Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 26, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | OPPENHEIMER HOLDINGS INC | |
Entity Central Index Key | 791,963 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Class A Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 13,177,931 | |
Class B Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 99,665 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 37,531,000 | $ 48,154,000 |
Deposits with clearing organizations | 53,956,000 | 42,222,000 |
Receivable from brokers, dealers and clearing organizations | 205,031,000 | 187,115,000 |
Receivable from customers, net of allowance for credit losses of $859 ($769 in 2017) | 797,751,000 | 848,226,000 |
Income tax receivable | 3,495,000 | 2,939,000 |
Securities purchased under agreements to resell, at fair value | 1,502,000 | 658,000 |
Securities owned, including amounts pledged of $738,835 ($655,683 in 2017), at fair value | 895,251,000 | 926,597,000 |
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,334 and $7,126, respectively ($24,705 and $7,975, respectively, in 2017) | 43,278,000 | 40,520,000 |
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $87,165 ($82,826 in 2017) | 28,842,000 | 27,187,000 |
Intangible assets | 32,100,000 | 31,700,000 |
Goodwill | 137,889,000 | 137,889,000 |
Other assets | 119,659,000 | 145,310,000 |
Total assets | 2,356,285,000 | 2,438,517,000 |
Liabilities | ||
Drafts payable | 29,242,000 | 42,412,000 |
Bank call loans | 3,000,000 | 118,300,000 |
Payable to brokers, dealers and clearing organizations | 219,443,000 | 211,483,000 |
Payable to customers | 351,750,000 | 385,907,000 |
Securities sold under agreements to repurchase | 606,010,000 | 586,478,000 |
Securities sold but not yet purchased, at fair value | 143,746,000 | 94,486,000 |
Accrued compensation | 151,658,000 | 173,116,000 |
Accounts payable and other liabilities | 95,820,000 | 92,495,000 |
Senior secured notes, net of debt issuance costs of $969 ($1,163 in 2017) | 199,031,000 | 198,837,000 |
Deferred tax liabilities, net of deferred tax assets of $46,827 ($47,597 in 2017) | 12,708,000 | 11,092,000 |
Total liabilities | 1,812,408,000 | 1,914,606,000 |
Commitments and contingencies (note 12) | ||
Share capital | ||
Common stock | 59,286,000 | 58,492,000 |
Contributed capital | 40,362,000 | 36,546,000 |
Retained earnings | 443,188,000 | 426,930,000 |
Accumulated other comprehensive income | 702,000 | 1,582,000 |
Total Oppenheimer Holdings Inc. stockholders' equity | 543,538,000 | 523,550,000 |
Non-controlling interest | 339,000 | 361,000 |
Total stockholders' equity | 543,877,000 | 523,911,000 |
Total liabilities and stockholders' equity | 2,356,285,000 | 2,438,517,000 |
Class A Stock | ||
Share capital | ||
Common stock | 59,153,000 | 58,359,000 |
Class B Stock | ||
Share capital | ||
Common stock | $ 133,000 | $ 133,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Allowance for credit losses | $ 859 | $ 769 |
Amounts pledged | 738,835 | 655,683 |
Furniture equipment and leasehold improvements, net accumulated depreciation | 87,165 | 82,826 |
Net deferred tax assets | 46,827 | 47,597 |
Notes Receivable, Net Accumulated Amortization | 24,334 | 24,705 |
Notes Receivable, Net Allowance for Uncollectibles | 7,126 | 7,975 |
Unamortized debt issuance expense | $ 969 | $ 1,163 |
Class A Stock | ||
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 13,177,931 | 13,139,203 |
Common stock, shares outstanding | 13,177,931 | 13,139,203 |
Common stock, par value | $ 0.001 | $ 0.001 |
Class B Stock | ||
Common stock, authorized | 99,665 | 99,665 |
Common stock, shares issued | 99,665 | 99,665 |
Common stock, shares outstanding | 99,665 | 99,665 |
Common stock, par value | $ 0.001 | $ 0.001 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUE | ||||
Commissions | $ 79,678 | $ 77,635 | $ 245,935 | $ 248,204 |
Investment Advisory Fee Revenue | 78,154 | 74,329 | 232,972 | 216,521 |
Investment banking | 28,328 | 23,940 | 84,442 | 57,347 |
Proceeds from (Payments for) in Interest-bearing Deposits in Banks | 30,053 | 21,146 | 84,203 | 52,992 |
Interest | 13,403 | 12,952 | 38,686 | 36,346 |
Principal transactions, net | (16) | 5,135 | 9,110 | 15,810 |
Other | 8,214 | 11,083 | 19,552 | 28,145 |
Total revenue | 237,814 | 226,220 | 714,900 | 655,365 |
EXPENSES | ||||
Compensation and related expenses | 152,846 | 142,090 | 457,821 | 428,625 |
Communications and technology | 18,602 | 17,781 | 55,287 | 53,886 |
Occupancy and equipment costs | 15,106 | 15,288 | 45,435 | 45,721 |
Clearing and exchange fees | 5,378 | 5,622 | 17,254 | 17,392 |
Interest | 12,915 | 6,500 | 32,787 | 18,710 |
Other | 25,823 | 27,111 | 77,046 | 87,865 |
Total expenses | 230,670 | 214,392 | 685,630 | 652,199 |
Income before income taxes from continuing operations | 7,144 | 11,828 | 29,270 | 3,166 |
Income Tax Expense (Benefit) | 2,083 | 4,425 | 8,661 | 2,464 |
Net income from continuing operations | 5,061 | 7,403 | 20,609 | 702 |
Income from discontinued operations | 0 | 769 | 0 | 1,834 |
Income taxes | 0 | 308 | 0 | 733 |
Net income from discontinued operations | 0 | 461 | 0 | 1,101 |
Net income | 5,061 | 7,864 | 20,609 | 1,803 |
Less net income (loss) attributable to non-controlling interest, net of tax | (10) | 75 | (22) | 180 |
Net income attributable to Oppenheimer Holdings Inc. | $ 5,071 | $ 7,789 | $ 20,631 | $ 1,623 |
Basic net income per share attributable to Oppenheimer Holdings Inc. | ||||
Continuing operations (in dollars per share) | $ 0.38 | $ 0.56 | $ 1.56 | $ 0.05 |
Discontinued operations (in dollars per share) | 0 | 0.03 | 0 | 0.07 |
Net loss per share (in dollars per share) | 0.38 | 0.59 | 1.56 | 0.12 |
Earnings Per Share, Diluted [Abstract] | ||||
Continuing operations (in dollars per share) | 0.36 | 0.54 | 1.47 | 0.05 |
Discontinued operations (in dollars per share) | 0 | 0.03 | 0 | 0.07 |
Net loss per share (in dollars per share) | $ 0.36 | $ 0.57 | $ 1.47 | $ 0.12 |
Weighted average shares | ||||
Basic (in shares) | 13,269,024 | 13,213,139 | 13,252,596 | 13,290,399 |
Diluted (in shares) | 14,140,263 | 13,763,516 | 14,043,326 | 13,790,136 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 5,061 | $ 7,864 | $ 20,609 | $ 1,803 | |
Other comprehensive income (loss), net of tax | |||||
Currency translation adjustment | [1] | 99 | (251) | (880) | 1,953 |
Comprehensive income | 5,160 | 7,613 | 19,729 | 3,756 | |
Net income (loss) attributable to non-controlling interest, net of tax | (10) | 75 | (22) | 180 | |
Total comprehensive income | $ 5,170 | $ 7,538 | $ 19,751 | $ 3,576 | |
[1] | No other comprehensive income (loss) is attributable to non-controlling interests. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Share Capital | Share CapitalClass A Stock | Contributed Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Parent | Non-Controlling Interest | |
Balance at beginning of period at Dec. 31, 2016 | $ 59,361 | $ 41,765 | $ 410,258 | $ (681) | $ 2,631 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of Class A non-voting common stock | $ 4,225 | ||||||||
Repurchase of Class A non-voting common stock for cancellation | (7,464) | ||||||||
Share-based expense | 4,112 | ||||||||
Vested employee share plan awards | (6,457) | ||||||||
Cumulative-effect adjustment from adoption of new accounting update of employee share-based accounting | 425 | ||||||||
Net income attributable to Oppenheimer Holdings Inc. | $ 1,623 | 1,623 | $ 1,623 | ||||||
Dividends paid ($0.33 per share) | (4,394) | ||||||||
Dividends received from non-controlling interest | 6 | ||||||||
Cumulative-effect adjustment from adoption of new accounting update of employee share-based accounting | (314) | ||||||||
Currency translation adjustment | 1,953 | [1] | 1,953 | ||||||
Less net income (loss) attributable to non-controlling interest, net of tax | 180 | 0 | 180 | ||||||
Dividends paid to non-controlling interest | 2,448 | 0 | (2,448) | ||||||
Distributions Dividends paid to Controlling Interests | (6) | ||||||||
Balance at end of period at Sep. 30, 2017 | 504,775 | 56,122 | 39,845 | 407,179 | 1,272 | 504,418 | 357 | ||
Balance at beginning of period at Dec. 31, 2017 | 523,911 | 58,492 | 36,546 | 426,930 | 1,582 | 523,550 | 361 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of Class A non-voting common stock | 794 | ||||||||
Repurchase of Class A non-voting common stock for cancellation | $ 0 | ||||||||
Share-based expense | 4,647 | ||||||||
Vested employee share plan awards | (831) | ||||||||
Cumulative-effect adjustment from adoption of new accounting update of employee share-based accounting | 0 | ||||||||
Net income attributable to Oppenheimer Holdings Inc. | 20,631 | 20,631 | 20,631 | ||||||
Dividends paid ($0.33 per share) | (4,373) | ||||||||
Dividends received from non-controlling interest | 0 | ||||||||
Cumulative-effect adjustment from adoption of new accounting update of employee share-based accounting | 0 | ||||||||
Currency translation adjustment | (880) | [1] | (880) | ||||||
Less net income (loss) attributable to non-controlling interest, net of tax | (22) | 0 | (22) | ||||||
Dividends paid to non-controlling interest | 0 | 0 | |||||||
Distributions Dividends paid to Controlling Interests | 0 | ||||||||
Balance at end of period at Sep. 30, 2018 | $ 543,877 | $ 59,286 | $ 40,362 | $ 443,188 | $ 702 | $ 543,538 | $ 339 | ||
[1] | No other comprehensive income (loss) is attributable to non-controlling interests. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Retained Earnings | ||
Dividends | $ 0.33 | $ 0.33 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 20,609 | $ 1,803 |
Non-cash items included in net income: | ||
Depreciation and amortization of furniture, equipment and leasehold improvements | 4,999 | 4,185 |
Deferred income taxes | 1,616 | 4,240 |
Amortization of notes receivable | 9,480 | 8,658 |
Amortization of debt issuance costs | 194 | 287 |
Write-off of debt issuance costs | 0 | 430 |
Provision for (reversal of) credit losses | 90 | (12) |
Share-based compensation | 11,088 | 3,517 |
Decrease (increase) in operating assets: | ||
Deposits with clearing organizations | 11,734 | 6,016 |
Receivable from brokers, dealers and clearing organizations | (17,916) | (33,957) |
Receivable from customers | 50,385 | 71,796 |
Income tax receivable | (556) | 755 |
Securities purchased under agreements to resell | (844) | 24,006 |
Securities owned | 31,346 | (330,355) |
Notes receivable | (12,238) | (16,800) |
Other assets | 24,487 | (9,585) |
Increase (decrease) in operating liabilities: | ||
Drafts payable | (13,170) | (12,748) |
Payable to brokers, dealers and clearing organizations | 7,960 | 26,090 |
Payable to customers | (34,157) | (53,431) |
Securities sold under agreements to repurchase | 19,532 | 20,566 |
Securities sold but not yet purchased | 49,260 | 281,531 |
Accrued compensation | (27,899) | (14,238) |
Accounts payable and other liabilities | 5,747 | (5,108) |
Cash provided by (used in) operating activities | 118,279 | (34,386) |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | (6,654) | (3,506) |
Purchase of tangible assets | (400) | 0 |
Proceeds from settlement of company-owned life insurance | 284 | 1,194 |
Cash used in investing activities | (6,770) | (2,312) |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | (4,373) | (4,394) |
Cash dividends paid to non-controlling interest | 0 | (2,448) |
Issuance of Class A non-voting common stock | 70 | 0 |
Repurchase of Class A non-voting common stock for cancellation | 0 | (7,464) |
Payments for employee taxes withheld related to vested share-based awards | (2,529) | (2,232) |
Issuance of senior secured notes | 0 | 200,000 |
Redemption of senior secured notes | 0 | 150,000 |
Debt issuance costs | 0 | (1,183) |
Decrease in bank call loans, net | (115,300) | (15,700) |
Cash (used in) provided by financing activities | (122,132) | 16,579 |
Net decrease in cash and cash equivalents | (10,623) | (20,119) |
Cash and cash equivalents, beginning of period | 48,154 | 64,913 |
Cash and cash equivalents, end of period | 37,531 | 44,794 |
Schedule of non-cash financing activities | ||
Employee share plan issuance | 724 | 4,225 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 36,500 | 17,711 |
Cash paid during the period for income taxes, net | $ 7,757 | $ 2,354 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization and basis of presentation Organization Oppenheimer Holdings Inc. ("OPY" or the "Parent") is incorporated under the laws of the State of Delaware. The condensed consolidated financial statements include the accounts of OPY and its consolidated subsidiaries (together, the "Company"). The Company engages in a broad range of activities in the financial services industry, including retail securities brokerage, institutional sales and trading, market-making, research, investment banking (both corporate and public finance), investment advisory and asset management services and trust services. The Company has 91 retail branch offices in the United States and has institutional businesses located in London, Tel Aviv, and Hong Kong. The principal subsidiaries of OPY are Oppenheimer & Co. Inc. ("Oppenheimer"), a registered broker-dealer in securities and investment adviser under the Investment Advisers Act of 1940; Oppenheimer Asset Management Inc. ("OAM") and its wholly-owned subsidiary, Oppenheimer Investment Management LLC, both registered investment advisers under the Investment Advisers Act of 1940; Oppenheimer Trust Company of Delaware ("Oppenheimer Trust"), a limited purpose trust company that provides fiduciary services such as trust and estate administration and investment management; OPY Credit Corp., which offers syndication as well as trading of issued corporate loans; Oppenheimer Europe Ltd., based in the United Kingdom, with offices in the Isle of Jersey and Switzerland, which provides institutional equities and fixed income brokerage and corporate finance and is regulated by the Financial Conduct Authority; Oppenheimer Investments Asia Limited, based in Hong Kong, China, which provides fixed income and equities brokerage services to institutional investors and is regulated by the Securities and Futures Commission; and Oppenheimer Multifamily Housing & Healthcare Finance, Inc. ("OMHHF") which was formerly engaged in Federal Housing Administration ("FHA")-insured commercial mortgage origination and servicing. During 2016, the Company sold substantially all of the assets of OMHHF and ceased its operations. Oppenheimer owns Freedom Investments, Inc. ("Freedom"), a registered broker dealer in securities, which provides discount brokerage services, and Oppenheimer Israel (OPCO) Ltd., which is engaged in offering investment services in the State of Israel. Oppenheimer holds a trading permit on the New York Stock Exchange and is a member of several other regional exchanges in the United States. Basis of Presentation The accompanying condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America ("U.S. GAAP") for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 (the "Form 10-K"). The accompanying December 31, 2017 condensed consolidated balance sheet data was derived from the audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and the accompanying disclosures. Although these estimates are based on management's knowledge of current events and actions that the Company may undertake in the future, actual results may differ materially from the estimates. The condensed consolidated results of operations for the nine month period ended September 30, 2018 are not necessarily indicative of the results to be expected for any future interim or annual period. Certain prior period amounts have been reclassified to conform to the current period presentation. Accounting standards require the Company to present non-controlling interests as a separate component of stockholders' equity on the Company's condensed consolidated balance sheet. As of September 30, 2018 , the Company owned 83.68% of OMHHF and the non-controlling interest recorded on the condensed consolidated balance sheet was $339,000 . |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
New accounting pronouncements | New accounting pronouncements Recently Issued In February 2016, the FASB issued ASU 2016-02, "Leases." The ASU requires the recognition of a right-of use asset and lease liability on the balance sheet by lessees for those leases classified as operating leases under previous guidance. The ASU is effective for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of adopting this ASU which it expects will have a significant impact on its condensed consolidated financial statements. Since the Company has operating leases in over 100 locations, equipment leases and embedded leases, the Company expects to recognize a significant right-of use asset and lease liability on its condensed consolidated balance sheet upon adoption of this ASU. As of September 30, 2018, the Company estimates that it will record right-of-use assets between $170.0 million to $190.0 million and lease liabilities within the same range on the condensed consolidated balance sheet upon the adoption of this standard, which predominately relate to real estate leases. The Company has elected the modified retrospective method and will include any cumulative-effect adjustment as of the date of adoption. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which amends the FASB's guidance on the impairment of financial instruments. The ASU adds to U.S. GAAP an impairment model ("current expected credit loss model"). Under this new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The ASU is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact, if any, that the ASU will have on the Company; the adoption of the ASU is not currently expected to have a material impact on its condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other, Simplifying the Test for Goodwill Impairment," which simplifies the subsequent measurement of goodwill. The Company is no longer required to perform its Step 2 goodwill impairment test; instead, the Company should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The ASU is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company will not early adopt this ASU. The Company is currently evaluating the impact, if any, of the ASU on the Company; the adoption of the ASU is not currently expected to have a material impact on its condensed consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities," which amends the hedge accounting recognition and presentation requirements. The ASU improves the transparency and understandability of information conveyed to financial statement users by better aligning companies' hedging relationships to their existing risk management strategies, simplifies the application of hedge accounting and increases transparency regarding the scope and results of the hedging program. The ASU is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company will not early adopt this ASU. The Company is currently evaluating the impact, if any, of the ASU on the Company; the adoption of the ASU is not currently expected to have a material impact on its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement - Disclosure Framework - Changes to the Disclosure Requirements for the Fair Value Measurement," which modifies the disclosure requirements related to fair value measurement. The ASU is effective for fiscal years and interim periods beginning after December 15, 2019 and early adoption is permitted. The Company will not early adopt this ASU. The Company is currently evaluating the impact, if any, of the ASU on the Company's disclosure. |
Revenues from contracts with cu
Revenues from contracts with customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from contracts with customers | Revenues from contracts with customers In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers." The Company has elected the modified retrospective method which did not result in a cumulative-effect adjustment at the date of adoption. The implementation of this new standard had no material impact on the Company's condensed consolidated financial statements for the three and nine months ended September 30, 2018 . Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised goods or services to customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, the Company considers the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of the Company's influence, such as market volatility or the judgment and actions of third parties. The Company earns revenue from contracts with customers and other sources (principal transactions, interest and other). The following provides detailed information on the recognition of the Company's revenue from contracts with customers: Commissions Commissions from Sales and Trading — The Company earns commission revenue by executing, settling and clearing transactions with clients primarily in exchange-traded and over-the-counter corporate equity and debt securities, money market instruments and exchange-traded options and futures contracts. A substantial portion of Company's revenue is derived from commissions from private clients through accounts with transaction-based pricing. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenue associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, is recognized at a point in time on trade date when the performance obligation is satisfied. Commission revenue is generally paid on settlement date, which is generally two business days after trade date for equity securities and corporate bond transactions and one day for government securities and commodities transactions. The Company records a receivable on the trade date and receives a payment on settlement date. Mutual Fund Income — The Company earns mutual fund income for sales and distribution of mutual fund shares. Many mutual fund companies pay distribution fees to intermediaries, such as broker-dealers, for selling their shares. The fees are operational expenses of the mutual fund and are included in its expense ratio. The Company recognizes mutual fund income at a point in time on trade date when the performance obligation is satisfied which is when the mutual fund interest is sold to the investor. Mutual fund income is generally received within 90 days. Advisory Fees The Company earns management and performance (or incentive) fees in connection with the advisory and asset management services it provides to various types of funds and investment vehicles through its subsidiaries. Management fees are generally based on the account value at the valuation date per the respective asset management agreements and are recognized over time as the customer receives the benefits of the services evenly throughout the term of the contract. Performance fees are recognized when the return on client assets under management ("AUM") exceeds a specified benchmark return or other performance targets over a 12-month measurement period. Performance fees are considered variable as they are subject to fluctuation and/or are contingent on a future event over the measurement period and are not subject to adjustment once the measurement period ends. Such fees are computed as of the fund's year-end when the measurement period ends and generally are recorded as earned in the fourth quarter of the Company's fiscal year. Both management and performance fees are generally received within 90 days. Investment Banking The Company earns underwriting revenues by providing capital raising solutions for corporate clients through initial public offerings, follow-on offerings, equity-linked offerings, private investments in public entities, and private placements. Underwriting revenues are recognized at a point in time on trade date, as the client obtains the control and benefit of the capital markets offering at that point. These fees are generally received within 90 days after the transactions are completed. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenue. Underwriting revenues and related expenses are presented gross on the condensed consolidated statement of income. Revenue from financial advisory services includes fees generated in connection with mergers, acquisitions and restructuring transactions and such revenue and fees are primarily recorded at a point in time when services for the transactions are completed and income is reasonably determinable, generally as set forth under the terms of the engagement. Payment for advisory services is generally due upon a completion of the transaction or milestone. Retainer fees and fees earned from certain advisory services are recognized ratably over the service period as the customer receives the benefit of the services throughout the term of the contracts, and such fees are collected based on the terms of the contracts. Bank Deposit Sweep Income Bank deposit sweep income consists of revenue earned from the FDIC-insured bank deposit program. Under this program, client funds are swept into deposit accounts at participating banks and are eligible for FDIC deposit insurance up to FDIC standard maximum deposit insurance amounts. Fees are earned over time and are generally received within 30 days. Disaggregation of Revenue The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the three and nine months ended September 30, 2018 : (Expressed in thousands) For the Three Months Ended September 30, 2018 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 36,553 $ — $ 31,807 $ 10 $ 68,370 Mutual fund income 11,059 240 4 5 11,308 Advisory fees 60,516 17,627 3 8 78,154 Investment banking - capital markets 2,733 — 15,806 — 18,539 Investment banking - advisory — — 9,789 — 9,789 Bank deposit sweep income 30,053 — — — 30,053 Other 3,654 3 318 40 4,015 Total revenues from contracts with customers 144,568 17,870 57,727 63 220,228 Other sources of revenue: Interest 9,469 — 3,678 256 13,403 Principal transactions, net 675 — 6,423 (7,114 ) (16 ) Other 3,371 — 302 526 4,199 Total other sources of revenue 13,515 — 10,403 (6,332 ) 17,586 Total revenue $ 158,083 $ 17,870 $ 68,130 $ (6,269 ) $ 237,814 (Expressed in thousands) For the Nine Months Ended September 30, 2018 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 115,924 $ — $ 96,826 $ 87 $ 212,837 Mutual fund income 32,327 745 11 15 33,098 Advisory fees 180,426 52,465 57 24 232,972 Investment banking - capital markets 10,572 — 46,398 — 56,970 Investment banking - advisory — — 27,472 — 27,472 Bank deposit sweep income 84,203 — — — 84,203 Other 11,359 9 750 (6 ) 12,112 Total revenues from contracts with customers 434,811 53,219 171,514 120 659,664 Other sources of revenue: Interest 27,820 1 10,146 719 38,686 Principal transactions, net 807 — 15,804 (7,501 ) 9,110 Other 5,292 — 401 1,747 7,440 Total other sources of revenue 33,919 1 26,351 (5,035 ) 55,236 Total revenue $ 468,730 $ 53,220 $ 197,865 $ (4,915 ) $ 714,900 Contract Balances The timing of the Company's revenue recognition may differ from the timing of payment by its customers. The Company records receivables when revenue is recognized prior to payment and it has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company had receivables related to revenue from contracts with customers of $23.7 million and $18.6 million at September 30, 2018 and January 1, 2018, respectively. The Company had no significant impairments related to these receivables during the three and nine months ended September 30, 2018 . Deferred revenue relates to IRA fees received annually in advance on customer's IRA accounts managed by the Company and the retainer fees and fees earned from certain advisory transactions where the performance obligations have not yet been satisfied. Total deferred revenue was $1.2 million and $ nil at September 30, 2018 and January 1, 2018, respectively. The following presents the Company's contract assets and deferred revenue balances from contracts with customers, which are included in other assets and other liabilities, respectively, on the condensed consolidated balance sheet: (Expressed in thousands) Ending Balance at September 30, 2018 Opening Balance at January 1, 2018 Contract assets (receivables): Commission (1) $ 2,867 $ 2,007 Mutual fund income (2) 7,364 7,779 Advisory fees (3) 681 1,460 Bank deposit sweep income (4) 3,849 3,459 Investment banking fees (5) 5,601 3,926 Other 3,290 — Total contract assets $ 23,652 $ 18,631 Deferred revenue (payables): Investment banking fees $ 407 $ — IRA fees 762 — Total deferred revenue $ 1,169 $ — (1) Commission recorded on trade date but not yet settled. (2) Mutual fund income earned but not yet received. (3) Management and performance fees earned but not yet received. (4) Fees earned from FDIC-insured bank deposit program but not yet received. (5) Underwriting revenue and advisory fee earned but not yet received. Contract Costs The Company incurs incremental transaction-related costs to obtain and/or fulfill contracts associated with investment banking and advisory engagements where the revenue is recognized at a point in time and the costs are determined to be recoverable. As of September 30, 2018 , the contract costs were $1.5 million . There were no significant charges recognized in relation to these costs for the nine months ended September 30, 2018 . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per share Basic earnings per share is computed by dividing net income attributable to Oppenheimer Holdings Inc. by the weighted average number of shares of Class A non-voting common stock ("Class A Stock") and Class B voting common stock ("Class B Stock") outstanding. Diluted earnings per share includes the weighted average number of shares of Class A Stock and Class B Stock outstanding and options to purchase Class A Stock and unvested restricted stock awards of Class A Stock using the treasury stock method. Earnings per share have been calculated as follows: (Expressed in thousands, except number of shares and per share amounts) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Basic weighted average number of shares outstanding 13,269,024 13,213,139 13,252,596 13,290,399 Net dilutive effect of share-based awards, treasury method (1) 871,239 550,377 790,730 499,737 Diluted weighted average number of shares outstanding 14,140,263 13,763,516 14,043,326 13,790,136 Net income from continuing operations $ 5,061 $ 7,403 $ 20,609 $ 702 Net income from discontinued operations — 461 — 1,101 Net income 5,061 7,864 20,609 1,803 Less net income (loss) attributable to non-controlling interest, net of tax (10 ) 75 (22 ) 180 Net income attributable to Oppenheimer Holdings Inc. $ 5,071 $ 7,789 $ 20,631 $ 1,623 Basic net income per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.38 $ 0.56 $ 1.56 $ 0.05 Discontinued operations (2) — 0.03 — 0.07 Net income per share $ 0.38 $ 0.59 $ 1.56 $ 0.12 Diluted net income per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.36 $ 0.54 $ 1.47 $ 0.05 Discontinued operations (2) — 0.03 — 0.07 Net income per share $ 0.36 $ 0.57 $ 1.47 $ 0.12 (1) For both the three and nine months ended September 30, 2018 , the diluted net income per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements ( 15,450 shares for both the three and nine months ended September 30, 2017 ). (2) Represents net income from discontinued operations less net income attributable to non-controlling interest, net of tax divided by weighted average number of shares outstanding. |
