Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

4. Fair Value Measurements

The following table summarizes the valuation of the Company’s assets measured at fair value as categorized based on the hierarchy described in Note 2.

	Level 1		Level 2			Level 3		Total
	(In thousands)
As of September 30, 2011
Money market funds	$	108,352	$	—		$	—	$	108,352
Securities available-for-sale:
U.S. government obligations		—		55,565			—		55,565
Municipal securities		—		22,579			—		22,579
Corporate bonds		—		2,056			—		2,056
Foreign currency forward position		—		126			—		126
	$	108,352	$	80,326		$	—	$	188,678
As of December 31, 2010
Money market funds	$	96,661	$	—		$	—	$	96,661
Securities available-for-sale:
U.S. government obligations		—		41,351			—		41,351
Municipal securities		—		29,145			—		29,145
Corporate bonds		—		2,056			—		2,056
Foreign currency forward position		—		(337	)		—		(337	)
	$	96,661	$	72,215		$	—	$	168,876

Securities classified within Level 2 were valued using a market approach utilizing prices and other relevant information generated by market transactions involving comparable assets. The foreign currency forward contract is classified within Level 2 as the valuation inputs are based on quoted market prices. There were no financial assets classified within Level 3 during 2011 and 2010.

The Company enters into foreign currency forward contracts with a noncontrolling stockholder broker-dealer client to hedge the exposure to variability in foreign currency cash flows resulting from the net investment in the Company’s U.K. subsidiary. The Company assesses each foreign currency forward contract to ensure that it is highly effective at reducing the exposure being hedged. The Company designates each foreign currency forward contract as a hedge, assesses the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure and how effectiveness is to be assessed prospectively and retrospectively. These hedges are for a one-month period and are used to limit exposure to foreign currency exchange rate fluctuations. The gross and net fair value asset of $0.1 million as of September 30, 2011 is included in other assets and the gross and net fair value liability of $0.3 million as of December 31, 2010 is included in accounts payable in the Consolidated Statements of Financial Condition. Gains or losses on foreign currency forward contracts designated as hedges are included in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. A summary of the foreign currency forward contract is as follows:

	As of
	September 30, 2011		December 31, 2010
	(In thousands)
Notional value	$	27,597	$	29,117
Fair value of notional		27,471		29,454
Gross and net fair value asset (liability)	$	126	$	(337	)

The following is a summary of the Company’s securities available-for-sale:

			Gross		Gross			Estimated
	Amortized		unrealized		unrealized			fair
	cost		gains		losses			value
	(In thousands)
As of September 30, 2011
U.S. government obligations	$	53,840	$	1,725	$	—		$	55,565
Municipal securities		22,577		10		(8	)		22,579
Corporate bonds		2,047		9		—			2,056
Total securities available-for-sale	$	78,464	$	1,744	$	(8	)	$	80,200
As of December 31, 2010
U.S. government obligations	$	40,383	$	968	$	—		$	41,351
Municipal securities		29,150		14		(19	)		29,145
Corporate bonds		2,056		—		—			2,056
Total securities available-for-sale	$	71,589	$	982	$	(19	)	$	72,552

The following table summarizes the contractual maturities of securities available-for-sale:

	As of
	September 30, 2011		December 31, 2010
	(In thousands)
Less than one year	$	21,364	$	23,593
Due in 1 – 5 years		58,836		48,959
Total securities available-for-sale	$	80,200	$	72,552

Proceeds from the maturities of securities available-for-sale during the nine months ended September 30, 2011 and 2010 were $20.8 million and $55.5 million, respectively.

The following table provides fair values and unrealized losses on securities available-for-sale and by the aging of the securities’ continuous unrealized loss position:

	Less than Twelve Months					Twelve Months or More				Total
	Estimated		Gross			Estimated		Gross		Estimated		Gross
	fair		unrealized			fair		unrealized		fair		unrealized
	value		losses			value		losses		value		losses
	(In thousands)
As of September 30, 2011
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Municipal securities		10,750		(8	)		—		—		10,750		(8	)
Corporate bonds		—		—			—		—		—		—
Total securities available-for-sale	$	10,750	$	(8	)	$	—	$	—	$	10,750	$	(8	)
As of December 31, 2010
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Municipal securities		18,218		(19	)		—		—		18,218		(19	)
Corporate bonds		—		—			—		—		—		—
Total securities available-for-sale	$	18,218	$	(19	)	$	—	$	—	$	18,218	$	(19	)