Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 29, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-12043 | |
Entity Registrant Name | OPPENHEIMER HOLDINGS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0080034 | |
Entity Address, Address Line One | 85 Broad Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10004 | |
City Area Code | 212 | |
Local Phone Number | 668-8000 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | OPY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000791963 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12,393,812 | |
Class B Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 99,665 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 32,080 | $ 79,550 |
Deposits with clearing organizations | 77,202 | 48,415 |
Receivable from brokers, dealers and clearing organizations | 207,256 | 163,293 |
Receivable from customers, net of allowance for credit losses of $418 ($451 in 2019) | 1,095,035 | 796,934 |
Income tax receivable | 2,992 | 5,170 |
Securities owned, including amounts pledged of $486,165 ($357,120 in 2019), at fair value | 646,680 | 799,719 |
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $37,224 and $4,190 respectively ($38,355 and $3,673, respectively, in 2019) | 44,723 | 43,670 |
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $100,968 ($94,773 in 2019) | 28,916 | 31,377 |
Operating Lease, Right-of-Use Asset | 154,666 | 160,297 |
Intangible assets | 32,100 | 32,100 |
Goodwill | 137,889 | 137,889 |
Other assets | 149,079 | 166,341 |
Total assets | 2,608,618 | 2,464,755 |
Liabilities | ||
Drafts payable | 18,251 | 0 |
Bank call loans | 156,900 | 0 |
Payable to brokers, dealers and clearing organizations | 366,949 | 520,975 |
Payable to customers | 380,746 | 334,735 |
Securities sold under agreements to repurchase | 252,827 | 287,265 |
Securities sold but not yet purchased, at fair value | 222,449 | 100,571 |
Accrued compensation | 201,616 | 207,358 |
Accounts payable and other liabilities | 43,473 | 44,725 |
Present value of lease liabilities | 195,348 | 203,140 |
Senior secured notes, net of debt issuance costs of $1,136 ($485 in 2019) | 123,864 | 149,515 |
Deferred tax liabilities, net of deferred tax assets of $39,099 ($43,630 in 2019) | 30,979 | 23,749 |
Total liabilities | 1,993,402 | 1,872,033 |
Commitments and contingencies (note 13) | ||
Share capital | ||
Common stock | 39,973 | 46,557 |
Contributed capital | 39,788 | 47,406 |
Retained earnings | 533,507 | 496,998 |
Accumulated other comprehensive income | 1,948 | 1,761 |
Stockholders' Equity Attributable to Parent | 615,216 | 592,722 |
Total liabilities and stockholders' equity | 2,608,618 | 2,464,755 |
Class A Stock | ||
Share capital | ||
Common stock | 39,840 | 46,424 |
Class B Stock | ||
Share capital | ||
Common stock | $ 133 | $ 133 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Allowance for credit losses | $ 418 | $ 451 |
Amounts pledged | 486,165 | 357,120 |
Furniture equipment and leasehold improvements, net accumulated depreciation | 100,968 | 94,773 |
Net deferred tax assets | 39,099 | 43,630 |
Notes Receivable, Net Accumulated Amortization | 37,224 | 38,355 |
Notes Receivable, Net Allowance for Uncollectibles | 4,190 | 3,673 |
Unamortized debt issuance expense | 1,136 | 485 |
Operating Lease Right-of-use Asset Accumulated Amortization | $ 43,933 | $ 25,186 |
Class A Stock | ||
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,404,427 | 12,698,703 |
Common stock, shares outstanding | 12,404,427 | 12,698,703 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Income (Loss) before equity in Earnings of Subsidiaries | $ 15,639 | $ 3,949 | $ 41,106 | $ 27,518 |
Other comprehensive income | 244 | 533 | 187 | 1,457 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 15,883 | 4,482 | 41,293 | 28,975 |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | 0 | 0 | 0 | 0 |
REVENUE | ||||
Commissions | 92,241 | 78,627 | 297,126 | 238,932 |
Investment Advisory Fee Revenue | 88,595 | 80,887 | 250,740 | 235,241 |
Investment banking | 66,245 | 21,798 | 138,159 | 81,847 |
Proceeds from (Payments for) in Interest-bearing Deposits in Banks | 4,619 | 28,894 | 30,567 | 94,692 |
Interest | 7,540 | 12,344 | 24,650 | 38,621 |
Principal transactions, net | 7,703 | 7,606 | 18,899 | 22,089 |
Other | 9,316 | 4,637 | 15,618 | 26,076 |
Total revenue | 276,259 | 234,793 | 775,759 | 737,498 |
EXPENSES | ||||
Compensation and related expenses | 189,654 | 151,284 | 526,924 | 467,422 |
Communications and technology | 19,474 | 20,872 | 60,689 | 61,457 |
Occupancy and equipment costs | 15,199 | 16,010 | 46,611 | 46,856 |
Clearing and exchange fees | 6,211 | 5,469 | 18,061 | 16,479 |
Interest | 3,461 | 11,531 | 12,901 | 37,709 |
Other | 20,542 | 23,131 | 55,368 | 67,636 |
Total expenses | 254,541 | 228,297 | 720,554 | 697,559 |
Operating Income (Loss) | 21,718 | 6,496 | 55,205 | 39,939 |
Income Tax Expense (Benefit) | 6,079 | 2,547 | 14,099 | 12,421 |
Net income attributable to Oppenheimer Holdings Inc. | $ 15,639 | $ 3,949 | $ 41,106 | $ 27,518 |
Earnings per share | ||||
Net loss per share (in dollars per share) | $ 1.25 | $ 0.31 | $ 3.24 | $ 2.13 |
Earnings Per Share, Diluted [Abstract] | ||||
Net loss per share (in dollars per share) | $ 1.19 | $ 0.29 | $ 3.12 | $ 1.99 |
Weighted average shares | ||||
Basic (in shares) | 12,553,802 | 12,825,944 | 12,696,143 | 12,940,129 |
Diluted (in shares) | 13,146,586 | 13,832,994 | 13,194,434 | 13,846,139 |
Parent [Member] | ||||
Net Income (Loss) before equity in Earnings of Subsidiaries | $ (5,812) | $ (4,011) | $ (10,340) | $ (9,714) |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 15,639 | 3,949 | 41,106 | 27,518 |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | 21,451 | 7,960 | 51,446 | 37,232 |
REVENUE | ||||
Commissions | 0 | 0 | 0 | 0 |
Investment Advisory Fee Revenue | 0 | 0 | 0 | 0 |
Investment banking | 0 | 0 | 0 | 0 |
Proceeds from (Payments for) in Interest-bearing Deposits in Banks | 0 | 0 | 0 | 0 |
Interest | 0 | 59 | 2 | 234 |
Principal transactions, net | 0 | 0 | 0 | 0 |
Other | 0 | 3 | 95 | 3 |
Total revenue | 0 | 62 | 97 | 237 |
EXPENSES | ||||
Compensation and related expenses | 259 | 273 | 879 | 1,098 |
Communications and technology | 61 | 39 | 144 | 130 |
Occupancy and equipment costs | 0 | 0 | 0 | 0 |
Clearing and exchange fees | 0 | 0 | 0 | 0 |
Interest | 2,596 | 3,038 | 7,632 | 9,788 |
Other | 4,906 | 2,087 | 5,358 | 2,637 |
Total expenses | 7,822 | 5,437 | 14,013 | 13,653 |
Operating Income (Loss) | (7,822) | (5,375) | (13,916) | (13,416) |
Income Tax Expense (Benefit) | (2,010) | (1,364) | (3,576) | (3,702) |
Net income attributable to Oppenheimer Holdings Inc. | 15,639 | 3,949 | 41,106 | 27,518 |
Guarantor Subsidiaries [Member] | ||||
Net Income (Loss) before equity in Earnings of Subsidiaries | 1,535 | 1,517 | 4,600 | 4,063 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 21,451 | 7,960 | 51,446 | 37,232 |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | 19,916 | 6,443 | 46,846 | 33,169 |
REVENUE | ||||
Commissions | 0 | 0 | 0 | 0 |
Investment Advisory Fee Revenue | 0 | 0 | 0 | 0 |
Investment banking | 0 | 0 | 0 | 0 |
Proceeds from (Payments for) in Interest-bearing Deposits in Banks | 0 | 0 | 0 | 0 |
Interest | 2,058 | 2,059 | 6,174 | 6,181 |
Principal transactions, net | 8 | (34) | 57 | 121 |
Other | 0 | 0 | 0 | 2 |
Total revenue | 2,066 | 2,025 | 6,231 | 6,304 |
EXPENSES | ||||
Compensation and related expenses | 0 | 0 | 0 | 0 |
Communications and technology | 0 | 0 | 0 | 0 |
Occupancy and equipment costs | 0 | 0 | 0 | (1) |
Clearing and exchange fees | 0 | (54) | 0 | 0 |
Interest | 0 | 0 | 0 | 0 |
Other | 3 | 4 | 8 | 248 |
Total expenses | 3 | (50) | 8 | 247 |
Operating Income (Loss) | 2,063 | 2,075 | 6,223 | 6,057 |
Income Tax Expense (Benefit) | 528 | 558 | 1,623 | 1,994 |
Net income attributable to Oppenheimer Holdings Inc. | 21,451 | 7,960 | 51,446 | 37,232 |
Non-Guarantor Subsidiaries [Member] | ||||
Net Income (Loss) before equity in Earnings of Subsidiaries | 19,916 | 6,443 | 46,846 | 33,169 |
Other comprehensive income | 244 | 533 | 187 | 1,457 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 20,160 | 6,976 | 47,033 | 34,626 |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | 0 | 0 | 0 | 0 |
REVENUE | ||||
Commissions | 92,241 | 78,627 | 297,126 | 238,932 |
Investment Advisory Fee Revenue | 88,963 | 81,229 | 251,811 | 236,278 |
Investment banking | 68,120 | 21,798 | 140,034 | 81,847 |
Proceeds from (Payments for) in Interest-bearing Deposits in Banks | 4,619 | 28,894 | 30,567 | 94,692 |
Interest | 7,594 | 12,299 | 24,732 | 38,426 |
Principal transactions, net | 7,695 | 7,586 | 18,842 | 21,980 |
Other | 9,315 | 4,635 | 15,526 | 26,070 |
Total revenue | 278,547 | 235,068 | 778,638 | 738,225 |
EXPENSES | ||||
Compensation and related expenses | 189,395 | 151,012 | 526,045 | 466,330 |
Communications and technology | 19,413 | 20,833 | 60,545 | 61,327 |
Occupancy and equipment costs | 15,199 | 16,010 | 46,611 | 46,855 |
Clearing and exchange fees | 6,211 | 5,469 | 18,061 | 16,479 |
Interest | 2,977 | 10,566 | 11,527 | 34,141 |
Other | 17,875 | 21,382 | 52,951 | 65,795 |
Total expenses | 251,070 | 225,272 | 715,740 | 690,927 |
Operating Income (Loss) | 27,477 | 9,796 | 62,898 | 47,298 |
Income Tax Expense (Benefit) | 7,561 | 3,353 | 16,052 | 14,129 |
Net income attributable to Oppenheimer Holdings Inc. | 19,916 | 6,443 | 46,846 | 33,169 |
Consolidation, Eliminations [Member] | ||||
Net Income (Loss) before equity in Earnings of Subsidiaries | 0 | |||
Other comprehensive income | 0 | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (70,401) | |||
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | (70,401) | |||
EXPENSES | ||||
Total expenses | (7,268) | |||
Operating Income (Loss) | 0 | |||
Income Tax Expense (Benefit) | 0 | |||
Net income attributable to Oppenheimer Holdings Inc. | (70,401) | |||
Consolidation, Eliminations [Member] | ||||
Net Income (Loss) before equity in Earnings of Subsidiaries | 0 | 0 | 0 | |
Other comprehensive income | 0 | 0 | 0 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (41,367) | (14,403) | (98,292) | |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | (41,367) | (14,403) | (98,292) | |
REVENUE | ||||
Commissions | 0 | 0 | 0 | 0 |
Investment Advisory Fee Revenue | (368) | (342) | (1,071) | (1,037) |
Investment banking | (1,875) | 0 | (1,875) | 0 |
Proceeds from (Payments for) in Interest-bearing Deposits in Banks | 0 | 0 | 0 | 0 |
Interest | (2,112) | (2,073) | (6,258) | (6,220) |
Principal transactions, net | 0 | 54 | 0 | (12) |
Other | 1 | (1) | (3) | 1 |
Total revenue | (4,354) | (2,362) | (9,207) | (7,268) |
EXPENSES | ||||
Compensation and related expenses | 0 | (1) | 0 | (6) |
Communications and technology | 0 | 0 | 0 | 0 |
Occupancy and equipment costs | 0 | 0 | 0 | 2 |
Clearing and exchange fees | 0 | 54 | 0 | 0 |
Interest | (2,112) | (2,073) | (6,258) | (6,220) |
Other | (2,242) | (342) | (2,949) | $ (1,044) |
Total expenses | (4,354) | (2,362) | (9,207) | |
Operating Income (Loss) | 0 | 0 | 0 | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | |
Net income attributable to Oppenheimer Holdings Inc. | $ (41,367) | $ (14,403) | $ (98,292) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Income (Loss) Attributable to Parent | $ 15,639 | $ 3,949 | $ 41,106 | $ 27,518 |
Other comprehensive income (loss), net of tax | ||||
Currency translation adjustment | 244 | 533 | 187 | 1,457 |
Comprehensive income | $ 15,883 | $ 4,482 | $ 41,293 | $ 28,975 |
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) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 53,392 | $ 41,776 | $ 449,989 | $ 165 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of Class A non-voting common stock | $ 1,565 | |||||
Repurchase of Class A non-voting common stock for cancellation | (8,400) | |||||
Net Income (Loss) Attributable to Parent | $ 27,518 | 27,518 | ||||
Share-based expense | 6,071 | |||||
Vested employee share plan awards | (2,498) | |||||
Dividends paid | $ (4,408) | |||||
Currency translation adjustment | 1,457 | 1,457 | ||||
Dividends paid per share | $ 0.34 | |||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 48,202 | 43,626 | $ 470,693 | 1,089 | ||
Issuance of Class A non-voting common stock | 403 | |||||
Repurchase of Class A non-voting common stock for cancellation | (2,048) | |||||
Net Income (Loss) Attributable to Parent | 3,949 | 3,949 | ||||
Share-based expense | 2,045 | |||||
Vested employee share plan awards | (322) | |||||
Dividends paid | $ (1,543) | |||||
Currency translation adjustment | 533 | 533 | ||||
Dividends paid per share | $ 0.12 | |||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 566,627 | 46,557 | 45,349 | $ 473,099 | 1,622 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 566,627 | 46,557 | 45,349 | 473,099 | 1,622 | |
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 592,722 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 46,557 | 47,406 | 496,998 | 1,761 | ||
Issuance of Class A non-voting common stock | 7,644 | |||||
Repurchase of Class A non-voting common stock for cancellation | (14,200) | (14,228) | ||||
Net Income (Loss) Attributable to Parent | 41,106 | |||||
Share-based expense | 5,763 | |||||
Vested employee share plan awards | (13,381) | |||||
Dividends paid | $ (4,597) | |||||
Currency translation adjustment | 187 | 187 | ||||
Dividends paid per share | $ 0.36 | |||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 40,917 | 39,140 | $ 519,376 | 1,704 | ||
Issuance of Class A non-voting common stock | 1,018 | |||||
Repurchase of Class A non-voting common stock for cancellation | (2,000) | $ (1,962) | ||||
Net Income (Loss) Attributable to Parent | 15,639 | |||||
Share-based expense | 1,944 | |||||
Vested employee share plan awards | (1,296) | |||||
Dividends paid | $ (1,508) | |||||
Currency translation adjustment | 244 | 244 | ||||
Dividends paid per share | $ 0.12 | |||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 615,216 | 39,973 | 39,788 | $ 533,507 | 1,948 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 615,216 | $ 39,973 | $ 39,788 | $ 533,507 | $ 1,948 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net Income (Loss) Attributable to Parent | $ 41,106,000 | $ 27,518,000 |
Non-cash items included in net income: | ||
Depreciation and amortization of furniture, equipment and leasehold improvements | 6,169,000 | 5,575,000 |
Deferred income taxes | 7,254,000 | 422,000 |
Amortization of notes receivable | 8,736,000 | 9,679,000 |
Amortization of debt issuance costs | 149,000 | 187,000 |
Write-off of debt issuance costs | 341,000 | 184,000 |
Provision for credit losses | 33,000 | 55,000 |
Share-based compensation | 4,877,000 | 11,858,000 |
Amortization of right-of-use lease assets | 18,747,000 | 19,141,000 |
Gain on repurchase of senior secured notes | (86,000) | 0 |
Decrease (increase) in operating assets: | ||
Deposits with clearing organizations | 28,787,000 | 6,052,000 |
Receivable from brokers, dealers and clearing organizations | (43,963,000) | 8,759,000 |
Receivable from customers | (298,134,000) | (34,205,000) |
Income tax receivable | 2,178,000 | (1,319,000) |
Securities purchased under agreements to resell | 0 | 290,000 |
Securities owned | 153,039,000 | 184,390,000 |
Notes receivable | (9,789,000) | (9,541,000) |
Other assets | 17,449,000 | (11,980,000) |
Increase (decrease) in operating liabilities: | ||
Drafts payable | 18,251,000 | 1,446,000 |
Payable to brokers, dealers and clearing organizations | (154,026,000) | 75,388,000 |
Payable to customers | 46,011,000 | (23,560,000) |
Securities sold under agreements to repurchase | (34,438,000) | (230,498,000) |
Securities sold but not yet purchased | 121,878,000 | 36,434,000 |
Accrued compensation | (4,856,000) | (23,273,000) |
Accounts payable and other liabilities | (20,522,000) | (18,001,000) |
Cash (used in)/provided by operating activities | (148,383,000) | 22,897,000 |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | (3,708,000) | (8,672,000) |
Proceeds from Insurance Settlement, Investing Activities | 0 | 1,720,000 |
Cash used in investing activities | (3,708,000) | (6,952,000) |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | (4,597,000) | (4,408,000) |
Proceeds from Issuance or Sale of Equity | 34,000 | 83,000 |
Repurchase of Class A non-voting common stock for cancellation | (14,228,000) | (8,400,000) |
Payments for employee taxes withheld related to vested share-based awards | (5,771,000) | (1,014,000) |
Proceeds from Issuance of Secured Debt | 125,000,000 | 0 |
Repayments of Secured Debt | 148,574,000 | 50,000,000 |
Repurchase of Secured Debt | 1,426,000 | 0 |
Payments of Debt Issuance Costs | 210,000 | 0 |
Payment for Debt Extinguishment or Debt Prepayment Cost | 2,507,000 | 1,688,000 |
Increase in bank call loans, net | 156,900,000 | (15,000,000) |
Cash provided by/(used in) financing activities | 104,621,000 | (80,427,000) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (47,470,000) | (64,482,000) |
Cash and cash equivalents, beginning of period | 79,550,000 | 90,675,000 |
Cash and cash equivalents, end of period | 32,080,000 | 26,193,000 |
Schedule of non-cash financing activities | ||
Employee share plan issuance | 11,940,000 | 1,484,000 |
Supplemental disclosure of cash flow information | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 17,929,000 | 37,710,000 |
Cash paid during the period for income taxes, net | $ 5,918,000 | $ 13,506,000 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 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 "Firm","we", "our" or "us"). Oppenheimer Holdings Inc., through its operating subsidiaries, is a leading middle market investment bank and full service broker-dealer that is engaged in a broad range of activities in the financial services industry, including retail securities brokerage, institutional sales and trading, investment banking (corporate and public finance), equity and fixed income research, market-making, trust services, and investment advisory and asset management services. The Company is headquartered in New York and has 93 retail branch offices in the United States and 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, Germany and Switzerland, which provides institutional equities and fixed income brokerage and corporate finance and is regulated by the Financial Conduct Authority; and 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. 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. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
New accounting pronouncements | 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, 2019 (the "Form 10-K"). The accompanying 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, 2020 are not necessarily indicative of the results to be expected for any future interim or annual period. On January 30, 2020, the spread of the novel coronavirus ("COVID-19") was declared a Public Health Emergency of International Concern by the World Health Organization ("WHO"). Subsequently, on March 11, 2020, the WHO characterized the COVID-19 outbreak as a pandemic (the "COVID-19 Pandemic"). The United States has the world’s most reported COVID-19 cases, and all 50 states and the District of Columbia have reported cases of infected individuals. The COVID-19 Pandemic coupled with the current market volatility ha s created an economic environment which may have significant accounting and financial reporting implications. |
Financial Instruments - Credit
