3. Investments and Fair Value Measurements

The following table is a summary of the Company’s investments:


	September 30, 2015		December 31, 2014
	Held-to- Maturity		Held-to- Maturity
Federal agency debt instruments	$	23,651	$	13,990

The following table summarizes unrealized gains, losses and fair value of investments:


	September 30, 2015			December 31, 2014
	Held-to- Maturity			Held-to- Maturity
Cost/amortized cost	$	23,651		$	13,990
Gross unrealized gains		124			112
Gross unrealized losses		(353	)		(386	)

Fair value	$	23,422		$	13,716

The following table sets forth the maturity profile of investments; however these investments may be called prior to maturity date:


	September 30, 2015		December 31, 2014
	Held-to- Maturity		Held-to- Maturity
Due within one year	$	—	$	—
Due one year through five years		11,373		1,409
Due five years through ten years		1,115		350
Due over ten years		11,163		12,231

Total	$	23,651	$	13,990

Fair Value Measurement

Under the accounting for fair value measurements and disclosures, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions.

These three types of inputs create the following fair value hierarchy:

Level 1—Quoted prices for identical instruments in active markets.

Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3—Instruments whose significant value drivers are unobservable.

This hierarchy requires the use of observable market data when available. The Company’s held-to-maturity securities are categorized as Level 1.

The majority of the Company’s acquisition payable of $2,449 is measured at fair value and is categorized as Level 3. Fair value is determined based on a predefined formula which includes observable and unobservable inputs and is subject in part to a minimum payout. Inputs to the predefined formula include the contractual minimum payment obligation, European AUM, the Company’s enterprise value over global AUM, and profitability of the European business (Note 11). During the three and nine months ended September 30, 2015, the Company recorded an acquisition contingent payment expense of $172 and $693, respectively, which represents the expense accrual for expected payments due to the former Boost shareholders primarily driven by increased AUM from the Company’s European business.

Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature.