4.
ASC 820, “Fair Value Measurement”, provides a framework for measuring fair value and requires disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The three levels of inputs required by the standard that the Company uses to measure fair value are summarized below.
ASC 820 requires the use of observable market inputs (quoted market prices) when measuring fair value and requires a Level 1 quoted price to be used to measure fair value whenever possible.
The following tables present the fair value of the Company’s financial assets and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:
December 31, 2025
Level 1
Level 2
Level 3
Total
Cash
$
1,244,954
$
—
$
—
$
1,244,954
Money market funds
787,293
—
—
787,293
Commercial paper
—
90,419
—
90,419
Certificates of deposit
—
68,597
—
68,597
Municipal securities
—
1,882
—
1,882
U.S. treasuries
—
749,465
—
749,465
Corporate bonds
—
309,919
—
309,919
Foreign currency derivatives
—
(1,474)
—
(1,474)
Commodity derivatives
—
35,188
—
35,188
Total
$
2,032,247
$
1,253,996
$
—
$
3,286,243
Amounts included in:
Cash and cash equivalents
$
2,032,247
$
55,870
$
—
$
2,088,117
Short-term investments
—
677,084
—
677,084
Accounts receivable, net
—
33,667
—
33,667
Other assets
—
3,530
—
3,530
Investments
—
487,329
—
487,329
Accrued liabilities
—
(3,484)
—
(3,484)
Total
$
2,032,247
$
1,253,996
$
—
$
3,286,243