Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

The composition of marketable securities is as follows:

(in thousands, except years)	Contractual Maturity (in years)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2016:
Classified as current assets
Corporate notes	Less than 1	$	37,130	$	9	$	(14	)	$	37,125
Commercial paper	Less than 1		10,453		—		—			10,453
Securities of government-sponsored entities	Less than 1		6,494		9		—			6,503
Short-term marketable securities			54,077		18		(14	)		54,081
Classified as non-current assets
Securities of government-sponsored entities	1 to 2		2,597		6		—			2,603
Corporate notes	1 to 2		11,044		13		(6	)		11,051
Long-term marketable securities			13,641		19		(6	)		13,654
Total marketable securities at June 30, 2016		$	67,718	$	37	$	(20	)	$	67,735

December 31, 2015:
Classified as current assets
Certificates of deposit	Less than 1	$	6,615	$	—	$	—		$	6,615
Corporate notes	Less than 1		108,739		5		(173	)		108,571
Commercial paper	Less than 1		21,991		—		—			21,991
Securities of government-sponsored entities	Less than 1		28,284		—		(38	)		28,246
Short-term marketable securities			165,629		5		(211	)		165,423
Classified as non-current assets
Certificates of deposit	1 to 2		12,392		—		—			12,392
Corporate notes	1 to 2		43,857		—		(109	)		43,748
Securities of government-sponsored entities	1 to 2		56,412		—		(220	)		56,192
Long-term marketable securities			112,661		—		(329	)		112,332
Total marketable securities at December 31, 2015		$	278,290	$	5	$	(540	)	$	277,755

Schedule of Derivatives Not Designated as Cash Flow Hedges

The following table summarizes the fair values of derivative instruments at June 30, 2016 and December 31, 2015:

	Asset Derivatives					Liability Derivatives
		Fair Value					Fair Value
	Balance Sheet	June 30,		December 31,		Balance Sheet	June 30,		December 31,
(in thousands)	Location	2016		2015		Location	2016		2015
Derivative instruments not designated as cash flow hedges
Forward exchange contracts	Other current assets	$	—	$	46	Other current liabilities	$	99		—
Total derivatives		$	—	$	46		$	99		—

Schedule of Derivative Instruments Effect on Statements of Operations

The following table summarizes the effect of derivative instruments on the Consolidated Statements of Operations for the three and six months ended June 30, 2016 and June 30, 2015:

Three Months Ended

June 30, 2016

June 30, 2015

Location of

Amount of

Location of

Amount of

(Gain)/Loss

Recognized in

(in thousands)

Income

Derivative instruments not designated as cash flow hedges

Forward exchange contracts

Other (income)

expense

(11

)

Other (income)

expense

502

Total derivatives

(11

)

502

Six Months Ended

June 30, 2016

June 30, 2015

Location of

Amount of

Location of

Amount of

(Gain)/Loss

Recognized in

(in thousands)

Income

Derivative instruments not designated as cash flow hedges

Forward exchange contracts

Other (income)

expense

168

Other (income)

expense

(1,664

)

Total derivatives

168

(1,664

)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The fair values of the Company’s assets and liabilities, including cash equivalents, marketable securities, restricted investments, derivatives, and contingent consideration liabilities are measured at fair value on a recurring basis, and are determined under the fair value categories in accordance with the authoritative guidance as follows:

			Quoted Price in		Significant Other		Significant
			Active Market		Observable Inputs		Unobservable
(in thousands)	Total		(Level 1)		(Level 2)		Inputs (Level 3)
June 30, 2016:
Money market funds	$	113,976	$	113,976	$	—	$	—
Corporate notes		48,176		—		48,176		—
Commercial paper		10,453		—		10,453		—
Securities of government-sponsored entities		9,106		—		9,106		—
Total assets	$	181,711	$	113,976	$	67,735	$	—

December 31, 2015:
Money market funds	$	68,425	$	68,425	$	—	$	—
Certificates of deposit		19,007		19,007		—		—
Corporate notes		152,319		—		152,319		—
Commercial paper		21,991		—		21,991		—
Securities of government-sponsored entities		115,929		—		115,929		—
Total assets	$	377,671	$	87,432	$	290,239	$	—

Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation

The following table sets forth the changes in the estimated fair value of the Company’s liabilities measured on a recurring basis using significant unobservable inputs (Level 3):

	Six Months Ended June 30,
(in thousands)	2016		2015
Fair value measurement at beginning of period	$	—	$	644
Contingent consideration liability recorded upon acquisition		21,439		—
Change in fair value measurement		339		(36	)
Changes resulting from foreign currency fluctuations		32		—
Contingent consideration paid or settled		—		(608	)
Fair value measurement at end of period	$	21,810	$	—