LOGM 2017 Annual Report

periods within those fiscal years. The Company is currently assessing the potential impact of the adoption of ASU 2017-04 on its consolidated financial statements. On November 17, 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB’s EITF) (“ASU 2016-18”). ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. The guidance is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those fiscal years. The Company will implement the ASU 2016-18 statement of cash flows presentation and disclosure requirements in the first quarter of 2018. 3. Fair Value of Financial Instruments The carrying value of the Company’s financial instruments, including cash equivalents, restricted cash, accounts receivable and accounts payable, approximate their fair values due to their short maturities. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows: • Level 1: Unadjusted quoted prices for identical assets or liabilities in active markets accessible by the Company at the measurement date. • Level 2: Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table summarizes the basis used to measure certain of the Company’s financial assets and liabilities that are carried at fair value (in thousands): Fair Value Measurements at December 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents — money market funds . . . . . . . . . . . $ 11,599 $ — $ — $ 11,599 Short-term marketable securities: U.S. government agency securities . . . . . . . . . . . . . . 34,961 8,001 — 42,962 Corporate bond securities . . . . . . . . . . . . . . . . . . . . . . — 12,748 — 12,748 Fair Value Measurements at December 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents — money market funds . . . . . . . . . . . $148,120 $10,000 $ — $158,120 Forward contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 18,669 — 18,669 Bank deposits, corporate bonds, certain U.S. government agency securities and forward contracts are classified within the second level of the fair value hierarchy as the fair value of those assets are determined based upon quoted prices for similar assets. 4. Acquisitions In 2017, the Company completed its Merger with Citrix Systems, Inc.’s wholly-owned subsidiary on January 31, 2017 and the acquisition of Nanorep Technologies Ltd, or Nanorep, on July 31, 2017; in 2016, the Company completed the acquisition of AuthAir, Inc., or AuthAir, on October 31, 2016; and in 2015, the Company com- 67