Fair Value Measurements |
3. |
Fair Value Measurements |
The Company’s cash equivalents are classified within Level 1 of the fair value hierarchy. The Company’s investments in marketable securities are classified within Level 2 of the fair value hierarchy.
The fair values of the Company’s marketable securities are based on prices obtained from independent pricing sources. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are reflected within Level 2, as they are primarily based on observable pricing for similar assets or other market observable inputs. Typical inputs used by these pricing services include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers or estimates of cash flow, prepayment spreads and default rates.
The following tables summarize the Company’s money market funds and marketable securities as of September 30, 2018 and December 31, 2017.
|
|
September 30, 2018 |
|
|
|
Total |
|
|
Quoted
Prices in
Active
Markets
(Level 1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
|
(in thousands) |
|
Cash equivalents: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents |
|
$ |
253,123 |
|
|
$ |
253,123 |
|
|
$ |
— |
|
|
$ |
— |
|
Total cash equivalents |
|
|
253,123 |
|
|
|
253,123 |
|
|
|
— |
|
|
|
— |
|
Marketable securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government securities |
|
|
283,570 |
|
|
|
— |
|
|
|
283,570 |
|
|
|
— |
|
U.S. corporate bonds |
|
|
152,747 |
|
|
|
— |
|
|
|
152,747 |
|
|
|
— |
|
International corporate bonds |
|
|
89,551 |
|
|
|
— |
|
|
|
89,551 |
|
|
|
— |
|
U.S. commercial paper |
|
|
103,531 |
|
|
|
— |
|
|
|
103,531 |
|
|
|
— |
|
International commercial paper |
|
|
138,879 |
|
|
|
— |
|
|
|
138,879 |
|
|
|
— |
|
Total marketable securities |
|
|
768,278 |
|
|
|
— |
|
|
|
768,278 |
|
|
|
— |
|
Total cash equivalents and marketable securities |
|
$ |
1,021,401 |
|
|
$ |
253,123 |
|
|
$ |
768,278 |
|
|
$ |
— |
|
|
|
December 31, 2017 |
|
|
|
Total |
|
|
Quoted
Prices in
Active
Markets
(Level 1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
|
|
(in thousands) |
|
Cash equivalents: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash equivalents |
|
$ |
306,235 |
|
|
$ |
306,235 |
|
|
$ |
— |
|
|
$ |
— |
|
Total cash equivalents |
|
|
306,235 |
|
|
|
306,235 |
|
|
|
— |
|
|
|
— |
|
Marketable securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government securities |
|
|
49,606 |
|
|
|
— |
|
|
|
49,606 |
|
|
|
— |
|
U.S. corporate bonds |
|
|
48,959 |
|
|
|
— |
|
|
|
48,959 |
|
|
|
— |
|
U.S. commercial paper |
|
|
65,583 |
|
|
|
— |
|
|
|
65,583 |
|
|
|
— |
|
International commercial paper |
|
|
48,465 |
|
|
|
— |
|
|
|
48,465 |
|
|
|
— |
|
Total marketable securities |
|
|
212,613 |
|
|
|
— |
|
|
|
212,613 |
|
|
|
— |
|
Total cash equivalents and marketable securities |
|
$ |
518,848 |
|
|
$ |
306,235 |
|
|
$ |
212,613 |
|
|
$ |
— |
|
During the nine months ended September 30, 2018 and 2017, there were no transfers among the Level 1, Level 2 and Level 3 categories.
The following tables summarize the gross unrealized gains and losses of the Company’s marketable securities as of September 30, 2018 and December 31, 2017:
|
|
September 30, 2018 |
|
|
|
Amortized Cost |
|
|
Gross Unrealized
Gains |
|
|
Gross Unrealized
Losses |
|
|
Fair Value |
|
|
|
(in thousands) |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government securities |
|
$ |
283,701 |
|
|
$ |
— |
|
|
$ |
(131 |
) |
|
$ |
283,570 |
|
U.S. corporate bonds |
|
|
152,848 |
|
|
|
5 |
|
|
|
(106 |
) |
|
|
152,747 |
|
International corporate bonds |
|
|
89,610 |
|
|
|
1 |
|
|
|
(60 |
) |
|
|
89,551 |
|
U.S. commercial paper |
|
|
103,516 |
|
|
|
34 |
|
|
|
(19 |
) |
|
|
103,531 |
|
International commercial paper |
|
|
138,860 |
|
|
|
30 |
|
|
|
(11 |
) |
|
|
138,879 |
|
|
|
$ |
768,535 |
|
|
$ |
70 |
|
|
$ |
(327 |
) |
|
$ |
768,278 |
|
|
|
December 31, 2017 |
|
|
|
Amortized Cost |
|
|
Gross Unrealized
Gains |
|
|
Gross Unrealized
Losses |
|
|
Fair Value |
|
|
|
(in thousands) |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government securities |
|
$ |
49,612 |
|
|
$ |
— |
|
|
$ |
(6 |
) |
|
$ |
49,606 |
|
U.S. corporate bonds |
|
|
48,982 |
|
|
|
2 |
|
|
|
(25 |
) |
|
|
48,959 |
|
U.S. commercial paper |
|
|
65,583 |
|
|
|
— |
|
|
|
— |
|
|
|
65,583 |
|
International commercial paper |
|
|
48,465 |
|
|
|
— |
|
|
|
— |
|
|
|
48,465 |
|
|
|
$ |
212,642 |
|
|
$ |
2 |
|
|
$ |
(31 |
) |
|
$ |
212,613 |
|
As of September 30, 2018, all marketable securities held by the Company had remaining contractual maturities of one year or less.
There have been no impairments of the Company’s assets measured and carried at fair value during the nine months ended September 30, 2018 and the year ended December 31, 2017.
|