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Fair Value Measurements | 9 Months Ended
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Sep. 30, 2016
Fair Value Disclosures [Abstract] |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value:
• | Level 1 — Observable inputs that reflect quoted prices 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 that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company primarily uses broker quotes for valuation of its short-term investments. The forward exchange contracts are classified as Level 2 because they are valued using quoted market prices and other observable data for similar instruments in an active market.
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The fair value of the Company’s convertible notes is influenced by interest rates, the Company’s stock price and stock market volatility. The estimated fair value of the Company’s convertible notes based on a market approach was approximately $161.2 million and $123.1 million as of September 30, 2016 and December 31, 2015, respectively, and represents a Level 2 valuation. The Company’s other debts and capital leases assumed from the TVN acquisition are classified within Level 2 because these borrowings are not actively traded and the majority of them have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. Additionally, the Company considers the carrying amount of its capital lease obligations to approximate their fair value because the weighted average interest rate used to formulate the carrying amounts approximates current market rates. The other debts and capital leases outstanding as of September 30, 2016 were $22.8 million in the aggregate. (See Note 11, “Convertible Notes, Other debts and Capital Leases” for additional information). The Company’s liabilities for the TVN contingent consideration under the TVN Purchase Agreement were fully paid as of August 31, 2016, of which $3.5 million was paid in the second quarter of 2016 and the remaining $2.5 million was paid in the third quarter of 2016. As of September 30, 2016, there were no amounts of TVN contingent consideration which remained outstanding. The liabilities for the assumed TVN employee equity plans of approximately $2.9 million were fully paid in the second quarter of 2016 and there were no other outstanding amounts under these plans at September 30, 2016. During the nine months ended September 30, 2016, there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition. The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
| Level 1 |  | Level 2 |  | Level 3 |  | Total
As of September 30, 2016 |  |  |  |  |  |  |
Cash equivalents |  |  |  |  |  |  |
Money market funds | $ | 6,276 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,276 |
Short-term investments |  |  |  |  |  |  |
Corporate bonds | — |  |  | 7,931 |  |  | — |  |  | 7,931 |
Prepaids and other current assets |  |  |  |  |  |  |
Time deposit pledged for credit card facility | — |  |  | 580 |  |  | — |  |  | 580 |
Derivative assets | — |  |  | 232 |  |  | — |  |  | 232 |
Other assets |  |  |  |  |  |  |
Long-term investment | 530 |  |  | — |  |  | — |  |  | 530 |
Total assets measured and recorded at fair value | $ | 6,806 |  |  | $ | 8,743 |  |  | $ | — |  |  | $ | 15,549 |
Accrued liabilities |  |  |  |  |  |  |
Derivative liabilities | — |  |  | 17 |  |  | — |  |  | 17 |
Total liabilities measured and recorded at fair value | $ | — |  |  | $ | 17 |  |  | $ | — |  |  | $ | 17 |
| Level 1 |  | Level 2 |  | Level 3 |  | Total
As of December 31, 2015 |  |  |  |  |  |  |
Cash equivalents |  |  |  |  |  |  |
Money market funds | $ | 53,434 |  |  | $ | — |  |  | $ | — |  |  | $ | 53,434 |
U.S. Treasury bills | 24,998 |  |  | — |  |  | — |  |  | 24,998 |
Short-term investments |  |  |  |  |  |  |
Corporate bonds | — |  |  | 25,505 |  |  | — |  |  | 25,505 |
Commercial paper | — |  |  | 1,099 |  |  | — |  |  | 1,099 |
Prepaids and other current assets |  |  |  |  |  |  |
Time deposit pledged for credit card facility | — |  |  | 580 |  |  | — |  |  | 580 |
Derivative assets | — |  |  | 113 |  |  | — |  |  | 113 |
Other assets |  |  |  |  |  |  |
Long-term investment | 1,840 |  |  | — |  |  | — |  |  | 1,840 |
Total assets measured and recorded at fair value | $ | 80,272 |  |  | $ | 27,297 |  |  | $ | — |  |  | $ | 107,569 |
Accrued liabilities |  |  |  |  |  |  |
Derivative liabilities | $ | — |  |  | $ | 371 |  |  | $ | — |  |  | $ | 371 |
Total liabilities measured and recorded at fair value | $ | — |  |  | $ | 371 |  |  | $ | — |  |  | $ | 371 |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
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