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 September 30, 2018 and December 31, 2017:


		Quoted Prices in				Quoted Prices in
	Balances as of	active markets for	Significant other	Unobservable	Balances as of	active markets for	Significant other	Unobservable
	September 30,	identical Assets	observable inputs	inputs	December 31,	identical Assets	observable inputs	inputs
Description	2018	(Level 1)	(Level 2)	(Level 3)	2017	(Level 1)	(Level 2)	(Level 3)
	(In thousands)
Assets
Cash and Cash Equivalents:
Money Market Funds	$ 272,258	$ 272,258	$ —	$ —	$ 85,337	$ 85,337	$ —	$ —
Restricted Cash and cash equivalents:
Money Market Funds	$ 49,151	49,151	—		—	—	—	—
Investments:
Sovereign Debt Securities	$ 200	$ 200	$ —	$ —	$ 15,896	$ 15,896	$ —	$ —
Corporate Debt Securities	294	289	5	—	24,313	15,512	8,801
Other Assets:
Derivative Instruments	$ 3,144	$ —	$ 3,144	—	$ —	$ —	$ —	$ —
Total Financial Assets	$ 325,047	$ 321,898	$ 3,149	$ —	$ 125,546	$ 116,745	$ 8,801
Liabilities:
Contingent considerations	$ 1,193	$ —	$ —	$ 1,193	$ —	$ —	$ —	$ —
Long-term retention plan	44,167	—	44,167	—	43,227	—	43,227	—
Total Financial Liabilities	$ 45,360	$ —	$ 44,167	$ 1,193	$ 43,227	$ —	$ 43,227	$ —

As of September 30, 2018 and December 31, 2017, 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: obtained from readily-available pricing sources for comparable instruments as well as instruments with inactive markets at the measurement date.

As of September 30, 2018 and December 31, 2017, the Company´s liabilities were valued at fair value using level 2 inputs and level 3 inputs (valuations based on unobservable inputs reflecting Company assumptions). Fair value of contingent considerations are determined based on the probability of achievement of the performance targets arising from each acquisition, as well as the Company’s historical experience with similar arrangements. During the nine-month period ended September 30, 2018, the Company assumed contingent considerations for an amount of $1,193 thousands.

The unrealized net gains or losses 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 September 30, 2018 and December 31, 2017, the carrying value of the Company’s financial assets and liabilities measured at amortized cost approximated their fair value mainly because of their short-term maturity. These assets and liabilities included cash, cash equivalents, restricted cash and cash equivalents and short-term investments (excluding money markets funds and corporate debt security), accounts receivable, credit cards receivable, loans receivable, funds payable to customers, other assets (excluding derivative instruments), accounts payable, salaries and social security payable (excluding variable LTRP), taxes payable, provisions and other liabilities (excluding contingent considerations). The carrying values of the 2019 Notes (liability component) and the 2028 Notes (liability component) approximate their fair value because the discount rates used for the initial accounting are not materially different from market interest rates. The rest of the loans payable and other financial liabilities approximate their fair value because the contractual 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 September 30, 2018 and December 31, 2017:



	Balances as of	Significant other	Balances as of	Significant other
	September 30,	observable inputs	December 31,	observable inputs
	2018	(Level 2)	2017	(Level 2)
	(In thousands)
Assets
Time Deposits	$ 66,980	$ 66,980	$ 202,820	$ 202,820
Accounts receivable	27,141	27,141	28,168	28,168
Credit Cards receivable	266,461	266,461	521,130	521,130
Loans receivable, net	90,827	90,827	73,409	73,409
Other assets	94,777	94,777	101,552	101,552
Total Assets	$ 546,186	$ 546,186	$ 927,079	$ 927,079
Liabilities
Accounts payable and accrued expenses	$ 230,999	$ 230,999	$ 221,095	$ 221,095
Funds payable to customers	525,089	525,089	583,107	583,107
Salaries and social security payable	36,594	36,594	46,828	46,828
Taxes payable	22,740	22,740	32,150	32,150
Dividends payable	—	—	6,624	6,624
Loans payable and other financial liabilities (*)	696,332	696,332	368,414	379,500
Other liabilities	27,163	27,163	22,144	22,144
Total Liabilities	$ 1,538,917	$ 1,538,917	$ 1,280,362	$ 1,291,448

(*) The fair value of the 2019 Notes and the 2028 Notes (including the equity component) are disclosed in Note 9.

As of September 30, 2018 and December 31, 2017, the Company held no direct investments in auction rate securities and does not have any non-financial assets or liabilities measured at fair value.

As of September 30, 2018 and December 31, 2017, the fair value of money market funds, short and long-term investments classified as available for sale securities are as follows:



	September 30, 2018
	Cost	Gross Unrealized Gains (1)	Gross Unrealized Losses (1)	Estimated Fair Value

	(In thousands)
Cash and cash equivalents
Money Market Funds	$ 272,258	$ —	$ —	$ 272,258
Total Cash and cash equivalents	$ 272,258	$ —	$ —	$ 272,258

Restricted cash and cash equivalents
Money Market Funds	$ 49,151	$ —	$ —	$ 49,151
Total Restricted cash and cash equivalents	$ 49,151	$ —	$ —	$ 49,151

Short-term investments
Sovereign Debt Securities	12	—	—	12
Corporate Debt Securities	49	—	—	49
Total Short-term investments	$ 61	$ —	$ —	$ 61

Long-term investments
Sovereign Debt Securities	$ 190	$ —	$ (2)	$ 188
Corporate Debt Securities	249	—	(4)	245
Total Long-term investments	$ 439	$ —	$ (6)	$ 433


Total	$ 321,909	$ —	$ (6)	$ 321,903


	December 31, 2017
	Cost	Gross Unrealized Gains (1)	Gross Unrealized Losses (1)	Estimated Fair Value

	(In thousands)
Cash and cash equivalents
Money Market Funds	$ 85,337	$ —	$ —	$ 85,337
Total Cash and cash equivalents	$ 85,337	$ —	$ —	$ 85,337

Short-term investments
Sovereign Debt Securities	$ 2,235	$ —	$ (10)	$ 2,225
Corporate Debt Securities	4,396	—	(9)	4,387
Total Short-term investments	$ 6,631	$ —	$ (19)	$ 6,612

Long-term investments
Sovereign Debt Securities	$ 13,821	$ —	$ (150)	$ 13,671
Corporate Debt Securities	20,054	—	(128)	19,926
Total Long-term investments	$ 33,875	$ —	$ (278)	$ 33,597

Total	$ 125,843	$ —	$ (297)	$ 125,546

(1)

Unrealized gains (losses) from securities are attributable to market price movements, net foreign exchange losses and foreign currency translation. 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 September 30, 2018 and December 31, 2017.

The material portion of the Sovereign Debt Securities consists of U.S. Treasury Notes, which carry no significant risk.

As of September 30, 2018, the estimated fair values (in thousands of U.S. dollars) of cash equivalents, restricted cash and cash equivalents, short-term and long-term investments classified by their effective maturities are as follows:


One year or less		$ 321,470
One year to two years		213
Two years to three years		191
Three years to four years		24
Four years to five years		5
Total		$ 321,903