Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 29, 2018 | Jul. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 29, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | JNFC | |
Entity Registrant Name | JONES FINANCIAL COMPANIES LLLP | |
Entity Central Index Key | 815,917 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Limited Partnership Interests Outstanding | 889,545 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Millions | Jun. 29, 2018 | Dec. 31, 2017 |
ASSETS: | ||
Cash and cash equivalents | $ 1,015 | $ 846 |
Cash and investments segregated under federal regulations | 7,892 | 10,099 |
Securities purchased under agreements to resell | 837 | 1,164 |
Receivable from: | ||
Clients | 3,417 | 3,300 |
Mutual funds, insurance companies and other | 550 | 540 |
Brokers, dealers and clearing organizations | 275 | 247 |
Securities owned, at fair value: | ||
Investment securities | 262 | 258 |
Inventory securities | 65 | 50 |
Equipment, property and improvements, at cost, net of accumulated depreciation and amortization | 551 | 544 |
Other assets | 107 | 128 |
TOTAL ASSETS | 14,971 | 17,176 |
Payable to: | ||
Clients | 10,785 | 12,810 |
Brokers, dealers and clearing organizations | 99 | 67 |
Accrued compensation and employee benefits | 1,202 | 1,339 |
Accounts payable, accrued expenses and other | 203 | 165 |
Total liabilities before partnership capital | 12,289 | 14,381 |
Contingencies (Note 7) | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 2,554 | 2,505 |
Reserve for anticipated withdrawals | 128 | 290 |
Total partnership capital subject to mandatory redemption | 2,682 | 2,795 |
TOTAL LIABILITIES | 14,971 | 17,176 |
Limited Partnership Capital [Member] | ||
Payable to: | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 891 | 890 |
Subordinated Limited Partnership Capital [Member] | ||
Payable to: | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 506 | 463 |
General Partnership Capital [Member] | ||
Payable to: | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | $ 1,157 | $ 1,152 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 29, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Interest and dividends | $ 86 | $ 65 | $ 165 | $ 123 |
Other revenue | 17 | 19 | 23 | 32 |
Total revenue | 2,113 | 1,903 | 4,187 | 3,718 |
Interest expense | 30 | 21 | 62 | 39 |
Net revenue | 2,083 | 1,882 | 4,125 | 3,679 |
Operating expenses: | ||||
Compensation and benefits | 1,480 | 1,329 | 2,934 | 2,606 |
Occupancy and equipment | 110 | 103 | 219 | 205 |
Communications and data processing | 85 | 81 | 165 | 162 |
Fund sub-adviser fees | 31 | 24 | 61 | 44 |
Advertising | 22 | 21 | 47 | 44 |
Professional and consulting fees | 18 | 18 | 36 | 35 |
Postage and shipping | 15 | 18 | 29 | 33 |
Other operating expenses | 82 | 63 | 161 | 128 |
Total operating expenses | 1,843 | 1,657 | 3,652 | 3,257 |
Income before allocations to partners | 240 | 225 | 473 | 422 |
Allocations to partners: | ||||
Limited partners | 28 | 28 | 55 | 53 |
Subordinated limited partners | 31 | 28 | 61 | 53 |
General partners | 181 | 169 | 357 | 316 |
Net Income | $ 0 | $ 0 | $ 0 | $ 0 |
Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding | $ 31.02 | $ 31.27 | $ 61.18 | $ 58.60 |
Weighted average $1,000 equivalent limited partnership units outstanding | 890,974 | 898,753 | 892,318 | 900,137 |
Asset-based Fee Revenue [Member] | ||||
Revenue: | ||||
Revenue | $ 1,501 | $ 1,217 | $ 2,954 | $ 2,332 |
Account and Activity Fee Revenue [Member] | ||||
Revenue: | ||||
Revenue | 169 | 173 | 341 | 345 |
Total Fee Revenue [Member] | ||||
Revenue: | ||||
Revenue | 1,670 | 1,390 | 3,295 | 2,677 |
Trade Revenue [Member] | ||||
Revenue: | ||||
Revenue | $ 340 | $ 429 | $ 704 | $ 886 |
Consolidated Statements of Inc4
Consolidated Statements of Income (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 29, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Limited partnership interest value | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 0 | $ 0 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Income before allocations to partners | 473 | 422 |
Depreciation and amortization | 45 | 41 |
Changes in assets and liabilities: | ||
Investments segregated under federal regulations | 705 | 954 |
Securities purchased under agreements to resell | 327 | 492 |
Net payable to clients | (2,142) | (2,528) |
Net receivable from brokers, dealers and clearing organizations | 4 | 13 |
Receivable from mutual funds, insurance companies and other | (10) | (41) |
Securities owned | (19) | (39) |
Other assets | 21 | 5 |
Accrued compensation and employee benefits | (137) | (62) |
Accounts payable, accrued expenses and other | 38 | 19 |
Net cash used in operating activities | (695) | (724) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of equipment, property and improvements, net | (52) | (40) |
Net cash used in investing activities | (52) | (40) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of partnership interests | 60 | 66 |
Redemption of partnership interests | (173) | (170) |
Distributions from partnership capital | (473) | (380) |
Net cash used in financing activities | (586) | (484) |
Net decrease in cash, cash equivalents and restricted cash | (1,333) | (1,248) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | ||
Beginning of period | 8,537 | 9,572 |
End of period | $ 7,204 | $ 8,324 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 6 Months Ended |
Jun. 29, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Introduction and Basis of Presentation | NOTE 1 – INTRODUCTION AND BASIS OF PRESENTATION The accompanying Consolidated Financial Statements include the accounts of The Jones Financial Companies, L.L.L.P. and all wholly-owned subsidiaries (collectively, the “Partnership” or "JFC"). All material intercompany balances and transactions have been eliminated in consolidation. The financial position of the Partnership’s subsidiaries in Canada as of May 31, 2018 and November 30, 2017 are included in the Partnership’s Consolidated Statements of Financial Condition and the results for the three and six month periods ended May 31, 2018 and 2017 are included in the Partnership’s Consolidated Statements of Income and Consolidated Statements of Cash Flows because of the timing of the Partnership’s financial reporting process. The Partnership’s principal operating subsidiary, Edward D. Jones & Co., L.P. (“Edward Jones”), is a registered broker-dealer and investment adviser in the United States (“U.S.”), and one of Edward Jones’ subsidiaries is a registered broker-dealer in Canada. Through these entities, the Partnership primarily serves individual investors in the U.S. and Canada. Edward Jones is a retail brokerage business and primarily derives revenues from fees for providing investment advisory and other account services to its clients, fees for assets held by clients, the distribution of mutual fund shares, and commissions for the purchase or sale of securities and the purchase of insurance products. The Partnership conducts business throughout the U.S. and Canada with its clients, various brokers, dealers, clearing organizations, depositories and banks. Trust services are offered to Edward Jones’ U.S. clients through Edward Jones Trust Company (“Trust Co.”), a wholly-owned subsidiary of the Partnership. Olive Street Investment Advisers, LLC, a wholly-owned subsidiary of the Partnership, provides investment