v3.19.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements

10. Fair Value Measurements

Assets and liabilities measured at fair value are classified into the following categories:

 

•

Level 1: Quoted market prices in active markets for identical assets or liabilities.

 

•

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

 

•

Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets.

We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. There were no transfers between levels during the periods presented.

The following tables set forth our financial assets as of September 30, 2019 and December 31, 2018 that are measured at fair value on a recurring basis during the period:

 

 

September 30, 2019

 

 

Cost or

Amortized Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Total Estimated

Fair Value

 

 

(in thousands)

 

Cash

$

468,196

 

 

$

—

 

 

$

—

 

 

$

468,196

 

Level 1 securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities

 

1,314,132

 

 

 

522

 

 

 

(91

)

 

 

1,314,563

 

U.S. government agency securities

 

351,511

 

 

 

27

 

 

 

(29

)

 

 

351,509

 

Level 2 securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

31,457

 

 

 

41

 

 

 

—

 

 

 

31,498

 

Commercial paper

 

72,726

 

 

 

2

 

 

 

—

 

 

 

72,728

 

Certificates of deposit

 

22,236

 

 

 

—

 

 

 

—

 

 

 

22,236

 

Total

$

2,260,258

 

 

$

592

 

 

$

(120

)

 

$

2,260,730

 

 

 

December 31, 2018

 

 

Cost or

Amortized Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Total Estimated

Fair Value

 

 

(in thousands)

 

Cash

$

279,950

 

 

$

—

 

 

$

—

 

 

$

279,950

 

Level 1 securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government securities

 

735,988

 

 

 

12

 

 

 

(175

)

 

 

735,825

 

U.S. government agency securities

 

181,032

 

 

 

4

 

 

 

(36

)

 

 

181,000

 

Level 2 securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

35,819

 

 

 

1

 

 

 

(18

)

 

 

35,802

 

Commercial paper

 

33,193

 

 

 

—

 

 

 

—

 

 

 

33,193

 

Certificates of deposit

 

13,293

 

 

 

—

 

 

 

—

 

 

 

13,293

 

Total

$

1,279,275

 

 

$

17

 

 

$

(229

)

 

$

1,279,063

 

 

Gross unrealized losses in a continuous loss position for 12 months or longer are not material as of September 30, 2019 and December 31, 2018, respectively. As of September 30, 2019, we considered any decreases in market value on our marketable securities to be temporary in nature and did not consider any of our investments to be other-than-temporarily impaired. All of our marketable securities have contractual maturities of less than one year.

We carry the Convertible Notes at face value less the unamortized discount and issuance costs on our consolidated balance sheets and present that fair value for disclosure purposes only. As of September 30, 2019, the fair value of the Convertible Notes was $1.3 billion. The estimated fair value of the Convertible Notes, which are classified as Level 2 financial instruments, was determined based on the estimated or actual bid prices of the Convertible Notes in an over-the-counter market on the last business day of the period.