Receivable From and Payable to
Receivable From and Payable to Brokers, Dealers and Clearing Organizations | 9 Months Ended |
Sep. 30, 2018 | |
Brokers and Dealers [Abstract] | |
Receivable From and Payable to Brokers, Dealers and Clearing Organizations | Receivable from and payable to brokers, dealers and clearing organizations (Expressed in thousands) As of September 30, 2018 December 31, 2017 Receivable from brokers, dealers and clearing organizations consists of: Securities borrowed $ 114,795 $ 132,368 Receivable from brokers 31,396 19,298 Securities failed to deliver 23,390 9,442 Clearing organizations 29,026 24,361 Other 6,424 1,646 Total $ 205,031 $ 187,115 Payable to brokers, dealers and clearing organizations consists of: Securities loaned $ 197,332 $ 180,270 Payable to brokers 2,004 1,567 Securities failed to receive 18,102 17,559 Other 2,005 12,087 Total $ 219,443 $ 211,483 |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements Securities owned, securities sold but not yet purchased, investments and derivative contracts are carried at fair value with changes in fair value recognized in earnings each period. Valuation Techniques A description of the valuation techniques applied and inputs used in measuring the fair value of the Company's financial instruments is as follows: U.S. Government Obligations U.S. Treasury securities are valued using quoted market prices obtained from active market makers and inter-dealer brokers. U.S. Agency Obligations U.S. agency securities consist of agency issued debt securities and mortgage pass-through securities. Non-callable agency issued debt securities are generally valued using quoted market prices. Callable agency issued debt securities are valued by benchmarking model-derived prices to quoted market prices and trade data for identical or comparable securities. The fair value of mortgage pass-through securities are model driven with respect to spreads of the comparable to-be-announced ("TBA") security. Sovereign Obligations The fair value of sovereign obligations is determined based on quoted market prices when available or a valuation model that generally utilizes interest rate yield curves and credit spreads as inputs. Corporate Debt and Other Obligations The fair value of corporate bonds is estimated using recent transactions, broker quotations and bond spread information. Mortgage and Other Asset-Backed Securities The Company values non-agency securities collateralized by home equity and various other types of collateral based on external pricing and spread data provided by independent pricing services. When specific external pricing is not observable, the valuation is based on yields and spreads for comparable bonds. Municipal Obligations The fair value of municipal obligations is estimated using recently executed transactions, broker quotations, and bond spread information. Convertible Bonds The fair value of convertible bonds is estimated using recently executed transactions and dollar-neutral price quotations, where observable. When observable price quotations are not available, fair value is determined based on cash flow models using yield curves and bond spreads as key inputs. Corporate Equities Equity securities and options are generally valued based on quoted prices from the exchange or market where traded. To the extent quoted prices are not available, fair values are generally derived using bid/ask spreads. Auction Rate Securities ("ARS") In February 2010, Oppenheimer finalized settlements with each of the New York Attorney General's office ("NYAG") and the Massachusetts Securities Division ("MSD" and, together with the NYAG, the "Regulators") concluding investigations and administrative proceedings by the Regulators concerning Oppenheimer's marketing and sale of ARS. Pursuant to the settlements with the Regulators, Oppenheimer agreed to extend offers to repurchase ARS from certain of its clients subject to certain terms and conditions more fully described below. As of September 30, 2018 , the Company had no outstanding ARS purchase commitments related to the settlements with the Regulators. In addition to the settlements with the Regulators, Oppenheimer has also reached settlements of and received adverse awards in legal proceedings with various clients where the Company is obligated to purchase ARS. Pursuant to completed Purchase Offers (as defined) under the settlements with the Regulators and client-related legal settlements and awards to purchase ARS, as of September 30, 2018 , the Company purchased and holds (net of redemptions) approximately $40.8 million in ARS from its clients. In addition, the Company is committed to purchase another $7.2 million in ARS from clients through 2020 under legal settlements and awards. The ARS positions that the Company owns and is committed to purchase primarily represent auction rate preferred securities issued by closed-end funds and, to a lesser extent, municipal auction rate securities that are municipal bonds wrapped by municipal bond insurance and student loan auction rate securities that are asset-backed securities backed by student loans. Interest rates on ARS typically reset through periodic auctions. Due to the auction mechanism and generally liquid markets, ARS have historically been classified as Level 1 of the fair value hierarchy. Beginning in February 2008, uncertainties in the credit markets resulted in substantially all of the ARS market experiencing failed auctions. Once the auctions failed, the ARS could no longer be valued using observable prices set in the auctions. The Company has used less observable determinants of the fair value of ARS, including the strength in the underlying credits, announced issuer redemptions, completed issuer redemptions, and announcements from issuers regarding their intentions with respect to their outstanding ARS. The Company has also developed an internal methodology to discount for the lack of liquidity and non-performance risk of the failed auctions. Due to liquidity problems associated with the ARS market, ARS that lack liquidity are setting their interest rates according to a maximum rate formula. For example, an auction rate preferred security maximum rate may be set at 200% of a short-term index such as LIBOR or U.S. Treasury yield. For fair value purposes, the Company has determined that the maximum spread would be an adequate risk premium to account for illiquidity in the market. Accordingly, the Company applies a spread to the short-term index for each asset class to derive the discount rate. The Company uses short-term U.S. Treasury yields as its benchmark short-term index. The risk of non-performance is typically reflected in the prices of ARS positions where the fair value is derived from recent trades in the secondary market. The ARS purchase commitment, or derivative asset or liability, arises from both the settlements with the Regulators and legal settlements and awards. The ARS purchase commitment represents the difference between the principal value and the fair value of the ARS the Company is committed to purchase. The Company utilizes the same valuation methodology for the ARS purchase commitment as it does for the ARS it owns. Additionally, the present value of the future principal value of ARS purchase commitments under legal settlements and awards is used in the discounted valuation model to reflect the time value of money over the period of time that the commitments are outstanding. The amount of the ARS purchase commitment only becomes determinable once the Company has met with its primary regulator and the NYAG and agreed upon a buyback amount, commenced the ARS buyback offer to clients, and received notice from its clients which ARS they are tendering. As a result, it is not possible to observe the current yields actually paid on the ARS until all of these events have happened which is typically very close to the time that the Company actually purchases the ARS. For ARS purchase commitments pursuant to legal settlements and awards, the criteria for purchasing ARS from clients is based on the nature of the settlement or award which will stipulate a time period and amount for each repurchase. The Company will not know which ARS will be tendered by the client until the stipulated time for repurchase is reached. Therefore, the Company uses the current yields of ARS owned in its discounted valuation model to determine a fair value of ARS purchase commitments. The Company also uses these current yields by asset class (i.e., auction rate preferred securities, municipal auction rate securities, and student loan auction rate securities) in its discounted valuation model to determine the fair value of ARS purchase commitments. In addition, the Company uses the discount rate and duration of ARS owned, by asset class, as a proxy for the duration of ARS purchase commitments. Additional information regarding the valuation technique and inputs for ARS used is as follows: (Expressed in thousands) Quantitative Information about ARS Level 3 Fair Value Measurements as of September 30, 2018 Product Principal Valuation Adjustment Fair Value Valuation Technique Unobservable Input Range Weighted Average Auction Rate Securities Owned (1) Auction Rate Preferred Securities $ 21,500 $ 406 $ 21,094 Discounted Cash Flow Discount Rate (2) 3.14% to 4.28% 4.26% Duration 2.5 Years 2.5 Years Current Yield (3) 2.38% to 3.46% 3.45% Auction Rate Preferred Securities 18,950 2,697 16,253 Tender Offer (4) N/A N/A N/A Municipal Auction Rate Securities 75 — 75 Par N/A N/A N/A Student Loan Auction Rate Securities 275 14 261 Discounted Cash Flow Discount Rate (5) 4.17% 4.17% Duration 5.5 Years 5.5 Years Current Yield (3) 3.09% 3.09% $ 40,800 $ 3,117 $ 37,683 Auction Rate Securities Commitments to Purchase (6) Auction Rate Preferred Securities $ 49 $ 1 $ 48 Discounted Cash Flow Discount Rate (2) 3.14% to 4.28% 4.26% Duration 2.5 Years 2.5 Years Current Yield (3) 2.38% to 3.46% 3.45% Auction Rate Preferred Securities 7,184 1,078 6,106 Tender Offer (4) N/A N/A N/A $ 7,233 $ 1,079 $ 6,154 Total $ 48,033 $ 4,196 $ 43,837 (1) Principal amount represents the par value of the ARS and is included in securities owned on the condensed consolidated balance sheet as of September 30, 2018 . The valuation adjustment amount is included as a reduction to securities owned on the condensed consolidated balance sheet as of September 30, 2018 . (2) Derived by applying a multiple to a spread between 110% to 150% to the U.S. Treasury rate of 2.85% . (3) Based on current yields for ARS positions owned. (4) Residual ARS amounts owned and ARS commitments to purchase that were subject to tender offers were priced at the tender offer price. Included in Level 2 of the fair value hierarchy. (5) Derived by applying the sum of the spread of 1.20% to the U.S. Treasury rate of 2.97% . (6) Principal amount represents the present value of the ARS par value that the Company is committed to purchase at a future date. This principal amount is presented as an off-balance sheet item. The valuation adjustment amount is included in accounts payable and other liabilities on the condensed consolidated balance sheet as of September 30, 2018 . The fair value of ARS and ARS purchase commitments is particularly sensitive to movements in interest rates. Increases in short-term interest rates would increase the discount rate input used in the ARS valuation and thus reduce the fair value of the ARS (increase the valuation adjustment). Conversely, decreases in short-term interest rates would decrease the discount rate and thus increase the fair value of ARS (decrease the valuation adjustment). However, an increase (decrease) in the discount rate input would be partially mitigated by an increase (decrease) in the current yield earned on the underlying ARS asset increasing the cash flows and thus the fair value. Furthermore, movements in short term interest rates would likely impact the ARS duration (i.e., sensitivity of the price to a change in interest rates), which would also have a mitigating effect on interest rate movements. For example, as interest rates increase, issuers of ARS have an incentive to redeem outstanding securities as servicing the interest payments gets prohibitively expensive which would lower the duration assumption thereby increasing the ARS fair value. Alternatively, ARS issuers are less likely to redeem ARS in a lower interest rate environment as it is a relatively inexpensive source of financing which would increase the duration assumption thereby decreasing the ARS fair value. For example, see the following sensitivities: • The impact of a 25 basis point increase in the discount rate at September 30, 2018 would result in a decrease in the fair value of $126,000 (does not consider a corresponding reduction in duration as discussed above). • The impact of a 50 basis point increase in the discount rate at September 30, 2018 would result in a decrease in the fair value of $251,000 (does not consider a corresponding reduction in duration as discussed above). These sensitivities are hypothetical and are based on scenarios where they are "stressed" and should be used with caution. These estimates do not include all of the interplay among assumptions and are estimated as a portfolio rather than as individual assets. Due to the less observable nature of these inputs, ARS are primarily categorized in Level 3 of the fair value hierarchy. As of September 30, 2018 , the Company had a valuation adjustment (unrealized loss) of $3.1 million for ARS owned which is included as a reduction to securities owned on the condensed consolidated balance sheet. As of September 30, 2018 , the Company also had a valuation adjustment of $1.1 million on ARS purchase commitments from legal settlements and awards which is included in accounts payable and other liabilities on the condensed consolidated balance sheet. The total valuation adjustment was $4.2 million as of September 30, 2018 . The valuation adjustment represents the difference between the principal value and the fair value of the ARS owned and ARS purchase commitments. During the three months ended September 30, 2018 , the Company participated in tender offers by issuers of ARS which resulted in recognized losses totaling $8.1 million . The recognized losses are comprised of realized losses of $4.6 million related to tendering ARS holdings at prices below par and unrealized losses of $3.5 million related to revaluing the remaining affected ARS owned and commitments to purchase at the tender offer prices. Investments In its role as general partner in certain hedge funds and private equity funds, the Company, through its subsidiaries, holds direct investments in such funds. The Company uses the net asset value of the underlying fund as a basis for estimating the fair value of its investment. The following table provides information about the Company's investments in Company-sponsored funds as of September 30, 2018 : (Expressed in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Hedge funds (1) $ 1,631 $ — Annually 30 - 120 Days Private equity funds (2) 4,974 1,400 N/A N/A $ 6,605 $ 1,400 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. Each hedge fund has various restrictions regarding redemption; no investment is locked-up for a period greater than one year. (2) Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources. Due to the illiquid nature of these funds, investors are not permitted to make withdrawals without the consent of the general partner. The lock-up period of the private equity funds can extend to 10 years. Valuation Process The Company's Finance & Accounting ("F&A") group is responsible for the Company's fair value policies, processes and procedures. F&A is independent from the business units and trading desks and is headed by the Company's Chief Financial Officer ("CFO"), who has final authority over the valuation of the Company's financial instruments. The Finance Control Group ("FCG") within F&A is responsible for daily profit and loss reporting, front-end trading system position reconciliations, monthly profit and loss reporting, and independent price verification procedures. For financial instruments categorized in Levels 1 and 2 of the fair value hierarchy, the FCG performs a monthly independent price verification to determine the reasonableness of the prices provided by the Company's independent pricing vendor. The FCG uses its third-party pricing vendor, executed transactions, and broker-dealer quotes for validating the fair values of financial instruments. For financial instruments categorized in Level 3 of the fair value hierarchy measured on a recurring basis, primarily for ARS, a group comprised of the CFO, the Controller, and an Operations Director are responsible for the ARS valuation model and resulting fair valuations. Procedures performed include aggregating all ARS owned by type from firm inventory accounts and ARS purchase commitments from regulatory and legal settlements and awards provided by the Legal Department. Observable and unobservable inputs are aggregated from various sources and entered into the ARS valuation model. For unobservable inputs, the group reviews the appropriateness of the inputs to ensure consistency with how a market participant would arrive at the unobservable input. For example, for the duration assumption, the group would consider recent policy statements regarding short-term interest rates by the Federal Reserve and recent ARS issuer redemptions and announcements for future redemptions. The model output is reviewed for reasonableness and consistency. Where available, comparisons are performed between ARS owned or committed to purchase with ARS that are trading in the secondary market. Assets and Liabilities Measured at Fair Value The Company's assets and liabilities, recorded at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 , have been categorized based upon the above fair value hierarchy as follows: Assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 (Expressed in thousands) Fair Value Measurements as of September 30, 2018 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,500 $ — $ — $ 10,500 Deposits with clearing organizations 31,291 — — 31,291 Securities owned: U.S. Treasury securities 701,261 — — 701,261 U.S. Agency securities 14,688 7,425 — 22,113 Sovereign obligations — 2,964 — 2,964 Corporate debt and other obligations — 14,400 — 14,400 Mortgage and other asset-backed securities — 2,777 — 2,777 Municipal obligations — 45,427 — 45,427 Convertible bonds — 34,013 — 34,013 Corporate equities 34,613 — — 34,613 Auction rate securities — 16,253 21,430 37,683 Securities owned, at fair value 750,562 123,259 21,430 895,251 Investments (1) — — 104 104 Derivative contracts: TBAs — 12,309 — 12,309 Total $ 792,353 $ 135,568 $ 21,534 $ 949,455 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 107,031 $ — $ — $ 107,031 U.S. Agency securities — 2 — 2 Corporate debt and other obligations — 4,061 — 4,061 Mortgage and other asset-backed securities — 2,349 — 2,349 Convertible bonds — 7,356 — 7,356 Corporate equities 22,947 — — 22,947 Securities sold but not yet purchased, at fair value 129,978 13,768 — 143,746 Derivative contracts: Futures 709 — — 709 Foreign exchange forward contracts 2 — — 2 TBAs — 12,258 — 12,258 ARS purchase commitments — 1,078 1 1,079 Derivative contracts, total 711 13,336 1 14,048 Total $ 130,689 $ 27,104 $ 1 $ 157,794 (1) Included in other assets on the condensed consolidated balance sheet. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 (Expressed in thousands) Fair Value Measurements as of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,490 $ — $ — $ 10,490 Deposits with clearing organizations 34,293 — — 34,293 Securities owned: U.S. Treasury securities 640,337 — — 640,337 U.S. Agency securities 3,011 6,894 — 9,905 Sovereign obligations — 608 — 608 Corporate debt and other obligations — 12,538 — 12,538 Mortgage and other asset-backed securities — 4,037 — 4,037 Municipal obligations — 89,618 35 89,653 Convertible bonds — 23,216 — 23,216 Corporate equities 34,067 — — 34,067 Money markets 383 — — 383 Auction rate securities — 24,455 87,398 111,853 Securities owned, at fair value 677,798 161,366 87,433 926,597 Investments (1) — — 169 169 Derivative contracts: TBAs — 716 — 716 Total $ 722,581 $ 162,082 $ 87,602 $ 972,265 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 53,425 $ — $ — $ 53,425 U.S. Agency securities — 13 — 13 Sovereign obligations — 1,179 — 1,179 Corporate debt and other obligations — 4,357 — 4,357 Mortgage and other asset-backed securities — 10 — 10 Convertible bonds — 10,109 — 10,109 Corporate equities 25,393 — — 25,393 Securities sold but not yet purchased, at fair value 78,818 15,668 — 94,486 Derivative contracts: Futures 766 — — 766 TBAs — 614 — 614 ARS purchase commitments — — 8 8 Derivative contracts, total 766 614 8 1,388 Total $ 79,584 $ 16,282 $ 8 $ 95,874 (1) Included in other assets on the condensed consolidated balance sheet. The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2018 and 2017 : (Expressed in thousands) Level 3 Assets and Liabilities For the Three Months Ended September 30, 2018 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Auction rate securities (1)(5) $ 72,621 $ (2,163 ) $ 2,150 $ (34,925 ) $ (16,253 ) $ 21,430 Investments 164 — — — (60 ) 104 Liabilities ARS purchase commitments (2)(5) 131 (948 ) — — 1,078 1 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of income, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of income. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. (5) Represents transfers from Level 3 to Level 2 of the fair value hierarchy. Transfers were due to tender offers by issuers of ARS. (Expressed in thousands) Level 3 Assets and Liabilities For the Three Months Ended September 30, 2017 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 36 $ (1 ) $ — $ — $ — $ 35 Auction rate securities (1) 107,170 (161 ) 25 (250 ) — 106,784 Investments 168 (1 ) — — — 167 ARS purchase commitments (2) — — — — — — Liabilities ARS purchase commitments (2) 254 (22 ) — — — 276 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of income, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of income. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2018 and 2017 : (Expressed in thousands) Level 3 Assets and Liabilities For the Nine Months Ended September 30, 2018 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 35 $ 14 $ 76 $ (125 ) $ — $ — Auction rate securities (1)(5) 87,398 (2,218 ) 6,250 (36,145 ) (33,855 ) 21,430 Investments 169 (5 ) — — (60 ) 104 Liabilities ARS purchase commitments (2)(5) 8 (1,162 ) — — 1,169 1 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of income, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of income. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. (5) Represents transfers from Level 3 to Level 2 of the fair value hierarchy. Transfers were due to tender offers by issuers of ARS. (Expressed in thousands) Level 3 Assets and Liabilities For the Nine Months Ended September 30, 2017 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 44 $ (9 ) $ — $ — $ — $ 35 Auction rate securities (1) 84,926 983 22,075 (1,200 ) — 106,784 Investments 158 9 — — — 167 ARS purchase commitments (2) 849 (849 ) — — — — Liabilities ARS purchase commitments (2) 645 369 — — — 276 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of income, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of income. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. Financial Instruments Not Measured at Fair Value The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the condensed consolidated balance sheets. The table below excludes non-financial assets and liabilities (e.g., furniture, equipment and leasehold improvements and accrued compensation). The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 or Level 2 (e.g., cash and receivables from customers) approximates fair value because of the relatively short term nature of the underlying assets. The fair value of the Company's senior secured notes, categorized in Level 2 of the fair value hierarchy, is based on quoted prices from the market in which the notes trade. Assets and liabilities not measured at fair value as of September 30, 2018 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 27,031 $ 27,031 $ — $ — $ 27,031 Deposits with clearing organization 22,665 22,665 — — 22,665 Receivable from brokers, dealers and clearing organizations: Securities borrowed 114,795 — 114,795 — 114,795 Receivables from brokers 31,396 — 31,396 — 31,396 Securities failed to deliver 23,390 — 23,390 — 23,390 Clearing organizations 29,026 — 29,026 — 29,026 Other 5,183 — 5,183 — 5,183 203,790 — 203,790 — 203,790 Receivable from customers 797,751 — 797,751 — 797,751 Securities purchased under agreements to resell 1,502 — 1,502 — 1,502 Notes receivable, net 43,278 — 43,278 — 43,278 Investments (1) 68,585 — 68,585 — 68,585 (1) Included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 29,242 $ 29,242 $ — $ — $ 29,242 Bank call loans 3,000 — 3,000 — 3,000 Payables to brokers, dealers and clearing organizations: Securities loaned 197,332 — 197,332 — 197,332 Payable to brokers 2,004 — 2,004 — 2,004 Securities failed to receive 18,102 — 18,102 — 18,102 Other 106 — 106 — 106 217,544 — 217,544 — 217,544 Payables to customers 351,750 — 351,750 — 351,750 Securities sold under agreements to repurchase 606,010 — 606,010 — 606,010 Senior secured notes 200,000 — 202,938 — 202,938 Assets and liabilities not measured at fair value as of December 31, 2017 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 37,664 $ 37,664 $ — $ — $ 37,664 Deposits with clearing organization 7,929 7,929 — — 7,929 Receivable from brokers, dealers and clearing organizations: Securities borrowed 132,368 — 132,368 — 132,368 Receivables from brokers 19,298 — 19,298 — 19,298 Securities failed to deliver 9,442 — 9,442 — 9,442 Clearing organizations 24,361 — 24,361 — 24,361 Other 930 — 930 — 930 186,399 — 186,399 — 186,399 Receivable from customers 848,226 — 848,226 — 848,226 Securities purchased under agreements to resell 658 — 658 — 658 Notes receivable, net 40,520 — 40,520 — 40,520 Investments (1) 65,404 — 65,404 — 65,404 (1) Included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 42,212 $ 42,212 $ — $ — $ 42,212 Bank call loans 118,300 — 118,300 — 118,300 Payables to brokers, dealers and clearing organizations: Securities loaned 180,270 — 180,270 — 180,270 Payable to brokers 1,567 — 1,567 — 1,567 Securities failed to receive 17,559 — 17,559 — 17,559 Other 10,707 — 10,707 — 10,707 210,103 — 210,103 — 210,103 Payables to customers 385,907 — 385,907 — 385,907 Securities sold under agreements to repurchase 586,478 — 586,478 — 586,478 Senior secured notes 200,000 — 206,380 — 206,380 Fair Value Option The Company elected the fair value option for securities sold under agreements to repurchase ("repurchase agreements") and securities purchased under agreements to resell ("reverse repurchase agreements") that do not settle overnight or have an open settlement date. The Company has elected the fair value option for these instruments to reflect more accurately market and economic events in its earnings and to mitigate a potential mismatch in earnings caused by using different measurement attributes (i.e. fair value versus carrying value) for certain assets and liabilities. As of September 30, 2018 , the Company did not have any repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date. Derivative Instruments and Hedging Activities The Company transacts, on a limited basis, in exchange traded and over-the-counter derivatives for both asset and liability management as well as for trading and investment purposes. Risks managed using derivative instruments include interest rate risk and, to a lesser extent, foreign exchange risk. All derivative instruments are measured at fair value and are recognized as either assets or liabilities on the condensed consolidated balance sheet. Foreign exchange hedges From time to time, the Company also utilizes forward and options contracts to hedge the foreign currency risk associated with compensation obligations to Oppenheimer Israel (OPCO) Ltd. employees denominated in New Israeli Shekel ("NIS"). Such hedges have not been designated as accounting hedges. Unrealized gains and losses on foreign exchange forward contracts are recorded in other assets on the condensed consolidated balance sheet and other income in the condensed consolidated statement of income. Derivatives used for trading and investment purposes Futures contracts represent commitments to purchase or sell securities or other commodities at a future date and at a specified price. Market risk exists with respect to these instruments. Notional or contractual amounts are used to express the volume of these transactions and do not represent the amounts potentially subject to market risk. The Company uses futures contracts, including U.S. Treasury notes, Federal Funds, General Collateral futures and Eurodollar contracts primarily as an economic hedge of interest rate risk associated with government trading activities. Unrealized gains and losses on futures contracts are recorded on the condensed consolidated balance sheet in payable to brokers, dealers and clearing organizations and in the condensed consolidated statement of income as principal transactions revenue, net. To-be-announced securities The Company also transacts in pass-through mortgage-backed securities eligible to be sold in the TBA market as economic hedges against mortgage-backed securities that it owns or has sold but not yet purchased. TBAs provide for the forward or delayed delivery of the underlying instrument with settlement up to 180 days. The contractual or notional amounts related to these financial instruments reflect the volume of activity and do not reflect the amounts at risk. Net unrealized gains and losses on TBAs are recorded on t |
