Fair Value (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value of Assets and Liabilities Measured on a Recurring Basis

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



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
December 31, 2017:
Money markets	$	62,071	$	—	$	—	$	—	$	—	$	62,071
Securities segregated (U.S. Treasury Bills)			816,350		—		—		—		816,350
Derivatives	948		10,671		—		—		—		11,619
Investments
Trading
U.S. Treasury Bills	—		52,609		—		—		—		52,609
Equity securities	208,910		6		117		81		—		209,114
Fixed income securities	73,172		11,186		—		13		—		84,371
Long exchange-traded options	4,981		—		—		—		—		4,981
Limited partnership hedge funds⁽²⁾	—		—		—		—		37,199		37,199
Private equity	—		—		954		37,232		—		38,186
Time deposits⁽³⁾	—		—		—		—		5,138		5,138
Other
Available-for-sale	99		—		—		—		—		99
Other investments⁽²⁾⁽⁴⁾	—		—		—		—		11,892		11,892
Total investments	287,162		63,801		1,071		37,326		54,229		443,589
Total assets measured at fair value	$	350,181	$	890,822	$	1,071	$	37,326	$	54,229	$	1,333,629

Securities sold not yet purchased
Short equities – corporate	$	16,376	$	—	$	—	$	—	$	—	$	16,376
Short exchange-traded options	13,585		—		—		—		—		13,585
Derivatives	2,540		11,783		—		—		—		14,323
Contingent payment arrangements	—		—		10,855		—		—		10,855



Total liabilities measured at fair value	$	32,501	$	11,783	$	10,855	$	—	$	—	$	55,139

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.

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 and trading equity securities, is as follows:



	December 31, 2017			December 31, 2016
	(in thousands)
Balance as of beginning of period	$	5,023		$	16,148
Reclassification (see below)	—			(9,532		)
Purchases	—			—
Sales	—			—
Realized gains, net	—			—
Unrealized (losses) gains, net	(3,952		)	(1,593		)
Balance as of end of period	$	1,071		$	5,023

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, 2017			December 31, 2016
	(in thousands)
Balance as of beginning of period	$	17,589		$	31,399
Addition	—			11,893
Accretion	460			1,237
Changes in estimates	(193		)	(21,482		)
Payments	(7,001		)	(5,458		)
Balance as of end of period	$	10,855		$	17,589