advisory services to the sub-advised mutual funds in the Bridge Builder® Trust. Passport Research, Ltd., a wholly-owned subsidiary of the Partnership, provides investment advisory services to the Edward Jones Money Market Fund. The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the U.S. (“GAAP”) which require the use of certain estimates by management in determining the Partnership’s assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The Partnership has evaluated subsequent events through the date these Consolidated Financial Statements were issued and identified no matters requiring disclosure in addition to the termination of the Partnership's 2014 Employee Limited Partnership Interest Purchase Plan (the "2014 Plan"). See Note 5. The interim financial information included herein is unaudited. However, in the opinion of management, such information includes all adjustments, consisting primarily of normal recurring accruals, which are necessary for a fair statement of the results of interim operations. There have been no material changes to the Partnership’s significant accounting policies or disclosures of recently issued accounting standards as described in Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 of the Partnership's Annual Report on Form 10-K (the "Annual Report"), except as disclosed in Note 2 herein. The results of operations for the three and six month periods ended June 29, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018. These unaudited Consolidated Financial Statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and notes thereto included in the Annual Report. |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 6 Months Ended |
Jun. 29, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recently Adopted Accounting Standards | NOTE 2 – RECENTLY ADOPTED ACCOUNTING STANDARDS In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cash, a consensus of the FASB Emerging Issues Task Force |
Revenue
Revenue | 6 Months Ended |
Jun. 29, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | NOTE 3 – REVENUE Revenue Recognition. The Partnership's revenue is recognized based on contracts with clients, mutual fund companies, insurance companies and other product providers. As a full-service brokerage firm, Edward Jones provides clients with custodial services, including safekeeping of client funds, collecting and disbursing funds from a client's account, and providing trade confirmations and account statements. The Partnership does not charge a separate fee for these services. Revenue is generally recognized in the same manner for both the U.S. and Canada segments. The Partnership classifies its revenue into the following categories: Asset-based fee revenue – Revenue is derived from fees determined by the underlying value of client assets and includes advisory programs fees, service fees, and other asset-based fee revenue. The primary source of asset-based fee revenue is generated from program fees for investment advisory services provided within the Partnership’s advisory programs, including in the U.S., the Edward Jones Advisory Solutions® program (“Advisory Solutions”) and the Edward Jones Guided Solutions® program ("Guided Solutions") and, in Canada, the Edward Jones Portfolio Program® and the Edward Jones Guided Portfolios® program. Advisory program contracts outline the investment advisory services to be performed for a client under the contract and do not have a definite end date. Program fees are based on the average daily market value of client assets in the program and are charged to clients monthly and collected the following month. The investment advisory services performed in an advisory program contract are a series of distinct services that are substantially the same and have the same pattern of transfer to the client. As a result, the contract has one performance obligation and program fee revenue is recognized over time as clients simultaneously receive and consume the benefit from the investment advisory services performed by the Partnership. The Partnership has selling agreements with mutual fund and insurance companies that allow the Partnership to sell that company's products to clients (see Trade revenue Account and activity fee revenue – Revenue is derived from fees based on the number of accounts or activity and includes shareholder accounting services fees, self-directed individual retirement account ("IRA") fees, and other activity-based fee revenue from clients, mutual fund companies and insurance companies. The Partnership has agreements with mutual fund companies for shareholder accounting services in which the Partnership performs certain transfer agent support services, which may include tracking client holdings, distributing dividends and shareholder information to clients, and responding to client inquiries. Shareholder accounting services fees are based on the number of mutual fund positions held by clients and fees are collected monthly or quarterly based on the agreements, which generally do not have a term. The transfer agent support services performed in a shareholder accounting services contract are a series of distinct services that are substantially the same and have the same pattern of transfer to the client. As a result, the contract has one performance obligation and revenue is recognized over time as the mutual fund company simultaneously receives and consumes the benefit from the services performed by the Partnership. The Partnership also earns retirement account fees for providing reporting services pursuant to the Internal Revenue Code and account maintenance services. Clients are charged an annual fee per account for these services. Revenue is recognized over a one-year period as the services are provided, which are simultaneously received and consumed by the client. Trade revenue – Revenue is derived from fees based on client transactions and includes commissions and principal transactions. The primary source of trade revenue is commissions revenue which consists of charges to clients for the purchase or sale of mutual fund shares and equities and the purchase of insurance products. Principal transactions revenue primarily results from the Partnership’s distribution of and participation in principal trading activities in municipal obligations, over-the-counter corporate obligations, and certificates of deposit. Principal transactions are generally entered into by the Partnership to facilitate a client's buy or sell order for certain fixed income products. Brokerage contracts outline the transaction services to be performed for a client under the contract and do not have a term. The transaction charge to clients varies based on the product and size of the trade. The Partnership also has contracts with various companies which allow the Partnership to sell that company's products to clients and receive a certain commission. Trade revenue is recognized at a point in time when the transaction is placed, or trade date. On trade date the client obtains control through a right to either own a security for a purchase or receive payment for a sale. Transaction charges are received no later than settlement date. Interest and dividends revenue – Interest revenue is earned on client margin (loan) account balances. In addition, interest revenue is earned on cash and cash equivalents, cash and investments segregated under