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Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

4. Fair Value of Financial Instruments

 

The following tables summarize the Company’s financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):

 

 

 

June 30, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

273,038

 

 

$

-

 

 

$

273,038

 

Commercial paper

 

 

-

 

 

 

8,439

 

 

 

8,439

 

U.S. treasury securities

 

 

-

 

 

 

1,994

 

 

 

1,994

 

Marketable securities:

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

-

 

 

 

741,607

 

 

 

741,607

 

Corporate notes and bonds

 

 

-

 

 

 

450,961

 

 

 

450,961

 

U.S. agency obligations

 

 

-

 

 

 

345,315

 

 

 

345,315

 

Commercial paper

 

 

-

 

 

 

81,970

 

 

 

81,970

 

Derivative instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

-

 

 

 

1,659

 

 

 

1,659

 

Total assets

 

$

273,038

 

 

$

1,631,945

 

 

$

1,904,983

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivative instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$

-

 

 

$

842

 

 

$

842

 

Total liabilities

 

$

-

 

 

$

842

 

 

$

842

 

 

 

 

December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

264,923

 

 

$

-

 

 

$

264,923

 

U.S. treasury securities

 

 

-

 

 

 

52,130

 

 

 

52,130

 

Marketable securities:

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

-

 

 

 

833,137

 

 

 

833,137

 

U.S. agency obligations

 

 

-

 

 

 

402,759

 

 

 

402,759

 

Corporate notes and bonds

 

 

-

 

 

 

279,709

 

 

 

279,709

 

Commercial paper

 

 

-

 

 

 

35,404

 

 

 

35,404

 

Derivative instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

-

 

 

 

3,219

 

 

 

3,219

 

Total assets

 

$

264,923

 

 

$

1,606,358

 

 

$

1,871,281

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivative instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$

-

 

 

$

1,272

 

 

$

1,272

 

Total liabilities

 

$

-

 

 

$

1,272

 

 

$

1,272

 

 

 

The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its U.S. treasury securities, corporate notes and bonds, U.S. agency obligations, commercial paper, and foreign currency forward contracts within Level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security that may not be actively traded. There were no transfers of financial instruments between valuation levels during the three and six months ended June 30, 2024 and 2023.

 

As of June 30, 2024 and December 31, 2023, the total estimated fair value of the Company’s 0% convertible senior notes due 2027 was $949.7 million and $917.9 million, respectively. The fair value was determined based on the quoted price of the convertible senior notes in an inactive market on the last trading day of the reporting period and is classified within Level 2 of the fair value hierarchy. See Note 8 for further information on the Company’s convertible senior notes.