Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MKTX | ||
Entity Registrant Name | MARKETAXESS HOLDINGS INC | ||
Entity Central Index Key | 1,278,021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 37,629,246 | ||
Entity Public Float | $ 7.3 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 167,014 | $ 168,243 |
Investments, at fair value | 239,521 | 194,404 |
Accounts receivable, net of allowance of $178 and $82 as of December 31, 2017 and 2016, respectively | 52,636 | 50,668 |
Goodwill and intangible assets, net of accumulated amortization | 63,059 | 63,443 |
Furniture, equipment, leasehold improvements and capitalized software, net of accumulated depreciation and amortization | 38,548 | 31,104 |
Prepaid expenses and other assets | 18,717 | 11,618 |
Deferred tax assets, net | 1,737 | 8,562 |
Total assets | 581,232 | 528,042 |
Liabilities | ||
Accrued employee compensation | 36,502 | 34,783 |
Income and other tax liabilities | 13,061 | 7,582 |
Deferred revenue | 2,660 | 2,515 |
Accounts payable, accrued expenses and other liabilities | 14,241 | 15,149 |
Total liabilities | 66,464 | 60,029 |
Commitments and Contingencies (Note 12) | ||
Stockholders' equity | ||
Additional paid-in capital | 331,081 | 342,311 |
Treasury stock - Common stock voting, at cost, 2,781,323 and 2,562,585 shares as of December 31, 2017 and 2016, respectively | (159,791) | (117,330) |
Retained earnings | 353,583 | 255,140 |
Accumulated other comprehensive loss | (10,226) | (12,228) |
Total stockholders' equity | 514,768 | 468,013 |
Total liabilities and stockholders' equity | 581,232 | 528,042 |
Undefined Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock | ||
Series A Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock | ||
Voting Common Stock [Member] | ||
Stockholders' equity | ||
Common stock | $ 121 | $ 120 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for accounts receivable | $ 178 | $ 82 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 4,855,000 | 4,855,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.003 | $ 0.003 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 40,402,059 | 40,106,360 |
Common stock, shares outstanding | 37,620,736 | 37,543,775 |
Treasury stock, shares | 2,781,323 | 2,562,585 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 110,000 | 110,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock Non-Voting [Member] | ||
Common stock, par value | $ 0.003 | $ 0.003 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Commissions | $ 355,282 | $ 332,307 | $ 266,221 |
Information services | 25,807 | 23,269 | 22,585 |
Post-trade services | 11,090 | 10,812 | 11,648 |
Investment income | 3,619 | 2,137 | 905 |
Other | 1,673 | 1,394 | 1,739 |
Total revenues | 397,471 | 369,919 | 303,098 |
Expenses | |||
Employee compensation and benefits | 102,751 | 96,785 | 83,856 |
Depreciation and amortization | 19,274 | 17,838 | 18,542 |
Technology and communications | 20,048 | 17,275 | 15,916 |
Professional and consulting fees | 19,367 | 17,175 | 13,043 |
Occupancy | 6,125 | 4,681 | 4,685 |
Marketing and advertising | 9,762 | 8,934 | 6,148 |
Clearing costs | 5,797 | 6,060 | 3,313 |
General and administrative | 12,579 | 9,569 | 9,695 |
Total expenses | 195,703 | 178,317 | 155,198 |
Income before income taxes | 201,768 | 191,602 | 147,900 |
Provision for income taxes | 53,679 | 65,430 | 51,863 |
Net income | $ 148,089 | $ 126,172 | $ 96,037 |
Net income per common share | |||
Basic | $ 4.02 | $ 3.42 | $ 2.62 |
Diluted | 3.89 | 3.34 | 2.55 |
Cash dividends declared per common share | $ 1.32 | $ 1.04 | $ 0.80 |
Weighted average shares outstanding | |||
Basic | 36,864 | 36,844 | 36,690 |
Diluted | 38,038 | 37,738 | 37,637 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 148,089 | $ 126,172 | $ 96,037 |
Net cumulative translation adjustment and foreign currency exchange hedge, net of tax of $(2,807), $5,407 and $(258), respectively | 2,236 | (7,037) | (512) |
Net unrealized (loss) gain on securities available-for-sale, net of tax of $(39), $24, and $(111), respectively | (234) | 38 | (180) |
Comprehensive income | $ 150,091 | $ 119,173 | $ 95,345 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Foreign currency exchange hedge, tax expense (benefit) | $ (2,807) | $ 5,407 | $ (258) |
Securities available-for-sale, tax expense (benefit) | $ (39) | $ 24 | $ (111) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock Voting [Member] | Additional Paid-In Capital [Member] | Treasury Stock - Common Stock Voting [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 31, 2014 | $ 334,208 | $ 120 | $ 307,059 | $ (70,247) | $ 101,813 | $ (4,537) |
Net income | 96,037 | 96,037 | ||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | (512) | (512) | ||||
Unrealized net gain (loss) on securities available-for-sale, net of tax | (180) | (180) | ||||
Stock-based compensation | 12,519 | 12,519 | ||||
Exercise of stock options | 1,824 | 1 | 1,823 | |||
Withholding tax payments on restricted stock vesting and stock option exercises | (4,496) | (4,496) | ||||
Excess tax benefits from stock-based compensation | 4,310 | 4,310 | ||||
Repurchases of common stock | (23,158) | (23,158) | ||||
Cash dividend on common stock | (29,839) | (29,839) | ||||
Ending Balance at Dec. 31, 2015 | 390,713 | 121 | 321,215 | (93,405) | 168,011 | (5,229) |
Net income | 126,172 | 126,172 | ||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | (7,037) | (7,037) | ||||
Unrealized net gain (loss) on securities available-for-sale, net of tax | 38 | 38 | ||||
Stock-based compensation | 14,511 | 14,511 | ||||
Exercise of stock options | 2,299 | 2,299 | ||||
Withholding tax payments on restricted stock vesting and stock option exercises | (5,173) | (1) | (5,172) | |||
Excess tax benefits from stock-based compensation | 9,458 | 9,458 | ||||
Repurchases of common stock | (23,925) | (23,925) | ||||
Cash dividend on common stock | (39,043) | (39,043) | ||||
Ending Balance at Dec. 31, 2016 | 468,013 | 120 | 342,311 | (117,330) | 255,140 | (12,228) |
Net income | 148,089 | 148,089 | ||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | 2,236 | 2,236 | ||||
Unrealized net gain (loss) on securities available-for-sale, net of tax | (234) | (234) | ||||
Stock-based compensation | 14,421 | 14,421 | ||||
Exercise of stock options | 1,972 | 1 | 1,971 | |||
Withholding tax payments on restricted stock vesting and stock option exercises | (27,691) | (27,691) | ||||
Repurchases of common stock | (42,461) | (42,461) | ||||
Cumulative effect of change in accounting for employee share-based payments | 17 | 69 | (52) | |||
Cash dividend on common stock | (49,594) | (49,594) | ||||
Ending Balance at Dec. 31, 2017 | $ 514,768 | $ 121 | $ 331,081 | $ (159,791) | $ 353,583 | $ (10,226) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income | $ 148,089 | $ 126,172 | $ 96,037 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 19,274 | 17,838 | 18,542 |
Stock-based compensation expense | 14,421 | 14,511 | 12,519 |
Deferred taxes | 6,590 | (2,581) | (2,424) |
Other | 1,953 | 10,628 | 6,359 |
Changes in operating assets and liabilities: | |||
(Increase) in accounts receivable | (2,353) | (10,429) | (6,748) |
(Increase) in prepaid expenses and other assets | (7,039) | (2,125) | (2,662) |
Increase in accrued employee compensation | 1,719 | 5,487 | 3,986 |
Increase (decrease) in income and other tax liabilities | 5,770 | 3,221 | (941) |
Increase (decrease) in deferred revenue | 145 | 203 | (153) |
(Decrease) increase in accounts payable, accrued expenses and other liabilities | (1,614) | 2,344 | (9) |
Net cash provided by operating activities | 168,035 | 89,747 | 124,506 |
Cash flows from investing activities | |||
Proceeds from maturities and sales, available-for-sale investments | 187,794 | 46,347 | 35,248 |
Purchase, available-for-sale investments | (215,831) | (81,438) | (57,175) |
Purchases of furniture, equipment and leasehold improvements | (12,086) | (6,385) | (4,795) |
Capitalization of software development costs | (13,471) | (12,118) | (10,589) |
Other | (59) | 414 | (642) |
Net cash (used in) investing activities | (53,653) | (53,180) | (37,953) |
Cash flows from financing activities | |||
Cash dividend on common stock | (48,888) | (38,495) | (29,534) |
Exercise of stock options | 1,972 | 2,299 | 1,824 |
Withholding tax payments on restricted stock vesting and stock option exercises | (27,691) | (5,173) | (4,496) |
Repurchases of common stock | (42,461) | (23,925) | (23,158) |
Net cash (used in) financing activities | (117,068) | (65,294) | (55,364) |
Effect of exchange rate changes on cash and cash equivalents | 1,457 | (2,758) | (385) |
Cash and cash equivalents | |||
Net (decrease) increase for the period | (1,229) | (31,485) | 30,804 |
Beginning of period | 168,243 | 199,728 | 168,924 |
End of period | 167,014 | 168,243 | 199,728 |
Supplemental cash flow information: | |||
Cash paid during the year for income taxes | 43,997 | 58,268 | $ 50,875 |
Corporate Debt [Member] | |||
Changes in operating assets and liabilities: | |||
(Increase) in trading securities | (17,081) | (74,195) | |
Mutual Funds Held In Rabbi Trust [Member] | |||
Changes in operating assets and liabilities: | |||
(Increase) in trading securities | $ (1,839) | $ (1,327) |
Organization and Principal Busi
Organization and Principal Business Activity | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Principal Business Activity | 1. Organization and Principal Business Activity MarketAxess Holdings Inc. (the “Company” or “MarketAxess”) was incorporated in the State of Delaware on April 11, 2000. Through its subsidiaries, MarketAxess operates a leading electronic trading platform that enables fixed-income market participants to efficiently trade corporate bonds and other types of fixed-income instruments using MarketAxess’ patented trading technology. Over 1,300 institutional investor and broker-dealer firms are active users of the MarketAxess trading platform, accessing global liquidity in U.S. high-grade corporate bonds, emerging markets and high-yield bonds, European bonds, U.S. agency bonds, municipal bonds, credit default swaps and other fixed-income securities. Through its Open Trading™ protocols, MarketAxess executes certain bond transactions between and among institutional investor and broker-dealer clients on a matched principal basis by serving as counterparty to both the buyer and the seller in trades which then settle through third-party clearing brokers. MarketAxess also offers a number of trading-related products and services, including: market data to assist clients with trading decisions; connectivity solutions that facilitate straight-through processing; technology services to optimize trading environments; and execution services for exchange-traded fund managers and other clients. Through its Trax ® |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated. Cash and Cash Equivalents Cash and cash equivalents includes cash and money market instruments that are primarily maintained at one major global bank. Given this concentration, the Company is exposed to certain credit risk in relation to its deposits at this bank. The Company defines cash equivalents as short-term interest-bearing investments with maturities at the time of purchase of three months or less. Investments The Company determines the appropriate classification of securities at the time of purchase which are recorded in the Consolidated Statements of Financial Condition on the trade date. Securities are classified as available-for-sale or trading. The Company’s available-for-sale investments are comprised of municipal bonds and investment grade corporate debt securities. Available-for-sale investments are carried at fair value with the unrealized gains or losses reported in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Trading investments primarily include investment grade corporate debt securities and are carried at fair value, with realized and unrealized gains or losses included in other income in the Consolidated Statements of Operations. The Company assesses whether an other-than-temporary impairment loss on the available-for-sale investments has occurred due to declines in fair value or other market conditions. The portion of an other-than-temporary impairment related to credit loss is recorded as a charge in the Consolidated Statements of Operations. The remainder is recognized in accumulated other comprehensive loss if the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security prior to recovery. No charges for other-than-temporary losses were recorded during the years ended December 31, 2017, 2016 and 2015. Fair Value Financial Instruments Fair value 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.” A three-tiered hierarchy for determining fair value has been established that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as Level 1 (unadjusted quoted prices for identical assets or liabilities in active markets), Level 2 (inputs that are observable in the marketplace other than those inputs classified in Level 1) and Level 3 (inputs that are unobservable in the marketplace). The Company’s financial assets and liabilities measured at fair value on a recurring basis consist of its money market funds, securities available-for-sale, trading securities and foreign currency forward contracts. All other financial instruments are short-term in nature and the carrying amount is reported on the Consolidated Statements of Financial Condition at approximate fair value. Allowance for Doubtful Accounts All accounts receivable have contractual maturities of less than one year and are derived from trading-related fees and commissions and revenues from products and services. The Company continually monitors collections and payments from its customers and maintains an allowance for doubtful accounts. The allowance for doubtful accounts is based upon the historical collection experience and specific collection issues that have been identified. Additions to the allowance for doubtful accounts are charged to bad debt expense, which is included in general and administrative expense in the Company’s Consolidated Statements of Operations. The allowance for doubtful accounts was $0.2 million, $0.1 million and $0.1 million as of December 31, 2017, 2016 and 2015, respectively. The provision for bad debts was $0.4 million, $0.2 million and $0.