Investments and Fair Value Measurement

3 Months Ended

Mar. 31, 2013

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. Available-for-sale 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 investments (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair  Value
March 31, 2013
Cash equivalents:
Money market funds	$	10,397	$	—	$	—	$	10,397
Total		10,397		—		—		10,397
Available-for-sale securities:
U.S. government sponsored entity debt securities		57,858		25		—		57,883
Corporate debt securities		0		—		—		0
Total		57,858		25		—		57,883
Total cash equivalents and available-for-sale securities	$	68,255	$	25	$	—	$	68,280
December 31, 2012
Cash equivalents:
U.S. government sponsored entity debt securities	$	2,997	$	—	$	—	$	2,997
Money market funds		15,839		—		—		15,839
Total		18,836		—		—		18,836
Available-for-sale securities:
U.S. government sponsored entity debt securities		54,426		26		—		54,452
Total		54,426		26		—		54,452
Total cash equivalents and available-for-sale securities	$	73,262	$	26	$	—	$	73,288

As of March 31, 2013, none of the available-for-sale securities held by the Company had material unrealized losses and there were no realized losses for the three months ended March 31, 2013. The Company had no other-than-temporary impairments of available-for-sale securities for the three months ended March 31, 2013 or the twelve months ended December 31, 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 Company generally classifies its available-for-sale debt instruments as Level 2. Instruments can be classified as Level 2 when observable market prices for identical securities that are traded in less active markets are used. When observable market prices for identical securities are not available, such instruments are priced using benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing as well as model processes. These models are proprietary to the pricing providers or brokers. These valuation models incorporate a number of inputs, including, listed in approximate order of priority: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. For certain security types, additional inputs may be used, or some of the standard inputs may not be applicable. Evaluators may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs listed are available for use in the evaluation process for each security evaluation on any given day.

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

	March 31, 2013 Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	10,397	$	10,397	$	—	$	—
Total		10,397		10,397		—		—
Available-for-sale securities:
U.S. government sponsored entity debt securities		57,883		—		57,883		—
Total		57,883		—		57,883		—
Total cash equivalents and available-for-sale securities	$	68,280	$	10,397	$	57,883	$	—

	December 31, 2012 Fair  Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
U.S. government sponsored entity debt securities	$	2,997	$	—	$	2,997	$	—
Money market funds		15,839		15,839		—		—
Total		18,836		15,839		2,997		—
Available-for-sale securities:
U.S. government sponsored entity debt securities		54,452		—		54,452		—
Total		54,452		—		54,452		—
Total cash equivalents and available-for-sale securities	$	73,288	$	15,839	$	57,449	$	—