Fair Value Measurements

3 Months Ended

Mar. 31, 2013

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 March 31, 2013
Money market funds	$	99,801	$	—		$	—	$	99,801
Securities available-for-sale:
U.S. government obligations		—		—			—		—
Municipal securities		—		14,934			—		14,934
Corporate bonds		—		2,125			—		2,125
Foreign currency forward position		—		(251	)		—		(251	)
	$	99,801	$	16,808		$	—	$	116,609
As of December 31, 2012
Money market funds	$	83,519	$	—		$	—	$	83,519
Securities available-for-sale
U.S. government obligations		—		31,104			—		31,104
Municipal securities		—		17,947			—		17,947
Corporate bonds		—		2,157			—		2,157
Foreign currency forward and option contracts		—		15			—		15
	$	83,519	$	51,223		$	—	$	134,742

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 2013 and 2012.

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. subsidiaries. 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 as of March 31, 2013 and December 31, 2012 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
	March 31, 2013			December 31, 2012
	(In thousands)
Notional value	$	26,235		$	15,792
Fair value of notional		26,486			15,809
Gross and net fair value (liability)	$	(251	)	$	(17	)

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 March 31, 2013
U.S. government obligations	$	—	$	—	$	—		$	—
Municipal securities		14,915		19		—			14,934
Corporate bonds		2,115		10		—			2,125
Total securities available-for-sale	$	17,030	$	29	$	—		$	17,059
As of December 31, 2012
U.S. government obligations	$	30,255	$	849	$	—		$	31,104
Municipal securities		17,941		10		(4	)		17,947
Corporate bonds		2,159		—		(2	)		2,157
Total securities available-for-sale	$	50,355	$	859	$	(6	)	$	51,208

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

	As of
	March 31, 2013		December 31, 2012
	(In thousands)
Less than one year	$	9,695	$	10,870
Due in 1 – 5 years		7,364		40,338
Total securities available-for-sale	$	17,059	$	51,208

Proceeds from the sales and maturities of securities available-for-sale during the three months ended March 31, 2013 and 2012 were $33.7 million and $21.5 million, respectively.

There were no unrealized losses on securities available-for-sale as of March 31, 2013. 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 as of December 31, 2012:

	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 December 31, 2012
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Municipal securities		2,780		(4	)		—		—		2,780		(4	)
Corporate bonds		2,157		(2	)		—		—		2,157		(2	)
Total securities available-for-sale	$	4,937	$	(6	)	$	—	$	—	$	4,937	$	(6	)