Financial Instruments - Credit Losses (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Financial Instruments - Credit Losses | Financial Instruments - Credit Losses On January 1, 2020, the Company adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which replaces the incurred loss methodology with a current expected loss ("CECL") methodology. The Company elected the modified retrospective method which did not result in a cumulative effect adjustment at the date of adoption. The Company utilizes the practical expedient for securities borrowed and reverse repurchase agreements as these assets are secured by collateral when the amount of collateral is continually adjusted for fair value changes. No material historical losses have been reported on these assets. See footnote 8 for details. As of September 30, 2020, the Company has $44.7 million of notes receivable. Notes receivable represents recruiting and retention payments generally in the form of upfront loans to financial advisors and key revenue producers as part of the Company's overall growth strategy. These notes generally amortize over a service period of 3 to 10 years from the initial date of the note or based on productivity levels of employees. All such notes are contingent on the employees' continued employment with the Company. The unforgiven portion of the notes becomes due on demand in the event the employee departs during the service period. At this point any uncollected portion of the notes gets reclassified into a defaulted notes category. The allowance for uncollectibles is a valuation account that is deducted from the amortized cost basis of the defaulted notes balance to present the net amount expected to be collected. Balances are charged-off against the allowance when management deems the amount to be uncollectible. The Company reserves 100% of the uncollected balance of defaulted notes which are five years and older and applies an expected loss rate to the remaining balance. The expected loss rate is based on historical collection rates of defaulted notes. The expected loss rate is adjusted for changes in environmental and market conditions such as changes in unemployment rates, changes in interest rates and other relevant factors. For the three and nine months ended September 30, 2020 no adjustments were made to the expected loss rate for these factors. The Company will continuously monitor the effect of these factors on the expected loss rate and adjust it as necessary. The allowance is measured on a pool basis as the Company has determined that the entire defaulted portion of notes receivable has similar risk characteristics. As of September 30, 2020, the uncollected balance of defaulted notes was $5.6 million and the allowance for uncollectibles was $4.2 million. The allowance for uncollectibles consisted of $3.2 million related to defaulted notes balances (five years and older) and $1.0 million (under five years) using an expected loss rate of 42.0%. The following table presents the disaggregation of defaulted notes by year of origination as of September 30, 2020: (Expressed in thousands) As of September 30, 2020 2020 $ 404 2019 476 2018 181 2017 748 2016 651 2015 and prior 3,157 Total $ 5,617 The following table presents activity in the allowance for uncollectibles of defaulted notes for the three and nine months ended September 30, 2020: (Expressed in thousands) For the Three Months Ended For the Nine Months Ended (1) September 30, 2020 Beginning balance $ 3,903 $ 3,673 Additions and other adjustments 287 517 Ending balance $ 4,190 $ 4,190 (1) Beginning balance on January 1, 2020 upon adoption of ASU 2016-13 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 4. Leases In the first quarter of 2019, the Company adopted ASU 2016-02, "Leases". The ASU requires the recognition of a right-of-use asset and lease liability on the condensed consolidated balance sheet by lessees for those leases classified as operating leases under previous guidance. The Company elected the modified retrospective method which did not result in a cumulative-effect adjustment at the date of adoption. The Company and its subsidiaries have operating leases for office space and equipment expiring at various dates through 2034. The Company leases its corporate headquarters at 85 Broad Street, New York, New York which houses its executive management team and many administrative functions for the Firm as well as its research, trading, investment banking, and asset management divisions and an office in Troy, Michigan, which among other things, houses its payroll and human resources departments. In addition, the Company has 93 retail branch offices in the United States as well as offices in London, England, St. Helier, Isle of Jersey, Geneva, Switzerland, Frankfurt, Germany, Tel Aviv, Israel and Hong Kong, China. The Company is constantly assessing its needs for office space and, on a rolling basis, has many leases that expire in any given year. Given the COVID-19 Pandemic, the Company is assessing its future real estate needs and in many cases is reducing its office space required as leases come up for renewal. The majority of the leases are held by the Company's subsidiary, Viner Finance Inc., which is a consolidated subsidiary and 100% owned by the Company. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include an option to renew and the exercise of lease renewal options is at our sole discretion. The Company does not include the renewal options as part of the right-of-use assets and liabilities. The depreciable life of assets and leasehold improvements is limited by the expected lease term. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of September 30, 2020, the Company had right-of-use operating lease assets of $154.7 million (net of accumulated amortization of $43.9 million) which are comprised of real estate leases of $152.0 million (net of accumulated amortization of $40.6 million) and equipment leases of $2.7 million (net of accumulated amortization of $3.3 million). As of September 30, 2020, the Company had operating lease liabilities of $195.3 million which are comprised of real estate lease liabilities of $192.6 million and equipment lease liabilities of $2.7 million. As of September 30, 2020, the Company had not made any cash payments for amounts included in the measurement of operating lease liabilities or right-of-use assets obtained in exchange for operating lease obligations. The Company had no finance leases or embedded leases as of September 30, 2020. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company used the incremental borrowing rate on January 1, 2019 for operating leases that commenced prior to that date. The Company used the incremental borrowing rate as of the lease commencement date for the operating leases commenced subsequent to January 1, 2019. The following table presents the weighted average lease term and weighted average discount rate for our operating leases as of September 30, 2020 and December 31, 2019: As of September 30, 2020 December 31, 2019 Weighted average remaining lease term (in years) 8.01 8.31 Weighted average discount rate 7.46% 7.89% The following table presents operating lease costs recognized for the three and nine months ended September 30, 2020 and 2019 which are included in occupancy and equipment costs on the condensed consolidated income statements: (Expressed in thousands) For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 Operating lease costs: Real estate leases - Right-of-use lease asset amortization $ 5,862 $ 5,696 $ 17,326 $ 17,740 Real estate leases - Interest expense 3,720 4,145 11,475 11,792 Equipment leases - Right-of-use lease asset amortization 473 462 1,421 1,401 Equipment leases - Interest expense 48 57 153 171 The maturities of lease liabilities as of September 30, 2020 and December 31, 2019 are as follows: (Expressed in thousands) As of September 30, 2020 December 31, 2019 2020 $ 10,171 $ 42,585 2021 39,729 37,531 2022 35,707 33,416 2023 32,819 31,187 2024 28,604 27,234 After 2025 115,290 108,098 Total lease payments $ 262,320 $ 280,051 Less interest (66,972) (76,911) Present value of lease liabilities $ 195,348 $ 203,140 As of September 30, 2020, the Company had $6.5 million of additional operating leases that have not yet commenced ($11.1 million as of December 31, 2019). |
Revenues from contracts with cu
Revenues from contracts with customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from contracts with customers | Revenue from contracts with customers 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 its past experiences, the time period when uncertainties are expected 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, options, and commodities transactions. The Company records a receivable on the trade date and receives a payment on the 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 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 funds' 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 income statements. 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 completion of the transaction or milestone. Retainer fees and fees earned from certain advisory services are recognized ratably over the service period as the customers receive 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, 2020 and 2019: (Expressed in thousands) For the Three Months Ended September 30, 2020 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenue from contracts with customers: Commissions from sales and trading $ 40,742 $ — $ 43,389 $ 3 $ 84,134 Mutual fund income 8,097 — 2 8 8,107 Advisory fees 67,949 20,634 — 12 88,595 Investment banking - capital markets 3,962 — 31,577 — 35,539 Investment banking - advisory — — 30,706 — 30,706 Bank deposit sweep income 4,619 — — — 4,619 Other 5,720 — 32 9 5,761 Total revenue from contracts with customers 131,089 20,634 105,706 32 257,461 Other sources of revenue: Interest 5,939 (5) 1,539 67 7,540 Principal transactions, net 1,223 — 6,357 123 7,703 Other 2,846 3 687 19 3,555 Total other sources of revenue 10,008 (2) 8,583 209 18,798 Total revenue $ 141,097 $ 20,632 $ 114,289 $ 241 $ 276,259 (Expressed in thousands) For the Three Months Ended September 30, 2019 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenue from contracts with customers: Commissions from sales and trading $ 35,994 $ — $ 32,569 $ 9 $ 68,572 Mutual fund income 10,050 — 1 4 10,055 Advisory fees 62,510 18,366 2 9 80,887 Investment banking - capital markets 2,557 — 8,773 — 11,330 Investment banking - advisory — — 10,468 — 10,468 Bank deposit sweep income 28,894 — — — 28,894 Other 3,296 2 448 576 4,322 Total revenue from contracts with customers 143,301 18,368 52,261 598 214,528 Other sources of revenue: Interest 8,652 — 3,272 420 12,344 Principal transactions, net 70 — 8,515 (979) 7,606 Other 31 — 20 264 315 Total other sources of revenue 8,753 — 11,807 (295) 20,265 Total revenue $ 152,054 $ 18,368 $ 64,068 $ 303 $ 234,793 (Expressed in thousands) For the Nine Months Ended September 30, 2020 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenue from contracts with customers: Commissions from sales and trading $ 129,652 $ — $ 141,013 $ 22 $ 270,687 Mutual fund income 26,414 3 7 15 26,439 Advisory fees 193,297 57,411 2 30 250,740 Investment banking - capital markets 11,382 — 78,991 — 90,373 Investment banking - advisory — — 47,786 — 47,786 Bank deposit sweep income 30,567 — — — 30,567 Other 11,983 — 1,318 115 13,416 Total revenue from contracts with customers 403,295 57,414 269,117 182 730,008 Other sources of revenue: Interest 18,753 — 5,390 507 24,650 Principal transactions, net 1,164 — 19,853 (2,118) 18,899 Other 1,128 9 741 324 2,202 Total other sources of revenue 21,045 9 25,984 (1,287) 45,751 Total revenue $ 424,340 $ 57,423 $ 295,101 $ (1,105) $ 775,759 (Expressed in thousands) For the Nine Months Ended September 30, 2019 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenue from contracts with customers: Commissions from sales and trading $ 110,496 $ — $ 98,621 $ 16 $ 209,133 Mutual fund income 29,788 (5) 3 13 29,799 Advisory fees 181,634 53,572 9 26 235,241 Investment banking - capital markets 9,568 — 32,065 — 41,633 Investment banking - advisory — — 40,214 — 40,214 Bank deposit sweep income 94,692 — — — 94,692 Other 10,101 2 1,289 2,369 13,761 Total revenue from contracts with customers 436,279 53,569 172,201 2,424 664,473 Other sources of revenue: Interest 27,699 — 9,566 1,356 38,621 Principal transactions, net 2,292 — 24,984 (5,187) 22,089 Other 11,239 7 97 972 12,315 Total other sources of revenue 41,230 7 34,647 (2,859) 73,025 Total revenue $ 477,509 $ 53,576 $ 206,848 $ (435) $ 737,498 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 $30.9 million and $28.9 million at September 30, 2020 and December 31, 2019, respectively. The Company had no significant impairments related to these receivables during the three and nine months ended September 30, 2020. Deferred revenue relates to IRA fees received annually in advance on customers' 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 $1.3 million and $408,000 at September 30, 2020 and December 31, 2019, 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) As of September 30, 2020 December 31, 2019 Contract assets (receivables): Commission (1) $ 780 $ 2,824 Mutual fund income (2) 5,866 6,746 Advisory fees (3) 1,431 1,594 Bank deposit sweep income (4) 697 3,454 Investment banking fees (5) 15,983 9,284 Other 6,100 4,986 Total contract assets $ 30,857 $ 28,888 Deferred revenue (payables): Investment banking fees (6) $ 659 $ 408 IRA fees (7) 636 — Total deferred revenue $ 1,295 $ 408 (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 fees earned but not yet received. (6) Retainer fees and fees earned from certain advisory transactions where the performance obligations have not yet been satisfied. (7) Fee received in advance on an annual basis. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per share Basic earnings per share is computed by dividing net income over 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 For the Nine Months Ended September 30, 2020 2019 2020 2019 Basic weighted average number of shares outstanding 12,553,802 12,825,944 12,696,143 12,940,129 Net dilutive effect of share-based awards, treasury method (1) 592,784 1,007,050 498,291 906,010 Diluted weighted average number of shares outstanding 13,146,586 13,832,994 13,194,434 13,846,139 Net income $ 15,639 $ 3,949 $ 41,106 $ 27,518 Earnings per share Basic $ 1.25 $ 0.31 $ 3.24 $ 2.13 Diluted $ 1.19 $ 0.29 $ 3.12 $ 1.99 (1) For both the three and nine months ended September 30, 2020, the diluted earnings per share computation does not include the anti-dilutive effect of 10,770 shares of Class A Stock granted under share-based compensation arrangements (7,628 shares for both the three and nine months ended September 30, 2019). |
Receivable From and Payable to
Receivable From and Payable to Brokers, Dealers and Clearing Organizations | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 December 31, 2019 Receivable from brokers, dealers and clearing organizations consists of: Securities borrowed $ 128,199 $ 99,635 Receivable from brokers 29,088 19,024 Securities failed to deliver 14,565 7,173 Clearing organizations 34,165 36,269 Other 1,239 1,192 Total $ 207,256 $ 163,293 Payable to brokers, dealers and clearing organizations consists of: Securities loaned $ 291,969 $ 234,343 Payable to brokers 2,280 4,548 Securities failed to receive 19,421 14,603 Other 53,279 267,481 Total $ 366,949 $ 520,975 |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2020 | |
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") Background 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 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. Over the last ten years, the Company has bought back $142.5 million of ARS pursuant to these settlements. These buybacks coupled with ARS issuer redemptions and tender offers have significantly reduced the level of ARS held by Eligible Investors (as defined). As of September 30, 2020, the Company had $1.3 million of ARS remaining to purchase from Eligible Investors 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. Over the last ten years, the Company has purchased $106.1 million of ARS pursuant to these legal settlements and awards. The Company has completed its ARS purchase obligations under such legal settlements and awards. As of September 30, 2020, the Company owned $30.7 million of ARS. This amount represents the unredeemed or unsold amount that the Company holds as a result of ARS buybacks pursuant to the settlements with the Regulators and the legal settlements and awards referred to above. Valuation The Company’s ARS owned and ARS purchase commitments referred to above have, for the most part, been subject to issuer tender offers. As a result, the Company has valued the ARS securities owned and the ARS purchase commitments at the tender offer price and categorized them in Level 3 of the fair value hierarchy due to the illiquid nature of the securities. The ARS purchase commitments related to the settlements with the Regulators are considered derivative assets or liabilities. The ARS purchase commitments represent the difference between the principal value and the fair value of the ARS the Company is committed to purchase. The fair value of ARS and ARS purchase commitments is particularly sensitive to movements in interest rates. However, an increase or decrease in short-term interest rates may or may not result in a higher or lower tender offer in the future or the tender offer price may not provide a reasonable estimate of the fair value of the securities. In such cases, other valuation techniques might be necessary. As of September 30, 2020, the Company had a valuation adjustment (unrealized loss) totaling $5.2 million which consists of $5.0 million for ARS owned (which is included as a reduction to securities owned on the condensed consolidated balance sheet) and $191,510 for ARS purchase commitments from settlements with the Regulators (which is included in accounts payable and other liabilities on the condensed consolidated balance sheet). 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, 2020: (Expressed in thousands) Fair Value Unfunded Redemption Redemption Hedge funds (1) $ 1,138 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 4,351 1,238 N/A N/A $ 5,489 $ 1,238 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. (2) Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2019: (Expressed in thousands) Fair Value Unfunded Redemption Redemption Hedge funds (1) $ 1,589 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 4,227 1,339 N/A N/A $ 5,816 $ 1,339 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. (2) Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources. During the third quarter of 2020, the Company made an investment in a financial technologies firm. The Company elected the fair value option for this investment and it is included in other assets on the condensed consolidated balance sheet. The Company determined the fair value of the investment based on an implied market-multiple approach and observable market data, including comparable company transactions. The investment is categorized in Level 2 of the fair value hierarchy. 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, 2020 and December 31, 2019, 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, 2020 : (Expressed in thousands) Fair Value Measurements as of September 30, 2020 Level 1 Level 2 Level 3 Total Assets Deposits with clearing organizations $ 35,344 $ — $ — $ 35,344 Securities owned: U.S. Treasury securities 470,683 — — 470,683 U.S. Agency securities — 14,787 — 14,787 Sovereign obligations — 207 — 207 Corporate debt and other obligations — 27,111 — 27,111 Mortgage and other asset-backed securities — 2,963 — 2,963 Municipal obligations — 46,645 — 46,645 Convertible bonds — 19,992 — 19,992 Corporate equities 32,121 — — 32,121 Money markets 1,470 — — 1,470 Auction rate securities — — 30,701 30,701 Securities owned, at fair value 504,274 111,705 30,701 646,680 Investments (1) — 3,961 — 3,961 Derivative contracts: TBAs — 275 — 275 Total $ 539,618 $ 115,941 $ 30,701 $ 686,260 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 181,419 $ — $ — $ 181,419 U.S. Agency securities — 4,972 — 4,972 Sovereign obligations — 936 — 936 Corporate debt and other obligations — 6,049 — 6,049 Convertible bonds — 6,434 — 6,434 Corporate equities 22,639 — — 22,639 Securities sold but not yet purchased, at fair value 204,058 18,391 — 222,449 Derivative contracts: Futures 116 — — 116 TBAs — 220 — 220 ARS purchase commitments — — 192 192 Derivative contracts, total 116 220 192 528 Total $ 204,174 $ 18,611 $ 192 $ 222,977 (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, 2019: (Expressed in thousands) Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Deposits with clearing organizations $ 25,118 $ — $ — $ 25,118 Securities owned: U.S. Treasury securities 613,030 — — 613,030 U.S. Agency securities 19,917 15,974 — 35,891 Sovereign obligations — 11,405 — 11,405 Corporate debt and other obligations — 8,310 — 8,310 Mortgage and other asset-backed securities — 2,697 — 2,697 Municipal obligations — 40,260 — 40,260 Convertible bonds — 29,816 — 29,816 Corporate equities 32,215 — — 32,215 Money markets 781 — — 781 Auction rate securities — 25,314 — 25,314 Securities owned, at fair value 665,943 133,776 — 799,719 Total $ 691,061 $ 133,776 $ — $ 824,837 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 52,882 $ — $ — $ 52,882 U.S. Agency securities — 18 — 18 Sovereign obligations — 6,405 — 6,405 Corporate debt and other obligations — 664 — 664 Mortgage and other asset-backed securities — 18,624 — 18,624 Corporate equities 21,978 — — 21,978 Securities sold but not yet purchased, at fair value 74,860 25,711 — 100,571 Derivative contracts: Futures 267 — — 267 TBAs — 124 — 124 ARS purchase commitments — 1,023 — 1,023 Derivative contracts, total 267 1,147 — 1,414 Total $ 75,127 $ 26,858 $ — $ 101,985 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, 2020: (Expressed in thousands) Level 3 Assets and Liabilities For the Three Months Ended September 30, 2020 Total Realized Beginning and Unrealized Purchases Sales and Transfers Ending Balance Gains (Losses) (3)(4) and Issuances Settlements In (Out) Balance Assets Auction rate securities (1) 29,566 (165) 1,300 — — 30,701 Liabilities ARS Purchase Commitments (2) 332 140 — — — 192 (1) Represents 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. (4) Unrealized gains are attributable to assets or liabilities that are still held at the reporting date. For the three months ended September 30, 2020, Level 3 assets increased by $1.1 million. There were no balances or changes in Level 3 assets and liabilities during the three months ended September 30, 2019. 