Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 22, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | LPL Financial Holdings Inc. | ||
Entity Central Index Key | 1,397,911 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Amendment Flag | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 3,800,000,000 | ||
Entity Common Stock, Shares Outstanding | 88,939,376 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES: | |||
Commission | $ 1,976,845 | $ 2,118,494 | $ 2,077,566 |
Advisory | 1,352,454 | 1,337,959 | 1,187,352 |
Asset-based | 493,687 | 476,595 | 430,990 |
Transaction and fee | 401,948 | 369,821 | 361,252 |
Interest income, net of interest expense | 19,192 | 18,982 | 17,887 |
Other | 30,928 | 51,811 | 65,811 |
Total net revenues | 4,275,054 | 4,373,662 | 4,140,858 |
EXPENSES: | |||
Commission and advisory | 2,864,813 | 2,998,702 | 2,847,785 |
Compensation and benefits | 440,049 | 421,829 | 400,967 |
Promotional | 139,198 | 124,677 | 111,539 |
Depreciation and amortization | 73,383 | 57,977 | 44,497 |
Amortization of Intangible Assets | 38,239 | 38,868 | 39,006 |
Professional services | 64,522 | 62,184 | 46,559 |
Occupancy and equipment | 84,112 | 82,430 | 67,551 |
Brokerage, clearing, and exchange | 52,516 | 49,015 | 45,059 |
Communications and data processing | 46,871 | 43,823 | 43,075 |
Restructuring charges | 11,967 | 34,652 | 30,186 |
Other | 117,693 | 109,327 | 113,923 |
Total operating expenses | 3,933,363 | 4,023,484 | 3,790,147 |
Non-operating interest expense | 59,136 | 51,538 | 51,446 |
Loss on extinguishment of debt | 0 | 3,943 | 7,962 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 282,555 | 294,697 | 291,303 |
PROVISION FOR INCOME TAXES | 113,771 | 116,654 | 109,446 |
NET INCOME | $ 168,784 | $ 178,043 | $ 181,857 |
EARNINGS PER SHARE (NOTE 16) | |||
Earnings per share, basic | $ 1.77 | $ 1.78 | $ 1.74 |
Earnings per share, diluted | $ 1.74 | $ 1.75 | $ 1.72 |
Weighted-average shares outstanding, basic | 95,273 | 99,847 | 104,698 |
Weighted-average shares outstanding, diluted | 96,786 | 101,651 | 106,003 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ 132 | $ 722 | $ 72 |
Net income | 168,784 | 178,043 | 181,857 |
Other comprehensive income, net of tax: | |||
Unrealized gain on cash flow hedges, net of tax expense of $132, $722, and $72 for the years ended December 31, 2015, 2014, and 2013, respectively | 179 | 1,137 | 115 |
Reclassification adjustment for realized (gain) loss on cash flow hedges included in professional services in the consolidated statements of income, net of tax expense (benefit) of $353, $198, and $0 for the years ended December 31, 2015, 2014, and 2013, respectively | (563) | (315) | 0 |
Total other comprehensive income, net of tax | (384) | 822 | 115 |
Total comprehensive income | $ 168,400 | $ 178,865 | $ 181,972 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ 132 | $ 722 | $ 72 |
Tax expense (benefit) on adjustment for items reclassified to earnings | $ (353) | $ 198 | $ 0 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 724,529 | $ 412,332 |
Cash and securities segregated under federal and other regulations | 671,339 | 568,930 |
Restricted Cash | 27,839 | 1,109 |
Receivables from: | ||
Clients, net | 339,089 | 365,390 |
Product sponsors, broker-dealers and clearing organizations | 161,224 | 177,470 |
Advisor loans, net | 148,978 | 120,325 |
Others, net | 180,161 | 171,124 |
Securities owned: | ||
Trading — at fair value | 11,995 | 13,466 |
Held-to-maturity | 9,847 | 8,594 |
Securities borrowed | 6,001 | 5,035 |
Income taxes receivable | 0 | 84 |
Fixed assets, net | 275,419 | 214,154 |
Goodwill | 1,365,838 | 1,365,838 |
Intangible assets, net | 392,031 | 430,704 |
Other assets | 206,771 | 187,375 |
Total assets | 4,521,061 | 4,041,930 |
LIABILITIES: | ||
Drafts payable | 189,083 | 180,099 |
Payables to clients | 747,421 | 652,714 |
Payables to broker-dealers and clearing organizations | 48,032 | 45,427 |
Accrued commission and advisory expenses payable | 129,512 | 146,504 |
Accounts payable and accrued liabilities | 332,492 | 289,426 |
Income taxes payable | 8,680 | 0 |
Unearned revenue | 65,480 | 64,482 |
Securities sold, but not yet purchased — at fair value | 268 | 302 |
Senior secured credit facilities, net | 2,188,240 | 1,625,195 |
Leasehold Financing Obligation | 59,940 | 0 |
Deferred income taxes, net | (36,303) | (66,181) |
Total liabilities | 3,805,451 | 3,070,330 |
STOCKHOLDERS' EQUITY: | ||
Common stock, $.001 par value; 600,000,000 shares authorized; 119,572,352 shares and 118,234,552 shares issued at December 31, 2015 and 2014, respectively | 119 | 118 |
Additional paid-in capital | 1,418,298 | 1,355,085 |
Treasury stock, at cost — 30,048,027 shares and 21,089,882 shares at December 31, 2015 and 2014, respectively | (1,172,490) | (780,661) |
Accumulated other comprehensive income | 553 | 937 |
Retained earnings | 469,130 | 396,121 |
Total stockholders' equity | 715,610 | 971,600 |
Total liabilities and stockholders' equity | $ 4,521,061 | $ 4,041,930 |
Consolidated Statements of Fin6
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated amortization, Debt issuance costs | $ 15,129 | $ 11,724 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 119,572,352 | 118,234,552 |
Treasury stock, shares | 30,048,027 | 21,089,882 |
Advisor Loans [Member] | ||
Allowance for Doubtful Accounts Receivable | $ 697 | $ 697 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
BEGINNING BALANCE at Dec. 31, 2012 | $ 1,140,020 | $ 116 | $ 1,228,075 | $ (287,998) | $ 0 | $ 199,827 |
BEGINNING BALANCE, shares at Dec. 31, 2012 | 115,714,000 | 9,422,000 | ||||
Net income and other comprehensive income, net of tax expense | 181,972 | 115 | 181,857 | |||
Treasury stock purchases | (219,091) | $ (219,091) | ||||
Treasury stock purchases, shares | 5,820,000 | |||||
Cash dividends on common stock | (68,008) | (68,008) | ||||
Stock options exercises and other | 35,025 | $ 1 | 34,246 | $ 884 | (106) | |
Stock options exercises and other, shares | 1,398,000 | (26,000) | ||||
Excess tax benefits from share-based compensation | 5,381 | 5,381 | ||||
Share-based compensation | 24,672 | 24,672 | ||||
Share-based compensation, shares | ||||||
ENDING BALANCE at Dec. 31, 2013 | 1,099,971 | $ 117 | 1,292,374 | $ (506,205) | 115 | 313,570 |
ENDING BALANCE, shares at Dec. 31, 2013 | 117,112,000 | 15,216,000 | ||||
Net income and other comprehensive income, net of tax expense | 178,865 | 822 | 178,043 | |||
Issuance of common stock to settle restricted stock units | (868) | $ 1 | $ (869) | |||
Issuance of common stock to settle restricted stock units, shares | 50,000 | 17,000 | ||||
Treasury stock purchases | (275,079) | $ (275,079) | ||||
Treasury stock purchases, shares | 5,899,000 | |||||
Cash dividends on common stock | (95,616) | (95,616) | ||||
Stock options exercises and other | 28,530 | 26,914 | $ 1,492 | 124 | ||
Stock options exercises and other, shares | 1,073,000 | (42,000) | ||||
Excess tax benefits from share-based compensation | 8,218 | 8,218 | ||||
Share-based compensation | 27,579 | 27,579 | ||||
ENDING BALANCE at Dec. 31, 2014 | 971,600 | $ 118 | $ 1,355,085 | $ (780,661) | 937 | 396,121 |
ENDING BALANCE, shares at Dec. 31, 2014 | 118,235,000 | 21,090,000 | ||||
Net income and other comprehensive income, net of tax expense | 168,400 | (384) | 168,784 | |||
Issuance of common stock to settle restricted stock units | (3,018) | $ 1 | $ (3,019) | |||
Issuance of common stock to settle restricted stock units, shares | 184,000 | 68,000 | ||||
Treasury stock purchases | $ (390,835) | $ (390,835) | ||||
Treasury stock purchases, shares | 8,947,680 | 8,947,000 | ||||
Cash dividends on common stock | $ (95,814) | (95,814) | ||||
Stock options exercises and other | 33,030 | $ 30,966 | $ 2,025 | 39 | ||
Stock options exercises and other, shares | 1,153,000 | (57,000) | ||||
Excess tax benefits from share-based compensation | 3,034 | 3,034 | ||||
Share-based compensation | 29,213 | 29,213 | ||||
ENDING BALANCE at Dec. 31, 2015 | $ 715,610 | $ 119 | $ 1,418,298 | $ (1,172,490) | $ 553 | $ 469,130 |
ENDING BALANCE, shares at Dec. 31, 2015 | 119,572,000 | 30,048,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 168,784 | $ 178,043 | $ 181,857 |
Noncash items: | |||
Depreciation and amortization | 73,383 | 57,977 | 44,497 |
Amortization of Intangible Assets | 38,239 | 38,868 | 39,006 |
Amortization of debt issuance costs | 3,405 | 3,973 | 4,365 |
Share-based compensation | 29,213 | 27,579 | 24,672 |
Excess tax benefits related to share-based compensation | (3,810) | (8,685) | (7,172) |
Provision for doubtful accounts | 2,542 | 2,432 | 2,021 |
Deferred income taxes | (30,153) | (24,100) | (28,943) |
Loss on extinguishment of debt | 0 | 3,943 | 7,962 |
Net changes in estimated fair value of contingent consideration obligations | 0 | 0 | 12,676 |
Closure of NestWise | 0 | 0 | 9,279 |
Loan forgiveness | 37,658 | 28,409 | 21,006 |
Other | 11,695 | 3,007 | 1,598 |
Changes in operating assets and liabilities: | |||
Cash and securities segregated under federal and other regulations | (102,409) | (56,579) | 65,082 |
Increase (Decrease) in Restricted Cash for Operating Activities | (25,589) | 0 | 0 |
Receivables from clients | 26,081 | 7,628 | (3,862) |
Receivables from product sponsors, broker-dealers and clearing organizations | 16,247 | (3,400) | (21,120) |
Advisor Loans | (28,653) | (21,434) | (9,677) |
Receivables from others | (48,173) | (28,181) | (44,043) |
Securities owned | 144 | (4,638) | (1,148) |
Securities borrowed | (966) | 2,067 | 2,346 |
Other assets | (30,714) | (45,523) | (19,458) |
Drafts payable | 8,984 | (14,872) | (8,161) |
Payables to clients | 94,707 | 87,510 | (184,301) |
Payables to broker-dealers and clearing organizations | 2,605 | 2,270 | (9,874) |
Accrued commissions and advisory expenses payable | (16,992) | 11,355 | 6,690 |
Accounts payable and accrued liabilities | 39,686 | (10,522) | 48,127 |
Income taxes receivable/payable | 12,574 | 4,281 | 14,916 |
Unearned revenue | 998 | (9,257) | 11,931 |
Securities sold, but not yet purchased | (35) | 91 | (155) |
Net cash provided by operating activities | 279,451 | 232,242 | 160,117 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (72,565) | (89,648) | (78,239) |
Purchase of goodwill and other intangible assets | 0 | (9,000) | 0 |
Proceeds from disposal of fixed assets | 10 | 7,123 | 0 |
Purchase of securities classified as held-to-maturity | (4,602) | (7,498) | (2,595) |
Proceeds from maturity of securities classified as held-to-maturity | 3,350 | 5,750 | 5,900 |
Deposits of restricted cash | (1,750) | (4,679) | (1,500) |
Release of restricted cash | 609 | 4,820 | 815 |
Proceeds from sale of equity investment | 0 | 0 | 3,310 |
Purchases of minority interest investments | 0 | 0 | (2,500) |
Net cash used in investing activities | (74,948) | (93,132) | (74,809) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from revolving credit facility | 75,000 | 110,000 | 0 |
Repayments of revolving credit facility | 185,000 | 0 | 0 |
Repayment of senior secured term loans | (9,221) | (10,838) | (866,579) |
Proceeds from senior secured term loans | 693,000 | 0 | 1,078,957 |
Payment of debt issuance costs | (13,258) | (4,876) | (2,461) |
Payment of contingent consideration | 0 | (3,300) | 0 |
Tax payments related to settlement of restricted stock units | (3,018) | (868) | 0 |
Repurchase of common stock | (390,835) | (275,079) | (219,091) |
Dividends on common stock | (95,814) | (95,616) | (68,008) |
Excess tax benefits related to share-based compensation | 3,810 | 8,685 | 7,172 |
Proceeds from stock option exercises and other | 33,030 | 28,530 | 35,025 |
Net cash provided by (used in) financing activities | 107,694 | (243,362) | (34,985) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 312,197 | (104,252) | 50,323 |
CASH AND CASH EQUIVALENTS - Beginning of year | 412,332 | 516,584 | 466,261 |
CASH AND CASH EQUIVALENTS - End of year | 724,529 | 412,332 | 516,584 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Interest paid | 51,114 | 51,588 | 51,712 |
Income taxes paid | 131,833 | 139,315 | 123,583 |
NONCASH DISCLOSURES: | |||
Capital expenditures included in accounts payable and accrued liabilities | 11,462 | 8,184 | 16,075 |
Fixed assets acquired under built-to-suit lease | 0 | 8,114 | 22,979 |
Finance Obligation related to real estate projects | 59,900 | 0 | |
Discount on proceeds from senior secured credit facilities recorded as debt issuance costs | $ 7,000 | $ 0 | $ 4,893 |
Organization and Description of
Organization and Description of the Company | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of the Company | Organization and Description of the Company LPL Financial Holdings Inc. ( “ LPLFH ” ), a Delaware holding corporation, together with its consolidated subsidiaries (collectively, the “ Company ” ) provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions (collectively “ advisors ” ) in the United States of America. Through its custody and clearing platform, using both proprietary and third-party technology, the Company provides access to diversified financial products and services, enabling its advisors to offer independent financial advice and brokerage services to retail investors (their “ clients ” ). Description of Subsidiaries LPL Holdings, Inc. ( “ LPLH ” ), a Massachusetts holding corporation, owns 100% of the issued and outstanding common stock or other ownership interest in each of LPL Financial LLC ( “ LPL Financial ” ), Fortigent Holdings Company, Inc., Independent Advisers Group Corporation ( “ IAG ” ), LPL Insurance Associates, Inc. ( “ LPLIA ” ), LPL Independent Advisor Services Group LLC ( “ IASG ” ), and UVEST Financial Services Group, Inc. ( “ UVEST ” ). LPLH is also the majority stockholder in PTC Holdings, Inc. ( “ PTCH ” ), and owns 100% of the issued and outstanding voting common stock. Each member of PTCH's board of directors meets the direct equity ownership interest requirements that are required by the Office of the Comptroller of the Currency. The Company has established a wholly-owned series captive insurance entity that underwrites insurance for various legal and regulatory risks. LPL Financial, with primary offices in Boston, San Diego, and Charlotte, is a clearing broker-dealer and an investment adviser that principally transacts business as an agent for its advisors and financial institutions on behalf of their clients in a broad array of financial products and services. LPL Financial is licensed to operate in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands. Fortigent Holdings Company, Inc. and its subsidiaries ( “ Fortigent ” ), acquired in April 2012, provides solutions and consulting services to registered investment advisors, banks, and trust companies serving high-net-worth clients. PTCH is a holding company for The Private Trust Company, N.A. ( “ PTC ” ). PTC is chartered as a non-depository limited purpose national bank, providing a wide range of trust, investment management oversight, and custodial services for estates and families. PTC also provides Individual Retirement Account custodial services for LPL Financial. IAG is a registered investment adviser that offers an investment advisory platform for clients of advisors working for other financial institutions. LPLIA operates as an insurance brokerage general agency that offers life, long-term care, and disability insurance products and services for LPL Financial advisors. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ( “ GAAP ” ), which require the Company to make estimates and assumptions regarding the valuation of certain financial instruments, intangible assets, allowance for doubtful accounts, share-based compensation, accruals for liabilities, income taxes, revenue and expense accruals, and other matters that affect the consolidated financial statements and related disclosures. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the consolidated financial statements. Reclassifications In the consolidated statements of income, the Company reclassified amortization of intangible assets out of depreciation and amortization. The amounts reclassified are presented in the consolidated statements of income for each of the three years ended December 31, 2015 . The Company also reclassified receivables from advisor loans out of receivables from other receivables in the consolidated statements of financial condition. The amounts reclassified are presented in the consolidated statements of financial condition for the two years ended December 31, 2015 . Also in the consolidated statements of financial condition the Company reclassified debt issuance costs as a direct deduction from the carrying amount of the related debt liability Consolidation These consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence, but does not exercise control and is not the primary beneficiary, are accounted for using the equity method. Reportable Segment Management has determined that our company operates in one segment, given the similarities in economic characteristics between our operations and the common nature of our products and services, production and distribution process, and regulatory environment. Revenue Recognition Substantially all of the Company's revenues are based on contractual arrangements. In determining the appropriate recognition of commissions, the Company reviews the terms and conditions of the brokerage account agreements between the Company and its advisors' clients, representative agreements with its advisors, which include payout rates and terms, and selling agreements with product sponsors for packaged investment products such as mutual funds, annuities, insurance, and alternative investments. In determining the appropriate recognition of advisory revenues, the Company reviews the terms and conditions of the advisory agreements between the advisors' clients and the applicable registered investment advisor ( “ RIA ” ), representative agreements with its advisors, and agreements with third parties who provide specific investment management or investment strategies. Revenues are recognized in the periods in which the related services are performed provided that persuasive evidence of an arrangement exists, the fee is fixed or determinable, and collectability is reasonably assured. Payments received by the Company in advance of the performance of service are deferred and recognized as revenue when earned. Management considers the nature of the Company's contractual arrangements in determining whether to recognize certain types of revenue on the basis of the gross amount billed or net amount retained after payments are made to providers of certain services related to the product or service offering. The main factors the Company uses to determine whether to record revenue on a gross or net basis are whether: • the Company is primarily responsible for the service to the advisor and their client; • the Company has discretion in establishing fees paid by the client and fees due to the third-party service provider; and • the Company is involved in the determination of product or service specifications. When client fees include a portion of charges that are paid to another party and the Company is primarily responsible for providing the service to the client, revenue is recognized on a gross basis in an amount equal to the fee paid by the client. The cost of revenues recognized is the amount due to the other party and is recorded as commission and advisory expense in the consolidated statements of income. In instances in which another party is primarily responsible for providing the service to the client, revenue is recognized in the net amount retained by the Company. The portion of the fees that are collected from the client by the Company and remitted to the other party are considered pass through amounts and accordingly are not a component of revenues or cost of revenues. The Company recognizes revenue related to commission, advisory fees, asset-based fees, transaction and fees, and interest income, net of interest expense. Commission Revenues Commission revenues represent commissions generated by the Company's advisors for their clients' purchases and sales of securities on exchanges and over-the-counter, as well as purchases of various investment products such as mutual funds, variable and fixed annuities, alternative investments including non-traded real estate investment trusts and business development companies, fixed income, insurance, group annuities, and option and commodity transactions. The Company generates two types of commission revenues: transaction-based sales commissions that occur at the point of sale, as well as trailing commissions for which the Company provides ongoing support, awareness, and education to clients of its advisors. Transaction-based sales commissions are recognized as revenue on a trade-date basis, which is when the Company's performance obligations in generating the commissions have been substantially completed. The Company settles a significant volume of transactions that are initiated directly between its advisors and product sponsors, particularly with regard to mutual fund, 529 education savings plan, fixed and variable annuity, and insurance products. As a result, management must estimate a portion of its commission revenues earned from clients for purchases and sales of these products for each accounting period for which the proceeds have not yet been received. These estimates are based on the amount of commissions earned from transactions in these products in prior periods. Trailing commission revenues include mutual fund, 529 education savings plan, and fixed and variable product trailing fees, which are recurring in nature. These trailing fees are earned by the Company based on a percentage of the current market value of clients' investment holdings in trail-eligible assets, and recognized over the period during which services are performed. Because trailing commission revenues are generally paid in arrears, management estimates the majority of trailing commission revenues earned during each period. These estimates are based on a number of factors, including market levels and the amount of trailing commission revenues received in prior periods. Commission revenue accruals are classified within receivables from product sponsors, broker-dealers, and clearing organizations in the consolidated statements of financial condition. A substantial portion of the commission revenue is ultimately paid to the advisors. The Company records an estimate for commissions payable based upon average payout ratios for each product for which the Company has accrued commission revenue. Such amounts are classified as accrued commission and advisory expenes payable in the consolidated statements of financial condition and commission and advisory expense in the consolidated statements of income. Advisory Revenues The Company records fees charged to clients as advisory revenues in advisory accounts where LPL Financial or IAG is the RIA. A substantial portion of these advisory fees are paid to the related advisor and these payments are classified as commission and advisory expense in the consolidated statements of income. Certain advisors conduct their advisory business through separate entities by establishing their own RIA firm pursuant to the Advisers Act or through their respective states' investment advisory licensing rules, rather than using the Company's corporate RIA platform. These stand-alone entities, or Hybrid RIAs, engage the Company for clearing, regulatory, and custody services, as well as access to the Company's investment advisory platforms. The advisory revenue generated by these Hybrid RIAs is earned by the