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. |
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