Marketable Securities and Fair Value Measurements

6 Months Ended

Jun. 30, 2015

Marketable Securities and Fair Value Measurements

Marketable securities and fair value measurements

3.Marketable Securities and Fair Value Measurements

Marketable Securities

As of June 30, 2015, all of the Company’s marketable securities were classified as available-for-sale and their estimated fair values were $90.2 million. The Company did not hold any available-for-sale securities at December 31, 2014.

The following table presents details of the Company’s marketable securities as of June 30, 2015 (in thousands):

	June 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Short-term:
Investment securities	$	11,428	$	3	$	(6	)	$	11,425
Long-term:
Investment securities	78,775		37		(82		)	78,730
Total	$	90,203	$	40	$	(88	)	$	90,155

Fair Value Measurements

The Company’s financial assets and liabilities are measured at fair value, which 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 (exit price). The three levels of inputs used to measure fair value are as follows:

· Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities

· Level 2 — Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable or can be corroborated by observable market data for substantially the full-term of the asset or liability

· Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability

The following tables set forth the fair value of the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 based on the three-tier value hierarchy (in thousands):

	June 30, 2015
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	195,173	$	—	$	—	$	195,173
Short-term investments:
Certificates of deposit	40,000		—		—		40,000
Investment securities	—		11,425		—		11,425
Long-term:
Investment securities	—		78,730		—		78,730
Total	$	235,173	$	90,155	$	—	$	325,328

	December 31, 2014
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	302,595	$	—	$	—	$	302,595
Short-term investments:
Certificates of deposit	60,000		—		—		60,000
Restricted cash:
Money market funds	302		—		—		302
Total	$	362,897	$	—	$	—	$	362,897