Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 23, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 001-34963 | |
Entity Registrant Name | LPL Financial Holdings Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-3717839 | |
Entity Address, Address Line One | 75 State Street, | |
Entity Address, City or Town | Boston, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02109 | |
City Area Code | (617) | |
Local Phone Number | 423-3644 | |
Title of 12(b) Security | Common Stock - par value $0.001 per share | |
Trading Symbol | LPLA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 80,831,085 | |
Entity Central Index Key | 0001397911 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUES: | ||||
Commission | $ 474,993 | $ 486,875 | $ 1,415,487 | $ 1,449,771 |
Advisory Revenue | 514,363 | 458,087 | 1,449,610 | 1,319,391 |
Asset-based | 292,140 | 248,895 | 877,054 | 706,834 |
Transaction and fee | 121,222 | 118,941 | 362,037 | 352,045 |
Interest income, net of interest expense | 11,531 | 10,512 | 35,542 | 28,426 |
Other | 1,276 | 7,687 | 37,231 | 14,891 |
Total net revenues | 1,415,525 | 1,330,997 | 4,176,961 | 3,871,358 |
EXPENSES: | ||||
Commission and advisory | 856,635 | 821,950 | 2,494,355 | 2,384,266 |
Compensation and benefits | 138,300 | 128,007 | 407,000 | 373,884 |
Promotional | 61,715 | 52,628 | 154,487 | 163,462 |
Depreciation and amortization | 24,062 | 22,838 | 70,116 | 65,759 |
Amortization of intangible assets | 16,286 | 15,676 | 48,703 | 44,580 |
Occupancy and equipment | 34,417 | 30,308 | 100,843 | 84,848 |
Professional services | 17,666 | 23,129 | 56,115 | 61,223 |
Brokerage, clearing and exchange | 16,380 | 15,844 | 48,518 | 47,154 |
Communications and data processing | 12,535 | 12,334 | 37,394 | 34,546 |
Other | 27,599 | 29,219 | 83,977 | 88,175 |
Total operating expenses | 1,205,595 | 1,151,933 | 3,501,508 | 3,347,897 |
Non-operating interest expense and other | 31,944 | 31,705 | 98,617 | 93,267 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 177,986 | 147,359 | 576,836 | 430,194 |
PROVISION FOR INCOME TAXES | 46,272 | 40,494 | 143,632 | 111,033 |
NET INCOME | $ 131,714 | $ 106,865 | $ 433,204 | $ 319,161 |
EARNINGS PER SHARE (Note 13) | ||||
Earnings per share, basic | $ 1.61 | $ 1.22 | $ 5.20 | $ 3.59 |
Earnings per share, diluted | $ 1.57 | $ 1.19 | $ 5.07 | $ 3.49 |
Weighted-average shares outstanding, basic | 81,833 | 87,426 | 83,315 | 88,841 |
Weighted-average shares outstanding, diluted | 83,844 | 89,878 | 85,421 | 91,447 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 929,536 | $ 511,096 |
Cash segregated under federal and other regulations | 526,741 | 985,195 |
Restricted cash | 52,406 | 65,828 |
Receivables from: | ||
Clients, net of allowance of $730 at September 30, 2019 and $640 at December 31, 2018 | 418,976 | 412,944 |
Product sponsors, broker-dealers, and clearing organizations | 171,151 | 166,793 |
Advisor loans, net of allowance of $5,168 at September 30, 2019 and $5,080 at December 31, 2018 | 397,653 | 298,821 |
Others, net of allowance of $10,989 at September 30, 2019 and $8,099 at December 31, 2018 | 268,262 | 248,711 |
Securities owned: | ||
Trading — at fair value | 32,774 | 29,267 |
Held-to-maturity — at amortized cost | 13,043 | 13,001 |
Securities borrowed | 10,231 | 4,829 |
Fixed assets, net of accumulated depreciation and amortization of $364,405 at September 30, 2019 and $308,155 at December 31, 2018 | 504,410 | 461,418 |
Operating lease assets | 104,305 | 0 |
Goodwill | 1,502,679 | 1,490,247 |
Intangible assets, net of accumulated amortization of $528,022 at September 30, 2019 and $479,319 at December 31, 2018 | 456,469 | 484,171 |
Other assets | 351,912 | 305,147 |
Total assets | 5,740,548 | 5,477,468 |
LIABILITIES: | ||
Drafts payable | 141,423 | 225,034 |
Payables to clients | 1,119,575 | 950,946 |
Payables to broker-dealers and clearing organizations | 85,341 | 76,180 |
Accrued commission and advisory expenses payable | 162,104 | 164,211 |
Accounts payable and accrued liabilities | 487,399 | 478,644 |
Income taxes payable | 7,146 | 32,990 |
Unearned revenue | 85,003 | 80,524 |
Securities sold, but not yet purchased — at fair value | 206 | 169 |
Long-term borrowing, net | 2,360,218 | 2,371,808 |
Operating lease liabilities | 144,194 | 0 |
Finance lease liabilities | 107,184 | 0 |
Leasehold financing and capital lease obligations | 0 | 104,564 |
Deferred income taxes, net | 20,805 | 18,325 |
Total liabilities | 4,720,598 | 4,503,395 |
STOCKHOLDERS' EQUITY: | ||
Common stock, $.001 par value; 600,000,000 shares authorized; 126,186,912 shares issued at September 30, 2019 and 124,909,796 shares issued at December 31, 2018 | 126 | 125 |
Additional paid-in capital | 1,687,021 | 1,634,337 |
Treasury stock, at cost — 44,858,459 shares at September 30, 2019 and 39,820,646 shares at December 31, 2018 | (2,114,814) | (1,730,535) |
Retained earnings | 1,447,617 | 1,070,146 |
Total stockholders' equity | 1,019,950 | 974,073 |
Total liabilities and stockholders' equity | $ 5,740,548 | $ 5,477,468 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accumulated depreciation and amortization, Fixed assets | $ 364,405 | $ 308,155 |
Accumulated amortization, Intangible assets | $ 528,022 | $ 479,319 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 126,186,912 | 124,909,796 |
Treasury stock, shares | 44,858,459 | 39,820,646 |
Receivables from clients [Member] | ||
Allowances on receivables | $ 730 | $ 640 |
Receivables from others [Member] | ||
Allowances on receivables | 10,989 | 8,099 |
Advisor Loans [Member] | ||
Allowances on receivables | $ 5,168 | $ 5,080 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
BEGINNING BALANCE at Dec. 31, 2017 | $ 965,008 | $ 123 | $ 1,556,117 | $ (1,309,568) | $ 0 | $ 718,336 |
BEGINNING BALANCE, shares at Dec. 31, 2017 | 123,030,000 | 33,262,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income and other comprehensive income (loss), net of tax expense | 319,161 | 0 | 319,161 | |||
Issuance of common stock to settle restricted stock units, net | (4,536) | $ 0 | 0 | $ (4,536) | ||
Issuance of common stock to settle restricted stock units, net, shares | 356,000 | 70,000 | ||||
Treasury stock purchases | (300,091) | $ (300,091) | ||||
Treasury stock purchases, shares | 4,608,000 | |||||
Cash dividends on common stock | (66,847) | (66,847) | ||||
Stock option exercises and other | 43,248 | $ 1 | 41,379 | $ 1,348 | 520 | |
Stock option exercises and other (in shares) | 1,225,000 | (38,000) | ||||
Share-based compensation | 23,524 | 23,524 | ||||
ENDING BALANCE at Sep. 30, 2018 | 979,467 | $ 124 | 1,621,020 | $ (1,612,847) | 0 | 971,170 |
ENDING BALANCE, shares at Sep. 30, 2018 | 124,611,000 | 37,902,000 | ||||
BEGINNING BALANCE at Jun. 30, 2018 | 1,006,696 | $ 124 | 1,610,567 | $ (1,490,020) | 0 | 886,025 |
BEGINNING BALANCE, shares at Jun. 30, 2018 | 124,461,000 | 36,053,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income and other comprehensive income (loss), net of tax expense | 106,865 | 0 | 106,865 | |||
Issuance of common stock to settle restricted stock units, net | (741) | $ 0 | 0 | $ (741) | ||
Issuance of common stock to settle restricted stock units, net, shares | 47,000 | 12,000 | ||||
Treasury stock purchases | (122,483) | $ (122,483) | ||||
Treasury stock purchases, shares | 1,849,000 | |||||
Cash dividends on common stock | (21,941) | (21,941) | ||||
Stock option exercises and other | 3,778 | $ 0 | 3,160 | $ 397 | 221 | |
Stock option exercises and other (in shares) | 103,000 | (12,000) | ||||
Share-based compensation | 7,293 | 7,293 | ||||
ENDING BALANCE at Sep. 30, 2018 | 979,467 | $ 124 | 1,621,020 | $ (1,612,847) | 0 | 971,170 |
ENDING BALANCE, shares at Sep. 30, 2018 | 124,611,000 | 37,902,000 | ||||
BEGINNING BALANCE at Dec. 31, 2018 | 974,073 | $ 125 | 1,634,337 | $ (1,730,535) | 0 | 1,070,146 |
BEGINNING BALANCE, shares at Dec. 31, 2018 | 124,910,000 | 39,821,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income and other comprehensive income (loss), net of tax expense | 433,204 | 0 | 433,204 | |||
Cumulative effect of accounting change | 5,724 | 5,724 | ||||
Issuance of common stock to settle restricted stock units, net | (5,366) | $ 0 | 0 | $ (5,366) | ||
Issuance of common stock to settle restricted stock units, net, shares | 238,000 | 70,000 | ||||
Treasury stock purchases | $ (380,341) | $ (380,341) | ||||
Treasury stock purchases, shares | 5,007,371 | 5,007,000 | ||||
Cash dividends on common stock | $ (62,391) | (62,391) | ||||
Stock option exercises and other | $ 30,060 | $ 1 | 27,697 | $ 1,428 | 934 | |
Stock option exercises and other (in shares) | 918,939 | 1,039,000 | (40,000) | |||
Share-based compensation | $ 24,987 | 24,987 | ||||
ENDING BALANCE at Sep. 30, 2019 | 1,019,950 | $ 126 | 1,687,021 | $ (2,114,814) | 0 | 1,447,617 |
ENDING BALANCE, shares at Sep. 30, 2019 | 126,187,000 | 44,858,000 | ||||
BEGINNING BALANCE at Jun. 30, 2019 | 1,025,117 | $ 126 | 1,673,155 | $ (1,984,223) | 0 | 1,336,059 |
BEGINNING BALANCE, shares at Jun. 30, 2019 | 125,971,000 | 43,193,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income and other comprehensive income (loss), net of tax expense | 131,714 | 0 | 131,714 | |||
Issuance of common stock to settle restricted stock units, net | (759) | $ 0 | 0 | $ (759) | ||
Issuance of common stock to settle restricted stock units, net, shares | 26,000 | 10,000 | ||||
Treasury stock purchases | $ (130,274) | $ (130,274) | ||||
Treasury stock purchases, shares | 1,668,305 | 1,668,000 | ||||
Cash dividends on common stock | $ (20,485) | (20,485) | ||||
Stock option exercises and other | 6,713 | $ 0 | 5,942 | $ 442 | 329 | |
Stock option exercises and other (in shares) | 190,000 | (13,000) | ||||
Share-based compensation | 7,924 | 7,924 | ||||
ENDING BALANCE at Sep. 30, 2019 | $ 1,019,950 | $ 126 | $ 1,687,021 | $ (2,114,814) | $ 0 | $ 1,447,617 |
ENDING BALANCE, shares at Sep. 30, 2019 | 126,187,000 | 44,858,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 433,204 | $ 319,161 |
Noncash items: | ||
Depreciation and amortization | 70,116 | 65,759 |
Amortization of intangible assets | 48,703 | 44,580 |
Amortization of debt issuance costs | 3,372 | 3,090 |
Share-based compensation | 24,987 | 23,524 |
Provision for bad debts | 5,723 | 5,335 |
Deferred income tax provision | 92 | (487) |
Loan forgiveness | 67,306 | 50,695 |
Other | (6,291) | (334) |
Changes in operating assets and liabilities: | ||
Receivables from clients | (6,121) | (91,058) |
Receivables from product sponsors, broker-dealers and clearing organizations | (677) | (17,680) |
Advisor loans | (167,391) | (92,253) |
Receivables from others | (22,571) | (10,377) |
Securities owned | (2,802) | (15,446) |
Securities borrowed | (5,402) | 6,215 |
Operating leases | (942) | 0 |
Other assets | (33,222) | (18,084) |
Drafts payable | (83,611) | 9,414 |
Payables to clients | 168,629 | (158,093) |
Payables to broker-dealers and clearing organizations | 9,161 | 98 |
Accrued commission and advisory expenses payable | (3,764) | 21,081 |
Accounts payable and accrued liabilities | 32,598 | 19,388 |
Income taxes receivable/payable | (25,844) | 22,061 |
Unearned revenue | 4,479 | 10,324 |
Securities sold, but not yet purchased | 37 | (850) |
Net cash provided by operating activities | 509,769 | 196,063 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (104,250) | (85,198) |
Payments to Acquire Businesses, Net of Cash Acquired | (24,884) | 0 |
Purchase of securities classified as held-to-maturity | (3,745) | (4,905) |
Proceeds from maturity of securities classified as held-to-maturity | 3,750 | 3,750 |
Net cash used in investing activities | (129,129) | (86,353) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving credit facility | 8,000 | 0 |
Repayments of revolving credit facility | (8,000) | 0 |
Repayment of senior secured term loans | (11,250) | (11,250) |
Payments of debt issuance costs | (4,140) | 0 |
Tax payments related to settlement of restricted stock units | (5,365) | (4,536) |
Repurchase of common stock | (380,342) | (300,091) |
Dividends on common stock | (62,391) | (66,847) |
Proceeds from stock option exercises and other | 30,060 | 43,248 |
Principal payment of finance leases and obligations | (648) | (2,461) |
Net cash used in financing activities | (434,076) | (341,937) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (53,436) | (232,227) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period | 1,562,119 | 1,625,655 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period | 1,508,683 | 1,393,428 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 111,900 | 105,057 |
Income taxes paid | 169,303 | 89,254 |
NONCASH DISCLOSURES: | ||
Capital expenditures included in accounts payable and accrued liabilities | 14,669 | 26,903 |
Lease assets obtained in exchange for operating lease liabilities | $ 108,539 | $ 0 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) cash, cash equivalent and restricted cash reconciliation - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 929,536 | $ 511,096 | $ 768,546 | |
Cash segregated under federal and other regulations | 526,741 | 985,195 | 566,128 | |
Restricted cash | 52,406 | 65,828 | 58,754 | |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 1,508,683 | $ 1,562,119 | $ 1,393,428 | $ 1,625,655 |
Organization and Description of
Organization and Description of the Company | 9 Months Ended |
Sep. 30, 2019 | |
