Fair Value (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Valuation of our financial instruments by pricing observability levels as of September 30, 2016 and December 31, 2015 was as follows (in thousands):



	Level 1		Level 2		Level 3		Total
September 30, 2016:
Money markets	$	240,634	$	—	$	—	$	240,634
U.S. Treasury Bills	—		474,401		—		474,401
Available-for-sale
Equity securities	114		—		—		114
Fixed income securities	114		—		—		114
Trading
Equity securities	202,063		900		109		203,072
Fixed income securities	132,162		684		—		132,846
Long exchange-traded options	3,549		—		—		3,549
Derivatives	1,197		5,747		—		6,944
Private equity	—		—		4,831		4,831
Consolidated VIEs
Investments	28,751		173,512		2,759		205,022
Derivatives	87		3,791		—		3,878
Total assets measured at fair value	$	608,671	$	659,035	$	7,699	$	1,275,405

Securities sold not yet purchased
Short equities – corporate	$	24,895	$	—	$	—	$	24,895
Short exchange-traded options	4,321		—		—		4,321
Derivatives	600		6,450		—		7,050
Consolidated VIEs - derivatives	46		4,192		—		4,238
Contingent payment arrangements	—		—		18,017		18,017
Total liabilities measured at fair value	$	29,862	$	10,642	$	18,017	$	58,521

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	325,248		874		113		326,235
Fixed income securities	180,194		2,582		—		182,776
Long exchange-traded options	5,910		—		—		5,910
Derivatives	1,539		11,049		—		12,588
Private equity	14,305		—		16,035		30,340
Total assets measured at fair value	$	644,005	$	499,626	$	16,148	$	1,159,779

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

Schedule of Change in Carrying Value Level 3 Financial Instruments

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(in thousands)

Balance as of beginning of period	$	16,651		$	20,139		$	16,148		$	27,813
Transfer out	(23,566		)	—			(23,566		)	(26		)
Activity related to consolidated VIEs	14,611			—			16,790			—
Purchases	—			—			—			198
Sales	—			—			—			(14,178		)
Realized gains (losses), net	—			—			—			1,983
Unrealized gains (losses), net	3			(3,394		)	(1,673		)	955
Balance as of end of period	$	7,699		$	16,745		$	7,699		$	16,745

Summary of Information About Level 3 Fair Value Measurements

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



	Fair Value		Valuation Technique	Unobservable Input	Range
	(in thousands)

Private Equity as of December 31, 2015:
Technology, Media and Telecommunications	$	9,527	Market comparable transactions	Revenue multiple	2.5 - 4.8
				Marketability discount	30	%

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:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(in thousands)

Balance as of beginning of period	$	30,861		$	42,032		$	31,399		$	42,436
Additions	11,893			—			11,893			—
Accretion	354			443			1,060			1,328
Changes in estimates	(21,483		)	—			(21,483		)	—
Payments	(3,608		)	(3,658		)	(4,852		)	(4,947		)
Balance as of end of period	$	18,017		$	38,817		$	18,017		$	38,817