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Fair Value Measurements
12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 12. Fair Value Measurements

The Company determines the fair values of its financial instruments based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following tables summarize assets and liabilities measured at fair value on a recurring basis:

 

 

 

December 31, 2023

 

(In thousands)

 

Total

 

 

Quoted market
prices in active
markets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents: money-market funds

 

$

25,986

 

 

$

25,986

 

 

$

 

Available-for-sale investments: U.S. treasury securities(1)

 

 

98,454

 

 

 

 

 

 

98,454

 

Trading securities: mutual funds(1)

 

 

8,304

 

 

 

8,304

 

 

 

 

Available-for-sale investments: convertible debt securities(2)

 

 

173

 

 

 

 

 

 

173

 

Foreign currency forward contracts(3)

 

 

291

 

 

 

 

 

291

 

Total assets measured at fair value

 

$

133,208

 

 

$

34,290

 

 

$

98,918

 

Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(4)

 

$

1,691

 

 

$

 

 

$

1,691

 

Total liabilities measured at fair value

 

$

1,691

 

 

$

 

 

$

1,691

 

 

 

 

 

December 31, 2022

 

(In thousands)

 

Total

 

 

Quoted market
prices in active
markets
(Level 1)

 

 

Significant
other
observable
inputs
(Level 2)

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents: money-market funds

 

$

25,744

 

 

$

25,744

 

 

$

 

Available-for-sale investments: U.S. treasury securities(1)

 

 

73,800

 

 

 

 

 

 

73,800

 

Trading securities: mutual funds(1)

 

 

6,946

 

 

 

6,946

 

 

 

 

Available-for-sale investments: certificates of deposit(1)

 

 

6

 

 

 

 

 

 

6

 

Available-for-sale investments: convertible debt securities(2)

 

 

346

 

 

 

 

 

 

346

 

Foreign currency forward contracts(3)

 

 

652

 

 

 

 

 

652

 

Total assets measured at fair value

 

$

107,494

 

 

$

32,690

 

 

$

74,804

 

Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts(4)

 

$

4,083

 

 

$

 

 

$

4,083

 

Total liabilities measured at fair value

 

$

4,083

 

 

$

 

 

$

4,083

 

 

(1)
Included in Short-term investments on the Company’s consolidated balance sheets.
(2)
$173,000 included in Short-term investments and the remaining included in Other non-current assets on the Company’s consolidated balance sheets for the year ended December 31, 2022.
(3)
Included in Prepaid expenses and other current assets on the Company’s consolidated balance sheets.
(4)
Included in Other accrued liabilities on the Company’s consolidated balance sheets.

 

The Company’s investments in money-market funds and mutual funds are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company’s investments in U.S. treasury securities are classified within Level 2 of the fair value hierarchy because they are valued based on readily available pricing sources for comparable or identical instruments in less active markets. The Company’s investments in convertible debt securities issued by a publicly held company and certificates of deposits are classified within Level 2 of the fair value hierarchy as the fair value for the instrument approximates its cost based on the contractual terms of the arrangement. The Company’s foreign currency forward contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that consider the contract terms as well as currency rates and counterparty credit rates. The Company verifies the reasonableness of these pricing models using observable market data for related inputs into such models. The Company enters into foreign currency forward contracts with only those counterparties that have long-term credit ratings of A-/A3 or higher. The carrying value of non-financial assets and liabilities measured at fair value in the financial statements on a recurring basis, including accounts receivable and accounts payable, approximate fair value due to their short maturities.