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, 2020 and 2019: (Expressed in thousands) Level 3 Assets and Liabilities For the Nine Months Ended September 30, 2020 Total Realized Beginning and Unrealized Purchases Sales and Transfers Ending Balance Gains (Losses) (4)(5) and Issuances Settlements In (Out) Balance Assets Auction rate securities (1) (2) — (165) 1,300 — 29,566 30,701 Liabilities ARS Purchase Commitments (1) (3) — 140 — — 332 192 (1) Transferred to Level 3 of the fair value hierarchy due to the illiquid nature of the securities as result of the length of time since the last tender offer. (2) Represents auction rate securities that failed in the auction rate market. (3) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (4) Included in principal transactions in the condensed consolidated statement of income. (5) Unrealized gains are attributable to assets or liabilities that are still held at the reporting date. (Expressed in thousands) Level 3 Assets and Liabilities For the Nine Months Ended September 30, 2019 Total Realized Beginning and Unrealized Purchases Sales and Transfers Ending Balance Gains (3)(4) and Issuances Settlements In (Out) Balance Assets Auction rate securities (1) (2) 21,699 1 — (350) (21,350) — Investments 101 5 — — (106) — ( 1) Transferred to Level 2 of the fair value hierarchy as a result of recent tender offer activities. (2) Represents auction rate securities that failed in the auction rate market. (3) Included in principal transactions in the condensed consolidated statement of income, except for gains from investments which are included in other income in the condensed consolidated statement of income. (4) Unrealized gains 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., right-of-use lease assets, lease liabilities, 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 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, 2020: (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 32,080 $ 32,080 $ — $ — $ 32,080 Deposits with clearing organization 41,858 41,858 — — 41,858 Receivable from brokers, dealers and clearing organizations: Securities borrowed 128,199 — 128,199 — 128,199 Receivables from brokers 29,088 — 29,088 — 29,088 Securities failed to deliver 14,565 — 14,565 — 14,565 Clearing organizations 34,165 — 34,165 — 34,165 Other 1,184 — 1,184 — 1,184 207,201 — 207,201 — 207,201 Receivable from customers 1,095,035 — 1,095,035 — 1,095,035 Notes receivable, net 44,723 — 44,723 — 44,723 Investments (1) 75,785 — 75,785 — 75,785 (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 $ 18,251 $ 18,251 $ — $ — $ 18,251 Bank call loans 156,900 — 156,900 — 156,900 Payables to brokers, dealers and clearing organizations: Securities loaned 291,969 — 291,969 — 291,969 Payable to brokers 2,280 — 2,280 — 2,280 Securities failed to receive 19,421 — 19,421 — 19,421 Other 53,163 — 53,163 — 53,163 366,833 — 366,833 — 366,833 Payables to customers 380,746 — 380,746 — 380,746 Securities sold under agreements to repurchase 252,827 — 252,827 — 252,827 Senior secured notes 125,000 — 126,111 — 126,111 Assets and liabilities not measured at fair value as of December 31, 2019: (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 79,550 $ 79,550 $ — $ — $ 79,550 Deposits with clearing organization 23,297 23,297 — — 23,297 Receivable from brokers, dealers and clearing organizations: Securities borrowed 99,635 — 99,635 — 99,635 Receivables from brokers 19,024 — 19,024 — 19,024 Securities failed to deliver 7,173 — 7,173 — 7,173 Clearing organizations 36,269 — 36,269 — 36,269 Other 1,316 — 1,316 — 1,316 163,417 — 163,417 — 163,417 Receivable from customers 796,934 — 796,934 — 796,934 Notes receivable, net 43,670 — 43,670 — 43,670 Investments (1) 73,971 — 73,971 — 73,971 (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 Payables to brokers, dealers and clearing organizations: Securities loaned $ 234,343 $ — $ 234,343 $ — $ 234,343 Payable to brokers 4,548 — 4,548 — 4,548 Securities failed to receive 14,603 — 14,603 — 14,603 Other 267,214 — 267,214 — 267,214 520,708 — 520,708 — 520,708 Payables to customers 334,735 — 334,735 — 334,735 Securities sold under agreements to repurchase 287,265 — 287,265 — 287,265 Senior secured notes 150,000 — 154,988 — 154,988 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, 2020, 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 the condensed consolidated balance sheet in receivable from brokers, dealers and clearing organizations or payable to brokers, dealers and clearing organizations and in the condensed consolidated statement of income as principal transactions revenue, net. The notional amounts and fair values of the Company's derivatives as of September 30, 2020 and December 31, 2019 by product were as follows: (Expressed in thousands) Fair Value of Derivative Instruments as of September 30, 2020 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 22,885 $ 275 $ 22,885 $ 275 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 3,630,000 $ 116 Other contracts TBAs 19,585 220 ARS purchase commitments 1,291 192 $ 3,650,876 $ 528 (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. (Expressed in thousands) Fair Value of Derivative Instruments as of December 31, 2019 Description Notional Fair Value Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 5,209,000 $ 267 Other contracts TBAs 13,245 124 ARS purchase commitments 7,128 1,023 $ 5,229,373 $ 1,414 (1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset. The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the condensed consolidated income statements for the three and nine months ended September 30, 2020 and 2019: (Expressed in thousands) The Effect of Derivative Instruments in the Income Statement For the Three Months Ended September 30, 2020 Recognized in Income on Derivatives Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ (15) Other contracts Foreign exchange forward contracts Other revenue 67 TBAs Principal transactions revenue (17) ARS purchase commitments Principal transactions revenue 140 $ 175 (Expressed in thousands) The Effect of Derivative Instruments in the Income Statement For the Three Months Ended September 30, 2019 Recognized in Income on Derivatives Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ (443) Other contracts Foreign exchange forward contracts Other revenue 5 TBAs Principal transactions revenue (9) ARS purchase commitments Principal transactions revenue (242) $ (689) (Expressed in thousands) The Effect of Derivative Instruments in the Income Statement For the Nine Months Ended September 30, 2020 Recognized in Income on Derivatives Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ (8,362) Other contracts Foreign exchange forward contracts Other revenue 89 TBAs Principal transactions revenue (31) ARS purchase commitments Principal transactions revenue 831 $ (7,473) (Expressed in thousands) The Effect of Derivative Instruments in the Income Statement For the Nine Months Ended September 30, 2019 Recognized in Income on Derivatives Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ (3,109) Other contracts Foreign exchange forward contracts Other revenue 15 TBAs Principal transactions revenue (85) ARS purchase commitments Principal transactions revenue 90 $ (3,089) |
Collateralized Transactions
Collateralized Transactions | 9 Months Ended |
Sep. 30, 2020 | |
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 with commercial banks. Bank call loans are generally payable on demand and bear interest at various rates. As of September 30, 2020, the Company's bank call loans outstanding balance was $156.9 million ($0 as of December 31, 2019); such loans were collateralized by the Firm's securities and customer securities with market values of approximately $44.9 million and $140.6 million, respectively, with commercial banks. As of September 30, 2020, the Company had approximately $1.5 billion of customer securities under customer margin loans that are available to be pledged, of which the Company has re-pledged approximately $247.3 million under securities loan agreements. As of September 30, 2020, the Company had pledged $382.8 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, 2020, 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, 2020: (Expressed in thousands) Overnight and Open Repurchase agreements: U.S. Government and Agency securities $ 444,290 Securities loaned: Equity securities 291,969 Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 736,259 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, 2020 and December 31, 2019: As of September 30, 2020 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 191,463 $ (191,463) $ — $ — $ — $ — Securities borrowed (1) 128,199 — 128,199 (126,755) — 1,444 Total $ 319,662 $ (191,463) $ 128,199 $ (126,755) $ — $ 1,444 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Repurchase agreements $ 444,290 $ (191,463) $ 252,827 $ (250,619) $ — $ 2,208 Securities loaned (2) 291,969 — 291,969 (284,998) — 6,971 Total $ 736,259 $ (191,463) $ 544,796 $ (535,617) $ — $ 9,179 (2) Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. As of December 31, 2019 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 55,927 $ (55,927) $ — $ — $ — $ — Securities borrowed (1) 99,635 — 99,635 (97,702) — 1,933 Total $ 155,562 $ (55,927) $ 99,635 $ (97,702) $ — $ 1,933 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Repurchase agreements $ 343,192 $ (55,927) $ 287,265 $ (285,264) $ — $ 2,001 Securities loaned (2) 234,343 — 234,343 (228,548) — 5,795 Total $ 577,535 $ (55,927) $ 521,608 $ (513,812) $ — $ 7,796 (2) Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. 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, 2020, the Company did not have any repurchase agreements or 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, 2020, the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $125.8 million ($96.3 million as of December 31, 2019) and $191.4 million ($55.8 million as of December 31, 2019), respectively, of which the Company has sold and re-pledged approximately $36.7 million ($19.3 million as of December 31, 2019) under securities loaned transactions and $191.4 million under repurchase agreements ($55.8 million as of December 31, 2019). 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 $486.2 million, as presented on the face of the condensed consolidated balance sheet as of September 30, 2020 ($357.1 million as of December 31, 2019). 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, 2020 were receivables from three major U.S. broker-dealers totaling approximately $75.6 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, 2020 were 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, 2020, 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, 2020 | |
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. 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, 2020 and December 31, 2019: (Expressed in thousands) As of September 30, 2020 Total VIE Assets (1) Carrying Value of the Capital Maximum Assets Liabilities Hedge funds $ 560,823 $ — $ — $ — $ — (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (Expressed in thousands) As of December 31, 2019 Total (1) Carrying Value of the Capital Maximum Assets (2) Liabilities Hedge funds $ 390,063 $ 259 $ — $ — $ 259 (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (2) Represents the Company's interest 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, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 11. Long-term debt (Expressed in thousands) Issued Maturity Date September 30, 2020 December 31, 2019 5.50% Senior Secured Notes 10/1/2025 $ 125,000 $ — 6.75% Senior Secured Notes 7/1/2022 — 150,000 Unamortized Debt Issuance Costs (1,136) (485) $ 123,864 $ 149,515 5.50% Senior Secured Notes due 2025 (the "Notes") On September 22, 2020, the Parent issued $125.0 million aggregate principal amount of 5.50% Senior Secured Notes due 2025 (the “Notes”) at an issue price of 100% of the principal amount, under an indenture dated as of September 22, 2020 (the “Indenture”), among the Parent, the Parent's subsidiaries, E.A. Viner International Co. and Viner Finance Inc. (together, the “Subsidiary Guarantors”), and The Bank of New York Mellon Trust Company, N.A., as trustee and as collateral agent (“Trustee”). The Notes were issued in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), to qualified institutional buyers in accordance with Rule 144A and to persons outside of the United States pursuant to Regulation S under the Securities Act. The Notes will mature on October 1, 2025 and bear interest at a rate of 5.50% per annum, payable semiannually on April 1st and October 1st, respectively, of each year. The Parent used the net proceeds from the offering of the Notes, along with cash on hand, to redeem in full its 6.75% Senior Secured Notes due July 1, 2022 (the “6.75% Notes”), in the principal amount of $150.0 million (the Parent held $1.4 million in treasury for a net outstanding amount of $148.6 million), and pay all related fees and expenses in relation thereto. The cost to issue the Notes was $3.0 million, of which $1.9 million was paid to its subsidiary, (Oppenheimer & Co Inc., who served as the initial purchaser of the offering), and was eliminated in consolidation. The remaining $1.1 million has been capitalized and is amortized over the term of the Notes. The Indenture governing the Notes contains covenants which place restrictions on the incurrence of indebtedness, the payment of dividends, the repurchase of equity, the sale of assets, the issuance of guarantees, mergers and acquisitions and the granting of liens. These covenants are subject to a number of important exceptions and qualifications. These exceptions and qualifications include, among other things, a variety of provisions that are intended to allow the Company to continue to conduct its brokerage operations in the ordinary course of business. In addition, certain of the covenants will be suspended upon the Parent attaining an investment grade debt rating for the Notes from both S&P Global Ratings and Moody’s Investors Service, Inc. Pursuant to the Indenture, the following covenants apply to the Parent and its restricted subsidiaries, but generally do not apply, or apply only in part, to its Regulated Subsidiaries (as defined): • limitation on indebtedness and issuances of preferred stock, which restricts the Parent’s ability to incur additional indebtedness or to issue preferred stock; • limitation on restricted payments, which generally restricts the Parent’s ability to declare certain dividends or distributions, repurchase its capital stock or to make certain investments; • limitation on dividends and other payment restrictions affecting restricted subsidiaries or Regulated Subsidiaries, which generally prohibits on the ability of certain of the Parent’s subsidiaries to pay dividends or make other transfers; • limitation on future Subsidiary Guarantors, which prohibits certain of the Parent’s subsidiaries from guaranteeing its indebtedness or indebtedness of any restricted subsidiary unless the Notes are comparably guaranteed; • limitation on transactions with shareholders and affiliates, which generally requires transactions among the Parent’s affiliated entities to be conducted on an arm’s-length basis; • limitation on liens, which generally prohibits the Parent and its restricted subsidiaries from granting liens unless the Notes are comparably secured; and • limitation on asset sales, which generally prohibits the Parent and certain of its subsidiaries from selling assets or certain securities or property of significant subsidiaries. The Indenture also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the Notes to become or to be declared due and payable. As of September 30, 2020, the Parent was in compliance with all of its covenants. The Notes are jointly and severally and fully and unconditionally guaranteed on a senior secured basis by the Subsidiary Guarantors and future subsidiaries required to guarantee the Notes pursuant to the Indenture. The Notes are secured by a first-priority security interest in substantially all of the Parent’s and the Subsidiary Guarantors’ existing and future tangible and intangible assets, subject to certain exceptions and permitted liens. Interest expense on the Notes for the period September 22, 2020 to September 30, 2020, was $171,875. 6.75% Senior Secured Notes due 2022 (the "6.75% 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 "6.75% Notes") at an issue price of 100% of the principal amount. Interest on the 6.75% Notes was payable semi-annually on January 1st and July 1st. The Company redeemed $50.0 million (25%) of the 6.75% Notes on August 25, 2019 plus accrued and unpaid interest and incurred $1.9 million in costs associated with paying the associated Call Premium ($1.7 million) and the write-off of debt issuance costs ($0.2 million) during the third quarter of 2019. During the first quarter of 2020, the Company repurchased $1.4 million of the 6.75% Notes. The Company recorded a gain of $85,560 on the repurchase during the first quarter of 2020. The 6.75% Notes were scheduled to mature on July 1, 2022. On August 28, 2020, the Parent issued a conditional notice of redemption to redeem the entire $150.0 million aggregate principal amount of the outstanding 6.75% Notes on September 28, 2020 (the “Redemption Date”). The Company held 1.4 million in treasury for a net outstanding amount of $148.6 million. The redemption was conditioned upon the consummation of a financing sufficient to provide funds to deposit with the Trustee to redeem the 6.75% Notes. On September 22, 2020, the Parent issued a notice to satisfy and discharge all of its obligations under the Indenture governing the 6.75% Notes (the "6.75% Notes Indenture"). In connection therewith, on September 22, 2020, the Parent deposited, with the Trustee for the 6.75% Notes, funds sufficient to redeem all outstanding 6.75% Notes on the Redemption Date and instructed the Trustee to apply such funds to redeem the 6.75% Notes on the Redemption Date. The redemption payment deposit was an amount equal to the redemption price of 101.6875% of the aggregate principal amount of the 6.75% Notes, which includes a call premium of $2.5 million plus accrued and unpaid interest thereon to, but not including, the Redemption Date. In addition, the Parent wrote off unamortized debt issuance costs of $337,000 On September 28, 2020, the 6.75% Notes were fully redeemed. In connection with the satisfaction and discharge of the 6.75% Notes Indenture, all of the obligations of the Parent and the Subsidiary Guarantors (other than certain customary provisions of the 6.75% Notes Indenture, including those relating to the compensation and indemnification of the Trustee, that expressly survive pursuant to the terms of the 6.75% Notes Indenture) were discharged and the guarantees of the Subsidiary Guarantors and the liens on the collateral securing the 6.75% Notes were released. Interest expense for the three and nine months ended September 30, 2020 on the 6.75% Notes was $2.4 million and $7.4 million, respectively ($3.0 million and $9.8 million, respectively, for the three and nine months ended September 30, 2019). |
Share Capital
Share Capital | 9 Months Ended |
Sep. 30, 2020 | |
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 For the Nine Months Ended 2020 2019 2020 2019 Class A Stock outstanding, beginning of period 12,445,479 12,756,308 12,698,703 12,941,809 Issued pursuant to share-based compensation plans 43,238 19,052 390,562 80,143 Repurchased and canceled pursuant to the stock buy-back (84,290) (76,657) (684,838) (323,249) Class A Stock outstanding, end of period 12,404,427 12,698,703 12,404,427 12,698,703 Stock buy-back On May 15, 2020, the Company announced that its Board of Directors approved a share repurchase program that authorizes the Company to purchase up to 530,000 shares of the Company's Class A Stock, representing approximately 4.2% of its 12,636,523 then issued and outstanding shares of Class A Stock. This authorization supplemented the 98,625 shares that remained authorized and available under the Company's previous share repurchase program for a total of 628,625 shares authorized and available for repurchase at May 15, 2020. During the three months ended September 30, 2020, the Company purchased and canceled an aggregate of 84,290 shares of Class A Stock for a total consideration of $2.0 million ($23.28 per share) under this program. During the nine months ended September 30, 2020, the Company purchased and canceled an aggregate of 684,838 shares of Class A Stock for a total consideration of $14.2 million ($20.78 per share) under this program. As of September 30, 2020, 434,697 shares remained available to be purchased under the share repurchase 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 Notes. All shares purchased will be canceled. The share repurchase program is expected to continue indefinitely. The timing and amounts of any purchases will be based 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, these repurchases may be commenced or suspended from time to time without prior notice. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 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. |
Regulatory Requirements
Regulatory Requirements | 9 Months Ended |
Sep. 30, 2020 | |
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, as amended (the "Exchange Act"). 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, 2020, the net capital of Oppenheimer as calculated under the Rule was $268.7 million or 20.83% of Oppenheimer's aggregate debit items. This was $242.9 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, 2020, Freedom had net capital of $4.9 million, which was $4.8 million in excess of the $100,000 required to be maintained at that date. As of September 30, 2020, the capital required and held under the Capital Requirements Directive ("CRD IV") for Oppenheimer Europe Ltd. was as follows: • Common Equity Tier 1 ratio 20.87% (required 4.5%); • Tier 1 Capital ratio 20.87% (required 6.0%); and • Total Capital ratio 27.83% (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 in January 2018. In addition to the capital requirement under CRD IV above, Oppenheimer Europe Ltd. is required to maintain a minimum capital of EUR 730,000. As of September 30, 2020, Oppenheimer Europe Ltd. was in compliance with its regulatory requirements. As of September 30, 2020, the regulatory capital of Oppenheimer Investments Asia Limited was $3.5 million, which was $3.1 million in excess of the $387,089 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. As of September 30, 2020, Oppenheimer Investment Asia Limited was in compliance with its regulatory requirements. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
