Investments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

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 March 31, 2018
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⁾	$	148,446	$	148,446	$	—	$	—

Commercial paper ⁽¹⁾	51,029		—		51,029		—

Certificates of deposit ⁽²⁾	2,501		—		2,501		—

Money market funds securing legal bonds ⁽²⁾	490		490		—		—

Investment securities at fair value
Equity securities at fair value
Marketable equity securities	40,561		40,561		—		—
Mutual funds invested in fixed-income securities	20,976		20,976		—		—
Total equity securities at fair value	61,537		61,537		—		—
Debt securities available for sale
U.S. government securities	28,347		—		28,347		—
Corporate securities	40,869		—		40,869		—
U.S. government and federal agency	4,081		—		4,081		—
Commercial mortgage-backed securities	417		—		417		—
Index-linked U.S. bonds	2,326		—		2,326		—
Foreign fixed-income securities	1,239		—		1,239		—
Total debt securities available for sale	77,279		—		77,279		—

Total investment securities at fair value	138,816		61,537		77,279		—

Long-term investments
Equity securities at fair value that qualify for the NAV practical expedient	71,019		—		71,019		—

Total	$	412,301	$	210,473	$	201,828	$	—

Liabilities:
Fair value of derivatives embedded within convertible debt	$	65,846	$	—	$	—	$	65,846


(1)	Amounts included in cash and cash equivalents on the condensed consolidated balance sheet, except for $2,570 that is included in current restricted assets and $3,980 that is included in restricted assets.


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



	Fair Value Measurements as of December 31, 2017
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⁾	$	166,915	$	166,915	$	—	$	—

Commercial paper ⁽¹⁾	43,781		—		43,781		—

Certificates of deposit ⁽²⁾	2,497		—		2,497		—

Money market funds securing legal bonds ⁽²⁾	2,990		2,990		—		—

Investment securities at fair value
Equity securities	44,634		44,634		—		—
Mutual funds invested in fixed-income securities	21,041		21,041		—		—
Fixed-income securities
U.S. government securities	28,502		—		28,502		—
Corporate securities	41,329		—		41,329		—
U.S. government and federal agency	4,564		—		4,564		—
Commercial mortgage-backed securities	426		—		426		—
Commercial paper	7,027		—		7,027		—
Index-linked U.S. bonds	2,316		—		2,316		—
Foreign fixed income securities	650		—		650		—
Total fixed-income securities	84,814		—		84,814		—

Total investment securities at fair value	150,489		65,675		84,814		—

Total	$	366,672	$	235,580	$	131,092	$	—

Liabilities:
Fair value of derivatives embedded within convertible debt	$	76,413	$	—	$	—	$	76,413


Nonrecurring fair value measurements
Long-term investments ⁽³⁾	$	4,475					$	4,475	$	(525	)
	$	4,475					$	4,475	$	(525	)


(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 $5,000 were written down to their fair value of $4,475, resulting in an impairment charge of $525, 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 March 31, 2018:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	March 31, 2018		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	65,846	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	20.39
				Convertible trading price (as a percentage of par value)	109.71		%
				Volatility	17.51		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	4.0% - 5.0% (4.5%)

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2017:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2017		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	76,413	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	22.38
				Convertible trading price (as a percentage of par value)	115.19		%
				Volatility	17.98		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	3.0% - 4.0% (3.5%)

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 March 31, 2018:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	March 31, 2018		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	65,846	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	20.39
				Convertible trading price (as a percentage of par value)	109.71		%
				Volatility	17.51		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	4.0% - 5.0% (4.5%)

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2017:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2017		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	76,413	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	22.38
				Convertible trading price (as a percentage of par value)	115.19		%
				Volatility	17.98		%
				Risk-free rate	Term structure of US Treasury Securities
				Implied credit spread	3.0% - 4.0% (3.5%)

- 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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