Fair Value (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value of Assets and Liabilities Measured on a Recurring Basis

Valuation of our financial instruments by pricing observability levels as of December 31, 2015 and 2014 was as follows (in thousands):



	Level 1		Level 2		Level 3		Total

December 31, 2015:
Money markets	$	116,445	$	—	$	—	$	116,445
U.S. Treasury Bills	—		485,121		—		485,121
Available-for-sale
Equity securities	181		—		—		181
Fixed income securities	183		—		—		183
Trading
Equity securities	304,083		22,070		116		326,269
Fixed income securities	180,194		2,594		—		182,788
Long exchange-traded options	5,910		—		—		5,910
Derivatives	1,539		11,049		—		12,588
Private equity	14,305		—		48,102		62,407
Total assets measured at fair value	$	622,840	$	520,834	$	48,218	$	1,191,892

Securities sold not yet purchased
Short equities – corporate	$	15,254	$	—	$	—	$	15,254
Short exchange-traded options	843		—		—		843
Derivatives	2,651		9,570		—		12,221
Contingent payment arrangements	—		—		31,399		31,399
Total liabilities measured at fair value	$	18,748	$	9,570	$	31,399	$	59,717

December 31, 2014:
Money markets	$	89,566	$	—	$	—	$	89,566
U.S. Treasury Bills	—		444,152		—		444,152
Available-for-sale
Equity securities	5,951		—		—		5,951
Fixed income securities	221		—		—		221
Trading
Equity securities	387,495		7		—		387,502
Fixed income securities	164,317		2,742		—		167,059
Long exchange-traded options	22,290		—		—		22,290
Derivatives	571		6,216		—		6,787
Private equity	12,162		—		58,926		71,088
Total assets measured at fair value	$	682,573	$	453,117	$	58,926	$	1,194,616

Securities sold not yet purchased
Short equities – corporate	$	81,784	$	—	$	—	$	81,784
Short exchange-traded options	7,118		—		—		7,118
Derivatives	2,438		6,954		—		9,392
Contingent payment arrangements	—		—		42,436		42,436
Total liabilities measured at fair value	$	91,340	$	6,954	$	42,436	$	140,730

Fair Value Measurement Level 3 Reconciliation

The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as private equity investments and trading equity securities, is as follows:



	December 31, 2015			December 31, 2014
	(in thousands)
Balance as of beginning of period	$	58,926		$	52,081
Transfers out	(26		)	(1,594		)
Purchases	198			7,976
Sales	(18,069		)	(1,121		)
Realized gains (losses), net	4,921			721
Unrealized gains (losses), net	2,268			863
Balance as of end of period	$	48,218		$	58,926

Information about Level 3 Fair Value Measurements

Quantitative information about private equity Level 3 fair value measurements as of December 31, 2015 and 2014 is as follows:



	Fair Value as of December 31, 2015		Valuation Technique	Unobservable Input	Range
	(in thousands)

Technology, Media and Telecommunications	$	9,527	Market comparable companies	Revenue multiple	2.5 – 4.8
				Marketability discount	30	%

Also, as of December 31, 2015, we have an investment in a private equity fund focused exclusively on the energy sector (fair value of $6.5 million) that is classified as Level 3. This investment's valuation is based on a market approach, considering recent transactions of the fund and the industry.

One of our private equity investments is a venture capital fund (fair value of $32.0 million and unfunded commitment of $2.9 million as of December 31, 2015) that invests in communications, consumer, digital media, healthcare and information technology markets. In addition, one of the investments included in our consolidated private equity fund (fair value of $0.1 million and no unfunded commitment as of December 31, 2015) is a venture capital fund investing in clean energy, resource and energy efficiency and other sustainable industries. The fair value of each of these investments has been estimated using the capital account balances provided by the partnerships. The interests in these partnerships cannot be redeemed.



	Fair Value as of December 31, 2014		Valuation Technique	Unobservable Input	Range
	(in thousands)

Technology, Media and Telecommunications	$	20,112	Market comparable companies	Revenue multiple	2.0 – 3.5
				Discount rate	18	%
				Discount years	2.0

Schedule of Contingent Payment Arrangements Level 3 Financial Instruments

The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as contingent payment arrangements, is as follows:



	December 31, 2015			December 31, 2014
	(in thousands)
Balance as of beginning of period	$	42,436		$	38,205
Addition	—			9,365
Accretion	1,770			1,593
Changes in estimates	(7,211		)	(4,375		)
Payments	(5,596		)	(2,352		)
Balance as of end of period	$	31,399		$	42,436