Note 15 - Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

1

5

. Fair Value Measurements

The guidance on fair value measurements requires fair value measurements to be classified and disclosed in

one

of the following

three

categories:

Level

1

: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level

2

: Quoted prices in markets that are

not

active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or

Level

3

: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or

no

market activity).

The Company measures its investments in marketable securities at fair value using the market approach which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company has cash equivalents which consist of money market funds valued using the amortized cost method, in accordance with Rule

2a

-

7

under the

1940

Act which approximates fair value.

The convertible notes are carried on the Consolidated Balance Sheets at their original issuance value including accreted interest, net of unamortized debt discount and issuance cost. The Convertible Notes are

not

marked to fair value at the end of each reporting period. As of

December 31, 2018

and

2017,

the fair value of Convertible Notes was determined on the basis of market prices observable for similar instruments and is considered Level

2

in the fair value hierarchy. The fair value of the Convertible Notes as of

December 31, 2018

and

2017

was

$512,428

and

$555,200,

respectively.

The following table presents information about assets required to be carried at fair value on a recurring basis:

December 31, 201 8	Total		Level 1		Level 2
Assets
Cash equivalents:
Money market funds	$	740	$	38	$	702
Commercial paper		96,759		—		96,759
Investment in marketable securities:
Municipal bonds		6,733		—		6,733
Corporate notes/bonds		146,126		—		146,126
Variable rate demand notes		8,900		—		8,900
Asset-backed securities		32,923		—		32,923
Commercial paper		39,701		—		39,701
Certificate of deposit		956		956		—
	$	332,838	$	994	$	331,844

December 31, 201 7	Total		Level 1		Level 2
Assets
Cash equivalents:
Money market funds	$	3,332	$	31	$	3,301
Municipal bonds		999		—		999
Corporate notes/bonds		2,608		—		2,608
Commercial paper		76,456		—		76,456
Investment in marketable securities:
Municipal bonds		27,657		—		27,657
Corporate notes/bonds		146,401		—		146,401
Variable rate demand notes		3,500		—		3,500
Asset-backed securities		7,185		—		7,185
Commercial paper		56,994		—		56,994
	$	325,132	$	31	$	325,101

As discussed in Note

4,

the Company has a marketable equity investment. The marketable equity investment is classified as Level

1

in the fair value hierarchy. As discussed in Note

4,

the Company has non-marketable equity investments which are classified within Level

3

in the fair value hierarchy because the Company estimates the value based on valuation methods using the observable transaction price at the transaction date.