Collateralized Transactions
Collateralized Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Brokers and Dealers [Abstract] | |
Collateralized Transactions | Collateralized transactions The Company enters into collateralized borrowing and lending transactions in order to meet customers' needs and earn interest rate spreads, obtain securities for settlement and finance trading inventory positions. Under these transactions, the Company either receives or provides collateral, including U.S. Government and Agency, asset-backed, corporate debt, equity, and non-U.S. Government and Agency securities. The Company obtains short-term borrowings primarily through bank call loans. Bank call loans are generally payable on demand and bear interest at various rates but not exceeding the broker call rate. As of September 30, 2018 , bank call loans were $3.0 million ( $118.3 million as of December 31, 2017 ). As of September 30, 2018 , such loans were collateralized by firm and/or customer securities with market values of approximately $3.3 million and $311.8 million , respectively, with commercial banks. As of September 30, 2018 , the Company had approximately $1.1 billion of customer securities under customer margin loans that are available to be pledged, of which the Company has re-pledged approximately $169.9 million under securities loan agreements. As of September 30, 2018 , the Company had pledged $287.0 million of customer securities directly with the Options Clearing Corporation to secure obligations and margin requirements under option contracts written by customers. As of September 30, 2018 , the Company had no outstanding letters of credit. The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers' needs and to finance the Company's inventory positions. Except as described below, repurchase and reverse repurchase agreements, principally involving U.S. Government and Agency securities, are carried at amounts at which the securities subsequently will be resold or reacquired as specified in the respective agreements and include accrued interest. Repurchase agreements and reverse repurchase agreements are presented on a net-by-counterparty basis, when the repurchase agreements and reverse repurchase agreements are executed with the same counterparty, have the same explicit settlement date, are executed in accordance with a master netting arrangement, the securities underlying the repurchase agreements and reverse repurchase agreements exist in "book entry" form and certain other requirements are met. The following table presents a disaggregation of the gross obligation by the class of collateral pledged and the remaining contractual maturity of the repurchase agreements and securities loaned transactions as of September 30, 2018 : (Expressed in thousands) Overnight and Open Repurchase agreements: U.S. Government and Agency securities $ 705,491 Securities loaned: Equity securities 197,332 Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 902,823 The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of September 30, 2018 and December 31, 2017 : As of September 30, 2018 (Expressed in thousands) Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset on the Balance Sheet Net Amounts of Assets Presented on the Balance Sheet Financial Instruments Cash Collateral Received Net Amount Reverse repurchase agreements $ 100,983 $ (99,481 ) $ 1,502 $ (1,495 ) $ — $ 7 Securities borrowed (1) 114,795 — 114,795 (110,123 ) — 4,672 Total $ 215,778 $ (99,481 ) $ 116,297 $ (111,618 ) $ — $ 4,679 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amounts of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount Repurchase agreements $ 705,491 $ (99,481 ) $ 606,010 $ (603,961 ) $ — $ 2,049 Securities loaned (2) 197,332 — 197,332 (189,961 ) — 7,371 Total $ 902,823 $ (99,481 ) $ 803,342 $ (793,922 ) $ — $ 9,420 (2) Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. As of December 31, 2017 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 200,712 $ (200,054 ) $ 658 $ — $ — $ 658 Securities borrowed (1) 132,368 — 132,368 (128,575 ) — 3,793 Total $ 333,080 $ (200,054 ) $ 133,026 $ (128,575 ) $ — $ 4,451 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amounts of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount Repurchase agreements $ 786,532 $ (200,054 ) $ 586,478 $ (585,289 ) $ — $ 1,189 Securities loaned (2) 180,270 — 180,270 (170,176 ) — 10,094 Total $ 966,802 $ (200,054 ) $ 766,748 $ (755,465 ) $ — $ 11,283 (2) Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Certain of the Company's repurchase agreements and reverse repurchase agreements are carried at fair value as a result of the Company's fair value option election. The Company elected the fair value option for those repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date. As of September 30, 2018 , the Company did not have any repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date. The Company receives collateral in connection with securities borrowed and reverse repurchase agreement transactions and customer margin loans. Under many agreements, the Company is permitted to sell or re-pledge the securities received (e.g., use the securities to enter into securities lending transactions, or deliver to counterparties to cover short positions). As of September 30, 2018 , the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $110.7 million ( $127.2 million as of December 31, 2017 ) and $100.6 million ( $221.6 million as of December 31, 2017 ), respectively, of which the Company has sold and re-pledged approximately $18.1 million ( $30.9 million as of December 31, 2017 ) under securities loaned transactions and $100.6 million under repurchase agreements ( $221.6 million as of December 31, 2017 ). The Company pledges certain of its securities owned for securities lending and repurchase agreements and to collateralize bank call loan transactions. The carrying value of pledged securities owned that can be sold or re-pledged by the counterparty was $738.8 million , as presented on the face of the condensed consolidated balance sheet as of September 30, 2018 ( $655.7 million as of December 31, 2017 ). The carrying value of securities owned by the Company that have been loaned or pledged to counterparties where those counterparties do not have the right to sell or re-pledge the collateral was $3.3 million as of September 30, 2018 ( $97.2 million as of December 31, 2017 ). The Company manages credit exposure arising from repurchase and reverse repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Company, in the event of a customer default, the right to liquidate securities and the right to offset a counterparty's rights and obligations. The Company manages market risk of repurchase agreements and securities loaned by monitoring the market value of collateral held and the market value of securities receivable from others. It is the Company's policy to request and obtain additional collateral when exposure to loss exists. In the event the counterparty is unable to meet its contractual obligation to return the securities, the Company may be exposed to off-balance sheet risk of acquiring securities at prevailing market prices. Credit Concentrations Credit concentrations may arise from trading, investing, underwriting and financing activities and may be impacted by changes in economic, industry or political factors. In the normal course of business, the Company may be exposed to credit risk in the event customers, counterparties including other brokers and dealers, issuers, banks, depositories or clearing organizations are unable to fulfill their contractual obligations. The Company seeks to mitigate these risks by actively monitoring exposures and obtaining collateral as deemed appropriate. Included in receivable from brokers, dealers and clearing organizations as of September 30, 2018 are receivables from five major U.S. broker-dealers totaling approximately $84.3 million . The Company is obligated to settle transactions with brokers and other financial institutions even if its clients fail to meet their obligations to the Company. Clients are required to complete their transactions on the settlement date, generally one to two business days after the trade date. If clients do not fulfill their contractual obligations, the Company may incur losses. The Company has clearing/participating arrangements with the National Securities Clearing Corporation, the Fixed Income Clearing Corporation ("FICC"), R.J. O'Brien & Associates (commodities transactions), Mortgage-Backed Securities Division (a division of FICC) and others. With respect to its business in reverse repurchase and repurchase agreements, substantially all open contracts as of September 30, 2018 are with the FICC . In addition, the Company clears its non-U.S. international equities business carried on by Oppenheimer Europe Ltd. through Global Prime Partners, Ltd. The clearing organizations have the right to charge the Company for losses that result from a client's failure to fulfill its contractual obligations. Accordingly, the Company has credit exposures with these clearing brokers. The clearing brokers can re-hypothecate the securities held on behalf of the Company. As the right to charge the Company has no maximum amount and applies to all trades executed through the clearing brokers, the Company believes there is no maximum amount assignable to this right. As of September 30, 2018 , the Company had recorded no liabilities with regard to this right. The Company's policy is to monitor the credit standing of the clearing brokers and banks with which it conducts business. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entities | Variable interest entities ("VIEs") The Company's policy is to consolidate all subsidiaries in which it has a controlling financial interest, as well as any VIEs where the Company is deemed to be the primary beneficiary, when it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE. For funds that the Company has concluded are not VIEs, the Company then evaluates whether the fund is a partnership or similar entity. If the fund is a partnership or similar entity, the Company evaluates the fund under the partnership consolidation guidance. Pursuant to that guidance, the Company consolidates funds in which it is the general partner, unless presumption of control by the Company can be overcome. This presumption is overcome only when unrelated investors in the fund have the substantive ability to liquidate the fund or otherwise remove the Company as the general partner without cause, based on a simple majority vote of unaffiliated investors, or have other substantive participating rights. If the presumption of control can be overcome, the Company accounts for its interest in the fund pursuant to the equity method of accounting. The Company serves as general partner of hedge funds and private equity funds that were established for the purpose of providing investment alternatives to both its institutional and qualified retail clients. The Company holds variable interests in these funds as a result of its right to receive management and incentive fees. The Company's investment in and additional capital commitments to these hedge funds and private equity funds are also considered variable interests. The Company's additional capital commitments are subject to call at a later date and are limited to the amount committed. The Company assesses whether it is the primary beneficiary of the hedge funds and private equity funds in which it holds a variable interest in the form of general and limited partner interests. In each instance, the Company has determined that it is not the primary beneficiary and therefore need not consolidate the hedge funds or private equity funds. The subsidiaries' general and limited partnership interests, additional capital commitments, and management fees receivable represent its maximum exposure to loss. The subsidiaries' general partnership and limited partnership interests and management fees receivable are included in other assets on the condensed consolidated balance sheet. The following tables set forth the total VIE assets, the carrying value of the subsidiaries' variable interests, and the Company's maximum exposure to loss in Company-sponsored non-consolidated VIEs in which the Company holds variable interests and other non-consolidated VIEs in which the Company holds variable interests as of September 30, 2018 and December 31, 2017 : (Expressed in thousands) As of September 30, 2018 Total VIE Assets (1) Carrying Value of the Capital Commitments Maximum Exposure to Loss in Non-consolidated VIEs Assets (2) Liabilities Hedge funds $ 336,209 $ 342 $ — $ — $ 342 Private equity funds 9,174 12 — 1 13 Total $ 345,383 $ 354 $ — $ 1 $ 355 (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (2) Represents the Company's interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) As of December 31, 2017 Total (1) Carrying Value of the Capital Maximum Assets (2) Liabilities Hedge funds $ 328,172 $ 713 $ — $ — $ 713 Private equity funds 15,668 12 — 2 14 Total $ 343,840 $ 725 $ — $ 2 $ 727 (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (2) Represents the Company's interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt (Expressed in thousands) Issued Maturity Date September 30, 2018 December 31, 2017 6.75% Senior Secured Notes 7/1/2022 $ 200,000 $ 200,000 Unamortized Debt Issuance Cost (969 ) (1,163 ) $ 199,031 $ 198,837 6.75% Senior Secured Notes On June 23, 2017 , the Parent issued in a private offering $200.0 million aggregate principal amount of 6.75% Senior Secured Notes due 2022 (the "Unregistered Notes") under an indenture at an issue price of 100% of the principal amount. On September 19, 2017, the Parent completed an exchange offer in which the Parent exchanged 99.8% of its Unregistered Notes for a like principal amount of notes with identical terms except that such new notes have been registered under the Securities Act of 1933, as amended (the "Notes"). The Parent did not receive any proceeds in the exchange offer. Interest on the Notes is payable semi-annually on January 1st and July 1st, beginning January 1, 2018. On June 23, 2017, the Parent used a portion of the net proceeds from the offering of the Unregistered Notes to redeem in full its 8.75% Senior Secured Notes due April 15, 2018 (the "Old Notes") in the principal amount of $120.0 million , and pay all related fees and expenses related thereto. The cost to issue the Notes was $4.3 million , of which $3.0 million was paid to its subsidiary, Oppenheimer, who served as the initial purchaser of the offering, and was eliminated in consolidation. The Company capitalized the remaining $1.3 million and will amortize it over the term of the Notes. The indenture governing the Notes contains covenants that place restrictions on the incurrence of indebtedness, the payment of dividends, the repurchase of equity, the sale of assets, mergers and acquisitions and the granting of liens. Pursuant to the indenture governing the Notes, the Parent is restricted from paying any dividend or making any payment or distribution on account of its equity interests unless, among other things, (i) the dividend, payment or distribution (together with all other such dividends, payments or distributions made since July 1, 2017) is less than an amount calculated based in part on the Consolidated Adjusted Net Income (as defined in the indenture governing the Notes) of the Parent and its restricted and regulated subsidiaries since July 1, 2017, or (ii) the dividend, payment or distribution fits within one or more exceptions, including: • it is less than $20 million in any fiscal year; or • when combined with all other Restricted Payments (as defined in the indenture governing the Notes) that rely upon this exception, it does not exceed $10 million . The Notes provide for events of default including, among other things, nonpayment, breach of covenants and bankruptcy. The Parent's obligations under the Notes are guaranteed by certain of the Parent's subsidiaries and are secured by a first-priority security interest in substantially all of the assets of the Parent and the subsidiary's guarantors. These guarantees and the collateral may be shared, on a pari passu basis, under certain circumstances, with debt incurred. As of September 30, 2018 , the Parent was in compliance with all of its covenants. Interest expense for the three and nine months ended September 30, 2018 on the Notes was $3.4 million and $10.1 million , respectively ( $3.4 million and $3.7 million for the three and nine months ended September 30, 2017 , respectively). 8.75% Senior Secured Notes On April 12, 2011 , the Parent issued in a private offering $200.0 million in aggregate principal amount of Old Notes at an issue price of 100% of the principal amount. Interest on the Old Notes was payable semi-annually on April 15 th and October 15 th . On April 15, 2014 , the Parent retired early $50.0 million of the Old Notes. The indenture for the Old Notes contained covenants, with which the Company was in compliance during 2017. On April 15, 2017 , the Parent used the net proceeds from the asset sales of OMHHF to finance the redemption of $30.0 million aggregate principal amount of the Old Notes at a redemption price equal to 100% of the principal, plus accrued and unpaid interest. On June 23, 2017, the Parent used a portion of the net proceeds from the offering of the Notes to redeem in full its Old Notes in the principal amount of $120.0 million and to satisfy and discharge all of its obligations under the indenture governing the Old Notes (the "8.75% Notes Indenture"). In connection with the satisfaction and discharge of the 8.75% Notes Indenture, all of the obligations of the Parent and the subsidiary guarantors (other than certain customary provisions of the 8.75% Notes Indenture, including those relating to the compensation and indemnification of the trustee that expressly survive pursuant to the terms of the 8.75% Notes Indenture) were discharged and the guarantees of the subsidiary guarantors and the liens on the collateral securing the Old Notes were released on June 23, 2017. Interest expense for the three and nine months ended September 30, 2017 on the Old Notes was $ nil and $6.7 million , respectively. |
Share Capital
Share Capital | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Share Capital | Share capital The Company's authorized share capital consists of (a) 50,000,000 shares of Preferred Stock, par value $0.001 per share; (b) 50,000,000 shares of Class A Stock, par value $0.001 per share; and (c) 99,665 shares of Class B Stock, par value $0.001 per share. No Preferred Stock has been issued. 99,665 shares of Class B Stock have been issued and are outstanding. The Class A Stock and the Class B Stock are equal in all respects except that the Class A Stock is non-voting. The following table reflects changes in the number of shares of Class A Stock outstanding for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Class A Stock outstanding, beginning of period 13,156,353 13,132,775 13,139,203 13,261,095 Issued pursuant to share-based compensation plans 21,578 19,883 38,728 198,903 Repurchased and canceled pursuant to the stock buy-back — (143,010 ) — (450,350 ) Class A Stock outstanding, end of period 13,177,931 13,009,648 13,177,931 13,009,648 Stock buy-back On May 5, 2017, the Company announced that its board of directors approved a share repurchase program that authorizes the Company to purchase up to 650,000 shares of the Company's Class A Stock, representing approximately 5% of its 13,178,571 then issued and outstanding shares of Class A Stock. This authorization supplemented the 40,734 shares that remained authorized and available under the Company's previous share repurchase program covering up to 665,000 shares of the Company's Class A Stock, which was announced on September 15, 2015, for a total of 690,734 shares authorized and available for repurchase. During the three and nine months ended September 30, 2018 , the Company did not purchase any shares of Class A Stock under this program. As of September 30, 2018 , 508,906 shares remained available to be purchased under this program. Any such share purchases will be made by the Company from time to time in the open market at the prevailing open market price using cash on hand, in compliance with the applicable rules and regulations of the New York Stock Exchange and federal and state securities laws and the terms of the Company's senior secured debt. The Company will cancel all of the shares repurchased. The Company expects to continue the share repurchase program indefinitely. The Company will base the timing and amounts of any purchases on market conditions and other factors including price, regulatory requirements and capital availability. The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares of Class A Stock. Depending on market conditions and other factors, the Company may commence or suspend repurchases from time to time without notice. |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes On December 22, 2017, the Federal government enacted Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act ("TCJA"). The TCJA makes broad and complex changes to the U.S. tax code, including, but not limited to: (1) reducing the U.S. Federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) a new provision designed to tax global intangible low-taxed income ("GILTI"), which allows for the possibility of using foreign tax credits ("FTCs") and a deduction of up to 50 percent to offset the income tax liability (subject to some limitations); (5) limitations on the use of FTCs to reduce the U.S. income tax liability; (6) eliminating the corporate alternative minimum tax ("AMT") and changing how existing AMT credits can be realized; (7) creating the base erosion anti-abuse tax, a new minimum tax; (8) limitations on the deductibility of certain executive compensation; (9) creating a new limitation on deductible interest expense; (10) eliminating the deductibility of entertainment expenses; and (11) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. On December 22, 2017, the SEC staff issued SAB 118 which provides guidance on accounting for the tax effects of the TCJA. SAB 118 provides a measurement period that should not extend beyond one year from the TCJA enactment date for companies to complete the accounting under ASC 740. The Company has not completed its accounting for the income tax effects of certain elements of the TCJA. However, the Company was able to make reasonable estimates of the effects of certain elements and recorded a provisional estimate in the condensed consolidated financial statements. The estimated enactment net discrete after-tax benefit incorporates assumptions made based upon the Company's current interpretations of the TCJA, and may change as it receives additional clarification and implementation guidance and as the interpretation of the TCJA evolves over time. The Company is expected to complete its analysis within the measurement period in accordance with SAB 118. The effective income tax rate from continuing operations for the three months ended September 30, 2018 was 29.2% compared with 37.4% for the three months ended September 30, 2017 and reflects the Company's estimate of the annual effective tax rate adjusted for certain discrete items. The lower estimated effective tax rate for the three months ended September 30, 2018 is due to the Federal tax rate of 21% (versus 35%) as a result of the passage of the TCJA in December 2017 offset by foreign income inclusion and larger non-deductible expenses related to items such as entertainment, fringe benefits, regulatory fines and penalties, and limitations around the deductibility of executive compensation under the TCJA. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Loss Contingencies [Line Items] | |