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. Write-offs and other charges against the allowance for doubtful accounts were $0.1 million for each year ended December 31, 2017, 2016 and 2015, respectively. Depreciation and Amortization Fixed assets are carried at cost less accumulated depreciation. The Company uses the straight-line method of depreciation over three to seven years. The Company amortizes leasehold improvements on a straight-line basis over the lesser of the life of the improvement or the remaining term of the lease. Software Development Costs The Company capitalizes certain costs associated with the development of internal use software, including among other items, employee compensation and related benefits and third party consulting costs at the point at which the conceptual formulation, design and testing of possible software project alternatives have been completed. Once the product is ready for its intended use, such costs are amortized on a straight-line basis over three years. The Company reviews the amounts capitalized for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. Cash Provided as Collateral Cash is provided as collateral for broker-dealer clearing accounts. Cash provided as collateral is included in prepaid expenses and other assets in the Consolidated Statements of Financial Condition. Foreign Currency Translation and Forward Contracts Assets and liabilities denominated in foreign currencies are translated using exchange rates at the end of the period; revenues and expenses are translated at average monthly rates. Gains and losses on foreign currency translation are a component of accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Transaction gains and losses are recorded in general and administrative expense in the Consolidated Statements of Operations. The Company enters into foreign currency forward contracts to hedge its net investment in its U.K. subsidiaries. Gains and losses on these transactions are included in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Revenue Recognition The majority of the Company’s revenues are derived from commissions for trades executed on its platform and distribution fees that are billed to its broker-dealer clients on a monthly basis. The Company also derives revenues from information and post-trade services, technology products and services, investment income and other income. Commission revenue. Commissions are generally calculated as a percentage of the notional dollar volume of bonds traded on the platform and vary based on the type, size, yield and maturity of the bond traded. Under the Company’s transaction fee plans, bonds that are more actively traded or that have shorter maturities are generally charged lower commissions, while bonds that are less actively traded or that have longer maturities generally command higher commissions. For trades that the Company executes between and among institutional investor and broker-dealer clients on a matched principal basis by serving as counterparty to both the buyer and the seller, the Company earns the commission through the difference in price between the two matched principal trades. Fee programs for certain products include distribution fees which are recognized monthly. Information Services. The Company generates revenue from data licensed to its broker-dealer clients, institutional investor clients and data-only subscribers, professional consulting services, technology software licenses and maintenance and support services. Information service revenues are invoiced monthly, quarterly or annually. When billed in advance, information service revenues are deferred and recognized monthly on a straight-line basis. Revenue from professional consulting services are recognized as services are performed and software license subscription revenue and maintenance and support services are recognized ratably over the contract period. Post-trade Services . The Company generates revenue from regulatory transaction reporting, trade publication and trade matching services. Revenue is recognized in the period the services are provided. Stock-Based Compensation The Company measures and recognizes compensation expense for all share-based payment awards based on their estimated fair values measured as of the grant date. These costs are recognized as an expense in the Consolidated Statements of Operations over the requisite service period, which is typically the vesting period, with an offsetting increase to additional paid-in capital. Effective upon the Company’s adoption of ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) on January 1, 2017, the Company accounts for forfeitures as they occur. Prior to the adoption of ASU 2016-09, expected forfeitures were included in determining share-based compensation expense. Income Taxes Income taxes are accounted for using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years. The Company recognizes interest and penalties related to unrecognized tax benefits in general and administrative expenses in the Consolidated Statements of Operations. Effective upon the Company’s adoption of ASU 2016-09 all tax effects related to share-based payments are recorded through tax expense in the periods during which the awards are exercised or vest. On December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) to address the application of U.S. generally accepted accounting principles (“GAAP”) related to the enactment of the Tax Cuts and Jobs Act (the “Tax Act”). SAB 118 allows the Company to record a provisional amount when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. The measurement period ends when the Company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. Business Combinations, Goodwill and Intangible Assets Business combinations are accounted for under the purchase method of accounting. The total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of certain assets acquired and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates, growth rates and asset lives. The Company operates as a single reporting unit. Subsequent to an acquisition, goodwill no longer retains its identification with a particular acquisition, but instead becomes identifiable with the entire reporting unit. As a result, all of the fair value of the Company is available to support the value of goodwill. An impairment review of goodwill is performed on an annual basis, at year-end, or more frequently if circumstances change. Intangible assets with definite lives, including purchased technologies, customer relationships and other intangible assets, are amortized on a straight-line basis over their estimated useful lives, ranging from three to 15 years. Intangible assets are assessed for impairment when events or circumstances indicate the existence of a possible impairment. Earnings Per Share Basic earnings per share is computed by dividing the net income attributable to common stock by the weighted-average number of shares of common stock outstanding during the period. For purposes of computing diluted earnings per share, the weighted-average shares outstanding of common stock reflects the dilutive effect that could occur if convertible securities or other contracts to issue common stock were converted into or exercised for common stock. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Out-of-Period Adjustments During the first quarter of 2016, the Company determined that it had incorrectly recorded deferred taxes for the cumulative translation adjustment (“CTA”) that arises from converting the local currency financial statements into U.S. dollars. Upon making a permanent reinvestment assertion on unremitted earnings from foreign subsidiaries effective January 1, 2013, the Company should have eliminated any deferred tax balances derived from the CTA balance. The Company also determined that gains and losses on the foreign currency forward contracts used to hedge the net investment in certain foreign subsidiaries were not appropriately considered as taxable income or expense in the consolidated tax returns. The Company assessed these errors and determined that they were not material to previous reporting periods. Therefore, the Company recorded these items as out-of-period adjustments in the three months ended March 31, 2016 by decreasing deferred tax assets by $3.1 million, decreasing other comprehensive income by $2.1 million and increasing prepaid expenses and other assets by $1.0 million in the Consolidated Statements of Financial Condition. Reclassifications Certain reclassifications have been made to the prior years’ Consolidated Financial Statements in order to conform to the current year presentation. The Company reclassified certain revenue line items on the consolidated statements of operations to separately reflect information service revenues and post-trade service revenues. Such reclassifications had no effect on previously reported net income. Accounting Pronouncements, Recently Adopted Effective January 1, 2017, the Company adopted ASU 2016-09 which simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, statutory tax withholding requirements and classification on the statement of cash flows. Beginning January 1, 2017, the tax effects related to share-based payments are recorded through the income tax provision and the Company has elected to account for forfeitures as they occur. The adoption of ASU 2016-09 will cause volatility in the Company’s net income, effective tax rate and diluted earnings per share. The volatility in future periods will depend on the Company’s stock price at the vesting date for restricted stock awards or exercise date for stock options and the number of awards that vest or are exercised in each period. Under the new guidance, excess tax benefits from share-based compensation are included as an operating activity in the Company’s Consolidated Statements of Cash Flows. Prior period cash flows have been adjusted to conform to the new presentation. Accounting Pronouncements, Not Yet Adopted as of December 31, 2017 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”) requiring an entity to recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The standard also requires new disclosure concerning contracts with customers, including the significant judgments made when applying the guidance. The Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective transition approach. The Company completed its analysis and the adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”) requiring lessees to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. ASU 2016-02 will be effective for the Company beginning January 1, 2019 and early adoption is permitted and should be applied prospectively. The Company is currently evaluating the potential adoption impact and expects to recognize lease assets and lease liabilities in its Consolidated Statements of Financial Condition. The Company does not expect material changes to the recognition of operating lease expense in its Consolidated Statements of Operations. In January 2017, the FASB issued ASU 2017-04, “Intangibles-Goodwill and Other” (“ASU 2017-04”). ASU 2017-04 simplifies the testing for goodwill impairment. The guidance will be effective for the Company beginning January 1, 2020 and early adoption is permitted and should be applied prospectively. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements. |
Net Capital Requirements
Net Capital Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Net Capital [Abstract] | |
Net Capital Requirements | 3. Net Capital Requirements Certain U.S. subsidiaries of the Company are registered as a broker-dealer or swap execution facility and therefore are subject to the applicable rules and regulations of the Securities and Exchange Commission and the Commodity Futures Trading Commission. These rules contain minimum net capital requirements, as defined in the applicable regulations, and also may require a significant part of the registrants’ assets be kept in relatively liquid form. Certain of the Company’s foreign subsidiaries are regulated by the Financial Conduct Authority in the U.K. or other foreign regulators and must maintain financial resources, as defined in the applicable regulations, in excess of the applicable financial resources requirement. As of December 31, 2017, each of the Company’s subsidiaries that are subject to these regulations had net capital or financial resources in excess of their minimum requirements. As of December 31, 2017, the Company’s subsidiaries maintained aggregate net capital and financial resources that was $130.5 million in excess of the required levels of $14.8 million. Each of the Company’s U.S. and foreign regulated subsidiaries are subject to local regulations which generally prohibit repayment of borrowings from the Company or affiliates, paying cash dividends, making loans to the Company or affiliates or otherwise entering into transactions that result in a significant reduction in regulatory net capital or financial resources without prior notification to or approval from such regulated entity’s principal regulator. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The following table summarizes the valuation of the Company’s assets and liabilities measured at fair value as categorized based on the hierarchy described in Note 2. Level 1 Level 2 Level 3 Total (In thousands) As of December 31, 2017 Money market funds $ 88,562 $ — $ — $ 88,562 Securities available-for-sale Corporate debt — 145,052 — 145,052 Trading securities Corporate debt — 91,302 — 91,302 Mutual funds held in rabbi trust — 3,167 — 3,167 Foreign currency forward position — (702 ) — (702 ) Total $ 88,562 $ 238,819 $ — $ 327,381 As of December 31, 2016 Money market funds $ 58,573 $ — $ — $ 58,573 Securities available-for-sale Corporate debt — 118,870 — 118,870 Trading securities Corporate debt — 74,207 — 74,207 Mutual funds held in rabbi trust — 1,327 — 1,327 Foreign currency forward position — (266 ) — (266 ) Total $ 58,573 $ 194,138 $ — $ 252,711 Securities classified within Level 2 were valued using a market approach utilizing prices and other relevant information generated by market transactions involving comparable assets. The foreign currency forward contracts are classified within Level 2 as the valuation inputs are based on quoted market prices. The mutual funds held in a rabbi trust represent investments associated with the deferred cash incentive plan (see Note 14). There were no financial assets classified within Level 3 during the years ended December 31, 2017 and 2016. The Company enters into foreign currency forward contracts to hedge the net investment in the Company’s U.K. subsidiaries. The Company designates each foreign currency forward contract as a hedge and assesses the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure and how effectiveness is to be assessed prospectively and retrospectively. These hedges are for a one-month period and are used to limit exposure to foreign currency exchange rate fluctuations. The fair value of the asset is included in prepaid expenses and other assets and the fair value of the liability is included in accounts payable, accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Gains or losses on foreign currency forward contracts designated as hedges are included in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. A summary of the foreign currency forward position is as follows: As of December 31, 2017 2016 (In thousands) Notional value $ 84,422 $ 66,972 Fair value of notional 85,124 67,238 Fair value of the (liability) $ (702 ) $ (266 ) The following is a summary of the Company’s investments: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value (In thousands) As of December 31, 2017 Securities available-for-sale Corporate debt $ 145,526 $ 9 $ (483 ) $ 145,052 Trading securities Corporate debt 91,578 30 (306 ) 91,302 Mutual funds held in rabbi trust 2,729 438 — 3,167 Total trading securities 94,307 468 (306 ) 94,469 Total investments $ 239,833 $ 477 $ (789 ) $ 239,521 As of December 31, 2016 Securities available-for-sale Corporate debt $ 119,073 $ 13 $ (216 ) $ 118,870 Trading securities Corporate debt 74,394 47 (234 ) 74,207 Mutual funds held in rabbi trust 1,212 115 — 1,327 Total trading securities 75,606 162 (234 ) 75,534 Total investments $ 194,679 $ 175 $ (450 ) $ 194,404 The following table summarizes the fair value of the investments based upon the contractual maturities: As of December 31, 2017 2016 (In thousands) Less than one year $ 130,738 $ 117,904 Due in 1 - 5 years 108,783 76,500 Total $ 239,521 $ 194,404 Proceeds from the sales and maturities of investments during the years ended December 31, 2017, 2016 and 2015 were $219.2 million, $69.5 million and $35.2 million, respectively. For the years ended December 31, 2017 and 2016, net unrealized losses on corporate debt trading securities were $0.1 million and $0.2 million, respectively. For the years ended December 31, 2017 and 2016, net realized gains on corporate debt trading securities were immaterial. The following table provides fair values and unrealized losses on investments and by the aging of the securities' continuous unrealized loss position as of December 31, 2017 and 2016 respectively: Less than Twelve Months Twelve Months or More Total Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses (In thousands) As of December 31, 2017 Corporate debt $ 177,114 $ (536 ) $ 26,476 $ (253 ) $ 203,590 $ (789 ) As of December 31, 2016 Corporate debt $ 136,667 $ (449 ) $ 2,000 $ (1 ) $ 138,667 $ (450 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill and intangible assets with indefinite lives was $59.7 million as of both December 31, 2017 and 2016. Intangible assets that are subject to amortization, including the related accumulated amortization, are comprised of the following: December 31, 2017 December 31, 2016 Cost Accumulated amortization Net carrying amount Cost Accumulated amortization Net carrying amount (In thousands) Technology $ 5,770 $ (5,770 ) $ — $ 5,770 $ (5,770 ) $ — Customer relationships 5,647 (2,301 ) 3,346 5,628 (1,897 ) 3,731 Non-competition agreements 380 (380 ) — 380 (380 ) — Tradenames 370 (370 ) — 370 (370 ) — Total $ 12,167 $ (8,821 ) $ 3,346 $ 12,148 $ (8,417 ) $ 3,731 Amortization expense associated with identifiable intangible assets was $0.4 million, $0.7 million and $2.3 million, respectively, for the years ended December 31, 2017, 2016 and 2015. Estimated total amortization expense is |
Capitalized Software, Furniture
Capitalized Software, Furniture, Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Capitalized Software, Furniture, Equipment and Leasehold Improvements | 6. Capitalized Software, Furniture, Equipment and Leasehold Improvements Capitalized software development costs, furniture, equipment and leasehold improvements, net of accumulated depreciation and amortization, are comprised of the following: As of December 31, 2017 2016 (In thousands) Software development costs $ 86,129 $ 71,551 Computer hardware and related software 35,945 20,152 Office hardware 4,575 4,228 Furniture and fixtures 2,347 2,001 Leasehold improvements 11,016 8,351 140,012 106,283 Accumulated depreciation and amortization (101,464 ) (75,179 ) Total $ 38,548 $ 31,104 During the years ended December 31, 2017 and 2016, software development costs totaling $13.9 million and $12.3 million, respectively, were capitalized. Non-capitalized software costs and routine maintenance costs are expensed as incurred and are included in employee compensation and benefits and professional and consulting fees in the Consolidated Statements of Operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The provision for income taxes consists of the following: Year Ended December 31, 2017 2016 2015 (In thousands) Current: Federal $ 36,045 $ 45,455 $ 38,357 State and local 3,848 7,087 7,180 Foreign 7,234 6,166 4,346 Total current provision 47,127 58,708 49,883 Deferred: Federal 6,171 5,884 1,492 State and local 661 1,141 299 Foreign (280 ) (303 ) 189 Total deferred provision 6,552 6,722 1,980 Provision for income taxes $ 53,679 $ 65,430 $ 51,863 Pre-tax income from U.S. operations was $165.2 million, $161.9 million and $126.4 million for the years ended December 31, 2017, 2016 and 2015, respectively. Pre-tax income from foreign operations was $36.6 million, $29.7 million and $21.5 million for the years ended December 31, 2017, 2016 and 2015, respectively. On December 22, 2017, the Tax Act was enacted into law. The Tax Act significantly revises the U.S. corporate income tax regime by, among other things, lowering the U.S. federal corporate income tax rate from 35% to 21%, implementing a territorial tax system and imposing a repatriation tax on deemed earnings of foreign subsidiaries. The Company has made a reasonable estimate of the impact of the Tax Act and recorded a provisional tax charge in 2017 of $11.7 million, composed of $6.7 million to re-measure U.S. deferred tax assets and $5.0 million for the repatriation tax on accumulated undistributed foreign earnings. The final impact of the Tax Act may differ materially from the provisional tax charge recognized in 2017 due to, among other things, changes in interpretations and assumptions the Company has made, guidance that may be issued by the U.S. Department of Treasury and actions the Company may take as a result of the Tax Act. Pursuant to the Tax Act, all previously undistributed foreign earnings have now been subject to U.S. tax. Notwithstanding the U.S. taxation of these amounts, the Company considers its undistributed foreign earnings to be indefinitely reinvested outside of the U.S. and does not expect to incur any significant additional taxes related to such amounts. The difference between the Company’s reported provision for income taxes and the U.S. federal statutory rate of 35% is as follows: Year Ended December 31, 2017 2016 2015 U.S. federal tax at statutory rate 35.0 % 35.0 % 35.0 % State and local taxes - net of federal benefit 1.5 2.9 3.4 Credits and deductions related to research activities (1.2 ) (1.3 ) (1.3 ) Foreign rate differential benefit (2.9 ) (2.3 ) (2.0 ) Excess tax benefit from stock-based compensation (11.6 ) — — Tax Cuts and Jobs Act provisional tax charge 5.8 — — Other, net — (0.2 ) — Provision for income taxes 26.6 % 34.1 % 35.1 % The following is a summary of the Company’s net deferred tax assets: As of December 31, 2017 2016 (In thousands) Deferred tax assets: U.S. net operating loss carryforwards $ 872 $ 1,909 Capital loss carryforwards 4,648 7,235 Stock compensation expense 4,534 11,307 Other 1,143 1,468 Total deferred tax assets 11,197 21,919 Valuation allowance (4,648 ) (7,235 ) Net deferred tax assets 6,549 14,684 Deferred tax liabilities: Depreciation and amortization (1,369 ) (1,456 ) Capitalized software development costs (3,479 ) (4,923 ) Intangible assets (967 ) (1,037 ) Deferred tax assets, net $ 734 $ 7,268 In 2001 and 2000, MarketAxess Holdings Inc. and MarketAxess Corporation had an ownership change within the meaning of Section 382 of the Internal Revenue Code. As of December 31, 2017, the Company had restricted U.S. federal net operating loss carryforwards of approximately $4.2 million related to the prior ownership change, which begin to expire in 2021. The Company’s net operating loss carryforwards may be subject to additional annual limitations if there is a 50% or greater change in the Company’s ownership, as determined over a rolling three-year period. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. If it is not more likely than not that some portion or all of the gross deferred income tax assets will be realized in future years, a valuation allowance is recorded. As of December 31, 2017, the valuation allowance relates to certain capital loss carryforwards that are not expected to be realized. In October 2013, the Company recognized a $20.6 million capital loss on the sale of Greenline Financial Technologies, Inc. of which $1.2 million was carried back or otherwise utilized against current period capital gains. A full valuation allowance was provided against the remaining capital loss carryforward. A summary of the changes in the valuation allowance is as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Valuation allowance at beginning of year $ 7,235 $ 7,294 $ 7,428 (Decrease) to valuation allowance attributable to: Federal and state tax rate changes (2,587 ) (59 ) (134 ) Valuation allowance at end of year $ 4,648 $ 7,235 $ 7,294 The Company or one of its subsidiaries files U.S. federal, state and foreign income tax returns. Income tax returns for U.S. Federal (through 2013), New York City (through 2003) and State (through 2009) and Connecticut State (through 2003) have been audited. An examination of the Company’s New York State income tax returns for 2010 through 2013 is currently underway. The Company cannot estimate when the examination will conclude or the impact such examinations will have on the Company’s Consolidated Financial Statements, if any. A reconciliation of the unrecognized tax benefits is as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of year $ 29 $ 265 $ 265 Additions attributable to state and local apportionment 2,650 — — Reductions for tax positions of prior years (29 ) (236 ) — Balance at end of year $ 2,650 $ 29 $ 265 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity Common Stock As of December 31, 2017 and 2016, the Company had 110,000,000 authorized shares of voting common stock and 10,000,000 authorized shares of non-voting common stock. Voting common stock entitles the holder to one vote per share of common stock held. The following is a summary of the change in the Company’s outstanding shares of voting common stock: Year Ended December 31, 2017 2016 2015 (In thousands) Outstanding shares of voting common stock at the beginning of year 37,544 37,409 37,319 Exercise of stock options 262 181 183 Issuance of restricted stock, net of shares withheld for withholding tax payments and cancellations 39 104 178 Repurchases (224 ) (150 ) (271 ) Outstanding shares of voting common stock at the end of year 37,621 37,544 37,409 In January 2016, the Board of Directors authorized a two-year share repurchase program for up to $25.0 million of the Company’s common stock. In October 2016, the Board of Directors approved a $50.0 million increase in the size of the repurchase program. This share repurchase plan was terminated in September 2017 and the Board of Directors authorized a new fifteen-month share repurchase program for up to $100.0 million that commenced in October 2017. Shares repurchased under each program will be held in treasury for future use. Dividends During 2017, 2016 and 2015, the Company paid quarterly cash dividends of $0.33 per share, $0.26 per share and $0.20 per share, respectively. Any future declaration and payment of dividends will be at the sole discretion of the Company’s Board of Directors. The Board of Directors may take into account such matters as general business conditions, the Company’s financial results, capital requirements, contractual obligations, legal, and regulatory restrictions on the payment of dividends to the Company’s stockholders or by the Company’s subsidiaries to their respective parent entities, and any such other factors as the Board of Directors may deem relevant. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Plans | 9. Stock-Based Compensation Plans The Company has a stock incentive plan which provides for the grant of stock options, stock appreciation rights, restricted stock, performance shares, performance units, or other stock-based awards as incentives and rewards to encourage employees, consultants and non-employee directors to participate in the long-term success of the Company. As of December 31, 2017, there were 219,983 shares available for grant under the stock incentive plan. Total stock-based compensation expense was as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Employees: Restricted stock and performance shares $ 11,566 $ 12,459 $ 10,792 Stock options 1,882 1,143 826 13,448 13,602 11,618 Non-employee directors: Restricted stock 973 909 901 Total stock-based compensation $ 14,421 $ 14,511 $ 12,519 The Company records stock-based compensation expense for employees in employee compensation and benefits and for non-employee directors in general and administrative expenses in the Consolidated Statements of Operations. Stock Options The exercise price of each option granted is equal to the market price of the Company’s common stock on the date of grant. Generally, option grants have provided for vesting over a three or five-year period. Options generally expire in six or ten years from the date of grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables, including the expected stock price volatility over the term of the awards, the risk-free interest rate, the expected dividend yield rate and the expected term. Expected volatilities are based on historical volatility of the Company’s stock. The risk-free interest rate is based on U.S. Treasury securities with a maturity value approximating the expected term of the option. The dividend yield rate is based on the expected annual dividends to be paid divided by the expected stock price. The expected term represents the period of time that options granted are expected to be outstanding based on actual and projected employee stock option exercise behavior. The weighted-average fair value for options granted during 2017, 2016 and 2015 was $40.08, $32.24 and $36.46, respectively. The following table represents the assumptions used for the Black-Scholes option-pricing model to determine the per share weighted-average fair value for options granted for the three years ended December 31, 2017: 2017 2016 2015 Expected life (years) 5.0 6.0 7.0 Risk-free