Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Assets and liabilities measured at fair value at each balance sheet date are as follows (in thousands):


	December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	42,225	$	—	$	—	$	42,225
U.S. government treasuries	1,499		—		—		1,499
Commercial paper	—		9,979		—		9,979
Short-term marketable securities:
U.S. government treasuries	219,754		—		—		219,754
U.S. government agency securities	—		73,151		—		73,151
Corporate debt securities	—		71,675		—		71,675
Commercial paper	—		22,594		—		22,594
Long-term marketable securities:
U.S. government treasuries	117,131		—		—		117,131
U.S. government agency securities	—		1,977		—		1,977
Corporate debt securities	—		28,773		—		28,773
Foreign currency derivative contracts	—		14		—		14
Total	$	380,609	$	208,163	$	—	$	588,772
Liabilities:
Foreign currency derivative contracts	$	—	$	182	$	—	$	182
Total	$	—	$	182	$	—	$	182


	December 31, 2017
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents
Money market funds	$	212,868	$	—	$	—	$	212,868
Short-term marketable securities:
U.S. government treasuries	42,587		—		—		42,587
U.S. government agency securities	—		106,139		—		106,139
Corporate debt securities	—		39,125		—		39,125
Long-term marketable securities:
U.S. government treasuries	39,848		—		—		39,848
U.S. government agency securities	—		19,911		—		19,911
Corporate debt securities	—		991		—		991
Total	$	295,303	$	166,166	$	—	$	461,469

The carrying amounts of accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their short-term maturities.

The Company’s Level 2 securities are valued using third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly.

There were no transfers of assets or liabilities between the fair value measurement levels during the years ended December 31, 2018 or 2017.

- 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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