Fair Value Measurements

3 Months Ended

Mar. 31, 2014

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 March 31, 2014
Money market funds	$	90,862	$	—		$	—	$	90,862
Securities available-for-sale
Municipal securities		—		14,198			—		14,198
Corporate bonds		—		49,285			—		49,285
Foreign currency forward position		—		(339	)		—		(339	)
	$	90,862	$	63,144		$	—	$	154,006
As of December 31, 2013
Money market funds	$	90,536	$	—		$	—	$	90,536
Securities available-for-sale
Municipal securities		—		16,052			—		16,052
Corporate bonds		—		51,690			—		51,690
Foreign currency forward position		—		(472	)		—		(472	)
	$	90,536	$	67,270		$	—	$	157,806

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 contracts are classified within Level 2 as the valuation inputs are based on quoted market prices. There were no financial assets classified within Level 3 during the three months ended March 31, 2014 and 2013.

The Company enters into foreign currency forward contracts to hedge the exposure to variability in certain 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 fair value of the 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
	March 31, 2014			December 31, 2013
	(In thousands)
Notional value	$	32,881		$	29,431
Fair value of notional		33,220			29,903
Fair value of the liability	$	(339	)	$	(472	)

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 March 31, 2014
Municipal securities	$	14,193	$	8	$	(3	)	$	14,198
Corporate bonds		49,127		163		(5	)		49,285
Total securities available-for-sale	$	63,320	$	171	$	(8	)	$	63,483
As of December 31, 2013
Municipal securities	$	16,049	$	9	$	(6	)	$	16,052
Corporate bonds		51,579		124		(13	)		51,690
Total securities available-for-sale	$	67,628	$	133	$	(19	)	$	67,742

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

	As of
	March 31, 2014		December 31, 2013
	(In thousands)
Less than one year	$	21,314	$	12,332
Due in 1 - 5 years		42,169		55,410
Total securities available-for-sale	$	63,483	$	67,742

Proceeds from the sales and maturities of securities available-for-sale during the three months ended March 31, 2014 and 2013 were $3.8 million and $33.7 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 as of March 31, 2014 and December 31, 2013:

	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 March 31, 2014
Municipal securities	$	552	$	(3	)	$	—	$	—	$	552	$	(3	)
Corporate bonds		2,064		(5	)		—		—		2,064		(5	)
Total	$	2,616	$	(8	)	$	—	$	—	$	2,616	$	(8	)
As of December 31, 2013
Municipal securities	$	4,955	$	(6	)	$	—	$	—	$	4,955	$	(6	)
Corporate bonds		10,728		(13	)		—		—		10,728		(13	)
Total	$	15,683	$	(19	)	$	—	$	—	$	15,683	$	(19	)