| NOTE 7:- | FAIR VALUE MEASUREMENT |
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers counterparty credit risk in its assessment of fair value.
The Company’s financial assets and liabilities measured at fair value on a recurring basis, including accrued interest components, consisted of the following types of instruments as of December 31, 2016 and 2017:
| Fair value measurements | ||||||||||||||||
| December 31, 2017 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Government and corporate debentures | $ | - | $ | 12,929 | $ | - | $ | 12,929 | ||||||||
| Convertible debentures | - | 1,209 | - | 1,209 | ||||||||||||
| Dividend preference derivative in TSG (1) | - | - | 2,400 | 2,400 | ||||||||||||
| Total financial assets | $ | - | $ | 14,138 | $ | 2,400 | $ | 16,538 | ||||||||
| Liabilities: | ||||||||||||||||
| Redeemable non-controlling interests (2) | $ | - | $ | - | $ | 52,876 | $ | 52,876 | ||||||||
| Contingent consideration (2) | - | - | 6,769 | 6,769 | ||||||||||||
| Total financial liabilities | $ | - | $ | - | $ | 59,645 | $ | 59,645 | ||||||||
| Fair value measurements | ||||||||||||||||
| December 31, 2016 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Equity securities | $ | 1,001 | $ | - | $ | - | $ | 1,001 | ||||||||
| Government and corporate debentures | 6,019 | 47,724 | - | 53,743 | ||||||||||||
| Dividend preference derivative in TSG (1) | - | - | 2,140 | 2,140 | ||||||||||||
| Total financial assets | $ | 7,020 | $ | 47,724 | $ | 2,140 | $ | 56,884 | ||||||||
| Liabilities: | ||||||||||||||||
| Redeemable non-controlling interests (2) | $ | - | $ | - | $ | 46,484 | *) | $ | 46,484 | |||||||
| Contingent consideration (2) | - | - | 10,218 | *) | 10,218 | |||||||||||
| Total financial liabilities | $ | - | $ | - | $ | 56,702 | $ | 56,702 | ||||||||
(1) The fair value of dividend preference derivative in TSG was estimated using the Monte-Carlo simulation technique.
(2) The fair value of redeemable non-controlling interests and contingent consideration was determined based on the present value of the future expected cash flow.
*) Adjustment to comparative data