Note 3 — Marketable Investments

The following table summarizes the Company’s marketable investments (in thousands):

	As of June 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(8	)	$	1,792
Corporate obligations		56,424		1		(88	)		56,337
Total	$	58,224	$	1	$	(96	)	$	58,129

	As of December 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Market
	Cost		Gains		Losses			Value
Federal agency obligations	$	1,800	$	—	$	(7	)	$	1,793
Corporate obligations		59,481		2		(129	)		59,354
Total	$	61,281	$	2	$	(136	)	$	61,147

Realized gains and losses on investments are included in earnings and are determined using the specific identification method. Realized gains or losses on the sale of the Company’s marketable investments were not material in the three and six months ended June 30, 2017 and 2016.

The following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of June 30, 2017 (in thousands).

	FY 2017		FY 2018		FY 2019		Total
Federal agency obligations	$	—	$	1,792	$	—	$	1,792
Corporate obligations		8,504		29,913		17,920		56,337
Total	$	8,504	$	31,705	$	17,920	$	58,129

The following table shows the gross unrealized losses and market value of the Company’s available-for-sale securities with unrealized losses that are not deemed to be other-than-temporary, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	As of June 30, 2017
	Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
Federal agency obligations	$	1,792	$	8	$	—	$	—
Corporate obligations		43,897		69		9,219		19
Total	$	45,689	$	77	$	9,219	$	19

	As of December 31, 2016
	Less Than 12 Months				12 Months or Greater
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
Federal agency obligations	$	1,793	$	7	$	—	$	—
Corporate obligations		53,647		129		—		—
Total	$	55,440	$	136	$	—	$	—

Fair Value

The Company measures certain financial assets at fair value on a recurring basis, including cash equivalents and available-for-sale securities. The fair values of these financial assets have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements.

Level 1 — Fair value based on quoted prices in active markets for identical assets or liabilities.

Level 2 — Fair value based on inputs other than Level 1 inputs that are observable, either directly or indirectly, 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.

Level 3 — Fair value based on unobservable inputs that are supported by little or no market activity and such inputs are significant to the fair value of the assets or liabilities.

The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis (in thousands):

	As of June 30, 2017
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	612	$	—	$	—	$	612
Federal agency obligations		—		1,792		—		1,792
Corporate obligations		—		56,337		—		56,337
Total	$	612	$	58,129	$	—	$	58,741

	As of December 31, 2016
	Level 1		Level 2		Level 3		Total
Money market funds (1)	$	2,522	$	—	$	—	$	2,522
Federal agency obligations		—		1,793		—		1,793
Corporate obligations		—		59,354		—		59,354
Total	$	2,522	$	61,147	$	—	$	63,669

(1)	Included in cash and cash equivalents.

Level 2 assets consist of the Company’s entire portfolio of marketable investments. Level 2 assets have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, typically utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation methods, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events.