Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [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 June 30, 2013
Money market funds	$	89,819	$	—	$	—	$	89,819
Securities available-for-sale:
Municipal securities		—		12,353		—		12,353
Corporate bonds		—		2,126		—		2,126
Foreign currency forward position		—		227		—		227
	$	89,819	$	14,706	$	—	$	104,525
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. A gross and net fair value asset is included in accounts receivable and a gross and net fair value liability 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
	June 30, 2013		December 31, 2012
	(In thousands)
Notional value	$	27,335	$	15,792
Fair value of notional		27,108		15,809
Gross and net fair value asset and (liability)	$	227	$	(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 June 30, 2013
Municipal securities	$	12,342	$	11	$	—		$	12,353
Corporate bonds		2,122		4		—			2,126
Total securities available-for-sale	$	14,464	$	15	$	—		$	14,479
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
	June 30, 2013		December 31, 2012
	(In thousands)
Less than one year	$	8,909	$	10,870
Due in 1—5 years		5,570		40,338
Total securities available-for-sale	$	14,479	$	51,208

Proceeds from the sales and maturities of securities available-for-sale during the six months ended June 30, 2013 and 2012 were $36.1 million and $25.0 million, respectively.

There were no unrealized losses on securities available-for-sale as of June 30, 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
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	)