Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

We measure our cash equivalents and short-term investments at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Directly or indirectly observable market-based inputs or unobservable inputs used in models or other valuation methodologies.

Level 3: Unobservable inputs that are not corroborated by market data. The inputs require significant management judgment or estimation.

We classify our cash equivalents and short-term investments within Level 1 or Level 2 because our cash equivalents and short-term investments are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs.

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 are summarized below (in thousands):

	June 30, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Direct or Indirect Observable Inputs (Level 2)		Total
Assets
Cash equivalents:
Money market funds	$	1,536	$	—	$	1,536
Corporate commercial paper		—		500		500
Corporate debt securities		—		—		—
Total cash equivalents		1,536		500		2,036
Short-term investments:
Corporate commercial paper		—		10,990		10,990
Treasury bonds		—		—		—
Corporate debt securities		—		5,289		5,289
Total short-term investments		—		16,279		16,279
Restricted cash equivalents—money market fund		250		—		250
Total assets measured at fair value	$	1,786	$	16,779	$	18,565

	December 31, 2015
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Direct or Indirect Observable Inputs (Level 2)		Total
Assets
Cash equivalents:
Money market funds	$	5,404	$	—	$	5,404
Corporate commercial paper		—		1,500		1,500
Corporate debt securities		—		2,269		2,269
Total cash equivalents		5,404		3,769		9,173
Short-term investments:
Corporate commercial paper		—		6,245		6,245
Treasury bonds		—		1,007		1,007
Corporate debt securities		—		6,028		6,028
Total short-term investments		—		13,280		13,280
Restricted cash equivalents—money market fund		250		—		250
Total assets measured at fair value	$	5,654	$	17,049	$	22,703