Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 15, 2023 | Jun. 30, 2022 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34963 | ||
Entity Registrant Name | LPL Financial Holdings Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-3717839 | ||
Entity Address, Address Line One | 4707 Executive Drive, | ||
Entity Address, City or Town | San Diego, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92121 | ||
City Area Code | (800) | ||
Local Phone Number | 877-7210 | ||
Title of 12(b) Security | Common Stock — $0.001 par value per share | ||
Trading Symbol | LPLA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14.7 | ||
Entity Common Stock, Shares Outstanding | 78,673,766 | ||
Documents Incorporated by Reference [Text Block] | Portions of the definitive Proxy Statement for the Annual Meeting of Stockholders, which the Company intends to file within 120 days of the fiscal year ended December 31, 2022, are incorporated by reference into Part III. | ||
Entity Central Index Key | 0001397911 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor [Line Items] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | San Diego, California |
Auditor Firm ID | 34 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commission | $ 2,326,164 | $ 2,378,683 | $ 1,906,560 |
Asset-Based Revenues | 1,760,273 | 1,148,067 | 1,044,517 |
REVENUES: | |||
Advisory | 3,875,154 | 3,525,430 | 2,327,519 |
Asset-based | 1,760,273 | 1,148,067 | 1,044,517 |
Service and fee | 467,381 | 411,761 | 357,722 |
Transaction and fee | 181,260 | 156,336 | 148,349 |
Interest income, net | 77,126 | 28,577 | 29,412 |
Other | (86,533) | 71,976 | 57,561 |
Total net revenues | 8,600,825 | 7,720,830 | 5,871,640 |
EXPENSE | |||
Commission and advisory | 5,324,827 | 5,180,090 | 3,697,147 |
Compensation and benefits | 820,736 | 741,003 | 609,257 |
Promotional | 339,994 | 302,285 | 208,250 |
Occupancy and equipment | 219,798 | 185,531 | 166,389 |
Depreciation, Depletion and Amortization, Nonproduction | 199,817 | 151,428 | 109,732 |
Interest Expense, Debt | 126,234 | 104,414 | 105,765 |
Brokerage, clearing, and exchange | 86,063 | 86,023 | 71,185 |
Amortization of other intangibles | 87,560 | 79,260 | 67,358 |
Professional services | 72,519 | 73,231 | 57,067 |
Communications and data processing | 67,687 | 60,296 | 52,399 |
Gain (Loss) on Extinguishment of Debt | 0 | 24,400 | 0 |
Other | 143,937 | 131,540 | 101,018 |
Total expense | 7,489,172 | 7,119,501 | 5,245,567 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 1,111,653 | 601,329 | 626,073 |
PROVISION FOR INCOME TAXES | 265,951 | 141,463 | 153,433 |
NET INCOME | $ 845,702 | $ 459,866 | $ 472,640 |
Earnings Per Share [Abstract] | |||
Earnings Per Share, Basic | $ 10.60 | $ 5.75 | $ 5.96 |
Earnings Per Share, Diluted | $ 10.40 | $ 5.63 | $ 5.86 |
Weighted-average shares outstanding, basic | 79,801,000 | 80,002,000 | 79,244,000 |
Weighted-average shares outstanding, diluted | 81,285,000 | 81,742,000 | 80,702,000 |
Trailing | |||
Commission | $ 1,292,358 | $ 1,404,628 | $ 1,135,796 |
Other Asset Based Fees | |||
Asset-Based Revenues | 806,649 | 787,220 | 563,129 |
REVENUES: | |||
Asset-based | 806,649 | 787,220 | 563,129 |
Sales-Based | |||
Commission | 1,033,806 | 974,055 | 770,764 |
Client Cash [Member] | |||
Asset-Based Revenues | 953,624 | 360,847 | 481,388 |
REVENUES: | |||
Asset-based | $ 953,624 | $ 360,847 | $ 481,388 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and equivalents | $ 847,519 | $ 495,246 |
Cash and equivalents segregated under federal or other regulations | 2,199,362 | 1,496,463 |
Restricted cash | 90,389 | 80,655 |
Receivables from clients, net | 561,569 | 578,889 |
Receivables from brokers, dealers and clearing organizations | 56,276 | 102,503 |
Advisor loans, net | 1,123,004 | 963,869 |
Other receivables, net | 677,766 | 581,483 |
Investment securities | 52,610 | 49,192 |
Property and equipment, net | 780,357 | 658,841 |
Goodwill | 1,642,468 | 1,642,443 |
Other intangibles, net | 427,676 | 455,028 |
Other assets | 1,023,230 | 886,988 |
Total assets | 9,482,226 | 7,991,600 |
LIABILITIES: | ||
Client payables | 2,694,929 | 1,712,224 |
Payables to brokers, dealers and clearing organizations | 147,752 | 170,119 |
Accrued advisory and commission expenses payable | 203,292 | 222,379 |
Corporate debt and other borrowings, net | 2,717,444 | 2,814,044 |
Accounts payable and accrued liabilities | 448,630 | 384,025 |
Other Liabilities | 1,102,627 | 1,018,276 |
Liabilities, Total | 7,314,674 | 6,321,067 |
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.001 par value; 600,000,000 shares authorized; 129,655,843 shares and 128,758,086 shares issued at December 31, 2022 and 2021, respectively | 130 | 129 |
Additional paid-in capital | 1,912,886 | 1,841,402 |
Treasury stock, at cost — 50,407,844 shares and 48,768,145 shares at December 31, 2022 and 2021, respectively | (2,846,536) | (2,498,600) |
Retained earnings | 3,101,072 | 2,327,602 |
Total stockholders’ equity | 2,167,552 | 1,670,533 |
Total liabilities and stockholders’ equity | $ 9,482,226 | $ 7,991,600 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | |
Common stock, shares authorized | 600,000,000 | |
Common stock, shares issued | 129,655,843 | 128,758,086 |
Treasury stock, shares | 50,407,844 | 48,768,145 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Cumulative effect of accounting change | Cumulative effect of accounting change Retained Earnings |
BEGINNING BALANCE at Dec. 31, 2019 | $ 1,023,873 | $ 126 | $ 1,703,973 | $ (2,234,793) | $ 1,554,567 | $ (7,317) | $ (7,317) |
BEGINNING BALANCE, shares at Dec. 31, 2019 | 126,494,000 | 46,260,000 | |||||
Net income (loss) and other comprehensive income (loss), net of tax expense | 472,640 | 472,640 | |||||
Issuance of common stock to settle restricted stock units | (9,420) | $ 0 | 0 | $ (9,420) | |||
Issuance of common stock to settle restricted stock units, shares | 417,000 | 134,000 | |||||
Treasury stock purchases | (150,036) | $ (150,036) | |||||
Treasury stock purchases, shares | 1,810,000 | ||||||
Cash dividends on common stock | (79,097) | (79,097) | |||||
Stock options exercises and other | 30,236 | $ 1 | 24,822 | $ 3,187 | 2,226 | ||
Stock options exercises and other, shares | 675,000 | (89,000) | |||||
Share-based compensation | 33,975 | 33,975 | |||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | $ 0 | ||||||
Share-based compensation, shares | 0 | ||||||
ENDING BALANCE at Dec. 31, 2020 | 1,314,854 | $ 127 | 1,762,770 | $ (2,391,062) | 1,943,019 | ||
ENDING BALANCE, shares at Dec. 31, 2020 | 127,586,000 | 48,115,000 | |||||
Net income (loss) and other comprehensive income (loss), net of tax expense | 459,866 | 459,866 | |||||
Issuance of common stock to settle restricted stock units | (20,230) | $ 0 | 0 | $ (20,230) | |||
Issuance of common stock to settle restricted stock units, shares | 406,000 | 147,000 | |||||
Treasury stock purchases | (90,011) | $ (90,011) | |||||
Treasury stock purchases, shares | 580,000 | ||||||
Cash dividends on common stock | (80,095) | (80,095) | |||||
Stock options exercises and other | 41,974 | $ 2 | 34,457 | $ 2,703 | 4,812 | ||
Stock options exercises and other, shares | 766,000 | (74,000) | |||||
Share-based compensation | 44,175 | 44,175 | |||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | $ 0 | ||||||
Share-based compensation, shares | 0 | ||||||
ENDING BALANCE at Dec. 31, 2021 | 1,670,533 | $ 129 | 1,841,402 | $ (2,498,600) | 2,327,602 | ||
ENDING BALANCE, shares at Dec. 31, 2021 | 128,758,000 | 48,768,000 | |||||
Net income (loss) and other comprehensive income (loss), net of tax expense | 845,702 | 845,702 | |||||
Issuance of common stock to settle restricted stock units | (25,157) | $ 0 | 0 | $ (25,157) | |||
Issuance of common stock to settle restricted stock units, shares | 368,000 | 136,000 | |||||
Treasury stock purchases | $ (325,031) | $ (325,031) | |||||
Treasury stock purchases, shares | 1,566,527 | 1,566,000 | |||||
Cash dividends on common stock | $ (79,833) | (79,833) | |||||
Stock options exercises and other | 28,730 | $ 1 | 18,876 | $ 2,252 | 7,601 | ||
Stock options exercises and other, shares | 530,000 | (62,000) | |||||
Share-based compensation | 52,608 | 52,608 | |||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | $ 0 | ||||||
Share-based compensation, shares | 0 | ||||||
ENDING BALANCE at Dec. 31, 2022 | $ 2,167,552 | $ 130 | $ 1,912,886 | $ (2,846,536) | $ 3,101,072 | ||
ENDING BALANCE, shares at Dec. 31, 2022 | 129,656,000 | 50,408,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Dividend per share (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 1 | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 845,702 | $ 459,866 | $ 472,640 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 199,817 | 151,428 | 109,732 |
Amortization of other intangibles | 87,560 | 79,260 | 67,358 |
Amortization of debt issuance costs | 6,853 | 5,733 | 5,384 |
Share-based compensation | 52,608 | 44,175 | 33,975 |
Provision for credit losses | 13,667 | 9,168 | 5,824 |
Deferred (benefit) provision for income taxes | (93,349) | 18,464 | (23,684) |
Loss on extinguishment of debt | 0 | 24,400 | 0 |
Loan forgiveness | 179,529 | 151,427 | 113,126 |
Other | 14,783 | (10,007) | (12,673) |
Changes in operating assets and liabilities: | |||
Receivables from clients, net | 17,254 | (174,236) | 28,475 |
Receivables from brokers, dealers and clearing organizations | 46,227 | (4,764) | (57,372) |
Advisor loans, net | (341,872) | (526,677) | (219,813) |
Other receivables, net | (107,588) | (140,021) | (18,480) |
Investment securities - trading | (73) | (8,732) | 16,072 |
Other assets | (148,263) | (136,182) | (126,641) |
Client payables | 982,705 | 177,703 | 256,977 |
Payables to brokers, dealers and clearing organizations | (22,367) | 80,376 | (2,259) |
Accrued advisory and commission expenses payable | (19,087) | 29,771 | 12,710 |
Accounts payable and accrued liabilities | 50,664 | 12,390 | (6,585) |
Other liabilities | 183,381 | 211,819 | 137,142 |
Operating lease assets | (2,574) | (2,227) | (1,967) |
Net cash provided by operating activities | 1,945,577 | 453,134 | 789,941 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (306,596) | (215,987) | (155,532) |
Acquisitions, net of cash acquired | (56,458) | (245,913) | (30,556) |
Purchases of securities classified as held-to-maturity | (10,936) | (1,741) | (6,511) |
Proceeds from maturities of securities classified as held-to-maturity | 5,000 | 5,000 | 5,100 |
Payments to Acquire Investments | (7,410) | 0 | 0 |
Net cash used in investing activities | (376,400) | (458,641) | (187,499) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from revolving credit facilities | 815,000 | 1,585,000 | 1,806,000 |
Repayments of revolving credit facilities | (905,000) | (1,495,000) | (1,851,000) |
Repayment of senior secured term loans | (10,700) | (10,700) | (10,700) |
Repayments of Unsecured Debt | 0 | (900,000) | 0 |
Proceeds from Issuance of Senior Long-term Debt | 0 | 1,300,000 | 0 |
Payment of debt issuance costs | (1,872) | (15,929) | 0 |
Make-whole premium on redemption of senior unsecured notes | 0 | (25,875) | 0 |
Payment of contingent consideration | 0 | 8,941 | 10,000 |
Tax payments related to settlement of restricted stock units | (25,157) | (20,230) | (9,420) |
Repurchase of common stock | (325,031) | (90,011) | (150,036) |
Dividends on common stock | (79,833) | (80,095) | (79,097) |
Proceeds from stock option exercises and other | 28,730 | 41,974 | 30,236 |
Principal payment of finance leases and obligations | (408) | (1,356) | (1,169) |
Net cash (used in) provided by financing activities | (504,271) | 278,837 | (275,186) |
NET INCREASE IN CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH | 1,064,906 | 273,330 | 327,256 |
CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH — Beginning of year | 2,072,364 | 1,799,034 | 1,471,778 |
CASH AND EQUIVALENTS, CASH AND EQUIVALENTS SEGREGATED UNDER FEDERAL OR OTHER REGULATIONS AND RESTRICTED CASH — End of year | 3,137,270 | 2,072,364 | 1,799,034 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Interest paid | 118,824 | 103,689 | 106,879 |
Income taxes paid | 238,155 | 144,556 | 169,237 |
Cash paid for amounts included in the measurement of operating lease liabilities | 24,657 | 22,355 | 21,368,000 |
Cash paid for amounts included in the measurement of finance lease liabilities | 8,825 | 9,716 | 9,592,000 |
NONCASH DISCLOSURES: | |||
Capital expenditures included in accounts payable and accrued liabilities | 33,957 | 21,373 | 12,186 |
Lease assets obtained in exchange for operating lease liabilities | $ 10,785 | $ 3,602 | $ 7,968 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows Cash, Cash Equivalents, and Restricted Cash Reconciliation - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and equivalents | $ 847,519 | $ 495,246 | $ 808,612 | |
Cash and equivalents segregated under federal or other regulations | 2,199,362 | 1,496,463 | 923,158 | |
Restricted Cash and Cash Equivalents | 90,389 | 80,655 | 67,264 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total | $ 3,137,270 | $ 2,072,364 | $ 1,799,034 | $ 1,471,778 |
Organization and Description of
Organization and Description of the Company | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of the Company | ORGANIZATION AND DESCRIPTION OF THE COMPANY LPL Financial Holdings Inc. ( “ LPLFH ” ), a Delaware holding corporation, together with its consolidated subsidiaries (collectively, the “ Company ” ), provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at enterprises (collectively, “ advisors ” ) in the United States. Through its custody and clearing platform, using both proprietary and third-party technology, the Company provides access to diversified financial products and services, enabling its advisors to offer personalized financial advice and brokerage services to retail investors (their “ clients ” ). The Company’s most significant, wholly owned subsidiaries are described below: • LPL Holdings, Inc. (“LPLH” or “Parent”), a Massachusetts holding corporation, is an intermediate holding company and directly or indirectly owns 100% of the issued and outstanding common stock of all of LPLFH’s indirect subsidiaries, including a captive insurance subsidiary (the “Captive Insurance Subsidiary”) that underwrites insurance for various legal and regulatory risks of the Company. • LPL Financial LLC (“LPL Financial”), with primary offices in San Diego, California; Fort Mill, South Carolina; Boston, Massachusetts; and Austin, Texas, is a clearing broker-dealer and an investment advisor that principally transacts business as an agent for its advisors and enterprises on behalf of their clients in a broad array of financial products and services. LPL Financial is licensed to operate in all 50 states, Washington D.C., Puerto Rico and the U.S. Virgin Islands. • Fortigent Holdings Company, Inc. and its subsidiaries provide solutions and consulting services to registered investment advisors (“RIAs”), banks and trust companies serving high-net-worth clients. • LPL Insurance Associates, Inc. operates as an insurance brokerage general agency that offers life and disability insurance products and services for LPL Financial advisors. • AW Subsidiary, Inc. is a holding company for AdvisoryWorld and Blaze Portfolio Systems LLC (“Blaze”). AdvisoryWorld offers technology products, including proposal generation, investment analytics and portfolio modeling, to both the Company’s advisors and external clients in the wealth management industry. Blaze provides an advisor-facing trading and portfolio rebalancing platform. • PTC Holdings, Inc. (“PTCH”) is a holding company for The Private Trust Company, N.A. (“PTC”). PTC is chartered as a non-depository limited purpose national bank, providing a wide range of trust, investment management oversight, and custodial services for estates and families. PTC, together with its affiliate Fiduciary Trust Company of New Hampshire, also provides Individual Retirement Account (“IRA”) custodial services for LPL Financial. Each member of PTCH’s Board of Directors meets the direct equity ownership interest requirements that are required by the Office of the Comptroller of the Currency (“OCC”). • LPL Employee Services, LLC and its subsidiary, Allen & Company of Florida, LLC, provide primary support for the Company’s employee advisor affiliation model. |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues [Text Block] | REVENUE Revenue is recognized when control of the promised services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenue is analyzed to determine whether the Company is the principal (i.e., reports revenue on a gross basis) or agent (i.e., reports revenue on a net basis) in the contract. Principal or agent designations depend primarily on the control an entity has over the product or service before control is transferred to a customer. The indicators of which party exercises control include primary responsibility over performance obligations, inventory risk before the good or service is transferred and discretion in establishing the price. Advisory Advisory revenue represents fees charged to advisors’ clients’ advisory accounts on the Company’s corporate RIA advisory platform and is based on a percentage of the market value of the eligible assets in the clients’ advisory accounts. The Company provides ongoing investment advice and acts as a custodian, providing brokerage and execution services on transactions, and performs administrative services for these accounts. Advisory fees are primarily billed to clients in advance, on a quarterly basis, and are recognized as revenue ratably during the quarter. The performance obligation for advisory fees is considered a series of distinct services that are substantially the same and are satisfied daily. As the value of the eligible assets in an advisory account is susceptible to changes due to customer activity, this revenue includes variable consideration and is constrained until the date that the fees are determinable. The majority of our client accounts are on a calendar quarter and are billed using values as of the last business day of the preceding quarter. The value of the eligible assets in an advisory account on the billing date is adjusted for estimates of contributions and withdrawals to determine the amount billed, and accordingly, the revenue earned in the following three-month period. Advisory revenue collected on the Company’s corporate advisory platform is proposed by the advisor and agreed to by the client and was approximately 1% of the underlying assets for the year ended December 31, 2022. The Company also supports independent RIA firms that conduct their business through separate registered investment advisor firms (“Independent RIAs”) through its Independent RIA advisory platform, which allows advisors to engage the Company for technology, clearing and custody services, as well as access the capabilities of the Company’s investment platforms. The assets held under an Independent RIA’s investment advisory accounts custodied with LPL Financial are included in total advisory assets and net new advisory assets. The advisory revenue generated by an Independent RIA is not included in the Company’s advisory revenue. The Company charges separate fees to Independent RIAs for technology, clearing, administrative, oversight and custody services, which may vary and are included in service and fee revenue in the consolidated statements of income. Commission The Company earns commission revenue from sales commissions generated by advisors for their clients’ purchases and sales of securities or other investment products and from product sponsors for the selling, distribution and marketing, or any combination thereof, of investment products to such clients both of which are viewed as a single performance obligation. The Company is generally the principal for commission revenue, as it is responsible for the execution of the clients’ purchases and sales, and maintains relationships with the product sponsors. Advisors assist the Company in performing its obligations. Accordingly, total commission revenue is reported on a gross basis. The following table presents total commission revenue disaggregated by product category (in thousands): Years Ended December 31, 2022 2021 2020 Commission revenue Annuities $ 1,269,634 $ 1,210,899 $ 976,357 Mutual funds 679,912 768,168 590,074 Fixed income 119,196 126,543 88,714 Equities 114,446 131,975 126,920 Other 142,976 141,098 124,495 Total commission revenue $ 2,326,164 $ 2,378,683 $ 1,906,560 The Company generates two types of commission revenue: (1) sales-based commissions that are recognized at the point of sale on the trade date and are based on a percentage of an investment product’s current market value at the time of purchase and (2) trailing commissions that are recognized over time as earned and are generally based on the market value of investment holdings in trail-eligible assets. Sales-based commission revenue, which occurs when clients trade securities or purchase various types of investment products, primarily represents gross commissions generated by the Company’s advisors and can vary from period to period based on the overall economic environment, number of trading days in the reporting period and investment activity of the Company’s advisors’ clients. The Company earns trailing commission revenue primarily on mutual funds and variable annuities held by clients of the Company’s advisors. Trailing commission revenue is recognized over the time the client owns the investment or holds the contract and is generally earned based on a fixed rate applied. