v3.25.1
Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

4. Fair Value of Financial Instruments

 

The following tables summarize the Company’s financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):

 

 

 

March 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

159,890

 

 

$

-

 

 

$

159,890

 

Commercial paper

 

 

-

 

 

 

43,679

 

 

 

43,679

 

U.S. treasury securities

 

 

-

 

 

 

14,721

 

 

 

14,721

 

Corporate notes and bonds

 

 

-

 

 

 

4,371

 

 

 

4,371

 

Marketable securities:

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

-

 

 

 

698,049

 

 

 

698,049

 

Corporate notes and bonds

 

 

-

 

 

 

583,204

 

 

 

583,204

 

U.S. agency obligations

 

 

-

 

 

 

240,857

 

 

 

240,857

 

Commercial paper

 

 

-

 

 

 

105,371

 

 

 

105,371

 

Time deposits

 

 

-

 

 

 

10,535

 

 

 

10,535

 

Derivative instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

-

 

 

 

2,194

 

 

 

2,194

 

Total assets

 

$

159,890

 

 

$

1,702,981

 

 

$

1,862,871

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivative instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$

-

 

 

$

2,588

 

 

$

2,588

 

Total liabilities

 

$

-

 

 

$

2,588

 

 

$

2,588

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

326,576

 

 

$

-

 

 

$

326,576

 

U.S. treasury securities

 

 

-

 

 

 

11,489

 

 

 

11,489

 

Marketable securities:

 

 

 

 

 

 

 

 

 

U.S. treasury securities

 

 

-

 

 

 

667,651

 

 

 

667,651

 

Corporate notes and bonds

 

 

-

 

 

 

515,613

 

 

 

515,613

 

U.S. agency obligations

 

 

-

 

 

 

253,935

 

 

 

253,935

 

Commercial paper

 

 

-

 

 

 

80,378

 

 

 

80,378

 

Time deposits

 

 

-

 

 

 

7,006

 

 

 

7,006

 

Derivative instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

 

-

 

 

 

1,062

 

 

 

1,062

 

Total assets

 

$

326,576

 

 

$

1,537,134

 

 

$

1,863,710

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivative instruments:

 

 

 

 

 

 

 

 

 

Foreign currency forward contracts

 

$

-

 

 

$

5,914

 

 

$

5,914

 

Total liabilities

 

$

-

 

 

$

5,914

 

 

$

5,914

 

 

The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its U.S. treasury securities, corporate notes and bonds, U.S. agency obligations, commercial paper, time deposits, and foreign currency forward contracts within Level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security that may not be actively traded. There were no transfers of financial instruments between valuation levels during the three months ended March 31, 2025 and 2024.

 

As of March 31, 2025 and December 31, 2024, the total estimated fair value of the Company’s 0% convertible senior notes due 2027 was $1,017.7 million and $988.7 million, respectively. The fair value was determined based on the quoted price of the convertible senior notes in an inactive market on the last trading day of the reporting period and is classified within Level 2 of the fair value hierarchy. See Note 8, Convertible Senior Notes, for further information on the Company’s convertible senior notes.