Financial Instruments

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Restricted cash, cash equivalents, and short-term investments are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:

•Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities.

•Level 2—Valuations based on quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration.

•Level 3—Valuations based on unobservable inputs reflecting our own assumptions used to measure assets and liabilities at fair value. These valuations require significant judgment.

The following table summarizes, by major security type, our restricted cash, cash equivalents, and short-term investments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as of December 31, 2022 (in thousands):


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Level 1:
Restricted cash and cash equivalents:
Restricted cash	$	20,604	$	—	$	—	$	20,604
Money market funds	373,619		—		—		373,619
Time deposits	412,125		—		—		412,125

Total restricted cash and cash equivalents	$	806,348	$	—	$	—	$	806,348

Short-term investments:

Short-term deposits	$	101,711	$	—	$	—	$	101,711



Total short-term investments	$	101,711	$	—	$	—	$	101,711

Cash equivalents and short-term investments consisted of the following as of December 31, 2021 (in thousands):


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Level 1:
Restricted cash and cash equivalents:
Restricted cash	$	10,823	$	—	$	—	$	10,823
Money market funds	73,138		—		—		73,138



Total restricted cash and cash equivalents	$	83,961	$	—	$	—	$	83,961

Level 2:
Short-term investments:
Commercial paper	$	59,792	$	—	$	—	$	59,792
Asset-backed securities	40,965		—		(23)		40,942
Corporate bonds	237,735		20		(353)		237,402
U.S. treasury securities	272,678		1		(379)		272,300
Supranational bonds	71,121		1		(235)		70,887

Total short-term investments	$	682,291	$	22	$	(990)	$	681,323

We did not recognize any credit losses related to our available-for-sale debt securities during the years ended December 31, 2022 and 2021.

There were no material realized or unrealized gains or losses, either individually or in the aggregate, during the years ended December 31, 2022 and 2021. During the year ended December 31, 2022, we sold the entirety of our available-for-sale debt securities portfolio.

Nonrecurring Fair Value Measurements

We hold equity investments in certain unconsolidated entities without a readily determinable fair value. These strategic investments represent less than a 20% ownership interest in each of the entities, and we do not have significant influence over or control of the entities. At December 31, 2022, equity investments totaled $31.1 million. Approximately $15.6 million of these equity investments were measured at cost. As part of the merger with ironSource, $15.5 million of these equity investments were measured at fair value using the market approach.