Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Financial Instruments Measured at Fair Value on a Recurring Basis

The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis as of the dates indicated by level within the fair value hierarchy (in thousands):


	September 30, 2020
	Level 1		Level 2		Level 3		Total
Unrestricted Balances(1)
Money market funds	$	—	$	—	$	—	$	—
Certificates of deposit	—		627,666		—		627,666
Commercial paper	—		417,902		—		417,902
Corporate bonds	—		363,701		—		363,701
Total unrestricted cash equivalents and investments	—		1,409,269		—		1,409,269
Restricted Balances(2)
Money market funds	35,323		—		—		35,323
Certificates of deposit	—		536,269		—		536,269
Commercial paper	—		460,475		—		460,475
Corporate bonds	—		201,817		—		201,817
U.S. treasury securities	2,499		—		—		2,499
Total restricted cash equivalents and investments	37,822		1,198,561		—		1,236,383
Total unrestricted and restricted cash equivalents and investments	$	37,822	$	2,607,830	$	—	$	2,645,652

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(1)$219.3 million of cash, $203.8 million of money market deposit accounts and $621.0 million of term deposits are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $2.5 billion of cash and cash equivalents and short-term investments on the condensed consolidated balance sheets.

(2)$63.1 million of restricted cash, $8.6 million of a money market deposit account and $7.8 million of a restricted term deposit are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $1.3 billion of restricted cash and cash equivalents and restricted short-term investments on the condensed consolidated balance sheets.


	December 31, 2019
	Level 1		Level 2		Level 3		Total
Unrestricted Balances(1)
Certificates of deposit	$	—	$	1,276,594	$	—	$	1,276,594
Commercial paper	—		876,495		—		876,495
Corporate bonds	—		247,578		—		247,578
Total unrestricted cash equivalents and short-term investments	—		2,400,667		—		2,400,667
Restricted Balances(2)
Money market funds	19,250		—		—		19,250
Certificates of deposit	—		608,828		—		608,828
Commercial paper	—		791,155		—		791,155
Corporate bonds	—		75,908		—		75,908
Total restricted cash equivalents and investments	19,250		1,475,891		—		1,495,141
Total unrestricted and restricted cash equivalents and investments	$	19,250	$	3,876,558	$	—	$	3,895,808

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(1)$96.9 million of cash, $217.5 million of money market deposit accounts and $135.0 million of term deposits are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $2.9 billion of cash and cash equivalents and short-term investments on the condensed consolidated balance sheets.

(2)$56.4 million of restricted cash, $7.9 million of a money market deposit account and $7.8 million of a restricted term deposit are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $1.6 billion of restricted cash and cash equivalents and restricted short-term investments on the condensed consolidated balance sheets.

The fair value of the Company’s Level 1 financial instruments is based on quoted market prices for identical instruments. The fair value of the Company’s Level 2 fixed income securities is obtained from an independent pricing service,

which may use quoted market prices for identical or comparable instruments or model driven valuations using observable market data or inputs corroborated by observable market data. Level 3 instrument valuations are valued based on unobservable inputs and other estimation techniques due to the absence of quoted market prices, inherent lack of liquidity and the long-term nature of such financial instruments.

During the nine months ended September 30, 2020, the Company did not make any transfers between the levels of the fair value hierarchy.

Financial Instruments Measured at Fair Value on a Non-Recurring Basis

In March 2020, the Company purchased a non-marketable equity security for total cash consideration of $10.0 million that is classified in other investments on the condensed consolidated balance sheets. The non-marketable equity security will be remeasured to fair value upon the occurrence of observable transactions for an identical or similar investments of the same issuer or impairment. As of September 30, 2020, there were no remeasurement adjustments.

- 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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