interest rate 1.9 % 1.9 % 1.9 % Expected volatility 28.0 % 33.0 % 56.7 % Expected dividend yield 0.8 % 1.0 % 1.1 % In addition to the option grants above, the Company granted 119,981 stock options to the Company’s Chief Executive Officer in January 2015 which expire in 5.5 years from the grant date. Subject to the Chief Executive Officer’s continued employment with the Company through the applicable vesting date, one-third of the options under the option award will vest and become exercisable on each of January 15, 2018, 2019 and 2020. The fair value of the option award as of the date of the grant was $2.0 million as determined by an independent third party using a Monte Carlo simulation model. Key assumptions used for the Monte Carlo pricing model included an exercise price of $88.25 (125% of the market price on the date of the grant), a risk free interest rate of 1.4%, volatility of 27.3% and a dividend yield of 0.9%. The following table reports stock option activity during the three years ended December 31, 2017 and the intrinsic value as of December 31, 2017: Number of Shares Weighted-Average Exercise Price ($) Remaining Contractual Term Intrinsic Value ($) (In thousands) Outstanding at December 31, 2014 1,014,420 $ 13.81 Granted 120,650 88.15 Canceled — — Exercised (196,034 ) 11.60 Outstanding at December 31, 2015 939,036 23.83 Granted 112,988 102.40 Canceled (874 ) 101.77 Exercised (195,410 ) 12.35 Outstanding at December 31, 2016 855,740 36.80 Granted 54,838 156.85 Canceled — — Exercised (380,967 ) 11.26 $ 68,068 Outstanding at December 31, 2017 529,611 67.60 3.3 71,046 Exercisable at December 31, 2017 254,079 24.61 3.0 45,009 The intrinsic value is the amount by which the closing price of the Company’s common stock on December 31, 2017 of $201.75 or the price on the day of exercise exceeds the exercise price of the stock options multiplied by the number of shares. As of December 31, 2017, there was $4.3 million of total unrecognized compensation cost related to non-vested stock options. That cost is expected to be recognized over a weighted-average period of 2.2 years. Restricted Stock and Performance Shares Restricted stock generally vests over a three or five-year period. Compensation expense is measured at the grant date and recognized ratably over the vesting period. Annual performance share awards are granted to certain officers and senior managers. Each performance share award is earned or forfeited based on the level of achievement by the Company of pre-tax operating income, as defined. The pay-out ranges from zero to 150% of the performance share award. For each performance share earned, a participant is awarded an equal number of shares of restricted stock. Any restricted stock awarded to a participant vests and ceases to be restricted stock in two equal installments on each of the second and third anniversaries of the date of grant of the applicable performance share award. Compensation expense for performance shares is measured at the grant date and recognized on a graded basis over the vesting period. Performance year: 2017 2016 2015 Share pay-out plan 12,971 15,390 28,520 Actual share pay-out in following year 8,094 21,423 37,696 Weighted average fair value per share on grant date $ 155.53 $ 101.77 $ 70.60 On April 1, 2017, the Company granted 9,367 multi-year performance shares to a certain officer. The performance share awards are earned or forfeited based on attaining certain cumulative operating income thresholds of the Company and select subsidiaries over the two-year period beginning January 1, 2017. The pay-out ranges from zero to 150% of the performance award value. Any restricted stock awarded will vest 50% on April 1, 2020 and 50% on April 1, 2021. The fair value per share of the awards on the grant date was $186.74. In January 2016, the Company granted 33,509 multi-year performance shares to certain officers and senior managers. Each performance share award is earned or forfeited based on the level of achievement by the Company of aggregate operating income over the three-year period beginning January 1, 2016. The pay-out ranges from zero to 150% of the performance award value. Any restricted stock awarded will vest 50% on January 31, 2020 and 50% on January 31, 2021. The fair value per share of the awards on the grant date was $103.30. In addition to the grants above, the Company granted 116,659 performance shares to the Company’s Chief Executive Officer in January 2015. The performance share award provided that the number of performance shares earned by the Chief Executive Officer would be based on the Company’s achievement of certain performance levels. Upon achievement of the performance levels, a total of 92,419 shares and . The following table reports restricted stock and performance share activity during the three years ended December 31, 2017: Number of Restricted Shares Weighted-Average Grant Date Fair Value Outstanding at December 31, 2014 435,989 $ 41.83 Granted 117,668 Performance share pay-out 117,647 Canceled (3,845 ) Vested (235,321 ) Outstanding at December 31, 2015 432,138 $ 56.24 Granted 95,419 Performance share pay-out 61,936 Canceled (12,786 ) Vested (192,729 ) Outstanding at December 31, 2016 383,978 $ 71.50 Granted 61,434 Performance share pay-out 21,422 Canceled (4,590 ) Vested (142,645 ) Outstanding at December 31, 2017 319,599 $ 88.77 As of December 31, 2017, there was $18.6 million of total unrecognized compensation expense related to non-vested restricted stock and performance shares. That cost is expected to be recognized over a weighted-average period of 1.7 years. Employee Stock Purchase Plan During 2015, the Company established a non-qualified employee stock purchase plan for non-executive employees. Under the plan, participants are granted the right to purchase shares of common stock based on the fair market value on the last day of the six-month offering period. On the purchase date, the Company will grant to the participants a number of shares of common stock equal to 20% of the aggregate shares purchased by the participant. These matching shares vest over a one-year period. The Company issued 1,034 and 1,190 matching shares in connection with the plan for the years ended December 31, 2017 and 2016, respectively. No matching shares were issued for the year ended December 31, 2015. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per common share: Year Ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Net income $ 148,089 $ 126,172 $ 96,037 Basic weighted average shares outstanding 36,864 36,844 36,690 Dilutive effect of stock options and restricted stock 1,174 894 947 Diluted weighted average shares outstanding 38,038 37,738 37,637 Basic earnings per share $ 4.02 $ 3.42 $ 2.62 Diluted earnings per share $ 3.89 $ 3.34 $ 2.55 Stock options and restricted stock totaling 31,766 shares, 84,052 shares and 128,383 shares for the years ended December 31, 2017, 2016 and 2015, respectively, were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. The computation of diluted shares can vary among periods due, in part, to the change in the average price of the Company’s common stock. |
Credit Agreement
Credit Agreement | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Credit Agreement | 11. Credit Agreement In October 2015, the Company entered into a two-year amended and restated credit agreement (the “Credit Agreement”) that provided for revolving loans and letters of credit up to an aggregate of $100.0 million. The Company amended the Credit Agreement in October 2017 and extended the maturity date to October 2018. The amended Credit Agreement also provides for two additional one-year extension options and modified certain borrowing terms and covenants. Subject to satisfaction of certain specified conditions, the Company is permitted to upsize the borrowing capacity under the Credit Agreement by an additional $50.0 million. As of December 31, 2017, the Company had $0.9 million in letters of credit outstanding and $99.1 million in available borrowing capacity under the Credit Agreement. Borrowings under the Credit Agreement will bear interest at a rate per annum equal to the base rate or adjusted LIBOR plus an applicable margin that varies with the Company’s consolidated total leverage ratio. The Credit Agreement requires that the Company satisfies certain covenants, which includes leverage ratios and minimum earnings before interest, tax, depreciation and amortization (“EBITDA”) requirements. The Company was in compliance with all applicable covenants at December 31, 2017 and December 31, 2016. The Company’s existing and future domestic subsidiaries (other than any regulated subsidiary) have guaranteed the Company’s obligations under the Credit Agreement. Subject to customary exceptions and exclusions, the Company’s borrowings under the Credit Agreement are collateralized by first priority pledges (subject to permitted liens) of substantially all of the Company’s personal property assets and the personal property assets of the Company’s domestic subsidiaries that have guaranteed the Credit Agreement, including the equity interests of the Company’s domestic subsidiaries and the equity interests of certain of the Company’s foreign subsidiaries (limited, in the case of the voting equity interests of the foreign subsidiaries, to a pledge of 65% of those equity interests). If an event of default occurs, including failure to pay principal or interest due on the loan balance, a voluntary or involuntary proceeding seeking liquidation, change in control of the Company, or one or more material judgments against the Company in excess of $10.0 million, the lenders would be entitled to accelerate the borrowings under the Credit Agreement and take various other actions, including all actions permitted to be taken by a secured creditor. If certain bankruptcy events of default occur, the borrowings under the Credit Agreement will automatically accelerate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Lease Commitments The Company leases office space under non-cancelable lease agreements expiring at various dates through 2033. Office space leases are subject to escalation based on certain costs incurred by the landlord. Minimum rental commitments as of December 31, 2017 under such operating leases were as follows (in thousands): 2018 $ 5,000 2019 9,659 2020 10,770 2021 10,149 2022 9,129 2023 and thereafter 99,166 $ 143,873 Rental expense for the years ended December 31, 2017, 2016 and 2015 was $5.3 million, $4.0 million and $4.1 million, respectively, and is included in occupancy expense in the Consolidated Statements of Operations. Rental expense has been recorded based on the total minimum lease payments after giving effect to rent abatement and concessions, which are being amortized on a straight-line basis over the life of the lease. The Company is contingently obligated for standby letters of credit amounting to $0.9 million that were issued to landlords for office space. During 2016, the Company entered into a lease agreement for its new global headquarters in New York City. The Company expects to relocate its headquarters to approximately 83,000 square feet of newly built office space at 55 Hudson Yards upon the building’s completion in late 2018. Rent expense recognition commenced upon acceptance of the premises in January 2018. The Company has assigned a lease agreement on a leased property to a third party and is contingently liable should the assignee default on future lease obligations through the November 2020 lease termination date. The aggregate amount of the future lease obligation under this arrangement is $0.8 million as of December 31, 2017. Legal In the normal course of business, the Company and its subsidiaries included in the consolidated financial statements may be involved in various lawsuits, proceedings and regulatory examinations. The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings, if any, utilizing the latest information available. For matters where it is probable that the Company will incur a material loss and the amount can be reasonably estimated, the Company would establish an accrual for the loss. Once established, the accrual would be adjusted to reflect any relevant developments. When a loss contingency is not both probable and estimable, the Company does not establish an accrual. Based on currently available information, the outcome of the Company’s outstanding matters is not expected to have a material adverse impact on the Company’s financial position. It is not presently possible to determine the ultimate exposure to these matters and there is no assurance that the resolution of the outstanding matters will not significantly exceed any reserves accrued by the Company. Other The Company, through two regulated subsidiaries, executes certain bond transactions between and among institutional investor and broker-dealer clients on a matched principal basis by serving as counterparty to both the buyer and the seller in trades which settle through third-party clearing brokers. Settlement typically occurs within one to two trading days after the trade date. Cash settlement of the transaction occurs upon receipt or delivery of the underlying instrument that was traded. For the years ended December 31, 2017, 2016 and 2015, revenues from matched principal trading were approximately $45.7 million, $37.7 million and $16.9 million, respectively. Under securities clearing agreements with third party clearing brokers, the Company maintains collateral deposits with each clearing broker in the form of cash. As of December 31, 2017 and 2016, the amount of the collateral deposits included in prepaid expenses and other assets in the Consolidated Statements of Financial Condition was $1.2 million and $1.1 million, respectively. For the years ended December 31, 2017, 2016 and 2015, clearing expenses associated with matched principal transactions were $5.8 million, $6.1 million and $3.3 million, respectively, and are classified under clearing costs on the Consolidated Statements of Operations. The Company is exposed to credit risk in the event a counterparty does not fulfill its obligation to complete a transaction or if there is a miscommunication or other error in executing a matched principal transaction. Pursuant to the terms of the securities clearing agreements, each third-party clearing broker has the right to charge the Company for any losses they suffer resulting from a counterparty’s failure on any of the Company’s trades. The Company did not record any liabilities or losses with regard to this right for the years ended December 31, 2017 and 2016. In the normal course of business, the Company enters into contracts that contain a variety of representations, warranties and general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss to be remote. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 13. Segment and Geographic Information The Company operates an electronic multi-party platform for the trading of fixed-income securities and provides related data, analytics, compliance tools and post-trade services. The Company’s operations constitute a single business segment because of the highly integrated nature of these product and services, of the financial markets in which the Company competes and of the Company’s worldwide business activities. The Company believes that results by geographic region or client sector are not necessarily meaningful in understanding its business. For the years ended December 31, 2017, 2016 and 2015, the U.K. was the only individual foreign country in which the Company had a subsidiary that accounted for 10% or more of the total revenues or total long-lived assets. Revenues and long-lived assets are attributed to geographic area based on the location of the particular subsidiary. Long-lived assets are defined as furniture, equipment, leasehold improvements and capitalized software Year Ended December 31, 2017 2016 2015 (In thousands) Revenues United States $ 336,867 $ 314,343 $ 262,558 United Kingdom 59,151 54,015 39,338 Other 1,453 1,561 1,202 Total $ 397,471 $ 369,919 $ 303,098 As of December 31, 2017 2016 (In thousands) Long-lived assets, as defined United States $ 27,990 $ 23,370 United Kingdom 10,532 7,713 Other 26 21 Total $ 38,548 $ 31,104 |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement and Deferred Compensation Plans | 14. Retirement and Deferred Compensation Plans The Company, through its U.S. and U.K. subsidiaries, offers its employees the opportunity to invest in defined contribution plans. For the years ended December 31, 2017, 2016 and 2015, the Company contributed $1.8 million, $1.9 million and $1.9 million, respectively, to the plans. The Company offers a non-qualified deferred cash incentive plan to certain officers and other employees. Under the plan, eligible employees may defer up to 100% of their annual cash incentive pay. The Company has elected to fund its deferred compensation obligations through a rabbi trust. The rabbi trust is subject to creditor claims in the event of insolvency but such assets are not available for general corporate purposes. Assets held in the rabbi trust are invested in mutual funds, as selected by the participants, which are designated as trading securities and carried at fair value. As of December 31, 2017 and 2016, the fair value of the mutual fund investments and deferred compensation obligations were $3.2 and $1.3 million, respectively. Changes in the fair value of securities held in the rabbi trust are recognized as trading gains and losses and included in other revenues and offsetting increases or decreases in the deferred compensation obligation are recorded in employee compensation and benefits. For the years ended December 31, 2017 and 2016, the trading gains and compensation expense were $0.4 and $0.2 million, respectively. There were no trading gains or compensation expense for the year ended December 31, 2015 as the initial deferrals occurred in January 2016. |
Customer Concentration
Customer Concentration | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Customer Concentration | 15. Customer Concentration During the years ended December 31, 2017, 2016 and 2015, no single client accounted for more than 10% of total revenue. One institutional investor client accounted for approximately 12.2%, 14.2% and 15.3% of trading volumes during the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, investment funds managed by this institutional investor client beneficially owned approximately 8.3% of the outstanding shares of the Company’s common stock, primarily through passive index and ETF funds. |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents includes cash and money market instruments that are primarily maintained at one major global bank. Given this concentration, the Company is exposed to certain credit risk in relation to its deposits at this bank. The Company defines cash equivalents as short-term interest-bearing investments with maturities at the time of purchase of three months or less. |
Investments | Investments The Company determines the appropriate classification of securities at the time of purchase which are recorded in the Consolidated Statements of Financial Condition on the trade date. Securities are classified as available-for-sale or trading. The Company’s available-for-sale investments are comprised of municipal bonds and investment grade corporate debt securities. Available-for-sale investments are carried at fair value with the unrealized gains or losses reported in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Trading investments primarily include investment grade corporate debt securities and are carried at fair value, with realized and unrealized gains or losses included in other income in the Consolidated Statements of Operations. The Company assesses whether an other-than-temporary impairment loss on the available-for-sale investments has occurred due to declines in fair value or other market conditions. The portion of an other-than-temporary impairment related to credit loss is recorded as a charge in the Consolidated Statements of Operations. The remainder is recognized in accumulated other comprehensive loss if the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security prior to recovery. No charges for other-than-temporary losses were recorded during the years ended December 31, 2017, 2016 and 2015. |
Fair Value Financial Instruments | Fair Value Financial Instruments Fair value 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.” A three-tiered hierarchy for determining fair value has been established that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as Level 1 (unadjusted quoted prices for identical assets or liabilities in active markets), Level 2 (inputs that are observable in the marketplace other than those inputs classified in Level 1) and Level 3 (inputs that are unobservable in the marketplace). The Company’s financial assets and liabilities measured at fair value on a recurring basis consist of its money market funds, securities available-for-sale, trading securities and foreign currency forward contracts. All other financial instruments are short-term in nature and the carrying amount is reported on the Consolidated Statements of Financial Condition at approximate fair value. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts All accounts receivable have contractual maturities of less than one year and are derived from trading-related fees and commissions and revenues from products and services. The Company continually monitors collections and payments from its customers and maintains an allowance for doubtful accounts. The allowance for doubtful accounts is based upon the historical collection experience and specific collection issues that have been identified. Additions to the allowance for doubtful accounts are charged to bad debt expense, which is included in general and administrative expense in the Company’s Consolidated Statements of Operations. The allowance for doubtful accounts was $0.2 million, $0.1 million and $0.1 million as of December 31, 2017, 2016 and 2015, respectively. The provision for bad debts was $0.4 million, $0.2 million and $0.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. Write-offs and other charges against the allowance for doubtful accounts were $0.1 million for each year ended December 31, 2017, 2016 and 2015, respectively. |
Depreciation and Amortization | Depreciation and Amortization Fixed assets are carried at cost less accumulated depreciation. The Company uses the straight-line method of depreciation over three to seven years. The Company amortizes leasehold improvements on a straight-line basis over the lesser of the life of the improvement or the remaining term of the lease. |
Software Development Costs | Software Development Costs The Company capitalizes certain costs associated with the development of internal use software, including among other items, employee compensation and related benefits and third party consulting costs at the point at which the conceptual formulation, design and testing of possible software project alternatives have been completed. Once the product is ready for its intended use, such costs are amortized on a straight-line basis over three years. The Company reviews the amounts capitalized for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. |
Cash Provided as Collateral | Cash Provided as Collateral Cash is provided as collateral for broker-dealer clearing accounts. Cash provided as collateral is included in prepaid expenses and other assets in the Consolidated Statements of Financial Condition. |
Foreign Currency Translation and Forward Contracts | Foreign Currency Translation and Forward Contracts Assets and liabilities denominated in foreign currencies are translated using exchange rates at the end of the period; revenues and expenses are translated at average monthly rates. Gains and losses on foreign currency translation are a component of accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Transaction gains and losses are recorded in general and administrative expense in the Consolidated Statements of Operations. The Company enters into foreign currency forward contracts to hedge its net investment in its U.K. subsidiaries. Gains and losses on these transactions are included in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. |
Revenue Recognition | Revenue Recognition The majority of the Company’s revenues are derived from commissions for trades executed on its platform and distribution fees that are billed to its broker-dealer clients on a monthly basis. The Company also derives revenues from information and post-trade services, technology products and services, investment income and other income. Commission revenue. Commissions are generally calculated as a percentage of the notional dollar volume of bonds traded on the platform and vary based on the type, size, yield and maturity of the bond traded. Under the Company’s transaction fee plans, bonds that are more actively traded or that have shorter maturities are generally charged lower commissions, while bonds that are less actively traded or that have longer maturities generally command higher commissions. For trades that the Company executes between and among institutional investor and broker-dealer clients on a matched principal basis by serving as counterparty to both the buyer and the seller, the Company earns the commission through the difference in price between the two matched principal trades. Fee programs for certain products include distribution fees which are recognized monthly. Information Services. The Company generates revenue from data licensed to its broker-dealer clients, institutional investor clients and data-only subscribers, professional consulting services, technology software licenses and maintenance and support services. Information service revenues are invoiced monthly, quarterly or annually. When billed in advance, information service revenues are deferred and recognized monthly on a straight-line basis. Revenue from professional consulting services are recognized as services are performed and software license subscription revenue and maintenance and support services are recognized ratably over the contract period. Post-trade Services . The Company generates revenue from regulatory transaction reporting, trade publication and trade matching services. Revenue is recognized in the period the services are provided. |
Stock-Based Compensation | Stock-Based Compensation The Company measures and recognizes compensation expense for all share-based payment awards based on their estimated fair values measured as of the grant date. These costs are recognized as an expense in the Consolidated Statements of Operations over the requisite service period, which is typically the vesting period, with an offsetting increase to additional paid-in capital. Effective upon the Company’s adoption of ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) on January 1, 2017, the Company accounts for forfeitures as they occur. Prior to the adoption of ASU 2016-09, expected forfeitures were included in determining share-based compensation expense. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years. The Company recognizes interest and penalties related to unrecognized tax benefits in general and administrative expenses in the Consolidated Statements of Operations. Effective upon the Company’s adoption of ASU 2016-09 all tax effects related to share-based payments are recorded through tax expense in the periods during which the awards are exercised or vest. On December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) to address the application of U.S. generally accepted accounting principles (“GAAP”) related to the enactment of the Tax Cuts and Jobs Act (the “Tax Act”). SAB 118 allows the Company to record a provisional amount when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. The measurement period ends when the Company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. |
