Cash and Investments

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Cash, Cash Equivalents and Restricted Cash Equivalents

A reconciliation of cash, cash equivalents and restricted cash equivalents reported in the accompanying Condensed Consolidated Balance Sheets to the amount reported within the accompanying Condensed Consolidated Statements of Cash Flows was as follows (in thousands):


	March 31, 2023		December 31, 2022
Cash and cash equivalents	$	540,597	$	501,195

Restricted cash equivalents included in other long-term assets	1,482		1,482
Cash, cash equivalents and restricted cash equivalents as reported within the accompanying Condensed Consolidated Statements of Cash Flows	$	542,079	$	502,677

Restricted cash equivalents are used to collateralize letters of credit agreements and are invested primarily in certificates of deposit with original maturity of 90 days or less. The restricted cash equivalents are classified as other long-term assets.

Cash, Cash Equivalents, Restricted Cash Equivalents and Investments

Cash, cash equivalents, restricted cash equivalents and investments consisted of the following (in thousands):


	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt securities available-for-sale:
Commercial paper	$	684,917	$	—	$	—	$	684,917
Corporate bonds	823,100		2,105		(10,274)		814,931
U.S. Treasury and government-sponsored enterprises	367,479		466		(3,859)		364,086
Municipal bonds	11,480		—		(144)		11,336
Total debt securities available-for-sale	1,886,976		2,571		(14,277)		1,875,270
Cash	64		—		—		64
Money market funds	165,941		—		—		165,941
Certificates of deposit	79,955		—		—		79,955
Total cash, cash equivalents, restricted cash equivalents and investments	$	2,132,936	$	2,571	$	(14,277)	$	2,121,230


	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt securities available-for-sale:
Commercial paper	$	722,018	$	—	$	—	$	722,018
Corporate bonds	810,439		541		(13,132)		797,848
U.S. Treasury and government-sponsored enterprises	338,218		48		(5,679)		332,587
Municipal bonds	16,385		—		(223)		16,162
Total debt securities available-for-sale	1,887,060		589		(19,034)		1,868,615
Cash	41		—		—		41
Money market funds	94,344		—		—		94,344
Certificates of deposit	103,681		—		—		103,681
Total cash, cash equivalents, restricted cash equivalents and investments	$	2,085,126	$	589	$	(19,034)	$	2,066,681

Interest receivable was $10.1 million and $7.3 million as of March 31, 2023 and December 31, 2022, respectively, and is included in prepaid expenses and other current assets in the accompanying Condensed Consolidated Balance Sheets.

Realized gains and losses on the sales of investments were immaterial during the three months ended March 31, 2023 and 2022.

We manage credit risk associated with our investment portfolio through our investment policy, which limits purchases to high-quality issuers and limits the amount of our portfolio that can be invested in a single issuer. The fair value and gross unrealized losses on debt securities available-for-sale in an unrealized loss position were as follows (in thousands):


	March 31, 2023
	Fair Value		Gross Unrealized Losses
Corporate Bonds	$	551,038	$	(10,274)

U.S. Treasury and government-sponsored enterprises	283,051		(3,859)
Municipal bonds	11,336		(144)

Total	$	845,425	$	(14,277)


	December 31, 2022
	Fair Value		Gross Unrealized Losses
Corporate bonds	$	706,711	$	(13,132)
U.S. Treasury and government-sponsored enterprises	308,307		(5,679)
Municipal bonds	15,792		(223)
Total	$	1,030,810	$	(19,034)

There were 237 and 285 debt securities available-for-sale in an unrealized loss position as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023, all securities have been in an unrealized loss position for less than twelve months except for 91 debt securities available-for-sale with an aggregate fair value of $317.1 million and an aggregate $6.3 million unrealized loss. As of December 31, 2022, all securities have been in an unrealized loss position for less than twelve months except for 81 debt securities available-for-sale with an aggregate fair value of $237.6 million and an aggregate $6.1 million unrealized loss.

During the three months ended March 31, 2023, we did not record an allowance for credit losses or other impairment charges on our investment securities. Based upon our quarterly impairment review, we determined that the

unrealized losses were not attributed to credit risk but were primarily associated with changes in interest rates and market liquidity. Based on the scheduled maturities of our investments, we determined that it was more likely than not that we will hold these investments for a period of time sufficient for a recovery of our cost basis.

The fair value of debt securities available-for-sale by contractual maturity was as follows (in thousands):


	March 31, 2023		December 31, 2022
Maturing in one year or less	$	1,071,653	$	1,114,884
Maturing after one year through five years	803,617		753,731
Total debt securities available-for-sale	$	1,875,270	$	1,868,615