Commitments and Contingencies Disclosure [Text Block] | Contingencies Many aspects of the Company's business involve substantial risks of liability. In the normal course of business, the Company has been named as defendant or co-defendant in various legal actions, including arbitrations, class actions and other litigation, creating substantial exposure and periodic expenses. Certain of the actual or threatened legal matters include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. These proceedings arise primarily from securities brokerage, asset management and investment banking activities. The Company is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding the Company's business, which may result in expenses, adverse judgments, settlements, fines, penalties, injunctions or other relief. The investigations include inquiries from the Securities and Exchange Commission (the "SEC"), the Financial Industry Regulatory Authority ("FINRA") and various state regulators. The Company accrues for estimated loss contingencies related to legal and regulatory matters when available information indicates that it is probable a liability had been incurred and the Company can reasonably estimate the amount of that loss. In many proceedings, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount of any loss. In addition, even where a loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is often not possible to reasonably estimate the size of the possible loss or range of loss or possible additional losses or range of additional losses. For certain legal and regulatory proceedings, the Company cannot reasonably estimate such losses, particularly for proceedings that are in their early stages of development or where plaintiffs seek substantial, indeterminate or special damages. Counsel may be required to review, analyze and resolve numerous issues, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the proceedings in question, before the Company can reasonably estimate a loss or range of loss or additional loss for the proceeding. Even after lengthy review and analysis, the Company, in many legal and regulatory proceedings, may not be able to reasonably estimate possible losses or range of loss. For certain other legal and regulatory proceedings, the Company can estimate possible losses, or range of loss in excess of amounts accrued, but does not believe, based on current knowledge and after consultation with counsel, that such losses individually, or in the aggregate, will have a material adverse effect on the Company's condensed consolidated financial statements as a whole. For legal and regulatory proceedings where there is at least a reasonable possibility that a loss or an additional loss may be incurred, the Company estimates a range of aggregate loss in excess of amounts accrued of $0 to $30.0 million . This estimated aggregate range is based upon currently available information for those legal proceedings in which the Company is involved, where the Company can make an estimate for such losses. For certain cases, the Company does not believe that it can make an estimate. The foregoing aggregate estimate is based on various factors, including the varying stages of the proceedings (including the fact that many are currently in preliminary stages), the numerous yet-unresolved issues in many of the proceedings and the attendant uncertainty of the various potential outcomes of such proceedings. Accordingly, the Company's estimate will change from time to time, and actual losses may be more than the current estimate. In February 2010, Oppenheimer finalized settlements with the Regulators concluding investigations and administrative proceedings by the Regulators concerning Oppenheimer's marketing and sale of ARS. Pursuant to the settlements with the Regulators, Oppenheimer agreed to extend offers to repurchase ARS from certain of its clients subject to certain terms and conditions more fully described below. As of September 30, 2018 , the Company had no outstanding ARS purchase commitments related to the settlements with the Regulators. In addition to the settlements with the Regulators, Oppenheimer has also reached settlements of and received adverse awards in legal proceedings with various clients where the Company is obligated to purchase ARS. Pursuant to completed Purchase Offers (as defined) under the settlements with the Regulators and client related legal settlements and awards to purchase ARS, as of September 30, 2018 , the Company purchased and holds (net of redemptions) approximately $40.8 million in ARS from its clients. In addition, the Company is committed to purchase another $7.2 million in ARS from clients through 2020 under legal settlements and awards. The Company's purchases of ARS from its clients holding ARS eligible for repurchase will, subject to the terms and conditions of the settlements with the Regulators, continue on a periodic basis. Pursuant to these terms and conditions, the Company is required to conduct a financial review every six months, until the Company has extended Purchase Offers to all Eligible Investors (as defined), to determine whether it has funds available, after giving effect to the financial and regulatory capital constraints applicable to the Company, to extend additional Purchase Offers. There are no predetermined quantitative thresholds or formulas used for determining the final agreed upon amount for the Purchase Offers. Upon completion of the financial review, the Company first meets with its primary regulator, FINRA, and then with representatives of the NYAG and other regulators to present the results of the review and to finalize the amount of the next Purchase Offer and discuss offer scenarios in terms of which Eligible Investors should receive a Purchase Offer. Once various Purchase Offer scenarios have been discussed, the regulators, not the Company, make the final determination of which Purchase Offer scenario to implement. The terms of the settlements provide that the amount of ARS to be purchased during any period shall not risk placing the Company in violation of regulatory requirements. Eligible Investors for future buybacks continued to hold approximately $7.7 million of ARS principal value as of September 30, 2018 . It is reasonably possible that some ARS Purchase Offers will need to be extended to Eligible Investors holding ARS prior to redemptions (or tender offers) by issuers of the full amount that remains outstanding. The potential additional losses that may result from entering into ARS purchase commitments with Eligible Investors for future buybacks represent the estimated difference between the principal value and the fair value. It is possible that the Company could sustain a loss of all or substantially all of the principal value of ARS still held by Eligible Investors but such an outcome is highly unlikely. The amount of potential additional losses resulting from entering into these commitments cannot be reasonably estimated due to the uncertainties surrounding the amounts and timing of future buybacks that result from the six-month financial review and the amounts, scope, and timing of future issuer redemptions and tender offers of ARS held by Eligible Investors. The range of potential additional losses related to valuation adjustments is between $0 and the amount of the estimated differential between the principal value and the fair value of ARS held by Eligible Investors for future buybacks that were not yet purchased or committed to be purchased by the Company at any point in time. The range of potential additional losses described here is not included in the estimated range of aggregate loss in excess of amounts accrued for legal and regulatory proceedings described above. Outside of the settlements with the Regulators, the Company has also reached various legal settlements with clients. As of September 30, 2018 , there were no ARS purchase commitments related to legal settlements extending past 2020. Since August 2014, Oppenheimer has been responding to information requests from the SEC regarding the supervision of one of its former financial advisers who was indicted by the United States Attorney's Office for the District of New Jersey in March 2014 on allegations of insider trading. A number of Oppenheimer employees have provided on-the-record testimony in connection with the SEC inquiry. Oppenheimer is continuing to cooperate with the SEC inquiry. Since September 2016, Oppenheimer has been responding to information requests from FINRA (including from FINRA's Enforcement Department) regarding the supervision of Oppenheimer's sale of unit investment trusts from 2011 to 2015. The inquiry is part of a larger targeted examination or "sweep" examination involving many other brokerage firms. Oppenheimer is continuing to cooperate with the FINRA inquiry. On February 12, 2018, the SEC Division of Enforcement ("Enforcement Division") announced the Share Class Selection Disclosure Initiative ("SCSD Initiative") pursuant to which investment advisers were encouraged to self-report possible securities laws violations relating to the failure to make certain disclosures concerning mutual fund share class selection. On June 11, 2018, Oppenheimer and OAM notified the Enforcement Division that it intended to participate in the SCSD Initiative. Oppenheimer and OAM filed the information required by the SCSD Initiative on September 19, 2018. Oppenheimer will continue to cooperate with the SEC Staff. Oppenheimer's participation in the SCSD initiative may result in disgorgement to certain clients of 12b-1 fees that the Company received during the period under review. |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2018 | |
Regulated Operations [Abstract] | |
Regulatory Requirements | Regulatory requirements The Company's U.S. broker dealer subsidiaries, Oppenheimer and Freedom, are subject to the uniform net capital requirements of the SEC under Rule 15c3-1 (the "Rule") promulgated under the Securities Exchange Act of 1934. Oppenheimer computes its net capital requirements under the alternative method provided for in the Rule which requires that Oppenheimer maintain net capital equal to two percent of aggregate customer-related debit items, as defined in SEC Rule 15c3-3. As of September 30, 2018 , the net capital of Oppenheimer as calculated under the Rule was $184.3 million or 19.11% of Oppenheimer's aggregate debit items. This was $165.0 million in excess of the minimum required net capital at that date. Freedom computes its net capital requirement under the basic method provided for in the Rule, which requires that Freedom maintain net capital equal to the greater of $100,000 or 6-2/3% of aggregate indebtedness, as defined. As of September 30, 2018 , Freedom had net capital of $5.3 million , which was $5.2 million in excess of the $100,000 required to be maintained at that date. As of September 30, 2018 , the capital required and held under the Capital Requirements Directive ("CRD IV") for Oppenheimer Europe Ltd. was as follows: • Common Equity Tier 1 ratio 15.27% (required 4.5% ); • Tier 1 Capital ratio 15.27% (required 6.0% ); and • Total Capital ratio 15.81% (required 8.0% ). In December 2017, Oppenheimer Europe Ltd. received approval from the Financial Conduct Authority ("FCA") for a variation of permission to remove the limitation of "matched principal business" from the firm's scope of permitted businesses and become a "Full-Scope Prudential Sourcebook for Investment Firms (IFPRU) €730K" firm which was effective January 2018. In addition to the capital requirement under CRV IV above, Oppenheimer Europe Ltd. is required to maintain a minimum capital of EUR 730,000 . In December 2017, the Company contributed additional capital of $7.0 million to Oppenheimer Europe Ltd. in order to facilitate this new permissioning. As of September 30, 2018 , the regulatory capital of Oppenheimer Investments Asia Limited was $1.9 million , which was $1.5 million in excess of the $383,000 required to be maintained on that date. Oppenheimer Investments Asia Limited computes its regulatory capital pursuant to the requirements of the Securities and Futures Commission of Hong Kong. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information The Company has determined its reportable segments based on the Company's method of internal reporting, which disaggregates its retail business by branch and its proprietary and investment banking businesses by product. The Company evaluates the performance of its segments and allocates resources to them based upon profitability. The Company's reportable segments are: Private Client — includes commissions and a proportionate amount of fee income earned on assets under management ("AUM"), net interest earnings on client margin loans and cash balances, fees from money market funds, custodian fees, net contributions from stock loan activities and financing activities, and direct expenses associated with this segment; Asset Management — includes a proportionate amount of fee income earned on AUM from investment management services of Oppenheimer Asset Management Inc. Oppenheimer's asset management divisions employ various programs to manage client assets either in individual accounts or in funds, and includes direct expenses associated with this segment; and Capital Markets — includes investment banking, institutional equities sales, trading, and research, taxable fixed income sales, trading, and research, public finance and municipal trading, as well as the Company's operations in the United Kingdom, Hong Kong and Israel, and direct expenses associated with this segment. The Company does not allocate costs associated with certain infrastructure support groups that are centrally managed for its reportable segments. These areas include, but are not limited to, legal, compliance, operations, accounting, and internal audit. Costs associated with these groups are separately reported in a Corporate/Other category and primarily include compensation and benefits. The table below presents information about the reported revenue and income (loss) before income taxes from continuing operations of the Company for the three and nine months ended September 30, 2018 and 2017 . Asset information by reportable segment is not reported, since the Company does not produce such information for internal use by the chief operating decision maker. (Expressed in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Revenue Private client (1) $ 158,083 $ 147,428 $ 468,730 $ 425,069 Asset management (1) 17,870 19,277 53,220 57,247 Capital markets 68,130 58,808 197,865 168,418 Corporate/Other (6,269 ) 707 (4,915 ) 4,631 Total $ 237,814 $ 226,220 $ 714,900 $ 655,365 Income (loss) before income taxes Private client (1) $ 37,608 $ 36,950 $ 111,283 $ 93,763 Asset management (1) 4,127 3,338 11,803 11,130 Capital markets (2,076 ) (1,639 ) (8,332 ) (25,235 ) Corporate/Other (32,515 ) (26,821 ) (85,484 ) (76,492 ) Total $ 7,144 $ 11,828 $ 29,270 $ 3,166 (1) Clients investing in the OAM advisory program are charged fees based on the value of AUM. Advisory fees are allocated 10.0% to the Asset Management and 90.0% to the Private Client segments. Revenue, classified by the major geographic areas in which it was earned, for the three and nine months ended September 30, 2018 and 2017 was as follows: (Expressed in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Americas $ 230,486 $ 217,900 $ 690,569 $ 625,615 Europe/Middle East 6,500 7,655 21,245 27,019 Asia 828 665 3,086 2,731 Total $ 237,814 $ 226,220 $ 714,900 $ 655,365 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events On October 26, 2018 , the Company announced a quarterly dividend in the amount of $0.11 per share, payable on November 23, 2018 to holders of Class A Stock and Class B Stock of record on November 9, 2018 . |
Supplemental Guarantor Consolid
Supplemental Guarantor Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Supplemental Guarantor Consolidated Financial Statements | Condensed consolidating financial information On June 23, 2017, the Parent issued in a private offering $200.0 million aggregate principal amount of the Notes. The Company used a portion of the net proceeds from the offering of the Unregistered Notes to redeem in full its Old Notes. See note 9 for further details. The Notes are jointly and severally and fully and unconditionally guaranteed on a senior basis by E.A. Viner International Co. and Viner Finance Inc. (together, the "Guarantors"), unless released as described below. Each of the Guarantors is 100% owned by the Parent. The indenture for the Notes contains covenants with restrictions which are discussed in note 9. The following condensed consolidating financial information presents the financial position, results of operations and cash flows of the Parent, the Guarantor subsidiaries, the Non-Guarantor subsidiaries and elimination entries necessary to consolidate the Company. Each Guarantor will be automatically and unconditionally released and discharged upon: the sale, exchange or transfer of the capital stock of a Guarantor and the Guarantor ceasing to be a direct or indirect subsidiary of the Parent if such sale does not constitute an asset sale under the indenture for the Notes or does not constitute an asset sale effected in compliance with the asset sale and merger covenants of the indenture for the Notes; a Guarantor being dissolved or liquidated; a Guarantor being designated unrestricted in compliance with the applicable provisions of the Notes; or the exercise by the Parent of its legal defeasance option or covenant defeasance option or the discharge of the Parent's obligations under the indenture for the Notes in accordance with the terms of such indenture. OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF SEPTEMBER 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 479 $ 4,653 $ 32,399 $ — $ 37,531 Deposits with clearing organizations — — 53,956 — 53,956 Receivable from brokers, dealers and clearing organizations — — 205,031 — 205,031 Receivable from customers, net of allowance for credit losses of $859 — — 797,751 — 797,751 Income tax receivable 47,898 24,284 — (68,687 ) 3,495 Securities purchased under agreements to resell — — 1,502 — 1,502 Securities owned, including amounts pledged of $738,835, at fair value — 1,369 893,882 — 895,251 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,334 and $7,126, respectively — — 43,278 — 43,278 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $87,165 — 21,333 7,509 — 28,842 Subordinated loan receivable — 112,558 — (112,558 ) — Intangible assets — 400 31,700 — 32,100 Goodwill — — 137,889 — 137,889 Other assets 100 2,580 116,979 — 119,659 Deferred tax assets 66 116 19,654 (19,836 ) — Investment in subsidiaries 651,369 534,754 — (1,186,123 ) — Intercompany receivables 48,592 48,042 — (96,634 ) — Total assets $ 748,504 $ 750,089 $ 2,341,530 $ (1,483,838 ) $ 2,356,285 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 29,242 $ — $ 29,242 Bank call loans — — 3,000 — 3,000 Payable to brokers, dealers and clearing organizations — — 219,443 — 219,443 Payable to customers — — 351,750 — 351,750 Securities sold under agreements to repurchase — — 606,010 — 606,010 Securities sold but not yet purchased, at fair value — — 143,746 — 143,746 Accrued compensation — — 151,658 — 151,658 Accounts payable and other liabilities 3,495 31,945 60,380 — 95,820 Income tax payable 2,440 22,189 44,058 (68,687 ) — Senior secured notes, net of debt issuance cost of $969 199,031 — — — 199,031 Subordinated indebtedness — — 112,558 (112,558 ) — Deferred tax liabilities — — 32,544 (19,836 ) 12,708 Intercompany payables — 28,141 68,493 (96,634 ) — Total liabilities 204,966 82,275 1,822,882 (297,715 ) 1,812,408 Stockholders' equity Stockholders' equity attributable to Oppenheimer Holdings Inc. 543,538 667,814 518,309 (1,186,123 ) 543,538 Non-controlling interest — — 339 — 339 Total stockholders' equity 543,538 667,814 518,648 (1,186,123 ) 543,877 Total liabilities and stockholders' equity $ 748,504 $ 750,089 $ 2,341,530 $ (1,483,838 ) $ 2,356,285 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2017 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 7,442 $ 3,716 $ 36,996 $ — $ 48,154 Deposits with clearing organizations — — 42,222 — 42,222 Receivable from brokers, dealers and clearing organizations — — 187,115 — 187,115 Receivable from customers, net of allowance for credit losses of $769 — — 848,226 — 848,226 Income tax receivable 45,998 26,025 — (69,084 ) 2,939 Securities purchased under agreements to resell — — 658 — 658 Securities owned, including amounts pledged of $655,683, at fair value — 1,386 925,211 — 926,597 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,705 and $7,975, respectively — — 40,520 — 40,520 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $82,826 — 20,221 6,966 — 27,187 Subordinated loan receivable — 112,558 — (112,558 ) — Intangible assets — — 31,700 — 31,700 Goodwill — — 137,889 — 137,889 Other assets 133 2,573 142,604 — 145,310 Deferred tax assets 3,502 — 18,463 (21,965 ) — Investment in subsidiaries 622,824 507,747 — (1,130,571 ) — Intercompany receivables 52,149 83,437 — (135,586 ) — Total assets $ 732,048 $ 757,663 $ 2,418,570 $ (1,469,764 ) $ 2,438,517 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 42,412 $ — $ 42,412 Bank call loans — — 118,300 — 118,300 Payable to brokers, dealers and clearing organizations — — 211,483 — 211,483 Payable to customers — — 385,907 — 385,907 Securities sold under agreements to repurchase — — 586,478 — 586,478 Securities sold but not yet purchased, at fair value — — 94,486 — 94,486 Accrued compensation — — 173,116 — 173,116 Accounts payable and other liabilities 7,221 33,994 51,280 — 92,495 Income tax payable 2,440 22,189 44,455 (69,084 ) — Senior secured notes, net of debt issuance costs of $1,163 198,837 — — — 198,837 Subordinated indebtedness — — 112,558 (112,558 ) — Deferred tax liabilities — 17 33,040 (21,965 ) 11,092 Intercompany payables — 62,163 73,423 (135,586 ) — Total liabilities 208,498 118,363 1,926,938 (339,193 ) 1,914,606 Stockholders' equity Stockholders' equity attributable to Oppenheimer Holdings Inc. 523,550 639,300 491,271 (1,130,571 ) 523,550 Non-controlling interest — — 361 — 361 Total stockholders' equity 523,550 639,300 491,632 (1,130,571 ) 523,911 Total liabilities and stockholders' equity $ 732,048 $ 757,663 $ 2,418,570 $ (1,469,764 ) $ 2,438,517 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated REVENUES Commissions $ — $ — $ 79,678 $ — $ 79,678 Advisory fees — — 78,490 (336 ) 78,154 Investment banking — — 28,328 — 28,328 Bank deposit sweep income — — 30,053 — 30,053 Interest 1 2,063 13,415 (2,076 ) 13,403 Principal transactions, net — — (19 ) 3 (16 ) Other — 154 8,213 (153 ) 8,214 Total revenue 1 2,217 238,158 (2,562 ) 237,814 EXPENSES Compensation and related expenses 343 — 152,503 — 152,846 Communications and technology 35 — 18,567 — 18,602 Occupancy and equipment costs — — 15,259 (153 ) 15,106 Clearing and exchange fees — — 5,378 — 5,378 Interest 3,375 — 11,616 (2,076 ) 12,915 Other 218 270 25,668 (333 ) 25,823 Total expenses 3,971 270 228,991 (2,562 ) 230,670 Income (Loss) before income taxes (3,970 ) 1,947 9,167 — 7,144 Income taxes (976 ) 479 2,580 — 2,083 Net income (loss) from continuing operations (2,994 ) 1,468 6,587 — 5,061 Equity in earnings of subsidiaries 8,065 6,597 — (14,662 ) — Net income 5,071 8,065 6,587 (14,662 ) 5,061 Less net loss attributable to non-controlling interest, net of tax — — (10 ) — (10 ) Net income attributable to Oppenheimer Holdings Inc. 5,071 8,065 6,597 (14,662 ) 5,071 Other comprehensive income — — 99 — 99 Total comprehensive income $ 5,071 $ 8,065 $ 6,696 $ (14,662 ) $ 5,170 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 77,635 $ — $ 77,635 Advisory fees — — 74,655 (326 ) 74,329 Investment banking — — 23,940 — 23,940 Bank deposit sweep income — — 21,146 — 21,146 Interest — 2,391 12,972 (2,411 ) 12,952 Principal transactions, net — 2 5,133 — 5,135 Other 22 89 11,061 (89 ) 11,083 Total revenue 22 2,482 226,542 (2,826 ) 226,220 EXPENSES Compensation and related expenses 271 — 141,819 — 142,090 Communications and technology 33 — 17,748 — 17,781 Occupancy and equipment costs — — 15,377 (89 ) 15,288 Clearing and exchange fees — — 5,622 — 5,622 Interest 3,375 — 5,536 (2,411 ) 6,500 Other 412 62 26,963 (326 ) 27,111 Total expenses 4,091 62 213,065 (2,826 ) 214,392 Income (Loss) before income taxes (4,069 ) 2,420 13,477 — 11,828 Income taxes (1,558 ) 984 4,999 — 4,425 Net income (loss) from continuing operations (2,511 ) 1,436 8,478 — 7,403 Discontinued operations Income from discontinued operations — — 769 — 769 Income taxes — — 308 — 308 Net income from discontinued operations — — 461 — 461 Equity in earnings of subsidiaries 10,300 8,864 — (19,164 ) — Net income 7,789 10,300 8,939 (19,164 ) 7,864 Less net income attributable to non-controlling interest, net of tax — — 75 — 75 Net income attributable to Oppenheimer Holdings Inc. 7,789 10,300 8,864 (19,164 ) 7,789 Other comprehensive loss — — (251 ) — (251 ) Total comprehensive income $ 7,789 $ 10,300 $ 8,613 $ (19,164 ) $ 7,538 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated REVENUES Commissions $ — $ — $ 245,935 $ — $ 245,935 Advisory fees — — 233,953 (981 ) 232,972 Investment banking — — 84,442 — 84,442 Bank deposit sweep income — — 84,203 — 84,203 Interest 4 6,183 38,732 (6,233 ) 38,686 Principal transactions, net — — 9,149 (39 ) 9,110 Other — 345 19,549 (342 ) 19,552 Total revenue 4 6,528 715,963 (7,595 ) 714,900 EXPENSES Compensation and related expenses 1,191 — 456,630 — 457,821 Communications and technology 123 — 55,164 — 55,287 Occupancy and equipment costs — — 45,777 (342 ) 45,435 Clearing and exchange fees — — 17,254 17,254 Interest 10,125 — 28,895 (6,233 ) 32,787 Other 883 1,372 75,811 (1,020 ) 77,046 Total expenses 12,322 1,372 679,531 (7,595 ) 685,630 Income (Loss) before income taxes (12,318 ) 5,156 36,432 — 29,270 Income taxes (3,081 ) 1,112 10,630 — 8,661 Net income (loss) from continuing operations (9,237 ) 4,044 25,802 — 20,609 Equity in earnings of subsidiaries 29,868 25,824 — (55,692 ) — Net income 20,631 29,868 25,802 (55,692 ) 20,609 Less net loss attributable to non-controlling interest, net of tax — — (22 ) — (22 ) Net income attributable to Oppenheimer Holdings Inc. 20,631 29,868 25,824 (55,692 ) 20,631 Other comprehensive loss — — (880 ) — (880 ) Total comprehensive income $ 20,631 $ 29,868 $ 24,944 $ (55,692 ) $ 19,751 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 248,204 $ — $ 248,204 Advisory fees — — 217,510 (989 ) 216,521 Investment banking — — 60,347 (3,000 ) 57,347 Bank deposit sweep income — — 52,992 — 52,992 Interest — 7,529 36,379 (7,562 ) 36,346 Principal transactions, net — 17 15,793 — 15,810 Other 22 267 28,122 (266 ) 28,145 Total revenue 22 7,813 659,347 (11,817 ) 655,365 EXPENSES Compensation and related expenses 976 — 427,649 — 428,625 Communications and technology 112 — 53,774 — 53,886 Occupancy and equipment costs — — 45,987 (266 ) 45,721 Clearing and exchange fees — — 17,392 — 17,392 Interest 10,365 — 15,907 (7,562 ) 18,710 Other 4,661 329 86,864 (3,989 ) 87,865 Total expenses 16,114 329 647,573 (11,817 ) 652,199 Income (Loss) before income taxes (16,092 ) 7,484 11,774 — 3,166 Income taxes (6,184 ) 2,860 5,788 — 2,464 Net income (loss) from continuing operations (9,908 ) 4,624 5,986 — 702 Discontinued operations Income from discontinued operations — — 1,834 — 1,834 Income taxes — — 733 — 733 Net income from discontinued operations — — 1,101 — 1,101 Equity in earnings of subsidiaries 11,531 6,907 — (18,438 ) — Net income 1,623 11,531 7,087 (18,438 ) 1,803 Less net income attributable to non-controlling interest, net of tax — — 180 — 180 Net income attributable to Oppenheimer Holdings Inc. 1,623 11,531 6,907 (18,438 ) 1,623 Other comprehensive income — — 1,953 — 1,953 Total comprehensive income $ 1,623 $ 11,531 $ 8,860 $ (18,438 ) $ 3,576 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ (131 ) $ 1,337 $ 117,073 $ — $ 118,279 Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (6,654 ) — (6,654 ) Purchase of tangible assets — (400 ) — — (400 ) Proceeds from the settlement of Company-owned life insurance — — 284 — 284 Cash used in investing activities — (400 ) (6,370 ) — (6,770 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (4,373 ) — — — (4,373 ) Issuance of Class A non-voting common stock 70 — — — 70 Payments for employee taxes withheld related to vested share-based awards (2,529 ) — — — (2,529 ) Decrease in bank call loans, net — — (115,300 ) — (115,300 ) Cash used in financing activities (6,832 ) — (115,300 ) — (122,132 ) Net increase (decrease) in cash and cash equivalents (6,963 ) 937 (4,597 ) — (10,623 ) Cash and cash equivalents, beginning of the period 7,442 3,716 36,996 — 48,154 Cash and cash equivalents, end of the period $ 479 $ 4,653 $ 32,399 $ — $ 37,531 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ (34,449 ) $ 1,679 $ (1,616 ) $ — $ (34,386 ) Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (3,506 ) — (3,506 ) Proceeds from settlement of company-owned life insurance — — 1,194 — 1,194 Cash used in investing activities — — (2,312 ) — (2,312 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (4,394 ) — — — (4,394 ) Cash dividends paid to non-controlling interest — — (2,448 ) — (2,448 ) Repurchase of Class A non-voting common stock for cancellation (7,464 ) — — — (7,464 ) Payments for employee taxes withheld related to vested share-based awards (2,232 ) — — — (2,232 ) Issuance of senior secured notes 200,000 — — — 200,000 Redemption of senior secured notes (150,000 ) — — — (150,000 ) Debt issuance costs (1,183 ) — — — (1,183 ) Decrease in bank call loans, net — — (15,700 ) — (15,700 ) Cash provided by (used in) financing activities 34,727 — (18,148 ) — 16,579 Net increase (decrease) in cash and cash equivalents 278 1,679 (22,076 ) — (20,119 ) Cash and cash equivalents, beginning of the period 229 10,284 54,400 — 64,913 Cash and cash equivalents, end of the period $ 507 $ 11,963 $ 32,324 $ — $ 44,794 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Recently Issued In February 2016, the FASB issued ASU 2016-02, "Leases." The ASU requires the recognition of a right-of use asset and lease liability on the balance sheet by lessees for those leases classified as operating leases under previous guidance. The ASU is effective for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of adopting this ASU which it expects will have a significant impact on its condensed consolidated financial statements. Since the Company has operating leases in over 100 locations, equipment leases and embedded leases, the Company expects to recognize a significant right-of use asset and lease liability on its condensed consolidated balance sheet upon adoption of this ASU. As of September 30, 2018, the Company estimates that it will record right-of-use assets between $170.0 million to $190.0 million and lease liabilities within the same range on the condensed consolidated balance sheet upon the adoption of this standard, which predominately relate to real estate leases. The Company has elected the modified retrospective method and will include any cumulative-effect adjustment as of the date of adoption. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which amends the FASB's guidance on the impairment of financial instruments. The ASU adds to U.S. GAAP an impairment model ("current expected credit loss model"). Under this new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The ASU is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact, if any, that the ASU will have on the Company; the adoption of the ASU is not currently expected to have a material impact on its condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other, Simplifying the Test for Goodwill Impairment," which simplifies the subsequent measurement of goodwill. The Company is no longer required to perform its Step 2 goodwill impairment test; instead, the Company should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The ASU is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company will not early adopt this ASU. The Company is currently evaluating the impact, if any, of the ASU on the Company; the adoption of the ASU is not currently expected to have a material impact on its condensed consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities," which amends the hedge accounting recognition and presentation requirements. The ASU improves the transparency and understandability of information conveyed to financial statement users by better aligning companies' hedging relationships to their existing risk management strategies, simplifies the application of hedge accounting and increases transparency regarding the scope and results of the hedging program. The ASU is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company will not early adopt this ASU. The Company is currently evaluating the impact, if any, of the ASU on the Company; the adoption of the ASU is not currently expected to have a material impact on its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement - Disclosure Framework - Changes to the Disclosure Requirements for the Fair Value Measurement," which modifies the disclosure requirements related to fair value measurement. The ASU is effective for fiscal years and interim periods beginning after December 15, 2019 and early adoption is permitted. The Company will not early adopt this ASU. The Company is currently evaluating the impact, if any, of the ASU on the Company's disclosure. |
