Fair Value (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value [Abstract]

Fair value of assets and liabilities measured on a recurring basis

The following tables summarize the valuation of our financial instruments by pricing observability levels as of March 31, 2013 and December 31, 2012:

	March 31, 2013
	Level 1		Level 2		Level 3		Total
	(in thousands)
Money markets	$	216,435	$	—	$	—	$	216,435
U.S. Treasury Bills		—		1,082,237		—		1,082,237
U.K. Treasury Bills		—		117		—		117
Equity securities
Growth		141,695		—		—		141,695
Value		32,440		3,704		—		36,144
Multi-asset and asset allocation		55,981		—		—		55,981
Other(1)		56,137		—		—		56,137
Fixed Income securities
Taxable(2)		147,024		2,992		—		150,016
Tax-exempt(3)		5,701		791		—		6,492
Derivatives		821		2,110		—		2,931
Long exchange-traded options		13,772		—		—		13,772
Private equity		5,816		—		74,853		80,669
Total assets measured at fair value	$	675,822	$	1,091,951	$	74,853	$	1,842,626
Securities sold not yet purchased
Short equities – corporate	$	57,588	$	—	$	—	$	57,588
Short exchange-traded options		11,845		—		—		11,845
Derivatives		1,336		2,745		—		4,081
Total liabilities measured at fair value	$	70,769	$	2,745	$	—	$	73,514

	December 31, 2012
	Level 1		Level 2		Level 3		Total
	(in thousands)
Money markets	$	170,120	$	—	$	—	$	170,120
U.S. Treasury Bills		—		1,537,150		—		1,537,150
U.K. Treasury Bills		—		125		—		125
Equity securities
Growth		125,242		—		—		125,242
Value		36,126		—		—		36,126
Multi-asset and asset allocation		59,449		—		—		59,449
Other(1)		39,702		—		—		39,702
Fixed Income securities
Taxable(2)		177,635		1,219		—		178,854
Tax-exempt(3)		5,661		797		—		6,458
Derivatives		64		2,561		—		2,625
Long exchange-traded options		15,087		—		—		15,087
Private equity		7,695		—		76,953		84,648
Total assets measured at fair value	$	636,781	$	1,541,852	$	76,953	$	2,255,586
Securities sold not yet purchased
Short equities – corporate	$	54,370	$	—	$	—	$	54,370
Short exchange-traded options		9,197		—		—		9,197
Other		271		—		—		271
Derivatives		1,598		5,472		—		7,070
Total liabilities measured at fair value	$	65,436	$	5,472	$	—	$	70,908

(1) Primarily long positions in corporate equities traded through our options desk.

(2) Primarily corporate and government securities.

(3) Primarily municipal bonds.

Fair value measurement Level 3 reconciliation

The following table summarizes the change in carrying value associated with Level 3 financial instruments carried at fair value:

		Three Months Ended March 31,
		2013			2012
	(in thousands)
Balance as of beginning of period		$	76,953		$	64,466
Transfer (out) in, net			—			(13,548	)
Purchases			10			1,845
Sales			—			—
Realized gains (losses), net			—			—
Unrealized gains (losses), net			(2,110	)		5,472
Balance as of end of period		$	74,853		$	58,235

Information about Level 3 fair value measurements

The following table provides quantitative information about Level 3 fair value measurements:

	Fair Value as of March 31, 2013		Valuation Technique	Unobservable Input	Range
		(in thousands)
Private Equity:
Technology, Media and Telecommunications	$	23,256	Market comparable companies	Revenue multiple		2.5 – 6.0
				Discount rate		18%
				Discount years		1.75
Healthcare and Cleantech	$	14,871	Market comparable companies	Revenue multiple(1)		0.6 – 68.7
				R&D multiple(1)		0.9 – 35.0
				Discount for lack of marketability and risk factors		30-60%

(1) The median for the Healthcare and Cleantech revenue multiple is 7.8; the median R&D multiple is 5.2.