Fair Value Measurements

12 Months Ended

Dec. 31, 2023

4. Fair Value Measurements

The following tables present information about our financial instruments that are measured at fair value on a recurring basis:


	As of December 31, 2023
	Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Financial Assets:
Government bonds included within short-term investments	$	28,968	$	—	$	28,968	$	—
Derivative financial instruments included in prepaid expenses and other current assets	308		—		308		—
Total financial assets	$	29,276	$	—	$	29,276	$	—

Financial Liabilities:
Derivative financial instruments included in accrued expenses and other current liabilities	$	462	$	—	$	462	$	—
Total financial liabilities	$	462	$	—	$	462	$	—


	As of December 31, 2022
	Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Financial Liabilities:
Derivative financial instruments included in accrued expenses and other current liabilities	$	2,397	$	—	$	2,397	$	—
Total financial liabilities	$	2,397	$	—	$	2,397	$	—

As of December 31, 2023 and 2022, we did not have any Level 3 financial instruments that are measured at fair value on a recurring basis.

We classify our derivative financial instruments and government bonds within Level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Refer to Note 5 for more information regarding our derivative financial instruments.

Refer to Note 8 below for more information regarding the fair value of our indemnification guarantees.

Debt Securities

Short-term investments consisted of the following:


	As of December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Government bonds	$	28,882	$	229	$	(143)	$	28,968
Total short-term investments	$	28,882	$	229	$	(143)	$	28,968

There were no short-term investments as of December 31, 2022. The following table summarizes the estimated fair value of investments in available-for-sale marketable debt securities by effective contractual maturity dates:


	As of December 31, 2023
Due in 1 year or less	$	28,968
Total	$	28,968

As of December 31, 2023, the unrealized losses related to short-term investments were not due to credit related losses. Therefore, we did not recognize an allowance for credit losses for our short-term investments. As of December 31, 2023, we did not have any available-for-sale debt securities that have been in a continuous loss position

- 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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