Fair Value Measurements

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

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 tables present our financial assets that are measured at fair value on a recurring basis (in thousands):

	March 31, 2016
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents
Commercial paper	$	—	$	2,000	$	—	$	2,000
Money market mutual funds	1,321		—		—		1,321
Total cash equivalents	1,321		2,000		—		3,321
Marketable securities
Commercial paper	—		7,485		—		7,485
Corporate notes and bonds	—		46,028		—		46,028
Government obligations	—		16,016		—		16,016
U.S. agency obligations	—		31,432		—		31,432
Total marketable securities	—		100,961		—		100,961
Total	$	1,321	$	102,961	$	—	$	104,282

	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. agency obligations	—		32,504		—		32,504
Total marketable securities	—		102,839		—		102,839
Total	$	246	$	102,839	$	—	$	103,085

We did not have any financial liabilities measured at fair value on a recurring basis at March 31, 2016 or December 31, 2015.

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.

There were no changes to our valuation techniques during the three months ended March 31, 2016.

During the three-month periods ended March 31, 2016 and 2015, we did not record any other-than-temporary impairments.

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.

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.