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Fair Value Measurements
 6 Months Ended
Jun. 30, 2013
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Under applicable accounting guidance, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
We determine the fair values of our financial instruments based on the fair value hierarchy established under applicable accounting guidance which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value. For more information regarding the fair value hierarchy and how we measure fair value, see Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2012.
Note 9—Fair Value Measurements (continued)
As of June 30, 2013 and December 31, 2012, our assets carried at fair value on a recurring basis were as follows:
 
Level 1
 
Level 2
 
Level 3
 
Total Fair Value
June 30, 2013
(In thousands)
Corporate bonds
$
—

 
$
38,965

 
$
—

 
$
38,965

Commercial paper
—

 
58,970

 
—

 
58,970

Negotiable certificate of deposit
—

 
4,409

 
—

 
4,409

U.S. Treasury notes
—

 
2,304

 
—

 
2,304

Agency securities
—

 
26,504

 
—

 
26,504

Mortgage-backed securities
—

 
1,147

 
—

 
1,147

Municipal bonds
—

 
19,590

 
—

 
19,590

Asset-backed securities
—

 
20,578

 
—

 
20,578

Total
$
—

 
$
172,467

 
$
—

 
$
172,467

 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
Corporate bonds
$
—

 
$
37,357

 
$
—

 
$
37,357

Commercial paper
—

 
55,748

 
—

 
55,748

Negotiable certificate of deposit
—

 
4,414

 
—

 
4,414

U.S. treasury notes
—

 
22,267

 
—

 
22,267

Agency securities
—

 
25,867

 
—

 
25,867

Municipal bonds
—

 
11,568

 
—

 
11,568

Asset-backed securities
—

 
26,566

 
—

 
26,566

Total
$
—

 
$
183,787

 
$
—

 
$
183,787


We based the fair value of our fixed income securities held as of June 30, 2013 and December 31, 2012 on quoted prices in active markets for similar assets. We had no transfers between Level 1, Level 2 or Level 3 assets during the six-month period ended June 30, 2013 or the year ended December 31, 2012.