6. Fair value measurement of assets and liabilities

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014:


		Quoted Prices in			Quoted Prices in
	Balances as of	active markets for	Significant other	Balances as of	active markets for	Significant other
	March 31,	identical Assets	observable inputs	December 31,	identical Assets	observable inputs
Description	2015	(Level 1)	(Level 2)	2014	(Level 1)	(Level 2)
	(In thousands)
Assets

Cash and Cash Equivalents:

Money Market Funds	$ 35,520	$ 35,520	$ —	$ 37,495	$ 37,495	$ —

Corporate Debt Securities	13,491	—	13,491	13,004	108	12,896

Investments:

Sovereign Debt Securities	44,101	40,606	3,495	49,150	49,150	—

Corporate Debt Securities	227,031	126,985	100,046	238,643	59,919	178,724

Certifcates of deposits	11,316	—	11,316	7,807	—	7,807

Total Financial Assets	$ 331,459	$ 203,111	$ 128,348	$ 346,099	$ 146,672	$ 199,427

Liabilities:

Contingent considerations	$ 4,875	$ —	$ 4,875	$ 4,833	$ —	$ 4,833

Total Financial Liabilities	$ 4,875	$ —	$ 4,875	$ 4,833	$ —	$ 4,833

As of March 31, 2015, the Company’s financial assets valued at fair value consisted of assets valued using i) Level 1 inputs: unadjusted quoted prices in active markets (Level 1 instrument valuations are obtained from observable inputs that reflect quoted prices (unadjusted) for identical assets in active markets); and ii) Level 2 inputs, which are obtained from readily-available pricing sources for comparable instruments as well as instruments with inactive markets at the measurement date. As of March 31, 2015, the Company did not have any assets without market values that would require a high level of judgment to determine fair value (Level 3).

As of March 31, 2015 and December 31, 2014, the Company´s liabilities valued at fair value consisted of contingent considerations from acquisitions valued using level 2 inputs.

The unrealized net gains or loss on short term and long term investments are reported as a component of other comprehensive income. The Company does not anticipate any significant realized losses associated with those investments in excess of the Company’s historical cost.

As of March 31, 2015 and December 31, 2014, the carrying value of the Company’s financial assets and liabilities measured at amortized cost approximated their fair value mainly because of its short term maturity. These assets and liabilities included cash and cash equivalents (excluding money markets funds), accounts receivables, credit card receivables, funds payable to customers, other receivables, other assets, accounts payables, social security payables, taxes payables, provisions and other liabilities. The convertible senior notes, the rest of the loans payable and other financial liabilities approximate their fair value because the interest rates are not materially different from market interest rates.

In addition, as of March 31, 2015 and December 31, 2014, the Company had $55,756 thousands and $58,475 thousands of short-term investments, respectively, which consisted of time deposits.

Those investments are accounted for at amortized cost which, as of March 31, 2015 and December 31, 2014, approximates their fair values.

The following table summarizes the fair value level for those financial assets and liabilities of the Company measured at amortized cost as of March 31, 2015 and December 31, 2014:


	Balances as of	Significant other	Balances as of	Significant other
	March 31,	observable inputs	December 31,	observable inputs
	2015	(Level 2)	2014	(Level 2)
	(In thousands)
Assets
Time Deposits	$ 55,756	$ 55,756	$ 58,475	$ 58,475
Accounts receivable	54,054	54,054	46,672	46,672
Credit Cards receivable	133,644	133,644	85,162	85,162
Prepaid expenses	6,433	6,433	3,458	3,458
Other assets	35,318	35,318	37,718	37,718
Total Assets	$ 285,205	$ 285,205	$ 231,485	$ 231,485

Liabilities

Accounts and funds payable	$ 58,160	$ 58,160	$ 58,006	$ 58,006
Funds payable to customers	193,188	193,188	165,034	165,034
Salaries and social security payable	23,755	23,755	18,835	18,835
Tax payable	23,733	23,733	26,013	26,013
Dividends payable	4,548	4,548	7,330	7,330
Loans payable and other financial liabilities	287,745	287,745	283,826	283,826
Other liabilities	4,564	4,564	5,524	5,524
Total Liabilities	$ 595,693	$ 595,693	$ 564,568	$ 564,568

As of March 31, 2015 and December 31, 2014, the Company held no direct investments in auction rate securities, collateralized debt obligations or structured investment vehicles, and does not have any non-financial assets or liabilities measured at fair value.

As of March 31, 2015 and December 31, 2014, the fair value of money market funds, short and long-term investments classified as available for sale securities are as follows:


	March 31, 2015
	(In thousands)
	Cost	Gross Unrealized Gains	Gross Unrealized Losses (1)	Estimated Fair Value
Cash and cash equivalents
Money Market Funds	$ 35,543	$ 5	$ (28)	$ 35,520
Corporate Debt Securities	13,495	—	(4)	13,491
Total Cash and cash equivalents	$ 49,038	$ 5	$ (32)	$ 49,011

Short-term investments
Sovereign Debt Securities	$ 651	$ —	$ (1)	$ 650
Corporate Debt Securities	83,884	9	(59)	83,834
Certificates of deposits	7,811	3	(2)	7,812
Total Short-term investments	$ 92,346	$ 12	$ (62)	$ 92,296

Long-term investments
Sovereign Debt Securities	$ 43,339	$ 115	$ (3)	$ 43,451
Corporate Debt Securities	142,837	408	(48)	143,197
Certificates of deposits	3,503	1	—	3,504
Total Long-term investments	$ 189,679	$ 524	$ (51)	$ 190,152

Total	$ 331,063	$ 541	$ (145)	$ 331,459


	December 31, 2014
	(In thousands)
	Cost	Gross Unrealized Gains	Gross Unrealized Losses (1)	Estimated Fair Value
Cash and cash equivalents
Money Market Funds	$ 37,531	$ 2	$ (38)	$ 37,495
Corporate Debt Securities	13,009	—	(5)	13,004
Total Cash and cash equivalents	$ 50,540	$ 2	$ (43)	$ 50,499

Short-term investments
Sovereign Debt Securities	$ 4,726	$ —	$ (4)	$ 4,722
Corporate Debt Securities	81,886	—	(75)	81,811
Certificates of deposit	3,802	1	(1)	3,802
Total Short-term investments	$ 90,414	$ 1	$ (80)	$ 90,335

Long-term investments
Sovereign Debt Securities	$ 44,511	$ —	$ (83)	$ 44,428
Corporate Debt Securities	157,205	22	(395)	156,832
Certificates of deposit	4,007	—	(2)	4,005
Total Long-term investments	$ 205,723	$ 22	$ (480)	$ 205,265

Total	$ 346,677	$ 25	$ (603)	$ 346,099

(1)

Unrealized losses from securities are primarily attributable to market price movements. Management does not believe any remaining unrealized losses represent other-than-temporary impairments based on the evaluation of available evidence including the credit rating of the investments, as of March 31, 2015 and December 31, 2014.

The material portion of the Sovereign Debt Securities is U.S. Treasury Notes with no significant risk associated.

As of March 31, 2015, the estimated fair values (in thousands of U.S. dollars) of money market funds, short-term and long-term investments classified by its effective maturities are as follows:


One year or less		141,307
One year to two years		120,358
Two years to three years		42,660
Three years to four years		15,147
Four years to five years		11,987
More than five years		—
Total		$ 331,459