Investments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Company's recurring financial assets and liabilities subject to fair value measurements

The Company's recurring financial assets and liabilities subject to fair value measurements were as follows:



	Fair Value Measurements as of September 30, 2016
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Assets:
Money market funds ⁽¹⁾	$	310,826	$	310,826	$	—	$	—

Commercial paper ⁽¹⁾	30,704		—		30,704		—

Certificates of deposit ⁽²⁾	2,978		—		2,978		—

Bonds ⁽²⁾	5,258		5,258		—		—

Investment securities available for sale
Equity securities	57,948		57,948		—		—
Mutual funds invested in fixed income securities	20,667		20,667		—		—
Fixed income securities
U.S. government securities	30,985		—		30,985		—
Corporate securities	35,669		—		35,669		—
U.S. government and federal agency	8,293		—		8,293		—
Commercial mortgage-backed securities	1,776		—		1,776		—
U.S. asset-backed securities	891		—		891		—
Commercial paper	19,424		—		19,424		—
Total fixed income securities	97,038		—		97,038		—

Total investment securities available for sale	175,653		78,615		97,038		—

Total	$	525,419	$	394,699	$	130,720	$	—

Liabilities:
Fair value of derivatives embedded within convertible debt	$	120,820	$	—	$	—	$	120,820


Nonrecurring fair value measurements
Long-term investments ⁽³⁾	$	6,396					$	6,396	$	(1,203	)


(1)	Amounts included in cash and cash equivalents on the condensed consolidated balance sheet.


(2)	Amounts included in current restricted assets and restricted assets on the condensed consolidated balance sheet.


(3)	Long-term investments with a carrying amount of $7,599 were written down to their fair value of $6,396, resulting in an impairment charge of $1,203, which was included in earnings.



	Fair Value Measurements as of December 31, 2015
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses)
Assets:
Money market funds ⁽¹⁾	$	93,915	$	93,915	$	—	$	—

Certificates of deposit ⁽²⁾	3,469		—		3,469		—

Bonds ⁽²⁾	12,767		12,767		—		—

Investment securities available for sale
Equity securities	67,273		67,273		—		—
Mutual funds invested in fixed income securities	20,111		20,111		—		—
Fixed income securities
U.S. government securities	28,132		—		28,132		—
Corporate securities	41,561		—		41,561		—
U.S. government and federal agency	5,790		—		5,790		—
Commercial mortgage-backed securities	8,728		—		8,728		—
U.S. asset-backed securities	8,276		—		8,276		—
Index-linked U.S. bonds	2,105		—		2,105		—
Total fixed income securities	94,592		—		94,592		—

Total investment securities available for sale	181,976		87,384		94,592		—

Total	$	292,127	$	194,066	$	98,061	$	—

Liabilities:
Fair value of derivatives embedded within convertible debt	$	144,042	$	—	$	—	$	144,042


Nonrecurring fair value measurements
Long-term investments ⁽³⁾	$	11,189					$	11,189	$	(811	)
Investments in real estate, net ⁽⁴⁾	3,780						3,780		(230		)
	$	14,969					$	14,969	$	(1,041	)


(1)	Amounts included in cash and cash equivalents on the condensed consolidated balance sheet


(2)	Amounts included in current restricted assets and restricted assets on the condensed consolidated balance sheet.


(3)	Long-term investments with a carrying amount of $12,000 were written down to their fair value of $11,189, resulting in an impairment charge of $811, which was included in earnings.


(4)	Investments in real estate, net with a carrying value of $4,010 were written down to its fair value of $3,780, resulting in an impairment charge of $230, which was included in earnings.

Unobservable inputs related to the valuations of the Level 3 assets

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at September 30, 2016:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	September 30, 2016		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	120,820	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	21.53
				Convertible trading price (as a percentage of par value)	113.94		%
				Volatility	18.87		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	5.0% - 6.0% (5.5%)

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2015:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2015		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	144,042	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	23.59
				Convertible trading price (as a percentage of par value)	114.31		%
				Volatility	18.30		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	5.0% - 5.5% (5.25%)

Unobservable inputs related to the valuations of the Level 3 liabilities

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at September 30, 2016:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	September 30, 2016		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	120,820	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	21.53
				Convertible trading price (as a percentage of par value)	113.94		%
				Volatility	18.87		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	5.0% - 6.0% (5.5%)

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2015:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2015		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	144,042	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	23.59
				Convertible trading price (as a percentage of par value)	114.31		%
				Volatility	18.30		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	5.0% - 5.5% (5.25%)

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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