| FAIR VALUE MEASUREMENTS |
5. FAIR VALUE MEASUREMENTS The following tables present information about our financial assets and liabilities that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques we utilized to determine such fair value: | | | | | | | | | | | | | | | | | | | | | | | | | | | | (In thousands) | | As of March 31, 2025 | | Quoted Prices in Active Markets
(Level 1) | | Significant Observable Inputs
(Level 2) | | Significant Unobservable Inputs
(Level 3) | | Financial assets | | | | | | | | | | Cash equivalents: | | | | | | | | | | Money market funds | | $ | 197,274 | | | $ | 197,274 | | | $ | — | | | $ | — | | | U.S. treasury securities | | 20,978 | | | — | | | 20,978 | | | — | | | Commercial paper | | 19,926 | | | — | | | 19,926 | | | — | | | | | | | | | | | | Marketable debt securities: | | | | | | | | | | U.S. treasury securities | | 782,548 | | | — | | | 782,548 | | | — | | | U.S. government-sponsored enterprise securities | | 417,074 | | | — | | | 417,074 | | | — | | | Corporate notes | | 372,736 | | | — | | | 372,736 | | | — | | | Commercial paper | | 28,000 | | | — | | | 28,000 | | | — | | | | | | | | | | | | Municipal securities | | 5,010 | | | — | | | 5,010 | | | — | | | Marketable equity securities | | 7,200 | | | 7,200 | | | — | | | — | | | Restricted cash (money market funds) | | 912 | | | 912 | | | — | | | — | | | Total financial assets | | $ | 1,851,658 | | | $ | 205,386 | | | $ | 1,646,272 | | | $ | — | | | Financial liabilities | | | | | | | | | | Development derivative liability | | $ | 540,529 | | | $ | — | | | $ | — | | | $ | 540,529 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (In thousands) | | As of December 31, 2024 | | Quoted Prices in Active Markets
(Level 1) | | Significant Observable Inputs
(Level 2) | | Significant Unobservable Inputs
(Level 3) | | Financial assets | | | | | | | | | | Cash equivalents: | | | | | | | | | | Money market funds | | $ | 190,779 | | | $ | 190,779 | | | $ | — | | | $ | — | | | U.S. treasury securities | | 36,428 | | | — | | | 36,428 | | | — | | | Commercial paper | | 22,709 | | | — | | | 22,709 | | | — | | | U.S. government-sponsored enterprise securities | | 9,952 | | | — | | | 9,952 | | | — | | | | | | | | | | | | | | | | | | | | | Marketable debt securities: | | | | | | | | | | U.S. treasury securities | | 921,627 | | | — | | | 921,627 | | | — | | | U.S. government-sponsored enterprise securities | | 396,143 | | | — | | | 396,143 | | | — | | | Corporate notes | | 361,739 | | | — | | | 361,739 | | | — | | | Commercial paper | | 35,408 | | | — | | | 35,408 | | | — | | | | | | | | | | | | Municipal securities | | 5,003 | | | — | | | 5,003 | | | — | | | Marketable equity securities | | 8,156 | | | 8,156 | | | — | | | — | | | Restricted cash (money market funds) | | 910 | | | 910 | | | — | | | — | | | Total financial assets | | $ | 1,988,854 | | | $ | 199,845 | | | $ | 1,789,009 | | | $ | — | | | Financial liabilities | | | | | | | | | | Development derivative liability | | $ | 486,919 | | | $ | — | | | $ | — | | | $ | 486,919 | |
As of March 31, 2025 and December 31, 2024, the estimated fair value of our 1% Convertible Senior Notes due 2027, or the Notes, was approximately $1.19 billion and $1.11 billion, respectively. The fair value was determined based on the last actively traded price per $100 of the Notes (Level 2) as of March 31, 2025 and December 31, 2024, respectively. For the three months ended March 31, 2025 and 2024, there were no transfers into or out of Level 3 financial assets or liabilities. The carrying amounts reflected on our condensed consolidated balance sheets for cash, accounts receivable, net, other current assets, accounts payable and accrued expenses approximate fair value due to their short-term maturities.
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