Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 26, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | JONES FINANCIAL COMPANIES LLLP | ||
Entity Central Index Key | 0000815917 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 0-16633 | ||
Entity Tax Identification Number | 43-1450818 | ||
Entity Address, Address Line One | 12555 Manchester Road | ||
Entity Address, City or Town | Des Peres | ||
Entity Address, State or Province | MO | ||
Entity Address, Postal Zip Code | 63131 | ||
City Area Code | 314 | ||
Local Phone Number | 515-2000 | ||
Entity Incorporation, State or Country Code | MO | ||
Entity Limited Partnership Interests Outstanding | 1,237,109 | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 0 | ||
ICFR Auditor Attestation Flag | true | ||
Document Annual Report | true | ||
Document Transition Report | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS: | ||
Cash and cash equivalents | $ 1,125 | $ 1,014 |
Cash and investments segregated under federal regulations | 17,918 | 10,387 |
Securities purchased under agreements to resell | 1,714 | 1,693 |
Receivable from: | ||
Clients | 3,504 | 3,328 |
Mutual funds, insurance companies and other | 818 | 661 |
Brokers, dealers and clearing organizations | 223 | 204 |
Securities owned, at fair value: | ||
Investment securities | 1,302 | 332 |
Inventory securities | 32 | 50 |
Lease right-of-use assets | 915 | 876 |
Equipment, property and improvements, at cost, net of accumulated depreciation and amortization | 620 | 616 |
Other assets | 149 | 156 |
TOTAL ASSETS | 28,320 | 19,317 |
Payable to: | ||
Clients | 21,241 | 12,891 |
Brokers, dealers and clearing organizations | 96 | 66 |
Accrued compensation and employee benefits | 2,104 | 1,747 |
Lease liabilities | 938 | 898 |
Accounts payable, accrued expenses and other | 352 | 351 |
Total liabilities before partnership capital | 24,731 | 15,953 |
Commitments and contingencies (Notes 14 and 15) | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 3,075 | 2,957 |
Reserve for anticipated withdrawals | 514 | 407 |
Total partnership capital subject to mandatory redemption | 3,589 | 3,364 |
TOTAL LIABILITIES | 28,320 | 19,317 |
Limited Partnership Capital [Member] | ||
Payable to: | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 1,237 | 1,249 |
Subordinated Limited Partnership Capital [Member] | ||
Payable to: | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 538 | 523 |
General Partnership Capital [Member] | ||
Payable to: | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | $ 1,300 | $ 1,185 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | |||
Revenue | $ 9,894 | $ 9,033 | $ 8,215 |
Interest and dividends | 207 | 416 | 362 |
Other revenue | 64 | 77 | 17 |
Total revenue | 10,165 | 9,526 | 8,594 |
Interest expense | 102 | 157 | 125 |
Net revenue | 10,063 | 9,369 | 8,469 |
Operating expenses: | |||
Compensation and benefits | 7,186 | 6,538 | 5,993 |
Occupancy and equipment | 522 | 499 | 448 |
Communications and data processing | 413 | 392 | 338 |
Fund sub-adviser fees | 187 | 159 | 132 |
Professional and consulting fees | 109 | 113 | 87 |
Advertising | 67 | 96 | 92 |
Postage and shipping | 50 | 56 | 55 |
Other operating expenses | 244 | 424 | 334 |
Total operating expenses | 8,778 | 8,277 | 7,479 |
Income before allocations to partners | 1,285 | 1,092 | 990 |
Allocations to partners: | |||
Limited partners | 189 | 166 | 114 |
Subordinated limited partners | 149 | 130 | 127 |
General partners | 947 | 796 | 749 |
Net income | $ 0 | $ 0 | $ 0 |
Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding | $ 147.81 | $ 132.22 | $ 128.13 |
Weighted average $1,000 equivalent limited partnership units outstanding | 1,242,781 | 1,256,459 | 889,502 |
Asset-based Fee Revenue [Member] | |||
Revenue: | |||
Revenue | $ 7,515 | $ 6,778 | $ 6,075 |
Account and Activity Fee Revenue [Member] | |||
Revenue: | |||
Revenue | 660 | 674 | 678 |
Total Fee Revenue [Member] | |||
Revenue: | |||
Revenue | 8,175 | 7,452 | 6,753 |
Trade Revenue [Member] | |||
Revenue: | |||
Revenue | $ 1,719 | $ 1,581 | $ 1,462 |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 31, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||||||||||
Limited partnership interest value | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partnership Capital Subject to Mandatory Redemption - USD ($) $ in Millions | Total | Limited Partnership Capital [Member] | Subordinated Limited Partnership Capital [Member] | General Partnership Capital [Member] |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2017 | $ 2,795 | $ 956 | $ 499 | $ 1,340 |
Reserve for anticipated withdrawals at Dec. 31, 2017 | (290) | (66) | (36) | (188) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2017 | 2,505 | 890 | 463 | 1,152 |
Partnership loans outstanding at beginning of year at Dec. 31, 2017 | 297 | 0 | 3 | 294 |
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2017 | 2,802 | 890 | 466 | 1,446 |
Issuance of partnership interests | 230 | 5 | 53 | 172 |
Redemption of partnership interests | (296) | (11) | (11) | (274) |
Income allocated to partners | 990 | 114 | 127 | 749 |
Distributions | (539) | (42) | (86) | (411) |
Total partnership capital, including capital financed with partnership loans at Dec. 31, 2018 | 3,187 | 956 | 549 | 1,682 |
Partnership loans outstanding, reduction to arrive at Partnership Capital at Dec. 31, 2018 | (332) | 0 | (4) | (328) |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2018 | 2,855 | 956 | 545 | 1,354 |
Reserve for anticipated withdrawals at Dec. 31, 2018 | (348) | (72) | (41) | (235) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2018 | 2,507 | 884 | 504 | 1,119 |
Partnership loans outstanding at end of year at Dec. 31, 2018 | 332 | 0 | 4 | 328 |
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2018 | 2,839 | 884 | 508 | 1,447 |
Issuance of partnership interests | 596 | 380 | 53 | 163 |
Redemption of partnership interests | (228) | (15) | (34) | (179) |
Income allocated to partners | 1,092 | 166 | 130 | 796 |
Distributions | (575) | (56) | (87) | (432) |
Total partnership capital, including capital financed with partnership loans at Dec. 31, 2019 | 3,724 | 1,359 | 570 | 1,795 |
Partnership loans outstanding, reduction to arrive at Partnership Capital at Dec. 31, 2019 | (360) | 0 | (4) | (356) |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2019 | 3,364 | 1,359 | 566 | 1,439 |
Reserve for anticipated withdrawals at Dec. 31, 2019 | (407) | (110) | (43) | (254) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2019 | 2,957 | 1,249 | 523 | 1,185 |
Partnership loans outstanding at end of year at Dec. 31, 2019 | 360 | 0 | 4 | 356 |
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2019 | 3,317 | 1,249 | 527 | 1,541 |
Issuance of partnership interests | 213 | 1 | 49 | 163 |
Redemption of partnership interests | (244) | (13) | (37) | (194) |
Income allocated to partners | 1,285 | 189 | 149 | 947 |
Distributions | (641) | (64) | (93) | (484) |
Total partnership capital, including capital financed with partnership loans at Dec. 31, 2020 | 3,930 | 1,362 | 595 | 1,973 |
Partnership loans outstanding, reduction to arrive at Partnership Capital at Dec. 31, 2020 | (341) | 0 | (1) | (340) |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2020 | 3,589 | 1,362 | 594 | 1,633 |
Reserve for anticipated withdrawals at Dec. 31, 2020 | (514) | (125) | (56) | (333) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2020 | 3,075 | $ 1,237 | $ 538 | $ 1,300 |
Partnership loans outstanding at end of year at Dec. 31, 2020 | $ 341 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 0 | $ 0 | $ 0 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Income before allocations to partners | 1,285 | 1,092 | 990 |
Depreciation and amortization | 125 | 115 | 94 |
Changes in assets and liabilities: | |||
Investments segregated under federal regulations | (8,774) | (2,392) | 1,406 |
Securities purchased under agreements to resell | (21) | (782) | 253 |
Net payable to clients | 8,174 | 1,805 | (1,752) |
Net receivable from brokers, dealers and clearing organizations | 11 | 33 | 9 |
Receivable from mutual funds, insurance companies and other | (157) | (106) | (15) |
Securities owned | (952) | (89) | 15 |
Lease right-of-use assets | (39) | (71) | 0 |
Other assets | 7 | (14) | (14) |
Lease liabilities | 40 | 93 | 0 |
Accrued compensation and employee benefits | 357 | 282 | 126 |
Accounts payable, accrued expenses and other | (31) | 47 | 26 |
Net cash provided by operating activities | 25 | 13 | 1,138 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of equipment, property and improvements | (129) | (176) | (105) |
Cash used in investing activities | (129) | (176) | (105) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Issuance of partnership interests | 50 | 432 | 60 |
Redemption of partnership interests | (214) | (216) | (199) |
Distributions from partnership capital | (864) | (783) | (694) |
Net cash used in financing activities | (1,028) | (567) | (833) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,132) | (730) | 200 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: | |||
Beginning of year | 8,007 | 8,737 | 8,537 |
End of year | $ 6,875 | $ 8,007 | $ 8,737 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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"). The financial position of the Partnership’s subsidiaries in Canada as of November 30, 2020 and 2019 are included in the Partnership's Consolidated Statements of Financial Condition and the results for the twelve month periods ended November 30, 2020, 2019 and 2018 are included in the Partnership’s Consolidated Statements of Income, Consolidated Statements of Changes in Partnership Capital Subject to Mandatory Redemption 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. For financial information related to the Partnership’s two operating segments for the years ended December 31, 2020, 2019, and 2018, see Note 16 to the Consolidated Financial Statements. 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 eight sub-advised mutual funds comprising the Bridge Builder® Trust ("BB Trust"). Passport Research, Ltd., a wholly-owned subsidiary of the Partnership, provides investment advisory services to the sub-advised Edward Jones Money Market Fund (the "Money Market Fund"). The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“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 coronavirus (COVID-19) pandemic and the global governmental response, vaccine distribution, and related impact on society and the economy have resulted in significant uncertainty in the global economy and volatility in financial markets. Given the significant global health, market, employment and economic impacts of COVID-19 and the uncertainty of its duration, the Partnership cannot reliably predict the ultimate impact of COVID-19 on financial markets or its financial results. The financial impacts of COVID-19 were included in the Partnership's estimates for assets, liabilities, revenues and expenses as of December 31, 2020. The Partnership evaluated subsequent events for recognition or disclosure through March 12, 2021, which was the date these Consolidated Financial Statements were available to be issued, and identified no matters requiring disclosure. Partnership Agreement. Under the terms of the Partnership’s Twentieth Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated August 6, 2018, (the “Partnership Agreement”), a partner’s capital is required to be redeemed by the Partnership in the event of the partner’s death or withdrawal from the Partnership, subject to compliance with ongoing regulatory capital requirements. In the event of a partner’s death, the Partnership generally redeems the partner’s capital within six months. The Partnership has restrictions in place which govern the withdrawal of capital. Under the terms of the Partnership Agreement, limited partners requesting withdrawal from the Partnership are to be repaid their capital in three equal annual installments beginning no earlier than 90 days after their withdrawal notice is received by the Managing Partner (as defined in the Partnership Agreement). The capital of general partners requesting withdrawal from the Partnership is converted to subordinated limited partnership capital or, at the discretion of the Managing Partner, redeemed by the Partnership. Subordinated limited partners requesting withdrawal are repaid their capital in six equal annual installments beginning no earlier than 90 days after their request for withdrawal of contributed capital is received by the Managing Partner. The Partnership’s Managing Partner has discretion to waive or modify these withdrawal restrictions and to accelerate the return of capital. All current and future Partnership capital is subordinate to all current and future liabilities of the Partnership. The Partnership Agreement includes additional terms. 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 as well as contractual rates 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's contracts with mutual fund and insurance companies, along with the prospectuses for mutual funds, allow the Partnership to sell those companies' 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's contracts with mutual fund and insurance companies, along with the prospectuses for mutual funds, allow the Partnership to sell those companies' products to clients and earn certain commissions, which for mutual funds, are aligned with the terms of the mutual fund prospectuses. 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. Foreign Exchange. Assets and liabilities denominated in a foreign currency are translated at the exchange rate at the end of the period. Revenue and expenses denominated in a foreign currency are translated using the average exchange rate for each period. Foreign exchange gains and losses are included in other revenue on the Consolidated Statements of Income. Fair Value. Substantially all of the Partnership’s financial assets and financial liabilities covered under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 820, Fair Value Measurement and Disclosure (“ASC 820”), are carried at fair value or at contracted amounts which approximate fair value given the short time to maturity. Fair value of a financial instrument is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, also known as the “exit price.” Financial assets are marked to bid prices and financial liabilities are marked to offer prices. The Partnership’s financial assets and financial liabilities recorded at fair value in the Consolidated Statements of Financial Condition are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820, with the related amount of subjectivity associated with the inputs to value these assets and liabilities at fair value for each level, are as follows: Level I – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets categorized as Level I generally are U.S. treasuries, investments in publicly traded mutual funds with quoted market prices, equities listed in active markets, and government and agency obligations. Level II – Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with related market data at the measurement date and for the duration of the instrument’s anticipated life. The Partnership uses the market approach valuation technique which incorporates third-party pricing services and other relevant observable information (such as market interest rates, yield curves, prepayment risk and credit risk generated by market transactions involving identical or comparable assets or liabilities) in valuing these types of investments. When third-party pricing services are used, the methods and assumptions used are reviewed by the Partnership. The types of assets categorized as Level II generally are certificates of deposit, state and municipal obligations and corporate bonds and notes. Level III – Inputs are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the inputs to the model. The Partnership did not have any assets or liabilities categorized as Level III during the years ended December 31, 2020 and 2019. Cash and Cash Equivalents. The Partnership considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and Investments Segregated under Federal Regulations. Cash, investments and the related interest receivable are segregated in special reserve bank accounts for the benefit of U.S. clients pursuant to the Customer Protection Rule 15c3-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Collateral. The Partnership reports as assets collateral it has pledged in secured borrowings and other arrangements when the secured party cannot sell or repledge the assets or the Partnership can substitute collateral or otherwise redeem it on short notice. The Partnership does not report collateral it has received in secured lending and other arrangements as an asset when the debtor has the right to redeem or substitute the collateral on short notice. Securities Owned . Securities owned, primarily consisting of investment securities, are recorded on a trade-date basis at fair value which is determined by using quoted market or dealer prices. The Partnership's investment securities are primarily held to maintain firm liquidity. The unrealized gains and losses for investment securities are recorded in other revenue in the Consolidated Statement of Income. The Partnership records the related unrealized gains and losses for inventory securities in trade revenue in the Consolidated Statement of Income. Equipment, Property and Improvements. Equipment, including furniture and fixtures, is recorded at cost and depreciated using straight-line and accelerated methods over estimated useful lives of three to ten years. Buildings are depreciated using the straight-line method over their useful lives, which are estimated at thirty years. Leasehold improvements are amortized based on the term of the lease or the economic useful life of the improvement, whichever is less. