Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measures

v3.20.2
Fair Value Measures
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measures
Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:
Level 1 — observable inputs such as quoted prices for identical assets or liabilities in active liquid markets;
Level 2 — inputs, other than the quoted market prices in active markets, that are observable, either directly or indirectly; or observable market prices in markets with insufficient volume or infrequent transactions; and
Level 3 — unobservable inputs for which there is little or no market data available, that require the reporting entity to develop its own assumptions.
The Company's assets and liabilities measured at fair value are categorized as Level 1 or Level 2 instruments. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 were as follows:
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents:
Money market funds $ 151,823    $ —    $ —    $ 151,823   
Other short-term investments:
Money market funds 51    —    —    51   
Mutual fund shares 924    —    —    924   
Other current assets:
Derivative financial instruments —    15,480    —    15,480   
Other non-current assets:
Money market funds 4,173    —    —    4,173   
Mutual fund shares 11,425    —    —    11,425   
Derivative financial instruments —    6,775    —    6,775   
Total assets measured at fair value $ 168,396    $ 22,255    $ —    $ 190,651   
Liabilities:
Accrued liabilities:
Derivative financial instruments $ —    $ 604    $ —    $ 604   
Total liabilities measured at fair value $ —    $ 604    $ —    $ 604   
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 were as follows:
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents:
Money market funds $ 288,926    $ —    $ —    $ 288,926   
United States government treasury bills —    34,928    —    34,928   
Commercial paper —    33,587    —    33,587   
Other short-term investments:
Mutual fund shares 1,668    —    —    1,668   
Other current assets:
Derivative financial instruments —    14,001    —    14,001   
Non-current assets:
Money market funds 1,792    —    —    1,792   
Mutual fund shares 12,172    —    —    12,172   
Derivative financial instruments —    4,159    —    4,159   
Total assets measured at fair value $ 304,558    $ 86,675    $ —    $ 391,233   
Liabilities:
Accrued liabilities:
Derivative financial instruments $ —    $ 2,266    $ —    $ 2,266   
Other long-term liabilities:
Derivative financial instruments —    768    —    768   
Total liabilities measured at fair value $ —    $ 3,034    $ —    $ 3,034   
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 were as follows:
(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents:
Money market funds $ 130,097    $ —    $ —    $ 130,097   
Available-for-sale short-term investments:(1)
United States government treasury bills —    136,721    —    136,721   
Other short-term investments:
Mutual funds shares 1,477    —    —    1,477   
Other current assets:
Derivative financial instruments —    13,573    —    13,573   
Other non-current assets:
Money market funds 1,312    —    —    1,312   
Mutual fund shares 10,954    —    —    10,954   
Derivative financial instruments —    6,776    —    6,776   
Total assets measured at fair value $ 143,840    $ 157,070    $ —    $ 300,910   
Liabilities:
Accrued liabilities:
Derivative financial instruments $ —    $ 2,090    $ —    $ 2,090   
Other long-term liabilities:
Derivative financial instruments —    140    —    140   
Total liabilities measured at fair value $ —    $ 2,230    $ —    $ 2,230   
(1)Investments have remaining maturities of less than one year.
Non-recurring Fair Value Measurements
Certain non-financial assets are measured at fair value on a non-recurring basis, primarily long-lived assets, intangible assets, goodwill, and lease right-of-use assets. In connection with periodic evaluations for potential impairment, the inputs used to measure the fair value of these assets are primarily unobservable inputs and, as such, considered Level 3 fair value measurements. For impairment charges for the quarter ended June 30, 2020, see Note 1.