federal regulations, securities purchased under agreements to resell and Partnership loans, none of which is based on revenue contracts with clients. Other forms of revenue are recorded on an accrual basis. Activity or transaction-based revenue is recorded at a point in time when the transaction occurs and asset-based revenue is recorded over time as the services are provided. As of June 29, 2018 and December 31, 2017, $386 and $346, respectively, of the receivable from clients balance and $273 and $279, respectively, of the receivable from mutual funds, insurance companies and other balance related to revenue contracts with customers. The following table shows the Partnership's disaggregated revenue information. See Note 8 for segment information. Three Months Ended June 29, 2018 Three Months Ended June 30, 2017 U.S. Canada Total U.S. Canada Total Revenue Fee revenue: Asset-based fee revenue: Advisory programs fees $ 1,025 $ 14 $ 1,039 $ 787 $ 9 $ 796 Service fees 303 22 325 289 20 309 Other asset-based fees 137 — 137 112 — 112 Total asset-based fee revenue 1,465 36 1,501 1,188 29 1,217 Account and activity fee revenue: Shareholder accounting services fees 109 — 109 105 — 105 Other account and activity fee revenue 57 3 60 65 3 68 Total account and activity fee revenue 166 3 169 170 3 173 Total fee revenue 1,631 39 1,670 1,358 32 1,390 Trade revenue: Commissions 290 12 302 378 13 391 Principal transactions 37 1 38 37 1 38 Total trade revenue 327 13 340 415 14 429 Net interest and dividends revenue 54 2 56 43 1 44 Other revenue 14 3 17 17 2 19 Net revenue $ 2,026 $ 57 $ 2,083 $ 1,833 $ 49 $ 1,882 Six Months Ended June 29, 2018 Six Months Ended June 30, 2017 U.S. Canada Total U.S. Canada Total Revenue Fee revenue: Asset-based fee revenue: Advisory programs fees $ 2,007 $ 27 $ 2,034 $ 1,472 $ 18 $ 1,490 Service fees 608 44 652 587 38 625 Other asset-based fees 268 — 268 217 — 217 Total asset-based fee revenue 2,883 71 2,954 2,276 56 2,332 Account and activity fee revenue: Shareholder accounting services fees 218 — 218 210 — 210 Other account and activity fee revenue 116 7 123 129 6 135 Total account and activity fee revenue 334 7 341 339 6 345 Total fee revenue 3,217 78 3,295 2,615 62 2,677 Trade revenue: Commissions 608 26 634 779 27 806 Principal transactions 68 2 70 78 2 80 Total trade revenue 676 28 704 857 29 886 Net interest and dividends revenue 99 4 103 82 2 84 Other revenue 18 5 23 28 4 32 Net revenue $ 4,010 $ 115 $ 4,125 $ 3,582 $ 97 $ 3,679 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 4 – FAIR VALUE The Partnership's valuation methodologies for financial assets and financial liabilities measured at fair value and the fair value hierarchy are described in Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 of the Partnership's Annual Report. There have been no material changes to the Partnership's valuation methodologies since December 31, 2017. The Partnership did not have any assets or liabilities categorized as Level III during the six and twelve month periods ended June 29, 2018 and December 31, 2017, respectively. In addition, there were no transfers into or out of Levels I, II or III during these periods. The following tables show the Partnership’s financial assets measured at fair value: Financial Assets at Fair Value as of June 29, 2018 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 276 $ — $ 276 Investments segregated under federal regulations: U.S. treasuries $ 1,497 $ — $ — $ 1,497 Certificates of deposit — 200 — 200 Total investments segregated under federal regulations $ 1,497 $ 200 $ — $ 1,697 Securities owned: Investment securities: Mutual funds (1) $ 256 $ — $ — $ 256 Government and agency obligations 3 — — 3 Equities 2 — — 2 Corporate bonds and notes — 1 — 1 Total investment securities $ 261 $ 1 $ — $ 262 Inventory securities: State and municipal obligations $ — $ 30 $ — $ 30 Mutual funds 16 — — 16 Equities 15 — — 15 Corporate bonds and notes — 4 — 4 Total inventory securities $ 31 $ 34 $ — $ 65 (1) The mutual funds balance consists primarily of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan. Financial Assets at Fair Value as of December 31, 2017 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 275 $ — $ 275 Investments segregated under federal regulations: U.S. treasuries $ 2,399 $ — $ — $ 2,399 Securities owned: Investment securities: Mutual funds (1) $ 252 $ — $ — $ 252 Government and agency obligations 3 — — 3 Equities 2 — — 2 Corporate bonds and notes — 1 — 1 Total investment securities $ 257 $ 1 $ — $ 258 Inventory securities: State and municipal obligations $ — $ 24 $ — $ 24 Equities 16 — — 16 Mutual funds 4 — — 4 Certificates of deposit — 4 — 4 Corporate bonds and notes — 2 — 2 Total inventory securities $ 20 $ 30 $ — $ 50 |
Partnership Capital
Partnership Capital | 6 Months Ended |
Jun. 29, 2018 | |
Partners Capital Notes [Abstract] | |
Partnership Capital | NOTE 5 – PARTNERSHIP CAPITAL The Partnership makes loans available to those general partners and, in limited circumstances, subordinated limited partners (in each case, other than members of the Executive Committee, as defined in the Partnership’s Nineteenth Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated June 6, 2014 (the “Partnership Agreement”)), who require financing for some or all of their Partnership capital contributions. In limited circumstances a general partner may withdraw from the Partnership and become a subordinated limited partner while he or she still has an outstanding Partnership loan. It is anticipated that, of the future general and subordinated limited partnership capital contributions (in each case, other than for Executive Committee members) requiring financing, the majority will be financed through Partnership loans. Loans made by the Partnership to such partners are generally for a period of one year but are expected to be renewed and bear interest at the interest rate defined in the loan documents. The Partnership recognizes interest income for the interest earned related to these loans. The outstanding amount of Partnership loans is reflected as a reduction to total Partnership capital. As of June 29, 2018 and December 31, 2017, the outstanding amount of Partnership loans was $353 and $297, respectively. Interest income earned from these loans, which is included in interest and dividends in the Consolidated Statements of Income, was $4 and $8 The following table shows the roll forward of outstanding Partnership loans for: Six Months Ended June 29, June 30, 2018 2017 Partnership loans outstanding at beginning of period $ 297 $ 266 Partnership loans issued during the period 168 142 Repayment of Partnership loans during the period (112 ) (93 ) Total Partnership loans outstanding $ 353 $ 315 The minimum 7.5% annual payment on the face amount of limited partnership capital was $16 and $33 for the three and six month periods ended June 29, 2018, respectively, and $17 and $34 for the three and six month periods ended June 30, 2017, respectively. These amounts are included as a component of interest expense in the Consolidated Statements of Income. The Partnership filed a Registration Statement on Form S-8 with the U.S. Securities and Exchange Commission ("SEC") on January 17, 2014, to register $350 of Interests to be issued pursuant to the 2014 Plan. The Partnership previously issued approximately $298 of Interests under the 2014 Plan. Recently, the Partnership terminated the 2014 Plan and deregistered all remaining unsold Interests. The Partnership filed a Registration Statement on Form S-8 with the SEC on January 12, 2018, to register $450 of Interests to be issued pursuant to the Partnership's 2018 Employee Limited Partnership Interest Purchase Plan (the "2018 Plan"). The Partnership intends to offer initial Interests under the 2018 Plan during the latter part of 2018 and the initial offering under the 2018 Plan is expected to close early in 2019. |
