Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.23.2
Fair Value Measurements
6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value MeasurementsFair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize
the use of unobservable inputs. A fair value hierarchy has been established based on three levels of inputs, of which the first two are considered observable and the last unobservable.
Level 1: Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets.
Level 2: Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments.
Level 3: Unobservable inputs, where there is little or no market activity for the asset or liability. These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances.
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis
The Company measures certain financial assets at fair value on a recurring basis, including its marketable securities and certain cash equivalents. The Company considers all securities available-for-sale, including those with maturity dates beyond 12 months, and therefore these securities are classified within current assets on the Consolidated Balance Sheets as they are available to support current operational liquidity needs. The money market accounts are valued based on quoted market prices in active markets and are included in cash and cash equivalents on the Consolidated Balance Sheets. The marketable securities are generally valued based on other observable inputs for those securities (including market corroborated pricing or other models that utilize observable inputs such as interest rates and yield curves) based on information provided by independent third-party pricing entities, except for U.S. Treasury securities which are valued based on quoted market prices in active markets.
The following tables set forth the amortized cost, gross unrealized gains, gross unrealized losses and fair values of the Company’s marketable securities accounted for as available-for-sale securities as of June 30, 2023 and December 31, 2022.
June 30, 2023
(in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Financial Assets:
Short-term marketable securities:
     U.S. Treasury securities $ 32,218  $ —  $ (338) $ 31,880 
     Yankee bonds 2,608  —  (58) 2,550 
     Agency bonds 6,025  —  (119) 5,906 
     Municipal bonds 12,768  —  (937) 11,831 
     Commercial paper 2,929  —  —  2,929 
     Asset-backed securities 15,537  —  (180) 15,357 
     Corporate bonds 51,299  (1,481) 49,819 
Total $ 123,384  $ $ (3,113) $ 120,272 
December 31, 2022
(in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Financial Assets:
Short-term marketable securities:
     U.S. Treasury securities $ 56,426  $ —  $ (651) $ 55,775 
     Yankee bonds 5,358  —  (92) 5,266 
     Agency bonds 12,485  —  (116) 12,369 
     Municipal bonds 12,841  —  (1,030) 11,811 
     Commercial paper 2,846  —  2,854 
     Asset-backed securities 25,544  (427) 25,119 
     Corporate bonds 63,748  (2,136) 61,615 
Total $ 179,248  $ 13  $ (4,452) $ 174,809 
The Company had $1.5 million and $0.9 million of accrued interest receivable at June 30, 2023 and December 31, 2022, respectively, included in other current assets on its Consolidated Balance Sheets related to its marketable securities. There were no realized gains or losses on marketable securities for the three and six months ended June 30, 2023 and June 30, 2022.
The following tables set forth the fair value of available-for-sale marketable securities by contractual maturity at June 30, 2023 and December 31, 2022.
June 30, 2023
(in thousands) One Year or Less Over One Year Through Five Years Over Five Years Total
Financial Assets:
Marketable Securities:
     U.S. Treasury securities $ 31,880  $ —  $ —  $ 31,880 
     Yankee bonds 2,550  —  —  2,550 
     Agency bonds 3,557  2,349  —  5,906 
     Municipal bonds —  11,831  —  11,831 
     Commercial paper 2,929  —  —  2,929 
     Asset-backed securities 15,357  —  —  15,357 
     Corporate bonds 32,429  17,390  —  49,819 
Total $ 88,702  $ 31,570  $ —  $ 120,272 
December 31, 2022
(in thousands) One Year or Less Over One Year Through Five Years Over Five Years Total
Financial Assets:
Marketable Securities:
     U.S. Treasury securities $ 40,795  $ 14,980  $ —  $ 55,775 
     Yankee bonds 2,734  2,532  —  5,266 
     Agency bonds 6,470  5,899  —  12,369 
     Municipal bonds —  11,811  —  11,811 
     Commercial paper 2,854  —  —  2,854 
     Asset-backed securities 23,179  1,940  —  25,119 
     Corporate bonds 35,377  26,238  —  61,615 
Total $ 111,409  $ 63,400  $ —  $ 174,809 

The following tables set forth the Company’s cash equivalents and marketable securities accounted for as available-for-sale securities that were measured at fair value on a recurring basis based on the fair value hierarchy as of June 30, 2023 and December 31, 2022.
June 30, 2023
(in thousands) Level 1 Level 2 Level 3 Total
Financial Assets:
  Cash equivalents:
     Money market funds $ 283,214  $ —  $ —  $ 283,214 
Marketable securities:
     U.S. Treasury securities 31,880  —  —  31,880 
     Yankee bonds 2,550  —  —  2,550 
     Agency bonds 5,906  —  —  5,906 
     Municipal bonds 11,831  —  —  11,831 
     Commercial paper —  2,929  —  2,929 
     Asset-backed securities —  15,357  —  15,357 
     Corporate bonds —  49,819  —  49,819 
Total $ 335,381  $ 68,105  $ —  $ 403,486 
December 31, 2022
(in thousands) Level 1 Level 2 Level 3 Total
Financial Assets:
  Cash equivalents:
     Money market funds $ 196,749  $ —  $ —  $ 196,749 
     Commercial paper —  36,965  —  36,965 
Marketable securities:
     U.S. Treasury securities 55,775  —  —  55,775 
     Yankee bonds 5,266  —  —  5,266 
     Agency bonds 12,369  —  —  12,369 
     Municipal bonds 11,811  —  —  11,811 
     Commercial paper —  2,854  —  2,854 
     Asset-backed securities —  25,119  —  25,119 
     Corporate bonds —  61,615  —  61,615 
Total $ 281,970  $ 126,553  $ —  $ 408,523 

There were no transfers of financial assets or liabilities into or out of Level 1, Level 2, or Level 3 for the three and six months ended June 30, 2023 and June 30, 2022.
The carrying value of cash and cash equivalents, accounts receivable, net, accounts payable, accrued expenses and other liabilities, and other current assets and liabilities, are considered reasonable estimates of their respective fair values at June 30, 2023 and December 31, 2022 due to their short-term nature.