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Fair Value Measurements
12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
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. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy has been established based on three levels of inputs, of which the first two are considered observable and the last unobservable.
Level 1: Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets.
Level 2: Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments.
Level 3: Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances.
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis
The Company measures certain financial assets at fair value on a recurring basis, including its marketable securities and certain cash equivalents. The Company considers all securities available-for-sale, including those with maturity dates beyond 12 months, and therefore these securities are classified within current assets on the Consolidated Balance Sheets as they are available to support current operational liquidity needs. The money market accounts are valued based on quoted market prices in active markets. The marketable securities are generally valued based on other observable inputs for those securities (including market corroborated pricing or other models that utilize observable inputs such as interest rates and yield curves) based on information provided by independent third-party pricing entities, except for U.S. Treasury securities which are valued based on quoted market prices in active markets.
The following tables set forth the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of the Company’s marketable securities accounted for as available-for-sale securities as of December 31, 2023 and 2022 (in thousands):
December 31, 2023
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Financial Assets:
Short-term marketable securities:
     U.S. Treasury securities$15,437 $— $(64)$15,373 
Yankee bonds2,601 — (13)2,588 
Agency bonds6,056 — (56)6,000 
Municipal bonds12,694 — (597)12,097 
     Commercial paper— — — — 
     Asset-backed securities4,971 — (37)4,934 
     Corporate bonds32,442 — (719)31,723 
Total$74,201 $— $(1,486)$72,715 
December 31, 2022
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Financial Assets:
Short-term marketable securities:
     U.S. Treasury securities$56,426 $— $(651)$55,775 
Yankee bonds5,358 — (92)5,266 
Agency bonds12,485 — (116)12,369 
Municipal bonds12,841 — (1,030)11,811 
     Commercial paper2,846 — 2,854 
     Asset-backed securities25,544 (427)25,119 
     Corporate bonds63,748 (2,136)61,615 
Total$179,248 $13 $(4,452)$174,809 
The Company had $1.7 million and $0.9 million of accrued interest receivable at December 31, 2023 and 2022, respectively, included in other assets on its Consolidated Balance Sheets related to its marketable securities. Realized gains or losses were immaterial for the years ended December 31, 2023, 2022 and 2021.
The following tables set forth the fair value of available-for-sale marketable securities by contractual maturity at December 31, 2023 and 2022 (in thousands):
December 31, 2023
One Year or LessOver One Year Through Five YearsOver Five YearsTotal
Financial Assets:
Marketable Securities:
     U.S. Treasury securities$15,373 $— $— $15,373 
Yankee bonds2,588 — — 2,588 
Agency bonds6,000 — — 6,000 
Municipal bonds3,528 8,569 — 12,097 
     Commercial paper— — — — 
     Asset-backed securities4,934 — — 4,934 
     Corporate bonds23,062 8,661 — 31,723 
Total$55,485 $17,230 $— $72,715 
December 31, 2022
One Year or LessOver One Year Through Five YearsOver Five YearsTotal
Financial Assets:
Marketable Securities:
     U.S. Treasury securities$40,795 $14,980 $— $55,775 
Yankee bonds2,734 2,532 — 5,266 
Agency bonds6,470 5,899 — 12,369 
Municipal bonds— 11,811 — 11,811 
     Commercial paper2,854 — — 2,854 
     Asset-backed securities23,179 1,940 — 25,119 
     Corporate bonds35,377 26,238 — 61,615 
Total$111,409 $63,400 $— $174,809 
The following tables set forth the Company’s cash equivalents and marketable securities accounted for as available-for-sale securities that were measured at fair value on a recurring basis based on the fair value hierarchy as of December 31, 2023 and 2022 (in thousands):
December 31, 2023
Level 1Level 2Level 3Total
Financial Assets:
Cash equivalents:
     Money market funds$334,762 $— $— $334,762 
     Commercial paper— — — — 
Marketable securities:
     U.S. Treasury securities15,373 — — 15,373 
Yankee bonds2,588 — — 2,588 
Agency bonds6,000 — — 6,000 
Municipal bonds12,097 — — 12,097 
     Commercial paper— — — — 
     Asset-backed securities— 4,934 — 4,934 
     Corporate bonds— 31,723 — 31,723 
Total$370,820 $36,657 $— $407,477 
December 31, 2022
Level 1Level 2Level 3Total
Financial Assets:
Cash equivalents:
     Money market funds$196,749 $— $— $196,749 
     Commercial paper— 36,965 — 36,965 
Marketable securities:
     U.S. Treasury securities55,775 — — 55,775 
Yankee bonds5,266 — — 5,266 
Agency bonds12,369 — — 12,369 
Municipal bonds11,811 — — 11,811 
     Commercial paper— 2,854 — 2,854 
     Asset-backed securities— 25,119 — 25,119 
     Corporate bonds— 61,615 — 61,615 
Total$281,970 $126,553 $— $408,523 
There were no transfers of financial assets or liabilities into or out of Level 1, Level 2, or Level 3 for the years ended December 31, 2023 and 2022.
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis
The carrying value of cash, certain cash equivalents, accounts receivable, net, other current assets, accounts payable, accrued expenses and other liabilities, and contract liabilities are considered reasonable estimates of their respective fair values at December 31, 2023 and 2022 due to their short-term nature.
The Company also measures certain non-financial assets at fair value on a nonrecurring basis, primarily intangible assets, goodwill, long-lived assets in connection with periodic evaluations for potential impairment. The Company estimates the fair value of these assets using primarily unobservable inputs and as such, these are considered Level 3 fair value measurements.