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Fair Value Measurement of Assets and Liabilities | 12 Months Ended
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Dec. 31, 2016
Fair Value Disclosures [Abstract] |
Fair Value Measurement of Assets and Liabilities | Fair Value Measurement of Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). A fair value measurement reflects the assumptions market participants would use in pricing an asset or liability based on the best available information. These assumptions include the risk inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. The Company classifies inputs to measure fair value using a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) and is defined as follows:
Level 1: | Pricing inputs are based on quoted market prices for identical assets or liabilities in active markets (e.g., NYSE or NASDAQ). Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2: | Pricing inputs include benchmark yields, trade data, reported trades and broker dealer quotes, two-sided markets and industry and economic events, yield to maturity, Municipal Securities Rule Making Board reported trades and vendor trading platform data. Level 2 includes those financial instruments that are valued using various pricing services and broker pricing information including Electronic Communication Networks and broker feeds.
Level 3: | Pricing inputs include significant inputs that are generally less observable from objective sources, including the Company’s own assumptions.
The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. There have been no transfers of assets or liabilities between fair value measurement classifications during the year ended December 31, 2016. The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis in accordance with the authoritative guidance for fair value measurements as of December 31, 2016 (in thousands):
|  | Balance as of December 31, 2016 |  | Level 1
Assets: |  |  |  |
Cash equivalents |  |  |  |
Money market funds |  | $ | 35 |  |  | $ | 35 |
Total cash equivalents |  | 35 |  |  | 35 |
The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis in accordance with the authoritative guidance for fair value measurements as of December 31, 2015 (in thousands):
|  | Balance as of December 31, 2015 |  | Level 1
Assets: |  |  |  |
Cash equivalents |  |  |  |
Money market funds |  | $ | 35 |  |  | $ | 35 |
Total cash equivalents |  | 35 |  |  | 35 |
Short-term investments |  | 1,267 |  |  | 1,267 |
Total assets at fair value |  | $ | 1,302 |  |  | $ | 1,302 |
As of December 31, 2016 and 2015, the Company had no outstanding foreign currency exchange forward contracts. During the years ended December 31, 2016 and 2015, the Company recorded net foreign currency transaction losses and gains, respectively, of approximately $3.6 million and $1.1 million, net of the non-cash change in acquisition-related escrow, respectively, primarily related to outstanding intercompany loans that Ctrack has with certain of its subsidiaries, which are remeasured at each reporting period and payable upon demand. During the year ended December 31, 2014 the Company recorded net foreign currency transaction losses of approximately $0.2 million, primarily related to foreign currency losses on foreign currency denominated bank accounts. All recorded gains and losses on foreign currency transactions are recorded in other income (expense), net, in the consolidated statements of operations. Other Financial Instruments On June 10, 2015, the Company issued $120.0 million of 5.50% convertible senior notes due 2020 (the “Novatel Wireless Notes”) (see Note 6). The Company carries the Novatel Wireless Notes at amortized cost. The debt and equity components of the Novatel Wireless Notes were measured using Level 3 inputs and are not measured on a recurring basis. The fair value of the liability component, which approximates the carrying value, of the Novatel Wireless Notes was $90.9 million and $82.5 million as of December 31, 2016 and 2015, respectively. On January 9, 2017, $119.8 million of the Novatel Wireless Notes were exchanged for newly issued 5.50% convertible senior notes due 2022 (the “Inseego Notes”) (see Note 6).

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- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258 + Details
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