Chegg 2013 Annual Report Download - page 128

Download and view the complete annual report

Please find page 128 of the 2013 Chegg annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

CHEGG, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Financial instruments measured and recorded at fair value on a recurring basis as of December 31, 2013 and
2012 are classified based on the valuation technique level in the tables below (in thousands):
December 31, 2013
Total
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Cash equivalents:
Money market funds .......... $ 42,042 $42,042 $ — $ —
Commercial paper ............ 1,500 — 1,500 —
Short-term investments:
Commercial paper ............ 35,571 — 35,571 —
Certificate of deposit .......... 1,500 — 1,500 —
Corporate securities, long-term ...... 24,388 — 24,388 —
Total assets measured and recorded at
fair value ..................... $105,001 $42,042 $62,959 $ —
Liabilities:
Put option liability ............... $ 1,521 $ — $ — $1,521
December 31, 2012
Total
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Liabilities:
Preferred stock warrant
liabilities ................... $6,627 $— $— $6,627
Put option liability ............. 1,062 — — 1,062
Total liabilities at fair value .......... $7,689 $— $— $7,689
We value our marketable securities based on quoted prices in active markets for identical assets (Level 1
inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in
determining fair value. We classify all of our fixed income available-for-sale securities as having Level 2 inputs.
The valuation techniques used to measure the fair value of our financial instruments having Level 2 inputs were
derived from non-binding market consensus prices that are corroborated by observable market data, quoted
market prices for similar instruments, or pricing models such as discounted cash flow techniques.
82