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Investments and Fair Value Measurements
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Investments and Fair Value Measurements Investments and Fair Value Measurements
The Company's total cash, cash equivalents and marketable securities as of September 30, 2022 and December 31, 2021 consisted of the following:
As of September 30,As of December 31,
20222021
(in thousands)
Cash and cash equivalents:
Cash$42,673 $134,774 
Money market funds45,224 31,294 
Total cash and cash equivalents (1)
$87,897 $166,068 
Marketable securities:
U.S. Treasury securities$327,868 $184,946 
Corporate notes and bonds84,342 11,327 
Commercial paper6,498 124,089 
Asset-backed securities6,464 21,576 
Municipal securities— 2,250 
Foreign government and supranational securities19,876 17,607 
Total marketable securities, current (2)
$445,048 $361,795 
U.S. Treasury securities— 239,528 
Corporate notes and bonds152,773 197,298 
Asset-backed securities31,077 77,142 
Municipal securities2,216 2,312 
Foreign government and supranational securities— 12,631 
Total marketable securities, non-current (3)
$186,066 $528,911 
Total marketable securities$631,114 $890,706 
Total cash, cash equivalents and marketable securities$719,011 $1,056,774 
(1)The Company's cash equivalents include investments with an original maturity date of three months or less.
(2)The Company classifies its marketable securities as current, where it intends to hold the securities for less than 12 months.
(3)The Company classifies its marketable securities are non-current, where it intends to hold the securities for longer than 12 months.
Available-for-Sale Investments
The Company’s marketable securities are classified as available-for-sale as of the balance sheet date and are reported at fair value with unrealized gains and losses reported, net of tax, as a separate component of accumulated other comprehensive income (loss) in stockholders’ equity.
The following table summarizes adjusted cost, gross unrealized gains and losses, and fair value related to available-for-sale securities classified as marketable securities as of September 30, 2022 and December 31, 2021:
As of September 30, 2022
Amortized
Cost		Gross
Unrealized
Gain		Gross
Unrealized
Loss		Fair
Value
(in thousands)
U.S. Treasury securities$333,851 $— $(5,983)$327,868 
Corporate notes and bonds242,536 — (5,421)237,115 
Commercial paper6,498 — — 6,498 
Asset-backed securities37,938 — (397)37,541 
Municipal securities2,323 — (107)2,216 
Foreign government and supranational securities20,070 — (194)19,876 
Total available-for-sale investments$643,216 $— $(12,102)$631,114 
As of December 31, 2021
Amortized
Cost		Gross
Unrealized
Gain		Gross
Unrealized
Loss		Fair
Value
(in thousands)
U.S. Treasury securities$425,560 $1 $(1,086)$424,475 
Corporate notes and bonds209,550 — (925)208,625 
Commercial paper124,098 — (9)124,089 
Asset-backed securities98,857 — (140)98,717 
Municipal securities4,577 — (15)4,562 
Foreign government and supranational securities30,306 — (68)30,238 
Total available-for-sale investments$892,948 $1 $(2,243)$890,706 
There were no material realized gains or losses from sales of marketable securities that were reclassified out of accumulated other comprehensive (loss) income into investment income during the three and nine months ended September 30, 2022 and 2021.
There were 19 securities in a continuous loss position for 12 months or longer as of September 30, 2022. No securities were in a continuous loss position for 12 months or longer as of December 31, 2021. Investments are reviewed periodically to identify possible other-than-temporary impairments. No impairment loss has been recorded on the securities included in either of the periods as the Company believes that the decrease in fair value of these securities is temporary. The Company does not intend to sell the impaired securities, nor is it more likely than not that the Company would be required to sell impaired securities before recovery of amortized cost basis.
Fair Value of Financial Instruments
For certain of the Company's financial instruments, including cash held in banks, accounts receivable, and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities;
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
Level 3—Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation.
The Company measures its cash equivalents, marketable securities, and restricted cash at fair value. The Company classifies its cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The fair value of the Company's Level 1 financial assets is based on quoted market prices of the identical underlying security. The fair value of the Company's Level 2 financial assets is based on inputs that are directly or indirectly observable in the market, including the readily available pricing sources for the identical underlying security that may not be actively traded.
Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments:
As of September 30, 2022
Level 1Level 2Level 3Total
(in thousands)
Cash equivalents:
Money market funds$45,224 $— $— $45,224 
Total cash equivalents45,224 — — 45,224 
Marketable securities:
Corporate notes and bonds— 237,115 — 237,115 
Commercial paper— 6,498 — 6,498 
U.S. Treasury securities— 327,868 — 327,868 
Municipal securities— 2,216 — 2,216 
Asset-backed securities— 37,541 — 37,541 
Foreign government and supranational securities— 19,876 — 19,876 
Total marketable securities— 631,114 — 631,114 
Restricted cash:
Restricted cash, current150 — — 150 
Total restricted cash150 — — 150 
Total financial assets$45,374 $631,114 $— $676,488 
As of December 31, 2021
Level 1Level 2Level 3Total
(in thousands)
Cash equivalents:
Money market funds$31,294 $— $— $31,294 
Total cash equivalents31,294 — — 31,294 
Marketable securities:
U.S. Treasury securities— 424,475 — 424,475 
Corporate notes and bonds— 208,625 — 208,625 
Commercial paper— 124,089 — 124,089 
Asset-backed securities— 98,717 — 98,717 
Municipal securities— 4,562 — 4,562 
Foreign government and supranational securities— 30,238 — 30,238 
Total marketable securities— 890,706 — 890,706 
Restricted cash:
Restricted cash, non-current893 — — 893 
Total restricted cash893 — — 893 
Total financial assets$32,187 $890,706 $— $922,893 
The Company classifies its investments, which are comprised of corporate notes and bonds, commercial paper, U.S. treasury securities, foreign government and supranational securities and asset-backed securities within Level 2 of the fair value hierarchy because the fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments.
Restricted cash was $0.2 million and $0.9 million as of September 30, 2022 and December 31, 2021, respectively. The restricted cash balance consisted of letters of credit related to lease arrangements that were collateralized by the Company's cash. The amounts as of September 30, 2022 and December 31, 2021, were classified as current and non-current, respectively, on the Company's Condensed Consolidated Balance Sheets.
There were no transfers of assets and liabilities measured at fair value between Level 1 and Level 2, or between Level 2 and Level 3, during the three and nine months ended September 30, 2022 and 2021.