Net Capital Requirements
Net Capital Requirements | 6 Months Ended |
Jun. 29, 2018 | |
Brokers And Dealers [Abstract] | |
Net Capital Requirements | NOTE 6 – NET CAPITAL REQUIREMENTS As a result of its activities as a U.S. broker-dealer, Edward Jones is subject to the net capital provisions of Rule 15c3-1 of the Exchange Act and capital compliance rules of the Financial Industry Regulatory Authority (“FINRA”) Rule 4110. Under the alternative method permitted by the rules, Edward Jones must maintain minimum net capital equal to the greater of $0.25 or 2% of aggregate debit items arising from client transactions. The net capital rules also provide that Edward Jones’ partnership capital may not be withdrawn if resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and FINRA to the extent they exceed defined levels, even though such withdrawals would not cause net capital to be less than minimum requirements. The Partnership’s Canada broker-dealer subsidiary is a registered broker-dealer regulated by the Investment Industry Regulatory Organization of Canada (“IIROC”). Under the regulations prescribed by IIROC, the Partnership’s Canada broker-dealer subsidiary is required to maintain minimum levels of risk-adjusted capital, which are dependent on the nature of the Partnership’s Canada broker-dealer subsidiary’s assets and operations. The following table shows the Partnership’s net capital figures for its U.S. and Canada broker-dealer subsidiaries as of: June 29, December 31, 2018 2017 U.S.: Net capital $ 1,096 $ 1,107 Net capital in excess of the minimum required $ 1,036 $ 1,049 Net capital as a percentage of aggregate debit items 36.7 % 38.1 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 20.0 % 21.6 % Canada: Regulatory risk-adjusted capital $ 42 $ 50 Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC $ 37 $ 42 Net capital and the related capital percentages may fluctuate on a daily basis. In addition, Trust Co. was in compliance with its regulatory capital requirements as of June 29, 2018 and December 31, 2017. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 29, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 7 – CONTINGENCIES In the normal course of its business, the Partnership is involved, from time to time, in various legal and regulatory matters, including arbitrations, class actions, other litigation, and examinations, investigations and proceedings by governmental authorities, self-regulatory organizations and other regulators, which may result in losses. In addition, the Partnership provides for potential losses that may arise related to other contingencies. The Partnership assesses its liabilities and contingencies utilizing available information. The Partnership accrues for potential losses for those matters where it is probable that the Partnership will incur a potential loss to the extent that the amount of such potential loss can be reasonably estimated, in accordance with FASB ASC No. 450, Contingencies For such matters where an accrued liability has not been established and the Partnership believes a loss is both reasonably possible and estimable, as well as for matters where an accrued liability has been recorded but for which an exposure to loss in excess of the amount accrued is both reasonably possible and estimable, the current estimated aggregated range of additional possible loss is $0 to $9 as of June 29, 2018. This range of reasonably possible loss does not necessarily represent the Partnership's maximum loss exposure as the Partnership was not able to estimate a range of reasonably possible loss for all matters. Further, the matters underlying any disclosed estimated range will change from time to time, and actual results may vary significantly. While the outcome of these matters is inherently uncertain, based on information currently available, the Partnership believes that its established liabilities at June 29, 2018 are adequate and the liabilities arising from such matters will not have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Partnership. However, based on future developments and the potential unfavorable resolution of these matters, the outcome could be material to the Partnership’s future consolidated operating results for a particular period or periods. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 8 – SEGMENT INFORMATION The Partnership has determined it has two operating and reportable segments based upon geographic location, the U.S. and Canada. Canada segment information, as reported in the following table, is based upon the Consolidated Financial Statements of the Partnership's Canada operations, which primarily occur through a non-guaranteed subsidiary of the Partnership. The U.S. segment information is derived from the Consolidated Financial Statements less the Canada segment information as presented. Pre-variable income represents income before variable compensation expense and before allocations to partners. This is consistent with how management views the segments in order to assess performance. The following table shows financial information for the Partnership’s reportable segments: Three Months Ended Six Months Ended June 29, 2018 June 30, 2017 June 29, 2018 June 30, 2017 Net revenue: U.S. $ 2,026 $ 1,833 $ 4,010 $ 3,582 Canada 57 49 115 97 Total net revenue $ 2,083 $ 1,882 $ 4,125 $ 3,679 Pre-variable income: U.S. $ 487 $ 436 $ 953 $ 798 Canada 2 2 5 1 Total pre-variable income 489 438 958 799 Variable compensation: U.S. 243 209 473 369 Canada 6 4 12 8 Total variable compensation 249 213 485 377 Income (loss) before allocations to partners: U.S. 244 227 480 429 Canada (4 ) (2 ) (7 ) (7 ) Total income before allocations to partners $ 240 $ 225 $ 473 $ 422 The Partnership derived 14% |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 6 Months Ended |
Jun. 29, 2018 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | NOTE 9 – OFFSETTING ASSETS AND LIABILITIES The Partnership does not offset financial instruments in the Consolidated Statements of Financial Condition. However, the Partnership enters into master netting arrangements with counterparties for securities purchased under agreements to resell that are subject to net settlement in the event of default. These agreements create a right of offset for the amounts due to and due from the same counterparty in the event of default or bankruptcy. The following table shows the Partnership's securities purchased under agreements to resell as of: Gross amounts of Gross amounts offset in the Consolidated Statements Net amounts presented Consolidated Statements Gross amounts not offset in the Consolidated Financial Condition recognized assets Financial Condition Financial Condition Financial instruments Securities collateral (1) Net amount June 29, 2018 $ 837 — 837 — (837 ) $ — Dec 31, 2017 $ 1,164 — 1,164 — (1,164 ) $ — (1) Actual collateral was 102% of the related assets in U.S. agreements and 100% in Canada agreements for all periods presented. |
