Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

5. Fair Value of Financial Instruments

The Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. The following table sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2016 and 2015, by level within the fair value hierarchy (in thousands):

	As of December 31, 2016
	Level I		Level II		Level III		FairValue
Financial Assets:
Cash equivalents:
Commercial paper		—		6,993		—		6,993
Money market funds		36,708		—		—		36,708
Short-term investments:
Commercial paper		—		14,237		—		14,237
Corporate debt obligations		—		109,715		—		109,715
US government agencies		—		18,950		—		18,950
Bank deposits		—		10,847		—		10,847
Total financial assets	$	36,708	$	160,742	$	—	$	197,450
Financial Liability:
Accrued and other current liabilities - Forward foreign    exchange contracts	$	—	$	639	$	—	$	639

	As of December 31, 2015
	Level I		Level II		Level III		Fair Value
Financial Assets:
Cash equivalents:
Bank deposits	$	—	$	10,253	$	—	$	10,253
Commercial paper		—		13,893		—		13,893
Money market funds		86,200		—		—		86,200
Short-term investments:
Corporate debt obligations		—		86,292		—		86,292
Bank deposits		—		10,263		—		10,263
Total financial assets	$	86,200	$	120,701	$	—	$	206,901
Financial Liability:
Accrued and other current liabilities - Forward foreign    exchange contracts	$	—	$	595	$	—	$	595

In addition to the amounts disclosed in the above table, the fair value of the Company’s Israeli severance pay assets, which were comprised of Level II assets, was $5.1 million and $4.5 million as of December 31, 2016 and 2015, respectively.

The Company’s cash equivalents and short-term investments are classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The types of instruments valued based on quoted market prices in active markets include mutual funds and money market securities. Such instruments are generally classified within Level 1 of the fair value hierarchy. The types of instruments valued based on quoted prices in less active markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability, include U.S. agency securities, investment-grade corporate bonds, term deposits and commercial paper. Such instruments are generally classified within Level 2 of the fair value hierarchy. There were no transfers between Level 1, Level 2 and Level 3 during the years ended December 31, 2016 and 2015.