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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis include the following as of December 31, 2013 and 2012 (in thousands):



	December 31, 2013								December 31, 2012
	Fair Value		Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3
Cash equivalents	$	65,700	$	65,700	$	—	$	—	$	51,521	$	51,521	$	—	$	—
Corporate bonds	78,609		—		78,609		—		—		—		—		—
Agency bonds	121,316		—		121,316		—		—		—		—		—
	$	265,625	$	65,700	$	199,925	$	—	$	51,521	$	51,521	$	—	$	—

Changes in Fair Value of Preferred Stock Warrant Liability

The changes in the fair value of preferred stock warrants are summarized below (in thousands):



	December 31,
	2011
Fair value at beginning of period	$	39,756
Changes in fair value of preferred stock warrant liabilities recorded in the statement of operations	42,559
Exercise of preferred stock warrants	(82,315		)
Fair value at end of period	$	—

Common Stock Warrants Outstanding

The following weighted-average assumptions were used to determine the fair value of the Series C, Series D, and Series E Preferred Stock warrants at the exercise date during March 2011:



	Series C			Series D			Series E
Risk-free interest rate	0.1		%	0.1		%	0.1		%
Expected term (in years)	0.0			0.0			0.0
Estimated dividend yield	—			—			—
Weighted-average estimated volatility	43.1		%	43.1		%	43.1		%
Fair value (in thousands)	$	3,905		$	56,445		$	21,965

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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