Annual report pursuant to Section 13 and 15(d)

Financial Instruments

v3.20.4
Financial Instruments
12 Months Ended
Dec. 31, 2020
Financial Instruments Disclosure [Abstract]  
Financial Instruments

4.

Financial Instruments

The following tables summarize the estimated fair value and related valuation input hierarchy of our available-for-sale securities as of each period end:

 

 

 

 

 

Total

 

 

Total

 

 

Total

 

 

Total

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

As of December 31, 2020:

 

Input Level

 

Cost

 

 

Gain

 

 

Loss

 

 

Fair Value

 

 

 

 

 

(in thousands)

 

Money market funds

 

Level 1

 

$

168,343

 

 

$

 

 

$

 

 

$

168,343

 

U.S. Treasury obligations

 

Level 2

 

 

230,239

 

 

 

113

 

 

 

(6

)

 

 

230,346

 

Government agency obligations

 

Level 2

 

 

22,537

 

 

 

22

 

 

 

(3

)

 

 

22,556

 

Corporate debt obligations

 

Level 2

 

 

50,080

 

 

 

166

 

 

 

(1

)

 

 

50,245

 

Commercial paper

 

Level 2

 

 

17,990

 

 

 

 

 

 

 

 

 

17,990

 

Asset-backed securities

 

Level 2

 

 

9,860

 

 

 

10

 

 

 

(5

)

 

 

9,865

 

Total available-for-sale securities

 

 

 

 

499,049

 

 

 

311

 

 

 

(15

)

 

 

499,345

 

Less: amounts classified as cash equivalents

 

 

 

 

(199,090

)

 

 

 

 

 

 

 

 

(199,090

)

Amounts classified as short-term investments

 

 

 

$

299,959

 

 

$

311

 

 

$

(15

)

 

$

300,255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Total

 

 

Total

 

 

Total

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

As of December 31, 2019:

 

Input Level

 

Cost

 

 

Gain

 

 

Loss

 

 

Fair Value

 

 

 

 

 

(in thousands)

 

Money market funds

 

Level 1

 

$

63,554

 

 

$

 

 

$

 

 

$

63,554

 

U.S. Treasury obligations

 

Level 2

 

 

52,805

 

 

 

46

 

 

 

(1

)

 

 

52,850

 

Government agency obligations

 

Level 2

 

 

6,151

 

 

 

1

 

 

 

(1

)

 

 

6,151

 

Corporate debt obligations

 

Level 2

 

 

100,512

 

 

 

180

 

 

 

(10

)

 

 

100,682

 

Commercial paper

 

Level 2

 

 

26,290

 

 

 

 

 

 

 

 

 

26,290

 

Asset-backed securities

 

Level 2

 

 

7,266

 

 

 

6

 

 

 

 

 

 

7,272

 

Certificate of deposit

 

Level 2

 

 

500

 

 

 

 

 

 

 

 

 

500

 

Total available-for-sale securities

 

 

 

 

257,078

 

 

 

233

 

 

 

(12

)

 

 

257,299

 

Less: amounts classified as cash equivalents

 

 

 

 

(72,507

)

 

 

 

 

 

 

 

 

(72,507

)

Amounts classified as short-term investments

 

 

 

$

184,571

 

 

$

233

 

 

$

(12

)

 

$

184,792

 

 

The amortized cost and fair value of our available-for-sale securities by contractual maturity were as follows:

 

 

As of December 31, 2020

 

 

As of December 31, 2019

 

 

Amortized

 

 

Estimated

 

 

Amortized

 

 

Estimated

 

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

 

(in thousands)

 

 

(in thousands)

 

Maturing within one year

$

434,828

 

 

$

435,023

 

 

$

214,085

 

 

$

214,199

 

Maturing in one to five years

 

64,221

 

 

 

64,322

 

 

 

42,993

 

 

 

43,100

 

Total available-for-sale securities

$

499,049

 

 

$

499,345

 

 

$

257,078

 

 

$

257,299

 

 

As of December 31, 2020, no significant facts or circumstances were present to indicate a deterioration in the creditworthiness of the issuers of the available-for-sale securities we hold, and the Company has no requirement or intention to sell these securities before maturity or recovery of their amortized cost basis. We considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and determined that our investments were not significantly impacted. For all securities with a fair value less than its amortized cost basis, we determined the decline in fair value below amortized cost basis to be immaterial and non-credit related, and therefore no allowance for losses has been recorded. During the years ended December 31, 2020, 2019 and 2018, we did not recognize any impairment losses on our investments.

 

We have elected the practical expedient to exclude the applicable accrued interest from both the fair value and the amortized cost basis of our available-for-sale securities for purposes of identifying and measuring an impairment. We present accrued interest receivable related to our available-for-sale securities in prepaid expenses and other current assets, separate from short-term investments on our consolidated balance sheet. As of December 31, 2020 and 2019, accrued interest receivable was $0.7 million and $0.9 million, respectively. Our accounting policy is to not measure an allowance for credit losses for accrued interest receivables and to write-off any uncollectible accrued interest receivable as a reversal of interest income in a timely manner, which we consider to be in the period in which we determine the accrued interest will not be collected by us. We have not written off any accrued interest receivables for the years ended December 31, 2020, 2019 and 2018.

In addition, restricted cash collateralized by money market funds is a financial asset measured at fair value and is a Level 1 financial instrument under the fair value hierarchy. As of December 31, 2020 and 2019, restricted cash totaled $1.4 million.

The following table provides a reconciliation of cash, cash equivalents and restricted cash within the consolidated balance sheets that sum to the total of the same such amounts in the consolidated statement of cash flows:

 

 

 

December 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

Cash and cash equivalents

 

$

200,404

 

 

$

74,317

 

Restricted cash - short-term

 

 

194

 

 

 

194

 

Restricted cash - long-term

 

 

1,200

 

 

 

1,200

 

Total cash, cash equivalents and restricted cash

 

$

201,798

 

 

$

75,711