Company: RCUS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001724521-25-000063
Chunk: 248

Company: Arcus Biosciences, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 248
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Note 14. Fair value measurements

We determine the fair value of financial and non-financial assets and liabilities using the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value, as follows:•Level 1 inputs include unadjusted quoted prices in active markets for identical assets or liabilities;

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•Level 2 inputs include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and•Level 3 inputs include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Our Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation.Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.The following tables summarize the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in millions):Fair value measurement as of March 31, 2025Level 1Level 2Level 3TotalAssetsMoney market funds$149 $— $— $149 U.S. treasury securities— 231 — 231 Corporate securities and commercial paper— 586 — 586 U.S. government agency obligations— 5 — 5 Certificate of deposit— 34 — 34 Total assets measured at fair value$149 $856 $— $1,005 Fair value measurement as of December 31, 2024Level 1Level 2Level 3TotalAssetsMoney market funds$120 $— $— $120 U.S. treasury securities— 251 — 251 Corporate securities and commercial paper— 592 — 592 U.S. government agency obligations— 5 — 5 Certificate of deposit— 24 — 24 Total assets measured at fair value$120 $872 $— $992 Liabilities    Liability for sale of future royalties$— $— $21 $21 Total liabilities measured at fair value$— $— $21