Fair Value Measurements

3 Months Ended

Mar. 31, 2024

The following table summarizes, for assets and liabilities measured at fair value, the respective fair value and the classification by level of input within the fair value hierarchy:


	March 31, 2024
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets
U.S. treasury securities	$	147,814	$	147,814	$	—	$	—
Money market funds	41,809		41,809		—		—
U.S. government agency obligations	8,431		8,431		—		—
Commercial paper	56,486		—		56,486		—
Total assets measured at fair value	$	254,540	$	198,054	$	56,486	$	—


	December 31, 2023
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets
U.S. treasury securities	$	133,198	$	133,198	$	—	$	—
Money market funds	39,280		39,280		—		—
U.S. government agency obligations	3,960		3,960		—		—
Commercial paper	49,418		—		49,418		—
Total assets measured at fair value	$	225,856	$	176,438	$	49,418	$	—

For Level 1 investments, we use quoted prices in active markets for identical assets to determine the fair value. For Level 2 investments, we use quoted prices for similar assets sourced from certain third-party pricing services. The third-party pricing services generally utilize industry standard valuation models for which all significant inputs are observable, either directly or indirectly, to estimate the price or fair value of the securities. The primary input generally includes reported trades of or quotes on the same or similar securities. We do not make additional judgments or assumptions made to the pricing data sourced from the third-party pricing services.

The fair value of the 2027 Notes and the Notes Payable (Note 9) was determined on the basis of market prices observable for similar instruments and is considered Level 2 in the fair value hierarchy. We present the fair value of the 2027

Notes and the Notes payable for disclosure purposes only. As of March 31, 2024, and December 31, 2023, the fair value of the 2027 Notes was $211.5 million and $219.2 million, respectively. As of March 31, 2024 the fair value of the Notes Payable was approximately the same as its unamortized carrying value.

- 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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