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and the client's investment hold period. The revenue will not be recognized until it is probable that a significant reversal will not occur. The following table presents sales-based and trailing commission revenue disaggregated by product category (in thousands): Years Ended December 31, 2022 2021 2020 Commission revenue Sales-based Annuities $ 542,310 $ 425,164 $ 327,412 Mutual funds 154,742 191,449 145,836 Fixed income 119,196 126,543 88,714 Equities 114,446 131,975 126,920 Other 103,112 98,924 81,882 Total sales-based revenue $ 1,033,806 $ 974,055 $ 770,764 Trailing Annuities $ 727,324 $ 785,735 $ 648,945 Mutual funds 525,170 576,719 444,238 Other 39,864 42,174 42,613 Total trailing revenue $ 1,292,358 $ 1,404,628 $ 1,135,796 Total commission revenue $ 2,326,164 $ 2,378,683 $ 1,906,560 Asset-Based Asset-based revenue consists of fees from the Company’s client cash programs, fees from our sponsorship programs with financial product manufacturers and fees from omnibus processing and networking services (collectively referred to as “recordkeeping”). Client Cash Revenue Client cash revenue is earned daily and is generated on advisors’ clients’ cash balances in insured bank sweep accounts and a money market account based on a rate applied, as a percentage, to the deposits placed. The Company also receives fees based on account type and invested balances for administration and recordkeeping. These fees are generally earned and recognized over time on a net basis as the Company acts as an agent in these arrangements. The performance obligation with the financial institutions that participate in the sweep program is considered a series of distinct services that are substantially the same and are satisfied each day. Recordkeeping The Company generates revenue from fees it collects for providing recordkeeping, account maintenance, reporting and other related services to product sponsors. This includes revenue from omnibus processing in which the Company establishes and maintains sub-account records for its clients to reflect the purchase, exchange and redemption of mutual fund shares and consolidates clients’ trades within a mutual fund. Omnibus processing fees are paid to the Company by the mutual fund product sponsors or their affiliates and are based on the value of mutual fund assets in accounts for which the Company provides omnibus processing services and the number of accounts in which the related mutual fund positions are held. Recordkeeping also includes revenue from networking services. Networking revenue on brokerage assets is correlated to the number of positions or value of assets that the Company administers and is paid by mutual fund and annuity product manufacturers. Recordkeeping revenue is recognized over time as the Company fulfills its performance obligations. As recordkeeping fees are susceptible to unpredictable market changes that influence market value and fund positions, this revenue includes variable consideration and is constrained until the date that the fees are determinable. Sponsorship Programs The Company receives fees from certain financial product manufacturers in connection with sponsorship programs that support the Company’s marketing and sales force education and training efforts. Compensation for these performance obligations is either a fixed fee, a percentage of the average annual amount of product sponsor assets held in advisors’ clients’ accounts, a percentage of new sales or a combination of these. As the value of product sponsor assets held in advisors’ clients’ accounts is susceptible to unpredictable market changes, this revenue includes variable consideration and is constrained until the date that the fees are determinable. Sponsorship revenue is generally recognized over time as the Company fulfills its performance obligations. The following table sets forth asset-based revenue disaggregated by product category (in thousands): Years Ended December 31, 2022 2021 2020 Asset-based revenue Client cash $ 953,624 $ 360,847 $ 481,388 Recordkeeping 412,468 401,429 290,194 Sponsorship programs 394,181 385,791 272,935 Total asset-based revenue $ 1,760,273 $ 1,148,067 $ 1,044,517 Service and Fee Service and fee revenue is generated from advisor and retail investor services, including technology, insurance, conferences, licensing, business services and planning and advice services, IRA custodian and other client account fees. The Company charges separate fees to RIAs for technology, clearing, administrative, oversight and custody services, which may vary. The Company also hosts certain advisor conferences that serve as training, education, sales and marketing events for which the Company collects a fee from sponsors. Service and fee revenue is recognized when the Company satisfies its performance obligations. Recognition varies from point-in-time to over time depending on whether the service is provided once at an identifiable point-in-time or if the service is provided continually over the contract life. Performance obligations for service and fee revenue recognized over time are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. The Company is the principal and recognizes service and fee revenues on a gross basis as it is primarily responsible for delivering the respective services being provided, which is demonstrated by the Company’s ability to control the fee amounts charged to customers. The following table sets forth service and fee revenue disaggregated by recognition pattern (in thousands): Years Ended December 31, 2022 2021 2020 Service and fee revenue Point-in-time (1) $ 115,916 $ 110,459 $ 85,451 Over time (2) 351,465 301,302 272,271 Total service and fee revenue $ 467,381 $ 411,761 $ 357,722 ____________________ (1) Service and fee revenue recognized at a point-in-time includes revenue such as IRA termination fees, conference services and account fees. (2) Service and fee revenue recognized over time includes revenue such as error and omission insurance fees, IRA custodian fees and technology fees. Transaction Transaction revenue includes transaction charges generated by advisory and brokerage accounts from mutual funds, exchange-traded funds and fixed income products and is primarily recognized at a point-in-time. Point-in-time transaction revenue includes revenue from clearing and transaction charges and is recognized on a trade-date basis as the performance obligation is satisfied when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. The Company is the principal and recognizes transaction revenue on a gross basis as it is primarily responsible for delivering the respective services being provided, which is demonstrated by the Company’s ability to control the fee amounts charged to customers. Interest Income, net The Company earns interest income primarily from client margin loans, cash and equivalents segregated under federal or other regulations and advisor repayable loans and pays interest on certain client cash balances held in the client cash account. Other Other revenue primarily includes unrealized gains and losses on assets held by the Company for its advisor non-qualified deferred compensation plan and model research portfolios and other miscellaneous revenue, which is generally not generated from contracts with customers. Unearned Revenue The Company records unearned revenue when cash payments are received or due in advance of the Company’s performance obligations, including amounts which are refundable. Unearned revenue decreased from $160.9 million as of December 31, 2021 to $138.1 million as of December 31, 2022. The decrease in unearned revenue for the year ended December 31, 2022 is primarily driven by $159.5 million of revenue recognized during the year ended December 31, 2022 that was included in the unearned revenue balance as of December 31, 2021, partially offset by cash payments received or due in advance of satisfying the Company’s performance obligations. The Company receives cash in advance for advisory services to be performed and conferences to be held in future periods. For advisory services, revenue is recognized as the Company provides the administration, brokerage and execution services over time to satisfy the performance obligations. For conference revenue, the Company recognizes revenue as the conferences are held. |
Acquisitions (Notes)
Acquisitions (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS On November 2, 2022, the Company entered into a definitive purchase agreement to acquire Financial Resources Group Investment Services, LLC (“FRGIS”), a broker-dealer and independent branch office. T he transaction closed on January 31, 2023 for an initial payment of approximately $140 million with potential contingent payments over the three years following the closing. Given the recent closing, the purchase accounting analysis has not yet been completed. During the year ended December 31, 2022, the Company acquired client relationship intangible assets of $54.1 million as a result of acquisitions under its Liquidity & Succession solution. These acquisitions were accounted for as asset acquisitions with an assigned useful life of 9 years. See Note 9 - Goodwill and Other Intangibles, Net , for additional information. On April 30, 2021, the Company acquired the wealth management business of Waddell & Reed Financial, Inc. for $300.0 million in order to expand its addressable markets and complement organic growth (the “Waddell & Reed Acquisition”). The Company accounted for the acquisition under the acquisition method of accounting for business combinations. The Company allocated $128.6 million of the purchase price to goodwill, $122.7 million to definite-lived intangible assets, $62.3 million to cash acquired and the remainder to other assets acquired and liabilities assumed as part of the acquisition. The goodwill primarily includes the synergies expected to result from combining operations and onboarding advisors and assets to the Company’s platform and is deductible for tax purposes. See Note 9 - Goodwill and Other Intangibles, Net , for additional information. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. There have been no transfers of assets or liabilities between these fair value measurement classifications during the years ended December 31, 2022 or 2021. The Company’s fair value measurements are evaluated within the fair value hierarchy based on the nature of inputs used to determine the fair value at the measurement date. At December 31, 2022 and 2021, the Company had the following financial assets and liabilities that are measured at fair value on a recurring basis: Cash Equivalents — The Company’s cash equivalents include money market funds and U.S. government obligations, which are short term in nature with readily determinable values derived from active markets. Cash Equivalents Segregated Under Federal or Other Regulations — The Company’s cash equivalents segregated under federal or other regulations include U.S. treasury bills, which are short term in nature with readily determinable values derived from active markets. Trading Securities and Securities Sold, But Not Yet Purchased — The Company’s trading securities consist of house account model portfolios established and managed for the purpose of benchmarking the performance of its fee-based advisory platforms and temporary positions resulting from the processing of client transactions. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its trading securities. Prices received from the pricing services are validated using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices and review of other relevant market data including implied yields of major categories of securities. In general, these quoted prices are derived from active markets for identical assets or liabilities. When quoted prices in active markets for identical assets and liabilities are not available, the quoted prices are based on similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. For negotiable certificates of deposit and treasury securities, the Company utilizes market-based inputs, including observable market interest rates that correspond to the remaining maturities or the next interest reset dates. At December 31, 2022 and 2021, the Company did not adjust prices received from the independent third-party pricing services. Other Assets — The Company’s other assets include: (1) deferred compensation plan assets that are invested in life insurance, money market and other mutual funds, which are actively traded and valued based on quoted market prices, and (2) certain non-traded real estate investment trusts and auction rate notes, which are valued using quoted prices for identical or similar securities and other inputs that are observable or can be corroborated by observable market data. Fractional Shares — The Company’s investment in fractional shares held by customers is reflected in other assets while the related purchase obligation for such shares is reflected in other liabilities. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its investment in fractional shares held by customers and the related repurchase obligation. Prices received from the pricing services are validated using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices and review of other relevant market data including implied yields of major categories of securities. At December 31, 2022 and 2021, the Company did not adjust prices received from the independent third-party pricing services. Accounts Payable and Accrued Liabilities — The Company’s accounts payable and accrued liabilities include contingent consideration liabilities that are measured using Level 3 inputs. Level 3 Recurring Fair Value Measurements The Company determines the fair value for its contingent consideration obligations using a scenario-based approach whereby the Company assesses the expected number of future transactions. The contingent payment is estimated by applying a discount rate to the expected payment to calculate the fair value as of the valuation date. The Company evaluates the underlying projections and other related factors used in determining fair value each period and makes updates when there have been significant changes in management’s expectations. Recurring Fair Value Measurements The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands): December 31, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 13,639 $ — $ — $ 13,639 Cash equivalents segregated under federal or other regulations 1,131,040 — — 1,131,040 Investment securities - trading: U.S. treasury obligations 24,402 — — 24,402 Mutual funds 10,679 — — 10,679 Equity securities 980 — — 980 Debt securities — 585 — 585 Money market funds 112 — — 112 Total investment securities - trading 36,173 585 — 36,758 Other assets: Deferred compensation plan 489,976 — — 489,976 Fractional shares - investment (1) 122,253 — — 122,253 Other investments — 5,248 — 5,248 Total other assets 612,229 5,248 — 617,477 Total assets at fair value $ 1,793,081 $ 5,833 $ — $ 1,798,914 Liabilities Accounts payable and accrued liabilities $ — $ — $ 3,860 $ 3,860 Other liabilities: Securities sold, but not yet purchased: Debt securities — 61 — 61 Equity securities 20 — — 20 Mutual funds 4 — — 4 Total securities sold, but not yet purchased 24 61 — 85 Fractional shares - repurchase obligation (1) 122,253 — — 122,253 Total other liabilities 122,277 61 — 122,338 Total liabilities at fair value $ 122,277 $ 61 $ 3,860 $ 126,198 ____________________ (1) Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP. The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands): December 31, 2021 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 12,056 $ — $ — $ 12,056 Investment securities - trading: U.S. treasury obligations 19,599 — — 19,599 Mutual funds 19,112 — — 19,112 Equity securities 440 — — 440 Money market funds 123 — — 123 Total investment securities — trading 39,274 — — 39,274 Other assets: Deferred compensation plan 499,548 — — 499,548 Other investments — 9,166 — 9,166 Fractional shares - investment (1) 114,574 — — 114,574 Total other assets 614,122 9,166 — 623,288 Total assets at fair value $ 665,452 $ 9,166 $ — $ 674,618 Liabilities Accounts payable and accrued liabilities $ — $ — $ 3,530 $ 3,530 Other liabilities: Securities sold, but not yet purchased: Equity securities 467 — — 467 Debt securities — 105 — 105 Total securities sold, but not yet purchased 467 105 — 572 Fractional shares - repurchase obligation (1) 114,574 — — 114,574 Total other liabilities 115,041 105 — 115,146 Total liabilities at fair value $ 115,041 $ 105 $ 3,530 $ 118,676 ____________________ (1) Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP. Fair Value of Financial Instruments Not Measured at Fair Value The following tables summarize the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not measured at fair value (in thousands): December 31, 2022 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash $ 833,880 $ 833,880 $ — $ — $ 833,880 Cash segregated under federal or other regulations 1,068,322 1,068,322 — — 1,068,322 Restricted cash 90,389 90,389 — — 90,389 Receivables from clients, net 561,569 — 561,569 — 561,569 Receivables from brokers, dealers and clearing organizations 56,276 — 56,276 — 56,276 Advisor repayable loans, net (1) 280,040 — — 219,062 219,062 Other receivables, net 677,766 — 677,766 — 677,766 Investment securities - held-to-maturity securities 15,852 — 15,471 — 15,471 Other assets: Securities borrowed 9,626 — 9,626 — 9,626 Deferred compensation plan (2) 6,343 6,343 — — 6,343 Other investments (3) 4,647 — 4,647 — 4,647 Total other assets 20,616 6,343 14,273 — 20,616 Liabilities Client payables $ 2,694,929 $ — $ 2,694,929 $ — $ 2,694,929 Payables to brokers, dealers and clearing organizations 147,752 — 147,752 — 147,752 Corporate debt and other borrowings, net 2,717,444 — 2,530,011 — 2,530,011 December 31, 2021 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash $ 483,190 $ 483,190 $ — $ — $ 483,190 Cash segregated under federal or other regulations 1,496,463 1,496,463 — — 1,496,463 Restricted cash 80,655 80,655 — — 80,655 Receivables from clients, net 578,889 — 578,889 — 578,889 Receivables from brokers, dealers and clearing organizations 102,503 — 102,503 — 102,503 Advisor repayable loans, net (1) 191,242 — — 176,864 176,864 Other receivables, net 581,483 — 581,483 — 581,483 Investment securities - held-to-maturity securities 9,918 — 9,915 — 9,915 Other assets: Securities borrowed 9,958 — 9,958 — 9,958 Other investments (3) 4,595 — 4,595 — 4,595 Total other assets 14,553 — 14,553 — 14,553 Liabilities Client payables $ 1,712,224 $ — $ 1,712,224 $ — $ 1,712,224 Payables to brokers, dealers and clearing organizations 170,119 — 170,119 — 170,119 Corporate debt and other borrowings, net 2,814,044 — 2,885,536 — 2,885,536 ____________________ (1) Includes repayable loans and forgivable loans which have converted to repayable upon advisor termination or change in agreed upon terms. (2) Includes cash balances awaiting investment or distribution to plan participants. (3) Other investments include Depository Trust Company common shares and Federal Reserve stock. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Held-to-Maturity Securities | INVESTMENT SECURITIES The Company’s investment securities include debt and equity securities that the Company has classified as trading securities, which are carried at fair value, as well as investments in U.S. government notes, which are held by The Private Trust Company, N.A. to satisfy minimum capital requirements of the OCC. These securities are recorded at amortized cost and classified as held-to-maturity as the Company has both the intent and ability to hold these investments to maturity. The following table summarizes investment securities (in thousands): December 31, 2022 2021 Trading securities - at fair value: U.S. treasury obligations $ 24,402 $ 19,599 Mutual funds 10,679 19,112 Equity securities 980 440 Debt securities 585 — Money market funds 112 123 Total trading securities $ 36,758 $ 39,274 Held-to-maturity securities - at amortized cost: U.S. government notes $ 15,852 $ 9,918 Total held-to-maturity securities $ 15,852 $ 9,918 Total investment securities $ 52,610 $ 49,192 At December 31, 2022, the held-to-maturity securities were scheduled to mature as follows (in thousands): Within one year After one but within five years After five but within ten years After ten years Total U.S. government notes — at amortized cost $ 5,508 $ 10,344 $ — $ — $ 15,852 U.S. government notes — at fair value $ 5,427 $ 10,044 $ — $ — $ 15,471 |
Receivables from Product Sponso
Receivables from Product Sponsors, Broker-Dealers and Clearing Organizations and Payables to Broker-Dealers and Clearing Organizations | 12 Months Ended |
Dec. 31, 2022 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Receivables from Product Sponsors, Broker-Dealers and Clearing Organizations and Payables to Broker-Dealers and Clearing Organizations | RECEIVABLES FROM AND PAYABLES TO BROKERS, DEALERS AND CLEARING ORGANIZATIONS Receivables from and payables to brokers, dealers, and clearing organizations were as follows (in thousands): December 31, 2022 2021 Receivables: Receivables from clearing organizations $ 46,075 $ 80,548 Securities failed-to-deliver 9,083 16,978 Receivables from brokers and dealers 1,118 4,977 Total receivables $ 56,276 $ 102,503 Payables: Payables to brokers and dealers $ 82,685 78,080 Payables to clearing organizations 41,495 20,112 Securities failed-to-receive 23,572 71,927 Total payables $ 147,752 $ 170,119 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | PROPERTY AND EQUIPMENT, NET The components of property and equipment, net were as follows at December 31, 2022 (in thousands): Historical Cost Accumulated Depreciation and Amortization Net Carrying Value Internally developed software $ 942,432 $ (476,653) $ 465,779 Computers and software 290,412 (208,299) 82,113 Buildings 107,873 (15,503) 92,370 Leasehold improvements 94,959 (43,678) 51,281 Furniture and equipment 87,204 (72,862) 14,342 Land 4,678 — 4,678 Construction in progress (1) 69,794 — 69,794 Total property and equipment, net $ 1,597,352 $ (816,995) $ 780,357 ____________________ (1) Construction in progress includes $69.2 million of internal software in development and related hardware and software at December 31, 2022. The components of property and equipment, net were as follows at December 31, 2021 (in thousands): Historical Cost Accumulated Depreciation and Amortization Net Carrying Value Internally developed software $ 716,179 $ (342,408) $ 373,771 Computers and software 214,223 (167,573) 46,650 Buildings 107,873 (11,627) 96,246 Leasehold improvements 88,538 (36,988) 51,550 Furniture and equipment 83,356 (65,728) 17,628 Land 4,678 — 4,678 Construction in progress (1) 68,318 — 68,318 Total property and equipment, net $ 1,283,165 $ (624,324) $ 658,841 ____________________ (1) Construction in progress includes $37.7 million of internal software in development and related hardware and software at December 31, 2021. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLES, NET On April 30, 2021, the Company completed the Waddell & Reed Acquisition. The Company allocated $128.6 million of the purchase price to goodwill, $122.7 million to definite-lived intangible assets, $62.3 million to cash acquired and the remainder to other assets acquired and liabilities assumed as part of the Waddell & Reed Acquisition. The intangible assets are comprised primarily of advisor relationships with a weighted average useful life of approximately 9 years. See Note 4 - Acquisitions , for additional information. A summary of the activity impacting goodwill is presented below (in thousands): Balance at December 31, 2020 $ 1,513,866 Goodwill acquired 128,577 Balance at December 31, 2021 1,642,443 Goodwill acquired 25 Balance at December 31, 2022 $ 1,642,468 The components of other intangibles, net were as follows at December 31, 2022 (thousands): Weighted-Average Life Gross Accumulated Amortization Net Definite-lived intangibles, net: Advisor and enterprise relationships 5.1 $ 809,872 $ (542,415) $ 267,457 Product sponsor relationships 3.2 234,086 (197,165) 36,921 Client relationships (1) 8.0 102,491 (30,318) 72,173 Technology 5.4 19,040 (7,734) 11,306 Trade names 0.0 1,200 (1,200) — Total definite-lived intangible assets, net $ 1,166,689 $ (778,832) $ 387,857 Other indefinite-lived intangibles: Trademark and trade name 39,819 Total other intangibles, net $ 427,676 ____________________ (1) During the year ended December 31, 2022, the Company acquired client relationship intangible assets of $54.1 million as a result of acquisitions under its Liquidity & Succession solution. These acquisitions were accounted for as asset acquisitions with an assigned useful life of 9 years. The components of other intangibles, net were as follows at December 31, 2021 (thousands): Weighted-Average Life Gross Accumulated Amortization Net Definite-lived intangibles, net: Advisor and enterprise relationships 5.9 $ 806,531 $ (476,000) $ 330,531 Product sponsor relationships 4.1 234,086 (185,255) 48,831 Client relationships 7.2 45,623 (23,379) 22,244 Technology 6.4 19,040 (5,477) 13,563 Trade names 0.3 1,200 (1,160) 40 Total definite-lived intangibles, net $ 1,106,480 $ (691,271) $ 415,209 Other indefinite-lived intangibles: Trademark and trade name 39,819 Total other intangibles, net $ 455,028 Total amortization of other intangibles was $87.6 million, $79.3 million and $67.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. Future amortization is estimated as follows (in thousands): 2023 $ 86,288 2024 85,517 2025 77,143 2026 38,887 2027 33,738 Thereafter 66,284 Total $ 387,857 |
Other Assert and Other Liabilit
Other Assert and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets And Other Liabilities [Abstract] | |
Other Assets and Other Liabilities | OTHER ASSETS AND OTHER LIABILITIES The components of other assets and other liabilities were as follows (dollars in thousands): December 31, 2022 2021 Other assets: Deferred compensation $ 496,319 $ 499,548 Prepaid assets 144,607 115,018 Fractional shares - investment (1) 122,253 114,574 Deferred tax assets, net (2) 98,997 5,648 Operating lease assets (3) 92,534 95,075 Debt issuance costs, net 6,422 7,303 Other 62,098 49,822 Total other assets $ 1,023,230 $ 886,988 Other liabilities: Deferred compensation $ 497,736 $ 499,245 Unearned revenue (4) 138,109 160,926 Operating lease liabilities (3) 125,280 130,304 Fractional shares - repurchase obligation (1) 122,253 114,574 Finance lease liabilities (3) 105,660 106,067 Other 113,589 7,160 Total other liabilities $ 1,102,627 $ 1,018,276 _______________________________ (1) See Note 2 - Summary of Significant Accounting Policies for further information. (2) See Note 13 - Income Taxes for further information. (3) See Note 12 - Leases for further information. (4) See Note 3 - Revenue for further information. |
