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Investments and Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract]  
Company's recurring financial assets and liabilities subject to fair value measurements
The Company's recurring financial assets and liabilities subject to fair value measurements were as follows:

 
 
Fair Value Measurements as of March 31, 2016
 
 
Description
 
Total
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 

Significant Other Observable Inputs
(Level 2)
 


Significant Unobservable Inputs
(Level 3)
 
Total Gains (Losses)
Assets:
 
 
 
 
 
 
 
 
 
 
Money market funds
 
$
88,888

 
$
88,888

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Certificates of deposit
 
3,472

 
—

 
3,472

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Bonds
 
15,802

 
15,802

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities available for sale
 
 
 
 
 
 
 
 
 
 
Equity securities
 
56,531

 
56,531

 
—

 
—

 
 
Mutual funds invested in fixed income securities
 
20,292

 
20,292

 
—

 
—

 
 
Fixed income securities
 
 
 
 
 
 
 
 
 
 
U.S. government securities
 
22,730

 
—

 
22,730

 
—

 
 
Corporate securities
 
35,592

 
—

 
35,592

 
—

 
 
U.S. government and federal agency
 
5,369

 
—

 
5,369

 
—

 
 
Commercial mortgage-backed securities
 
5,605

 
—

 
5,605

 
—

 
 
U.S. asset-backed securities
 
4,443

 
—

 
4,443

 
—

 
 
Index-linked U.S. bonds
 
2,138

 
—

 
2,138

 
—

 
 
Total fixed income securities
 
75,877

 
—

 
75,877

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total investment securities available for sale
 
152,700

 
76,823

 
75,877

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
260,862

 
$
181,513

 
$
79,349

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Fair value of derivatives embedded within convertible debt
 
$
134,348

 
$
—

 
$
—

 
$
134,348

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonrecurring fair value measurements
 
 
 
 
 
 
 
 
 
 
Long-term investments (1)
 
$
2,844

 
 
 
 
 
$
2,844

 
$
(282
)
 
 
 
 
 
 
 
 
 
 
 

(1)
Long-term investments with a carrying amount of $3,126 were written down to their fair value of $2,844, resulting in an impairment charge of $282, which was included in earnings.


 
 
Fair Value Measurements as of December 31, 2015
 
 
Description
 
Total
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 

Significant Other Observable Inputs
(Level 2)
 


Significant Unobservable Inputs
(Level 3)
 
Total Gains (Losses)
Assets:
 
 
 
 
 
 
 
 
 
 
Money market funds
 
$
93,915

 
$
93,915

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Certificates of deposit
 
3,469

 
—

 
3,469

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Bonds
 
12,767

 
12,767

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities available for sale
 
 
 
 
 
 
 
 
 
 
Equity securities
 
67,273

 
67,273

 
—

 
—

 
 
Mutual funds invested in fixed income securities
 
20,111

 
20,111

 
—

 
—

 
 
Fixed income securities
 
 
 
 
 
 
 
 
 
 
U.S. government securities
 
28,132

 
—

 
28,132

 
—

 
 
Corporate securities
 
41,561

 
—

 
41,561

 
—

 
 
U.S. government and federal agency
 
5,790

 
—

 
5,790

 
—

 
 
Commercial mortgage-backed securities
 
8,728

 
—

 
8,728

 
—

 
 
U.S. asset-backed securities
 
8,276

 
—

 
8,276

 
—

 
 
Index-linked U.S. bonds
 
2,105

 
—

 
2,105

 
—

 
 
Total fixed income securities
 
94,592

 
—

 
94,592

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total investment securities available for sale
 
181,976

 
87,384

 
94,592

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
292,127

 
$
194,066

 
$
98,061

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Fair value of derivatives embedded within convertible debt
 
$
144,042

 
$
—

 
$
—

 
$
144,042

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonrecurring fair value measurements
 
 
 
 
 
 
 
 
 
 
Long-term investments (1)
 
$
11,189

 
 
 
 
 
$
11,189

 
$
(811
)
Real estate held for sale (2)
 
3,780

 
 
 
 
 
3,780

 
(230
)
 
 
$
14,969

 
 
 
 
 
$
14,969

 
$
(1,041
)
 
 
 
 
 
 
 
 
 
 
 

(1)
Long-term investments with a carrying amount of $12,000 were written down to their fair value of $11,189, resulting in an impairment charge of $811, which was included in earnings.
(2)
Real estate held for sale with a carrying value of $4,010 was written down to its fair value of $3,780, resulting in an impairment charge of $230, which was included in earnings.
Unobservable inputs related to the valuations of the Level 3 assets and liabilities
The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at March 31, 2016:
 
 
Quantitative Information about Level 3 Fair Value Measurements
 
 
Fair Value at
 
 
 
 
 
 
 
 
March 31,
2016
 
Valuation Technique
 
Unobservable Input
 
Range (Actual)
 
 
 
 
 
 
 
 
 
Fair value of derivatives embedded within convertible debt
 
$
134,348

 
Discounted cash flow
 
Assumed annual stock dividend
 
5
%
 
 
 
 
 
 
Assumed annual cash dividend
 
$
1.60

 
 
 
 
 
 
Stock price
 
$
22.84

 
 
 
 
 
 
Convertible trading price (as a percentage of par value)
 
110.56
%
 
 
 
 
 
 
Volatility
 
18.61
%
 
 
 
 
 
 
Risk-free rate
 
Term structure of US Treasury Securities
 
 
 
 
 
 
Implied credit spread
 
6.0% - 7.0% (6.5%)


The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2015:

 
 
Quantitative Information about Level 3 Fair Value Measurements
 
 
Fair Value at
 
 
 
 
 
 
 
 
December 31,
2015
 
Valuation Technique
 
Unobservable Input
 
Range (Actual)
 
 
 
 
 
 
 
 
 
Fair value of derivatives embedded within convertible debt
 
$
144,042

 
Discounted cash flow
 
Assumed annual stock dividend
 
5
%
 
 
 
 
 
 
Assumed annual cash dividend
 
$
1.60

 
 
 
 
 
 
Stock price
 
$
23.59

 
 
 
 
 
 
Convertible trading price (as a percentage of par value)
 
114.3
%
 
 
 
 
 
 
Volatility
 
18.30
%
 
 
 
 
 
 
Risk-free rate
 
Term structure of US Treasury Securities
 
 
 
 
 
 
Implied credit spread
 
5.0% - 5.5% (5.25%)