Fair Value Measurements
 12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements

4. Fair Value Measurements

The Company’s financial instruments consist principally of cash and cash equivalents, prepaid expenses, foreign currency exchange contracts, accounts payable and accrued liabilities. The remaining financial instruments are reported on the Company’s Condensed Consolidated Balance Sheets at amounts that approximate current fair value.  The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):

 

 

 

Fair Value Measurements at December 31, 2016

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

85,911

 

 

$

85,911

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2015

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

132,647

 

 

$

132,647

 

 

$

—

 

 

$

—

 

 

The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the years ended December 31, 2016 or 2015.

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial instruments as follows:

 

 

 

Convertible

 

Convertible

 

 

preferred stock

 

preferred stock

 

 

call option

 

warrant

 

 

liability

 

liability

Balance at January 1, 2014

 

$                           21

 

$                         474

Change in fair value recorded in other income (expense), net

 

9,560

 

2,278

Conversion of preferred stock into common stock and reclassification to permanent equity

 

(9,581)

 

(2,752)

Balance at December 31, 2014

 

$                          —

 

$                          —