Note 7 – Marketable Securities

The amortized cost and estimated fair value of the Company’s Marketable Securities as of December 31, 2012 and 2011 were as follows:


	December 31, 2012								December 31, 2011
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-Sale
Debt Securities:
Corporate Bonds	$	—	$	—	$	—	$	—	$	1,008	$	—	$	2	$	1,006
Municipal Bonds		—		—		—		—		9,544		9		—		9,553
Other Debt Securities		—		—		—		—		2,000		—		—		2,000
Seed Capital Investments		10,172		1,428		20		11,580		10,905		812		27		11,690

Total Available-for-Sale		10,172		1,428		20		11,580		23,457		821		29		24,249
Debt Securities Carried by EGL		13,522		97		—		13,619		47,583		518		—		48,101
Mutual Funds		10,946		412		12		11,346		9,350		191		603		8,938

Total	$	34,640	$	1,937	$	32	$	36,545	$	80,390	$	1,530	$	632	$	81,288

Scheduled maturities of the Company’s available-for-sale debt securities as of December 31, 2012 and 2011 were as follows:


	December 31, 2012				December 31, 2011
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	658	$	659	$	8,699	$	8,703
Due after one year through five years		1,415		1,437		3,853		3,856
Due after five years through 10 years		347		346		—		—

Total	$	2,420	$	2,442	$	12,552	$	12,559

Since the Company has the ability and intent to hold available-for-sale securities until a recovery of fair value is equal to an amount approximating its amortized cost, which may be at maturity, and has not incurred credit losses on its securities, it does not consider such unrealized loss positions to be other-than-temporarily impaired at December 31, 2012.

Debt Securities

The Company invests in corporate and municipal securities, which are classified as available-for-sale securities within Marketable Securities on the Consolidated Statements of Financial Condition. Unrealized gains and losses for these securities are included in Accumulated Other Comprehensive Income (Loss) and realized gains and losses are included in earnings. The Company had realized gains of $2, $86 and $3,450 for the years ended December 31, 2012, 2011 and 2010, respectively.

Seed Capital Investments

Seed Capital Investments include equity and debt securities, which are classified as available-for-sale securities within Marketable Securities on the Consolidated Statements of Financial Condition. These securities are stated at quoted market value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) and realized gains and losses included in earnings. The Company had realized gains (losses) of ($85), $936 and $1,653 for the years ended December 31, 2012, 2011 and 2010, respectively.

Debt Securities Carried by EGL

During the first quarter of 2010, EGL began to invest in a fixed income portfolio consisting primarily of municipal bonds. These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest, on the Consolidated Statements of Operations, as required for broker-dealers in securities. The Company had net realized and unrealized gains (losses) of ($674), ($460) and $481 for the years ended December 31, 2012, 2011 and 2010, respectively.

Mutual Funds

During the first quarter of 2011, the Company began to invest in a portfolio of mutual funds as an economic hedge against the Company’s deferred compensation program. See Note 17 for further information. These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest, on the Consolidated Statements of Operations. The Company had net realized and unrealized gains (losses) of $1,025 and ($412) for the years ended December 31, 2012 and 2011.