v3.26.1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

4. FAIR VALUE MEASUREMENTS

The Company has certain financial assets and liabilities that are recorded at fair value which have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements.

•
Level 1 — quoted prices for identical instruments in active markets;
•
Level 2 — quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
•
Level 3 — valuations derived from valuation techniques in which one or more significant value drivers are unobservable.

During the six months ended June 30, 2026, there were no transfers into or out of Level 3. The tables below present information about the Company’s financial assets and liabilities that are measured and carried at fair value and indicate the level within the fair value hierarchy of the valuation techniques it utilizes to determine such fair value:

 

 

 

Fair Value Measurement as of June 30, 2026

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

196,171

 

 

$

196,171

 

 

$

—

 

 

$

—

 

Government and government agency bonds

 

 

270,368

 

 

 

—

 

 

 

270,368

 

 

 

—

 

Corporate bonds

 

 

97,464

 

 

 

—

 

 

 

97,464

 

 

 

—

 

Strategic investments

 

 

6,348

 

 

 

1,917

 

 

 

—

 

 

 

4,431

 

Commercial paper

 

 

2,563

 

 

 

—

 

 

 

2,563

 

 

 

—

 

Certificates of deposit

 

 

2,898

 

 

 

—

 

 

 

2,898

 

 

 

—

 

Deferred compensation plan assets

 

 

1,224

 

 

 

1,224

 

 

 

—

 

 

 

—

 

Total assets

 

$

577,036

 

 

$

199,312

 

 

$

373,293

 

$

4,431

 

 

 

 

Fair Value Measurement as of December 31, 2025

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

474,914

 

 

$

474,914

 

 

$

—

 

 

$

—

 

Government and government agency bonds

 

 

179,765

 

 

 

—

 

 

 

179,765

 

 

 

—

 

Corporate bonds

 

 

42,583

 

 

 

—

 

 

 

42,583

 

 

 

—

 

Strategic investments

 

 

9,520

 

 

 

4,089

 

 

 

—

 

 

 

5,431

 

Commercial paper

 

 

3,614

 

 

 

—

 

 

 

3,614

 

 

 

—

 

Certificates of deposit

 

 

3,368

 

 

 

—

 

 

 

3,368

 

 

 

—

 

Deferred compensation plan assets

 

 

883

 

 

 

883

 

 

 

—

 

 

 

—

 

Total assets

 

$

714,647

 

 

$

479,886

 

 

$

229,330

 

$

5,431

 

 

The Company’s assets with a fair value categorized as Level 1 within the fair value hierarchy include money market funds, the Company's strategic investment in a biotechnology company listed on Nasdaq and assets associated with the Company's deferred compensation plan that are held in a trust.

The Company's assets with a fair value categorized as Level 2 within the fair value hierarchy consist of government and government agency bonds, corporate bonds, commercial paper and certificates of deposit. These assets have been initially valued at the transaction price and subsequently valued at the end of each reporting period. The Company uses observable market inputs to determine value, which primarily consist of reportable trades. Certain highly liquid investments with maturities of less than three

months at the date of acquisition are presented as cash equivalents on the unaudited condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025.

The Company’s assets with a fair value categorized as Level 3 within the fair value hierarchy consist of strategic investments in private biotechnology companies whose fair value measurement is based upon significant inputs not observable in the market and therefore represented a Level 3 measurement. At the end of each reporting period, the fair value of the Company's strategic investments that are not listed securities are adjusted if the issuers were to issue similar or identical securities or when there is a triggering event for impairment. Impairments and other measurement events related to the Company's Level 3 strategic investments were not material during the three and six months ended June 30, 2026 and 2025.

The fair values of the Company's 1.25% convertible senior notes due September 15, 2027 (the “2027 Notes”) and the Company’s 4.875% convertible senior notes due September 1, 2030 (the "2030 Notes") are based on open market trades and are classified as Level 1 in the fair value hierarchy. The following table summarizes the Company's debt instruments by indenture for the periods indicated:

 

 

 

As of
June 30, 2026

 

 

As of
December 31, 2025

 

 

 

(in thousands)

 

Net carrying value of the 2027 Notes

 

$

157,806

 

 

$

157,478

 

Net carrying value of the 2030 Notes

 

 

689,817

 

 

 

671,496

 

Total carrying value of debt instruments

 

$

847,623

 

 

$

828,974

 

 

 

 

 

 

 

 

Fair value of 2027 Notes

 

$

149,918

 

 

$

143,076

 

Fair value of 2030 Notes

 

 

760,332

 

 

 

721,791

 

Total fair value of debt instruments

 

$

910,250

 

 

$

864,867

 

 

The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, net, accounts payable and bank time deposits included in short-term investments approximated fair value because of the immediate or short-term maturity of these financial instruments.