Investments and Fair Value Measurements

9 Months Ended

Sep. 30, 2018

The following table summarizes the Company's investments in marketable securities and fair value measurements by investment category reported as cash equivalents and short-term investments as at September 30, 2018 (in thousands):



	Carrying Amount		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Level 1		Level 2
Cash equivalents:
Money market funds	$	1,054	$	—	$	—		$	1,054	$	1,054	$	—
Commercial paper	22,428		—		(4		)	22,424		—		22,424
Municipal bonds	2,519		—		—			2,519		—		2,519
Total cash equivalents	$	26,001	$	—	$	(4	)	$	25,997	$	1,054	$	24,943

Short-Term Investments:
U.S. government securities	$	28,967	$	—	$	(144	)	$	28,823	$	28,823	$	—
U.S. government agency securities	14,315		—		(85		)	14,230		—		14,230
Municipal bonds	4,961				(14		)	4,947		—		4,947
Foreign government securities	5,020		—		(15		)	5,005		—		5,005
Corporate debt securities	145,074		47		(684		)	144,437		—		144,437
Commercial paper	21,076		—		(6		)	21,070		—		21,070
Certificates of deposit	1,258		—		—			1,258		—		1,258
Asset-backed securities	34,253		3		(205		)	34,051		—		34,051
Total short-term investments	$	254,924	$	50	$	(1,153	)	$	253,821	$	28,823	$	224,998
Total cash equivalents and short-term investments	$	280,925	$	50	$	(1,157	)	$	279,818	$	29,877	$	249,941



	Carrying Amount		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Level 1		Level 2
Cash equivalents:
Money market funds	$	58,953	$	—	$	—		$	58,953	$	58,953	$	—
Commercial paper	21,930		—		(3		)	21,927		—		21,927
Total cash equivalents	$	80,883	$	—	$	(3	)	$	80,880	$	58,953	$	21,927

Short-Term Investments:
U.S. government securities	$	17,472	$	—	$	(41	)	$	17,431	$	17,431	$	—
U.S. government agency securities	11,540		—		(30		)	11,510		—		11,510
Municipal bonds	6,974		2		(8		)	6,968		—		6,968
Foreign government securities	7,499		—		(27		)	7,472		—		7,472
Corporate debt securities	105,144		3		(273		)	104,874		—		104,874
Commercial paper	30,798		1		(9		)	30,790		—		30,790
Certificates of deposit	1,255		—		—			1,255		—		1,255
Asset-backed securities	15,310		—		(76		)	15,234		—		15,234
Total short-term investments	$	195,992	$	6	$	(464	)	$	195,534	$	17,431	$	178,103
Total cash equivalents and short-term investments	$	276,875	$	6	$	(467	)	$	276,414	$	76,384	$	200,030

As of September 30, 2018, the Company had no investments that were in an unrealized loss position for a period of twelve months or greater and have determined that the gross unrealized losses on investments are temporary in nature.

Realized gains and losses on marketable securities are included in other income (expense) on the Company's consolidated statements of income. Gross realized gains and losses on marketable securities for the three and nine months ended September 30, 2018 were not significant.

The Company uses inputs such as actual trade data, benchmark yields, quoted market prices from dealers or brokers, and other similar sources to determine the fair value of its investments. There were no transfers between Level 1 and Level 2 fair value categories during the periods presented.

The following table summarizes the estimated amortized cost and fair value of the Company's marketable securities by the contractual maturity date as at September 30, 2018 (in thousands):



	Amortized Cost		Fair Value
Due less than one year	$	193,309	$	192,753
Due in one to five years	87,616		87,065
Total	$	280,925	$	279,818

The following table summarizes the estimated amortized costs and fair value of the Company's marketable securities by the contractual maturity date as at December 31, 2017 (in thousands):



	Amortized Costs		Fair Value
Due less than one year	$	157,651	$	157,573
Due in one to five years	119,224		118,841
Total	$	276,875	$	276,414

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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