Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Assets measured at fair value on recurring basis

The following tables summarize assets and liabilities recognized or at fair value on a recurring basis as of June 30, 2021 and December 31, 2020:

	June 30, 2021
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	77,330	$	—	$	—	$	77,330
Commercial paper	—		28,087		—		28,087
Certificate of deposits	—		4,100		—		$	4,100
Marketable securities:
U.S. Treasury securities	—		21,147		—		21,147
Certificate of deposits	—		166,087		—		166,087
Commercial debt securities	—		50,355		—		50,355
U.S. Government-sponsored enterprises debt securities	—		6,209		—		6,209
Corporate debt securities	—		10,401		—		10,401
Total(1)	$	77,330	$	286,386	$	—	$	363,716
Liabilities:
Contingent consideration	$	—	$	—	$	39,000	$	39,000

	December 31, 2020
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	80,986	$	—	$	—	$	80,986
Commercial paper	—		61,043		—		61,043
Certificate of deposits	—		1,000		—		1,000
Marketable securities:
U.S. Treasuries	—		43,050				43,050
Commercial paper	—		210,986				210,986
Certificate of deposits	—		44,480				44,480
U.S. Government-sponsored enterprises debt securities	—		6,217				6,217
Corporate debt securities	—		33,460		—		33,460
Total(1)	$	80,986	$	400,236	$	—	$	481,222
Liabilities:
Contingent consideration	$	—	$	—	$	42,400	$	42,400

————————————(1)Fair value is determined by taking into consideration valuations obtained from third-party pricing services. The third-party pricing services utilize industry standard valuation models, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; and other observable inputs.

Liabilities measured at fair value on recurring basis

The following tables summarize assets and liabilities recognized or at fair value on a recurring basis as of June 30, 2021 and December 31, 2020:

	June 30, 2021
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	77,330	$	—	$	—	$	77,330
Commercial paper	—		28,087		—		28,087
Certificate of deposits	—		4,100		—		$	4,100
Marketable securities:
U.S. Treasury securities	—		21,147		—		21,147
Certificate of deposits	—		166,087		—		166,087
Commercial debt securities	—		50,355		—		50,355
U.S. Government-sponsored enterprises debt securities	—		6,209		—		6,209
Corporate debt securities	—		10,401		—		10,401
Total(1)	$	77,330	$	286,386	$	—	$	363,716
Liabilities:
Contingent consideration	$	—	$	—	$	39,000	$	39,000

	December 31, 2020
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	80,986	$	—	$	—	$	80,986
Commercial paper	—		61,043		—		61,043
Certificate of deposits	—		1,000		—		1,000
Marketable securities:
U.S. Treasuries	—		43,050				43,050
Commercial paper	—		210,986				210,986
Certificate of deposits	—		44,480				44,480
U.S. Government-sponsored enterprises debt securities	—		6,217				6,217
Corporate debt securities	—		33,460		—		33,460
Total(1)	$	80,986	$	400,236	$	—	$	481,222
Liabilities:
Contingent consideration	$	—	$	—	$	42,400	$	42,400

————————————(1)Fair value is determined by taking into consideration valuations obtained from third-party pricing services. The third-party pricing services utilize industry standard valuation models, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; and other observable inputs.

Reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3)

The following table provides a reconciliation of our contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Balance at beginning of period	$	43,000	$	55,900	$	42,400	$	63,800
Change in fair value	500		12,200		1,100		4,300
Settlements(1)	(4,500)		(15,000)		(4,500)		(15,000)
Balance at end of period	$	39,000	$	53,100	$	39,000	$	53,100

————————————

(1)As of June 30, 2021 and 2020, outstanding obligations related to achieved milestones for the periods presented of $4.5 million and $15.0 million, respectively, were no longer contingent. As a result, the amounts have been reclassified from contingent consideration to accrued and other current liabilities on the condensed consolidated balance sheets.

Significant inputs used in fair value measurement

The following table summarizes the significant unobservable inputs used in the fair value measurement of our contingent consideration liability as of June 30, 2021.

Fair Value as of June 30, 2021 (in thousands)	Valuation Technique	Unobservable Input	Range	Weighted Average(1)
$39,000	Discounted cash flow	Discount rate	1.5% — 2.4%	2%
		Probability of payment	100%	100%
		Projected year of payment	2021 — 2023	2022

————————————

(1)Unobservable inputs were weighted by the relative fair value of each sales-based milestone payment.