Cash and Investments

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Cash, Cash Equivalents and Investments

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


	June 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt securities available-for-sale:
Commercial paper	$	646,523	$	—	$	—	$	646,523
Corporate bonds	828,044		174		(12,050)		816,168
U.S. Treasury and government-sponsored enterprises	413,747		9		(6,359)		407,397
Municipal bonds	11,140		—		(140)		11,000
Total debt securities available-for-sale	1,899,454		183		(18,549)		1,881,088

Money market funds	124,270		—		—		124,270
Certificates of deposit	100,072		—		—		100,072
Total cash, cash equivalents and investments	$	2,123,796	$	183	$	(18,549)	$	2,105,430


	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 and investments	$	2,085,126	$	589	$	(19,034)	$	2,066,681

As of December 31, 2022, $1.5 million in certificates of deposit were used to collateralize letters of credit agreements and were classified as other long-term assets based upon the remaining term of the underlying restriction. As of June 30, 2023, there are no restrictions on cash, cash equivalents or investments.

Interest receivable was $11.4 million and $7.3 million as of June 30, 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 and six months ended June 30, 2023 and 2022.

We manage credit risk associated with our investment portfolio through our investment policy, which limits purchases to high-quality issuers and 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):


	June 30, 2023
	Fair Value		Gross Unrealized Losses
Corporate bonds	$	761,913	$	(12,050)

U.S. Treasury and government-sponsored enterprises	404,405		(6,359)
Municipal bonds	8,645		(140)

Total	$	1,174,963	$	(18,549)


	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 330 and 285 debt securities available-for-sale in an unrealized loss position as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, all securities had been in an unrealized loss position for less than twelve months except for 97 debt securities available-for-sale with an aggregate fair value of $325.5 million and an aggregate $7.1 million unrealized loss. As of December 31, 2022, all securities had 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 six months ended June 30, 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 values of debt securities available-for-sale by contractual maturity were as follows (in thousands):


	June 30, 2023		December 31, 2022
Maturing in one year or less	$	1,042,473	$	1,114,884
Maturing after one year through five years	838,615		753,731
Total debt securities available-for-sale	$	1,881,088	$	1,868,615