| Classes of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis |
The following table presents fair value measurements for classes of Federated’s financial assets and liabilities measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2012 | | December 31, 2011 | | | Fair Value Measurements Using | | Fair Value Measurements Using | (in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | Financial Assets | | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 183,484 |
| | $ | 0 |
| | $ | 0 |
| | $ | 183,484 |
| | $ | 49,273 |
| | $ | 0 |
| | $ | 0 |
| | $ | 49,273 |
| Available-for-sale equity securities1 | | 110,487 |
| | 33,025 |
| | 0 |
| | 143,512 |
| | 128,611 |
| | 30,928 |
| | 0 |
| | 159,539 |
| Trading securities—equity | | 14,128 |
| | 18,654 |
| | 0 |
| | 32,782 |
| | 10,805 |
| | 18,653 |
| | 0 |
| | 29,458 |
| Trading securities—debt | | 701 |
| | 7,298 |
| | 0 |
| | 7,999 |
| | 216 |
| | 83,831 |
| | 0 |
| | 84,047 |
| Foreign currency forward contract | | 0 |
| | 89 |
| | 0 |
| | 89 |
| | 0 |
| | 55 |
| | 0 |
| | 55 |
| Total financial assets | | $ | 308,800 |
| | $ | 59,066 |
| | $ | 0 |
| | $ | 367,866 |
| | $ | 188,905 |
| | $ | 133,467 |
| | $ | 0 |
| | $ | 322,372 |
| Financial Liabilities | | | | | | | | | | | | | | | | | Interest rate swap | | $ | 0 |
| | $ | 12,891 |
| | $ | 0 |
| | $ | 12,891 |
| | $ | 0 |
| | $ | 15,241 |
| | $ | 0 |
| | $ | 15,241 |
| Acquisition-related future consideration payments liability | | 0 |
| | 0 |
| | 15,765 |
| | 15,765 |
| | 0 |
| | 0 |
| | 13,404 |
| | 13,404 |
| Other2 | | 1,041 |
| | 16 |
| | 0 |
| | 1,057 |
| | 0 |
| | 245 |
| | 0 |
| | 245 |
| Total financial liabilities | | $ | 1,041 |
| | $ | 12,907 |
| | $ | 15,765 |
| | $ | 29,713 |
| | $ | 0 |
| | $ | 15,486 |
| | $ | 13,404 |
| | $ | 28,890 |
|
1 Previously reported fair value measurements as of December 31, 2011 have been restated herein to reflect as Level 2 the fair value measurement of an investment in a mutual fund that is not traded in an active exchange market but for which net asset value was used as a practical expedient to estimate fair value. The entire balance in Level 2 as of December 31, 2011 had previously been listed as Level 1. | | 2 | Amounts include investments sold short within sponsored investment products and/or foreign currency forward contracts recorded within Other current liabilities on the Consolidated Balance Sheets. |
|
| Reconciliation of the beginning and ending fair value measurements of a Level 3 financial liability |
The following table presents a reconciliation of the beginning and ending fair value measurements of Federated’s liability for future consideration payments related to these acquisitions for each period presented: | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | (in thousands) | | 2012 |
| | 2011 |
| | 2012 |
| | 2011 |
| Beginning balance | | $ | 13,904 |
| | $ | 18,358 |
| | $ | 13,404 |
| | $ | 20,058 |
| New acquisition adjustment1 | | 1,861 |
| | 0 |
| | 3,361 |
| | (2,600 | ) | Changes in fair value2 | | 0 |
| | 0 |
| | (1,000 | ) | | 900 |
| Ending balance | | $ | 15,765 |
| | $ | 18,358 |
| | $ | 15,765 |
| | $ | 18,358 |
|
| | 1 | Amounts include the preliminary fair value estimate of the contingent payment liability recorded in connection with a new acquisition or the revision thereof upon finalization of the valuation process related to initial purchase accounting. |
| | 2 | Amounts included as a (decrease) increase to Intangible asset related expense on the Consolidated Statements of Income. |
|