Revenues from contracts with _2
Revenues from contracts with customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the three and nine months ended September 30, 2018 : (Expressed in thousands) For the Three Months Ended September 30, 2018 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 36,553 $ — $ 31,807 $ 10 $ 68,370 Mutual fund income 11,059 240 4 5 11,308 Advisory fees 60,516 17,627 3 8 78,154 Investment banking - capital markets 2,733 — 15,806 — 18,539 Investment banking - advisory — — 9,789 — 9,789 Bank deposit sweep income 30,053 — — — 30,053 Other 3,654 3 318 40 4,015 Total revenues from contracts with customers 144,568 17,870 57,727 63 220,228 Other sources of revenue: Interest 9,469 — 3,678 256 13,403 Principal transactions, net 675 — 6,423 (7,114 ) (16 ) Other 3,371 — 302 526 4,199 Total other sources of revenue 13,515 — 10,403 (6,332 ) 17,586 Total revenue $ 158,083 $ 17,870 $ 68,130 $ (6,269 ) $ 237,814 (Expressed in thousands) For the Nine Months Ended September 30, 2018 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 115,924 $ — $ 96,826 $ 87 $ 212,837 Mutual fund income 32,327 745 11 15 33,098 Advisory fees 180,426 52,465 57 24 232,972 Investment banking - capital markets 10,572 — 46,398 — 56,970 Investment banking - advisory — — 27,472 — 27,472 Bank deposit sweep income 84,203 — — — 84,203 Other 11,359 9 750 (6 ) 12,112 Total revenues from contracts with customers 434,811 53,219 171,514 120 659,664 Other sources of revenue: Interest 27,820 1 10,146 719 38,686 Principal transactions, net 807 — 15,804 (7,501 ) 9,110 Other 5,292 — 401 1,747 7,440 Total other sources of revenue 33,919 1 26,351 (5,035 ) 55,236 Total revenue $ 468,730 $ 53,220 $ 197,865 $ (4,915 ) $ 714,900 |
Contract with Customer, Asset and Liability | The following presents the Company's contract assets and deferred revenue balances from contracts with customers, which are included in other assets and other liabilities, respectively, on the condensed consolidated balance sheet: (Expressed in thousands) Ending Balance at September 30, 2018 Opening Balance at January 1, 2018 Contract assets (receivables): Commission (1) $ 2,867 $ 2,007 Mutual fund income (2) 7,364 7,779 Advisory fees (3) 681 1,460 Bank deposit sweep income (4) 3,849 3,459 Investment banking fees (5) 5,601 3,926 Other 3,290 — Total contract assets $ 23,652 $ 18,631 Deferred revenue (payables): Investment banking fees $ 407 $ — IRA fees 762 — Total deferred revenue $ 1,169 $ — (1) Commission recorded on trade date but not yet settled. (2) Mutual fund income earned but not yet received. (3) Management and performance fees earned but not yet received. (4) Fees earned from FDIC-insured bank deposit program but not yet received. (5) Underwriting revenue and advisory fee earned but not yet received. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share | Earnings per share have been calculated as follows: (Expressed in thousands, except number of shares and per share amounts) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Basic weighted average number of shares outstanding 13,269,024 13,213,139 13,252,596 13,290,399 Net dilutive effect of share-based awards, treasury method (1) 871,239 550,377 790,730 499,737 Diluted weighted average number of shares outstanding 14,140,263 13,763,516 14,043,326 13,790,136 Net income from continuing operations $ 5,061 $ 7,403 $ 20,609 $ 702 Net income from discontinued operations — 461 — 1,101 Net income 5,061 7,864 20,609 1,803 Less net income (loss) attributable to non-controlling interest, net of tax (10 ) 75 (22 ) 180 Net income attributable to Oppenheimer Holdings Inc. $ 5,071 $ 7,789 $ 20,631 $ 1,623 Basic net income per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.38 $ 0.56 $ 1.56 $ 0.05 Discontinued operations (2) — 0.03 — 0.07 Net income per share $ 0.38 $ 0.59 $ 1.56 $ 0.12 Diluted net income per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.36 $ 0.54 $ 1.47 $ 0.05 Discontinued operations (2) — 0.03 — 0.07 Net income per share $ 0.36 $ 0.57 $ 1.47 $ 0.12 (1) For both the three and nine months ended September 30, 2018 , the diluted net income per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements ( 15,450 shares for both the three and nine months ended September 30, 2017 ). (2) Represents net income from discontinued operations less net income attributable to non-controlling interest, net of tax divided by weighted average number of shares outstanding. |
Receivable From and Payable t_2
Receivable From and Payable to Brokers, Dealers and Clearing Organizations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Brokers and Dealers [Abstract] | |
Receivable from and Payable to Brokers, Dealers and Clearing Organizations | (Expressed in thousands) As of September 30, 2018 December 31, 2017 Receivable from brokers, dealers and clearing organizations consists of: Securities borrowed $ 114,795 $ 132,368 Receivable from brokers 31,396 19,298 Securities failed to deliver 23,390 9,442 Clearing organizations 29,026 24,361 Other 6,424 1,646 Total $ 205,031 $ 187,115 Payable to brokers, dealers and clearing organizations consists of: Securities loaned $ 197,332 $ 180,270 Payable to brokers 2,004 1,567 Securities failed to receive 18,102 17,559 Other 2,005 12,087 Total $ 219,443 $ 211,483 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Quantitative Information about Level 3 Fair Value Measurements | Additional information regarding the valuation technique and inputs for ARS used is as follows: (Expressed in thousands) Quantitative Information about ARS Level 3 Fair Value Measurements as of September 30, 2018 Product Principal Valuation Adjustment Fair Value Valuation Technique Unobservable Input Range Weighted Average Auction Rate Securities Owned (1) Auction Rate Preferred Securities $ 21,500 $ 406 $ 21,094 Discounted Cash Flow Discount Rate (2) 3.14% to 4.28% 4.26% Duration 2.5 Years 2.5 Years Current Yield (3) 2.38% to 3.46% 3.45% Auction Rate Preferred Securities 18,950 2,697 16,253 Tender Offer (4) N/A N/A N/A Municipal Auction Rate Securities 75 — 75 Par N/A N/A N/A Student Loan Auction Rate Securities 275 14 261 Discounted Cash Flow Discount Rate (5) 4.17% 4.17% Duration 5.5 Years 5.5 Years Current Yield (3) 3.09% 3.09% $ 40,800 $ 3,117 $ 37,683 Auction Rate Securities Commitments to Purchase (6) Auction Rate Preferred Securities $ 49 $ 1 $ 48 Discounted Cash Flow Discount Rate (2) 3.14% to 4.28% 4.26% Duration 2.5 Years 2.5 Years Current Yield (3) 2.38% to 3.46% 3.45% Auction Rate Preferred Securities 7,184 1,078 6,106 Tender Offer (4) N/A N/A N/A $ 7,233 $ 1,079 $ 6,154 Total $ 48,033 $ 4,196 $ 43,837 (1) Principal amount represents the par value of the ARS and is included in securities owned on the condensed consolidated balance sheet as of September 30, 2018 . The valuation adjustment amount is included as a reduction to securities owned on the condensed consolidated balance sheet as of September 30, 2018 . (2) Derived by applying a multiple to a spread between 110% to 150% to the U.S. Treasury rate of 2.85% . (3) Based on current yields for ARS positions owned. (4) Residual ARS amounts owned and ARS commitments to purchase that were subject to tender offers were priced at the tender offer price. Included in Level 2 of the fair value hierarchy. (5) Derived by applying the sum of the spread of 1.20% to the U.S. Treasury rate of 2.97% . (6) Principal amount represents the present value of the ARS par value that the Company is committed to purchase at a future date. This principal amount is presented as an off-balance sheet item. The valuation adjustment amount is included in accounts payable and other liabilities on the condensed consolidated balance sheet as of September 30, 2018 . |
Investments in Company-Sponsored Funds | The following table provides information about the Company's investments in Company-sponsored funds as of September 30, 2018 : (Expressed in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Hedge funds (1) $ 1,631 $ — Annually 30 - 120 Days Private equity funds (2) 4,974 1,400 N/A N/A $ 6,605 $ 1,400 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. Each hedge fund has various restrictions regarding redemption; no investment is locked-up for a period greater than one year. (2) Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources. Due to the illiquid nature of these funds, investors are not permitted to make withdrawals without the consent of the general partner. The lock-up period of the private equity funds can extend to 10 years. |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company's assets and liabilities, recorded at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 , have been categorized based upon the above fair value hierarchy as follows: Assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 (Expressed in thousands) Fair Value Measurements as of September 30, 2018 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,500 $ — $ — $ 10,500 Deposits with clearing organizations 31,291 — — 31,291 Securities owned: U.S. Treasury securities 701,261 — — 701,261 U.S. Agency securities 14,688 7,425 — 22,113 Sovereign obligations — 2,964 — 2,964 Corporate debt and other obligations — 14,400 — 14,400 Mortgage and other asset-backed securities — 2,777 — 2,777 Municipal obligations — 45,427 — 45,427 Convertible bonds — 34,013 — 34,013 Corporate equities 34,613 — — 34,613 Auction rate securities — 16,253 21,430 37,683 Securities owned, at fair value 750,562 123,259 21,430 895,251 Investments (1) — — 104 104 Derivative contracts: TBAs — 12,309 — 12,309 Total $ 792,353 $ 135,568 $ 21,534 $ 949,455 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 107,031 $ — $ — $ 107,031 U.S. Agency securities — 2 — 2 Corporate debt and other obligations — 4,061 — 4,061 Mortgage and other asset-backed securities — 2,349 — 2,349 Convertible bonds — 7,356 — 7,356 Corporate equities 22,947 — — 22,947 Securities sold but not yet purchased, at fair value 129,978 13,768 — 143,746 Derivative contracts: Futures 709 — — 709 Foreign exchange forward contracts 2 — — 2 TBAs — 12,258 — 12,258 ARS purchase commitments — 1,078 1 1,079 Derivative contracts, total 711 13,336 1 14,048 Total $ 130,689 $ 27,104 $ 1 $ 157,794 (1) Included in other assets on the condensed consolidated balance sheet. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 (Expressed in thousands) Fair Value Measurements as of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,490 $ — $ — $ 10,490 Deposits with clearing organizations 34,293 — — 34,293 Securities owned: U.S. Treasury securities 640,337 — — 640,337 U.S. Agency securities 3,011 6,894 — 9,905 Sovereign obligations — 608 — 608 Corporate debt and other obligations — 12,538 — 12,538 Mortgage and other asset-backed securities — 4,037 — 4,037 Municipal obligations — 89,618 35 89,653 Convertible bonds — 23,216 — 23,216 Corporate equities 34,067 — — 34,067 Money markets 383 — — 383 Auction rate securities — 24,455 87,398 111,853 Securities owned, at fair value 677,798 161,366 87,433 926,597 Investments (1) — — 169 169 Derivative contracts: TBAs — 716 — 716 Total $ 722,581 $ 162,082 $ 87,602 $ 972,265 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 53,425 $ — $ — $ 53,425 U.S. Agency securities — 13 — 13 Sovereign obligations — 1,179 — 1,179 Corporate debt and other obligations — 4,357 — 4,357 Mortgage and other asset-backed securities — 10 — 10 Convertible bonds — 10,109 — 10,109 Corporate equities 25,393 — — 25,393 Securities sold but not yet purchased, at fair value 78,818 15,668 — 94,486 Derivative contracts: Futures 766 — — 766 TBAs — 614 — 614 ARS purchase commitments — — 8 8 Derivative contracts, total 766 614 8 1,388 Total $ 79,584 $ 16,282 $ 8 $ 95,874 (1) Included in other assets on the condensed consolidated balance sheet. |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2018 and 2017 : (Expressed in thousands) Level 3 Assets and Liabilities For the Three Months Ended September 30, 2018 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Auction rate securities (1)(5) $ 72,621 $ (2,163 ) $ 2,150 $ (34,925 ) $ (16,253 ) $ 21,430 Investments 164 — — — (60 ) 104 Liabilities ARS purchase commitments (2)(5) 131 (948 ) — — 1,078 1 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of income, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of income. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. (5) Represents transfers from Level 3 to Level 2 of the fair value hierarchy. Transfers were due to tender offers by issuers of ARS. (Expressed in thousands) Level 3 Assets and Liabilities For the Three Months Ended September 30, 2017 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 36 $ (1 ) $ — $ — $ — $ 35 Auction rate securities (1) 107,170 (161 ) 25 (250 ) — 106,784 Investments 168 (1 ) — — — 167 ARS purchase commitments (2) — — — — — — Liabilities ARS purchase commitments (2) 254 (22 ) — — — 276 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of income, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of income. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2018 and 2017 : (Expressed in thousands) Level 3 Assets and Liabilities For the Nine Months Ended September 30, 2018 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 35 $ 14 $ 76 $ (125 ) $ — $ — Auction rate securities (1)(5) 87,398 (2,218 ) 6,250 (36,145 ) (33,855 ) 21,430 Investments 169 (5 ) — — (60 ) 104 Liabilities ARS purchase commitments (2)(5) 8 (1,162 ) — — 1,169 1 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of income, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of income. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. (5) Represents transfers from Level 3 to Level 2 of the fair value hierarchy. Transfers were due to tender offers by issuers of ARS. (Expressed in thousands) Level 3 Assets and Liabilities For the Nine Months Ended September 30, 2017 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 44 $ (9 ) $ — $ — $ — $ 35 Auction rate securities (1) 84,926 983 22,075 (1,200 ) — 106,784 Investments 158 9 — — — 167 ARS purchase commitments (2) 849 (849 ) — — — — Liabilities ARS purchase commitments (2) 645 369 — — — 276 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of income, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of income. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. |
Financial Instruments, Estimate Not Practicable, Fair Value | Assets and liabilities not measured at fair value as of September 30, 2018 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 27,031 $ 27,031 $ — $ — $ 27,031 Deposits with clearing organization 22,665 22,665 — — 22,665 Receivable from brokers, dealers and clearing organizations: Securities borrowed 114,795 — 114,795 — 114,795 Receivables from brokers 31,396 — 31,396 — 31,396 Securities failed to deliver 23,390 — 23,390 — 23,390 Clearing organizations 29,026 — 29,026 — 29,026 Other 5,183 — 5,183 — 5,183 203,790 — 203,790 — 203,790 Receivable from customers 797,751 — 797,751 — 797,751 Securities purchased under agreements to resell 1,502 — 1,502 — 1,502 Notes receivable, net 43,278 — 43,278 — 43,278 Investments (1) 68,585 — 68,585 — 68,585 (1) Included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 29,242 $ 29,242 $ — $ — $ 29,242 Bank call loans 3,000 — 3,000 — 3,000 Payables to brokers, dealers and clearing organizations: Securities loaned 197,332 — 197,332 — 197,332 Payable to brokers 2,004 — 2,004 — 2,004 Securities failed to receive 18,102 — 18,102 — 18,102 Other 106 — 106 — 106 217,544 — 217,544 — 217,544 Payables to customers 351,750 — 351,750 — 351,750 Securities sold under agreements to repurchase 606,010 — 606,010 — 606,010 Senior secured notes 200,000 — 202,938 — 202,938 Assets and liabilities not measured at fair value as of December 31, 2017 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 37,664 $ 37,664 $ — $ — $ 37,664 Deposits with clearing organization 7,929 7,929 — — 7,929 Receivable from brokers, dealers and clearing organizations: Securities borrowed 132,368 — 132,368 — 132,368 Receivables from brokers 19,298 — 19,298 — 19,298 Securities failed to deliver 9,442 — 9,442 — 9,442 Clearing organizations 24,361 — 24,361 — 24,361 Other 930 — 930 — 930 186,399 — 186,399 — 186,399 Receivable from customers 848,226 — 848,226 — 848,226 Securities purchased under agreements to resell 658 — 658 — 658 Notes receivable, net 40,520 — 40,520 — 40,520 Investments (1) 65,404 — 65,404 — 65,404 (1) Included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 42,212 $ 42,212 $ — $ — $ 42,212 Bank call loans 118,300 — 118,300 — 118,300 Payables to brokers, dealers and clearing organizations: Securities loaned 180,270 — 180,270 — 180,270 Payable to brokers 1,567 — 1,567 — 1,567 Securities failed to receive 17,559 — 17,559 — 17,559 Other 10,707 — 10,707 — 10,707 210,103 — 210,103 — 210,103 Payables to customers 385,907 — 385,907 — 385,907 Securities sold under agreements to repurchase 586,478 — 586,478 — 586,478 Senior secured notes 200,000 — 206,380 — 206,380 |
Notional Amounts and Fair Values of Derivatives by Product | The notional amounts and fair values of the Company's derivatives as of September 30, 2018 and December 31, 2017 by product were as follows: (Expressed in thousands) Fair Value of Derivative Instruments as of September 30, 2018 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 568,430 $ 11,057 Other TBAs (2) 28,501 1,252 $ 596,931 $ 12,309 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 3,720,000 $ 709 Other contracts Foreign exchange forward contracts 200 2 TBAs 568,430 11,068 Other TBAs (2) 28,501 1,190 ARS purchase commitments 7,233 1,079 $ 4,324,364 $ 14,048 (1) See "Derivative Instruments and Hedging Activities" above for description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset. (2) Represents TBA purchase and sale contracts related to the legacy OMHHF business. (Expressed in thousands) Fair Value of Derivative Instruments as of December 31, 2017 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 26,000 $ 22 Other TBAs (2) 39,576 694 $ 65,576 $ 716 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 5,844,000 $ 766 Other contracts TBAs 26,000 22 Other TBAs (2) 39,576 592 ARS purchase commitments 10,992 8 $ 5,920,568 $ 1,388 (1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. (2) Represents TBA purchase and sale contracts related to the legacy OMHHF business. |
Fair Value Amounts of Derivative Instruments and their Effect on Statement of Operations | The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the condensed consolidated statements of income for the three months ended September 30, 2018 and 2017 : (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Income For the Three Months Ended September 30, 2018 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 413 Other contracts Foreign exchange forward contracts Other revenue 2 Other contracts TBAs Principal transactions revenue 73 Other TBAs Other revenue 62 ARS purchase commitments Principal transactions revenue (857 ) $ (307 ) (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Income For the Three Months Ended September 30, 2017 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ (20 ) Other contracts Foreign exchange forward contracts Other revenue — TBAs Principal transactions revenue (26 ) Other TBAs Other revenue (70 ) ARS purchase commitments Principal transactions revenue (22 ) $ (138 ) The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the condensed consolidated statements of income for the nine months ended September 30, 2018 and 2017 : (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Income For the Nine Months Ended September 30, 2018 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 1,764 Other contracts Foreign exchange forward contracts Other revenue (3 ) Other contracts TBAs Principal transactions revenue 269 Other TBAs Other revenue 209 ARS purchase commitments Principal transactions revenue (1,071 ) $ 1,168 (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Income For the Nine Months Ended September 30, 2017 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 214 Other contracts Foreign exchange forward contracts Other revenue 12 TBAs Principal transactions revenue (184 ) Other TBAs Other revenue (320 ) ARS purchase commitments Principal transactions revenue (480 ) $ (758 ) |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Brokers and Dealers [Abstract] | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | The following table presents a disaggregation of the gross obligation by the class of collateral pledged and the remaining contractual maturity of the repurchase agreements and securities loaned transactions as of September 30, 2018 : (Expressed in thousands) Overnight and Open Repurchase agreements: U.S. Government and Agency securities $ 705,491 Securities loaned: Equity securities 197,332 Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 902,823 |
Schedule of Gross Amounts and Offsetting Amounts of Reverse Repurchase Agreements, Repurchase Agreements, Securities Borrowed and Securities Lending Transactions | The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of September 30, 2018 and December 31, 2017 : As of September 30, 2018 (Expressed in thousands) Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset on the Balance Sheet Net Amounts of Assets Presented on the Balance Sheet Financial Instruments Cash Collateral Received Net Amount Reverse repurchase agreements $ 100,983 $ (99,481 ) $ 1,502 $ (1,495 ) $ — $ 7 Securities borrowed (1) 114,795 — 114,795 (110,123 ) — 4,672 Total $ 215,778 $ (99,481 ) $ 116,297 $ (111,618 ) $ — $ 4,679 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amounts of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount Repurchase agreements $ 705,491 $ (99,481 ) $ 606,010 $ (603,961 ) $ — $ 2,049 Securities loaned (2) 197,332 — 197,332 (189,961 ) — 7,371 Total $ 902,823 $ (99,481 ) $ 803,342 $ (793,922 ) $ — $ 9,420 (2) Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. As of December 31, 2017 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 200,712 $ (200,054 ) $ 658 $ — $ — $ 658 Securities borrowed (1) 132,368 — 132,368 (128,575 ) — 3,793 Total $ 333,080 $ (200,054 ) $ 133,026 $ (128,575 ) $ — $ 4,451 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amounts of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount Repurchase agreements $ 786,532 $ (200,054 ) $ 586,478 $ (585,289 ) $ — $ 1,189 Securities loaned (2) 180,270 — 180,270 (170,176 ) — 10,094 Total $ 966,802 $ (200,054 ) $ 766,748 $ (755,465 ) $ — $ 11,283 (2) Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entities | The following tables set forth the total VIE assets, the carrying value of the subsidiaries' variable interests, and the Company's maximum exposure to loss in Company-sponsored non-consolidated VIEs in which the Company holds variable interests and other non-consolidated VIEs in which the Company holds variable interests as of September 30, 2018 and December 31, 2017 : (Expressed in thousands) As of September 30, 2018 Total VIE Assets (1) Carrying Value of the Capital Commitments Maximum Exposure to Loss in Non-consolidated VIEs Assets (2) Liabilities Hedge funds $ 336,209 $ 342 $ — $ — $ 342 Private equity funds 9,174 12 — 1 13 Total $ 345,383 $ 354 $ — $ 1 $ 355 (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (2) Represents the Company's interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) As of December 31, 2017 Total (1) Carrying Value of the Capital Maximum Assets (2) Liabilities Hedge funds $ 328,172 $ 713 $ — $ — $ 713 Private equity funds 15,668 12 — 2 14 Total $ 343,840 $ 725 $ — $ 2 $ 727 (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (2) Represents the Company's interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | (Expressed in thousands) Issued Maturity Date September 30, 2018 December 31, 2017 6.75% Senior Secured Notes 7/1/2022 $ 200,000 $ 200,000 Unamortized Debt Issuance Cost (969 ) (1,163 ) $ 199,031 $ 198,837 |
Share Capital (Tables)
Share Capital (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Changes in Number of Shares of Class A Stock Outstanding | The following table reflects changes in the number of shares of Class A Stock outstanding for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Class A Stock outstanding, beginning of period 13,156,353 13,132,775 13,139,203 13,261,095 Issued pursuant to share-based compensation plans 21,578 19,883 38,728 198,903 Repurchased and canceled pursuant to the stock buy-back — (143,010 ) — (450,350 ) Class A Stock outstanding, end of period 13,177,931 13,009,648 13,177,931 13,009,648 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Reported Revenue and Profit Before Income Taxes | The table below presents information about the reported revenue and income (loss) before income taxes from continuing operations of the Company for the three and nine months ended September 30, 2018 and 2017 . Asset information by reportable segment is not reported, since the Company does not produce such information for internal use by the chief operating decision maker. (Expressed in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Revenue Private client (1) $ 158,083 $ 147,428 $ 468,730 $ 425,069 Asset management (1) 17,870 19,277 53,220 57,247 Capital markets 68,130 58,808 197,865 168,418 Corporate/Other (6,269 ) 707 (4,915 ) 4,631 Total $ 237,814 $ 226,220 $ 714,900 $ 655,365 Income (loss) before income taxes Private client (1) $ 37,608 $ 36,950 $ 111,283 $ 93,763 Asset management (1) 4,127 3,338 11,803 11,130 Capital markets (2,076 ) (1,639 ) (8,332 ) (25,235 ) Corporate/Other (32,515 ) (26,821 ) (85,484 ) (76,492 ) Total $ 7,144 $ 11,828 $ 29,270 $ 3,166 (1) Clients investing in the OAM advisory program are charged fees based on the value of AUM. Advisory fees are allocated 10.0% to the Asset Management and 90.0% to the Private Client segments. |
Revenue Classified by Major Geographic Areas | Revenue, classified by the major geographic areas in which it was earned, for the three and nine months ended September 30, 2018 and 2017 was as follows: (Expressed in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Americas $ 230,486 $ 217,900 $ 690,569 $ 625,615 Europe/Middle East 6,500 7,655 21,245 27,019 Asia 828 665 3,086 2,731 Total $ 237,814 $ 226,220 $ 714,900 $ 655,365 |
Supplemental Guarantor Consol_2
