Pandora 2012 Annual Report Download - page 88

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Table of Contents
Pandora Media, Inc.
Notes to Consolidated Financial Statements - Continued
The fair value of these financial assets and liabilities was determined using the following inputs at January 31, 2011 and 2012:
Fair Value Measurement Using
Total
Quoted Prices in
Active Markets
for Identical
Instruments
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(in thousands)
Fair values as of January 31, 2011
Assets:
Money market funds $ 38,074 $ — $ — $ 38,074
Total assets measured at fair value $ 38,074 $ — $ — $ 38,074
Liabilities:
Preferred stock warrants $ — $ — $ 1,027 $ 1,027
Total liabilities measured at fair value $ — $ — $ 1,027 $ 1,027
Fair values as of January 31, 2012
Assets:
Money market funds $ 31,614 $ — $ — $ 31,614
Commercial paper — 30,480 — 30,480
Corporate debt securities — 20,983 — 20,983
U.S. agency notes — 900 — 900
Total assets measured at fair value $ 31,614 $ 52,363 $ — $ 83,977
The Company's money market funds are classified as Level 1 within the fair value hierarchy because they are valued primarily using quoted market
prices. The Company's 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. The Company's
preferred stock warrants were classified as Level 3 within the fair value hierarchy because they were valued using unobservable inputs and management's
judgment due to the absence of quoted market prices, inherent lack of liquidity and the long-term nature of such financial instruments.
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