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Fair Value Measurements
 6 Months Ended
Jun. 30, 2011
Fair Value Measurements [Abstract]  
FAIR VALUE MEASUREMENTS
13. Fair Value Measurements
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. GAAP describes three approaches to measuring the fair value of assets and liabilities: the market approach, the income approach and the cost approach. Each approach includes multiple valuation techniques. GAAP does not prescribe which valuation technique should be used when measuring fair value, but does establish a fair value hierarchy that prioritizes the inputs used in applying the various techniques. Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk. Level 1inputs are given the highest priority in the hierarchy while Level 3 inputs are given the lowest priority. Assets and liabilities carried at fair value are classified in one of the following three categories based on the nature of the inputs to the valuation technique used:
•   Level 1 — Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
 
•   Level 2 — Observable market-based inputs or unobservable inputs that are corroborated by market data.
 
•   Level 3 — Unobservable inputs that are not corroborated by market data. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability.
Summary of significant valuation techniques for assets measured at fair value on a recurring basis
Level 1
Cash equivalents: Comprise actively traded money market funds that have daily quoted net asset values for identical assets that the Company can access.
U.S. government obligations and agencies: Comprise U.S. Treasury Notes. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.
Common stock: Comprise actively traded, exchange-listed U.S. and international equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.
Exchange traded and mutual funds: Comprise actively traded funds. Valuation is based on daily quoted net asset values for identical assets in active markets that the Company can access.
Level 2
U.S. government obligations and agencies: Comprise U.S. Treasury Inflation Index Bonds. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads.
Exchange-traded derivatives: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active.
As required by GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect their placement within the fair value hierarchy levels.
The following tables set forth by level within the fair value hierarchy the Company’s assets that were accounted for at fair value on a recurring basis as of June 30, 2011 and December 31, 2010 (in thousands):
                                 
    As of June 30, 2011  
    Fair Value Measurements  
    Level 1     Level 2     Level 3     Total  
Cash equivalents
  $ 352,464     $ —     $ —     $ 352,464  
Investment securities (trading):
                               
Debt securities:
                               
US government obligations and agencies
    177       3,418       —       3,595  
Equity securities:
                               
Common stock:
                               
Metals and mining
    33,537       —       —       33,537  
Other
    1,315       —       —       1,315  
Exchange-traded and mutual funds:
                               
Metals and mining
    33,634       —       —       33,634  
Agriculture
    18,761       —       —       18,761  
Energy
    2,215       —       —       2,215  
Indices
    —       —       —       —  
Other
    2,888       —       —       2,888  
 
                       
Total equity securities
    92,350       —       —       92,350  
 
                       
Non-hedge exchange-traded derivatives (other assets)
    —       739       —       739  
 
                       
Total
  $ 444,991     $ 4,157     $ —     $ 449,148  
 
                       
                                 
    As of December 31, 2010  
    Fair Value Measurements  
    Level 1     Level 2     Level 3     Total  
Cash equivalents
  $ 145,121     $ —     $ —     $ 145,121  
Investment securities (trading):
                               
Debt securities:
                               
US government obligations and agencies
    179       129,937       —       130,116  
Equity securities:
                               
Common stock:
                               
Metals and mining
    25,752       —       —       25,752  
Other
    362       —       —       362  
Exchange-traded and mutual funds:
                               
Metals and mining
    42,209       —       —       42,209  
Agriculture
    14,877       —       —       14,877  
Energy
    5,559       —       —       5,559  
Indices
    4,613       —       —       4,613  
Other
    1,044       —       —       1,044  
 
                       
Total equity securities
    94,416       —       —       94,416  
 
                       
Non-hedge exchange-traded derivatives (other assets)
    —       182       —       182  
 
                       
Total
  $ 239,716     $ 130,119     $ —     $ 369,835  
 
                       
The Company did not have any transfers between Level 1 and Level 2 for the six-month periods ended June 30, 2011 and 2010.
The following table summarizes the carrying value, net unrealized gains (losses) and estimated fair values of the Company’s financial instruments that are not carried at fair value (in thousands).
                         
    As of June 30, 2011  
    Fair Value Measurements  
            Net unrealized     Estimated Fair  
    Carrying value     Gains/(Losses)     Value  
Assets:
                       
Cash
  $ 4,275     $ —     $ 4,275  
 
                 
 
  $ 4,275     $ —     $ 4,275  
 
                 
 
                       
Liabilities:
                       
Long-term debt
  $ 22,427     $ (5,021 )   $ 17,405  
 
                 
 
  $ 22,427     $ (5,021 )   $ 17,405  
 
                 
                         
    As of December 31, 2010  
    Fair Value Measurements  
            Net unrealized     Estimated Fair  
    Carrying value     Gains/(Losses)     Value  
Assets:
                       
Cash
  $ 2,464     $ —     $ 2,464  
 
                 
 
  $ 2,464     $ —     $ 2,464  
 
                 
 
                       
Liabilities:
                       
Long-term debt
  $ 23,162     $ (4,063 )   $ 19,099  
 
                 
 
  $ 23,162     $ (4,063 )   $ 19,099  
 
                 
The carrying value of cash approximates fair value due to its liquid nature.
The carrying value of long term debt was determined from the expected cash flows discounted using the interest rate quoted by the issuer of the note, the State Board of Administration of Florida (“SBA”) which is below prevailing rates quoted by private lending institutions. However, as the Company’s use of funds from the surplus note is limited by the terms of the agreement, the Company has determined the interest rate quoted by the SBA to be appropriate for purposes of establishing the fair value of the note.