advisors, and accordingly not included in the Company's advisory revenues. The Company charges separate fees to Hybrid RIAs for technology, custody, administrative, and clearing services, primarily based on the value of assets within these advisory accounts, which are classified as advisory revenues in the consolidated statements of income. Asset-Based Revenues Asset-based revenues are comprised of fees from cash sweep programs, financial product manufacturer sponsorship programs, and omnibus processing and networking services and are recognized ratably over the period in which services are provided. Transaction and Fee Revenues The Company charges fees for executing certain transactions in client accounts. Transaction related charges are recognized on a trade-date basis. Other fees relate to services provided and other account charges generally outlined in agreements with clients, advisors, and financial institutions. Such fees are recognized as services are performed or as earned, as applicable. In addition, the Company offers various services for which fees are charged on a subscription basis and recognized over the subscription period. Interest Income, Net of Interest Expense The Company earns interest income from its cash equivalents and client margin balances, less interest expense on related transactions. Because interest expense incurred in connection with cash equivalents and client margin balances is completely offset by revenue on related transactions, the Company considers such interest to be an operating expense. Interest expense from operations for the years ended December 31, 2015 , 2014 , and 2013 did not exceed $1.0 million . Compensation and Benefits The Company records compensation and benefits expense for all cash and deferred compensation, benefits, and related taxes as earned by its employees. Compensation and benefits expense also includes fees earned by temporary employees and contractors who perform similar services to those performed by the Company’s employees, primarily software development and project management activities. Share-Based Compensation Certain employees, officers, directors, advisors, and financial institutions of the Company participate in various long-term incentive plans that provide for granting stock options, warrants, restricted stock awards, and restricted stock units. Stock options and warrants generally vest in equal increments over a three - to five -year period and expire on the ten th anniversary following the date of grant. Restricted stock awards and restricted stock units generally vest over a two - to four -year period. The Company recognizes share-based compensation for equity awards granted to employees, officers, and directors as compensation and benefits expense on the consolidated statements of income. The fair value of stock options is estimated using a Black-Scholes valuation model on the date of grant. The fair value of restricted stock awards and restricted stock units is equal to the closing price of the Company’s stock on the date of grant. Share-based compensation is recognized over the requisite service period of the individual awards, which generally equals the vesting period. The Company recognizes share-based compensation for equity awards granted to advisors and financial institutions as commissions and advisory expense on the consolidated statements of income. The fair value of stock options and warrants is estimated using a Black-Scholes valuation model on the date of grant and is revalued at each reporting period. The fair value of restricted stock units is equal to the closing price of the Company’s stock on the date of grant and on the last day of each reporting period. Share-based compensation is recognized over the requisite service period of the individual awards, which generally equals the vesting period. The Company must also make assumptions regarding the number of stock options, warrants, restricted stock awards, and restricted stock units that will be forfeited. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. Therefore, changes in the forfeiture assumptions do not impact the total amount of expense ultimately recognized over the vesting period. Rather, different forfeiture assumptions would only impact the timing of expense recognition over the vesting period. See Note 15 . Share-Based Compensation , for additional information regarding share-based compensation for equity awards granted. Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the basic weighted-average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. Income Taxes In preparing the consolidated financial statements, the Company estimates income tax expense based on various jurisdictions where it conducts business. The Company then must assess the likelihood that the deferred tax assets will be realized. A valuation allowance is established to the extent that it is more-likely-than-not that such deferred tax assets will not be realized. When the Company establishes a valuation allowance or modifies the existing allowance in a certain reporting period, it generally records a corresponding increase or decrease to tax expense in the consolidated statements of income. Management makes significant judgments in determining the provision for income taxes, the deferred tax assets and liabilities, and any valuation allowances recorded against the deferred tax asset. Changes in the estimate of these taxes occur periodically due to changes in the tax rates, changes in the business operations, implementation of tax planning strategies, resolution with taxing authorities of issues where the Company had previously taken certain tax positions, and newly enacted statutory, judicial, and regulatory guidance. These changes could have a material effect on the Company’s consolidated statements of income, financial condition, or cash flows in the period or periods in which they occur. Income tax credits are accounted for using the flow-through method as a reduction of income tax in the years utilized. The Company recognizes the tax effects of a position in the consolidated financial statements only if it is more-likely-than-not to be sustained based solely on its technical merits, otherwise no benefits of the position are to be recognized. The more-likely-than-not threshold must continue to be met in each reporting period to support continued recognition of a benefit. Moreover, each tax position meeting the recognition threshold is required to be measured as the largest amount that is greater than 50 percent likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Cash and Cash Equivalents Cash equivalents are highly liquid investments with an original maturity of 90 days or less that are not required to be segregated under federal or other regulations. The Company's cash and cash equivalents are composed of interest and noninterest-bearing deposits, money market funds, and U.S. government obligations. Cash and Securities Segregated Under Federal and Other Regulations The Company's subsidiary, LPL Financial, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its customers in accordance with Rule 15c3-3 of the Security Exchange Act of 1934, as amended, and other regulations. Held within this account is approximately $100,000 for the proprietary accounts of introducing brokers. Restricted Cash Restricted cash primarily represents cash held by and for use by the Company’s captive insurance subsidiary. Receivables From and Payables to Clients Receivables from clients include amounts due on cash and margin transactions. The Company extends credit to clients of its advisors to finance their purchases of securities on margin and receives income from interest charged on such extensions of credit. Payables to clients represent credit balances in client accounts arising from deposits of funds, proceeds from sales of securities, and dividend and interest payments received on securities held in client accounts at LPL Financial. At December 31, 2015 and 2014 , $747.4 million and $646.4 million , respectively, of the balance represent free credit balances that are held pending re-investment by the clients. The Company pays interest on certain client payable balances. To the extent that margin loans and other receivables from clients are not fully collateralized by client securities, management establishes an allowance that it believes is sufficient to cover any probable losses. When establishing this allowance, management considers a number of factors, including its ability to collect from the client or the client’s advisor and the Company’s historical experience in collecting on such transactions. The following schedule reflects the Company’s activity in providing for an allowance for uncollectible amounts due from clients (in thousands): December 31, 2015 2014 Beginning balance — January 1 $ 1,245 $ 588 Provision for doubtful accounts 219 657 Ending balance — December 31 $ 1,464 $ 1,245 Advisor Loans The Company periodically extends credit to its advisors in the form of recruiting loans, commission advances, and other loans. The decisions to extend credit to advisors are generally based on the advisors’ credit history and their ability to generate future commissions. Certain loans made in connection with recruiting are forgivable over terms ranging from three to eight years provided that the advisor remains licensed through LPL Financial. At December 31, 2015 , $94.5 million of the advisor loan balance was forgivable. Management maintains an allowance for uncollectible amounts, which excludes advisor loans that are forgivable, using an aging analysis that takes into account the advisors’ registration status and the specific type of receivable. The aging thresholds and specific percentages used represent management’s best estimates of probable losses. Management monitors the adequacy of these estimates through periodic evaluations against actual trends experienced. The following schedule reflects the Company’s activity in providing for an allowance for uncollectible amounts for advisor loans (in thousands): December 31, 2015 2014 Beginning balance — January 1 $ 697 $ — Provision for doubtful accounts — 697 Ending balance — December 31 $ 697 $ 697 Receivables From Others Receivables from others primarily consist of accrued fees from product sponsors and amounts due from advisors. Management maintains an allowance for uncollectible amounts using an aging analysis that takes into account the specific type of receivable. The aging thresholds and specific percentages used represent management’s best estimates of probable losses. Management monitors the adequacy of these estimates through periodic evaluations against actual trends experienced. The following schedule reflects the Company’s activity in providing for an allowance for uncollectible amounts due from others (in thousands): December 31, 2015 2014 Beginning balance — January 1 $ 8,379 $ 7,091 Provision for doubtful accounts 2,322 1,775 Charge-offs, net of recoveries (845 ) (487 ) Ending balance — December 31 $ 9,856 $ 8,379 Securities Owned and Securities Sold, But Not Yet Purchased Securities owned and securities sold, but not yet purchased include trading and held-to-maturity securities. The Company generally classifies its investments in debt and equity instruments (including mutual funds, annuities, corporate bonds, government bonds, and municipal bonds) as trading securities, except for U.S. government notes held by PTC, which are classified as held-to-maturity securities. The Company has not classified any investments as available-for-sale. Investment classifications are subject to ongoing review and can change. Securities classified as trading are carried at fair value, while securities classified as held-to-maturity are carried at amortized cost. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its trading securities. Prices received from the pricing services are validated using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices, and review of other relevant market data including implied yields of major categories of securities. In general, these quoted prices are derived from active markets for identical assets or liabilities. When quoted prices in active markets for identical assets and liabilities are not available, the quoted prices are based on similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. For certificates of deposit and treasury securities, the Company utilizes market-based inputs, including observable market interest rates that correspond to the remaining maturities or the next interest reset dates. At December 31, 2015 , the Company did not adjust prices received from the independent third-party pricing services. Interest income is accrued as earned. Premiums and discounts are amortized using a method that approximates the effective yield method over the term of the security and are recorded as an adjustment to the investment yield. The Company makes estimates about the fair value of investments and the timing for recognizing losses based on market conditions and other factors. If these estimates change, the Company may recognize additional losses. Both unrealized and realized gains and losses on trading securities are recognized in other revenue on a net basis in the consolidated statements of income. Securities Borrowed Securities borrowed are accounted for as collateralized financings and are recorded at contract value, representing the amount of cash provided for securities borrowed transactions (generally in excess of market values). The adequacy of the collateral deposited, which is determined by comparing the market value of the securities borrowed to the cash loaned , is continuously monitored and is adjusted when considered necessary to minimize the risk associated with this activity. The Company borrows securities from other broker-dealers to make deliveries or to facilitate customer short sales. As of December 31, 2015 , the contract and collateral market values of borrowed securities were $6.0 million and $5.8 million , respectively. As of December 31, 2014 , the contract and collateral market values of borrowed securities were $5.0 million and $4.9 million , respectively. Fixed Assets Internally developed software, leasehold improvements, computers and software, and furniture and equipment are recorded at historical cost, net of accumulated depreciation and amortization. Depreciation is recognized using the straight-line method over the estimated useful lives of the assets. The Company charges software development costs to operations as incurred during the preliminary project stage, while capitalizing costs at the point at which the conceptual formulation, design, and testing of possible software project alternatives are complete and management authorizes and commits to funding the project. The costs of internally developed software that qualify for capitalization are capitalized as fixed assets and subsequently amortized over the estimated useful life of the software, which is generally three years. The Company does not capitalize pilot projects and projects for which it believes that the future economic benefits are less than probable. Leasehold improvements are amortized over the lesser of their useful lives or the terms of the underlying leases. Computers and software, as well as furniture and equipment, are depreciated over a period of three to seven years. Land is not depreciated. Management reviews fixed assets for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. During the year ended December 31, 2015 , in conjunction with the Fortigent restructuring (see Note 3. Restructuring), the Company recorded an asset impairment charge of $0.4 million for certain fixed assets related to Fortigent leasehold improvements that were determined to no longer have future economic benefit. The $0.4 million asset impairment charge for the year ended December 31, 2015 is included in restructuring charges within the consolidated statements of income. During the year ended December 31, 2013, in conjunction with the SVC restructuring (see Note 3. Restructuring), the Company recorded an asset impairment charge of $0.8 million for certain fixed assets related to internally developed software that were determined to no longer have future economic benefit. The $0.8 million asset impairment charge for the year ended December 31, 2013 is included in restructuring charges within the consolidated statements of income. No impairment occurred for the year ended December 31, 2014 . Goodwill and Other Intangible Assets Goodwill and other indefinite-lived assets are not amortized; however, intangible assets that are deemed to have definite lives are amortized over their useful lives, generally ranging from 5 - 20 years. See Note 8 . Goodwill and Other Intangible Assets , for additional information regarding the Company's goodwill and other intangible assets. Goodwill and other indefinite-lived intangible assets are tested annually for impairment in the fourth fiscal quarter and between annual tests if certain events occur indicating that the carrying amounts may be impaired. If a qualitative assessment is used and the Company determines that the fair value of a reporting unit or indefinite-lived intangible asset is more likely than not (i.e., a likelihood of more than 50%) less than its carrying amount, a quantitative impairment test will be performed. If goodwill or other indefinite-lived intangible assets are quantitatively assessed for impairment, a two-step approach is applied. First, the Company compares the estimated fair value of the reporting unit in which the asset resides to its carrying value. The second step, if necessary, measures the amount of such impairment by comparing the implied fair value of the asset to its carrying value. No impairment of goodwill or other indefinite-lived intangible assets was recognized during the years ended December 31, 2015 , 2014 , or 2013 . Long-lived assets, such as intangible assets subject to amortization, are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset group. Long-lived assets to be disposed of by sale are reported at the lower of their carrying amounts or their estimated fair values less costs to sell and are not depreciated. There was $0.4 million , $0 , and $0 of impairment of definite-lived intangible assets recognized during the years ended December 31, 2015 , 2014 , and 2013 , respectively. Debt Issuance Costs Debt issuance and amendment costs have been capitalized and are being amortized as additional interest expense over the expected terms of the related debt agreements. In accordance with Accounting Standards Update ("ASU") 2015-03, Interest—Imputation of Interest, debt issuance costs are presented as a direct deduction from the carrying amount of the related debt liability. In accordance with ASU 2015-15, Interest—Imputation of Interest costs incurred while obtaining the revolving credit facility are included in other assets and subsequently amortized ratably over the term of the revolving credit facility, regardless of whether there are any outstanding borrowings on the revolving credit facility. Derivative Financial Instruments The Company uses derivative financial instruments, primarily consisting of non-deliverable foreign currency forward contracts, to mitigate foreign currency exchange rate risk related to operating expenses that are subject to repricing. The Company has designated these derivative financial instruments as cash flow hedges, all of which qualify for hedge accounting. The Company assesses the ongoing effectiveness of its cash flow hedges. Changes in the fair value for the effective portion of the Company's cash flow hedges are presented in other comprehensive income and reclassified into earnings to match the timing of the underlying hedged item. Hedge ineffectiveness is measured at the end of each fiscal quarter, with any gains or losses realized into earnings in the current period. See Note 9 . Derivative Financial Instruments , for additional information regarding the Company's derivative financial instruments. Fair Value of Financial Instruments The Company’s financial assets and liabilities are carried at fair value or at amounts that, because of their short-term nature, approximate current fair value, with the exception of its held-to-maturity securities and indebtedness. The Company carries its indebtedness at amortized cost. The Company measures the implied fair value of its debt instruments using trading levels obtained from a third-party service provider. Accordingly, the debt instruments qualify as Level 2 fair value measurements. See Note 4 . Fair Value Measurements , for additional information regarding the Company's fair value measurements. As of December 31, 2015 , the carrying amount and fair value of the Company’s indebtedness was approximately $2,215.0 million and $2,200.0 million , respectively. As of December 31, 2014 , the carrying amount and fair value was approximately $1,634.3 million and $1,620.8 million , respectively. Commitments and Contingencies The Company recognizes a liability with regard to loss contingencies when it believes it is probable a liability has occurred and the amount can be reasonably estimated. If some amount within a range of loss appears at the time to be a better estimate than any other amount within the range, the Company accrues that amount. When no amount within the range is a better estimate than any other amount, however, the Company accrues the minimum amount in the range. The Company records legal accruals and related insurance recoveries on a gross basis. Defense costs are expensed as incurred and classified as other expenses within the consolidated statements of income. Leasehold Financing Obligation The Company is involved with the construction of a building for use as office space in Fort Mill, South Carolina and has determined that it has substantially all of the risks of ownership during construction of the leased property. Accordingly, from an accounting perspective, the Company is deemed to be the owner of the construction project. As such, the Company records an asset for the amount of the total project costs and an amount related to the value attributed to the building under construction in fixed assets and the related financing obligation in leasehold financing obligations on the consolidated statements of financial condition. Once construction is complete, the Company will determine if the asset qualifies for sale-leaseback accoun |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Service Value Commitment Initiative In February 2013, the Company committed to an expansion of its Service Value Commitment initiative (the “ Program ” ), an ongoing effort to position the Company's people, processes, and technology for sustainable long-term growth while improving the service experience of its advisors and delivering efficiencies in its operating model. The Program was completed in 2015. The following table summarizes the balance of accrued expenses and the changes in the accrued amounts for the Program as of and for the year ended December 31, 2015 (in thousands): Accrued Balance at December 31, 2014 Costs Incurred Payments Accrued Balance at December 31, 2015 Cumulative Costs Incurred to Date Outsourcing and other related costs $ — $ 1,083 $ (1,204 ) $ (121 ) $ 22,571 Technology transformation costs 4,458 402 (4,778 ) 82 30,320 Employee severance obligations and other related costs 1,999 2,241 (3,659 ) 581 11,127 Asset impairments — — — — 842 Total $ 6,457 $ 3,726 $ (9,641 ) $ 542 $ 64,860 In February 2015, the Company committed to a course of action to restructure the business of its subsidiary, Fortigent Holdings Company, Inc. (together with its subsidiaries, “Fortigent”). The Company acquired Fortigent, which provides outsourced wealth management solutions, in April 2012. The intention of the restructuring plan was to migrate Fortigent’s operations from Rockville, Maryland to the Company’s office in Charlotte, North Carolina, simplify and improve the efficiency of Fortigent’s existing service offerings, and position Fortigent to capitalize on the Company's future technology investments and service offerings for financial institutions and advisors focused on high-net-worth clients. This restructuring was completed in December 2015. The following table summarizes the balance of accrued expenses and the changes in the accrued amounts for the Fortigent restructuring as of and for the year ended December 31, 2015 (in thousands): Costs Incurred Payments Non-cash Accrued Balance at December 31, 2015 Cumulative Costs Incurred to Date Employee severance obligations and other related costs $ 2,978 $ (2,658 ) $ — $ 320 $ 2,978 Relocation and related costs 2,650 (2,354 ) — 296 2,650 Lease restructuring charges 793 (170 ) (16 ) 607 793 Asset impairments 821 — (821 ) — 821 Total $ 7,242 $ (5,182 ) $ (837 ) $ 1,223 $ 7,242 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are prioritized within a three-level fair value hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. There were no transfers of assets or liabilities between these fair value measurement classifications during the years ended December 31, 2015 and 2014 . The Company’s fair value measurements are evaluated within the fair value hierarchy, based on the nature of inputs used to determine the fair value at the measurement date. At December 31, 2015 , the Company had the following financial assets and liabilities that are measured at fair value on a recurring basis: Cash Equivalents — The Company’s cash equivalents include money market funds, which are short term in nature with readily determinable values derived from active markets. Securities Owned and Securities Sold, But Not Yet Purchased — The Company’s trading securities consist of house account model portfolios established and managed for the purpose of benchmarking the performance of its fee-based advisory platforms and temporary positions resulting from the processing of client transactions. Examples of these securities include money market funds, U.S. treasury obligations, mutual funds, certificates of deposit, and traded equity and debt securities. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its trading securities. Prices received from the pricing services are validated using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices, and review of other relevant market data including implied yields of major categories of securities. In general, these quoted prices are derived from active markets for identical assets or liabilities. When quoted prices in active markets for identical assets and liabilities are not available, the quoted prices are based on similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. For certificates of deposit and treasury securities, the Company utilizes market-based inputs, including observable market interest rates that correspond to the remaining maturities or the next interest reset dates. At December 31, 2015 , the Company did not adjust prices received from the independent third-party pricing services. Other Assets — The Company’s other assets include: (1) deferred compensation plan assets that are invested in money market and other mutual funds, which are actively traded and valued based on quoted market prices; (2) certain non-traded real estate investment trusts and auction rate notes, which are valued using quoted prices for identical or similar securities and other inputs that are observable or can be corroborated by observable market data; and (3) cash flow hedges, which are measured using quoted prices for similar cash flow hedges, taking into account counterparty credit risk and the Company's own non-performance risk. Accounts Payable and Accrued Liabilities — The Company's accounts payable and accrued liabilities include contingent consideration liabilities that are measured using Level 3 inputs. The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis at December 31, 2015 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 252,393 $ — $ — $ 252,393 Securities owned — trading: Money market funds 261 — — 261 Mutual funds 7,267 — — 7,267 Equity securities 56 — — 56 Debt securities — 103 — 103 U.S. treasury obligations 4,308 — — 4,308 Total securities owned — trading 11,892 103 — 11,995 Other assets 99,962 3,350 — 103,312 Total assets at fair value $ 364,247 $ 3,453 $ — $ 367,700 Liabilities Securities sold, but not yet purchased: Mutual funds $ 1 $ — $ — $ 1 Equity securities 267 — — 267 Debt securities — — — — Total securities sold, but not yet purchased 268 — — 268 Accounts payable and accrued liabilities — — 527 527 Total liabilities at fair value $ 268 $ — $ 527 $ 795 The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2014 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 22,592 $ — $ — $ 22,592 Securities owned — trading: Money market funds 293 — — 293 Mutual funds 7,570 — — 7,570 Equity securities 224 — — 224 Debt securities — 1,379 — 1,379 U.S. treasury obligations 4,000 — — 4,000 Total securities owned — trading 12,087 1,379 — 13,466 Other assets 75,540 5,058 — 80,598 Total assets at fair value $ 110,219 $ 6,437 $ — $ 116,656 Liabilities Securities sold, but not yet purchased: Mutual funds $ 13 $ — $ — $ 13 Equity securities 279 — — 279 Debt securities — 10 — 10 Certificates of deposit — — — — Total securities sold, but not yet purchased 292 10 — 302 Accounts payable and accrued liabilities — — 527 527 Total liabilities at fair value $ 292 $ 10 $ 527 $ 829 The Company determines the fair value for its contingent consideration obligation using an income approach whereby the Company assesses the expected future performance of the acquired assets. The contingent payment is estimated using a discounted cash flow of the expected payment amount to calculate the fair value as of the valuation date. The Company's management evaluates the underlying projections and other related factors used in determining fair value each period and makes updates when there have been significant changes in management's expectations. |
Held-to-Maturity Securities
Held-to-Maturity Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Held-to-Maturity Securities | Held-to-Maturity Securities The Company holds certain investments in securities, primarily U.S. government notes, which are recorded at amortized cost because the Company has both the intent and the ability to hold these investments to maturity. Interest income is accrued as earned. Premiums and discounts are amortized using a method that approximates the effective yield method over the term of the security and are recorded as an adjustment to the investment yield. The amortized cost, gross unrealized loss, and fair value of securities held-to-maturity were as follows (in thousands): December 31, 2015 2014 Amortized cost $ 9,847 $ 8,594 Gross unrealized loss (26 ) (14 ) Fair value $ 9,821 $ 8,580 At December 31, 2015 , the securities held-to-maturity were scheduled to mature as follows (in thousands): Within one year After one but within five years After five but within ten years Total U.S. government notes — at amortized cost $ 4,999 $ 4,348 $ 500 $ 9,847 U.S. government notes — at fair value $ 4,997 $ 4,327 $ 497 $ 9,821 |
Receivables from Product Sponso
Receivables from Product Sponsors, Broker-Dealers and Clearing Organizations and Payables to Broker-Dealers and Clearing Organizations | 12 Months Ended |
Dec. 31, 2015 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Receivables from Product Sponsors, Broker-Dealers and Clearing Organizations and Payables to Broker-Dealers and Clearing Organizations | Receivables from Product Sponsors, Broker-Dealers, and Clearing Organizations and Payables to Broker-Dealers and Clearing Organizations Receivables from product sponsors, broker-dealers, and clearing organizations and payables to broker-dealers and clearing organizations were as follows (in thousands): December 31, 2015 2014 Receivables: Commissions receivable from product sponsors and others $ 115,413 $ 122,207 Receivable from clearing organizations 35,991 38,873 Receivable from broker-dealers 4,719 10,814 Securities failed-to-deliver 5,101 5,576 Total receivables $ 161,224 $ 177,470 Payables: Payable to clearing organizations $ 17,046 $ 19,580 Payable to broker-dealers 27,455 20,208 Securities failed-to-receive 3,531 5,639 Total payables $ 48,032 $ 45,427 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets The components of fixed assets were as follows (in thousands): December 31, 2015 2014 Internally developed software $ 273,900 $ 259,335 Leasehold improvements 101,333 95,846 Computers and software 116,696 95,406 Real estate development 59,940 — Furniture and equipment 47,699 47,658 Land 4,731 4,743 Total fixed assets 604,299 502,988 Accumulated depreciation and amortization (328,880 ) (288,834 ) Fixed assets, net $ 275,419 $ 214,154 Depreciation and amortization expense was $73.4 million , $58.0 million , and $44.5 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. The $59.9 million of real estate development assets in the table above relate to the development project in Fort Mill, South Carolina, where the off-setting balance is presented in leasehold financing obligations on the consolidated statements of financial condition. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets A summary of the activity in goodwill is presented below (in thousands): Balance at December 31, 2013 $ 1,361,361 Goodwill acquired 4,477 Balance at December 31, 2014 $ 1,365,838 Goodwill acquired — Balance at December 31, 2015 $ 1,365,838 In 2014, the Company purchased certain intangible assets of a third party, which included $4.5 million in goodwill and $5.1 million in other intangible assets. The components of intangible assets were as follows at December 31, 2015 (dollars in thousands): Weighted-Average Life Remaining (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value Definite-lived intangible assets: Advisor and financial institution relationships 10.0 $ 440,533 $ (220,214 ) $ 220,319 Product sponsor relationships 10.1 234,086 (113,530 ) 120,556 Client relationships 8.6 19,133 (8,556 ) 10,577 Trade names 6.3 1,200 (440 ) 760 Total definite-lived intangible assets $ 694,952 $ (342,740 ) $ 352,212 Indefinite-lived intangible assets: Trademark and trade name 39,819 Total intangible assets $ 392,031 The components of intangible assets were as follows at December 31, 2014 (dollars in thousands): Weighted-Average Life Remaining (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value Definite-lived intangible assets: Advisor and financial institution relationships 10.9 $ 440,533 $ (195,835 ) $ 244,698 Product sponsor relationships 11.1 234,086 (101,377 ) 132,709 Client relationships 9.4 20,220 (7,622 ) 12,598 Trade names 7.3 1,200 (320 ) 880 Total definite-lived intangible assets $ 696,039 $ (305,154 ) $ 390,885 Indefinite-lived intangible assets: Trademark and trade name 39,819 Total intangible assets $ 430,704 Total amortization expense of intangible assets was $38.2 million , $38.9 million , and $39.0 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Future amortization expense is estimated as follows (in thousands): 2016 $ 38,035 2017 37,218 2018 34,786 2019 34,750 2020 34,358 Thereafter 173,065 Total $ 352,212 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments In May 2013, the Company entered into a long-term contractual obligation (the “ Agreement ” ) with a third-party provider to enhance the quality, speed, and cost of processes by outsourcing certain functions. The Agreement enables the third-party provider to use the services of its affiliates in India to provide services to the Company and provides for the Company to settle the cost of its contractual obligation to the third-party provider in U.S. dollars each month. However, the Agreement provides that on each annual anniversary date of the signing of the Agreement, the price for services (denominated in U.S. dollars) is to be adjusted for the then-current exchange rate between the U.S. dollar ( “ USD ” ) and the Indian rupee ( “ INR ” ). The Agreement provides that, once an annual adjustment is calculated, there are no further modifications to the amounts paid by the Company to the third-party provider for fluctuations in the exchange rate between the USD and the INR until the reset on the next anniversary date of the signing of the Agreement. The third-party provider bore the risk of currency movement from the date of signing the Agreement until the reset on the first anniversary of its signing, and bears such risk during each period until the next annual reset date. The Company bears the risk of currency movement at each of the annual reset dates following the first anniversary. To mitigate foreign currency risk arising from these annual anniversary events, the Company entered into four non-deliverable foreign currency contracts, all of which have been designated as cash flow hedges. The first cash flow hedge, with a notional amount of 560.4 million INR, or $8.5 million , settled in June 2014. The Company received a settlement of $1.0 million that was reclassified out of accumulated other comprehensive income and recognized in net income ratably over a 12-month period ended May 31, 2015 to match the timing of the underlying hedged item. The second cash flow hedge, with a notional amount of 560.4 million INR, or $8.1 million , settled in June 2015. The Company received a settlement of $0.7 million , which will be reclassified out of accumulated other comprehensive income and recognized in net income ratably over a 12-month period ending May 31, 2016 to match the timing of the underlying hedged item. The details related to the non-deliverable foreign currency contracts at December 31, 2015 are as follows: Settlement Date Hedged Notional Amount (INR) (in millions) Contractual INR/USD Foreign Exchange Rate Hedged Notional Amount (USD) (in millions) Cash flow hedge #3 6/2/2016 560.4 72.21 7.8 Cash flow hedge #4 6/2/2017 560.4 74.20 7.5 Total hedged amount $ 15.3 The fair value of the derivative instruments, included in other assets in the consolidated statements of financial condition, were as follows (in thousands): December 31, 2015 2014 Cash flow hedges $ 741 $ 1,179 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities were as follows (in thousands): December 31, 2015 2014 Advisor deferred compensation plan liability $ 98,828 $ 73,447 Accrued compensation 61,468 66,816 Deferred rent 45,003 48,629 Accounts payable 19,883 4,699 Other accrued liabilities 107,310 95,835 Total accounts payable and accrued liabilities $ 332,492 $ 289,426 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Secured Credit Facilities — On November 20, 2015, LPLFH and LPLH entered into a third amendment, extension, and incremental assumption agreement (the "Third Amendment") for purposes of raising capital, increasing the leverage allowable under the credit agreement and extending the maturity of a portion of the existing Term Loan B. The Third Amendment amends the Company's credit agreement, originally dated as of March 29, 2012, as amended by the first amendment and incremental assumption agreement dated as of May 13, 2013, the second amendment, extension, and incremental assumption agreement dated as of October 1, 2014, and the consent to amendment dated as of November 21, 2014 (as amended by the Third Amendment, the "Credit Agreement"). Pursuant to the Third Amendment, certain lenders issued a new class of incremental term loans (the "New Term Loan B") in aggregate principal amount of $700.0 million , with a maturity date of November 20, 2022 and certain lenders extended the maturity date of a portion of the outstanding term loan B (the "Extended Term Loan B") from March 29, 2019 to March 29, 2021. In connection with the execution of the Third Amendment, the Company incurred $20.3 million in debt issuance costs, which will be amortized over the life of the New and Extended Term Loan B and is presented in the consolidated statement of financial condition as net against the total debt. The Borrower’s outstanding borrowings were as follows (dollars in thousands): December 31, 2015 2014 Senior Secured Credit Facilities Maturity Principal Interest Rate Principal Interest Rate Revolving Credit Facility 9/30/2019 $ — — $ 110,000 4.75 % Senior secured term loans: Term Loan A 9/30/2019 459,375 2.74 % (1) 459,375 2.67 % Existing Term Loan B 3/29/2019 424,676 3.25 % (2) 1,064,883 3.25 % Extended Term Loan B 3/29/2021 630,986 4.25 % (3) — — New Term Loan B 11/20/2022 700,000 4.75 % (4) — — Total borrowings 2,215,037 1,634,258 Less: Unamortized Debt Issuance Cost 26,797 9,063 Long-term borrowings — net of unamortized debt issuance cost $ 2,188,240 $ 1,625,195 _____________________ (1) The variable interest rate per annum is either (a) 150 bps over the base rate or (b) 250 bps over the LIBOR rate (subject to a leverage based grid) (2) The variable interest rate per annum is either (a) 150 bps over the base rate or (b) 250 bps over the LIBOR rate (subject to a LIBOR floor of 75 bps ) (3) The variable interest rate per annum is either (a) 250 bps over the base rate or (b) 350 bps over the LIBOR rate (subject to a LIBOR floor of 75 bps ) (4) The variable interest rate per annum is either (a) 300 bps over the base rate or (b) 400 bps over the LIBOR rate (subject to a LIBOR floor of 75 bps ) As of December 31, 2015 , the Borrower had $18.0 million of irrevocable letters of credit, with an applicable interest rate margin of 2.50% , which were supported by the credit facility. The Credit Agreement subjects the Company, the Borrower, and its restricted subsidiaries to certain financial and non-financial covenants. As of December 31, 2015 , the Company, the Borrower, and its restricted subsidiaries were in compliance with such covenants. Bank Loans Payable — The Company maintains three uncommitted lines of credit. Two of the lines have unspecified limits, which are primarily dependent on the Company’s ability to provide sufficient collateral. The third line has a $200.0 million limit and allows for both collateralized and uncollateralized borrowings. During the year ended December 31, 2015 , the Company drew $55.0 million on one of the lines of credit, which was outstanding for one day at an interest rate of 1.50% . The lines were not otherwise utilized in 2015 and were not utilized in 2014 . There were no balances outstanding at December 31, 2015 or 2014 . The minimum calendar year payments and maturities of the senior secured borrowings as of December 31, 2015 are as follows (in thousands): 2016 $ 17,677 2017 26,290 2018 52,130 2019 841,193 2020 13,310 Thereafter 1,264,437 Total $ 2,215,037 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s provision for income taxes was as follows (in thousands): December 31, 2015 2014 2013 Current provision: Federal $ 123,633 $ 120,995 $ 119,327 State 20,291 19,759 19,062 Total current provision 143,924 140,754 138,389 Deferred benefit: Federal (24,972 ) (20,800 ) (25,586 ) State (5,181 ) (3,300 ) (3,357 ) Total deferred benefit (30,153 ) (24,100 ) (28,943 ) Provision for income taxes $ 113,771 $ 116,654 $ 109,446 A reconciliation of the U.S. federal statutory income tax rates to the Company’s effective income tax rates is set forth below: Years Ended December 31, 2015 2014 2013 Federal statutory income tax rates 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 3.6 3.6 3.5 Non-deductible expenses 0.7 0.7 0.4 Share-based compensation — (0.1 ) (0.1 ) Business energy tax credit — — (0.5 ) Goodwill derecognition — — 1.2 Contingent consideration obligations — (0.1 ) (1.5 ) Other 1.0 0.5 (0.4 ) Effective income tax rates 40.3 % 39.6 % 37.6 % The increase in the Company's effective tax rate and income tax expense in 2015 compared to 2014 was primarily due to change in estimates in unrecognized tax positions. The increase in the Company's effective tax rate and income tax expense for 2014 compared to 2013 was primary due to a release of the valuation allowance, larger than usual incentive stock option disqualifying dispositions, and utilization of a business energy tax credit in 2013. The components of the net deferred income taxes included in the consolidated statements of financial condition were as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Accrued liabilities $ 66,750 $ 55,731 Share-based compensation 26,774 24,537 State taxes 8,387 8,500 Deferred rent 4,755 4,768 Provision for bad debts 5,316 4,192 Net operating losses 404 999 Captive Insurance 1,590 — Other 11,867 4,339 Total deferred tax assets 125,843 103,066 Deferred tax liabilities: Amortization of intangible assets (128,646 ) (136,140 ) Depreciation of fixed assets (33,125 ) (32,509 ) Other (375 ) (598 ) Total deferred tax liabilities (162,146 ) (169,247 ) Deferred income taxes, net $ (36,303 ) $ (66,181 ) The following table reflects a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits, including interest and penalties (in thousands): December 31, 2015 2014 2013 Balance — Beginning of year $ 20,987 $ 19,522 $ 19,867 Increases for tax positions related to the current year 4,404 4,656 3,972 Reductions as a result of a lapse of the applicable statute of limitations (644 ) (3,191 ) (4,317 ) Balance — End of year $ 24,747 $ 20,987 $ 19,522 At December 31, 2015 and 2014 , the gross unrecognized tax benefits included $17.6 million and $15.0 million (net of the federal benefit on state issues), respectively, that represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes within the consolidated statements of financial condition. At December 31, 2015 and 2014 , the liability for unrecognized tax benefits included accrued interest of $3.0 million and $2.3 million , respectively, and penalties of $4.3 million and $3.7 million , respectively. The Company and its subsidiaries file income tax returns in the federal jurisdiction, as well as most state jurisdictions, and are subject to routine examinations by the respective taxing authorities. The Company has concluded all federal income tax matters for years through 2011 and all state income tax matters for years through 2006. The tax years of 2012 to 2015 remain open to examination in the federal jurisdiction. The tax years of 2007 to 2015 remain open to examination in the state jurisdictions. In the next 12 months, it is reasonably possible that the Company expects a reduction in unrecognized tax benefits of $2.1 million primarily related to the statute of limitations expiration in various state jurisdictions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company leases office space and equipment under various operating leases. These leases are generally subject to scheduled base rent and maintenance cost increases, which are recognized on a straight-line basis over the period of the leases. Total rental expense for all operating leases was approximately $25.6 million , $30.1 million , and $19.4 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Service and Development Contracts The Company is party to certain long-term contracts for systems and services that enable back office trade processing and clearing for its product and service offerings. The Company also has contractual obligations related to the development of a real estate project in Fort Mill, South Carolina for office space. Under development and agency contracts the Company expects to pay a pro rata share equal to 27.5% of the design and construction costs. The