Investments (Tables)

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Available-for-sale securities were as follows:



	September 30, 2017									December 31, 2016
			Gross Unrealized					Estimated Fair				Gross Unrealized					Estimated Fair
(in thousands)	Cost		Gains		(Losses)			Value		Cost		Gains		(Losses)			Value
Equity funds	$	14,040	$	2,188	$	(23	)	$	16,205	$	23,883	$	2,112	$	(266	)	$	25,729
Fixed-income funds	100,468		105		(642		)	99,931		105,514		92		(550		)	105,056
Total available-for-sale securities	$	114,508	$	2,293	$	(665	)	$	116,136	$	129,397	$	2,204	$	(816	)	$	130,785

Gains and losses on investments

The following table presents gains and losses recognized in Gain on securities, net on the Consolidated Statements of Income in connection with Federated's investments as well as economic derivatives held by certain consolidated Federated Funds:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2017			2016			2017			2016
Net unrealized gains (losses)
Trading securities	$	151		$	1,684		$	526		$	5,410
Derivatives¹	(499		)	315			493			11
Realized gains²
Available-for-sale securities³	914			266			2,806			291
Trading securities	258			472			2,014			1,058
Derivatives¹	914			28			1,648			583
Realized losses²
Available-for-sale securities³	0			0			(14		)	(1,645		)
Trading securities	(71		)	(273		)	(692		)	(2,048		)
Derivatives¹	0			(460		)	(318		)	(1,107		)
Gain on securities, net⁴	$	1,667		$	2,032		$	6,463		$	2,553


1	Amounts related to the settlement of economic derivatives held by certain consolidated Federated Funds.


2	Realized gains and losses are computed on a specific-identification basis.

Proceeds from redemptions of available-for-sale securities were $9.0 million and $26.4 million for the three and nine months ended September 30, 2017, respectively. These amounts include a redemption of $1.5 million recorded as a receivable during the second quarter that was not settled until after June 30, 2017. Proceeds from redemptions of available-for-sale securities were $7.8 million and $8.0 million for the three and nine months ended September 30, 2016, respectively.


4	Amounts related to consolidated entities, primarily Federated Funds, totaled $0.6 million and $3.2 million for the three and nine months ended September 30, 2017, respectively and $1.6 million and $3.5 million for the three and nine months ended September 30, 2016, respectively.

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of the realized and unrealized gains and losses reported in the statement of income which have resulted from the sale and holding of marketable securities, respectively, as well as the sale or disposal of cost method investments. Such amounts would include realized gains and losses on the sale or disposal of trading, available-for-sale, and held-to-maturity securities, unrealized gains and losses on trading securities, unrealized gains and losses on available-for-sale and held-to-maturity securities transferred to the trading securities category, realized gains and losses on the sale or disposal of cost method investments, and losses recognized for other than temporary impairments (OTTI) of such investments.

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