Fair Value Measurements

9 Months Ended

Sep. 30, 2016

The Company discloses fair value measurements based on a framework outlined by GAAP which requires expanded disclosures regarding fair value measurements. GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. GAAP also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:



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

Level 2	Observable inputs other than Level 1 prices, 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	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

In accordance with the fair value hierarchy, the following table shows the fair value as of September 30, 2016 and December 31, 2015 of those financial assets and liabilities that are measured at fair value on a recurring basis.



	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total Fair Value
As of September 30, 2016:
Cash equivalents:
Money market funds	$	16,521	$	—	$	—	$	16,521
Corporate commercial paper, bonds and notes	—		1,250		—		1,250
Municipal bonds	—		330		—		330
Short-term investments:
Corporate commercial paper, stock, bonds and notes	—		32,684		—		32,684
Total assets at fair value	$	16,521	$	34,264	$	—	$	50,785



	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total Fair Value
As of December 31, 2015:
Cash equivalents:
Money market funds	$	13,568	$	—	$	—	$	13,568
Corporate commercial paper, bonds and notes	2,001		7,998		—		9,999
Municipal bonds	—		7,850		—		7,850
Short-term investments:
Corporate commercial paper, stock, bonds and notes	2,644		46,456		—		49,100
Total assets at fair value	$	18,213	$	62,304	$	—	$	80,517

No investments held at September 30, 2016 were transferred between levels.