Corporate Debt and Other Borrow
Corporate Debt and Other Borrowings, Net | Mar. 15, 2021 |
Debt Disclosure [Abstract] | |
Borrowings | CORPORATE DEBT AND OTHER BORROWINGS, NET The Company’s outstanding corporate debt and other borrowings, net were as follows (in thousands): December 31, 2022 December 31, 2021 Corporate Debt Applicable Interest Rate Applicable Interest rate Maturity Term Loan B (1) $ 1,037,900 LIBOR+175 bps 5.87 % $ 1,048,600 LIBOR+175 bps 1.85 % 11/12/2026 2027 Senior Notes (1) 400,000 Fixed Rate 4.63 % 400,000 Fixed Rate 4.63 % 11/15/2027 2029 Senior Notes (1) 900,000 Fixed Rate 4.00 % 900,000 Fixed Rate 4.00 % 3/15/2029 2031 Senior Notes (1) 400,000 Fixed Rate 4.38 % 400,000 Fixed Rate 4.38 % 5/15/2031 Total Corporate Debt 2,737,900 2,748,600 Less: Unamortized Debt Issuance Cost (20,456) (24,556) Corporate debt, net $ 2,717,444 $ 2,724,044 Other Borrowings Revolving Credit Facility (2)(3) — LIBOR+125 bps 5.64 % 55,000 ABR+25 bps 3.50 % 3/15/2026 Unsecured, Uncommitted Lines of Credit (3) — Rate Determined at Time of Borrowing — % 35,000 Broker Base Rate+75 bps 1.00 % 9/30/2023 Total other borrowings $ — $ 90,000 Corporate Debt and Other Borrowings, Net $ 2,717,444 $ 2,814,044 _______________________________ (1) No leverage or interest coverage maintenance covenants. (2) Borrowings bear interest at a rate per annum ranging from 125 to 175 basis points over the Eurodollar Rate or 25 to 75 basis points over the base rate (PRIME rate) depending on the Consolidated Secured Debt to Consolidated EBITDA Ratio (as defined in the Credit Agreement). (3) Balances outstanding under our external lines of credit at December 31, 2021 were repaid in January 2022. The minimum calendar year payments and maturities of the corporate debt and other borrowings as of December 31, 2022 were as follows (in thousands): 2023 $ 10,700 2024 10,700 2025 10,700 2026 1,005,800 2027 400,000 Thereafter 1,300,000 Total $ 2,737,900 The following table presents amounts outstanding and available under the Company’s external lines of credit at December 31, 2022 (in millions): Description Borrower Maturity Date Outstanding Available Senior secured, revolving credit facility LPL Holdings, Inc. March 2026 $ — $ 1,000 Broker-dealer revolving credit facility LPL Financial LLC August 2023 $ — $ 1,000 Unsecured, uncommitted lines of credit LPL Financial LLC September 2023 $ — $ 75 Unsecured, uncommitted lines of credit LPL Financial LLC September 2023 $ — $ 50 Unsecured, uncommitted lines of credit LPL Financial LLC None $ — $ 75 Secured, uncommitted lines of credit LPL Financial LLC None $ — unspecified Secured, uncommitted lines of credit LPL Financial LLC None $ — unspecified Issuance of 2031 Senior Notes LPLH raised $400.0 million in aggregate principal amount of 4.375% senior notes on May 18, 2021, which were issued at par (“2031 Senior Notes”). The Company used the proceeds from the issuance to repay borrowings made under the senior secured revolving credit facility related to the Waddell & Reed Acquisition. In connection with the issuance of the 2031 Senior Notes, the Company incurred $3.8 million in costs, which were capitalized as debt issuance costs in the consolidated statements of financial condition. Issuance of 2029 Senior Notes LPLH raised $900.0 million in aggregate principal amount of 4.00% senior notes on March 15, 2021, which were issued at par (“2029 Senior Notes”). The Company used the proceeds from the issuance of the 2029 Senior Notes, along with existing corporate cash available, to redeem its existing 5.75% senior unsecured notes due in 2025. In connection with this redemption, the Company recognized $24.4 million as a loss on extinguishment of debt on the consolidated statements of income for the year ended December 31, 2021. In connection with the issuance of the 2029 Senior Notes, the Company incurred $9.0 million in costs, which were capitalized as debt issuance costs in the consolidated statements of financial condition. Credit Agreement On March 15, 2021, LPLFH and LPLH entered into a fifth amendment agreement (the “Amendment”) to the Company’s amended and restated credit agreement (“Credit Agreement”), which, among other things, increased the size of its senior secured revolving credit facility to $1.0 billion and extended its maturity date. In connection with the execution of the Amendment, the Company incurred $3.2 million in costs, which were capitalized as debt issuance costs in the consolidated statements of financial condition. The Credit Agreement subjects the Company to certain financial and non-financial covenants. As of December 31, 2022, the Company was in compliance with such covenants. Parent Revolving Credit Facility Borrowings under the revolving credit facility bear interest at a rate per annum ranging from 125 to 175 basis points over the Eurodollar Rate or 25 to 75 basis points over the base rate depending on the Consolidated Secured Debt to Consolidated EBITDA Ratio (as defined in the Credit Agreement). Broker-Dealer Revolving Credit Facility On August 4, 2022, LPL Financial, the Company’s broker-dealer subsidiary, entered into a committed senior unsecured revolving credit facility that matures on August 3, 2023 and allows for a maximum borrowing of up to $1.0 billion. This revolving credit facility replaced the $300.0 million credit facility that was due to mature on July 31, 2024. Borrowings under the credit facility bear interest at a rate per annum equal to 1.25% per annum plus the greatest of (i) the secured overnight financing rate plus 0.10%, (ii) the effective federal funds rate and (iii) the overnight bank funding rate, in each case, as such rate is administered or determined by the Federal Reserve Bank of New York from time to time. In connection with the credit facility, LPL Financial incurred $1.9 million in costs, which were capitalized as debt issuance costs in the consolidated statements of financial condition. The broker-dealer credit agreement subjects LPL Financial to certain financial and non-financial covenants. At December 31, 2022, LPL Financial’s net capital was 8% of its aggregate debits, below the 10% aggregate debits required by a financial covenant. The agreement allows 5 days to cure non-compliance with this financial covenant, and it was cured within that allowable time period. LPL Financial was in compliance with all other covenants as of December 31, 2022. Other External Lines of Credit LPL Financial maintained five uncommitted lines of credit as of December 31, 2022. Two of the lines have unspecified limits, which are primarily dependent on LPL Financial’s ability to provide sufficient collateral. The other three lines have a total limit of $200.0 million, which allow for uncollateralized borrowings. There was $35 million outstanding under these lines of credit as of December 31, 2021 and no balances outstanding as of December 31, 2022. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Operating Leases | LEASES The Company determines if an arrangement is a lease or contains a lease at inception. The Company has operating and finance leases for corporate offices and equipment with remaining lease terms of 1 to 14 years, some of which include options to extend the lease for up to 20 years. For leases with renewal options, the lease term is extended to reflect renewal options the Company is reasonably certain to exercise. Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. As most of the Company’s leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. Lease expense related to the net present value of payments is recognized on a straight-line basis over the lease term. Finance lease assets are included in Property and equipment, net in the consolidated statements of financial condition and were $92.4 million and $97.1 million at December 31, 2022 and December 31, 2021, respectively. The components of lease expense were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Operating lease cost $ 21,862 $ 19,712 $ 18,757 Finance lease cost: Amortization of right-of-use assets $ 4,753 $ 5,150 $ 5,141 Interest on lease liabilities 8,417 8,360 8,423 Total finance lease cost $ 13,170 $ 13,510 $ 13,564 Supplemental weighted-average information related to leases was as follows: December 31, 2022 2021 Weighted-average remaining lease term (years): Finance leases 23.8 24.6 Operating leases 6.2 6.9 Weighted-average discount rate: Finance leases 7.94 % 7.89 % Operating leases 6.77 % 6.96 % Maturities of lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Leases Finance Leases 2023 $ 24,820 $ 8,577 2024 24,049 8,727 2025 23,734 8,879 2026 23,928 9,035 2027 24,309 9,193 Thereafter 34,196 206,532 Total lease payments 155,036 250,943 Less imputed interest 29,756 145,283 Total $ 125,280 $ 105,660 |
Finance Leases | LEASES The Company determines if an arrangement is a lease or contains a lease at inception. The Company has operating and finance leases for corporate offices and equipment with remaining lease terms of 1 to 14 years, some of which include options to extend the lease for up to 20 years. For leases with renewal options, the lease term is extended to reflect renewal options the Company is reasonably certain to exercise. Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. As most of the Company’s leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. Lease expense related to the net present value of payments is recognized on a straight-line basis over the lease term. Finance lease assets are included in Property and equipment, net in the consolidated statements of financial condition and were $92.4 million and $97.1 million at December 31, 2022 and December 31, 2021, respectively. The components of lease expense were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Operating lease cost $ 21,862 $ 19,712 $ 18,757 Finance lease cost: Amortization of right-of-use assets $ 4,753 $ 5,150 $ 5,141 Interest on lease liabilities 8,417 8,360 8,423 Total finance lease cost $ 13,170 $ 13,510 $ 13,564 Supplemental weighted-average information related to leases was as follows: December 31, 2022 2021 Weighted-average remaining lease term (years): Finance leases 23.8 24.6 Operating leases 6.2 6.9 Weighted-average discount rate: Finance leases 7.94 % 7.89 % Operating leases 6.77 % 6.96 % Maturities of lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Leases Finance Leases 2023 $ 24,820 $ 8,577 2024 24,049 8,727 2025 23,734 8,879 2026 23,928 9,035 2027 24,309 9,193 Thereafter 34,196 206,532 Total lease payments 155,036 250,943 Less imputed interest 29,756 145,283 Total $ 125,280 $ 105,660 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of the provision for income taxes were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Current provision for income taxes: Federal $ 276,499 $ 96,389 $ 137,360 State 82,801 26,610 39,757 Total current provision for income taxes 359,300 122,999 177,117 Deferred (benefit) provision for income taxes: Federal (69,656) 14,446 (17,991) State (23,693) 4,018 (5,693) Total deferred (benefit) provision for income taxes (93,349) 18,464 (23,684) Provision for income taxes $ 265,951 $ 141,463 $ 153,433 The following table reflects a reconciliation of the U.S. federal statutory income tax rates to the Company’s effective income tax rates: Years Ended December 31, 2022 2021 2020 Federal statutory income tax rates 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.2 4.1 4.4 Share-based compensation (1.8) (2.7) (1.0) Research and development credits (0.4) (0.4) (0.3) Non-deductible expenses 0.3 0.7 0.3 Other 0.6 0.8 0.1 Effective income tax rates 23.9 % 23.5 % 24.5 % The Company’s effective income tax rate differs from the federal corporate tax rate of 21.0% primarily as a result of certain state taxes, benefits from share-based compensation, and other permanent differences in tax deductibility of certain expenses. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the net deferred income taxes included in the consolidated statements of financial condition were as follows (in thousands): December 31, 2022 2021 Deferred tax assets: Accrued liabilities $ 149,501 $ 148,566 Operating lease liabilities 33,826 35,182 Finance lease liabilities 28,528 28,647 Forgivable loans 19,688 17,369 Share-based compensation 19,246 16,597 Provision for credit losses 5,040 3,691 State taxes 2,402 5,654 Other 10,120 4,604 Total deferred tax assets 268,351 260,310 Deferred tax liabilities: Depreciation of property and equipment (94,136) (147,659) Amortization of other intangibles (50,072) (58,833) Operating lease assets (25,146) (25,832) Unrealized gains — (22,338) Total deferred tax liabilities (169,354) (254,662) Deferred tax assets, net $ 98,997 $ 5,648 The increase in deferred tax assets, net as of December 31, 2022 compared to December 31, 2021 was primarily driven by deferred tax estimates the Company recorded as a result of the change in Internal Revenue Code Section 174, which requires research and development costs to be capitalized and amortized. Prior to this change the Company deducted these costs in the year incurred. The following table reflects a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits, including interest and penalties (in thousands): December 31, 2022 2021 2020 Balance — beginning of year $ 57,014 $ 54,435 $ 52,098 Increases for tax positions taken during the current year 14,777 15,637 8,053 Reductions as a result of a lapse of the applicable statute of limitations and decreases in prior-year tax positions (19,521) (13,058) (5,716) Balance — end of year $ 52,270 $ 57,014 $ 54,435 At December 31, 2022 and 2021, there were $46.6 million and $53.8 million, respectively, of unrecognized tax benefits that if recognized, would favorably affect the effective income tax rate in any future periods. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes within the consolidated statements of financial condition. At December 31, 2022 and 2021, the liability for unrecognized tax benefits included accrued interest of $4.6 million and $7.5 million, respectively, and penalties of $4.1 million and $3.9 million, respectively. The Company and its subsidiaries file federal and state income tax returns, which are subject to routine examinations by the respective taxing authorities. The Company has concluded all federal and state income tax matters for years through 2011. The tax years of 2012 to 2016 and 2019 to 2021 remain open to examination in the federal jurisdiction. The tax years of 2012 to 2021 remain open to examination in the state jurisdictions. In the next 12 months it is reasonably possible that the Company m ay realize a reduction in unrecognized tax benefits of $3.7 million relate d to settleme nts and the statute of limitations expiration in federal and various state jurisdictions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Service and Development Contracts The Company is party to certain long-term contracts for systems and services that enable back office trade processing and clearing for its product and service offerings. Future minimum payments under service, development and agency contracts, and other contractual obligations with initial terms greater than one year were as follows at December 31, 2022 (in thousands): 2023 $ 137,212 2024 53,742 2025 18,418 2026 422 2027 161 Thereafter — Total $ 209,955 Guarantees The Company occasionally enters into contracts that contingently require it to indemnify certain parties against third-party claims. The terms of these obligations vary and, because a maximum obligation is not explicitly stated, the Company has determined that it is not possible to make an estimate of the amount that it could be obligated to pay under such contracts. LPL Financial provides guarantees to securities clearing houses and exchanges under their standard membership agreements, which require a member to guarantee the performance of other members. Under these agreements, if a member becomes unable to satisfy its obligations to the clearing houses and exchanges, all other members would be required to meet any shortfall. The Company’s liability under these arrangements is not quantifiable and could exceed the cash and securities it has posted as collateral. However, the potential requirement for the Company to make payments under these agreements is remote. Accordingly, no liability has been recognized for these transactions. Loan Commitments From time to time, LPL Financial makes loans to advisors and enterprises, primarily to newly recruited advisors and enterprises to assist in the transition process, which may be forgivable. Due to timing differences, LPL Financial may make commitments to issue such loans prior to actually funding them. These commitments are generally contingent upon certain events occurring, including but not limited to the advisor or enterprise joining LPL Financial. LPL Financial had no significant unfunded loan commitments at December 31, 2022 or December 31, 2021. Legal and Regulatory Matters The Company is subject to extensive regulation and supervision by U.S. federal and state agencies and various self-regulatory organizations. The Company and its advisors periodically engage with such agencies and organizations, in the context of examinations or otherwise, to respond to inquiries, informational requests and investigations. From time to time, such engagements result in regulatory complaints or other matters, the resolution of which has in the past and may in the future include fines, customer restitution and other remediation. Assessing the probability of a loss occurring and the timing and amount of any loss related to a legal proceeding or regulatory matter is inherently difficult. While the Company exercises significant and complex judgments to make certain estimates presented in its consolidated financial statements, there are particular uncertainties and complexities involved when assessing the potential outcomes of legal proceedings and regulatory matters. The Company’s assessment process considers a variety of factors and assumptions, which may include: the procedural status of the matter and any recent developments; prior experience and the experience of others in similar matters; the size and nature of potential exposures; available defenses; the progress of fact discovery; the opinions of counsel and experts; or the potential opportunities for settlement and the status of any settlement discussions. The Company monitors these factors and assumptions for new developments and re-assesses the likelihood that a loss will occur and the estimated range or amount of loss, if those amounts can be reasonably determined. The Company has established an accrual for those legal proceedings and regulatory matters for which a loss is both probable and the amount can be reasonably estimated. In October 2022, the Company received a request for information from the Securities and Exchange Commission (“SEC”) in connection with an investigation of the Company’s compliance with records preservation requirements for business-related electronic communications stored on personal devices or messaging platforms that have not been approved by the Company. The Company intends to cooperate fully with the SEC’s inquiry. The Company has estimated that it is reasonably possible that it could incur losses as a result of this request; however, the Company cannot estimate a possible loss or range of loss at this time. At this time, the Company does not believe that this request will have a material adverse effect on its results of operations, financial position, or cash flows. Third-Party Insurance The Company maintains third-party insurance coverage for certain potential legal proceedings, including those involving certain client claims. With respect to such client claims, the estimated losses on many of the pending matters are less than the applicable deductibles of the insurance policies. Self-Insurance The Company has self-insurance for certain potential liabilities through the Captive Insurance Subsidiary. Liabilities associated with the risks that are retained by the Company are not discounted and are estimated by considering, in part, historical claims experience, severity factors, and actuarial assumptions and estimates. The estimated accruals for these potential liabilities could be significantly affected if future occurrences and claims differ from such assumptions and historical trends, so there are particular complexities and uncertainties involved when assessing the adequacy of loss reserves for potential liabilities that are self-insured. Self-insurance liabilities are included in accounts payable and accrued liabilities in the consolidated statements of financial condition. Self-insurance related charges are included in other expense in the consolidated statements of income. The following table provides a reconciliation of the beginning and ending balances of self-insurance liabilities for the years presented (in thousands): December 31, 2022 2021 2020 Beginning balance — January 1 $ 67,152 $ 51,501 $ 40,096 Losses incurred 36,462 34,756 34,784 Losses paid (29,543) (19,105) (23,379) Ending balance — December 31 $ 74,071 $ 67,152 $ 51,501 Other Commitments As of December 31, 2022, the Company had approximately $466.0 million of client margin loans that were collateralized with securities having a fair value of approximately $652.5 million that LPL Financial can repledge, loan or sell. Of these securities, approximately $121.1 million were client-owned securities pledged to the Options Clearing Corporation as collateral to secure client obligations related to options positions. As of December 31, 2022, there were no restrictions that materially limited the Company’s ability to repledge, loan or sell the remaining $531.4 million of client collateral. Investment securities on the consolidated statements of financial condition include $4.5 million and $4.6 million of trading securities pledged to the Options Clearing Corporation at December 31, 2022 and 2021, respectively, and $19.9 million and $15.0 million of trading securities pledged to the National Securities Clearing Corporation at December 31, 2022 and 2021. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Dividends The payment, timing, and amount of any dividends are subject to approval by the Company’s Board of Directors as well as certain limits under the Credit Agreement and the indentures governing the Company’s senior unsecured notes (the “Indentures”). Cash dividends per share of common stock and total cash dividends paid on a quarterly basis were as follows (in millions, except per share data): 2022 2021 2020 Dividend per Share Total Cash Dividend Dividend per Share Total Cash Dividend Dividend per Share Total Cash Dividend First quarter $ 0.25 $ 20.0 $ 0.25 $ 20.0 $ 0.25 $ 19.7 Second quarter $ 0.25 $ 20.0 $ 0.25 $ 20.0 $ 0.25 $ 19.7 Third quarter $ 0.25 $ 20.0 $ 0.25 $ 20.1 $ 0.25 $ 19.8 Fourth quarter $ 0.25 $ 19.9 $ 0.25 $ 20.0 $ 0.25 $ 19.8 Share Repurchases The Company engages in a share repurchase program that was approved by the Board of Directors (the “Board”), pursuant to which the Company may repurchase its issued and outstanding shares of common stock from time to time. Repurchased shares are included in treasury stock on the consolidated statements of financial condition. The Company resumed share repurchases in the third quarter of 2021, and during the year ended December 31, 2022 repurchased 1,566,527 shares of common stock at a weighted-average price of $207.49 for a total of $325.0 million. On September 21, 2022, the Board authorized a $2.1 billion increase to the amount available for repurchases of the Company’s issued and outstanding common shares. As of December 31, 2022, the Company had $2.0 billion remaining under the existing share repurchase program. Future share repurchases may be effected in open market or privately negotiated transactions, including transactions with affiliates, with the timing of purchases and the amount of stock purchased generally determined at the discretion of the Company within the constraints of the Credit Agreement, the Indentures and the Company’s general working capital needs. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION, EMPLOYEE INCENTIVES AND BENEFIT PLANS In May 2021, the Company adopted its 2021 Omnibus Equity Incentive Plan (the “2021 Plan”), which provides for the granting of stock options, warrants, restricted stock awards, restricted stock units, deferred stock units, performance stock units and other equity-based compensation to the Company’s employees, non-employee directors and other service providers. The 2021 Plan serves as the successor to the Company’s 2010 Omnibus Equity Incentive Plan (the “2010 Plan”). Following the adoption of the 2021 Plan, the Company is no longer making grants under the 2010 Plan, and the 2021 Plan is the only plan under which equity awards are granted. However, awards previously granted under the 2010 Plan will remain outstanding until vested, exercised or forfeited, as applicable. There were 17,754,197 shares authorized for grant under the 2021 Plan and 13,781,800 shares remaining available for future issuance at December 31, 2022. Stock Options and Warrants The Company has not granted stock options or warrants since 2019. The following table summarizes the Company’s stock option and warrant activity as of and for the year ended December 31, 2022: Number of Weighted- Weighted- Aggregate Outstanding — December 31, 2021 1,204,420 $ 45.65 Granted — $ — Exercised (527,595) $ 35.66 Forfeited and Expired (3,061) $ 51.19 Outstanding — December 31, 2022 673,764 $ 53.45 4.36 $ 109,632 Exercisable — December 31, 2022 673,764 $ 53.45 4.36 $ 109,632 Exercisable and expected to vest — December 31, 2022 673,764 $ 53.45 4.36 $ 109,632 The following table summarizes information about outstanding stock options and warrants as of December 31, 2022: Outstanding Exercisable Range of Exercise Prices Total Weighted- Weighted- Number of Weighted- $19.85 - $25.00 84,929 3.15 $ 19.85 84,929 $ 19.85 $25.01 - $35.00 23,826 0.15 $ 31.60 23,826 $ 31.60 $35.01 - $45.00 166,168 4.19 $ 39.48 166,168 $ 39.48 $45.01 - $65.00 72,274 1.79 $ 49.06 72,274 $ 49.06 $65.01 - $75.00 153,639 5.06 $ 65.50 153,639 $ 65.50 $75.01 - $80.00 172,928 6.14 $ 77.53 172,928 $ 77.53 673,764 4.36 $ 53.45 673,764 $ 53.45 The Company recognized share-based compensation expense related to the vesting of stock options awarded to employees and officers of $0.2 million, $2.6 million and $4.4 million during the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, there was no unrecognized compensation cost related to non-vested stock options as the remaining share-based compensation expense was recognized during the three months ended March 31, 2022. Restricted Stock and Stock Units The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units and performance stock units, for the year ended December 31, 2022: Restricted Stock Awards Stock Units Number of Weighted-Average Number of Weighted-Average Outstanding — December 31, 2021 1,051 $ 156.54 915,907 $ 111.49 Granted 1,864 $ 173.78 393,006 $ 190.76 Vested (2,101) $ 165.16 (369,186) $ 101.24 Forfeited — $ — (76,553) $ 149.57 Outstanding — December 31, 2022 814 $ 173.78 863,174 (1) $ 148.59 Expected to vest — December 31, 2022 814 $ 173.78 744,561 $ 155.57 ____________________ (1) Includes 82,222 vested and undistributed deferred stock units. The Company grants restricted stock awards and deferred stock units to its directors and restricted stock units and performance stock units to its employees and officers. Restricted stock awards and stock units must vest or are subject to forfeiture; however, restricted stock awards are included in shares outstanding upon grant and have the same dividend and voting rights as the Company’s common stock. The Company recognized $45.4 million, $37.2 million and $25.1 million of share-based compensation expense related to the vesting of these restricted stock awards and stock units during the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, total unrecognized compensation cost for restricted stock awards and stock units was $62.5 million, which is expected to be recognized over a weighted-average remaining period of 1.91 years. The Company also grants restricted stock units to its advisors and to enterprises. The Company recognized share-based compensation expense of $2.6 million, $2.3 million and $2.3 million related to the vesting of these awards during the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, total unrecognized compensation cost for restricted stock units granted to advisors and enterprises was $5.1 million, which is expected to be recognized over a weighted-average remaining period of 2.15 years. Employee Incentives and Benefit Plan s The Company participates in a 401(k) defined contribution plan sponsored by LPL Financial. All employees meeting minimum age and length of service requirements are eligible to participate. The Company has an employer matching program whereby employer contributions are made to the 401(k) plan, and employees are eligible for matching contributions after completing six months of service. For eligible employees, the Company matches up to 75% of the first 8% of an employee’s designated deferral of their eligible compensation. The Company’s total cost related to the 401(k) plan was $24.7 million, $20.9 million and $18.8 million for the years ended December 31, 2022, 2021 and 2020, respectively, which is classified as compensation and benefits expense in the consolidated statements of income. The Company established its Employee Stock Purchase Plan (the “ESPP”) as a benefit to enable eligible employees to purchase common stock of LPLFH at a discount from the market price through payroll deductions, subject to limitations. The ESPP provides for a 15% discount on the market value of the stock at the lower of the grant date price (first day of the offering period) and the purchase date price (last day of the offering period). The Company recognized $4.4 million, $2.0 million and $2.2 million of share-based compensation expense related to the ESPP during the years ended December 31, 2022, 2021 and 2020, respectively. The Company’s 2012 Employee Stock Purchase Plan was replaced by its 2021 Employee Stock Purchase Plan in May 2021. The Company maintains a non-qualified deferred compensation plan for the purpose of attracting and retaining advisors who operate, for tax purposes, as independent contractors, by providing an opportunity for participating advisors to defer receipt of a portion of their gross commissions generated primarily from commissions earned on the sale of various products. The deferred compensation plan has been fully funded to date by participant contributions. Plan assets are invested in mutual funds, which are held by the Company in a Rabbi Trust. The liability for benefits accrued under the non-qualified deferred compensation plan totaled $477.0 million and $482.1 million at December 31, 2022 and 2021, respectively, which is included in other liabilities in the consolidated statements of financial condition. The cash value of the related trust assets was $475.6 million and $482.5 million at December 31, 2022 and 2021, respectively, which is measured at fair value and included in other assets in the consolidated statements of financial condition. Certain employees of the Company participate in a non-qualified deferred compensation plan that permits participants to defer portions of their compensation and may receive a return based on the allocation of notional investments offered under the plan. Plan assets are held by the Company in a Rabbi Trust and accounted for in the manner described above. As of December 31, 2022, the Company has recorded assets of $20.7 million and liabilities of $20.8 million, which are included in other assets and other liabilities, respectively, in the consolidated statements of financial condition. As of December 31, 2021, the Company had recorded assets of $17.1 million and liabilities of $17.1 million. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. The calculation of basic and diluted earnings per share for the years noted was as follows (in thousands, except per share data): Years Ended December 31, 2022 2021 2020 Net income $ 845,702 $ 459,866 $ 472,640 Basic weighted-average number of shares outstanding 79,801 80,002 79,244 Dilutive common share equivalents 1,484 1,740 1,458 Diluted weighted-average number of shares outstanding 81,285 81,742 80,702 Basic earnings per share $ 10.60 $ 5.75 $ 5.96 Diluted earnings per share $ 10.40 $ 5.63 $ 5.86 The computation of diluted earnings per share excludes stock options, warrants and stock units that are anti-dilutive. For the years ended December 31, 2022, 2021 and 2020, stock options, warrants and stock units representing common share equivalents of 9,770 shares, 684 shares and 376,598 shares, respectively, were anti-dilutive. |
Net Capital and Regulatory Requ
Net Capital and Regulatory Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Brokers and Dealers [Abstract] | |
Net Capital and Regulatory Requirements | NET CAPITAL AND REGULATORY REQUIREMENTS The Company’s registered broker-dealer, LPL Financial, is subject to the SEC’s Uniform Net Capital Rule (Rule 15c3-1 under the Exchange Act), which requires the maintenance of minimum net capital. The net capital rules also provide that the broker-dealer’s capital may not be withdrawn if the resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and FINRA to the extent they exceed defined levels, even though such withdrawals would not cause net capital to be less than minimum requirements. Net capital and the related net capital requirement may fluctuate on a daily basis. LPL Financial is a clearing broker-dealer and, as of December 31, 2022, had net capital of $49.5 million, which was $36.2 million in excess of its minimum net capital requirement of $13.3 million. The Company’s subsidiary, PTC, also operates in a highly regulated industry and is subject to various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have substantial monetary and non-monetary impacts on PTC’s operations. |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Credit Risk and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2022 | |
Concentration Risk Credit Risk Financial Instruments Off Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance-Sheet Credit Risk and Concentrations of Credit Risk | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET CREDIT RISK AND CONCENTRATIONS OF CREDIT RISK LPL Financial may offer loans to new and existing advisors and enterprises to facilitate their partnership with LPL Financial, transition to LPL Financial’s platform or fund business development activities. LPL Financial may incur losses if advisors or enterprises do not fulfill their obligations with respect to these loans. To mitigate this risk, LPL Financial evaluates the performance and creditworthiness of the advisor or enterprise prior to offering repayable loans. LPL Financial’s client securities activities are transacted on either a cash or margin basis. In margin transactions, LPL Financial extends credit to the advisor’s client, subject to various regulatory and internal margin requirements, which is collateralized by cash and securities in the client’s account. As clients write options contracts or sell securities short, LPL Financial may incur losses if the clients do not fulfill their obligations and the collateral in the clients’ accounts is not sufficient to fully cover losses that clients may incur from these strategies. To control this risk, LPL Financial monitors margin levels daily and clients are required to deposit additional collateral, or reduce positions, when necessary. LPL Financial is obligated to settle transactions with brokers and other financial institutions even if its advisors’ clients fail to meet their obligation to LPL Financial. Clients are required to complete their transactions on the settlement date, generally two business days after the trade date. If clients do not fulfill their contractual obligations, LPL Financial may incur losses. In addition, the Company occasionally enters into certain types of contracts to fulfill its sale of when-issued securities. When-issued securities have been authorized but are contingent upon the actual issuance of the security. LPL Financial has established procedures to reduce this risk by generally requiring that clients deposit cash or securities into their account prior to placing an order. LPL Financial may at times hold equity securities on both a long and short basis that are recorded on the consolidated statements of financial condition at market value. While long inventory positions represent LPL Financial’s ownership of securities, short inventory positions represent obligations of LPL Financial to deliver specified securities at a contracted price, which may differ from market prices prevailing at the time of completion of the transaction. Accordingly, both long and short inventory positions may result in losses or gains to LPL Financial as market values of securities fluctuate. To mitigate the risk of losses, long and short positions are marked-to-market daily and are continuously monitored by LPL Financial. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS The Company’s Board declared a cash dividend of $0.30 per share on the Company’s outstanding common stock to be paid on March 28, 2023 to all stockholders of record on March 14, 2023 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ( “ GAAP ” ), which require the Company to make estimates and assumptions regarding the valuation of certain financial instruments, goodwill and other intangibles, allowance for credit losses on receivables, share-based compensation, accruals for liabilities, income taxes, revenue and expense accruals and other matters that affect the consolidated financial statements and related disclosures. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the consolidated financial statements. Consolidated Financial Statement Presentation Changes The Company reclassified certain financial statement line items in the consolidated statements of income during the year ended December 31, 2021 to more closely align with industry practice and the Company’s business, and to better serve financial statement users. Prior period amounts in the consolidated statements of income have been reclassified to conform to this presentation as follows: • The Company has disaggregated the activity previously reported in the Transaction and fee line item in Total revenue into its Service and fee and Transaction components; • The Company has included Interest expense on borrowings and Loss on extinguishment of debt in Total expense. Previously, these amounts were presented after Total operating expense. |
Consolidation | Consolidation These consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. Related Party Transactions In the ordinary course of business, the Company enters into related party transactions with beneficial owners of more than five percent of the Company’s outstanding common stock. Additionally, through its subsidiary LPL Financial, the Company provides services and charitable contributions to LPL Financial Charitable Foundation Inc., a charitable organization that provides volunteer and financial support within the Company’s local communities. The Company recognized revenue for services provided to these related parties of $5.7 million, $6.1 million and $4.8 million during the years ended December 31, 2022, 2021 and 2020, respectively. The Company incurred expense for services provided by these related parties of $3.4 million, $2.2 million and $3.8 million during the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022 and 2021, receivables from and payables to related parties were not material. |
Reportable Segment | Reportable Segment Management has determined that the Company operates in one segment, given the similarities in economic characteristics between its operations and the common nature of its products and services, production and distribution process and regulatory environment. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised service is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. For additional information, see Note 3 - Revenue . |
Compensation and Benefits | Compensation and Benefits The Company records compensation and benefits expense for all cash and deferred compensation, benefits and related taxes as earned by its employees. Compensation and benefits expense also includes fees earned by temporary employees and contractors who perform similar services to those performed by the Company’s employees. |
Share-Based Compensation | Share-Based Compensation Certain employees, officers, directors, advisors and enterprises participate in the Company’s various long-term incentive plans that provide for granting stock options, warrants, restricted stock awards, restricted stock units, deferred stock units and performance stock units. Stock options, warrants and restricted stock units generally vest in equal increments over a three-year period and expire on the tenth anniversary following the date of grant. Restricted stock awards and deferred stock units generally vest over a one-year period, and performance stock units generally vest in full at the end of a three-year performance period. The Company recognizes share-based compensation for equity awards granted to employees, officers and directors as compensation and benefits expense on the consolidated statements of income. The fair value of stock options is estimated using a Black-Scholes valuation model on the date of grant. The fair value of restricted stock awards, restricted stock units and deferred stock units is equal to the closing price of the Company’s stock on the date of grant. The fair value of performance stock units is estimated using a Monte-Carlo simulation model on the date of grant. Share-based compensation is recognized over the requisite service period of the individual awards, which generally equals the vesting period. The Company recognizes share-based compensation for equity awards granted to advisors and enterprises as advisory and commission expense on the consolidated statements of income. The fair value of restricted stock units is equal to the closing price of the Company’s stock on the date of grant. Share-based compensation is recognized over the requisite service period of the individual awards, which generally equals the vesting period. The Company makes assumptions regarding the number of restricted stock awards, restricted stock units, deferred stock units and performance stock units that will be forfeited. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. As a result, changes in the forfeiture assumptions do not impact the total amount of expense ultimately recognized over the service period. Rather, different forfeiture assumptions would only impact the timing of expense recognition over the service period. See Note 16 - Share-Based Compensation, Employee Incentives and Benefit Plans , for additional information regarding share-based compensation for equity awards granted. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. |
Income Taxes | Income Taxes In preparing the consolidated financial statements, the Company estimates income tax expense based on various jurisdictions where it conducts business. The Company needs to estimate current tax obligations and to assess temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities. These temporary differences result in deferred tax assets and liabilities. The Company then must assess the likelihood that the deferred tax assets will be realized. A valuation allowance is established to the extent that it is more likely than not that such deferred tax assets will not be realized. When the Company establishes a valuation allowance or modifies the existing allowance in a certain reporting period, it generally records a corresponding increase or decrease to tax expense in the consolidated statements of income. Management makes significant judgments in determining its provision for income taxes, deferred tax assets and liabilities and any valuation allowances recorded against the deferred tax assets. Changes in the estimate of these taxes occur periodically due to changes in the tax rates, changes in the business operations, implementation of tax planning strategies, resolution with taxing authorities of issues where the Company had previously taken certain tax positions and newly enacted statutory, judicial and regulatory guidance. These changes could have a material effect on the Company’s consolidated statements of income, financial condition or cash flows in the period or periods in which they occur. Income tax credits are accounted for using the flow-through method as a reduction of income tax expense in the period they are generated. The Company recognizes the tax effects of a position in the consolidated financial statements only if it is more likely than not to be sustained based solely on its technical merits; otherwise, no benefits of the position are to be recognized. The more-likely-than-not threshold must continue to be met in each reporting period to support continued recognition of a benefit. Moreover, each tax position meeting the recognition threshold is required to be measured as the largest amount that is greater than 50 percent likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. |
Cash and Cash Equivalents, Cash and Securities Segregated Under Federal and Other Regulations, Restricted Cash | Cash and Equivalents Cash equivalents are highly liquid investments with an original maturity of 90 days or less that are not required to be segregated under federal or other regulations. The Company’s cash and equivalents are composed of interest and noninterest-bearing deposits, money market funds and U.S. government obligations. Cash and Equivalents Segregated Under Federal or Other Regulations The Company’s broker-dealer subsidiary, LPL Financial, is required to maintain cash or qualified securities in a segregated reserve account for the exclusive benefit of its customers in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and other regulations. At December 31, 2022, this line item included interest bearing deposits, U.S. treasury bills with original maturities of 90 days or less and approximately $100,000 of cash for the proprietary accounts of broker-dealers. The U.S. treasury bills accrue income as earned. Discounts are accreted using a method that approximates the effective yield method over the term of the bill and are recorded to interest income, net as an adjustment to the investment yield. Restricted Cash Restricted cash primarily represents cash held and for use by the Captive Insurance Subsidiary. |
Receivable From and Payables to Clients | Receivables from Clients, Net and Client Payables Receivables from clients include amounts due on cash and margin transactions. The Company extends credit to clients of its advisors to finance their purchases of securities on margin and receives income from interest charged on such extensions of credit. Client payables represent credit balances in client accounts arising from deposits of funds, proceeds from sales of securities and dividend and interest payments received on securities held in client accounts at LPL Financial. The Company pays interest on certain client payable balances. Receivables from clients are generally fully secured by securities held in the clients’ accounts. To the extent that margin loans and other receivables from clients are not fully collateralized by client securities, the Company establishes an allowance for credit losses that it believes is sufficient to cover expected credit losses. When establishing this allowance for credit losses, the Company considers a number of factors, including its ability to collect from the client or the client’s advisor and its historical experience in collecting on such transactions. |
