Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company determines the fair value of its financial instruments based upon the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Below are the three levels of inputs that may be used to measure fair value:

• Level 1—Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

• Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Transfers into or out of any hierarchy level are recognized at the end of the reporting period in which the transfers occurred. There were no material transfers between any levels during the three months ended March 31, 2020. There were no material transfers between any levels during 2019.

The following table summarizes the financial instruments measured at fair value on a recurring basis in the Company’s accompanying condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019 (in thousands):

	As of March 31, 2020
	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents:
Cash	$	21,949	$	—	$	—	$	21,949
Money market funds (1)	18,774		—		—		18,774
Total	$	40,723	$	—	$	—	$	40,723
Marketable Securities
Domestic corporate debt securities (2)	$	—	$	67,477	$	—	$	67,477
Domestic corporate commercial paper (2)	—		17,361		—		17,361
Agency bonds (2)	$	—	$	12,419	$	—	$	12,419
Total	$	—	$	97,257	$	—	$	97,257

 

	As of December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents:
Cash	$	34,726	$	—	$	—	$	34,726
Money market funds (1)	35,160		—		—		35,160
Total	$	69,886	$	—	$	—	$	69,886
Marketable Securities
Domestic corporate debt securities (2)	$	—	$	41,229	$	—	$	41,229
Domestic corporate commercial paper (2)	—		24,905		—		24,905
Agency bonds (2)	—		12,389		—		12,389
US treasury bonds (2)	$	—	$	12,492	$	—	$	12,492
Total	$	—	$	91,015	$	—	$	91,015

(1)                           Fair value is based upon quoted market prices.

(2)                           Fair value is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. Inputs are obtained from various sources, including market participants, dealers and brokers.