Note 14 - Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Text Block]

. 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

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

Level

: 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

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

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

under the

1940

Act which approximates fair value.

The Convertible Notes are carried on the condensed 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

March 31, 2019

and

December 31, 2018,

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

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

March 31, 2019

and

December 31, 2018

was

$580,568

and

$512,428,

respectively.

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

March 31, 201 9	Total		Level 1		Level 2
Assets
Cash equivalents:
Money market funds	$	7,442	$	110	$	7,332
Commercial paper		123,448		—		123,448
Investment in marketable debt securities:
Municipal bonds		6,908		—		6,908
Corporate notes/bonds		146,321		—		146,321
Variable rate demand notes		8,900		—		8,900
Asset backed securities		30,627		—		30,627
Commercial paper		17,432		—		17,432
Certificate of deposit		818		818		—
	$	341,896	$	928	$	340,968

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

As discussed in note

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

in the fair value hierarchy. As discussed in note

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

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

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details