XML 31 R20.htm IDEA: XBRL DOCUMENT
v3.24.3

Fair Value of Financial Assets and Liabilities | 9 Months Ended
--- | ---
Sep. 30, 2024
Fair Value Disclosures [Abstract] |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities Fair Value Measurements on a Recurring Basis 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 September 30, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Netting and Collateral |  | Total
Financial instruments owned, at fair value—Domestic government debt | $ | 194,309 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 194,309 |
Financial instruments owned, at fair value—Foreign government debt | — |  |  | 15,879 |  |  | — |  |  | — |  |  | 15,879 |
Financial instruments owned, at fair value—Equities | 636 |  |  | — |  |  | — |  |  | — |  |  | 636 |
Financial instruments owned, at fair value—Corporate bonds | — |  |  | 202 |  |  | — |  |  | — |  |  | 202 |
FX swaps | — |  |  | 4,477 |  |  | — |  |  | (724) |  |  | 3,753 |
Forwards | — |  |  | 1,341 |  |  | — |  |  | (77) |  |  | 1,264 |
Interest rate swaps | — |  |  | 6,127 |  |  | — |  |  | (6,040) |  |  | 87 |
Futures | 55,742 |  |  | — |  |  | — |  |  | (55,742) |  |  | — |
Total | $ | 250,687 |  |  | $ | 28,026 |  |  | $ | — |  |  | $ | (62,583) |  |  | $ | 216,130 |
| Liabilities at Fair Value at September 30, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Netting and Collateral |  | Total
FX swaps | $ | — |  |  | $ | 6,662 |  |  | $ | — |  |  | $ | (724) |  |  | $ | 5,938 |
Forwards | — |  |  | 780 |  |  | — |  |  | (77) |  |  | 703 |
Futures | 55,791 |  |  | — |  |  | — |  |  | (55,742) |  |  | 49 |
Interest rate swaps | — |  |  | 6,040 |  |  | — |  |  | (6,040) |  |  | — |
Contingent consideration | — |  |  | — |  |  | 8,788 |  |  | — |  |  | 8,788 |
Total | $ | 55,791 |  |  | $ | 13,482 |  |  | $ | 8,788 |  |  | $ | (62,583) |  |  | $ | 15,478 |
| Assets at Fair Value at December 31, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | Netting and Collateral |  | Total
Financial instruments owned, at fair value—Domestic government debt | $ | 31,141 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 31,141 |
Financial instruments owned, at fair value—Foreign government debt | — |  |  | 14,164 |  |  | — |  |  | — |  |  | 14,164 |
Financial instruments owned, at fair value—Equities | 487 |  |  | — |  |  | — |  |  | — |  |  | 487 |
FX swaps | — |  |  | 3,467 |  |  | — |  |  | (793) |  |  | 2,674 |
Forwards | — |  |  | 855 |  |  | — |  |  | (50) |  |  | 805 |
Interest rate swaps | — |  |  | 12,310 |  |  | — |  |  | (12,182) |  |  | 128 |
Futures | — |  |  | 62,693 |  |  | — |  |  | (62,693) |  |  | — |
Total | $ | 31,628 |  |  | $ | 93,489 |  |  | $ | — |  |  | $ | (75,718) |  |  | $ | 49,399 |
| Liabilities at Fair Value at December 31, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | Netting and Collateral |  | Total
FX swaps | $ | — |  |  | $ | 5,912 |  |  | $ | — |  |  | $ | (793) |  |  | $ | 5,119 |
Forwards | — |  |  | 659 |  |  | — |  |  | (50) |  |  | 609 |
Futures | — |  |  | 62,721 |  |  | — |  |  | (62,693) |  |  | 28 |
Interest rate swaps | — |  |  | 12,182 |  |  | — |  |  | (12,182) |  |  | — |
Contingent consideration | — |  |  | — |  |  | 11,929 |  |  | — |  |  | 11,929 |
Total | $ | — |  |  | $ | 81,474 |  |  | $ | 11,929 |  |  | $ | (75,718) |  |  | $ | 17,685 |
Level 3 Financial Liabilities Changes in Level 3 liabilities measured at fair value on a recurring basis for the three months ended September 30, 2024 were as follows (in thousands):
|  |  |  |  |  |  |  |  |  |  | Unrealized (gains) losses for the period included in:
| Opening Balance at July 1, 2024 |  | Total realized and unrealized (gains) losses included in Net income (loss)¹ |  | Purchases/ Issuances |  | Sales/ Settlements |  | Closing Balance at September 30, 2024 |  | Net (income) loss on Level 3 Assets/Liabilities Outstanding at September 30, 2024 |  | Other comprehensive income (loss) on Level 3 Assets/Liabilities Outstanding at September 30, 2024
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued and other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration | $ | 8,631 |  |  | $ | 754 |  |  | $ | — |  |  | $ | (597) |  |  | $ | 8,788 |  |  | $ | 754 |  |  | $ | — |
____________________________ 1 Realized and unrealized gains (losses) are reported in “Other income (loss)” 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 September 30, 2023 were as follows (in thousands):
|  |  |  |  |  |  |  |  |  |  |  |  | Unrealized (gains) losses for the period included in:
| Opening Balance at July 1, 2023 |  | Total realized and unrealized (gains) losses included in Net income (loss)¹ |  |  |  | Purchases/ Issuances 2 |  | Sales/ Settlements |  | Closing Balance at September 30, 2023 |  | Net (income) loss on Level 3 Assets/Liabilities Outstanding at September 30, 2023 |  | Other comprehensive income (loss) on Level 3 Assets/Liabilities Outstanding at September 30, 2023
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued and other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration | $ | 8,909 |  |  | $ | 110 |  |  |  |  | $ | (2,176) |  |  | $ | (844) |  |  | $ | 5,999 |  |  | $ | 44 |  |  | $ | — |
____________________________ 1 Realized and unrealized gains (losses) are reported in “Other income (loss)” in the Company’s unaudited Condensed Consolidated Statements of Operations. 2 For the three months ended September 30, 2023, a $2.2 million measurement period adjustment is included in “Purchases/Issuances” relating to the Trident Acquisition (see Note 16—“Goodwill and Other Intangible Assets, Net” for additional information). Changes in Level 3 liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2024 were as follows (in thousands):
|  |  |  |  |  |  |  |  |  |  | Unrealized (gains) losses for the period included in:
