v3.24.2.u1
Financial Instruments
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
Fair Value Measurements
The following table presents the Company’s financial assets measured at fair value on a recurring basis, as well as the amortized cost basis and gross unrealized gains and losses of those assets as of June 30, 2024 (in thousands):
Balance Sheet Classification
Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsMarketable Securities
Level 1:
Cash$232,702 $— $— $232,702 $232,702 $— 
Money market mutual funds14,713 — — 14,713 14,713 — 
U.S. treasury securities113,742 2 (13)113,731 — 113,731 
Subtotal361,157 2 (13)361,146 247,415 113,731 
Level 2:
Commercial paper38,778 — — 38,778 6,397 32,381 
Certificates of deposit11,875 — — 11,875 — 11,875 
Corporate notes and obligations88,322 2 (40)88,284 15,798 72,486 
Asset-backed securities23,259 2 (5)23,256 2,078 21,178 
Subtotal162,234 4 (45)162,193 24,273 137,920 
Total cash, cash equivalents, and marketable securities$523,391 $6 $(58)$523,339 $271,688 $251,651 
As of December 31, 2023, the Company’s financial assets consisted of the following (in thousands):
Balance Sheet Classification
Amortized Cost BasisGross Unrealized GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsMarketable Securities
Level 1:
Cash$237,104 $— $— $237,104 $237,104 $— 
Money market mutual funds23,762 — — 23,762 23,762 — 
U.S. treasury securities138,893 38 (8)138,923 — 138,923 
Subtotal399,759 38 (8)399,789 260,866 138,923 
Level 2:
Commercial paper25,899 — — 25,899 6,495 19,404 
Certificates of deposit7,768 — — 7,768 3,010 4,758 
Corporate notes and obligations71,545 12 (21)71,536 12,672 58,864 
Asset-backed securities7,319 7 (10)7,316 — 7,316 
U.S. agency securities7,814 — (5)7,809 — 7,809 
Subtotal120,345 19 (36)120,328 22,177 98,151 
Total cash, cash equivalents, and marketable securities$520,104 $57 $(44)$520,117 $283,043 $237,074 
The Company’s money market mutual funds and treasury securities are measured at fair value using quoted prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. The fair values of the Company’s Level 2 commercial paper and certificates of deposit are determined using quoted prices in markets that are not active or using model-driven valuations employing significant inputs derived from observable market data. The fair values of the Company’s Level 2 corporate notes and obligations, asset-backed securities, and U.S. agency securities are determined using an evaluated price based on a compilation of reported market information, such as benchmark yield curves, credit spreads and estimated default rates.
The carrying amounts of the Company’s remaining financial instruments not discussed in the above table, including accounts receivable and accounts payable, approximate fair value because of their short-term maturities, except for the Company’s senior unsecured notes which are valued on a quarterly basis for disclosure purposes only based on quoted prices for the Notes in less active markets and categorized accordingly as Level 2 in the fair value hierarchy. The aggregate fair value of the Notes was estimated to be approximately $477.1 million as of June 30, 2024 and approximately $478.5 million as of December 31, 2023.
Equity Securities
The Company’s investments in equity securities consist primarily of money market mutual funds. During the three and six months ended June 30, 2024 and 2023, the Company recorded no material unrealized gains or losses in connection with its money market mutual funds held as of June 30, 2024.
Available-for-sale Debt Securities
The following table summarizes the fair value of the Company’s available-for-sale debt securities by contractual maturity as of June 30, 2024 (in thousands):
Due within 1 year$265,541 
Due after 1 year through 5 years10,383 
Total available-for-sale debt securities$275,924 
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations.
The following table summarizes the available-for-sale debt securities which have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of June 30, 2024 (in thousands):
Less Than 12 Months12 Months or GreaterTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Asset-backed securities$15,271 $(4)$814 $(1)$16,085 $(5)
Corporate notes and obligations74,719 (40)— — 74,719 (40)
U.S. treasury securities94,120 (13)— — 94,120 (13)
Total available-for-sale debt securities$184,110 $(57)$814 $(1)$184,924 $(58)
The following table summarizes the available-for-sale debt securities which have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of December 31, 2023 (in thousands):
Less Than 12 Months12 Months or GreaterTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Asset-backed securities$3,211 $(6)$1,027 $(4)$4,238 $(10)
Corporate notes and obligations40,527 (21)— — 40,527 (21)
U.S. treasury securities7,397 (8)— — 7,397 (8)
U.S. agency securities7,809 (5)— — 7,809 (5)
Total available-for-sale debt securities$58,944 $(40)$1,027 $(4)$59,971 $(44)
The Company did not recognize any credit losses for its available-for-sale debt securities during the three and six months ended June 30, 2024 and 2023. The Company had no ending allowance balances for credit losses as of June 30, 2024 or December 31, 2023.
During the three and six months ended June 30, 2024 and 2023, the Company had no sales of its available-for-sale debt securities.