Fair Value (Tables)

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
September 30, 2017:
Money markets	$	152,893	$	—	$	—	$	—	$	—	$	152,893
Securities segregated (U.S. Treasury Bills)	—		723,029		—		—		—		723,029
Derivatives	1,111		4,735		—		—		—		5,846
Investments
Trading
U.S. Treasury Bills	—		52,605		—		—		—		52,605
Equity securities	231,897		4,108		116		98		—		236,219
Fixed income securities	68,328		10,986		—		13		—		79,327
Long exchange-traded options	9,368		—		—		—		—		9,368
Limited partnership hedge funds⁽²⁾	—		—		—		—		39,490		39,490
Private equity	—		—		954		37,599		—		38,553
Time deposits⁽³⁾	—		—		—		—		52,090		52,090
Other
Available-for-sale	98		—		—		—		—		98
Other investments⁽²⁾⁽⁴⁾	—		—		—		—		12,003		12,003
Total investments	309,691		67,699		1,070		37,710		103,583		519,753
Total assets measured at fair value	$	463,695	$	795,463	$	1,070	$	37,710	$	103,583	$	1,401,521

Securities sold not yet purchased
Short equities – corporate	$	20,539	$	—	$	—	$	—	$	—	$	20,539
Short exchange-traded options	13,272		—		—		—		—		13,272
Derivatives	962		5,638		—		—		—		6,600
Contingent payment arrangements	—		—		12,103		—		—		12,103
Total liabilities measured at fair value	$	34,773	$	5,638	$	12,103	$	—	$	—	$	52,514

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 September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
	(in thousands)

Balance as of beginning of period	$	5,028		$	4,938	$	5,023		$	16,148
Reclassification (see below)	—			—		—			(9,532		)
Purchases	—			—		—			—
Sales	—			—		—			—
Realized gains (losses), net	—			—		—			—
Unrealized gains (losses), net	(3,958		)	2		(3,953		)	(1,676		)
Balance as of end of period	$	1,070		$	4,940	$	1,070		$	4,940

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,
	2017			2016			2017			2016
	(in thousands)

Balance as of beginning of period	$	16,777		$	30,861		$	17,589		$	31,399
Additions	—			11,893			—			11,893
Accretion	53			354			408			1,060
Changes in estimates	(193		)	(21,483		)	(193		)	(21,483		)
Payments	(4,534		)	(3,608		)	(5,701		)	(4,852		)
Balance as of end of period	$	12,103		$	18,017		$	12,103		$	18,017