Financial Instruments

3 Months Ended

Mar. 31, 2024

The following table presents information about our financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level of the fair value hierarchy used to determine such fair values (in millions):


	March 31, 2024
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	147	$	—	$	—	$	147
Commercial paper	—		37		—		37
Certificates of deposit	—		13		—		13
Corporate bonds	—		102		—		102
U.S. government agency securities	—		17		—		17
Treasury securities	—		225		—		225
Asset-backed securities	—		143		—		143
	$	147	$	537	$	—	$	684
Liabilities:
Warrants to purchase common stock	$	—	$	—	$	100	$	100

	$	—	$	—	$	100	$	100


	December 31, 2023
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	267	$	—	$	—	$	267
Commercial paper	—		53		—		53
Certificates of deposit	—		29		—		29
Corporate bonds	—		80		—		80
U.S. government agency securities	—		37		—		37
Treasury securities	—		213		—		213
Asset-backed securities	—		107		—		107
	$	267	$	519	$	—	$	786
Liabilities:
Warrants to purchase common stock	$	—	$	—	$	64	$	64

	$	—	$	—	$	64	$	64

During the three months ended March 31, 2024, there were no transfers into or out of Level 3 measurements within the fair value hierarchy.

Marketable Securities

The fair values of marketable securities by contractual maturities at March 31, 2024 were as follows (in millions):


	March 31, 2024
Due within 1 year	$	284
Due after 1 year through 5 years	247
Due after 5 years and thereafter	6

Total marketable securities	$	537

Valuation of Warrants to Purchase Common Stock

The fair value of the warrants was determined using the Black-Scholes option-pricing model. The following table indicates the weighted-average assumptions made in estimating the fair value as of:


	March 31, 2024			December 31, 2023
Risk-free interest rate	4.4		%	4.0		%
Contractual term (in years)	3			3
Expected volatility	66.9		%	63.8		%
Expected dividend yield	—		%	—		%
Exercise price per share	$	17.50		$	17.16

Fair Value of Liabilities

The following table provides a roll-forward of the aggregate fair value of our common stock warrant liability for which fair value is determined using Level 3 inputs (in millions):


	Common Stock Warrant Liability
Balance as of December 31, 2023	$	64


Change in fair value	36


Balance as of March 31, 2024	$	100

- 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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