remaining amounts will be paid by the landlord. The Company’s share of these costs is expected to be approximately $74.7 million , incurred through 2017. Additionally, the Company has entered into lease agreements for the office space once developed. These leases have an initial lease term of 20 years that commence once the development is complete and the Company takes occupancy of the buildings. Future minimum payments under leases, lease commitments, service, development, and agency contracts, and other contractual obligations with initial terms greater than one year were as follows at December 31, 2015 (in thousands): 2016 $ 111,347 2017 58,387 2018 57,132 2019 38,649 2020 33,493 Thereafter 335,792 Total(1) $ 634,800 _____________________ (1) Future minimum payments have not been reduced by minimum sublease rental income of $4.0 million due in the future under noncancellable subleases. Guarantees The Company occasionally enters into certain types of contracts that contingently require it to indemnify certain parties against third-party claims. The terms of these obligations vary and, because a maximum obligation is not explicitly stated, the Company has determined that it is not possible to make an estimate of the amount that it could be obligated to pay under such contracts. The Company’s subsidiary, LPL Financial, provides guarantees to securities clearing houses and exchanges under their standard membership agreements, which require a member to guarantee the performance of other members. Under these agreements, if a member becomes unable to satisfy its obligations to the clearing houses and exchanges, all other members would be required to meet any shortfall. The Company’s liability under these arrangements is not quantifiable and may exceed the cash and securities it has posted as collateral. However, the potential requirement for the Company to make payments under these agreements is remote. Accordingly, no liability has been recognized for these transactions. Loan Commitments From time to time, LPL Financial makes loans to its advisors, primarily to newly recruited advisors to assist in the transition process, which may be forgivable. Due to timing differences, LPL Financial may make commitments to issue such loans prior to actually funding them. These commitments are generally contingent upon certain events occurring, including but not limited to the advisor joining LPL Financial. LPL Financial had no significant unfunded commitments at December 31, 2015 . Legal & Regulatory Matters The Company is subject to extensive regulation and supervision by U.S. federal and state agencies and various self-regulatory organizations. The Company and its advisors periodically engage with such agencies and organizations, in the context of examinations or otherwise, to respond to inquiries, informational requests, and investigations. From time to time, such engagements result in regulatory complaints or other matters, the resolution of which can include fines and other remediation. Assessing the probability of a loss occurring and the amount of any loss related to a legal proceeding or regulatory matter is inherently difficult. While the Company exercises significant and complex judgments to make certain estimates presented in its consolidated financial statements, there are particular uncertainties and complexities involved when assessing the potential outcomes of legal proceedings and regulatory matters. The Company's assessment process considers a variety of factors and assumptions, which may include the procedural status of the matter and any recent developments; prior experience and the experience of others in similar matters; the size and nature of potential exposures; available defenses; the progress of fact discovery; the opinions of counsel and experts; potential opportunities for settlement and the status of any settlement discussions; as well as the potential for insurance coverage and indemnification, if available. The Company monitors these factors and assumptions for new developments and re-assesses the likelihood that a loss will occur and the estimated range or amount of loss, if those amounts can be reasonably determined. The Company has established an accrual for those legal proceedings and regulatory matters for which a loss is both probable and the amount can be reasonably estimated, except as otherwise covered by third-party insurance or self-insurance through the Captive Insurance subsidiary, as discussed below. Third-Party Insurance The Company maintains insurance coverage for certain potential legal proceedings, including those involving client claims. With respect to client claims, the estimated losses on many of the pending matters are less than the applicable deductibles of the insurance policies. Self-Insurance The Company has self-insurance for certain potential liabilities through a wholly-owned captive insurance subsidiary that began operating in 2015. Liabilities associated with the risks that are retained by the Company are not discounted and are estimated by considering, in part, historical claims experience, severity factors, and other actuarial assumptions. The estimated accruals for these potential liabilities could be significantly affected if future occurrences and claims differ from such assumptions and historical trends. As of December 31, 2015 , these self-insurance liabilities are included in accounts payable and accrued liabilities in the consolidated statements of financial condition. Self-insurance related charges are included in other expenses in the consolidated statements of income for the year ended December 31, 2015 . Other Commitments As of December 31, 2015 , the Company had received collateral, primarily in connection with client margin loans, with a market value of approximately $334.5 million , which it can repledge, loan, or sell. Of these securities, approximately $31.9 million were client-owned securities pledged to the Options Clearing Corporation as collateral to secure client obligations related to options positions. As of December 31, 2015 there were no restrictions that materially limited the Company's ability to repledge, loan, or sell the remaining $302.6 million of client collateral. Trading securities on the consolidated statements of financial condition includes $4.3 million and $4.0 million pledged to clearing organizations at December 31, 2015 and 2014 , respectively. The Company is involved in a build-to-suit lease arrangement in Fort Mill, South Carolina, under which it serves as the construction agent on behalf of the landlord. Under such arrangement, the Company has obligations to fund cost over-runs in its capacity as the construction agent, and accordingly has determined that under lease accounting standards it bears substantially all of the risks and rewards of ownership as measured under GAAP. The Company is therefore required to report the landlord's costs of construction on its consolidated statements of financial condition as a fixed asset during the construction period as if the Company owned such asset. As of December 31, 2015 , the Company has recorded $59.9 million in fixed assets in connection with this arrangement and an equal and off-setting leasehold financing obligation on the consolidated statements of financial condition. |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Dividends The payment, timing and amount of any dividends are subject to approval by the Board of Directors as well as certain limits under the Company's credit facilities. Cash dividends per share of common stock and total cash dividends paid on a quarterly basis were as follows (in millions, except per share data): 2015 2014 Dividend per Share Total Cash Dividend Dividend per Share Total Cash Dividend First quarter $ 0.25 $ 24.2 $ 0.24 $ 24.1 Second quarter $ 0.25 $ 24.1 $ 0.24 $ 24.0 Third quarter $ 0.25 $ 23.8 $ 0.24 $ 24.0 Fourth quarter $ 0.25 $ 23.8 $ 0.24 $ 23.5 Share Repurchases The Board of Directors approves share repurchase programs pursuant to which the Company may repurchase its issued and outstanding shares of common stock from time to time. Repurchased shares are included in treasury stock on the consolidated statements of financial condition. Purchases may be effected in open market or privately negotiated transactions, including transactions with affiliates, with the timing of purchases and the amount of stock purchased generally determined at the discretion of the Company's management within the constraints of the Credit Agreement and general liquidity needs. On October 25, 2015 the Board of Directors authorized an increase to the share repurchase program of up to $500.0 million shares of common stock. On November 24, 2015, the Company entered into an accelerated share repurchase agreement (ASR Agreement) with Goldman, Sachs and Co. to acquire $250.0 million of shares of common stock. On December 10, 2015, the Company entered into an early settlement agreement with Goldman Sachs and Co to settle and terminate the transaction. On December 15, 2015, Goldman delivered 5,622,628 shares of common stock. Of the delivered shares, 4,319,537 shares were from TPG Partners IV, L.P. ("TPG"), a related party, pursuant to a stock purchase agreement directly negotiated between Goldman and TPG. During the year ended December 31, 2015 the Company purchased a total of 8,947,680 shares of its common stock at a weighted-average price of $43.68 . As of December 31, 2015 there is $250.0 million remaining in the share repurchase program. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Certain employees, advisors, institutions, officers, and directors of the Company participate in various long-term incentive plans, which provide for granting stock options, warrants, restricted stock awards, and restricted stock units. Stock options and warrants generally vest in equal increments over a three - to five -year period and expire on the ten th anniversary following the date of grant. Restricted stock awards and restricted stock units generally vest over a two - to four -year period. In November 2010, the Company adopted a 2010 Omnibus Equity Incentive Plan (as amended and restated in May 2015, the “ 2010 Plan ” ), which provides for the granting of stock options, warrants, restricted stock awards, restricted stock units, and other equity-based compensation. The 2010 Plan serves as the successor to the 2005 Stock Option Plan for Incentive Stock Options, the 2005 Stock Option Plan for Non-qualified Stock Options, the 2008 Advisor and Institution Incentive Plan, the 2008 Stock Option Plan and the Director Restricted Stock Plan (collectively, the “ Predecessor Plans ” ). Upon adoption of the 2010 Plan, awards were no longer made under the Predecessor Plans; however, awards previously granted under the Predecessor Plans remain outstanding until exercised or forfeited. There are 20,055,945 shares authorized for grant under the 2010 Plan after amendment and restatement of the plan in May 2015. There were 5,003,283 shares reserved for issuance upon exercise or conversion of outstanding awards granted, and 12,993,267 shares remaining available for future issuance, under the 2010 plan as of December 31, 2015 . Stock Options and Warrants The following table presents the weighted-average assumptions used in the Black-Scholes valuation model by the Company in calculating the fair value of stock options granted to its employees and officers stock options that have been granted during the year ended December 31, 2015 : Years Ended December 31, 2015 2014 2013 Expected life (in years) 5.30 6.02 6.25 Expected stock price volatility 25.78 % 44.25 % 45.03 % Expected dividend yield 2.30 % 1.77 % 1.72 % Risk-free interest rate 1.58 % 2.17 % 1.39 % Fair value of options $ 8.81 $ 20.51 $ 12.05 The fair value of stock options and warrants awarded to advisors and financial institutions are estimated on the date of grant and revalued at each reporting period using the Black-Scholes valuation model with the following weighted-average assumptions used during the year ended December 31, 2015 : Years Ended December 31, 2015 2014 2013 Expected life (in years) 5.25 6.82 6.24 Expected stock price volatility 25.91 % 25.87 % 40.99 % Expected dividend yield 2.35 % 2.24 % 1.89 % Risk-free interest rate 1.84 % 1.96 % 2.04 % Fair value of options $ 12.12 $ 15.12 $ 25.92 The following table summarizes the Company’s stock option and warrant activity at December 31, 2015 : Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In thousands) Outstanding — December 31, 2014 6,287,410 $ 31.59 Granted 1,168,508 $ 45.44 Exercised (1,119,137 ) $ 27.67 Forfeited (620,293 ) $ 39.78 Outstanding — December 31, 2015 5,716,488 $ 34.31 6.13 $ 47,704 Exercisable — December 31, 2015 3,459,118 $ 29.78 4.90 $ 44,507 Exercisable and expected to vest — December 31, 2015 5,615,265 $ 34.14 6.09 $ 47,799 The following table summarizes information about outstanding stock options and warrants as of December 31, 2015 : Outstanding Exercisable Range of Exercise Prices Total Number of Shares Weighted- Average Remaining Life (Years) Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price $18.04 - $23.02 941,445 3.47 $ 21.36 941,445 $ 21.36 $23.41 - $30.00 1,246,423 4.94 $ 28.25 980,611 $ 28.16 $31.60 - $32.33 1,056,895 6.68 $ 31.88 555,362 $ 31.91 $34.01 - $39.60 904,970 5.20 $ 34.60 792,094 $ 34.54 $42.60 - $54.81 1,566,755 8.88 $ 48.36 189,606 $ 53.92 5,716,488 6.13 $ 34.31 3,459,118 $ 29.78 The Company recognized share-based compensation for stock options awarded to employees, and directors based on the grant date fair value over the requisite service period of the award, which generally equals the vesting period. The Company recognized share-based compensation related to the vesting of these awards of $14.5 million , $14.7 million , and $12.7 million during the years ended December 31, 2015 , 2014 , and 2013 , respectively. As of December 31, 2015 , total unrecognized compensation cost related to non-vested stock options granted to employees, officers, and directors was $10.5 million , which is expected to be recognized over a weighted-average period of 1.61 years. The Company recognizes share-based compensation for stock options and warrants awarded to its advisors and to financial institutions based on the fair value of the awards at each reporting period. The Company recognized share based compensation of $3.4 million , $5.3 million , and $9.2 million during the years ended December 31, 2015 , 2014 , and 2013 , respectively, related to the vesting of stock options and warrants awarded to its advisors and financial institutions, which is classified within commission and advisory expense on the condensed consolidated statement of income. As of December 31, 2015 , total unrecognized compensation cost related to non-vested stock options and warrants granted to advisors and financial institutions was $3.5 million , which is expected to be recognized over a weighted-average period of 1.60 years. Restricted Stock The following summarizes the Company’s activity in its restricted stock awards and restricted stock units for the year ended December 31, 2015 : Restricted Stock Awards Restricted Stock Units Number of Shares Weighted-Average Grant-Date Fair Value Number of Shares Weighted-Average Grant-Date Fair Value Nonvested — December 31, 2014 33,634 $ 42.78 546,725 $ 43.34 Granted 34,734 $ 41.25 382,866 $ 41.74 Vested (26,892 ) $ 38.93 (183,929 ) $ 39.63 Forfeited — $ — (108,961 ) $ 44.12 Nonvested — December 31, 2015 41,476 $ 43.99 636,701 $ 43.32 Expected to vest — December 31, 2015 41,046 $ 44.02 585,248 $ 43.43 The Company recognizes share-based compensation for restricted stock awards and restricted stock units granted to its employees, officers, and directors based on the grant date fair value over the requisite service period of the award, which generally equals the vesting period. The Company recognized $8.3 million , $6.1 million , and $2.5 million of share-based compensation related to the vesting of restricted stock awards and restricted stock units awarded to its employees, officers, and directors during the years ended December 31, 2015 , 2014 , and 2013 , respectively, which is included in compensation and benefits expense on the condensed consolidated statements of income. As of December 31, 2015 , total unrecognized compensation cost for the restricted stock units granted to employees, officers, and directors was $11.3 million , which is expected to be recognized over a weighted-average remaining period of 1.90 years. The Company began granting restricted stock units to its advisors and to financial institutions in the second quarter of 2014. The Company recognizes share-based compensation for restricted stock units granted to its advisors and to financial institutions based on the fair value of the awards at each reporting period. The Company recognized share-based compensation of $2.5 million and $1.0 million related to the vesting of these awards during the years ended December 31, 2015 and December 31, 2014 , respectively, which is classified within commission and advisory expense on the condensed consolidated statement of income. As of December 31, 2015 , total unrecognized compensation cost for restricted stock units granted to advisors and financial institutions was $5.9 million , which is expected to be recognized over a weighted-average remaining period of 2.01 years. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. The calculation of basic and diluted earnings per share for the years noted was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Net income $ 168,784 $ 178,043 $ 181,857 Basic weighted-average number of shares outstanding 95,273 99,847 104,698 Dilutive common share equivalents 1,513 1,804 1,305 Diluted weighted-average number of shares outstanding 96,786 101,651 106,003 Basic earnings per share $ 1.77 $ 1.78 $ 1.74 Diluted earnings per share $ 1.74 $ 1.75 $ 1.72 The computation of diluted earnings per share excludes stock options, warrants, and restricted stock units that are anti-dilutive. For the years ended December 31, 2015 , 2014 , and 2013 , stock options, warrants, and restricted stock units representing common share equivalents of 2,223,886 shares, 864,488 shares, and 3,440,171 shares, respectively, were anti-dilutive. |
Employee and Advisor Benefit Pl
Employee and Advisor Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee and Advisor Benefit Plans | Employee and Advisor Benefit Plans The Company participates in a 401(k) defined contribution plan sponsored by LPL Financial. All employees meeting minimum age and length of service requirements are eligible to participate. The Company has an employer matching program whereby employer contributions are made to the 401(k) plan, and employees are eligible for matching contributions after completing one year of service. For 2015 , employer contributions were made in an amount equal to 65% of the first 8% of an employee's designated deferral of their eligible compensation. For 2014 and 2013 , contributions were made in an amount equal to 65% and 50% , of the first 8% and 10% of an employee's designated deferral of their eligible compensation respectively. The Company’s total cost related to the 401(k) plan was $9.9 million , $8.7 million , and $6.3 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively, which is classified as compensation and benefits expense in the consolidated statements of income. In August 2012, the Company established the 2012 Employee Stock Purchase Plan (the “ ESPP ” ) as a benefit to enable eligible employees to purchase common stock of LPLFH at a discount from the market price through payroll deductions, subject to limitations. Eligible employees may elect to participate in the ESPP only during an open enrollment period. The offering period immediately follows the open enrollment window, upon which time ESPP contributions are withheld from the participant's regular paycheck. The ESPP provides for a 15% discount on the market value of the stock at the lower of the grant date price (first day of the offering period) and the purchase date price (last day of the offering period). In January 2008, the Company adopted a non-qualified deferred compensation plan for the purpose of attracting and retaining advisors who operate, for tax purposes, as independent contractors, by providing an opportunity for participating advisors to defer receipt of a portion of their gross commissions generated primarily from commissions earned on the sale of various products. The deferred compensation plan has been fully funded to date by participant contributions. Plan assets are invested in mutual funds, which are held by the Company in a Rabbi Trust. The liability for benefits accrued under the non-qualified deferred compensation plan totaled $98.8 million at December 31, 2015 , which is included in accounts payable and accrued liabilities in the consolidated statements of financial condition. The cash values of the related trust assets was $98.5 million at December 31, 2015 , which is measured at fair value and included in other assets in the consolidated statements of financial condition. Certain employees and advisors of the Company’s subsidiaries participated in non-qualified deferred compensation plans (the “ Plans ” ) that permitted participants to defer portions of their compensation and earn interest on the deferred amounts. The Plans have been closed to new participants and no contributions have been made since the acquisition date. Plan assets are held by the Company in a Rabbi Trust and accounted for in the manner described above. As of December 31, 2015 , the Company has recorded assets of $2.1 million and liabilities of $0.9 million , which are included in other assets and accounts payable and accrued liabilities, respectively, in the consolidated statements of financial condition. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has related party transactions with certain portfolio companies of TPG Capital, a 9.8% shareholder of the Company's common stock, and LPL Financial Foundation. During the years ended December 31, 2015 , 2014 , and 2013 the Company recognized revenue for services provided to these TPG Capital portfolio companies of $0.6 million , $1.0 million , and $0.5 million , respectively. The Company incurred expenses for the services provided by certain of the TPG portfolio companies and LPL Foundation of $6.8 million , $4.2 million , and $0.6 million , during the years ended December 31, 2015 , 2014 and 2013 respectively. As of December 31, 2015 and 2014 , payables to related parties were less than $0.2 million and less than $0.5 million , respectively, and receivables from related parties were $0.0 and less than $0.2 million , respectively. |
Net Capital and Regulatory Requ
Net Capital and Regulatory Requirements | 12 Months Ended |
Dec. 31, 2015 | |
Brokers and Dealers [Abstract] | |
