Pandora 2016 Annual Report Download - page 95

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Ticketing amounts due to clients consists of the face value of tickets sold and the revenue share costs related to tickets
sold on the Ticketfly ticketing platform that are owed to clients. The face value of tickets sold on the Ticketfly ticketing
platform is collected by Ticketfly and remitted to clients. Revenue share costs owed to clients related to tickets sold on the
Ticketfly ticketing platform consist of fees paid to clients for their share of convenience and order processing fees.
Other Long-Term Liabilities
Other long-term liabilities consisted of the following as of December€31, 2014 and 2015:
As of December 31,
2014 2015
(in thousands)
Other long-term liabilities
Long-term deferred rent $15,068 $23,662
Other 1,705 7,200
Total other long-term liabilities $16,773 $30,862
For operating leases that include escalation clauses over the term of the lease, tenant improvement reimbursements and
rent abatement periods, we recognize rent expense on a straight-line basis over the lease term including expected renewal
periods. The difference between rent expense and rent payments is recorded as deferred rent.
Table of Contents
Pandora Media,€Inc.
Notes to Consolidated Financial Statements - Continued
84
4.€€€€€€€€€€€€€€€€€€€€€€ Fair Value
€
We record cash equivalents and investments at fair value. Fair value is an exit price, representing the amount that would
be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As
such, fair value is a market-based measurement that should be determined based on assumptions that market participants would
use in pricing an asset or liability. Fair value measurements are required to be disclosed by level within the following fair value
hierarchy:
€
Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement
date.
€
Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or
liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.
€
Level 3 — Inputs lack observable market data to corroborate management’s estimate of what market participants would
use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation
technique and the risk inherent in the inputs to the model.
€
When determining fair value, whenever possible we use observable market data and rely on unobservable inputs only
when observable market data is not available.
€
The fair value of these financial assets and liabilities was determined using the following inputs at December€31, 2014
and 2015:
€