Fair Value Measurements

6 Months Ended

Jun. 30, 2016

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 either June 30, 2016 or December 31, 2015. The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015 by level within the fair value hierarchy:

	Actively Quoted		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable		Balance at
	Assets		Inputs		Inputs		June 30,
	Level 1		Level 2		Level 3		2016
	(In thousands)
As of June 30, 2016:
Assets
Money market deposits	$	14,017	$	—	$	—	$	14,017
Commercial paper		—		27,224		—		27,224
Corporate debt securities		—		13,014		—		13,014
Corporate equity securities		—		12,656		—		12,656
Total	$	14,017	$	52,894	$	—	$	66,911

	Actively Quoted		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable		Balance at
	Assets		Inputs		Inputs		December 31,
	Level 1		Level 2		Level 3		2015
	(In thousands)
As of December 31, 2015:
Assets
Money market deposits	$	13,928	$	—	$	—	$	13,928
Commercial paper		—		29,224		—		29,224
Corporate debt securities		—		22,359		—		22,359
Corporate equity securities		—		18,126		—		18,126
Total	$	13,928	$	69,709	$	—	$	83,637

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 and 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 certain restrictions on sale.

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:

	June 30, 2016
	Cost or		Gross		Gross		Total
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
	(In thousands)
Commercial paper	$	27,164	$	60	$	—	$	27,224
Corporate debt securities		13,014		3		(3)		13,014
Corporate equity securities		10,749		1,907		—		12,656
Total	$	50,927	$	1,970	$	(3)	$	52,894

	December 31, 2015
	Cost or		Gross		Gross		Total
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
	(In thousands)
Commercial paper	$	23,684	$	41	$	—	$	23,725
Corporate debt securities		20,569		—		(10)		20,559
Corporate equity securities		13,857		4,269		—		18,126
Total	$	58,110	$	4,310	$	(10)	$	62,410

The Company realized gains of $676,000 and $2.0 million on available-for-sale marketable securities for the three and six months ended June 30, 2016, respectively.  The Company had no realized gains or losses on available-for-sale marketable securities for the three and six months ended June 30, 2015, respectively.

All of the Company’s available-for-sale marketable securities had contractual maturities of one year or less as of June 30, 2016 and December 31, 2015.