Supplemental Guarantor Consolidated Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Income Statement | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated REVENUES Commissions $ — $ — $ 245,935 $ — $ 245,935 Advisory fees — — 233,953 (981 ) 232,972 Investment banking — — 84,442 — 84,442 Bank deposit sweep income — — 84,203 — 84,203 Interest 4 6,183 38,732 (6,233 ) 38,686 Principal transactions, net — — 9,149 (39 ) 9,110 Other — 345 19,549 (342 ) 19,552 Total revenue 4 6,528 715,963 (7,595 ) 714,900 EXPENSES Compensation and related expenses 1,191 — 456,630 — 457,821 Communications and technology 123 — 55,164 — 55,287 Occupancy and equipment costs — — 45,777 (342 ) 45,435 Clearing and exchange fees — — 17,254 17,254 Interest 10,125 — 28,895 (6,233 ) 32,787 Other 883 1,372 75,811 (1,020 ) 77,046 Total expenses 12,322 1,372 679,531 (7,595 ) 685,630 Income (Loss) before income taxes (12,318 ) 5,156 36,432 — 29,270 Income taxes (3,081 ) 1,112 10,630 — 8,661 Net income (loss) from continuing operations (9,237 ) 4,044 25,802 — 20,609 Equity in earnings of subsidiaries 29,868 25,824 — (55,692 ) — Net income 20,631 29,868 25,802 (55,692 ) 20,609 Less net loss attributable to non-controlling interest, net of tax — — (22 ) — (22 ) Net income attributable to Oppenheimer Holdings Inc. 20,631 29,868 25,824 (55,692 ) 20,631 Other comprehensive loss — — (880 ) — (880 ) Total comprehensive income $ 20,631 $ 29,868 $ 24,944 $ (55,692 ) $ 19,751 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 248,204 $ — $ 248,204 Advisory fees — — 217,510 (989 ) 216,521 Investment banking — — 60,347 (3,000 ) 57,347 Bank deposit sweep income — — 52,992 — 52,992 Interest — 7,529 36,379 (7,562 ) 36,346 Principal transactions, net — 17 15,793 — 15,810 Other 22 267 28,122 (266 ) 28,145 Total revenue 22 7,813 659,347 (11,817 ) 655,365 EXPENSES Compensation and related expenses 976 — 427,649 — 428,625 Communications and technology 112 — 53,774 — 53,886 Occupancy and equipment costs — — 45,987 (266 ) 45,721 Clearing and exchange fees — — 17,392 — 17,392 Interest 10,365 — 15,907 (7,562 ) 18,710 Other 4,661 329 86,864 (3,989 ) 87,865 Total expenses 16,114 329 647,573 (11,817 ) 652,199 Income (Loss) before income taxes (16,092 ) 7,484 11,774 — 3,166 Income taxes (6,184 ) 2,860 5,788 — 2,464 Net income (loss) from continuing operations (9,908 ) 4,624 5,986 — 702 Discontinued operations Income from discontinued operations — — 1,834 — 1,834 Income taxes — — 733 — 733 Net income from discontinued operations — — 1,101 — 1,101 Equity in earnings of subsidiaries 11,531 6,907 — (18,438 ) — Net income 1,623 11,531 7,087 (18,438 ) 1,803 Less net income attributable to non-controlling interest, net of tax — — 180 — 180 Net income attributable to Oppenheimer Holdings Inc. 1,623 11,531 6,907 (18,438 ) 1,623 Other comprehensive income — — 1,953 — 1,953 Total comprehensive income $ 1,623 $ 11,531 $ 8,860 $ (18,438 ) $ 3,576 |
Condensed Consolidating Balance Sheet | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF SEPTEMBER 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 479 $ 4,653 $ 32,399 $ — $ 37,531 Deposits with clearing organizations — — 53,956 — 53,956 Receivable from brokers, dealers and clearing organizations — — 205,031 — 205,031 Receivable from customers, net of allowance for credit losses of $859 — — 797,751 — 797,751 Income tax receivable 47,898 24,284 — (68,687 ) 3,495 Securities purchased under agreements to resell — — 1,502 — 1,502 Securities owned, including amounts pledged of $738,835, at fair value — 1,369 893,882 — 895,251 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,334 and $7,126, respectively — — 43,278 — 43,278 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $87,165 — 21,333 7,509 — 28,842 Subordinated loan receivable — 112,558 — (112,558 ) — Intangible assets — 400 31,700 — 32,100 Goodwill — — 137,889 — 137,889 Other assets 100 2,580 116,979 — 119,659 Deferred tax assets 66 116 19,654 (19,836 ) — Investment in subsidiaries 651,369 534,754 — (1,186,123 ) — Intercompany receivables 48,592 48,042 — (96,634 ) — Total assets $ 748,504 $ 750,089 $ 2,341,530 $ (1,483,838 ) $ 2,356,285 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 29,242 $ — $ 29,242 Bank call loans — — 3,000 — 3,000 Payable to brokers, dealers and clearing organizations — — 219,443 — 219,443 Payable to customers — — 351,750 — 351,750 Securities sold under agreements to repurchase — — 606,010 — 606,010 Securities sold but not yet purchased, at fair value — — 143,746 — 143,746 Accrued compensation — — 151,658 — 151,658 Accounts payable and other liabilities 3,495 31,945 60,380 — 95,820 Income tax payable 2,440 22,189 44,058 (68,687 ) — Senior secured notes, net of debt issuance cost of $969 199,031 — — — 199,031 Subordinated indebtedness — — 112,558 (112,558 ) — Deferred tax liabilities — — 32,544 (19,836 ) 12,708 Intercompany payables — 28,141 68,493 (96,634 ) — Total liabilities 204,966 82,275 1,822,882 (297,715 ) 1,812,408 Stockholders' equity Stockholders' equity attributable to Oppenheimer Holdings Inc. 543,538 667,814 518,309 (1,186,123 ) 543,538 Non-controlling interest — — 339 — 339 Total stockholders' equity 543,538 667,814 518,648 (1,186,123 ) 543,877 Total liabilities and stockholders' equity $ 748,504 $ 750,089 $ 2,341,530 $ (1,483,838 ) $ 2,356,285 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2017 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 7,442 $ 3,716 $ 36,996 $ — $ 48,154 Deposits with clearing organizations — — 42,222 — 42,222 Receivable from brokers, dealers and clearing organizations — — 187,115 — 187,115 Receivable from customers, net of allowance for credit losses of $769 — — 848,226 — 848,226 Income tax receivable 45,998 26,025 — (69,084 ) 2,939 Securities purchased under agreements to resell — — 658 — 658 Securities owned, including amounts pledged of $655,683, at fair value — 1,386 925,211 — 926,597 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,705 and $7,975, respectively — — 40,520 — 40,520 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $82,826 — 20,221 6,966 — 27,187 Subordinated loan receivable — 112,558 — (112,558 ) — Intangible assets — — 31,700 — 31,700 Goodwill — — 137,889 — 137,889 Other assets 133 2,573 142,604 — 145,310 Deferred tax assets 3,502 — 18,463 (21,965 ) — Investment in subsidiaries 622,824 507,747 — (1,130,571 ) — Intercompany receivables 52,149 83,437 — (135,586 ) — Total assets $ 732,048 $ 757,663 $ 2,418,570 $ (1,469,764 ) $ 2,438,517 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 42,412 $ — $ 42,412 Bank call loans — — 118,300 — 118,300 Payable to brokers, dealers and clearing organizations — — 211,483 — 211,483 Payable to customers — — 385,907 — 385,907 Securities sold under agreements to repurchase — — 586,478 — 586,478 Securities sold but not yet purchased, at fair value — — 94,486 — 94,486 Accrued compensation — — 173,116 — 173,116 Accounts payable and other liabilities 7,221 33,994 51,280 — 92,495 Income tax payable 2,440 22,189 44,455 (69,084 ) — Senior secured notes, net of debt issuance costs of $1,163 198,837 — — — 198,837 Subordinated indebtedness — — 112,558 (112,558 ) — Deferred tax liabilities — 17 33,040 (21,965 ) 11,092 Intercompany payables — 62,163 73,423 (135,586 ) — Total liabilities 208,498 118,363 1,926,938 (339,193 ) 1,914,606 Stockholders' equity Stockholders' equity attributable to Oppenheimer Holdings Inc. 523,550 639,300 491,271 (1,130,571 ) 523,550 Non-controlling interest — — 361 — 361 Total stockholders' equity 523,550 639,300 491,632 (1,130,571 ) 523,911 Total liabilities and stockholders' equity $ 732,048 $ 757,663 $ 2,418,570 $ (1,469,764 ) $ 2,438,517 |
Condensed Consolidating Statement of Cash Flows | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ (131 ) $ 1,337 $ 117,073 $ — $ 118,279 Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (6,654 ) — (6,654 ) Purchase of tangible assets — (400 ) — — (400 ) Proceeds from the settlement of Company-owned life insurance — — 284 — 284 Cash used in investing activities — (400 ) (6,370 ) — (6,770 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (4,373 ) — — — (4,373 ) Issuance of Class A non-voting common stock 70 — — — 70 Payments for employee taxes withheld related to vested share-based awards (2,529 ) — — — (2,529 ) Decrease in bank call loans, net — — (115,300 ) — (115,300 ) Cash used in financing activities (6,832 ) — (115,300 ) — (122,132 ) Net increase (decrease) in cash and cash equivalents (6,963 ) 937 (4,597 ) — (10,623 ) Cash and cash equivalents, beginning of the period 7,442 3,716 36,996 — 48,154 Cash and cash equivalents, end of the period $ 479 $ 4,653 $ 32,399 $ — $ 37,531 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ (34,449 ) $ 1,679 $ (1,616 ) $ — $ (34,386 ) Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (3,506 ) — (3,506 ) Proceeds from settlement of company-owned life insurance — — 1,194 — 1,194 Cash used in investing activities — — (2,312 ) — (2,312 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (4,394 ) — — — (4,394 ) Cash dividends paid to non-controlling interest — — (2,448 ) — (2,448 ) Repurchase of Class A non-voting common stock for cancellation (7,464 ) — — — (7,464 ) Payments for employee taxes withheld related to vested share-based awards (2,232 ) — — — (2,232 ) Issuance of senior secured notes 200,000 — — — 200,000 Redemption of senior secured notes (150,000 ) — — — (150,000 ) Debt issuance costs (1,183 ) — — — (1,183 ) Decrease in bank call loans, net — — (15,700 ) — (15,700 ) Cash provided by (used in) financing activities 34,727 — (18,148 ) — 16,579 Net increase (decrease) in cash and cash equivalents 278 1,679 (22,076 ) — (20,119 ) Cash and cash equivalents, beginning of the period 229 10,284 54,400 — 64,913 Cash and cash equivalents, end of the period $ 507 $ 11,963 $ 32,324 $ — $ 44,794 |
Organization - Additional Infor
Organization - Additional Information (Narrative) (Details) | 9 Months Ended | |
Sep. 30, 2018USD ($)office | Dec. 31, 2017USD ($) | |
Organization And Basis Of Presentation [Line Items] | ||
Ownership interest in subsidiary | 83.68% | |
Non-controlling interest | $ | $ 339,000 | $ 361,000 |
Americas | ||
Organization And Basis Of Presentation [Line Items] | ||
Number of offices providing services | office | 91 |
New Accounting Pronoucements -
New Accounting Pronoucements - Additional Information (Narrative) (Details) $ in Millions | Sep. 30, 2018USD ($)location |
New Accounting Pronouncements [Line Items] | |
Number of locations under operating leases | location | 100 |
Minimum [Member] | |
New Accounting Pronouncements [Line Items] | |
Operating Lease, Right-of-Use Asset | $ 170 |
Maximum [Member] | |
New Accounting Pronouncements [Line Items] | |
Operating Lease, Right-of-Use Asset | $ 190 |
Revenues from contracts with _3
Revenues from contracts with customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 220,228 | $ 659,664 | ||
Interest | 13,403 | $ 12,952 | 38,686 | $ 36,346 |
Principal transactions, net | (16) | 5,135 | 9,110 | 15,810 |
Other | 4,199 | 7,440 | ||
Total other sources of revenue | 17,586 | 55,236 | ||
Total revenue | 237,814 | 226,220 | 714,900 | 655,365 |
Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 68,370 | 212,837 | ||
Mutual fund income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,308 | 33,098 | ||
Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 78,154 | 232,972 | ||
Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 18,539 | 56,970 | ||
Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9,789 | 27,472 | ||
Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 30,053 | 84,203 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,015 | 12,112 | ||
Private Client | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 144,568 | 434,811 | ||
Interest | 9,469 | 27,820 | ||
Principal transactions, net | 675 | 807 | ||
Other | 3,371 | 5,292 | ||
Total other sources of revenue | 13,515 | 33,919 | ||
Total revenue | 158,083 | 147,428 | 468,730 | 425,069 |
Private Client | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 36,553 | 115,924 | ||
Private Client | Mutual fund income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 11,059 | 32,327 | ||
Private Client | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 60,516 | 180,426 | ||
Private Client | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,733 | 10,572 | ||
Private Client | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Private Client | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 30,053 | 84,203 | ||
Private Client | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,654 | 11,359 | ||
Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 17,870 | 53,219 | ||
Interest | 0 | 1 | ||
Principal transactions, net | 0 | 0 | ||
Other | 0 | 0 | ||
Total other sources of revenue | 0 | 1 | ||
Total revenue | 17,870 | 19,277 | 53,220 | 57,247 |
Asset Management | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Asset Management | Mutual fund income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 240 | 745 | ||
Asset Management | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 17,627 | 52,465 | ||
Asset Management | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Asset Management | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Asset Management | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Asset Management | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3 | 9 | ||
Capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 57,727 | 171,514 | ||
Interest | 3,678 | 10,146 | ||
Principal transactions, net | 6,423 | 15,804 | ||
Other | 302 | 401 | ||
Total other sources of revenue | 10,403 | 26,351 | ||
Total revenue | 68,130 | $ 58,808 | 197,865 | $ 168,418 |
Capital markets | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 31,807 | 96,826 | ||
Capital markets | Mutual fund income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4 | 11 | ||
Capital markets | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3 | 57 | ||
Capital markets | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 15,806 | 46,398 | ||
Capital markets | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9,789 | 27,472 | ||
Capital markets | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Capital markets | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 318 | 750 | ||
Corporate/Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 63 | 120 | ||
Interest | 256 | 719 | ||
Principal transactions, net | (7,114) | (7,501) | ||
Other | 526 | 1,747 | ||
Total other sources of revenue | (6,332) | (5,035) | ||
Total revenue | (6,269) | (4,915) | ||
Corporate/Other | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 10 | 87 | ||
Corporate/Other | Mutual fund income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5 | 15 | ||
Corporate/Other | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8 | 24 | ||
Corporate/Other | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Corporate/Other | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Corporate/Other | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Corporate/Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 40 | $ (6) |
Revenues from contracts with _4
Revenues from contracts with customers (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Jan. 01, 2018 | |
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 23,652 | $ 18,631 |
Deferred income, IRA fees | 1,169 | 0 |
Cost of Goods and Services Sold | 1,500 | |
Commission | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 2,867 | 2,007 |
Mutual Fund Income | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 7,364 | 7,779 |
Advisory fees | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 681 | 1,460 |
Bank Deposit Sweep Income | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 3,849 | 3,459 |
Investment Banking Fees | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 5,601 | 3,926 |
Other Income [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 3,290 | 0 |
Investment Banking Fees | ||
Capitalized Contract Cost [Line Items] | ||
Deferred income, IRA fees | 407 | 0 |
IRA fees | ||
Capitalized Contract Cost [Line Items] | ||
Deferred income, IRA fees | $ 762 | $ 0 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Earnings Per Share [Abstract] | |||||
Basic weighted average number of shares outstanding | 13,269,024 | 13,213,139 | 13,252,596 | 13,290,399 | |
Net dilutive effect of share-based awards, treasury method | [1] | 871,239 | 550,377 | 790,730 | 499,737 |
Diluted weighted average number of shares outstanding | 14,140,263 | 13,763,516 | 14,043,326 | 13,790,136 | |
Net income from continuing operations | $ 5,061 | $ 7,403 | $ 20,609 | $ 702 | |
Net income from discontinued operations | 0 | 461 | 0 | 1,101 | |
Net income | 5,061 | 7,864 | 20,609 | 1,803 | |
Net income attributable to non-controlling interest, net of tax | (10) | 75 | (22) | 180 | |
Net income attributable to Oppenheimer Holdings Inc. | $ 5,071 | $ 7,789 | $ 20,631 | $ 1,623 | |
Continuing operations (in dollars per share) | $ 0.38 | $ 0.56 | $ 1.56 | $ 0.05 | |
Discontinued operations (in dollars per share) | 0 | 0.03 | 0 | 0.07 | |
Net income per share | 0.38 | 0.59 | 1.56 | 0.12 | |
Continuing operations (in dollars per share) | 0.36 | 0.54 | 1.47 | 0.05 | |
Discontinued operations (in dollars per share) | 0 | 0.03 | 0 | 0.07 | |
Net loss per share (in dollars per share) | $ 0.36 | $ 0.57 | $ 1.47 | $ 0.12 | |
[1] | For both the three and nine months ended September 30, 2018, the diluted net income per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements (15,450 shares for both the three and nine months ended September 30, 2017).(2)Represents net income from discontinued operations less net income attributable to non-controlling interest, net of tax divided by weighted average number of shares outstanding. |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Class A Stock | ||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Number of anti-dilutive warrants, options and restricted shares, for the year | 4,050 | 15,450 | 4,050 | 15,450 |
Receivable from and Payable t_3
Receivable from and Payable to Brokers, Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Receivable from brokers, dealers and clearing organizations consists of: | ||
Securities borrowed | $ 114,795 | $ 132,368 |
Receivable from brokers | 31,396 | 19,298 |
Securities failed to deliver | 23,390 | 9,442 |
Clearing organizations | 29,026 | 24,361 |
Other | 6,424 | 1,646 |
Receivables from broker, dealers and clearing organizations | 205,031 | 187,115 |
Payable to brokers, dealers and clearing organizations consists of: | ||
Securities loaned | 197,332 | 180,270 |
Due to Correspondent Brokers | 2,004 | 1,567 |
Securities failed to receive | 18,102 | 17,559 |
Other | 2,005 | 12,087 |
Payable to brokers, dealers and clearing organizations | $ 219,443 | $ 211,483 |
Fair Value Measurements - Secur
Fair Value Measurements - Securities Owned and Securities Sold, But Not Yet Purchased at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Securities owned, including amounts pledged of $0 ($546,334 in 2015), at fair value | $ 895,251 | $ 926,597 |
Securities Sold | 143,746 | 94,486 |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 895,251 | 926,597 |
Corporate debt and other obligations | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Securities owned, including amounts pledged of $0 ($546,334 in 2015), at fair value | 14,400 | 12,538 |
Securities Sold | 4,061 | 4,357 |
Municipal obligations | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Securities owned, including amounts pledged of $0 ($546,334 in 2015), at fair value | 45,427 | 89,653 |
Convertible bonds | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Securities owned, including amounts pledged of $0 ($546,334 in 2015), at fair value | 34,013 | 23,216 |
Securities Sold | $ 7,356 | $ 10,109 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Level Three Principal Amount | $ 48,033,000 | $ 48,033,000 |
Valuation Adjustment For Level Three Asset and Liability | 4,196,000 | 4,196,000 |
Fair Value Of Level Three Assets and Liabilities | 43,837,000 | 43,837,000 |
Auction rate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Level Three Principal Amount | 40,800,000 | 40,800,000 |
Valuation Adjustment | 3,117,000 | 3,117,000 |
Fair Value | 37,683,000 | 37,683,000 |
Auction Rate Preferred Securities 01 [Member] | Auction rate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Level Three Principal Amount | 18,950,000 | 18,950,000 |
Valuation Adjustment | 2,697,000 | 2,697,000 |
Fair Value | 16,253,000 | $ 16,253,000 |
Fair Value Measurement, Valuation Techniques | Tender Offer (4) | |
Municipal Auction Rate Securities [Member] | Auction rate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Level Three Principal Amount | 75,000 | $ 75,000 |
Valuation Adjustment | 0 | 0 |
Fair Value | $ 75,000 | $ 75,000 |
Fair Value Measurement, Valuation Techniques | Par | |
Student Loan Auction Rate Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Spread To U S Treasury Rate | 1.20% | 1.20% |
U S Treasury Rate | 2.97% | 2.97% |
Student Loan Auction Rate Securities | Auction rate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Level Three Principal Amount | $ 275,000 | $ 275,000 |
Valuation Adjustment | 14,000 | 14,000 |
Fair Value | $ 261,000 | $ 261,000 |
Fair Value Measurement, Valuation Techniques | Discounted Cash Flow | |
Fair Value Input, Discount Rate | 4.17% | |
Fair Value Unobservable Inputs Duration | 5 years 6 months | |
Fair Value Unobservable Input Current Yield | 3.09% | 3.09% |
Student Loan Auction Rate Securities | Weighted Average [Member] | Auction rate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Input, Discount Rate | 4.17% | |
Fair Value Unobservable Inputs Duration | 5 years 6 months | |
Fair Value Unobservable Input Current Yield | 3.09% | 3.09% |
Auction Rate Preferred Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
U S Treasury Rate | 2.85% | 2.85% |
Auction Rate Preferred Securities | Auction rate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Level Three Principal Amount | $ 21,500,000 | $ 21,500,000 |
Valuation Adjustment | 406,000 | 406,000 |
Fair Value | $ 21,094,000 | $ 21,094,000 |
Fair Value Measurement, Valuation Techniques | Discounted Cash Flow | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Auction Rate Preferred Securities | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Spread To U S Treasury Rate | 110.00% | 110.00% |
Auction Rate Preferred Securities | Minimum [Member] | Auction rate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Input, Discount Rate | 3.14% | |
Fair Value Unobservable Input Current Yield | 2.38% | 2.38% |
Auction Rate Preferred Securities | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Spread To U S Treasury Rate | 150.00% | 150.00% |
Auction Rate Preferred Securities | Maximum [Member] | Auction rate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Input, Discount Rate | 4.28% | |
Fair Value Unobservable Input Current Yield | 3.46% | 3.46% |
Auction Rate Preferred Securities | Weighted Average [Member] | Auction rate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Input, Discount Rate | 4.26% | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Fair Value Unobservable Input Current Yield | 3.45% | 3.45% |
Fair Value, Valuation Scenario One [Member] | Auction rate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Sensitivity Analysis Of Fair Value Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities Change In Discount Rate | 25.00% | 25.00% |
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of Other than 10 or 20 Percent Adverse Change in Discount Rate | $ 126,000 | $ 126,000 |
Fair Value, Valuation Scenario Two [Member] | Auction rate securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Sensitivity Analysis Of Fair Value Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities Change In Discount Rate | 50.00% | 50.00% |
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of Other than 10 or 20 Percent Adverse Change in Discount Rate | $ 251,000 | $ 251,000 |
Auction Rate Securities Purchase Commitment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 1,078,000 | |
Level Three Principal Amount | 7,233,000 | 7,233,000 |
Valuation Adjustment For Level Three Liabilities | 1,079,000 | 1,079,000 |
Fair Value Of Level Three Liabilities | 6,154,000 | 6,154,000 |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities 01 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Level Three Principal Amount | 7,184,000 | 7,184,000 |
Valuation Adjustment For Level Three Liabilities | 1,078,000 | 1,078,000 |
Fair Value Of Level Three Liabilities | 6,106,000 | $ 6,106,000 |
Fair Value Measurement, Valuation Techniques | Tender Offer (4) | |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Level Three Principal Amount | 49,000 | $ 49,000 |
Valuation Adjustment For Level Three Liabilities | 1,000 | 1,000 |
Fair Value Of Level Three Liabilities | $ 48,000 | $ 48,000 |
Fair Value Measurement, Valuation Techniques | Discounted Cash Flow | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Input, Discount Rate | 3.14% | |
Fair Value Unobservable Input Current Yield | 2.38% | 2.38% |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Input, Discount Rate | 4.28% | |
Fair Value Unobservable Input Current Yield | 3.46% | 3.46% |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Input, Discount Rate | 4.26% | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Fair Value Unobservable Input Current Yield | 3.45% | 3.45% |
Fair Value Measurements - Inves
Fair Value Measurements - Investments in Company-Sponsored Funds (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Investment Holdings [Line Items] | |
Fair Value | $ 6,605 |
Unfunded Commitments | $ 1,400 |
Hedge Funds [Member] | |
Investment Holdings [Line Items] | |
Investment Redemption Notice Period Minimum | 30 days |
Investment Redemption Notice Period Maximum | 120 days |
Fair Value | $ 1,631 |
Unfunded Commitments | $ 0 |
Redemption Frequency | Annually |
Private Equity Funds | |
Investment Holdings [Line Items] | |
Investments Lock In Period | 10 years |
Fair Value | $ 4,974 |
Unfunded Commitments | $ 1,400 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash equivalents | $ 10,500 | $ 10,490 |
Deposits with clearing organizations | 31,291 | 34,293 |
Securities owned | ||
Securities owned, at fair value | 895,251 | 926,597 |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 895,251 | 926,597 |
Investments | 6,605 | |
Derivative contracts | ||
Total | 949,455 | 972,265 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 143,746 | 94,486 |
Derivative contracts: | ||
Derivative contracts | 14,048 | 1,388 |
Total | 157,794 | 95,874 |
Investments | ||
Securities owned | ||
Investments | 104 | 169 |
Equity Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 34,613 | 34,067 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 22,947 | 25,393 |
Money Market Funds [Member] | ||
Securities owned | ||
Securities owned, at fair value | 383 | |
Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 37,683 | 111,853 |
U.S. Treasury securities | ||
Securities owned | ||
Securities owned, at fair value | 701,261 | 640,337 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 107,031 | 53,425 |
US Government Agencies Debt Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 22,113 | 9,905 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 2 | 13 |
Sovereign obligations | ||
Securities owned | ||
Securities owned, at fair value | 2,964 | 608 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 1,179 | |
Corporate debt and other obligations | ||
Securities owned | ||
Securities owned, at fair value | 14,400 | 12,538 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 4,061 | 4,357 |
Mortgage and other asset-backed securities | ||
Securities owned | ||
Securities owned, at fair value | 2,777 | 4,037 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 2,349 | 10 |
Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 45,427 | 89,653 |
Convertible bonds | ||
Securities owned | ||
Securities owned, at fair value | 34,013 | 23,216 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 7,356 | 10,109 |
Level 1 | ||
ASSETS | ||
Cash equivalents | 10,500 | 10,490 |
Deposits with clearing organizations | 31,291 | 34,293 |
Securities owned | ||
Securities owned, at fair value | 750,562 | 677,798 |
Derivative contracts | ||
Total | 792,353 | 722,581 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 129,978 | 78,818 |
Derivative contracts: | ||
Derivative contracts | 711 | 766 |
Total | 130,689 | 79,584 |
Level 1 | Corporate equities | ||
Securities owned | ||
Securities owned, at fair value | 34,613 | 34,067 |
Level 1 | Equity Securities [Member] | ||
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 22,947 | 25,393 |
Level 1 | Money markets | ||
Securities owned | ||
Securities owned, at fair value | 383 | |
Level 1 | Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 0 | |
Level 1 | U.S. Treasury securities | ||
Securities owned | ||
Securities owned, at fair value | 701,261 | 640,337 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 107,031 | 53,425 |
Level 1 | US Government Agencies Debt Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 14,688 | 3,011 |
Level 2 | ||
Securities owned | ||
Securities owned, at fair value | 123,259 | 161,366 |
Derivative contracts | ||
Total | 135,568 | 162,082 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 13,768 | 15,668 |
Derivative contracts: | ||
Derivative contracts | 13,336 | 614 |
Total | 27,104 | 16,282 |
Level 2 | Equity Securities [Member] | ||
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | |
Level 2 | Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 16,253 | 24,455 |
Level 2 | US Government Agencies Debt Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 7,425 | 6,894 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 2 | 13 |
Level 2 | Sovereign obligations | ||
Securities owned | ||