Advisor Loans | Advisor Loans, Net Advisor loans, net include loans made to new and existing advisors and enterprises to facilitate their partnership with the Company, transition to the Company’s platform or fund business development activities. The decision to extend credit to an advisor or enterprise is generally based on their credit history and ability to generate future revenue. Loans made can be either repayable or forgivable over terms generally up to ten years |
Receivables from Others | Other Receivables, Net Other receivables, net primarily consist of receivables due from product sponsors and others and miscellaneous receivables. An allowance for credit losses is recorded at inception using estimates and assumptions based on historical experience, current facts and other factors. Management monitors the adequacy of these estimates through periodic evaluations against actual trends experienced. |
Securities Owned and Securities Sold, But Not Yet Purchased | Investment Securities Investment securities include trading and held-to-maturity securities. The Company also has securities that have been sold, but not yet purchased, which are reflected in other liabilities on the consolidated statements of financial condition. The Company generally classifies its investments in debt and equity instruments as trading securities, except for U.S. government notes held by its wholly owned subsidiary PTC, which are held to satisfy minimum capital requirements of the OCC and classified as held-to-maturity securities because the Company has both the intent and the ability to hold these investments to maturity. The Company has not classified any investments as available-for-sale. Securities classified as trading are carried at fair value while securities classified as held-to-maturity are carried at amortized cost. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its trading securities. Prices received from the pricing services are validated using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices and review of other relevant market data including implied yields of major categories of securities. In general, these quoted prices are derived from active markets for identical assets or liabilities. When quoted prices in active markets for identical assets and liabilities are not available, the quoted prices are based on similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. For certificates of deposit and treasury securities, the Company utilizes market-based inputs, including observable market interest rates that correspond to the remaining maturities or the next interest reset dates. Interest income is accrued as earned. Premiums and discounts are amortized using a method that approximates the effective yield method over the term of the security and are recorded as an adjustment to the investment yield. The Company makes estimates about the fair value of investments and the timing for recognizing losses based on market conditions and other factors. If these estimates change, the Company may recognize additional losses. |
Securities Borrowed and Fractional Shares | Securities Borrowed The Company borrows securities from other broker-dealers to make deliveries or to facilitate customer short sales. Securities borrowed, which are included in other assets in the consolidated statements of financial condition, are accounted for as collateralized borrowings and are recorded at the contract value, which represents the amount of cash provided for securities borrowed transactions (generally in excess of market values). The adequacy of the collateral deposited, which is determined by comparing the market value of the securities borrowed to the cash loaned , is continuously monitored and is adjusted when considered necessary to minimize the risk associated with this activity. As of December 31, 2022, the contract and collateral market values of borrowed securities were $9.6 million and $9.3 million, respectively. As of December 31, 2021, the contract and collateral market values of borrowed securities were $10.0 million and $9.7 million, respectively. |
Fixed Assets | Property and Equipment, Net Internally developed software, leasehold improvements, computers and software and furniture and equipment are recorded at historical cost, net of accumulated depreciation and amortization. Depreciation is recognized using the straight-line method over the estimated useful lives of the assets. The Company expenses software development costs as incurred during the preliminary project stage while capitalizing costs at the point at which the conceptual formulation, design and testing of possible software project alternatives are complete and management authorizes and commits to funding the project. The costs of internally developed software that qualify for capitalization are included in property and equipment and subsequently amortized over the estimated useful life of the software, which is generally 3 to 5 years. The Company does not capitalize pilot projects or projects for which it believes that the future economic benefits are less than probable. Leasehold improvements are amortized over the lesser of their useful lives or the terms of the underlying leases. Computers and software are depreciated over a period of 3 to 5 years. Furniture and equipment are depreciated over a period of 3 to 7 years. Land is not depreciated. |
Acquisitions | Acquisitions Accounting for business combinations requires the Company to make significant estimates and assumptions with respect to intangible assets, liabilities assumed and pre-acquisition contingencies. These assumptions include, but are not limited to, future expected cash flows and discount rates, and are based in part on historical experience, market data and information obtained from the management of the acquired companies. When acquiring companies in business combinations, the Company recognizes separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill is recognized for business combinations as of the acquisition date and is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, these estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangibles, Net Goodwill and other indefinite-lived intangibles are evaluated annually for impairment in the fourth fiscal quarter and between annual tests if certain events occur indicating that the carrying amounts may be impaired. If a qualitative assessment is used and the Company determines that the fair value of a reporting unit or indefinite-lived intangible is more likely than not (i.e., a likelihood of more than 50%) less than its carrying amount, a quantitative impairment analysis will be performed. An impairment loss will be recognized if a reporting unit’s carrying amount exceeds its fair value, to the extent that it does not exceed the total carrying amount of goodwill. No impairment of goodwill or other indefinite-lived intangibles was recognized for the years ended December 31, 2022, 2021 or 2020. Intangibles that are deemed to have definite lives are amortized over their useful lives generally ranging from 5 to 20 years. They are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount to the estimated undiscounted future cash flows expected to be generated. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value. There was no impairment of definite-lived intangibles recognized for the years ended December 31, 2022, 2021 or 2020. See Note 9 - Goodwill and Other Intangibles, Net , for additional information. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance and amendment costs are capitalized and amortized as additional interest expense over the expected term of the related debt agreement. Debt issuance costs are presented as a direct deduction from the carrying amount of the related debt liability. Costs incurred while obtaining the revolving credit facility are included in other assets in the consolidated statements of financial condition and subsequently amortized ratably over the term of the revolving credit facility regardless of whether there are any outstanding borrowings on the revolving credit facility. |
Commitments and Contingencies | Commitments and Contingencies The Company recognizes a liability for loss contingencies when it believes it is probable a liability has occurred and the amount can be reasonably estimated. If some amount within a range of loss appears at the time to be a better estimate than any other amount within the range, the Company accrues that amount. When no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount in the range. The Company has established an accrual for those legal proceedings and regulatory matters for which a loss is both probable and the amount can be reasonably estimated. The Company also accrues for losses at its Captive Insurance Subsidiary for those matters covered by self-insurance. The Captive Insurance Subsidiary records losses and loss reserve liabilities based on actuarially determined estimates of losses incurred, but not yet reported to the Company as well as specific reserves for proceedings and matters that are probable and estimable. The Captive Insurance Subsidiary is funded by payments from LPL Financial and has cash reserves to cover losses, including $88.7 million in restricted cash at the Captive Insurance Subsidiary. Assessing the probability of a loss occurring and the timing and amount of any loss related to a legal proceeding or regulatory matter is inherently difficult and requires management to make significant judgments. For additional information, see Note 14 - Commitments and Contingencies - “Legal and Regulatory Matters.” |
Leases | LeasesLease assets and liabilities are recognized based on the present value of the future lease payments over the lease term at the lease commencement date and reflected in other assets and other liabilities, respectively, on the consolidated statements of financial condition. The Company estimates its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. For additional information, |
Recently Issued/Adopted Accounting Pronouncements | Recently Issued or Adopted Accounting Pronouncements There are no relevant recently issued accounting pronouncements that would materially impact the Company’s consolidated financial statements and related disclosures. There were no new accounting pronouncements adopted during the year ended December 31, 2022 that materially impacted the Company’s consolidated financial statements and related disclosures. |
Investment, Policy | Fractional Shares The Company acts in a principal capacity in respect of fractional shares resulting from the dividend reinvestment program (“DRIP”) that is offered to clients by aggregating dividends received by clients, executing purchases of whole shares and allocating the whole shares to clients on a fractional basis based on the dividend amounts that are reinvested. Shares remaining after this process and fractional shares purchased by the Company in client liquidations are included in the Company’s inventory and reflected as investment securities on the Company’s consolidated statements of financial condition. Fractional shares that have been allocated to clients do not meet the criteria for sale accounting in ASC 860, Transfers and Servicing |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables from clients [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Allowances for uncollectible amounts due from clients/ advisor loans/ others | The following table reflects a roll-forward of the allowance for credit losses on receivables from clients (in thousands): December 31, 2022 2021 2020 Beginning balance — January 1 $ 987 $ 520 $ 115 Provision for credit losses 66 424 432 (Charge-offs) recoveries, net (144) 43 (27) Ending balance — December 31 $ 909 $ 987 $ 520 |
Advisor Loans [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Allowances for uncollectible amounts due from clients/ advisor loans/ others | The following table reflects a roll-forward of the allowance for credit losses on advisor loans (in thousands): December 31, 2022 2021 2020 Beginning balance — January 1 $ 11,575 $ 8,797 $ 13,461 Impact of ASU 2016-13 adoption — — 8,748 Provision for credit losses 4,790 7,074 3,642 Recoveries (charge-offs), net 361 (4,296) (17,054) Other (1,582) — — Ending balance — December 31 $ 15,144 $ 11,575 $ 8,797 |
Receivables from others [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Allowances for uncollectible amounts due from clients/ advisor loans/ others | The following table reflects a roll-forward of the allowance for credit losses on other receivables (in thousands): December 31, 2022 2021 2020 Beginning balance — January 1 $ 1,083 $ 1,068 $ 805 Impact of ASU 2016-13 adoption — — 1,097 Provision for credit losses 8,811 1,670 1,610 Charge-offs, net of recoveries (8,688) (1,655) (2,444) Other 1,582 — — Ending balance — December 31 $ 2,788 $ 1,083 $ 1,068 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue - Reporting Category [Table Text Block] | The following table presents total commission revenue disaggregated by product category (in thousands): Years Ended December 31, 2022 2021 2020 Commission revenue Annuities $ 1,269,634 $ 1,210,899 $ 976,357 Mutual funds 679,912 768,168 590,074 Fixed income 119,196 126,543 88,714 Equities 114,446 131,975 126,920 Other 142,976 141,098 124,495 Total commission revenue $ 2,326,164 $ 2,378,683 $ 1,906,560 |
Disaggregation of Revenue - Reporting Category & Timing of Transfer of Good or Service [Table Text Block] | The following table presents sales-based and trailing commission revenue disaggregated by product category (in thousands): Years Ended December 31, 2022 2021 2020 Commission revenue Sales-based Annuities $ 542,310 $ 425,164 $ 327,412 Mutual funds 154,742 191,449 145,836 Fixed income 119,196 126,543 88,714 Equities 114,446 131,975 126,920 Other 103,112 98,924 81,882 Total sales-based revenue $ 1,033,806 $ 974,055 $ 770,764 Trailing Annuities $ 727,324 $ 785,735 $ 648,945 Mutual funds 525,170 576,719 444,238 Other 39,864 42,174 42,613 Total trailing revenue $ 1,292,358 $ 1,404,628 $ 1,135,796 Total commission revenue $ 2,326,164 $ 2,378,683 $ 1,906,560 |
Disaggregation of Revenue - Product and Service [Table Text Block] | The following table sets forth asset-based revenue disaggregated by product category (in thousands): Years Ended December 31, 2022 2021 2020 Asset-based revenue Client cash $ 953,624 $ 360,847 $ 481,388 Recordkeeping 412,468 401,429 290,194 Sponsorship programs 394,181 385,791 272,935 Total asset-based revenue $ 1,760,273 $ 1,148,067 $ 1,044,517 |
Disaggregation of Revenue - Timing of Transfer of Good or Service [Table Text Block] | The following table sets forth service and fee revenue disaggregated by recognition pattern (in thousands): Years Ended December 31, 2022 2021 2020 Service and fee revenue Point-in-time (1) $ 115,916 $ 110,459 $ 85,451 Over time (2) 351,465 301,302 272,271 Total service and fee revenue $ 467,381 $ 411,761 $ 357,722 ____________________ (1) Service and fee revenue recognized at a point-in-time includes revenue such as IRA termination fees, conference services and account fees. (2) Service and fee revenue recognized over time includes revenue such as error and omission insurance fees, IRA custodian fees and technology fees. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial assets and financial liabilities measured at fair value on a recurring basis | The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands): December 31, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 13,639 $ — $ — $ 13,639 Cash equivalents segregated under federal or other regulations 1,131,040 — — 1,131,040 Investment securities - trading: U.S. treasury obligations 24,402 — — 24,402 Mutual funds 10,679 — — 10,679 Equity securities 980 — — 980 Debt securities — 585 — 585 Money market funds 112 — — 112 Total investment securities - trading 36,173 585 — 36,758 Other assets: Deferred compensation plan 489,976 — — 489,976 Fractional shares - investment (1) 122,253 — — 122,253 Other investments — 5,248 — 5,248 Total other assets 612,229 5,248 — 617,477 Total assets at fair value $ 1,793,081 $ 5,833 $ — $ 1,798,914 Liabilities Accounts payable and accrued liabilities $ — $ — $ 3,860 $ 3,860 Other liabilities: Securities sold, but not yet purchased: Debt securities — 61 — 61 Equity securities 20 — — 20 Mutual funds 4 — — 4 Total securities sold, but not yet purchased 24 61 — 85 Fractional shares - repurchase obligation (1) 122,253 — — 122,253 Total other liabilities 122,277 61 — 122,338 Total liabilities at fair value $ 122,277 $ 61 $ 3,860 $ 126,198 ____________________ (1) Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP. The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (in thousands): December 31, 2021 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 12,056 $ — $ — $ 12,056 Investment securities - trading: U.S. treasury obligations 19,599 — — 19,599 Mutual funds 19,112 — — 19,112 Equity securities 440 — — 440 Money market funds 123 — — 123 Total investment securities — trading 39,274 — — 39,274 Other assets: Deferred compensation plan 499,548 — — 499,548 Other investments — 9,166 — 9,166 Fractional shares - investment (1) 114,574 — — 114,574 Total other assets 614,122 9,166 — 623,288 Total assets at fair value $ 665,452 $ 9,166 $ — $ 674,618 Liabilities Accounts payable and accrued liabilities $ — $ — $ 3,530 $ 3,530 Other liabilities: Securities sold, but not yet purchased: Equity securities 467 — — 467 Debt securities — 105 — 105 Total securities sold, but not yet purchased 467 105 — 572 Fractional shares - repurchase obligation (1) 114,574 — — 114,574 Total other liabilities 115,041 105 — 115,146 Total liabilities at fair value $ 115,041 $ 105 $ 3,530 $ 118,676 ____________________ (1) Investment in and related repurchase obligation for fractional shares resulting from the Company’s DRIP. |
Financial assets and financial liabilities not measured at fair value | The following tables summarize the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not measured at fair value (in thousands): December 31, 2022 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash $ 833,880 $ 833,880 $ — $ — $ 833,880 Cash segregated under federal or other regulations 1,068,322 1,068,322 — — 1,068,322 Restricted cash 90,389 90,389 — — 90,389 Receivables from clients, net 561,569 — 561,569 — 561,569 Receivables from brokers, dealers and clearing organizations 56,276 — 56,276 — 56,276 Advisor repayable loans, net (1) 280,040 — — 219,062 219,062 Other receivables, net 677,766 — 677,766 — 677,766 Investment securities - held-to-maturity securities 15,852 — 15,471 — 15,471 Other assets: Securities borrowed 9,626 — 9,626 — 9,626 Deferred compensation plan (2) 6,343 6,343 — — 6,343 Other investments (3) 4,647 — 4,647 — 4,647 Total other assets 20,616 6,343 14,273 — 20,616 Liabilities Client payables $ 2,694,929 $ — $ 2,694,929 $ — $ 2,694,929 Payables to brokers, dealers and clearing organizations 147,752 — 147,752 — 147,752 Corporate debt and other borrowings, net 2,717,444 — 2,530,011 — 2,530,011 December 31, 2021 Carrying Value Level 1 Level 2 Level 3 Total Fair Value Assets Cash $ 483,190 $ 483,190 $ — $ — $ 483,190 Cash segregated under federal or other regulations 1,496,463 1,496,463 — — 1,496,463 Restricted cash 80,655 80,655 — — 80,655 Receivables from clients, net 578,889 — 578,889 — 578,889 Receivables from brokers, dealers and clearing organizations 102,503 — 102,503 — 102,503 Advisor repayable loans, net (1) 191,242 — — 176,864 176,864 Other receivables, net 581,483 — 581,483 — 581,483 Investment securities - held-to-maturity securities 9,918 — 9,915 — 9,915 Other assets: Securities borrowed 9,958 — 9,958 — 9,958 Other investments (3) 4,595 — 4,595 — 4,595 Total other assets 14,553 — 14,553 — 14,553 Liabilities Client payables $ 1,712,224 $ — $ 1,712,224 $ — $ 1,712,224 Payables to brokers, dealers and clearing organizations 170,119 — 170,119 — 170,119 Corporate debt and other borrowings, net 2,814,044 — 2,885,536 — 2,885,536 ____________________ (1) Includes repayable loans and forgivable loans which have converted to repayable upon advisor termination or change in agreed upon terms. (2) Includes cash balances awaiting investment or distribution to plan participants. (3) Other investments include Depository Trust Company common shares and Federal Reserve stock. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of amortized cost, gross unrealized loss, and fair value of securities held-to-maturity | The following table summarizes investment securities (in thousands): December 31, 2022 2021 Trading securities - at fair value: U.S. treasury obligations $ 24,402 $ 19,599 Mutual funds 10,679 19,112 Equity securities 980 440 Debt securities 585 — Money market funds 112 123 Total trading securities $ 36,758 $ 39,274 Held-to-maturity securities - at amortized cost: U.S. government notes $ 15,852 $ 9,918 Total held-to-maturity securities $ 15,852 $ 9,918 Total investment securities $ 52,610 $ 49,192 |
Schedule of held-to-maturity securities by maturity | At December 31, 2022, the held-to-maturity securities were scheduled to mature as follows (in thousands): Within one year After one but within five years After five but within ten years After ten years Total U.S. government notes — at amortized cost $ 5,508 $ 10,344 $ — $ — $ 15,852 U.S. government notes — at fair value $ 5,427 $ 10,044 $ — $ — $ 15,471 |
Receivables from Product Spon_2
Receivables from Product Sponsors, Broker-Dealers and Clearing Organizations and Payables to Broker-Dealers and Clearing Organizations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Receivables from Product Sponsors, Broker-Dealers and Clearing Organizations and Payables to Broker-Dealers and Clearing Organizations | Receivables from and payables to brokers, dealers, and clearing organizations were as follows (in thousands): December 31, 2022 2021 Receivables: Receivables from clearing organizations $ 46,075 $ 80,548 Securities failed-to-deliver 9,083 16,978 Receivables from brokers and dealers 1,118 4,977 Total receivables $ 56,276 $ 102,503 Payables: Payables to brokers and dealers $ 82,685 78,080 Payables to clearing organizations 41,495 20,112 Securities failed-to-receive 23,572 71,927 Total payables $ 147,752 $ 170,119 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
The components of fixed assets | The components of property and equipment, net were as follows at December 31, 2022 (in thousands): Historical Cost Accumulated Depreciation and Amortization Net Carrying Value Internally developed software $ 942,432 $ (476,653) $ 465,779 Computers and software 290,412 (208,299) 82,113 Buildings 107,873 (15,503) 92,370 Leasehold improvements 94,959 (43,678) 51,281 Furniture and equipment 87,204 (72,862) 14,342 Land 4,678 — 4,678 Construction in progress (1) 69,794 — 69,794 Total property and equipment, net $ 1,597,352 $ (816,995) $ 780,357 ____________________ (1) Construction in progress includes $69.2 million of internal software in development and related hardware and software at December 31, 2022. The components of property and equipment, net were as follows at December 31, 2021 (in thousands): Historical Cost Accumulated Depreciation and Amortization Net Carrying Value Internally developed software $ 716,179 $ (342,408) $ 373,771 Computers and software 214,223 (167,573) 46,650 Buildings 107,873 (11,627) 96,246 Leasehold improvements 88,538 (36,988) 51,550 Furniture and equipment 83,356 (65,728) 17,628 Land 4,678 — 4,678 Construction in progress (1) 68,318 — 68,318 Total property and equipment, net $ 1,283,165 $ (624,324) $ 658,841 ____________________ (1) Construction in progress includes $37.7 million of internal software in development and related hardware and software at December 31, 2021. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of activity in goodwill | A summary of the activity impacting goodwill is presented below (in thousands): Balance at December 31, 2020 $ 1,513,866 Goodwill acquired 128,577 Balance at December 31, 2021 1,642,443 Goodwill acquired 25 Balance at December 31, 2022 $ 1,642,468 |