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation or amortization is removed from the respective category and any related gain or loss is recorded as other revenue in the Consolidated Statements of Income. The cost of maintenance and repairs is charged against income as incurred, whereas significant enhancements are capitalized and depreciated once the asset is placed into service. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be fully recoverable. If impairment is indicated, the asset value is written down to its fair value. Non-qualified Deferred Compensation Plan. The Partnership has a non-qualified deferred compensation plan for certain financial advisors. The Partnership has recorded a liability of $268 for the future payments due to financial advisors participating in the plan. As the future amounts due to financial advisors change in accordance with plan requirements, the Partnership records the change in future amounts owed to financial advisors as an increase or decrease in accrued compensation in the Consolidated Statements of Financial Condition and compensation and benefits expense in the Consolidated Statements of Income. The Partnership has chosen to economically hedge this future liability by purchasing securities in an amount similar to the future liability expected to be due in accordance with the plan. These securities are included in investment securities in the Consolidated Statements of Financial Condition and the unrealized gains and losses are recorded in other revenue in the Consolidated Statements of Income. Each period, the net impact of the change in future amounts owed to financial advisors in the plan and the change in value of the investment securities are approximately the same, resulting in minimal net impact to the Consolidated Financial Statements. Retirement Transition Plans. The Partnership, in certain circumstances, offers individually tailored retirement transition plans to retiring financial advisors. Each retirement transition plan compensates a retiring financial advisor for successfully providing client transition services in accordance with a retirement and transition agreement. Generally, the retirement and transition agreement is for five years. During the first two years the retiring financial advisor remains an employee and provides client transition services, which include, but are not limited to, the successful transition of client accounts and assets to successor financial advisors, as well as mentoring and providing training and support to successor financial advisors. The financial advisor retires at the end of year two and is subject to a non-compete agreement for three years. Most retiring financial advisors participating in a retirement transition plan are paid ratably over four years. Compensation expense is generally recognized ratably over the two-year transition period which aligns with the service period of most agreements, with compensation expense related to some plans recognized over one year depending on the size and complexity of the transition plan. As of December 31, 2020, $109 was accrued for future payments to financial advisors who have already started a plan, approximately $52 of which is expected to be paid in 2021. As of December 31, 2019, $102 was accrued. Successor financial advisors receive reduced compensation on transitioned assets for up to four years. Lease Accounting. The Partnership leases branch office space under numerous operating leases from non-affiliates and financial advisors. Branch offices are generally leased for terms of five years and generally contain a renewal option. Renewal options are not included in the lease term if it is not reasonably certain the Partnership will exercise the renewal option. The Partnership also leases home office spaces and land from non-affiliates with terms ranging from 12 to 30 years. The Partnership recognizes lease liabilities for future lease payments and lease right-of-use assets for the right of use of an underlying asset within a contract. Current leases are all classified as operating leases. Lease right-of-use assets and lease liabilities are recognized on the Consolidated Statements of Financial Condition at commencement date and calculated as the present value of the sum of the remaining fixed lease payments over the lease term. Throughout the lease term, the lease right-of-use asset includes the impact from the timing of lease payments and straight-line rent expense. The Partnership used its incremental borrowing rate based on information available at lease commencement as leases do not contain a readily determinable implicit rate. A single lease cost, or rent expense, is recognized on a straight-line basis over the lease term. The Partnership does not separate lease components (i.e., fixed payments including rent, real estate taxes and insurance costs) from non-lease components (i.e., common-area maintenance) and recognizes them as a single lease component. Variable lease payments not included within lease contracts are expensed as incurred. See Note 3 for additional information. Income Taxes. Generally, income taxes have not been provided for in the Consolidated Financial Statements due to the partnership tax structure where each partner is liable for his or her own tax payments. For the jurisdictions in which the Partnership is liable for tax payments, the income tax provisions are immaterial (see Note 12). Partnership Capital Subject to Mandatory Redemption. FASB ASC No. 480, Distinguishing Liabilities from Equity (“ASC 480”), established standards for classifying and measuring certain financial instruments with characteristics of both liabilities and equity. Under the provisions of ASC 480, the obligation to redeem a partner’s capital in the event of a partner’s death is one of the criteria requiring capital to be classified as a liability. Since the Partnership Agreement obligates the Partnership to redeem a partner’s capital after a partner’s death, ASC 480 requires all of the Partnership’s equity capital to be classified as a liability. In accordance with ASC 480, income allocable to limited, subordinated limited and general partners is classified as a reduction of income before allocations to partners, which results in a presentation of $0 net income for the years ended December 31, 2020, 2019, and 2018. The financial statement presentations required to comply with ASC 480 do not alter the Partnership’s treatment of income, income allocations or capital for any other purposes. Net income, as defined in the Partnership Agreement, is equivalent to income before allocations to partners on the Consolidated Statements of Income. Such income, if any, for each calendar year is allocated to the Partnership’s three classes of capital in accordance with the formulas prescribed in the Partnership Agreement. Income allocations are based upon partner capital contributions including capital contributions financed with loans from the Partnership. First, limited partners are allocated net income (as defined in the Partnership Agreement) in accordance with the prescribed formula for their share of net income. Limited partners generally do not share in the net loss in any year in which there is a net loss and the Partnership is not dissolved or liquidated. Thereafter, subordinated limited partners and general partners are allocated any remaining net income or net loss based on formulas as defined in the Partnership Agreement. The limited partnership capital subject to mandatory redemption is held by current and former associates and general partners of the Partnership. Limited partners participate in the Partnership’s profits and are paid a minimum 7.5% annual return on the face amount of their capital (see Note 10) in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is held by current and former general partners of the Partnership. Subordinated limited partners receive a percentage of the Partnership’s net income determined in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is subordinated to the limited partnership capital. The general partnership capital subject to mandatory redemption is held by current general partners of the Partnership. General partners receive a percentage of the Partnership’s net income determined in accordance with the Partnership Agreement. The general partnership capital subject to mandatory redemption is subordinated to the limited partnership capital and the subordinated limited partnership capital. Advertising. Advertising activities include the cost to produce and distribute campaigns market wide to attract and retain clients and financial advisors. Such costs are generally expensed when incurred. Recently Adopted Accounting Standards. In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ( |
Current Expected Credit Losses
Current Expected Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Current Expected Credit Losses | NOTE 2 – Current Expected Credit Losses The Partnership individually assessed the current expected credit loss for assets in scope of ASU 2016-13 below. Receivables from Clients Receivables from clients is primarily composed of margin loan balances. The value of securities owned by clients and held as collateral for these receivables is not reflected in the Consolidated Financial Statements. Collateral held as of December 31, 2020 and January 1, 2020 was $4,035 and $3,915, respectively, and was not repledged or sold. The Partnership considers these financing receivables to be of good credit quality due to the fact that these receivables are primarily collateralized by the related client investments. To estimate expected credit losses on margin loans, the Partnership applied the collateral maintenance practical expedient by comparing the amortized cost basis of the margin loans with the fair value of collateral at the reporting date. Margin loans are limited to a fraction of the total value of the securities held in the client's account against those loans upon issuance in accordance with Federal Reserve Board Regulation T and throughout the life of the loan in accordance with Financial Industry Regulatory Authority (“FINRA”) R t Securities Purchased under Agreements to Resell The Partnership participates in short-term resale agreements collateralized by government and agency securities. These transactions are reported as collateralized financing and are carried at cost with accrued interest in receivable from mutual funds, insurance companies and other within the Consolidated Statements of Financial Condition. The fair value of the underlying collateral, plus accrued interest, must equal or exceed 102% of the carrying amount of the transaction in U.S. agreements and must equal or exceed 100% of the carrying amount of the transaction in Canada agreements. It is the Partnership’s policy to have such underlying resale agreement collateral delivered to the Partnership or deposited in its accounts at its custodian banks. The fair value of the collateral related to these agreements was $1,743 and $1,724 as of December 31, 2020 and 2019, respectively, and was not repledged or sold. To estimate expected credit losses on the resale agreements, the Partnership applied the collateral maintenance practical expedient by comparing the amortized cost basis of the resale agreements with the fair value of collateral at the reporting date. The counterparties are all financial institutions that the Partnership considers to be reputable and reliable, and the Partnership reasonably expects the counterparties will be able to continually replenish collateral securing the financial asset and does not expect the fair value of collateral to fall below the value of the resale agreements. The fair value of collateral, plus accrued interest, was 102% of the related assets in U.S. agreements and 100% in Canada agreements as of December 31, 2020 and January 1, 2020, and the expected credit loss was zero for each period. Partnership Loans The Partnership makes loans available to those general partners and, in limited circumstances, subordinated limited partners who require financing for some or all of their Partnership capital contributions as discussed in more detail in Note 10. General partners and subordinated limited partners must repay any amount of principal and interest outstanding on their Partnership loans prior to receiving a return of their Partnership capital. The loan value never exceeds the value of capital allocated to the partner, and there has been no historical loss on Partnership loans. As such, the risk of loss is remote, and the expected credit loss was zero as of December 31, 2020 and January 1, 2020. Receivables from Revenue Contracts with Customers The majority of the Partnership's receivables are collateralized financial assets, including advisory program fees, retirement fees, mutual fund and insurance service fees, and fund advisor fees, because the fees are paid out of client accounts or third-party products consisting of cash and securities. Due to the size of the fees in relation to the value of the cash and securities in accounts or funds, the collateral value always exceeds the amortized cost basis of the receivables, resulting in a remote risk of loss. In addition, the receivables have a short duration, generally due within 30 to 90 days, and there is no historical evidence of market declines that would cause the fair value of the underlying collateral to decline below the amortized cost of the receivables. The Partnership considered current conditions, and there is not a foreseeable expectation of an event or change which would result in the receivables being undercollateralized or unpaid. The expected credit loss for receivables from revenue contracts with customers was zero as of December 31, 2020 and January 1, 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 3 – Leases For the years ended December 31, 2020 and 2019, cash paid for amounts included in the measurement of operating lease liabilities was $306 and $283, respectively, and lease right-of-use assets obtained in exchange for new operating lease liabilities was $328 and $360, respectively. The weighted-average remaining lease term was four years as of both December 31, 2020 and 2019, and the weighted-average discount rate was 2.6% and 3.2%, respectively. The Partnership adopted ASC 842, Leases Under ASC 840 , Leases, the predecessor to ASC 842, rent and other lease-related expenses were $305 for the year ended December 31, 2018. December 31, 2020 December 31, 2019 2021 $ 300 $ 283 2022 247 239 2023 190 183 2024 125 128 2025 65 65 Thereafter 60 63 Total lease payments 987 961 Less: Interest 49 63 Total present value of lease liabilities $ 938 $ 898 While the rights and obligations for leases that have not yet commenced are not significant, the Partnership regularly enters into new branch office leases. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | NOTE 4 – Revenue As of December 31, 2020, 2019, and 2018, $563, $470 and $377, respectively, of the receivable from clients balance related to revenue contracts with customers. The Partnership derived 13%, 14% and 14% of its total revenue for the years ended December 31, 2020, 2019 and 2018, respectively, from one mutual fund company. The revenue generated from this company relates to business conducted with the Partnership’s U.S. segment. The following tables show the Partnership's disaggregated revenue information for the years ended December 31, 2020, 2019, and 2018: 2020 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 5,452 $ 85 $ 5,537 Service fees 1,298 89 1,387 Other asset-based fees 591 — 591 Total asset-based fee revenue 7,341 174 7,515 Account and activity fee revenue: Shareholder accounting services fees 424 — 424 Other account and activity fee revenue 224 12 236 Total account and activity fee revenue 648 12 660 Total fee revenue 7,989 186 8,175 Trade revenue: Commissions 1,611 49 1,660 Principal transactions 56 3 59 Total trade revenue 1,667 52 1,719 Total revenue from customers 9,656 238 9,894 Net interest and dividends and other revenue 149 20 169 Net revenue $ 9,805 $ 258 $ 10,063 2019 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 4,740 $ 70 $ 4,810 Service fees 1,241 88 1,329 Other asset-based fees 639 — 639 Total asset-based fee revenue 6,620 158 6,778 Account and activity fee revenue: Shareholder accounting services fees 432 — 432 Other account and activity fee revenue 229 13 242 Total account and activity fee revenue 661 13 674 Total fee revenue 7,281 171 7,452 Trade revenue: Commissions 1,428 47 1,475 Principal transactions 102 4 106 Total trade revenue 1,530 51 1,581 Total revenue from customers 8,811 222 9,033 Net interest and dividends and other revenue 316 20 336 Net revenue $ 9,127 $ 242 $ 9,369 2018 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 4,156 $ 58 $ 4,214 Service fees 1,218 87 1,305 Other asset-based fees 556 — 556 Total asset-based fee revenue 5,930 145 6,075 Account and activity fee revenue: Shareholder accounting services fees 432 — 432 Other account and activity fee revenue 232 14 246 Total account and activity fee revenue 664 14 678 Total fee revenue 6,594 159 6,753 Trade revenue: Commissions 1,271 49 1,320 Principal transactions 137 5 142 Total trade revenue 1,408 54 1,462 Total revenue from customers 8,002 213 8,215 Net interest and dividends and other revenue 231 23 254 Net revenue $ 8,233 $ 236 $ 8,469 |
