
Long-term investments (maturities beyond 1 year)									16,763
Total cash equivalents and investments								$	112,553

As of September 30, 2020, the weighted average remaining contractual maturities of available-for-sale securities was approximately 11 months. There have been no significant realized losses on available-for-sale securities for the period presented. Based on the Company’s review of its available-for-sale securities, the Company has a limited number of available-for-sale securities in insignificant loss positions as of September 30, 2020, none of which have been in a loss position for more than one year. The Company believes it had no other-than-temporary impairments on these securities as of September 30, 2020, because the Company does not intend to sell these securities nor does the Company believe that it will be required to sell these securities before the recovery of their amortized cost basis.

The investments are classified as available-for-sale securities. At September 30, 2020 and December 31, 2019, the balance in the Company’s accumulated other comprehensive income was comprised solely of activity related to the Company’s available-for-sale securities. There were no realized gains or losses recognized on the sale or maturity of available-for-sale securities for the three or nine months ended September 30, 2020 and as a result, the Company did not reclassify any amounts out of accumulated other comprehensive income for the quarter.

There were no transfers between Levels 1, 2 or 3 for the period presented.

- 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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