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FAIR VALUE OF FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company measures its cash equivalents, customer funds, short-term and long-term marketable debt securities, and marketable equity investments at fair value. The Company classifies these 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):
December 31, 2019December 31, 2018
Level 1Level 2Level 3Level 1Level 2Level 3
Cash Equivalents:
Money market funds$213,576  $—  $—  $218,109  $—  $—  
U.S. agency securities—  19,976  —  —  46,423  —  
Commercial paper—  —  —  —  —  —  
U.S. government securities46,914  —  —  86,239  —  —  
Foreign securities—  —  —  —  23,981  —  
Customer Funds:
Money market funds233  —  —  18  —  —  
U.S. agency securities—  8,585  —  —  67,282  —  
U.S. government securities245,015  —  —  108,020  —  —  
Short-term debt securities:
U.S. agency securities—  131,522  —  —  80,122  —  
Corporate bonds—  67,721  —  —  109,519  —  
Commercial paper—  —  —  —  —  —  
Municipal securities—  6,776  —  —  27,832  —  
U.S. government securities265,135  —  —  292,267  —  —  
Foreign securities—  21,302  —  —  31,251  —  
Long-term debt securities:
U.S. agency securities—  64,068  —  —  114,560  —  
Corporate bonds—  143,078  —  —  159,252  —  
Municipal securities—  9,706  —  —  28,594  —  
U.S. government securities295,779  —  —  154,124  —  —  
Foreign securities—  24,672  —  —  8,150  —  
Other:
Marketable equity investment—  —  —  45,342  —  —  
Total$1,066,652  $497,406  $—  $904,119  $696,966  $—  

The carrying amounts of certain financial instruments, including settlements receivable, accounts payable, customers payable, accrued expenses and settlements payable, approximate their fair values due to their short-term nature.
The Company estimates the fair value of its convertible senior notes based on their last actively traded prices (Level 1) or market observable inputs (Level 2). The estimated fair value and carrying value of the convertible senior notes were as follows (in thousands):

December 31, 2019December 31, 2018
Carrying ValueFair Value (Level 2)Carrying ValueFair Value (Level 2)
2023 Notes$748,564  $962,516  $718,522  $901,468  
2022 Notes190,268  578,817  181,173  515,693  
Total$938,832  $1,541,333  $899,695  $1,417,161  

        

The estimated fair value and carrying value of loans held for sale is as follows (in thousands):


December 31, 2019December 31, 2018
Carrying ValueFair Value (Level 3)Carrying ValueFair Value (Level 3)
Loans held for sale$164,834  $173,360  $89,974  $93,064  
Total$164,834  $173,360  $89,974  $93,064  
        
For the years ended December 31, 2019, 2018, and 2017, the Company recorded a charge for the excess of amortized cost over the fair value of the loans of $23.2 million, $13.2 million, and $8.0 million, respectively.
        
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 years ended December 31, 2019, 2018 and 2017, the Company did not have any transfers in or out of Level 1, Level 2, or Level 3 assets or liabilities.