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. 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”), AW Subsidiary, Inc., LPL Employee Services, LLC, Fortigent Holdings Company, Inc. and LPL Insurance Associates, Inc. (“LPLIA”), as well as a series captive insurance subsidiary (the “Captive Insurance Subsidiary”) that underwrites insurance for various legal and regulatory risks of the Company. 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. LPL Financial, with primary offices in San Diego, California; Fort Mill, South Carolina; and Boston, Massachusetts, 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. AW Subsidiary, Inc. is a holding company for AdvisoryWorld, which offers technology products, including proposal generation, investment analytics and portfolio modeling, to both the Company’s advisors and external clients in the wealth management industry. LPL Employee Services, LLC is a holding company for Allen & Company of Florida, LLC (“Allen & Company”), a broker-dealer and registered investment adviser. Fortigent Holdings Company, Inc. and its subsidiaries provide 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 (“IRA”) custodial services for LPL Financial. LPLIA operates as an insurance brokerage general agency that offers life and disability insurance products and services for LPL Financial advisors. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“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. The unaudited condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the results for the interim periods presented. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the consolidated financial statements. The unaudited condensed consolidated financial statements do not include all information and notes necessary for a complete presentation of results of income, comprehensive income, financial position, and cash flows in conformity with GAAP. Accordingly, these financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the related notes for the year ended December 31, 2018 , contained in the Company’s Annual Report on Form 10-K as filed with the SEC. For the Company’s significant accounting policies affecting leases, see Note 9 . Leases . A summary of other significant accounting policies are included in Note 2 . Summary of Significant Accounting Policies , in the Company’s audited consolidated financial statements and the related notes for the year ended December 31, 2018 . There have been no other significant changes to these accounting policies during the first nine months of 2019 . Consolidation These unaudited condensed consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. Reportable Segment Management has determined that the Company operates in one segment, given the similarities in economic characteristics between its operations and the common nature of its products and services, production and distribution process, and regulatory environment. 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, which are carried 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 5 . Fair Value Measurements , for additional information. As of September 30, 2019 , the carrying amount and fair value of the Company’s indebtedness was approximately $2,370.0 million and $2,417.1 million , respectively. As of December 31, 2018 , the carrying amount and fair value was approximately $2,381.3 million and $2,271.9 million , respectively. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 also requires additional disclosures regarding significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The Company expects to adopt the provisions of this guidance on January 1, 2020. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018-13 removes or modifies certain current disclosures, and requires additional disclosures. The changes are meant to provide more relevant information regarding valuation techniques and inputs used to arrive at measures of fair value, uncertainty in the fair value measurements, and how changes in fair value measurements impact an entity’s performance and cash flows. Certain disclosures in ASU 2018-13 will need to be applied on a retrospective basis and others on a prospective basis. Early adoption is permitted. The Company expects to adopt the provisions of this guidance on January 1, 2020. The adoption is not expected to have a material impact on the Company’s related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the accounting for costs to implement a cloud computing arrangement that is a service with the guidance on capitalizing costs for developing or obtaining internal-use software. The Company expects to apply the prospective approach upon adoption of the provisions of this guidance on January 1, 2020. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. The new standard also requires disclosures that provide additional information on recorded lease arrangements. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements, which provides an optional transition method that allows entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the provisions of this guidance, including the optional transition method, on January 1, 2019. Operating lease assets and corresponding lease liabilities were recognized on the Company’s unaudited condensed consolidated statements of financial condition. There was no material impact to its consolidated statements of income. Refer to Note 9 . Leases , for additional disclosure and significant accounting policies affecting leases. In June 2018, the FASB issued ASU 2018-07, Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payments granted to non-employees. Consistent with the requirement for employee share-based payment awards, non-employee share-based payment awards within the scope of Topic 718 will be measured at grant-date fair value of the equity instruments. The Company adopted the provisions of this guidance on January 1, 2019 and will no longer mark-to-market advisor and financial institution equity awards in the consolidated statements of income. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenues are recognized when control of the promised services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are analyzed to determine whether the Company is the principal (i.e., reports revenues on a gross basis) or agent (i.e., reports revenues on a net basis) in the contract. Principal or agent designations depend primarily on the control an entity has over the product or service before control is transferred to a customer. The indicators of which party exercises control include primary responsibility over performance obligations, inventory risk before the good or service is transferred and discretion in establishing the price. Commission Revenue Commission revenue represents sales commissions generated by advisors for their clients’ purchases and sales of securities on exchanges and over-the-counter, as well as purchases of other investment products. The Company views the selling, distribution and marketing, or any combination thereof, of investment products to such clients as a single performance obligation to the product sponsors. The Company is the principal for commission revenue, as it is responsible for the execution of the clients’ purchases and sales, and maintains relationships with the product sponsors. Advisors assist the Company in performing its obligations. Accordingly, total commission revenues are reported on a gross basis. The following table presents total commission revenue disaggregated by investment product category (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Variable annuities $ 202,131 $ 201,075 $ 586,421 $ 597,613 Mutual funds 148,672 155,579 438,714 470,665 Alternative investments 5,467 6,331 17,526 18,602 Fixed annuities 41,541 47,117 144,106 127,288 Equities 20,149 19,082 58,213 62,071 Fixed income 30,917 32,144 91,480 93,368 Insurance 17,004 16,155 52,085 51,993 Group annuities 8,761 9,064 26,030 27,576 Other 351 328 912 595 Total commission revenue $ 474,993 $ 486,875 $ 1,415,487 $ 1,449,771 The Company generates two types of commission revenue: sales-based commission revenue that is recognized at the point of sale on the trade date and trailing commission revenue that is recognized over time as earned. Sales-based commission revenue varies by investment product and is based on a percentage of an investment product’s current market value at the time of purchase. Trailing commission revenue is generally based on a percentage of the current market value of clients’ investment holdings in trail-eligible assets, and is recognized over the period during which services, such as ongoing support, are performed. As trailing commission revenue is based on the market value of clients’ investment holdings, the consideration is variable and an estimate of the variable consideration is constrained due to dependence on unpredictable market impacts. The constraint is removed once the investment holdings value can be determined. The following table presents sales-based and trailing commission revenues disaggregated by product category (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Sales-based Variable annuities $ 59,948 $ 57,491 $ 168,234 $ 168,487 Mutual funds 36,358 33,319 109,084 107,910 Alternative investments 2,009 1,822 5,976 5,457 Fixed annuities 34,309 40,040 122,516 107,709 Equities 20,149 19,082 58,213 62,071 Fixed income 24,950 25,757 73,749 74,587 Insurance 15,289 14,433 46,762 46,877 Group annuities 979 1,273 3,426 3,615 Other 351 328 912 595 Total sales-based revenue $ 194,342 $ 193,545 $ 588,872 $ 577,308 Trailing Variable annuities $ 142,183 $ 143,584 $ 418,187 $ 429,126 Mutual funds 112,314 122,260 329,630 362,755 Alternative investments 3,458 4,509 11,550 13,145 Fixed annuities 7,232 7,077 21,590 19,579 Fixed income 5,967 6,387 17,731 18,781 Insurance 1,715 1,722 5,323 5,116 Group annuities 7,782 7,791 22,604 23,961 Total trailing revenue $ 280,651 $ 293,330 $ 826,615 $ 872,463 Total commission revenue $ 474,993 $ 486,875 $ 1,415,487 $ 1,449,771 Advisory Revenue Advisory revenue represents fees charged to advisors’ clients’ accounts on the Company’s corporate advisory platform. The Company provides ongoing investment advice and acts as a custodian, providing brokerage and execution services on transactions, and performs administrative services for these accounts. This series of performance obligations transfers control of the services to the client over time as the services are performed. This revenue is recognized ratably over time to match the continued delivery of the performance obligations to the client over the life of the contract. The advisory revenue generated from the Company’s corporate advisory platform is based on a percentage of the market value of the eligible assets in the clients’ advisory accounts. As such, the consideration for this revenue is variable and an estimate of the variable consideration is constrained due to dependence on unpredictable market impacts on client portfolio values. The constraint is removed once the portfolio value can be determined. The Company provides advisory services to clients on its corporate advisory platform through the advisor. The Company is the principal in these arrangements and recognizes advisory revenue on a gross basis, as the Company is responsible for satisfying the performance obligations, carries the inventory risk and has control over determining the fees. Advisors assist the Company in performing its obligations. Asset-Based Revenue Asset-based revenue is comprised of fees from the Company’s client cash programs, which consist of fees from its money market programs and insured cash sweep vehicles, sponsorship programs, and recordkeeping. Client Cash Revenue Client cash revenues are generated based on advisors’ clients’ cash balances in insured sweep accounts at various banks and money market programs. The Company receives fees based on account type and invested balances for administration and recordkeeping. These fees are paid and recognized over time. Sponsorship Programs The Company receives fees from product sponsors, primarily mutual fund and annuity companies, for marketing support and sales force education and training efforts. Compensation for these performance obligations is generally calculated as a fixed fee, as a percentage of the average annual amount of product sponsor assets held in advisors’ clients’ accounts, as a percentage of new sales, or a combination. As the value of product sponsor assets held in advisor’s clients’ accounts is susceptible to unpredictable market changes, this revenue includes variable consideration and is constrained until the date that the fees are determinable. The Company is the principal in these arrangements as it is responsible for and determines the level of servicing and marketing support it provides to the product sponsors. Recordkeeping The Company generates this revenue by providing recordkeeping, account maintenance, reporting and other related services to product sponsors. This includes revenue from omnibus processing in which the Company establishes and maintains sub-account records for its clients to reflect the purchase, exchange and redemption of mutual fund shares, and consolidates clients’ trades within a mutual fund. Omnibus processing fees are paid to the Company by the mutual fund or its affiliates and are based on the value of mutual fund assets in accounts for which the Company provides omnibus processing services and the number of accounts in which the related mutual fund positions are held. Recordkeeping revenue also includes revenues from networking recordkeeping services. Networking revenues on brokerage assets are correlated to the number of positions or value of assets that the Company administers and are paid by mutual fund and annuity product manufacturers. These recordkeeping revenues are recognized over time as the Company fulfills its performance obligations. As recordkeeping fees are susceptible to unpredictable market changes that influence market value and fund positions, these revenues include variable consideration and are constrained until the date that the fees are determinable, such as the last date of the contract period in which the market value of the respective product