v3.25.0.1
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES
 12 Months Ended
Dec. 31, 2024
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES  
FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

6.FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

ASC 820, “Fair Value Measurement”, provides a framework for measuring fair value and requires disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The three levels of inputs required by the standard that the Company uses to measure fair value are summarized below.

●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 related 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.

ASC 820 requires the use of observable market inputs (quoted market prices) when measuring fair value and requires a Level 1 quoted price to be used to measure fair value whenever possible.

The following tables present the fair value of the Company’s financial assets and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:

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​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2024

    

Level 1

    

Level 2

    

Level 3

    

Total

Cash

​

$

1,103,647

​

$

—

​

$

—

​

$

1,103,647

Money market funds

​

 

396,306

​

 

—

​

 

—

​

 

396,306

Certificates of deposit

​

​

—

​

​

33,334

​

​

—

​

​

33,334

Foreign currency derivatives

​

 

—

​

 

799

​

 

—

​

 

799

Commodity derivatives

​

​

—

​

​

(785)

​

​

—

​

​

(785)

Total

​

$

1,499,953

​

$

33,348

​

$

—

​

$

1,533,301

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts included in:

​

​

​

​

​

​

​

​

​

​

​

​

 Cash and cash equivalents

​

$

1,499,953

​

$

33,334

​

$

—

​

$

1,533,287

 Accounts receivable, net

​

 

—

​

 

5,991

​

 

—

​

 

5,991

 Other assets

​

​

—

​

​

6

​

​

—

​

​

6

 Accrued liabilities

​

 

—

​

 

(5,952)

​

 

—

​

 

(5,952)

 Other liabilities

​

​

—

​

​

(31)

​

​

—

​

​

(31)

Total

​

$

1,499,953

​

$

33,348

​

$

—

​

$

1,533,301

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

    

Level 1

    

Level 2

    

Level 3

    

Total

Cash

​

$

1,105,701

​

$

—

​

$

—

​

$

1,105,701

Money market funds

​

 

960,873

​

 

—

​

 

—

​

 

960,873

Certificates of deposit

​

​

—

​

​

33,824

​

​

—

​

​

33,824

Commercial paper

​

 

—

​

 

163,774

​

 

—

​

 

163,774

Corporate bonds

​

​

—

​

​

264,208

​

​

—

​

​

264,208

Municipal securities

​

 

—

​

 

361

​

 

—

​

 

361

U.S. government agency securities

​

 

—

​

 

159,585

​

 

—

​

 

159,585

U.S. treasuries

​

​

—

​

​

641,385

​

​

—

​

​

641,385

Foreign currency derivatives

​

 

—

​

 

(1,083)

​

 

—

​

 

(1,083)

Commodity derivatives

​

​

—

​

​

4,410

​

​

—

​

​

4,410

Total

​

$

2,066,574

​

$

1,266,464

​

$

—

​

$

3,333,038

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts included in:

​

​

​

​

​

​

​

​

​

​

​

​

 Cash and cash equivalents

​

$

2,066,574

​

$

231,101

​

$

—

​

$

2,297,675

 Short-term investments

​

 

—

​

 

955,605

​

 

—

​

 

955,605

 Accounts receivable, net

​

 

—

​

 

4,618

​

 

—

​

 

4,618

 Other assets

​

​

—

​

​

316

​

​

—

​

​

316

 Investments

​

 

—

​

 

76,431

​

 

—

​

 

76,431

 Accrued liabilities

​

 

—

​

 

(1,607)

​

 

—

​

 

(1,607)

Total

​

$

2,066,574

​

$

1,266,464

​

$

—

​

$

3,333,038

​

At December 31, 2024, the Company held no short-term or long-term investments. At December 31, 2023, all of the Company’s short-term and long-term investments were classified within Level 1 or Level 2 of the fair value hierarchy. The Company’s valuation of its Level 1 investments is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign currency exchange contracts is based on quoted market prices of the same or similar instruments, adjusted for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the years ended December 31, 2024 and 2023, and there were no changes in the Company’s valuation techniques.

Assets recognized or disclosed at fair value in the consolidated financial statements on a nonrecurring basis include items such as property and equipment, goodwill and other intangible assets. These assets are measured at fair value whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The fair value of trademarks was determined using the relief-from-royalty method. The fair value of reporting units was determined using a discounted cash flow analysis and a market approach. Determining the fair value of trademarks and reporting units required the use of significant judgment, including royalty rates, discount rates, assumptions in the Company’s long-term business plan about future revenue and expenses, capital expenditures, and changes in working capital, which are dependent on internal forecasts and estimation of the long-term growth rate. These plans take into consideration factors including historical experience, anticipated future economic conditions, and expectations for the industry and markets in which the Company participates. Inputs used to estimate these fair values included significant unobservable inputs that reflect the Company’s assumptions about the inputs that market participants would use and, therefore, the fair value assessments are classified within Level 3 of the fair value hierarchy. See Note 10.