Payable to Clients
Payable to Clients | 12 Months Ended |
Dec. 31, 2020 | |
Payable To Clients [Abstract] | |
Payable to Clients | NOTE 5 – PAYABLE TO CLIENTS Payable to clients is composed of cash amounts held by the Partnership due to clients. Substantially all amounts payable to clients are subject to withdrawal upon client request. The Partnership pays interest, which was 0.01% as of December 31, 2020, on the vast majority of credit balances in client accounts. The total interest paid to clients for the years ended December 31, 2020, 2019, and 2018 was $9, $62 and $58, respectively. |
Receivable from Mutual Funds, I
Receivable from Mutual Funds, Insurance Companies, and Other | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Receivable from Mutual Funds, Insurance Companies, and Other | NOTE 6 – RECEIVABLE FROM MUTUAL FUNDS, INSURANCE COMPANIES AND OTHER The following table shows the Partnership's receivable from mutual funds, insurance companies and other as of December 31, 2020 and 2019: 2020 2019 Deposit for Canadian retirement accounts $ 457 $ 326 Fees from mutual funds and insurance companies 285 291 Other receivables 76 44 Total $ 818 $ 661 The deposit for Canadian retirement accounts is required by Canadian regulations. The Partnership is required to hold deposits with a trustee for clients’ retirement funds held in Canada. The receivable from mutual funds and insurance companies is related to revenue contracts with customers. The balance was $278 as of December 31, 2018. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 7 – FAIR VALUE The following tables show the Partnership's financial instruments measured at fair value: Financial Assets at Fair Value as of December 31, 2020 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 120 $ — $ 120 Money market funds 41 — — 41 Total cash equivalents $ 41 $ 120 $ — $ 161 Investments segregated under federal regulations: U.S. treasuries $ 12,051 $ — $ — $ 12,051 Certificates of deposit — 100 — 100 Total investments segregated under federal regulations $ 12,051 $ 100 $ — $ 12,151 Securities owned: Investment securities: Government and agency obligations $ 971 $ — $ — $ 971 Mutual funds (1) 327 — — 327 Equities 3 — — 3 Certificates of deposit — 1 — 1 Total investment securities $ 1,301 $ 1 $ — $ 1,302 Inventory securities: Equities $ 19 $ — $ — $ 19 State and municipal obligations — 10 — 10 Corporate bonds and notes — 2 — 2 Mutual funds 1 — — 1 Total inventory securities $ 20 $ 12 $ — $ 32 Financial Assets at Fair Value as of December 31, 2019 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 326 $ — $ 326 Investments segregated under federal regulations: U.S. treasuries $ 3,394 $ — $ — $ 3,394 Securities owned: Investment securities: Mutual funds (1) $ 328 $ — $ — $ 328 Government and agency obligations 3 — — 3 Equities 1 — — 1 Total investment securities $ 332 $ — $ — $ 332 Inventory securities: Equities $ 18 $ — $ — $ 18 State and municipal obligations — 18 — 18 Certificates of deposit — 9 — 9 Corporate bonds and notes — 3 — 3 Mutual funds 2 — — 2 Total inventory securities $ 20 $ 30 $ — $ 50 (1) The mutual funds balance consists primarily of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan. The balance also includes a security held for regulatory purposes at the Trust Co. |
Equipment, Property and Improve
Equipment, Property and Improvements | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Equipment, Property and Improvements | NOTE 8 – EQUIPMENT, PROPERTY AND IMPROVEMENTS The following table shows equipment, property and improvements as of December 31, 2020 and 2019: 2020 2019 Buildings and improvements $ 1,050 $ 1,012 Equipment, furniture and fixtures 763 713 Land 43 43 Equipment, property and improvements, at cost 1,856 1,768 Less: accumulated depreciation and amortization 1,236 1,152 Equipment, property and improvements, net $ 620 $ 616 Depreciation and amortization expense on equipment, property and improvements of $125, $115 and $94 is included in the Consolidated Statements of Income within the occupancy and equipment and communications and data processing line items for the years ended December 31, 2020, 2019, and 2018, respectively. The Partnership's capital expenditures were $129, $176 and $105 for the years ended December 31, 2020, 2019, and 2018, respectively. The capital expenditures in 2020 were primarily related to facilities improvements in branch offices, as well as for software and other technology support. |
Lines of Credit
Lines of Credit | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Lines of Credit | NOTE 9 – LINES OF CREDIT The following table shows the composition of the Partnership's aggregate bank lines of credit in place as of December 31, 2020 and 2019: 2020 2019 2018 Credit Facility $ 500 $ 500 Uncommitted secured credit facilities 390 290 Total bank lines of credit $ 890 $ 790 In accordance with the terms of the Partnership's $500 committed revolving line of credit (the "2018 Credit Facility") entered into in September 2018, the Partnership is required to maintain a leverage ratio of no more than 35% and minimum Partnership capital, net of reserve for anticipated withdrawals and Partnership loans, of at least $1,884. In addition, Edward Jones is required to maintain a minimum tangible net worth of at least $1,344 and minimum regulatory net capital of at least 6% of aggregate debit items as calculated under the alternative method. The Partnership has the ability to draw on various types of loans. The associated interest rate depends on the type of loan, duration of the loan, whether the loan is secured or unsecured and the amount of leverage. Contractual rates are based on an index rate plus the applicable rate. In addition, the Partnership has multiple uncommitted secured lines of credit totaling $390 that are subject to change at the discretion of the banks. The Partnership also has an additional uncommitted line of credit where the amount and the associated collateral requirements are at the bank's discretion in the event of a borrowing. There were no amounts outstanding on the 2018 Credit Facility or the uncommitted lines of credit as of December 31, 2020 and 2019. The Partnership did not have any draws against these lines of credit during the years ended December 31, 2020 and 2019, except for periodically testing draw procedures. |
Partnership Capital Subject to
Partnership Capital Subject to Mandatory Redemption | 12 Months Ended |
Dec. 31, 2020 | |
Partners Capital Notes [Abstract] | |
Partnership Capital Subject to Mandatory Redemption | NOTE 10 – PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION 0 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) 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 December 31, 2020 and 2019, the outstanding amount of Partnership loans was $341 and $360, respectively. Interest income earned from these loans, which is included in interest and dividends in the Consolidated Statements of Income, was $14, $21 and $17 for the years ended December 31, 2020, 2019, and 2018, respectively. The following table shows the roll forward of outstanding Partnership loans for the years ended December 31, 2020 and 2019: 2020 2019 Partnership loans outstanding at beginning of year $ 360 $ 332 Partnership loans issued during the year 163 164 Repayment of Partnership loans during the year (182 ) (136 ) Total Partnership loans outstanding $ 341 $ 360 The minimum 7.5% annual return on the face amount of limited partnership capital was $93, $94 and $67 for the years ended December 31, 2020, 2019 and 2018, 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 SEC on January 12, 2018, to register $450 of Interests issuable pursuant to the Partnership's 2018 Employee Limited Partnership Interest Purchase Plan (the "2018 Plan"). The Partnership issued approximately $380, $1 and $3 million of Interests under the 2018 Plan in early 2019, 2020, and 2021, respectively. The remaining $66 of Interests may be issued under the Plan at the discretion of the Managing Partner in the future. |
Net Capital Requirements
Net Capital Requirements | 12 Months Ended |
Dec. 31, 2020 | |
Brokers And Dealers [Abstract] | |
Net Capital Requirements | NOTE 11 – 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 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 capital figures for its U.S. and Canada broker-dealer subsidiaries as of December 31, 2020 and 2019: 2020 2019 U.S.: Net capital $ 1,306 $ 1,244 Net capital in excess of the minimum required $ 1,248 $ 1,188 Net capital as a percentage of aggregate debit items 45.0 % 44.2 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 23.1 % 26.4 % Canada: Regulatory risk-adjusted capital $ 56 $ 40 Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC $ 47 $ 38 U.S. net capital, Canada regulatory risk-adjusted capital and the related capital percentages may fluctuate on a daily basis. In addition, Trust Co. was in compliance with its regulatory capital requirements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 – INCOME TAXES The Partnership is a pass-through entity for federal and state income tax purposes and generally does not incur income taxes. Instead, its earnings and losses are included in the income tax returns of the general, subordinated limited and limited partners. However, the Partnership's structure does include certain subsidiaries which are corporations that are subject to income tax. As of December 31, 2020 and 2019, the Partnership's tax basis of net assets and liabilities exceeds the book basis by $278 and $303, respectively. The primary difference between financial statement basis and tax basis is related to the deferral for tax purposes in deducting accrued expenses until they are paid. Since the Partnership is treated as a pass-through entity for federal and state income tax purposes, the difference between the tax basis and the book basis of assets and liabilities will impact the future tax liabilities of the partners. The tax differences will not impact the net income of the Partnership. FASB ASC No. 740, Income Taxes, |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 13 – EMPLOYEE BENEFIT PLANS The Partnership maintains a profit sharing and 401(k) plan covering all eligible U.S. employees, general partners and service partners, a Group Registered Retirement Savings Plan covering all eligible Canada employees and general partners, and a Deferred Profit Sharing Plan covering all eligible Canada employees. The Partnership contributed approximately $249, $213 and $197 in total to these plans for the years ended December 31, 2020, 2019, and 2018, respectively. The Partnership contributed approximately $36 and $32 to the profit sharing plan in early 2021 and 2020, respectively, applying mandatory profit sharing contributions that were withheld from service partners during the years ended December 31, 2020 and 2019. |
Commitments, Guarantees and Ris
Commitments, Guarantees and Risks | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Risks | NOTE 14 – COMMITMENTS, GUARANTEES AND RISKS As of December 31, 2020, the Partnership would be subject to termination fees of approximately $103 in the event the Partnership terminated existing contractual commitments with certain vendors providing ongoing services primarily for information technology, operations and marketing. As of December 31, 2020, the Partnership made no such decision to terminate these services. These termination fees will decrease over the related contract periods, which generally expire within the next three years. As of December 31, 2020, the Partnership also has a revolving line of credit available (see Note 9). The Partnership provides margin loans to its clients in accordance with Federal Reserve Board Regulation T and FINRA Rule 4210, under which loans are collateralized by securities in client accounts. The Partnership monitors required margin levels and requires clients to deposit additional collateral or reduce positions to meet minimum collateral requirements (see Note 2). The Partnership's securities activities involve execution, settlement and financing of various securities transactions for clients. The Partnership may be exposed to risk of loss in the event clients, other brokers and dealers, banks, depositories or clearing organizations are unable to fulfill contractual obligations. The Partnership has controls in place to ensure client activity is monitored and to mitigate the risk of clients' inability to meet their obligations to the Partnership. Therefore, the Partnership considers its potential to make payments under these client transactions to be remote and accordingly, no liability has been recognized for these transactions. Cash balances held at various major U.S. financial institutions, which typically exceed Federal Deposit Insurance Corporation insurance coverage limits, subject the Partnership to a concentration of credit risk. Additionally, the Partnership's Canada broker-dealer subsidiary may also have cash deposits in excess of the applicable insured amounts. The Partnership regularly monitors the credit ratings of these financial institutions in order to help mitigate the credit risk that exists with the deposits in excess of insured amounts. The Partnership has credit exposure to U.S. government and agency securities which are held as collateral for its resell agreements, investment securities and segregated investments. The Partnership's primary exposure on resell agreements is with the counterparty and the Partnership would only have exposure to U.S. government and agency credit risk in the event of the counterparty's default on the resell agreements (see Note 2). The Partnership provides guarantees to securities clearing houses and exchanges under their standard membership agreements, which require a member to guarantee the performance of other members. Under these agreements, if a member becomes unable to satisfy its obligations to the clearing houses and exchanges, all other members would be required to meet any shortfall. The Partnership's liability under these arrangements is not quantifiable and may exceed the cash and securities it has posted as collateral. However, the Partnership considers the likelihood that the Partnership will be required to make payments under these agreements to be remote. Accordingly, no liability has been recognized for these transactions. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 15 – 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. These matters include: Retirement Plan Litigation . On August 19, 2016, JFC, Edward Jones and certain other defendants were named in a putative class action lawsuit ( ) filed in the U.S. District Court for the Eastern District of Missouri brought under the Employee Retirement Income Security Act of 1974, as amended, by a participant in the Edward D. Jones & Co. Profit Sharing and 401(k) Plan (the "Retirement Plan"). The lawsuit alleges that the defendants breached their fiduciary duties to Retirement Plan participants and seeks declaratory and equitable relief and monetary damages on behalf of the Retirement Plan. The defendants filed a motion to dismiss the lawsuit which was granted in part dismissing the claim against JFC and denied in part as to all other defendants on January 26, 2017. On November 11, 2016, a substantially similar lawsuit ( Schultz, et al. v. Edward D. Jones & Co., L.P., et al. Schultz McDonald Schultz Wage-and-Hour Class Action. On March 13, 2018, JFC and Edward Jones were named as defendants in a purported collective and class action lawsuit ( ) filed in the U.S. District Court for the Northern District of Illinois by four former financial advisors. The lawsuit was brought under the Fair Labor Standards Act (FLSA) as well as Missouri and Illinois law and alleges that the defendants unlawfully attempted to recoup training costs from departing financial advisors and failed to pay all overtime owed to financial advisor trainees among other claims. The lawsuit seeks declaratory and injunctive relief, compensatory and liquidated damages. On March 19, 2019, the court entered an order granting the defendants' motion to dismiss all claims, but permitting the plaintiffs to amend and re-file certain of their claims. Plaintiffs filed an amended complaint on May 3, 2019. On March 30, 2020, the court partially granted the defendants' renewed motion to dismiss the amended complaint and dismissed seven of the ten causes of action it purported to state. The court's order eliminated from the case any claims that rely upon the firm's contractual right to recoup training costs as well as related claims for declaratory relief. It also dismissed various state law claims. JFC and Edward Jones deny the allegations in the remaining counts and intend to vigorously defend against the allegations in this lawsuit. Securities Class Action. On March 30, 2018, Edward Jones and its affiliated entities and individuals were named as defendants in a putative class action ( filed in the U.S. District Court for the Eastern District of California. The lawsuit was brought under the Securities Act of 1933, as amended (the "Securities Act"), and the Exchange Act, as well as Missouri and California law and alleges that the defendants inappropriately transitioned client assets from commission-based accounts to fee-based programs. The plaintiffs requested declaratory, equitable, and exemplary relief, and compensatory damages. On July 9, 2019, the district court entered an order dismissing the lawsuit in its entirety