Investments And Fair Value Measurement

6 Months Ended

Jun. 30, 2011

Investments And Fair Value Measurement

Investments And Fair Value Measurement

NOTE 2 - INVESTMENTS AND FAIR VALUE MEASUREMENT

Investments

Sangamo classifies its marketable securities as available-for-sale and records its investments at fair value. Available-for-sale securities are carried at estimated fair value based on quoted market prices, with the unrealized holding gains and losses included in accumulated other comprehensive income.

The Company's investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. The Company considers various factors in determining whether to recognize an impairment charge, including the length of time and extent to which the fair value has been less than the Company's cost basis, the financial condition and near-term prospects of the investee, and the Company's intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in the market value.

The table below summarizes the Company's available-for-sale securities (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair  Value
June 30, 2011
Cash equivalents:
Money market funds	$	8,159	$	—	$	—		$	8,159
Total		8,159		—		—			8,159
Marketable securities:
U.S. government sponsored entity debt securities		24,474		3		—			24,477
U.S. treasury debt securities		7,617		5		—			7,622
Corporate debt securities		50,958		9		—			50,967
Total		83,049		17		—			83,066
Total cash equivalents and marketable securities	$	91,208	$	17	$	—		$	91,225
December 31, 2010
Cash equivalents:
Money market funds	$	9,390	$	—	$	—		$	9,390
Total		9,390		—		—			9,390
Marketable securities:
U.S. government sponsored entity debt securities		42,141		—		(6	)		42,135
U.S. treasury debt securities		4,806		1		—			4,807
Corporate debt securities		2,560		—		(1	)		2,559
Total		49,507		1		(7	)		49,501
Total cash equivalents and marketable securities	$	58,897	$	1	$	(7	)	$	58,891

As of June 30, 2011, none of the available-for-sale securities held by the Company had material unrealized losses and there were no realized losses for the three and six months ended June 30, 2011; therefore, the Company had no other-than-temporary impairments of available-for-sale securities as of June 30, 2011.

Fair Value Measurement

The Company measures certain financial assets at fair value on a recurring basis, including cash equivalents and available for sale securities. The fair value of these assets was determined based on a three-tier hierarchy under the authoritative guidance for fair value measurements and disclosures that prioritizes the inputs used in measuring fair value as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The fair value measurements of our cash equivalents and available-for-sale marketable securities are identified at the following levels within the fair value hierarchy (in thousands):

	June 30, 2011 Fair  Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	8,159	$	8,159	$	—	$	—
Total		8,159		8,159		—		—
Marketable securities:
U.S. government sponsored entity debt securities		24,477		—		24,477		—
U.S. treasury debt securities		7,622		—		7,622		—
Corporate debt securities		50,967		—		50,967		—
Total		83,066		—		83,066		—
Total cash equivalents and marketable securities	$	91,225	$	8,159	$	83,066	$	—
	December 31, 2010 Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	9,390	$	9,390	$	—	$	—
Total		9,390		9,390		—		—
Marketable securities:
U.S. government sponsored entity debt securities		42,135		—		42,135		—
U.S. treasury debt securities		4,807		—		4,807		—
Corporate debt securities		2,559		—		2,559		—
Total		49,501		—		49,501		—
Total cash equivalents and marketable securities	$	58,891	$	9,390	$	49,501	$	—