Quarterly report pursuant to Section 13 or 15(d)

Fair Value

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Fair Value
6 Months Ended
Jun. 30, 2015
Fair Value Disclosures [Abstract]  
Fair Value
Fair Value
 
We record cash equivalents and short-term 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.
 
The fair value of these financial assets and liabilities was determined using the following inputs at December 31, 2014 and June 30, 2015:
 
 
As of December 31, 2014
 
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
$
89,113

 
$

 
$
89,113

Commercial paper

 
54,792

 
54,792

Corporate debt securities

 
234,697

 
234,697

U.S. government and government agency debt securities

 
7,742

 
7,742

Total assets measured at fair value
$
89,113

 
$
297,231

 
$
386,344

 
As of June 30, 2015
 
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
$
94,948

 
$

 
$
94,948

Commercial paper

 
50,331

 
50,331

Corporate debt securities

 
214,673

 
214,673

U.S. government and government agency debt securities

 
2,502

 
2,502

Total assets measured at fair value
$
94,948

 
$
267,506

 
$
362,454


 
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 short-term 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. As of December 31, 2014 and June 30, 2015, we held no Level 3 assets or liabilities.