Securities owned, at fair value | 2,964 | 608 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 1,179 | |
Level 2 | Corporate debt and other obligations | ||
Securities owned | ||
Securities owned, at fair value | 14,400 | 12,538 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 4,061 | 4,357 |
Level 2 | Mortgage and other asset-backed securities | ||
Securities owned | ||
Securities owned, at fair value | 2,777 | 4,037 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 2,349 | 10 |
Level 2 | Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 45,427 | 89,618 |
Level 2 | Convertible bonds | ||
Securities owned | ||
Securities owned, at fair value | 34,013 | 23,216 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 7,356 | 10,109 |
Level 3 | ||
Securities owned | ||
Securities owned, at fair value | 21,430 | 87,433 |
Derivative contracts | ||
Total | 21,534 | 87,602 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | |
Derivative contracts: | ||
Derivative contracts | 1 | 8 |
Total | 1 | 8 |
Level 3 | Investments | ||
Securities owned | ||
Investments | 104 | 169 |
Level 3 | Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 21,430 | 87,398 |
Level 3 | Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 35 | |
Auction Rate Securities Purchase Commitment | ||
Derivative contracts: | ||
Derivative contracts | 1,079 | 8 |
Auction Rate Securities Purchase Commitment | Level 2 | ||
Derivative contracts: | ||
Derivative contracts | 1,078 | |
Auction Rate Securities Purchase Commitment | Level 3 | ||
Derivative contracts: | ||
Derivative contracts | 1 | 8 |
TBAs | ||
Derivative contracts | ||
Derivative contracts, total | 12,309 | 716 |
Derivative contracts: | ||
Derivative contracts | 12,258 | 614 |
TBAs | Level 2 | ||
Derivative contracts | ||
Derivative contracts, total | 12,309 | 716 |
Derivative contracts: | ||
Derivative contracts | 12,258 | 614 |
Future [Member] | ||
Derivative contracts: | ||
Derivative contracts | 709 | 766 |
Future [Member] | Level 1 | ||
Derivative contracts: | ||
Derivative contracts | 709 | $ 766 |
Foreign exchange forward contracts | ||
Derivative contracts: | ||
Derivative contracts | 2 | |
Foreign exchange forward contracts | Level 1 | ||
Derivative contracts: | ||
Derivative contracts | $ 2 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments [Domain] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | $ (9) | |||
Assets Beginning Balance | 158 | |||
Purchases and Issuances | 0 | |||
Sales and Settlements | 0 | |||
Transfers In (Out) | 0 | |||
Assets Ending Balance | $ 167 | 167 | ||
Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | $ 0 | 1 | $ 5 | |
Assets Beginning Balance | 164 | 168 | 169 | |
Purchases and Issuances | 0 | |||
Sales and Settlements | 0 | |||
Transfers In (Out) | 60 | 60 | ||
Assets Ending Balance | 104 | 167 | 104 | 167 |
Auction rate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 2,163 | 161 | 2,218 | 983 |
Assets Beginning Balance | 72,621 | 107,170 | 87,398 | (84,926) |
Purchases and Issuances | (2,150) | (25) | (6,250) | 22,075 |
Sales and Settlements | (34,925) | (250) | (36,145) | (1,200) |
Transfers In (Out) | 16,253 | 33,855 | 0 | |
Assets Ending Balance | 21,430 | 106,784 | 21,430 | 106,784 |
Auction Rate Securities Purchase Commitment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 849 | |||
Assets Beginning Balance | 849 | |||
Purchases and Issuances | 0 | 0 | ||
Sales and Settlements | 0 | 0 | ||
Transfers In (Out) | (1,169) | 0 | ||
Assets Ending Balance | 0 | 0 | ||
Liabilities Beginning Balance | 131 | 254 | 8 | 645 |
Total Realized and Unrealized Gains (Loss), Liabilities | (948) | (22) | (1,162) | 369 |
Liabilities Ending Balance | 1 | 276 | 1 | 276 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 1,078 | |||
Municipal obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 1 | (14) | 9 | |
Assets Beginning Balance | 36 | 35 | 44 | |
Purchases and Issuances | (76) | 0 | ||
Sales and Settlements | (125) | 0 | ||
Transfers In (Out) | 0 | 0 | ||
Assets Ending Balance | $ 0 | $ 35 | $ 0 | $ 35 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets and Liabilities Not Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial Instruments, Estimate Not Practicable, Fair Value [Line Items] | ||
Securities purchased under agreements to resell, at fair value | $ 1,502 | $ 658 |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 895,251 | 926,597 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Financial Instruments, Estimate Not Practicable, Fair Value [Line Items] | ||
Other | 5,183 | 930 |
Receivable from customers | 797,751 | 848,226 |
Fair Value, Estimate Not Practicable, Investment | 68,585 | 65,404 |
Drafts payable | 29,242 | 42,212 |
Clearing organizations | 29,026 | 24,361 |
Securities loaned | 197,332 | 180,270 |
Fair Value, Estimate not Practicable, Due from Employees | 43,278 | 40,520 |
Total Receivable from brokers, dealers and clearing organizations | 203,790 | 186,399 |
Securities failed to receive | 18,102 | 17,559 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 2,004 | 1,567 |
Bank call loans | 3,000 | 118,300 |
Securities purchased under agreements to resell, at fair value | 1,502 | 658 |
Receivables from brokers | 31,396 | 19,298 |
Securities failed to deliver | 23,390 | 9,442 |
Securities borrowed | 114,795 | 132,368 |
Deposits with clearing organization | 22,665 | 7,929 |
Other | 106 | 10,707 |
Total payables to brokers, dealers and clearing organizations | 217,544 | 210,103 |
Payables to customers | 351,750 | 385,907 |
Fair Value,Estimate not Practicable, Securities sold under Agreements to Repurchase | 606,010 | 586,478 |
Fair Value, Estimate not Practicable, Senior Secured Notes | 202,938 | 206,380 |
Fair Value, Estimate Not Practicable, Cash | 27,031 | 37,664 |
Fair Value, Measurements, Nonrecurring [Member] | Carrying Value [Member] | ||
Financial Instruments, Estimate Not Practicable, Fair Value [Line Items] | ||
Other | 5,183 | 930 |
Receivable from customers | 797,751 | 848,226 |
Fair Value, Estimate Not Practicable, Investment | 68,585 | 65,404 |
Drafts payable | 29,242 | 42,212 |
Clearing organizations | 29,026 | 24,361 |
Securities loaned | 197,332 | 180,270 |
Fair Value, Estimate not Practicable, Due from Employees | 43,278 | 40,520 |
Total Receivable from brokers, dealers and clearing organizations | 203,790 | 186,399 |
Securities failed to receive | 18,102 | 17,559 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 2,004 | 1,567 |
Bank call loans | 3,000 | 118,300 |
Securities purchased under agreements to resell, at fair value | 1,502 | 658 |
Receivables from brokers | 31,396 | 19,298 |
Securities failed to deliver | 23,390 | 9,442 |
Securities borrowed | 114,795 | 132,368 |
Deposits with clearing organization | 22,665 | 7,929 |
Other | 106 | 10,707 |
Total payables to brokers, dealers and clearing organizations | 217,544 | 210,103 |
Payables to customers | 351,750 | 385,907 |
Fair Value,Estimate not Practicable, Securities sold under Agreements to Repurchase | 606,010 | 586,478 |
Fair Value, Estimate not Practicable, Senior Secured Notes | 200,000 | 200,000 |
Fair Value, Estimate Not Practicable, Cash | 27,031 | 37,664 |
Fair Value, Measurements, Nonrecurring [Member] | Level 1 | ||
Financial Instruments, Estimate Not Practicable, Fair Value [Line Items] | ||
Drafts payable | 29,242 | 42,212 |
Deposits with clearing organization | 22,665 | 7,929 |
Fair Value, Estimate Not Practicable, Cash | 27,031 | 37,664 |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 | ||
Financial Instruments, Estimate Not Practicable, Fair Value [Line Items] | ||
Other | 5,183 | 930 |
Receivable from customers | 797,751 | 848,226 |
Fair Value, Estimate Not Practicable, Investment | 68,585 | 65,404 |
Clearing organizations | 29,026 | 24,361 |
Securities loaned | 197,332 | 180,270 |
Fair Value, Estimate not Practicable, Due from Employees | 43,278 | 40,520 |
Total Receivable from brokers, dealers and clearing organizations | 203,790 | 186,399 |
Securities failed to receive | 18,102 | 17,559 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 2,004 | 1,567 |
Bank call loans | 3,000 | 118,300 |
Securities purchased under agreements to resell, at fair value | 1,502 | 658 |
Receivables from brokers | 31,396 | 19,298 |
Securities failed to deliver | 23,390 | 9,442 |
Securities borrowed | 114,795 | 132,368 |
Other | 106 | 10,707 |
Total payables to brokers, dealers and clearing organizations | 217,544 | 210,103 |
Payables to customers | 351,750 | 385,907 |
Fair Value,Estimate not Practicable, Securities sold under Agreements to Repurchase | 606,010 | 586,478 |
Fair Value, Estimate not Practicable, Senior Secured Notes | $ 202,938 | $ 206,380 |
Fair Value Measurements - Notio
Fair Value Measurements - Notional Amounts and Fair Values of Derivatives by Product (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Derivatives asset, Notional | $ 596,931 | $ 65,576 | |
Derivatives asset, Fair Value | 12,309 | 716 | |
Derivative liability, notional | 4,324,364 | 5,920,568 | |
Derivative liability, Fair Value | 14,048 | 1,388 | |
To Be Announced Security [Member] | Other Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives asset, Notional | 568,430 | 26,000 | |
Derivatives asset, Fair Value | 11,057 | 22 | |
Derivative liability, notional | 568,430 | 26,000 | |
Derivative liability, Fair Value | 11,068 | 22 | |
Other TBA Contracts [Member] | Other Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives asset, Notional | 28,501 | 39,576 | |
Derivatives asset, Fair Value | 1,252 | 694 | |
Derivative liability, notional | 28,501 | 39,576 | |
Derivative liability, Fair Value | 1,190 | 592 | |
Future [Member] | Commodity Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional | 3,720,000 | 5,844,000 | [1] |
Derivative liability, Fair Value | 709 | 766 | [1] |
Foreign exchange forward contracts | Other Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional | 200 | ||
Derivative liability, Fair Value | 2 | ||
Auction Rate Securities Purchase Commitment | Other Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional | 7,233 | 10,992 | |
Derivative liability, Fair Value | $ 1,079 | $ 8 | |
[1] | For both the three and nine months ended September 30, 2018, the diluted net income per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements (15,450 shares for both the three and nine months ended September 30, 2017).(2)Represents net income from discontinued operations less net income attributable to non-controlling interest, net of tax divided by weighted average number of shares outstanding. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Amounts of Derivative Instruments and their Effect on Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | $ (307) | $ (138) | $ 1,168 | $ (758) |
Commodity Contracts | Principal Transaction Revenue | Future [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | 413 | (20) | 1,764 | 214 |
Other Contracts | Principal Transaction Revenue | TBAs | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | 73 | (26) | 269 | (184) |
Other Contracts | Principal Transaction Revenue | Auction Rate Securities Purchase Commitment | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | (857) | (22) | (1,071) | (480) |
Other Contracts | Other Income [Member] | Other TBA Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | 62 | (70) | 209 | (320) |
Other Contracts | Other Income [Member] | Foreign exchange forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | $ 2 | $ 0 | $ (3) | $ 12 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Level Three Principal Amount | $ 48,033 | $ 48,033 | |
Securities owned, at fair value | 895,251 | $ 895,251 | $ 926,597 |
Forward or delayed delivery of the underlying instrument with settlement | 180 days | ||
Valuation Adjustment For Level Three Asset and Liability | 4,196 | $ 4,196 | |
Fair Value Of Level Three Assets and Liabilities | 43,837 | 43,837 | |
Equity Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities owned, at fair value | 34,613 | 34,613 | 34,067 |
Auction rate securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Level Three Principal Amount | 40,800 | 40,800 | |
Securities owned, at fair value | 37,683 | 37,683 | $ 111,853 |
Valuation adjustment (unrealized loss) for ARS | (3,117) | (3,117) | |
Total amount of ARS the firm purchased and hold | 40,800 | ||
Fair Value Of Level Three Assets | $ 37,683 | $ 37,683 | |
Maximum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities Committed To Purchase Period | 2,020 | ||
Hedge Funds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment Redemption Notice Period Minimum | 30 days | ||
Investment Redemption Notice Period Maximum | 120 days | ||
Private Equity Funds [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investments Lock In Period | 10 years | ||
Fair Value, Valuation Scenario One [Member] | Auction rate securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Basis point | 25.00% | 25.00% | |
Fair Value, Valuation Scenario Two [Member] | Auction rate securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Basis point | 50.00% | 50.00% | |
Auction Rate Preferred Securities 01 [Member] | Auction rate securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Level Three Principal Amount | $ 18,950 | $ 18,950 | |
Valuation adjustment (unrealized loss) for ARS | (2,697) | (2,697) | |
Fair Value Of Level Three Assets | 16,253 | 16,253 | |
Total Losses from Tender Offer | 8,100 | ||
Realized losses on auction rate securities | 4,600 | ||
Unrealized losses on auction rate securities | 3,500 | ||
Municipal Auction Rate Securities [Member] | Auction rate securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Level Three Principal Amount | 75 | 75 | |
Valuation adjustment (unrealized loss) for ARS | 0 | 0 | |
Fair Value Of Level Three Assets | $ 75 | $ 75 | |
Auction Rate Preferred Securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
U S Treasury Rate | 2.85% | 2.85% | |
Auction Rate Preferred Securities | Auction rate securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Level Three Principal Amount | $ 21,500 | $ 21,500 | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | ||
Valuation adjustment (unrealized loss) for ARS | (406) | $ (406) | |
Fair Value Of Level Three Assets | $ 21,094 | $ 21,094 | |
Auction Rate Preferred Securities | Weighted Average [Member] | Auction rate securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value Unobservable Inputs Duration | 2 years 6 months | ||
Fair Value Unobservable Input Current Yield | 3.45% | 3.45% | |
Auction Rate Preferred Securities | Minimum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Spread To U S Treasury Rate | 110.00% | 110.00% | |
Auction Rate Preferred Securities | Minimum [Member] | Auction rate securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value Unobservable Input Current Yield | 2.38% | 2.38% | |
Auction Rate Preferred Securities | Maximum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Spread To U S Treasury Rate | 150.00% | 150.00% | |
Auction Rate Preferred Securities | Maximum [Member] | Auction rate securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value Unobservable Input Current Yield | 3.46% | 3.46% | |
Student Loan Auction Rate Securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Spread To U S Treasury Rate | 1.20% | 1.20% | |
U S Treasury Rate | 2.97% | 2.97% | |
Student Loan Auction Rate Securities | Auction rate securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Level Three Principal Amount | $ 275 | $ 275 | |
Fair Value Unobservable Inputs Duration | 5 years 6 months | ||
Valuation adjustment (unrealized loss) for ARS | $ (14) | $ (14) | |
Fair Value Unobservable Input Current Yield | 3.09% | 3.09% | |
Fair Value Of Level Three Assets | $ 261 | $ 261 | |
Student Loan Auction Rate Securities | Weighted Average [Member] | Auction rate securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value Unobservable Inputs Duration | 5 years 6 months | ||
Fair Value Unobservable Input Current Yield | 3.09% | 3.09% | |
Auction Rate Securities Purchase Commitment | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Level Three Principal Amount | $ 7,233 | $ 7,233 | |
Auction Rate Securities Committed To Purchase From Client | 7,200 | ||
Valuation Adjustment For Level Three Liabilities | 1,079 | 1,079 | |
Fair Value Of Level Three Liabilities | 6,154 | 6,154 | |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities 01 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Level Three Principal Amount | 7,184 | 7,184 | |
Valuation Adjustment For Level Three Liabilities | 1,078 | 1,078 | |
Fair Value Of Level Three Liabilities | 6,106 | 6,106 | |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Level Three Principal Amount | 49 | $ 49 | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | ||
Valuation Adjustment For Level Three Liabilities | 1 | $ 1 | |
Fair Value Of Level Three Liabilities | $ 48 | $ 48 | |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | Weighted Average [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value Unobservable Inputs Duration | 2 years 6 months | ||
Fair Value Unobservable Input Current Yield | 3.45% | 3.45% | |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | Minimum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value Unobservable Input Current Yield | 2.38% | 2.38% | |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | Maximum [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value Unobservable Input Current Yield | 3.46% | 3.46% |
Collateralized Transactions - S
Collateralized Transactions - Schedule of Gross Amounts and Offsetting Amounts of Reverse Repurchase Agreements, Repurchase Agreements, Securities Borrowed and Securities Lending Transactions (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Reverse repurchase agreements | ||
Gross Amounts of Recognized Assets | $ 100,983 | $ 200,712 |
Gross Amounts Offset on the Balance Sheet | (99,481) | (200,054) |
Net Amounts of Assets Presented on the Balance Sheet | 1,502 | 658 |
Financial Instruments | (1,495) | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | 7 | 658 |
Securities borrowed | ||
Gross Amounts of Recognized Assets | 114,795 | 132,368 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented on the Balance Sheet | 114,795 | 132,368 |
Financial Instruments | (110,123) | (128,575) |
Cash Collateral Received | 0 | 0 |
Net Amount | 4,672 | 3,793 |
Total | ||
Gross Amounts of Recognized Assets | 215,778 | 333,080 |
Gross Amounts Offset on the Balance Sheet | (99,481) | (200,054) |
Net Amounts of Assets Presented on the Balance Sheet | 116,297 | 133,026 |
Financial Instruments | (111,618) | (128,575) |
Cash Collateral Received | 0 | 0 |
Net Amount | 4,679 | 4,451 |
Repurchase agreements | ||
Gross Amounts of Recognized Liabilities | 705,491 | 786,532 |
Gross Amounts Offset on the Balance Sheet | (99,481) | (200,054) |
Net Amounts of Liabilities Presented on the Balance Sheet | 606,010 | 586,478 |
Financial Instruments | (603,961) | (585,289) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 2,049 | 1,189 |
Securities loaned | ||
Gross Amounts of Recognized Liabilities | 197,332 | 180,270 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented on the Balance Sheet | 197,332 | 180,270 |
Financial Instruments | (189,961) | (170,176) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 7,371 | 10,094 |
Total | ||
Gross Amounts of Recognized Liabilities | 902,823 | 966,802 |
Gross Amounts Offset on the Balance Sheet | (99,481) | (200,054) |
Net Amounts of Liabilities Presented on the Balance Sheet | 803,342 | 766,748 |
Financial Instruments | (793,922) | (755,465) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | $ 9,420 | $ 11,283 |
Collateralized Transactions - A
Collateralized Transactions - Additional Information (Narrative) (Details) | 9 Months Ended | |
Sep. 30, 2018USD ($)dealer | Dec. 31, 2017USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 705,491,000 | $ 786,532,000 |
Gross Amounts of Recognized Liabilities | 197,332,000 | 180,270,000 |
Bank call loans | 3,000,000 | 118,300,000 |
Customer Securities for which Entity has Right to Sell or Repledge, Fair Value | 1,100,000,000 | |
Customer securities under customer margin loans agreement available to be repledged | 169,900,000 | |
Outstanding letters of credit | 0 | |
Amounts pledged | 738,835,000 | 655,683,000 |
Carrying value of securities owned by the Company loaned or pledged | $ 3,300,000 | 97,200,000 |
Number of broker-dealers | dealer | 5 | |
Receivable from brokers and clearing organizations | $ 84,300,000 | |
Securities Sold under Agreements to Repurchase, Asset | 99,481,000 | 200,054,000 |
Securities Sold under Agreements to Repurchase, Amount Not Offset Against Collateral | 606,010,000 | 586,478,000 |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Securities | 603,961,000 | 585,289,000 |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash | 0 | 0 |
Securities Sold under Agreements to Repurchase, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 2,049,000 | 1,189,000 |
Securities Loaned, Asset | 0 | 0 |
Securities Loaned, Amount Not Offset Against Collateral | 197,332,000 | 180,270,000 |
Securities Loaned, Collateral, Right to Reclaim Securities | 189,961,000 | 170,176,000 |
Securities Loaned, Collateral, Right to Reclaim Cash | 0 | 0 |
Securities Loaned, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 7,371,000 | 10,094,000 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 902,823,000 | 966,802,000 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Asset | 99,481,000 | 200,054,000 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Amount Not Offset Against Collateral | 803,342,000 | 766,748,000 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Securities | 793,922,000 | 755,465,000 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 9,420,000 | 11,283,000 |
Reverse Repurchase Agreements | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities received as collateral under securities borrowed transaction with market value | 100,600,000 | 221,600,000 |
Securities Loaned [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer securities under customer margin loans agreement available to be repledged | 18,100,000 | 30,900,000 |
Repurchase Agreements [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer securities under customer margin loans agreement available to be repledged | 100,600,000 | 221,600,000 |
Securities Borrowed Transactions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities received as collateral under securities borrowed transaction with market value | 110,700,000 | $ 127,200,000 |
Maturity Overnight and on Demand [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 902,823,000 | |
Short-term Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Collateralized loans, collateralized by firm | 3,300,000 | |
Collateralized loans, collateralized by customer securities | $ 311,800,000 | |
Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of business days for related transactions | 1 day | |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of business days for related transactions | 2 days | |
Options Clearing Corporation [Domain] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer securities under customer margin loans agreement available to be repledged | $ 287,000,000 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Total VIE Assets | $ 345,383 | $ 343,840 |
Carrying Value of Variable Interest Assets | 354 | 725 |
Capital Commitments | 1 | 2 |
Maximum Exposure to Loss in Non- consolidated VIEs | 355 | 727 |
Private Equity Funds | ||
Variable Interest Entity [Line Items] | ||
Total VIE Assets | 9,174 | 15,668 |
Carrying Value of Variable Interest Assets | 12 | 12 |
Carrying Value of Variable Interest Liabilities | 0 | 0 |
Capital Commitments | 1 | 2 |
Maximum Exposure to Loss in Non- consolidated VIEs | 13 | 14 |
Hedge Funds [Member] | ||
Variable Interest Entity [Line Items] | ||
Total VIE Assets | 336,209 | 328,172 |
Carrying Value of Variable Interest Assets | 342 | 713 |
Carrying Value of Variable Interest Liabilities | 0 | 0 |
Capital Commitments | 0 | 0 |
Maximum Exposure to Loss in Non- consolidated VIEs | $ 342 | $ 713 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 200,000 | $ 200,000 |
Unamortized debt issuance expense | (969) | (1,163) |
Long-term debt | $ 199,031 | $ 198,837 |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 1, 2022 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Narrative) (Details) - USD ($) $ in Thousands | Jun. 23, 2017 | Apr. 15, 2017 | Apr. 15, 2014 | Apr. 12, 2011 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Sep. 19, 2017 |
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 199,031 | $ 199,031 | $ 198,837 | |||||||
6.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Private placement date | Jun. 23, 2017 | |||||||||
Debt Instrument, Face Amount | $ 200,000 | |||||||||
Interest rate | 6.75% | |||||||||
Debt Issuance Costs, Gross | $ 4,300 | |||||||||
Interest expense on note | 3,400 | $ 3,400 | 10,100 | $ 3,700 | ||||||
Debt Instrument, Issue Price Percentage | 100.00% | |||||||||
Percentage of Notes Registered under the Securities Act of 1933 | 99.80% | |||||||||
8.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Private placement date | Apr. 12, 2011 | |||||||||
Debt Instrument, Face Amount | $ 200,000 | |||||||||
Interest rate | 8.75% | |||||||||
Extinguishment of Debt, Amount | $ 120,000 | $ 30,000 | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||
Term of payments of interest on notes | semi-annually | |||||||||
Extinguishment of Debt, Amount | $ 50,000 | |||||||||
Interest expense on note | $ 0 | $ 6,700 | ||||||||
Debt Instrument, Issue Price Percentage | 100.00% | |||||||||
Oppenheimer [Member] | 6.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Issuance Costs, Gross | $ 3,000 | |||||||||
Third Party [Member] | 6.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Issuance Costs, Gross | $ 1,300 | |||||||||
Maximum [Member] | 6.75% Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Restrictive Covenants Exception for Dividend or Distribution Amount during fiscal year | 20,000 | |||||||||
Restrictive Covenants Exception for total Dividend Payment and other Restricted Payments | $ 10,000 | $ 10,000 |
Share Capital - Changes in Numb
Share Capital - Changes in Number of Shares of Class A Stock Outstanding (Details) - Class A Stock - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Class A Stock outstanding, beginning of period | 13,156,353 | 13,132,775 | 13,139,203 | 13,261,095 |
Issued pursuant to shared-based compensation plans | 21,578 | 19,883 | 38,728 | 198,903 |
Repurchased and canceled pursuant to the stock buy-back | 0 | 143,010 | 0 | 450,350 |
Class A Stock outstanding, end of period | 13,177,931 | 13,009,648 | 13,177,931 | 13,009,648 |
Share Capital - Additional Info
Share Capital - Additional Information (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | May 05, 2017 | Dec. 31, 2016 | Sep. 15, 2015 | |
Class of Stock [Line Items] | ||||||||||
Amounts pledged | $ 738,835 | $ 738,835 | $ 655,683 | |||||||
Preferred stock, authorized | 50,000,000 | 50,000,000 | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, issued | 0 | 0 | ||||||||
Class A Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Common Stock, outstanding | 13,177,931 | 13,009,648 | 13,177,931 | 13,009,648 | 13,156,353 | 13,139,203 | 13,132,775 | 13,178,571 | 13,261,095 | |
Common Stock, Shares, Issued | 13,177,931 | 13,177,931 | 13,139,203 | |||||||
Repurchase and cancelled stock | 0 | 143,010 | 0 | 450,350 | ||||||
Class B Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, authorized | 99,665 | 99,665 | 99,665 | |||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Common Stock, outstanding | 99,665 | 99,665 | 99,665 | |||||||
Common Stock, Shares, Issued | 99,665 | 99,665 | 99,665 | |||||||
Previous Program [Member] | Class A Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of class A common stock | 665,000 | |||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 40,734 | |||||||||
New Program [Member] | Class A Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of class A common stock | 650,000 | |||||||||
Stock Repurchase Program Percentage Of Shares Repurchase Of Outstanding Share | 5.00% | |||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 508,906 | 508,906 | 690,734 | |||||||
Common Stock, Shares, Issued | 13,178,571 |
Income taxes (Details)
Income taxes (Details) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 29.20% | 37.40% |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Eligible Investor Subject To Future Buyback Principal Value | $ 7,700,000 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 0 |
Eligible Investor Subject To Future Buyback Potential Additional Losses Related To Valuation Adjustments | 0 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 30,000,000 |
Auction Rate Securities [Member] | |
Loss Contingencies [Line Items] | |
Amount Of Auction Rate Securities Firm Purchased And Hold | 40,800,000 |
Auction Rate Securities Purchase Commitment [Member] | |
Loss Contingencies [Line Items] | |