Cash Flow Information
Cash Flow Information | 6 Months Ended |
Jun. 29, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | NOTE 10 – CASH FLOW INFORMATION The following table shows supplemental cash flow information for: Six Months Ended June 29, 2018 June 30, 2017 Cash paid for interest $ 62 $ 38 Cash paid for taxes $ 7 $ 4 Non-cash activities: Issuance of general partnership interests through partnership loans in current period $ 168 $ 142 Repayment of partnership loans through distributions from partnership capital in current period $ 112 $ 93 The following table reconciles certain line items on the Consolidated Statements of Financial Condition to the cash, cash equivalents and restricted cash balance on the Consolidated Statements of Cash Flows as of: June 29, 2018 December 31, 2017 June 30, 2017 December 31, 2016 Cash and cash equivalents $ 1,015 $ 846 $ 903 $ 1,047 Cash and investments segregated under federal regulations 7,892 10,099 10,622 12,680 Less: Investments segregated under federal regulations 1,703 2,408 3,201 4,155 Total cash, cash equivalents and restricted cash $ 7,204 $ 8,537 $ 8,324 $ 9,572 Restricted cash represents cash segregated in special reserve bank accounts for the benefit of U.S. clients pursuant to the Customer Protection Rule 15c3-3 under the Exchange Act. |
Introduction and Basis of Pre16
Introduction and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 29, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Partnership's Business and Basis of Accounting | The accompanying Consolidated Financial Statements include the accounts of The Jones Financial Companies, L.L.L.P. and all wholly-owned subsidiaries (collectively, the “Partnership” or "JFC"). All material intercompany balances and transactions have been eliminated in consolidation. The financial position of the Partnership’s subsidiaries in Canada as of May 31, 2018 and November 30, 2017 are included in the Partnership’s Consolidated Statements of Financial Condition and the results for the three and six month periods ended May 31, 2018 and 2017 are included in the Partnership’s Consolidated Statements of Income and Consolidated Statements of Cash Flows because of the timing of the Partnership’s financial reporting process. The Partnership’s principal operating subsidiary, Edward D. Jones & Co., L.P. (“Edward Jones”), is a registered broker-dealer and investment adviser in the United States (“U.S.”), and one of Edward Jones’ subsidiaries is a registered broker-dealer in Canada. Through these entities, the Partnership primarily serves individual investors in the U.S. and Canada. Edward Jones is a retail brokerage business and primarily derives revenues from fees for providing investment advisory and other account services to its clients, fees for assets held by clients, the distribution of mutual fund shares, and commissions for the purchase or sale of securities and the purchase of insurance products. The Partnership conducts business throughout the U.S. and Canada with its clients, various brokers, dealers, clearing organizations, depositories and banks. Trust services are offered to Edward Jones’ U.S. clients through Edward Jones Trust Company (“Trust Co.”), a wholly-owned subsidiary of the Partnership. Olive Street Investment Advisers, LLC, a wholly-owned subsidiary of the Partnership, provides investment advisory services to the sub-advised mutual funds in the Bridge Builder® Trust. Passport Research, Ltd., a wholly-owned subsidiary of the Partnership, provides investment advisory services to the Edward Jones Money Market Fund. The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the U.S. (“GAAP”) which require the use of certain estimates by management in determining the Partnership’s assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The Partnership has evaluated subsequent events through the date these Consolidated Financial Statements were issued and identified no matters requiring disclosure in addition to the termination of the Partnership's 2014 Employee Limited Partnership Interest Purchase Plan (the "2014 Plan"). See Note 5. The interim financial information included herein is unaudited. However, in the opinion of management, such information includes all adjustments, consisting primarily of normal recurring accruals, which are necessary for a fair statement of the results of interim operations. There have been no material changes to the Partnership’s significant accounting policies or disclosures of recently issued accounting standards as described in Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 of the Partnership's Annual Report on Form 10-K (the "Annual Report"), except as disclosed in Note 2 herein. The results of operations for the three and six month periods ended June 29, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018. These unaudited Consolidated Financial Statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and notes thereto included in the Annual Report. |
Fair Value | The Partnership's valuation methodologies for financial assets and financial liabilities measured at fair value and the fair value hierarchy are described in Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 of the Partnership's Annual Report. There have been no material changes to the Partnership's valuation methodologies since December 31, 2017. |
Contingencies (ASC No.450) | The Partnership assesses its liabilities and contingencies utilizing available information. The Partnership accrues for potential losses for those matters where it is probable that the Partnership will incur a potential loss to the extent that the amount of such potential loss can be reasonably estimated, in accordance with FASB ASC No. 450, Contingencies |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 29, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Partnership's Disaggregated Revenue | The following table shows the Partnership's disaggregated revenue information. See Note 8 for segment information. Three Months Ended June 29, 2018 Three Months Ended June 30, 2017 U.S. Canada Total U.S. Canada Total Revenue Fee revenue: Asset-based fee revenue: Advisory programs fees $ 1,025 $ 14 $ 1,039 $ 787 $ 9 $ 796 Service fees 303 22 325 289 20 309 Other asset-based fees 137 — 137 112 — 112 Total asset-based fee revenue 1,465 36 1,501 1,188 29 1,217 Account and activity fee revenue: Shareholder accounting services fees 109 — 109 105 — 105 Other account and activity fee revenue 57 3 60 65 3 68 Total account and activity fee revenue 166 3 169 170 3 173 Total fee revenue 1,631 39 1,670 1,358 32 1,390 Trade revenue: Commissions 290 12 302 378 13 391 Principal transactions 37 1 38 37 1 38 Total trade revenue 327 13 340 415 14 429 Net interest and dividends revenue 54 2 56 43 1 44 Other revenue 14 3 17 17 2 19 Net revenue $ 2,026 $ 57 $ 2,083 $ 1,833 $ 49 $ 1,882 Six Months Ended June 29, 2018 Six Months Ended June 30, 2017 U.S. Canada Total U.S. Canada Total Revenue Fee revenue: Asset-based fee revenue: Advisory programs fees $ 2,007 $ 27 $ 2,034 $ 1,472 $ 18 $ 1,490 Service fees 608 44 652 587 38 625 Other asset-based fees 268 — 268 217 — 217 Total asset-based fee revenue 2,883 71 2,954 2,276 56 2,332 Account and activity fee revenue: Shareholder accounting services fees 218 — 218 210 — 210 Other account and