Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]

The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis at June 30, 2018 (in thousands):



	Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	176,304	$	—	$	176,304
Commercial paper	—		173,604		173,604
Corporate notes and bonds	—		6,598		6,598
Short-term investments:
Commercial paper	—		253,518		253,518
Corporate notes and bonds	—		678,619		678,619
Certificates of deposit	—		29,844		29,844
U.S. government agency securities	—		82,831		82,831
Long-term investments:
Corporate notes and bonds	—		272,060		272,060
Certificates of deposit	—		2,900		2,900
U.S. government agency securities	—		29,669		29,669
Total	$	176,304	$	1,529,643	$	1,705,947

The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis at December 31, 2017 (in thousands):



	Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	282,507	$	—	$	282,507
Commercial paper	—		100,456		100,456
Corporate notes and bonds	—		50,437		50,437
Short-term investments:
Commercial paper	—		258,344		258,344
Corporate notes and bonds	—		688,316		688,316
Certificates of deposit	—		17,950		17,950
U.S. government agency securities	—		67,476		67,476
Marketable equity securities	20,717		—		20,717
Long-term investments:
Corporate notes and bonds	—		314,928		314,928
Certificates of deposit	—		15,134		15,134
U.S. government agency securities	—		61,380		61,380
Total	$	303,224	$	1,574,421	$	1,877,645

We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs), such as yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures.

See Note 3 for the fair value measurement of our debt investments in privately-held companies, Note 8 for the fair value measurement of our derivative contracts and Note 11 for the fair value measurement of our convertible senior notes.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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