Fair Value Measurements

3 Months Ended

Mar. 31, 2023

4. Fair Value Measurements

The following tables present the Company’s fair value hierarchy for its assets, which are measured at fair value on a recurring basis (in thousands):


	Fair Value Measurements at March 31, 2023:
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	79,079	$	—	$	—	$	79,079
Marketable securities:
Commercial paper		—		125,603		—		125,603
Corporate bonds		—		112,266		—		112,266
Government securities		—		74,284		—		74,284
U.S. treasury securities		—		48,194		—		48,194
	$	79,079	$	360,347	$	—	$	439,426


	Fair Value Measurements at December 31, 2022:
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	240,803	$	—	$	—	$	240,803
Marketable securities:
Commercial paper		—		90,593		—		90,593
Corporate bonds		—		75,581		—		75,581
Government securities		—		35,646		—		35,646
U.S. treasury securities		—		28,537		—		28,537
	$	240,803	$	230,357	$	—	$	471,160

Money market funds were valued by the Company based on quoted market prices for identical securities, which represent a Level 1 measurement within the fair value hierarchy. Commercial paper, corporate bonds, government securities and U.S. treasury securities were valued by the Company using quoted prices in active markets for similar securities, which represent a Level 2 measurement within the fair value hierarchy. During the three months ended March 31, 2023 and 2022, there were no transfers in or out of Level 3.

- 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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