Fair Value Measurements

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s financial instruments measured at fair value on a recurring basis consist of Level 1, Level 2, and Level 3 financial instruments. Usually, short term marketable securities are considered Level 2 when their fair values are determined using inputs that are observable in the market or can be derived principally from or corroborated by observable market data such as pricing for similar securities, recently executed transactions, cash flow models with yield curves, and benchmark securities. In addition, Level 2 financial instruments are valued using comparisons to like-kind financial instruments and models that use readily observable market data as their basis. Corporate debt obligations, commercial paper, government agency obligations and asset-backed securities are valued primarily using market prices of comparable securities, bid/ask quotes, interest rate yields and prepayment spreads and are included in Level 2.

Financial assets and liabilities are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable.

The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):

	Fair Value Measurements as of June 30, 2024
As of June 30, 2024:	Total		Level 1		Level 2		Level 3
Assets:
Money market funds (included in cash and cash equivalents)	$	31,911	$	31,911	$	-	$	-
U.S. Treasury obligations ($31,786 included in cash and cash equivalents)	399,255		-		399,255		-
Corporate debt obligations ($29,270 included in cash and cash equivalents)	144,934		-		144,934		-
Federal agency obligations ($13,319 included in cash and cash equivalents)	37,215		-		37,215		-
Total fair value of assets	$	613,315	$	31,911	$	581,404	$	-

	Fair Value Measurements as of December 31, 2023
As of December 31, 2023:	Total		Level 1		Level 2		Level 3
Assets:
Money market funds (included in cash and cash equivalents)	$	23,205	$	23,205	$	-	$	-
U.S. Treasury obligations ($146,497 included in cash and cash equivalents)	525,353		-		525,353		-
Corporate debt obligations ($23,313 included in cash and cash equivalents)	135,284		-		135,284		-
Federal agency obligations ($15,344 included in cash and cash equivalents)	27,746		-		27,746		-
Total fair value of assets	$	711,588	$	23,205	$	688,383	$	-

Classified as:	June 30, 2024		December 31, 2023
Cash and cash equivalents	$	106,286	$	208,359
Short-term marketable securities	$	507,029	$	503,229
Total cash equivalents and marketable securities	$	613,315	$	711,588