Business Combinations, Goodwill and Intangible Assets | Business Combinations, Goodwill and Intangible Assets Business combinations are accounted for under the purchase method of accounting. The total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of certain assets acquired and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates, growth rates and asset lives. The Company operates as a single reporting unit. Subsequent to an acquisition, goodwill no longer retains its identification with a particular acquisition, but instead becomes identifiable with the entire reporting unit. As a result, all of the fair value of the Company is available to support the value of goodwill. An impairment review of goodwill is performed on an annual basis, at year-end, or more frequently if circumstances change. Intangible assets with definite lives, including purchased technologies, customer relationships and other intangible assets, are amortized on a straight-line basis over their estimated useful lives, ranging from three to 15 years. Intangible assets are assessed for impairment when events or circumstances indicate the existence of a possible impairment. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing the net income attributable to common stock by the weighted-average number of shares of common stock outstanding during the period. For purposes of computing diluted earnings per share, the weighted-average shares outstanding of common stock reflects the dilutive effect that could occur if convertible securities or other contracts to issue common stock were converted into or exercised for common stock. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Out-of-Period Adjustments | Out-of-Period Adjustments During the first quarter of 2016, the Company determined that it had incorrectly recorded deferred taxes for the cumulative translation adjustment (“CTA”) that arises from converting the local currency financial statements into U.S. dollars. Upon making a permanent reinvestment assertion on unremitted earnings from foreign subsidiaries effective January 1, 2013, the Company should have eliminated any deferred tax balances derived from the CTA balance. The Company also determined that gains and losses on the foreign currency forward contracts used to hedge the net investment in certain foreign subsidiaries were not appropriately considered as taxable income or expense in the consolidated tax returns. The Company assessed these errors and determined that they were not material to previous reporting periods. Therefore, the Company recorded these items as out-of-period adjustments in the three months ended March 31, 2016 by decreasing deferred tax assets by $3.1 million, decreasing other comprehensive income by $2.1 million and increasing prepaid expenses and other assets by $1.0 million in the Consolidated Statements of Financial Condition. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior years’ Consolidated Financial Statements in order to conform to the current year presentation. The Company reclassified certain revenue line items on the consolidated statements of operations to separately reflect information service revenues and post-trade service revenues. Such reclassifications had no effect on previously reported net income. |
Accounting Pronouncements, Recently Adopted | Accounting Pronouncements, Recently Adopted Effective January 1, 2017, the Company adopted ASU 2016-09 which simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, statutory tax withholding requirements and classification on the statement of cash flows. Beginning January 1, 2017, the tax effects related to share-based payments are recorded through the income tax provision and the Company has elected to account for forfeitures as they occur. The adoption of ASU 2016-09 will cause volatility in the Company’s net income, effective tax rate and diluted earnings per share. The volatility in future periods will depend on the Company’s stock price at the vesting date for restricted stock awards or exercise date for stock options and the number of awards that vest or are exercised in each period. Under the new guidance, excess tax benefits from share-based compensation are included as an operating activity in the Company’s Consolidated Statements of Cash Flows. Prior period cash flows have been adjusted to conform to the new presentation. |
Accounting Pronouncements, Not Yet Adopted as of December 31, 2017 | Accounting Pronouncements, Not Yet Adopted as of December 31, 2017 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”) requiring an entity to recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The standard also requires new disclosure concerning contracts with customers, including the significant judgments made when applying the guidance. The Company adopted ASU 2014-09 effective January 1, 2018 using the modified retrospective transition approach. The Company completed its analysis and the adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”) requiring lessees to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. ASU 2016-02 will be effective for the Company beginning January 1, 2019 and early adoption is permitted and should be applied prospectively. The Company is currently evaluating the potential adoption impact and expects to recognize lease assets and lease liabilities in its Consolidated Statements of Financial Condition. The Company does not expect material changes to the recognition of operating lease expense in its Consolidated Statements of Operations. In January 2017, the FASB issued ASU 2017-04, “Intangibles-Goodwill and Other” (“ASU 2017-04”). ASU 2017-04 simplifies the testing for goodwill impairment. The guidance will be effective for the Company beginning January 1, 2020 and early adoption is permitted and should be applied prospectively. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Financial Statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Valuation of Company's Assets and Liabilities Measured at Fair Value | The following table summarizes the valuation of the Company’s assets and liabilities measured at fair value as categorized based on the hierarchy described in Note 2. Level 1 Level 2 Level 3 Total (In thousands) As of December 31, 2017 Money market funds $ 88,562 $ — $ — $ 88,562 Securities available-for-sale Corporate debt — 145,052 — 145,052 Trading securities Corporate debt — 91,302 — 91,302 Mutual funds held in rabbi trust — 3,167 — 3,167 Foreign currency forward position — (702 ) — (702 ) Total $ 88,562 $ 238,819 $ — $ 327,381 As of December 31, 2016 Money market funds $ 58,573 $ — $ — $ 58,573 Securities available-for-sale Corporate debt — 118,870 — 118,870 Trading securities Corporate debt — 74,207 — 74,207 Mutual funds held in rabbi trust — 1,327 — 1,327 Foreign currency forward position — (266 ) — (266 ) Total $ 58,573 $ 194,138 $ — $ 252,711 |
Summary of Foreign Currency Forward Contracts | A summary of the foreign currency forward position is as follows: As of December 31, 2017 2016 (In thousands) Notional value $ 84,422 $ 66,972 Fair value of notional 85,124 67,238 Fair value of the (liability) $ (702 ) $ (266 ) |
Summary of Company's Investments | The following is a summary of the Company’s investments: Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value (In thousands) As of December 31, 2017 Securities available-for-sale Corporate debt $ 145,526 $ 9 $ (483 ) $ 145,052 Trading securities Corporate debt 91,578 30 (306 ) 91,302 Mutual funds held in rabbi trust 2,729 438 — 3,167 Total trading securities 94,307 468 (306 ) 94,469 Total investments $ 239,833 $ 477 $ (789 ) $ 239,521 As of December 31, 2016 Securities available-for-sale Corporate debt $ 119,073 $ 13 $ (216 ) $ 118,870 Trading securities Corporate debt 74,394 47 (234 ) 74,207 Mutual funds held in rabbi trust 1,212 115 — 1,327 Total trading securities 75,606 162 (234 ) 75,534 Total investments $ 194,679 $ 175 $ (450 ) $ 194,404 |
Summary of Fair Value of Investments Based upon Contractual Maturities | The following table summarizes the fair value of the investments based upon the contractual maturities: As of December 31, 2017 2016 (In thousands) Less than one year $ 130,738 $ 117,904 Due in 1 - 5 years 108,783 76,500 Total $ 239,521 $ 194,404 |
Fair Values and Unrealized Losses on Investments | The following table provides fair values and unrealized losses on investments and by the aging of the securities' continuous unrealized loss position as of December 31, 2017 and 2016 respectively: Less than Twelve Months Twelve Months or More Total Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses (In thousands) As of December 31, 2017 Corporate debt $ 177,114 $ (536 ) $ 26,476 $ (253 ) $ 203,590 $ (789 ) As of December 31, 2016 Corporate debt $ 136,667 $ (449 ) $ 2,000 $ (1 ) $ 138,667 $ (450 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Company's Intangible Assets | Goodwill and intangible assets with indefinite lives was $59.7 million as of both December 31, 2017 and 2016. Intangible assets that are subject to amortization, including the related accumulated amortization, are comprised of the following: December 31, 2017 December 31, 2016 Cost Accumulated amortization Net carrying amount Cost Accumulated amortization Net carrying amount (In thousands) Technology $ 5,770 $ (5,770 ) $ — $ 5,770 $ (5,770 ) $ — Customer relationships 5,647 (2,301 ) 3,346 5,628 (1,897 ) 3,731 Non-competition agreements 380 (380 ) — 380 (380 ) — Tradenames 370 (370 ) — 370 (370 ) — Total $ 12,167 $ (8,821 ) $ 3,346 $ 12,148 $ (8,417 ) $ 3,731 |
Capitalized Software, Furnitu27
Capitalized Software, Furniture, Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Capitalized Software Development Costs, Furniture, Equipment and Leasehold Improvements, Net of Accumulated Depreciation and Amortization | Capitalized software development costs, furniture, equipment and leasehold improvements, net of accumulated depreciation and amortization, are comprised of the following: As of December 31, 2017 2016 (In thousands) Software development costs $ 86,129 $ 71,551 Computer hardware and related software 35,945 20,152 Office hardware 4,575 4,228 Furniture and fixtures 2,347 2,001 Leasehold improvements 11,016 8,351 140,012 106,283 Accumulated depreciation and amortization (101,464 ) (75,179 ) Total $ 38,548 $ 31,104 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: Year Ended December 31, 2017 2016 2015 (In thousands) Current: Federal $ 36,045 $ 45,455 $ 38,357 State and local 3,848 7,087 7,180 Foreign 7,234 6,166 4,346 Total current provision 47,127 58,708 49,883 Deferred: Federal 6,171 5,884 1,492 State and local 661 1,141 299 Foreign (280 ) (303 ) 189 Total deferred provision 6,552 6,722 1,980 Provision for income taxes $ 53,679 $ 65,430 $ 51,863 |
Difference Between the Company's Reported Provision for Income Taxes and the U.S. Federal Statutory Rate | The difference between the Company’s reported provision for income taxes and the U.S. federal statutory rate of 35% is as follows: Year Ended December 31, 2017 2016 2015 U.S. federal tax at statutory rate 35.0 % 35.0 % 35.0 % State and local taxes - net of federal benefit 1.5 2.9 3.4 Credits and deductions related to research activities (1.2 ) (1.3 ) (1.3 ) Foreign rate differential benefit (2.9 ) (2.3 ) (2.0 ) Excess tax benefit from stock-based compensation (11.6 ) — — Tax Cuts and Jobs Act provisional tax charge 5.8 — — Other, net — (0.2 ) — Provision for income taxes 26.6 % 34.1 % 35.1 % |
Summary of Company's Net Deferred Tax Assets | The following is a summary of the Company’s net deferred tax assets: As of December 31, 2017 2016 (In thousands) Deferred tax assets: U.S. net operating loss carryforwards $ 872 $ 1,909 Capital loss carryforwards 4,648 7,235 Stock compensation expense 4,534 11,307 Other 1,143 1,468 Total deferred tax assets 11,197 21,919 Valuation allowance (4,648 ) (7,235 ) Net deferred tax assets 6,549 14,684 Deferred tax liabilities: Depreciation and amortization (1,369 ) (1,456 ) Capitalized software development costs (3,479 ) (4,923 ) Intangible assets (967 ) (1,037 ) Deferred tax assets, net $ 734 $ 7,268 |
Summary of Changes in Valuation Allowance | A summary of the changes in the valuation allowance is as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Valuation allowance at beginning of year $ 7,235 $ 7,294 $ 7,428 (Decrease) to valuation allowance attributable to: Federal and state tax rate changes (2,587 ) (59 ) (134 ) Valuation allowance at end of year $ 4,648 $ 7,235 $ 7,294 |
Reconciliation of the Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Balance at beginning of year $ 29 $ 265 $ 265 Additions attributable to state and local apportionment 2,650 — — Reductions for tax positions of prior years (29 ) (236 ) — Balance at end of year $ 2,650 $ 29 $ 265 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of the Change in the Company's Outstanding Shares of Common Stock | The following is a summary of the change in the Company’s outstanding shares of voting common stock: Year Ended December 31, 2017 2016 2015 (In thousands) Outstanding shares of voting common stock at the beginning of year 37,544 37,409 37,319 Exercise of stock options 262 181 183 Issuance of restricted stock, net of shares withheld for withholding tax payments and cancellations 39 104 178 Repurchases (224 ) (150 ) (271 ) Outstanding shares of voting common stock at the end of year 37,621 37,544 37,409 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense | Total stock-based compensation expense was as follows: Year Ended December 31, 2017 2016 2015 (In thousands) Employees: Restricted stock and performance shares $ 11,566 $ 12,459 $ 10,792 Stock options 1,882 1,143 826 13,448 13,602 11,618 Non-employee directors: Restricted stock 973 909 901 Total stock-based compensation $ 14,421 $ 14,511 $ 12,519 |
Assumptions Used for the Black-Scholes Option-Pricing Model to Determine the Per Share Weighted Average Fair Value for Options Granted | The following table represents the assumptions used for the Black-Scholes option-pricing model to determine the per share weighted-average fair value for options granted for the three years ended December 31, 2017: 2017 2016 2015 Expected life (years) 5.0 6.0 7.0 Risk-free interest rate 1.9 % 1.9 % 1.9 % Expected volatility 28.0 % 33.0 % 56.7 % Expected dividend yield 0.8 % 1.0 % 1.1 % |
Stock Option Activity | The following table reports stock option activity during the three years ended December 31, 2017 and the intrinsic value as of December 31, 2017: Number of Shares Weighted-Average Exercise Price ($) Remaining Contractual Term Intrinsic Value ($) (In thousands) Outstanding at December 31, 2014 1,014,420 $ 13.81 Granted 120,650 88.15 Canceled — — Exercised (196,034 ) 11.60 Outstanding at December 31, 2015 939,036 23.83 Granted 112,988 102.40 Canceled (874 ) 101.77 Exercised (195,410 ) 12.35 Outstanding at December 31, 2016 855,740 36.80 Granted 54,838 156.85 Canceled — — Exercised (380,967 ) 11.26 $ 68,068 Outstanding at December 31, 2017 529,611 67.60 3.3 71,046 Exercisable at December 31, 2017 254,079 24.61 3.0 45,009 |
Summary of Performance of Share Activity for Annual Awards | The following table reports performance share activity for annual awards for the three years ended December 31, 2017: Performance year: 2017 2016 2015 Share pay-out plan 12,971 15,390 28,520 Actual share pay-out in following year 8,094 21,423 37,696 Weighted average fair value per share on grant date $ 155.53 $ 101.77 $ 70.60 |
