Financial Instruments

3 Months Ended

Mar. 31, 2016

4. Financial Instruments

Financial Assets

The following tables summarize the estimated fair value of the Company’s financial assets measured on a recurring basis as of the dates indicated, which were comprised solely of available-for-sale marketable securities with remaining contractual maturities of one year or less (in thousands):

March 31, 2015	Input Level	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Money market funds	Level 1	$	8,309		$	—	$	—	$	8,309
U.S. Treasury securities	Level 1		1,016		$	—	$	—	$	1,016
U.S. certificates of deposit	Level 1		7,298		$	—	$	—	$	7,298
Debt securities of U.S. government agencies	Level 2		2,998		$	1	$	—	$	2,999
U.S. corporate debt obligations	Level 2		9,810		$	2	$	—	$	9,812
Total available-for-sale securities			29,431			3		—		29,434
Less amounts classified as cash equivalents			(13,276	)		—		—		(13,276	)
Amounts classified as marketable securities		$	16,155		$	3	$	—	$	16,158

December 31, 2015	Input Level	Amortized Cost			Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	Level 1	$	17,200		$	—	$	—		$	17,200
U.S. Treasury securities	Level 1		1,003							$	1,003
U.S. certificates of deposit	Level 1		5,001			—		—		$	5,001
Debt securities of U.S. government agencies	Level 2		4,494							$	4,494
U.S. corporate debt obligations	Level 2		11,660			—		(11	)	$	11,649
Total available-for-sale securities			39,358			—		(11	)		39,347
Less amounts classified as cash equivalents			(19,803	)		—		—			(19,803	)
Amounts classified as marketable securities		$	19,555		$	—	$	(11	)	$	19,544

There were no available-for-sale securities that were in an unrealized loss position, having been in such a position for less than 12 months, and deemed to be other-than-temporarily impaired as of March 31, 2016. As of March 31, 2016 the Company had U.S. corporate debt obligation with an estimated fair value of $9.8 million and does not intend to sell these securities before maturity..

There were no sales of available-for-sale securities during either the three months ended March 31, 2016 or 2015.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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