Table:
|  | Capped Call | Embedded exchange feature of Notes | Non-marketable investments |
| --- | --- | --- | --- |
|  |  | (U.S. $ in thousands) |  |
| Balance as of June 30, 2017 | $— | $— | $— |
| Purchases | 87,700 | (177,907) | — |
| Gains (losses) |  |  |  |
| Recognized in other non-operating (expense) income, net | 12,232 | (24,646) |  |
| Balance as of June 30, 2018 | 99,932 | (202,553) | — |
| Change in unrealized gains (losses) relating to assets and liabilities held as of June 30, 2018 |  |  |  |
| Recognized in other non-operating income (expense), net | 12,232 | (24,646) | — |
| Balance as of June 30, 2018 | $99,932 | $(202,553) | $— |
| Purchases | — | — | 23,000 |
| Transfer out | — | — | (20,942) |
| Gains (losses) |  |  |  |
| Recognized in finance income | — | — | 270 |
| Recognized in other non-operating (expense) income, net | 114,665 | (648,573) | — |
| Recognized in other comprehensive income | — | — | 672 |
| Balance as of June 30, 2019 | $214,597 | $(851,126) | $3,000 |
| Change in unrealized gains (losses) relating to assets and liabilities held as of June 30, 2019 |  |  |  |
| Recognized in other non-operating income (expense), net | 114,665 | (648,573) | — |
Paragraphs:
Non-marketable investments
Non-marketable equity securities are measured at fair value using market data, such as publicly available financing round valuations. Financial information of private companies may not be available and consequently we will estimate the fair value based on the best available information at the measurement date.
The following table presents the reconciliations of Level 3 financial instrument fair values:
There were transfers out from Level 3 due to initial public offerings of the respective investees during fiscal year 2019. There were no transfers between levels during fiscal year 2018.
Question:
How are non-marketable equity securities measured?
Answer: using market data, such as publicly available financing round valuations