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Fair Value Measurements

6 Months Ended

Jun. 30, 2023

8. Fair Value Measurements

The following tables present the major security types we held at June 30, 2023 and December 31, 2022 that we regularly measure and carry at fair value. The following tables segregate each security type by the level within the fair value hierarchy of the valuation techniques we utilized to determine the respective security’s fair value (in thousands):

	At June 30, 2023		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash equivalents (1)	$	316,359	$	316,359	$	—
Corporate debt securities (2)		816,361		—		816,361
Debt securities issued by U.S. government agencies (3)		318,966		—		318,966
Debt securities issued by the U.S. Treasury (4)		809,112		809,112		—
Debt securities issued by states of the U.S. and political subdivisions of the states (4)		53,792		—		53,792
Publicly traded equity securities included in other current assets (5)		8,222		8,222		—
Total	$	2,322,812	$	1,133,693	$	1,189,119

	At December 31, 2022		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash equivalents (1)	$	211,655	$	211,655	$	—
Corporate debt securities (6)		726,950		—		726,950
Debt securities issued by U.S. government agencies (4)		165,055		—		165,055
Debt securities issued by the U.S. Treasury (4)		748,475		748,475		—
Debt securities issued by states of the U.S. and political subdivisions of the states (4)		74,917		—		74,917
Other municipal debt securities (4)		5,994		—		5,994
Publicly traded equity securities included in other current assets (5)		10,539		10,539		—
Total	$	1,943,585	$	970,669	$	972,916

The following footnotes reference lines in our condensed consolidated balance sheets:

(1)	Included in cash and cash equivalents in our condensed consolidated balance sheets.

(2)	$33.7 million was included in cash and cash equivalents, with the difference included in short-term investments, in our condensed consolidated balance sheets.

(3)	$4.0 million was included in cash and cash equivalents, with the difference included in short-term investments, in our condensed consolidated balance sheets.

(4)	Included in short-term investments in our condensed consolidated balance sheets.

(5)	Included in other current assets in our condensed consolidated balance sheets.

(6)	$11.0 million was included in cash and cash equivalents, with the difference included in short-term investments, in our condensed consolidated balance sheets.

Convertible Notes

Our 1.75% Notes, 0% Notes and 0.125% Notes had a fair value of $576.3 million, $599.8 million and $107.5 million at June 30, 2023, respectively. Our 0% Notes and 0.125% Notes had a fair value of $587.3 million and $498.9 million at December 31, 2022, respectively. We determine the fair value of our notes based on quoted market prices for these notes, which are Level 2 measurements because the notes do not trade regularly.

- 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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