Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

4.    Fair Value Measurements

The following table summarizes the valuation of the Company’s assets and liabilities 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 December 31, 2011
Money market funds	$	111,256	$	—		$	—	$	111,256
Securities available-for-sale
U.S. government obligations		—		55,460			—		55,460
Municipal securities		—		20,612			—		20,612
Corporate bonds		—		2,038			—		2,038
Foreign currency forward contract		—		155			—		155
	$	111,256	$	78,265		$	—	$	189,521
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 contract		—		(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 non-controlling 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 $0.2 million as of December 31, 2011 is included in accounts receivable 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 contracts is as follows:

	As of December 31,
	2011		2010
	(In thousands)
Notional value	$	28,671	$	29,117
Fair value of notional		28,516		29,454
Gross and net fair value asset (liability)	$	155	$	(337	)

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

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
			(In thousands)
As of December 31, 2011
U.S. government obligations	$	53,832	$	1,628	$	—		$	55,460
Municipal securities		20,613		7		(8	)		20,612
Corporate bonds		2,028		10		—			2,038
Total securities available-for-sale	$	76,473	$	1,645	$	(8	)	$	78,110
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 December 31,
	2011		2010
	(In thousands)
Less than one year	$	31,554	$	23,593
Due in 1 — 5 years		46,556		48,959
Total securities available-for-sale	$	78,110	$	72,552

Proceeds from the maturities and sale of securities available-for-sale during 2011, 2010 and 2009 were $27.4 million, $65.4 million and $22.1 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 fair value		Gross unrealized losses			Estimated fair value		Gross unrealized losses		Estimated fair value		Gross unrealized losses
						(In thousands)
As of December 31, 2011
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Municipal securities		9,529		(8	)		—		—		9,529		(8	)
Corporate bonds		—		—			—		—		—		—
Total	$	9,529	$	(8	)	$	—	$	—	$	9,529	$	(8	)
As of December 31, 2010
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Municipal securities		18,218		(19	)		—		—		18,218		(19	)
Corporate bonds		—		—			—		—		—		—
Total	$	18,218	$	(19	)	$	—	$	—	$	18,218	$	(19	)