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FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

4. FAIR VALUE MEASUREMENTS

The tables below present information about the Company’s financial assets and liabilities that are measured and carried at fair value and indicate the level within the fair value hierarchy of the valuation techniques it utilizes to determine such fair value:

 

     Fair Value Measurement as of December 31, 2014  
         Total              Level 1              Level 2              Level 3      
     (in thousands)  

Money market funds

    $ 47,740       $ 47,740       $ —         $ —     

Commercial paper

      2,997         —           2,997         —     

Government and government agency bonds

      75,250         —           75,250         —     

Corporate bonds

      58,546         —           58,546         —     

Certificates of deposit

      647         647         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

    $ 185,180       $ 48,387       $ 136,793       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     Fair Value Measurement as of December 31, 2013  
         Total              Level 1              Level 2              Level 3      
     (in thousands)  

Money market funds

    $ 185,000       $ 185,000       $ —         $ —     

Certificates of deposit

      7,897         7,897         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

    $ 192,897       $ 192,897       $ —         $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     Fair Value Measurement as of December 31, 2014  
         Total              Level 1              Level 2              Level 3      
     (in thousands)  

Warrants

    $ —         $ —         $ —         $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

    $ —         $ —         $ —         $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     Fair Value Measurement as of December 31, 2013  
         Total              Level 1              Level 2              Level 3      
     (in thousands)  

Warrants

    $ 9,006       $ —         $ —         $ 9,006   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

    $ 9,006       $ —         $ —         $ 9,006   
  

 

 

     

 

 

     

 

 

     

 

 

  

The Company’s assets with fair value categorized as Level 1 within the fair value hierarchy include money market funds and certificates of deposit. Money market funds are publicly traded mutual funds and are presented as cash equivalents on the consolidated balance sheets as of December 31, 2014.

The Company’s assets with fair value categorized as Level 2 within the fair value hierarchy consist of commercial paper, government and government agency bonds and corporate bonds. These assets have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, through income-based approaches utilizing market observable data.

The Company’s liabilities with fair value categorized as Level 3 within the fair value hierarchy consist of warrants issued in January and August 2009. The fair value of these liabilities is determined using the Black-Scholes-Merton option-pricing model, which requires the use of significant judgment and estimates for the inputs in the model. As of December 31, 2014, all outstanding warrants issued in January and August 2009 had been exercised or forfeited.

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. The carrying amounts for long-term debt and notes payable approximate fair value based on market activity for other debt instruments with similar characteristics and comparable risk.