5. FAIR VALUE MEASUREMENTS

The tables below present information about the Company’s financial assets 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, 2017
	Total		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash equivalents	$	352,370	$	352,370	$	—	$	—
Commercial paper		133,368		—		133,368		—
Government and government agency bonds		294,717		284,745		9,972		—
Corporate bonds		127,956		127,956		—		—
Certificates of deposit		648		648		—		—
Total assets	$	909,059	$	765,719	$	143,340	$	—


	Fair Value Measurement as of December 31, 2016
	Total		Level 1		Level 2		Level 3
	(in thousands)
Cash equivalents	$	1,147	$	1,147	$	—	$	—
Commercial paper		69,304		—		69,304		—
Government and government agency bonds		105,287		—		105,287		—
Corporate bonds		20,834		—		20,834		—
Certificates of deposit		11,343		11,343		—		—
Total assets	$	207,915	$	12,490	$	195,425	$	—

The Company’s assets with fair value categorized as Level 1 within the fair value hierarchy include money market funds, government and government agency bonds, corporate bonds and certificates of deposit. Certain of the government and government agency bonds and corporate bonds are publicly traded fixed income securities and are presented as cash equivalents on the consolidated balance sheets as of December 31, 2017

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