sponsor assets for the period is available. Depending on the contract, the Company is both principal and agent for recordkeeping revenue. In instances in which the Company is providing services to financial product manufacturers on behalf of third parties and does not have ultimate control of the service before transfer to the customer, the Company is considered to be an agent and reports revenues on a net basis. In other cases, where the Company uses a sub-contractor to provide services and is responsible for unperformed services, the Company is considered principal and reports revenues on a gross basis. The following table sets forth asset-based revenue at a disaggregated level (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Asset-based revenue Client cash $ 162,517 $ 127,174 $ 497,471 $ 352,644 Sponsorship programs 62,861 58,065 187,417 168,074 Recordkeeping 66,762 63,656 192,166 186,116 Total asset-based revenue $ 292,140 $ 248,895 $ 877,054 $ 706,834 Transaction and Fee Revenue Transaction revenue primarily includes fees the Company charges to advisors and their clients for executing certain transactions in brokerage and fee-based advisory accounts. Transaction revenue is recognized at the point-in-time that a transaction is executed, which is generally the trade-date. Fee revenue may be generated from advisors or their clients. Fee revenues primarily include IRA custodian fees, contract and licensing fees, and other client account fees. In addition, the Company hosts certain advisor conferences that serve as training, education, sales, and marketing events, for which a fee is charged for attendance. Fee revenue is recognized when the Company satisfies its performance obligations. Recognition varies from point-in-time to over time depending on whether the service is provided once at an identifiable point-in-time or if the service is provided continually over the contract life. The following table sets forth transaction and fee revenue disaggregated by recognition pattern (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Transaction and Fee Revenue Point-in-time (1) $ 57,038 $ 57,675 $ 163,934 $ 165,768 Over time (2) 64,184 61,266 198,103 186,277 Total transaction and fee revenue $ 121,222 $ 118,941 $ 362,037 352,045 _______________________________ (1) Transaction and fee revenue recognized point-in-time includes revenue such as transaction fees, IRA termination fees, and conference service fees. (2) Transaction and fee revenue recognized over time includes revenue such as error and omission insurance fees, IRA custodian fees, and licensing fees. The Company is the principal and recognizes transaction and fee revenue on a gross basis as it is primarily responsible for delivering the respective services being provided, which is demonstrated by the Company’s ability to control the fee amounts charged to customers. Interest Income, Net of Interest Expense The Company earns interest income from client margin accounts and cash equivalents, less interest expense on related transactions. This revenue is not generated from contracts with customers. Interest expense incurred in connection with cash equivalents and client margin balances is completely offset by revenue on related transactions; therefore, the Company considers such interest to be an operating expense. Interest expense from operations for each of the three and nine months ended September 30, 2019 and 2018 was not material. Other Revenue Other revenue primarily includes mark-to-market gains and losses on assets held by the Company for its advisor non-qualified deferred compensation plan and model research portfolios, marketing allowances received from certain financial product manufacturers, primarily those who offer alternative investments, such as non-traded real estate investment trusts and business development companies, and other miscellaneous revenues. These revenues are not generated from contracts with customers. Arrangement with Multiple Performance Obligations The Company’s contracts with customers may include multiple performance obligations. Contracts with customers that include multiple performance obligations have performance obligations that follow the same revenue recognition pattern and are recorded in the same financial statement line item. Unearned Revenue The Company records unearned revenue when cash payments are received or due in advance of the Company’s performance obligations, including amounts which are refundable. The increase in the unearned revenue balance for the nine months ended September 30, 2019 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations, offset by $78.9 million of revenues recognized that were included in the unearned revenue balance as of December 31, 2018 . The Company receives cash revenues for advisory services not yet performed and conferences not yet held. For advisory services, revenue is recognized as the Company provides the administration, brokerage and execution services over time to satisfy the performance obligations. For conference revenue, the Company recognizes revenue as the conferences are held. |
Acquisitions Acquisitions
Acquisitions Acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On August 1, 2019 , the Company acquired all of the outstanding equity interests of Allen & Company. Under the transaction structure, Allen & Company advisors and staff joined as employees of the Company and Allen & Company will maintain its operations and brand. The Company paid approximately $25 million at closing and also agreed to a potential contingent payment of up to $10 million (“Contingent Payment”), payable approximately six months after the closing date based on the percentage of assets retained by Allen & Company advisors. The fair value of the Contingent Payment is included in accounts payable and accrued liabilities on the unaudited condensed consolidated statements of financial condition. See Note 5 . Fair Value Measurements |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
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 nine months ended September 30, 2019 . 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 September 30, 2019 , 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 September 30, 2019 , 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; and (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. Accounts Payable and Accrued Liabilities — The Company’s accounts payable and accrued liabilities include contingent consideration liabilities that are measured using Level 3 inputs. Level 3 Recurring Fair Value Measurements The Company determines the fair value for its contingent consideration obligations using a scenario based approach whereby the Company assesses the expected retention percentage of the acquired assets under management. The contingent payment is estimated by applying a discount rate to the expected payment 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. The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis at September 30, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 37,645 $ — $ — $ 37,645 Securities owned — trading: Money market funds 103 — — 103 Mutual funds 12,666 — — 12,666 Equity securities 530 — — 530 Debt securities — 126 — 126 U.S. treasury obligations 19,349 — — 19,349 Total securities owned — trading 32,648 126 — 32,774 Other assets 238,939 10,749 — 249,688 Total assets at fair value $ 309,232 $ 10,875 $ — $ 320,107 Liabilities Securities sold, but not yet purchased: Equity securities $ 89 $ — $ — $ 89 Debt securities — 117 — 117 Total securities sold, but not yet purchased 89 117 — 206 Accounts payable and accrued liabilities — — 9,031 9,031 Total liabilities at fair value $ 89 $ 117 $ 9,031 $ 9,237 The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis at December 31, 2018 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 26,657 $ — $ — $ 26,657 Securities owned — trading: Money market funds 194 — — 194 Mutual funds 7,434 — — 7,434 Equity securities 1,931 — — 1,931 Debt securities — 1 — 1 U.S. treasury obligations 19,707 — — 19,707 Total securities owned — trading 29,266 1 — 29,267 Other assets 181,974 9,420 — 191,394 Total assets at fair value $ 237,897 $ 9,421 $ — $ 247,318 Liabilities Securities sold, but not yet purchased: Equity securities $ 163 $ — $ — $ 163 Debt securities — 6 — 6 Total securities sold, but not yet purchased 163 6 — 169 Total liabilities at fair value $ 163 $ 6 $ — $ 169 |
Held-to-Maturity Securities
Held-to-Maturity Securities | 9 Months Ended |
Sep. 30, 2019 | |
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 gain (loss), and fair value of securities held-to-maturity were as follows (in thousands): September 30, December 31, Amortized cost $ 13,043 $ 13,001 Gross unrealized gain (loss) 82 (56 ) Fair value $ 13,125 $ 12,945 At September 30, 2019 , 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 $ 5,079 $ 7,964 $ — $ 13,043 U.S. government notes — at fair value $ 5,086 $ 8,039 $ — $ 13,125 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
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, 2017 $ 1,427,769 Goodwill acquired 62,478 Balance at December 31, 2018 $ 1,490,247 Goodwill acquired 12,432 Balance at September 30, 2019 $ 1,502,679 The components of intangible assets were as follows at September 30, 2019 (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 6.3 $ 651,642 $ (353,142 ) $ 298,500 Product sponsor relationships 6.4 234,086 (158,458 ) 75,628 Client relationships 9.0 42,234 (14,369 ) 27,865 Technology 9.3 15,510 (1,163 ) 14,347 Trade names 2.6 1,200 (890 ) 310 Total definite-lived intangible assets $ 944,672 $ (528,022 ) $ 416,650 Indefinite-lived intangible assets: Trademark and trade name 39,819 Total intangible assets $ 456,469 The components of intangible assets were as follows at December 31, 2018 (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 7.1 $ 651,642 $ (316,153 ) $ 335,489 Product sponsor relationships 7.1 234,086 (149,525 ) 84,561 Client relationships 7.0 21,233 (12,841 ) 8,392 Technology 10.0 15,510 — 15,510 Trade names 3.3 1,200 (800 ) 400 Total definite-lived intangible assets $ 923,671 $ (479,319 ) $ 444,352 Indefinite-lived intangible assets: Trademark and trade name 39,819 Total intangible assets $ 484,171 Total amortization of intangible assets was $16.3 million and $15.7 million for the three months ended September 30, 2019 and 2018 , respectively, and $48.7 million and $44.6 million for the nine months ended September 30, 2019 and 2018 , respectively. Future amortization expense is estimated as follows (in thousands): 2019 - remainder $ 16,631 2020 66,139 2021 65,982 2022 65,182 2023 61,086 Thereafter 141,630 Total $ 416,650 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding borrowings were as follows (dollars in thousands): September 30, 2019 December 31, 2018 Long-Term Borrowings Balance Applicable Margin Interest Rate Balance Applicable Margin Interest rate Maturity Revolving Credit Facility $ — LIBOR+125bps — % $ — LIBOR+125bps — % 9/21/2022 Senior Secured Term Loan B (1) 1,470,000 LIBOR+225 bps 4.30 % 1,481,250 LIBOR+225 bps 4.73 % 9/21/2024 Senior Unsecured Notes (1)(2) 900,000 Fixed Rate 5.75 % 900,000 Fixed Rate 5.75 % 9/15/2025 Total long-term borrowings 2,370,000 2,381,250 Plus: Unamortized Premium 8,958 10,083 Less: Unamortized Debt Issuance Cost (18,740 ) (19,525 ) Net Carrying Value $ 2,360,218 $ 2,371,808 _______________________________ (1) No leverage or interest coverage maintenance covenants. (2) The Senior Unsecured Notes were issued in two separate transactions: $500.0 million in original notes were issued in March 2017 at par; $400.0 million in additional notes were issued in September 2017 and priced at 103.0% of the aggregate principal amount. The Company is required to make quarterly payments on the Term Loan B facility equal to 0.25% of the original principal amount of the loans under the Term Loan B facility. Borrowings under the Term Loan B facility bear interest at a rate per annum of 225 basis points over the Eurodollar Rate or 125 basis points over the base rate (as defined in the Credit Agreement), and have no leverage or interest coverage maintenance covenants. Borrowings under the revolving credit facility bear interest at a rate per annum ranging from 125 to 175 basis points over the Eurodollar Rate or 25 to 75 basis points over the base rate, depending on the Consolidated Secured Debt to Consolidated EBITDA Ratio (as defined in the Credit Agreement). The Eurodollar Rate option is the one-, two-, three-, or six-month LIBOR rate, as selected by LPLH, or, with the approval of the applicable lenders, twelve-month LIBOR rate or the LIBOR rate for another period acceptable to the Administrative Agent (including a shorter period). As of September 30, 2019 , the Company had $3.7 million of irrevocable letters of credit, with an applicable interest rate margin of 1.25% , which were supported by the credit facility. The Credit Agreement subjects the Company to certain financial and non-financial covenants. As of September 30, 2019 , the Company was in compliance with such covenants. Broker-Dealer Credit Facility On July 31, 2019, LPL Financial, the Company’s registered broker-dealer, entered into a five year, committed, unsecured revolving credit facility, that matures on July 31, 2024 and allows for a maximum borrowing of up to $300.0 million (the “LPL Financial Credit Facility”). LPL Financial incurred approximately $1.5 million in debt issuance costs. Borrowings under the LPL Financial Credit Facility bear interest at a rate per annum ranging from 112.5 to 137.5 basis points over the Federal Funds Rate or Eurodollar Rate, depending on the Parent Leverage Ratio (each as defined in the credit agreement related to the LPL Financial Credit Facility). The credit agreement to the LPL Financial Credit Facility subjects LPL Financial to certain financial and non-financial covenants. LPL Financial was in compliance with such covenants and there were no borrowings outstanding on this credit facility, as of September 30, 2019 . Bank Loans Payable The Company maintained three uncommitted lines of credit as of September 30, 2019 . 