Table:
|  |  | Year Ended December 31, |  |
| --- | --- | --- | --- |
|  | 2019 | 2018 | 2017 |
| Beginning balance | $3,016 | $2,071 | $— |
| Initial obligation from transfer of Charged-Off Receivables(1) | 2,705 | 2,461 | 2,379 |
| Fair value changes recognized in other gains (losses), net(2) | (1,925) | (1,516) | (308) |
| Ending balance | $3,796 | $3,016 | $2,071 |
Paragraphs:
GreenSky, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(United States Dollars in thousands, except per share data, unless otherwise stated)
The following table reconciles the beginning and ending fair value measurements of our servicing liabilities associated with transferring our rights to Charged-Off Receivables during the periods presented.
(1) Recognized in other gains (losses), net in the Consolidated Statements of Operations.
(2) Represents the reduction of our servicing liabilities due to the passage of time and collection of loan payments.
Question:
What does the net Fair value changes recognized in other gains (losses) represent?
Answer: the reduction of our servicing liabilities due to the passage of time and collection of loan payments.