Fair Value Measurement

3 Months Ended

Mar. 31, 2024

Available-for-sale marketable securities consisted of the following (in thousands):


	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Asset-backed securities	$	2,384	$	—	$	(5)	$	2,379
Corporate debt securities	43,118		2		(64)		43,056
U.S. treasury securities	239,347		36		(106)		239,277

Agency bonds	9,180		—		(22)		9,158
Commercial paper	4,954		—		—		4,954
Total marketable securities, available-for-sale	$	298,983	$	38	$	(197)	$	298,824


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Asset-backed securities	$	3,512	$	—	$	(8)	$	3,504
Corporate debt securities	6,022		1		(10)		6,013
U.S. treasury securities	175,996		200		(12)		176,184
Agency bonds	16,119		—		(16)		16,103

Commercial paper	15,826		—		—		15,826
Total marketable securities, available-for-sale	$	217,475	$	201	$	(46)	$	217,630

As of March 31, 2024, 33 available-for-sale marketable securities with a fair market value of $215.5 million were in a gross unrealized loss position of $0.2 million. Based on our review of these marketable securities, we believe none of the unrealized loss is as a result of a credit loss as of March 31, 2024 because we do not intend to sell these securities and it is not more-likely-than-not that we will be required to sell these securities before the recovery of their amortized cost basis.

The estimated fair value of our contractual maturities of available-for-sale debt securities were as follows (in thousands):


	March 31, 2024		December 31, 2023

Due within one year	$	235,059	$	197,633
Due after one year but within five years	63,765		19,997
Total estimated fair value of contractual maturities, available-for-sale	$	298,824	$	217,630

The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):


	March 31, 2024						December 31, 2023
	Level 1		Level 2		Total Estimated Fair Value		Level 1		Level 2		Total Estimated Fair Value
Assets
Cash equivalents
Money market funds	$	20,276	$	—	$	20,276	$	22,142	$	—	$	22,142
U.S. treasury securities	30,000		—		30,000		2,000		—		2,000


Available-for-sale marketable securities
Asset-backed securities	—		2,379		2,379		—		3,504		3,504
Corporate debt securities	—		43,056		43,056		—		6,013		6,013
U.S. treasury securities	239,277		—		239,277		176,184		—		176,184
Agency bonds	9,158		—		9,158		16,103		—		16,103

Commercial paper	—		4,954		4,954		—		15,826		15,826
Derivative instruments
Currency hedging contracts (1)	—		1,574		1,574		—		—		—
Total assets	$	298,711	$	51,963	$	350,674	$	216,429	$	25,343	$	241,772

Liabilities
Derivative instruments
Currency hedging contracts (1)	$	—	$	478	$	478	$	—	$	9,480	$	9,480

(1) Based on observable market transactions of spot currency rates, forward currency rates or equivalently-termed instruments. Carrying amounts of the financial assets and liabilities are equal to the fair value. As of March 31, 2024, the derivative assets and liabilities recorded within prepaid expenses and other current assets, prepaid expense and other assets and other long-term liabilities in our condensed consolidated balance sheets were $1.3 million, $0.3 million and $0.5 million, respectively.

We had no available for sale securities that were classified within Level 3 as of March 31, 2024 and December 31, 2023.

- 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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