Components of intangible assets | The components of other intangibles, net were as follows at December 31, 2022 (thousands): Weighted-Average Life Gross Accumulated Amortization Net Definite-lived intangibles, net: Advisor and enterprise relationships 5.1 $ 809,872 $ (542,415) $ 267,457 Product sponsor relationships 3.2 234,086 (197,165) 36,921 Client relationships (1) 8.0 102,491 (30,318) 72,173 Technology 5.4 19,040 (7,734) 11,306 Trade names 0.0 1,200 (1,200) — Total definite-lived intangible assets, net $ 1,166,689 $ (778,832) $ 387,857 Other indefinite-lived intangibles: Trademark and trade name 39,819 Total other intangibles, net $ 427,676 ____________________ (1) During the year ended December 31, 2022, the Company acquired client relationship intangible assets of $54.1 million as a result of acquisitions under its Liquidity & Succession solution. These acquisitions were accounted for as asset acquisitions with an assigned useful life of 9 years. The components of other intangibles, net were as follows at December 31, 2021 (thousands): Weighted-Average Life Gross Accumulated Amortization Net Definite-lived intangibles, net: Advisor and enterprise relationships 5.9 $ 806,531 $ (476,000) $ 330,531 Product sponsor relationships 4.1 234,086 (185,255) 48,831 Client relationships 7.2 45,623 (23,379) 22,244 Technology 6.4 19,040 (5,477) 13,563 Trade names 0.3 1,200 (1,160) 40 Total definite-lived intangibles, net $ 1,106,480 $ (691,271) $ 415,209 Other indefinite-lived intangibles: Trademark and trade name 39,819 Total other intangibles, net $ 455,028 |
Amortization expense | Future amortization is estimated as follows (in thousands): 2023 $ 86,288 2024 85,517 2025 77,143 2026 38,887 2027 33,738 Thereafter 66,284 Total $ 387,857 |
Other Assert and Other Liabil_2
Other Assert and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets And Other Liabilities [Abstract] | |
Schedule of other assets and other liabilities | The components of other assets and other liabilities were as follows (dollars in thousands): December 31, 2022 2021 Other assets: Deferred compensation $ 496,319 $ 499,548 Prepaid assets 144,607 115,018 Fractional shares - investment (1) 122,253 114,574 Deferred tax assets, net (2) 98,997 5,648 Operating lease assets (3) 92,534 95,075 Debt issuance costs, net 6,422 7,303 Other 62,098 49,822 Total other assets $ 1,023,230 $ 886,988 Other liabilities: Deferred compensation $ 497,736 $ 499,245 Unearned revenue (4) 138,109 160,926 Operating lease liabilities (3) 125,280 130,304 Fractional shares - repurchase obligation (1) 122,253 114,574 Finance lease liabilities (3) 105,660 106,067 Other 113,589 7,160 Total other liabilities $ 1,102,627 $ 1,018,276 _______________________________ (1) See Note 2 - Summary of Significant Accounting Policies for further information. (2) See Note 13 - Income Taxes for further information. (3) See Note 12 - Leases for further information. (4) See Note 3 - Revenue for further information. |
Corporate Debt and Other Borr_2
Corporate Debt and Other Borrowings, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Outstanding borrowings | The Company’s outstanding corporate debt and other borrowings, net were as follows (in thousands): December 31, 2022 December 31, 2021 Corporate Debt Applicable Interest Rate Applicable Interest rate Maturity Term Loan B (1) $ 1,037,900 LIBOR+175 bps 5.87 % $ 1,048,600 LIBOR+175 bps 1.85 % 11/12/2026 2027 Senior Notes (1) 400,000 Fixed Rate 4.63 % 400,000 Fixed Rate 4.63 % 11/15/2027 2029 Senior Notes (1) 900,000 Fixed Rate 4.00 % 900,000 Fixed Rate 4.00 % 3/15/2029 2031 Senior Notes (1) 400,000 Fixed Rate 4.38 % 400,000 Fixed Rate 4.38 % 5/15/2031 Total Corporate Debt 2,737,900 2,748,600 Less: Unamortized Debt Issuance Cost (20,456) (24,556) Corporate debt, net $ 2,717,444 $ 2,724,044 Other Borrowings Revolving Credit Facility (2)(3) — LIBOR+125 bps 5.64 % 55,000 ABR+25 bps 3.50 % 3/15/2026 Unsecured, Uncommitted Lines of Credit (3) — Rate Determined at Time of Borrowing — % 35,000 Broker Base Rate+75 bps 1.00 % 9/30/2023 Total other borrowings $ — $ 90,000 Corporate Debt and Other Borrowings, Net $ 2,717,444 $ 2,814,044 _______________________________ (1) No leverage or interest coverage maintenance covenants. (2) Borrowings bear interest at a rate per annum ranging from 125 to 175 basis points over the Eurodollar Rate or 25 to 75 basis points over the base rate (PRIME rate) depending on the Consolidated Secured Debt to Consolidated EBITDA Ratio (as defined in the Credit Agreement). (3) Balances outstanding under our external lines of credit at December 31, 2021 were repaid in January 2022. The minimum calendar year payments and maturities of the corporate debt and other borrowings as of December 31, 2022 were as follows (in thousands): 2023 $ 10,700 2024 10,700 2025 10,700 2026 1,005,800 2027 400,000 Thereafter 1,300,000 Total $ 2,737,900 The following table presents amounts outstanding and available under the Company’s external lines of credit at December 31, 2022 (in millions): Description Borrower Maturity Date Outstanding Available Senior secured, revolving credit facility LPL Holdings, Inc. March 2026 $ — $ 1,000 Broker-dealer revolving credit facility LPL Financial LLC August 2023 $ — $ 1,000 Unsecured, uncommitted lines of credit LPL Financial LLC September 2023 $ — $ 75 Unsecured, uncommitted lines of credit LPL Financial LLC September 2023 $ — $ 50 Unsecured, uncommitted lines of credit LPL Financial LLC None $ — $ 75 Secured, uncommitted lines of credit LPL Financial LLC None $ — unspecified Secured, uncommitted lines of credit LPL Financial LLC None $ — unspecified |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Operating lease cost $ 21,862 $ 19,712 $ 18,757 Finance lease cost: Amortization of right-of-use assets $ 4,753 $ 5,150 $ 5,141 Interest on lease liabilities 8,417 8,360 8,423 Total finance lease cost $ 13,170 $ 13,510 $ 13,564 |
Supplemental weighted-average information related to leases | Supplemental weighted-average information related to leases was as follows: December 31, 2022 2021 Weighted-average remaining lease term (years): Finance leases 23.8 24.6 Operating leases 6.2 6.9 Weighted-average discount rate: Finance leases 7.94 % 7.89 % Operating leases 6.77 % 6.96 % |
Maturities of Lease Liabilities - Finance Leases | Maturities of lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Leases Finance Leases 2023 $ 24,820 $ 8,577 2024 24,049 8,727 2025 23,734 8,879 2026 23,928 9,035 2027 24,309 9,193 Thereafter 34,196 206,532 Total lease payments 155,036 250,943 Less imputed interest 29,756 145,283 Total $ 125,280 $ 105,660 |
Maturities of Lease Liabilities - Operating Leases | Maturities of lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Leases Finance Leases 2023 $ 24,820 $ 8,577 2024 24,049 8,727 2025 23,734 8,879 2026 23,928 9,035 2027 24,309 9,193 Thereafter 34,196 206,532 Total lease payments 155,036 250,943 Less imputed interest 29,756 145,283 Total $ 125,280 $ 105,660 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of provision for income taxes | The components of the provision for income taxes were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Current provision for income taxes: Federal $ 276,499 $ 96,389 $ 137,360 State 82,801 26,610 39,757 Total current provision for income taxes 359,300 122,999 177,117 Deferred (benefit) provision for income taxes: Federal (69,656) 14,446 (17,991) State (23,693) 4,018 (5,693) Total deferred (benefit) provision for income taxes (93,349) 18,464 (23,684) Provision for income taxes $ 265,951 $ 141,463 $ 153,433 |
Summary of effective income tax rate reconciliation | The following table reflects a reconciliation of the U.S. federal statutory income tax rates to the Company’s effective income tax rates: Years Ended December 31, 2022 2021 2020 Federal statutory income tax rates 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 4.2 4.1 4.4 Share-based compensation (1.8) (2.7) (1.0) Research and development credits (0.4) (0.4) (0.3) Non-deductible expenses 0.3 0.7 0.3 Other 0.6 0.8 0.1 Effective income tax rates 23.9 % 23.5 % 24.5 % |
Components of the net deferred income taxes | The components of the net deferred income taxes included in the consolidated statements of financial condition were as follows (in thousands): December 31, 2022 2021 Deferred tax assets: Accrued liabilities $ 149,501 $ 148,566 Operating lease liabilities 33,826 35,182 Finance lease liabilities 28,528 28,647 Forgivable loans 19,688 17,369 Share-based compensation 19,246 16,597 Provision for credit losses 5,040 3,691 State taxes 2,402 5,654 Other 10,120 4,604 Total deferred tax assets 268,351 260,310 Deferred tax liabilities: Depreciation of property and equipment (94,136) (147,659) Amortization of other intangibles (50,072) (58,833) Operating lease assets (25,146) (25,832) Unrealized gains — (22,338) Total deferred tax liabilities (169,354) (254,662) Deferred tax assets, net $ 98,997 $ 5,648 |
Summary of gross unrecognized tax benefits including interest and penalties reconciliation | The following table reflects a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits, including interest and penalties (in thousands): December 31, 2022 2021 2020 Balance — beginning of year $ 57,014 $ 54,435 $ 52,098 Increases for tax positions taken during the current year 14,777 15,637 8,053 Reductions as a result of a lapse of the applicable statute of limitations and decreases in prior-year tax positions (19,521) (13,058) (5,716) Balance — end of year $ 52,270 $ 57,014 $ 54,435 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum payments | Future minimum payments under service, development and agency contracts, and other contractual obligations with initial terms greater than one year were as follows at December 31, 2022 (in thousands): 2023 $ 137,212 2024 53,742 2025 18,418 2026 422 2027 161 Thereafter — Total $ 209,955 |
Financial Guarantee Insurance Contracts, Claim Liability | The following table provides a reconciliation of the beginning and ending balances of self-insurance liabilities for the years presented (in thousands): December 31, 2022 2021 2020 Beginning balance — January 1 $ 67,152 $ 51,501 $ 40,096 Losses incurred 36,462 34,756 34,784 Losses paid (29,543) (19,105) (23,379) Ending balance — December 31 $ 74,071 $ 67,152 $ 51,501 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Cash dividend paid by quarter (total and per common share) | Cash dividends per share of common stock and total cash dividends paid on a quarterly basis were as follows (in millions, except per share data): 2022 2021 2020 Dividend per Share Total Cash Dividend Dividend per Share Total Cash Dividend Dividend per Share Total Cash Dividend First quarter $ 0.25 $ 20.0 $ 0.25 $ 20.0 $ 0.25 $ 19.7 Second quarter $ 0.25 $ 20.0 $ 0.25 $ 20.0 $ 0.25 $ 19.7 Third quarter $ 0.25 $ 20.0 $ 0.25 $ 20.1 $ 0.25 $ 19.8 Fourth quarter $ 0.25 $ 19.9 $ 0.25 $ 20.0 $ 0.25 $ 19.8 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the Company's activity in its stock option and warrant plans | The following table summarizes the Company’s stock option and warrant activity as of and for the year ended December 31, 2022: Number of Weighted- Weighted- Aggregate Outstanding — December 31, 2021 1,204,420 $ 45.65 Granted — $ — Exercised (527,595) $ 35.66 Forfeited and Expired (3,061) $ 51.19 Outstanding — December 31, 2022 673,764 $ 53.45 4.36 $ 109,632 Exercisable — December 31, 2022 673,764 $ 53.45 4.36 $ 109,632 Exercisable and expected to vest — December 31, 2022 673,764 $ 53.45 4.36 $ 109,632 |
Summary of information about outstanding stock options and warrants | The following table summarizes information about outstanding stock options and warrants as of December 31, 2022: Outstanding Exercisable Range of Exercise Prices Total Weighted- Weighted- Number of Weighted- $19.85 - $25.00 84,929 3.15 $ 19.85 84,929 $ 19.85 $25.01 - $35.00 23,826 0.15 $ 31.60 23,826 $ 31.60 $35.01 - $45.00 166,168 4.19 $ 39.48 166,168 $ 39.48 $45.01 - $65.00 72,274 1.79 $ 49.06 72,274 $ 49.06 $65.01 - $75.00 153,639 5.06 $ 65.50 153,639 $ 65.50 $75.01 - $80.00 172,928 6.14 $ 77.53 172,928 $ 77.53 673,764 4.36 $ 53.45 673,764 $ 53.45 |
Summary of the status of the Company's restricted stock | The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units and performance stock units, for the year ended December 31, 2022: Restricted Stock Awards Stock Units Number of Weighted-Average Number of Weighted-Average Outstanding — December 31, 2021 1,051 $ 156.54 915,907 $ 111.49 Granted 1,864 $ 173.78 393,006 $ 190.76 Vested (2,101) $ 165.16 (369,186) $ 101.24 Forfeited — $ — (76,553) $ 149.57 Outstanding — December 31, 2022 814 $ 173.78 863,174 (1) $ 148.59 Expected to vest — December 31, 2022 814 $ 173.78 744,561 $ 155.57 ____________________ (1) Includes 82,222 vested and undistributed deferred stock units. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | The calculation of basic and diluted earnings per share for the years noted was as follows (in thousands, except per share data): Years Ended December 31, 2022 2021 2020 Net income $ 845,702 $ 459,866 $ 472,640 Basic weighted-average number of shares outstanding 79,801 80,002 79,244 Dilutive common share equivalents 1,484 1,740 1,458 Diluted weighted-average number of shares outstanding 81,285 81,742 80,702 Basic earnings per share $ 10.60 $ 5.75 $ 5.96 Diluted earnings per share $ 10.40 $ 5.63 $ 5.86 |
Organization and Description _2
Organization and Description of the Company (Details) | 12 Months Ended |
Dec. 31, 2022 | |
LPL Financial [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100% |
Number of states in which entity operates | 50 |
AW Subsidiary Inc. [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100% |
LPL Employee Services, LLC [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100% |
Fortigent [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100% |
LPLIA [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100% |
Captive Insurance Subsidiary [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Number of Operating Segments | 1 | ||
Shareholder Percent Ownership in Company | 5% | ||
Revenue from Related Parties | $ 5,700 | $ 6,100 | $ 4,800 |
Related Party Transaction, Expenses from Transactions with Related Party | $ 3,400 | $ 2,200 | $ 3,800 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Share-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Operating Segments | 1 |
Stock options and warrants [Member] | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 3 years |
Restricted stock awards and restricted stock units | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 1 year |
Performance Shares [Member] | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash and Cash Equivalents [Line Items] | |||
Restricted cash | $ 90,389 | $ 80,655 | $ 67,264 |
Commitments and Contingencies | Commitments and Contingencies The Company recognizes a liability for loss contingencies when it believes it is probable a liability has occurred and the amount can be reasonably estimated. If some amount within a range of loss appears at the time to be a better estimate than any other amount within the range, the Company accrues that amount. When no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount in the range. The Company has established an accrual for those legal proceedings and regulatory matters for which a loss is both probable and the amount can be reasonably estimated. The Company also accrues for losses at its Captive Insurance Subsidiary for those matters covered by self-insurance. The Captive Insurance Subsidiary records losses and loss reserve liabilities based on actuarially determined estimates of losses incurred, but not yet reported to the Company as well as specific reserves for proceedings and matters that are probable and estimable. The Captive Insurance Subsidiary is funded by payments from LPL Financial and has cash reserves to cover losses, including $88.7 million in restricted cash at the Captive Insurance Subsidiary. Assessing the probability of a loss occurring and the timing and amount of any loss related to a legal proceeding or regulatory matter is inherently difficult and requires management to make significant judgments. For additional information, see Note 14 - Commitments and Contingencies - “Legal and Regulatory Matters.” | ||
Self Insurance Reserve | |||
Cash and Cash Equivalents [Line Items] | |||
Restricted Cash | $ 88,700 | ||
Maximum | |||
Cash and Cash Equivalents [Line Items] | |||
Cash Equivalent Maturity | 90 days |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Cash Segregated Under Federal and Other Regulations (Details) | Dec. 31, 2022 USD ($) |
Accounting Policies [Abstract] | |
Proprietary Account of Broker-Dealer under SEC Act Rule 15c-3-3 | $ 100,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Receivables From and Payables to Clients (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Provision for credit losses | $ 13,667 | $ 9,168 | $ 5,824 |
Receivables from clients [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance - January 1 | 987 | 520 | 115 |
Provision for credit losses | 66 | 424 | 432 |
(Charge-offs) recoveries, net | 43 | ||
(Charge-offs) recoveries, net | (144) | (27) | |
Ending balance - December 31 | $ 909 | $ 987 | $ 520 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Receivables from Advisor (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Advisor loans, net | $ 1,123,004 | $ 963,869 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Provision for credit losses | $ 13,667 | 9,168 | $ 5,824 |
Advisor Loans Term, Maximum | 10 years | ||
Advisor Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Advisor loans, net | $ 280,000 | 191,200 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance - January 1 | 11,575 | 8,797 | 13,461 |
Provision for credit losses | 4,790 | 7,074 | 3,642 |
(Charge-offs) recoveries, net | 361 | 4,296 | 17,054 |
Other | (1,582) | 0 | 0 |
Ending balance - December 31 | 15,144 | 11,575 | 8,797 |
Advisor Loans [Member] | Cumulative effect of accounting change | Accounting Standards Update 2016-13 [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance - January 1 | $ 0 | $ 8,748 | |
Ending balance - December 31 | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Receivables From Others (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Provision for credit losses | $ 13,667 | $ 9,168 | $ 5,824 |
Receivables from others [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance - January 1 | 1,083 | 1,068 | 805 |
Provision for credit losses | 8,811 | 1,670 | 1,610 |
Other | 1,582 | 0 | 0 |
(Charge-offs) recoveries, net | (8,688) | (1,655) | (2,444) |
Ending balance - December 31 | 2,788 | 1,083 | 1,068 |
Receivables from others [Member] | Cumulative effect of accounting change | Accounting Standards Update 2016-13 [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance - January 1 | $ 0 | 0 | 1,097 |
Ending balance - December 31 | $ 0 | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies Securities Borrowed (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Securities borrowed, contract value | $ 9,600 | $ 10,000 |
Securities borrowed, collateral market value | $ 9,300 | $ 9,700 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies Fixed Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tangible Asset Impairment Charges [Abstract] | |||
Tangible Asset Impairment Charges | $ 0 | $ 0 | $ 0 |
Computers and software [Member] | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets useful life (in years) | 3 years | ||
Computers and software [Member] | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets useful life (in years) | 5 years | ||
Internally developed software [Member] | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets useful life (in years) | 3 years | ||
Internally developed software [Member] | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets useful life (in years) | 5 years | ||
Furniture and equipment [Member] | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets useful life (in years) | 3 years | ||
Furniture and equipment [Member] | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets useful life (in years) | 7 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies Acquisitions (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Measurement Period of Acquisitions, Maximum | 1 year |
Summary of Significant Accou_13
Summary of Significant Accounting Policies Goodwill and Other Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Impairment of Intangible Assets (Excluding Goodwill) [Abstract] | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 0 | 0 | 0 |
Impairment of intangible assets, finite-lived | $ 0 | $ 0 | $ 0 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 5 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 20 years |
Revenue Commission Revenue (Det
Revenue Commission Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Advisory Revenue, Percent of Underlying Assets | 1% | ||
Commission Revenues | $ 2,326,164 | $ 2,378,683 | $ 1,906,560 |
Annuities [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 1,269,634 | 1,210,899 | 976,357 |
Mutual Funds [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 679,912 | 768,168 | 590,074 |
Fixed Income [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 119,196 | 126,543 | 88,714 |
Equities [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 114,446 | 131,975 | 126,920 |
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 142,976 | 141,098 | 124,495 |
Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 1,033,806 | 974,055 | 770,764 |
Transferred at Point in Time [Member] | Annuities [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 542,310 | 425,164 | 327,412 |
Transferred at Point in Time [Member] | Mutual Funds [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 154,742 | 191,449 | 145,836 |
Transferred at Point in Time [Member] | Fixed Income [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 119,196 | 126,543 | 88,714 |
Transferred at Point in Time [Member] | Equities [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 114,446 | 131,975 | 126,920 |
Transferred at Point in Time [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 103,112 | 98,924 | 81,882 |
Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 1,292,358 | 1,404,628 | 1,135,796 |
Transferred over Time [Member] | Annuities [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 727,324 | 785,735 | 648,945 |
Transferred over Time [Member] | Mutual Funds [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | 525,170 | 576,719 | 444,238 |
Transferred over Time [Member] | Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Commission Revenues | $ 39,864 | $ 42,174 | $ 42,613 |
Revenue Asset-Based Revenue (De
Revenue Asset-Based Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Asset-Based Revenues | $ 1,760,273 | $ 1,148,067 | $ 1,044,517 |
Sponsorship Programs [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Asset-Based Revenues | 394,181 | 385,791 | 272,935 |
Recordkeeping [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Asset-Based Revenues | $ 412,468 | $ 401,429 | $ 290,194 |
Revenue Transaction and Fee Rev
Revenue Transaction and Fee Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Transaction and fee revenues | $ 181,260 | $ 156,336 | $ 148,349 |
Service and fee | 467,381 | 411,761 | 357,722 |
Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Service and fee | 115,916 | 110,459 | 85,451 |
Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Service and fee | $ 351,465 | $ 301,302 | $ 272,271 |
Revenue Unearned Revenue (Detai
Revenue Unearned Revenue (Details Texturals) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred Revenue, Revenue Recognized | $ 159.5 | |
Contract with Customer, Liability | $ 138.1 | $ 160.9 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Nov. 02, 2022 | Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,642,468 | $ 1,642,443 | $ 1,513,866 | ||
Finite-lived intangible assets acquired | 54,100 | ||||
