Investments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

The Company's recurring financial assets and liabilities subject to fair value measurements are as follows:



	Fair Value Measurements as of June 30, 2015
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds	$	109,209	$	109,209	$	—	$	—
Certificates of deposit	4,790		—		4,790		—
Bonds	12,368		12,368		—		—
Investment securities available for sale
Equity securities	158,274		157,958		316		—
Mutual funds invested in fixed income securities	60,441		60,441		—		—
Fixed income securities
U.S. Government securities	33,886		—		33,886		—
Corporate securities	51,937		—		51,937		—
U.S. mortgage backed securities	6,757		—		6,757		—
Commercial mortgage-backed securities	15,758		—		15,758		—
U.S. asset backed securities	13,393		—		13,393		—
Index-linked U.S. bonds	2,131		—		2,131		—
Total fixed income securities	123,862		—		123,862		—

Warrants (1)	1,859		—		—		1,859
Total	$	470,803	$	339,976	$	128,968	$	1,859

Liabilities:
Fair value of derivatives embedded within convertible debt	$	156,783	$	—	$	—	$	156,783


(1)	Warrants are 1,000,000 warrants to purchase Ladenburg Thalmann Financial Services Inc. (“LTS”) common stock received on November 4, 2011 which were carried at $1,859 as of June 30, 2015 and are included in “Other assets.” The Company recognized a loss of $483 for the six months ended June 30, 2015 related to the change in fair value of the Warrants.



	Fair Value Measurements as of December 31, 2014
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds	$	205,180	$	205,180	$	—	$	—
Certificates of deposit	3,462		—		3,462		—
Bonds	4,868		4,868		—		—
Investment securities available for sale
Equity securities	154,192		153,666		526		—
Mutual funds invested in fixed income securities	59,826		59,826		—		—
Fixed income securities
U.S. Government securities	35,446		—		35,446		—
Corporate securities	56,248		7,397		48,851		—
U.S. Government and federal agency	4,770		—		4,770		—
Commercial mortgage-backed securities	16,508		—		16,508		—
U.S. asset-backed securities	16,955		—		16,955		—
Index-linked U.S. bonds	2,098		—		2,098		—
Total fixed income securities	132,025		7,397		124,628		—

Warrants (1)	2,342		—		—		2,342
Total	$	561,895	$	430,937	$	128,616	$	2,342

Liabilities:

Fair value of derivatives embedded within convertible debt	$	169,386	$	—	$	—	$	169,386


(1)	Warrants include 1,000,000 of LTS Warrants received on November 4, 2011 which were carried at $2,342 as of December 31, 2014 and are included in “Other assets.” The Company recognized income of $584 for the year ended December 31, 2014 related to the change in fair value of the Warrants. The Company recognized a loss of $111 for the six months ended June 30, 2014.

The unobservable inputs related to the valuations of the Level 3 assets and liabilities are as follows at June 30, 2015:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	June 30, 2015		Valuation Technique	Unobservable Input	Range (Actual)

Warrant	$	1,859	Option model	Stock price	$	3.50
				Exercise price	$	1.68
				Term (in years)	1.3
				Volatility	39.30		%
				Dividend rate	—
				Risk-free return	0.70		%

Fair value of derivatives embedded within convertible debt	$	156,783	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	23.46
				Convertible trading price	110.12		%
				Volatility	16		%
				Implied credit spread	6.0% - 7.0% (6.5%)

The unobservable inputs related to the valuations of the Level 3 assets and liabilities are as follows at December 31, 2014:



	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at
	December 31, 2014		Valuation Technique	Unobservable Input	Range (Actual)

Warrants	$	2,342	Option model	Stock price	$	3.95
				Exercise price	$	1.68
				Term (in years)	1.8
				Volatility	44.42		%
				Dividend rate	—
				Risk-free return	0.70		%

Fair value of derivatives embedded within convertible debt	$	169,386	Discounted cash flow	Assumed annual stock dividend	5		%
				Assumed annual cash dividend	$	1.60
				Stock price	$	21.31
				Convertible trading price	106.8		%
				Volatility	16.00		%
				Implied credit spread	6.25% - 7.25% (6.75%)