Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table sets forth the fair value of our financial assets and liabilities, allocated into Level 1, Level 2 and Level 3, that were measured on a recurring basis (in thousands):

	June 30, 2017
	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	18,046	$	—	$	—	$	18,046
Corporate notes and commercial paper	—			134,677		—		134,677
U.S. government agency securities		—		86,745		—		86,745
Total financial assets	$	18,046	$	221,422	$	—	$	239,468
Financial Liabilities:
Embedded derivatives liabilities	$	—	$	—	$	1,521	$	1,521

	December 31, 2016
	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	6,254	$	—	$	—	$	6,254
Corporate notes and commercial paper		—		133,099		—		133,099
U.S. government agency securities		—		55,936		—		55,936
Total financial assets	$	6,254	$	189,035	$	—	$	195,289
Financial Liabilities:
Embedded derivatives liabilities	$	—	$	—	$	246	$	246

Summary of Changes in Estimated Fair Value of Embedded Derivatives Liabilities Measured on Recurring Basis

The following table sets forth a summary of the changes in the estimated fair value of the Company’s embedded derivatives liabilities, which were measured at fair value on a recurring basis (in thousands):

Balance as of December 31, 2016	$	246
Issuance of embedded derivatives		609
Net increase in fair value included in other income (expense)		666
Balance as of June 30, 2017	$	1,521