without prejudice. On July 29, 2019, the plaintiffs filed a second amended complaint, which eliminated certain affiliated entities and individuals as defendants, withdrew the claims under the Securities Act, added claims under the Investment Advisers Act of 1940, as amended (the "Investment Advisers Act"), and certain additional state law claims, and reasserted the remaining claims with modified allegations. The defendants filed a motion to dismiss, the plaintiffs subsequently withdrew their Investment Advisers Act claims, and on November 12, 2019, the district court granted defendants' motion to dismiss. The plaintiffs appealed the district court's dismissal of certain of their state law claims but did not appeal the dismissal of the remaining claims. On March 4, 2021, the U.S. Court of Appeals for the Ninth Circuit reversed the district court's decision, holding the district court has jurisdiction over the state law claims that were the subject of the plaintiffs' appeal, and remanded the case to the district court for further proceedings on those claims. Edward Jones and its affiliated entities and individuals deny the plaintiffs' allegations and intend to continue to vigorously defend this lawsuit. Discrimination Class Action . On May 24, 2018, Edward Jones and JFC were named as defendants in a putative class action lawsuit ( ) filed in the U.S. District Court for the Northern District of Illinois by a former financial advisor under 42 U.S.C. § 1981, alleging that the defendants discriminated against the former financial advisor and other financial advisors and financial advisor trainees on the basis of race. On July 27, 2018, two named plaintiffs filed an amended complaint adding allegations of discrimination and retaliation under 42 U.S.C. § 2000e, Title VII of the Civil Rights Act of 1964 and retaliation under 42 U.S.C. § 1981. On November 26, 2018, three named plaintiffs filed a second amended complaint. The lawsuit seeks equitable and injunctive relief, as well as compensatory and punitive damages. Edward Jones and JFC deny the allegations and intend to vigorously defend this lawsuit. Reimbursement Class Action. On April 25, 2019, Edward Jones and JFC were named as defendants in a putative class action ( ) filed by two former financial advisors in the Superior Court of the State of California, Sacramento County. Plaintiffs allege that defendants did not reimburse financial advisors and financial advisor trainees in California for certain categories of business expenses, which plaintiffs allege violates the California Labor Code and California Unfair Competition Law. The lawsuit seeks damages and restitution as well as attorneys' fees and costs and equitable and injunctive relief. On February 19, 2020, the plaintiffs filed a motion seeking the court's approval of a proposed class action settlement reached by the parties. On November 16, 2020, the court granted final approval of the settlement. The settlement is in the process of being administered. In addition to these matters, 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 up to $18 as of December 31, 2020. 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 December 31, 2020 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 | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 16 – SEGMENT INFORMATION The Partnership has determined it has two operating and reportable segments based upon geographic location, the U.S. and Canada. The accounting policies of the segments are the same as those described in Note 1 – Summary of Significant Accounting Policies. 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. For computation of segment information, the Partnership allocates costs incurred by the U.S. entity in support of Canada operations to the Canada segment and does not eliminate intercompany items, such as management fees paid to affiliated entities. 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 reviews the segments to assess performance. The Partnership evaluates segment performance based upon income (loss) before allocations to partners, as well as income before variable compensation (“pre-variable income”). Variable compensation is determined at the Partnership level for profit sharing and home office associate and branch office administrator bonus amounts, and therefore is allocated to each geographic segment independent of that segment’s individual pre-variable income. Financial advisor bonuses are determined by the overall Partnership’s profitability, as well as the performance of the individual financial advisors. Both income (loss) before allocations to partners and pre-variable income are considered in evaluating segment performance. Long-lived assets are not disclosed because the balances are not used for evaluating segment performance and deciding how to allocate resources to segments. However, total assets for each segment are provided for informational purposes, as well as capital expenditures and depreciation and amortization. The following table shows financial information for the Partnership’s reportable segments for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Net revenue: U.S. $ 9,805 $ 9,127 $ 8,233 Canada 258 242 236 Total net revenue $ 10,063 $ 9,369 $ 8,469 Net interest and dividends revenue: U.S. $ 99 $ 249 $ 228 Canada 6 10 9 Total net interest and dividends revenue $ 105 $ 259 $ 237 Pre-variable income: U.S. $ 2,673 $ 2,194 $ 1,972 Canada 26 16 16 Total pre-variable income $ 2,699 $ 2,210 $ 1,988 Variable compensation: U.S. $ 1,385 $ 1,094 $ 975 Canada 29 24 23 Total variable compensation $ 1,414 $ 1,118 $ 998 Income (loss) before allocations to partners: U.S. $ 1,288 $ 1,100 $ 997 Canada (3 ) (8 ) (7 ) Total income before allocations to partners $ 1,285 $ 1,092 $ 990 Capital expenditures: U.S. $ 126 $ 170 $ 102 Canada 3 6 3 Total capital expenditures $ 129 $ 176 $ 105 Depreciation and amortization: U.S. $ 123 $ 113 $ 92 Canada 2 2 2 Total depreciation and amortization $ 125 $ 115 $ 94 Total assets at year end: U.S. $ 27,258 $ 18,577 $ 15,187 Canada 1,062 740 628 Total assets $ 28,320 $ 19,317 $ 15,815 Financial advisors at year end: U.S. 18,321 17,830 16,797 Canada 904 874 818 Total financial advisors 19,225 18,704 17,615 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | NOTE 17 – RELATED PARTIES As of December 31, 2020, the Partnership leased approximately 11% of its branch office space from its financial advisors. The associated lease right-of-use assets and lease liabilities included in the Consolidated Statements of Financial Condition were both $89 and $83 at December 31, 2020 and 2019, respectively. Lease cost related to these leases was $35 and $34 for the years ended December 31, 2020 and 2019, respectively. Rent and other lease-related expenses were $32 for the year ended December 31, 2018. These leases are executed and maintained in a similar manner as those entered into with third parties. See Note 3 for additional information about the Partnership's leases. Olive Street is the investment adviser to the eight sub-advised mutual funds comprising the BB Trust and has primary responsibility for setting overall investment strategies and selecting and managing sub-advisers, subject to the review and approval of the BB Trust's Board of Trustees. Olive Street has contractually agreed to waive any investment adviser fees above those amounts paid to the sub-advisers. The investment adviser fee revenue earned by Olive Street, included within asset-based fee revenue on the Consolidated Statements of Income, is offset by the expense paid to the sub-advisers, included within fund sub-adviser fees on the Consolidated Statements of Income. The total amounts recognized for the years ended December 31, 2020, 2019, and 2018 were $174, $147 and $123, respectively. As the investment adviser to the Money Market Fund, Passport Research has contractually agreed to waive fees and/or reimburse fund operating expenses to the extent necessary to limit the annual operating expenses of the Money Market Fund. For the year ended December 31, 2020, Passport Research earned $56 in investment management fees, net of waived fees of $7 to maintain a positive client yield on the Money Market Fund in light of the low interest rate environment throughout most of the year. For the years ended December 31, 2019 and 2018, Passport Research earned $58 and $48, respectively, in investment management fees with no waived fees in those periods. Further, Edward Jones earns certain fees from the Money Market Fund, some of which may be voluntarily waived. For the three years ended December 31, 2020, 2019 and 2018, total fees earned were $46, $138 and $113, respectively, net of the $133, $30 and $30 of waived fees to limit the Money Market Fund's annual operating expenses in the respective periods, as well as to maintain a positive client yield in 2020 in light of the low interest rate environment throughout most of the year. In the normal course of business, partners and associates of the Partnership and its affiliates use the same advisory, brokerage and trust services of the Partnership as unrelated third parties, with certain discounts on commissions and fees for certain services. The Partnership has included balances arising from such transactions in the Consolidated Financial Statements on the same basis as other clients. The Partnership recognizes interest income for the interest earned from partners who elect to finance a portion or all of their Partnership capital contributions through loans made available from the Partnership (see Note 10). |
Quarterly Information
Quarterly Information | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information | NOTE 18 – QUARTERLY INFORMATION (Unaudited) 2020 Quarters Ended Mar 27 Jun 26 Sep 25 Dec 31 Net revenue $ 2,491 $ 2,325 $ 2,527 $ 2,720 Income before allocations to partners $ 303 $ 288 $ 316 $ 378 Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding $ 34.90 $ 33.10 $ 36.36 $ 43.45 2019 Quarters Ended Mar 29 Jun 28 Sep 27 Dec 31 Net revenue $ 2,190 $ 2,319 $ 2,367 $ 2,493 Income before allocations to partners $ 241 $ 285 $ 281 $ 285 Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding $ 29.20 $ 34.55 $ 33.93 $ 34.54 |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | NOTE 19 – 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 December 31, 2020 and 2019: Gross Net amounts Gross amounts not offset offset in the presented in the Consolidated Gross Consolidated Consolidated Statements of Financial amounts of Statements of Statements Condition recognized Financial Financial Financial Securities assets Condition Condition instruments collateral (1) Net 2020 $ 1,714 — 1,714 — (1,714 ) $ — 2019 $ 1,693 — 1,693 — (1,693 ) $ — (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 | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | NOTE 20 – CASH FLOW INFORMATION The following table shows supplemental cash flow information for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Cash paid for interest $ 103 $ 157 $ 125 Cash paid for taxes $ 11 $ 10 $ 10 Non-cash activities: Issuance of general partnership interests through partnership loans in current year $ 163 $ 164 $ 170 Repayment of partnership loans through distributions from partnership capital in current year $ 182 $ 136 $ 135 Declared distributions for retired partnership capital in current year but unpaid at year end (1) $ 145 $ 113 $ 97 (1) Declared distributions for retired Partnership capital are included in the accounts payable, accrued expenses and other line of the Consolidated Statements of Financial Condition. 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 for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Cash and cash equivalents $ 1,125 $ 1,014 $ 1,498 Cash and investments segregated under federal regulations 17,918 10,387 8,241 Less: Investments segregated under federal regulations 12,168 3,394 1,002 Total cash, cash equivalents and restricted cash $ 6,875 $ 8,007 $ 8,737 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. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Statements | THE JONES FINANCIAL COMPANIES, L.L.L.P. (Parent Company Only) December 31, December 31, (Dollars in millions) 2020 2019 ASSETS: Cash and cash equivalents $ 323 $ 320 Investment securities 3 2 Investment in subsidiaries 3,356 3,109 Other assets 55 49 TOTAL ASSETS $ 3,737 $ 3,480 LIABILITIES: Accounts payable and accrued expenses $ 148 $ 116 Partnership capital subject to mandatory redemption $ 3,589 $ 3,364 TOTAL LIABILITIES $ 3,737 $ 3,480 THE JONES FINANCIAL COMPANIES, L.L.L.P. (Parent Company Only) For the Years Ended December 31, (Dollars in millions) 2020 2019 2018 NET REVENUE Subsidiary earnings $ 1,271 $ 1,064 $ 970 Management fee income 1,852 1,411 99 Other 15 29 22 Total revenue 3,138 2,504 1,091 Interest expense 93 94 67 Net revenue 3,045 2,410 1,024 OPERATING EXPENSES Compensation and benefits 1,759 1,317 33 Other operating expenses 1 1 1 Total operating expenses 1,760 1,318 34 INCOME BEFORE ALLOCATIONS TO PARTNERS $ 1,285 $ 1,092 $ 990 Allocations to partners (1,285 ) (1,092 ) (990 ) NET INCOME $ — $ — $ — THE JONES FINANCIAL COMPANIES, L.L.L.P. (Parent Company Only) For the Years Ended December 31, (Dollars in millions) 2020 2019 2018 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ — $ — $ — Adjustments to reconcile net income to net cash provided by operating activities: Income before allocations to partners 1,285 1,092 990 Changes in assets and liabilities: Investment in subsidiaries (1 ) (513 ) (134 ) Investment securities (247 ) 5 — Other assets (6 ) (16 ) (14 ) Accounts payable and accrued expenses — 1 1 Net cash provided by operating activities 1,031 569 843 CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of partnership interests 50 432 60 Redemption of partnership interests (214 ) (216 ) (199 ) Distributions from partnership capital (864 ) (783 ) (694 ) Net cash used in financing activities (1,028 ) (567 ) (833 ) Net increase in cash and cash equivalents 3 2 10 CASH AND CASH EQUIVALENTS: Beginning of year 320 318 308 End of year $ 323 $ 320 $ 318 NON-CASH ACTIVITIES: Issuance of general partnership interests through partnership loans in current year $ 163 $ 164 $ 170 Repayment of partnership loans through distributions from partnership capital in current year $ 182 $ 136 $ 135 Declaration of distributions from subsidiary in current year but received after year end $ 474 $ 428 $ 56 Declared distributions for retired partnership capital in current year but unpaid at year end $ 145 $ 109 $ 97 |
Revenue and Expense
Revenue and Expense | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |
Related Parties | NOTE 17 – RELATED PARTIES As of December 31, 2020, the Partnership leased approximately 11% of its branch office space from its financial advisors. The associated lease right-of-use assets and lease liabilities included in the Consolidated Statements of Financial Condition were both $89 and $83 at December 31, 2020 and 2019, respectively. Lease cost related to these leases was $35 and $34 for the years ended December 31, 2020 and 2019, respectively. Rent and other lease-related expenses were $32 for the year ended December 31, 2018. These leases are executed and maintained in a similar manner as those entered into with third parties. See Note 3 for additional information about the Partnership's leases. Olive Street is the investment adviser to the eight sub-advised mutual funds comprising the BB Trust and has primary responsibility for setting overall investment strategies and selecting and managing sub-advisers, subject to the review and approval of the BB Trust's Board of Trustees. Olive Street has contractually agreed to waive any investment adviser fees above those amounts paid to the sub-advisers. The investment adviser fee revenue earned by Olive Street, included within asset-based fee revenue on the Consolidated Statements of Income, is offset by the expense paid to the sub-advisers, included within fund sub-adviser fees on the Consolidated Statements of Income. The total amounts recognized for the years ended December 31, 2020, 2019, and 2018 were $174, $147 and $123, respectively. As the investment adviser to the Money Market Fund, Passport Research has contractually agreed to waive fees and/or reimburse fund operating expenses to the extent necessary to limit the annual operating expenses of the Money Market Fund. For the year ended December 31, 2020, Passport Research earned $56 in investment management fees, net of waived fees of $7 to maintain a positive client yield on the Money Market Fund in light of the low interest rate environment throughout most of the year. For the years ended December 31, 2019 and 2018, Passport Research earned $58 and $48, respectively, in investment management fees with no waived fees in those periods. Further, Edward Jones earns certain fees from the Money Market Fund, some of which may be voluntarily waived. For the three years ended December 31, 2020, 2019 and 2018, total fees earned were $46, $138 and $113, respectively, net of the $133, $30 and $30 of waived fees to limit the Money Market Fund's annual operating expenses in the respective periods, as well as to maintain a positive client yield in 2020 in light of the low interest rate environment throughout most of the year. In the normal course of business, partners and associates of the Partnership and its affiliates use the same advisory, brokerage and trust services of the Partnership as unrelated third parties, with certain discounts on commissions and fees for certain services. The Partnership has included balances arising from such transactions in the Consolidated Financial Statements on the same basis as other clients. The Partnership recognizes interest income for the interest earned from partners who elect to finance a portion or all of their Partnership capital contributions through loans made available from the Partnership (see Note 10). |