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 pre-tax income (loss) of the Company for the three and nine months ended September 30, 2020 and 2019. 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 For the Nine Months Ended 2020 2019 2020 2019 Revenue Private client (1) $ 141,097 $ 152,054 $ 424,340 $ 477,509 Asset management (1) 20,632 18,368 57,423 53,576 Capital markets 114,289 64,068 295,101 206,848 Corporate/Other 241 303 (1,105) (435) Total $ 276,259 $ 234,793 $ 775,759 $ 737,498 Pre-Tax Income (Loss) Private client (1) $ 25,764 $ 35,251 $ 83,482 $ 121,501 Asset management (1) 6,426 4,932 14,714 12,492 Capital markets 19,369 (6,385) 41,548 (10,833) Corporate/Other (29,841) (27,302) (84,539) (83,221) Total $ 21,718 $ 6,496 $ 55,205 $ 39,939 (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, 2020 and 2019 was: (Expressed in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 265,606 $ 227,001 $ 735,504 $ 712,864 Europe/Middle East 9,152 7,257 35,276 22,592 Asia 1,501 535 4,979 2,042 Total $ 276,259 $ 234,793 $ 775,759 $ 737,498 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent eventsOn October 29, 2020, the Company announced a quarterly dividend in the amount of $0.12 per share, payable on November 26, 2020 to holders of Class A Stock and Class B Stock of record on November 12, 2020. |
Supplemental Guarantor Consolid
Supplemental Guarantor Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Supplemental Guarantor Consolidated Financial Statements | Condensed consolidating financial information On September 22, 2020, the Parent issued in a private offering $125.0 million aggregate principal amount of the Notes. The Company used the net proceeds from the offering of the Unregistered Notes to redeem in full its Old Notes. See note 11 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 11. 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, 2020 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated ASSETS Cash and cash equivalents $ 3,864 $ 188 $ 28,028 $ — $ 32,080 Deposits with clearing organizations — — 77,202 — 77,202 Receivable from brokers, dealers and clearing organizations — — 207,256 — 207,256 Receivable from customers, net of allowance for credit losses of $418 — — 1,095,035 — 1,095,035 Income tax receivable 46,136 14,923 (702) (57,365) 2,992 Securities owned, including amounts pledged of $486,165 at fair value — 1,438 645,241 1 646,680 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $37,224 and $4,190, respectively — — 44,723 — 44,723 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $100,968 — 20,989 7,927 — 28,916 Right-of-use lease assets, net of accumulated amortization of $43,933 — 150,115 4,551 — 154,666 Subordinated loan receivable 209 112,558 — (112,767) — Intangible assets — 400 31,700 — 32,100 Goodwill — — 137,889 — 137,889 Other assets (786) 1,367 148,501 (3) 149,079 Deferred tax assets — (28) (2,668) 2,696 — Investment in subsidiaries 779,573 593,310 (1) (1,372,882) — Intercompany receivables (87,257) 121,365 (7,777) (26,331) — Total assets $ 741,739 $ 1,016,625 $ 2,416,905 $ (1,566,651) $ 2,608,618 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 18,251 $ — $ 18,251 Bank call loans — — 156,900 — 156,900 Payable to brokers, dealers and clearing organizations — — 366,949 — 366,949 Payable to customers — — 380,746 — 380,746 Securities sold under agreements to repurchase — — 252,827 — 252,827 Securities sold but not yet purchased, at fair value — — 222,449 — 222,449 Accrued compensation — — 201,616 — 201,616 Income tax payable 2,440 22,189 34,769 (59,398) — Accounts payable and other liabilities 219 (10,320) 53,553 21 43,473 Lease liabilities — 190,603 4,745 — 195,348 Senior secured notes, net of debt issuance cost of $1,136 123,864 — — — 123,864 Subordinated indebtedness — — 112,558 (112,558) — Deferred tax liabilities — (7,298) 33,546 4,731 30,979 Intercompany payables — 26,335 — (26,335) — Total liabilities 126,523 221,509 1,838,909 (193,539) 1,993,402 Stockholders' equity Total stockholders' equity 615,216 795,116 577,996 (1,373,112) 615,216 Total liabilities and stockholders' equity $ 741,739 $ 1,016,625 $ 2,416,905 $ (1,566,651) $ 2,608,618 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2019 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated ASSETS Cash and cash equivalents $ 4,811 $ 2,179 $ 72,560 $ — $ 79,550 Deposits with clearing organizations — — 48,415 — 48,415 Receivable from brokers, dealers and clearing organizations — — 158,231 5,062 163,293 Receivable from customers, net of allowance for credit losses of $451 — — 796,934 — 796,934 Income tax receivable 42,556 16,469 — (53,855) 5,170 Securities owned, including amounts pledged of $357,120 at fair value — 1,352 798,367 — 799,719 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $38,355 and $3,673, respectively — — 43,670 — 43,670 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $94,773 — 22,537 8,840 — 31,377 Subordinated loan receivable 209 112,558 — (112,767) — Right-of-use lease assets, net of accumulated amortization of $25,186 — 153,780 6,517 — 160,297 Intangible assets — 400 31,700 — 32,100 Goodwill — — 137,889 — 137,889 Other assets 154 11,798 164,821 (10,432) 166,341 Deferred tax assets 4 7,048 2,449 (9,501) — Investment in subsidiaries 697,093 763,990 24,656 (1,485,739) — Intercompany receivables 2,875 67,923 — (70,798) — Total assets $ 747,702 $ 1,160,034 $ 2,295,049 $ (1,738,030) $ 2,464,755 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Payable to brokers, dealers and clearing organizations $ — $ — $ 520,975 $ — $ 520,975 Payable to customers — — 334,735 — 334,735 Securities sold under agreements to repurchase — — 287,265 — 287,265 Securities sold but not yet purchased, at fair value — — 100,571 — 100,571 Accrued compensation — — 207,358 — 207,358 Accounts payable and other liabilities 5,166 75 50,049 (10,565) 44,725 Lease liabilities — 196,234 6,906 — 203,140 Income tax payable — 40 703 (743) — Senior secured notes, net of debt issuance cost of $485 149,515 — — — 149,515 Subordinated indebtedness — — 112,558 (112,558) — Deferred tax liabilities — — 33,546 (9,797) 23,749 Intercompany payables 299 — — (299) — Total liabilities 154,980 196,349 1,654,666 (133,962) 1,872,033 Stockholders' equity Total stockholders' equity 592,722 963,685 640,383 (1,604,068) 592,722 Total liabilities and stockholders' equity $ 747,702 $ 1,160,034 $ 2,295,049 $ (1,738,030) $ 2,464,755 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING INCOME STATEMENT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 92,241 $ — $ 92,241 Advisory fees — — 88,963 (368) 88,595 Investment banking — — 68,120 (1,875) 66,245 Bank deposit sweep income — — 4,619 — 4,619 Interest — 2,058 7,594 (2,112) 7,540 Principal transactions, net — 8 7,695 — 7,703 Other — — 9,315 1 9,316 Total revenue — 2,066 278,547 (4,354) 276,259 EXPENSES Compensation and related expenses 259 — 189,395 — 189,654 Communications and technology 61 — 19,413 — 19,474 Occupancy and equipment costs — — 15,199 — 15,199 Clearing and exchange fees — — 6,211 — 6,211 Interest 2,596 — 2,977 (2,112) 3,461 Other 4,906 3 17,875 (2,242) 20,542 Total expenses 7,822 3 251,070 (4,354) 254,541 Pre-tax income (loss) (7,822) 2,063 27,477 — 21,718 Income taxes (2,010) 528 7,561 — 6,079 Net income (loss) (5,812) 1,535 19,916 — 15,639 Equity in earnings of subsidiaries 21,451 19,916 — (41,367) — Net income 15,639 21,451 19,916 (41,367) 15,639 Other comprehensive income — — 244 — 244 Total comprehensive income $ 15,639 $ 21,451 $ 20,160 $ (41,367) $ 15,883 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING INCOME STATEMENT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 78,627 $ — $ 78,627 Advisory fees — — 81,229 (342) 80,887 Investment banking — — 21,798 — 21,798 Bank deposit sweep income — — 28,894 — 28,894 Interest 59 2,059 12,299 (2,073) 12,344 Principal transactions, net — (34) 7,586 54 7,606 Other 3 — 4,635 (1) 4,637 Total revenue 62 2,025 235,068 (2,362) 234,793 EXPENSES Compensation and related expenses 273 — 151,012 (1) 151,284 Communications and technology 39 — 20,833 — 20,872 Occupancy and equipment costs — — 16,010 — 16,010 Clearing and exchange fees — (54) 5,469 54 5,469 Interest 3,038 — 10,566 (2,073) 11,531 Other 2,087 4 21,382 (342) 23,131 Total expenses 5,437 (50) 225,272 (2,362) 228,297 Pre-tax income (loss) (5,375) 2,075 9,796 — 6,496 Income taxes (1,364) 558 3,353 — 2,547 Net income (loss) (4,011) 1,517 6,443 — 3,949 Equity in earnings of subsidiaries 7,960 6,443 — (14,403) — Net income 3,949 7,960 6,443 (14,403) 3,949 Other comprehensive income — — 533 — 533 Total comprehensive income $ 3,949 $ 7,960 $ 6,976 $ (14,403) $ 4,482 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING INCOME STATEMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 297,126 $ — $ 297,126 Advisory fees — — 251,811 (1,071) 250,740 Investment banking — — 140,034 (1,875) 138,159 Bank deposit sweep income — — 30,567 — 30,567 Interest 2 6,174 24,732 (6,258) 24,650 Principal transactions, net — 57 18,842 — 18,899 Other 95 — 15,526 (3) 15,618 Total revenue 97 6,231 778,638 (9,207) 775,759 EXPENSES Compensation and related expenses 879 — 526,045 — 526,924 Communications and technology 144 — 60,545 — 60,689 Occupancy and equipment costs — — 46,611 — 46,611 Clearing and exchange fees — — 18,061 — 18,061 Interest 7,632 — 11,527 (6,258) 12,901 Other 5,358 8 52,951 (2,949) 55,368 Total expenses 14,013 8 715,740 (9,207) 720,554 Pre-tax income (loss) (13,916) 6,223 62,898 — 55,205 Income taxes (3,576) 1,623 16,052 — 14,099 Net income (loss) (10,340) 4,600 46,846 — 41,106 Equity in earnings of subsidiaries 51,446 46,846 — (98,292) — Net income 41,106 51,446 46,846 (98,292) 41,106 Other comprehensive income — — 187 — 187 Total comprehensive income $ 41,106 $ 51,446 $ 47,033 $ (98,292) $ 41,293 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING INCOME STATEMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 238,932 $ — $ 238,932 Advisory fees — — 236,278 (1,037) 235,241 Investment banking — — 81,847 — 81,847 Bank deposit sweep income — — 94,692 — 94,692 Interest 234 6,181 38,426 (6,220) 38,621 Principal transactions, net — 121 21,980 (12) 22,089 Other 3 2 26,070 1 26,076 Total revenue 237 6,304 738,225 (7,268) 737,498 EXPENSES Compensation and related expenses 1,098 — 466,330 (6) 467,422 Communications and technology 130 — 61,327 — 61,457 Occupancy and equipment costs — (1) 46,855 2 46,856 Clearing and exchange fees — — 16,479 — 16,479 Interest 9,788 — 34,141 (6,220) 37,709 Other 2,637 248 65,795 (1,044) 67,636 Total expenses 13,653 247 690,927 (7,268) 697,559 Pre-tax income (loss) (13,416) 6,057 47,298 — 39,939 Income taxes (3,702) 1,994 14,129 — 12,421 Net income (loss) (9,714) 4,063 33,169 — 27,518 Equity in earnings of subsidiaries 37,232 33,169 — (70,401) — Net income 27,518 37,232 33,169 (70,401) 27,518 Other comprehensive income — — 1,457 — 1,457 Total comprehensive income $ 27,518 $ 37,232 $ 34,626 $ (70,401) $ 28,975 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated Cash flows from operating activities: Cash provided by/(used in) operating activities $ 51,332 $ (1,991) $ (197,724) $ — $ (148,383) Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (3,708) — (3,708) Cash used in investing activities — — (3,708) — (3,708) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (4,597) — — — (4,597) Issuance of Class A non-voting common stock 34 — — — 34 Repurchase of Class A non-voting common stock for cancellation (14,228) — — — (14,228) Payments for employee taxes withheld related to vested share-based awards (5,771) — — — (5,771) Issuance of senior secured notes 125,000 — — — 125,000 Redemption of senior secured notes (148,574) — — — (148,574) Repurchase of senior secured notes (1,426) — — — (1,426) Debt issuance costs (210) — — — (210) Debt redemption costs (2,507) — — — (2,507) Increase in bank call loans, net — — 156,900 — 156,900 Cash provided by (used in) financing activities (52,279) — 156,900 — 104,621 Net decrease in cash and cash equivalents (947) (1,991) (44,532) — (47,470) Cash and cash equivalents, beginning of the period 4,811 2,179 72,560 — 79,550 Cash and cash equivalents, end of the period $ 3,864 $ 188 $ 28,028 $ — $ 32,080 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated Cash flows from operating activities: Cash provided by/(used in) operating activities $ 16,687 $ (3,292) $ 9,502 $ — $ 22,897 Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (8,672) — (8,672) Cash used in investing activities — — (6,952) — (6,952) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (4,408) — — — (4,408) Issuance of Class A non-voting common stock 83 — — — 83 Repurchase of Class A non-voting common stock for cancellation (8,400) — — — (8,400) Payments for employee taxes withheld related to vested share-based awards (1,014) — — — (1,014) Redemption of senior secured notes (50,000) — — — (50,000) Debt redemption costs (1,688) — — — (1,688) Decrease in bank call loans, net — — (15,000) — (15,000) Cash used in financing activities (65,427) — (15,000) — (80,427) Net decrease in cash and cash equivalents (48,740) (3,292) (12,450) — (64,482) Cash and cash equivalents, beginning of the period 53,525 3,826 33,324 — 90,675 Cash and cash equivalents, end of the period $ 4,785 $ 534 $ 20,874 $ — $ 26,193 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | 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, 2019 (the "Form 10-K"). The accompanying 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, 2020 are not necessarily indicative of the results to be expected for any future interim or annual period. On January 30, 2020, the spread of the novel coronavirus ("COVID-19") was declared a Public Health Emergency of International Concern by the World Health Organization ("WHO"). Subsequently, on March 11, 2020, the WHO characterized the COVID-19 outbreak as a pandemic (the "COVID-19 Pandemic"). The United States has the world’s most reported COVID-19 cases, and all 50 states and the District of Columbia have reported cases of infected individuals. The COVID-19 Pandemic coupled with the current market volatility ha s created an economic environment which may have significant accounting and financial reporting implications. |
Financial Instruments - Credi_2
Financial Instruments - Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Financing Receivable Credit Quality Indicators | The following table presents the disaggregation of defaulted notes by year of origination as of September 30, 2020: (Expressed in thousands) As of September 30, 2020 2020 $ 404 2019 476 2018 181 2017 748 2016 651 2015 and prior 3,157 Total $ 5,617 |
Financing Receivable, Allowance for Credit Loss | The following table presents activity in the allowance for uncollectibles of defaulted notes for the three and nine months ended September 30, 2020: (Expressed in thousands) For the Three Months Ended For the Nine Months Ended (1) September 30, 2020 Beginning balance $ 3,903 $ 3,673 Additions and other adjustments 287 517 Ending balance $ 4,190 $ 4,190 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Cost | The following table presents the weighted average lease term and weighted average discount rate for our operating leases as of September 30, 2020 and December 31, 2019: As of September 30, 2020 December 31, 2019 Weighted average remaining lease term (in years) 8.01 8.31 Weighted average discount rate 7.46% 7.89% The following table presents operating lease costs recognized for the three and nine months ended September 30, 2020 and 2019 which are included in occupancy and equipment costs on the condensed consolidated income statements: (Expressed in thousands) For the Three Months Ended For the Nine Months Ended 2020 2019 2020 2019 Operating lease costs: Real estate leases - Right-of-use lease asset amortization $ 5,862 $ 5,696 $ 17,326 $ 17,740 Real estate leases - Interest expense 3,720 4,145 11,475 11,792 Equipment leases - Right-of-use lease asset amortization 473 462 1,421 1,401 Equipment leases - Interest expense 48 57 153 171 |
Schedule of Maturities of Lease Liabilities | The maturities of lease liabilities as of September 30, 2020 and December 31, 2019 are as follows: (Expressed in thousands) As of September 30, 2020 December 31, 2019 2020 $ 10,171 $ 42,585 2021 39,729 37,531 2022 35,707 33,416 2023 32,819 31,187 2024 28,604 27,234 After 2025 115,290 108,098 Total lease payments $ 262,320 $ 280,051 Less interest (66,972) (76,911) Present value of lease liabilities $ 195,348 $ 203,140 |
Revenues from contracts with _2
Revenues from contracts with customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and 2019: (Expressed in thousands) For the Three Months Ended September 30, 2020 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenue from contracts with customers: Commissions from sales and trading $ 40,742 $ — $ 43,389 $ 3 $ 84,134 Mutual fund income 8,097 — 2 8 8,107 Advisory fees 67,949 20,634 — 12 88,595 Investment banking - capital markets 3,962 — 31,577 — 35,539 Investment banking - advisory — — 30,706 — 30,706 Bank deposit sweep income 4,619 — — — 4,619 Other 5,720 — 32 9 5,761 Total revenue from contracts with customers 131,089 20,634 105,706 32 257,461 Other sources of revenue: Interest 5,939 (5) 1,539 67 7,540 Principal transactions, net 1,223 — 6,357 123 7,703 Other 2,846 3 687 19 3,555 Total other sources of revenue 10,008 (2) 8,583 209 18,798 Total revenue $ 141,097 $ 20,632 $ 114,289 $ 241 $ 276,259 (Expressed in thousands) For the Three Months Ended September 30, 2019 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenue from contracts with customers: Commissions from sales and trading $ 35,994 $ — $ 32,569 $ 9 $ 68,572 Mutual fund income 10,050 — 1 4 10,055 Advisory fees 62,510 18,366 2 9 80,887 Investment banking - capital markets 2,557 — 8,773 — 11,330 Investment banking - advisory — — 10,468 — 10,468 Bank deposit sweep income 28,894 — — — 28,894 Other 3,296 2 448 576 4,322 Total revenue from contracts with customers 143,301 18,368 52,261 598 214,528 Other sources of revenue: Interest 8,652 — 3,272 420 12,344 Principal transactions, net 70 — 8,515 (979) 7,606 Other 31 — 20 264 315 Total other sources of revenue 8,753 — 11,807 (295) 20,265 Total revenue $ 152,054 $ 18,368 $ 64,068 $ 303 $ 234,793 |
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) As of September 30, 2020 December 31, 2019 Contract assets (receivables): Commission (1) $ 780 $ 2,824 Mutual fund income (2) 5,866 6,746 Advisory fees (3) 1,431 1,594 Bank deposit sweep income (4) 697 3,454 Investment banking fees (5) 15,983 9,284 Other 6,100 4,986 Total contract assets $ 30,857 $ 28,888 Deferred revenue (payables): Investment banking fees (6) $ 659 $ 408 IRA fees (7) 636 — Total deferred revenue $ 1,295 $ 408 (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 fees earned but not yet received. (6) Retainer fees and fees earned from certain advisory transactions where the performance obligations have not yet been satisfied. (7) Fee received in advance on an annual basis. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 For the Nine Months Ended September 30, 2020 2019 2020 2019 Basic weighted average number of shares outstanding 12,553,802 12,825,944 12,696,143 12,940,129 Net dilutive effect of share-based awards, treasury method (1) 592,784 1,007,050 498,291 906,010 Diluted weighted average number of shares outstanding 13,146,586 13,832,994 13,194,434 13,846,139 Net income $ 15,639 $ 3,949 $ 41,106 $ 27,518 Earnings per share Basic $ 1.25 $ 0.31 $ 3.24 $ 2.13 Diluted $ 1.19 $ 0.29 $ 3.12 $ 1.99 (1) For both the three and nine months ended September 30, 2020, the diluted earnings per share computation does not include the anti-dilutive effect of 10,770 shares of Class A Stock granted under share-based compensation arrangements (7,628 shares for both the three and nine months ended September 30, 2019). |
Receivable From and Payable t_2
Receivable From and Payable to Brokers, Dealers and Clearing Organizations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Brokers and Dealers [Abstract] | |
Receivable from and Payable to Brokers, Dealers and Clearing Organizations | (Expressed in thousands) As of September 30, 2020 December 31, 2019 Receivable from brokers, dealers and clearing organizations consists of: Securities borrowed $ 128,199 $ 99,635 Receivable from brokers 29,088 19,024 Securities failed to deliver 14,565 7,173 Clearing organizations 34,165 36,269 Other 1,239 1,192 Total $ 207,256 $ 163,293 Payable to brokers, dealers and clearing organizations consists of: Securities loaned $ 291,969 $ 234,343 Payable to brokers 2,280 4,548 Securities failed to receive 19,421 14,603 Other 53,279 267,481 Total $ 366,949 $ 520,975 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Investments in Company-Sponsored Funds | The following table provides information about the Company's investments in Company-sponsored funds as of September 30, 2020: (Expressed in thousands) Fair Value Unfunded Redemption Redemption Hedge funds (1) $ 1,138 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 4,351 1,238 N/A N/A $ 5,489 $ 1,238 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. (2) Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2019: (Expressed in thousands) Fair Value Unfunded Redemption Redemption Hedge funds (1) $ 1,589 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 4,227 1,339 N/A N/A $ 5,816 $ 1,339 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. (2) Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources. During the third quarter of 2020, the Company made an investment in a financial technologies firm. The Company elected the fair value option for this investment and it is included in other assets on the condensed consolidated balance sheet. The Company determined the fair value of the investment based on an implied market-multiple approach and observable market data, including comparable company transactions. The investment is categorized in Level 2 of the fair value hierarchy. |
