3. Fair Value Measurements

The Company’s cash equivalents are classified within Level 1 of the fair value hierarchy. The Company’s investments in marketable securities are classified within Level 2 of the fair value hierarchy.

The fair values of the Company’s marketable securities are based on prices obtained from independent pricing sources. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are reflected within Level 2, as they are primarily based on observable pricing for similar assets or other market observable inputs. Typical inputs used by these pricing services include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers or estimates of cash flow, prepayment spreads and default rates.

The following tables summarize the Company’s money market funds and marketable securities as of June 30, 2017 and December 31, 2016:

	June 30, 2017
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Cash equivalents:
Money market funds	$	133,450	$	133,450	$	—	$	—
Total cash equivalents		133,450		133,450		—		—
Marketable securities:
U.S. government securities		75,959		—		75,959		—
U.S. corporate bonds		30,812		—		30,812		—
International corporate bonds		6,000		—		6,000		—
U.S. commercial paper		27,222		—		27,222		—
International commercial paper		12,485		—		12,485		—
Total marketable securities		152,478		—		152,478		—
Total cash equivalents and marketable securities	$	285,928	$	133,450	$	152,478	$	—

	December 31, 2016
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Cash equivalents:
Money market funds	$	168,517	$	168,517	$	—	$	—
Total cash equivalents		168,517		168,517		—		—
Marketable securities:
U.S. government securities		100,031		—		100,031		—
U.S. corporate bonds		58,452		—		58,452		—
International corporate bonds		24,190		—		24,190		—
U.S. commercial paper		30,351		—		30,351		—
International commercial paper		15,938		—		15,938		—
Total marketable securities		228,962		—		228,962		—
Total cash equivalents and marketable securities	$	397,479	$	168,517	$	228,962	$	—

During the six months ended June 30, 2017 and 2016, there were no transfers among the Level 1, Level 2 and Level 3 categories.

Marketable Securities

The following tables summarize the gross unrealized gains and losses of the Company’s marketable securities as of June 30, 2017 and December 31, 2016:

	June 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Assets:
U.S. government securities	$	76,015	$	—	$	(56	)	$	75,959
U.S. corporate bonds		30,823		—		(11	)		30,812
International corporate bonds		6,000		—		—			6,000
U.S. commercial paper		27,222		—		—			27,222
International commercial paper		12,485		—		—			12,485
	$	152,545	$	—	$	(67	)	$	152,478

	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Assets:
U.S. government securities	$	100,055	$	2	$	(26	)	$	100,031
U.S. corporate bonds		58,508		—		(56	)		58,452
International corporate bonds		24,212		—		(22	)		24,190
U.S. commercial paper		30,351		—		—			30,351
International commercial paper		15,938		—		—			15,938
	$	229,064	$	2	$	(104	)	$	228,962

As of June 30, 2017, all marketable securities held by the Company had remaining contractual maturities of one year or less.

There have been no impairments of the Company’s assets measured and carried at fair value during the three and six months ended June 30, 2017 and the year ended December 31, 2016.