| Opening Balance at January 1, 2024 |  | Total realized and unrealized (gains) losses included in Net income (loss)¹ |  | Purchases/ Issuances |  | Sales/ Settlements |  | Closing Balance at September 30, 2024 |  | Net income (loss) on Level 3 Assets / Liabilities Outstanding at September 30, 2024 |  | Other comprehensive income (loss) on Level 3 Assets / Liabilities Outstanding at September 30, 2024
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued and other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration | $ | 11,929 |  |  | $ | 499 |  |  | $ | — |  |  | $ | (3,640) |  |  | $ | 8,788 |  |  | $ | 499 |  |  | $ | — |
____________________________ 1 Realized and unrealized gains (losses) are reported in “Other income (loss)” 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 nine months ended September 30, 2023 were as follows (in thousands):
|  |  |  |  |  |  |  |  |  |  |  |  | Unrealized (gains) losses for the period included in:
| Opening Balance at January 1, 2023 |  | Total realized and unrealized (gains) losses included in Net income (loss)¹ |  |  |  | Purchases/ Issuances 2 |  | Sales/ Settlements |  | Closing Balance at September 30, 2023 |  | Net income (loss) on Level 3 Assets / Liabilities Outstanding at September 30, 2023 |  | Other comprehensive income (loss) on Level 3 Assets / Liabilities Outstanding at September 30, 2023
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued and other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration | $ | 24,279 |  |  | $ | 723 |  |  |  |  | $ | 2,499 |  |  | $ | (21,502) |  |  | $ | 5,999 |  |  | $ | 116 |  |  | $ | — |
____________________________ 1 Realized and unrealized gains (losses) are reported in “Other income (loss)” in the Company’s unaudited Condensed Consolidated Statements of Operations. 2 For the nine months ended September 30, 2023, a $2.2 million measurement period adjustment is included in “Purchases/Issuances” relating to the Trident Acquisition (see Note 16—“Goodwill and Other Intangible Assets, Net” for additional information). Quantitative Information About Level 3 Fair Value Measurements on a 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 (dollar amounts in thousands):
| Fair Value as of September 30, 2024 |  |  |  |  |  |  |  |
| Assets |  | Liabilities |  | Valuation Technique |  | Unobservable Inputs |  | Range |  | Weighted Average
|  |  |  |  |  |  | Discount rate 1 |  | 7.2%-9.2% |  | 8.7%
Contingent consideration | $ | — |  |  | $ | 8,788 |  |  | Present value of expected payments |  | Probability of meeting earnout and contingencies |  | 20%-100% |  | 86.4%2
____________________________ 1 The discount rate is based on the Company’s calculated weighted-average cost of capital. 2 The probability of meeting the earnout targets was based on the acquirees’ projected future financial performance, including revenues.
| Fair Value as of December 31, 2023 |  |  |  |  |  |  |  |
| Assets |  | Liabilities |  | Valuation Technique |  | Unobservable Inputs |  | Range |  | Weighted Average
|  |  |  |  |  |  | Discount rate 1 |  | 7.2%-9.2% |  | 8.6%
Contingent consideration | $ | — |  |  | $ | 11,929 |  |  | Present value of expected payments |  | Probability of meeting earnout and contingencies |  | 20%-100% |  | 86.5%2
____________________________ 1 The discount rate is based on the Company’s calculated weighted-average cost of capital. 2 The probability of meeting the earnout targets was based on the acquirees’ projected future financial performance, including revenues. Information About Uncertainty of Level 3 Fair Value Measurements The significant unobservable inputs used in the fair value of the Company’s contingent consideration are the discount rate and forecasted financial information. Significant increases (decreases) in the discount rate would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the forecasted financial information would have resulted in a significantly higher (lower) fair value measurement. As of September 30, 2024 and December 31, 2023, the present value of expected payments related to the Company’s contingent consideration was $8.8 million and $11.9 million, respectively. The undiscounted value of the payments, assuming that all contingencies are met, was $18.0 million and $18.6 million as of September 30, 2024 and December 31, 2023, respectively. Fair Value Measurements on a Non-Recurring Basis Pursuant to the recognition and measurement guidance for equity investments, equity investments carried under the measurement alternative are remeasured at fair value on a non-recurring basis to reflect observable transactions which occurred during the period. The Company applied the measurement alternative to equity securities with the fair value of $126.1 million and $85.8 million as of September 30, 2024 and December 31, 2023, respectively, which were included in “Other assets” in the Company’s unaudited Condensed Consolidated Statements of Financial Condition. These investments are classified within Level 2 in the fair value hierarchy, because their estimated fair value is based on valuation methods using the observable transaction price at the transaction date.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration