Fair Value (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2013

Dec. 31, 2012

Fair Value [Abstract]

Fair value of assets and liabilities measured on a recurring basis

The following tables summarize the valuation of our financial instruments by pricing observability levels as of June 30, 2013 and December 31, 2012:

	June 30, 2013
	Level 1		Level 2		Level 3		Total
	(in thousands)
Money markets	$	275,458	$	—	$	—	$	275,458
U.S. Treasury Bills		—		824,061		—		824,061
U.K. Treasury Bills		—		117		—		117
Equity securities
Growth		116,486		—		—		116,486
Value		36,356		—		—		36,356
Multi-asset and asset allocation		50,195		—		—		50,195
Other(1)		56,399		—		—		56,399
Fixed Income securities
Taxable(2)		146,730		2,968		—		149,698
Tax-exempt(3)		5,227		795		—		6,022
Derivatives		1,619		6,007		—		7,626
Long exchange-traded options		13,074		—		—		13,074
Private equity		5,229		19,221		61,426		85,876
Total assets measured at fair value	$	706,773	$	853,169	$	61,426	$	1,621,368
Securities sold not yet purchased
Short equities—corporate	$	37,769	$	—	$	—	$	37,769
Short exchange-traded options		15,065		—		—		15,065
Derivatives		70		1,208		—		1,278
Total liabilities measured at fair value	$	52,904	$	1,208	$	—	$	54,112

	December 31, 2012
	Level 1		Level 2		Level 3		Total
	(in thousands)
Money markets	$	170,120	$	—	$	—	$	170,120
U.S. Treasury Bills		—		1,537,150		—		1,537,150
U.K. Treasury Bills		—		125		—		125
Equity securities
Growth		125,242		—		—		125,242
Value		36,126		—		—		36,126
Multi-asset and asset allocation		59,449		—		—		59,449
Other(1)		39,702		—		—		39,702
Fixed Income securities
Taxable(2)		177,635		1,219		—		178,854
Tax-exempt(3)		5,661		797		—		6,458
Derivatives		64		2,561		—		2,625
Long exchange-traded options		15,087		—		—		15,087
Private equity		7,695		—		76,953		84,648
Total assets measured at fair value	$	636,781	$	1,541,852	$	76,953	$	2,255,586
Securities sold not yet purchased
Short equities—corporate	$	54,370	$	—	$	—	$	54,370
Short exchange-traded options		9,197		—		—		9,197
Other		271		—		—		271
Derivatives		1,598		5,472		—		7,070
Total liabilities measured at fair value	$	65,436	$	5,472	$	—	$	70,908

(1)

Primarily long positions in corporate equities traded through our options desk.

(2)

Primarily corporate and government securities.

(3)

Primarily municipal bonds.

The following table summarizes the valuation of our financial instruments by pricing observability levels as of December 31, 2012 and 2011:

	December 31, 2012
	Level 1		Level 2		Level 3		Total
	(in thousands)
Money markets	$	170,120	$	—	$	—	$	170,120
U.S. Treasury bills		—		1,537,150		—		1,537,150
U.K. Treasury bills		—		125		—		125
Equity securities
Growth		125,242		—		—		125,242
Value		36,126		—		—		36,126
Multi-asset and asset allocation		59,449		—		—		59,449
Other(1)		39,702		—		—		39,702
Fixed Income securities
Taxable(2)		177,635		1,219		—		178,854
Tax-exempt(3)		5,661		797		—		6,458
Derivatives		64		2,561		—		2,625
Long exchange-traded options		15,087		—		—		15,087
Private equity		7,695		—		76,953		84,648
Total assets measured at fair value	$	636,781	$	1,541,852	$	76,953	$	2,255,586
Securities sold not yet purchased
Short equities-corporate	$	54,370	$	—	$	—	$	54,370
Short exchange-traded options		9,197		—		—		9,197
Other		271		—		—		271
Derivatives		1,598		5,472		—		7,070
Total liabilities measured at fair value	$	65,436	$	5,472	$	—	$	70,908