Net Capital and Regulatory Requirements | Net Capital and Regulatory Requirements The Company operates in a highly regulated industry. Applicable laws and regulations restrict permissible activities and investments and require compliance with various financial and customer-related regulations. The consequences of noncompliance can include substantial monetary and non-monetary sanctions. In addition, the Company is also subject to comprehensive examinations and supervision by various governmental and self-regulatory agencies. These regulatory agencies generally have broad discretion to prescribe greater limitations on the operations of a regulated entity for the protection of investors or public interest. Furthermore, where the agencies determine that such operations are unsafe or unsound, fail to comply with applicable law, or are otherwise inconsistent with the laws and regulations or with the supervisory policies, greater restrictions may be imposed. The Company’s registered broker-dealer, LPL Financial, is subject to the SEC’s Uniform Net Capital Rule (Rule 15c3-1 under the Exchange Act), which requires the maintenance of minimum net capital, as defined. Net capital and the related net capital requirement may fluctuate on a daily basis. LPL Financial is a clearing broker-dealer and, as of December 31, 2015 , had net capital of $104.0 million with a minimum net capital requirement of $6.6 million . The Company's subsidiary, PTC, operates in a highly regulated industry and is subject to various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that if undertaken, could have substantial monetary and non-monetary impacts to PTC's operations. As of December 31, 2015 and 2014 , LPL Financial and PTC met all capital adequacy requirements to which they were subject. |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Credit Risk and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Concentration Risk Credit Risk Financial Instruments Off Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance-Sheet Credit Risk and Concentrations of Credit Risk | Financial Instruments with Off-Balance-Sheet Credit Risk and Concentrations of Credit Risk LPL Financial’s client securities activities are transacted on either a cash or margin basis. In margin transactions, LPL Financial extends credit to the advisor's client, subject to various regulatory and internal margin requirements, collateralized by cash and securities in the client’s account. As clients write options contracts or sell securities short, LPL Financial may incur losses if the clients do not fulfill their obligations and the collateral in the clients’ accounts is not sufficient to fully cover losses that clients may incur from these strategies. To control this risk, LPL Financial monitors margin levels daily and clients are required to deposit additional collateral, or reduce positions, when necessary. LPL Financial is obligated to settle transactions with brokers and other financial institutions even if its advisors' clients fail to meet their obligation to LPL Financial. Clients are required to complete their transactions on the settlement date, generally three business days after the trade date. If clients do not fulfill their contractual obligations, LPL Financial may incur losses. In addition, the Company occasionally enters into certain types of contracts to fulfill its sale of when, as, and if issued securities. When, as, and if issued securities have been authorized but are contingent upon the actual issuance of the security. LPL Financial has established procedures to reduce this risk by generally requiring that clients deposit cash or securities into their account prior to placing an order. LPL Financial may at times hold equity securities on both a long and short basis that are recorded on the consolidated statements of financial condition at market value. While long inventory positions represent LPL Financial’s ownership of securities, short inventory positions represent obligations of LPL Financial to deliver specified securities at a contracted price, which may differ from market prices prevailing at the time of completion of the transaction. Accordingly, both long and short inventory positions may result in losses or gains to LPL Financial as market values of securities fluctuate. To mitigate the risk of losses, long and short positions are marked-to-market daily and are continuously monitored by LPL Financial. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) 2015 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net revenues $ 1,109,302 $ 1,090,661 $ 1,054,745 $ 1,020,346 Net income $ 50,678 $ 50,242 $ 41,052 $ 26,812 Basic earnings per share $ 0.52 $ 0.52 $ 0.43 $ 0.29 Diluted earnings per share $ 0.52 $ 0.52 $ 0.43 $ 0.28 Dividends declared per share $ 0.24 $ 0.24 $ 0.24 $ 0.24 2014 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net revenues $ 1,087,431 $ 1,092,729 $ 1,089,234 $ 1,104,268 Net income $ 53,135 $ 43,091 $ 33,272 $ 48,545 Basic earnings per share $ 0.52 $ 0.43 $ 0.33 $ 0.50 Diluted earnings per share $ 0.51 $ 0.42 $ 0.33 $ 0.49 Dividends declared per share $ 0.24 $ 0.24 $ 0.24 $ 0.24 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On February 23, 2016 , the Board of Directors declared a cash dividend of $0.25 per share on the Company's outstanding common stock to be paid on March 14, 2016 to all stockholders of record on March 4, 2016 . During the period January 1, 2016 through February 25, 2016, the Company has purchased 634,651 shares of its common stock at a weighted-average price of $39.41 . |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation These consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence, but does not exercise control and is not the primary beneficiary, are accounted for using the equity method. |
Reportable Segment | Reportable Segment Management has determined that our company operates in one segment, given the similarities in economic characteristics between our operations and the common nature of our products and services, production and distribution process, and regulatory environment. |
Revenue Recognition | Revenue Recognition Substantially all of the Company's revenues are based on contractual arrangements. In determining the appropriate recognition of commissions, the Company reviews the terms and conditions of the brokerage account agreements between the Company and its advisors' clients, representative agreements with its advisors, which include payout rates and terms, and selling agreements with product sponsors for packaged investment products such as mutual funds, annuities, insurance, and alternative investments. In determining the appropriate recognition of advisory revenues, the Company reviews the terms and conditions of the advisory agreements between the advisors' clients and the applicable registered investment advisor ( “ RIA ” ), representative agreements with its advisors, and agreements with third parties who provide specific investment management or investment strategies. Revenues are recognized in the periods in which the related services are performed provided that persuasive evidence of an arrangement exists, the fee is fixed or determinable, and collectability is reasonably assured. Payments received by the Company in advance of the performance of service are deferred and recognized as revenue when earned. Management considers the nature of the Company's contractual arrangements in determining whether to recognize certain types of revenue on the basis of the gross amount billed or net amount retained after payments are made to providers of certain services related to the product or service offering. The main factors the Company uses to determine whether to record revenue on a gross or net basis are whether: • the Company is primarily responsible for the service to the advisor and their client; • the Company has discretion in establishing fees paid by the client and fees due to the third-party service provider; and • the Company is involved in the determination of product or service specifications. When client fees include a portion of charges that are paid to another party and the Company is primarily responsible for providing the service to the client, revenue is recognized on a gross basis in an amount equal to the fee paid by the client. The cost of revenues recognized is the amount due to the other party and is recorded as commission and advisory expense in the consolidated statements of income. In instances in which another party is primarily responsible for providing the service to the client, revenue is recognized in the net amount retained by the Company. The portion of the fees that are collected from the client by the Company and remitted to the other party are considered pass through amounts and accordingly are not a component of revenues or cost of revenues. The Company recognizes revenue related to commission, advisory fees, asset-based fees, transaction and fees, and interest income, net of interest expense. Commission Revenues Commission revenues represent commissions generated by the Company's advisors for their clients' purchases and sales of securities on exchanges and over-the-counter, as well as purchases of various investment products such as mutual funds, variable and fixed annuities, alternative investments including non-traded real estate investment trusts and business development companies, fixed income, insurance, group annuities, and option and commodity transactions. The Company generates two types of commission revenues: transaction-based sales commissions that occur at the point of sale, as well as trailing commissions for which the Company provides ongoing support, awareness, and education to clients of its advisors. Transaction-based sales commissions are recognized as revenue on a trade-date basis, which is when the Company's performance obligations in generating the commissions have been substantially completed. The Company settles a significant volume of transactions that are initiated directly between its advisors and product sponsors, particularly with regard to mutual fund, 529 education savings plan, fixed and variable annuity, and insurance products. As a result, management must estimate a portion of its commission revenues earned from clients for purchases and sales of these products for each accounting period for which the proceeds have not yet been received. These estimates are based on the amount of commissions earned from transactions in these products in prior periods. Trailing commission revenues include mutual fund, 529 education savings plan, and fixed and variable product trailing fees, which are recurring in nature. These trailing fees are earned by the Company based on a percentage of the current market value of clients' investment holdings in trail-eligible assets, and recognized over the period during which services are performed. Because trailing commission revenues are generally paid in arrears, management estimates the majority of trailing commission revenues earned during each period. These estimates are based on a number of factors, including market levels and the amount of trailing commission revenues received in prior periods. Commission revenue accruals are classified within receivables from product sponsors, broker-dealers, and clearing organizations in the consolidated statements of financial condition. A substantial portion of the commission revenue is ultimately paid to the advisors. The Company records an estimate for commissions payable based upon average payout ratios for each product for which the Company has accrued commission revenue. Such amounts are classified as accrued commission and advisory expenes payable in the consolidated statements of financial condition and commission and advisory expense in the consolidated statements of income. Advisory Revenues The Company records fees charged to clients as advisory revenues in advisory accounts where LPL Financial or IAG is the RIA. A substantial portion of these advisory fees are paid to the related advisor and these payments are classified as commission and advisory expense in the consolidated statements of income. Certain advisors conduct their advisory business through separate entities by establishing their own RIA firm pursuant to the Advisers Act or through their respective states' investment advisory licensing rules, rather than using the Company's corporate RIA platform. These stand-alone entities, or Hybrid RIAs, engage the Company for clearing, regulatory, and custody services, as well as access to the Company's investment advisory platforms. The advisory revenue generated by these Hybrid RIAs is earned by the advisors, and accordingly not included in the Company's advisory revenues. The Company charges separate fees to Hybrid RIAs for technology, custody, administrative, and clearing services, primarily based on the value of assets within these advisory accounts, which are classified as advisory revenues in the consolidated statements of income. Asset-Based Revenues Asset-based revenues are comprised of fees from cash sweep programs, financial product manufacturer sponsorship programs, and omnibus processing and networking services and are recognized ratably over the period in which services are provided. Transaction and Fee Revenues The Company charges fees for executing certain transactions in client accounts. Transaction related charges are recognized on a trade-date basis. Other fees relate to services provided and other account charges generally outlined in agreements with clients, advisors, and financial institutions. Such fees are recognized as services are performed or as earned, as applicable. In addition, the Company offers various services for which fees are charged on a subscription basis and recognized over the subscription period. Interest Income, Net of Interest Expense The Company earns interest income from its cash equivalents and client margin balances, less interest expense on related transactions. Because interest expense incurred in connection with cash equivalents and client margin balances is completely offset by revenue on related transactions, the Company considers such interest to be an operating expense. Interest expense from operations for the years ended December 31, 2015 , 2014 , and 2013 did not exceed $1.0 million . |
Compensation and Benefits | Compensation and Benefits The Company records compensation and benefits expense for all cash and deferred compensation, benefits, and related taxes as earned by its employees. Compensation and benefits expense also includes fees earned by temporary employees and contractors who perform similar services to those performed by the Company’s employees, primarily software development and project management activities. |
Share-Based Compensation | Share-Based Compensation Certain employees, officers, directors, advisors, and financial institutions of the Company participate in various long-term incentive plans that provide for granting stock options, warrants, restricted stock awards, and restricted stock units. Stock options and warrants generally vest in equal increments over a three - to five -year period and expire on the ten th anniversary following the date of grant. Restricted stock awards and restricted stock units generally vest over a two - to four -year period. The Company recognizes share-based compensation for equity awards granted to employees, officers, and directors as compensation and benefits expense on the consolidated statements of income. The fair value of stock options is estimated using a Black-Scholes valuation model on the date of grant. The fair value of restricted stock awards and restricted stock units is equal to the closing price of the Company’s stock on the date of grant. Share-based compensation is recognized over the requisite service period of the individual awards, which generally equals the vesting period. The Company recognizes share-based compensation for equity awards granted to advisors and financial institutions as commissions and advisory expense on the consolidated statements of income. The fair value of stock options and warrants is estimated using a Black-Scholes valuation model on the date of grant and is revalued at each reporting period. The fair value of restricted stock units is equal to the closing price of the Company’s stock on the date of grant and on the last day of each reporting period. Share-based compensation is recognized over the requisite service period of the individual awards, which generally equals the vesting period. The Company must also make assumptions regarding the number of stock options, warrants, restricted stock awards, and restricted stock units that will be forfeited. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. Therefore, changes in the forfeiture assumptions do not impact the total amount of expense ultimately recognized over the vesting period. Rather, different forfeiture assumptions would only impact the timing of expense recognition over the vesting period. See Note 15 . Share-Based Compensation , for additional information regarding share-based compensation for equity awards granted. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the basic weighted-average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if dilutive potential shares of common stock had been issued. |
Income Taxes | Income Taxes In preparing the consolidated financial statements, the Company estimates income tax expense based on various jurisdictions where it conducts business. The Company then must assess the likelihood that the deferred tax assets will be realized. A valuation allowance is established to the extent that it is more-likely-than-not that such deferred tax assets will not be realized. When the Company establishes a valuation allowance or modifies the existing allowance in a certain reporting period, it generally records a corresponding increase or decrease to tax expense in the consolidated statements of income. Management makes significant judgments in determining the provision for income taxes, the deferred tax assets and liabilities, and any valuation allowances recorded against the deferred tax asset. Changes in the estimate of these taxes occur periodically due to changes in the tax rates, changes in the business operations, implementation of tax planning strategies, resolution with taxing authorities of issues where the Company had previously taken certain tax positions, and newly enacted statutory, judicial, and regulatory guidance. These changes could have a material effect on the Company’s consolidated statements of income, financial condition, or cash flows in the period or periods in which they occur. Income tax credits are accounted for using the flow-through method as a reduction of income tax in the years utilized. The Company recognizes the tax effects of a position in the consolidated financial statements only if it is more-likely-than-not to be sustained based solely on its technical merits, otherwise no benefits of the position are to be recognized. The more-likely-than-not threshold must continue to be met in each reporting period to support continued recognition of a benefit. Moreover, each tax position meeting the recognition threshold is required to be measured as the largest amount that is greater than 50 percent likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. |
Cash and Cash Equivalents, Cash and Securities Segregated Under Federal and Other Regulations, Restricted Cash | Cash and Cash Equivalents Cash equivalents are highly liquid investments with an original maturity of 90 days or less that are not required to be segregated under federal or other regulations. The Company's cash and cash equivalents are composed of interest and noninterest-bearing deposits, money market funds, and U.S. government obligations. Cash and Securities Segregated Under Federal and Other Regulations The Company's subsidiary, LPL Financial, is subject to requirements related to maintaining cash or qualified securities in a segregated reserve account for the exclusive benefit of its customers in accordance with Rule 15c3-3 of the Security Exchange Act of 1934, as amended, and other regulations. Held within this account is approximately $100,000 for the proprietary accounts of introducing brokers. Restricted Cash Restricted cash primarily represents cash held by and for use by the Company’s captive insurance subsidiary. |
Receivable From and Payables to Clients | Receivables From and Payables to Clients Receivables from clients include amounts due on cash and margin transactions. The Company extends credit to clients of its advisors to finance their purchases of securities on margin and receives income from interest charged on such extensions of credit. Payables to clients represent credit balances in client accounts arising from deposits of funds, proceeds from sales of securities, and dividend and interest payments received on securities held in client accounts at LPL Financial. At December 31, 2015 and 2014 , $747.4 million and $646.4 million , respectively, of the balance represent free credit balances that are held pending re-investment by the clients. The Company pays interest on certain client payable balances. To the extent that margin loans and other receivables from clients are not fully collateralized by client securities, management establishes an allowance that it believes is sufficient to cover any probable losses. When establishing this allowance, management considers a number of factors, including its ability to collect from the client or the client’s advisor and the Company’s historical experience in collecting on such transactions. |
Advisor Loans [Policy Text Block] | Advisor Loans The Company periodically extends credit to its advisors in the form of recruiting loans, commission advances, and other loans. The decisions to extend credit to advisors are generally based on the advisors’ credit history and their ability to generate future commissions. Certain loans made in connection with recruiting are forgivable over terms ranging from three to eight years provided that the advisor remains licensed through LPL Financial. At December 31, 2015 , $94.5 million of the advisor loan balance was forgivable. Management maintains an allowance for uncollectible amounts, which excludes advisor loans that are forgivable, using an aging analysis that takes into account the advisors’ registration status and the specific type of receivable. The aging thresholds and specific percentages used represent management’s best estimates of probable losses. Management monitors the adequacy of these estimates through periodic evaluations against actual trends experienced. The following schedule reflects the Company’s activity in providing for an allowance for uncollectible amounts for advisor loans (in thousands): December 31, 2015 2014 Beginning balance — January 1 $ 697 $ — Provision for doubtful accounts — 697 Ending balance — December 31 $ 697 $ 697 |
Receivables | Receivables From Others Receivables from others primarily consist of accrued fees from product sponsors and amounts due from advisors. Management maintains an allowance for uncollectible amounts using an aging analysis that takes into account the specific type of receivable. The aging thresholds and specific percentages used represent management’s best estimates of probable losses. Management monitors the adequacy of these estimates through periodic evaluations against actual trends experienced |
