Fair Value Measurement

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurement

7. Fair Value Measurement

Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are classified in one of three categories described below.

· Level 1 — Quoted prices in active markets for identical assets or liabilities.

· Level 2 — Inputs, other than quoted market prices in active markets, that are observable either directly or indirectly. Quoted prices for similar instruments in active markets or model driven valuations in which all significant inputs and significant value drivers are observable in active markets.

· Level 3 — Valuations derived from valuations techniques in which one or more significant inputs or significant value drivers are unobservable.

The following tables set forth our assets and liabilities that are measured at fair value on a recurring basis:

( in thousands )	As of September 30, 2015
	Total		Level 1		Level 2		Level 3
Assets:
Short term investments	$	1,060	$	1,060	$	-	$	-
Cash equivalents		41,567		41,567
Total assets	$	42,627	$	42,627	$	-	$	-
Liabilities:
Derivative liability	$	51	$	-	$	51	$	-
Temporary equity:
Redeemable non-controlling interests	$	93,178	$	-	$	-	$	93,178

( in thousands )	As of December 31, 2014
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	738,090	$	738,090	$	-	$	-
Derivative asset		86		-		86		-
Total assets	$	738,176	$	738,090	$	86	$	-
Temporary equity:
Redeemable non-controlling interest	$	96,251	$	-	$	-	$	96,251

Derivatives include freestanding foreign currency forward contracts which are marked to market at each reporting period. We classify our foreign currency forward contracts as Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

We determine the fair value of the redeemable non-controlling interest using a combination of a discounted cash flow valuation model and a market approach that applies revenues and EBITDA estimates against the calculated multiples of comparable companies. Operating revenues and EBITDA are key assumptions utilized in both the discounted cash flow valuation model and the market approach. The selected discount rate of approximately 10.0% is also a key assumption in our discounted cash flow valuation model (See Note 12—Redeemable Non-controlling Interests and Non-controlling Interest).

The following table summarizes the activity for account balances whose fair value measurements are estimated utilizing level 3 inputs:

( in thousands )	Redeemable Non-controlling Interests
		Three months ended							Nine months ended
		September 30,							September 30,
	2015				2014			2015				2014
Beginning period balance	$		95,111		$	124,763		$		96,251		$	133,000
Addition to non-controlling interest			-			-				700			-
Redeemable non-controlling interest fair    value adjustment			-			-				1,081			-
Dividends paid to non-controlling interest			(3,228	)		(5,863	)			(9,896	)		(21,928	)
Net income attributable to non-controlling interests			1,295			560				5,042			8,388
End period balance	$		93,178		$	119,460		$		93,178		$	119,460

The net income amounts reflected in the table above are reported within net income attributable to non-controlling interests in our condensed consolidated statements of operations.

Other Financial Instruments - The carrying values of our financial instruments do not materially differ from their estimated fair values as of September 30, 2015 and December 31, 2014 except for debt, which is disclosed in Note 9 - Debt.