Fair Value Measurements

9 Months Ended

Sep. 30, 2016

Note 3. Fair Value Measurements

We measure certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:

Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

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 table presents our assets that are measured at fair value on a recurring basis using the above input categories:


	As of September 30, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets:
Cash equivalents
Money market funds	$	30,004	$	—	$	—	$	30,004

Total assets measured at fair value	$	30,004	$	—	$	—	$	30,004