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Fair Value Measurements
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTSThe Company's financial instruments consist of cash equivalents, short-term and long-term investments, accounts receivable, auction rate securities, accounts payable, drawings on revolving lines of credit, long-term debt, interest rate swaps and contingent purchase consideration.
The valuation techniques used to measure fair value are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company classifies its financial instruments according to the prescribed criteria.
The following table presents fair value information related to the Company's assets and liabilities measured at amortized cost on the condensed consolidated balance sheets with the exception of the interest rate swap, which is measured at fair value:
 Fair Value Measurements at September 30, 2020
TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market fund deposits and term deposits$269,955 $269,955 $— $— 
Commercial paper126,563 — 126,563 — 
Corporate bonds25,142 — 25,142 — 
U.S. Treasury and agency obligations11,799 — 11,799 — 
Short-term investments:
Corporate bonds183,827 — 183,827 — 
Commercial paper316,167 — 316,167 — 
U.S. Treasury and agency obligations38,144 — 38,144 — 
Total$971,597 $269,955 $701,642 $— 
Liabilities
Long-term debt$39,436 $— $39,436 $— 
Interest rate swap666 — 666 — 
Total$40,102 $— $40,102 $— 

 Fair Value Measurements at December 31, 2019
TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market fund deposits and term deposits$155,080 $155,080 $— $— 
Commercial paper54,712 — 54,712 — 
Short-term investments:
Corporate bonds259,422 259,422 — — 
Commercial paper236,752 — 236,752 — 
Certificate of deposit6,501 6,501 — — 
 Long-term investments and other assets:
Auction rate securities592 — — 592 
Interest rate swaps13 — 13 — 
Total$713,072 $421,003 $291,477 $592 
Liabilities
Long-term debt$42,004 $— $42,004 $— 
Contingent purchase consideration273 — — 273 
Total$42,277 $— $42,004 $273 
The carrying amounts of money market fund deposits, term deposits, accounts receivable, accounts payable and drawings on revolving lines of credit are considered reasonable estimates of their fair market value due to the short maturity of most of these instruments or as a result of the competitive market interest rates which have been negotiated.
The fair value of the short-term investments considered held-to-maturity as of September 30, 2020 and December 31, 2019 was $538,138 and $502,675, respectively, which include an unrealized gain of $442 and $129, respectively, as compared to the book value recorded on the condensed consolidated balance sheets for the same periods. There were no impairments for the investments considered held-to-maturity during the quarters ended September 30, 2020 and 2019. There were no current expected credit loss allowances for the investments considered held-to-maturity at September 30, 2020. The Company holds highly-rated held-to-maturity instruments that are within one year of maturity.
The auction rate securities were called during the quarter ended September 30, 2020. The net gain previously included in accumulated other comprehensive income was released and included in net income, in the amount of $232. The fair value of the auction rate securities at December 31, 2019 were measured using prices observed in inactive markets with limited observable data for the securities held by the Company. They were considered available-for-sale securities and had a cost basis of $592 at December 31, 2019. There were no impairments for the investments considered available-for-sale during the quarters ended September 30, 2020 and 2019.
The Company entered into an interest rate swap that is designated as a cash flow hedge associated with a long-term note issued during the second quarter of 2016 that will terminate with the long-term note in May 2023. The fair value at September 30, 2020 for the interest rate swap considered pricing models whose inputs are observable for the securities held by the Company.
At September 30, 2020 and December 31, 2019, the Company's long-term notes consisted of a variable rate note and a fixed rate note, and are reported at amortized cost on the condensed consolidated balance sheets. For disclosure purposes, the fair value of the long-term notes was estimated using a discounted cash flow model using observable market interest rates and are classified as a level 2. Based on the discounted cash flow model, the fair value of the long-term notes at September 30, 2020 was $39,436 as compared to the book value of $38,909. At December 31, 2019, the book value approximated fair value.
The fair value of contingent consideration at December 31, 2019 was determined using an income approach at the respective business combination date and at the reporting date. That approach is based on significant inputs that are not observable in the market and include key assumptions such as assessing the probability of meeting certain milestones required to earn the contingent consideration.
The following table presents information about the Company's movement in Level 3 assets and liabilities measured at fair value:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Auction rate securities
Balance, beginning of period$596 $852 $592 $847 
Redemptions(596)(264)(596)(264)
Change in fair value and accretion— 2 4 7 
Balance, end of period$— $590 $— $590 
Contingent purchase consideration
Balance, beginning of period$— $300 $273 $898 
Cash payments— — (272)(632)
Foreign exchange adjustment— (3)(1)31 
Balance, end of period$— $297 $— $297 
The following table presents the effective maturity dates of held-to-maturity and available-for-sale debt investments as of September 30, 2020 and December 31, 2019:
September 30, 2020December 31, 2019
Book ValueFair ValueBook ValueFair Value
Investment maturity
Held-to-maturity:
Less than 1 year$537,696 $538,138 $502,546 $502,675 
Available-for-sale:
Greater than 5 years$— $— $592 $592