Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables summarize the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis (in thousands):



	Fair Value Measurements at Reporting Date Using
As of March 31, 2015	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash equivalents:
Money market funds	$	50,369	$	50,369	$	—
Total cash equivalents	50,369		50,369		—
Marketable securities:
U.S. treasury securities	30,026		30,026		—
Certificates of deposit	49		—		49
Mutual funds	543		543		—
Total marketable securities	30,618		30,569		49
Total	$	80,987	$	80,938	$	49



	Fair Value Measurements at Reporting Date Using
As of December 31, 2014	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Cash equivalents:
Money market funds	$	50,359	$	50,359	$	—
Total cash equivalents	50,359		50,359		—
Marketable securities:
U.S. treasury securities	30,020		30,020		—
Certificates of deposit	48		—		48
Mutual funds	520		520		—
Total marketable securities	30,588		30,540		48
Total	$	80,947	$	80,899	$	48

There were no transfers in or out of Level 1, Level 2, or Level 3 investments during the three months ended March 31, 2015.

For fair values determined by Level 1 inputs, which utilize quoted prices in active markets for identical assets, the level of judgment required to estimate fair value is relatively low. The value of investments in money market funds, U.S. treasury securities and mutual funds was determined using Level 1 inputs. Fair values determined by Level 2 inputs, which utilize data points that are observable such as quoted prices, interest rates and yield curves. Investments in certificates of deposit are valued using Level 2 inputs.

Fair Value of Other Financial Instruments

The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts payable and accrued expenses, approximate fair value due to their short-term nature. Based on current borrowing rates currently available in the market for bank loans with similar terms, management believes that the fair values of its bank loans approximates their respective carrying values (Level 1).

The carrying amounts and fair values the Notes are as follows (in thousands):



	March 31, 2015				December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Convertible Senior Notes	$	130,000	$	137,556	$	130,000	$	134,227

At March 31, 2015 and December 31, 2014, the fair values of the Notes were based on quoted market prices of similar instruments (Level 1).

- 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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