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 $150.0 million limit and allows for both collateralized and uncollateralized borrowings. The Company drew $2.0 million on one of the lines of credit at an interest rate of 3.55% during the three months ended September 30, 2019 and drew a total of $227.0 million at a weighted average interest rate of 3.98% on those three lines of credit during the nine months ended September 30, 2019 . There were no balances outstanding at September 30, 2019 or December 31, 2018 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Adoption of ASC Topic 842, Leases On January 1, 2019, the Company adopted ASC Topic 842, Leases (“Topic 842”). Results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting guidance, ASC Topic 840. The Company previously recorded a build-to-suit related asset and liability for a lease in Fort Mill, South Carolina. The asset and liability were derecognized and reevaluated as a result of the adoption. The Fort Mill lease was determined to be a finance lease under Topic 842 and the changes in values from the derecognition and reevaluation were recorded to retained earnings under cumulative effect of accounting change in the unaudited condensed consolidated statements of stockholders’ equity. Lease Recognition The Company determines if an arrangement is a lease or contains a lease at inception. The Company has operating and finance leases for corporate offices and equipment with remaining lease terms of 3 years to 17 years, some of which include options to extend the lease for up to 20 years. For leases with renewal options, the lease term is extended to reflect renewal options the Company is reasonably certain to exercise. Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. As most of the Company’s leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. Lease expense for net present value of payments is recognized on a straight-line basis over the lease term. Finance lease assets are included in fixed assets in the unaudited condensed consolidated statements of financial condition and at September 30, 2019 were $107.2 million . The components of lease expense were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Operating lease cost $ 4,366 $ 13,219 Finance lease cost: Amortization of right-of-use assets $ 1,164 $ 3,493 Interest on lease liabilities 2,095 6,279 Total finance lease cost $ 3,259 $ 9,772 Supplemental cash flow information related to leases was as follows (in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 14,270 Operating cash flows from finance leases $ 6,279 Financing cash flows from finance leases $ 648 Supplemental weighted average information related to leases was as follows: September 30, 2019 Weighted-average remaining lease term (years): Finance leases 26.7 Operating leases 9.4 Weighted-average discount rate: Finance leases 7.80 % Operating leases 7.27 % Maturities of lease liabilities as of September 30, 2019 were as follows (in thousands): Operating Leases Finance Leases 2019 - remainder $ 4,923 $ 2,018 2020 19,964 9,084 2021 20,552 9,227 2022 21,084 8,429 2023 20,706 8,576 Thereafter 114,989 242,366 Total lease payments 202,218 279,700 Less imputed interest 58,024 172,516 Total $ 144,194 $ 107,184 Maturities of lease liabilities as of December 31, 2018 under ASC Topic 840 were as follows (in thousands): 2019 $ 30,010 2020 30,731 2021 30,590 2022 31,238 2023 30,265 Thereafter 239,118 Total (1) $ 391,952 _______________________________ (1) Amounts above exclude $75.7 million related to non-lease commitments from the schedule included in Note 13 . Commitments and Contingencies , in the Company’s audited consolidated financial statements and the related notes in the 2018 Annual Report on Form 10-K. |
Leases | Leases Adoption of ASC Topic 842, Leases On January 1, 2019, the Company adopted ASC Topic 842, Leases (“Topic 842”). Results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting guidance, ASC Topic 840. The Company previously recorded a build-to-suit related asset and liability for a lease in Fort Mill, South Carolina. The asset and liability were derecognized and reevaluated as a result of the adoption. The Fort Mill lease was determined to be a finance lease under Topic 842 and the changes in values from the derecognition and reevaluation were recorded to retained earnings under cumulative effect of accounting change in the unaudited condensed consolidated statements of stockholders’ equity. Lease Recognition The Company determines if an arrangement is a lease or contains a lease at inception. The Company has operating and finance leases for corporate offices and equipment with remaining lease terms of 3 years to 17 years, some of which include options to extend the lease for up to 20 years. For leases with renewal options, the lease term is extended to reflect renewal options the Company is reasonably certain to exercise. Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. As most of the Company’s leases do not provide an implicit rate, the Company estimates its incremental borrowing rate based on information available at the commencement date in determining the present value of future payments. Lease expense for net present value of payments is recognized on a straight-line basis over the lease term. Finance lease assets are included in fixed assets in the unaudited condensed consolidated statements of financial condition and at September 30, 2019 were $107.2 million . The components of lease expense were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Operating lease cost $ 4,366 $ 13,219 Finance lease cost: Amortization of right-of-use assets $ 1,164 $ 3,493 Interest on lease liabilities 2,095 6,279 Total finance lease cost $ 3,259 $ 9,772 Supplemental cash flow information related to leases was as follows (in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 14,270 Operating cash flows from finance leases $ 6,279 Financing cash flows from finance leases $ 648 Supplemental weighted average information related to leases was as follows: September 30, 2019 Weighted-average remaining lease term (years): Finance leases 26.7 Operating leases 9.4 Weighted-average discount rate: Finance leases 7.80 % Operating leases 7.27 % Maturities of lease liabilities as of September 30, 2019 were as follows (in thousands): Operating Leases Finance Leases 2019 - remainder $ 4,923 $ 2,018 2020 19,964 9,084 2021 20,552 9,227 2022 21,084 8,429 2023 20,706 8,576 Thereafter 114,989 242,366 Total lease payments 202,218 279,700 Less imputed interest 58,024 172,516 Total $ 144,194 $ 107,184 Maturities of lease liabilities as of December 31, 2018 under ASC Topic 840 were as follows (in thousands): 2019 $ 30,010 2020 30,731 2021 30,590 2022 31,238 2023 30,265 Thereafter 239,118 Total (1) $ 391,952 _______________________________ (1) Amounts above exclude $75.7 million related to non-lease commitments from the schedule included in Note 13 . Commitments and Contingencies , in the Company’s audited consolidated financial statements and the related notes in the 2018 Annual Report on Form 10-K. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. Guarantees The Company occasionally enters into 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. 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 could 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 September 30, 2019 . 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 has in the past and may in the future include fines, customer restitution and other remediation. Assessing the probability of a loss occurring and the timing and 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. On May 1, 2018 the Company agreed to a settlement structure with the North American Securities Administrators Association (NASAA) related to the Company’s historical compliance with certain state “blue sky” laws, which resulted in aggregate fines of approximately $26.4 million . As part of the settlement structure, the Company engaged independent third party consultants to conduct a historical review of securities transactions and an operational review of the Company’s systems for complying with blue sky securities registration requirements. The Company also agreed to offer customers remediation in the form of reimbursement for any actual losses, plus interest. The Company believes the Captive Insurance Subsidiary has adequate loss reserves to cover the aggregate fines and the costs of remediation. As of the date of this Quarterly Report on Form 10-Q the historical review of transactions has been completed; however, the costs of potential customer remediation are still being calculated and cannot be estimated at this time. The actual costs of reimbursing customers for losses could exceed the Company’s reserves. On April 22, 2019 , a putative class action lawsuit filed against the Company and certain of its executive officers in federal district court was dismissed with prejudice. Third-Party Insurance The Company maintains third-party insurance coverage for certain potential legal proceedings, including those involving certain client claims. With respect to such 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 the Captive Insurance Subsidiary. 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, so there are particular complexities and uncertainties involved when assessing the adequacy of loss reserves for potential liabilities that are self-insured. As of September 30, 2019 , these self-insurance liabilities are included in accounts payable and accrued liabilities in the unaudited condensed consolidated statements of financial condition. Self-insurance related charges are included in other expenses in the unaudited condensed consolidated statements of income for the three and nine months ended September 30, 2019 . Other Commitments As of September 30, 2019 , the Company had approximately $331.8 million of client margin loans that were collateralized with securities having a fair value of approximately $464.5 million that it can repledge, loan, or sell. Of these securities, approximately $65.5 million were client-owned securities pledged to the Options Clearing Corporation as collateral to secure client obligations related to options positions. As of September 30, 2019 , there were no restrictions that materially limited the Company’s ability to repledge, loan, or sell the remaining $399.0 million of client collateral. Trading securities on the unaudited condensed consolidated statements of financial condition includes $4.5 million and $4.7 million pledged to the Options Clearing Corporation at September 30, 2019 and December 31, 2018 , respectively, and $14.9 million pledged to the National Securities Clearing Corporation at both September 30, 2019 and December 31, 2018 . |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders’ Equity Dividends The payment, timing, and amount of any dividends are subject to approval by the Company’s board of directors (the “Board of Directors”) as well as certain limits under the Credit Agreement and Indenture. 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): 2019 2018 Dividend per Share Total Cash Dividend Dividend per Share Total Cash Dividend First quarter $ 0.25 $ 21.1 $ 0.25 $ 22.6 Second quarter $ 0.25 $ 20.8 $ 0.25 $ 22.3 Third quarter $ 0.25 $ 20.5 $ 0.25 $ 21.9 Share Repurchases The Company engages in share repurchase programs, which are approved by the Board of Directors, 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 unaudited condensed consolidated statements of financial condition. As of September 30, 2019 , the Company was authorized to purchase up to an additional $619.8 million of shares pursuant to share repurchase programs approved by the Board of Directors. The Company had the following activity under its approved share repurchase programs (dollars in millions, except per share data): 2019 Total Number of Shares Purchased Weighted-Average Price Paid Per Share Total Cost (1) First quarter 1,747,116 $ 71.57 $ 125.0 Second quarter 1,591,950 $ 78.54 $ 125.0 Third quarter 1,668,305 $ 78.09 $ 130.3 5,007,371 $ 75.96 $ 380.3 _______________________________ (1) Included in the total cost of shares purchased is a commission fee of $0.02 per share. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders' Equity | Share-Based Compensation In November 2010, the Company adopted the 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, deferred stock units, performance stock units, and other equity-based compensation. Since its adoption, awards have been and are only made out of the 2010 Plan. As of September 30, 2019 , the 2010 Plan had 20,055,945 shares authorized for grant and 5,226,458 shares remaining available for future issuance. 