(3) Marketable Securities and Fair Value Disclosures

Marketable securities consisted of the following as of December 31, 2016 (in thousands):

	December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Short-term available-for-sale securities:
Corporate bonds	$	13,778	$	—	$	(16	)	$	13,762
Total	$	13,778	$	—	$	(16	)	$	13,762
Long-term available-for-sale securities:
Corporate bonds	$	2,355	$	3	$	(6	)	$	2,352
Total	$	2,355	$	3	$	(6	)	$	2,352

The investments have been in an unrealized loss position for less than twelve months. Based upon the Company’s evaluation of all relevant factors, the Company believes that the decline in fair value of securities held at December 31, 2016 below cost is temporary, and the Company intends to retain its investment in these securities for a sufficient period of time to allow for recovery of the fair value.

As of December 31, 2016, the amortized cost and estimated fair value of available-for-sale securities by contractual maturity were as follows (in thousands):

	Amortized		Fair
	Cost		Value
Due in one year or less	$	13,778	$	13,762
Due in one to two years		2,355		2,352
Total	$	16,133	$	16,114

Fair value 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). Inputs used to measure fair value are classified into the following hierarchy:

•

Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities. The Company’s Level 1 assets consist of money market investments. The Company does not have any Level 1 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 for the asset or liability. The Company’s Level 2 assets consist of corporate bonds and commercial paper securities. The Company does not have any Level 2 liabilities.

•

Level 3—Unobservable inputs for the asset or liability. The Company does not have any Level 3 assets or liabilities.

The following table identifies the Company’s assets that were measured at fair value on a recurring basis (in thousands):


	Balance		Level 1		Level 2		Level 3
December 31, 2016
Money market	$	7,672	$	7,672	$	—	$	—
Corporate bonds		16,114		—		16,114		—
Total	$	23,786	$	7,672	$	16,114	$	—


December 31, 2015
Money market	$	38,728	$	38,728	$	—	$	—
Total	$	38,728	$	38,728	$	—	$	—

As of December 31, 2016 and 2015, the Company had $7.7 million and $38.7 million, respectively, of cash equivalents consisting of money market funds with maturities of 90 days or less. The Company has the ability to liquidate these investments without restriction. The Company determines fair value for these money market funds and equity securities with Level 1 inputs through quoted market prices. There were no transfers between any fair value hierarchy levels in 2016 or 2015.

Fair Value of Other Financial Instruments

The carrying amount of other financial instruments, including cash and accounts payable, approximated fair value due to their short maturities. As of December 31, 2016 and 2015, the Company did not have any debt outstanding.