Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy:

	March 31, 2020
	Total		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Money market funds	$	41,473	$	41,473	$	–	$	–
Commercial paper		4,977		–		4,977		–
Corporate debt securities		49,767		–		49,767		–
Asset-backed securities		22,132		–		22,132		–
U.S. government agency securities		9,141		–		9,141		–
Total	$	127,490	$	41,473	$	86,017	$	–

	December 31, 2019
	Total		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Money market funds	$	3,151	$	3,151	$	–	$	–
Commercial paper		4,952		–		4,952		–
Corporate debt securities		69,499		–		69,499		–
Asset-backed securities		27,055		–		27,055		–
U.S. government agency securities		27,007		–		27,007		–
Total	$	131,664	$	3,151	$	128,513	$	–

Where applicable, the Company uses quoted market prices in active markets for identical assets to determine fair value. This pricing methodology applies to Level 1 investments, which are composed of money market funds.

If quoted prices in active markets for identical assets are not available, then the Company uses quoted prices for similar assets or inputs other than quoted prices that are observable, either directly or indirectly. These investments are included in Level 2 and consist of commercial paper, corporate debt securities, asset-backed securities and U.S. government agency securities. These assets are valued using market prices when available, adjusting for accretion of the purchase price to face value at maturity.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.

In certain cases where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3 within the valuation hierarchy.