Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2019

A summary of assets and liabilities as of September 30, 2019 and December 31, 2018, related to the Company's financial instruments measured at fair value on a recurring basis, is set forth below, along with the balance sheet accounts they are classified within:



	Balance as of September 30, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Cash equivalents
Money market funds	$	198,172	$	198,172	$	—	$	—
U.S. treasury securities	282		—		282		—
Short-term investments
U.S. treasury securities	62,054		—		62,054		—
Loans held for sale	22,246		—		22,246		—
Prepaid expenses and other current assets
Forward sales commitments	216		—		216		—
Interest rate lock commitments	603		—		—		603
Total prepaid expenses and other current assets	819		—		216		603
Long-term investments
U.S. treasury securities	38,480		—		38,480		—
Total assets	$	322,053	$	198,172	$	123,278	$	603
Liabilities
Accrued liabilities
Forward sales commitments	$	44	$	—	$	44	$	—
Interest rate lock commitments	124		—		—		124
Total liabilities	$	168	$	—	$	44	$	124



	Balance as of December 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Cash equivalents
Money market funds	$	425,776	$	425,776	$	—	$	—
Loans held for sale	4,913		—		4,913		—
Prepaid expenses and other current assets
Interest rate lock commitments	254		—		—		254
Total prepaid expenses and other current assets	254		—		—		254
Total assets	$	430,943	$	425,776	$	4,913	$	254
Liabilities
Accrued liabilities
Forward sales commitments	$	141	$	—	$	141	$	—
Total liabilities	$	141	$	—	$	141	$	—

There were no material transfers between levels, and there was no significant activity within Level 3 financial instruments during the periods presented.

See Note 14 for the carrying amount and estimated fair value of the Company's 1.75% Convertible Senior Notes due 2023 (the "Notes").

Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis include items such as property, plant and equipment, goodwill and other intangible assets, cost method investments, and other assets. These assets are measured at fair value if determined to be impaired. The Company did not record any significant nonrecurring fair value measurements after initial recognition for the period ended September 30, 2019.

Gross unrealized holding gains and losses on available-for-sale debt securities were not material as of September 30, 2019.

- 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.

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