Fair Value Measurements

Fair Value Measurements

The following table presents information about our assets measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands):



	September 30, 2017								December 31, 2016
	Fair Value Measurements Using Input Types								Fair Value Measurements Using Input Types
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

Assets:
Money market mutual funds	$	17,755	$	—	$	—	$	17,755	$	17,637	$	—	$	—	$	17,637
Certificates of deposit	17,282		—		—		17,282		17,377		—		—		17,377
Total assets	$	35,037	$	—	$	—	$	35,037	$	35,014	$	—	$	—	$	35,014

Liabilities:
Restructuring liability	$	—	$	—	$	3,527	$	3,527	$	—	$	—	$	—	$	—
Total liabilities	$	—	$	—	$	3,527	$	3,527	$	—	$	—	$	—	$	—

The following table sets forth a summary of changes in fair value of our restructuring liability, which represents the recurring measurement that is classified within Level 3 of the fair value hierarchy wherein fair value is estimated using significant unobservable inputs (in thousands):



	September 30, 2017
	Restructuring Liability
Beginning balance - December 31, 2016	$	—
Restructuring charge	3,620
Rent payments	(93		)
Ending balance - September 30, 2017	$	3,527

During the quarter ended September 30, 2017, we ceased use of 25,812 square feet of the Company’s headquarters facility located in Waltham, Massachusetts. We recorded a restructuring accrual of $3.5 million as of the period ended September 30, 2017. In order to estimate the lease obligation charges included in the restructuring accrual, we made certain assumptions, including the time period it will take to obtain a subtenant, construction costs and certain sublease rates. These estimates may vary from the sublease agreements ultimately executed, if at all, resulting in an adjustment to the charges. Refer to Note 11 for further discussion on the restructuring accrual in the third quarter of fiscal 2017.

Non-Recurring Fair Value Measurements

We re-measure the fair value of certain assets and liabilities upon the occurrence of certain events. Such assets are comprised of long-lived assets, including property and equipment, intangible assets and goodwill. In the three and nine months ended September 30, 2017 and September 24, 2016, no significant remeasurements were necessary. Other financial instruments not measured or recorded at fair value in the accompanying condensed consolidated balance sheets principally consist of accounts receivable, accounts payable, and accrued liabilities. The estimated fair values of these instruments approximate their carrying values due to their short-term nature.

- 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.

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