Fair Value (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2013 and December 31, 2012:

	June 30, 2013
	Level 1		Level 2		Level 3		Total
	(in thousands)
Money markets	$	275,458	$	—	$	—	$	275,458
U.S. Treasury Bills		—		824,061		—		824,061
U.K. Treasury Bills		—		117		—		117
Equity securities
Growth		116,486		—		—		116,486
Value		36,356		—		—		36,356
Multi-asset and asset allocation		50,195		—		—		50,195
Other(1)		56,399		—		—		56,399
Fixed Income securities
Taxable(2)		146,730		2,968		—		149,698
Tax-exempt(3)		5,227		795		—		6,022
Derivatives		1,619		6,007		—		7,626
Long exchange-traded options		13,074		—		—		13,074
Private equity		5,229		19,221		61,426		85,876
Total assets measured at fair value	$	706,773	$	853,169	$	61,426	$	1,621,368
Securities sold not yet purchased
Short equities – corporate	$	37,769	$	—	$	—	$	37,769
Short exchange-traded options		15,065		—		—		15,065
Derivatives		70		1,208		—		1,278
Total liabilities measured at fair value	$	52,904	$	1,208	$	—	$	54,112

	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 corporate and government securities.

(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 June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in thousands)
Balance as of beginning of period	$	74,853		$	58,235		$	76,953		$	64,466
Transfers out		(19,220	)		—			(19,220	)		(13,548	)
Purchases		87			1,988			97			3,833
Sales		(34	)		(1,823	)		(34	)		(1,823	)
Realized gains (losses), net		(6,581	)		855			(6,581	)		855
Unrealized gains (losses), net		12,321			(1,347	)		10,211			4,125
Balance as of end of period	$	61,426		$	57,908		$	61,426		$	57,908

Information about Level 3 fair value measurements

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

	Fair Value as of June 30, 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		1.5
Healthcare and Cleantech		$	1,849	Market comparable companies	Revenue multiple(1)		0.7 – 62.5
					R&D multiple(1)		1.0 – 32.4
					Discount for lack of marketability and risk factors		50-60	%

(1) The median for the Healthcare and Cleantech revenue multiple is 8.4; the median R&D multiple is 5.2.