XML 21 R10.htm IDEA: XBRL DOCUMENT v3.5.0.2
Fair Value Measurements
 9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements

The following is a summary of available-for-sale marketable securities held as of September 30, 2016 and December 31, 2015 (in thousands):

 
 
 
Gross Unrealized
 
 
 
Classification on Balance Sheet
 
Amortized Cost
 
Gains
 
Losses
 
Aggregate
Fair Value
 
Short-Term
Marketable
Securities
 
Long-Term
Marketable
Securities
As of September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Commercial paper
$
37,307

 
$
26

 
$
(59
)
 
$
37,274

 
$
37,274

 
$
—

Corporate bonds
970,750

 
791

 
(805
)
 
970,736

 
426,218

 
544,518

U.S. government agency obligations
285,422

 
162

 
(76
)
 
285,508

 
65,552

 
219,956

 
$
1,293,479

 
$
979

 
$
(940
)
 
$
1,293,518

 
$
529,044

 
$
764,474

 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Commercial paper
$
2,491

 
$
—

 
$
(4
)
 
$
2,487

 
$
2,487

 
$
—

Corporate bonds
995,100

 
73

 
(3,365
)
 
991,808

 
432,585

 
559,223

U.S. government agency obligations
239,587

 
41

 
(575
)
 
239,053

 
25,016

 
214,037

 
$
1,237,178

 
$
114

 
$
(3,944
)
 
$
1,233,348

 
$
460,088

 
$
773,260



The Company offers certain eligible employees the ability to participate in a non-qualified deferred compensation plan. The mutual funds held by the Company that are associated with this plan are classified as restricted trading securities. These securities are not included in the available-for-sale securities table above but are included in marketable securities in the consolidated balance sheets.

Unrealized gains and unrealized temporary losses on investments classified as available-for-sale are included within accumulated other comprehensive loss in the consolidated balance sheets. Upon realization, those amounts are reclassified from accumulated other comprehensive loss to interest income in the consolidated statements of income. As of September 30, 2016, the Company held for investment corporate bonds and U.S. government agency obligations with a fair value of $44.3 million and classified as available-for-sale marketable securities that had been in a continuous unrealized loss position for more than 12 months. The unrealized losses are not significant and are attributable to changes in interest rates. The Company does not believe any unrealized losses represent other than temporary impairments based on the evaluation of available evidence.

The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets at September 30, 2016 and December 31, 2015 (in thousands):

 
Total Fair Value
 
Fair Value Measurements at Reporting Date Using
 
 
Level 1    
 
Level 2    
 
Level 3    
As of September 30, 2016
 
 
 
 
 
 
 
Cash Equivalents and Marketable Securities:
 
 
 
 
 
 
 
Money market funds
$
5,205

 
$
5,205

 
$
—

 
$
—

Commercial paper
37,274

 
—

 
37,274

 
—

Corporate bonds
970,736

 
—

 
970,736

 
—

U.S. government agency obligations
285,508

 
—

 
285,508

 
—

Mutual funds
3,589

 
3,589

 
—

 
—

 
$
1,302,312

 
$
8,794

 
$
1,293,518

 
$
—

 
 
 
 
 
 
 
 
As of December 31, 2015
 
 
 
Cash Equivalents and Marketable Securities:
 
 
 
 
 
 
 
Money market funds
$
1,250

 
$
1,250

 
$
—

 
$
—

Commercial paper
2,487

 
—

 
2,487

 
—

Corporate bonds
991,808

 
—

 
991,808

 
—

U.S. government agency obligations
239,053

 
—

 
239,053

 
—

     Mutual funds
1,414

 
1,414

 
—

 
—

 
$
1,236,012


$
2,664


$
1,233,348


$
—



As of September 30, 2016 and December 31, 2015, the Company grouped money market funds and mutual funds using a Level 1 valuation because market prices for such investments are readily available in active markets. As of September 30, 2016 and December 31, 2015, the Company grouped commercial paper, corporate bonds and U.S. government agency obligations using a Level 2 valuation because quoted prices for identical or similar assets are available in markets that are inactive. The Company did not have any transfers of assets between Level 1, Level 2 or Level 3 of the fair value measurement hierarchy during the nine months ended September 30, 2016.

When developing fair value estimates, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. When available, the Company uses quoted market prices to measure fair value. The valuation technique used to measure fair value for the Company's Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market-based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, the Company is required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument.

Contractual maturities of the Company’s available-for-sale marketable securities held as of September 30, 2016 and December 31, 2015 were as follows (in thousands):

 
September 30,
2016
 
December 31,
2015
Due in 1 year or less
$
529,044

 
$
460,088

Due after 1 year through 5 years
764,474

 
773,260

 
$
1,293,518

 
$
1,233,348