Parent Company [Member] | |
Related Party Transaction [Line Items] | |
Related Parties | NOTE 1 – REVENUE AND EXPENSE Beginning in 2019, the Partnership’s principal operating subsidiary, Edward D. Jones & Co., L.P. (“Edward Jones”), has a written agreement with The Jones Financial Companies, L.L.L.P. (“JFC”) for the services of certain financial advisors who are service partners of JFC and not employees of Edward Jones. Pursuant to the agreement, Edward Jones made payments to the service partners of JFC on JFC's behalf for those services provided. This arrangement did not have an impact on net income for the years ended December 31, 2020 and 2019 but resulted in higher management fee income of $1.7 billion and $1.3 billion, respectively, offset by higher compensation expense of $1.7 billion and $1.3 billion, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
The Partnership's Business and Basis of Accounting | 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"). The financial position of the Partnership’s subsidiaries in Canada as of November 30, 2020 and 2019 are included in the Partnership's Consolidated Statements of Financial Condition and the results for the twelve month periods ended November 30, 2020, 2019 and 2018 are included in the Partnership’s Consolidated Statements of Income, Consolidated Statements of Changes in Partnership Capital Subject to Mandatory Redemption 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. For financial information related to the Partnership’s two operating segments for the years ended December 31, 2020, 2019, and 2018, see Note 16 to the Consolidated Financial Statements. 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 eight sub-advised mutual funds comprising the Bridge Builder® Trust ("BB Trust"). Passport Research, Ltd., a wholly-owned subsidiary of the Partnership, provides investment advisory services to the sub-advised Edward Jones Money Market Fund (the "Money Market Fund"). The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“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 coronavirus (COVID-19) pandemic and the global governmental response, vaccine distribution, and related impact on society and the economy have resulted in significant uncertainty in the global economy and volatility in financial markets. Given the significant global health, market, employment and economic impacts of COVID-19 and the uncertainty of its duration, the Partnership cannot reliably predict the ultimate impact of COVID-19 on financial markets or its financial results. The financial impacts of COVID-19 were included in the Partnership's estimates for assets, liabilities, revenues and expenses as of December 31, 2020. The Partnership evaluated subsequent events for recognition or disclosure through March 12, 2021, which was the date these Consolidated Financial Statements were available to be issued, and identified no matters requiring disclosure. |
Partnership Agreement | Partnership Agreement. Under the terms of the Partnership’s Twentieth Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated August 6, 2018, (the “Partnership Agreement”), a partner’s capital is required to be redeemed by the Partnership in the event of the partner’s death or withdrawal from the Partnership, subject to compliance with ongoing regulatory capital requirements. In the event of a partner’s death, the Partnership generally redeems the partner’s capital within six months. The Partnership has restrictions in place which govern the withdrawal of capital. Under the terms of the Partnership Agreement, limited partners requesting withdrawal from the Partnership are to be repaid their capital in three equal annual installments beginning no earlier than 90 days after their withdrawal notice is received by the Managing Partner (as defined in the Partnership Agreement). The capital of general partners requesting withdrawal from the Partnership is converted to subordinated limited partnership capital or, at the discretion of the Managing Partner, redeemed by the Partnership. Subordinated limited partners requesting withdrawal are repaid their capital in six equal annual installments beginning no earlier than 90 days after their request for withdrawal of contributed capital is received by the Managing Partner. The Partnership’s Managing Partner has discretion to waive or modify these withdrawal restrictions and to accelerate the return of capital. All current and future Partnership capital is subordinate to all current and future liabilities of the Partnership. The Partnership Agreement includes additional terms. |
Revenue Recognition | 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 as well as contractual rates 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's contracts with mutual fund and insurance companies, along with the prospectuses for mutual funds, allow the Partnership to sell those companies' 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's contracts with mutual fund and insurance companies, along with the prospectuses for mutual funds, allow the Partnership to sell those companies' products to clients and earn certain commissions, which for mutual funds, are aligned with the terms of the mutual fund prospectuses. 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. |
Foreign Exchange | Foreign Exchange. Assets and liabilities denominated in a foreign currency are translated at the exchange rate at the end of the period. Revenue and expenses denominated in a foreign currency are translated using the average exchange rate for each period. Foreign exchange gains and losses are included in other revenue on the Consolidated Statements of Income. |
Fair Value | Fair Value. Substantially all of the Partnership’s financial assets and financial liabilities covered under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 820, Fair Value Measurement and Disclosure (“ASC 820”), are carried at fair value or at contracted amounts which approximate fair value given the short time to maturity. Fair value of a financial instrument is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, also known as the “exit price.” Financial assets are marked to bid prices and financial liabilities are marked to offer prices. The Partnership’s financial assets and financial liabilities recorded at fair value in the Consolidated Statements of Financial Condition are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820, with the related amount of subjectivity associated with the inputs to value these assets and liabilities at fair value for each level, are as follows: Level I – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets categorized as Level I generally are U.S. treasuries, investments in publicly traded mutual funds with quoted market prices, equities listed in active markets, and government and agency obligations. Level II – Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with related market data at the measurement date and for the duration of the instrument’s anticipated life. The Partnership uses the market approach valuation technique which incorporates third-party pricing services and other relevant observable information (such as market interest rates, yield curves, prepayment risk and credit risk generated by market transactions involving identical or comparable assets or liabilities) in valuing these types of investments. When third-party pricing services are used, the methods and assumptions used are reviewed by the Partnership. The types of assets categorized as Level II generally are certificates of deposit, state and municipal obligations and corporate bonds and notes. Level III – Inputs are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the inputs to the model. The Partnership did not have any assets or liabilities categorized as Level III during the years ended December 31, 2020 and 2019. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Partnership considers all highly liquid investments with original maturities of three months or less to be cash equivalents. |
Cash and Investments Segregated under Federal Regulations | Cash and Investments Segregated under Federal Regulations. Cash, investments and the related interest receivable are segregated in special reserve bank accounts for the benefit of U.S. clients pursuant to the Customer Protection Rule 15c3-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). |
Collateral | Collateral. The Partnership reports as assets collateral it has pledged in secured borrowings and other arrangements when the secured party cannot sell or repledge the assets or the Partnership can substitute collateral or otherwise redeem it on short notice. The Partnership does not report collateral it has received in secured lending and other arrangements as an asset when the debtor has the right to redeem or substitute the collateral on short notice. |
Securities Owned | Securities Owned . Securities owned, primarily consisting of investment securities, are recorded on a trade-date basis at fair value which is determined by using quoted market or dealer prices. The Partnership's investment securities are primarily held to maintain firm liquidity. The unrealized gains and losses for investment securities are recorded in other revenue in the Consolidated Statement of Income. The Partnership records the related unrealized gains and losses for inventory securities in trade revenue in the Consolidated Statement of Income. |
Equipment, Property and Improvements | Equipment, Property and Improvements. Equipment, including furniture and fixtures, is recorded at cost and depreciated using straight-line and accelerated methods over estimated useful lives of three to ten years. Buildings are depreciated using the straight-line method over their useful lives, which are estimated at thirty years. Leasehold improvements are amortized based on the term of the lease or the economic useful life of the improvement, whichever is less. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation or amortization is removed from the respective category and any related gain or loss is recorded as other revenue in the Consolidated Statements of Income. The cost of maintenance and repairs is charged against income as incurred, whereas significant enhancements are capitalized and depreciated once the asset is placed into service. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be fully recoverable. If impairment is indicated, the asset value is written down to its fair value. |
Non-qualified Deferred Compensation Plan | Non-qualified Deferred Compensation Plan. The Partnership has a non-qualified deferred compensation plan for certain financial advisors. The Partnership has recorded a liability of $268 for the future payments due to financial advisors participating in the plan. As the future amounts due to financial advisors change in accordance with plan requirements, the Partnership records the change in future amounts owed to financial advisors as an increase or decrease in accrued compensation in the Consolidated Statements of Financial Condition and compensation and benefits expense in the Consolidated Statements of Income. The Partnership has chosen to economically hedge this future liability by purchasing securities in an amount similar to the future liability expected to be due in accordance with the plan. These securities are included in investment securities in the Consolidated Statements of Financial Condition and the unrealized gains and losses are recorded in other revenue in the Consolidated Statements of Income. Each period, the net impact of the change in future amounts owed to financial advisors in the plan and the change in value of the investment securities are approximately the same, resulting in minimal net impact to the Consolidated Financial Statements. |
Retirement Transition Plans | Retirement Transition Plans. The Partnership, in certain circumstances, offers individually tailored retirement transition plans to retiring financial advisors. Each retirement transition plan compensates a retiring financial advisor for successfully providing client transition services in accordance with a retirement and transition agreement. Generally, the retirement and transition agreement is for five years. During the first two years the retiring financial advisor remains an employee and provides client transition services, which include, but are not limited to, the successful transition of client accounts and assets to successor financial advisors, as well as mentoring and providing training and support to successor financial advisors. The financial advisor retires at the end of year two and is subject to a non-compete agreement for three years. Most retiring financial advisors participating in a retirement transition plan are paid ratably over four years. Compensation expense is generally recognized ratably over the two-year transition period which aligns with the service period of most agreements, with compensation expense related to some plans recognized over one year depending on the size and complexity of the transition plan. As of December 31, 2020, $109 was accrued for future payments to financial advisors who have already started a plan, approximately $52 of which is expected to be paid in 2021. As of December 31, 2019, $102 was accrued. Successor financial advisors receive reduced compensation on transitioned assets for up to four years. |
Lease Accounting | Lease Accounting. The Partnership leases branch office space under numerous operating leases from non-affiliates and financial advisors. Branch offices are generally leased for terms of five years and generally contain a renewal option. Renewal options are not included in the lease term if it is not reasonably certain the Partnership will exercise the renewal option. The Partnership also leases home office spaces and land from non-affiliates with terms ranging from 12 to 30 years. The Partnership recognizes lease liabilities for future lease payments and lease right-of-use assets for the right of use of an underlying asset within a contract. Current leases are all classified as operating leases. Lease right-of-use assets and lease liabilities are recognized on the Consolidated Statements of Financial Condition at commencement date and calculated as the present value of the sum of the remaining fixed lease payments over the lease term. Throughout the lease term, the lease right-of-use asset includes the impact from the timing of lease payments and straight-line rent expense. The Partnership used its incremental borrowing rate based on information available at lease commencement as leases do not contain a readily determinable implicit rate. A single lease cost, or rent expense, is recognized on a straight-line basis over the lease term. The Partnership does not separate lease components (i.e., fixed payments including rent, real estate taxes and insurance costs) from non-lease components (i.e., common-area maintenance) and recognizes them as a single lease component. Variable lease payments not included within lease contracts are expensed as incurred. See Note 3 for additional information. |
Income Taxes | Income Taxes. Generally, income taxes have not been provided for in the Consolidated Financial Statements due to the partnership tax structure where each partner is liable for his or her own tax payments. For the jurisdictions in which the Partnership is liable for tax payments, the income tax provisions are immaterial (see Note 12). |
Partnership Capital Subject to Mandatory Redemption | Partnership Capital Subject to Mandatory Redemption. FASB ASC No. 480, Distinguishing Liabilities from Equity (“ASC 480”), established standards for classifying and measuring certain financial instruments with characteristics of both liabilities and equity. Under the provisions of ASC 480, the obligation to redeem a partner’s capital in the event of a partner’s death is one of the criteria requiring capital to be classified as a liability. Since the Partnership Agreement obligates the Partnership to redeem a partner’s capital after a partner’s death, ASC 480 requires all of the Partnership’s equity capital to be classified as a liability. In accordance with ASC 480, income allocable to limited, subordinated limited and general partners is classified as a reduction of income before allocations to partners, which results in a presentation of $0 net income for the years ended December 31, 2020, 2019, and 2018. The financial statement presentations required to comply with ASC 480 do not alter the Partnership’s treatment of income, income allocations or capital for any other purposes. Net income, as defined in the Partnership Agreement, is equivalent to income before allocations to partners on the Consolidated Statements of Income. Such income, if any, for each calendar year is allocated to the Partnership’s three classes of capital in accordance with the formulas prescribed in the Partnership Agreement. Income allocations are based upon partner capital contributions including capital contributions financed with loans from the Partnership. First, limited partners are allocated net income (as defined in the Partnership Agreement) in accordance with the prescribed formula for their share of net income. Limited partners generally do not share in the net loss in any year in which there is a net loss and the Partnership is not dissolved or liquidated. Thereafter, subordinated limited partners and general partners are allocated any remaining net income or net loss based on formulas as defined in the Partnership Agreement. The limited partnership capital subject to mandatory redemption is held by current and former associates and general partners of the Partnership. Limited partners participate in the Partnership’s profits and are paid a minimum 7.5% annual return on the face amount of their capital (see Note 10) in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is held by current and former general partners of the Partnership. Subordinated limited partners receive a percentage of the Partnership’s net income determined in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is subordinated to the limited partnership capital. The general partnership capital subject to mandatory redemption is held by current general partners of the Partnership. General partners receive a percentage of the Partnership’s net income determined in accordance with the Partnership Agreement. The general partnership capital subject to mandatory redemption is subordinated to the limited partnership capital and the subordinated limited partnership capital. |