activity fee revenue 116 7 123 129 6 135 Total account and activity fee revenue 334 7 341 339 6 345 Total fee revenue 3,217 78 3,295 2,615 62 2,677 Trade revenue: Commissions 608 26 634 779 27 806 Principal transactions 68 2 70 78 2 80 Total trade revenue 676 28 704 857 29 886 Net interest and dividends revenue 99 4 103 82 2 84 Other revenue 18 5 23 28 4 32 Net revenue $ 4,010 $ 115 $ 4,125 $ 3,582 $ 97 $ 3,679 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Partnership's Financial Assets at Fair Value | The following tables show the Partnership’s financial assets measured at fair value: Financial Assets at Fair Value as of June 29, 2018 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 276 $ — $ 276 Investments segregated under federal regulations: U.S. treasuries $ 1,497 $ — $ — $ 1,497 Certificates of deposit — 200 — 200 Total investments segregated under federal regulations $ 1,497 $ 200 $ — $ 1,697 Securities owned: Investment securities: Mutual funds (1) $ 256 $ — $ — $ 256 Government and agency obligations 3 — — 3 Equities 2 — — 2 Corporate bonds and notes — 1 — 1 Total investment securities $ 261 $ 1 $ — $ 262 Inventory securities: State and municipal obligations $ — $ 30 $ — $ 30 Mutual funds 16 — — 16 Equities 15 — — 15 Corporate bonds and notes — 4 — 4 Total inventory securities $ 31 $ 34 $ — $ 65 (1) The mutual funds balance consists primarily of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan. Financial Assets at Fair Value as of December 31, 2017 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 275 $ — $ 275 Investments segregated under federal regulations: U.S. treasuries $ 2,399 $ — $ — $ 2,399 Securities owned: Investment securities: Mutual funds (1) $ 252 $ — $ — $ 252 Government and agency obligations 3 — — 3 Equities 2 — — 2 Corporate bonds and notes — 1 — 1 Total investment securities $ 257 $ 1 $ — $ 258 Inventory securities: State and municipal obligations $ — $ 24 $ — $ 24 Equities 16 — — 16 Mutual funds 4 — — 4 Certificates of deposit — 4 — 4 Corporate bonds and notes — 2 — 2 Total inventory securities $ 20 $ 30 $ — $ 50 |
Partnership Capital (Tables)
Partnership Capital (Tables) | 6 Months Ended |
Jun. 29, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Roll Forward of Outstanding Partnership Loans | The following table shows the roll forward of outstanding Partnership loans for: Six Months Ended June 29, June 30, 2018 2017 Partnership loans outstanding at beginning of period $ 297 $ 266 Partnership loans issued during the period 168 142 Repayment of Partnership loans during the period (112 ) (93 ) Total Partnership loans outstanding $ 353 $ 315 |
Net Capital Requirements (Table
Net Capital Requirements (Tables) | 6 Months Ended |
Jun. 29, 2018 | |
Brokers And Dealers [Abstract] | |
Partnership's Net Capital Figures for U.S. and Canada Broker-Dealer Subsidiaries | The following table shows the Partnership’s net capital figures for its U.S. and Canada broker-dealer subsidiaries as of: June 29, December 31, 2018 2017 U.S.: Net capital $ 1,096 $ 1,107 Net capital in excess of the minimum required $ 1,036 $ 1,049 Net capital as a percentage of aggregate debit items 36.7 % 38.1 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 20.0 % 21.6 % Canada: Regulatory risk-adjusted capital $ 42 $ 50 Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC $ 37 $ 42 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 29, 2018 | |
Segment Reporting [Abstract] | |
Financial Information for Partnership's Reportable Segments | The following table shows financial information for the Partnership’s reportable segments: Three Months Ended Six Months Ended June 29, 2018 June 30, 2017 June 29, 2018 June 30, 2017 Net revenue: U.S. $ 2,026 $ 1,833 $ 4,010 $ 3,582 Canada 57 49 115 97 Total net revenue $ 2,083 $ 1,882 $ 4,125 $ 3,679 Pre-variable income: U.S. $ 487 $ 436 $ 953 $ 798 Canada 2 2 5 1 Total pre-variable income 489 438 958 799 Variable compensation: U.S. 243 209 473 369 Canada 6 4 12 8 Total variable compensation 249 213 485 377 Income (loss) before allocations to partners: U.S. 244 227 480 429 Canada (4 ) (2 ) (7 ) (7 ) Total income before allocations to partners $ 240 $ 225 $ 473 $ 422 |
Offsetting Assets and Liabili22
Offsetting Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 29, 2018 | |
Offsetting [Abstract] | |
Schedule of Partnership's Securities Purchased Under Agreement to Resell | The following table shows the Partnership's securities purchased under agreements to resell as of: Gross amounts of Gross amounts offset in the Consolidated Statements Net amounts presented Consolidated Statements Gross amounts not offset in the Consolidated Financial Condition recognized assets Financial Condition Financial Condition Financial instruments Securities collateral (1) Net amount June 29, 2018 $ 837 — 837 — (837 ) $ — Dec 31, 2017 $ 1,164 — 1,164 — (1,164 ) $ — (1) Actual collateral was 102% of the related assets in U.S. agreements and 100% in Canada agreements for all periods presented. |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 6 Months Ended |
Jun. 29, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following table shows supplemental cash flow information for: Six Months Ended June 29, 2018 June 30, 2017 Cash paid for interest $ 62 $ 38 Cash paid for taxes $ 7 $ 4 Non-cash activities: Issuance of general partnership interests through partnership loans in current period $ 168 $ 142 Repayment of partnership loans through distributions from partnership capital in current period $ 112 $ 93 |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash Balance | The following table reconciles certain line items on the Consolidated Statements of Financial Condition to the cash, cash equivalents and restricted cash balance on the Consolidated Statements of Cash Flows as of: June 29, 2018 December 31, 2017 June 30, 2017 December 31, 2016 Cash and cash equivalents $ 1,015 $ 846 $ 903 $ 1,047 Cash and investments segregated under federal regulations 7,892 10,099 10,622 12,680 Less: Investments segregated under federal regulations 1,703 2,408 3,201 4,155 Total cash, cash equivalents and restricted cash $ 7,204 $ 8,537 $ 8,324 $ 9,572 |
Recently Adopted Accounting S24
Recently Adopted Accounting Standards - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2018 | Jun. 29, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
ASU 2014-09 [Member] | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Impact to partnership capital | $ 0 | |||||
ASU 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Revenue | $ 0 | $ 0 | ||||
Impact to consolidated statements of financial condition | 0 | 0 | ||||
ASU 2016-18 [Member] | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Restricted cash | $ 6,189,000,000 | $ 6,189,000,000 | $ 7,691,000,000 | $ 7,421,000,000 | $ 8,525,000,000 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Receivable from clients balance | $ 3,417 | $ 3,300 |
Receivable from mutual funds, insurance companies and other balance | 550 | 540 |
Revenue from Contracts with Customers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Receivable from clients balance | 386 | 346 |
Receivable from mutual funds, insurance companies and other balance | $ 273 | $ 279 |
Account and Activity Fee Revenue [Member] | Other Account and Activity Fee Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue recognized period | one-year |
Revenue - Schedule of Partnersh
