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Fair Value Measurements
3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value Measurements

3.Fair Value Measurements

Financial assets and liabilities are recorded at fair value. The carrying amount of certain financial instruments, including cash and cash equivalents, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities. Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:

Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3—Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

The following tables set forth the fair value of the Company’s financial assets remeasured on a recurring basis based on the three-tier fair value hierarchy (in thousands):

 

 

March 31, 2017

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

114,551

 

 

$

 

 

$

 

 

$

114,551

 

 

Corporate bonds

 

 

 

 

232,429

 

 

 

 

 

 

232,429

 

 

Commercial paper

 

 

 

 

13,958

 

 

 

 

 

 

13,958

 

 

Asset-backed securities

 

 

 

 

15,234

 

 

 

 

 

 

15,234

 

 

U.S. Government Treasury and agency securities

 

 

 

 

121,806

 

 

 

 

 

 

121,806

 

 

Total financial assets

$

114,551

 

 

$

383,427

 

 

$

 

 

$

497,978

 

 

 

 

December 31, 2016

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

$

123,536

 

 

$

 

 

$

 

 

$

123,536

 

 

Corporate bonds

 

 

 

 

207,726

 

 

 

 

 

 

207,726

 

 

Commercial paper

 

 

 

 

11,970

 

 

 

 

 

 

11,970

 

 

Asset-backed securities

 

 

 

 

27,713

 

 

 

 

 

 

27,713

 

 

U.S. Government Treasury and agency securities

 

 

 

 

111,931

 

 

 

 

 

 

111,931

 

 

Total financial assets

$

123,536

 

 

$

359,340

 

 

$

 

 

$

482,876