Advertising | Advertising. Advertising activities include the cost to produce and distribute campaigns market wide to attract and retain clients and financial advisors. Such costs are generally expensed when incurred. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards. In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ( |
Current Expected Credit Losses | The Partnership individually assessed the current expected credit loss for assets in scope of ASU 2016-13 below. Receivables from Clients Receivables from clients is primarily composed of margin loan balances. The value of securities owned by clients and held as collateral for these receivables is not reflected in the Consolidated Financial Statements. Collateral held as of December 31, 2020 and January 1, 2020 was $4,035 and $3,915, respectively, and was not repledged or sold. The Partnership considers these financing receivables to be of good credit quality due to the fact that these receivables are primarily collateralized by the related client investments. To estimate expected credit losses on margin loans, the Partnership applied the collateral maintenance practical expedient by comparing the amortized cost basis of the margin loans with the fair value of collateral at the reporting date. Margin loans are limited to a fraction of the total value of the securities held in the client's account against those loans upon issuance in accordance with Federal Reserve Board Regulation T and throughout the life of the loan in accordance with Financial Industry Regulatory Authority (“FINRA”) R t Securities Purchased under Agreements to Resell The Partnership participates in short-term resale agreements collateralized by government and agency securities. These transactions are reported as collateralized financing and are carried at cost with accrued interest in receivable from mutual funds, insurance companies and other within the Consolidated Statements of Financial Condition. The fair value of the underlying collateral, plus accrued interest, must equal or exceed 102% of the carrying amount of the transaction in U.S. agreements and must equal or exceed 100% of the carrying amount of the transaction in Canada agreements. It is the Partnership’s policy to have such underlying resale agreement collateral delivered to the Partnership or deposited in its accounts at its custodian banks. The fair value of the collateral related to these agreements was $1,743 and $1,724 as of December 31, 2020 and 2019, respectively, and was not repledged or sold. To estimate expected credit losses on the resale agreements, the Partnership applied the collateral maintenance practical expedient by comparing the amortized cost basis of the resale agreements with the fair value of collateral at the reporting date. The counterparties are all financial institutions that the Partnership considers to be reputable and reliable, and the Partnership reasonably expects the counterparties will be able to continually replenish collateral securing the financial asset and does not expect the fair value of collateral to fall below the value of the resale agreements. The fair value of collateral, plus accrued interest, was 102% of the related assets in U.S. agreements and 100% in Canada agreements as of December 31, 2020 and January 1, 2020, and the expected credit loss was zero for each period. Partnership Loans The Partnership makes loans available to those general partners and, in limited circumstances, subordinated limited partners who require financing for some or all of their Partnership capital contributions as discussed in more detail in Note 10. General partners and subordinated limited partners must repay any amount of principal and interest outstanding on their Partnership loans prior to receiving a return of their Partnership capital. The loan value never exceeds the value of capital allocated to the partner, and there has been no historical loss on Partnership loans. As such, the risk of loss is remote, and the expected credit loss was zero as of December 31, 2020 and January 1, 2020. Receivables from Revenue Contracts with Customers The majority of the Partnership's receivables are collateralized financial assets, including advisory program fees, retirement fees, mutual fund and insurance service fees, and fund advisor fees, because the fees are paid out of client accounts or third-party products consisting of cash and securities. Due to the size of the fees in relation to the value of the cash and securities in accounts or funds, the collateral value always exceeds the amortized cost basis of the receivables, resulting in a remote risk of loss. In addition, the receivables have a short duration, generally due within 30 to 90 days, and there is no historical evidence of market declines that would cause the fair value of the underlying collateral to decline below the amortized cost of the receivables. The Partnership considered current conditions, and there is not a foreseeable expectation of an event or change which would result in the receivables being undercollateralized or unpaid. The expected credit loss for receivables from revenue contracts with customers was zero as of December 31, 2020 and January 1, 2020. |
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 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Future Undiscounted Cash Outflows for Operating Leases | The Partnership's future undiscounted cash outflows for operating leases are summarized below as of: December 31, 2020 December 31, 2019 2021 $ 300 $ 283 2022 247 239 2023 190 183 2024 125 128 2025 65 65 Thereafter 60 63 Total lease payments 987 961 Less: Interest 49 63 Total present value of lease liabilities $ 938 $ 898 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Partnership's Disaggregated Revenue | The following tables show the Partnership's disaggregated revenue information for the years ended December 31, 2020, 2019, and 2018: 2020 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 5,452 $ 85 $ 5,537 Service fees 1,298 89 1,387 Other asset-based fees 591 — 591 Total asset-based fee revenue 7,341 174 7,515 Account and activity fee revenue: Shareholder accounting services fees 424 — 424 Other account and activity fee revenue 224 12 236 Total account and activity fee revenue 648 12 660 Total fee revenue 7,989 186 8,175 Trade revenue: Commissions 1,611 49 1,660 Principal transactions 56 3 59 Total trade revenue 1,667 52 1,719 Total revenue from customers 9,656 238 9,894 Net interest and dividends and other revenue 149 20 169 Net revenue $ 9,805 $ 258 $ 10,063 2019 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 4,740 $ 70 $ 4,810 Service fees 1,241 88 1,329 Other asset-based fees 639 — 639 Total asset-based fee revenue 6,620 158 6,778 Account and activity fee revenue: Shareholder accounting services fees 432 — 432 Other account and activity fee revenue 229 13 242 Total account and activity fee revenue 661 13 674 Total fee revenue 7,281 171 7,452 Trade revenue: Commissions 1,428 47 1,475 Principal transactions 102 4 106 Total trade revenue 1,530 51 1,581 Total revenue from customers 8,811 222 9,033 Net interest and dividends and other revenue 316 20 336 Net revenue $ 9,127 $ 242 $ 9,369 2018 U.S. Canada Total Fee revenue: Asset-based fee revenue: Advisory programs fees $ 4,156 $ 58 $ 4,214 Service fees 1,218 87 1,305 Other asset-based fees 556 — 556 Total asset-based fee revenue 5,930 145 6,075 Account and activity fee revenue: Shareholder accounting services fees 432 — 432 Other account and activity fee revenue 232 14 246 Total account and activity fee revenue 664 14 678 Total fee revenue 6,594 159 6,753 Trade revenue: Commissions 1,271 49 1,320 Principal transactions 137 5 142 Total trade revenue 1,408 54 1,462 Total revenue from customers 8,002 213 8,215 Net interest and dividends and other revenue 231 23 254 Net revenue $ 8,233 $ 236 $ 8,469 |
Receivable from Mutual Funds,_2
Receivable from Mutual Funds, Insurance Companies, and Other (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Composition of Partnership's Receivable from Mutual Funds, Insurance Companies and Other | The following table shows the Partnership's receivable from mutual funds, insurance companies and other as of December 31, 2020 and 2019: 2020 2019 Deposit for Canadian retirement accounts $ 457 $ 326 Fees from mutual funds and insurance companies 285 291 Other receivables 76 44 Total $ 818 $ 661 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Partnership's Financial Assets at Fair Value | The following tables show the Partnership's financial instruments measured at fair value: Financial Assets at Fair Value as of December 31, 2020 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 120 $ — $ 120 Money market funds 41 — — 41 Total cash equivalents $ 41 $ 120 $ — $ 161 Investments segregated under federal regulations: U.S. treasuries $ 12,051 $ — $ — $ 12,051 Certificates of deposit — 100 — 100 Total investments segregated under federal regulations $ 12,051 $ 100 $ — $ 12,151 Securities owned: Investment securities: Government and agency obligations $ 971 $ — $ — $ 971 Mutual funds (1) 327 — — 327 Equities 3 — — 3 Certificates of deposit — 1 — 1 Total investment securities $ 1,301 $ 1 $ — $ 1,302 Inventory securities: Equities $ 19 $ — $ — $ 19 State and municipal obligations — 10 — 10 Corporate bonds and notes — 2 — 2 Mutual funds 1 — — 1 Total inventory securities $ 20 $ 12 $ — $ 32 Financial Assets at Fair Value as of December 31, 2019 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 326 $ — $ 326 Investments segregated under federal regulations: U.S. treasuries $ 3,394 $ — $ — $ 3,394 Securities owned: Investment securities: Mutual funds (1) $ 328 $ — $ — $ 328 Government and agency obligations 3 — — 3 Equities 1 — — 1 Total investment securities $ 332 $ — $ — $ 332 Inventory securities: Equities $ 18 $ — $ — $ 18 State and municipal obligations — 18 — 18 Certificates of deposit — 9 — 9 Corporate bonds and notes — 3 — 3 Mutual funds 2 — — 2 Total inventory securities $ 20 $ 30 $ — $ 50 (1) The mutual funds balance consists primarily of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan. The balance also includes a security held for regulatory purposes at the Trust Co. |
Equipment, Property and Impro_2
Equipment, Property and Improvements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Composition of Partnership's Equipment, Property and Improvements | The following table shows equipment, property and improvements as of December 31, 2020 and 2019: 2020 2019 Buildings and improvements $ 1,050 $ 1,012 Equipment, furniture and fixtures 763 713 Land 43 43 Equipment, property and improvements, at cost 1,856 1,768 Less: accumulated depreciation and amortization 1,236 1,152 Equipment, property and improvements, net $ 620 $ 616 |
Lines of Credit (Tables)
Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Composition of Partnership's Aggregate Bank Lines of Credit | The following table shows the composition of the Partnership's aggregate bank lines of credit in place as of December 31, 2020 and 2019: 2020 2019 2018 Credit Facility $ 500 $ 500 Uncommitted secured credit facilities 390 290 Total bank lines of credit $ 890 $ 790 |
Partnership Capital Subject t_2
Partnership Capital Subject to Mandatory Redemption (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Partners Capital Notes [Abstract] | |
Roll Forward of Outstanding Partnership Loans | The following table shows the roll forward of outstanding Partnership loans for the years ended December 31, 2020 and 2019: 2020 2019 Partnership loans outstanding at beginning of year $ 360 $ 332 Partnership loans issued during the year 163 164 Repayment of Partnership loans during the year (182 ) (136 ) Total Partnership loans outstanding $ 341 $ 360 |
Net Capital Requirements (Table
Net Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Brokers And Dealers [Abstract] | |
Partnership's Capital Figures for U.S. and Canada Broker-Dealer Subsidiaries | The following table shows the Partnership’s capital figures for its U.S. and Canada broker-dealer subsidiaries as of December 31, 2020 and 2019: 2020 2019 U.S.: Net capital $ 1,306 $ 1,244 Net capital in excess of the minimum required $ 1,248 $ 1,188 Net capital as a percentage of aggregate debit items 45.0 % 44.2 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 23.1 % 26.4 % Canada: Regulatory risk-adjusted capital $ 56 $ 40 Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC $ 47 $ 38 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Financial Information for Partnership's Reportable Segments | The following table shows financial information for the Partnership’s reportable segments for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Net revenue: U.S. $ 9,805 $ 9,127 $ 8,233 Canada 258 242 236 Total net revenue $ 10,063 $ 9,369 $ 8,469 Net interest and dividends revenue: U.S. $ 99 $ 249 $ 228 Canada 6 10 9 Total net interest and dividends revenue $ 105 $ 259 $ 237 Pre-variable income: U.S. $ 2,673 $ 2,194 $ 1,972 Canada 26 16 16 Total pre-variable income $ 2,699 $ 2,210 $ 1,988 Variable compensation: U.S. $ 1,385 $ 1,094 $ 975 Canada 29 24 23 Total variable compensation $ 1,414 $ 1,118 $ 998 Income (loss) before allocations to partners: U.S. $ 1,288 $ 1,100 $ 997 Canada (3 ) (8 ) (7 ) Total income before allocations to partners $ 1,285 $ 1,092 $ 990 Capital expenditures: U.S. $ 126 $ 170 $ 102 Canada 3 6 3 Total capital expenditures $ 129 $ 176 $ 105 Depreciation and amortization: U.S. $ 123 $ 113 $ 92 Canada 2 2 2 Total depreciation and amortization $ 125 $ 115 $ 94 Total assets at year end: U.S. $ 27,258 $ 18,577 $ 15,187 Canada 1,062 740 628 Total assets $ 28,320 $ 19,317 $ 15,815 Financial advisors at year end: U.S. 18,321 17,830 16,797 Canada 904 874 818 Total financial advisors 19,225 18,704 17,615 |
Quarterly Information (Tables)
Quarterly Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Information | 2020 Quarters Ended Mar 27 Jun 26 Sep 25 Dec 31 Net revenue $ 2,491 $ 2,325 $ 2,527 $ 2,720 Income before allocations to partners $ 303 $ 288 $ 316 $ 378 Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding $ 34.90 $ 33.10 $ 36.36 $ 43.45 2019 Quarters Ended Mar 29 Jun 28 Sep 27 Dec 31 Net revenue $ 2,190 $ 2,319 $ 2,367 $ 2,493 Income before allocations to partners $ 241 $ 285 $ 281 $ 285 Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding $ 29.20 $ 34.55 $ 33.93 $ 34.54 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2020 and 2019: Gross Net amounts Gross amounts not offset offset in the presented in the Consolidated Gross Consolidated Consolidated Statements of Financial amounts of Statements of Statements Condition recognized Financial Financial Financial Securities assets Condition Condition instruments collateral (1) Net 2020 $ 1,714 — 1,714 — (1,714 ) $ — 2019 $ 1,693 — 1,693 — (1,693 ) $ — (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) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following table shows supplemental cash flow information for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Cash paid for interest $ 103 $ 157 $ 125 Cash paid for taxes $ 11 $ 10 $ 10 Non-cash activities: Issuance of general partnership interests through partnership loans in current year $ 163 $ 164 $ 170 Repayment of partnership loans through distributions from partnership capital in current year $ 182 $ 136 $ 135 Declared distributions for retired partnership capital in current year but unpaid at year end (1) $ 145 $ 113 $ 97 (1) Declared distributions for retired Partnership capital are included in the accounts payable, accrued expenses and other line of the Consolidated Statements of Financial Condition. |
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 for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Cash and cash equivalents $ 1,125 $ 1,014 $ 1,498 Cash and investments segregated under federal regulations 17,918 10,387 8,241 Less: Investments segregated under federal regulations 12,168 3,394 1,002 Total cash, cash equivalents and restricted cash $ 6,875 $ 8,007 $ 8,737 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2020USD ($)SegmentCapital_RepaymentCapitalClass | Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($)Segment | Jan. 01, 2020USD ($) | Dec. 31, 2017USD ($) | |
Basis Of Presentation [Line Items] | |||||
Number of operating segments | Segment | 2 | 2 | 2 | ||