Revenue - Schedule of Partnership's Disaggregated Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 29, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Net interest and dividends revenue | $ 56 | $ 44 | $ 103 | $ 84 |
Other revenue | 17 | 19 | 23 | 32 |
Net revenue | 2,083 | 1,882 | 4,125 | 3,679 |
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net interest and dividends revenue | 54 | 43 | 99 | 82 |
Other revenue | 14 | 17 | 18 | 28 |
Net revenue | 2,026 | 1,833 | 4,010 | 3,582 |
Canada [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net interest and dividends revenue | 2 | 1 | 4 | 2 |
Other revenue | 3 | 2 | 5 | 4 |
Net revenue | 57 | 49 | 115 | 97 |
Asset-based Fee Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 1,501 | 1,217 | 2,954 | 2,332 |
Asset-based Fee Revenue [Member] | Advisory Programs Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 1,039 | 796 | 2,034 | 1,490 |
Asset-based Fee Revenue [Member] | Service Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 325 | 309 | 652 | 625 |
Asset-based Fee Revenue [Member] | Other Asset-based Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 137 | 112 | 268 | 217 |
Asset-based Fee Revenue [Member] | United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 1,465 | 1,188 | 2,883 | 2,276 |
Asset-based Fee Revenue [Member] | United States [Member] | Advisory Programs Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 1,025 | 787 | 2,007 | 1,472 |
Asset-based Fee Revenue [Member] | United States [Member] | Service Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 303 | 289 | 608 | 587 |
Asset-based Fee Revenue [Member] | United States [Member] | Other Asset-based Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 137 | 112 | 268 | 217 |
Asset-based Fee Revenue [Member] | Canada [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 36 | 29 | 71 | 56 |
Asset-based Fee Revenue [Member] | Canada [Member] | Advisory Programs Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 14 | 9 | 27 | 18 |
Asset-based Fee Revenue [Member] | Canada [Member] | Service Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 22 | 20 | 44 | 38 |
Account and Activity Fee Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 169 | 173 | 341 | 345 |
Account and Activity Fee Revenue [Member] | Shareholder Accounting Services Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 109 | 105 | 218 | 210 |
Account and Activity Fee Revenue [Member] | Other Account and Activity Fee Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 60 | 68 | 123 | 135 |
Account and Activity Fee Revenue [Member] | United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 166 | 170 | 334 | 339 |
Account and Activity Fee Revenue [Member] | United States [Member] | Shareholder Accounting Services Fees [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 109 | 105 | 218 | 210 |
Account and Activity Fee Revenue [Member] | United States [Member] | Other Account and Activity Fee Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 57 | 65 | 116 | 129 |
Account and Activity Fee Revenue [Member] | Canada [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 3 | 3 | 7 | 6 |
Account and Activity Fee Revenue [Member] | Canada [Member] | Other Account and Activity Fee Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 3 | 3 | 7 | 6 |
Total Fee Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 1,670 | 1,390 | 3,295 | 2,677 |
Total Fee Revenue [Member] | United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 1,631 | 1,358 | 3,217 | 2,615 |
Total Fee Revenue [Member] | Canada [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 39 | 32 | 78 | 62 |
Trade Revenue [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 340 | 429 | 704 | 886 |
Trade Revenue [Member] | Commissions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 302 | 391 | 634 | 806 |
Trade Revenue [Member] | Principal Transactions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 38 | 38 | 70 | 80 |
Trade Revenue [Member] | United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 327 | 415 | 676 | 857 |
Trade Revenue [Member] | United States [Member] | Commissions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 290 | 378 | 608 | 779 |
Trade Revenue [Member] | United States [Member] | Principal Transactions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 37 | 37 | 68 | 78 |
Trade Revenue [Member] | Canada [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 13 | 14 | 28 | 29 |
Trade Revenue [Member] | Canada [Member] | Commissions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | 12 | 13 | 26 | 27 |
Trade Revenue [Member] | Canada [Member] | Principal Transactions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenue | $ 1 | $ 1 | $ 2 | $ 2 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 29, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair value of level III, assets | $ 0 | $ 0 |
Fair value of level III, liabilities | 0 | 0 |
Transfers between levels I, II and III | $ 0 | $ 0 |
Fair Value - Partnership's Fina
Fair Value - Partnership's Financial Assets at Fair Value (Detail) - USD ($) $ in Millions | Jun. 29, 2018 | Dec. 31, 2017 |
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | $ 1,697 | |
Investment securities: | ||
Total investment securities | 262 | $ 258 |
Inventory securities: | ||
Total inventory securities | 65 | 50 |
Equities [Member] | ||
Investment securities: | ||
Total investment securities | 2 | 2 |
Inventory securities: | ||
Total inventory securities | 15 | 16 |
Corporate Bonds and Notes [Member] | ||
Investment securities: | ||
Total investment securities | 1 | 1 |
Inventory securities: | ||
Total inventory securities | 4 | 2 |
Government and Agency Obligations [Member] | ||
Investment securities: | ||
Total investment securities | 3 | 3 |
U.S. Treasuries [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 1,497 | 2,399 |
Mutual Funds [Member] | ||
Investment securities: | ||
Total investment securities | 256 | 252 |
Inventory securities: | ||
Total inventory securities | 16 | 4 |
State and Municipal Obligations [Member] | ||
Inventory securities: | ||
Total inventory securities | 30 | 24 |
Certificates of Deposit [Member] | ||
Cash equivalents: | ||
Cash and cash equivalents | 276 | 275 |
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 200 | |
Inventory securities: | ||
Total inventory securities | 4 | |
Level I [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 1,497 | |
Investment securities: | ||
Total investment securities | 261 | 257 |
Inventory securities: | ||
Total inventory securities | 31 | 20 |
Level I [Member] | Equities [Member] | ||
Investment securities: | ||
Total investment securities | 2 | 2 |
Inventory securities: | ||
Total inventory securities | 15 | 16 |
Level I [Member] | Government and Agency Obligations [Member] | ||
Investment securities: | ||
Total investment securities | 3 | 3 |
Level I [Member] | U.S. Treasuries [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 1,497 | 2,399 |
Level I [Member] | Mutual Funds [Member] | ||
Investment securities: | ||
Total investment securities | 256 | 252 |
Inventory securities: | ||
Total inventory securities | 16 | 4 |
Level II [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 200 | |
Investment securities: | ||
Total investment securities | 1 | 1 |
Inventory securities: | ||
Total inventory securities | 34 | 30 |
