Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Assets and liabilities measured at fair value at each balance sheet date are as follows (in thousands):


	September 30, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	350,803	$	—	$	—	$	350,803
U.S. government treasuries	24,998		—		—		24,998

Short-term marketable securities:
U.S. government treasuries	472,214		—		—		472,214
U.S. government agency securities	—		15,003		—		15,003
Corporate debt securities	—		61,182		—		61,182
Commercial paper	—		96,223		—		96,223
Long-term marketable securities:
U.S. government treasuries	299,069		—		—		299,069

Corporate debt securities	—		20,403		—		20,403

Total	$	1,147,084	$	192,811	$	—	$	1,339,895
Liabilities:
Foreign currency derivative contracts	$	—	$	201	$	—	$	201
Total	$	—	$	201	$	—	$	201


	December 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	335,284	$	—	$	—	$	335,284
U.S. government treasuries	149,997		—		—		149,997
Short-term marketable securities:
U.S. government treasuries	878,938		—		—		878,938
U.S. government agency securities	—		25,217		—		25,217
Corporate debt securities	—		27,180		—		27,180
Commercial paper	—		31,218		—		31,218
Long-term marketable securities:
U.S. government treasuries	2,561		—		—		2,561
Corporate debt securities	—		30,138		—		30,138
Foreign currency derivative contracts	—		185		—		185
Total	$	1,366,780	$	113,938	$	—	$	1,480,718
Liabilities:
Foreign currency derivative contracts	$	—	$	11	$	—	$	11
Total	$	—	$	11	$	—	$	11

The carrying amounts of cost sharing reimbursements due from related party, prepaid expenses and other current assets, accounts payable and accrued liabilities approximate their fair values due to their short-term maturities.

The Company’s Level 2 securities are valued using third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly.

The company has not transferred any assets or liabilities between the fair value measurement levels.

- 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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