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Fair Value Measurements
3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 6—Fair Value Measurements
The Company has characterized its investments in marketable securities, based on the priority of the inputs used to value the investments, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), and lowest priority to unobservable inputs (Level 3). If the inputs used to measure the investments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the investment. Investments recorded in the accompanying Consolidated Balance Sheets are categorized based on the inputs to valuation techniques as follows:
Level 1 These are investments where values are based on unadjusted quoted prices for identical assets in an active market that the Company has the ability to access.
Level 2 These are investments where values are based on quoted market prices in markets that are not active or model derived valuations in which all significant inputs are observable in active markets.
Level 3 These are financial instruments where values are derived from techniques in which one or more significant inputs are unobservable. The Company did not have any Level 3 instruments as of March 31, 2022 and December 31, 2021.
Short- and long-term investments and certain cash equivalents consist of investments in debt securities that are available-for-sale. The following table sets forth the cost, gross unrealized losses, gross unrealized gains, and fair values of the Company’s investments as of the dates indicated (in thousands):
 CostGross
Unrealized
Holding
Loss
Gross
Unrealized
Holding
Gain
Fair ValueCash and Cash EquivalentsShort-term InvestmentsLong-term Investments
March 31, 2022
Cash$196,005 $— $— $196,005 $196,005 $— $— 
Level 1
Money market funds547,825 — — 547,825 547,825 — — 
U.S. Government and agency securities63,432 (290)— 63,142 — 55,264 7,878 
611,257 (290)— 610,967 547,825 55,264 7,878 
Level 2
Certificate of deposit21,317 (35)21,289 2,166 19,123 — 
Commercial paper44,291 (100)44,195 10,241 33,954 — 
Corporate bonds173,228 (1,852)— 171,376 — 117,642 53,734 
238,836 (1,987)11 236,860 12,407 170,719 53,734 
$1,046,098 $(2,277)$11 $1,043,832 $756,237 $225,983 $61,612 
December 31, 2021
Cash $214,771 $— $— $214,771 $214,771 $— $— 
Level 1
Money market funds556,427 — — 556,427 556,427 — — 
U.S. Government and agency securities60,311 (55)11 60,267 — 52,632 7,635 
616,738 (55)11 616,694 556,427 52,632 7,635 
Level 2
Certificate of deposit20,709 (7)20,703 — 20,703 — 
Commercial paper25,235 (14)25,222 8,998 16,224 — 
Corporate bonds192,727 (481)10 192,256 — 114,857 77,399 
238,671 (502)12 238,181 8,998 151,784 77,399 
$1,070,180 $(557)$23 $1,069,646 $780,196 $204,416 $85,034 
The Company evaluates fair value for each individual security in the investment portfolio. All investments in an unrealized loss position have been in an unrealized loss position for less than 12 months as of March 31, 2022.
The Company typically invests in short- and long-term instruments, including fixed-income funds and U.S. Government and agency securities aligned with the Company’s investment strategy. The maturities of the Company’s non-current marketable debt securities generally range from greater than 12 and up to 37 months.
Disclosure of Fair Values
The Company’s financial instruments that are not remeasured at fair value in the Consolidated Balance Sheets include the Notes. See “Note 8—Debt” for additional information. The Company estimates the fair value of the Notes through inputs that are observable in the market, classified as Level 2 as described above. The following table presents the carrying value and estimated fair value of the Notes as of the dates indicated (in thousands):
As of March 31, 2022As of December 31, 2021
Carrying ValueFair ValueCarrying ValueFair Value
2021 Notes$988,204 $879,601 $987,729 $1,165,519 
2020 Notes643,536 645,724 643,237 862,774 
2019 Notes644,680 1,039,288 644,390 1,644,869 
2018 Notes (1)60 205 62 375 
$2,276,480 $2,564,818 $2,275,418 $3,673,537 
(1)Contemporaneously with the partial repurchase of the 2018 Notes in the third quarter of 2020, the Company agreed with the counterparties to the associated capped call instrument (the “2018 Capped Call Transactions”) that the 2018 Capped Call Transactions would remain outstanding with a maturity of March 2023 and there was no exchange of any consideration for such agreement. See “Note 8—Debt” for more information on the Company’s capped call transactions.
The carrying value of other financial instruments, including accounts receivable, funds receivable and seller accounts, accounts payable, and funds payable and amounts due to sellers approximate fair value due to the immediate or short-term maturity associated with these instruments.