Level II [Member] | Corporate Bonds and Notes [Member] | ||
Investment securities: | ||
Total investment securities | 1 | 1 |
Inventory securities: | ||
Total inventory securities | 4 | 2 |
Level II [Member] | State and Municipal Obligations [Member] | ||
Inventory securities: | ||
Total inventory securities | 30 | 24 |
Level II [Member] | Certificates of Deposit [Member] | ||
Cash equivalents: | ||
Cash and cash equivalents | 276 | 275 |
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | $ 200 | |
Inventory securities: | ||
Total inventory securities | $ 4 |
Partnership Capital - Additiona
Partnership Capital - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 29, 2018 | Jun. 30, 2017 | Jan. 12, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 17, 2014 | |
Partners Capital Account [Line Items] | ||||||||
Period of loans made by Partnership to general partners | 1 year | |||||||
Outstanding amount of partner loans financed through the Partnership | $ 353 | $ 315 | $ 353 | $ 315 | $ 297 | $ 266 | ||
Interest income from outstanding amount of general partner loan | $ 4 | $ 3 | $ 8 | $ 6 | ||||
Limited partnership's minimum annual payment rate | 7.50% | 7.50% | 7.50% | 7.50% | ||||
Limited partnership's minimum return, value | $ 16 | $ 17 | $ 33 | $ 34 | ||||
2014 Limited Partnership Offering [Member] | ||||||||
Partners Capital Account [Line Items] | ||||||||
Limited partnership amount registered | $ 350 | |||||||
Limited partnership interests issued | $ 298 | $ 298 | ||||||
2018 Limited Partnership Offering [Member] | ||||||||
Partners Capital Account [Line Items] | ||||||||
Limited partnership amount registered | $ 450 |
Partnership Capital - Roll Forw
Partnership Capital - Roll Forward of Outstanding Partnership Loans (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Partners Capital Notes [Abstract] | ||
Partnership loans outstanding at beginning of period | $ 297 | $ 266 |
Partnership loans issued during the period | 168 | 142 |
Repayment of Partnership loans during the period | (112) | (93) |
Partnership loans outstanding at end of period | $ 353 | $ 315 |
Net Capital Requirements - Addi
Net Capital Requirements - Additional Information (Detail) | 6 Months Ended |
Jun. 29, 2018USD ($) | |
Net Capital Requirements [Abstract] | |
Percentage of aggregate debit items arising from customer transactions to maintain minimum net capital requirements | 2.00% |
Minimum net capital requirements | $ 250,000 |
Net Capital Requirements - Part
Net Capital Requirements - Partnership's Net Capital Figures for U.S. and Canada Broker-Dealer Subsidiaries (Detail) - USD ($) $ in Millions | Jun. 29, 2018 | Dec. 31, 2017 |
United States [Member] | ||
Regulatory Capital Requirements | ||
Net capital | $ 1,096 | $ 1,107 |
Net capital in excess of the minimum required | $ 1,036 | $ 1,049 |
Net capital as a percentage of aggregate debit items | 36.70% | 38.10% |
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items | 20.00% | 21.60% |
Canada [Member] | ||
Regulatory Capital Requirements | ||
Regulatory risk-adjusted capital | $ 42 | $ 50 |
Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC | $ 37 | $ 42 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | Jun. 29, 2018USD ($) |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Current estimated possible loss | $ 0 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Current estimated possible loss | $ 9 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 29, 2018 | Jun. 30, 2017 | |
Segment Reporting [Abstract] | ||||
Number of operating segments | 2 | |||
Number of reportable segments | 2 | |||
Partnership's total revenue derived from one mutual fund complex | 14.00% | 17.00% | 14.00% | 17.00% |
Segment Information - Financial
Segment Information - Financial Information for Partnership's Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2018 | Jun. 30, 2017 | Jun. 29, 2018 | Jun. 30, 2017 | |
Net revenue: | ||||
Total net revenue | $ 2,083 | $ 1,882 | $ 4,125 | $ 3,679 |
Pre-variable income: | ||||
Total pre-variable income | 489 | 438 | 958 | 799 |
Variable compensation: | ||||
Total variable compensation | 249 | 213 | 485 | 377 |
Income (loss) before allocations to partners: | ||||
Total income before allocations to partners | 240 | 225 | 473 | 422 |
United States [Member] | ||||
Net revenue: | ||||
Total net revenue | 2,026 | 1,833 | 4,010 | 3,582 |
Pre-variable income: | ||||
Total pre-variable income | 487 | 436 | 953 | 798 |
Variable compensation: | ||||
Total variable compensation | 243 | 209 | 473 | 369 |
Income (loss) before allocations to partners: | ||||
Total income before allocations to partners | 244 | 227 | 480 | 429 |
Canada [Member] | ||||
Net revenue: | ||||
Total net revenue | 57 | 49 | 115 | 97 |
Pre-variable income: | ||||
Total pre-variable income | 2 | 2 | 5 | 1 |
Variable compensation: | ||||
Total variable compensation | 6 | 4 | 12 | 8 |
Income (loss) before allocations to partners: | ||||
Total income before allocations to partners | $ (4) | $ (2) | $ (7) | $ (7) |
Offsetting Assets and Liabili36
Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Detail) - USD ($) $ in Millions | Jun. 29, 2018 | Dec. 31, 2017 |
Offsetting Securities Purchased Under Agreements To Resell [Abstract] | ||
Securities purchased under agreements to resell, Gross amounts of recognized assets | $ 837 | $ 1,164 |
Securities purchased under agreements to resell, Gross amounts offset in the Consolidated Statements of Financial Condition | 0 | 0 |
Securities purchased under agreements to resell, Net amounts presented in the Consolidated Statements of Financial Condition | 837 | 1,164 |
Securities purchased under agreements to resell, Gross amounts not offset in the Consolidated Statements of Financial Condition, Financial instruments | 0 | 0 |
Securities purchased under agreements to resell, Gross amounts not offset in the Consolidated Statements of Financial Condition, Securities collateral | (837) | (1,164) |
Securities purchased under agreements to resell, Net amount | $ 0 | $ 0 |
Offsetting Assets and Liabili37
Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Parenthetical) (Detail) | Jun. 29, 2018 | Dec. 31, 2017 |
United States [Member] | ||
Offsetting Assets And Liabilities [Line Items] | ||
Actual collateral of related assets | 102.00% | 102.00% |
Canada [Member] | ||
Offsetting Assets And Liabilities [Line Items] | ||
Actual collateral of related assets | 100.00% | 100.00% |
Cash Flow Information - Schedul
Cash Flow Information - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2018 | Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 62 | $ 38 |
Cash paid for taxes | 7 | 4 |
Non-cash activities: | ||
Issuance of general partnership interests through partnership loans in current period | 168 | 142 |
Repayment of partnership loans through distributions from partnership capital in current period | $ 112 | $ 93 |
Cash Flow Information - Sched39
Cash Flow Information - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash Balance (Detail) - USD ($) $ in Millions | Jun. 29, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 1,015 | $ 846 | $ 903 | $ 1,047 |
Cash and investments segregated under federal regulations | 7,892 | 10,099 | 10,622 | 12,680 |
Less: Investments segregated under federal regulations | 1,703 | 2,408 | 3,201 | 4,155 |
Total cash, cash equivalents and restricted cash | $ 7,204 | $ 8,537 | $ 8,324 | $ 9,572 |