Fair Value Measurements

9 Months Ended

Sep. 30, 2012

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 September 30, 2012
Money market funds	$	125,474	$	—		$	—	$	125,474
Securities available-for-sale:
U.S. government obligations		—		41,376			—		41,376
Municipal securities		—		10,784			—		10,784
Corporate bonds		—		2,021			—		2,021
Foreign currency forward position		—		(47	)		—		(47	)
	$	125,474	$	54,134		$	—	$	179,608
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 position		—		155			—		155
	$	111,256	$	78,265		$	—	$	189,521

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 2012 and 2011.

The Company enters into foreign currency forward contracts 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 liability of $0.1 million as of September 30, 2012 is included in accounts payable and the gross and net fair value asset of $0.2 million as of December 31, 2011 is included in other assets 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
	September 30, 2012			December 31, 2011
	(In thousands)
Notional value	$	13,346		$	28,671
Fair value of notional		13,393			28,516
Gross and net fair value (liability) asset	$	(47	)	$	155

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 September 30, 2012
U.S. government obligations	$	40,256	$	1,120	$	—		$	41,376
Municipal securities		10,778		7		(1	)		10,784
Corporate bonds		2,018		3		—			2,021
Total securities available-for-sale	$	53,052	$	1,130	$	(1	)	$	54,181
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

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

	As of
	September 30, 2012		December 31, 2011
	(In thousands)
Less than one year	$	11,272	$	31,554
Due in 1 - 5 years		42,909		46,556
Total securities available-for-sale	$	54,181	$	78,110

Proceeds from the sales and maturities of securities available-for-sale during the nine months ended September 30, 2012 and 2011 were $29.0 million and $20.8 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 September 30, 2012
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Municipal securities		2,108		(1	)		—		—		2,108		(1	)
Corporate bonds		—		—			—		—		—		—
Total securities available-for-sale	$	2,108	$	(1	)	$	—	$	—	$	2,108	$	(1	)
As of December 31, 2011
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Municipal securities		9,529		(8	)		—		—		9,529		(8	)
Corporate bonds		—		—			—		—		—		—
Total securities available-for-sale	$	9,529	$	(8	)	$	—	$	—	$	9,529	$	(8	)