Fair Value Measurements

9 Months Ended

Sep. 30, 2016

Fair Value Measurements

Fair Value Measurements

7. Fair Value Measurements

The Company follows accounting guidance that emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Fair value measurements are defined on a three level hierarchy:

Level 1 inputs:	Quoted prices for identical assets or liabilities in active markets;
Level 2 inputs:	Observable inputs other than Level 1 prices, such as quoted market prices for similar assets or liabilities or other inputs that are observable or can be corroborated by market data; and
Level 3 inputs:	Unobservable inputs that are supported by little or no market activity and require the reporting entity to develop assumptions that market participants would use when pricing the asset or liability.

The following table presents the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis:

Description	Total		Level 1		Level 2		Level 3
	(in thousands)
September 30, 2016
Assets:
Money market funds	$	42,490	$	42,490	$	—	$	—
Available-for-sale securities:
Certificates of deposit	33,380		33,380		—		—
U.S. treasury notes	57,085		57,085		—		—
U.S. government agency securities	122,142		—		122,142		—
Total assets at fair value	$	255,097	$	132,955	$	122,142	$	—
December 31, 2015
Assets:
Money market funds	$	31,761	$	31,761	$	—	$	—
Available-for-sale securities:
Certificates of deposit	32,003		32,003		—		—
U.S. treasury notes	35,054		35,054		—		—
U.S. government agency securities	148,183		—		148,183		—
Total assets at fair value	$	247,001	$	98,818	$	148,183	$	—

There were no transfers between Levels 1, 2 or 3 during the three and nine months ended September 30, 2016.