Fair Value Measurements

3 Months Ended

Mar. 31, 2015

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, 2015 and December 31, 2014, respectively. The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014 by level within the fair value hierarchy:

	Actively Quoted		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable		Balance at
	Assets		Inputs		Inputs		March 31,
	Level 1		Level 2		Level 3		2015
	(In thousands)
As of March 31, 2015:
Assets
Money market deposits	$	10,625	$	—	$	—	$	10,625
Commercial paper		—		19,748		—		19,748
Corporate debt securities		—		48,292		—		48,292
Corporate equity securities		—		37,002		—		37,002
Total	$	10,625	$	105,042	$	—	$	115,667

	Actively Quoted		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable		Balance at
	Assets		Inputs		Inputs		December 31,
	Level 1		Level 2		Level 3		2014
	(In thousands)
As of December 31, 2014:
Assets
Money market deposits	$	12,397	$	—	$	—	$	12,397
Commercial paper		—		29,749		—		29,749
Corporate debt securities		—		46,435		—		46,435
Total	$	12,397	$	76,184	$	—	$	88,581

The Company’s 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. The Company’s corporate equity securities are classified as Level 2 while subject to a lock-up provision. There were notransfers between Level 1 and Level 2 categories during the three months ended March 31, 2015 and 2014, respectively. The corporate equity securities were previously recorded as investments in privately held company in other assets as of December 31, 2014.

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, 2015
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
	(In thousands)
Commercial paper	$	19,734	$	14	$	—	$	19,748
Corporate debt securities		48,310		—		(18)		48,292
Corporate equity securities		13,857		23,145		—		37,002
Total	$	81,901	$	23,159	$	(18)	$	105,042

	December 31, 2014
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
	(In thousands)
Commercial paper	$	29,730	$	19	$	—	$	29,749
Corporate debt securities		44,219		—		(34)		44,185
Total	$	73,949	$	19	$	(34)	$	73,934

The Company had no realized gains or losses on available-for-sale marketable securities for the three months ended March 31, 2015 and 2014, respectively.

All of the Company’s available-for-sale marketable securities had contractual maturities of one year or less as of March 31, 2015 and December 31, 2014, respectively.