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Fair Value Measurements | 9 Months Ended
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Sep. 30, 2022
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements The Company uses a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable. The three levels of fair value hierarchy are set forth below. The Company’s assessment of the hierarchy level of the assets or liabilities measured at fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities. The Company does not have any assets or liabilities classified as Level 3 as of September 30, 2022 and December 31, 2021. Fair Value Measurement of Financial Assets and Liabilities on a Recurring Basis The following table presents information about the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis as of September 30, 2022 and indicates the fair value hierarchy of the valuation (in thousands):
| Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Time deposits(i) | $ | 96,603 |  |  | $ | 96,603 |  |  | $ | — |  |  | $ | — |
Money market funds(ii) | 313,783 |  |  | 313,783 |  |  | — |  |  | — |
Commercial paper(i) | 35,604 |  |  | — |  |  | 35,604 |  |  | — |
Corporate debt securities(iii) | 21,608 |  |  | — |  |  | 21,608 |  |  | — |
U.S. government and U.S. government agency securities(i) | 38,458 |  |  | — |  |  | 38,458 |  |  | — |
Non-U.S. government securities(iv) | 3,916 |  |  | — |  |  | 3,916 |  |  | — |
Total cash equivalents and investments | 509,972 |  |  | 410,386 |  |  | 99,586 |  |  | — |
Interest rate derivatives(v) | 8,224 |  |  | — |  |  | 8,224 |  |  | — |
Total assets | $ | 518,196 |  |  | $ | 410,386 |  |  | $ | 107,810 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Foreign currency derivatives(vi) | $ | 4,267 |  |  | $ | — |  |  | $ | 4,267 |  |  | $ | — |
Total liabilities | $ | 4,267 |  |  | $ | — |  |  | $ | 4,267 |  |  | $ | — |
____________ (i)Included in cash equivalents and short-term investments on the condensed consolidated balance sheets. (ii)Included in cash equivalents on the condensed consolidated balance sheets. (iii)Included in short-term investments and other assets on the condensed consolidated balance sheets. (iv)Included in short-term investments on the condensed consolidated balance sheets. (v)Included in prepaid expenses and other current assets on the condensed consolidated balance sheets. (vi)Included in accrued and other liabilities on the condensed consolidated balance sheets. The following table presents information about the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis as of December 31, 2021 and indicates the fair value hierarchy of the valuation (in thousands):
| Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Time deposits(i) | $ | 41,024 |  |  | $ | 41,024 |  |  | $ | — |  |  | $ | — |
Money market funds(ii) | 180,013 |  |  | 180,013 |  |  | — |  |  | — |
Total money market funds and time deposits | 221,037 |  |  | 221,037 |  |  | — |  |  | — |
Foreign currency derivatives(iii) | 1,609 |  |  | — |  |  | 1,609 |  |  | — |
Total assets | $ | 222,646 |  |  | $ | 221,037 |  |  | $ | 1,609 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Foreign currency derivatives(iv) | $ | 52 |  |  | $ | — |  |  | $ | 52 |  |  | $ | — |
Interest rate derivatives(iv) | 7,725 |  |  | — |  |  | 7,725 |  |  | — |
Total liabilities | $ | 7,777 |  |  | $ | — |  |  | $ | 7,777 |  |  | $ | — |
_____________ (i)Included in cash equivalents and short-term investments on the condensed consolidated balance sheets. (ii)Included in cash equivalents on the condensed consolidated balance sheets. (iii)Included in prepaid expenses and other current assets, and other assets on the condensed consolidated balance sheets. (iv)Included in accrued liabilities on the condensed consolidated balance sheets. Money Market Funds, Time Deposits, and Available-For-Sale Debt Securities The Company uses a market approach for determining the fair value of all its Level 1 and Level 2 money market funds, time deposits, and available-for-sale debt securities. To value its money market funds and time deposits, the Company values the funds at $1 stable net asset value, which is the market pricing convention for identical assets that the Company has the ability to access. The Company's available-for-sale debt securities consist of commercial paper, corporate debt securities, U.S. government securities, U.S. government agency securities and non-U.S. government securities. The Company measures the fair values of these assets with the help of a pricing service that either provides quoted market prices in active markets for identical or similar securities or uses observable inputs for their pricing without applying significant adjustments. Foreign Currency and Interest Rate Derivatives and Hedging Instruments Level 2 inputs for the derivative valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically foreign currency rates and futures contracts) and inputs other than quoted prices that are observable for the asset or liability (specifically the LIBOR and Secured Overnight Financing Rate (“SOFR”) cash and swap rates, and credit risk at commonly quoted intervals). The Company records its derivative assets and liabilities on a gross basis in the condensed consolidated balance sheet and uses mid-market pricing as a practical expedient for fair value measurements. Key inputs for foreign currency derivatives are the spot rates, forward rates, interest rates, and credit derivative market rates. The spot rate for each foreign currency is the same spot rate used for all balance sheet translations at the measurement date and is sourced from the Federal Reserve Bulletin. The following values are interpolated from commonly quoted intervals: forward points and the SOFR used to discount and determine the fair value of assets and liabilities. Credit default swap spread curves identified per counterparty at month end are used to discount derivative assets for counterparty non-performance risk, all of which have terms of twelve months or less. The Company discounts derivative liabilities to reflect the Company’s own potential non-performance risk to lenders and has used the spread over SOFR on its most recent corporate borrowing rate. Key inputs for interest rate derivatives are the LIBOR curve consisting of cash rates for very short term, futures rates and swap rates beyond the derivative maturity. These rates are used to provide spot rates at resets specified by each derivative. Derivatives are discounted to present value at the measurement date using the SOFR curve. Credit default swap spread curves per counterparty and the BB Industrial credit spread curves (representing the Company’s credit risk) at month end are used to discount the interest rate derivatives for non-performance risk using the potential method. The counterparties associated with the Company’s foreign currency forward contracts and interest rate swaps are large credit-worthy financial institutions. The foreign currency derivatives transacted with these entities are relatively short in duration and the interest rate derivatives are spread between two counterparties; therefore, the Company does not consider counterparty concentration and non-performance to be material risks at this time. Both the Company and the counterparties are expected to perform under the contractual terms of the instruments. There were no transfers between Level 1, Level 2 and Level 3 categories during the three and nine months ended September 30, 2022 and 2021.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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