Restricted Stock and Performance Share Activity | The following table reports restricted stock and performance share activity during the three years ended December 31, 2017: Number of Restricted Shares Weighted-Average Grant Date Fair Value Outstanding at December 31, 2014 435,989 $ 41.83 Granted 117,668 Performance share pay-out 117,647 Canceled (3,845 ) Vested (235,321 ) Outstanding at December 31, 2015 432,138 $ 56.24 Granted 95,419 Performance share pay-out 61,936 Canceled (12,786 ) Vested (192,729 ) Outstanding at December 31, 2016 383,978 $ 71.50 Granted 61,434 Performance share pay-out 21,422 Canceled (4,590 ) Vested (142,645 ) Outstanding at December 31, 2017 319,599 $ 88.77 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: Year Ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Net income $ 148,089 $ 126,172 $ 96,037 Basic weighted average shares outstanding 36,864 36,844 36,690 Dilutive effect of stock options and restricted stock 1,174 894 947 Diluted weighted average shares outstanding 38,038 37,738 37,637 Basic earnings per share $ 4.02 $ 3.42 $ 2.62 Diluted earnings per share $ 3.89 $ 3.34 $ 2.55 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Minimum Rental Commitments under Operating Leases | Minimum rental commitments as of December 31, 2017 under such operating leases were as follows (in thousands): 2018 $ 5,000 2019 9,659 2020 10,770 2021 10,149 2022 9,129 2023 and thereafter 99,166 $ 143,873 |
Segment and Geographic Inform33
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Revenue and Long-lived Assets | Information regarding revenue for the three years ended December 31, 2017, 2016 and 2015 and long-lived assets as of December 31, 2017 and 2016 follows: Year Ended December 31, 2017 2016 2015 (In thousands) Revenues United States $ 336,867 $ 314,343 $ 262,558 United Kingdom 59,151 54,015 39,338 Other 1,453 1,561 1,202 Total $ 397,471 $ 369,919 $ 303,098 As of December 31, 2017 2016 (In thousands) Long-lived assets, as defined United States $ 27,990 $ 23,370 United Kingdom 10,532 7,713 Other 26 21 Total $ 38,548 $ 31,104 |
Organization and Principal Bu34
Organization and Principal Business Activity - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Institutional_Investor_and_Broker-dealer_Firm | |
Accounting Policies [Line Items] | |
Date of incorporation | Apr. 11, 2000 |
Minimum [Member] | |
Accounting Policies [Line Items] | |
Number of institutional investor and broker-dealer firms | 1,300 |
Significant Accounting Polici35
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Significant Accounting Policies [Line Items] | ||||
Maximum maturity period for classification of investments as cash equivalents | 3 months | |||
Investments other-than-temporary losses | $ 0 | $ 0 | $ 0 | |
Allowance for doubtful accounts | 178,000 | 82,000 | 100,000 | |
Provision for bad debts | 400,000 | 200,000 | 200,000 | |
Write-offs and other charges against the allowance for doubtful accounts | 100,000 | 100,000 | $ 100,000 | |
Deferred tax assets, net | 1,737,000 | 8,562,000 | ||
Other comprehensive income | (10,226,000) | (12,228,000) | ||
Prepaid expenses and other assets | $ 18,717,000 | $ 11,618,000 | ||
Restatement Adjustment [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Deferred tax assets, net | $ 3,100,000 | |||
Other comprehensive income | 2,100,000 | |||
Prepaid expenses and other assets | $ 1,000,000 | |||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Contractual maturities accounts receivable | 1 year | |||
Estimated useful life of fixed assets | 7 years | |||
Maximum [Member] | Business Combinations [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated life of intangible assets | 15 years | |||
Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful life of fixed assets | 3 years | |||
Minimum [Member] | Business Combinations [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated life of intangible assets | 3 years | |||
Minimum [Member] | Internally Developed Software [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated life of intangible assets | 3 years |
Net Capital Requirements - Addi
Net Capital Requirements - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Brokers And Dealers [Abstract] | |
Aggregate net capital and financial resources in excess of required level | $ 130.5 |
Aggregate net capital and financial resources, minimum capital requirement | $ 14.8 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Company's Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Money market funds | $ 88,562 | $ 58,573 |
Trading securities | 94,469 | 75,534 |
Assets Fair Value Total | 327,381 | 252,711 |
Corporate Debt [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 145,052 | 118,870 |
Trading securities | 91,302 | 74,207 |
Mutual Funds Held In Rabbi Trust [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities | 3,167 | 1,327 |
Foreign Currency Forward Position [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Foreign currency forward position | (702) | (266) |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Money market funds | 88,562 | 58,573 |
Assets Fair Value Total | 88,562 | 58,573 |
Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets Fair Value Total | 238,819 | 194,138 |
Level 2 [Member] | Corporate Debt [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 145,052 | 118,870 |
Trading securities | 91,302 | 74,207 |
Level 2 [Member] | Mutual Funds Held In Rabbi Trust [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities | 3,167 | 1,327 |
Level 2 [Member] | Foreign Currency Forward Position [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Foreign currency forward position | $ (702) | $ (266) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |||
Hedge derivative expiration period | 1 month | ||
Proceeds from the sales and maturities of securities available-for-sale | $ 219.2 | $ 69.5 | $ 35.2 |
Net unrealized losses on corporate debt trading securities | $ 0.1 | $ 0.2 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Foreign Currency Forward Contracts (Detail) - Foreign Currency Forward Position [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives Fair Value [Line Items] | ||
Notional value | $ 84,422 | $ 66,972 |
Fair value of notional | 85,124 | 67,238 |
Fair value of the (liability) | $ (702) | $ (266) |
Fair Value Measurements - Sum40
Fair Value Measurements - Summary of Company's Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Trading securities, Amortized cost | $ 94,307 | $ 75,606 |
Trading securities, Gross unrealized gains | 468 | 162 |
Trading securities, Gross unrealized losses | (306) | (234) |
Trading securities, Estimated fair value | 94,469 | 75,534 |
Investments, Amortized cost | 239,833 | 194,679 |
Investments, Gross unrealized gains | 477 | 175 |
Investments, Gross unrealized losses | (789) | (450) |
Investments, Estimated fair value | 239,521 | 194,404 |
Corporate Debt [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized cost | 145,526 | 119,073 |
Securities available-for-sale, Gross unrealized gains | 9 | 13 |
Securities available-for-sale, Gross unrealized losses | (483) | (216) |
Securities available-for-sale, Estimated fair value | 145,052 | 118,870 |
Trading securities, Amortized cost | 91,578 | 74,394 |
Trading securities, Gross unrealized gains | 30 | 47 |
Trading securities, Gross unrealized losses | (306) | (234) |
Trading securities, Estimated fair value | 91,302 | 74,207 |
Mutual Funds Held In Rabbi Trust [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Trading securities, Amortized cost | 2,729 | 1,212 |
Trading securities, Gross unrealized gains | 438 | 115 |
Trading securities, Estimated fair value | $ 3,167 | $ 1,327 |
Fair Value Measurements - Sum41
Fair Value Measurements - Summary of Fair Value of Investments Based upon Contractual Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Less than one year | $ 130,738 | $ 117,904 |
Due in 1 - 5 years | 108,783 | 76,500 |
Total | $ 239,521 | $ 194,404 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values and Unrealized Losses on Investments (Detail) - Corporate Debt [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than Twelve Months, Estimated fair value | $ 177,114 | $ 136,667 |
Less than Twelve Months, Gross unrealized losses | (536) | (449) |
Twelve Months or More, Estimated fair value | 26,476 | 2,000 |
Twelve Months or More, Gross unrealized losses | (253) | (1) |
Estimated fair value, Total | 203,590 | 138,667 |
Gross unrealized losses, Total | $ (789) | $ (450) |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Goodwill and intangible assets with indefinite lives | $ 63,059 | $ 63,443 | |
Amortization expense associated with identifiable intangible assets | 400 | 700 | $ 2,300 |
Estimated total amortization expense 2018 | 400 | ||
Estimated total amortization expense 2019 | 400 | ||
Estimated total amortization expense 2020 | 400 | ||
Estimated total amortization expense 2021 | 400 | ||
Estimated total amortization expense 2022 | 400 | ||
Indefinite-lived Intangible Assets [Member] | |||
Goodwill [Line Items] | |||
Goodwill and intangible assets with indefinite lives | $ 59,700 | $ 59,700 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 12,167 | $ 12,148 |
Accumulated amortization | (8,821) | (8,417) |
Net carrying amount | 3,346 | 3,731 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 5,770 | 5,770 |
Accumulated amortization | (5,770) | (5,770) |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 5,647 | 5,628 |
Accumulated amortization | (2,301) | (1,897) |
Net carrying amount | 3,346 | 3,731 |
Non-Competition Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 380 | 380 |
Accumulated amortization | (380) | (380) |
Tradenames - Finite Life [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 370 | 370 |
Accumulated amortization | $ (370) | $ (370) |
Capitalized Software, Furnitu45
Capitalized Software, Furniture, Equipment and Leasehold Improvements - Capitalized Software Development Costs, Furniture, Equipment and Leasehold Improvements, Net of Accumulated Depreciation and Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | $ 140,012 | $ 106,283 |
Accumulated depreciation and amortization | (101,464) | (75,179) |
Furniture, equipment, leasehold improvements and capitalized software, net of accumulated depreciation and amortization | 38,548 | 31,104 |
Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | 86,129 | 71,551 |
Computer Hardware and Related Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | 35,945 | 20,152 |
Office Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | 4,575 | 4,228 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | 2,347 | 2,001 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | $ 11,016 | $ 8,351 |
Capitalized Software, Furnitu46
Capitalized Software, Furniture, Equipment and Leasehold Improvements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | ||
Software development costs | $ 13.9 | $ 12.3 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 36,045 | $ 45,455 | $ 38,357 |
State and local | 3,848 | 7,087 | 7,180 |
Foreign | 7,234 | 6,166 | 4,346 |
Total current provision | 47,127 | 58,708 | 49,883 |
Deferred: | |||
Federal | 6,171 | 5,884 | 1,492 |
State and local | 661 | 1,141 | 299 |
Foreign | (280) | (303) | 189 |
Total deferred provision | 6,552 | 6,722 | 1,980 |
Provision for income taxes | $ 53,679 | $ 65,430 | $ 51,863 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Pre Tax Income [Line Items] | ||||
Pre-tax income from U.S. operations | $ 165.2 | $ 161.9 | $ 126.4 | |
U.S. federal tax at statutory rate | 35.00% | 35.00% | 35.00% | |
Provisional tax charge recorded due to enactment of Tax Act | $ 11.7 | |||
Re-measurement of U.S. deferred tax assets | 6.7 | |||
Repatriation taxes on accumulated undistributed foreign earnings | $ 5 | |||
Additional annual limitations | 50% or greater change | |||
Percentage of change in ownership | 50.00% | |||
Additional annual limitations period | 3 years | |||
Capital loss on the sale | $ 20.6 | |||
Capital loss carried back | $ 1.2 | |||
New York State [Member] | Earliest Tax Year [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Income tax year under examination | 2,010 | |||
New York State [Member] | Latest Tax Year [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Income tax year under examination | 2,013 | |||
Scenario Forecast [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
U.S. federal tax at statutory rate | 21.00% | |||
Foreign Country [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Pre-tax income from foreign operations | $ 36.6 | $ 29.7 | $ 21.5 | |
US Country [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Net operating loss carryforwards related to prior ownership change | $ 4.2 | |||
Net operating loss carryforwards, expiration date | 2,021 |
Income Taxes - Difference Betwe
Income Taxes - Difference Between the Company's Reported Provision for Income Taxes and the U.S. Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal tax at statutory rate | 35.00% | 35.00% | 35.00% |
State and local taxes - net of federal benefit | 1.50% | 2.90% | 3.40% |
Credits and deductions related to research activities | (1.20%) | (1.30%) | (1.30%) |
Foreign rate differential benefit | (2.90%) | (2.30%) | (2.00%) |
Excess tax benefit from stock-based compensation | (11.60%) | ||
Tax Cuts and Jobs Act provisional tax charge | 5.80% | ||
Other, net | (0.20%) | ||
Provision for income taxes | 26.60% | 34.10% | 35.10% |
Income Taxes - Summary of Compa
Income Taxes - Summary of Company's Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||||
Capital loss carryforwards | $ 4,648 | $ 7,235 | ||
Stock compensation expense | 4,534 | 11,307 | ||
Other | 1,143 | 1,468 | ||
Total deferred tax assets | 11,197 | 21,919 | ||
Valuation allowance | (4,648) | (7,235) | $ (7,294) | $ (7,428) |
Net deferred tax assets | 6,549 | 14,684 | ||
Deferred tax liabilities: | ||||
Depreciation and amortization | (1,369) | (1,456) | ||
Capitalized software development costs | (3,479) | (4,923) | ||
Intangible assets | (967) | (1,037) | ||
Deferred tax assets, net | 734 | 7,268 | ||
US Country [Member] | ||||
Deferred tax assets: | ||||
U.S. net operating loss carryforwards | $ 872 | $ 1,909 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Valuation allowance at beginning of year | $ 7,235 | $ 7,294 | $ 7,428 |
Federal and state tax rate changes | (2,587) | (59) | (134) |
Valuation allowance at end of year | $ 4,648 | $ 7,235 | $ 7,294 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 29 | $ 265 | $ 265 |
Additions attributable to state and local apportionment | 2,650 | ||
Reductions for tax positions of prior years | (29) | (236) | 0 |
Balance at end of year | $ 2,650 | $ 29 | $ 265 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Sep. 30, 2017 | Jan. 31, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2016 | |
Class of Stock [Line Items] | ||||||||||||||||||
Common stock, shares authorized | 110,000,000 | 110,000,000 | 110,000,000 | 110,000,000 | ||||||||||||||
Common stock entitles | One | |||||||||||||||||
Cash dividends declared per common share | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 1.32 | $ 1.04 | $ 0.80 | |||
Share Repurchase Program [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares repurchase program period | 15 months | 2 years | ||||||||||||||||
