Note 3 — Marketable Investments

The following table summarizes the Company’s marketable investments (in thousands):

	As of March 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(6	)	$	1,794
Corporate obligations		52,800		—		(336	)		52,464
Total	$	54,600	$	—	$	(342	)	$	54,258

	As of December 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(7	)	$	1,793
Corporate obligations		52,721		—		(181	)		52,540
Total	$	54,521	$	—	$	(188	)	$	54,333

Realized gains and losses on investments are included in earnings and are determined using the specific identification method. Realized gains and losses on the sale of the Company’s marketable investments were not material in the three months ended March 31, 2018 and 2017.

The following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of March 31, 2018 (in thousands).

	FY 2018		FY 2019		FY2020		Total
Federal agency obligations	$	1,794	$	—	$	—	$	1,794
Corporate obligations		19,970		26,720	$	5,774		52,464
Total	$	21,764	$	26,720	$	5,774	$	54,258

The following table shows the gross unrealized losses and market value of the Company’s available-for-sale securities with unrealized losses that are not deemed to be other-than-temporary, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	As of March 31, 2018
	Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
Federal agency obligations	$	—	$	—	$	1,794	$	6
Corporate obligations		39,966		295		12,498		41
Total	$	39,966	$	295	$	14,292	$	47

	As of December 31, 2017
	Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
Federal agency obligations	$	—	$	—	$	1,793	$	7
Corporate obligations		31,723		149		20,817		32
Total	$	31,723	$	149	$	22,610	$	39

Fair Value

The Company measures certain financial assets at fair value on a recurring basis, including cash equivalents and available-for-sale securities. The fair values of these financial assets have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements.

Level 1 — Fair value based on quoted prices in active markets for identical assets or liabilities.

Level 2 — Fair value based on inputs other than Level 1 inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices 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 assets or liabilities.

Level 3 — Fair value based on unobservable inputs that are supported by little or no market activity and such inputs are significant to the fair value of the assets or liabilities.

The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis (in thousands):

	As of March 31, 2018
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	851	$	—	$	—	$	851
Federal agency obligations		—		1,794		—		1,794
Corporate obligations		—		52,464		—		52,464
Total	$	851	$	54,258	$	—	$	55,109

	As of December 31, 2017
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	492	$	—	$	—	$	492
Federal agency obligations		—		1,793		—	$	1,793
Corporate obligations		—		52,540		—		52,540
Total	$	492	$	54,333	$	—	$	54,825

(1)	Included in cash and cash equivalents.

Level 2 assets consist of the Company’s entire portfolio of marketable investments. Level 2 assets have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, typically utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation methods, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events.