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Financial Instruments
6 Months Ended
Jun. 30, 2022
Investments, All Other Investments [Abstract]  
Financial Instruments Financial Instruments
Cash, Cash Equivalents and Marketable Securities

The following tables summarize our cash and cash equivalents, and marketable securities on our Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (in thousands):
Reported as:
June 30, 2022Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair ValueCash and Cash EquivalentsMarketable securities, short-termMarketable securities, long-term
Cash$758,365 $— $— $758,365 $758,365 $— $— 
Money market funds119,148 — (12)119,136 119,136 — — 
Corporate bonds70,808 — (2,812)67,996 — 8,488 59,508 
U.S. government treasury bonds
18,609 — (495)18,114 — 6,490 11,624 
Asset-backed securities7,042 — (59)6,983 — 3,113 3,870 
Municipal bonds5,541 — (100)5,441 — 4,047 1,394 
U.S. government agency bonds1,201 — (46)1,155 — — 1,155 
Total$980,714 $— $(3,524)$977,190 $877,501 $22,138 $77,551 

Reported as:
December 31, 2021Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair ValueCash and Cash EquivalentsMarketable securities, short-termMarketable securities, long-term
Cash$754,802 $— $— $754,802 $754,802 $— $— 
Money market funds343,012 — (2)343,010 343,010 — — 
Corporate bonds115,507 (398)115,118 1,042 35,065 79,011 
U.S. government treasury bonds
42,976 — (48)42,928 — 22,251 20,677 
Asset-backed securities32,031 — (40)31,991 — 10,999 20,992 
Municipal bonds7,628 — (15)7,613 516 3,657 3,440 
U.S. government agency bonds1,201 — (1)1,200 — — 1,200 
Total$1,297,157 $$(504)$1,296,662 $1,099,370 $71,972 $125,320 

The following table summarizes the fair value of our available-for-sale marketable securities classified by contractual maturity as of June 30, 2022 and December 31, 2021 (in thousands):

June 30, 2022December 31, 2021
Due in 1 year or less $17,185 $59,737 
Due in 1 year through 5 years82,504 139,113 
Total$99,689 $198,850 

The securities that we invest in are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-market unrealized loss. Our unrealized losses as of June 30, 2022 and December 31, 2021 are primarily due to changes in interest rates and credit spreads.

Fair Value Measurements

Fair value is an exit price, representing the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use the GAAP fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value:

Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities 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 asset or liability. We obtain fair values for our Level 2 investments. Our custody bank and asset managers independently use professional pricing services to gather pricing data which may include quoted market prices for identical or comparable financial instruments, or inputs other than quoted prices that are observable either directly or indirectly, and we are ultimately responsible for these underlying estimates.

Level 3 — Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.

The following tables summarize our financial assets measured at fair value as of June 30, 2022 and December 31, 2021 (in thousands):
DescriptionBalance as of
June 30, 2022
Level 1

Level 2
Level 3
Cash equivalents:
Money market funds$119,136 $119,136 $— $— 
Short-term investments:
U.S. government treasury bonds6,490 6,490 — — 
Corporate bonds8,488 — 8,488 — 
Municipal bonds4,047 — 4,047 — 
Asset-backed securities3,113 — 3,113 — 
Long-term investments:
U.S. government treasury bonds11,624 11,624 — — 
Corporate bonds59,508 — 59,508 — 
Municipal bonds1,394 — 1,394 — 
U.S. government agency bonds1,155 — 1,155 — 
Asset-backed securities3,870 — 3,870 — 
Other assets:
Investments in privately held companies11,793 — — 11,793 
$230,618 $137,250 $81,575 $11,793 
DescriptionBalance as of December 31, 2021Level 1Level 2Level 3
Cash equivalents:
Money market funds$343,010 $343,010 $— $— 
Corporate bonds1,042 — 1,042 — 
Municipal bonds516 — 516 — 
Short-term investments:
U.S. government treasury bonds22,251 22,251 — — 
Corporate bonds35,065 — 35,065 — 
Municipal bonds3,657 — 3,657 — 
Asset-backed securities10,999 — 10,999 — 
Long-term investments:
U.S. government treasury bonds
20,677 20,677 — — 
Corporate bonds79,011 — 79,011 — 
Municipal bonds
3,440 — 3,440 — 
U.S. government agency bonds
1,200 — 1,200 — 
Asset-backed securities
20,992 — 20,992 — 
Prepaid expenses and other current assets:
Israeli funds3,841 — 3,841 — 
Other assets:
Investments in privately held companies8,621 — — 8,621 
$554,322 $385,938 $159,763 $8,621 

Derivatives Not Designated as Hedging Instruments

We enter into foreign currency forward contracts to minimize the short-term impact of foreign currency exchange rate fluctuations on certain trade and intercompany receivables and payables. These forward contracts are classified within Level 2 of the fair value hierarchy. As a result of the settlement of foreign currency forward contracts, during the three months ended June 30, 2022 and 2021, we recognized a net gain of $10.8 million and a net loss of $13.0 million, respectively, and during the six months ended June 30, 2022 we recognized a net gain of $9.2 million. The net loss recognized during the six months ended June 30, 2021 was not material. As of June 30, 2022 and December 31, 2021, the fair value of foreign exchange forward contracts outstanding was not material.

The following tables present the gross notional value of all our foreign exchange forward contracts outstanding as of June 30, 2022 and December 31, 2021 (in thousands):
June 30, 2022
Local Currency AmountNotional Contract Amount (USD)
Euro€147,830$154,164 
Chinese Yuan¥719,300107,297 
Polish ZlotyPLN351,50077,556 
Canadian DollarC$95,20073,748 
Brazilian RealR$317,00059,913 
Japanese Yen¥6,081,00044,744 
British Pound£34,09741,333 
Swiss FrancCHF22,50023,536 
Mexican PesoM$282,70013,988 
Israeli ShekelILS43,16012,380 
Australian DollarA$4,6003,170 
$611,829 
December 31, 2021
Local Currency AmountNotional Contract Amount (USD)
Euro€165,110$186,358 
Canadian DollarC$99,80078,018 
Chinese Yuan¥494,50077,358 
Polish ZlotyPLN219,80054,014 
Brazilian RealR$286,50050,894 
Japanese Yen¥5,548,70048,206 
British Pound£34,74046,881 
Israeli ShekelILS54,11017,416 
Mexican PesoM$311,50015,133 
Swiss FrancCHF9,95010,883 
Australian DollarA$6,9005,009 
$590,170