Securities Owned and Securities Sold, But Not Yet Purchased | Securities Owned and Securities Sold, But Not Yet Purchased Securities owned and securities sold, but not yet purchased include trading and held-to-maturity securities. The Company generally classifies its investments in debt and equity instruments (including mutual funds, annuities, corporate bonds, government bonds, and municipal bonds) as trading securities, except for U.S. government notes held by PTC, which are classified as held-to-maturity securities. The Company has not classified any investments as available-for-sale. Investment classifications are subject to ongoing review and can change. Securities classified as trading are carried at fair value, while securities classified as held-to-maturity are carried at amortized cost. The Company uses prices obtained from independent third-party pricing services to measure the fair value of its trading securities. Prices received from the pricing services are validated using various methods including comparison to prices received from additional pricing services, comparison to available quoted market prices, and review of other relevant market data including implied yields of major categories of securities. In general, these quoted prices are derived from active markets for identical assets or liabilities. When quoted prices in active markets for identical assets and liabilities are not available, the quoted prices are based on similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. For certificates of deposit and treasury securities, the Company utilizes market-based inputs, including observable market interest rates that correspond to the remaining maturities or the next interest reset dates. At December 31, 2015 , the Company did not adjust prices received from the independent third-party pricing services. Interest income is accrued as earned. Premiums and discounts are amortized using a method that approximates the effective yield method over the term of the security and are recorded as an adjustment to the investment yield. The Company makes estimates about the fair value of investments and the timing for recognizing losses based on market conditions and other factors. If these estimates change, the Company may recognize additional losses. Both unrealized and realized gains and losses on trading securities are recognized in other revenue on a net basis in the consolidated statements of income. |
Securities Borrowed | Securities Borrowed Securities borrowed are accounted for as collateralized financings and are recorded at contract value, representing the amount of cash provided for securities borrowed transactions (generally in excess of market values). The adequacy of the collateral deposited, which is determined by comparing the market value of the securities borrowed to the cash loaned , is continuously monitored and is adjusted when considered necessary to minimize the risk associated with this activity. The Company borrows securities from other broker-dealers to make deliveries or to facilitate customer short sales. As of December 31, 2015 , the contract and collateral market values of borrowed securities were $6.0 million and $5.8 million , respectively. As of December 31, 2014 , the contract and collateral market values of borrowed securities were $5.0 million and $4.9 million , respectively. |
Fixed Assets | Fixed Assets Internally developed software, leasehold improvements, computers and software, and furniture and equipment are recorded at historical cost, net of accumulated depreciation and amortization. Depreciation is recognized using the straight-line method over the estimated useful lives of the assets. The Company charges software development costs to operations as incurred during the preliminary project stage, while capitalizing costs at the point at which the conceptual formulation, design, and testing of possible software project alternatives are complete and management authorizes and commits to funding the project. The costs of internally developed software that qualify for capitalization are capitalized as fixed assets and subsequently amortized over the estimated useful life of the software, which is generally three years. The Company does not capitalize pilot projects and projects for which it believes that the future economic benefits are less than probable. Leasehold improvements are amortized over the lesser of their useful lives or the terms of the underlying leases. Computers and software, as well as furniture and equipment, are depreciated over a period of three to seven years. Land is not depreciated. Management reviews fixed assets for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. During the year ended December 31, 2015 , in conjunction with the Fortigent restructuring (see Note 3. Restructuring), the Company recorded an asset impairment charge of $0.4 million for certain fixed assets related to Fortigent leasehold improvements that were determined to no longer have future economic benefit. The $0.4 million asset impairment charge for the year ended December 31, 2015 is included in restructuring charges within the consolidated statements of income. During the year ended December 31, 2013, in conjunction with the SVC restructuring (see Note 3. Restructuring), the Company recorded an asset impairment charge of $0.8 million for certain fixed assets related to internally developed software that were determined to no longer have future economic benefit. The $0.8 million asset impairment charge for the year ended December 31, 2013 is included in restructuring charges within the consolidated statements of income. No impairment occurred for the year ended December 31, 2014 . |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other indefinite-lived assets are not amortized; however, intangible assets that are deemed to have definite lives are amortized over their useful lives, generally ranging from 5 - 20 years. See Note 8 . Goodwill and Other Intangible Assets , for additional information regarding the Company's goodwill and other intangible assets. Goodwill and other indefinite-lived intangible assets are tested annually for impairment in the fourth fiscal quarter and between annual tests if certain events occur indicating that the carrying amounts may be impaired. If a qualitative assessment is used and the Company determines that the fair value of a reporting unit or indefinite-lived intangible asset is more likely than not (i.e., a likelihood of more than 50%) less than its carrying amount, a quantitative impairment test will be performed. If goodwill or other indefinite-lived intangible assets are quantitatively assessed for impairment, a two-step approach is applied. First, the Company compares the estimated fair value of the reporting unit in which the asset resides to its carrying value. The second step, if necessary, measures the amount of such impairment by comparing the implied fair value of the asset to its carrying value. No impairment of goodwill or other indefinite-lived intangible assets was recognized during the years ended December 31, 2015 , 2014 , or 2013 . Long-lived assets, such as intangible assets subject to amortization, are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset group. Long-lived assets to be disposed of by sale are reported at the lower of their carrying amounts or their estimated fair values less costs to sell and are not depreciated. There was $0.4 million , $0 , and $0 of impairment of definite-lived intangible assets recognized during the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance and amendment costs have been capitalized and are being amortized as additional interest expense over the expected terms of the related debt agreements. In accordance with Accounting Standards Update ("ASU") 2015-03, Interest—Imputation of Interest, debt issuance costs are presented as a direct deduction from the carrying amount of the related debt liability. In accordance with ASU 2015-15, Interest—Imputation of Interest costs incurred while obtaining the revolving credit facility are included in other assets and subsequently amortized ratably over the term of the revolving credit facility, regardless of whether there are any outstanding borrowings on the revolving credit facility. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments, primarily consisting of non-deliverable foreign currency forward contracts, to mitigate foreign currency exchange rate risk related to operating expenses that are subject to repricing. The Company has designated these derivative financial instruments as cash flow hedges, all of which qualify for hedge accounting. The Company assesses the ongoing effectiveness of its cash flow hedges. Changes in the fair value for the effective portion of the Company's cash flow hedges are presented in other comprehensive income and reclassified into earnings to match the timing of the underlying hedged item. Hedge ineffectiveness is measured at the end of each fiscal quarter, with any gains or losses realized into earnings in the current period. See Note 9 . Derivative Financial Instruments , for additional information regarding the Company's derivative financial instruments. |
Fair Value of Debt Instruments | Fair Value of Financial Instruments The Company’s financial assets and liabilities are carried at fair value or at amounts that, because of their short-term nature, approximate current fair value, with the exception of its held-to-maturity securities and indebtedness. The Company carries its indebtedness at amortized cost. The Company measures the implied fair value of its debt instruments using trading levels obtained from a third-party service provider. Accordingly, the debt instruments qualify as Level 2 fair value measurements. |
Commitments and Contingencies | Commitments and Contingencies The Company recognizes a liability with regard to loss contingencies when it believes it is probable a liability has occurred and the amount can be reasonably estimated. If some amount within a range of loss appears at the time to be a better estimate than any other amount within the range, the Company accrues that amount. When no amount within the range is a better estimate than any other amount, however, the Company accrues the minimum amount in the range. The Company records legal accruals and related insurance recoveries on a gross basis. Defense costs are expensed as incurred and classified as other expenses within the consolidated statements of income. |
Leasehold Financing Obligation Policy [Policy Text Block] | Leasehold Financing Obligation The Company is involved with the construction of a building for use as office space in Fort Mill, South Carolina and has determined that it has substantially all of the risks of ownership during construction of the leased property. Accordingly, from an accounting perspective, the Company is deemed to be the owner of the construction project. As such, the Company records an asset for the amount of the total project costs and an amount related to the value attributed to the building under construction in fixed assets and the related financing obligation in leasehold financing obligations on the consolidated statements of financial condition. Once construction is complete, the Company will determine if the asset qualifies for sale-leaseback accounting treatment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2015, the Company early adopted ASU 2015-03, Interest—Imputation of Interest , which simplifies the presentation of debt issuance costs on the balance sheet by presenting debt issuance costs as a direct deduction from the carrying amount of the related debt liability as discussed in our significant accounting policy above. The presentation affects all years presented. The adoption of ASU 2015-03 did not have a material impact on its consolidated financial statements. In August 2015, the Financial Accounting Standards Board ("FASB") issued ASU 2015-14, Revenue From Contracts with Customers (Topic 606), Deferral of the Effective Date , which defers the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) to January 1, 2018 for the Company, with early adoption permitted as of January 1, 2017. The new guidance requires either a retrospective or a modified retrospective approach to adoption. The Company is currently evaluating the available transition methods and the potential impact on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule for uncollectible amounts due from clients | The following schedule reflects the Company’s activity in providing for an allowance for uncollectible amounts for advisor loans (in thousands): December 31, 2015 2014 Beginning balance — January 1 $ 697 $ — Provision for doubtful accounts — 697 Ending balance — December 31 $ 697 $ 697 The following schedule reflects the Company’s activity in providing for an allowance for uncollectible amounts due from clients (in thousands): December 31, 2015 2014 Beginning balance — January 1 $ 1,245 $ 588 Provision for doubtful accounts 219 657 Ending balance — December 31 $ 1,464 $ 1,245 The following schedule reflects the Company’s activity in providing for an allowance for uncollectible amounts due from others (in thousands): December 31, 2015 2014 Beginning balance — January 1 $ 8,379 $ 7,091 Provision for doubtful accounts 2,322 1,775 Charge-offs, net of recoveries (845 ) (487 ) Ending balance — December 31 $ 9,856 $ 8,379 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |
Summary of changes in accrued restructuring expense balance | The following table summarizes the balance of accrued expenses and the changes in the accrued amounts for the Fortigent restructuring as of and for the year ended December 31, 2015 (in thousands): Costs Incurred Payments Non-cash Accrued Balance at December 31, 2015 Cumulative Costs Incurred to Date Employee severance obligations and other related costs $ 2,978 $ (2,658 ) $ — $ 320 $ 2,978 Relocation and related costs 2,650 (2,354 ) — 296 2,650 Lease restructuring charges 793 (170 ) (16 ) 607 793 Asset impairments 821 — (821 ) — 821 Total $ 7,242 $ (5,182 ) $ (837 ) $ 1,223 $ 7,242 The following table summarizes the balance of accrued expenses and the changes in the accrued amounts for the Program as of and for the year ended December 31, 2015 (in thousands): Accrued Balance at December 31, 2014 Costs Incurred Payments Accrued Balance at December 31, 2015 Cumulative Costs Incurred to Date Outsourcing and other related costs $ — $ 1,083 $ (1,204 ) $ (121 ) $ 22,571 Technology transformation costs 4,458 402 (4,778 ) 82 30,320 Employee severance obligations and other related costs 1,999 2,241 (3,659 ) 581 11,127 Asset impairments — — — — 842 Total $ 6,457 $ 3,726 $ (9,641 ) $ 542 $ 64,860 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial assets and financial liabilities measured at fair value on a recurring basis | The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis at December 31, 2015 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 252,393 $ — $ — $ 252,393 Securities owned — trading: Money market funds 261 — — 261 Mutual funds 7,267 — — 7,267 Equity securities 56 — — 56 Debt securities — 103 — 103 U.S. treasury obligations 4,308 — — 4,308 Total securities owned — trading 11,892 103 — 11,995 Other assets 99,962 3,350 — 103,312 Total assets at fair value $ 364,247 $ 3,453 $ — $ 367,700 Liabilities Securities sold, but not yet purchased: Mutual funds $ 1 $ — $ — $ 1 Equity securities 267 — — 267 Debt securities — — — — Total securities sold, but not yet purchased 268 — — 268 Accounts payable and accrued liabilities — — 527 527 Total liabilities at fair value $ 268 $ — $ 527 $ 795 The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2014 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 22,592 $ — $ — $ 22,592 Securities owned — trading: Money market funds 293 — — 293 Mutual funds 7,570 — — 7,570 Equity securities 224 — — 224 Debt securities — 1,379 — 1,379 U.S. treasury obligations 4,000 — — 4,000 Total securities owned — trading 12,087 1,379 — 13,466 Other assets 75,540 5,058 — 80,598 Total assets at fair value $ 110,219 $ 6,437 $ — $ 116,656 Liabilities Securities sold, but not yet purchased: Mutual funds $ 13 $ — $ — $ 13 Equity securities 279 — — 279 Debt securities — 10 — 10 Certificates of deposit — — — — Total securities sold, but not yet purchased 292 10 — 302 Accounts payable and accrued liabilities — — 527 527 Total liabilities at fair value $ 292 $ 10 $ 527 $ 829 |
Held-to-Maturity Securities (Ta
Held-to-Maturity Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of amortized cost, gross unrealized loss, and fair value of securities held-to-maturity | The amortized cost, gross unrealized loss, and fair value of securities held-to-maturity were as follows (in thousands): December 31, 2015 2014 Amortized cost $ 9,847 $ 8,594 Gross unrealized loss (26 ) (14 ) Fair value $ 9,821 $ 8,580 |
Maturities of securities held-to-maturity | At December 31, 2015 , the securities held-to-maturity were scheduled to mature as follows (in thousands): Within one year After one but within five years After five but within ten years Total U.S. government notes — at amortized cost $ 4,999 $ 4,348 $ 500 $ 9,847 U.S. government notes — at fair value $ 4,997 $ 4,327 $ 497 $ 9,821 |
Receivables from Product Spon36
Receivables from Product Sponsors, Broker-Dealers and Clearing Organizations and Payables to Broker-Dealers and Clearing Organizations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Receivables from Product Sponsors, Broker-Dealers and Clearing Organizations and Payables to Broker-Dealers and Clearing Organizations | Receivables from product sponsors, broker-dealers, and clearing organizations and payables to broker-dealers and clearing organizations were as follows (in thousands): December 31, 2015 2014 Receivables: Commissions receivable from product sponsors and others $ 115,413 $ 122,207 Receivable from clearing organizations 35,991 38,873 Receivable from broker-dealers 4,719 10,814 Securities failed-to-deliver 5,101 5,576 Total receivables $ 161,224 $ 177,470 Payables: Payable to clearing organizations $ 17,046 $ 19,580 Payable to broker-dealers 27,455 20,208 Securities failed-to-receive 3,531 5,639 Total payables $ 48,032 $ 45,427 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
The components of fixed assets | The components of fixed assets were as follows (in thousands): December 31, 2015 2014 Internally developed software $ 273,900 $ 259,335 Leasehold improvements 101,333 95,846 Computers and software 116,696 95,406 Real estate development 59,940 — Furniture and equipment 47,699 47,658 Land 4,731 4,743 Total fixed assets 604,299 502,988 Accumulated depreciation and amortization (328,880 ) (288,834 ) Fixed assets, net $ 275,419 $ 214,154 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of activity in goodwill | A summary of the activity in goodwill is presented below (in thousands): Balance at December 31, 2013 $ 1,361,361 Goodwill acquired 4,477 Balance at December 31, 2014 $ 1,365,838 Goodwill acquired — Balance at December 31, 2015 $ 1,365,838 |
Components of intangible assets | The components of intangible assets were as follows at December 31, 2015 (dollars in thousands): Weighted-Average Life Remaining (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value Definite-lived intangible assets: Advisor and financial institution relationships 10.0 $ 440,533 $ (220,214 ) $ 220,319 Product sponsor relationships 10.1 234,086 (113,530 ) 120,556 Client relationships 8.6 19,133 (8,556 ) 10,577 Trade names 6.3 1,200 (440 ) 760 Total definite-lived intangible assets $ 694,952 $ (342,740 ) $ 352,212 Indefinite-lived intangible assets: Trademark and trade name 39,819 Total intangible assets $ 392,031 The components of intangible assets were as follows at December 31, 2014 (dollars in thousands): Weighted-Average Life Remaining (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value Definite-lived intangible assets: Advisor and financial institution relationships 10.9 $ 440,533 $ (195,835 ) $ 244,698 Product sponsor relationships 11.1 234,086 (101,377 ) 132,709 Client relationships 9.4 20,220 (7,622 ) 12,598 Trade names 7.3 1,200 (320 ) 880 Total definite-lived intangible assets $ 696,039 $ (305,154 ) $ 390,885 Indefinite-lived intangible assets: Trademark and trade name 39,819 Total intangible assets $ 430,704 |
Amortization expense | Future amortization expense is estimated as follows (in thousands): 2016 $ 38,035 2017 37,218 2018 34,786 2019 34,750 2020 34,358 Thereafter 173,065 Total $ 352,212 |
Derivative Financial Instrume39
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of non-deliverable foreign currency contracts | The details related to the non-deliverable foreign currency contracts at December 31, 2015 are as follows: Settlement Date Hedged Notional Amount (INR) (in millions) Contractual INR/USD Foreign Exchange Rate Hedged Notional Amount (USD) (in millions) Cash flow hedge #3 6/2/2016 560.4 72.21 7.8 Cash flow hedge #4 6/2/2017 560.4 74.20 7.5 Total hedged amount $ 15.3 |
Accounts Payable and Accrued 40
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Summary of accounts payable and accrued liabilities | Accounts payable and accrued liabilities were as follows (in thousands): December 31, 2015 2014 Advisor deferred compensation plan liability $ 98,828 $ 73,447 Accrued compensation 61,468 66,816 Deferred rent 45,003 48,629 Accounts payable 19,883 4,699 Other accrued liabilities 107,310 95,835 Total accounts payable and accrued liabilities $ 332,492 $ 289,426 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Outstanding borrowings | The Borrower’s outstanding borrowings were as follows (dollars in thousands): December 31, 2015 2014 Senior Secured Credit Facilities Maturity Principal Interest Rate Principal Interest Rate Revolving Credit Facility 9/30/2019 $ — — $ 110,000 4.75 % Senior secured term loans: Term Loan A 9/30/2019 459,375 2.74 % (1) 459,375 2.67 % Existing Term Loan B 3/29/2019 424,676 3.25 % (2) 1,064,883 3.25 % Extended Term Loan B 3/29/2021 630,986 4.25 % (3) — — New Term Loan B 11/20/2022 700,000 4.75 % (4) — — Total borrowings 2,215,037 1,634,258 Less: Unamortized Debt Issuance Cost 26,797 9,063 Long-term borrowings — net of unamortized debt issuance cost $ 2,188,240 $ 1,625,195 _____________________ (1) The variable interest rate per annum is either (a) 150 bps over the base rate or (b) 250 bps over the LIBOR rate (subject to a leverage based grid) (2) The variable interest rate per annum is either (a) 150 bps over the base rate or (b) 250 bps over the LIBOR rate (subject to a LIBOR floor of 75 bps ) (3) The variable interest rate per annum is either (a) 250 bps over the base rate or (b) 350 bps over the LIBOR rate (subject to a LIBOR floor of 75 bps ) (4) The variable interest rate per annum is either (a) 300 bps over the base rate or (b) 400 bps over the LIBOR rate (subject to a LIBOR floor of 75 bps ) |
Summary of minimum calendar year payments and maturities of the senior secured borrowings | The minimum calendar year payments and maturities of the senior secured borrowings as of December 31, 2015 are as follows (in thousands): 2016 $ 17,677 2017 26,290 2018 52,130 2019 841,193 2020 13,310 Thereafter 1,264,437 Total $ 2,215,037 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of provision for income taxes | The Company’s provision for income taxes was as follows (in thousands): December 31, 2015 2014 2013 Current provision: Federal $ 123,633 $ 120,995 $ 119,327 State 20,291 19,759 19,062 Total current provision 143,924 140,754 138,389 Deferred benefit: Federal (24,972 ) (20,800 ) (25,586 ) State (5,181 ) (3,300 ) (3,357 ) Total deferred benefit (30,153 ) (24,100 ) (28,943 ) Provision for income taxes $ 113,771 $ 116,654 $ 109,446 |
Summary of effective income tax rate reconciliation | A reconciliation of the U.S. federal statutory income tax rates to the Company’s effective income tax rates is set forth below: Years Ended December 31, 2015 2014 2013 Federal statutory income tax rates 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 3.6 3.6 3.5 Non-deductible expenses 0.7 0.7 0.4 Share-based compensation — (0.1 ) (0.1 ) Business energy tax credit — — (0.5 ) Goodwill derecognition — — 1.2 Contingent consideration obligations — (0.1 ) (1.5 ) Other 1.0 0.5 (0.4 ) Effective income tax rates 40.3 % 39.6 % 37.6 % |
