Fair Value Measurements

ASC 820 establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily-available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Investments measured and reported at fair value are classified and disclosed in one of the following categories:

Level I – Quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level I include listed equities, listed derivatives and treasury bills. As required by ASC 820, the Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. The estimated fair values of the Corporate Bonds, Municipal Bonds, Other Debt Securities and Securities Investments held at March 31, 2019 and December 31, 2018 are based on prices provided by external pricing services.

Level III – Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation.

The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:



	March 31, 2019
	Level I		Level II		Level III		Total
Corporate Bonds, Municipal Bonds and Other Debt Securities⁽¹⁾	$	108,794	$	64,768	$	—	$	173,562
Securities Investments⁽²⁾	6,380		2,053		—		8,433
Investment Funds	64,816		—		—		64,816
Financial Instruments Owned and Pledged as Collateral at Fair Value	16,978		—		—		16,978
Other	—		21		—		21
Total Assets Measured At Fair Value	$	196,968	$	66,842	$	—	$	263,810

	December 31, 2018
	Level I		Level II		Level III		Total
Corporate Bonds, Municipal Bonds and Other Debt Securities⁽¹⁾	$	109,577	$	62,801	$	—	$	172,378
Securities Investments⁽²⁾	6,232		1,982		—		8,214
Investment Funds	54,776		—		—		54,776
Financial Instruments Owned and Pledged as Collateral at Fair Value	22,349		—		—		22,349
Total Assets Measured At Fair Value	$	192,934	$	64,783	$	—	$	257,717


(1)	Includes $27,160 and $24,415 of treasury bills, municipal bonds and commercial paper classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of March 31, 2019 and December 31, 2018, respectively.


(2)	Includes $6,168 and $6,326 of treasury bills and notes and municipal bonds classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of March 31, 2019 and December 31, 2018, respectively.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.

The Company had no transfers between fair value levels during the three months ended March 31, 2019 or the year ended December 31, 2018.

The carrying amount and estimated fair value of the Company's financial instrument assets and liabilities, which are not measured at fair value on the Unaudited Condensed Consolidated Statements of Financial Condition, are listed in the tables below.



			March 31, 2019
	Carrying		Estimated Fair Value
	Amount		Level I		Level II		Level III		Total
Financial Assets:
Cash and Cash Equivalents	$	305,015	$	305,015	$	—	$	—	$	305,015
Debt Security Investment	9,227		—		—		9,227		9,227
Securities Purchased Under Agreements to Resell	8,570		—		8,570		—		8,570
Receivables⁽¹⁾	417,797		—		412,700		—		412,700
Contract Assets⁽²⁾	2,614		—		2,369		—		2,369
Receivable from Employees and Related Parties	22,207		—		22,207		—		22,207
Closely-held Equity Security	1,079		—		—		1,079		1,079
Financial Liabilities:
Accounts Payable and Accrued Expenses	$	38,709	$	—	$	38,709	$	—	$	38,709
Securities Sold Under Agreements to Repurchase	25,552		—		25,552		—		25,552
Payable to Employees and Related Parties	45,036		—		45,036		—		45,036
Notes Payable	168,679		—		168,442		—		168,442

			December 31, 2018
	Carrying		Estimated Fair Value
	Amount		Level I		Level II		Level III		Total
Financial Assets:
Cash and Cash Equivalents	$	759,849	$	759,849	$	—	$	—	$	759,849
Certificates of Deposit	100,000		—		100,000		—		100,000
Debt Security Investment	9,717		—		—		9,717		9,717
Securities Purchased Under Agreements to Resell	2,696		—		2,696		—		2,696
Receivables⁽¹⁾	370,023		—		369,636		—		369,636
Contract Assets⁽²⁾	3,374		—		3,348		—		3,348
Receivable from Employees and Related Parties	23,836		—		23,836		—		23,836
Closely-held Equity Security	1,079		—		—		1,079		1,079
Financial Liabilities:
Accounts Payable and Accrued Expenses	$	37,948	$	—	$	37,948	$	—	$	37,948
Securities Sold Under Agreements to Repurchase	25,075		—		25,075		—		25,075
Payable to Employees and Related Parties	31,894		—		31,894		—		31,894
Notes Payable	168,612		—		166,555		—		166,555


(1)	Includes Accounts Receivable and Long-term receivables included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.


(2)	Includes current and long-term contract assets included in Other Current Assets and Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.