Period for partner's capital redemption in the event of death | 6 months | ||||
Number of annual capital repayments for withdrawal of limited partners | Segment | 3 | ||||
Period to begin repaying capital upon withdrawal for limited partners | 90 days | ||||
Number of annual capital repayments for withdrawal of subordinated limited partners | Capital_Repayment | 6 | ||||
Period to begin repaying capital upon withdrawal for subordinated limited partners | 90 days | ||||
Fair value of level III, assets | $ 0 | $ 0 | |||
Fair value of level III, liabilities | 0 | 0 | |||
Liability for the future payments due to financial advisors | $ 268,000,000 | ||||
Retirement and transition employment agreement term | 5 years | ||||
Retirement transition plan employment term | 2 years | ||||
Retirement transition plan non-compete term | 3 years | ||||
Retirement transition plan compensation paid term | 4 years | ||||
Retirement transition plan accrued future payments | $ 109,000,000 | 102,000,000 | |||
Retirement transition plan accrued future payments expected to be paid in 2021 | 52,000,000 | ||||
Net income | $ 0 | $ 0 | $ 0 | ||
Number of classes of capital | CapitalClass | 3 | ||||
Limited partnership's minimum annual return rate | 7.50% | 7.50% | 7.50% | ||
Impact of new accounting standards on opening partnership capital | $ 3,589,000,000 | $ 3,364,000,000 | $ 2,855,000,000 | $ 2,795,000,000 | |
Accounting Standards Update 2016-13 [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Impact of new accounting standards on opening partnership capital | $ 0 | ||||
Building [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Equipment, property and improvements estimated useful lives | 30 years | ||||
Branch Office Space [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Lessee, operating lease, description | The Partnership leases branch office space under numerous operating leases from non-affiliates and financial advisors. Branch offices are generally leased for terms of five years and generally contain a renewal option. | ||||
Lessee, operating lease term of contract | 5 years | ||||
Lessee Operating Lease Home Office Spaces [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Lessee, operating lease, description | The Partnership also leases home office spaces and land from non-affiliates with terms ranging from 12 to 30 years. | ||||
Minimum [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Retirement transition plan compensation expense term | 1 year | ||||
Minimum [Member] | Equipment [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Equipment, property and improvements estimated useful lives | 3 years | ||||
Minimum [Member] | Lessee Operating Lease Home Office Spaces [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Lessee, operating lease term of contract | 12 years | ||||
Maximum [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Retirement transition plan compensation expense term | 2 years | ||||
Retirement transition plan compensation on transitioned assets term | 4 years | ||||
Maximum [Member] | Equipment [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Equipment, property and improvements estimated useful lives | 10 years | ||||
Maximum [Member] | Lessee Operating Lease Home Office Spaces [Member] | |||||
Basis Of Presentation [Line Items] | |||||
Lessee, operating lease term of contract | 30 years |
Current Expected Credit Losses
Current Expected Credit Losses - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 01, 2021 | Dec. 31, 2019 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Collateral held for margin loans | $ 4,035,000,000 | $ 3,915,000,000 | |
Maximum percentage of margin loan balance compared to value of collateral securities in accordance with the Partnership's policy | 65.00% | ||
Expected credit loss for margin loans | $ 0 | 0 | |
Historical loss on partnership loans | 0 | ||
Expected credit loss on partnership loans | 0 | 0 | |
Expected credit loss for receivables from revenue contracts with customers | $ 0 | 0 | |
United States [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 102.00% | 102.00% | |
Canada [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 100.00% | 100.00% | |
Minimum [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Term of receivables from revenue from contracts with customers | 30 days | ||
Maximum [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Term of receivables from revenue from contracts with customers | 90 days | ||
Securities Purchase Agreement [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Fair value of collateral related to resell agreements | $ 1,743,000,000 | $ 1,724,000,000 | |
Fair value of collateral | $ 0 | $ 0 | |
Securities Purchase Agreement [Member] | United States [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 102.00% | ||
Securities Purchase Agreement [Member] | Canada [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 100.00% | ||
Securities Purchase Agreement [Member] | Minimum [Member] | United States [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 102.00% | ||
Securities Purchase Agreement [Member] | Minimum [Member] | Canada [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 100.00% |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee Disclosure [Abstract] | |||
Cash paid for operating leases | $ 306 | $ 283 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 328 | $ 360 | |
Weighted average remaining lease term in years | 4 years | 4 years | |
Weighted average discount rate | 2.60% | 3.20% | |
Operating lease, cost | $ 304 | $ 280 | |
Variable lease costs not included in the lease liability | 57 | 55 | |
Total lease cost | $ 360 | $ 335 | |
Rent and other lease-related expenses | $ 305 |
Leases - Schedule of Future Und
Leases - Schedule of Future Undiscounted Cash Outflows for Operating Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee Disclosure [Abstract] | ||
2021 | $ 300 | $ 283 |
2022 | 247 | 239 |
2023 | 190 | 183 |
2024 | 125 | 128 |
2025 | 65 | 65 |
Thereafter | 60 | 63 |
Total lease payments | 987 | 961 |
Less: Interest | 49 | 63 |
Lease liabilities | $ 938 | $ 898 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Customer | Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($)Customer | |
Disaggregation Of Revenue [Line Items] | |||
Receivable from clients balance | $ | $ 563 | $ 470 | $ 377 |
Number of customers | Customer | 1 | 1 | 1 |
Sales Revenue Net [Member] | Customer [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 14.00% | 14.00% |
Revenue - Schedule of Partnersh
Revenue - Schedule of Partnership's Disaggregated Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 31, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | $ 9,894 | $ 9,033 | $ 8,215 | ||||||||
Net interest and dividends and other revenue | 169 | 336 | 254 | ||||||||
Net revenue | $ 2,720 | $ 2,527 | $ 2,325 | $ 2,491 | $ 2,493 | $ 2,367 | $ 2,319 | $ 2,190 | 10,063 | 9,369 | 8,469 |
United States [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 9,656 | 8,811 | 8,002 | ||||||||
Net interest and dividends and other revenue | 149 | 316 | 231 | ||||||||
Net revenue | 9,805 | 9,127 | 8,233 | ||||||||
Canada [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 238 | 222 | 213 | ||||||||
Net interest and dividends and other revenue | 20 | 20 | 23 | ||||||||
Net revenue | 258 | 242 | 236 | ||||||||
Asset-based Fee Revenue [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 7,515 | 6,778 | 6,075 | ||||||||
Asset-based Fee Revenue [Member] | Advisory Programs Fees [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 5,537 | 4,810 | 4,214 | ||||||||
Asset-based Fee Revenue [Member] | Service Fees [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 1,387 | 1,329 | 1,305 | ||||||||
Asset-based Fee Revenue [Member] | Other Asset-based Fees [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 591 | 639 | 556 | ||||||||
Asset-based Fee Revenue [Member] | United States [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 7,341 | 6,620 | 5,930 | ||||||||
Asset-based Fee Revenue [Member] | United States [Member] | Advisory Programs Fees [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 5,452 | 4,740 | 4,156 | ||||||||
Asset-based Fee Revenue [Member] | United States [Member] | Service Fees [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 1,298 | 1,241 | 1,218 | ||||||||
Asset-based Fee Revenue [Member] | United States [Member] | Other Asset-based Fees [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 591 | 639 | 556 | ||||||||
Asset-based Fee Revenue [Member] | Canada [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 174 | 158 | 145 | ||||||||
Asset-based Fee Revenue [Member] | Canada [Member] | Advisory Programs Fees [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 85 | 70 | 58 | ||||||||
Asset-based Fee Revenue [Member] | Canada [Member] | Service Fees [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 89 | 88 | 87 | ||||||||
Account and Activity Fee Revenue [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 660 | 674 | 678 | ||||||||
Account and Activity Fee Revenue [Member] | Shareholder Accounting Services Fees [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 424 | 432 | 432 | ||||||||
Account and Activity Fee Revenue [Member] | Other Account and Activity Fee Revenue [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 236 | 242 | 246 | ||||||||
Account and Activity Fee Revenue [Member] | United States [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 648 | 661 | 664 | ||||||||
Account and Activity Fee Revenue [Member] | United States [Member] | Shareholder Accounting Services Fees [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 424 | 432 | 432 | ||||||||
Account and Activity Fee Revenue [Member] | United States [Member] | Other Account and Activity Fee Revenue [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 224 | 229 | 232 | ||||||||
Account and Activity Fee Revenue [Member] | Canada [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 12 | 13 | 14 | ||||||||
Account and Activity Fee Revenue [Member] | Canada [Member] | Other Account and Activity Fee Revenue [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 12 | 13 | 14 | ||||||||
Total Fee Revenue [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 8,175 | 7,452 | 6,753 | ||||||||
Total Fee Revenue [Member] | United States [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 7,989 | 7,281 | 6,594 | ||||||||
Total Fee Revenue [Member] | Canada [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 186 | 171 | 159 | ||||||||
Trade Revenue [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 1,719 | 1,581 | 1,462 | ||||||||
Trade Revenue [Member] | Commissions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 1,660 | 1,475 | 1,320 | ||||||||
Trade Revenue [Member] | Principal Transactions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 59 | 106 | 142 | ||||||||
Trade Revenue [Member] | United States [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 1,667 | 1,530 | 1,408 | ||||||||
Trade Revenue [Member] | United States [Member] | Commissions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 1,611 | 1,428 | 1,271 | ||||||||
Trade Revenue [Member] | United States [Member] | Principal Transactions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 56 | 102 | 137 | ||||||||
Trade Revenue [Member] | Canada [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 52 | 51 | 54 | ||||||||
Trade Revenue [Member] | Canada [Member] | Commissions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | 49 | 47 | 49 | ||||||||
Trade Revenue [Member] | Canada [Member] | Principal Transactions [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net revenue | $ 3 | $ 4 | $ 5 |
Payable to Clients - Additional
Payable to Clients - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Payable To Clients [Abstract] | |||
Interest percentage paid on client credits | 0.01% | ||
Total interest paid to clients | $ 9 | $ 62 | $ 58 |
Receivable from Mutual Funds,_3
Receivable from Mutual Funds, Insurance Companies, and Other - Composition of Partnership's Receivable from Mutual Funds, Insurance Companies and Other (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Brokers And Dealers [Abstract] | |||
Deposit for Canadian retirement accounts | $ 457 | $ 326 | |
Fees from mutual funds and insurance companies | 285 | 291 | $ 278 |
Other receivables | 76 | 44 | |
Total | $ 818 | $ 661 |
Receivable from Mutual Funds,_4
Receivable from Mutual Funds, Insurance Companies, and Other - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | |||
Fees from mutual fund and insurance companies | $ 285 | $ 291 | $ 278 |
Fair Value - Partnership's Fina
Fair Value - Partnership's Financial Assets at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Cash equivalents: | ||
Cash and cash equivalents | $ 161 | |
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 12,151 | |
Investment securities: | ||
Total investment securities | 1,302 | $ 332 |
Inventory securities: | ||
Total inventory securities | 32 | 50 |
Equities [Member] | ||
Investment securities: | ||
Total investment securities | 3 | 1 |
Inventory securities: | ||
Total inventory securities | 19 | 18 |
Corporate Bonds and Notes [Member] | ||
Inventory securities: | ||
Total inventory securities | 2 | 3 |
Government and Agency Obligations [Member] | ||
Investment securities: | ||
Total investment securities | 971 | 3 |
U.S. Treasuries [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 12,051 | 3,394 |
Mutual Funds [Member] | ||
Investment securities: | ||
Total investment securities | 327 | 328 |
Inventory securities: | ||
Total inventory securities | 1 | 2 |
State and Municipal Obligations [Member] | ||
Inventory securities: | ||
Total inventory securities | 10 | 18 |
Certificates of Deposit [Member] | ||
Cash equivalents: | ||
Cash and cash equivalents | 120 | 326 |
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 100 | |
Investment securities: | ||
Total investment securities | 1 | |
Inventory securities: | ||
Total inventory securities | 9 | |
Money Market Funds | ||
Cash equivalents: | ||
Cash and cash equivalents | 41 | |
Level I [Member] | ||
Cash equivalents: | ||
Cash and cash equivalents | 41 | |
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 12,051 | |
Investment securities: | ||
Total investment securities | 1,301 | 332 |
Inventory securities: | ||
Total inventory securities | 20 | 20 |
Level I [Member] | Equities [Member] | ||
Investment securities: | ||
Total investment securities | 3 | 1 |
Inventory securities: | ||
Total inventory securities | 19 | 18 |
Level I [Member] | Government and Agency Obligations [Member] | ||
Investment securities: | ||
Total investment securities | 971 | 3 |
Level I [Member] | U.S. Treasuries [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 12,051 | 3,394 |
Level I [Member] | Mutual Funds [Member] | ||
Investment securities: | ||
Total investment securities | 327 | 328 |
Inventory securities: | ||
Total inventory securities | 1 | 2 |
Level I [Member] | Money Market Funds | ||
Cash equivalents: | ||
Cash and cash equivalents | 41 | |
Level II [Member] | ||
Cash equivalents: | ||
Cash and cash equivalents | 120 | |
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 100 | |
Investment securities: | ||
Total investment securities | 1 | |
Inventory securities: | ||
Total inventory securities | 12 | 30 |
Level II [Member] | Corporate Bonds and Notes [Member] | ||
Inventory securities: | ||
Total inventory securities | 2 | 3 |
Level II [Member] | State and Municipal Obligations [Member] | ||
Inventory securities: | ||
Total inventory securities | 10 | 18 |
Level II [Member] | Certificates of Deposit [Member] | ||
Cash equivalents: | ||
Cash and cash equivalents | 120 | 326 |
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 100 | |
Investment securities: | ||
Total investment securities | $ 1 | |
Inventory securities: | ||
Total inventory securities | $ 9 |
Equipment, Property and Impro_3
Equipment, Property and Improvements - Composition of Partnership's Equipment, Property and Improvements (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Equipment, property and improvements, at cost | $ 1,856 | $ 1,768 |
Less: accumulated depreciation and amortization | 1,236 | 1,152 |
Equipment, property and improvements, net | 620 | 616 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, property and improvements, at cost | 1,050 | 1,012 |
Equipment, Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, property and improvements, at cost | 763 | 713 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, property and improvements, at cost | $ 43 | $ 43 |
Equipment, Property and Impro_4
Equipment, Property and Improvements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization expense | $ 125 | $ 115 | $ 94 |
Purchase of equipment, property and improvements, net | $ 129 | $ 176 | $ 105 |
Lines of Credit - Composition o
Lines of Credit - Composition of Partnership's Aggregate Bank Lines of Credit (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 28, 2018 |
Line Of Credit Facility [Line Items] | |||
Line of credit facility | $ 890,000,000 | $ 790,000,000 | |
2018 Credit Facility [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility | 500,000,000 | 500,000,000 | $ 500,000,000 |
Uncommitted Secured Credit Facilities [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility | $ 390,000,000 | $ 290,000,000 |
Lines of Credit - Additional In
Lines of Credit - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 28, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Line Of Credit Facility [Line Items] | |||