Components of the net deferred income taxes | The components of the net deferred income taxes included in the consolidated statements of financial condition were as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Accrued liabilities $ 66,750 $ 55,731 Share-based compensation 26,774 24,537 State taxes 8,387 8,500 Deferred rent 4,755 4,768 Provision for bad debts 5,316 4,192 Net operating losses 404 999 Captive Insurance 1,590 — Other 11,867 4,339 Total deferred tax assets 125,843 103,066 Deferred tax liabilities: Amortization of intangible assets (128,646 ) (136,140 ) Depreciation of fixed assets (33,125 ) (32,509 ) Other (375 ) (598 ) Total deferred tax liabilities (162,146 ) (169,247 ) Deferred income taxes, net $ (36,303 ) $ (66,181 ) |
Summary of gross unrecognized tax benefits including interest and penalties reconciliation | The following table reflects a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits, including interest and penalties (in thousands): December 31, 2015 2014 2013 Balance — Beginning of year $ 20,987 $ 19,522 $ 19,867 Increases for tax positions related to the current year 4,404 4,656 3,972 Reductions as a result of a lapse of the applicable statute of limitations (644 ) (3,191 ) (4,317 ) Balance — End of year $ 24,747 $ 20,987 $ 19,522 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum payments | Future minimum payments under leases, lease commitments, service, development, and agency contracts, and other contractual obligations with initial terms greater than one year were as follows at December 31, 2015 (in thousands): 2016 $ 111,347 2017 58,387 2018 57,132 2019 38,649 2020 33,493 Thereafter 335,792 Total(1) $ 634,800 _____________________ (1) Future minimum payments have not been reduced by minimum sublease rental income of $4.0 million due in the future under noncancellable subleases. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of dividends paid per common share | Cash dividends per share of common stock and total cash dividends paid on a quarterly basis were as follows (in millions, except per share data): 2015 2014 Dividend per Share Total Cash Dividend Dividend per Share Total Cash Dividend First quarter $ 0.25 $ 24.2 $ 0.24 $ 24.1 Second quarter $ 0.25 $ 24.1 $ 0.24 $ 24.0 Third quarter $ 0.25 $ 23.8 $ 0.24 $ 24.0 Fourth quarter $ 0.25 $ 23.8 $ 0.24 $ 23.5 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-average assumptions used for calculating the fair value of its stock options and warrants with the Black-Scholes valuation model | The following table presents the weighted-average assumptions used in the Black-Scholes valuation model by the Company in calculating the fair value of stock options granted to its employees and officers stock options that have been granted during the year ended December 31, 2015 : Years Ended December 31, 2015 2014 2013 Expected life (in years) 5.30 6.02 6.25 Expected stock price volatility 25.78 % 44.25 % 45.03 % Expected dividend yield 2.30 % 1.77 % 1.72 % Risk-free interest rate 1.58 % 2.17 % 1.39 % Fair value of options $ 8.81 $ 20.51 $ 12.05 The fair value of stock options and warrants awarded to advisors and financial institutions are estimated on the date of grant and revalued at each reporting period using the Black-Scholes valuation model with the following weighted-average assumptions used during the year ended December 31, 2015 : Years Ended December 31, 2015 2014 2013 Expected life (in years) 5.25 6.82 6.24 Expected stock price volatility 25.91 % 25.87 % 40.99 % Expected dividend yield 2.35 % 2.24 % 1.89 % Risk-free interest rate 1.84 % 1.96 % 2.04 % Fair value of options $ 12.12 $ 15.12 $ 25.92 |
Summary of the Company's activity in its stock option and warrant plans | The following table summarizes the Company’s stock option and warrant activity at December 31, 2015 : Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In thousands) Outstanding — December 31, 2014 6,287,410 $ 31.59 Granted 1,168,508 $ 45.44 Exercised (1,119,137 ) $ 27.67 Forfeited (620,293 ) $ 39.78 Outstanding — December 31, 2015 5,716,488 $ 34.31 6.13 $ 47,704 Exercisable — December 31, 2015 3,459,118 $ 29.78 4.90 $ 44,507 Exercisable and expected to vest — December 31, 2015 5,615,265 $ 34.14 6.09 $ 47,799 |
Summary of information about outstanding stock options and warrants | The following table summarizes information about outstanding stock options and warrants as of December 31, 2015 : Outstanding Exercisable Range of Exercise Prices Total Number of Shares Weighted- Average Remaining Life (Years) Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price $18.04 - $23.02 941,445 3.47 $ 21.36 941,445 $ 21.36 $23.41 - $30.00 1,246,423 4.94 $ 28.25 980,611 $ 28.16 $31.60 - $32.33 1,056,895 6.68 $ 31.88 555,362 $ 31.91 $34.01 - $39.60 904,970 5.20 $ 34.60 792,094 $ 34.54 $42.60 - $54.81 1,566,755 8.88 $ 48.36 189,606 $ 53.92 5,716,488 6.13 $ 34.31 3,459,118 $ 29.78 |
Summary of the status of the Company's restricted stock | The following summarizes the Company’s activity in its restricted stock awards and restricted stock units for the year ended December 31, 2015 : Restricted Stock Awards Restricted Stock Units Number of Shares Weighted-Average Grant-Date Fair Value Number of Shares Weighted-Average Grant-Date Fair Value Nonvested — December 31, 2014 33,634 $ 42.78 546,725 $ 43.34 Granted 34,734 $ 41.25 382,866 $ 41.74 Vested (26,892 ) $ 38.93 (183,929 ) $ 39.63 Forfeited — $ — (108,961 ) $ 44.12 Nonvested — December 31, 2015 41,476 $ 43.99 636,701 $ 43.32 Expected to vest — December 31, 2015 41,046 $ 44.02 585,248 $ 43.43 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | The calculation of basic and diluted earnings per share for the years noted was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Net income $ 168,784 $ 178,043 $ 181,857 Basic weighted-average number of shares outstanding 95,273 99,847 104,698 Dilutive common share equivalents 1,513 1,804 1,305 Diluted weighted-average number of shares outstanding 96,786 101,651 106,003 Basic earnings per share $ 1.77 $ 1.78 $ 1.74 Diluted earnings per share $ 1.74 $ 1.75 $ 1.72 |
Selected Quarterly Financial 47
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly financial data | 2015 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net revenues $ 1,109,302 $ 1,090,661 $ 1,054,745 $ 1,020,346 Net income $ 50,678 $ 50,242 $ 41,052 $ 26,812 Basic earnings per share $ 0.52 $ 0.52 $ 0.43 $ 0.29 Diluted earnings per share $ 0.52 $ 0.52 $ 0.43 $ 0.28 Dividends declared per share $ 0.24 $ 0.24 $ 0.24 $ 0.24 2014 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net revenues $ 1,087,431 $ 1,092,729 $ 1,089,234 $ 1,104,268 Net income $ 53,135 $ 43,091 $ 33,272 $ 48,545 Basic earnings per share $ 0.52 $ 0.43 $ 0.33 $ 0.50 Diluted earnings per share $ 0.51 $ 0.42 $ 0.33 $ 0.49 Dividends declared per share $ 0.24 $ 0.24 $ 0.24 $ 0.24 |
Organization and Description 48
Organization and Description of the Company (Details) | 12 Months Ended |
Dec. 31, 2015 | |
LPLH [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100.00% |
LPL Financial [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100.00% |
Number of states in which entity operates | 50 |
Fortigent [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100.00% |
IAG [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100.00% |
LPLIA [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100.00% |
IASG [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100.00% |
UVEST [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100.00% |
PTCH [Member] | |
Consolidation, Parent Ownership Interest [Line Items] | |
Ownership interest percentage in subsidiary | 100.00% |
Summary of Significant Accoun49
Summary of Significant Accounting Policies Other Operating Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Interest expense from operations (did not exceed) | $ 1 | $ 1 | $ 1 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies Share-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Stock options and warrants [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration Period | 10 years |
Stock options and warrants [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 3 years |
Stock options and warrants [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 5 years |
Restricted stock awards and restricted stock units | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 2 years |
Restricted stock awards and restricted stock units | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting Period | 4 years |
Summary of Significant Accoun51
Summary of Significant Accounting Policies Receivables From and Payables to Clients (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | |||
Free credit balances held | $ 747,400 | $ 646,400 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Provision for doubtful accounts | 2,542 | 2,432 | $ 2,021 |
Receivables from clients [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance - January 1 | 1,245 | 588 | |
Provision for doubtful accounts | 219 | 657 | |
Ending balance - December 31 | $ 1,464 | $ 1,245 | $ 588 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies Receivables from Advisor (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Forgivable Loans Amortization Period, Minimum | 3 years | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Provision for doubtful accounts | $ 2,542 | $ 2,432 | $ 2,021 |
Forgivable Loans Amortization Period, Maximum | 8 years | ||
Advisor Loans [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance - January 1 | $ 697 | 0 | |
Provision for doubtful accounts | 0 | 697 | |
Ending balance - December 31 | $ 697 | $ 697 | $ 0 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies Receivables From Others (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | |||
Forgivable Loans Amortization Period, Minimum | 3 years | ||
Forgivable Loans Amortization Period, Maximum | 8 years | ||
Forgivable Advisor Loans | $ 94,500 | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Provision for doubtful accounts | 2,542 | $ 2,432 | $ 2,021 |
Receivables from others [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance - January 1 | 8,379 | 7,091 | |
Provision for doubtful accounts | 2,322 | 1,775 | |
Charge-offs, net of recoveries | (845) | (487) | |
Ending balance - December 31 | $ 9,856 | $ 8,379 | $ 7,091 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies Securities Borrowed (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Securities borrowed, contract value | $ 6,001 | $ 5,035 |
Securities borrowed, collateral market value | $ 5,800 | $ 4,900 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies Fixed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 400 | $ 0 | $ 0 |
Other Cost and Expense, Operating | 1,000 | 1,000 | 1,000 |
Impairment charge for certain fixed assets | $ 433 | $ 0 | $ 842 |
Internally developed software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets useful life (in years) | 3 years | ||
Computers and software [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets useful life (in years) | 3 years | ||
Computers and software [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets useful life (in years) | 7 years | ||
Furniture and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets useful life (in years) | 3 years | ||
Furniture and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets useful life (in years) | 7 years |
Summary of Significant Accoun56
Summary of Significant Accounting Policies Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Impairment of Intangible Assets (Excluding Goodwill) [Abstract] | |||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 0 | 0 | 0 |
Impairment of intangible assets, finite-lived | $ 0 | $ 0 | $ 0 |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 5 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, useful life | 20 years |
Summary of Significant Accoun57
Summary of Significant Accounting Policies Fair Value of Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Gross | $ 2,215,037 | $ 1,634,258 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 2,200,000 | $ 1,620,800 |
Restructuring Restructuring Tab
Restructuring Restructuring Table SVC (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Restructuring Charges [Member] | |
Restructuring Reserve [Roll Forward] | |
Accrued Balance, Beginning of Period | $ 6,457 |
Costs incurred | 3,726 |
Payments | (9,641) |
Accrued Balance, End of Period | 542 |
Cumulative Costs Incurred to Date | 64,860 |
Outsourcing and other related costs | |
Restructuring Reserve [Roll Forward] | |
Accrued Balance, End of Period | (121) |
Technology transformation costs | |
Restructuring Reserve [Roll Forward] | |
Accrued Balance, End of Period | 82 |
Employee severance obligations and other related costs | |
Restructuring Reserve [Roll Forward] | |
Accrued Balance, End of Period | 581 |
Asset impairments | |
Restructuring Reserve [Roll Forward] | |
Accrued Balance, End of Period | 0 |
Service Value Commitment [Member] | Outsourcing and other related costs | |
Restructuring Reserve [Roll Forward] | |
Accrued Balance, Beginning of Period | 0 |
Costs incurred | 1,083 |
Payments | (1,204) |
Cumulative Costs Incurred to Date | 22,571 |
Service Value Commitment [Member] | Technology transformation costs | |
Restructuring Reserve [Roll Forward] | |
Accrued Balance, Beginning of Period | 4,458 |
Costs incurred | 402 |
Payments | (4,778) |
Cumulative Costs Incurred to Date | 30,320 |
Service Value Commitment [Member] | Employee severance obligations and other related costs | |
Restructuring Reserve [Roll Forward] | |
Accrued Balance, Beginning of Period | 1,999 |
Costs incurred | 2,241 |
Payments | (3,659) |
Cumulative Costs Incurred to Date | 11,127 |
Service Value Commitment [Member] | Asset impairments | |
Restructuring Reserve [Roll Forward] | |
Accrued Balance, Beginning of Period | 0 |
Costs incurred | 0 |
Payments | 0 |
Cumulative Costs Incurred to Date | 842 |
Fortigent Restructuring [Member] | |
Restructuring Reserve [Roll Forward] | |
Costs incurred | 7,242 |
Payments | (5,182) |
Restructuring Reserve, Settled without Cash | (837) |
Accrued Balance, End of Period | 1,223 |
Cumulative Costs Incurred to Date | 7,242 |
Fortigent Restructuring [Member] | Employee severance obligations and other related costs | |
Restructuring Reserve [Roll Forward] | |
Costs incurred | 2,978 |
Payments | (2,658) |
Restructuring Reserve, Settled without Cash | 0 |
Accrued Balance, End of Period | (320) |
Cumulative Costs Incurred to Date | 2,978 |
Fortigent Restructuring [Member] | Employee Relocation [Member] | |
Restructuring Reserve [Roll Forward] | |
Costs incurred | 2,650 |
Payments | (2,354) |
Restructuring Reserve, Settled without Cash | 0 |
Accrued Balance, End of Period | 296 |
Cumulative Costs Incurred to Date | 2,650 |
Fortigent Restructuring [Member] | Facility Closing [Member] | |
Restructuring Reserve [Roll Forward] | |
Costs incurred | 793 |
Payments | (170) |
Restructuring Reserve, Settled without Cash | (16) |
Accrued Balance, End of Period | 607 |
Cumulative Costs Incurred to Date | 793 |
Fortigent Restructuring [Member] | Asset Impairment Charges [Member] | |
Restructuring Reserve [Roll Forward] | |
Costs incurred | 821 |
Payments | 0 |
Restructuring Reserve, Settled without Cash | (821) |
Accrued Balance, End of Period | 0 |
Cumulative Costs Incurred to Date | $ 821 |
Fair Value Measurements Financi
Fair Value Measurements Financial Assets and Liabilities Measured on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | $ 11,995 | $ 13,466 |
Securities sold, but not yet purchased | 268 | 302 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 252,393 | 22,592 |
Securities owned — trading | 11,995 | 13,466 |
Other assets | 103,312 | 80,598 |
Total assets at fair value | 367,700 | 116,656 |
Securities sold, but not yet purchased | 268 | 302 |
Accounts payable and accrued liabilities | 527 | 527 |
Total liabilities at fair value | 795 | 829 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 252,393 | 22,592 |
Securities owned — trading | 11,892 | 12,087 |
Other assets | 99,962 | 75,540 |
Total assets at fair value | 364,247 | 110,219 |
Securities sold, but not yet purchased | 268 | 292 |
Accounts payable and accrued liabilities | 0 | 0 |
Total liabilities at fair value | 268 | 292 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Securities owned — trading | 103 | 1,379 |
Other assets | 3,350 | 5,058 |
Total assets at fair value | 3,453 | 6,437 |
Securities sold, but not yet purchased | 0 | 10 |
Accounts payable and accrued liabilities | 0 | 0 |
Total liabilities at fair value | 0 | 10 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Securities owned — trading | 0 | 0 |
Other assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Securities sold, but not yet purchased | 0 | 0 |
Accounts payable and accrued liabilities | 527 | 527 |
Total liabilities at fair value | 527 | 527 |
Mutual Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 1 | 13 |
Mutual Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 1 | 13 |
Mutual Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | 0 |
Mutual Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | 0 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 267 | 279 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 267 | 279 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | 0 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | 0 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | 10 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | 0 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | 10 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | 0 |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 261 | 293 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 261 | 293 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 0 | 0 |
Mutual Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 7,267 | 7,570 |
Mutual Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 7,267 | 7,570 |
Mutual Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 0 | 0 |
Mutual Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 0 | 0 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 56 | 224 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 56 | 224 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 0 | 0 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 0 | 0 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 103 | 1,379 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 0 | 0 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 103 | 1,379 |
Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 0 | 0 |
U.S. Treasury Obligations [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 4,308 | 4,000 |
U.S. Treasury Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 4,308 | 4,000 |
U.S. Treasury Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 0 | 0 |
U.S. Treasury Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | $ 0 | $ 0 |
Held-to-Maturity Securities (De
Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of amortized cost, gross unrealized loss, and fair value of securities held-to-maturity | ||
U.S. government notes - at amortized cost, Total | $ 9,847 | $ 8,594 |
U.S. Treasury Securities [Member] | ||
Summary of amortized cost, gross unrealized loss, and fair value of securities held-to-maturity | ||
U.S. government notes - at amortized cost, Total | 9,847 | 8,594 |
Gross unrealized loss | (26) | (14) |
U.S. government notes - at fair value, Total | 9,821 | $ 8,580 |
U.S. Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Summary of amortized cost, gross unrealized loss, and fair value of securities held-to-maturity | ||
U.S. government notes - at fair value, Total | $ 9,821 |
Held-to-Maturity Securities (61
Held-to-Maturity Securities (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Maturities of securities held-to-maturity | ||
U.S. government notes - at amortized cost, Total | $ 9,847 | $ 8,594 |
U.S. Treasury Securities [Member] | ||
Maturities of securities held-to-maturity | ||
U.S. government notes - at amortized cost, Within one year | 4,999 | |
U.S. government notes - at amortized cost, After one but within five years | 4,348 | |
U.S. government notes - at amortized cost, After five but within ten years | 500 | |
U.S. government notes - at amortized cost, Total | 9,847 | 8,594 |
U.S. government notes - at fair value, Total | 9,821 | $ 8,580 |
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury Securities [Member] | ||
Maturities of securities held-to-maturity | ||
U.S. government notes - at fair value, Within one year | 4,997 | |
U.S. government notes - at fair value, After one but within five years | 4,327 | |
U.S. government notes - at fair value, After five but within ten years | 497 | |
U.S. government notes - at fair value, Total | $ 9,821 |
Receivables from Product Spon62
Receivables from Product Sponsors, Broker-Dealers and Clearing Organizations and Payables to Broker-Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables: | ||
Commissions receivable from product sponsors and others | $ 115,413 | $ 122,207 |
Receivable from clearing organizations | 35,991 | 38,873 |
Receivable from broker-dealers | 4,719 | 10,814 |
Securities failed-to-deliver | 5,101 | 5,576 |
Total receivables | 161,224 | 177,470 |
Payables: | ||
Payable to clearing organizations | 17,046 | 19,580 |
Payable to broker-dealers | 27,455 | 20,208 |
Securities failed-to-receive | 3,531 | 5,639 |
Total payables | $ 48,032 | $ 45,427 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 604,299 | $ 502,988 |
Development in Process | 59,940 | 0 |
Accumulated depreciation and amortization | (328,880) | (288,834) |
Fixed assets, net | 275,419 | 214,154 |
Internally developed software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 273,900 | 259,335 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 101,333 | 95,846 |
Computers and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 116,696 | 95,406 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 47,699 | 47,658 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 4,731 | $ 4,743 |
Fixed Assets (Details Textuals)
Fixed Assets (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 73,383 | $ 57,977 | $ 44,497 | |
Finance Obligation related to real estate projects | $ 59,900 | $ 0 | $ 0 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-lived Intangible Assets Acquired | $ 5,100 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,365,838 | 1,361,361 |
Goodwill acquired | 0 | 4,477 |
Goodwill, ending balance | $ 1,365,838 | $ 1,365,838 |
Intangible Assets (Components)(
Intangible Assets (Components)(Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets [Line Items] | ||
Total intangible assets | $ 392,031 | $ 430,704 |
Definite-lived intangible assets: | ||
Gross Carrying Value | 694,952 | 696,039 |
Accumulated Amortization | (342,740) | (305,154) |
Net Carrying Value | 352,212 | 390,885 |
Trademarks and Trade Names [Member] | ||
Indefinite-lived intangible assets: | ||
Net Carrying Value | $ 39,819 | $ 39,819 |
Advisor and financial institution relationships [Member] | ||
Intangible Assets [Line Items] | ||
Weighted-Average Life Remaining (in years) | 10 years | 10 years 10 months 15 days |
Definite-lived intangible assets: | ||
Gross Carrying Value | $ 440,533 | $ 440,533 |
Accumulated Amortization | (220,214) | (195,835) |
Net Carrying Value | $ 220,319 | $ 244,698 |
Product sponsor relationships [Member] | ||
Intangible Assets [Line Items] | ||
Weighted-Average Life Remaining (in years) | 10 years 1 month 6 days | 11 years 25 days |
Definite-lived intangible assets: | ||
Gross Carrying Value | $ 234,086 | $ 234,086 |
Accumulated Amortization | (113,530) | (101,377) |
Net Carrying Value | $ 120,556 | $ 132,709 |
Client relationships [Member] | ||
Intangible Assets [Line Items] | ||
Weighted-Average Life Remaining (in years) | 8 years 7 months 6 days | 9 years 5 months 1 day |
Definite-lived intangible assets: | ||
Gross Carrying Value | $ 19,133 | $ 20,220 |
Accumulated Amortization | (8,556) | (7,622) |
