Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Hierarchy of Financial Assets and Liabilities under FASB Guidance

The following tables set forth by level within the fair value hierarchy financial assets and liabilities accounted for at fair value under FASB guidance at March 31, 2017 and December 31, 2016 (in thousands):

	Assets at Fair Value at March 31, 2017
	Level 1		Level 2		Level 3		Netting and Collateral			Total
Marketable securities	$	163,208	$	—	$	—	$	—		$	163,208
Government debt		33,777		—		—		—			33,777
Securities owned—Equities		311		—		—		—			311
Forwards		—		12		—		—			12
Foreign exchange swaps		—		4,394		—		(468	)		3,926
Interest rate swaps		—		237		—		(3	)		234
Futures		—		—		—		—			—
Foreign exchange/commodities options		—		—		—		—			—
Total	$	197,296	$	4,643	$	—	$	(471	)	$	201,468

	Liabilities at Fair Value at March 31, 2017
	Level 1		Level 2		Level 3		Netting and Collateral			Total
Forwards	$	—	$	3,219	$	—	$	—		$	3,219
Futures		—		2,037		—		—			2,037
Government debt		—		—		—		—			—
Foreign exchange/commodities options		80		—		—		—			80
Foreign exchange swaps		—		6,166		—		(468	)		5,698
Interest rate swaps		—		3		—		(3	)		—
Contingent consideration		—		—		52,737		—			52,737
Total	$	80	$	11,425	$	52,737	$	(471	)	$	63,771

	Assets at Fair Value at December 31, 2016
	Level 1		Level 2		Level 3		Netting and Collateral			Total
Marketable securities	$	164,820	$	—	$	—	$	—		$	164,820
Government debt		35,190		—		—		—			35,190
Securities owned—Equities		167		—		—		—			167
Forwards		—		57		—		(22	)		35
Foreign exchange swaps		—		3,441		—		(495	)		2,946
Interest rate swaps		—		231		—		(29	)		202
Foreign exchange/commodities options		244		—		—		—			244
Total	$	200,421	$	3,729	$	—	$	(546	)	$	203,604

	Liabilities at Fair Value at December 31, 2016
	Level 1		Level 2		Level 3		Netting and Collateral			Total
Forwards	$	—	$	58	$	—	$	(22	)	$	36
Foreign exchange swaps		—		1,472		—		(495	)		977
Futures		—		512		—		—			512
Interest rate swaps		—		29		—		(29	)		—
Foreign exchange/commodities options		41		—		—		—			41
Contingent consideration		—		—		55,614		—			55,614
Total	$	41	$	2,071	$	55,614	$	(546	)	$	57,180

Changes in Level 3 Contingent Consideration Measured at Fair Value on Recurring Basis

Changes in Level 3 contingent consideration measured at fair value on a recurring basis for the three months ended March 31, 2017 are as follows (in thousands):

	Opening Balance		Total realized and unrealized gains (losses) included in Net income (loss) ⁽¹⁾			Unrealized gains (losses) included in Other comprehensive income (loss)			Issuances		Settlements			Closing Balance at March 31, 2017		Unrealized gains (losses) for Level 3 Assets / Liabilities Outstanding at March 31, 2017
Liabilities
Accounts payable, accrued and other liabilities:
Contingent consideration	$	55,614	$	(1,042	)	$	(44	)	$	6,190	$	(10,153	)	$	52,737	$	(1,087	)

⁽¹⁾	Realized and unrealized gains (losses) are reported in “Other expenses” and “Other income (loss),” as applicable, in the Company’s unaudited condensed consolidated statements of operations.

Changes in Level 3 contingent consideration measured at fair value on a recurring basis for the three months ended March 31, 2016 are as follows (in thousands):

	Opening Balance		Total realized and unrealized gains (losses) included in Net income (loss) ⁽¹⁾		Unrealized gains (losses) included in Other comprehensive income (loss)			Issuances		Settlements			Closing Balance at March 31, 2016		Unrealized gains (losses) for Level 3 Assets / Liabilities Outstanding at March 31, 2016
Liabilities
Accounts payable, accrued and other liabilities:
Contingent consideration	$	65,043	$	4	$	(5	)	$	833	$	(1,540	)	$	64,337	$	1

⁽¹⁾	Realized and unrealized gains (losses) are reported in “Other expenses” and “Other income (loss),” as applicable, in the Company’s unaudited condensed consolidated statements of operations.

Offsetting of Derivative Instruments and Collateralized Transactions

The following tables present information about the offsetting of derivative instruments and collateralized transactions as of March 31, 2017 and December 31, 2016 (in thousands):

	March 31, 2017
					Net Amounts Presented in the		Gross Amounts Not Offset
	Gross Amounts		Gross Amounts Offset		Statements of Financial Condition		Financial Instruments		Cash Collateral Received		Net Amount
Assets
Forwards	$	12	$	—	$	12	$	—	$	—	$	12
Foreign exchange swaps		4,394		468		3,926		—		—		3,926
Interest rate swaps		237		3		234		—		—		234
Foreign exchange/commodities options		—		—		—		—		—		—
Total	$	4,643	$	471	$	4,172	$	—	$	—	$	4,172
Liabilities
Forwards	$	3,219	$	—	$	3,219	$	—	$	—	$	3,219
Foreign exchange swaps		6,166		468		5,698		—		—		5,698
Interest rate swaps		3		3		—		—		—		—
Futures		2,037		—		2,037		—		—		2,037
Foreign exchange/commodities options		80		—		80		—		—		80
Total	$	11,505	$	471	$	11,034	$	—	$	—	$	11,034

	December 31, 2016
					Net Amounts Presented in the		Gross Amounts Not Offset
	Gross Amounts		Gross Amounts Offset		Statements of Financial Condition		Financial Instruments		Cash Collateral Received		Net Amount
Assets
Forwards	$	57	$	22	$	35	$	—	$	—	$	35
Foreign exchange swaps		3,441		495		2,946		—		—		2,946
Interest rate swaps		231		29		202		—		—		202
Foreign exchange /commodities options		244		—		244		—		—		244
Total	$	3,973	$	546	$	3,427	$	—	$	—	$	3,427
Liabilities
Forwards	$	58	$	22	$	36	$	—	$	—	$	36
Foreign exchange swaps		1,472		495		977		—		—		977
Interest rate swaps		29		29		—		—		—		—
Futures		512		—		512		—		—		512
Foreign exchange /commodities options		41		—		41		—		—		41
Total	$	2,112	$	546	$	1,566	$	—	$	—	$	1,566

Quantitative Information about Level 3 Fair Value Measurements

The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurement of Level 3 assets and liabilities measured at fair value on a recurring basis (in thousands):

Fair Value

as of

March 31,

2017

Valuation Technique

Unobservable Inputs

Range

Weighted

Average

Liabilities

Accounts payable, accrued and other liabilities:

Contingent consideration

52,737

Present value of

expected payments

Discount rate

Probability of meeting earnout

3.3%-9.2%

75%-100%

7.3%

94% (1)

(1)	The probability of meeting the earnout targets as of March 31, 2017 was based on the acquired businesses’ projected future financial performance, including revenues.