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, 2016 and December 31, 2015:



		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	2016	(Level 1)	(Level 2)	2015	(Level 1)	(Level 2)
	(In thousands)
Assets
Cash and Cash Equivalents:
Money Market Funds	$ 47,669	$ 47,669	$ —	$ 46,423	$ 46,423	$ —
Corporate Debt Securities	8,864	—	8,864	15,785	—	15,785
Investments:
Sovereign Debt Securities	$ 65,981	$ 63,076	$ 2,905	$ 69,302	$ 64,264	$ 5,038
Corporate Debt Securities	248,099	153,683	94,416	232,257	51,974	180,283
Certificates of deposit	12,524	—	12,524	11,516	—	11,516
Total Financial Assets	$ 383,137	$ 264,428	$ 118,709	$ 375,283	$ 162,661	$ 212,622
Liabilities:
Contingent considerations	$ 11,048	$ —	$ 11,048	$ 9,007	$ —	$ 9,007
Long-term retention plan	$ 13,060	—	13,060	17,159	—	17,159
Total Financial Liabilities	$ 24,108	$ —	$ 24,108	$ 26,166	$ —	$ 26,166

As of March 31, 2016 and December 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, 2016, 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, 2016 and December 31, 2015, the Company´s liabilities valued at fair value 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, 2016 and December 31, 2015, 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.

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, 2016 and December 31, 2015:



	Balances as of	Significant other	Balances as of	Significant other
	March 31,	observable inputs	December 31,	observable inputs
	2016	(Level 2)	2015	(Level 2)
	(In thousands)
Assets
Time Deposits	$ 56,854	56,854	$ 76,658	76,658
Accounts receivable	47,118	47,118	28,428	28,428
Credit Cards receivable	193,666	193,666	131,946	131,946
Other assets	63,605	63,605	53,532	53,532
Total Assets	$ 361,243	$ 361,243	$ 290,564	$ 290,564
Liabilities
Accounts payable and accrued expenses	$ 77,180	$ 77,180	$ 62,038	$ 62,038
Funds payable to customers	230,000	230,000	203,247	203,247
Salaries and social security payable	29,979	29,979	26,181	26,181
Tax payable	25,139	25,139	10,092	10,092
Dividends payable	6,624	6,624	4,548	4,548
Loans payable and other financial liabilities	298,960	298,960	296,307	296,307
Other liabilities	10,093	10,093	8,520	8,520
Total Liabilities	$ 677,975	$ 677,975	$ 610,933	$ 610,933

As of March 31, 2016 and December 31, 2015, 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, 2016 and December 31, 2015, the fair value of money market funds, short and long-term investments classified as available for sale securities are as follows:



	March 31, 2016
	Cost	Gross Unrealized Gains	Gross Unrealized Losses (1)	Estimated Fair Value

	(In thousands)
Cash and cash equivalents
Money Market Funds	$ 47,669	$ —	$ —	$ 47,669
Corporate Debt Securities	8,868	—	(4)	8,864
Total Cash and cash equivalents	$ 56,537	$ —	$ (4)	$ 56,533

Short-term investments
Sovereign Debt Securities	$ 8,973	$ 3	$ —	$ 8,976
Corporate Debt Securities	118,250	41	(73)	118,218
Certificates of deposit	11,521	3	(3)	11,521
Total Short-term investments	$ 138,744	$ 47	$ (76)	$ 138,715

Long-term investments
Sovereign Debt Securities	$ 56,783	$ 222	$ —	$ 57,005
Corporate Debt Securities	129,386	610	(115)	129,881
Certificates of deposit	1,002	1	—	1,003
Total Long-term investments	$ 187,171	$ 833	$ (115)	$ 187,889

Total	$ 382,452	$ 880	$ (195)	$ 383,137


	December 31, 2015
	Cost	Gross Unrealized Gains	Gross Unrealized Losses (1)	Estimated Fair Value

	(In thousands)
Cash and cash equivalents
Money Market Funds	$ 46,423	$ —	$ —	$ 46,423
Corporate Debt Securities	15,796	—	(11)	15,785
Total Cash and cash equivalents	$ 62,219	$ —	$ (11)	$ 62,208

Short-term investments
Sovereign Debt Securities	$ 13,981	$ —	$ (19)	$ 13,962
Corporate Debt Securities	103,130	4	(157)	102,977
Certificates of deposit	8,516	1	(2)	8,515
Total Short-term investments	$ 125,627	$ 5	$ (178)	$ 125,454

Long-term investments
Sovereign Debt Securities	$ 55,536	$ 53	$ (249)	$ 55,340
Corporate Debt Securities	129,921	18	(659)	129,280
Certificates of deposit	3,003	—	(2)	3,001
Total Long-term investments	$ 188,460	$ 71	$ (910)	$ 187,621

Total	$ 376,306	$ 76	$ (1,099)	$ 375,283

(1)

Unrealized losses from securities are primarily attributable to market price movements. Management does not believe any remaining significant 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, 2016 and December 31, 2015.

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

As of March 31, 2016, the estimated fair values (in thousands of U.S. dollars) of cash equivalents, short-term and long-term investments classified by its effective maturities are as follows:


One year or less		195,248
One year to two years		102,721
Two years to three years		60,613
Three years to four years		11,444
Four years to five years		13,005
More than five years		106
Total		$ 383,137