2. Fair Value Disclosures

Cash Equivalents and Short-term Investments

The financial instruments of the Company measured at fair value on a recurring basis are cash equivalents and short-term investments.

The Company’s fixed income available-for-sale securities consist of high quality, investment grade securities. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1) or inputs other than quoted prices that are observable either directly or indirectly (Level 2) in determining fair value.

The types of instruments valued based on quoted market prices in active markets include most money market securities. Such instruments are generally classified within Level 1 of the fair value hierarchy.

The types of instruments valued based on quoted prices in markets that are less active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency are generally classified within Level 2 of the fair value hierarchy and include most U.S. treasury securities and most investment-grade corporate commercial paper.

The types of instruments valued based on unobservable inputs which reflect the reporting entity’s own assumptions or data that market participants would use in valuing an instrument are generally classified within Level 3 of the fair value hierarchy.

Financial instruments measured at fair value on a recurring basis as of December 31, 2014 and December 31, 2013 are classified based on the valuation technique in the table below:


	December 31, 2014 Fair value measurements using						Total
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
Assets:
U.S. Treasury securities	$	0	$	42,981	$	0	$	42,981
Money market funds		11,524		0		0		11,524

Total assets at fair value	$	11,524	$	42,981	$	0	$	54,505

The above table excludes $2.9 million of cash held in banks.


	December 31, 2013 Fair value measurements using						Total
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
Assets:
U.S. Treasury securities	$	0	$	56,976	$	0	$	56,976
Money market funds		10,075		0		0		10,075

Total assets at fair value	$	10,075	$	56,976	$	0	$	67,051

The above table excludes $4.1 million of cash held in banks.

Short-term Investments


	December 31, 2014
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
	(In thousands)
U.S. Treasury securities	$	42,980	$	1	$	0	$	42,981

Total	$	42,980	$	1	$	0	$	42,981


	December 31, 2013
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
	(In thousands)
U.S. Treasury securities	$	56,966	$	10	$	0	$	56,976

Total	$	56,966	$	10	$	0	$	56,976

The contractual maturities of the Company’s available-for-sale securities on December 31, 2014 and December 31, 2013 were all due within one year.