Investments and Fair Value of Financial Assets and Liabilities

3 Months Ended

Mar. 31, 2020

Investments and Fair Value of Financial Assets and Liabilities

Investments and Fair Value of Financial Assets and Liabilities

3. Investments and Fair Value of Financial Assets and Liabilities

Investments by security type consisted of the following (in thousands):

	March 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Credit Losses		Fair Value
U.S. treasury bills and notes (due within one year)	$	94,843	$	529	$	—	$	—	$	95,372
U.S. government agency bonds (due within one year)		1,500		2		—		—		1,502
	$	96,343	$	531	$	—	$	—	$	96,874

	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. treasury bills and notes (due within one year)	$	189,816	$	91	$	(20)	$	189,887
U.S. government agency bonds (due within one year)		1,498		4		—		1,502
	$	191,314	$	95	$	(20)	$	191,389

The following tables present the Company’s fair value hierarchy for its assets and liabilities, which are measured at fair value on a recurring basis (in thousands):

	Fair value measurements at March 31, 2020 using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	133,017	$	—	$	—	$	133,017
U.S. treasury bills		—		11,500		—		11,500
Investments:
U.S. government agency bonds		—		1,502		—		1,502
U.S. treasury bills and notes		—		95,372		—		95,372
	$	133,017	$	108,374	$	—	$	241,391

	Fair value measurements at December 31, 2019 using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	91,898	$	—	$	—	$	91,898
Investments:
U.S. government agency bonds		—		1,502		—		1,502
U.S. treasury notes		—		189,887		—		189,887
	$	91,898	$	191,389	$	—	$	283,287

U.S. government money market funds were valued by the Company based on quoted market prices, which represent a Level 1 measurement within the fair value hierarchy. U.S. treasury notes and U.S. government agency bonds were valued by the Company using quoted prices in active markets for similar securities, which represent a Level 2 measurement within the fair value hierarchy. There have been no changes to the valuation methods during the three months ended March 31, 2020. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers between Level 1, Level 2 or Level 3 during the three months ended March 31, 2020.