Fair Value Measurements

9 Months Ended

Sep. 30, 2023

5. Fair Value Measurements

The following tables set forth the fair values of financial assets as of September 30, 2023 and December 31, 2022 that were measured at fair value on a recurring basis (in thousands):


	September 30, 2023
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	63,981	$	—	$	—	$	63,981
Commercial paper		—		2,871		—		2,871
U.S. government treasury and agency securities		—		273,311		—		273,311
Corporate bonds		—		6,237		—		6,237
Total financial assets	$	63,981	$	282,419	$	—	$	346,400


	December 31, 2022
	Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	38,502	$	—	$	—	$	38,502
Commercial paper		—		9,969		—		9,969
U.S. government treasury securities		—		385,848		—		385,848
Corporate bonds		—		12,349		—		12,349
Total financial assets	$	38,502	$	408,166	$	—	$	446,668

Level 1 securities include highly liquid money market funds, for which we measure the fair value based on quoted prices in active markets for identical assets or liabilities. Level 2 securities consist of U.S. government treasury and agency securities, corporate bonds and commercial paper, and are valued based on recent trades of securities in inactive markets or on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.

- 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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