Fair Value Measurements of Assets and Liabilities

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements of Assets and Liabilities

Fair Value Measurements of Assets and Liabilities

Factors used in determining the fair value of financial assets and liabilities are summarized into three broad categories:

• Level 1 – quoted prices in active markets for identical securities as of the reporting date;

• Level 2 – other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; and

• Level 3 – significant inputs that are generally less observable than objective sources, including our own assumptions in determining fair value.

The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table presents our financial assets that were measured at fair value on a recurring basis (in thousands):

	December 31, 2015
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents
Money market mutual funds	$	246	$	—	$	—	$	246
Marketable securities
Commercial paper	—		7,485		—		7,485
Corporate notes and bonds	—		48,859		—		48,859
Government obligations	—		13,991		—		13,991
U.S. government and agency	—		32,504		—		32,504
	—		102,839		—		102,839
Total	$	246	$	102,839	$	—	$	103,085
	December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents
Money market mutual funds	$	1,609	$	—	$	—	$	1,609
Marketable securities
Commercial paper	—		2,499		—		2,499
Corporate notes and bonds	—		57,105		—		57,105
Government obligations	—		1,996		—		1,996
U.S. government and agency	—		38,943		—		38,943
	—		100,543		—		100,543
Total	$	1,609	$	100,543	$	—	$	102,152

We did not have any financial liabilities measured at fair value on a recurring basis at December 31, 2015 or 2014.

We classify our marketable securities as available-for-sale and, accordingly, record them at fair value based on quoted market prices for similar securities. Unrealized holding gains and losses are excluded from earnings and are reported as a separate component of stockholders’ equity until realized. See the Consolidated Statements of Comprehensive Loss.

We recognize or disclose the fair value of certain assets, such as non-financial assets, primarily long-lived assets, goodwill, intangible assets and certain other assets in connection with impairment evaluations. All of our non-recurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. During 2015, 2014 and 2013 we did not record any other-than-temporary impairments on those financial assets required to be measured at fair value on a non-recurring basis.

The carrying value of our term loan approximates its fair value and falls under Level 2 of the fair value hierarchy, as the interest rate is variable and based on current market rates.

There were no changes to our valuation techniques during 2015.