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 its employee and officer stock options that have been granted during the nine months ended September 30, 2019 : Expected life (in years) 5.43 Expected stock price volatility 35.80 % Expected dividend yield 1.49 % Risk-free interest rate 2.47 % Fair value of options $ 24.41 The following table summarizes the Company’s stock option and warrant activity as of and for the nine months ended September 30, 2019 : Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In thousands) Outstanding — December 31, 2018 3,588,067 $ 35.38 Granted 422,397 $ 77.53 Exercised (918,939 ) $ 30.10 Forfeited and Expired (87,123 ) $ 47.22 Outstanding — September 30, 2019 3,004,402 $ 42.58 5.89 $ 118,145 Exercisable — September 30, 2019 2,167,111 $ 33.67 4.81 $ 104,510 Exercisable and expected to vest — September 30, 2019 2,935,433 $ 41.92 5.81 $ 117,359 The following table summarizes information about outstanding stock options and warrants as of September 30, 2019 : Outstanding Exercisable Range of Exercise Prices Number of Shares Weighted- Average Exercise Price Weighted-Average Number of Shares Weighted- Average Exercise Price $19.85 - $25.00 674,097 $ 20.30 5.75 674,097 $ 20.30 $25.01 - $35.00 733,261 $ 31.29 2.35 733,261 $ 31.29 $35.01 - $45.00 476,678 $ 39.60 7.32 293,475 $ 39.68 $45.01 - $65.00 349,558 $ 48.74 5.03 349,558 $ 48.74 $65.01 - $75.00 366,440 $ 65.56 8.34 115,355 $ 65.56 $75.01 - $80.00 404,368 $ 77.53 9.39 1,365 $ 77.53 3,004,402 $ 42.58 5.89 2,167,111 $ 33.67 The Company recognized share-based compensation related to the vesting of stock options awarded to employees and officers of $2.2 million and $2.5 million during the three months ended September 30, 2019 and 2018 , respectively, and $7.4 million and $6.5 million for the nine months ended September 30, 2019 and 2018 , respectively. As of September 30, 2019 , total unrecognized compensation cost related to non-vested stock options granted to employees and officers was $10.4 million , which is expected to be recognized over a weighted-average period of 1.84 years. Restricted Stock and Stock Units The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units, and performance stock units, for the nine months ended September 30, 2019 : Restricted Stock Awards Stock Units Number of Shares Weighted-Average Grant-Date Fair Value Number of Shares Weighted-Average Grant-Date Fair Value Outstanding — December 31, 2018 7,057 $ 70.26 910,720 $ 52.38 Granted 9,366 $ 81.99 287,288 $ 81.95 Vested (8,127 ) $ 71.81 (348,811 ) $ 44.41 Forfeited — $ — (39,644 ) $ 60.48 Nonvested — September 30, 2019 8,296 $ 81.99 809,553 (1) $ 65.91 Expected to vest — September 30, 2019 8,296 $ 81.99 707,986 $ 66.96 _______________________________ (1) Includes 50,637 vested and undistributed deferred stock units. The Company grants restricted stock awards and deferred stock units to its directors, restricted stock units to its employees and officers, and performance stock units to its officers. Restricted stock awards and stock units must vest or are subject to forfeiture; however, restricted stock awards are included in shares outstanding upon grant and have the same dividend and voting rights as the Company’s common stock. The Company recognized $4.7 million and $3.6 million of share-based compensation related to the vesting of these restricted stock awards and stock units during the three months ended September 30, 2019 and 2018 , respectively, and $13.9 million and $10.6 million during the nine months ended September 30, 2019 and 2018 , respectively. As of September 30, 2019 , total unrecognized compensation cost for restricted stock awards and stock units was $26.7 million , which is expected to be recognized over a weighted-average remaining period of 2.01 years. The Company also grants restricted stock units to its advisors and to financial institutions. The Company recognized share-based compensation of $0.5 million and $1.0 million related to the vesting of these awards during the three months ended September 30, 2019 and 2018 , respectively, and $2.3 million and $5.5 million during the nine months ended September 30, 2019 and 2018 , respectively. As of September 30, 2019 , total unrecognized compensation cost for restricted stock units granted to advisors and financial institutions was $5.2 million , which is expected to be recognized over a weighted-average remaining period of 2.23 years. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2019 | |
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 periods noted was as follows (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 131,714 $ 106,865 $ 433,204 $ 319,161 Basic weighted-average number of shares outstanding 81,833 87,426 83,315 88,841 Dilutive common share equivalents 2,011 2,452 2,106 2,606 Diluted weighted-average number of shares outstanding 83,844 89,878 85,421 91,447 Basic earnings per share $ 1.61 $ 1.22 $ 5.20 $ 3.59 Diluted earnings per share $ 1.57 $ 1.19 $ 5.07 $ 3.49 The computation of diluted earnings per share excludes stock options, warrants, and stock units that are anti-dilutive. For the three months ended September 30, 2019 and 2018 , stock options, warrants, and stock units representing common share equivalents of 422,680 shares and 439,156 shares, respectively, were anti-dilutive. For the nine months ended September 30, 2019 and 2018 , stock options, warrants, and restricted stock units representing common share equivalents of 596,354 shares and 377,583 shares, respectively, were anti-dilutive. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective income tax rate differs from the federal corporate tax rate of 21.0% , primarily as a result of state taxes, settlement contingencies, tax credits and other permanent differences in tax deductibility of certain expenses. These items resulted in effective tax rates of 26.0% and 27.5% for the three months ended September 30, 2019 and 2018 , respectively, and 24.9% and 25.8% for the nine months ended September 30, 2019 and 2018 , respectively. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has related party transactions with certain beneficial owners of more than ten percent of the Company’s outstanding common stock. Additionally, through its subsidiary LPL Financial, the Company provides services and charitable contributions to the LPL Financial Foundation, an organization that provides volunteer and financial support within the Company’s local communities. The Company recognized revenue for services provided to these related parties of $1.2 million and $1.0 million during the three months ended September 30, 2019 and 2018 , respectively, and $3.0 million and $2.6 million during the nine months ended September 30, 2019 and 2018 , respectively. The Company incurred expenses for the services provided by these related parties of $0.5 million and $0.6 million during the three months ended September 30, 2019 and 2018 , respectively, and $1.3 million and $1.8 million during the nine months ended September 30, 2019 and 2018 , respectively. As of September 30, 2019 and 2018 , receivables and payables to related parties were not material. |
Net Capital and Regulatory Requ
Net Capital and Regulatory Requirements | 9 Months Ended |
Sep. 30, 2019 | |
Brokers and Dealers [Abstract] | |
Net Capital and Regulatory Requirements | Net Capital and Regulatory Requirements The Company’s registered broker-dealer, LPL Financial, is subject to the SEC’s Net Capital Rule (Rule 15c3-1 under the Exchange Act), which requires the maintenance of minimum net capital. The net capital rules also provide that the broker-dealer’s capital may not be withdrawn if resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and FINRA to the extent they exceed defined levels, even if such withdrawals would not cause net capital to be less than minimum requirements. Net capital and the related net capital requirement may fluctuate on a daily basis. LPL Financial is a clearing broker-dealer and had net capital of $178.3 million with a minimum net capital requirement of $8.9 million as of September 30, 2019 . The Company’s subsidiary, PTC, also 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 September 30, 2019 and December 31, 2018 , 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 | 9 Months Ended |
Sep. 30, 2019 | |
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 two 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 unaudited condensed 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. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Event [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On October 21, 2019 , the Board of Directors declared a cash dividend of $0.25 per share on the Company’s outstanding common stock to be paid on November 21, 2019 to all stockholders of record on November 7, 2019 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“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. The unaudited condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the results for the interim periods presented. Actual results could differ from those estimates under different assumptions or conditions and the differences may be material to the consolidated financial statements. The unaudited condensed consolidated financial statements do not include all information and notes necessary for a complete presentation of results of income, comprehensive income, financial position, and cash flows in conformity with GAAP. Accordingly, these financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the related notes for the year ended December 31, 2018 , contained in the Company’s Annual Report on Form 10-K as filed with the SEC. For the Company’s significant accounting policies affecting leases, see Note 9 . Leases . A summary of other significant accounting policies are included in Note 2 . Summary of Significant Accounting Policies , in the Company’s audited consolidated financial statements and the related notes for the year ended December 31, 2018 . There have been no other significant changes to these accounting policies during the first nine months of 2019 . |
Consolidation | Consolidation These unaudited condensed consolidated financial statements include the accounts of LPLFH and its subsidiaries. Intercompany transactions and balances have been eliminated. |
Reportable Segment | Reportable Segment Management has determined that the Company operates in one segment, given the similarities in economic characteristics between its operations and the common nature of its products and services, production and distribution process, and regulatory environment. |
Fair Value of 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, which are carried 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 5 . Fair Value Measurements , for additional information. As of September 30, 2019 , the carrying amount and fair value of the Company’s indebtedness was approximately $2,370.0 million and $2,417.1 million , respectively. As of December 31, 2018 , the carrying amount and fair value was approximately $2,381.3 million and $2,271.9 million , respectively. |
Recently Issued & Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 also requires additional disclosures regarding significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The Company expects to adopt the provisions of this guidance on January 1, 2020. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018-13 removes or modifies certain current disclosures, and requires additional disclosures. The changes are meant to provide more relevant information regarding valuation techniques and inputs used to arrive at measures of fair value, uncertainty in the fair value measurements, and how changes in fair value measurements impact an entity’s performance and cash flows. Certain disclosures in ASU 2018-13 will need to be applied on a retrospective basis and others on a prospective basis. Early adoption is permitted. The Company expects to adopt the provisions of this guidance on January 1, 2020. The adoption is not expected to have a material impact on the Company’s related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the accounting for costs to implement a cloud computing arrangement that is a service with the guidance on capitalizing costs for developing or obtaining internal-use software. The Company expects to apply the prospective approach upon adoption of the provisions of this guidance on January 1, 2020. The adoption is not expected to have a material impact on the Company’s consolidated financial statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. The new standard also requires disclosures that provide additional information on recorded lease arrangements. In July 2018, the FASB issued ASU 2018-11, Leases – Targeted Improvements, which provides an optional transition method that allows entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the provisions of this guidance, including the optional transition method, on January 1, 2019. Operating lease assets and corresponding lease liabilities were recognized on the Company’s unaudited condensed consolidated statements of financial condition. There was no material impact to its consolidated statements of income. Refer to Note 9 . Leases , for additional disclosure and significant accounting policies affecting leases. In June 2018, the FASB issued ASU 2018-07, Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payments granted to non-employees. Consistent with the requirement for employee share-based payment awards, non-employee share-based payment awards within the scope of Topic 718 will be measured at grant-date fair value of the equity instruments. The Company adopted the provisions of this guidance on January 1, 2019 and will no longer mark-to-market advisor and financial institution equity awards in the consolidated statements of income. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue - Reporting Category [Table Text Block] | The following table presents total commission revenue disaggregated by investment product category (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Variable annuities $ 202,131 $ 201,075 $ 586,421 $ 597,613 Mutual funds 148,672 155,579 438,714 470,665 Alternative investments 5,467 6,331 17,526 18,602 Fixed annuities 41,541 47,117 144,106 127,288 Equities 20,149 19,082 58,213 62,071 Fixed income 30,917 32,144 91,480 93,368 Insurance 17,004 16,155 52,085 51,993 Group annuities 8,761 9,064 26,030 27,576 Other 351 328 912 595 Total commission revenue $ 474,993 $ 486,875 $ 1,415,487 $ 1,449,771 |