Assets and Liabilities Measured at Fair Value on Recurring Basis | bilities, recorded at fair value on a recurring basis as of September 30, 2020 and December 31, 2019, 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, 2020 : (Expressed in thousands) Fair Value Measurements as of September 30, 2020 Level 1 Level 2 Level 3 Total Assets Deposits with clearing organizations $ 35,344 $ — $ — $ 35,344 Securities owned: U.S. Treasury securities 470,683 — — 470,683 U.S. Agency securities — 14,787 — 14,787 Sovereign obligations — 207 — 207 Corporate debt and other obligations — 27,111 — 27,111 Mortgage and other asset-backed securities — 2,963 — 2,963 Municipal obligations — 46,645 — 46,645 Convertible bonds — 19,992 — 19,992 Corporate equities 32,121 — — 32,121 Money markets 1,470 — — 1,470 Auction rate securities — — 30,701 30,701 Securities owned, at fair value 504,274 111,705 30,701 646,680 Investments (1) — 3,961 — 3,961 Derivative contracts: TBAs — 275 — 275 Total $ 539,618 $ 115,941 $ 30,701 $ 686,260 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 181,419 $ — $ — $ 181,419 U.S. Agency securities — 4,972 — 4,972 Sovereign obligations — 936 — 936 Corporate debt and other obligations — 6,049 — 6,049 Convertible bonds — 6,434 — 6,434 Corporate equities 22,639 — — 22,639 Securities sold but not yet purchased, at fair value 204,058 18,391 — 222,449 Derivative contracts: Futures 116 — — 116 TBAs — 220 — 220 ARS purchase commitments — — 192 192 Derivative contracts, total 116 220 192 528 Total $ 204,174 $ 18,611 $ 192 $ 222,977 (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, 2019: (Expressed in thousands) Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Deposits with clearing organizations $ 25,118 $ — $ — $ 25,118 Securities owned: U.S. Treasury securities 613,030 — — 613,030 U.S. Agency securities 19,917 15,974 — 35,891 Sovereign obligations — 11,405 — 11,405 Corporate debt and other obligations — 8,310 — 8,310 Mortgage and other asset-backed securities — 2,697 — 2,697 Municipal obligations — 40,260 — 40,260 Convertible bonds — 29,816 — 29,816 Corporate equities 32,215 — — 32,215 Money markets 781 — — 781 Auction rate securities — 25,314 — 25,314 Securities owned, at fair value 665,943 133,776 — 799,719 Total $ 691,061 $ 133,776 $ — $ 824,837 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 52,882 $ — $ — $ 52,882 U.S. Agency securities — 18 — 18 Sovereign obligations — 6,405 — 6,405 Corporate debt and other obligations — 664 — 664 Mortgage and other asset-backed securities — 18,624 — 18,624 Corporate equities 21,978 — — 21,978 Securities sold but not yet purchased, at fair value 74,860 25,711 — 100,571 Derivative contracts: Futures 267 — — 267 TBAs — 124 — 124 ARS purchase commitments — 1,023 — 1,023 Derivative contracts, total 267 1,147 — 1,414 Total $ 75,127 $ 26,858 $ — $ 101,985 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, 2020: (Expressed in thousands) Level 3 Assets and Liabilities For the Three Months Ended September 30, 2020 Total Realized Beginning and Unrealized Purchases Sales and Transfers Ending Balance Gains (Losses) (3)(4) and Issuances Settlements In (Out) Balance Assets Auction rate securities (1) 29,566 (165) 1,300 — — 30,701 Liabilities ARS Purchase Commitments (2) 332 140 — — — 192 (1) Represents 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. (4) Unrealized gains are attributable to assets or liabilities that are still held at the reporting date. For the three months ended September 30, 2020, Level 3 assets increased by $1.1 million. There were no balances or changes in Level 3 assets and liabilities during the three months ended September 30, 2019. 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, 2020 and 2019: (Expressed in thousands) Level 3 Assets and Liabilities For the Nine Months Ended September 30, 2020 Total Realized Beginning and Unrealized Purchases Sales and Transfers Ending Balance Gains (Losses) (4)(5) and Issuances Settlements In (Out) Balance Assets Auction rate securities (1) (2) — (165) 1,300 — 29,566 30,701 Liabilities ARS Purchase Commitments (1) (3) — 140 — — 332 192 (1) Transferred to Level 3 of the fair value hierarchy due to the illiquid nature of the securities as result of the length of time since the last tender offer. (2) Represents auction rate securities that failed in the auction rate market. (3) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (4) Included in principal transactions in the condensed consolidated statement of income. (5) Unrealized gains are attributable to assets or liabilities that are still held at the reporting date. (Expressed in thousands) Level 3 Assets and Liabilities For the Nine Months Ended September 30, 2019 Total Realized Beginning and Unrealized Purchases Sales and Transfers Ending Balance Gains (3)(4) and Issuances Settlements In (Out) Balance Assets Auction rate securities (1) (2) 21,699 1 — (350) (21,350) — Investments 101 5 — — (106) — ( 1) Transferred to Level 2 of the fair value hierarchy as a result of recent tender offer activities. |
Financial Instruments, Estimate Not Practicable, Fair Value | d at fair value as of September 30, 2020: (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 32,080 $ 32,080 $ — $ — $ 32,080 Deposits with clearing organization 41,858 41,858 — — 41,858 Receivable from brokers, dealers and clearing organizations: Securities borrowed 128,199 — 128,199 — 128,199 Receivables from brokers 29,088 — 29,088 — 29,088 Securities failed to deliver 14,565 — 14,565 — 14,565 Clearing organizations 34,165 — 34,165 — 34,165 Other 1,184 — 1,184 — 1,184 207,201 — 207,201 — 207,201 Receivable from customers 1,095,035 — 1,095,035 — 1,095,035 Notes receivable, net 44,723 — 44,723 — 44,723 Investments (1) 75,785 — 75,785 — 75,785 (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 $ 18,251 $ 18,251 $ — $ — $ 18,251 Bank call loans 156,900 — 156,900 — 156,900 Payables to brokers, dealers and clearing organizations: Securities loaned 291,969 — 291,969 — 291,969 Payable to brokers 2,280 — 2,280 — 2,280 Securities failed to receive 19,421 — 19,421 — 19,421 Other 53,163 — 53,163 — 53,163 366,833 — 366,833 — 366,833 Payables to customers 380,746 — 380,746 — 380,746 Securities sold under agreements to repurchase 252,827 — 252,827 — 252,827 Senior secured notes 125,000 — 126,111 — 126,111 Assets and liabilities not measured at fair value as of December 31, 2019: (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 79,550 $ 79,550 $ — $ — $ 79,550 Deposits with clearing organization 23,297 23,297 — — 23,297 Receivable from brokers, dealers and clearing organizations: Securities borrowed 99,635 — 99,635 — 99,635 Receivables from brokers 19,024 — 19,024 — 19,024 Securities failed to deliver 7,173 — 7,173 — 7,173 Clearing organizations 36,269 — 36,269 — 36,269 Other 1,316 — 1,316 — 1,316 163,417 — 163,417 — 163,417 Receivable from customers 796,934 — 796,934 — 796,934 Notes receivable, net 43,670 — 43,670 — 43,670 Investments (1) 73,971 — 73,971 — 73,971 (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 Payables to brokers, dealers and clearing organizations: Securities loaned $ 234,343 $ — $ 234,343 $ — $ 234,343 Payable to brokers 4,548 — 4,548 — 4,548 Securities failed to receive 14,603 — 14,603 — 14,603 Other 267,214 — 267,214 — 267,214 520,708 — 520,708 — 520,708 Payables to customers 334,735 — 334,735 — 334,735 Securities sold under agreements to repurchase 287,265 — 287,265 — 287,265 Senior secured notes 150,000 — 154,988 — 154,988 Fair Value Option |
Notional Amounts and Fair Values of Derivatives by Product | es of the Company's derivatives as of September 30, 2020 and December 31, 2019 by product were as follows: (Expressed in thousands) Fair Value of Derivative Instruments as of September 30, 2020 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 22,885 $ 275 $ 22,885 $ 275 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 3,630,000 $ 116 Other contracts TBAs 19,585 220 ARS purchase commitments 1,291 192 $ 3,650,876 $ 528 (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. (Expressed in thousands) Fair Value of Derivative Instruments as of December 31, 2019 Description Notional Fair Value Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 5,209,000 $ 267 Other contracts TBAs 13,245 124 ARS purchase commitments 7,128 1,023 $ 5,229,373 $ 1,414 (1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset. |
Fair Value Amounts of Derivative Instruments and their Effect on Statement of Operations | the location and fair value amounts of the Company's derivative instruments and their effect in the condensed consolidated income statements for the three and nine months ended September 30, 2020 and 2019: (Expressed in thousands) The Effect of Derivative Instruments in the Income Statement For the Three Months Ended September 30, 2020 Recognized in Income on Derivatives Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ (15) Other contracts Foreign exchange forward contracts Other revenue 67 TBAs Principal transactions revenue (17) ARS purchase commitments Principal transactions revenue 140 $ 175 (Expressed in thousands) The Effect of Derivative Instruments in the Income Statement For the Three Months Ended September 30, 2019 Recognized in Income on Derivatives Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ (443) Other contracts Foreign exchange forward contracts Other revenue 5 TBAs Principal transactions revenue (9) ARS purchase commitments Principal transactions revenue (242) $ (689) |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020: (Expressed in thousands) Overnight and Open Repurchase agreements: U.S. Government and Agency securities $ 444,290 Securities loaned: Equity securities 291,969 Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 736,259 |
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, 2020 and December 31, 2019: As of September 30, 2020 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 191,463 $ (191,463) $ — $ — $ — $ — Securities borrowed (1) 128,199 — 128,199 (126,755) — 1,444 Total $ 319,662 $ (191,463) $ 128,199 $ (126,755) $ — $ 1,444 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Repurchase agreements $ 444,290 $ (191,463) $ 252,827 $ (250,619) $ — $ 2,208 Securities loaned (2) 291,969 — 291,969 (284,998) — 6,971 Total $ 736,259 $ (191,463) $ 544,796 $ (535,617) $ — $ 9,179 (2) Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. As of December 31, 2019 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 55,927 $ (55,927) $ — $ — $ — $ — Securities borrowed (1) 99,635 — 99,635 (97,702) — 1,933 Total $ 155,562 $ (55,927) $ 99,635 $ (97,702) $ — $ 1,933 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Repurchase agreements $ 343,192 $ (55,927) $ 287,265 $ (285,264) $ — $ 2,001 Securities loaned (2) 234,343 — 234,343 (228,548) — 5,795 Total $ 577,535 $ (55,927) $ 521,608 $ (513,812) $ — $ 7,796 (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, 2020 | |
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, 2020 and December 31, 2019: (Expressed in thousands) As of September 30, 2020 Total VIE Assets (1) Carrying Value of the Capital Maximum Assets Liabilities Hedge funds $ 560,823 $ — $ — $ — $ — (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (Expressed in thousands) As of December 31, 2019 Total (1) Carrying Value of the Capital Maximum Assets (2) Liabilities Hedge funds $ 390,063 $ 259 $ — $ — $ 259 (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (2) Represents the Company's interest 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, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | (Expressed in thousands) Issued Maturity Date September 30, 2020 December 31, 2019 5.50% Senior Secured Notes 10/1/2025 $ 125,000 $ — 6.75% Senior Secured Notes 7/1/2022 — 150,000 Unamortized Debt Issuance Costs (1,136) (485) $ 123,864 $ 149,515 |
Share Capital (Tables)
Share Capital (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 For the Nine Months Ended 2020 2019 2020 2019 Class A Stock outstanding, beginning of period 12,445,479 12,756,308 12,698,703 12,941,809 Issued pursuant to share-based compensation plans 43,238 19,052 390,562 80,143 Repurchased and canceled pursuant to the stock buy-back (84,290) (76,657) (684,838) (323,249) Class A Stock outstanding, end of period 12,404,427 12,698,703 12,404,427 12,698,703 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Reported Revenue and Profit Before Income Taxes | The table below presents information about the reported revenue and pre-tax income (loss) of the Company for the three and nine months ended September 30, 2020 and 2019. 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 For the Nine Months Ended 2020 2019 2020 2019 Revenue Private client (1) $ 141,097 $ 152,054 $ 424,340 $ 477,509 Asset management (1) 20,632 18,368 57,423 53,576 Capital markets 114,289 64,068 295,101 206,848 Corporate/Other 241 303 (1,105) (435) Total $ 276,259 $ 234,793 $ 775,759 $ 737,498 Pre-Tax Income (Loss) Private client (1) $ 25,764 $ 35,251 $ 83,482 $ 121,501 Asset management (1) 6,426 4,932 14,714 12,492 Capital markets 19,369 (6,385) 41,548 (10,833) Corporate/Other (29,841) (27,302) (84,539) (83,221) Total $ 21,718 $ 6,496 $ 55,205 $ 39,939 (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, 2020 and 2019 was: (Expressed in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 265,606 $ 227,001 $ 735,504 $ 712,864 Europe/Middle East 9,152 7,257 35,276 22,592 Asia 1,501 535 4,979 2,042 Total $ 276,259 $ 234,793 $ 775,759 $ 737,498 |
Supplemental Guarantor Consol_2
Supplemental Guarantor Consolidated Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Income Statement | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING INCOME STATEMENT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 92,241 $ — $ 92,241 Advisory fees — — 88,963 (368) 88,595 Investment banking — — 68,120 (1,875) 66,245 Bank deposit sweep income — — 4,619 — 4,619 Interest — 2,058 7,594 (2,112) 7,540 Principal transactions, net — 8 7,695 — 7,703 Other — — 9,315 1 9,316 Total revenue — 2,066 278,547 (4,354) 276,259 EXPENSES Compensation and related expenses 259 — 189,395 — 189,654 Communications and technology 61 — 19,413 — 19,474 Occupancy and equipment costs — — 15,199 — 15,199 Clearing and exchange fees — — 6,211 — 6,211 Interest 2,596 — 2,977 (2,112) 3,461 Other 4,906 3 17,875 (2,242) 20,542 Total expenses 7,822 3 251,070 (4,354) 254,541 Pre-tax income (loss) (7,822) 2,063 27,477 — 21,718 Income taxes (2,010) 528 7,561 — 6,079 Net income (loss) (5,812) 1,535 19,916 — 15,639 Equity in earnings of subsidiaries 21,451 19,916 — (41,367) — Net income 15,639 21,451 19,916 (41,367) 15,639 Other comprehensive income — — 244 — 244 Total comprehensive income $ 15,639 $ 21,451 $ 20,160 $ (41,367) $ 15,883 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING INCOME STATEMENT FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2019 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 78,627 $ — $ 78,627 Advisory fees — — 81,229 (342) 80,887 Investment banking — — 21,798 — 21,798 Bank deposit sweep income — — 28,894 — 28,894 Interest 59 2,059 12,299 (2,073) 12,344 Principal transactions, net — (34) 7,586 54 7,606 Other 3 — 4,635 (1) 4,637 Total revenue 62 2,025 235,068 (2,362) 234,793 EXPENSES Compensation and related expenses 273 — 151,012 (1) 151,284 Communications and technology 39 — 20,833 — 20,872 Occupancy and equipment costs — — 16,010 — 16,010 Clearing and exchange fees — (54) 5,469 54 5,469 Interest 3,038 — 10,566 (2,073) 11,531 Other 2,087 4 21,382 (342) 23,131 Total expenses 5,437 (50) 225,272 (2,362) 228,297 Pre-tax income (loss) (5,375) 2,075 9,796 — 6,496 Income taxes (1,364) 558 3,353 — 2,547 Net income (loss) (4,011) 1,517 6,443 — 3,949 Equity in earnings of subsidiaries 7,960 6,443 — (14,403) — Net income 3,949 7,960 6,443 (14,403) 3,949 Other comprehensive income — — 533 — 533 Total comprehensive income $ 3,949 $ 7,960 $ 6,976 $ (14,403) $ 4,482 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING INCOME STATEMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 297,126 $ — $ 297,126 Advisory fees — — 251,811 (1,071) 250,740 Investment banking — — 140,034 (1,875) 138,159 Bank deposit sweep income — — 30,567 — 30,567 Interest 2 6,174 24,732 (6,258) 24,650 Principal transactions, net — 57 18,842 — 18,899 Other 95 — 15,526 (3) 15,618 Total revenue 97 6,231 778,638 (9,207) 775,759 EXPENSES Compensation and related expenses 879 — 526,045 — 526,924 Communications and technology 144 — 60,545 — 60,689 Occupancy and equipment costs — — 46,611 — 46,611 Clearing and exchange fees — — 18,061 — 18,061 Interest 7,632 — 11,527 (6,258) 12,901 Other 5,358 8 52,951 (2,949) 55,368 Total expenses 14,013 8 715,740 (9,207) 720,554 Pre-tax income (loss) (13,916) 6,223 62,898 — 55,205 Income taxes (3,576) 1,623 16,052 — 14,099 Net income (loss) (10,340) 4,600 46,846 — 41,106 Equity in earnings of subsidiaries 51,446 46,846 — (98,292) — Net income 41,106 51,446 46,846 (98,292) 41,106 Other comprehensive income — — 187 — 187 Total comprehensive income $ 41,106 $ 51,446 $ 47,033 $ (98,292) $ 41,293 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING INCOME STATEMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 238,932 $ — $ 238,932 Advisory fees — — 236,278 (1,037) 235,241 Investment banking — — 81,847 — 81,847 Bank deposit sweep income — — 94,692 — 94,692 Interest 234 6,181 38,426 (6,220) 38,621 Principal transactions, net — 121 21,980 (12) 22,089 Other 3 2 26,070 1 26,076 Total revenue 237 6,304 738,225 (7,268) 737,498 EXPENSES Compensation and related expenses 1,098 — 466,330 (6) 467,422 Communications and technology 130 — 61,327 — 61,457 Occupancy and equipment costs — (1) 46,855 2 46,856 Clearing and exchange fees — — 16,479 — 16,479 Interest 9,788 — 34,141 (6,220) 37,709 Other 2,637 248 65,795 (1,044) 67,636 Total expenses 13,653 247 690,927 (7,268) 697,559 Pre-tax income (loss) (13,416) 6,057 47,298 — 39,939 Income taxes (3,702) 1,994 14,129 — 12,421 Net income (loss) (9,714) 4,063 33,169 — 27,518 Equity in earnings of subsidiaries 37,232 33,169 — (70,401) — Net income 27,518 37,232 33,169 (70,401) 27,518 Other comprehensive income — — 1,457 — 1,457 Total comprehensive income $ 27,518 $ 37,232 $ 34,626 $ (70,401) $ 28,975 |
Condensed Consolidating Balance Sheet | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF SEPTEMBER 30, 2020 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated ASSETS Cash and cash equivalents $ 3,864 $ 188 $ 28,028 $ — $ 32,080 Deposits with clearing organizations — — 77,202 — 77,202 Receivable from brokers, dealers and clearing organizations — — 207,256 — 207,256 Receivable from customers, net of allowance for credit losses of $418 — — 1,095,035 — 1,095,035 Income tax receivable 46,136 14,923 (702) (57,365) 2,992 Securities owned, including amounts pledged of $486,165 at fair value — 1,438 645,241 1 646,680 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $37,224 and $4,190, respectively — — 44,723 — 44,723 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $100,968 — 20,989 7,927 — 28,916 Right-of-use lease assets, net of accumulated amortization of $43,933 — 150,115 4,551 — 154,666 Subordinated loan receivable 209 112,558 — (112,767) — Intangible assets — 400 31,700 — 32,100 Goodwill — — 137,889 — 137,889 Other assets (786) 1,367 148,501 (3) 149,079 Deferred tax assets — (28) (2,668) 2,696 — Investment in subsidiaries 779,573 593,310 (1) (1,372,882) — Intercompany receivables (87,257) 121,365 (7,777) (26,331) — Total assets $ 741,739 $ 1,016,625 $ 2,416,905 $ (1,566,651) $ 2,608,618 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 18,251 $ — $ 18,251 Bank call loans — — 156,900 — 156,900 Payable to brokers, dealers and clearing organizations — — 366,949 — 366,949 Payable to customers — — 380,746 — 380,746 Securities sold under agreements to repurchase — — 252,827 — 252,827 Securities sold but not yet purchased, at fair value — — 222,449 — 222,449 Accrued compensation — — 201,616 — 201,616 Income tax payable 2,440 22,189 34,769 (59,398) — Accounts payable and other liabilities 219 (10,320) 53,553 21 43,473 Lease liabilities — 190,603 4,745 — 195,348 Senior secured notes, net of debt issuance cost of $1,136 123,864 — — — 123,864 Subordinated indebtedness — — 112,558 (112,558) — Deferred tax liabilities — (7,298) 33,546 4,731 30,979 Intercompany payables — 26,335 — (26,335) — Total liabilities 126,523 221,509 1,838,909 (193,539) 1,993,402 Stockholders' equity Total stockholders' equity 615,216 795,116 577,996 (1,373,112) 615,216 Total liabilities and stockholders' equity $ 741,739 $ 1,016,625 $ 2,416,905 $ (1,566,651) $ 2,608,618 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2019 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated ASSETS Cash and cash equivalents $ 4,811 $ 2,179 $ 72,560 $ — $ 79,550 Deposits with clearing organizations — — 48,415 — 48,415 Receivable from brokers, dealers and clearing organizations — — 158,231 5,062 163,293 Receivable from customers, net of allowance for credit losses of $451 — — 796,934 — 796,934 Income tax receivable 42,556 16,469 — (53,855) 5,170 Securities owned, including amounts pledged of $357,120 at fair value — 1,352 798,367 — 799,719 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $38,355 and $3,673, respectively — — 43,670 — 43,670 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $94,773 — 22,537 8,840 — 31,377 Subordinated loan receivable 209 112,558 — (112,767) — Right-of-use lease assets, net of accumulated amortization of $25,186 — 153,780 6,517 — 160,297 Intangible assets — 400 31,700 — 32,100 Goodwill — — 137,889 — 137,889 Other assets 154 11,798 164,821 (10,432) 166,341 Deferred tax assets 4 7,048 2,449 (9,501) — Investment in subsidiaries 697,093 763,990 24,656 (1,485,739) — Intercompany receivables 2,875 67,923 — (70,798) — Total assets $ 747,702 $ 1,160,034 $ 2,295,049 $ (1,738,030) $ 2,464,755 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Payable to brokers, dealers and clearing organizations $ — $ — $ 520,975 $ — $ 520,975 Payable to customers — — 334,735 — 334,735 Securities sold under agreements to repurchase — — 287,265 — 287,265 Securities sold but not yet purchased, at fair value — — 100,571 — 100,571 Accrued compensation — — 207,358 — 207,358 Accounts payable and other liabilities 5,166 75 50,049 (10,565) 44,725 Lease liabilities — 196,234 6,906 — 203,140 Income tax payable — 40 703 (743) — Senior secured notes, net of debt issuance cost of $485 149,515 — — — 149,515 Subordinated indebtedness — — 112,558 (112,558) — Deferred tax liabilities — — 33,546 (9,797) 23,749 Intercompany payables 299 — — (299) — Total liabilities 154,980 196,349 1,654,666 (133,962) 1,872,033 Stockholders' equity Total stockholders' equity 592,722 963,685 640,383 (1,604,068) 592,722 Total liabilities and stockholders' equity $ 747,702 $ 1,160,034 $ 2,295,049 $ (1,738,030) $ 2,464,755 |
