Measured

and disc

losed

on recurring basis

The Group measures its financial assets and liabilities including cash and cash equivalents at fair value on a recurring basis as of December 31, 2018 and 2019. Cash and cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market.

As of December 31, 2018 and 2019, information about inputs for the fair value measurements of the Group’s assets that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:


	Fair Value Measured as of December 31,
Description	2018		Quoted Prices in Active Market for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	RMB		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents		2,468,034		2,468,034		—		—
Total		2,468,034		2,468,034		—		—

	Fair Value Measured as of December 31,
Description	2019		Quoted Prices in Active Market for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	RMB		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents		2,612,743		2,612,743		—		—
Total		2,612,743		2,612,743		—		—

The fair value of the Notes was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including the trading price of the Company’s convertible notes, when available, the Company’s stock price and interest rates based on similar debt issued by parties with credit ratings similar to the Company (Level 2). As of December 31, 2018 and 2019, the fair value of the Notes was RMB3,901,355 and RMB4,761,577, respectively.

Measured on nonrecurring basis

The Group measures its equity method investments at fair value on a nonrecurring basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

During the years ended

December 31, 201

and 201

, the Group recorded an impairment loss of RMB nil and RMB3,211, respectively.

For equity securities without readily determinable fair value for which the Group elected to use the measurement alternative starting in 2018, the investment is measured at fair value on a nonrecurring basis whenever there is an impairment or any changes resulting from observable price changes in an orderly transaction for an identical or a similar investment of the same issuer. During the years ended December 31, 2018 and 2019, the Group performed an impairment test on its equity securities without readily determinable fair value investees and recorded an impairment loss of RMB43,200 and RMB12,500, respectively.

Such impairments are considered level 3 fair value measurements because the Group used unobservable inputs such as the management projection of discounted future cash flow and the discount rate.

For goodwill impairment testing, refer to Note 8 for details.