Disaggregation of Revenue - Reporting Category & Timing of Transfer of Good or Service [Table Text Block] | The following table presents sales-based and trailing commission revenues disaggregated by product category (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Sales-based Variable annuities $ 59,948 $ 57,491 $ 168,234 $ 168,487 Mutual funds 36,358 33,319 109,084 107,910 Alternative investments 2,009 1,822 5,976 5,457 Fixed annuities 34,309 40,040 122,516 107,709 Equities 20,149 19,082 58,213 62,071 Fixed income 24,950 25,757 73,749 74,587 Insurance 15,289 14,433 46,762 46,877 Group annuities 979 1,273 3,426 3,615 Other 351 328 912 595 Total sales-based revenue $ 194,342 $ 193,545 $ 588,872 $ 577,308 Trailing Variable annuities $ 142,183 $ 143,584 $ 418,187 $ 429,126 Mutual funds 112,314 122,260 329,630 362,755 Alternative investments 3,458 4,509 11,550 13,145 Fixed annuities 7,232 7,077 21,590 19,579 Fixed income 5,967 6,387 17,731 18,781 Insurance 1,715 1,722 5,323 5,116 Group annuities 7,782 7,791 22,604 23,961 Total trailing revenue $ 280,651 $ 293,330 $ 826,615 $ 872,463 Total commission revenue $ 474,993 $ 486,875 $ 1,415,487 $ 1,449,771 |
Disaggregation of Revenue - Product and Service [Table Text Block] | The following table sets forth asset-based revenue at a disaggregated level (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Asset-based revenue Client cash $ 162,517 $ 127,174 $ 497,471 $ 352,644 Sponsorship programs 62,861 58,065 187,417 168,074 Recordkeeping 66,762 63,656 192,166 186,116 Total asset-based revenue $ 292,140 $ 248,895 $ 877,054 $ 706,834 |
Disaggregation of Revenue - Timing of Transfer of Good or Service [Table Text Block] | The following table sets forth transaction and fee revenue disaggregated by recognition pattern (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Transaction and Fee Revenue Point-in-time (1) $ 57,038 $ 57,675 $ 163,934 $ 165,768 Over time (2) 64,184 61,266 198,103 186,277 Total transaction and fee revenue $ 121,222 $ 118,941 $ 362,037 352,045 _______________________________ (1) Transaction and fee revenue recognized point-in-time includes revenue such as transaction fees, IRA termination fees, and conference service fees. (2) Transaction and fee revenue recognized over time includes revenue such as error and omission insurance fees, IRA custodian fees, and licensing fees. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 37,645 $ — $ — $ 37,645 Securities owned — trading: Money market funds 103 — — 103 Mutual funds 12,666 — — 12,666 Equity securities 530 — — 530 Debt securities — 126 — 126 U.S. treasury obligations 19,349 — — 19,349 Total securities owned — trading 32,648 126 — 32,774 Other assets 238,939 10,749 — 249,688 Total assets at fair value $ 309,232 $ 10,875 $ — $ 320,107 Liabilities Securities sold, but not yet purchased: Equity securities $ 89 $ — $ — $ 89 Debt securities — 117 — 117 Total securities sold, but not yet purchased 89 117 — 206 Accounts payable and accrued liabilities — — 9,031 9,031 Total liabilities at fair value $ 89 $ 117 $ 9,031 $ 9,237 The following table summarizes the Company’s financial assets and financial liabilities measured at fair value on a recurring basis at December 31, 2018 (in thousands): Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 26,657 $ — $ — $ 26,657 Securities owned — trading: Money market funds 194 — — 194 Mutual funds 7,434 — — 7,434 Equity securities 1,931 — — 1,931 Debt securities — 1 — 1 U.S. treasury obligations 19,707 — — 19,707 Total securities owned — trading 29,266 1 — 29,267 Other assets 181,974 9,420 — 191,394 Total assets at fair value $ 237,897 $ 9,421 $ — $ 247,318 Liabilities Securities sold, but not yet purchased: Equity securities $ 163 $ — $ — $ 163 Debt securities — 6 — 6 Total securities sold, but not yet purchased 163 6 — 169 Total liabilities at fair value $ 163 $ 6 $ — $ 169 |
Held-to-Maturity Securities (Ta
Held-to-Maturity Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of amortized cost, gross unrealized gain (loss), and fair value of securities held-to-maturity | The amortized cost, gross unrealized gain (loss), and fair value of securities held-to-maturity were as follows (in thousands): September 30, December 31, Amortized cost $ 13,043 $ 13,001 Gross unrealized gain (loss) 82 (56 ) Fair value $ 13,125 $ 12,945 |
Maturities of securities held-to-maturity | At September 30, 2019 , 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 $ 5,079 $ 7,964 $ — $ 13,043 U.S. government notes — at fair value $ 5,086 $ 8,039 $ — $ 13,125 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2017 $ 1,427,769 Goodwill acquired 62,478 Balance at December 31, 2018 $ 1,490,247 Goodwill acquired 12,432 Balance at September 30, 2019 $ 1,502,679 |
Components of intangible assets | The components of intangible assets were as follows at September 30, 2019 (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 6.3 $ 651,642 $ (353,142 ) $ 298,500 Product sponsor relationships 6.4 234,086 (158,458 ) 75,628 Client relationships 9.0 42,234 (14,369 ) 27,865 Technology 9.3 15,510 (1,163 ) 14,347 Trade names 2.6 1,200 (890 ) 310 Total definite-lived intangible assets $ 944,672 $ (528,022 ) $ 416,650 Indefinite-lived intangible assets: Trademark and trade name 39,819 Total intangible assets $ 456,469 The components of intangible assets were as follows at December 31, 2018 (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 7.1 $ 651,642 $ (316,153 ) $ 335,489 Product sponsor relationships 7.1 234,086 (149,525 ) 84,561 Client relationships 7.0 21,233 (12,841 ) 8,392 Technology 10.0 15,510 — 15,510 Trade names 3.3 1,200 (800 ) 400 Total definite-lived intangible assets $ 923,671 $ (479,319 ) $ 444,352 Indefinite-lived intangible assets: Trademark and trade name 39,819 Total intangible assets $ 484,171 |
Amortization expense | Total amortization of intangible assets was $16.3 million and $15.7 million for the three months ended September 30, 2019 and 2018 , respectively, and $48.7 million and $44.6 million for the nine months ended September 30, 2019 and 2018 , respectively. Future amortization expense is estimated as follows (in thousands): 2019 - remainder $ 16,631 2020 66,139 2021 65,982 2022 65,182 2023 61,086 Thereafter 141,630 Total $ 416,650 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Outstanding borrowings | The Company’s outstanding borrowings were as follows (dollars in thousands): September 30, 2019 December 31, 2018 Long-Term Borrowings Balance Applicable Margin Interest Rate Balance Applicable Margin Interest rate Maturity Revolving Credit Facility $ — LIBOR+125bps — % $ — LIBOR+125bps — % 9/21/2022 Senior Secured Term Loan B (1) 1,470,000 LIBOR+225 bps 4.30 % 1,481,250 LIBOR+225 bps 4.73 % 9/21/2024 Senior Unsecured Notes (1)(2) 900,000 Fixed Rate 5.75 % 900,000 Fixed Rate 5.75 % 9/15/2025 Total long-term borrowings 2,370,000 2,381,250 Plus: Unamortized Premium 8,958 10,083 Less: Unamortized Debt Issuance Cost (18,740 ) (19,525 ) Net Carrying Value $ 2,360,218 $ 2,371,808 _______________________________ (1) No leverage or interest coverage maintenance covenants. (2) The Senior Unsecured Notes were issued in two separate transactions: $500.0 million in original notes were issued in March 2017 at par; $400.0 million in additional notes were issued in September 2017 and priced at 103.0% of the aggregate principal amount. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Operating lease cost $ 4,366 $ 13,219 Finance lease cost: Amortization of right-of-use assets $ 1,164 $ 3,493 Interest on lease liabilities 2,095 6,279 Total finance lease cost $ 3,259 $ 9,772 |
Schedule of Supplemental Cash Flow information related to leases | Supplemental cash flow information related to leases was as follows (in thousands): Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 14,270 Operating cash flows from finance leases $ 6,279 Financing cash flows from finance leases $ 648 |
Schedule of Supplemental weighted-average information related to leases | Supplemental weighted average information related to leases was as follows: September 30, 2019 Weighted-average remaining lease term (years): Finance leases 26.7 Operating leases 9.4 Weighted-average discount rate: Finance leases 7.80 % Operating leases 7.27 % |
Schedule of Maturities of Lease Liabilities - Operating Leases | Maturities of lease liabilities as of September 30, 2019 were as follows (in thousands): Operating Leases Finance Leases 2019 - remainder $ 4,923 $ 2,018 2020 19,964 9,084 2021 20,552 9,227 2022 21,084 8,429 2023 20,706 8,576 Thereafter 114,989 242,366 Total lease payments 202,218 279,700 Less imputed interest 58,024 172,516 Total $ 144,194 $ 107,184 |
Schedule of Maturities of Lease Liabilities - Finance Leases | Maturities of lease liabilities as of September 30, 2019 were as follows (in thousands): Operating Leases Finance Leases 2019 - remainder $ 4,923 $ 2,018 2020 19,964 9,084 2021 20,552 9,227 2022 21,084 8,429 2023 20,706 8,576 Thereafter 114,989 242,366 Total lease payments 202,218 279,700 Less imputed interest 58,024 172,516 Total $ 144,194 $ 107,184 |
Schedule of Maturities of Lease Liabilities under ASC Topic 840 | Maturities of lease liabilities as of December 31, 2018 under ASC Topic 840 were as follows (in thousands): 2019 $ 30,010 2020 30,731 2021 30,590 2022 31,238 2023 30,265 Thereafter 239,118 Total (1) $ 391,952 _______________________________ (1) Amounts above exclude $75.7 million related to non-lease commitments from the schedule included in Note 13 . Commitments and Contingencies , in the Company’s audited consolidated financial statements and the related notes in the 2018 Annual Report on Form 10-K. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |
Dividends Declared [Table Text Block] | 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): 2019 2018 Dividend per Share Total Cash Dividend Dividend per Share Total Cash Dividend First quarter $ 0.25 $ 21.1 $ 0.25 $ 22.6 Second quarter $ 0.25 $ 20.8 $ 0.25 $ 22.3 Third quarter $ 0.25 $ 20.5 $ 0.25 $ 21.9 |
Summary of share repurchase program activity | The Company had the following activity under its approved share repurchase programs (dollars in millions, except per share data): 2019 Total Number of Shares Purchased Weighted-Average Price Paid Per Share Total Cost (1) First quarter 1,747,116 $ 71.57 $ 125.0 Second quarter 1,591,950 $ 78.54 $ 125.0 Third quarter 1,668,305 $ 78.09 $ 130.3 5,007,371 $ 75.96 $ 380.3 _______________________________ (1) Included in the total cost of shares purchased is a commission fee of $0.02 per share. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Weighted-average assumptions used for calculating the fair value of 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 its employee and officer stock options that have been granted during the nine months ended September 30, 2019 : Expected life (in years) 5.43 Expected stock price volatility 35.80 % Expected dividend yield 1.49 % Risk-free interest rate 2.47 % Fair value of options $ 24.41 |
Summary of stock option and warrant activity | The following table summarizes the Company’s stock option and warrant activity as of and for the nine months ended September 30, 2019 : Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In thousands) Outstanding — December 31, 2018 3,588,067 $ 35.38 Granted 422,397 $ 77.53 Exercised (918,939 ) $ 30.10 Forfeited and Expired (87,123 ) $ 47.22 Outstanding — September 30, 2019 3,004,402 $ 42.58 5.89 $ 118,145 Exercisable — September 30, 2019 2,167,111 $ 33.67 4.81 $ 104,510 Exercisable and expected to vest — September 30, 2019 2,935,433 $ 41.92 5.81 $ 117,359 |
Summary of outstanding stock options and warrant information | The following table summarizes information about outstanding stock options and warrants as of September 30, 2019 : Outstanding Exercisable Range of Exercise Prices Number of Shares Weighted- Average Exercise Price Weighted-Average Number of Shares Weighted- Average Exercise Price $19.85 - $25.00 674,097 $ 20.30 5.75 674,097 $ 20.30 $25.01 - $35.00 733,261 $ 31.29 2.35 733,261 $ 31.29 $35.01 - $45.00 476,678 $ 39.60 7.32 293,475 $ 39.68 $45.01 - $65.00 349,558 $ 48.74 5.03 349,558 $ 48.74 $65.01 - $75.00 366,440 $ 65.56 8.34 115,355 $ 65.56 $75.01 - $80.00 404,368 $ 77.53 9.39 1,365 $ 77.53 3,004,402 $ 42.58 5.89 2,167,111 $ 33.67 |
Summary of restricted stock awards and restricted stock units activity | The following summarizes the Company’s activity in its restricted stock awards and stock units, which include restricted stock units, deferred stock units, and performance stock units, for the nine months ended September 30, 2019 : Restricted Stock Awards Stock Units Number of Shares Weighted-Average Grant-Date Fair Value Number of Shares Weighted-Average Grant-Date Fair Value Outstanding — December 31, 2018 7,057 $ 70.26 910,720 $ 52.38 Granted 9,366 $ 81.99 287,288 $ 81.95 Vested (8,127 ) $ 71.81 (348,811 ) $ 44.41 Forfeited — $ — (39,644 ) $ 60.48 Nonvested — September 30, 2019 8,296 $ 81.99 809,553 (1) $ 65.91 Expected to vest — September 30, 2019 8,296 $ 81.99 707,986 $ 66.96 _______________________________ (1) Includes 50,637 vested and undistributed deferred stock units. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share computations | The calculation of basic and diluted earnings per share for the periods noted was as follows (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 131,714 $ 106,865 $ 433,204 $ 319,161 Basic weighted-average number of shares outstanding 81,833 87,426 83,315 88,841 Dilutive common share equivalents 2,011 2,452 2,106 2,606 Diluted weighted-average number of shares outstanding 83,844 89,878 85,421 91,447 Basic earnings per share $ 1.61 $ 1.22 $ 5.20 $ 3.59 Diluted earnings per share $ 1.57 $ 1.19 $ 5.07 $ 3.49 |
Organization and Description _2
