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Investments (Tables)
 6 Months Ended
Jun. 30, 2012
Investments [Abstract]  
Investment holdings by type of instrument

The following table presents the Company’s investment holdings by type of instrument as of the periods presented (in thousands):

 

                                                 
    As of June 30, 2012     As of December 31, 2011  
    Cost or
Amortized
Cost		     Fair Value     Carrying
Value		     Cost or
Amortized
Cost		     Fair Value     Carrying
Value		  

Cash and cash equivalents (1)

   $ 356,325     $ 356,325     $ 356,325     $ 229,685     $ 229,685     $ 229,685  

Restricted cash and cash equivalents (1)

     74,274       74,274       74,274       78,312       78,312       78,312  

Trading portfolio:

                                                

Debt securities:

                                                

U.S. government obligations and agencies (2)

     3,342       3,913       3,913       3,179       3,801       3,801  

Equity securities:

                                                

Common stock:

                                                

Metals and mining

     30,637       23,546       23,546       50,121       38,816       38,816  

Energy

     11,854       8,962       8,962       6,077       4,999       4,999  

Other

     2,904       2,517       2,517       8,044       6,945       6,945  

Exchange-traded and mutual funds:

                                                

Metals and mining

     24,140       22,437       22,437       28,311       25,997       25,997  

Agriculture

     18,761       18,172       18,172       17,781       16,878       16,878  

Energy

     4,420       4,090       4,090       —         —         —    

Indices

     2,378       1,989       1,989       2,006       1,710       1,710  

Non-hedging derivative asset (3)

     147       31       31       357       123       123  

Non-hedging derivative (liability) (3)

     (174 )      (174 )      (174 )      —         —         —    

Other investments (4)

     517       344       344       517       371       371  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total trading portfolio investments

     98,926       85,827       85,827       116,393       99,640       99,640  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investments

   $ 529,525     $ 516,426     $ 516,426     $ 424,390     $ 407,637     $ 407,637  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Cash and cash equivalents include short-term debt securities consisting of direct obligations of the U.S. Treasury or money-market accounts that invest in direct obligations of the U.S. Treasury.
(2) The Company is required by various state laws and regulations to maintain certain securities on deposit in depositary accounts with the states in which we do business. As of June 30, 2012 and December 31, 2011, securities having fair values of $3.9 million and $3.8 million, respectively, were on deposit. These laws and regulations govern not only the amount, but also the type of security that is eligible for deposit.
(3) Derivatives are included in Other assets and Other liabilities and accrued expenses in the Condensed Consolidated Balance Sheets.
(4) Other investments represent physical metals held by the Company and are included in Other assets in the Condensed Consolidated Balance Sheets.
Investment income comprised primarily of interest and dividends

The following table presents net investment income (expense) comprised primarily of interest and dividends (in thousands):

 

                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2012     2011     2012     2011  

Cash and cash equivalents (1)

   $ 60     $ 35     $ 239     $ 50  

Debt securities

     1       67       11       468  

Equity securities

     160       34       219       60  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total investment income

     221       136       469       578  

Less investment expenses

     (237 )      (157 )      (521 )      (342 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Net investment (expense) income

   $ (16 )    $ (21 )    $ (52 )    $ 236  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Includes interest earned on restricted cash and cash equivalents.
Effect of trading activities by type of instrument and by line item in the condensed consolidated statements of income

The following table presents the effect of trading activities on the Company’s results of operations by type of instrument and by line item in the condensed consolidated statements of income (in thousands):

 

                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2012     2011     2012     2011  

Realized gains (losses) on investments:

                                

Debt securities

   $ —       $ 523     $ —       $ (3,617 ) 

Equity securities

     (1,836 )      2,682       (9,429 )      10,867  

Derivatives (non-hedging instruments) (1)

     131       (245 )      275       (638 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Total realized gains (losses) on trading portfolio

     (1,705 )      2,960       (9,154 )      6,612  

Unrealized gains (losses) on investments:

                                

Debt securities

     100       2,741       137       8,260  

Equity securities

     (5,817 )      (11,699 )      3,172       (14,894 ) 

Derivatives (non-hedging instruments) (1)

     (30 )      (681 )      117       (418 ) 

Other

     (41 )      —         (27 )      —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Total unrealized gains (losses) on trading portfolio

     (5,788 )      (9,639 )      3,399       (7,052 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Net gains (losses) recognized on trading securities

   $ (7,493 )    $ (6,679 )    $ (5,755 )    $ (440 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) This table represents the alternative quantitative disclosures permitted for derivatives that are not used as hedging instruments and are included in the trading portfolio.