Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):

	Fair Value Measurements at March 31, 2022
	(Unaudited)
	Total			Level 1		Level 2		Level 3
Assets:
Current:
Cash and cash equivalents	$	36,385		$	36,385	$	—	$	—
Equity securities	8,117			8,117		—		—
Corporate debt securities	147,679			—		147,679		—
Foreign bonds	113			113		—		—
Mutual funds	38			38		—		—
Noncurrent:
Foreign bonds	865			865		—		—
Total assets measured at fair value	$	193,197		$	45,518	$	147,679	$	—
Liabilities:
Accrued litigation payable	$	12,507	(1)	$	12,507	$	—	$	—
Contingent consideration	401		(2)	380		—		21
Total liabilities measured at fair value	$	12,908		$	12,887	$	—	$	21

	Fair Value Measurements at December 31, 2021
	Total			Level 1		Level 2		Level 3
Assets:
Current:
Cash and cash equivalents	$	181,101	(3)	$	51,421	$	129,680	$	—
Equity securities	6,698			6,698		—		—
Corporate debt securities	129,164			—		129,164		—
Foreign bonds	115			115		—		—
Mutual funds	38			38		—		—
Noncurrent:
Foreign bonds	822			822		—		—
Total assets measured at fair value	$	317,938		$	59,094	$	258,844	$	—
Liabilities:
Contingent consideration	$	409	(2)	$	388	$	—	$	21

_______________

(1) The accrued litigation payable was measured at fair value as the liability will be settled by the issuance of 2,229,296 shares of the company’s common stock. The closing price of our common stock was used to calculate the fair value of the liability as of March 31, 2022, which will be remeasured each period until settlement. See Note 7, Commitments and Contingencies—Litigation, for further information.

(2) Contingent consideration is recorded at estimated fair value and revalued each reporting period until the related contingency is resolved. The fair value measurement is based on inputs that are unobservable and significant to the overall fair value measurement (i.e., a Level 3 measurement within the fair value hierarchy) and are reviewed periodically by management. See Note 7, Commitments and Contingencies—Contingent Consideration Related to Business Combinations, for further information.

(3) Amounts shown as a Level 2 measurement as of December 31, 2021 include government-sponsored securities of $75.0 million, corporate debt securities of $54.2 million, and commercial paper of $0.5 million with original maturities of less than 90 days.

Summary of Changes in Carrying Amount of Contingent Consideration

Changes in the carrying amount of contingent consideration were as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
	(Unaudited)
Fair value, beginning of period	$	409	$	972
Net decrease in fair value	(8)		(128)
Fair value, end of period	$	401	$	844