Organization and Description of the Company Consolidation, Parent Ownership Interest (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Lpl Financial Llc [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Ownership Interest Percentage In Subsidiary | 100.00% |
Number of States in which Entity Operates | 50 |
Ptc Holdings Inc [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Ownership Interest Percentage In Subsidiary | 100.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Reportable Segment (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Number of Operating Segments | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total borrowings | $ 2,370,000 | $ 2,381,250 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of indebtedness | $ 2,417,100 | $ 2,271,900 |
Revenue Commission Revenue Disa
Revenue Commission Revenue Disaggregated by Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | $ 474,993 | $ 486,875 | $ 1,415,487 | $ 1,449,771 |
Variable Annuities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 202,131 | 201,075 | 586,421 | 597,613 |
Mutual Funds [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 148,672 | 155,579 | 438,714 | 470,665 |
Alternative Investments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 5,467 | 6,331 | 17,526 | 18,602 |
Fixed Annuities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 41,541 | 47,117 | 144,106 | 127,288 |
Equities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 20,149 | 19,082 | 58,213 | 62,071 |
Fixed Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 30,917 | 32,144 | 91,480 | 93,368 |
Insurance [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 17,004 | 16,155 | 52,085 | 51,993 |
Group Annuities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 8,761 | 9,064 | 26,030 | 27,576 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | $ 351 | $ 328 | $ 912 | $ 595 |
Revenue Commission Revenue Di_2
Revenue Commission Revenue Disaggregated by Product Category and Timing of Transfer of Good or Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | $ 474,993 | $ 486,875 | $ 1,415,487 | $ 1,449,771 |
Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 194,342 | 193,545 | 588,872 | 577,308 |
Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 280,651 | 293,330 | 826,615 | 872,463 |
Variable Annuities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 202,131 | 201,075 | 586,421 | 597,613 |
Variable Annuities [Member] | Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 59,948 | 57,491 | 168,234 | 168,487 |
Variable Annuities [Member] | Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 142,183 | 143,584 | 418,187 | 429,126 |
Mutual Funds [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 148,672 | 155,579 | 438,714 | 470,665 |
Mutual Funds [Member] | Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 36,358 | 33,319 | 109,084 | 107,910 |
Mutual Funds [Member] | Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 112,314 | 122,260 | 329,630 | 362,755 |
Alternative Investments [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 5,467 | 6,331 | 17,526 | 18,602 |
Alternative Investments [Member] | Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 2,009 | 1,822 | 5,976 | 5,457 |
Alternative Investments [Member] | Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 3,458 | 4,509 | 11,550 | 13,145 |
Fixed Annuities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 41,541 | 47,117 | 144,106 | 127,288 |
Fixed Annuities [Member] | Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 34,309 | 40,040 | 122,516 | 107,709 |
Fixed Annuities [Member] | Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 7,232 | 7,077 | 21,590 | 19,579 |
Equities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 20,149 | 19,082 | 58,213 | 62,071 |
Equities [Member] | Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 20,149 | 19,082 | 58,213 | 62,071 |
Fixed Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 30,917 | 32,144 | 91,480 | 93,368 |
Fixed Income [Member] | Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 24,950 | 25,757 | 73,749 | 74,587 |
Fixed Income [Member] | Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 5,967 | 6,387 | 17,731 | 18,781 |
Insurance [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 17,004 | 16,155 | 52,085 | 51,993 |
Insurance [Member] | Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 15,289 | 14,433 | 46,762 | 46,877 |
Insurance [Member] | Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 1,715 | 1,722 | 5,323 | 5,116 |
Group Annuities [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 8,761 | 9,064 | 26,030 | 27,576 |
Group Annuities [Member] | Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 979 | 1,273 | 3,426 | 3,615 |
Group Annuities [Member] | Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 7,782 | 7,791 | 22,604 | 23,961 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | 351 | 328 | 912 | 595 |
Other [Member] | Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage Commissions Revenue | $ 351 | $ 328 | $ 912 | $ 595 |
Revenue Asset-based Revenue dis
Revenue Asset-based Revenue disaggregated by Product and Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Asset Based Fees | $ 292,140 | $ 248,895 | $ 877,054 | $ 706,834 |
Client cash [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset Based Fees | 162,517 | 127,174 | 497,471 | 352,644 |
Sponsorship Programs [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset Based Fees | 62,861 | 58,065 | 187,417 | 168,074 |
Recordkeeping [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Asset Based Fees | $ 66,762 | $ 63,656 | $ 192,166 | $ 186,116 |
Revenue Transaction and Fee Rev
Revenue Transaction and Fee Revenue Disaggregated by Timing of Transfer of Good or Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Transaction And Other Fees | $ 121,222 | $ 118,941 | $ 362,037 | $ 352,045 |
Point-in-time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Transaction And Other Fees | 57,038 | 57,675 | 163,934 | 165,768 |
Over time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Transaction And Other Fees | $ 64,184 | $ 61,266 | $ 198,103 | $ 186,277 |
Revenue Unearned Revenue Recogn
Revenue Unearned Revenue Recognized (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Unearned Revenue [Abstract] | |
Deferred Revenue, Revenue Recognized | $ 78.9 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Aug. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 31, 2020 |
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Aug. 1, 2019 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 25,000 | $ 24,884 | $ 0 | ||
Forecast [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 10,000 |
Fair Value Measurements Financi
Fair Value Measurements Financial Assets and Liabilities Measured on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | $ 32,774 | $ 29,267 |
Securities sold, but not yet purchased | 206 | 169 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 37,645 | 26,657 |
Securities owned — trading | 32,774 | 29,267 |
Other assets | 249,688 | 191,394 |
Total assets at fair value | 320,107 | 247,318 |
Securities sold, but not yet purchased | 206 | 169 |
Accounts payable and accrued liabilities | 9,031 | |
Total liabilities at fair value | 9,237 | 169 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 37,645 | 26,657 |
Securities owned — trading | 32,648 | 29,266 |
Other assets | 238,939 | 181,974 |
Total assets at fair value | 309,232 | 237,897 |
Securities sold, but not yet purchased | 89 | 163 |
Accounts payable and accrued liabilities | 0 | |
Total liabilities at fair value | 89 | 163 |
Fair Value, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Securities owned — trading | 126 | 1 |
Other assets | 10,749 | 9,420 |
Total assets at fair value | 10,875 | 9,421 |
Securities sold, but not yet purchased | 117 | 6 |
Accounts payable and accrued liabilities | 0 | |
Total liabilities at fair value | 117 | 6 |
Fair Value, Recurring [Member] | 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 | 9,031 | |
Total liabilities at fair value | 9,031 | 0 |
Equities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 89 | 163 |
Equities [Member] | Fair Value, 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 | 89 | 163 |
Equities [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | 0 |
Equities [Member] | Fair Value, Recurring [Member] | 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, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 117 | 6 |
Debt Securities [Member] | Fair Value, 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, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 117 | 6 |
Debt Securities [Member] | Fair Value, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities sold, but not yet purchased | 0 | 0 |
Money Market Funds [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 103 | 194 |
Money Market Funds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 103 | 194 |
Money Market Funds [Member] | Fair Value, Recurring [Member] | 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, Recurring [Member] | 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, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 12,666 | 7,434 |
Mutual Funds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 12,666 | 7,434 |
Mutual Funds [Member] | Fair Value, Recurring [Member] | 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, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 0 | 0 |
Equities [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 530 | 1,931 |
Equities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 530 | 1,931 |
Equities [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 0 | 0 |
Equities [Member] | Fair Value, Recurring [Member] | 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, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 126 | 1 |
Debt Securities [Member] | Fair Value, 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, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 126 | 1 |
Debt Securities [Member] | Fair Value, Recurring [Member] | 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, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 19,349 | 19,707 |
U.S. treasury obligations [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities owned — trading | 19,349 | 19,707 |
U.S. treasury obligations [Member] | Fair Value, Recurring [Member] | 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, Recurring [Member] | 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Summary of amortized cost, gross unrealized gain (loss) and fair value of securities held-to-maturity | ||
U.S. government notes - at amortized cost, Total | $ 13,043 | $ 13,001 |
U.S. Treasury Securities [Member] | ||
Summary of amortized cost, gross unrealized gain (loss) and fair value of securities held-to-maturity | ||
U.S. government notes - at amortized cost, Total | 13,043 | 13,001 |
Gross unrealized gain | 82 | |
Gross unrealized loss | (56) | |
U.S. government notes - at fair value, Total | $ 13,125 | $ 12,945 |
Held-to-Maturity Securities (_2
Held-to-Maturity Securities (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Maturities of securities held-to-maturity | ||
U.S. government notes - at amortized cost, Total | $ 13,043 | $ 13,001 |
U.S. Treasury Securities [Member] | ||
Maturities of securities held-to-maturity | ||
U.S. government notes - at amortized cost, Within one year | 5,079 | |
U.S. government notes - at amortized cost, After one but within five years | 7,964 | |
U.S. government notes - at amortized cost, After five through ten years | 0 | |
U.S. government notes - at amortized cost, Total | 13,043 | 13,001 |
U.S. government notes - at fair value, Within one year | 5,086 | |
U.S. government notes - at fair value, After one but within five years | 8,039 | |
U.S. government notes - at fair value, After five through ten years | 0 | |
U.S. government notes - at fair value, Total | $ 13,125 | $ 12,945 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,490,247 | $ 1,427,769 |
Goodwill acquired | 12,432 | 62,478 |
Goodwill, ending balance | $ 1,502,679 | $ 1,490,247 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Intangible Assets (Components) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets | ||
Gross Carrying Value | $ 944,672 | $ 923,671 |
Accumulated Amortization | (528,022) | (479,319) |
Net Carrying Value | 416,650 | 444,352 |
Indefinite-lived Intangible Assets | ||
Total intangible assets | 456,469 | 484,171 |
Trademarks and Trade Names [Member] | ||
Indefinite-lived Intangible Assets | ||
Net Carrying Value | $ 39,819 | $ 39,819 |
Advisor And Financial Institution Relationships [Member] | ||
Finite-Lived Intangible Assets | ||
Weighed-Average Life Remaining (in years) | 6 years 3 months 18 days | 7 years 1 month 6 days |
Gross Carrying Value | $ 651,642 | $ 651,642 |
Accumulated Amortization | (353,142) | (316,153) |
Net Carrying Value | $ 298,500 | $ 335,489 |
Product Sponsor Relationships [Member] | ||
Finite-Lived Intangible Assets | ||
Weighed-Average Life Remaining (in years) | 6 years 4 months 24 days | 7 years 1 month 6 days |
Gross Carrying Value | $ 234,086 | $ 234,086 |
Accumulated Amortization | (158,458) | (149,525) |
Net Carrying Value | $ 75,628 | $ 84,561 |
Client Relationships [Member] | ||
Finite-Lived Intangible Assets | ||
Weighed-Average Life Remaining (in years) | 9 years | 7 years |
Gross Carrying Value | $ 42,234 | $ 21,233 |
Accumulated Amortization | (14,369) | (12,841) |
Net Carrying Value | $ 27,865 | $ 8,392 |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets | ||
Weighed-Average Life Remaining (in years) | 9 years 3 months 18 days | 10 years |
Gross Carrying Value | $ 15,510 | $ 15,510 |
Accumulated Amortization | (1,163) | 0 |
Net Carrying Value | $ 14,347 | $ 15,510 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets | ||
Weighed-Average Life Remaining (in years) | 2 years 7 months 6 days | 3 years 3 months 18 days |
