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Fair Value Measurement | 9 Months Ended
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Sep. 30, 2022
Fair Value Disclosures [Abstract] |
Fair Value Measurement | Note 4. Fair Value Measurement The Company’s financial assets subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows (amounts in thousands):
|  | Fair Value Measured as of September 30, 2022 |  |  |  |
|  | Level 1 |  |  | Level 2 |  |  | Total |
Assets included in: |  |  |  |  |  |  |  |  |
Money market funds(1) |  | $ | 231,866 |  |  | $ | — |  |  | $ | 231,866 |
Commercial paper(2) |  |  | — |  |  |  | 107,198 |  |  |  | 107,198 |
U.S. government securities(2) |  |  | — |  |  |  | 616,489 |  |  |  | 616,489 |
Corporate notes and bonds(2) |  |  | — |  |  |  | 196,575 |  |  |  | 196,575 |
Total fair value |  | $ | 231,866 |  |  | $ | 920,262 |  |  | $ | 1,152,128 |
|  | Fair Value Measured as of December 31, 2021 |  |  |  |
|  | Level 1 |  |  | Level 2 |  |  | Total |
Assets included in: |  |  |  |  |  |  |  |  |
Money market funds(1) |  | $ | 227,826 |  |  | $ | — |  |  | $ | 227,826 |
Commercial paper(2) |  |  | — |  |  |  | 233,400 |  |  |  | 233,400 |
U.S. government securities(2) |  |  | — |  |  |  | 722,310 |  |  |  | 722,310 |
Corporate notes and bonds(2) |  |  | — |  |  |  | 257,384 |  |  |  | 257,384 |
Total fair value |  | $ | 227,826 |  |  | $ | 1,213,094 |  |  | $ | 1,440,920 |
(1) Money market funds are included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. (2) As of September 30, 2022 and December 31, 2021, marketable securities with original maturities of three months or less of $62.9 million and $86.1 million, respectively, are included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. Level 1 assets: Money market funds are classified as Level 1 within the fair value hierarchy, as fair value is based on unadjusted quoted prices in active markets for identical assets. Level 2 assets: Investments in commercial paper, U.S. government securities and corporate notes and bonds are classified as Level 2 as they were valued based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. The Company had no financial liabilities subject to fair value measurements on a recurring basis as of September 30, 2022 and December 31, 2021. There have been no changes to the valuation methods utilized during the nine months ended September 30, 2022. As of September 30, 2022 and December 31, 2021, the carrying values of cash and cash equivalents, accounts payable and accrued liabilities approximate their respective fair values due to their short-term nature. Marketable Securities The following table summarizes, by major security type, the Company’s assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. Amortized cost net of unrealized gain (loss) is equal to fair value as of September 30, 2022 and December 31, 2021. The fair value as of September 30, 2022 and December 31, 2021 are as follows (amounts in thousands):
|  | September 30, 2022 |
|  | Amortized Cost |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Fair Value |
Level 1 securities |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 231,866 |  |  | $ | — |  |  | $ | — |  |  | $ | 231,866 |
Level 2 securities |  |  |  |  |  |  |  |  |  |  |  |
Commercial paper |  |  | 107,198 |  |  |  | — |  |  |  | — |  |  |  | 107,198 |
U.S. government securities |  |  | 629,591 |  |  |  | 7 |  |  |  | (13,109 | ) |  |  | 616,489 |
Corporate notes and bonds |  |  | 205,551 |  |  |  | — |  |  |  | (8,976 | ) |  |  | 196,575 |
Total |  | $ | 1,174,206 |  |  | $ | 7 |  |  | $ | (22,085 | ) |  | $ | 1,152,128 |
|  | December 31, 2021 |
|  | Amortized Cost |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Fair Value |
Level 1 securities |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 227,826 |  |  | $ | — |  |  | $ | — |  |  | $ | 227,826 |
Level 2 securities |  |  |  |  |  |  |  |  |  |  |  |