Condensed Consolidating Statement of Cash Flows | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated Cash flows from operating activities: Cash provided by/(used in) operating activities $ 51,332 $ (1,991) $ (197,724) $ — $ (148,383) Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (3,708) — (3,708) Cash used in investing activities — — (3,708) — (3,708) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (4,597) — — — (4,597) Issuance of Class A non-voting common stock 34 — — — 34 Repurchase of Class A non-voting common stock for cancellation (14,228) — — — (14,228) Payments for employee taxes withheld related to vested share-based awards (5,771) — — — (5,771) Issuance of senior secured notes 125,000 — — — 125,000 Redemption of senior secured notes (148,574) — — — (148,574) Repurchase of senior secured notes (1,426) — — — (1,426) Debt issuance costs (210) — — — (210) Debt redemption costs (2,507) — — — (2,507) Increase in bank call loans, net — — 156,900 — 156,900 Cash provided by (used in) financing activities (52,279) — 156,900 — 104,621 Net decrease in cash and cash equivalents (947) (1,991) (44,532) — (47,470) Cash and cash equivalents, beginning of the period 4,811 2,179 72,560 — 79,550 Cash and cash equivalents, end of the period $ 3,864 $ 188 $ 28,028 $ — $ 32,080 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated Cash flows from operating activities: Cash provided by/(used in) operating activities $ 16,687 $ (3,292) $ 9,502 $ — $ 22,897 Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (8,672) — (8,672) Cash used in investing activities — — (6,952) — (6,952) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (4,408) — — — (4,408) Issuance of Class A non-voting common stock 83 — — — 83 Repurchase of Class A non-voting common stock for cancellation (8,400) — — — (8,400) Payments for employee taxes withheld related to vested share-based awards (1,014) — — — (1,014) Redemption of senior secured notes (50,000) — — — (50,000) Debt redemption costs (1,688) — — — (1,688) Decrease in bank call loans, net — — (15,000) — (15,000) Cash used in financing activities (65,427) — (15,000) — (80,427) Net decrease in cash and cash equivalents (48,740) (3,292) (12,450) — (64,482) Cash and cash equivalents, beginning of the period 53,525 3,826 33,324 — 90,675 Cash and cash equivalents, end of the period $ 4,785 $ 534 $ 20,874 $ — $ 26,193 |
Organization - Additional Infor
Organization - Additional Information (Narrative) (Details) | Sep. 30, 2020office |
UNITED STATES | |
Organization And Basis Of Presentation [Line Items] | |
Number of offices providing services | 93 |
Financial Instruments - Credi_3
Financial Instruments - Credit Losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Expected loss rate | 42.00% | ||
Due from Employees | $ 44,723,000 | $ 44,723,000 | $ 43,670,000 |
2020 | 404,000 | 404,000 | |
2019 | 476,000 | 476,000 | |
2018 | 181,000 | 181,000 | |
2017 | 748,000 | 748,000 | |
2016 | 651,000 | 651,000 | |
2015 and prior | 3,157,000 | 3,157,000 | |
Total | 5,617,000 | 5,617,000 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,903,000 | 3,673,000 | |
Additions and other adjustments | 287,000 | 517,000 | |
Ending balance | 4,190,000 | $ 4,190,000 | |
Minimum [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Service Period | 3 years | ||
Maximum [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Service Period | 10 years | ||
Notes Receivable, Five Years and Older [Member] | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Ending balance | 3,200,000 | $ 3,200,000 | |
Notes Receivable, Under Five Years [Member] | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Ending balance | $ 1,000,000 | $ 1,000,000 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | Sep. 30, 2020USD ($)office | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 154,666 | $ 160,297 |
Operating Lease Right-of-use Asset Accumulated Amortization | 43,933 | 25,186 |
Present value of lease liabilities | $ 195,348 | $ 203,140 |
Weighted average remaining lease term (in years) | 8 years 3 days | 8 years 3 months 21 days |
Weighted average discount rate | 7.46% | 7.89% |
Lease not yet commenced | $ 6,500 | $ 11,100 |
Real Estate Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Present value of lease liabilities | 192,600 | |
Equipment Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Present value of lease liabilities | 2,700 | |
Real Estate Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | 152,000 | |
Operating Lease Right-of-use Asset Accumulated Amortization | 40,600 | |
Equipment Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | 2,700 | |
Operating Lease Right-of-use Asset Accumulated Amortization | $ 3,300 | |
UNITED STATES | ||
Lessee, Lease, Description [Line Items] | ||
Number of Stores | office | 93 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Amortization of right-of-use lease assets | $ 18,747 | $ 19,141 | ||
Real Estate [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Amortization of right-of-use lease assets | $ 5,862 | $ 5,696 | 17,326 | 17,740 |
Operating Lease, Interest Expense | 3,720 | 4,145 | 11,475 | 11,792 |
Equipment [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Amortization of right-of-use lease assets | 473 | 462 | 1,421 | 1,401 |
Operating Lease, Interest Expense | $ 48 | $ 57 | $ 153 | $ 171 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 10,171 | $ 42,585 |
2021 | 39,729 | 37,531 |
2022 | 35,707 | 33,416 |
2023 | 32,819 | 31,187 |
2024 | 28,604 | 27,234 |
After 2025 | 115,290 | 108,098 |
Total lease payments | 262,320 | 280,051 |
Less interest | (66,972) | (76,911) |
Present value of lease liabilities | $ 195,348 | $ 203,140 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 257,461 | $ 214,528 | $ 730,008 | $ 664,473 |
Interest | (7,540) | (12,344) | (24,650) | (38,621) |
Principal transactions, net | 7,703 | 7,606 | 18,899 | 22,089 |
Other | 3,555 | 315 | 2,202 | 12,315 |
Total other sources of revenue | 18,798 | 20,265 | 45,751 | 73,025 |
Total revenue | (276,259) | (234,793) | (775,759) | (737,498) |
Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 84,134 | 68,572 | 270,687 | 209,133 |
Mutual Fund Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,107 | 10,055 | 26,439 | 29,799 |
Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 88,595 | 80,887 | 250,740 | 235,241 |
Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 35,539 | 11,330 | 90,373 | 41,633 |
Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 30,706 | 10,468 | 47,786 | 40,214 |
Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,619 | 28,894 | 30,567 | 94,692 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,761 | 4,322 | 13,416 | 13,761 |
Private Client | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 131,089 | 143,301 | 403,295 | 436,279 |
Interest | (5,939) | (8,652) | (18,753) | (27,699) |
Principal transactions, net | 1,223 | 70 | 1,164 | 2,292 |
Other | 2,846 | 31 | 1,128 | 11,239 |
Total other sources of revenue | 10,008 | 8,753 | 21,045 | 41,230 |
Total revenue | (141,097) | (152,054) | (424,340) | (477,509) |
Private Client | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 40,742 | 35,994 | 129,652 | 110,496 |
Private Client | Mutual Fund Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,097 | 10,050 | 26,414 | 29,788 |
Private Client | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 67,949 | 62,510 | 193,297 | 181,634 |
Private Client | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,962 | 2,557 | 11,382 | 9,568 |
Private Client | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Private Client | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4,619 | 28,894 | 30,567 | 94,692 |
Private Client | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5,720 | 3,296 | 11,983 | 10,101 |
Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 20,634 | 18,368 | 57,414 | 53,569 |
Interest | (5) | 0 | 0 | 0 |
Principal transactions, net | 0 | 0 | 0 | 0 |
Other | 3 | 0 | 9 | 7 |
Total other sources of revenue | (2) | 0 | 9 | 7 |
Total revenue | (20,632) | (18,368) | (57,423) | (53,576) |
Asset Management | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Asset Management | Mutual Fund Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 3 | (5) |
Asset Management | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 20,634 | 18,366 | 57,411 | 53,572 |
Asset Management | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Asset Management | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Asset Management | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Asset Management | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 2 | 0 | 2 |
Capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 105,706 | 52,261 | 269,117 | 172,201 |
Interest | (1,539) | (3,272) | (5,390) | (9,566) |
Principal transactions, net | 6,357 | 8,515 | 19,853 | 24,984 |
Other | 687 | 20 | 741 | 97 |
Total other sources of revenue | 8,583 | 11,807 | 25,984 | 34,647 |
Total revenue | (114,289) | (64,068) | (295,101) | (206,848) |
Capital markets | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 43,389 | 32,569 | 141,013 | 98,621 |
Capital markets | Mutual Fund Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2 | 1 | 7 | 3 |
Capital markets | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 2 | 2 | 9 |
Capital markets | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 31,577 | 8,773 | 78,991 | 32,065 |
Capital markets | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 30,706 | 10,468 | 47,786 | 40,214 |
Capital markets | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Capital markets | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 32 | 448 | 1,318 | 1,289 |
Corporate/Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 32 | 598 | 182 | 2,424 |
Interest | (67) | (420) | (507) | (1,356) |
Principal transactions, net | 123 | (979) | (2,118) | (5,187) |
Other | 19 | 264 | 324 | 972 |
Total other sources of revenue | 209 | (295) | (1,287) | (2,859) |
Total revenue | (241) | (303) | (1,105) | 435 |
Corporate/Other | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3 | 9 | 22 | 16 |
Corporate/Other | Mutual Fund Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8 | 4 | 15 | 13 |
Corporate/Other | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 12 | 9 | 30 | 26 |
Corporate/Other | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate/Other | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate/Other | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
Corporate/Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 9 | $ 576 | $ 115 | $ 2,369 |
Revenues from contracts with _4
Revenues from contracts with customers (Contract Assets and Liabilities) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 30,857,000 | $ 28,888,000 |
Deferred income, IRA fees | 1,295,000 | 408,000 |
Commission | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 780,000 | 2,824,000 |
Mutual Fund Income | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 5,866,000 | 6,746,000 |
Advisory fees | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 1,431,000 | 1,594,000 |
Bank Deposit Sweep Income | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 697,000 | 3,454,000 |
Investment Banking Fees | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 15,983,000 | 9,284,000 |
Other Income [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 6,100,000 | 4,986,000 |
Investment Banking Fees | ||
Capitalized Contract Cost [Line Items] | ||
Deferred income, IRA fees | 659,000 | 408,000 |
IRA fees (7) | ||
Capitalized Contract Cost [Line Items] | ||
Deferred income, IRA fees | $ 636,000 | $ 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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Earnings Per Share [Abstract] | |||||
Basic weighted average number of shares outstanding | 12,553,802 | 12,825,944 | 12,696,143 | 12,940,129 | |
Net dilutive effect of share-based awards, treasury method | [1] | 592,784 | 1,007,050 | 498,291 | 906,010 |
Diluted weighted average number of shares outstanding | 13,146,586 | 13,832,994 | 13,194,434 | 13,846,139 | |
Net Income (Loss) Attributable to Parent | $ 15,639 | $ 3,949 | $ 41,106 | $ 27,518 | |
Diluted | $ 1.25 | $ 0.31 | $ 3.24 | $ 2.13 | |
Net loss per share (in dollars per share) | $ 1.19 | $ 0.29 | $ 3.12 | $ 1.99 | |
[1] | For both the three and nine months ended September 30, 2020, the diluted earnings per share computation does not include the anti-dilutive effect of 10,770 shares of Class A Stock granted under share-based compensation arrangements (7,628 shares for both the three and nine months ended September 30, 2019). |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
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 | 10,770 | 7,628 | 10,770 | 7,628 |
Receivable from and Payable t_3
Receivable from and Payable to Brokers, Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Receivable from brokers, dealers and clearing organizations consists of: | ||
Securities borrowed | $ 128,199 | $ 99,635 |
Receivable from brokers | 29,088 | 19,024 |
Securities failed to deliver | 14,565 | 7,173 |
Clearing organizations | 34,165 | 36,269 |
Other | 1,239 | 1,192 |
Receivables from broker, dealers and clearing organizations | 207,256 | 163,293 |
Payable to brokers, dealers and clearing organizations consists of: | ||
Securities loaned | 291,969 | 234,343 |
Due to Correspondent Brokers | 2,280 | 4,548 |
Securities failed to receive | 19,421 | 14,603 |
Other | 53,279 | 267,481 |
Payable to brokers, dealers and clearing organizations | $ 366,949 | $ 520,975 |
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, 2020 | Dec. 31, 2019 |
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 | $ 646,680 | $ 799,719 |
Securities Sold | 222,449 | 100,571 |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 646,680 | 799,719 |
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 | 27,111 | 8,310 |
Securities Sold | 6,049 | 664 |
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 | 46,645 | 40,260 |
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 | 19,992 | $ 29,816 |
Securities Sold | $ 6,434 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Details) | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Valuation Adjustment For Level Three Asset and Liability | $ 5,200,000 |
Assets and Liabilities Measured at Fair Value, Level 3 Assets Net Additions | 1,100,000 |
Auction rate securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Valuation Adjustment For Level Three Asset and Liability | 5,000,000 |
Auction Rate Securities Purchase Commitment | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Valuation Adjustment For Level Three Asset and Liability | $ 191,510 |
Fair Value Measurements - Inves
Fair Value Measurements - Investments in Company-Sponsored Funds (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Investment Holdings [Line Items] | ||
Fair Value | $ 5,489 | $ 5,816 |
Unfunded Commitments | $ 1,238 | 1,339 |
Hedge Funds [Member] | ||
Investment Holdings [Line Items] | ||
Investment Redemption Notice Period Minimum | 30 days | |
Investment Redemption Notice Period Maximum | 120 days | |
Fair Value | $ 1,138 | 1,589 |
Unfunded Commitments | $ 0 | $ 0 |
Redemption Frequency | Quarterly - Annually | Quarterly - Annually |
Private Equity Funds | ||
Investment Holdings [Line Items] | ||
Fair Value | $ 4,351 | $ 4,227 |
Unfunded Commitments | $ 1,238 | $ 1,339 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Deposits with clearing organizations | $ 35,344 | $ 25,118 |
Securities owned | ||
Securities owned, at fair value | 646,680 | 799,719 |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 646,680 | 799,719 |
Investments | 3,961 | |
Investments | 5,489 | 5,816 |
Derivative contracts | ||
Total | 686,260 | 824,837 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 222,449 | 100,571 |
Derivative contracts: | ||
Derivative contracts | 528 | 1,414 |
Total | 222,977 | 101,985 |
Auction Rate Securities Purchase Commitment | ||
Derivative contracts: | ||
Derivative contracts | 192 | 1,023 |
Equity Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 32,121 | 32,215 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 22,639 | 21,978 |
Money Market Funds [Member] | ||
Securities owned | ||
Securities owned, at fair value | 1,470 | 781 |
Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 30,701 | 25,314 |
U.S. Treasury securities | ||
Securities owned | ||
Securities owned, at fair value | 470,683 | 613,030 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 181,419 | 52,882 |
US Government Agencies Debt Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 14,787 | 35,891 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 4,972 | 18 |
Sovereign obligations | ||
Securities owned | ||
Securities owned, at fair value | 207 | 11,405 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 936 | 6,405 |
Corporate debt and other obligations | ||
Securities owned | ||
Securities owned, at fair value | 27,111 | 8,310 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 6,049 | 664 |
Mortgage and other asset-backed securities | ||
Securities owned | ||
Securities owned, at fair value | 2,963 | 2,697 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 18,624 | |
Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 46,645 | 40,260 |
Convertible bonds | ||
Securities owned | ||
Securities owned, at fair value | 19,992 | 29,816 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 6,434 | |
Level 1 | ||
ASSETS | ||
Deposits with clearing organizations | 35,344 | 25,118 |
Securities owned | ||
Securities owned, at fair value | 504,274 | 665,943 |
Derivative contracts | ||
Total | 539,618 | 691,061 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 204,058 | 74,860 |
Derivative contracts: | ||
Derivative contracts | 116 | 267 |
Total | 204,174 | 75,127 |
Level 1 | Corporate equities | ||
Securities owned | ||
Securities owned, at fair value | 32,121 | 32,215 |
Level 1 | Equity Securities [Member] | ||
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 22,639 | 21,978 |
Level 1 | Money markets | ||
Securities owned | ||
Securities owned, at fair value | 1,470 | 781 |
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 | 470,683 | 613,030 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 181,419 | 52,882 |
Level 1 | US Government Agencies Debt Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 0 | 19,917 |
Level 1 | Corporate debt and other obligations | ||
Securities owned | ||
Securities owned, at fair value | 0 | |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | |
Level 2 | ||
Securities owned | ||
Securities owned, at fair value | 111,705 | 133,776 |
Derivative contracts | ||
Total | 115,941 | 133,776 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 18,391 | 25,711 |
Derivative contracts: | ||
Derivative contracts | 220 | 1,147 |
Total | 18,611 | 26,858 |
Level 2 | Auction Rate Securities Purchase Commitment | ||
Derivative contracts: | ||
Derivative contracts | 0 | 1,023 |
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 | 0 | 25,314 |
Level 2 | US Government Agencies Debt Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 14,787 | 15,974 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 4,972 | 18 |
Level 2 | Sovereign obligations | ||
Securities owned | ||
Securities owned, at fair value | 207 | 11,405 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 936 | 6,405 |
Level 2 | Corporate debt and other obligations | ||
Securities owned | ||
Securities owned, at fair value | 27,111 | 8,310 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 6,049 | 664 |
Level 2 | Mortgage and other asset-backed securities | ||
Securities owned | ||
Securities owned, at fair value | 2,963 | 2,697 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 18,624 | |
Level 2 | Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 46,645 | 40,260 |
Level 2 | Convertible bonds | ||
Securities owned | ||
Securities owned, at fair value | 19,992 | 29,816 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 6,434 | |
Level 3 | ||
Securities owned | ||
Securities owned, at fair value | 30,701 | 0 |
Investments | 0 | |
Derivative contracts | ||
Total | 30,701 | 0 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 0 | |
Derivative contracts: | ||
Derivative contracts | 192 | 0 |
Total | 192 | 0 |
Level 3 | Auction Rate Securities Purchase Commitment | ||
Derivative contracts: | ||
Derivative contracts | 192 | 0 |
