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Fair Value Measurements
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements

The Company determines the fair values of its financial instruments based on 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. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:

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 following tables summarize assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017:
 
As of December 31, 2018
 
Total
 
Quoted market
prices in active
markets
(Level 1)
 
Significant
other
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
 
(In thousands)
Assets:
 
 
 
 
 
 
 
Cash equivalents: money-market funds
$
22,573

 
$
22,573

 
$

 
$

Available-for-sale debt investments: U.S. treasuries (1)
70,314

 

 
70,314

 

Available-for-sale investments: certificates of deposit (1)
149

 

 
149

 

Trading securities: mutual funds (1)
2,854

 
2,854

 

 

Foreign currency forward contracts (2)
786

 

 
786

 

Total assets measured at fair value
$
96,676

 
$
25,427

 
$
71,249

 
$

Liabilities:
 
 
 
 
 
 
 
Foreign currency forward contracts (3)
$
368

 
$

 
$
368

 
$

Contingent consideration (4)
5,953

 

 

 
5,953

Total liabilities measured at fair value
$
6,321

 
$

 
$
368

 
$
5,953


_________________________
(1)
Included in Short-term investments on the Company's consolidated balance sheets.
(2)  
Included in Prepaid expenses and other current assets on the Company's consolidated balance sheets.
 (3)  
Included in Other accrued liabilities on the Company's consolidated balance sheets.
(4) 
Included in Other non-current accrued liabilities on the Company’s consolidated balance sheets. The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with the acquisition of Meural that is contingent upon the achievement of certain technical and service revenue milestones. Refer to Note 4, Business Acquisition, regarding detailed disclosures on the determination of fair value of the contingent consideration.

 
As of December 31, 2017
 
Total
 
Quoted market
prices in active
markets
(Level 1)
 
Significant
other
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
 
(In thousands)
Assets:
 
 
 
 
 
 
 
Cash equivalents: money-market funds
$
12,606

 
$
12,606

 
$

 
$

Available-for-sale debt investments: U.S. treasuries (1)
124,670

 

 
124,670

 

Available-for-sale investments: certificates of deposit (1)
162

 

 
162

 

Trading securities: mutual funds (1)
2,094

 
2,094

 

 

Foreign currency forward contracts (2)
1,799

 

 
1,799

 

Total assets measured at fair value
$
141,331

 
$
14,700

 
$
126,631

 
$

Liabilities:
 
 
 
 
 
 
 
Foreign currency forward contracts (3)
$
8,192

 
$

 
$
8,192

 
$

Total liabilities measured at fair value
$
8,192

 
$

 
$
8,192

 
$


_________________________
(1)
Included in Short-term investments on the Company's consolidated balance sheets.
(2)  
Included in Prepaid expenses and other current assets on the Company's consolidated balance sheets.
 (3)  
Included in Other accrued liabilities on the Company's consolidated balance sheets.

The Company's investments in cash equivalents and available-for-sale securities are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company enters into foreign currency forward contracts with only those counterparties that have long-term credit ratings of A-/A3 or higher. The Company's foreign currency forward contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that take into account the contract terms as well as currency rates and counterparty credit rates. The Company verifies the reasonableness of these pricing models using observable market data for related inputs into such models. Additionally, the Company includes an adjustment for non-performance risk in the recognized measure of fair value of derivative instruments. As of December 31, 2018 and 2017, the adjustment for non-performance risk did not have a material impact on the fair value of the Company's foreign currency forward contracts. The carrying value of non-financial assets and liabilities measured at fair value in the financial statements on a recurring basis, including accounts receivable and accounts payable, approximate fair value due to their short maturities.