Fair Value (Tables)

6 Months Ended

Jun. 30, 2017

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

Valuation of our financial instruments by pricing observability levels as of June 30, 2017 and December 31, 2016 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
June 30, 2017:
Money markets	$	173,176	$	—	$	—	$	—	$	—	$	173,176
Securities segregated (U.S. Treasury Bills)	—		1,007,079		—		—		—		1,007,079
Derivatives	813		7,063		—		—		—		7,876
Investments
Trading
U.S. Treasury Bills	—		27,764		—		—		—		27,764
Equity securities	204,418		4,006		114		65		—		208,603
Fixed income securities	78,328		11,365		—		13		—		89,706
Long exchange-traded options	8,348		—		—		—		—		8,348
Limited partnership hedge funds⁽²⁾	—		—		—		—		38,679		38,679
Private equity	—		—		4,914		39,938		—		44,852
Time deposits⁽³⁾	—		—		—		—		50,429		50,429
Other
Available-for-sale	102		—		—		—		—		102
Other investments⁽²⁾⁽⁴⁾	—		—		—		—		11,498		11,498
Total investments	291,196		43,135		5,028		40,016		100,606		479,981
Total assets measured at fair value	$	465,185	$	1,057,277	$	5,028	$	40,016	$	100,606	$	1,668,112

Securities sold not yet purchased
Short equities – corporate	$	15,042	$	—	$	—	$	—	$	—	$	15,042
Short exchange-traded options	7,510		—		—		—		—		7,510
Derivatives	916		7,260		—		—		—		8,176
Contingent payment arrangements	—		—		16,777		—		—		16,777
Total liabilities measured at fair value	$	23,468	$	7,260	$	16,777	$	—	$	—	$	47,505

December 31, 2016:
Money markets	$	107,250	$	—	$	—	$	—	$	—	$	107,250
Securities segregated (U.S. Treasury Bills)	—		893,189		—		—		—		893,189
Derivatives	1,224		7,189		—		—		—		8,413
Investments
Trading
U.S. Treasury Bills	—		28,937		—		—		—		28,937
Equity securities	148,128		5,724		110		36		—		153,998
Fixed income securities	80,473		11,107		—		12		—		91,592
Long exchange-traded options	3,106		—		—		—		—		3,106
Limited partnership hedge funds⁽²⁾	—		—		—		—		40,530		40,530
Private equity	—		—		4,913		40,365		—		45,278
Time deposits⁽³⁾	—		—		—		—		70,097		70,097



Other
Available-for-sale	45		—		—		—		—		45
Other investments⁽²⁾⁽⁴⁾	—		—		—		—		7,522		7,522
Total investments	231,752		45,768		5,023		40,413		118,149		441,105
Total assets measured at fair value	$	340,226	$	946,146	$	5,023	$	40,413	$	118,149	$	1,449,957

Securities sold not yet purchased
Short equities – corporate	$	40,252	$	—	$	—	$	—	$	—	$	40,252
Short exchange-traded options	692		—		—		—		—		692
Derivatives	1,092		7,557		—		—		—		8,649
Contingent payment arrangements	—		—		17,589		—		—		17,589
Total liabilities measured at fair value	$	42,036	$	7,557	$	17,589	$	—	$	—	$	67,182

⁽¹⁾Investments measured at fair value using NAV (or its equivalent) as a practical expedient.

⁽²⁾ Investments in equity method investees that are not measured at fair value in accordance with GAAP.

⁽³⁾ Investments carried at amortized cost that are not measured at fair value in accordance with GAAP.

⁽⁴⁾ Investments carried at cost that are not measured at fair value in accordance with GAAP.

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 and trading equity securities, is as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017		2016
	(in thousands)

Balance as of beginning of period	$	5,026	$	6,605		$	5,023	$	16,148
Reclassification (see below)	—		—			—		(9,532		)
Purchases	—		—			—		—
Sales	—		—			—		—
Realized gains (losses), net	—		—			—		—
Unrealized gains (losses), net	2		(1,667		)	5		(1,678		)
Balance as of end of period	$	5,028	$	4,938		$	5,028	$	4,938

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 June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(in thousands)

Balance as of beginning of period	$	17,177		$	31,119		$	17,589		$	31,399
Accretion	177			353			355			706
Payments	(577		)	(611		)	(1,167		)	(1,244		)
Balance as of end of period	$	16,777		$	30,861		$	16,777		$	30,861