FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company measures its cash equivalents and short-term and long-term investments at fair value. The Company classifies its cash equivalents and short-term and long-term investments within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs.

The Company’s financial assets and liabilities that are measured at fair value on a recurring basis are classified as follows (in thousands):

	June 30, 2016						December 31, 2015
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Cash and Cash Equivalents:
Money market funds	$	156,001	$	—	$	—	$	337,234	$	—	$	—
Commercial paper	—		10,745		—		—		—		—
Municipal securities	—		250		—		—		—		—
Short-term securities:
U.S. agency securities	—		11,617		—		—		—		—
Corporate bonds	—		8,805		—		—		—		—
Commercial paper	—		22,465		—		—		—		—
Municipal securities	—		3,005		—
U.S. government securities	15,099		—		—		—		—		—
Long-term securities:							—		—		—
U.S. agency securities	—		7,024		—		—		—		—
Corporate bonds	—		7,056		—		—		—		—
Municipal securities	—		1,502		—		—		—		—
U.S. government securities	4,020		—		—		—		—		—
Total	$	175,120	$	72,469	$	—	$	337,234	$	—	$	—

Loans are recorded at the lower of cost or fair value. To determine the fair value of loans, the Company utilizes industry-standard valuation modeling, such as discounted cash flow models, to arrive at an estimate of fair value.

A summary of loans disclosed at fair value on a recurring basis is as follows (in thousands):

	June 30, 2016
	Carrying Value	Fair Value (Level 3)
Loans held for sale	29,774	32,167
Total	29,774	32,167

As of December 31, 2015, the difference between the fair value of loans and the carrying value is insignificant.

The carrying amounts of certain financial instruments, including cash equivalents, settlements receivable, merchant cash advance receivable, accounts payable, customers payable, and settlements payable, approximate their fair values due to their short-term nature.

If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. During the three and six months ended June 30, 2016 and 2015, the Company did not have any transfers in or out of Level 1, Level 2, or Level 3 assets or liabilities.