Investments and Fair Value Measurement

6 Months Ended

Jun. 30, 2012

Investments and Fair Value Measurement [Abstract]

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. Marketable securities which have maturities beyond one year as of the end of the reporting period are classified as non-current. The Company’s investments are subject to a periodic impairment review and 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, 2012
Cash equivalents:
Money market funds	$	15,021	$	—	$	—		$	15,021
Total		15,021		—		—			15,021
Marketable securities:
U.S. government sponsored entity debt securities		47,865		—		(5	)		47,860
Corporate debt securities		14,386		—		(2	)		14,384
Total		62,251		—		(7	)		62,244
Total cash equivalents and marketable securities	$	77,272	$	—	$	(7	)	$	77,265
December 31, 2011
Cash equivalents:
Money market funds	$	15,258	$	—	$	—		$	15,258
Total		15,258		—		—			15,258
Marketable securities:
U.S. government sponsored entity debt securities		27,020		—		(7	)		27,013
U.S. treasury debt securities		751		1		—			752
Corporate debt securities		39,583		18		—			39,601
Total		67,354		19		(7	)		67,366
Total cash equivalents and marketable securities	$	82,612	$	19	$	(7	)	$	82,624

As of June 30, 2012, 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, 2012; therefore, the Company had no other-than-temporary impairments of available-for-sale securities as of June 30, 2012.

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, 2012 Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	15,021	$	15,021	$	—	$	—
Total		15,021		15,021		—		—
Marketable securities:
U.S. government sponsored entity debt securities		47,860		—		47,860		—
Corporate debt securities		14,384		—		14,384		—
Total		62,244		—		62,244		—
Total cash equivalents and marketable securities	$	77,265	$	15,021	$	62,244	$	—

	December 31, 2011 Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	15,258	$	15,258	$	—	$	—
Total		15,258		15,258		—		—
Marketable securities:
U.S. government sponsored entity debt securities		27,013		—		27,013		—
U.S. treasury debt securities		752		—		752		—
Corporate debt securities		39,601		—		39,601		—
Total		67,366		—		67,366		—
Total cash equivalents and marketable securities	$	82,624	$	15,258	$	67,366	$	—