Investments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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⁾	$	218,868	$	218,868	$	—	$	—

Commercial paper ⁽¹⁾	45,606		—		45,606		—

Certificates of deposit ⁽²⁾	2,243		—		2,243		—

Money market funds securing legal bonds ⁽²⁾	535		535		—		—

Investment securities at fair value
Equity securities at fair value
Marketable equity securities	29,807		29,807		—		—
Mutual funds invested in fixed-income securities	21,187		21,187		—		—
Total equity securities at fair value	50,994		50,994		—		—
Debt securities available for sale
U.S. government securities	28,311		—		28,311		—
Corporate securities	42,858		—		42,858		—
U.S. government and federal agency	3,194		—		3,194		—
Commercial mortgage-backed securities	407		—		407		—
Commercial paper	5,992		—		5,992		—
Index-linked U.S. bonds	2,345		—		2,345		—
Foreign fixed-income securities	1,145		—		1,145		—
Total debt securities available for sale	84,252		—		84,252		—

Total investment securities at fair value	135,246		50,994		84,252		—

Long-term investments
Equity securities at fair value that qualify for the NAV practical expedient	58,787		—		58,787		—

Total	$	461,285	$	270,397	$	190,888	$	—

Liabilities:
Fair value of derivatives embedded within convertible debt	$	45,124	$	—	$	—	$	45,124


(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 $3,910 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 liabilities

The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at September 30, 2018:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	September 30, 2018		Valuation Technique	Unobservable Input	Range (Actual)

Fair value of derivatives embedded within convertible debt	$	45,124	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	13.78
				Convertible trading price (as a percentage of par value)	104.10		%
				Volatility	18.06		%
				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, 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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