Line of credit facility | $ 890,000,000 | $ 790,000,000 | |
2018 Credit Facility [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 |
Maximum leverage ratio required to be maintained by partnership | 35.00% | 35.00% | 35.00% |
Required minimum partnership capital, net of reserve for anticipated withdrawals and partnership loans | $ 1,884,000,000 | $ 1,884,000,000 | $ 1,884,000,000 |
Amount outstanding under credit facility | 0 | 0 | |
Partnership draws against lines of credit | 0 | 0 | |
2018 Credit Facility [Member] | Edward D. Jones & Co., L. P [Member] | |||
Line Of Credit Facility [Line Items] | |||
Minimum tangible net worth | $ 1,344,000,000 | $ 1,344,000,000 | $ 1,344,000,000 |
Minimum regulatory net capital percentage of debit items | 6.00% | 6.00% | 6.00% |
Uncommitted Secured Credit Facilities [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility | $ 390,000,000 | $ 290,000,000 | |
Amount outstanding under credit facility | 0 | 0 | |
Partnership draws against lines of credit | $ 0 | $ 0 |
Partnership Capital Subject t_3
Partnership Capital Subject to Mandatory Redemption - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 29, 2021 | Jan. 31, 2020 | Jan. 25, 2019 | Jan. 12, 2018 | Dec. 31, 2017 | |
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 | $ 341 | $ 360 | $ 332 | $ 297 | ||||
Interest income from outstanding amount of general partner loan | $ 14 | $ 21 | $ 17 | |||||
Limited partnership's minimum annual return rate | 7.50% | 7.50% | 7.50% | |||||
Limited partnership's minimum return, value | $ 93 | $ 94 | $ 67 | |||||
2018 Limited Partnership Offering [Member] | ||||||||
Partners Capital Account [Line Items] | ||||||||
Limited partnership amount registered | $ 450 | |||||||
Limited partnership interests issued | $ 1 | $ 380 | ||||||
Remaining limited partnership interests that may be issued | $ 66 | |||||||
2018 Limited Partnership Offering [Member] | Subsequent Event [Member] | ||||||||
Partners Capital Account [Line Items] | ||||||||
Limited partnership interests issued | $ 3 |
Partnership Capital Subject t_4
Partnership Capital Subject to Mandatory Redemption - Roll Forward of Outstanding Partnership Loans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Partners Capital Notes [Abstract] | |||
Partnership loans outstanding at beginning of year | $ 360 | $ 332 | $ 297 |
Partnership loans issued during the year | 163 | 164 | 170 |
Repayment of Partnership loans during the year | (182) | (136) | (135) |
Partnership loans outstanding at end of year | $ 341 | $ 360 | $ 332 |
Net Capital Requirements - Addi
Net Capital Requirements - Additional Information (Detail) - Edward D. Jones & Co., L. P [Member] | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Net Capital Requirements [Line Items] | |
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 Capital Figures for U.S. and Canada Broker-Dealer Subsidiaries (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Edward D. Jones & Co., L. P [Member] | ||
Regulatory Capital Requirements | ||
Net capital | $ 1,306 | $ 1,244 |
Net capital in excess of the minimum required | $ 1,248 | $ 1,188 |
Net capital as a percentage of aggregate debit items | 45.00% | 44.20% |
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items | 23.10% | 26.40% |
Canada [Member] | ||
Regulatory Capital Requirements | ||
Regulatory risk-adjusted capital | $ 56 | $ 40 |
Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC | $ 47 | $ 38 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Partnership's tax basis of assets and liabilities exceeds book basis | $ 278 | $ 303 |
Income tax examination, Likelihood of unfavorable settlement | greater than fifty percent | |
Uncertain tax positions | $ 0 | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Partnership's contribution to compensation plans | $ 249 | $ 213 | $ 197 |
Partnership's contribution to compensation plans by applying mandatory contributions withheld from service partners | $ 36 | $ 32 |
Commitments, Guarantees and R_2
Commitments, Guarantees and Risks - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Termination fees | $ 103 |
Expiration period of termination fee | 3 years |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Current estimated possible loss | $ 18 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting [Abstract] | |||
Number of operating segments | 2 | 2 | 2 |
Number of reportable segments | 2 |
Segment Information - Financial
Segment Information - Financial Information for Partnership's Reportable Segments (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($)Advisor | Sep. 25, 2020USD ($) | Jun. 26, 2020USD ($) | Mar. 27, 2020USD ($) | Dec. 31, 2019USD ($)Advisor | Sep. 27, 2019USD ($) | Jun. 28, 2019USD ($) | Mar. 29, 2019USD ($) | Dec. 31, 2020USD ($)Advisor | Dec. 31, 2019USD ($)Advisor | Dec. 31, 2018USD ($)Advisor | |
Net revenue: | |||||||||||
Total net revenue | $ 2,720 | $ 2,527 | $ 2,325 | $ 2,491 | $ 2,493 | $ 2,367 | $ 2,319 | $ 2,190 | $ 10,063 | $ 9,369 | $ 8,469 |
Net interest and dividends revenue: | |||||||||||
Total net interest and dividends revenue | 105 | 259 | 237 | ||||||||
Pre-variable income: | |||||||||||
Total pre-variable income | 2,699 | 2,210 | 1,988 | ||||||||
Variable compensation: | |||||||||||
Total variable compensation | 1,414 | 1,118 | 998 | ||||||||
Income (loss) before allocations to partners: | |||||||||||
Total income before allocations to partners | 378 | $ 316 | $ 288 | $ 303 | 285 | $ 281 | $ 285 | $ 241 | 1,285 | 1,092 | 990 |
Capital expenditures: | |||||||||||
Total capital expenditures | 129 | 176 | 105 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 125 | 115 | 94 | ||||||||
Total assets at year end: | |||||||||||
Total assets | $ 28,320 | $ 19,317 | $ 28,320 | $ 19,317 | $ 15,815 | ||||||
Financial advisors at year end: | |||||||||||
Total financial advisors | Advisor | 19,225 | 18,704 | 19,225 | 18,704 | 17,615 | ||||||
United States [Member] | |||||||||||
Net revenue: | |||||||||||
Total net revenue | $ 9,805 | $ 9,127 | $ 8,233 | ||||||||
Net interest and dividends revenue: | |||||||||||
Total net interest and dividends revenue | 99 | 249 | 228 | ||||||||
Pre-variable income: | |||||||||||
Total pre-variable income | 2,673 | 2,194 | 1,972 | ||||||||
Variable compensation: | |||||||||||
Total variable compensation | 1,385 | 1,094 | 975 | ||||||||
Income (loss) before allocations to partners: | |||||||||||
Total income before allocations to partners | 1,288 | 1,100 | 997 | ||||||||
Capital expenditures: | |||||||||||
Total capital expenditures | 126 | 170 | 102 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 123 | 113 | 92 | ||||||||
Total assets at year end: | |||||||||||
Total assets | $ 27,258 | $ 18,577 | $ 27,258 | $ 18,577 | $ 15,187 | ||||||
Financial advisors at year end: | |||||||||||
Total financial advisors | Advisor | 18,321 | 17,830 | 18,321 | 17,830 | 16,797 | ||||||
Canada [Member] | |||||||||||
Net revenue: | |||||||||||
Total net revenue | $ 258 | $ 242 | $ 236 | ||||||||
Net interest and dividends revenue: | |||||||||||
Total net interest and dividends revenue | 6 | 10 | 9 | ||||||||
Pre-variable income: | |||||||||||
Total pre-variable income | 26 | 16 | 16 | ||||||||
Variable compensation: | |||||||||||
Total variable compensation | 29 | 24 | 23 | ||||||||
Income (loss) before allocations to partners: | |||||||||||
Total income before allocations to partners | (3) | (8) | (7) | ||||||||
Capital expenditures: | |||||||||||
Total capital expenditures | 3 | 6 | 3 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 2 | 2 | 2 | ||||||||
Total assets at year end: | |||||||||||
Total assets | $ 1,062 | $ 740 | $ 1,062 | $ 740 | $ 628 | ||||||
Financial advisors at year end: | |||||||||||
Total financial advisors | Advisor | 904 | 874 | 904 | 874 | 818 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Rent and other lease-related expenses | $ 305,000,000 | ||
Lease right-of-use assets | $ 915,000,000 | $ 876,000,000 | |
Lease liabilities | 938,000,000 | 898,000,000 | |
Passport Research, Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Total fees waived | $ 7,000,000 | 0 | 0 |
Financial Advisor [Member] | Edward D. Jones & Co., L. P [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of branch office space leased from its financial advisors | 11.00% | ||
Lease cost | $ 35,000,000 | 34,000,000 | |
Rent and other lease-related expenses | 32,000,000 | ||
Lease right-of-use assets | 89,000,000 | 83,000,000 | |
Lease liabilities | 89,000,000 | 83,000,000 | |
BB Trust [Member] | Olive Street [Member] | |||
Related Party Transaction [Line Items] | |||
Expense paid to sub-advisers | 174,000,000 | 147,000,000 | 123,000,000 |
Investment advisory fee revenue | 174,000,000 | 147,000,000 | 123,000,000 |
Edward Jones Money Market Fund [Member] | Edward D. Jones & Co., L. P [Member] | |||
Related Party Transaction [Line Items] | |||
Total fees earned | 46,000,000 | 138,000,000 | 113,000,000 |
Total fees voluntarily waived to limit fund expenses | 133,000,000 | 30,000,000 | 30,000,000 |
Edward Jones Money Market Fund [Member] | Passport Research, Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Investment advisory fee revenue | $ 56,000,000 | $ 58,000,000 | $ 48,000,000 |
Quarterly Information - Summary
Quarterly Information - Summary of Quarterly Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 31, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net revenue | $ 2,720 | $ 2,527 | $ 2,325 | $ 2,491 | $ 2,493 | $ 2,367 | $ 2,319 | $ 2,190 | $ 10,063 | $ 9,369 | $ 8,469 |
Income before allocations to partners | $ 378 | $ 316 | $ 288 | $ 303 | $ 285 | $ 281 | $ 285 | $ 241 | $ 1,285 | $ 1,092 | $ 990 |
Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding | $ 43.45 | $ 36.36 | $ 33.10 | $ 34.90 | $ 34.54 | $ 33.93 | $ 34.55 | $ 29.20 | $ 147.81 | $ 132.22 | $ 128.13 |
Quarterly Information - Summa_2
Quarterly Information - Summary of Quarterly Information (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 31, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Limited partnership interest value | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting Securities Purchased Under Agreements To Resell [Abstract] | ||
Securities purchased under agreements to resell, Gross amounts of recognized assets | $ 1,714 | $ 1,693 |
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 | 1,714 | 1,693 |
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 | (1,714) | (1,693) |
Securities purchased under agreements to resell, Net amount | $ 0 | $ 0 |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Parenthetical) (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash paid for interest | $ 103 | $ 157 | $ 125 |
Cash paid for taxes | 11 | 10 | 10 |
Non-cash activities: | |||
Issuance of general partnership interests through partnership loans in current year | 163 | 164 | 170 |
Repayment of partnership loans through distributions from partnership capital in current year | 182 | 136 | 135 |
Declared distributions for retired partnership capital in current year but unpaid at year end | $ 145 | $ 113 | $ 97 |
Cash Flow Information - Sched_2
Cash Flow Information - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash Balance (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Supplemental Cash Flow Elements [Abstract] | |||
Cash and cash equivalents | $ 1,125 | $ 1,014 | $ 1,498 |
Cash and investments segregated under federal regulations | 17,918 | 10,387 | 8,241 |
Less: Investments segregated under federal regulations | 12,168 | 3,394 | 1,002 |
Total cash, cash equivalents and restricted cash | $ 6,875 | $ 8,007 | $ 8,737 |
Schedule I - Condensed Statemen
Schedule I - Condensed Statements of Financial Condition (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS: | ||||
Cash and cash equivalents | $ 1,125 | $ 1,014 | $ 1,498 | |
Investment securities | 1,302 | 332 | ||
Other assets | 149 | 156 | ||
TOTAL ASSETS | 28,320 | 19,317 | 15,815 | |
LIABILITIES: | ||||
Accounts payable, accrued expenses and other | 352 | 351 | ||
Partnership capital subject to mandatory redemption | 3,589 | 3,364 | $ 2,855 | $ 2,795 |
TOTAL LIABILITIES | 28,320 | 19,317 | ||
Parent Company [Member] | ||||
ASSETS: | ||||
Cash and cash equivalents | 323 | 320 | ||
Investment securities | 3 | 2 | ||
Investment in subsidiaries | 3,356 | 3,109 | ||
Other assets | 55 | 49 | ||
TOTAL ASSETS | 3,737 | 3,480 | ||
LIABILITIES: | ||||
Accounts payable, accrued expenses and other | 148 | 116 | ||
Partnership capital subject to mandatory redemption | 3,589 | 3,364 | ||
TOTAL LIABILITIES | $ 3,737 | $ 3,480 |
Schedule I - Condensed Statem_2
Schedule I - Condensed Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 31, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net revenue: | |||||||||||
Total revenue | $ 10,165 | $ 9,526 | $ 8,594 | ||||||||
Interest expense | 102 | 157 | 125 | ||||||||
Net revenue | $ 2,720 | $ 2,527 | $ 2,325 | $ 2,491 | $ 2,493 | $ 2,367 | $ 2,319 | $ 2,190 | 10,063 | 9,369 | 8,469 |
OPERATING EXPENSES | |||||||||||
Compensation and benefits | 7,186 | 6,538 | 5,993 | ||||||||
Other operating expenses | 244 | 424 | 334 | ||||||||
Total operating expenses | 8,778 | 8,277 | 7,479 | ||||||||
Income before allocations to partners | $ 378 | $ 316 | $ 288 | $ 303 | $ 285 | $ 281 | $ 285 | $ 241 | 1,285 | 1,092 | 990 |
Allocations to partners | (1,285) | (1,092) | (990) | ||||||||
NET INCOME | 0 | 0 | 0 | ||||||||
Parent Company [Member] | |||||||||||
Net revenue: | |||||||||||
Total revenue | 3,138 | 2,504 | 1,091 | ||||||||
Interest expense | 93 | 94 | 67 | ||||||||
Net revenue | 3,045 | 2,410 | 1,024 | ||||||||
OPERATING EXPENSES | |||||||||||
Compensation and benefits | 1,759 | 1,317 | 33 | ||||||||
Other operating expenses | 1 | 1 | 1 | ||||||||
Total operating expenses | 1,760 | 1,318 | 34 | ||||||||
Income before allocations to partners | 1,285 | 1,092 | 990 | ||||||||
Allocations to partners | (1,285) | (1,092) | (990) | ||||||||
NET INCOME | 0 | 0 | 0 | ||||||||
Parent Company [Member] | Subsidiary Earnings [Member] | |||||||||||
Net revenue: | |||||||||||
Total revenue | 1,271 | 1,064 | 970 | ||||||||
Parent Company [Member] | Management Fee Income [Member] | |||||||||||
Net revenue: | |||||||||||
Total revenue | 1,852 | 1,411 | 99 | ||||||||
Parent Company [Member] | Other [Member] | |||||||||||
Net revenue: | |||||||||||
Total revenue | $ 15 | $ 29 | $ 22 |
Schedule I - Condensed Statem_3
Schedule I - Condensed Statements of Cash Flow (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 25, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 31, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ 0 | $ 0 | $ 0 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Income before allocations to partners | $ 378 | $ 316 | $ 288 | $ 303 | $ 285 | $ 281 | $ 285 | $ 241 | 1,285 | 1,092 | 990 |
Changes in assets and liabilities: | |||||||||||
Other assets | 7 | (14) | (14) | ||||||||
Accounts payable and accrued expenses | (31) | 47 | 26 | ||||||||
Net cash provided by operating activities | 25 | 13 | 1,138 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Issuance of partnership interests | 50 | 432 | 60 | ||||||||
Redemption of partnership interests | (214) | (216) | (199) | ||||||||
Distributions from partnership capital | (864) | (783) | (694) | ||||||||
Net cash used in financing activities | (1,028) | (567) | (833) | ||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,132) | (730) | 200 | ||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||
Beginning of year | 8,007 | 8,737 | 8,007 | 8,737 | 8,537 | ||||||
End of year | 6,875 | 8,007 | 6,875 | 8,007 | 8,737 | ||||||
NON-CASH ACTIVITIES: | |||||||||||
Declared distributions for retired partnership capital in current year but unpaid at year end | 145 | 113 | 97 | ||||||||
Parent Company [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | 0 | 0 | 0 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Income before allocations to partners | 1,285 | 1,092 | 990 | ||||||||
Changes in assets and liabilities: | |||||||||||
Investment in subsidiaries | (1) | (513) | (134) | ||||||||
Investment securities | (247) | 5 | 0 | ||||||||
Other assets | (6) | (16) | (14) | ||||||||
Accounts payable and accrued expenses | 0 | 1 | 1 | ||||||||
Net cash provided by operating activities | 1,031 | 569 | 843 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Issuance of partnership interests | 50 | 432 | 60 | ||||||||
Redemption of partnership interests | (214) | (216) | (199) | ||||||||
Distributions from partnership capital | (864) | (783) | (694) | ||||||||
Net cash used in financing activities | (1,028) | (567) | (833) | ||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | 3 | 2 | 10 | ||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||
Beginning of year | $ 320 | $ 318 | 320 | 318 | 308 | ||||||
End of year | $ 323 | $ 320 | 323 | 320 | 318 | ||||||
NON-CASH ACTIVITIES: | |||||||||||
Issuance of general partnership interests through partnership loans in current year | 163 | 164 | 170 | ||||||||
Repayment of partnership loans through distributions from partnership capital in current year | 182 | 136 | 135 | ||||||||
Declaration of distributions from subsidiary in current year but received after year end | 474 | 428 | 56 | ||||||||
Declared distributions for retired partnership capital in current year but unpaid at year end | $ 145 | $ 109 | $ 97 |
Revenue and Expense - Additiona
Revenue and Expense - Additional Information (Details) - Parent Company [Member] - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Management fee income | $ 1.7 | $ 1.3 |
Compensation expense | $ 1.7 | $ 1.3 |