FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis in the Company's consolidated financial statements as of March 31, 2020 and December 31, 2019 are summarized by type of inputs applicable to the fair value measurements as follows:



March 31, 2020	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities ^(a)	$	105	$	18	$	—	$	123
Long-term investments ^(a)	186,451		—		34,381		220,832
Precious metal and commodity inventories recorded at fair value	19,540		—		—		19,540
Economic interests in loans	—		—		17,501		17,501
Commodity contracts on precious metal and commodity inventories	—		94		—		94
Warrants	—		—		2,086		2,086
Total	$	206,096	$	112	$	53,968	$	260,176

Liabilities:
Commodity contracts on precious metal and commodity inventories	$	—	$	6	$	—	$	6
Other precious metal liabilities	16,270		—		—		16,270
Total	$	16,270	$	6	$	—	$	16,276



December 31, 2019	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities ^(a)	$	170	$	50	$	—	$	220
Long-term investments ^(a)	222,178		—		53,658		275,836
Precious metal and commodity inventories recorded at fair value	11,377		—		—		11,377
Economic interests in loans	—		—		18,633		18,633
Warrants	—		—		2,086		2,086
Total	$	233,725	$	50	$	74,377	$	308,152

Liabilities:
Commodity contracts on precious metal and commodity inventories	$	—	$	381	$	—	$	381
Other precious metal liabilities	11,481		—		—		11,481
Total	$	11,481	$	381	$	—	$	11,862


(a)	For additional detail of the marketable securities and long-term investments see Note 8 - "Investments."

There were no transfers of securities among the various measurement input levels during the three months ended March 31, 2020.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the "exit price") in an orderly transaction between market participants at the measurement date. Fair value measurements are broken down into three levels based on the reliability of inputs as follows:

Level 1 inputs are quoted prices in active markets for identical assets or liabilities as of the measurement date ("Level 1").

Level 2 inputs may include quoted prices in active markets for similar assets or liabilities, quoted prices in a market that is not active for identical assets or liabilities, or other inputs that can be corroborated by observable market data ("Level 2").

Level 3 inputs are unobservable for the asset or liability when there is little, if any, market activity for the asset or liability. Level 3 inputs are based on the best information available and may include data developed by the Company ("Level 3").

The fair value of the Company's financial instruments, such as cash and cash equivalents, trade and other receivables and accounts payable, approximates carrying value due to the short-term maturities of these assets and liabilities. Carrying cost approximates fair value for long-term debt, which has variable interest rates.

The precious metal and commodity inventories associated with the Company's fair value hedges (see Note 10 - "Financial Instruments") are reported at fair value. Fair values of these inventories are based on quoted market prices on commodity exchanges and are considered Level 1 measurements. The derivative instruments that the Company purchases in connection with its precious metal and commodity inventories, specifically commodity futures and forward contracts, are also valued at fair value. The futures contracts are Level 1 measurements since they are traded on a commodity exchange. The forward contracts are entered into with a counterparty and are considered Level 2 measurements.

Following is a summary of changes in assets measured using Level 3 inputs:



	Investments in Associated Companies ^(a)			Marketable Securities and Other ^(b)			Total
Balance as of December 31, 2019	$	52,240		$	22,137		$	74,377
Purchases	—			126			126
Sales and cash collections	—			(4,180		)	(4,180		)
Realized gains	—			2,980			2,980
Unrealized gains	460			—			460
Unrealized losses	(19,795		)	—			(19,795		)
Balance as of March 31, 2020	$	32,905		$	21,063		$	53,968

Balance as of December 31, 2018	$	40,643		$	21,274		$	61,917
Purchases	14,943			—			14,943
Sales and cash collections	—			(3,846		)	(3,846		)
Realized gains	—			2,886			2,886
Unrealized gains	3,774			—			3,774
Balance as of March 31, 2019	$	59,360		$	20,314		$	79,674


(a)	Unrealized gains and losses are recorded in Loss (income) of associated companies, net of taxes in the Company's consolidated statements of operations.


(b)	Realized and unrealized gains and losses are recorded in Realized and unrealized losses (gains) on securities, net or Financial services revenue in the Company's consolidated statements of operations.

Long-Term Investments - Valuation Techniques

The Company estimates the value of its investments in STCN convertible preferred stock and the New Note using a Monte Carlo simulation. Key inputs in these valuations include the trading price and volatility of STCN's common stock, the risk-free rate of return, as well as the dividend rate, conversion price, redemption date of the preferred stock and the maturity date of the note.

Marketable Securities and Other - Valuation Techniques

The Company determines the fair value of certain corporate securities and corporate obligations by incorporating and reviewing prices provided by third-party pricing services based on the specific features of the underlying securities.

The fair value of the derivatives held by WebBank (see Note 10 - "Financial Instruments") represent the estimated amounts that WebBank would receive or pay to terminate the contracts at the reporting date and is based on discounted cash flow analyses that consider credit, performance and prepayment. Unobservable inputs used in the discounted cash flow analyses are: a constant prepayment rate of 6.73% to 35.10%, a constant default rate of 1.89% to 27.49% and a discount rate of 1.96% to 25.51%.

Assets Measured at Fair Value on a Nonrecurring Basis

The Company's non-financial assets and liabilities measured at fair value on a non-recurring basis, when required, include goodwill and other intangible assets, any assets and liabilities acquired in a business combination, or its long-lived assets written down to fair value. To measure fair value for such assets and liabilities, the Company uses techniques including an income approach, a market approach and/or appraisals (Level 3 inputs). The income approach is based on a discounted cash flow analysis and calculates the fair value by estimating the after-tax cash flows attributable to an asset or liability and then discounting the after-tax cash flows to a present value using a risk-adjusted discount rate. Assumptions used in the discounted cash flow analysis ("DCF") require the exercise of significant judgment, including judgment about appropriate discount rates and terminal values, growth rates and the amount and timing of expected future cash flows. The discount rates, which are intended to reflect the risks inherent in future cash flow projections, used in the DCF are based on estimates of the weighted-average cost of capital of a market participant. Such estimates are derived from analysis of peer companies and consider the industry weighted-average return on debt and equity from a market participant perspective. A market approach values a business by considering the prices at which shares of capital stock, or related underlying assets, of reasonably comparable companies are trading in the public market or the transaction price at which similar companies have been acquired. If comparable companies are not available, the market approach is not used.