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Fair Value Measurement of Assets and Liabilities | 6 Months Ended
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Jun. 30, 2015
Fair Value Measurement of Assets and Liabilities [Abstract] |
Fair Value Measurement of Assets and Liabilities | 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 June 30, 201 5 and December 31, 201 4:
|  |  |  | Quoted Prices in |  |  |  |  |  | Quoted Prices in |  |
|  | Balances as of |  | active markets for |  | Significant other |  | Balances as of |  | active markets for |  | Significant other
|  | June 30, |  | 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 |  | $ 52,814 |  | $ 52,814 |  | $ — |  | $ 37,495 |  | $ 37,495 |  | $ —
Sovereign Debt Securities |  | 327 |  | 327 |  | — |  | — |  | — |  | —
Corporate Debt Securities |  | 12,034 |  | — |  | 12,034 |  | 13,004 |  | 108 |  | 12,896
Investments: |  |  |  |  |  |  |  |  |  |  |  |
Sovereign Debt Securities |  | 55,816 |  | 53,874 |  | 1,942 |  | 49,150 |  | 49,150 |  | —
Corporate Debt Securities |  | 242,713 |  | 143,323 |  | 99,390 |  | 238,643 |  | 59,919 |  | 178,724
Certifcates of deposits |  | 9,519 |  | — |  | 9,519 |  | 7,807 |  | — |  | 7,807
Total Financial Assets |  | $ 373,223 |  | $ 250,338 |  | $ 122,885 |  | $ 346,099 |  | $ 146,672 |  | $ 199,427
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Contingent considerations |  | $ 12,075 |  | $ — |  | $ 12,075 |  | $ 4,833 |  | $ — |  | $ 4,833
Total Financial Liabilities |  | $ 12,075 |  | $ — |  | $ 12,075 |  | $ 4,833 |  | $ — |  | $ 4,833
As of June 30, 201 5, 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 June 30, 201 5, 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 June 30, 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 June 30, 201 5 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 June 30, 201 5 and December 31, 2014, the Company had $68,437 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 June 30, 201 5 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 June 30, 201 5 and December 31, 201 4:
|  | Balances as of |  | Significant other |  | Balances as of |  | Significant other
|  | June 30, |  | observable inputs |  | December 31, |  | observable inputs
|  | 2015 |  | (Level 2) |  | 2014 |  | (Level 2)
|  | (In thousands)
Assets |  |  |  |  |  |  |  |
Time Deposits |  | $ 68,437 |  | $ 68,437 |  | $ 58,475 |  | $ 58,475
Accounts receivable |  | 46,123 |  | 46,123 |  | 46,672 |  | 46,672
Credit Cards receivable |  | 130,971 |  | 130,971 |  | 85,162 |  | 85,162
Prepaid expenses |  | 5,332 |  | 5,332 |  | 3,458 |  | 3,458
Other assets |  | 40,750 |  | 40,750 |  | 37,718 |  | 37,718
Total Assets |  | $ 291,613 |  | $ 291,613 |  | $ 231,485 |  | $ 231,485
Liabilities |  |  |  |  |  |  |  |
Accounts and funds payable |  | $ 67,371 |  | $ 67,371 |  | $ 58,006 |  | $ 58,006
Funds payable to customers |  | 197,793 |  | 197,793 |  | 165,034 |  | 165,034
Salaries and social security payable |  | 18,272 |  | 18,272 |  | 18,835 |  | 18,835
Tax payable |  | 37,092 |  | 37,092 |  | 26,013 |  | 26,013
Dividends payable |  | 4,548 |  | 4,548 |  | 7,330 |  | 7,330
Loans payable and other financial liabilities |  | 288,024 |  | 288,024 |  | 283,826 |  | 283,826
Other liabilities |  | 7,428 |  | 7,428 |  | 5,524 |  | 5,524
Total Liabilities |  | $ 620,528 |  | $ 620,528 |  | $ 564,568 |  | $ 564,568
As of June 30, 201 5 and December 31, 201 4, 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 June 30, 201 5 and December 31, 201 4, the fair value of money market funds, short and long-term investments classified as available for sale securities are as follows:
|  | June 30, 2015
|  | (In thousands)
|  | Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses (1) |  | Estimated Fair Value
Cash and cash equivalents |  |  |  |  |  |  |  |
Money Market Funds |  | $ 52,781 |  | $ 33 |  | $ — |  | $ 52,814
Sovereign Debt Securities |  | 327 |  | — |  | — |  | 327
Corporate Debt Securities |  | 12,037 |  | — |  | (3) |  | 12,034
Total Cash and cash equivalents |  | $ 65,145 |  | $ 33 |  | $ (3) |  | $ 65,175
Short-term investments |  |  |  |  |  |  |  |
Sovereign Debt Securities |  | $ 3,273 |  | $ 0 |  | $ (6) |  | $ 3,267
Corporate Debt Securities |  | 88,476 |  | 9 |  | (46) |  | 88,439
Certificates of deposits |  | 7,014 |  | 4 |  | — |  | 7,018
Total Short-term investments |  | $ 98,763 |  | $ 13 |  | $ (52) |  | $ 98,724
Long-term investments |  |  |  |  |  |  |  |
Sovereign Debt Securities |  | $ 52,489 |  | $ 62 |  | $ (2) |  | $ 52,549
Corporate Debt Securities |  | 154,369 |  | 108 |  | (203) |  | 154,274
Certificates of deposits |  | 2,500 |  | 1 |  | — |  | 2,501
Total Long-term investments |  | $ 209,358 |  | $ 171 |  | $ (205) |  | $ 209,324
Total |  | $ 373,266 |  | $ 217 |  | $ (260) |  | $ 373,223
|  | 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 June 30, 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 June 30, 201 5, 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 |  | 163,899
One year to two years |  | 126,528
Two years to three years |  | 57,707
Three years to four years |  | 11,349
Four years to five years |  | 13,740
More than five years |  | -
Total |  | $ 373,223

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13433-108611 + Details
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