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Fair Value Measurements | 12 Months Ended
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Dec. 31, 2021
Fair Value Measurements | 3. Fair Value Measurements Fair Value Measured on a Recurring Basis Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of December 31, 2021 and 2020:
|  | As of December 31, 2021 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Money market accounts |  | $ | 460,936 |  |  | $ | — |  |  | $ | — |  |  | $ | 460,936 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration - earnout obligation |  | $ | — |  |  | $ | — |  |  | $ | 94,238 |  |  | $ | 94,238 |
|  | As of December 31, 2020 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Money market accounts |  | $ | 549,030 |  |  | $ | — |  |  | $ | — |  |  | $ | 549,030 |
Cash and cash equivalents As of December 31, 2021 and 2020, cash and cash equivalents on the Company’s consolidated balance sheets included $460.9 million and $549.0 million, respectively, in money market accounts. These funds are valued on a recurring basis using Level 1 inputs. Contingent Consideration – Earnout On September 20, 2021, the Company completed the acquisition of Avitide (the "Avitide Acquisition"), a privately-held affinity ligand discovery and development company headquartered in Lebanon, New Hampshire. The transaction consisted of upfront payments of $150.0 million and up to an additional $125.0 million (undiscounted) in contingent consideration earnout payments made equally in cash and the Company's common stock over a three-year performance period beginning January 1, 2022 and ending December 31, 2024. See Note 4, "Acquisitions" below for additional information. A reconciliation of the change in fair value of contingent consideration – earnout is included in the following table (amounts in thousands):
Balance as of December 31, 2020 |  | $ | — |
Acquisition date fair value of contingent consideration - earnout |  |  | 88,373 |
Contingent consideration expense |  |  | 5,865 |
Balance as of December 31, 2021 |  | $ | 94,238 |
The recurring Level 3 fair value measurement of our contingent consideration – earnout that we expect to be required to settle, include the following significant unobservable inputs:
Contingent Consideration Earnout |  | Fair Value as of December 31, 2021 (amounts in thousands) |  | Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average(1)
|  |  |  |  |  | Probability of |  |  |  |
Commercialization-based |  |  |  | Monte Carlo |  | Success |  | 100% |  | 100%
payments |  | $ | 29,717 |  | Simulation |  | Earnout Discount Rate |  | 1.6%-2.4% |  | 2%
|  |  |  |  |  | Volatility |  | 22.8% |  | 22.8%
Revenue and Volume- |  |  |  | Monte Carlo |  | Revenue & Volume |  |  |  |
based payments |  | $ | 64,521 |  | Simulation |  | Discount Rate |  | 7.1% |  | 7.1%
|  |  |  |  |  | Earnout Discount Rate |  | 1.6%-2.4% |  | 2%
(1) Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. The Company estimates the fair value of the contingent consideration earnouts using a Monte Carlo simulation. Changes in the projected performance of the acquired business could result in a higher or lower contingent consideration obligation in the future. During the fourth quarter of 2021, we recorded a contingent consideration expense of $5.9 million to the Company’s consolidated statement of comprehensive income. Fair Value Measured on a Nonrecurring Basis During 2021, there were no re-measurements to fair value of financial assets and liabilities that are measured at fair value on a nonrecurring basis. Convertible Senior Notes In July 2019, the Company issued $287.5 million aggregate principal amount of the Company’s 0.375% Convertible Senior Notes due July 15, 2024 (the “2019 Notes”). Interest is payable semi-annually in arrears on January 15 and July 15 of each year. The 2019 Notes will mature on July 15, 2024 unless earlier converted or repurchased in accordance with their terms. At December 31, 2021 and 2020, the carrying value of the 2019 Notes was $255.3 million and $243.7 million, respectively, net of unamortized discount, and the fair value of the 2019 Notes was $678.5 million and $501.0 million, respectively. The fair value of the 2019 Notes is a Level 1 valuation and was determined based on the most recent trade activity of the 2019 Notes as of December 31, 2021. The 2019 Notes are discussed in more detail in Note 13, “Convertible Senior Notes,” to these consolidated financial statements. There were no remeasurements to fair value during the year ended December 31, 2021 of financial assets and liabilities that are not measured at fair value on a recurring basis.

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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 http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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