Client relationships(1) | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets acquired | 54,100 | ||||
FRGIS | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 140,000 | ||||
Waddell & Reed Financial, Inc. | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 300,000 | ||||
Goodwill | 128,600 | ||||
Finite-lived intangible assets acquired | 122,700 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 62,300 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Investment securities — trading | $ 36,758 | $ 39,274 |
Money Market Funds [Member] | ||
Assets | ||
Investment securities — trading | 112 | 123 |
Equity securities | ||
Assets | ||
Investment securities — trading | 980 | 440 |
US Treasury Securities [Member] | ||
Assets | ||
Investment securities — trading | 24,402 | 19,599 |
Recurring | ||
Assets | ||
Cash equivalents | 13,639 | 12,056 |
Investment securities — trading | 36,758 | 39,274 |
Other assets | 617,477 | 623,288 |
Total assets at fair value | 1,798,914 | 674,618 |
Liabilities | ||
Accounts payable and accrued liabilities | 3,860 | 3,530 |
Securities sold, but not yet purchased | 85 | 572 |
Other liabilities | 122,338 | 115,146 |
Total liabilities at fair value | 126,198 | 118,676 |
Recurring | Federal Or Other Regulations | ||
Assets | ||
Cash equivalents | 1,131,040 | |
Recurring | Mutual funds | ||
Liabilities | ||
Securities sold, but not yet purchased | 4 | |
Recurring | Equity securities | ||
Liabilities | ||
Securities sold, but not yet purchased | 20 | 467 |
Recurring | Debt Securities [Member] | ||
Liabilities | ||
Securities sold, but not yet purchased | 61 | 105 |
Recurring | Money Market Funds [Member] | ||
Assets | ||
Investment securities — trading | 112 | 123 |
Recurring | Mutual funds | ||
Assets | ||
Investment securities — trading | 10,679 | 19,112 |
Recurring | Equity securities | ||
Assets | ||
Investment securities — trading | 980 | 440 |
Recurring | US Treasury Securities [Member] | ||
Assets | ||
Investment securities — trading | 24,402 | 19,599 |
Recurring | Debt Securities [Member] | ||
Assets | ||
Investment securities — trading | 585 | |
Recurring | Deferred compensation plan | ||
Assets | ||
Other assets | 489,976 | 499,548 |
Recurring | Other investments | ||
Assets | ||
Other assets | 5,248 | 9,166 |
Recurring | Fractional Shares | ||
Assets | ||
Other assets | 122,253 | 114,574 |
Liabilities | ||
Other liabilities | 122,253 | 114,574 |
Recurring | Level 1 | ||
Assets | ||
Cash equivalents | 13,639 | 12,056 |
Investment securities — trading | 36,173 | 39,274 |
Other assets | 612,229 | 614,122 |
Total assets at fair value | 1,793,081 | 665,452 |
Liabilities | ||
Accounts payable and accrued liabilities | 0 | 0 |
Securities sold, but not yet purchased | 24 | 467 |
Other liabilities | 122,277 | 115,041 |
Total liabilities at fair value | 122,277 | 115,041 |
Recurring | Level 1 | Federal Or Other Regulations | ||
Assets | ||
Cash equivalents | 1,131,040 | |
Recurring | Level 1 | Mutual funds | ||
Liabilities | ||
Securities sold, but not yet purchased | 4 | |
Recurring | Level 1 | Equity securities | ||
Liabilities | ||
Securities sold, but not yet purchased | 20 | 467 |
Recurring | Level 1 | Debt Securities [Member] | ||
Liabilities | ||
Securities sold, but not yet purchased | 0 | 0 |
Recurring | Level 1 | Money Market Funds [Member] | ||
Assets | ||
Investment securities — trading | 112 | 123 |
Recurring | Level 1 | Mutual funds | ||
Assets | ||
Investment securities — trading | 10,679 | 19,112 |
Recurring | Level 1 | Equity securities | ||
Assets | ||
Investment securities — trading | 980 | 440 |
Recurring | Level 1 | US Treasury Securities [Member] | ||
Assets | ||
Investment securities — trading | 24,402 | 19,599 |
Recurring | Level 1 | Debt Securities [Member] | ||
Assets | ||
Investment securities — trading | 0 | 0 |
Recurring | Level 1 | Deferred compensation plan | ||
Assets | ||
Other assets | 489,976 | 499,548 |
Recurring | Level 1 | Other investments | ||
Assets | ||
Other assets | 0 | 0 |
Recurring | Level 1 | Fractional Shares | ||
Assets | ||
Other assets | 122,253 | 114,574 |
Liabilities | ||
Other liabilities | 122,253 | 114,574 |
Recurring | Level 2 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Investment securities — trading | 585 | 0 |
Other assets | 5,248 | 9,166 |
Total assets at fair value | 5,833 | 9,166 |
Liabilities | ||
Accounts payable and accrued liabilities | 0 | 0 |
Securities sold, but not yet purchased | 61 | 105 |
Other liabilities | 61 | 105 |
Total liabilities at fair value | 61 | 105 |
Recurring | Level 2 | Federal Or Other Regulations | ||
Assets | ||
Cash equivalents | 0 | |
Recurring | Level 2 | Mutual funds | ||
Liabilities | ||
Securities sold, but not yet purchased | 0 | |
Recurring | Level 2 | Equity securities | ||
Liabilities | ||
Securities sold, but not yet purchased | 0 | 0 |
Recurring | Level 2 | Debt Securities [Member] | ||
Liabilities | ||
Securities sold, but not yet purchased | 61 | 105 |
Recurring | Level 2 | Money Market Funds [Member] | ||
Assets | ||
Investment securities — trading | 0 | 0 |
Recurring | Level 2 | Mutual funds | ||
Assets | ||
Investment securities — trading | 0 | 0 |
Recurring | Level 2 | Equity securities | ||
Assets | ||
Investment securities — trading | 0 | 0 |
Recurring | Level 2 | US Treasury Securities [Member] | ||
Assets | ||
Investment securities — trading | 0 | 0 |
Recurring | Level 2 | Debt Securities [Member] | ||
Assets | ||
Investment securities — trading | 585 | |
Recurring | Level 2 | Deferred compensation plan | ||
Assets | ||
Other assets | 0 | 0 |
Recurring | Level 2 | Other investments | ||
Assets | ||
Other assets | 5,248 | 9,166 |
Recurring | Level 2 | Fractional Shares | ||
Assets | ||
Other assets | 0 | 0 |
Liabilities | ||
Other liabilities | 0 | 0 |
Recurring | Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Investment securities — trading | 0 | 0 |
Other assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities | ||
Accounts payable and accrued liabilities | 3,860 | 3,530 |
Securities sold, but not yet purchased | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities at fair value | 3,860 | 3,530 |
Recurring | Level 3 | Federal Or Other Regulations | ||
Assets | ||
Cash equivalents | 0 | |
Recurring | Level 3 | Mutual funds | ||
Liabilities | ||
Securities sold, but not yet purchased | 0 | |
Recurring | Level 3 | Equity securities | ||
Liabilities | ||
Securities sold, but not yet purchased | 0 | 0 |
Recurring | Level 3 | Debt Securities [Member] | ||
Liabilities | ||
Securities sold, but not yet purchased | 0 | 0 |
Recurring | Level 3 | Money Market Funds [Member] | ||
Assets | ||
Investment securities — trading | 0 | 0 |
Recurring | Level 3 | Mutual funds | ||
Assets | ||
Investment securities — trading | 0 | 0 |
Recurring | Level 3 | Equity securities | ||
Assets | ||
Investment securities — trading | 0 | 0 |
Recurring | Level 3 | US Treasury Securities [Member] | ||
Assets | ||
Investment securities — trading | 0 | 0 |
Recurring | Level 3 | Debt Securities [Member] | ||
Assets | ||
Investment securities — trading | 0 | |
Recurring | Level 3 | Deferred compensation plan | ||
Assets | ||
Other assets | 0 | 0 |
Recurring | Level 3 | Other investments | ||
Assets | ||
Other assets | 0 | 0 |
Recurring | Level 3 | Fractional Shares | ||
Assets | ||
Other assets | 0 | 0 |
Liabilities | ||
Other liabilities | $ 0 | $ 0 |
Fair Value Measurements - Not M
Fair Value Measurements - Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets, not measured at fair value | |||
Cash and equivalents | $ 847,519 | $ 495,246 | $ 808,612 |
Cash and equivalents segregated under federal or other regulations | 2,199,362 | 1,496,463 | 923,158 |
Restricted cash | 90,389 | 80,655 | $ 67,264 |
Receivables from clients, net | 561,569 | 578,889 | |
Receivables from brokers, dealers and clearing organizations | 56,276 | 102,503 | |
Advisor loans, net | 1,123,004 | 963,869 | |
Other receivables, net | 677,766 | 581,483 | |
Investment securities - held-to-maturity securities | 15,852 | 9,918 | |
Other assets | 1,023,230 | 886,988 | |
Liabilities, not measured at fair value | |||
Client payables | 2,694,929 | 1,712,224 | |
Payables to brokers, dealers and clearing organizations | 147,752 | 170,119 | |
Corporate debt and other borrowings, net | 2,717,444 | 2,814,044 | |
Financial instruments not measured at fair value | |||
Assets, not measured at fair value | |||
Cash and equivalents | 833,880 | 483,190 | |
Cash and equivalents segregated under federal or other regulations | 1,068,322 | 1,496,463 | |
Restricted cash | 90,389 | 80,655 | |
Receivables from clients, net | 561,569 | 578,889 | |
Receivables from brokers, dealers and clearing organizations | 56,276 | 102,503 | |
Advisor loans, net | 280,040 | 191,242 | |
Other receivables, net | 677,766 | 581,483 | |
Investment securities - held-to-maturity securities | 15,852 | 9,918 | |
Other assets | 20,616 | 14,553 | |
Liabilities, not measured at fair value | |||
Client payables | 2,694,929 | 1,712,224 | |
Payables to brokers, dealers and clearing organizations | 147,752 | 170,119 | |
Corporate debt and other borrowings, net | 2,717,444 | 2,814,044 | |
Financial instruments not measured at fair value | Other investments | |||
Assets, not measured at fair value | |||
Other assets | 4,647 | 4,595 | |
Financial instruments not measured at fair value | Securities borrowed | |||
Assets, not measured at fair value | |||
Other assets | 9,626 | 9,958 | |
Financial instruments not measured at fair value | Deferred compensation plan | |||
Assets, not measured at fair value | |||
Other assets | 6,343 | ||
Financial instruments not measured at fair value | Total Fair Value | |||
Assets, not measured at fair value | |||
Cash and equivalents | 833,880 | 483,190 | |
Cash and equivalents segregated under federal or other regulations | 1,068,322 | 1,496,463 | |
Restricted cash | 90,389 | 80,655 | |
Receivables from clients, net | 561,569 | 578,889 | |
Receivables from brokers, dealers and clearing organizations | 56,276 | 102,503 | |
Advisor loans, net | 219,062 | 176,864 | |
Other receivables, net | 677,766 | 581,483 | |
Investment securities - held-to-maturity securities | 15,471 | 9,915 | |
Other assets | 20,616 | 14,553 | |
Liabilities, not measured at fair value | |||
Client payables | 2,694,929 | 1,712,224 | |
Payables to brokers, dealers and clearing organizations | 147,752 | 170,119 | |
Corporate debt and other borrowings, net | 2,530,011 | 2,885,536 | |
Financial instruments not measured at fair value | Total Fair Value | Other investments | |||
Assets, not measured at fair value | |||
Other assets | 4,647 | 4,595 | |
Financial instruments not measured at fair value | Total Fair Value | Securities borrowed | |||
Assets, not measured at fair value | |||
Other assets | 9,626 | 9,958 | |
Financial instruments not measured at fair value | Total Fair Value | Deferred compensation plan | |||
Assets, not measured at fair value | |||
Other assets | 6,343 | ||
Financial instruments not measured at fair value | Level 1 | |||
Assets, not measured at fair value | |||
Cash and equivalents | 833,880 | 483,190 | |
Cash and equivalents segregated under federal or other regulations | 1,068,322 | 1,496,463 | |
Restricted cash | 90,389 | 80,655 | |
Receivables from clients, net | 0 | 0 | |
Receivables from brokers, dealers and clearing organizations | 0 | 0 | |
Advisor loans, net | 0 | 0 | |
Other receivables, net | 0 | 0 | |
Investment securities - held-to-maturity securities | 0 | 0 | |
Other assets | 6,343 | 0 | |
Liabilities, not measured at fair value | |||
Client payables | 0 | 0 | |
Payables to brokers, dealers and clearing organizations | 0 | 0 | |
Corporate debt and other borrowings, net | 0 | 0 | |
Financial instruments not measured at fair value | Level 1 | Other investments | |||
Assets, not measured at fair value | |||
Other assets | 0 | 0 | |
Financial instruments not measured at fair value | Level 1 | Securities borrowed | |||
Assets, not measured at fair value | |||
Other assets | 0 | 0 | |
Financial instruments not measured at fair value | Level 1 | Deferred compensation plan | |||
Assets, not measured at fair value | |||
Other assets | 6,343 | ||
Financial instruments not measured at fair value | Level 2 | |||
Assets, not measured at fair value | |||
Cash and equivalents | 0 | 0 | |
Cash and equivalents segregated under federal or other regulations | 0 | 0 | |
Restricted cash | 0 | 0 | |
Receivables from clients, net | 561,569 | 578,889 | |
Receivables from brokers, dealers and clearing organizations | 56,276 | 102,503 | |
Advisor loans, net | 0 | 0 | |
Other receivables, net | 677,766 | 581,483 | |
Investment securities - held-to-maturity securities | 15,471 | 9,915 | |
Other assets | 14,273 | 14,553 | |
Liabilities, not measured at fair value | |||
Client payables | 2,694,929 | 1,712,224 | |
Payables to brokers, dealers and clearing organizations | 147,752 | 170,119 | |
Corporate debt and other borrowings, net | 2,530,011 | 2,885,536 | |
Financial instruments not measured at fair value | Level 2 | Other investments | |||
Assets, not measured at fair value | |||
Other assets | 4,647 | 4,595 | |
Financial instruments not measured at fair value | Level 2 | Securities borrowed | |||
Assets, not measured at fair value | |||
Other assets | 9,626 | 9,958 | |
Financial instruments not measured at fair value | Level 2 | Deferred compensation plan | |||
Assets, not measured at fair value | |||
Other assets | 0 | ||
Financial instruments not measured at fair value | Level 3 | |||
Assets, not measured at fair value | |||
Cash and equivalents | 0 | 0 | |
Cash and equivalents segregated under federal or other regulations | 0 | 0 | |
Restricted cash | 0 | 0 | |
Receivables from clients, net | 0 | 0 | |
Receivables from brokers, dealers and clearing organizations | 0 | 0 | |
Advisor loans, net | 219,062 | 176,864 | |
Other receivables, net | 0 | 0 | |
Investment securities - held-to-maturity securities | 0 | 0 | |
Other assets | 0 | 0 | |
Liabilities, not measured at fair value | |||
Client payables | 0 | 0 | |
Payables to brokers, dealers and clearing organizations | 0 | 0 | |
Corporate debt and other borrowings, net | 0 | 0 | |
Financial instruments not measured at fair value | Level 3 | Other investments | |||
Assets, not measured at fair value | |||
Other assets | 0 | 0 | |
Financial instruments not measured at fair value | Level 3 | Securities borrowed | |||
Assets, not measured at fair value | |||
Other assets | 0 | $ 0 | |
Financial instruments not measured at fair value | Level 3 | Deferred compensation plan | |||
Assets, not measured at fair value | |||
Other assets | $ 0 |
Investment Securities - Summary
Investment Securities - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trading securities - at fair value: | ||
Total trading securities | $ 36,758 | $ 39,274 |
Held-to-maturity securities - at amortized cost: | ||
Total held-to-maturity securities | 15,852 | 9,918 |
Short-term Investments | 52,610 | 49,192 |
Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 36,758 | 39,274 |
Level 1 | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 36,173 | 39,274 |
Level 2 | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 585 | 0 |
Money Market Funds [Member] | ||
Trading securities - at fair value: | ||
Total trading securities | 112 | 123 |
Money Market Funds [Member] | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 112 | 123 |
Money Market Funds [Member] | Level 1 | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 112 | 123 |
Money Market Funds [Member] | Level 2 | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 0 | 0 |
Mutual funds | ||
Trading securities - at fair value: | ||
Total trading securities | 10,679 | 19,112 |
Equity securities | ||
Trading securities - at fair value: | ||
Total trading securities | 980 | 440 |
Equity securities | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 980 | 440 |
Equity securities | Level 1 | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 980 | 440 |
Equity securities | Level 2 | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 0 | 0 |
US Treasury Securities [Member] | ||
Trading securities - at fair value: | ||
Total trading securities | 24,402 | 19,599 |
US Treasury Securities [Member] | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 24,402 | 19,599 |
US Treasury Securities [Member] | Level 1 | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 24,402 | 19,599 |
US Treasury Securities [Member] | Level 2 | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 0 | 0 |
U.S. government notes | ||
Held-to-maturity securities - at amortized cost: | ||
Total held-to-maturity securities | 15,852 | 9,918 |
Debt Securities [Member] | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 585 | |
Debt Securities [Member] | Level 1 | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | 0 | $ 0 |
Debt Securities [Member] | Level 2 | Recurring | ||
Trading securities - at fair value: | ||
Total trading securities | $ 585 |
Investment Securities - Held to
Investment Securities - Held to Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
U.S. government notes — at amortized cost | ||
Total | $ 15,852 | $ 9,918 |
U.S. government notes | ||
U.S. government notes — at amortized cost | ||
Within one year | 5,508 | |
After one but within five years | 10,344 | |
After five but within ten years | 0 | |
After ten years | 0 | |
Total | 15,852 | $ 9,918 |
U.S. government notes — at fair value | ||
Within one year | 5,427 | |
After one but within five years | 10,044 | |
After five but within ten years | 0 | |
After ten years | 0 | |
Total | $ 15,471 |
Receivables from Product Spon_3
Receivables from Product Sponsors, Broker-Dealers and Clearing Organizations and Payables to Broker-Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables: | ||
Receivables from clearing organizations | $ 46,075 | $ 80,548 |
Receivables from broker-dealers | 1,118 | 4,977 |
Securities failed-to-deliver | 9,083 | 16,978 |
Total receivables | 56,276 | 102,503 |
Payables: | ||
Payables to clearing organizations | 41,495 | 20,112 |
Payables to broker-dealers | 82,685 | 78,080 |
Securities failed-to-receive | 23,572 | 71,927 |
Total payables | $ 147,752 | $ 170,119 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 1,597,352 | $ 1,283,165 |
Accumulated depreciation and amortization | (816,995) | (624,324) |
Fixed assets, net | 780,357 | 658,841 |
Construction in Progress, Gross | 69,200 | 37,700 |
Internally developed software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 942,432 | 716,179 |
Accumulated depreciation and amortization | (476,653) | (342,408) |
Fixed assets, net | 465,779 | 373,771 |
Computers and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 290,412 | 214,223 |
Accumulated depreciation and amortization | (208,299) | (167,573) |
Fixed assets, net | 82,113 | 46,650 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 107,873 | 107,873 |
Accumulated depreciation and amortization | (15,503) | (11,627) |
Fixed assets, net | 92,370 | 96,246 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 94,959 | 88,538 |
Accumulated depreciation and amortization | (43,678) | (36,988) |
Fixed assets, net | 51,281 | 51,550 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 87,204 | 83,356 |
Accumulated depreciation and amortization | (72,862) | (65,728) |
Fixed assets, net | 14,342 | 17,628 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 4,678 | 4,678 |
Accumulated depreciation and amortization | 0 | 0 |
Fixed assets, net | 4,678 | 4,678 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 69,794 | 68,318 |
Accumulated depreciation and amortization | 0 | 0 |
Fixed assets, net | $ 69,794 | $ 68,318 |
Fixed Assets (Details Textuals)
Fixed Assets (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 199.8 | $ 151.4 | $ 109.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 1,642,468 | $ 1,642,443 | $ 1,513,866 | |
Finite-lived intangible assets acquired | $ 54,100 | |||
Weighted-Average Life Remaining (in years) | 9 years | |||
Amortization of other intangibles | $ 87,560 | $ 79,260 | $ 67,358 | |
Waddell & Reed Financial, Inc. | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 300,000 | |||
Goodwill | 128,600 | |||
Finite-lived intangible assets acquired | $ 122,700 | |||
Weighted-Average Life Remaining (in years) | 9 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,642,443 | $ 1,513,866 |
Goodwill acquired | 25 | 128,577 |
Goodwill, ending balance | $ 1,642,468 | $ 1,642,443 |
Intangible Assets (Components)
Intangible Assets (Components) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets [Line Items] | ||
Weighted-Average Life Remaining (in years) | 9 years | |
Total intangible assets | $ 427,676 | $ 455,028 |
Definite-lived intangibles, net: | ||
Gross Carrying Value | 1,166,689 | 1,106,480 |
Accumulated Amortization | (778,832) | (691,271) |
Net Carrying Value | 387,857 | 415,209 |
Indefinite-lived intangible assets: | ||
Finite-lived intangible assets acquired | 54,100 | |
Trademark and trade name | ||
Indefinite-lived intangible assets: | ||
Net Carrying Value | $ 39,819 | $ 39,819 |
Advisor and enterprise relationships | ||
Intangible Assets [Line Items] | ||
Weighted-Average Life Remaining (in years) | 5 years 1 month 6 days | 5 years 10 months 24 days |
Definite-lived intangibles, net: | ||
Gross Carrying Value | $ 809,872 | $ 806,531 |
Accumulated Amortization | (542,415) | (476,000) |
Net Carrying Value | $ 267,457 | $ 330,531 |
Product sponsor relationships | ||
Intangible Assets [Line Items] | ||
Weighted-Average Life Remaining (in years) | 3 years 2 months 12 days | 4 years 1 month 6 days |
Definite-lived intangibles, net: | ||
Gross Carrying Value | $ 234,086 | $ 234,086 |
Accumulated Amortization | (197,165) | (185,255) |
Net Carrying Value | $ 36,921 | $ 48,831 |
Client relationships(1) | ||
Intangible Assets [Line Items] | ||
Weighted-Average Life Remaining (in years) | 8 years | 7 years 2 months 12 days |
Definite-lived intangibles, net: | ||
Gross Carrying Value | $ 102,491 | $ 45,623 |
Accumulated Amortization | (30,318) | (23,379) |
Net Carrying Value | 72,173 | $ 22,244 |
Indefinite-lived intangible assets: | ||
Finite-lived intangible assets acquired | $ 54,100 | |
Technology | ||
Intangible Assets [Line Items] | ||
Weighted-Average Life Remaining (in years) | 5 years 4 months 24 days | 6 years 4 months 24 days |
Definite-lived intangibles, net: | ||
Gross Carrying Value | $ 19,040 | $ 19,040 |
Accumulated Amortization | (7,734) | (5,477) |
Net Carrying Value | $ 11,306 | $ 13,563 |
Trade names | ||
Intangible Assets [Line Items] | ||
Weighted-Average Life Remaining (in years) | 0 years | 3 months 18 days |
Definite-lived intangibles, net: | ||
Gross Carrying Value | $ 1,200 | $ 1,200 |
Accumulated Amortization | (1,200) | (1,160) |
Net Carrying Value | $ 0 | $ 40 |
Intangible Assets (Future Amort
Intangible Assets (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Future amortization expense | ||
Future expense in year one | $ 86,288 | |
Future expense in year two | 85,517 | |
Future expense in year three | 77,143 | |
Future expense in year four | 38,887 | |
Future expense in year five | 33,738 | |
Thereafter | 66,284 | |
Net Carrying Value | $ 387,857 | $ 415,209 |
Other Assert and Other Liabil_3
Other Assert and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other assets: | ||
Deferred compensation | $ 496,319 | $ 499,548 |
Fractional shares - investment | 122,253 | 114,574 |
Prepaid assets | 144,607 | 115,018 |
Operating Lease, Right-of-Use Asset | 92,534 | 95,075 |
Debt issuance costs, net | 6,422 | 7,303 |
Deferred Income Tax Assets, Net | 98,997 | 5,648 |
Other | 62,098 | 49,822 |
Total other assets | $ 1,023,230 | $ 886,988 |
Operating lease assets [Extensible List] | Total other assets | Total other assets |
Other liabilities: | ||
Deferred compensation | $ 497,736 | $ 499,245 |
Unearned revenue | 138,109 | 160,926 |
Operating lease liabilities | 125,280 | 130,304 |
Fractional shares - repurchase obligation | 122,253 | 114,574 |
Finance Lease, Liability | 105,660 | 106,067 |
Other | 113,589 | 7,160 |
Total other liabilities | $ 1,102,627 | $ 1,018,276 |
