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FAIR VALUE OF FINANCIAL INSTRUMENTS
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company measures its cash equivalents, customer funds, short-term and long-term marketable debt securities, and marketable equity investment at fair value. The Company classifies these investments within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs.

The Company’s financial assets and liabilities that are measured at fair value on a recurring basis are classified as follows (in thousands):
September 30, 2021December 31, 2020
Level 1Level 2Level 3Level 1Level 2Level 3
Cash Equivalents:
Money market funds$2,495,120 $— $— $1,694,736 $— $— 
U.S. agency securities— — — — 41,186 — 
Certificates of deposit— 1,500 — — — — 
Commercial paper— 46,150 — — — — 
Corporate bonds— 1,500 — — — — 
U.S. government securities— — — 15,000 — — 
Customer funds:
Money market funds1,485,002 — — 777,193 — — 
Reverse repurchase agreement402,097 — — 246,880 — — 
U.S. agency securities— 53,564 — — 160,478 — 
U.S. government securities546,205 — — 445,142 — — 
Short-term debt securities:
U.S. agency securities— 94,088 — — 154,004 — 
Certificates of deposit— 8,200 — — — — 
Corporate bonds— 290,523 — — 77,199 — 
Commercial paper— 141,551 — — 4,999 — 
Municipal securities— 15,750 — — 10,431 — 
U.S. government securities308,323 — — 405,434 — — 
Foreign government securities— 10,374 — — 43,045 — 
Long-term debt securities:
U.S. agency securities— 152,691 — — 169,278 — 
Corporate bonds— 704,097 — — 176,014 — 
Municipal securities— 21,965 — — 1,060 — 
U.S. government securities543,180 — — 92,073 — — 
Foreign government securities— 29,174 — — 25,525 — 
Other:
Investment in marketable equity security— — — 376,258 — — 
Total$5,779,927 $1,571,127 $— $4,052,716 $863,219 $— 

The carrying amounts of certain financial instruments, including settlements receivable, loans held for investment, accounts payable, customers payable, accrued expenses and settlements payable, approximate their fair values due to their short-term nature.
The Company estimates the fair value of its convertible and senior notes based on their last actively traded prices (Level 1) or market observable inputs (Level 2). The estimated fair value and carrying value of the convertible and senior notes were as follows (in thousands):
September 30, 2021December 31, 2020
Carrying Value Fair Value (Level 2)Carrying ValueFair Value (Level 2)
2031 Senior Notes$986,420 $1,032,250 $— $— 
2026 Senior Notes986,924 1,017,070 — — 
2027 Convertible Notes566,873 685,297 458,496 644,000 
2026 Convertible Notes567,195 659,404 482,204 638,250 
2025 Convertible Notes989,599 2,051,760 858,332 1,912,440 
2023 Convertible Notes640,818 1,982,159 780,046 2,417,820 
2022 Convertible Notes4,637 48,830 7,846 80,731 
Total$4,742,466 $7,476,770 $2,586,924 $5,693,241 


The estimated fair value and carrying value of loans held for sale and loans held for investment is as follows (in thousands):
September 30, 2021December 31, 2020
Carrying ValueFair Value (Level 3)Carrying ValueFair Value (Level 3)
Loans held for sale$708,086 $824,640 $462,665 $467,805 
Loans held for investment79,482 83,760 — — 
Total$787,568 $908,400 $462,665 $467,805 

As of September 30, 2021, $605.4 million of the carrying value of loans held for sale was attributable to loans under the PPP. As the loans under the PPP qualify for forgiveness if certain criteria are met or are guaranteed by the U.S. government through the Small Business Administration ("SBA"), the related credit losses as of September 30, 2021 were immaterial. As of September 30, 2021, $434.2 million in PPP loans held for sale have been forgiven by the SBA, of which $97.6 million and $387.9 million have been forgiven in the three and nine months ended September 30, 2021, respectively. The loan forgiveness resulted in the recognition of $13.3 million and $37.6 million revenue associated with the forgiveness of the PPP loans for the three and nine months ended September 30, 2021, respectively. The Company approved and funded the last of its remaining PPP applications upon exhaustion of the funds in the program on May 21, 2021.

For the three and nine months ended September 30, 2021, the Company recorded a charge for the excess of amortized cost over fair value of the loans held for sale of $4.4 million and $6.0 million, respectively. For the three and nine months ended September 30, 2020, the Company recorded a charge for the excess of amortized cost over fair value of the loans of $3.2 million and $25.7 million, respectively. To determine the fair value of the loans held for sale, the Company utilizes industry-standard valuation modeling, such as discounted cash flow models, taking into account the estimated timing and amounts of periodic repayments. In estimating the expected timing and amounts of the future periodic repayments for the loans outstanding as of September 30, 2021, the Company considered other relevant market data in developing such estimates and assumptions, including the continuing impact of the COVID-19 pandemic. With respect to PPP loans, the Company also considers the impact of government guarantees and loan forgiveness on the timing and amounts of future cash flows. As of September 30, 2021, there were no material changes to our estimates, and the Company will continue to evaluate facts and circumstances that could impact our estimates and affect our results of operations in future periods.

If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. During the three and nine months ended September 30, 2021 and 2020, the Company did not have any transfers in or out of Level 1, Level 2, or Level 3 assets or liabilities.