Shares repurchase program authorized | $ 100,000,000 | $ 25,000,000 | $ 100,000,000 | |||||||||||||||
Shares repurchase program additional authorized amount | $ 50,000,000 | |||||||||||||||||
Commencement date | 2017-10 | |||||||||||||||||
Common Stock Non-Voting [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Common stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||||
Common Stock Voting [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Common stock, shares authorized | 110,000,000 | 110,000,000 | 110,000,000 | 110,000,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of the Companys Change in the Common Stock (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Outstanding shares of voting common stock at the beginning of year | 37,543,775 | ||
Exercise of stock options | 380,967 | 195,410 | 196,034 |
Outstanding shares of voting common stock at the end of year | 37,620,736 | 37,543,775 | |
Voting Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Outstanding shares of voting common stock at the beginning of year | 37,544,000 | 37,409,000 | 37,319,000 |
Exercise of stock options | 262,000 | 181,000 | 183,000 |
Issuance of restricted stock, net of shares withheld for withholding tax payments and cancellations | 39,000 | 104,000 | 178,000 |
Repurchases | (224,000) | (150,000) | (271,000) |
Outstanding shares of voting common stock at the end of year | 37,621,000 | 37,544,000 | 37,409,000 |
Stock-Based Compensation Plan55
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Apr. 01, 2017 | Jan. 31, 2016 | Jan. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares available for grant under the stock incentive plans | 219,983 | |||||
Exercise price for the shares of the Company's common stock | $ 40.08 | $ 32.24 | $ 36.46 | |||
Grant date fair value | $ 68,068 | |||||
Fair value assumptions, Dividend yield rate | 0.80% | 1.00% | 1.10% | |||
Closing price of common stock | $ 201.75 | |||||
Unrecognized compensation costs related to non-vested | $ 4,300 | |||||
Weighted-average period over which cost is expected to be recognized | 2 years 2 months 12 days | |||||
Pay-out ranges, Minimum | 0.00% | |||||
Pay-out ranges, Maximum | 150.00% | |||||
Restricted Stock and Performance Shares [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unrecognized compensation costs related to non-vested | $ 18,600 | |||||
Weighted-average period over which cost is expected to be recognized | 1 year 8 months 12 days | |||||
Employees Stock Purchase Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Period vested for option grants | 1 year | |||||
Number of non-option equity instruments granted during the period | 1,034 | 1,190 | 0 | |||
Percentage of shares grant to participants | 20.00% | |||||
Chief Executive Officer [Member] | Incentive Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options Expiration Period | 5 years 6 months | |||||
Exercise price for the shares of the Company's common stock | $ 88.25 | |||||
Number of stock option equity instruments granted during the period | 119,981 | |||||
Grant date fair value | $ 2,000 | |||||
Percentage of fair market value of the common stock on the grant date | 125.00% | |||||
Fair value assumptions, Risk free interest rate | 1.40% | |||||
Fair value assumptions, Volatility rate | 27.30% | |||||
Fair value assumptions, Dividend yield rate | 0.90% | |||||
Chief Executive Officer [Member] | Performance Based Share [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Grant date fair value | $ 6,000 | |||||
Fair value assumptions, Risk free interest rate | 1.30% | |||||
Fair value assumptions, Volatility rate | 27.30% | |||||
Fair value assumptions, Dividend yield rate | 0.90% | |||||
Number of non-option equity instruments granted during the period | 116,659 | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number | 24,240 | 92,419 | ||||
Chief Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award award vesting date | Jan. 15, 2018 | |||||
Chief Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member] | Incentive Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting rights | 33.33% | |||||
Chief Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member] | Performance Based Share [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting rights | 50.00% | |||||
Chief Executive Officer [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting rights | 50.00% | |||||
Share-based compensation arrangement by share-based payment award award vesting date | Jan. 15, 2019 | |||||
Chief Executive Officer [Member] | Share-based Compensation Award, Tranche Two [Member] | Incentive Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting rights | 33.33% | |||||
Chief Executive Officer [Member] | Share-based Compensation Award, Tranche Three [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award award vesting date | Jan. 15, 2020 | |||||
Chief Executive Officer [Member] | Share-based Compensation Award, Tranche Three [Member] | Incentive Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting rights | 33.33% | |||||
Officers and Senior Managers [Member] | Performance Based Share [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options Expiration Period | 2 years | 3 years | ||||
Pay-out ranges, Minimum | 0.00% | 0.00% | ||||
Pay-out ranges, Maximum | 150.00% | 150.00% | ||||
Number of non-option equity instruments granted during the period | 9,367 | 33,509 | ||||
Fair value per share on the grant date | $ 186.74 | $ 103.30 | ||||
Officers and Senior Managers [Member] | Share-based Compensation Award, Tranche One [Member] | Performance Based Share [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting rights | 50.00% | 50.00% | ||||
Share-based compensation arrangement by share-based payment award award vesting date | Apr. 1, 2020 | Jan. 31, 2020 | ||||
Officers and Senior Managers [Member] | Share-based Compensation Award, Tranche Two [Member] | Performance Based Share [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, award vesting rights | 50.00% | 50.00% | ||||
Share-based compensation arrangement by share-based payment award award vesting date | Apr. 1, 2021 | Jan. 31, 2021 | ||||
Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Period vested for option grants | 3 years | |||||
Options Expiration Period | 6 years | |||||
Minimum [Member] | Restricted Stock and Performance Shares [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Period vested for option grants | 3 years | |||||
Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Period vested for option grants | 5 years | |||||
Options Expiration Period | 10 years | |||||
Maximum [Member] | Restricted Stock and Performance Shares [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Period vested for option grants | 5 years |
Stock-Based Compensation Plan56
Stock-Based Compensation Plans - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employees [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | $ 13,448 | $ 13,602 | $ 11,618 |
Employees [Member] | Restricted Stock and Performance Shares [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | 11,566 | 12,459 | 10,792 |
Employees [Member] | Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | 1,882 | 1,143 | 826 |
Non-Employee Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | 14,421 | 14,511 | 12,519 |
Non-Employee Directors [Member] | Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | $ 973 | $ 909 | $ 901 |
Stock-Based Compensation Plan57
Stock-Based Compensation Plans - Assumptions Used for the Black-Scholes Option-Pricing Model to Determine the Per Share Weighted Average Fair Value for Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected life (years) | 5 years | 6 years | 7 years |
Risk-free interest rate | 1.90% | 1.90% | 1.90% |
Expected volatility | 28.00% | 33.00% | 56.70% |
Expected dividend yield | 0.80% | 1.00% | 1.10% |
Stock-Based Compensation Plan58
Stock-Based Compensation Plans - Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Shares, Beginning balance | 855,740 | 939,036 | 1,014,420 |
Number of Shares, Granted | 54,838 | 112,988 | 120,650 |
Number of Shares, Canceled | (874) | ||
Number of Shares, Exercised | (380,967) | (195,410) | (196,034) |
Number of Shares, Ending Balance | 529,611 | 855,740 | 939,036 |
Number of Shares, Exercisable | 254,079 | ||
Weighted Average Exercise Price, Beginning Balance | $ 36.80 | $ 23.83 | $ 13.81 |
Weighted Average Exercise Price, Granted | 156.85 | 102.40 | 88.15 |
Weighted Average Exercise Price, Canceled | 101.77 | ||
Weighted Average Exercise Price, Exercised | 11.26 | 12.35 | 11.60 |
Weighted Average Exercise Price, Ending Balance | 67.60 | $ 36.80 | $ 23.83 |
Weighted Average Exercise Price, Exercisable | $ 24.61 | ||
Remaining Contractual Term, Outstanding at December 31, 2016 | 3 years 3 months 18 days | ||
Remaining Contractual Term, Exercisable at December 31, 2016 | 3 years | ||
Intrinsic Value, Exercised | $ 68,068 | ||
Intrinsic Value, Ending Balance | 71,046 | ||
Intrinsic Value, Exercisable | $ 45,009 |
Stock-Based Compensation Plan59
Stock-Based Compensation Plans - Summary of Performance of Share Activity for Annual Awards (Detail) - Performance Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share pay-out plan | 12,971 | 15,390 | 28,520 |
Actual share pay-out in following year | 8,094 | 21,423 | 37,696 |
Weighted average fair value per share on grant date | $ 155.53 | $ 101.77 | $ 70.60 |
Stock-Based Compensation Plan60
Stock-Based Compensation Plans - Restricted Stock and Performance Share Activity (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Restricted Shares, Beginning balance | 383,978 | 432,138 | 435,989 |
Number of Restricted Shares, Granted | 61,434 | 95,419 | 117,668 |
Number of Restricted Shares, Performance share pay-out | 21,422 | 61,936 | 117,647 |
Number of Restricted Shares, Canceled | (4,590) | (12,786) | (3,845) |
Number of Restricted Shares, Vested | (142,645) | (192,729) | (235,321) |
Number of Restricted Shares, Ending balance | 319,599 | 383,978 | 432,138 |
Weighted Average Grant Date Fair Value, Beginning balance | $ 71.50 | $ 56.24 | $ 41.83 |
Weighted Average Grant Date Fair Value, Ending balance | $ 88.77 | $ 71.50 | $ 56.24 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share Basic And Diluted [Abstract] | |||
Net income | $ 148,089 | $ 126,172 | $ 96,037 |
Basic weighted average shares outstanding | 36,864 | 36,844 | 36,690 |
Dilutive effect of stock options and restricted stock | 1,174 | 894 | 947 |
Diluted weighted average shares outstanding | 38,038 | 37,738 | 37,637 |
Basic earnings per share | $ 4.02 | $ 3.42 | $ 2.62 |
Diluted earnings per share | $ 3.89 | $ 3.34 | $ 2.55 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options and Restricted Stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Stock options and restricted stock excluded from the computation of diluted earnings per share | 31,766 | 84,052 | 128,383 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2015 | Dec. 31, 2017 | |
Line Of Credit Facility [Line Items] | |||
Revolving loans and letters of credit | $ 100,000,000 | ||
Letter of credit outstanding | $ 900,000 | ||
Additional Credit Agreement | $ 50,000,000 | ||
Amount available under credit agreement | $ 99,100,000 | ||
Period of credit agreement | 2 years | ||
Equity interest | 65.00% | ||
Minimum [Member] | |||
Line Of Credit Facility [Line Items] | |||
Excess judgments against the company | $ 10,000,000 | ||
Credit Agreement [Member] | |||
Line Of Credit Facility [Line Items] | |||
Expiration period of credit agreement | Oct. 31, 2018 | ||
Period of credit agreement | 1 year |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)AgreementSubsidiary | Dec. 31, 2016USD ($)ft² | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | |||
Non-cancelable leases expiration date | Dec. 31, 2033 | ||
Rental expense | $ 5,300 | $ 4,000 | $ 4,100 |
Number of lease agreements assigned to third parties | Agreement | 1 | ||
Lease termination dates | 2020-11 | ||
Future lease obligation under sublease arrangements | $ 800 | ||
Number of subsidiaries | Subsidiary | 2 | ||
Settlement days of bond transaction | Within one to two trading days | ||
Revenues from riskless principal transactions | $ 45,700 | 37,700 | 16,900 |
Collateral deposits | 1,200 | 1,100 | |
Clearing expenses | 5,797 | $ 6,060 | $ 3,313 |
Lease Agreement [Member] | |||
Loss Contingencies [Line Items] | |||
Newly built office space | ft² | 83,000 | ||
Standby Letters of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Contingent obligation for standby letter of credit issued to Landlord | $ 900 |
Commitments and Contingencies65
Commitments and Contingencies - Summary of Minimum Rental Commitments under Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2,018 | $ 5,000 |
2,019 | 9,659 |
2,020 | 10,770 |
2,021 | 10,149 |
2,022 | 9,129 |
2023 and thereafter | 99,166 |
Operating Leases | $ 143,873 |
Segment and Geographic Inform66
Segment and Geographic Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Number of operating segment | 1 | ||
Geographic Concentration Risk [Member] | Total Revenue and Long-lived Assets [Member] | United Kingdom [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Segment and Geographic Inform67
Segment and Geographic Information - Summary of Revenue and Long-lived Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 397,471 | $ 369,919 | $ 303,098 |
Long-lived assets | 38,548 | 31,104 | |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 336,867 | 314,343 | 262,558 |
Long-lived assets | 27,990 | 23,370 | |
United Kingdom [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 59,151 | 54,015 | 39,338 |
Long-lived assets | 10,532 | 7,713 | |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,453 | 1,561 | $ 1,202 |
Long-lived assets | $ 26 | $ 21 |
Retirement and Deferred Compe68
Retirement and Deferred Compensation Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Contribution to defined plans | $ 1,800,000 | $ 1,900,000 | $ 1,900,000 |
Non-qualified deferred cash incentive plan maximum eligibility percentage of employees | 100.00% | ||
Mutual fund investments and deferred compensation obligation, at fair value | $ 3,200,000 | 1,300,000 | |
Trading gain and compensation expense | $ 400,000 | $ 200,000 | $ 0 |
Customer Concentration - Additi
Customer Concentration - Additional Information (Detail) - Customer | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||
Number of client accounted for more than 10% of total revenue | 0 | 0 | 0 |
Percentage of outstanding shares owned by single client | 8.30% | ||
Customer Concentration Risk [Member] | Trading Volume [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of trading volumes by single client | 12.20% | 14.20% | 15.30% |