XML 51 R40.htm IDEA: XBRL DOCUMENT

Fair Value of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Hierarchy of Financial Assets and Liabilities under GAAP Guidance

The following tables set forth by level within the fair value hierarchy financial assets and liabilities accounted for at fair value under U.S. GAAP guidance (in thousands):

	Assets at Fair Value at June 30, 2019
	Level 1		Level 2 ¹		Level 3		Netting and Collateral			Total
Marketable securities	$	12,772	$	—	$	—	$	—		$	12,772
Government debt		59,929		—		—		—			59,929
Corporate Bonds		—		1,300		—		—			1,300
Securities owned—Equities		856		—		—		—			856
Forwards		—		100		—		(7	)		93
Foreign exchange swaps		—		2,214		—		(1,058	)		1,156
Futures		—		1,813		—		(1,633	)		180
Foreign exchange/commodities options		4,743		—		—		(4,713	)		30
Total	$	78,300	$	5,427	$	—	$	(7,411	)	$	76,316

^{In addition, the Company has equity securities with a fair value of $24.4 million, which are presented in “Other Assets” in the Company’s unaudited condensed consolidated statements of financial condition as of June 30, 2019. These investments are remeasured to fair value on a non-recurring basis and are classified within Level 2 in the fair value hierarchy. See section below titled “Fair Value Measurements on a Non-Recurring Basis” for additional information.}

	Liabilities at Fair Value at June 30, 2019
	Level 1		Level 2		Level 3		Netting and Collateral			Total
Foreign exchange/commodities options	$	4,718	$	—	$	—	$	(4,713	)	$	5
Foreign exchange swaps		—		2,889		—		(1,058	)		1,831
Forwards		—		3,764		—		(7	)		3,757
Futures		—		1,633		—		(1,633	)		—
Contingent consideration		—		—		42,152		—			42,152
Total	$	4,718	$	8,286	$	42,152	$	(7,411	)	$	47,745

	Assets at Fair Value at December 31, 2018
	Level 1		Level 2		Level 3		Netting and Collateral			Total
Marketable securities	$	32,064	$	—	$	—	$	—		$	32,064
Government debt		57,788		—		—		—			57,788
Securities owned—Equities		620		—		—		—			620
Foreign exchange/commodities options		482,751	—		—			(482,712	)		39
Forwards		—		253	—			(17	)		236
Foreign exchange swaps		—		1,938		—		(327	)		1,611
Futures		—		57,479		—		(57,386	)		93
Total	$	573,223	$	59,670	$	—	$	(540,442	)	$	92,451

	Liabilities at Fair Value at December 31, 2018
	Level 1		Level 2		Level 3		Netting and Collateral			Total
Foreign exchange/commodities options	$	570,728	$	—	$	—	$	(482,712	)	$	88,016
Foreign exchange swaps		—		2,399		—		(327	)		2,072
Forwards		—		656		—		(17	)		639
Futures		—		57,788		—		(57,386	)		402
Contingent consideration		—		—		45,984		—			45,984
Total	$	570,728	$	60,843	$	45,984	$	(540,442	)	$	137,113

Changes in Level 3 Financial Liabilities Measured at Fair Value on Recurring Basis

Level 3 Financial Liabilities

Changes in Level 3 liabilities measured at fair value on a recurring basis for the three months ended June 30, 2019 were as follows (in thousands):

	Opening Balance as of April 1, 2019		Total realized and unrealized gains (losses) included in Net income (loss)			Unrealized gains (losses) included in Other comprehensive income (loss)		Purchases/ Issuances		Sales/ Settlements			Closing Balance at June 30, 2019		Unrealized gains (losses) for Level 3 Assets / Liabilities Outstanding at June 30, 2019
Liabilities
Accounts payable, accrued and other liabilities:
Contingent consideration¹	$	42,139	$	(1,940	)	$	295		—	$	(1,632	)	$	42,152	$	(1,645	)

¹	^{Realized and unrealized gains (losses) are reported in “Other expenses” and “Other income (loss),” as applicable, in the Company’s unaudited condensed consolidated statements of operations.}

Changes in Level 3 liabilities measured at fair value on a recurring basis for the three months ended June 30, 2018 were as follows (in thousands):

	Opening Balance as of April 1, 2018		Total realized and unrealized gains (losses) included in Net income (loss)			Unrealized gains (losses) included in Other comprehensive income (loss)		Purchases/ Issuances		Sales/ Settlements			Closing Balance at June 30, 2018		Unrealized gains (losses) for Level 3 Assets / Liabilities Outstanding at June 30, 2018
Liabilities
Accounts payable, accrued and other liabilities:
Contingent consideration¹	$	34,347	$	(41	)	$	1,417	$	—	$	(3,187	)	$	29,784	$	1,376

¹	Realized and unrealized gains (losses) are reported in “Other expenses” and “Other income (loss),” as applicable, in the Company’s unaudited condensed consolidated statements of operations.

Changes in Level 3 liabilities measured at fair value on a recurring basis for the six months ended June 30, 2019 are as follows (in thousands):

	Opening Balance as of January 1, 2019		Total realized and unrealized gains (losses) included in Net income (loss)			Unrealized gains (losses) included in Other comprehensive income (loss)			Issuances		Settlements			Closing Balance at June 30, 2019		Unrealized gains (losses) for Level 3 Assets / Liabilities Outstanding at June 30, 2019
Liabilities
Accounts payable, accrued and other liabilities:
Contingent consideration¹	$	45,984	$	(3,422	)	$	(280	)	$	—	$	(7,534	)	$	42,152	$	(3,702	)

¹	^{Realized and unrealized gains (losses) are reported in “Other expenses” and “Other income (loss),” as applicable, in the Company’s unaudited condensed consolidated statements of operations.}

Changes in Level 3 liabilities measured at fair value on a recurring basis for the six months ended June 30, 2018 are as follows (in thousands):

	Opening Balance as of January 1, 2018		Total realized and unrealized gains (losses) included in Net income (loss)			Unrealized gains (losses) included in Other comprehensive income (loss)		Issuances		Settlements			Closing Balance at June 30, 2018		Unrealized gains (losses) for Level 3 Assets / Liabilities Outstanding at June 30, 2018
Liabilities
Accounts payable, accrued and other liabilities:
Contingent consideration¹	$	41,386	$	(881	)	$	554	$	22	$	(11,951	)	$	29,784	$	(328	)

¹	Realized and unrealized gains (losses) are reported in “Other expenses” and “Other income (loss),” as applicable, in the Company’s unaudited condensed consolidated statements of operations.

Quantitative Information about Level 3 Fair Value Measurements on Recurring Basis

The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurement of Level 3 liabilities measured at fair value on a recurring basis (in thousands):

Fair Value as of

June 30,

2019

Assets

Liabilities

Valuation Technique

Unobservable Inputs

Range

Weighted

Average

Contingent consideration

—

42,152

Present value of

expected payments

Discount rate

Probability

of meeting earnout

and contingencies

9.2%-10.3%

65%-100%

9.7%

89%¹

¹	The probability of meeting the earnout targets was based on the acquired businesses’ projected future financial performance, including revenues.