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Fair Value Measurements
 12 Months Ended
Dec. 31, 2015
Fair Value Measurements  
Fair Value Measurements

 

Note 3 — Fair Value Measurements

 

Fair value is the price that would be received for an asset or the amount paid to transfer a liability in an orderly transaction between market participants. The Company is required to classify certain assets and liabilities based on the following fair value hierarchy:

 

·

Level 1: Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

 

·

Level 2: Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and

 

·

Level 3: Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

 

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company has evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts.

 

The following table presents the Company’s assets that were measured at fair value on a recurring basis at December 31, 2015 and 2014:

 

 

 

 

 

Level 1

 

 

 

Level 2

 

 

 

Level 3

 

 

 

Total

 

 

 

(in thousands)

 

December 31, 2015

 

 

 

 

 

 

 

 

 

Cash equivalents

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$
9,999 

 

$

—

 

$

—

 

$
9,999 

 

Government agency securities

 

—

 
4,998 

 

—

 
4,998 

 

Commercial paper

 

—

 
2,999 

 

—

 
2,999 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
9,999 

 

$
7,997 

 

$

—

 

$
17,996 

 

Short-term investments

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$
94,918 

 

$

—

 

$

—

 

$
94,918 

 

Government agency securities

 

—

 
12,988 

 

—

 
12,988 

 

Corporate debt

 

—

 
8,144 

 

—

 
8,144 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
94,918 

 

$
21,132 

 

$

—

 

$
116,050 

 

Other

 

 

 

 

 

 

 

 

 

Assets held for sale

 

$

—

 

$
5,000 

 

$

—

 

$
5,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

—

 

$
5,000 

 

$

—

 

$
5,000 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

 

 

 

 

 

 

 

Short-term investments

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$
81,527 

 

$

—

 

$

—

 

$
81,527 

 

Corporate debt

 

—

 
39,045 

 

—

 
39,045 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
81,527 

 

$
39,045 

 

$

—

 

$
120,572 

 

Other

 

 

 

 

 

 

 

 

 

Assets held for sale

 

$

—

 

$
6,000 

 

$

—

 

$
6,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

—

 

$
6,000 

 

$

—

 

$
6,000 

 

 

The above table includes highly liquid investments with maturities of three months or less which are classified as cash equivalents and are carried at cost, which approximates fair value. All investments classified as available-for-sale are recorded at fair value within short-term investments in the Consolidated Balance Sheets. The Company’s investments classified as Level 1 are based on quoted prices that are available in active markets. The Company’s investments classified as Level 2 are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes, or alternative pricing sources with reasonable levels of price transparency.