Fair Value of Financial Assets and Liabilities

12 Months Ended

Dec. 31, 2015

Fair Value of Financial Assets and Liabilities

Fair Value of Financial Assets and Liabilities

3. Fair Value of Financial Assets and Liabilities

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values:

	Fair Value Measurements as of December 31,
	2015 Using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	8,810	$	250	$	—	$	9,060
Marketable securities		—		82,187		—		82,187
Total Assets	$	8,810	$	82,437	$	—	$	91,247

	Fair Value Measurements as of December 31,
	2014 Using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	10,012	$	—	$	—	$	10,012
Marketable securities		—		5,891		—		5,891
	$	10,012	$	5,891	$	—	$	15,903

As of December 31, 2015, the Company’s cash equivalents consisted of money market funds and corporate debt securities with original maturities of less than three months. As of December 31, 2014, the Company’s cash equivalents consisted of money market funds. The Company valued its money market funds based on Level 1 inputs. In determining the fair value of its corporate debt securities, commercial paper, asset-backed securities and U.S. government agency debt securities as of December 31, 2015 and 2014, the Company relied on quoted prices for identical securities in markets that are not active, a Level 2 input. These quoted prices were obtained by the Company with the assistance of a third‑party pricing service based on available trade, bid and other observable market data for identical securities. Quarterly, the Company compares the quoted prices obtained from the third‑party pricing service to other available independent pricing information to validate the reasonableness of the quoted prices provided. The Company evaluates whether adjustments to third‑party pricing is necessary and, historically, the Company has not made adjustments to quoted prices obtained from the third‑party pricing service. During the years ended December 31, 2015 and 2014, there were no transfers between Level 1,  Level 2 and Level 3.

As of December 31, 2015 and 2014, the fair value of the Company’s available-for-sale marketable securities by type of security was as follows:

	December 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gain		Loss		Value
Marketable securities:
Corporate debt securities	$	46,270	$	—	$	(125)	$	46,145
Commercial paper		9,789		—		—		9,789
Asset-backed securities		6,234		—		(14)		6,220
U.S. government agency debt securities		20,048		—		(15)		20,033
Total marketable securities	$	82,341	$	—	$	(154)	$	82,187

	December 31, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gain		Loss		Value
Marketable securities:
Corporate debt securities	$	5,096	$	—	$	(6)	$	5,090
U.S. government agency debt securities		801		—		—		801
Total marketable securities	$	5,897	$	—	$	(6)	$	5,891

As of December 31, 2015 and 2014, the Company’s investments in corporate debt securities had credit ratings of A and above and remaining maturities of less than 15 months and less than 13 months, respectively.