Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

(8) Fair Value Measurements

The carrying amounts of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities approximate fair value because of the short maturity of these items.

Certain assets, including long-lived assets, goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. For the years ended December 31, 2017 and 2016, no impairments were identified of those assets requiring measurement at fair value on a non-recurring basis.

The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis at December 31, 2017 and 2016 by level within the fair value hierarchy. Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	At December 31, 2017
	Quoted		Significant
	Prices in		Other		Significant
	Active		Observable		Unobservable
	Markets		Inputs		Inputs		Total Fair
	(Level 1)		(Level 2)		(Level 3)		Value
	(in thousands)
Assets:
Cash equivalents:
Money market funds	$	35,521		—		—	$	35,521
U.S. treasury securities		—		11,974				11,974
U.S. government and agency securities		—		50,352		—		50,352
Short-term investments:
U.S. treasury securities		—		12,972		—		12,972
U.S. government and agency securities		—		29,936		—		29,936
Total financial assets	$	35,521	$	105,234	$	—	$	140,755
Liabilities:
Contingent consideration		—		—	$	682	$	682
Total financial liabilities	$	—	$	—	$	682	$	682
	As of  December 31, 2016
	Quoted		Significant
	Prices in		Other		Significant
	Active		Observable		Unobservable
	Markets		Inputs		Inputs		Total Fair
	(Level 1)		(Level 2)		(Level 3)		Value
	(in thousands)
Assets:
Cash equivalents
Money market funds	$	57,032		—		—	$	57,032
Total financial assets	$	57,032	$	—	$	—	$	57,032
Liabilities:
Contingent consideration		—		—	$	388	$	388
Total financial liabilities	$	—	$	—	$	388	$	388

The Company’s assets that are measured by management at fair value on a recurring basis are generally classified within Level 1 or Level 2 of the fair value hierarchy.  The Company did not have any transfers into and out of Level 1 or Level 2 during the year ended December 31, 2017 and 2016 respectively. The Company did not have any short-term investments as of December 31, 2016.

The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value and such instruments are classified as Level 1 and are included in cash and cash equivalents on the consolidated balance sheets. At December 31, 2017 the Company’s Level 2 securities were priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities.

The following table summarizes the changes in Level 3 financial instruments (in thousands).

	Amount
Fair value at December 31, 2015	$	—
Contingent consideration from Crisis Commander acquisition		388
Fair value at December 31, 2016	$	388
Foreign currency translation		44
Contingent consideration from IDV acquisition		5,020
Change in fair value of contingent consideration obligation from IDV acquisition		(1,020	)
Payments made during the year from IDV acquisition		(3,750	)
Fair value at December 31, 2017	$	682

At December 31, 2016, the Company recorded the contingent consideration from the Crisis Commander acquisition under long-term other liabilities.

The Company estimates the fair value of the convertible senior notes based on their last actively traded prices (Level 1) or market-observable inputs (Level 2). As of December 31, 2017 the fair value of the convertible senior notes was determined to be $126.9 million and the carrying value of the notes were $89.5 million.