Auction Rate Securities Committed To Purchase From Client | $ 7,200,000 |
Regulatory Requirements - Addit
Regulatory Requirements - Additional Information (Narrative) (Details) | 1 Months Ended | 9 Months Ended | |
Dec. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | |
Oppenheimer [Member] | |||
Regulatory Capital Requirements [Line Items] | |||
Required percentage of net capital to aggregate customer-related debit items | $ 0.02 | ||
Net Capital as Reported in Entity's Part II Unaudited FOCUS Report | $ 184,300,000 | ||
Aggregate indebtedness | 19.11% | ||
Excess capital | $ 165,000,000 | ||
Freedom | |||
Regulatory Capital Requirements [Line Items] | |||
Net Capital as Reported in Entity's Part II Unaudited FOCUS Report | $ 5,300,000 | ||
Aggregate indebtedness | 6.67% | ||
Freedom maintain net capital equal to the greater | $ 100,000 | ||
Net capital in excess of minimum required | $ 5,200,000 | ||
Oppenheimer Europe Ltd | |||
Regulatory Capital Requirements [Line Items] | |||
Common Equity Tier 1 Ratio | 15.27% | 15.27% | |
Common Equity Tier 1 Ratio Required | 4.50% | 4.50% | |
Tier 1 Capital Ratio | 15.27% | 15.27% | |
Tier 1 Capital Ratio Required | 6.00% | 6.00% | |
Total Capital Ratio | 15.81% | 15.81% | |
Total Capital Ratio Required | 8.00% | 8.00% | |
Regulatory capital required to be maintained | € | € 730,000 | ||
Oppenheimer Investments Asia Ltd. | |||
Regulatory Capital Requirements [Line Items] | |||
Regulatory capital required to be maintained | $ 383,000 | ||
Net capital | 1,900,000 | ||
Excess Liquid Capital under Hong Kong SFC Rules | $ 1,500,000 | ||
Oppenheimer Europe Ltd | |||
Regulatory Capital Requirements [Line Items] | |||
Contributions to subsidiary | $ 7,000,000 |
Segment Information - Reported
Segment Information - Reported Revenue and Profit Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue | ||||
Total revenue | $ (237,814) | $ (226,220) | $ (714,900) | $ (655,365) |
Income (loss) before income taxes | ||||
Income before income taxes from continuing operations | 7,144 | 11,828 | 29,270 | 3,166 |
Private Client Division | ||||
Revenue | ||||
Total revenue | (158,083) | (147,428) | (468,730) | (425,069) |
Income (loss) before income taxes | ||||
Income before income taxes from continuing operations | $ 37,608 | 36,950 | 111,283 | 93,763 |
Asset management fees | 90.00% | |||
Asset Management | ||||
Revenue | ||||
Total revenue | $ (17,870) | (19,277) | (53,220) | (57,247) |
Income (loss) before income taxes | ||||
Income before income taxes from continuing operations | $ 4,127 | 3,338 | 11,803 | 11,130 |
Asset management fees | 10.00% | |||
Capital markets | ||||
Revenue | ||||
Total revenue | $ (68,130) | (58,808) | (197,865) | (168,418) |
Income (loss) before income taxes | ||||
Income before income taxes from continuing operations | (2,076) | (1,639) | (8,332) | (25,235) |
Corporate/Other | ||||
Revenue | ||||
Total revenue | 6,269 | (707) | 4,915 | (4,631) |
Income (loss) before income taxes | ||||
Income before income taxes from continuing operations | $ (32,515) | $ (26,821) | $ (85,484) | $ (76,492) |
Segment Information - Revenue C
Segment Information - Revenue Classified by Major Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 237,814 | $ 226,220 | $ 714,900 | $ 655,365 |
Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 230,486 | 217,900 | 690,569 | 625,615 |
Europe/Middle East | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 6,500 | 7,655 | 21,245 | 27,019 |
Asia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 828 | $ 665 | $ 3,086 | $ 2,731 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Narrative) (Details) - Subsequent Event [Member] - $ / shares | Nov. 23, 2018 | Nov. 09, 2018 | Oct. 26, 2018 |
Subsequent Events [Line Items] | |||
Date of announcement of dividend | Oct. 26, 2018 | ||
Date of payment of dividend | Nov. 23, 2018 | ||
Date of record of dividend | Nov. 9, 2018 | ||
Class A Stock | |||
Subsequent Events [Line Items] | |||
Quarterly dividend payable amount per share | $ 0.11 | ||
Class B Stock | |||
Subsequent Events [Line Items] | |||
Quarterly dividend payable amount per share | $ 0.11 |
Supplemental Guarantor Condense
Supplemental Guarantor Condensed Consolidated Financial Statements - Additional Information (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Jun. 23, 2017 | Apr. 12, 2011 | |
Condensed Consolidated financial statements [Line Items] | |||
Interest owned by the holding company | 100.00% | ||
Secured Debt [Member] | 6.75% Senior Secured Notes [Member] | |||
Condensed Consolidated financial statements [Line Items] | |||
Debt Instrument, Face Amount | $ 200 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||
Secured Debt [Member] | 8.75% Senior Secured Notes [Member] | |||
Condensed Consolidated financial statements [Line Items] | |||
Debt Instrument, Face Amount | $ 200 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% |
Supplemental Guarantor Conden_2
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 37,531,000 | $ 48,154,000 | $ 44,794,000 | $ 64,913,000 |
Deposits with clearing organizations | 53,956,000 | 42,222,000 | ||
Receivable from brokers, dealers and clearing organizations | 205,031,000 | 187,115,000 | ||
Receivable from customers, net of allowance for credit losses of $859 ($769 in 2017) | 797,751,000 | 848,226,000 | ||
Income tax receivable | 3,495,000 | 2,939,000 | ||
Securities purchased under agreements to resell, at fair value | 1,502,000 | 658,000 | ||
Securities owned, at fair value | 895,251,000 | 926,597,000 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,334 and $7,126, respectively ($24,705 and $7,975, respectively, in 2017) | 43,278,000 | 40,520,000 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 28,842,000 | 27,187,000 | ||
Subordinated loan receivable | 0 | 0 | ||
Intangible assets | 32,100,000 | 31,700,000 | ||
Goodwill | 137,889,000 | 137,889,000 | ||
Other assets | 119,659,000 | 145,310,000 | ||
Deferred tax assets | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 2,356,285,000 | 2,438,517,000 | ||
Liabilities | ||||
Drafts payable | 29,242,000 | 42,412,000 | ||
Bank call loans | 3,000,000 | 118,300,000 | ||
Payable to brokers, dealers and clearing organizations | 219,443,000 | 211,483,000 | ||
Payable to customers | 351,750,000 | 385,907,000 | ||
Securities sold under agreements to repurchase | 606,010,000 | 586,478,000 | ||
Securities sold but not yet purchased, at fair value | 143,746,000 | 94,486,000 | ||
Accrued compensation | 151,658,000 | 173,116,000 | ||
Accounts payable and other liabilities | 95,820,000 | 92,495,000 | ||
Income tax payable | 0 | 0 | ||
Senior secured notes, net of debt issuance costs of $969 ($1,163 in 2017) | 199,031,000 | 198,837,000 | ||
Subordinated indebtedness | 0 | 0 | ||
Deferred tax liabilities, net | 12,708,000 | 11,092,000 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 1,812,408,000 | 1,914,606,000 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 543,538,000 | 523,550,000 | ||
Non-controlling interest | 339,000 | 361,000 | ||
Total stockholders' equity | 543,877,000 | 523,911,000 | 504,775,000 | |
Total liabilities and stockholders' equity | 2,356,285,000 | 2,438,517,000 | ||
Allowance for credit losses | 859,000 | 769,000 | ||
Amounts pledged | 738,835,000 | 655,683,000 | ||
Notes Receivable, Net Accumulated Amortization | 24,334,000 | 24,705,000 | ||
Notes Receivable, Net Allowance for Uncollectibles | 7,126,000 | 7,975,000 | ||
Net accumulated depreciation | 87,165,000 | 82,826,000 | ||
Unamortized debt issuance expense | 969,000 | 1,163,000 | ||
Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Deposits with clearing organizations | 0 | 0 | ||
Receivable from brokers, dealers and clearing organizations | 0 | 0 | ||
Receivable from customers, net of allowance for credit losses of $859 ($769 in 2017) | 0 | 0 | ||
Income tax receivable | (68,687,000) | (69,084,000) | ||
Securities purchased under agreements to resell, at fair value | 0 | 0 | ||
Securities owned, at fair value | 0 | 0 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,334 and $7,126, respectively ($24,705 and $7,975, respectively, in 2017) | 0 | 0 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 0 | 0 | ||
Subordinated loan receivable | (112,558,000) | (112,558,000) | ||
Intangible assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 0 | 0 | ||
Deferred tax assets | (19,836,000) | (21,965,000) | ||
Investment in subsidiaries | (1,186,123,000) | (1,130,571,000) | ||
Intercompany receivables | (96,634,000) | (135,586,000) | ||
Total assets | (1,483,838,000) | (1,469,764,000) | ||
Liabilities | ||||
Drafts payable | 0 | 0 | ||
Bank call loans | 0 | 0 | ||
Payable to brokers, dealers and clearing organizations | 0 | 0 | ||
Payable to customers | 0 | 0 | ||
Securities sold under agreements to repurchase | 0 | 0 | ||
Securities sold but not yet purchased, at fair value | 0 | 0 | ||
Accrued compensation | 0 | 0 | ||
Accounts payable and other liabilities | 0 | 0 | ||
Income tax payable | (68,687,000) | (69,084,000) | ||
Senior secured notes, net of debt issuance costs of $969 ($1,163 in 2017) | 0 | 0 | ||
Subordinated indebtedness | (112,558,000) | (112,558,000) | ||
Deferred tax liabilities, net | (19,836,000) | (21,965,000) | ||
Intercompany payables | (96,634,000) | (135,586,000) | ||
Total liabilities | (297,715,000) | (339,193,000) | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | (1,186,123,000) | (1,130,571,000) | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' equity | (1,186,123,000) | (1,130,571,000) | ||
Total liabilities and stockholders' equity | (1,483,838,000) | (1,469,764,000) | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 4,653,000 | 3,716,000 | 11,963,000 | 10,284,000 |
Deposits with clearing organizations | 0 | 0 | ||
Receivable from brokers, dealers and clearing organizations | 0 | 0 | ||
Receivable from customers, net of allowance for credit losses of $859 ($769 in 2017) | 0 | 0 | ||
Income tax receivable | 24,284,000 | 26,025,000 | ||
Securities purchased under agreements to resell, at fair value | 0 | 0 | ||
Securities owned, at fair value | 1,369,000 | 1,386,000 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,334 and $7,126, respectively ($24,705 and $7,975, respectively, in 2017) | 0 | 0 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 21,333,000 | 20,221,000 | ||
Subordinated loan receivable | 112,558,000 | 112,558,000 | ||
Intangible assets | 400,000 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 2,580,000 | 2,573,000 | ||
Deferred tax assets | 116,000 | 0 | ||
Investment in subsidiaries | 534,754,000 | 507,747,000 | ||
Intercompany receivables | 48,042,000 | 83,437,000 | ||
Total assets | 750,089,000 | 757,663,000 | ||
Liabilities | ||||
Drafts payable | 0 | 0 | ||
Bank call loans | 0 | 0 | ||
Payable to brokers, dealers and clearing organizations | 0 | 0 | ||
Payable to customers | 0 | 0 | ||
Securities sold under agreements to repurchase | 0 | 0 | ||
Securities sold but not yet purchased, at fair value | 0 | 0 | ||
Accrued compensation | 0 | 0 | ||
Accounts payable and other liabilities | 31,945,000 | 33,994,000 | ||
Income tax payable | 22,189,000 | 22,189,000 | ||
Senior secured notes, net of debt issuance costs of $969 ($1,163 in 2017) | 0 | 0 | ||
Subordinated indebtedness | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 17,000 | ||
Intercompany payables | 28,141,000 | 62,163,000 | ||
Total liabilities | 82,275,000 | 118,363,000 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 667,814,000 | 639,300,000 | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' equity | 667,814,000 | 639,300,000 | ||
Total liabilities and stockholders' equity | 750,089,000 | 757,663,000 | ||
Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 32,399,000 | 36,996,000 | 32,324,000 | 54,400,000 |
Deposits with clearing organizations | 53,956,000 | 42,222,000 | ||
Receivable from brokers, dealers and clearing organizations | 205,031,000 | 187,115,000 | ||
Receivable from customers, net of allowance for credit losses of $859 ($769 in 2017) | 797,751,000 | 848,226,000 | ||
Income tax receivable | 0 | 0 | ||
Securities purchased under agreements to resell, at fair value | 1,502,000 | 658,000 | ||
Securities owned, at fair value | 893,882,000 | 925,211,000 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,334 and $7,126, respectively ($24,705 and $7,975, respectively, in 2017) | 43,278,000 | 40,520,000 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 7,509,000 | 6,966,000 | ||
Subordinated loan receivable | 0 | 0 | ||
Intangible assets | 31,700,000 | 31,700,000 | ||
Goodwill | 137,889,000 | 137,889,000 | ||
Other assets | 116,979,000 | 142,604,000 | ||
Deferred tax assets | 19,654,000 | 18,463,000 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 2,341,530,000 | 2,418,570,000 | ||
Liabilities | ||||
Drafts payable | 29,242,000 | 42,412,000 | ||
Bank call loans | 3,000,000 | 118,300,000 | ||
Payable to brokers, dealers and clearing organizations | 219,443,000 | 211,483,000 | ||
Payable to customers | 351,750,000 | 385,907,000 | ||
Securities sold under agreements to repurchase | 606,010,000 | 586,478,000 | ||
Securities sold but not yet purchased, at fair value | 143,746,000 | 94,486,000 | ||
Accrued compensation | 151,658,000 | 173,116,000 | ||
Accounts payable and other liabilities | 60,380,000 | 51,280,000 | ||
Income tax payable | 44,058,000 | 44,455,000 | ||
Senior secured notes, net of debt issuance costs of $969 ($1,163 in 2017) | 0 | 0 | ||
Subordinated indebtedness | 112,558,000 | 112,558,000 | ||
Deferred tax liabilities, net | 32,544,000 | 33,040,000 | ||
Intercompany payables | 68,493,000 | 73,423,000 | ||
Total liabilities | 1,822,882,000 | 1,926,938,000 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 518,309,000 | 491,271,000 | ||
Non-controlling interest | 339,000 | 361,000 | ||
Total stockholders' equity | 518,648,000 | 491,632,000 | ||
Total liabilities and stockholders' equity | 2,341,530,000 | 2,418,570,000 | ||
Parent | ||||
ASSETS | ||||
Cash and cash equivalents | 479,000 | 7,442,000 | 507,000 | $ 229,000 |
Deposits with clearing organizations | 0 | 0 | ||
Receivable from brokers, dealers and clearing organizations | 0 | 0 | ||
Receivable from customers, net of allowance for credit losses of $859 ($769 in 2017) | 0 | 0 | ||
Income tax receivable | 47,898,000 | 45,998,000 | ||
Securities purchased under agreements to resell, at fair value | 0 | 0 | ||
Securities owned, at fair value | 0 | 0 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,334 and $7,126, respectively ($24,705 and $7,975, respectively, in 2017) | 0 | 0 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 0 | 0 | ||
Subordinated loan receivable | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 100,000 | 133,000 | ||
Deferred tax assets | 66,000 | 3,502,000 | ||
Investment in subsidiaries | 651,369,000 | 622,824,000 | ||
Intercompany receivables | 48,592,000 | 52,149,000 | ||
Total assets | 748,504,000 | 732,048,000 | ||
Liabilities | ||||
Drafts payable | 0 | 0 | ||
Bank call loans | 0 | 0 | ||
Payable to brokers, dealers and clearing organizations | 0 | 0 | ||
Payable to customers | 0 | 0 | ||
Securities sold under agreements to repurchase | 0 | 0 | ||
Securities sold but not yet purchased, at fair value | 0 | 0 | ||
Accrued compensation | 0 | 0 | ||
Accounts payable and other liabilities | 3,495,000 | 7,221,000 | ||
Income tax payable | 2,440,000 | 2,440,000 | ||
Senior secured notes, net of debt issuance costs of $969 ($1,163 in 2017) | 199,031,000 | 198,837,000 | ||
Subordinated indebtedness | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 204,966,000 | 208,498,000 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 543,538,000 | 523,550,000 | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' equity | 543,538,000 | 523,550,000 | $ 504,418,000 | |
Total liabilities and stockholders' equity | $ 748,504,000 | $ 732,048,000 |
Supplemental Guarantor Conden_3
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUES | ||||
Commissions | $ 79,678 | $ 77,635 | $ 245,935 | $ 248,204 |
Investment Advisory Fee Revenue | 78,154 | 74,329 | 232,972 | 216,521 |
Investment banking | 28,328 | 23,940 | 84,442 | 57,347 |
Sweep Interest Income from FDIC-Insured Bank Deposits | 30,053 | 21,146 | 84,203 | 52,992 |
Interest | 13,403 | 12,952 | 38,686 | 36,346 |
Principal transactions, net | (16) | 5,135 | 9,110 | 15,810 |
Other | 8,214 | 11,083 | 19,552 | 28,145 |
Total revenue | 237,814 | 226,220 | 714,900 | 655,365 |
EXPENSES | ||||
Compensation and related expenses | 152,846 | 142,090 | 457,821 | 428,625 |
Communications and technology | 18,602 | 17,781 | 55,287 | 53,886 |
Occupancy and equipment costs | 15,106 | 15,288 | 45,435 | 45,721 |
Clearing and exchange fees | 5,378 | 5,622 | 17,254 | 17,392 |
Interest | 12,915 | 6,500 | 32,787 | 18,710 |
Other | 25,823 | 27,111 | 77,046 | 87,865 |
Total expenses | 230,670 | 214,392 | 685,630 | 652,199 |
Income before income taxes from continuing operations | 7,144 | 11,828 | 29,270 | 3,166 |
Income Tax Expense (Benefit) | 2,083 | 4,425 | 8,661 | 2,464 |
Net income from continuing operations | 5,061 | 7,403 | 20,609 | 702 |
Income from discontinued operations | 0 | 769 | 0 | 1,834 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 5,061 | 7,864 | 20,609 | 1,803 |
Income taxes | 0 | 308 | 0 | 733 |
Net income from discontinued operations | 0 | 461 | 0 | 1,101 |
Less net income (loss) attributable to non-controlling interest, net of tax | (10) | 75 | (22) | 180 |
Net income attributable to Oppenheimer Holdings Inc. | 5,071 | 7,789 | 20,631 | 1,623 |
Other comprehensive income | 99 | (251) | (880) | 1,953 |
Total comprehensive income | 5,170 | 7,538 | 19,751 | 3,576 |
Eliminations | ||||
REVENUES | ||||
Commissions | 0 | 0 | 0 | 0 |
Investment Advisory Fee Revenue | (336) | (326) | (981) | (989) |
Investment banking | 0 | 0 | 0 | (3,000) |
Sweep Interest Income from FDIC-Insured Bank Deposits | 0 | 0 | (6,233) | 0 |
Interest | (2,076) | (2,411) | (39) | (7,562) |
Principal transactions, net | 3 | 0 | 0 | 0 |
Other | (153) | (89) | (342) | (266) |
Total revenue | (2,562) | (2,826) | (7,595) | (11,817) |
EXPENSES | ||||
Compensation and related expenses | 0 | 0 | 0 | 0 |
Communications and technology | 0 | 0 | 0 | 0 |
Occupancy and equipment costs | (153) | (89) | (342) | (266) |
Clearing and exchange fees | 0 | 0 | 0 | |
Interest | (2,076) | (2,411) | (6,233) | (7,562) |
Other | (333) | (326) | (1,020) | (3,989) |
Total expenses | (2,562) | (2,826) | (7,595) | (11,817) |
Income before income taxes from continuing operations | 0 | 0 | 0 | 0 |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 |
Net income from continuing operations | 0 | 0 | 0 | 0 |
Income from discontinued operations | 0 | 0 | ||
Equity in earnings of subsidiaries | (14,662) | (19,164) | (55,692) | (18,438) |
Net income | (14,662) | (19,164) | (55,692) | (18,438) |
Income taxes | 0 | 0 | ||
Net income from discontinued operations | 0 | 0 | ||
Less net income (loss) attributable to non-controlling interest, net of tax | 0 | 0 | 0 | 0 |
Net income attributable to Oppenheimer Holdings Inc. | (14,662) | (19,164) | (55,692) | (18,438) |
Other comprehensive income | 0 | 0 | 0 | 0 |
Total comprehensive income | (14,662) | (19,164) | (55,692) | (18,438) |
Guarantor Subsidiaries | ||||
REVENUES | ||||
Commissions | 0 | 0 | 0 | 0 |
Investment Advisory Fee Revenue | 0 | 0 | 0 | 0 |
Investment banking | 0 | 0 | 0 | 0 |
Sweep Interest Income from FDIC-Insured Bank Deposits | 0 | 0 | 6,183 | 0 |
Interest | 2,063 | 2,391 | 0 | 7,529 |
Principal transactions, net | 0 | 2 | 0 | 17 |
Other | 154 | 89 | 345 | 267 |
Total revenue | 2,217 | 2,482 | 6,528 | 7,813 |
EXPENSES | ||||
Compensation and related expenses | 0 | 0 | 0 | 0 |
Communications and technology | 0 | 0 | 0 | 0 |
Occupancy and equipment costs | 0 | 0 | 0 | 0 |
Clearing and exchange fees | 0 | 0 | 0 | 0 |
Interest | 0 | 0 | 0 | 0 |
Other | 270 | 62 | 1,372 | 329 |
Total expenses | 270 | 62 | 1,372 | 329 |
Income before income taxes from continuing operations | 1,947 | 2,420 | 5,156 | 7,484 |
Income Tax Expense (Benefit) | 479 | 984 | 1,112 | 2,860 |
Net income from continuing operations | 1,468 | 1,436 | 4,044 | 4,624 |
Income from discontinued operations | 0 | 0 | ||
Equity in earnings of subsidiaries | 6,597 | 8,864 | 25,824 | 6,907 |
Net income | 8,065 | 10,300 | 29,868 | 11,531 |
Income taxes | 0 | 0 | ||
Net income from discontinued operations | 0 | 0 | ||
Less net income (loss) attributable to non-controlling interest, net of tax | 0 | 0 | 0 | 0 |
Net income attributable to Oppenheimer Holdings Inc. | 8,065 | 10,300 | 29,868 | 11,531 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Total comprehensive income | 8,065 | 10,300 | 29,868 | 11,531 |
Non-Guarantor Subsidiaries | ||||
REVENUES | ||||
Commissions | 79,678 | 77,635 | 245,935 | 248,204 |
Investment Advisory Fee Revenue | 78,490 | 74,655 | 233,953 | 217,510 |
Investment banking | 28,328 | 23,940 | 84,442 | 60,347 |
Sweep Interest Income from FDIC-Insured Bank Deposits | 30,053 | 21,146 | 38,732 | 52,992 |
Interest | 13,415 | 12,972 | 9,149 | 36,379 |
Principal transactions, net | (19) | 5,133 | 84,203 | 15,793 |
Other | 8,213 | 11,061 | 19,549 | 28,122 |
Total revenue | 238,158 | 226,542 | 715,963 | 659,347 |
EXPENSES | ||||
Compensation and related expenses | 152,503 | 141,819 | 456,630 | 427,649 |
Communications and technology | 18,567 | 17,748 | 55,164 | 53,774 |
Occupancy and equipment costs | 15,259 | 15,377 | 45,777 | 45,987 |
Clearing and exchange fees | 5,378 | 5,622 | 17,254 | 17,392 |
Interest | 11,616 | 5,536 | 28,895 | 15,907 |
Other | 25,668 | 26,963 | 75,811 | 86,864 |
Total expenses | 228,991 | 213,065 | 679,531 | 647,573 |
Income before income taxes from continuing operations | 9,167 | 13,477 | 36,432 | 11,774 |
Income Tax Expense (Benefit) | 2,580 | 4,999 | 10,630 | 5,788 |
Net income from continuing operations | 6,587 | 8,478 | 25,802 | 5,986 |
Income from discontinued operations | 769 | 1,834 | ||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 6,587 | 8,939 | 25,802 | 7,087 |
Income taxes | 308 | 733 | ||
Net income from discontinued operations | 461 | 1,101 | ||
Less net income (loss) attributable to non-controlling interest, net of tax | (10) | 75 | (22) | 180 |
Net income attributable to Oppenheimer Holdings Inc. | 6,597 | 8,864 | 25,824 | 6,907 |
Other comprehensive income | 99 | (251) | (880) | 1,953 |
Total comprehensive income | 6,696 | 8,613 | 24,944 | 8,860 |
Parent | ||||
REVENUES | ||||
Commissions | 0 | 0 | 0 | 0 |
Investment Advisory Fee Revenue | 0 | 0 | 0 | 0 |
Investment banking | 0 | 0 | 0 | 0 |
Sweep Interest Income from FDIC-Insured Bank Deposits | 0 | 0 | 4 | 0 |
Interest | 1 | 0 | 0 | 0 |
Principal transactions, net | 0 | 0 | 0 | 0 |
Other | 0 | 22 | 0 | 22 |
Total revenue | 1 | 22 | 4 | 22 |
EXPENSES | ||||
Compensation and related expenses | 343 | 271 | 1,191 | 976 |
Communications and technology | 35 | 33 | 123 | 112 |
Occupancy and equipment costs | 0 | 0 | 0 | 0 |
Clearing and exchange fees | 0 | 0 | 0 | 0 |
Interest | 3,375 | 3,375 | 10,125 | 10,365 |
Other | 218 | 412 | 883 | 4,661 |
Total expenses | 3,971 | 4,091 | 12,322 | 16,114 |
Income before income taxes from continuing operations | (3,970) | (4,069) | (12,318) | (16,092) |
Income Tax Expense (Benefit) | (976) | (1,558) | (3,081) | (6,184) |
Net income from continuing operations | (2,994) | (2,511) | (9,237) | (9,908) |
Income from discontinued operations | 0 | 0 | ||
Equity in earnings of subsidiaries | 8,065 | 10,300 | 29,868 | 11,531 |
Net income | 5,071 | 7,789 | 20,631 | 1,623 |
Income taxes | 0 | 0 | ||
Net income from discontinued operations | 0 | 0 | ||
Less net income (loss) attributable to non-controlling interest, net of tax | 0 | 0 | 0 | 0 |
Net income attributable to Oppenheimer Holdings Inc. | 5,071 | 7,789 | 20,631 | 1,623 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Total comprehensive income | $ 5,071 | $ 7,789 | $ 20,631 | $ 1,623 |
Supplemental Guarantor Conden_4
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operations: | ||
Cash provided by (used in) operating activities | $ 118,279 | $ (34,386) |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | (6,654) | (3,506) |
Purchase of tangible assets | (400) | 0 |
Proceeds from settlement of company-owned life insurance | 284 | 1,194 |
Cash used in investing activities | (6,770) | (2,312) |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | (4,373) | (4,394) |
Cash dividends paid to non-controlling interest | 0 | (2,448) |
Issuance of Class A non-voting common stock | 70 | 0 |
Payments for Repurchase of Common Stock | 0 | (7,464) |
Payments for employee taxes withheld related to vested share-based awards | (2,529) | (2,232) |
Proceeds from Issuance of Long-term Debt | (200,000) | |
Repayments of Long-term Debt | (150,000) | |
Debt issuance costs | 0 | (1,183) |
Redemption of senior secured notes | (115,300) | (15,700) |
Cash (used in) provided by financing activities | (122,132) | 16,579 |
Net decrease in cash and cash equivalents | (10,623) | (20,119) |
Cash and cash equivalents, beginning of period | 48,154 | 64,913 |
Cash and cash equivalents, end of period | 37,531 | 44,794 |
Eliminations | ||
Cash flows from operations: | ||
Cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | 0 | 0 |
Purchase of tangible assets | 0 | |
Proceeds from settlement of company-owned life insurance | 0 | 0 |
Cash used in investing activities | 0 | 0 |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | 0 | 0 |
Cash dividends paid to non-controlling interest | 0 | |
Issuance of Class A non-voting common stock | 0 | |
Payments for Repurchase of Common Stock | 0 | |
Payments for employee taxes withheld related to vested share-based awards | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 0 | |
Repayments of Long-term Debt | 0 | |
Debt issuance costs | 0 | |
Redemption of senior secured notes | 0 | 0 |
Cash (used in) provided by financing activities | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Guarantor Subsidiaries | ||
Cash flows from operations: | ||
Cash provided by (used in) operating activities | 1,337 | 1,679 |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | 0 | 0 |
Purchase of tangible assets | (400) | |
Proceeds from settlement of company-owned life insurance | 0 | 0 |
Cash used in investing activities | (400) | 0 |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | 0 | 0 |
Cash dividends paid to non-controlling interest | 0 | |
Issuance of Class A non-voting common stock | 0 | |
Payments for Repurchase of Common Stock | 0 | |
Payments for employee taxes withheld related to vested share-based awards | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 0 | |
Repayments of Long-term Debt | 0 | |
Debt issuance costs | 0 | |
Redemption of senior secured notes | 0 | 0 |
Cash (used in) provided by financing activities | 0 | 0 |
Net decrease in cash and cash equivalents | 937 | 1,679 |
Cash and cash equivalents, beginning of period | 3,716 | 10,284 |
Cash and cash equivalents, end of period | 4,653 | 11,963 |
Non-Guarantor Subsidiaries | ||
Cash flows from operations: | ||
Cash provided by (used in) operating activities | 117,073 | (1,616) |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | (6,654) | (3,506) |
Purchase of tangible assets | 0 | |
Proceeds from settlement of company-owned life insurance | 284 | 1,194 |
Cash used in investing activities | (6,370) | (2,312) |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | 0 | 0 |
Cash dividends paid to non-controlling interest | (2,448) | |
Issuance of Class A non-voting common stock | 0 | |
Payments for Repurchase of Common Stock | 0 | |
Payments for employee taxes withheld related to vested share-based awards | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 0 | |
Repayments of Long-term Debt | 0 | |
Debt issuance costs | 0 | |
Redemption of senior secured notes | (115,300) | (15,700) |
Cash (used in) provided by financing activities | (115,300) | (18,148) |
Net decrease in cash and cash equivalents | (4,597) | (22,076) |
Cash and cash equivalents, beginning of period | 36,996 | 54,400 |
Cash and cash equivalents, end of period | 32,399 | 32,324 |
Parent | ||
Cash flows from operations: | ||
Cash provided by (used in) operating activities | (131) | (34,449) |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | 0 | 0 |
Purchase of tangible assets | 0 | |
Proceeds from settlement of company-owned life insurance | 0 | 0 |
Cash used in investing activities | 0 | 0 |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | (4,373) | (4,394) |
Cash dividends paid to non-controlling interest | 0 | |
Issuance of Class A non-voting common stock | 70 | |
Payments for Repurchase of Common Stock | (7,464) | |
Payments for employee taxes withheld related to vested share-based awards | (2,529) | (2,232) |
Proceeds from Issuance of Long-term Debt | 200,000 | |
Repayments of Long-term Debt | (150,000) | |
Debt issuance costs | (1,183) | |
Redemption of senior secured notes | 0 | 0 |
Cash (used in) provided by financing activities | (6,832) | 34,727 |
Net decrease in cash and cash equivalents | (6,963) | 278 |
Cash and cash equivalents, beginning of period | 7,442 | 229 |
Cash and cash equivalents, end of period | $ 479 | $ 507 |