Cash and Cash Equivalents, and Investments and Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents, and Investments and Fair Value Measurements

The following tables show our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of June 30, 2022 and December 31, 2021 (in thousands except for fair value levels):


	June 30, 2022
	Fair Value Level	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash		$	45,885	$	—	$	—	$	45,885

Money market funds	Level 1	199,003		—		—		199,003
Commercial paper	Level 2	157,234		—		(33)		157,201
Total cash and cash equivalents		$	402,122	$	—	$	(33)	$	402,089
Short-term investments:
Commercial paper	Level 2	$	81,649	$	—	$	(382)	$	81,267
Corporate debt securities	Level 2	831,482		10		(9,889)		821,603
U.S. treasury securities	Level 1	79,675		—		(1,257)		78,418

Total short-term investments		$	992,806	$	10	$	(11,528)	$	981,288
Long-term investments:
Corporate debt securities	Level 2	$	198,816	$	8	$	(5,582)	$	193,242
U.S. treasury securities	Level 1	74,535		—		(2,048)		72,487

Total long-term investments		$	273,351	$	8	$	(7,630)	$	265,729


	December 31, 2021
	Fair Value Level	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
Cash and cash equivalents:
Cash		$	30,324	$	—	$	—	$	30,324
Money market funds	Level 1	823,754		—		—		823,754

Total cash and cash equivalents		$	854,078	$	—	$	—	$	854,078
Short-term investments:
Commercial paper	Level 2	$	124,211	$	2	$	(33)	$	124,180
Corporate debt securities	Level 2	552,609		36		(546)		552,099

Agency bonds	Level 2	15,500		2		—		15,502
Total short-term investments		$	692,320	$	40	$	(579)	$	691,781
Long-term investments:
Corporate debt securities	Level 2	$	724,517	$	—	$	(3,277)	$	721,240
U.S. treasury securities	Level 1	24,860		—		(107)		24,753

Total long-term investments		$	749,377	$	—	$	(3,384)	$	745,993

As of June 30, 2022, we determined that the declines in the market value of our investment portfolio were not driven by credit related factors. During the three and six months ended June 30, 2022 and 2021 we did not recognize any losses on our investments due to credit related factors. During the three and six months ended June 30, 2022 and 2021, our gross realized gains and losses on investments were not significant.

The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2022 (in thousands):


	Adjusted Cost		Fair Value
Due in 1 year or less	$	1,150,040	$	1,138,489
Due in 1-2 years	273,351		265,729
Investments not due at a single maturity date	199,003		199,003
Total	$	1,622,394	$	1,603,221

Investments not due at a single maturity date in the preceding table consisted of money market funds.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value with the exception of the notes. The estimated fair value of the notes was determined based on the trading price of the notes as of the last day of trading for the period. We consider the fair value of the notes to be a Level 2 measurement due to the limited trading activity. The estimated fair value of the 2026 notes as of June 30, 2022 and December 31, 2021 was $725.0 million and $840.0 million, respectively. The estimated fair value of the 2025 notes as of June 30, 2022 and December 31, 2021 was $588.3 million and $682.2 million, respectively. For further information on the notes, refer to Note 8, “Convertible Senior Notes.”