Level 3 | Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 30,701 | 0 |
Level 3 | Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 0 | |
TBAs | ||
Derivative contracts | ||
Derivative contracts, total | 275 | |
Derivative contracts: | ||
Derivative contracts | 220 | 124 |
TBAs | Level 2 | ||
Derivative contracts | ||
Derivative contracts, total | 275 | |
Derivative contracts: | ||
Derivative contracts | 220 | 124 |
Future [Member] | ||
Derivative contracts: | ||
Derivative contracts | 116 | 267 |
Future [Member] | Level 1 | ||
Derivative contracts: | ||
Derivative contracts | $ 116 | $ 267 |
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, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Auction Rate Securities Purchase Commitment | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | $ 140 | $ 140 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Liabilities Beginning Balance | 332 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 0 | 332 | |
Liabilities Ending Balance | 192 | 192 | |
Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets Beginning Balance | $ 101 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 5 | ||
Transfers In (Out) | 106 | ||
Assets Ending Balance | 0 | ||
Auction rate securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Assets Beginning Balance | 29,566 | 0 | 21,699 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (165) | (165) | 1 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (350) | ||
Transfers In (Out) | 0 | (29,566) | 21,350 |
Assets Ending Balance | 30,701 | 30,701 | $ 0 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | $ 1,300 | $ 1,300 |
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, 2020 | Dec. 31, 2019 |
Financial Instruments, Estimate Not Practicable, Fair Value [Line Items] | ||
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | $ 646,680 | $ 799,719 |
Fair Value, Nonrecurring [Member] | ||
Financial Instruments, Estimate Not Practicable, Fair Value [Line Items] | ||
Other | 1,184 | 1,316 |
Receivable from customers | 1,095,035 | 796,934 |
Fair Value, Estimate Not Practicable, Investment | 75,785 | 73,971 |
Drafts payable | 18,251 | |
Clearing organizations | 34,165 | 36,269 |
Securities loaned | 291,969 | 234,343 |
Fair Value, Estimate not Practicable, Due from Employees | 44,723 | 43,670 |
Total Receivable from brokers, dealers and clearing organizations | 207,201 | 163,417 |
Securities failed to receive | 19,421 | 14,603 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 2,280 | 4,548 |
Bank call loans | 156,900 | |
Receivables from brokers | 29,088 | 19,024 |
Securities failed to deliver | 14,565 | 7,173 |
Securities borrowed | 128,199 | 99,635 |
Deposits with clearing organization | 41,858 | 23,297 |
Other | 53,163 | 267,214 |
Total payables to brokers, dealers and clearing organizations | 366,833 | 520,708 |
Payables to customers | 380,746 | 334,735 |
Fair Value,Estimate not Practicable, Securities sold under Agreements to Repurchase | 252,827 | 287,265 |
Fair Value, Estimate not Practicable, Senior Secured Notes | 126,111 | 154,988 |
Fair Value, Estimate Not Practicable, Cash | 32,080 | 79,550 |
Fair Value, Nonrecurring [Member] | Carrying Value [Member] | ||
Financial Instruments, Estimate Not Practicable, Fair Value [Line Items] | ||
Other | 1,184 | 1,316 |
Receivable from customers | 1,095,035 | 796,934 |
Fair Value, Estimate Not Practicable, Investment | 75,785 | 73,971 |
Drafts payable | 18,251 | |
Clearing organizations | 34,165 | 36,269 |
Securities loaned | 291,969 | 234,343 |
Fair Value, Estimate not Practicable, Due from Employees | 44,723 | 43,670 |
Total Receivable from brokers, dealers and clearing organizations | 207,201 | 163,417 |
Securities failed to receive | 19,421 | 14,603 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 2,280 | 4,548 |
Bank call loans | 156,900 | |
Receivables from brokers | 29,088 | 19,024 |
Securities failed to deliver | 14,565 | 7,173 |
Securities borrowed | 128,199 | 99,635 |
Deposits with clearing organization | 41,858 | 23,297 |
Other | 53,163 | 267,214 |
Total payables to brokers, dealers and clearing organizations | 366,833 | 520,708 |
Payables to customers | 380,746 | 334,735 |
Fair Value,Estimate not Practicable, Securities sold under Agreements to Repurchase | 252,827 | 287,265 |
Fair Value, Estimate not Practicable, Senior Secured Notes | 125,000 | 150,000 |
Fair Value, Estimate Not Practicable, Cash | 32,080 | 79,550 |
Fair Value, Nonrecurring [Member] | Level 1 | ||
Financial Instruments, Estimate Not Practicable, Fair Value [Line Items] | ||
Drafts payable | 18,251 | |
Deposits with clearing organization | 41,858 | 23,297 |
Fair Value, Estimate Not Practicable, Cash | 32,080 | 79,550 |
Fair Value, Nonrecurring [Member] | Level 2 | ||
Financial Instruments, Estimate Not Practicable, Fair Value [Line Items] | ||
Other | 1,184 | 1,316 |
Receivable from customers | 1,095,035 | 796,934 |
Fair Value, Estimate Not Practicable, Investment | 75,785 | 73,971 |
Clearing organizations | 34,165 | 36,269 |
Securities loaned | 291,969 | 234,343 |
Fair Value, Estimate not Practicable, Due from Employees | 44,723 | 43,670 |
Total Receivable from brokers, dealers and clearing organizations | 207,201 | 163,417 |
Securities failed to receive | 19,421 | 14,603 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 2,280 | 4,548 |
Bank call loans | 156,900 | |
Receivables from brokers | 29,088 | 19,024 |
Securities failed to deliver | 14,565 | 7,173 |
Securities borrowed | 128,199 | 99,635 |
Other | 53,163 | 267,214 |
Total payables to brokers, dealers and clearing organizations | 366,833 | 520,708 |
Payables to customers | 380,746 | 334,735 |
Fair Value,Estimate not Practicable, Securities sold under Agreements to Repurchase | 252,827 | 287,265 |
Fair Value, Estimate not Practicable, Senior Secured Notes | $ 126,111 | $ 154,988 |
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, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Derivatives asset, Notional | $ 22,885 | ||
Derivatives asset, Fair Value | 275 | ||
Derivative liability, notional | 3,650,876 | $ 5,229,373 | |
Derivative liability, Fair Value | 528 | 1,414 | |
To Be Announced Security [Member] | Other Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives asset, Notional | 22,885 | ||
Derivatives asset, Fair Value | 275 | ||
Derivative liability, notional | 19,585 | 13,245 | |
Derivative liability, Fair Value | 220 | 124 | |
Future [Member] | Commodity Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional | 3,630,000 | 5,209,000 | [1] |
Derivative liability, Fair Value | 116 | 267 | [1] |
Auction Rate Securities Purchase Commitment | Other Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional | 1,291 | 7,128 | |
Derivative liability, Fair Value | $ 192 | $ 1,023 | |
[1] | For both the three and nine months ended September 30, 2020, the diluted earnings per share computation does not include the anti-dilutive effect of 10,770 shares of Class A Stock granted under share-based compensation arrangements (7,628 shares for both the three and nine months ended September 30, 2019). |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | $ 175 | $ (689) | $ (7,473) | $ (3,089) |
Commodity Contracts | Principal Transaction Revenue | Future [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | (15) | (443) | (8,362) | (3,109) |
Other Contracts | Principal Transaction Revenue | TBAs | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | (17) | (9) | (31) | (85) |
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) | 140 | (242) | 831 | 90 |
Other Contracts | Other Income [Member] | Foreign exchange forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | $ 67 | $ 5 | $ 89 | $ 15 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Auction Rate Securities Purchased as a Result of Settlements with Regulators | $ 142,500 | |
Securities owned, at fair value | $ 646,680 | $ 799,719 |
Forward or delayed delivery of the underlying instrument with settlement | 180 days | |
Auction Rate Securities Purchased as a result of Legal Settlements and Awards | $ 106,100 | |
Auction Rate Securities remaining to purchase from Eligible Investors related to the settlements with the Regulators | 1,300 | |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 646,680 | 799,719 |
Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities owned, at fair value | 32,121 | 32,215 |
Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities owned, at fair value | $ 30,701 | $ 25,314 |
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 |
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, 2020 | Dec. 31, 2019 |
Reverse repurchase agreements | ||
Gross Amounts of Recognized Assets | $ 191,463 | $ 55,927 |
Gross Amounts Offset on the Balance Sheet | (191,463) | (55,927) |
Net Amounts of Assets Presented on the Balance Sheet | 0 | 0 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Securities borrowed | ||
Gross Amounts of Recognized Assets | 128,199 | 99,635 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented on the Balance Sheet | 128,199 | 99,635 |
Financial Instruments | (126,755) | (97,702) |
Cash Collateral Received | 0 | 0 |
Net Amount | 1,444 | 1,933 |
Total | ||
Gross Amounts of Recognized Assets | 319,662 | 155,562 |
Gross Amounts Offset on the Balance Sheet | (191,463) | (55,927) |
Net Amounts of Assets Presented on the Balance Sheet | 128,199 | 99,635 |
Financial Instruments | (126,755) | (97,702) |
Cash Collateral Received | 0 | 0 |
Net Amount | 1,444 | 1,933 |
Repurchase agreements | ||
Gross Amounts of Recognized Liabilities | 444,290 | 343,192 |
Gross Amounts Offset on the Balance Sheet | (191,463) | (55,927) |
Net Amounts of Liabilities Presented on the Balance Sheet | 252,827 | 287,265 |
Financial Instruments | (250,619) | (285,264) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 2,208 | 2,001 |
Securities loaned | ||
Gross Amounts of Recognized Liabilities | 291,969 | 234,343 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented on the Balance Sheet | 291,969 | 234,343 |
Financial Instruments | (284,998) | (228,548) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 6,971 | 5,795 |
Total | ||
Gross Amounts of Recognized Liabilities | 736,259 | 577,535 |
Gross Amounts Offset on the Balance Sheet | (191,463) | (55,927) |
Net Amounts of Liabilities Presented on the Balance Sheet | 544,796 | 521,608 |
Financial Instruments | (535,617) | (513,812) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | $ 9,179 | $ 7,796 |
Collateralized Transactions - A
Collateralized Transactions - Additional Information (Narrative) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($)dealer | Dec. 31, 2019USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 444,290 | $ 343,192 |
Gross Amounts of Recognized Liabilities | 291,969 | 234,343 |
Bank call loans | 156,900 | 0 |
Amounts pledged | $ 486,165 | 357,120 |
Number of broker-dealers | dealer | 3 | |
Receivable from brokers and clearing organizations | $ 75,600 | |
Securities Sold under Agreements to Repurchase, Asset | 191,463 | 55,927 |
Securities Sold under Agreements to Repurchase, Amount Not Offset Against Collateral | 252,827 | 287,265 |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Securities | 250,619 | 285,264 |
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 | 2,208 | 2,001 |
Securities Loaned, Asset | 0 | 0 |
Securities Loaned, Amount Not Offset Against Collateral | 291,969 | 234,343 |
Securities Loaned, Collateral, Right to Reclaim Securities | 284,998 | 228,548 |
Securities Loaned, Collateral, Right to Reclaim Cash | 0 | 0 |
Securities Loaned, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 6,971 | 5,795 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 736,259 | 577,535 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Asset | 191,463 | 55,927 |
Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned, Amount Not Offset Against Collateral | 544,796 | 521,608 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Securities | 535,617 | 513,812 |
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 | 9,179 | 7,796 |
Firm's Securities Fair Value, Collateral for Bank Loans | 44,900 | |
Customer securities directly with the Options Clearing Corporation to secure obligations and margin requirements under option contracts written by customers | 382,800 | |
Customer Securities under Customer Margin Loans that are Available to be Pledged, Re-pledged Amount | 247,300 | |
Fair Value of Securities Received as Collateral under Securities Borrowed Transactions | 125,800 | 96,300 |
Fair Value of Securities Received as Collateral under Reverse Repurchase agreements | 191,400 | 55,800 |
Fair value of Securities Received as Collateral, Sold and Re-Pledged under Securities Loaned | 36,700 | 19,300 |
Fair value of Securities Received as Collateral, Sold and Re-Pledged under Repurchase Agreements | 191,400 | $ 55,800 |
Customer Securities Fair Value, Collateral for Bank Loans | 140,600 | |
customer securities under customer margin loans that are available to be pledged | 1,500,000 | |
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 | $ 736,259 | |
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 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Hedge Funds [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Total VIE Assets | $ 560,823 | $ 390,063 |
Carrying Value of Variable Interest Assets | 0 | 259 |
Carrying Value of Variable Interest Liabilities | 0 | 0 |
Capital Commitments | 0 | 0 |
Maximum Exposure to Loss in Non- consolidated VIEs | $ 0 | $ 259 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 28, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Unamortized debt issuance expense | $ (1,136) | $ (485) | |
Long-term debt | 123,864 | 149,515 | |
5.50% Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 125,000 | 0 | |
6.75% Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 0 | $ 150,000 | $ 150,000 |
Senior Secured Notes | 5.50% Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Maturity Date | Oct. 1, 2025 | ||
Senior Secured Notes | 6.75% Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | Jul. 1, 2022 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Narrative) (Details) - USD ($) | Sep. 30, 2020 | Sep. 28, 2020 | Aug. 25, 2019 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 22, 2020 | Dec. 31, 2019 | Jun. 23, 2017 |
Debt Instrument [Line Items] | |||||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 2,500,000 | $ 1,700,000 | $ 2,507,000 | $ 1,688,000 | |||||||
Write-off of debt issuance costs | 337,000 | 200,000 | 341,000 | 184,000 | |||||||
Debt Instrument, Repurchase Amount | $ 1,400,000 | ||||||||||
Gain (Loss) on Repurchase of Debt Instrument | $ 85,560 | 86,000 | 0 | ||||||||
Debt Instrument, Increase, Accrued Interest | 1,900,000 | ||||||||||
Debt Issuance Costs, Gross | $ 3,000,000 | $ 3,000,000 | 3,000,000 | ||||||||
Long-term debt | 123,864,000 | 123,864,000 | 123,864,000 | $ 149,515,000 | |||||||
Repayments of Secured Debt | $ 50,000,000 | 148,574,000 | 50,000,000 | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 25.00% | ||||||||||
Debt Issuance Cost, Amount paid to Subsidiary | 1,900,000 | 1,900,000 | 1,900,000 | ||||||||
Debt Issuance Costs, Net | 1,100,000 | 1,100,000 | 1,100,000 | ||||||||
6.75% Senior Secured Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term Debt, Gross | 0 | 150,000,000 | 0 | 0 | 150,000,000 | ||||||
Long Term Debt, Amount held in Treasury | 1,400,000 | ||||||||||
Interest Expense, Debt | 2,400,000 | $ 3,000,000 | 7,400,000 | $ 9,800,000 | |||||||
Long Term Debt, Net Amount Outstanding | $ 148,600,000 | ||||||||||
6.75% Senior Secured Notes [Member] | Senior Secured Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 200,000,000 | ||||||||||
Interest rate | 6.75% | ||||||||||
Debt Instrument, Issue Price Percentage | 100.00% | ||||||||||
5.50% Senior Secured Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term Debt, Gross | 125,000,000 | $ 125,000,000 | $ 125,000,000 | $ 0 | |||||||
Interest Expense, Debt | $ 171,875 | ||||||||||
5.50% Senior Secured Notes | Senior Secured Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 125,000,000 | ||||||||||
Interest rate | 5.50% |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Class A Stock outstanding, beginning of period | 12,445,479 | 12,756,308 | 12,698,703 | 12,941,809 |
Issued pursuant to shared-based compensation plans | 43,238 | 19,052 | 390,562 | 80,143 |
Repurchased and canceled pursuant to the stock buy-back | 84,290 | 76,657 | 684,838 | 323,249 |
Class A Stock outstanding, end of period | 12,404,427 | 12,698,703 | 12,404,427 | 12,698,703 |
Share Capital - Additional Info
Share Capital - Additional Information (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | May 15, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||||||||
Amounts pledged | $ 486,165 | $ 486,165 | $ 357,120 | ||||||
Preferred stock, authorized | 50,000,000 | 50,000,000 | |||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||
Preferred stock, issued | 0 | 0 | |||||||
Stock Repurchased and Retired During Period, Value | $ 2,000 | $ 14,200 | |||||||
Treasury Stock Acquired, Average Cost Per Share | $ 23.28 | $ 20.78 | |||||||
Stock Repurchased and Retired During Period, Shares | 84,290 | 684,838 | |||||||
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 | 12,404,427 | 12,698,703 | 12,404,427 | 12,698,703 | 12,445,479 | 12,636,523 | 12,698,703 | 12,756,308 | 12,941,809 |
Common Stock, Shares, Issued | 12,404,427 | 12,404,427 | 12,698,703 | ||||||
Repurchase and cancelled stock | 84,290 | 76,657 | 684,838 | 323,249 | |||||
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] | |||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 98,625 | ||||||||
New Program [Member] | Class A Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Repurchase of class A common stock | 530,000 | ||||||||
Stock Repurchase Program Percentage Of Shares Repurchase Of Outstanding Share | 4.20% | ||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 434,697 | 434,697 | 628,625 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) $ in Millions | Sep. 30, 2020USD ($) |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 0 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 6 |
Regulatory Requirements - Addit
Regulatory Requirements - Additional Information (Narrative) (Details) | 9 Months Ended | |
Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | |
Regulatory Capital Requirements [Line Items] | ||
Net capital | $ 3,500,000 | |
Excess Liquid Capital under Hong Kong SFC Rules | 3,100,000 | |
Oppenheimer [Member] | ||
Regulatory Capital Requirements [Line Items] | ||
Required percentage of net capital to aggregate customer-related debit items | 0.02 | |
Net Capital | $ 268,700,000 | |
Aggregate indebtedness | 20.83% | |
Excess capital | $ 242,900,000 | |
Freedom | ||
Regulatory Capital Requirements [Line Items] | ||
Net Capital | $ 4,900,000 | |
Aggregate indebtedness | 6.67% | |
Freedom maintain net capital equal to the greater | $ 100,000 | |
Net capital in excess of minimum required | $ 4,800,000 | |
Oppenheimer Europe Ltd | ||
Regulatory Capital Requirements [Line Items] | ||
Common Equity Tier 1 Ratio | 0.2087 | 0.2087 |
Common Equity Tier 1 Ratio Required | 4.50% | 4.50% |
Tier 1 Capital Ratio | 20.87% | 20.87% |
Tier 1 Capital Ratio Required | 6.00% | 6.00% |
Total Capital Ratio | 27.83% | 27.83% |
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 | $ 387,089 |
Segment Information - Reported
Segment Information - Reported Revenue and Profit Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||||
Total revenue | $ (276,259) | $ (234,793) | $ (775,759) | $ (737,498) |
Income (loss) before income taxes | ||||
Operating Income (Loss) | $ 21,718 | 6,496 | 55,205 | 39,939 |
Asset management fees | 10.00% | |||
Private Client Division | ||||
Revenue | ||||
Total revenue | $ (141,097) | (152,054) | (424,340) | (477,509) |
Income (loss) before income taxes | ||||
Income before income taxes | 25,764 | 35,251 | 83,482 | 121,501 |
Asset Management | ||||
Revenue | ||||
Total revenue | (20,632) | (18,368) | (57,423) | (53,576) |
Income (loss) before income taxes | ||||
Income before income taxes | 6,426 | 4,932 | 14,714 | 12,492 |
Capital markets | ||||
Revenue | ||||
Total revenue | (114,289) | (64,068) | (295,101) | (206,848) |
Income (loss) before income taxes | ||||
Income before income taxes | 19,369 | (6,385) | 41,548 | (10,833) |
Corporate/Other | ||||
Revenue | ||||
Total revenue | (241) | (303) | 1,105 | 435 |
Income (loss) before income taxes | ||||
Income before income taxes | $ (29,841) | $ (27,302) | $ (84,539) | $ (83,221) |
Segment Information - Revenue C
Segment Information - Revenue Classified by Major Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 276,259 | $ 234,793 | $ 775,759 | $ 737,498 |
Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 265,606 | 227,001 | 735,504 | 712,864 |
Europe/Middle East | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 9,152 | 7,257 | 35,276 | 22,592 |
Asia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 1,501 | $ 535 | $ 4,979 | $ 2,042 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Narrative) (Details) - Subsequent Event [Member] - $ / shares | Nov. 26, 2020 | Nov. 12, 2020 | Oct. 29, 2020 |
Subsequent Events [Line Items] | |||
Date of announcement of dividend | Oct. 29, 2020 | ||
Date of payment of dividend | Nov. 26, 2020 | ||
Date of record of dividend | Nov. 12, 2020 | ||
Class A Stock | |||
Subsequent Events [Line Items] | |||
Quarterly dividend payable amount per share | $ 0.12 | ||
Class B Stock | |||
Subsequent Events [Line Items] | |||
Quarterly dividend payable amount per share | $ 0.12 |
Supplemental Guarantor Condense
