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Fair Value Measurements
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables set forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated by level within the fair value hierarchy (in thousands):
December 31, 2022
Level 1Level 2Level 3Total
Assets
Unrestricted cash equivalents and investments(1)
Money market funds$3,276 $— $— $3,276 
Certificates of deposit— 502,159 — 502,159 
Commercial paper— 963,150 — 963,150 
Corporate bonds— 61,501 — 61,501 
U.S. government securities— 7,060 — 7,060 
Total unrestricted cash equivalents and short-term investments3,276 1,533,870 — 1,537,146 
Restricted cash equivalents and investments(2)
Money market funds93,362 — — 93,362 
Certificates of deposit— 354,978 — 354,978 
Commercial paper— 595,591 — 595,591 
Corporate bonds— 14,916 — 14,916 
U.S. government securities— 74,534 — 74,534 
Total restricted cash equivalents and investments93,362 1,040,019 — 1,133,381 
Marketable equity securities(3)
1,136 — — 1,136 
Total financial assets$97,774 $2,573,889 $— $2,671,663 
Liabilities
Contingent consideration(4)
$— $— $15,000 $15,000 
Total financial liabilities$— $— $15,000 $15,000 
_______________
(1)$126.5 million of cash, $127.0 million of money market deposit accounts and $5.0 million of term deposits are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $1.8 billion of cash and cash equivalents and short-term investments on the consolidated balance sheets.
(2)$1.3 million of restricted cash and $3.5 million of a restricted term deposit are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $1.1 billion of restricted cash and cash equivalents and restricted short-term investments on the consolidated balance sheets.
(3)Included in other investments on the consolidated balance sheets.
(4)In the second quarter of 2022, the Company completed the acquisition of PBSC which included up to $15.0 million in contingent consideration to be paid over the next year. The contingent consideration was classified as a liability and included in accrued and other current liabilities on the consolidated balance sheets. Refer to Note 3 "Acquisitions" to the consolidated financial statements for information regarding this contingent consideration.
December 31, 2021
Level 1Level 2Level 3Total
Unrestricted Balances(1)
Money market funds$22,250 $— $— $22,250 
Certificates of deposit— 505,438 — 505,438 
Commercial paper— 806,388 — 806,388 
Corporate bonds— 99,705 — 99,705 
Total unrestricted cash equivalents and short-term investments22,250 1,411,531 — 1,433,781 
Restricted Balances(2)
Money market funds20,161 — — 20,161 
Certificates of deposit— 421,144 — 421,144 
Commercial paper— 523,489 — 523,489 
Corporate bonds— 63,458 — 63,458 
U.S. government securities— 31,717 — 31,717 
Total restricted cash equivalents and investments20,161 1,039,808 — 1,059,969 
Total unrestricted and restricted cash equivalents and investments$42,411 $2,451,339 $— $2,493,750 
_______________
(1)$104.8 million of cash, $330.3 million of money market deposit accounts and $385.0 million of term deposits are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $2.3 billion of cash and cash equivalents and short-term investments on the consolidated balance sheets.
(2)$53.7 million of restricted cash and $5.0 million of a restricted term deposit are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $1.1 billion of restricted cash and cash equivalents and restricted short-term investments on the consolidated balance sheets.
During the year ended December 31, 2022, the Company did not make any transfers between the levels of the fair value hierarchy.
Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
The Company’s non-marketable equity securities are investments in privately held companies without readily determinable fair values and the carrying value of these non-marketable equity securities are remeasured to fair value based on price changes from observable transactions of identical or similar securities of the same issuer (referred to as the measurement alternative) or for impairment. Any changes in carrying value are recorded within other income (expense), net in the consolidated statements of operations.
In June 2021 and June 2022, the Company received investments in a non-marketable equity security in a privately held company without a readily determinable market value as part of licensing and data access agreements. The investment had an initial carrying value of $128.1 million as of June 30, 2022 which was categorized as Level 3. The Company did not have the ability to exercise significant influence over this privately-held company and had elected to measure this investment as a non-marketable equity security and classified it in other investments on the consolidated balance sheet. The entire amount of the investment in the non-marketable equity security was impaired due to the announced winding down of the equity investee in October 2022. In addition to the impairment of this non-marketable equity security, an associated other asset was impaired, resulting in a total impairment of $135.7 million recorded to other income (expense), net on the consolidated statement of operations.
In February 2022, the issuer of the Company's $10.0 million investment in non-marketable equity securities in a privately held company was acquired by a publicly-traded company. As a result of the acquisition in exchange for the securities in the privately-held entity, the Company received common stock of a publicly-traded entity with a value of $8.4 million upon receipt, with the remainder to be received in cash. These shares are classified as marketable equity securities in the table above and measured at fair value on a recurring basis. The shares are categorized as Level 1 and changes in fair value are recorded within other income (expense), net in the consolidated statements of operations.
At December 31, 2022, there were $5.9 million of financial assets measured at fair value on a non-recurring basis within other investments on the consolidated balance sheets.
Reconciliation of Level 3 Financial Assets and Liabilities
The following table provides a reconciliation of the beginning balances of the Level 3 financial assets (in thousands):
Year Ended December 31,
20222021
Balance at beginning of period$80,411 $10,000 
Additions(1)
64,044 70,260 
Change in fair value(2)
(138,552)151 
Balance at end of period$5,903 $80,411 
_______________
(1)Relates to non-marketable equity securities included in other investments on the consolidated balance sheets.
(2)Includes a $128.1 million impairment related to an investment in the non-marketable equity security due to the announced winding down of the equity investee in the third quarter of 2022 and a $10.0 million reduction in securities in a privately-held company related to an exchange of securities in a privately-held entity following its acquisition. The impairment charge was recorded to other income (expense), net on the consolidated statement of operations.
The following table provides a reconciliation of the beginning balances of the Level 3 financial liabilities (in thousands):
Year Ended December 31,
20222021
Balance at beginning of period$— $— 
Additions(1)
14,100 — 
Change in fair value900 — 
Balance at end of period$15,000 $— 
_______________
(1)Relates the contingent consideration from the acquisition of PBSC, which are included in accrued and other current liabilities on the consolidated balance sheets. Refer to Note 3 "Acquisitions" to the consolidated financial statements for information regarding this contingent consideration.