FAIR VALUE MEASUREMENTS

Financial assets and liabilities measured at fair value on a recurring basis in the Company's consolidated financial statements as of December 31, 2018 and 2017 are summarized by type of inputs applicable to the fair value measurements as follows:



December 31, 2018	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities^(a)	$	836	$	603	$	—	$	1,439
Long-term investments^(a)	200,179		14,943		42,601		257,723
Investments in certain funds	—		—		422		422
Precious metal and commodity inventories recorded at fair value	9,884		—		—		9,884
Economic interests in loans	—		—		17,156		17,156
Foreign currency forward exchange contracts	—		275		—		275
Warrants	—		—		1,738		1,738
Total	$	210,899	$	15,821	$	61,917	$	288,637

Liabilities:
Financial instrument obligations	$	12,434	$	—	$	—	$	12,434
Commodity contracts on precious metal and commodity inventories	—		159		—		159
Other precious metal liabilities	8,589		—		—		8,589
Foreign currency forward exchange contracts	—		450		—		450
Total	$	21,023	$	609	$	—	$	21,632



December 31, 2017	Level 1		Level 2		Level 3			Total
Assets:
Marketable securities^(a)	$	44,371	$	1,988	$	11,954		$	58,313
Long-term investments^(a)	186,750		10,387		36,223			233,360
Investments in certain funds	—		—		407			407
Precious metal and commodity inventories recorded at fair value	10,993		—		—			10,993
Economic interests in loans	—		—		13,126			13,126
Foreign currency forward exchange contracts	—		166		—			166
Warrants	—		—		206			206
Long put options	3		—		—		—	3
Total	$	242,117	$	12,541	$	61,916		$	316,574

Liabilities:
Financial instrument obligations	$	15,629	$	—	$	—		$	15,629
Commodity contracts on precious metal and commodity inventories	—		127		—			127
Other precious metal liabilities	8,115		—		—			8,115
Foreign currency forward exchange contracts	—		188		—			188
Short call options	258		—		—			258
Total	$	24,002	$	315	$	—		$	24,317


(a)	For additional detail of the marketable securities and long-term investments see Note 10 - "Investments."

There were no transfers of securities among the various measurement input levels during the years ended December 31,

2018 or 2017.

The fair value of the Company's financial instruments, such as cash and cash equivalents, trade and other receivables and accounts payable, approximates carrying value due to the short-term maturities of these assets and liabilities. Carrying cost approximates fair value for long-term debt, which has variable interest rates.

The precious metal and commodity inventories associated with the Company's fair value hedges (see Note 13 - "Financial Instruments") are reported at fair value. Fair values of these inventories are based on quoted market prices on commodity exchanges and are considered Level 1 measurements. The derivative instruments that the Company purchases in connection with its precious metal and commodity inventories, specifically commodity futures and forward contracts, are also valued at fair value. The futures contracts are Level 1 measurements since they are traded on a commodity exchange. The forward contracts are entered into with a counterparty and are considered Level 2 measurements.

Following is a summary of changes in financial assets measured using Level 3 inputs:



	Long-Term Investments
	Investments in Associated Companies (a)		STCN Warrants (a)			Marketable Securities and Other (b)			Total
Assets
Balance at December 31, 2016	$	1,223	$	19		$	30,789		$	32,031
Purchases	35,000		—			—			35,000
Sales and cash collections	—		—			(19,404		)	(19,404		)
Realized gains on sale	—		—			309			—
Unrealized gains	—		—			13,999			13,999
Unrealized losses	—		(19		)	—			(19		)
Balance at December 31, 2017	$	36,223	$	—		$	25,693		$	61,916
Purchases	—		—			2,482			2,482
Sales and cash collections	—		—			(23,154		)	(23,154		)
Realized gains on sale	—		—			18,704			18,704
Unrealized gains	4,420		—			145			4,565
Unrealized losses	—		—			(2,346		)	(2,346		)
Balance at December 31, 2018	$	40,643	$	—		$	21,524		$	62,167


(a)	Unrealized gains and losses are recorded in Loss (income) of associated companies, net of taxes in the Company's consolidated statements of operations.


(b)	Realized gains and losses on sale are recorded in Realized and unrealized losses (gains) on securities, net or Revenue in the Company's consolidated statements of operations, as are unrealized gains and losses incurred in 2018. In 2017, prior to the adoption of ASU 2016-01, unrealized gains and losses were recorded in AOCI.

Long-Term Investments - Valuation Techniques

The Company estimates the value of its investment in STCN preferred stock using a Monte Carlo simulation. Key inputs in this valuation include the trading price and volatility of STCN's common stock, the risk-free rate of return, as well as the dividend rate, conversion price and redemption date of the preferred stock. The Company estimates the value of another of its investments in an associated company primarily using a discounted cash flow method adjusted for additional information related to debt covenants, solvency issues and other related matters.

Marketable Securities and Other - Valuation Techniques

The Company uses the net asset value included in quarterly statements it receives in arrears from a venture capital fund to determine the fair value of such fund and determines the fair value of certain corporate securities and corporate obligations by incorporating and reviewing prices provided by third-party pricing services based on the specific features of the underlying securities. The fair value of the derivatives held by WebBank (see Note 13 - "Financial Instruments") represent the estimated amounts that WebBank would receive or pay to terminate the contracts at the reporting date and is based on discounted cash flows analyses that consider credit, performance and prepayment. Unobservable inputs used in the discounted cash flow analyses are: a constant prepayment rate of 7.01% to 35.85%, a constant default rate of 1.01% to 27.56% and a discount rate of 1.34% to 27.71%.

Assets Measured at Fair Value on a Nonrecurring Basis

The Company's non-financial assets and liabilities measured at fair value on a non-recurring basis include goodwill and other intangible assets, any assets and liabilities acquired in a business combination, or its long-lived assets written down to fair value. To measure fair value for such assets and liabilities, the Company uses techniques including an income approach, a market approach and/or appraisals (Level 3 inputs). The income approach is based on a discounted cash flow analysis and calculates the fair value by estimating the after-tax cash flows attributable to an asset or liability and then discounting the after-tax cash flows to a present value using a risk-adjusted discount rate. Assumptions used in the discounted cash flow analysis ("DCF") require the exercise of significant judgment, including judgment about appropriate discount rates and terminal values, growth rates and the amount and timing of expected future cash flows. The discount rates, which are intended to reflect the risks inherent in future cash flow projections, used in the DCF are based on estimates of the weighted-average cost of capital of a market participant. Such estimates are derived from analysis of peer companies and consider the industry weighted-average return on debt and equity from a market participant perspective. A market approach values a business by considering the prices at which shares of capital stock, or related underlying assets, of reasonably comparable companies are trading in the public market or the transaction price at which similar companies have been acquired. If comparable companies are not available, the market approach is not used.