Transition report pursuant to Rule 13a-10 or 15d-10

Fair Value

v2.4.0.8
Fair Value
 11 Months Ended
Dec. 31, 2013
Fair Value  
Fair Value

4. Fair Value

        We record cash equivalents and investments at fair value. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are required to be disclosed by level within the following fair value hierarchy:

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

    •
    Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument's anticipated life.

    •
    Level 3—Inputs lack observable market data to corroborate management's estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

        When determining fair value, whenever possible we use observable market data, and rely on unobservable inputs only when observable market data is not available.

 
   As of January 31, 2013  
 
   Fair Value Measurement Using  
 
   Quoted Prices in
Active Markets
for Identical
Instruments
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Total  
 
   (in thousands)
  

Assets:

                    

Money market funds

   $ 32,522   $ —   $ 32,522  

Commercial paper

     —     24,092     24,092  

Corporate debt securities

     —     9,655     9,655  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets measured at fair value

   $ 32,522   $ 33,747   $ 66,269  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               


 

 
   As of December 31, 2013  
 
   Fair Value Measurement Using  
 
   Quoted Prices in
Active Markets
for Identical
Instruments
(Level 1)		   Significant
Other
Observable
Inputs
(Level 2)		   Total  
 
   (in thousands)
  

Assets:

                    

Money market funds

   $ 98,437   $ —   $ 98,437  

Commercial paper

     —     101,773     101,773  

Corporate debt securities

     —     155,021     155,021  

U.S. government and government agency debt securities

     —     5,696     5,696  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets measured at fair value

   $ 98,437   $ 262,490   $ 360,927  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        Our money market funds are classified as Level 1 within the fair value hierarchy because they are valued primarily using quoted market prices. Our other cash equivalents and investments are classified as Level 2 within the fair value hierarchy because they are valued using professional pricing sources for identical or comparable instruments, rather than direct observations of quoted prices in active markets. During the twelve months ended January 31, 2013 and the eleven months ended December 31, 2013, we held no Level 3 assets.