Fair Value Measurements

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 3. Fair Value Measurements

Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

• Level 1 — Quoted prices in active markets for identical assets or liabilities.

• Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities.

• Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require.

We applied the following methods and assumptions in estimating our fair value measurements:

Cash Equivalents — Cash equivalents are comprised of highly liquid investments, including money market funds and certificates of deposit, with original maturities of less than three months at the acquisition date. The fair value measurement of these assets is based on quoted market prices in active markets and these assets are recorded at fair value.

Investments — Our investments consist of fixed income securities, which include U.S. government agency securities and corporate notes and bonds. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Long-term Debt — The fair values of our long-term debt approximates carrying value based on the borrowing rates currently available to us for loans with similar terms using Level 2 inputs.

The following tables present the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the date presented (in thousands):

	March 31, 2018
	LEVEL 1		LEVEL 2
Cash equivalents:
Money market funds	$	13,772	$	—
Commercial paper		—		2,997
Treasury bill		—		2,500
Short-term investments:
U.S. government agency securities		—		9,937
Corporate notes and bonds		—		7,540
Commercial paper		—		3,983
Treasury bill		—		8,413
Total	$	13,772	$	35,370

	December 31, 2017
	LEVEL 1		LEVEL 2
Cash equivalents:
Money market funds	$	10,393	$	—
Commercial paper		—		1,000
Short-term investments:
U.S. government agency securities		—		13,970
Corporate notes and bonds		—		7,503
Commercial paper		—		8,972
Treasury bills		—		8,386
Total	$	10,393	$	39,831

We did not have any Level 3 assets as of March 31, 2018 or December 31, 2017. There were no liabilities measured at fair value as of March 31, 2018 or December 31, 2017.