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Fair Value Measurements and Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Fair Value of Financial Instruments Fair Value Measurements and Fair Value of Financial Instruments
The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Observable inputs other than Level 1 prices, 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.
Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.
The fair value of Level 1 securities is determined using quoted prices in active markets for identical assets. Level 1 securities consist of highly liquid money market funds. Financial assets and liabilities are considered Level 2 when their fair values are determined using inputs that are observable in the market or can be derived principally from or corroborated by observable market data such as pricing for similar securities, recently executed transactions, cash flow models with yield curves, and benchmark securities. In addition, Level 2 financial instruments are valued using comparisons to like-kind financial instruments and models that use readily observable market data as their basis. U.S. government and agency securities, commercial paper, corporate bond and certificates of deposit are valued primarily using market prices of comparable securities, bid/ask quotes, interest rate yields and prepayment spreads and are included in Level 2.
The following is a summary of the Company’s cash equivalents and short-term investments (in thousands):
December 31, 2021
Amortized
Cost Basis		Unrealized
Gains		Unrealized
Loses		Estimated
Fair Value
Level 1
Money market funds$10,311 $— $— $10,311 
Level 2
U.S. government and agency securities62,268 — (218)62,050 
Commercial paper177,215 1 (61)177,155 
Corporate bonds47,323 — (39)47,284 
Total cash equivalents and short-term investments297,117 1 (318)296,800 
Less: Cash equivalents(25,808)— 1 (25,807)
Total short-term investments$271,309 $1 $(317)$270,993 
December 31, 2020
Amortized
Cost Basis		Unrealized
Gains		Unrealized
Loses		Estimated
Fair Value
Level 1
Money market funds$178 $— $— $178 
Level 2
U.S. government and agency securities328,583 121 (5)328,699 
Commercial paper97,324 — (5)97,319 
Total cash equivalents and short-term investments426,085 121 (10)426,196 
Less: Cash equivalents(58,894)— 3 (58,891)
Total short-term investments$367,191 $121 $(7)$367,305 
As the Company may sell these securities at any time for use in current operations even if the securities have not yet reached maturity, all marketable securities are classified as current assets in the Company’s consolidated balance sheet. Management regularly reviews all of the Company’s investments for other-than-temporary declines in estimated fair value. Management determined that the gross unrealized losses on the Company’s marketable securities as of December 31, 2021 were temporary in nature and none were in continuous loss position for 12 months or more. Management concluded that none of the Company’s marketable securities were other-than-temporarily impaired as of December 31, 2021.
As of December 31, 2021, $47.0 million of marketable securities had remaining maturities between one and two years. The remainder of the marketable securities have a remaining maturity of one year or less.
There were no transfers within the hierarchy during the years ended December 31, 2021 and 2020.
During the year ended December 31, 2021, the Company performed an impairment test to measure certain right-of-use assets and leasehold improvements at fair value. The assets are measured at fair value on a non-recurring basis as a result of the occurrence of certain triggering events indicating the carrying value of the assets may not be recoverable, by comparing the sum of the estimated future undiscounted cash flows to the carrying amount of the assets. Refer to Note 5, Leases for additional information.