Operating lease liabilities [Extensible List] | Total other liabilities | Total other liabilities |
Finance lease liabilities [Extensible List] | Total other liabilities | Total other liabilities |
Corporate Debt and Other Borr_3
Corporate Debt and Other Borrowings, Net - Credit Agreement Outstanding Balance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Borrowings [Line Items] | ||
Total Corporate Debt | $ 2,737,900 | $ 2,748,600 |
Less Unamortized Debt Issuance Cost | 20,456 | 24,556 |
Long-Term Senior Debt, Net | 2,717,444 | 2,724,044 |
Other Long-term Debt | 0 | 90,000 |
Corporate debt and other borrowings, net | 2,717,444 | 2,814,044 |
Secured Debt [Member] | Fourth Amendment Agreement Term Loan B [Member] | ||
Borrowings [Line Items] | ||
Total Corporate Debt | $ 1,037,900 | $ 1,048,600 |
Variable Interest Rate | 5.87% | 1.85% |
Secured Debt [Member] | Fourth Amendment Agreement Term Loan B [Member] | Eurodollar [Member] | ||
Borrowings [Line Items] | ||
Applicable interest rate margin | 1.75% | 1.75% |
Unsecured Debt [Member] | Senior Notes Due 2027 [Member] | ||
Borrowings [Line Items] | ||
Total Corporate Debt | $ 400,000 | $ 400,000 |
Fixed Interest Rate | 4.63% | 4.63% |
Unsecured Debt [Member] | 2029 Senior Notes [Member] | ||
Borrowings [Line Items] | ||
Total Corporate Debt | $ 900,000 | $ 900,000 |
Fixed Interest Rate | 4% | 4% |
Unsecured Debt [Member] | 2031 Senior Notes [Member] | ||
Borrowings [Line Items] | ||
Total Corporate Debt | $ 400,000 | $ 400,000 |
Fixed Interest Rate | 4.38% | 4.38% |
Line of Credit [Member] | ||
Borrowings [Line Items] | ||
Other Long-term Debt | $ 55,000 | |
Revolving Credit Facility [Member] | Line of Credit [Member] | ||
Borrowings [Line Items] | ||
Other Long-term Debt | $ 0 | |
Applicable interest rate margin | 1.25% | 0.25% |
Variable Interest Rate | 5.64% | 3.50% |
Unsecured Debt [Member] | Line of Credit [Member] | ||
Borrowings [Line Items] | ||
Other Long-term Debt | $ 0 | $ 35,000 |
Applicable interest rate margin | 0.75% | |
Variable Interest Rate | 0% | 1% |
Corporate Debt and Other Borr_4
Corporate Debt and Other Borrowings, Net (Other Borrowings Outstanding) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) letters_of_credit | |
Line of Credit Facility [Line Items] | |
Number Of Uncommitted Lines Of Credit | letters_of_credit | 5 |
Uncommitted lines of credit, specified limit | letters_of_credit | 3 |
Revolving Credit Facility [Member] | Line of Credit [Member] | Senior Secured, Revolving Credit Facility Due March 2026 | |
Line of Credit Facility [Line Items] | |
Line of Credit, Outstanding Balance | $ 0 |
Available | 1,000 |
Revolving Credit Facility [Member] | Line of Credit [Member] | Broker-Dealer, Revolving Credit Facility Due July 2024 | |
Line of Credit Facility [Line Items] | |
Line of Credit, Outstanding Balance | 0 |
Available | 1,000 |
Secured Debt [Member] | Line of Credit [Member] | Secured, Uncommitted Lines of Credit, No Maturity, One | |
Line of Credit Facility [Line Items] | |
Line of Credit, Outstanding Balance | 0 |
Secured Debt [Member] | Line of Credit [Member] | Secured, Uncommitted Lines of Credit, No Maturity, Two | |
Line of Credit Facility [Line Items] | |
Line of Credit, Outstanding Balance | 0 |
Unsecured Debt [Member] | Line of Credit [Member] | Unsecured, Uncommitted Lines of Credit Due September 2021, One | |
Line of Credit Facility [Line Items] | |
Line of Credit, Outstanding Balance | 0 |
Available | 75 |
Unsecured Debt [Member] | Line of Credit [Member] | Unsecured, Uncommitted Lines of Credit Due September 2021, Two | |
Line of Credit Facility [Line Items] | |
Line of Credit, Outstanding Balance | 0 |
Available | 50 |
Unsecured Debt [Member] | Line of Credit [Member] | Unsecured, Uncommitted Lines of Credit, No Maturity | |
Line of Credit Facility [Line Items] | |
Line of Credit, Outstanding Balance | 0 |
Available | $ 75 |
Corporate Debt and Other Borr_5
Corporate Debt and Other Borrowings, Net - Credit Agreement Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 04, 2022 | Mar. 15, 2021 | |
Borrowings [Line Items] | |||||
Long-term Debt, Gross | $ 2,737,900 | ||||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ (24,400) | $ 0 | ||
Revolving Credit Facility [Member] | |||||
Borrowings [Line Items] | |||||
Debt Issuance Costs, Gross | $ 3,200 | ||||
Revolving Credit Facility [Member] | Eurodollar [Member] | Minimum | |||||
Borrowings [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
Revolving Credit Facility [Member] | Eurodollar [Member] | Maximum | |||||
Borrowings [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum | |||||
Borrowings [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum | |||||
Borrowings [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||
Line of Credit [Member] | LPL Financial [Member] | |||||
Borrowings [Line Items] | |||||
Debt Issuance Costs, Gross | $ 1,900 | ||||
Secured Debt [Member] | Fourth Amendment Agreement Term Loan B [Member] | Eurodollar [Member] | |||||
Borrowings [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 1.75% | |||
Unsecured Debt [Member] | Senior Notes Due 2027 [Member] | |||||
Borrowings [Line Items] | |||||
Fixed Interest Rate | 4.63% | 4.63% | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | |||||
Borrowings [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | 0.25% |
Corporate Debt and Other Borr_6
Corporate Debt and Other Borrowings, Net - Senior Notes Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 18, 2021 | |
Borrowings [Line Items] | |||||
Long-term Debt, Gross | $ 2,737,900 | ||||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ (24,400) | $ 0 | ||
Revolving Credit Facility [Member] | |||||
Borrowings [Line Items] | |||||
Debt Issuance Costs, Gross | $ 3,200 | ||||
Senior Notes Due 2031 | Unsecured Debt [Member] | |||||
Borrowings [Line Items] | |||||
Long-term Debt, Gross | $ 400,000 | ||||
Fixed Interest Rate | 4.375% | ||||
Debt Issuance Costs, Gross | $ 3,800 | ||||
Senior Notes Due 2029 | Unsecured Debt [Member] | |||||
Borrowings [Line Items] | |||||
Long-term Debt, Gross | $ 900,000 | ||||
Fixed Interest Rate | 4% | ||||
Gain (Loss) on Extinguishment of Debt | $ 24,400 | ||||
Debt Issuance Costs, Gross | 1,000,000 | ||||
2029 Senior Notes [Member] | Unsecured Debt [Member] | |||||
Borrowings [Line Items] | |||||
Fixed Interest Rate | 4% | 4% | |||
Debt Issuance Costs, Gross | $ 9,000 |
Corporate Debt and Other Borr_7
Corporate Debt and Other Borrowings, Net - Broker-Dealer Revolving Credit Facility (Details) - USD ($) $ in Thousands | Aug. 04, 2022 | Dec. 31, 2022 | Aug. 03, 2022 | Dec. 31, 2021 | Mar. 15, 2021 |
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Issuance Costs, Gross | $ 3,200 | ||||
Line of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000 | $ 35,000 | |||
LPL Financial [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Broker-Dealer, Minimum Net Capital Required, Broker-Dealer Subsidiary, Alternative Standard | 36,200 | ||||
LPL Financial [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | ||||
Broker-Dealer, Net Capital | $ 49,500 | ||||
LPL Financial [Member] | Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.10% | ||||
LPL Financial [Member] | Line of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | $ 300,000 | |||
Debt Issuance Costs, Gross | $ 1,900 |
Corporate Debt and Other Borr_8
Corporate Debt and Other Borrowings, Net - Bank Loans Payable Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) letters_of_credit | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||
Number Of Uncommitted Lines Of Credit | letters_of_credit | 5 | |
Uncommitted lines of credit, unspecified limit | 2 | |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ | $ 200 | $ 35 |
Corporate Debt and Other Borr_9
Corporate Debt and Other Borrowings, Net - Future Payments and Maturities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
Future payments due in year one | $ 10,700 |
Future payments due in year two | 10,700 |
Future payments due in year three | 10,700 |
Future payments due in year four | 1,005,800 |
Future payments due in year five | 400,000 |
Thereafter | 1,300,000 |
Long-term Debt, Gross | $ 2,737,900 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 92.4 | $ 97.1 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease And Finance Lease, Remaining Lease Term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease And Finance Lease, Remaining Lease Term | 14 years | |
Lessee, Operating Lease And Finance Lease, Renewal Term | 20 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease Cost | |||
Operating lease cost | $ 21,862 | $ 19,712 | $ 18,757 |
Amortization of right-of-use assets | 4,753 | 5,150 | 5,141 |
Interest on lease liabilities | 8,417 | 8,360 | 8,423 |
Total finance lease cost | $ 13,170 | $ 13,510 | $ 13,564 |
Leases - Supplemental Weighted-
Leases - Supplemental Weighted-Average Information (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted Average Remaining Lease Term [Abstract] | ||
Finance Lease, Weighted Average Remaining Lease Term | 23 years 9 months 18 days | 24 years 7 months 6 days |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 2 months 12 days | 6 years 10 months 24 days |
Weighted Average Discount Rate [Abstract] | ||
Finance Lease, Weighted Average Discount Rate, Percent | 7.94% | 7.89% |
Operating Lease, Weighted Average Discount Rate, Percent | 6.77% | 6.96% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2022 | $ 24,820 | |
2023 | 24,049 | |
2024 | 23,734 | |
2025 | 23,928 | |
2026 | 24,309 | |
Thereafter | 34,196 | |
Total lease payments | 155,036 | |
Less imputed interest | 29,756 | |
Total | 125,280 | $ 130,304 |
Finance Leases | ||
2022 | 8,577 | |
2023 | 8,727 | |
2024 | 8,879 | |
2025 | 9,035 | |
2026 | 9,193 | |
Thereafter | 206,532 | |
Total lease payments | 250,943 | |
Less imputed interest | 145,283 | |
Total | $ 105,660 | $ 106,067 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current provision: | |||
Federal | $ 276,499 | $ 96,389 | $ 137,360 |
State | 82,801 | 26,610 | 39,757 |
Total current provision | 359,300 | 122,999 | 177,117 |
Deferred benefit: | |||
Federal | (69,656) | 14,446 | (17,991) |
State | (23,693) | 4,018 | (5,693) |
Total deferred benefit | (93,349) | 18,464 | (23,684) |
Provision for income taxes | $ 265,951 | $ 141,463 | $ 153,433 |
Income Taxes (Reconciliation to
Income Taxes (Reconciliation to Effective Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of company's effective income tax rate reconciliation | |||
Federal statutory income tax rates | 21% | 21% | 21% |
State income taxes, net of federal benefit | 4.20% | 4.10% | 4.40% |
Non-deductible expenses | 0.30% | 0.70% | 0.30% |
Share-based compensation | (1.80%) | (2.70%) | (1.00%) |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Percent | (0.40%) | (0.40%) | (0.30%) |
Other | 0.60% | 0.80% | 0.10% |
Effective income tax rates | 23.90% | 23.50% | 24.50% |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Accrued liabilities | $ 149,501 | $ 148,566 |
Share-based compensation | 19,246 | 16,597 |
State taxes | 2,402 | 5,654 |
Operating Lease Liabilities | 33,826 | 35,182 |
Finance Lease Liabilities | 28,528 | 28,647 |
Provision for bad debts | 5,040 | 3,691 |
Forgivable Loans | 19,688 | 17,369 |
Other | 10,120 | 4,604 |
Total deferred tax assets | 268,351 | 260,310 |
Deferred tax liabilities: | ||
Amortization of intangible assets | (50,072) | (58,833) |
Depreciation of fixed assets | (94,136) | (147,659) |
Operating lease assets | (25,146) | (25,832) |
Unrealized gains | 0 | (22,338) |
Total deferred tax liabilities | (169,354) | (254,662) |
Deferred tax assets, net | $ 98,997 | $ 5,648 |
Income Taxes (Gross Unrecognize
Income Taxes (Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary of gross unrecognized tax benefits including interest and penalties reconciliation | |||
Balance - Beginning of year | $ 57,014 | $ 54,435 | $ 52,098 |
Increases for tax positions related to the current year | 14,777 | 15,637 | 8,053 |
Reductions as a result of a lapse of the applicable statute of limitations and decreases in prior-year tax positions | (19,521) | (13,058) | (5,716) |
Balance - End of year | $ 52,270 | $ 57,014 | $ 54,435 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits, net of the federal benefit on state issues, favorable income tax rate effect | $ 46.6 | $ 53.8 |
Unrecognized tax benefits, interest accrued | 4.6 | 7.5 |
Unrecognized tax benefits, penalties accrued | 4.1 | $ 3.9 |
Reduction in unrecognized tax benefits related to the statute of limitations | $ 3.7 |
Commitments and Contingencies_2
Commitments and Contingencies (Future Minimum Payments) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Contractual Obligations, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Due in first year | $ 137,212 |
Due in second year | 53,742 |
Due in third year | 18,418 |
Due in fourth year | 422 |
Due in fifth year | 161 |
Due after fifth year | 0 |
Total | $ 209,955 |
Commitments and Contingencies_3
Commitments and Contingencies (Self-Insurance Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Beginning balance — January 1 | $ 67,152 | $ 51,501 | $ 40,096 |
Losses incurred | 36,462 | 34,756 | 34,784 |
Losses paid | (29,543) | (19,105) | (23,379) |
Ending balance — December 31 | $ 74,071 | $ 67,152 | $ 51,501 |
Commitments and Contingencies_4
Commitments and Contingencies (Other Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Brokers and Dealers [Abstract] | ||
Collateral Securities Repledged, Delivered, or Used | $ 466,000 | |
Collateral security | 652,500 | |
Amount pledged with client-owned securities | 121,100 | |
Remaining collateral securities that can be sold, re-pledged or loaned | 531,400 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Investment securities | 52,610 | $ 49,192 |
National Securities Clearing Corporation [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Investment securities | 19,900 | 15,000 |
Options Clearing Corporation [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Investment securities | $ 4,500 | $ 4,600 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |||||||||||||||
Dividend per share (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 1 | $ 1 | $ 1 |
Total cash dividend | $ 19,900 | $ 20,000 | $ 20,000 | $ 20,000 | $ 20,000 | $ 20,100 | $ 20,000 | $ 20,000 | $ 19,800 | $ 19,800 | $ 19,700 | $ 19,700 | $ 79,833 | $ 80,095 | $ 79,097 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 01, 2022 | |
Stockholders' Equity Note [Abstract] | ||||
Shares repurchased | 1,566,527 | |||
Weighted-average price of shares repurchased (in dollars per share) | $ 207.49 | |||
Total cost of shares repurchased | $ 325,031 | $ 90,011 | $ 150,036 | |
Increased number of shares authorized for the share repurchase program (in shares) | $ 2,000,000 | $ 2,100,000 |
Share-Based Compensation Stock
Share-Based Compensation Stock Option and Warrant Activity (Details) - Stock options and warrants [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of Shares Outstanding, Beginning Balance | shares | 1,204,420 |
Number of Shares, Granted | shares | 0 |
Number of Shares, Exercised | shares | (527,595) |
Number of Shares, Forfeited | shares | (3,061) |
Number of Shares Outstanding, Ending Balance | shares | 673,764 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 45.65 |
Weighted-Average Exercise Price, Granted | $ / shares | 0 |
Weighted-Average Exercise Price, Exercised | $ / shares | 35.66 |
Weighted-Average Exercise Price, Forfeited and Expired | $ / shares | 51.19 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | $ 53.45 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 673,764 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 53.45 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 4 months 9 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 109,632 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 4 months 9 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 109,632 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares | 673,764 |
Weighted-Average Exercise Price, Exercisable and expected to vest (in dollars per share) | $ / shares | $ 53.45 |
Weighted-Average Remaining Contractual Term for Options Exercisable and Expected to Vest | 4 years 4 months 9 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ | $ 109,632 |
Share-Based Compensation Outsta
Share-Based Compensation Outstanding Stock Options and Warrants (Details) - Stock options and warrants [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 673,764 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 4 years 4 months 9 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 53.45 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 673,764 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 53.45 |
Range One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | 19.85 |
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 25 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 84,929 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 3 years 1 month 24 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 19.85 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 84,929 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 19.85 |
Range Two [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | 25.01 |
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 35 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 23,826 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 1 month 24 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 31.60 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 23,826 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 31.60 |
Range Three [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | 35.01 |
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 45 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 166,168 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 4 years 2 months 8 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 39.48 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 166,168 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 39.48 |
Range Four [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | 45.01 |
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 65 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 72,274 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 1 year 9 months 14 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 49.06 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 72,274 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 49.06 |
Range Five [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | 65.01 |
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 75 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 153,639 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 5 years 21 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 65.50 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 153,639 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 65.50 |
75.01 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | 75.01 |
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 80 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | shares | 172,928 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 6 years 1 month 20 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 77.53 |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | shares | 172,928 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Exercise Price | $ 77.53 |
Share-Based Compensation Restri
Share-Based Compensation Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Stock units vested and undistributed | 82,222 | |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of Shares, Beginning Balance | 1,051 | |
Number of Shares, Granted | 1,864 | |
Number of Shares, Vested | (2,101) | |
Number of Shares, Forfeited | 0 | |
Number of Shares, Ending Balance | 814 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ 156.54 | |
Weighted-Average Grant-Date Fair Value, Granted | 173.78 | |
Weighted-Average Grant-Date Fair Value, Vested | 165.16 | |
Weighted-Average Grant-Date Fair Value, Forfeited | 0 | |
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 173.78 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 814 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 173.78 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of Shares, Beginning Balance | 915,907 | |
Number of Shares, Granted | 393,006 | |
Number of Shares, Vested | (369,186) | |
Number of Shares, Forfeited | (76,553) | |
Number of Shares, Ending Balance | 863,174 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ 111.49 | |
Weighted-Average Grant-Date Fair Value, Granted | 190.76 | |
Weighted-Average Grant-Date Fair Value, Vested | 101.24 | |
Weighted-Average Grant-Date Fair Value, Forfeited | 149.57 | |
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 148.59 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 744,561 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 155.57 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Authorized shares | 17,754,197 | ||
Remaining Shares Available for Grant | 13,781,800 | ||
Employees and officers [Member] | Stock options and warrants [Member] | |||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Share based compensation expense | $ 0.2 | $ 2.6 | $ 4.4 |
Employees and officers [Member] | Restricted Stock [Member] | |||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Share based compensation expense | 45.4 | 37.2 | 25.1 |
Share based compensation cost unrecognized | $ 62.5 | ||
Non-vested compensation cost weighted-average period | 1 year 10 months 28 days | ||
Advisors and Financial Institutions [Member] | Restricted Stock Units [Member] | |||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Share based compensation expense | $ 2.6 | $ 2.3 | $ 2.3 |
Share based compensation cost unrecognized | $ 5.1 | ||
Non-vested compensation cost weighted-average period | 2 years 1 month 24 days | ||
Minimum | Stock options and warrants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Minimum | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Incentive and Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 8% | ||
Percentage of eligible compensation matched by employer | 75% | ||
Defined Contribution Plan, Cost | $ 24,700 | $ 20,900 | $ 18,800 |
Deferred Compensation Arrangement with Individual, Recorded Liability | 477,000 | 482,100 | |
Deferred Compensation Arrangement with Individual, Contributions by Employer | 475,600 | 482,500 | |
Deferred Compensation Arrangement, Rabbi Trust, Employer Contribution | 20,700 | 17,100 | |
Deferred Compensation Arrangement, Rabbi Trust, Recorded Liability | 20,800 | 17,100 | |
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 4,400 | $ 2,000 | $ 2,200 |
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income | $ 845,702 | $ 459,866 | $ 472,640 |
Basic weighted average number of shares outstanding | 79,801,000 | 80,002,000 | 79,244,000 |
Dilutive common share equivalents | 1,484,000 | 1,740,000 | 1,458,000 |
Diluted weighted average number of shares outstanding | 81,285,000 | 81,742,000 | 80,702,000 |
Basic earnings per share | $ 10.60 | $ 5.75 | $ 5.96 |
Diluted earnings per share | $ 10.40 | $ 5.63 | $ 5.86 |
Earnings per Share (Details Tex
Earnings per Share (Details Textuals) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of Earnings per Share amount | 9,770 | 684 | 376,598 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Shareholder Percent Ownership in Company | 5% | ||
Related party revenues | $ 5,700 | $ 6,100 | $ 4,800 |
Related party expenses | $ 3,400 | $ 2,200 | $ 3,800 |
Net Capital and Regulatory Re_2
Net Capital and Regulatory Requirements (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Brokers and Dealers [Abstract] | |
Broker-Dealer, Minimum Net Capital Required, Broker-Dealer Subsidiary, Aggregate Indebtedness Standard | $ 13.3 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] | Feb. 02, 2023 $ / shares |
Subsequent Event [Line Items] | |
Dividends Payable, Amount Per Share | $ 0.30 |
Dividends Payable, Date to be Paid | Mar. 28, 2023 |
Dividends Payable, Date of Record | Mar. 14, 2023 |