Investments

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Debt Securities

The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of the Company’s available-for-sale debt securities aggregated by investment category (in thousands):


	December 31, 2021								Classification as of December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Estimated Fair Value		Cash and Cash Equivalents		Marketable Securities		Other Assets, Noncurrent
Certificates of deposit	$	395,351	$	—	$	—	$	395,351	$	31,117	$	364,234	$	—
Government bonds(1)	850		13		—		863		—		863		—
Commercial paper	1,156,963		—		—		1,156,963		163,959		993,004		—
Corporate debt securities	917,718		220		(3,147)		914,791		41,439		862,901		10,451
Mortgage-backed and asset-backed securities	34,019		338		(321)		34,036		—		34,036		—
Total	$	2,504,901	$	571	$	(3,468)	$	2,502,004	$	236,515	$	2,255,038	$	10,451

(1)Includes U.S. government and government agency debt securities


	September 30, 2022								Classification as of September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Estimated Fair Value		Cash and Cash Equivalents		Marketable Securities		Other Assets, Noncurrent
Certificates of deposit	$	599,030	$	—	$	—	$	599,030	$	6,925	$	592,105	$	—
Government bonds(1)	19,638		—		(158)		19,480		—		19,480		—
Commercial paper	987,520		—		—		987,520		277,582		709,938		—
Corporate debt securities	776,741		73		(10,778)		766,036		10,389		745,235		10,412
Mortgage-backed and asset-backed securities	24,941		1		(3,458)		21,484		—		21,484		—
Total	$	2,407,870	$	74	$	(14,394)	$	2,393,550	$	294,896	$	2,088,242	$	10,412

(1)Includes U.S. government and government agency debt securities

As of December 31, 2021 and September 30, 2022, the Company does not have any available-for-sale debt securities for which the Company has recorded credit related losses.

Before reclassifications of gains and losses from accumulated other comprehensive loss on the condensed consolidated balance sheets to other income (expense), net in the condensed consolidated statements of operations, unrealized gains and losses, net of tax, for the three and nine months ended September 30, 2021 and 2022, were not material. Realized gains and losses reclassified from accumulated other comprehensive loss to other income (expense), net were not material for the three and nine months ended September 30, 2021 and 2022.

Debt securities in an unrealized loss position had an estimated fair value of $801.5 million and unrealized losses of $3.5 million as of December 31, 2021, and an estimated fair value of $767.8 million and unrealized losses of $14.4 million as of September 30, 2022. An immaterial amount of securities were in a continuous unrealized loss position for more than twelve months as of December 31, 2021, and $29.9 million of securities were in a continuous unrealized loss position for more than twelve months as of September 30, 2022.

The following table summarizes the contractual maturities of the Company’s available-for-sale debt securities (in thousands):


	September 30, 2022
		Amortized Cost		Estimated Fair Value
Due within one year		$	2,135,406	$	2,132,499
Due in one year to five years		249,656		241,640
Due within five to ten years		20,097		16,794
Due beyond ten years		2,711		2,617
Total		$	2,407,870	$	2,393,550

Equity Investments

Gains and Losses on Marketable Equity Investments

During the nine months ended September 30, 2021, the marketable equity investments were sold, and the Company realized a net gain (loss) of $0.9 million and $(13.4) million for the three and nine months ended September 30, 2021, respectively, in other income (expense), net on the condensed consolidated statements of operations.

Equity Investments Without Readily Determinable Fair Values

The Company holds investments in privately-held companies in the form of equity securities without readily determinable fair values and in which the Company does not have a controlling interest or significant influence. These investments had a net carrying value of $75.0 million as of both December 31, 2021 and September 30, 2022, and are classified within other assets, noncurrent on the condensed consolidated balance sheets. There were no upward or downward adjustments for observable price changes or impairment charges for the three and nine months ended September 30, 2021 and 2022. As of December 31, 2021 and September 30, 2022, the cumulative downward adjustments for observable price changes and impairment were $56.2 million.

Investments Accounted for Under the Equity Method

As of December 31, 2021 and September 30, 2022, the carrying values of the Company’s equity method investments were $17.4 million and $14.5 million, respectively. The Company recorded unrealized losses of $1.3 million and $2.2 million for the three and nine months ended September 30, 2021, respectively, and $1.4 million and $4.2 million for the three and nine months ended September 30, 2022, respectively, within other income (expense), net in the condensed consolidated statements of operations, representing its proportionate share of net income or loss based on the investee’s financial results. The Company recorded no impairment charges related to the carrying value of equity method investments for the three and nine months ended September 30, 2021 and 2022.