Marketable Securities

9 Months Ended

Sep. 30, 2015

Marketable Securities

7. Marketable Securities

The Company applies the provisions of ASC 820, Fair Value Measurements and Disclosures, for financial assets and liabilities measured on a recurring basis which requires disclosure that establishes a framework for measuring fair value and expands disclosures in the financial statements. The guidance requires that fair value measurements be classified and disclosed in one of the three categories:

Level 1: Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date;

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; or

Level 3: Unobservable inputs.

The fair value of the Company’s marketable securities of $324,459 and $79,215 as of September 30, 2015 and December 31, 2014, respectively, is valued based on level 2 inputs. The Company’s investments consist mainly of U.S. government and agency securities, government-sponsored bond obligations and certain other corporate debt securities. Fair value is determined by taking into consideration valuations obtained from third-party pricing services. The third-party pricing services utilize industry standard valuation models, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; and other observable inputs. The Company has assessed these as level 2 within the fair value hierarchy of ASC 820. The Company classifies its entire investment portfolio as available for sale as defined in ASC 320, Debt and Equity Securities. Securities are carried at fair value with the unrealized gains (losses) reported as a separate component of stockholders’ equity within accumulated other comprehensive income.

The unrealized gain (loss) from marketable securities was $10 and $(12) at September 30, 2015 and December 31, 2014, respectively.

As of September 30, 2015 and December 31, 2014, none of the Company’s investments were determined to be other than temporarily impaired.

The following table summarizes the Company’s investments:

	September 30, 2015									December 31, 2014
	Amortized Cost		Unrealized Gain		Unrealized (Loss)			Estimated Fair Value		Amortized Cost		Unrealized Gain		Unrealized (Loss)			Estimated Fair Value
Commercial Paper	$	131,344	$	150		—		$	131,494	$	4,747	$	3		—		$	4,750
Corporate Debt Securities		148,380		21		(165	)		148,236		58,452		1		(16	)		58,437
Government and Agency Securities		35,682		2		(1	)		35,683		16,028		1		(1	)		16,028
Treasury Securities		9,043		3		—			9,046		—		—		—			—
Total	$	324,449	$	176		(166	)	$	324,459	$	79,227	$	5		(17	)	$	79,215

The following table summarizes the contractual maturities of the Company’s investments:

	September 30, 2015		December 31, 2014
Mature in less than one year	$	312,277	$	79,215
Mature in one to five years		12,182		—
Total	$	324,459	$	79,215