Net Carrying Value | $ 10,577 | $ 12,598 |
Trade names [Member] | ||
Intangible Assets [Line Items] | ||
Weighted-Average Life Remaining (in years) | 6 years 3 months 18 days | 7 years 4 months 1 day |
Definite-lived intangible assets: | ||
Gross Carrying Value | $ 1,200 | $ 1,200 |
Accumulated Amortization | (440) | (320) |
Net Carrying Value | $ 760 | $ 880 |
Goodwill and Other Intangible67
Goodwill and Other Intangible Assets (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill acquired during the period | $ 0 | $ 4,477 | |
Intangible assets acquired during the period | 5,100 | ||
Total amortization expense of intangible assets | $ 38,239 | $ 38,868 | $ 39,006 |
Intangible Assets (Future Amort
Intangible Assets (Future Amortization Expense)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Future amortization expense | ||
2,015 | $ 38,035 | |
2,016 | 37,218 | |
2,017 | 34,786 | |
2,018 | 34,750 | |
2,019 | 34,358 | |
Thereafter | 173,065 | |
Net Carrying Value | $ 352,212 | $ 390,885 |
Derivative Financial Instrume69
Derivative Financial Instruments (Details) ₨ in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015INR (₨) |
Derivative [Line Items] | ||
Hedged Notional Amount | $ 15.3 | |
Cash Flow Hedge 3 [Member] | ||
Derivative [Line Items] | ||
Hedged Notional Amount | $ 7.8 | ₨ 560.4 |
Contractual INR/USD Foreign Exchange Rate | 72.21 | 72.21 |
Cash Flow Hedge 4 [Member] | ||
Derivative [Line Items] | ||
Hedged Notional Amount | $ 7.5 | ₨ 560.4 |
Contractual INR/USD Foreign Exchange Rate | 74.20 | 74.20 |
Derivative Financial Instrume70
Derivative Financial Instruments (Details Textuals) ₨ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015INR (₨) | Jun. 30, 2014INR (₨) | |
Derivative [Line Items] | |||||
Number of cash flow hedges entered into by the Company | 4 | ||||
Hedged Notional Amount | $ 15.3 | ||||
Cash received on settlement of Cash Flow Hedge 1 | $ 0.7 | $ 1 | |||
Cash Flow Hedge 1 [Member] | |||||
Derivative [Line Items] | |||||
Hedged Notional Amount | $ 8.1 | $ 8.5 | ₨ 560.4 | ₨ 560.4 |
Derivative Financial Instrume71
Derivative Financial Instruments (Included in Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of cash flow hedges | $ 741 | $ 1,179 |
Accounts Payable and Accrued 72
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of accounts payable and accrued liabilities | ||
Advisor deferred compensation plan liability | $ 98,828 | $ 73,447 |
Accrued payroll | 61,468 | 66,816 |
Deferred rent | 45,003 | 48,629 |
Accounts payable | 19,883 | 4,699 |
Other accrued liabilities | 107,310 | 95,835 |
Total accounts payable and accrued liabilities | $ 332,492 | $ 289,426 |
Debt (Credit Agreement Outstand
Debt (Credit Agreement Outstanding Balance)(Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term Debt, Current and Noncurrent [Abstract] | ||
Balance | $ 2,188,240 | $ 1,625,195 |
Long-term Debt, Gross | 2,215,037 | 1,634,258 |
Deferred Finance Costs, Net | 26,797 | 9,063 |
Secured Debt [Member] | Term Loan A [Member] | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Balance | $ 459,375 | $ 459,375 |
Interest Rate | 2.74% | 2.67% |
Secured Debt [Member] | Term Loan A [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 15000.00% | |
Secured Debt [Member] | Term Loan A [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 25000.00% | |
Secured Debt [Member] | Amended Term Loan B [Member] | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Balance | $ 424,676 | $ 1,064,883 |
Interest Rate | 3.25% | 3.25% |
Secured Debt [Member] | Amended Term Loan B [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 15000.00% | |
Secured Debt [Member] | Amended Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 25000.00% | |
Secured Debt [Member] | Amended Term Loan B [Member] | Alternative Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Benchmark Short-Term Interest Rate | 7500.00% | |
Secured Debt [Member] | Extended Term Loan B [Member] | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Balance | $ 630,986 | |
Interest Rate | 4.25% | |
Secured Debt [Member] | Extended Term Loan B [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 25000.00% | |
Secured Debt [Member] | Extended Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 35000.00% | |
Secured Debt [Member] | Extended Term Loan B [Member] | Alternative Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Benchmark Short-Term Interest Rate | 7500.00% | |
Secured Debt [Member] | New Term Loan B [Member] | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Balance | $ 700,000 | |
Interest Rate | 4.75% | |
Secured Debt [Member] | New Term Loan B [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 30000.00% | |
Secured Debt [Member] | New Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 40000.00% | |
Secured Debt [Member] | New Term Loan B [Member] | Alternative Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Benchmark Short-Term Interest Rate | 7500.00% | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Revolving Credit Facility [Member] | Revolving Credit Facility Swingline Loan [Member] | ||
Long-term Debt, Current and Noncurrent [Abstract] | ||
Balance | $ 0 | $ 110,000 |
Interest Rate | 0.00% | 4.75% |
Debt (Future Payments and Matur
Debt (Future Payments and Maturities)(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
2,016 | $ 17,677 | |
2,017 | 26,290 | |
2,018 | 52,130 | |
2,019 | 841,193 | |
2,020 | 13,310 | |
Thereafter | 1,264,437 | |
Total | $ 2,215,037 | $ 1,634,258 |
Debt (Credit Agreement Textuals
Debt (Credit Agreement Textuals)(Details) | Sep. 02, 2015 | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Nov. 20, 2015USD ($) |
Debt Instrument [Line Items] | ||||
Debt Issuance Cost | $ 20,300,000 | |||
Number Of Uncommitted Lines Of Credit | 3 | |||
Uncommitted lines of credit, unspecified limit | 2 | |||
Line of Credit Facility, Average Outstanding Amount | $ 55,000,000 | |||
Debt Instrument, Interest Rate During Period | 1.50% | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of credit, amount outstanding | $ 18,000,000 | $ 18,000,000 | ||
Applicable interest rate margin | 2.50% | |||
Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | ||
Uncommitted lines of credit, utilized | 1 | |||
Amended Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 700,000,000 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current provision: | |||
Federal | $ 123,633 | $ 120,995 | $ 119,327 |
State | 20,291 | 19,759 | 19,062 |
Total current provision | 143,924 | 140,754 | 138,389 |
Deferred benefit: | |||
Federal | (24,972) | (20,800) | (25,586) |
State | (5,181) | (3,300) | (3,357) |
Total deferred benefit | (30,153) | (24,100) | (28,943) |
Provision for income taxes | $ 113,771 | $ 116,654 | $ 109,446 |
Income Taxes (Reconciliation to
Income Taxes (Reconciliation to Effective Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of company's effective income tax rate reconciliation | |||
Federal statutory income tax rates | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 3.60% | 3.60% | 3.50% |
Non-deductible expenses | 0.70% | 0.70% | 0.40% |
Share-based compensation | (0.00%) | 0.10% | 0.10% |
Business energy tax credit | 0.00% | 0.00% | (0.50%) |
Goodwill derecognition | 0.00% | 0.00% | 1.20% |
Contingent consideration obligations | 0.00% | (0.10%) | (1.50%) |
Other | (1.00%) | (0.50%) | 0.40% |
Effective income tax rates | 40.30% | 39.60% | 37.60% |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Self Insurance | $ 1,590 | $ 0 |
Deferred tax assets: | ||
Accrued liabilities | 66,750 | 55,731 |
Share-based compensation | 26,774 | 24,537 |
State taxes | 8,387 | 8,500 |
Deferred rent | 4,755 | 4,768 |
Provision for bad debts | 5,316 | 4,192 |
Net operating losses | 404 | 999 |
Other | 11,867 | 4,339 |
Total deferred tax assets | 125,843 | 103,066 |
Deferred tax liabilities: | ||
Amortization of intangible assets | (128,646) | (136,140) |
Depreciation of fixed assets | (33,125) | (32,509) |
Other | (375) | (598) |
Total deferred tax liabilities | (162,146) | (169,247) |
Deferred income taxes, net | $ (36,303) | $ (66,181) |
Income Taxes (Gross Unrecognize
Income Taxes (Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of gross unrecognized tax benefits including interest and penalties reconciliation | |||
Balance - Beginning of year | $ 20,987 | $ 19,522 | $ 19,867 |
Increases for tax positions related to the current year | 4,404 | 4,656 | 3,972 |
Reductions as a result of a lapse of the applicable statute of limitations | (644) | (3,191) | (4,317) |
Balance - End of year | $ 24,747 | $ 20,987 | $ 19,522 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits, net of the federal benefit on state issues, favorable income tax rate effect | $ 17.6 | $ 15 |
Unrecognized tax benefits, interest accrued | 3 | 2.3 |
Unrecognized tax benefits, penalties accrued | 4.3 | $ 3.7 |
Reduction in unrecognized tax benefits related to the statute of limitations | $ 2.1 |
Commitments and Contingencies81
Commitments and Contingencies (Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Portion of design and construction costs company is obligated to pay | 27.50% | ||
Expected design and construction costs for South Carolina | $ 74.7 | ||
Future South Carolina office space lease term | 20 years | ||
Leases, Operating [Abstract] | |||
Rent expense for operating leases | $ 25.6 | $ 30.1 | $ 19.4 |
Future minimum sublease rental income | $ 4 |
Commitments and Contingencies82
Commitments and Contingencies (Future Minimum Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 111,347 | |
2,017 | 58,387 | |
2,018 | 57,132 | |
2,019 | 38,649 | |
2,020 | 33,493 | |
Thereafter | 335,792 | |
Total | $ 634,800 | [1] |
[1] | Future minimum payments have not been reduced by minimum sublease rental income of $4.0 million due in the future under noncancellable subleases. |
Commitments and Contingencies83
Commitments and Contingencies (Other Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Brokers and Dealers [Abstract] | ||
Collateral security | $ 334,500 | |
Amount pledged with client-owned securities | 31,900 | |
Remaining collateral securities that can be sold, re-pledged or loaned | 302,600 | |
Security Owned and Pledged as Collateral, Fair Value [Abstract] | ||
Trading securities pledged to clearing organizations | 4,300 | $ 4,000 |
Leasehold Financing Obligation | $ 59,940 | $ 0 |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends Paid) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | |||||||||||
Dividend paid per share of common stock | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.240 | $ 0.24 | $ 0.24 | $ 0.24 | |||
Dividends | $ 23,800 | $ 24,100 | $ 24,200 | $ 24,000 | $ 24,000 | $ 24,100 | |||||
Total cash dividends paid during the quarter | $ 23,800 | $ 23,500 | $ 95,814 | $ 95,616 | $ 68,008 |
Stockholders' Equity (Share Rep
Stockholders' Equity (Share Repurchases) (Details) - $ / shares | Dec. 15, 2015 | Nov. 24, 2015 | Dec. 31, 2015 | Oct. 29, 2015 |
Equity, Class of Treasury Stock [Line Items] | ||||
Increased number of shares authorized for the share repurchase program (in shares) | 500,000,000 | |||
Number of shares remaining in share repurchase program (in shares) | 250,000,000 | |||
Treasury stock purchases, shares | 8,947,680 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 43.68 | |||
Goldman, Sachs and Co. [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Value | 5,622,628 | 250 | ||
TPG Capital [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased During Period, Value | 4,319,537 |
Share-Based Compensation Stock
Share-Based Compensation Stock Option and Warrant Assumptions (Details) - Stock options and warrants [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employees, officers, and directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected life (in years) | 5 years 3 months 20 days | 6 years 8 days | 6 years 3 months 1 day |
Expected stock price volatility | 25.78% | 44.25% | 45.03% |
Expected dividend yield | 2.30% | 1.77% | 1.72% |
Risk-free interest rate | 1.58% | 2.17% | 1.39% |
Fair value of options | $ 8.81 | $ 20.51 | $ 12.05 |
Advisors and Financial Institutions [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected life (in years) | 5 years 3 months 1 day | 6 years 9 months 27 days | 6 years 2 months 25 days |
Expected stock price volatility | 25.91% | 25.87% | 40.99% |
Expected dividend yield | 2.35% | 2.24% | 1.89% |
Risk-free interest rate | 1.84% | 1.96% | 2.04% |
Fair value of options | $ 12.12 | $ 15.12 | $ 25.92 |
Share-Based Compensation Stoc87
Share-Based Compensation Stock Option and Warrant Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of Shares Outstanding, Beginning Balance | shares | 6,287,410 |
Number of Shares, Granted | shares | 1,168,508 |
Number of Shares, Exercised | shares | (1,119,137) |
Number of Shares, Forfeited | shares | (620,293) |
Number of Shares Outstanding, Ending Balance | shares | 5,716,488 |
Number of Shares, Exercisable, Ending Balance | shares | 3,459,118 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 31.59 |
Weighted-Average Exercise Price, Granted | $ / shares | 45.44 |
Weighted-Average Exercise Price, Exercised | $ / shares | 27.67 |
Weighted-Average Exercise Price, Forfeited | $ / shares | 39.78 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | 34.31 |
Weighted-Average Exercise Price, Exercisable, Ending Balance | $ / shares | 29.78 |
Weighted-Average Exercise Price, Exercisable and expected to vest (in dollars per share) | $ / shares | $ 34.14 |
Weighted-Average Remaining Contractual Term for Options Outstanding | 6 years 1 month 18 days |
Weighted-Average Remaining Contractual Term for Options Exercisable | 4 years 10 months 25 days |
Aggregate Intrinsic Value, Outstanding, Ending Balance | $ | $ 47,704 |
Aggregate Intrinsic Value, Exercisable, Ending Balance | $ | $ 44,507 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares | 5,615,265 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 6 years 1 month 2 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ | $ 47,799 |
Share-Based Compensation Outsta
Share-Based Compensation Outstanding Stock Options and Warrants (Details) | 3 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Summary of information about outstanding stock options and warrants | |
Total Number of Shares, Outstanding | shares | 5,716,488 |
Weighted-Average Remaining Life, Outstanding | 6 years 1 month 18 days |
Weighted-Average Exercise Price, Outstanding | $ / shares | $ 34.31 |
Number of Shares, Exercisable | shares | 3,459,118 |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 29.78 |
Range $15.84 - $23.02 | |
Summary of information about outstanding stock options and warrants | |
Total Number of Shares, Outstanding | shares | 941,445 |
Weighted-Average Remaining Life, Outstanding | 3 years 5 months 20 days |
Weighted-Average Exercise Price, Outstanding | $ / shares | $ 21.36 |
Number of Shares, Exercisable | shares | 941,445 |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 21.36 |
Range $23.41 - $30.00 | |
Summary of information about outstanding stock options and warrants | |
Total Number of Shares, Outstanding | shares | 1,246,423 |
Weighted-Average Remaining Life, Outstanding | 4 years 11 months 8 days |
Weighted-Average Exercise Price, Outstanding | $ / shares | $ 28.25 |
Number of Shares, Exercisable | shares | 980,611 |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 28.16 |
Range $31.60 - $32.33 | |
Summary of information about outstanding stock options and warrants | |
Total Number of Shares, Outstanding | shares | 1,056,895 |
Weighted-Average Remaining Life, Outstanding | 6 years 8 months 5 days |
Weighted-Average Exercise Price, Outstanding | $ / shares | $ 31.88 |
Number of Shares, Exercisable | shares | 555,362 |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 31.91 |
Range $34.01 - $39.60 | |
Summary of information about outstanding stock options and warrants | |
Total Number of Shares, Outstanding | shares | 904,970 |
Weighted-Average Remaining Life, Outstanding | 5 years 2 months 12 days |
Weighted-Average Exercise Price, Outstanding | $ / shares | $ 34.60 |
Number of Shares, Exercisable | shares | 792,094 |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 34.54 |
Range $45.89 - $54.81 | |
Summary of information about outstanding stock options and warrants | |
Total Number of Shares, Outstanding | shares | 1,566,755 |
Weighted-Average Remaining Life, Outstanding | 8 years 10 months 18 days |
Weighted-Average Exercise Price, Outstanding | $ / shares | $ 48.36 |
Number of Shares, Exercisable | shares | 189,606 |
Weighted-Average Exercise Price, Exercisable | $ / shares | $ 53.92 |
Share-Based Compensation Restri
Share-Based Compensation Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 44.02 | |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 41,046 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of Shares, Beginning Balance | 33,634 | |
Number of Shares, Granted | 34,734 | |
Number of Shares, Vested | (26,892) | |
Number of Shares, Forfeited | 0 | |
Number of Shares, Ending Balance | 41,476 | 33,634 |
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ 42.78 | |
Weighted-Average Grant-Date Fair Value, Granted | 41.25 | |
Weighted-Average Grant-Date Fair Value, Vested | 38.93 | |
Weighted-Average Grant-Date Fair Value, Forfeited | 0 | |
Weighted-Average Grant-Date Fair Value, Ending Balance | $ 43.99 | $ 42.78 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 585,248 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of Shares, Beginning Balance | 546,725 | |
Number of Shares, Granted | 382,866 | |
Number of Shares, Vested | (183,929) | |
Number of Shares, Forfeited | (108,961) | |
Number of Shares, Ending Balance | 636,701 | 546,725 |
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ 43.34 | |
Weighted-Average Grant-Date Fair Value, Granted | 41.74 | |
Weighted-Average Grant-Date Fair Value, Vested | 39.63 | |
Weighted-Average Grant-Date Fair Value, Forfeited | 44.12 | |
Weighted-Average Grant-Date Fair Value, Ending Balance | 43.32 | $ 43.34 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 43.43 | |
Advisors and Financial Institutions [Member] | Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 2.5 | $ 1 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation [Abstract] | |||
Authorized shares | 20,055,945 | ||
Authorized unissued shares | 5,003,283 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 12,993,267 | ||
Stock options and warrants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Employees, officers, and directors [Member] | Stock options and warrants [Member] | |||
Share-based Compensation [Abstract] | |||
Share based compensation expense | $ 14.5 | $ 14.7 | $ 12.7 |
Share based compensation cost unrecognized | $ 10.5 | ||
Non-vested compensation cost weighted-average period | 1 year 7 months 10 days | ||
Employees, officers, and directors [Member] | Restricted Stock [Member] | |||
Share-based Compensation [Abstract] | |||
Share based compensation expense | $ 8.3 | 6.1 | 2.5 |
Share based compensation cost unrecognized | $ 11.3 | ||
Non-vested compensation cost weighted-average period | 1 year 10 months 25 days | ||
Advisors and Financial Institutions [Member] | Stock options and warrants [Member] | |||
Share-based Compensation [Abstract] | |||
Share based compensation expense | $ 3.4 | 5.3 | $ 9.2 |
Share based compensation cost unrecognized | $ 3.5 | ||
Non-vested compensation cost weighted-average period | 1 year 7 months 5 days | ||
Advisors and Financial Institutions [Member] | Restricted Stock Units [Member] | |||
Share-based Compensation [Abstract] | |||
Share based compensation expense | $ 2.5 | $ 1 | |
Share based compensation cost unrecognized | $ 5.9 | ||
Non-vested compensation cost weighted-average period | 2 years 3 days | ||
Minimum [Member] | Stock options and warrants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Minimum [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||
Maximum [Member] | Stock options and warrants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Maximum [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 26,812 | $ 41,052 | $ 50,242 | $ 50,678 | $ 48,545 | $ 33,272 | $ 43,091 | $ 53,135 | $ 168,784 | $ 178,043 | $ 181,857 |
Basic weighted average number of shares outstanding | 95,273 | 99,847 | 104,698 | ||||||||
Dilutive common share equivalents | 1,513 | 1,804 | 1,305 | ||||||||
Diluted weighted average number of shares outstanding | 96,786 | 101,651 | 106,003 | ||||||||
Basic earnings per share | $ 0.29 | $ 0.43 | $ 0.52 | $ 0.52 | $ 0.50 | $ 0.33 | $ 0.43 | $ 0.52 | $ 1.77 | $ 1.78 | $ 1.74 |
Diluted earnings per share | $ 0.28 | $ 0.43 | $ 0.52 | $ 0.52 | $ 0.49 | $ 0.33 | $ 0.42 | $ 0.51 | $ 1.74 | $ 1.75 | $ 1.72 |
Earnings per Share (Details Tex
Earnings per Share (Details Textuals) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of Earnings per Share amount | 2,223,886 | 864,488 | 3,440,171 |
Employee and Advisor Benefit 93
Employee and Advisor Benefit Plans (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee and Advisor Benefit Plans [Abstract] | |||
Percentage of eligible compensation matched by employer | 65.00% | 65.00% | 50.00% |
Percentage of employee compensation eligible for match | 8.00% | 8.00% | 10.00% |
Total contribution cost recognized | $ 9,900 | $ 8,700 | $ 6,300 |
Employee stock purchase plan purchase price discount | 15.00% | ||
Deferred Compensation Arrangements [Abstract] | |||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 98,828 | $ 73,447 | |
Deferred Compensation Arrangement with Individual, Employer Contribution | 98,500 | ||
Deferred Compensation Arrangement with Individual, Compensation Expense | 2,100 | ||
Deferred Compensation Arrangement, Rabbi Trust, Recorded Liability | $ 900 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ||||
Treasury stock purchases, shares | 8,947,680 | |||
TPG Capital [Member] | ||||
Related Party Transaction [Line Items] | ||||
Shareholder Percent Ownership in Company | 10.00% | |||
Related party revenues | $ 0.6 | $ 1 | $ 0.5 | |
Related party expenses | 6.8 | 4.2 | $ 0.6 | |
Related party accounts payable | $ 0.2 | 0.2 | 0.5 | |
Related party accounts receivable | $ 0 | $ 0 | $ 0.2 |
Net Capital and Regulatory Re95
Net Capital and Regulatory Requirements (Details) $ in Millions | Dec. 31, 2015USD ($) |
Brokers and Dealers [Abstract] | |
Net Capital | $ 104 |
Alternative Net Capital Requirement | $ 6.6 |
Selected Quarterly Financial 96
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 1,020,346 | $ 1,054,745 | $ 1,090,661 | $ 1,109,302 | $ 1,104,268 | $ 1,089,234 | $ 1,092,729 | $ 1,087,431 | $ 4,275,054 | $ 4,373,662 | $ 4,140,858 |
Net income | $ 26,812 | $ 41,052 | $ 50,242 | $ 50,678 | $ 48,545 | $ 33,272 | $ 43,091 | $ 53,135 | $ 168,784 | $ 178,043 | $ 181,857 |
Basic earnings per share | $ 0.29 | $ 0.43 | $ 0.52 | $ 0.52 | $ 0.50 | $ 0.33 | $ 0.43 | $ 0.52 | $ 1.77 | $ 1.78 | $ 1.74 |
Diluted earnings per share | 0.28 | 0.43 | 0.52 | 0.52 | 0.49 | 0.33 | 0.42 | 0.51 | $ 1.74 | $ 1.75 | $ 1.72 |
Dividends declared per share | $ 0.240 | $ 0.240 | $ 0.240 | $ 0.240 | $ 0.240 | $ 0.240 | $ 0.240 | $ 0.240 |
Subsequent Event (Details)
Subsequent Event (Details) - $ / shares | Feb. 23, 2016 | Feb. 25, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | |||
Treasury Stock Acquired, Average Cost Per Share | $ 43.68 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Dividends Payable, Date Declared | Feb. 23, 2016 | ||
Dividends Payable, Amount Per Share | $ 0.25 | ||
Dividends Payable, Date to be Paid | Mar. 14, 2016 | ||
Dividends Payable, Date of Record | Mar. 4, 2016 | ||
Stock Repurchased During Period, Shares | 634,651 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 39 |