Supplemental Guarantor Condensed Consolidated Financial Statements - Additional Information (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Jun. 23, 2017 | |
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 |
Supplemental Guarantor Conden_2
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||||||
Cash and cash equivalents | $ 32,080 | $ 79,550 | $ 26,193 | $ 90,675 | ||
Deposits with clearing organizations | 77,202 | 48,415 | ||||
Receivable from brokers, dealers and clearing organizations | 207,256 | 163,293 | ||||
Receivable from customers, net of allowance for credit losses of $418 ($451 in 2019) | 1,095,035 | 796,934 | ||||
Income tax receivable | 2,992 | 5,170 | ||||
Securities owned, at fair value | 646,680 | 799,719 | ||||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $37,224 and $4,190 respectively ($38,355 and $3,673, respectively, in 2019) | 44,723 | 43,670 | ||||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 28,916 | 31,377 | ||||
Operating Lease, Right-of-Use Asset | 154,666 | 160,297 | ||||
Subordinated loan receivable | 0 | 0 | ||||
Intangible assets | 32,100 | 32,100 | ||||
Goodwill | 137,889 | 137,889 | ||||
Other assets | 149,079 | 166,341 | ||||
Deferred tax assets | 0 | 0 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Intercompany receivables | 0 | 0 | ||||
Total assets | 2,608,618 | 2,464,755 | ||||
Liabilities | ||||||
Drafts payable | 18,251 | 0 | ||||
Bank call loans | 156,900 | 0 | ||||
Payable to brokers, dealers and clearing organizations | 366,949 | 520,975 | ||||
Payable to customers | 380,746 | 334,735 | ||||
Securities sold under agreements to repurchase | 252,827 | 287,265 | ||||
Securities sold but not yet purchased, at fair value | 222,449 | 100,571 | ||||
Accrued compensation | 201,616 | 207,358 | ||||
Accounts payable and other liabilities | 43,473 | 44,725 | ||||
Operating Lease, Liability | 195,348 | 203,140 | ||||
Income tax payable | 0 | 0 | ||||
Senior secured notes, net of debt issuance costs of $1,136 ($485 in 2019) | 123,864 | 149,515 | ||||
Subordinated indebtedness | 0 | 0 | ||||
Deferred tax liabilities, net | 30,979 | 23,749 | ||||
Intercompany payables | 0 | 0 | ||||
Total liabilities | 1,993,402 | 1,872,033 | ||||
Stockholders' equity | ||||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 615,216 | 592,722 | 566,627 | |||
Total liabilities and stockholders' equity | 2,608,618 | 2,464,755 | ||||
Allowance for credit losses | 418 | 451 | ||||
Amounts pledged | 486,165 | 357,120 | ||||
Notes Receivable, Net Accumulated Amortization | 37,224 | 38,355 | ||||
Notes Receivable, Net Allowance for Uncollectibles | 4,190 | $ 3,903 | $ 3,673 | 3,673 | ||
Net accumulated depreciation | 100,968 | 94,773 | ||||
Unamortized debt issuance expense | 1,136 | 485 | ||||
Eliminations | ||||||
ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Deposits with clearing organizations | 0 | 0 | ||||
Receivable from brokers, dealers and clearing organizations | 0 | 5,062 | ||||
Receivable from customers, net of allowance for credit losses of $418 ($451 in 2019) | 0 | 0 | ||||
Income tax receivable | (57,365) | (53,855) | ||||
Securities owned, at fair value | 1 | 0 | ||||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $37,224 and $4,190 respectively ($38,355 and $3,673, respectively, in 2019) | 0 | 0 | ||||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 0 | 0 | ||||
Operating Lease, Right-of-Use Asset | 0 | 0 | ||||
Subordinated loan receivable | (112,767) | (112,767) | ||||
Intangible assets | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Other assets | (3) | (10,432) | ||||
Deferred tax assets | 2,696 | (9,501) | ||||
Investment in subsidiaries | (1,372,882) | (1,485,739) | ||||
Intercompany receivables | (26,331) | (70,798) | ||||
Total assets | (1,566,651) | (1,738,030) | ||||
Liabilities | ||||||
Drafts payable | 0 | |||||
Bank call loans | 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 | 21 | (10,565) | ||||
Operating Lease, Liability | 0 | 0 | ||||
Income tax payable | (59,398) | (743) | ||||
Senior secured notes, net of debt issuance costs of $1,136 ($485 in 2019) | 0 | 0 | ||||
Subordinated indebtedness | (112,558) | (112,558) | ||||
Deferred tax liabilities, net | 4,731 | (9,797) | ||||
Intercompany payables | (26,335) | (299) | ||||
Total liabilities | (193,539) | (133,962) | ||||
Stockholders' equity | ||||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | (1,373,112) | (1,604,068) | ||||
Total liabilities and stockholders' equity | (1,566,651) | (1,738,030) | ||||
Parent | Reportable Legal Entities | ||||||
ASSETS | ||||||
Cash and cash equivalents | 3,864 | 4,811 | ||||
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 $418 ($451 in 2019) | 0 | 0 | ||||
Income tax receivable | 46,136 | 42,556 | ||||
Securities owned, at fair value | 0 | 0 | ||||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $37,224 and $4,190 respectively ($38,355 and $3,673, respectively, in 2019) | 0 | 0 | ||||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 0 | 0 | ||||
Operating Lease, Right-of-Use Asset | 0 | 0 | ||||
Subordinated loan receivable | 209 | 209 | ||||
Intangible assets | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Other assets | (786) | 154 | ||||
Deferred tax assets | 0 | 4 | ||||
Investment in subsidiaries | 779,573 | 697,093 | ||||
Intercompany receivables | (87,257) | 2,875 | ||||
Total assets | 741,739 | 747,702 | ||||
Liabilities | ||||||
Drafts payable | 0 | |||||
Bank call loans | 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 | 219 | 5,166 | ||||
Operating Lease, Liability | 0 | 0 | ||||
Income tax payable | 2,440 | 0 | ||||
Senior secured notes, net of debt issuance costs of $1,136 ($485 in 2019) | 123,864 | 149,515 | ||||
Subordinated indebtedness | 0 | 0 | ||||
Deferred tax liabilities, net | 0 | 0 | ||||
Intercompany payables | 0 | 299 | ||||
Total liabilities | 126,523 | 154,980 | ||||
Stockholders' equity | ||||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 615,216 | 592,722 | ||||
Total liabilities and stockholders' equity | 741,739 | 747,702 | ||||
Guarantor Subsidiaries | ||||||
ASSETS | ||||||
Cash and cash equivalents | 188 | 2,179 | 534 | 3,826 | ||
Guarantor Subsidiaries | Reportable Legal Entities | ||||||
ASSETS | ||||||
Cash and cash equivalents | 188 | 2,179 | ||||
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 $418 ($451 in 2019) | 0 | 0 | ||||
Income tax receivable | 14,923 | 16,469 | ||||
Securities owned, at fair value | 1,438 | 1,352 | ||||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $37,224 and $4,190 respectively ($38,355 and $3,673, respectively, in 2019) | 0 | 0 | ||||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 20,989 | 22,537 | ||||
Operating Lease, Right-of-Use Asset | 150,115 | 153,780 | ||||
Subordinated loan receivable | 112,558 | 112,558 | ||||
Intangible assets | 400 | 400 | ||||
Goodwill | 0 | 0 | ||||
Other assets | 1,367 | 11,798 | ||||
Deferred tax assets | (28) | 7,048 | ||||
Investment in subsidiaries | 593,310 | 763,990 | ||||
Intercompany receivables | 121,365 | 67,923 | ||||
Total assets | 1,016,625 | 1,160,034 | ||||
Liabilities | ||||||
Drafts payable | 0 | |||||
Bank call loans | 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 | (10,320) | 75 | ||||
Operating Lease, Liability | 190,603 | 196,234 | ||||
Income tax payable | 22,189 | 40 | ||||
Senior secured notes, net of debt issuance costs of $1,136 ($485 in 2019) | 0 | 0 | ||||
Subordinated indebtedness | 0 | 0 | ||||
Deferred tax liabilities, net | (7,298) | 0 | ||||
Intercompany payables | 26,335 | 0 | ||||
Total liabilities | 221,509 | 196,349 | ||||
Stockholders' equity | ||||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 795,116 | 963,685 | ||||
Total liabilities and stockholders' equity | 1,016,625 | 1,160,034 | ||||
Non-Guarantor Subsidiaries | ||||||
ASSETS | ||||||
Cash and cash equivalents | 28,028 | 72,560 | $ 20,874 | $ 33,324 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||
ASSETS | ||||||
Cash and cash equivalents | 28,028 | 72,560 | ||||
Deposits with clearing organizations | 77,202 | 48,415 | ||||
Receivable from brokers, dealers and clearing organizations | 207,256 | 158,231 | ||||
Receivable from customers, net of allowance for credit losses of $418 ($451 in 2019) | 1,095,035 | 796,934 | ||||
Income tax receivable | (702) | 0 | ||||
Securities owned, at fair value | 645,241 | 798,367 | ||||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $37,224 and $4,190 respectively ($38,355 and $3,673, respectively, in 2019) | 44,723 | 43,670 | ||||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 7,927 | 8,840 | ||||
Operating Lease, Right-of-Use Asset | 4,551 | 6,517 | ||||
Subordinated loan receivable | 0 | 0 | ||||
Intangible assets | 31,700 | 31,700 | ||||
Goodwill | 137,889 | 137,889 | ||||
Other assets | 148,501 | 164,821 | ||||
Deferred tax assets | (2,668) | 2,449 | ||||
Investment in subsidiaries | (1) | 24,656 | ||||
Intercompany receivables | (7,777) | 0 | ||||
Total assets | 2,416,905 | 2,295,049 | ||||
Liabilities | ||||||
Drafts payable | 18,251 | |||||
Bank call loans | 156,900 | |||||
Payable to brokers, dealers and clearing organizations | 366,949 | 520,975 | ||||
Payable to customers | 380,746 | 334,735 | ||||
Securities sold under agreements to repurchase | 252,827 | 287,265 | ||||
Securities sold but not yet purchased, at fair value | 222,449 | 100,571 | ||||
Accrued compensation | 201,616 | 207,358 | ||||
Accounts payable and other liabilities | 53,553 | 50,049 | ||||
Operating Lease, Liability | 4,745 | 6,906 | ||||
Income tax payable | 34,769 | 703 | ||||
Senior secured notes, net of debt issuance costs of $1,136 ($485 in 2019) | 0 | 0 | ||||
Subordinated indebtedness | 112,558 | 112,558 | ||||
Deferred tax liabilities, net | 33,546 | 33,546 | ||||
Intercompany payables | 0 | 0 | ||||
Total liabilities | 1,838,909 | 1,654,666 | ||||
Stockholders' equity | ||||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 577,996 | 640,383 | ||||
Total liabilities and stockholders' equity | $ 2,416,905 | $ 2,295,049 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
REVENUES | ||||
Commissions | $ 92,241 | $ 78,627 | $ 297,126 | $ 238,932 |
Investment Advisory Fee Revenue | 88,595 | 80,887 | 250,740 | 235,241 |
Investment banking | 66,245 | 21,798 | 138,159 | 81,847 |
Sweep Interest Income from FDIC-Insured Bank Deposits | 4,619 | 28,894 | 30,567 | 94,692 |
Interest | 7,540 | 12,344 | 24,650 | 38,621 |
Principal transactions, net | 7,703 | 7,606 | 18,899 | 22,089 |
Other | 9,316 | 4,637 | 15,618 | 26,076 |
Total revenue | 276,259 | 234,793 | 775,759 | 737,498 |
EXPENSES | ||||
Compensation and related expenses | 189,654 | 151,284 | 526,924 | 467,422 |
Communications and technology | 19,474 | 20,872 | 60,689 | 61,457 |
Occupancy and equipment costs | 15,199 | 16,010 | 46,611 | 46,856 |
Clearing and exchange fees | 6,211 | 5,469 | 18,061 | 16,479 |
Interest | 3,461 | 11,531 | 12,901 | 37,709 |
Other | 20,542 | 23,131 | 55,368 | 67,636 |
Total expenses | 254,541 | 228,297 | 720,554 | 697,559 |
Operating Income (Loss) | 21,718 | 6,496 | 55,205 | 39,939 |
Income Tax Expense (Benefit) | 6,079 | 2,547 | 14,099 | 12,421 |
Net Income (Loss) before equity in Earnings of Subsidiaries | 15,639 | 3,949 | 41,106 | 27,518 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income attributable to Oppenheimer Holdings Inc. | 15,639 | 3,949 | 41,106 | 27,518 |
Other comprehensive income | 244 | 533 | 187 | 1,457 |
Comprehensive income | 15,883 | 4,482 | 41,293 | 28,975 |
Eliminations | ||||
REVENUES | ||||
Commissions | 0 | 0 | 0 | 0 |
Investment Advisory Fee Revenue | (368) | (342) | (1,071) | (1,037) |
Investment banking | (1,875) | 0 | (1,875) | 0 |
Sweep Interest Income from FDIC-Insured Bank Deposits | 0 | 0 | 0 | 0 |
Interest | (2,112) | (2,073) | (6,258) | (6,220) |
Principal transactions, net | 0 | 54 | 0 | (12) |
Other | 1 | (1) | (3) | 1 |
Total revenue | (4,354) | (2,362) | (9,207) | (7,268) |
EXPENSES | ||||
Compensation and related expenses | 0 | (1) | 0 | (6) |
Communications and technology | 0 | 0 | 0 | 0 |
Occupancy and equipment costs | 0 | 0 | 0 | 2 |
Clearing and exchange fees | 0 | 54 | 0 | 0 |
Interest | (2,112) | (2,073) | (6,258) | (6,220) |
Other | (2,242) | (342) | (2,949) | (1,044) |
Total expenses | (4,354) | (2,362) | (9,207) | |
Operating Income (Loss) | 0 | 0 | 0 | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | |
Net Income (Loss) before equity in Earnings of Subsidiaries | 0 | 0 | 0 | |
Equity in earnings of subsidiaries | (41,367) | (14,403) | (98,292) | |
Net income attributable to Oppenheimer Holdings Inc. | (41,367) | (14,403) | (98,292) | |
Other comprehensive income | 0 | 0 | 0 | |
Comprehensive income | (41,367) | (14,403) | (98,292) | |
Parent [Member] | ||||
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 | 0 | 0 |
Interest | 0 | 59 | 2 | 234 |
Principal transactions, net | 0 | 0 | 0 | 0 |
Other | 0 | 3 | 95 | 3 |
Total revenue | 0 | 62 | 97 | 237 |
EXPENSES | ||||
Compensation and related expenses | 259 | 273 | 879 | 1,098 |
Communications and technology | 61 | 39 | 144 | 130 |
Occupancy and equipment costs | 0 | 0 | 0 | 0 |
Clearing and exchange fees | 0 | 0 | 0 | 0 |
Interest | 2,596 | 3,038 | 7,632 | 9,788 |
Other | 4,906 | 2,087 | 5,358 | 2,637 |
Total expenses | 7,822 | 5,437 | 14,013 | 13,653 |
Operating Income (Loss) | (7,822) | (5,375) | (13,916) | (13,416) |
Income Tax Expense (Benefit) | (2,010) | (1,364) | (3,576) | (3,702) |
Net Income (Loss) before equity in Earnings of Subsidiaries | (5,812) | (4,011) | (10,340) | (9,714) |
Equity in earnings of subsidiaries | 21,451 | 7,960 | 51,446 | 37,232 |
Net income attributable to Oppenheimer Holdings Inc. | 15,639 | 3,949 | 41,106 | 27,518 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income | 15,639 | 3,949 | 41,106 | 27,518 |
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 | 0 | 0 |
Interest | 2,058 | 2,059 | 6,174 | 6,181 |
Principal transactions, net | 8 | (34) | 57 | 121 |
Other | 0 | 0 | 0 | 2 |
Total revenue | 2,066 | 2,025 | 6,231 | 6,304 |
EXPENSES | ||||
Compensation and related expenses | 0 | 0 | 0 | 0 |
Communications and technology | 0 | 0 | 0 | 0 |
Occupancy and equipment costs | 0 | 0 | 0 | (1) |
Clearing and exchange fees | 0 | (54) | 0 | 0 |
Interest | 0 | 0 | 0 | 0 |
Other | 3 | 4 | 8 | 248 |
Total expenses | 3 | (50) | 8 | 247 |
Operating Income (Loss) | 2,063 | 2,075 | 6,223 | 6,057 |
Income Tax Expense (Benefit) | 528 | 558 | 1,623 | 1,994 |
Net Income (Loss) before equity in Earnings of Subsidiaries | 1,535 | 1,517 | 4,600 | 4,063 |
Equity in earnings of subsidiaries | 19,916 | 6,443 | 46,846 | 33,169 |
Net income attributable to Oppenheimer Holdings Inc. | 21,451 | 7,960 | 51,446 | 37,232 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income | 21,451 | 7,960 | 51,446 | 37,232 |
Non-Guarantor Subsidiaries | ||||
REVENUES | ||||
Commissions | 92,241 | 78,627 | 297,126 | 238,932 |
Investment Advisory Fee Revenue | 88,963 | 81,229 | 251,811 | 236,278 |
Investment banking | 68,120 | 21,798 | 140,034 | 81,847 |
Sweep Interest Income from FDIC-Insured Bank Deposits | 4,619 | 28,894 | 30,567 | 94,692 |
Interest | 7,594 | 12,299 | 24,732 | 38,426 |
Principal transactions, net | 7,695 | 7,586 | 18,842 | 21,980 |
Other | 9,315 | 4,635 | 15,526 | 26,070 |
Total revenue | 278,547 | 235,068 | 778,638 | 738,225 |
EXPENSES | ||||
Compensation and related expenses | 189,395 | 151,012 | 526,045 | 466,330 |
Communications and technology | 19,413 | 20,833 | 60,545 | 61,327 |
Occupancy and equipment costs | 15,199 | 16,010 | 46,611 | 46,855 |
Clearing and exchange fees | 6,211 | 5,469 | 18,061 | 16,479 |
Interest | 2,977 | 10,566 | 11,527 | 34,141 |
Other | 17,875 | 21,382 | 52,951 | 65,795 |
Total expenses | 251,070 | 225,272 | 715,740 | 690,927 |
Operating Income (Loss) | 27,477 | 9,796 | 62,898 | 47,298 |
Income Tax Expense (Benefit) | 7,561 | 3,353 | 16,052 | 14,129 |
Net Income (Loss) before equity in Earnings of Subsidiaries | 19,916 | 6,443 | 46,846 | 33,169 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income attributable to Oppenheimer Holdings Inc. | 19,916 | 6,443 | 46,846 | 33,169 |
Other comprehensive income | 244 | 533 | 187 | 1,457 |
Comprehensive income | $ 20,160 | $ 6,976 | $ 47,033 | 34,626 |
Eliminations | ||||
EXPENSES | ||||
Total expenses | (7,268) | |||
Operating Income (Loss) | 0 | |||
Income Tax Expense (Benefit) | 0 | |||
Net Income (Loss) before equity in Earnings of Subsidiaries | 0 | |||
Equity in earnings of subsidiaries | (70,401) | |||
Net income attributable to Oppenheimer Holdings Inc. | (70,401) | |||
Other comprehensive income | 0 | |||
Comprehensive income | $ (70,401) |
Supplemental Guarantor Conden_4
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | Sep. 28, 2020 | Aug. 25, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Condensed Financial Statements, Captions [Line Items] | ||||
Proceeds from Issuance of Common Stock | $ 83 | |||
Cash flows from operations: | ||||
Cash provided by/(used in) operating activities | $ (148,383) | 22,897 | ||
Cash flows from investing activities | ||||
Purchase of furniture, equipment and leasehold improvements | (3,708) | (8,672) | ||
Cash used in investing activities | (3,708) | (6,952) | ||
Cash flows from financing activities | ||||
Cash dividends paid on Class A non-voting and Class B voting common stock | (4,597) | (4,408) | ||
Proceeds from Issuance or Sale of Equity | 34 | 83 | ||
Payments for Repurchase of Common Stock | (14,228) | (8,400) | ||
Payments for employee taxes withheld related to vested share-based awards | (5,771) | (1,014) | ||
Proceeds from Issuance of Secured Debt | 125,000 | 0 | ||
Repurchase of Secured Debt | (1,426) | 0 | ||
Payments of Debt Issuance Costs | (210) | 0 | ||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ (2,500) | $ (1,700) | (2,507) | (1,688) |
Repayments of Secured Debt | $ 50,000 | 148,574 | 50,000 | |
Redemption of senior secured notes | 156,900 | (15,000) | ||
Cash provided by (used in) financing activities | 104,621 | (80,427) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (47,470) | (64,482) | ||
Cash and cash equivalents, beginning of period | 79,550 | 90,675 | ||
Cash and cash equivalents, end of period | 32,080 | 26,193 | ||
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Proceeds from Issuance of Common Stock | 0 | |||
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 | ||
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 | ||
Payments for Repurchase of Common Stock | 0 | |||
Payments for employee taxes withheld related to vested share-based awards | 0 | 0 | ||
Redemption of senior secured notes | 0 | 0 | ||
Cash provided by (used in) financing activities | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | ||
Cash and cash equivalents, end of period | 0 | 0 | ||
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Proceeds from Issuance of Common Stock | 83 | |||
Cash flows from operations: | ||||
Cash provided by/(used in) operating activities | 51,332 | 16,687 | ||
Cash flows from investing activities | ||||
Purchase of furniture, equipment and leasehold improvements | 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 | (4,597) | (4,408) | ||
Proceeds from Issuance or Sale of Equity | 34 | |||
Payments for Repurchase of Common Stock | (14,228) | |||
Payments for employee taxes withheld related to vested share-based awards | (5,771) | (1,014) | ||
Proceeds from Issuance of Secured Debt | 125,000 | |||
Repurchase of Secured Debt | (1,426) | |||
Payments of Debt Issuance Costs | (210) | |||
Payment for Debt Extinguishment or Debt Prepayment Cost | (2,507) | (1,688) | ||
Repayments of Secured Debt | 148,574 | 50,000 | ||
Redemption of senior secured notes | 0 | 0 | ||
Cash provided by (used in) financing activities | (52,279) | (65,427) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (947) | (48,740) | ||
Cash and cash equivalents, beginning of period | 4,811 | 53,525 | ||
Cash and cash equivalents, end of period | 3,864 | 4,785 | ||
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Proceeds from Issuance of Common Stock | 0 | |||
Cash flows from operations: | ||||
Cash provided by/(used in) operating activities | (1,991) | (3,292) | ||
Cash flows from investing activities | ||||
Purchase of furniture, equipment and leasehold improvements | 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 | ||
Payments for Repurchase of Common Stock | 0 | |||
Payments for employee taxes withheld related to vested share-based awards | 0 | 0 | ||
Redemption of senior secured notes | 0 | 0 | ||
Cash provided by (used in) financing activities | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (1,991) | (3,292) | ||
Cash and cash equivalents, beginning of period | 2,179 | 3,826 | ||
Cash and cash equivalents, end of period | 188 | 534 | ||
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Proceeds from Issuance of Common Stock | 0 | |||
Cash flows from operations: | ||||
Cash provided by/(used in) operating activities | (197,724) | 9,502 | ||
Cash flows from investing activities | ||||
Purchase of furniture, equipment and leasehold improvements | (3,708) | (8,672) | ||
Cash used in investing activities | (3,708) | (6,952) | ||
Cash flows from financing activities | ||||
Cash dividends paid on Class A non-voting and Class B voting common stock | 0 | 0 | ||
Payments for Repurchase of Common Stock | 0 | |||
Payments for employee taxes withheld related to vested share-based awards | 0 | 0 | ||
Redemption of senior secured notes | 156,900 | (15,000) | ||
Cash provided by (used in) financing activities | 156,900 | (15,000) | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (44,532) | (12,450) | ||
Cash and cash equivalents, beginning of period | 72,560 | 33,324 | ||
Cash and cash equivalents, end of period | $ 28,028 | $ 20,874 |