Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2021

The fair values of the financial instruments we measure at fair value on a recurring basis are as follows (in thousands):


	December 31, 2021
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	711,188	$	—	$	—	$	711,188
Commercial paper	—		114,976		—		114,976
Corporate bonds	—		4,310		—		4,310


Marketable securities:
Corporate bonds	—		449,417		—		449,417
Commercial paper	—		247,560		—		247,560
U.S. treasury securities	189,010		—		—		189,010
Certificates of deposit	—		82,486		—		82,486
Municipal securities	—		49,331		—		49,331
Non-U.S. government and supranational bonds	—		41,684		—		41,684
U.S. agency bonds	—		1,000		—		1,000


Prepaid expenses and other current assets:
Certificates of deposit	—		1,137		—		1,137
Restricted cash:
Certificates of deposit	$	—	$	6,297	$	—	$	6,297


	December 31, 2020
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	225,643	$	—	$	—	$	225,643
Commercial paper	—		48,532		—		48,532
U.S. treasury securities	39,998		—		—		39,998
Certificates of deposit	—		2,996		—		2,996
Marketable securities:
Corporate bonds	—		454,487		—		454,487
Commercial paper	—		234,253		—		234,253
U.S. treasury securities	203,054		—		—		203,054
Certificates of deposit	—		134,882		—		134,882
Municipal securities	—		17,619		—		17,619
U.S. agency bonds	—		16,018		—		16,018
Non-U.S. government and supranational bonds	—		15,950		—		15,950
Asset-backed securities	—		14,813		—		14,813
Prepaid expenses and other current assets:
Certificates of deposit	—		571		—		571
Restricted cash:
Certificates of deposit	$	—	$	9,110	$	—	$	9,110

We classify our marketable securities within Level 1 or Level 2 because we determine their fair values using quoted market prices or alternative pricing sources and models utilizing market observable inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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