	December 31, 2011
	Level 1		Level 2		Level 3		Total
	(in thousands)
Money markets	$	340,548	$	—	$	—	$	340,548
U.S. Treasury bills		—		1,277,944		—		1,277,944
U.K. Treasury bills		—		119		—		119
Equity securities
Growth		107,802		189		—		107,991
Value		60,096		9		—		60,105
Blend		118,208		—		—		118,208
Other(1)		45,583		—		—		45,583
Fixed Income securities
Taxable(2)		110,062		14,488		—		124,550
Tax-exempt(3)		15,366		743		—		16,109
Other		17		—		—		17
Derivatives		127		3,494		—		3,621
Long exchange-traded options		14,322		—		—		14,322
Private equity		11,592		—		64,466		76,058
Total assets measured at fair value	$	823,723	$	1,296,986	$	64,466	$	2,185,175
Securities sold not yet purchased
Short equities-corporate	$	34,469	$	—	$	—	$	34,469
Short exchange-traded options		3,567		—		—		3,567
Other		1,271		—		—		1,271
Derivatives		2,054		5,205		—		7,259
Total liabilities measured at fair value	$	41,361	$	5,205	$	—	$	46,566

(1) Primarily long positions in corporate equities traded through our options desk.

(2) Primarily corporate and government securities.

(3) Primarily municipal bonds.

Fair value measurement Level 3 reconciliation

The following table summarizes the change in carrying value associated with Level 3 financial instruments carried at fair value:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in thousands)
Balance as of beginning of period	$	74,853		$	58,235		$	76,953		$	64,466
Transfers out		(19,220	)		—			(19,220	)		(13,548	)
Purchases		87			1,988			97			3,833
Sales		(34	)		(1,823	)		(34	)		(1,823	)
Realized gains (losses), net		(6,581	)		855			(6,581	)		855
Unrealized gains (losses), net		12,321			(1,347	)		10,211			4,125
Balance as of end of period	$	61,426		$	57,908		$	61,426		$	57,908

The following table summarizes the change in carrying value associated with Level 3 financial instruments carried at fair value:

	December 31, 2012			December 31, 2011
	(in thousands)
Balance as of beginning of period	$	64,466		$	59,414
Transfers (out) in, net		(13,548	)		(3,588	)
Purchases		19,660			10,002
Sales		(1,823	)		(214	)
Realized gains (losses), net		(7,524	)		(3,106	)
Unrealized gains (losses), net		15,722			1,958
Balance as of end of period	$	76,953		$	64,466

Information about Level 3 fair value measurements

The following table provides quantitative information about Level 3 fair value measurements:

	Fair Value as of June 30, 2013			Valuation Technique	Unobservable Input	Range
	(in thousands)
Private Equity:
Technology, Media and Telecommunications		$	23,256	Market comparable companies	Revenue multiple		2.5 – 6.0
					Discount rate		18	%
					Discount years		1.5
Healthcare and Cleantech		$	1,849	Market comparable companies	Revenue multiple(1)		0.7 – 62.5
					R&D multiple(1)		1.0 – 32.4
					Discount for lack of marketability and risk factors		50-60	%

(1) The median for the Healthcare and Cleantech revenue multiple is 8.4; the median R&D multiple is 5.2.

The following table provides quantitative information about Level 3 fair value measurements:

	Fair Value as of December 31, 2012		Valuation Technique	Unobservable Input	Range
	(in thousands)
Private Equity:
Technology, Media and Telecommunications	$	23,256	Market comparable companies	Revenue multiple		2.5  – 6
				Discount rate		18	%
				Discount years		1 – 2
Healthcare and Cleantech	$	14,871	Market comparable companies	Revenue multiple(1)		0.6 – 62.5
				R&D multiple(1)		1.0 – 30.6
				Discount for lack of marketability and risk factors		40-60	%

(1) The median for the Healthcare and Cleantech revenue multiple is 10.1; the majority of the R&D multiples fall between 4.0 and 11.4.