Commercial paper |  |  | 233,400 |  |  |  | — |  |  |  | — |  |  |  | 233,400 |
U.S. government securities |  |  | 724,554 |  |  |  | — |  |  |  | (2,244 | ) |  |  | 722,310 |
Corporate notes and bonds |  |  | 259,348 |  |  |  | — |  |  |  | (1,964 | ) |  |  | 257,384 |
Total |  | $ | 1,445,128 |  |  | $ | — |  |  | $ | (4,208 | ) |  | $ | 1,440,920 |
Realized gains and losses and interest income are included in interest income. The Company regularly reviews its available-for-sale marketable securities in an unrealized loss position and evaluates the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, and current economic conditions. The following tables display additional information regarding gross unrealized losses and fair value by major security type for the 100 and 118 marketable securities in an unrealized loss position as of September 30, 2022 and December 31, 2021, respectively (amounts in thousands):
|  | September 30, 2022 |
|  | Less than 12 Consecutive Months |  |  | 12 Consecutive Months or Longer |  |  | Total |
|  | Gross Unrealized Loss |  |  | Fair Value |  |  | Gross Unrealized Loss |  |  | Fair Value |  |  | Gross Unrealized Loss |  |  | Fair Value |
U.S. government securities |  | $ | (7,873 | ) |  | $ | 497,088 |  |  | $ | (5,236 | ) |  | $ | 107,960 |  |  | $ | (13,109 | ) |  | $ | 605,048 |
Corporate notes and bonds |  |  | (1,395 | ) |  |  | 48,643 |  |  |  | (7,581 | ) |  |  | 147,932 |  |  |  | (8,976 | ) |  |  | 196,575 |
Total |  | $ | (9,268 | ) |  | $ | 545,731 |  |  | $ | (12,817 | ) |  | $ | 255,892 |  |  | $ | (22,085 | ) |  | $ | 801,623 |
|  | December 31, 2021 |
|  | Less than 12 Consecutive Months |  |  | 12 Consecutive Months or Longer |  |  | Total |
|  | Gross Unrealized Loss |  |  | Fair Value |  |  | Gross Unrealized Loss |  |  | Fair Value |  |  | Gross Unrealized Loss |  |  | Fair Value |
U.S. government securities |  | $ | (2,239 | ) |  | $ | 700,318 |  |  | $ | (5 | ) |  | $ | 17,011 |  |  | $ | (2,244 | ) |  | $ | 717,329 |
Corporate notes and bonds |  |  | (1,964 | ) |  |  | 257,384 |  |  |  | — |  |  |  | — |  |  |  | (1,964 | ) |  |  | 257,384 |
Total |  | $ | (4,203 | ) |  | $ | 957,702 |  |  | $ | (5 | ) |  | $ | 17,011 |  |  | $ | (4,208 | ) |  | $ | 974,713 |
The unrealized losses were attributable to changes in interest rates that impacted the value of the investments, and not increased credit risk. During the nine months ended September 30, 2022, the Company received proceeds of $15.2 million, including interest, from the sale of available-for-sale marketable securities. There were no sales during the three months ended September 30, 2022. During the three and nine months ended September 30, 2021, the Company received proceeds of $51.0 million and $173.3 million, including interest, from the sale of available-for-sale marketable securities. The Company realized immaterial gains and losses as a result of such sales for the three and nine months ended September 30, 2022 and 2021. The Company does not intend to sell the investments that are in an unrealized loss position, nor is it more likely than not that the Company will be required to sell the investments before the recovery of the amortized cost basis, which may be its maturity. Accordingly, the Company did no t record an allowance for credit losses associated with these investments. The estimated amortized cost and fair value of available-for-sale securities by contractual maturity as of September 30, 2022 are as follows (amounts in thousands):
|  | September 30, 2022 |
|  | Amortized Cost |  |  | Fair Value |
Due within one year |  | $ | 900,414 |  |  | $ | 893,149 |
Due after one year and through five years |  |  | 273,792 |  |  |  | 258,979 |
Total |  | $ | 1,174,206 |  |  | $ | 1,152,128 |

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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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