Fair Value Measurements

3 Months Ended

Mar. 31, 2013

Fair Value Measurements

Fair Value Measurements

Note 3.  Fair Value Measurements

The Company measures certain financial assets, including cash equivalents and marketable securities, at their fair value on a recurring basis. The fair value of these financial assets was determined based on a hierarchy of three levels of inputs, of which the first two are considered observable and the last unobservable, as follows:

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

Level 2:  Observable inputs other than Level 1 inputs, 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; and

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.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. The Company did not have any non-financial assets or liabilities that were measured or disclosed at fair value on a recurring basis at March 31, 2013 and December 31, 2012, respectively. The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis at March 31, 2013 and December 31, 2012 by level within the fair value hierarchy:

	Actively Quoted Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		SignificantUnobservableInputsLevel 3		Balance atMarch 31,2013
	(In thousands)
As of March 31, 2013:
Assets
Money market deposits	$	5,074	$	—	$	—	$	5,074
U.S. Treasury securities	1,268		—		—		1,268
Debt securities of U.S. government-sponsored entities	—		1,877		—		1,877
Commercial paper	—		43,331		—		43,331
Corporate debt securities	—		36,903		—		36,903
Total	$	6,342	$	82,111	$	—	$	88,453

	Actively QuotedMarkets forIdentical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Balance at December 31, 2012
	(In thousands)
As of December 31, 2012:
Assets
Money market deposits	$	7,403	$	—	$	—	$	7,403
U.S. Treasury securities	1,276		—		—		1,276
Debt securities of U.S. government-sponsored entities	—		761		—		761
Commercial paper	—		33,888		—		33,888
Corporate debt securities	—		52,102		—		52,102
Total	$	8,679	$	86,751	$	—	$	95,430

The Company’s debt securities of U.S. government-sponsored entities, commercial paper and corporate bonds are classified as Level 2 as they are valued using multi-dimensional relational pricing models that use observable market inputs, including benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers and reference data. Not all inputs listed are available for use in the evaluation process on any given day for each security evaluation. In addition, market indicators, industry and economic events are monitored and may serve as a trigger to acquire further corroborating market data. There were no transfers between Level 1 and Level 2 categories during the three months ended March 31, 2013 and 2012, respectively.

All of the Company’s marketable securities are classified as available-for-sale. The following tables illustrate the Company’s available-for-sale marketable securities as of the dates indicated:

	March 31, 2013
	AmortizedCost		UnrealizedGains		UnrealizedLosses			EstimatedFair Value
	(In thousands)
U.S. Treasury securities	$	1,266	$	2	$	—		$	1,268
Debt securities of U.S. government-sponsored entities	1,877		—		—			1,877
Commercial paper	38,891		41		—			38,932
Corporate debt securities	36,913		1		(11		)	36,903
Total	$	78,947	$	44	$	(11	)	$	78,980

	December 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
	(In thousands)
U.S. Treasury securities	$	1,275	$	1	$	—		$	1,276
Debt securities of U.S. government-sponsored entities	761		—		—			761
Commercial paper	28,854		35		—			28,889
Corporate debt securities	50,155		2		(23		)	50,134
Total	$	81,045	$	38	$	(23	)	$	81,060

The Company had no realized gains or losses on available-for-sale marketable securities for the three months ended March 31, 2013 and 2012, respectively.

All of the Company’s available-for-sale marketable securities had contractual maturities of one year or less as of March 31, 2013 and December 31, 2012, respectively.