Gross Carrying Value | $ 1,200 | $ 1,200 |
Accumulated Amortization | (890) | (800) |
Net Carrying Value | $ 310 | $ 400 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Details Textures) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Total amortization expense of intangible assets | $ 16,286 | $ 15,676 | $ 48,703 | $ 44,580 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets Intangible Assets (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Future amortization expense | ||
2019 - Remainder | $ 16,631 | |
2020 | 66,139 | |
2021 | 65,982 | |
2022 | 65,182 | |
2023 | 61,086 | |
Thereafter | 141,630 | |
Net Carrying Value | $ 416,650 | $ 444,352 |
Debt (Credit Agreement Textuals
Debt (Credit Agreement Textuals) (Details) - USD ($) $ in Thousands | Sep. 21, 2017 | Mar. 10, 2017 | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Principal amount of debt | $ 2,360,218 | $ 2,371,808 | ||
Long-term Debt, Gross | 2,370,000 | 2,381,250 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt term | 5 years | |||
Long-term Debt, Gross | $ 0 | 0 | ||
Applicable interest rate margin (as percent) | 1.25% | |||
Letters of credit, amount outstanding | $ 3,700 | |||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable interest rate margin (as percent) | 1.25% | |||
Secured Debt [Member] | Fourth Amendment Agreement Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt term | 7 years | |||
Long-term Debt, Gross | 1,470,000 | 1,481,250 | ||
Amortization payment (as percent) | 0.25% | |||
Secured Debt [Member] | Fourth Amendment Agreement Term Loan B [Member] | Eurodollar Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable interest rate margin (as percent) | 2.25% | |||
Interest Rate Floor | 0.00% | |||
Secured Debt [Member] | Fourth Amendment Agreement Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable interest rate margin (as percent) | 2.25% | |||
Secured Debt [Member] | Fourth Amendment Agreement Term Loan B [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable interest rate margin (as percent) | 1.25% | |||
Unsecured Debt [Member] | Senior Notes Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 500,000 | $ 900,000 | $ 900,000 | |
Interest Rate (as percent) | 5.75% | 5.75% | ||
Unsecured Debt [Member] | Additional Senior Unsecured Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 400,000 | |||
Debt Instrument, Redemption Price, Percentage | 103.00% | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | Eurodollar Rate [Member] | Minimum | ||||
Debt Instrument [Line Items] | ||||
Applicable interest rate margin (as percent) | 1.25% | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | Eurodollar Rate [Member] | Maximum | ||||
Debt Instrument [Line Items] | ||||
Applicable interest rate margin (as percent) | 1.75% | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Minimum | ||||
Debt Instrument [Line Items] | ||||
Applicable interest rate margin (as percent) | 0.25% | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | Maximum | ||||
Debt Instrument [Line Items] | ||||
Applicable interest rate margin (as percent) | 0.75% |
Debt (Credit Agreement Outstand
Debt (Credit Agreement Outstanding) (Details) - USD ($) $ in Thousands | Sep. 21, 2017 | Sep. 30, 2019 | Dec. 31, 2018 | Mar. 10, 2017 |
Debt Instrument [Line Items] | ||||
Total borrowings | $ 2,370,000 | $ 2,381,250 | ||
Debt Instrument, Unamortized Premium | 8,958 | 10,083 | ||
Less Unamortized Debt Issuance Cost | (18,740) | (19,525) | ||
Long-term borrowings — net of unamortized debt issuance cost | 2,360,218 | 2,371,808 | ||
Secured Debt [Member] | Fourth Amendment Agreement Term Loan B [Member] | ||||
Debt Instrument [Line Items] | ||||
Total borrowings | $ 1,470,000 | $ 1,481,250 | ||
Interest Rate (as percent) | 4.30% | 4.73% | ||
Secured Debt [Member] | Fourth Amendment Agreement Term Loan B [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin (as percent) | 2.25% | |||
Unsecured Debt [Member] | Senior Notes Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total borrowings | $ 900,000 | $ 900,000 | $ 500,000 | |
Interest Rate (as percent) | 5.75% | 5.75% | ||
Unsecured Debt [Member] | Additional Senior Unsecured Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total borrowings | $ 400,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Total borrowings | $ 0 | $ 0 | ||
Applicable margin (as percent) | 1.25% | |||
Interest Rate (as percent) | 0.00% | 0.00% | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin (as percent) | 1.25% |
Debt Debt (Bank Loans Payable T
Debt Debt (Bank Loans Payable Textuals) (Details) - Line of Credit [Member] | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Line of Credit Facility [Line Items] | ||
Total number of uncommitted lines of credit | 3 | |
Number of uncommitted lines of credit with an unspecified limit | 2 | |
Line of credit, maximum borrowing capacity | $ 150,000,000 | $ 150,000,000 |
Average Outstanding Amount | $ 2,000,000 | $ 227,000,000 |
Interest rate (as percent) | 3.55% | 3.98% |
Line of credit, amount outstanding | $ 0 | $ 0 |
Debt Broker-Dealer Credit Facil
Debt Broker-Dealer Credit Facility (Details) - LPL Financial LLC [Domain] - Revolving Credit Facility [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Jul. 31, 2019 |
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 300,000 | |
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 1,500 | |
Line of credit, amount outstanding | $ 0 |
Leases Narrative (Details)
Leases Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Minimum | |
Lease Description [Line Items] | |
Remaining lease terms (in years) | 3 years |
Maximum | |
Lease Description [Line Items] | |
Remaining lease terms (in years) | 17 years |
Options to extend leases (in years) | 20 years |
Fixed Assets | |
Lease Description [Line Items] | |
Finance lease assets | $ 107.2 |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease Cost | ||
Operating lease cost | $ 4,366 | $ 13,219 |
Amortization of right-of-use assets | 1,164 | 3,493 |
Interest on lease liabilities | 2,095 | 6,279 |
Total finance lease cost | $ 3,259 | $ 9,772 |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 14,270 |
Operating cash flows from finance leases | 6,279 |
Financing cash flows from finance leases | $ 648 |
Leases Supplemental Weighted-Av
Leases Supplemental Weighted-Average Information Related to Leases (Details) | Sep. 30, 2019 |
Weighed Average Remaining Lease Term [Abstract] | |
Finance Lease, Weighted Average Remaining Lease Term | 26 years 8 months 12 days |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 4 months 24 days |
Weighted-average discount rate [Abstract] | |
Finance Lease, Weighted Average Discount Rate, Percent | 7.80% |
Operating Lease, Weighted Average Discount Rate, Percent | 7.27% |
Leases Maturities of Lease Liab
Leases Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2019 - remainder | $ 4,923 | |
2020 | 19,964 | |
2021 | 20,552 | |
2022 | 21,084 | |
2023 | 20,706 | |
Thereafter | 114,989 | |
Total lease payments | 202,218 | |
Less imputed interest | 58,024 | |
Total operating lease liabilities | 144,194 | $ 0 |
Finance Leases | ||
2019 - remainder | 2,018 | |
2020 | 9,084 | |
2021 | 9,227 | |
2022 | 8,429 | |
2023 | 8,576 | |
Thereafter | 242,366 | |
Total lease payments | 279,700 | |
Less imputed interest | 172,516 | |
Total finance lease liabilities | $ 107,184 | $ 0 |
Leases Maturities of Lease Li_2
Leases Maturities of Lease Liabilities at Prior Year End Under ASC Topic 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Maturities of lease liabilities as of December 31, 2018 under ASC Topic 840 | |
2019 | $ 30,010 |
2020 | 30,731 |
2021 | 30,590 |
2022 | 31,238 |
2023 | 30,265 |
Thereafter | 239,118 |
Total minimum payments under ASC Topic 840 | 391,952 |
Non-lease commitments excluded from minimum payments | $ 75,700 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Legal) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Loss Contingency Accrual | $ 26.4 |
Commitments and Contingencies_2
Commitments and Contingencies Commitments and Contingencies (Other Commitments) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Brokers and Dealers [Abstract] | ||
Collateral Securities Repledged, Delivered, or Used | $ 331.8 | |
Collateral security | 464.5 | |
Amount pledged with client-owned securities | 65.5 | |
Remaining collateral securities that can be re-pledged, loaned, or sold | 399 | |
Options Clearing Corporation [Member] | ||
Security Owned and Pledged as Collateral, Fair Value [Abstract] | ||
Trading securities pledged to clearing organizations | 4.5 | $ 4.7 |
National Securities Clearing Corporation [Member] | ||
Security Owned and Pledged as Collateral, Fair Value [Abstract] | ||
Trading securities pledged to clearing organizations | $ 14.9 |
Stockholders' Equity (Dividends
Stockholders' Equity (Dividends Paid) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | ||
Total cash dividends paid during the quarter | $ 20,485 | $ 20,800 | $ 21,100 | $ 21,941 | $ 22,300 | $ 22,600 | $ 62,391 | $ 66,847 |
Stockholdes' Equity (Share Repu
Stockholdes' Equity (Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | ||||||
Amount Remaining | $ 619,800 | $ 619,800 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares Purchased | 1,668,305 | 1,591,950 | 1,747,116 | 5,007,371 | ||
Weighted-Average Price Paid Per Share | $ 78.09 | $ 78.54 | $ 71.57 | $ 75.96 | ||
Total Cost | $ 130,274 | $ 125,000 | $ 125,000 | $ 122,483 | $ 380,341 | $ 300,091 |
Commission Fee Paid Per Repurchased Share | $ 0.02 |
Share-Based Compensation (Texua
Share-Based Compensation (Texuals) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized shares | 20,055,945 | 20,055,945 | ||
Share-based compensation: | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,226,458 | 5,226,458 | ||
Employees, officers, and directors [Member] | Stock options and warrants [Member] | ||||
Share-based compensation: | ||||
Share-based compensation | $ 2.2 | $ 2.5 | $ 7.4 | $ 6.5 |
Share-based compensation cost unrecognized | 10.4 | $ 10.4 | ||
Non-vested compensation cost weighted-average period | 1 year 10 months 2 days | |||
Employees, officers, and directors [Member] | Restricted Stock [Member] | ||||
Share-based compensation: | ||||
Share-based compensation | 4.7 | 3.6 | $ 13.9 | 10.6 |
Share-based compensation cost unrecognized | 26.7 | $ 26.7 | ||
Non-vested compensation cost weighted-average period | 2 years 3 days | |||
Advisors and Financial Institutions [Member] | Restricted stock units (RSUs) [Member] | ||||
Share-based compensation: | ||||
Share-based compensation | 0.5 | $ 1 | $ 2.3 | $ 5.5 |
Share-based compensation cost unrecognized | $ 5.2 | $ 5.2 | ||
Non-vested compensation cost weighted-average period | 2 years 2 months 23 days |
Share-Based Compensation Stock
Share-Based Compensation Stock Option and Warrant Assumptions (Details) - Stock options and warrants [Member] - Employees, officers, and directors [Member] | 9 Months Ended |
Sep. 30, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Expected life (in years) | 5 years 5 months 4 days |
Expected stock price volatility | 35.80% |
Expected dividend yield | 1.49% |
Risk-free interest rate | 2.47% |
Fair value of options | $ 24.41 |
Share-Based Compensation Stoc_2
Share-Based Compensation Stock Option and Warrant Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of Shares Outstanding, Beginning Balance | 3,588,067 |
Number of Shares, Granted | 422,397 |
Number of Shares, Exercised | (918,939) |
Number of Shares, Forfeited | (87,123) |
Number of Shares Outstanding, Ending Balance | 3,004,402 |
Number of Shares Exercisable, Ending Balance | 2,167,111 |
Number of Shares Exercisable and expect to vest | 2,935,433 |
Weighed-Average Exercise Price, Beginning Balance | $ 35.38 |
Weighted-Average Exercise Price, Granted | 77.53 |
Weighted-Average Exercise Price, Exercised | 30.10 |
Weighted-Average Exercise Price, Forfeited | 47.22 |
Weighed-Average Exercise Price, Ending Balance | 42.58 |
Weighted-Average Exercise Price, Exercisable | 33.67 |
Weighed-Average Exercise Price, Excercisable and expect to vest | $ 41.92 |
Weighted-Average Remaining Contractual Term, Options Outstanding | 5 years 10 months 20 days |
Weighted-Average Remaining Contractual Term, Options Exercisable | 4 years 9 months 21 days |
Weighted-Average Remaining Contractual Term, Exercisable and expected to vest | 5 years 9 months 21 days |
Aggregate Intrinsic Value, Outstanding, Ending Balance | $ 118,145 |
Aggregate Intrinsic Value, Exercisable, Ending Balance | 104,510 |
Aggregate Intrinsic Value, Exercisable and expected to vest, Ending Balance | $ 117,359 |
Share-Based Compensation Outsta
Share-Based Compensation Outstanding Stock Options and Warrant Information (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Summary information about outstanding stock options and warrants | |
Total number of shares, Outstanding | shares | 3,004,402 |
Weighted-average remaining life (years), Outstanding | 5 years 10 months 20 days |
Weighted-average exercise price, Outstanding | $ / shares | $ 42.58 |
Number of shares, Exercisable | shares | 2,167,111 |
Weighted-average exercise price, Exercisable | $ / shares | $ 33.67 |
$18.01 - $25.00 | |
Summary information about outstanding stock options and warrants | |
Total number of shares, Outstanding | shares | 674,097 |
Weighted-average remaining life (years), Outstanding | 5 years 9 months |
Weighted-average exercise price, Outstanding | $ / shares | $ 20.30 |
Number of shares, Exercisable | shares | 674,097 |
Weighted-average exercise price, Exercisable | $ / shares | $ 20.30 |
$25.01 - $35.00 | |
Summary information about outstanding stock options and warrants | |
Total number of shares, Outstanding | shares | 733,261 |
Weighted-average remaining life (years), Outstanding | 2 years 4 months 6 days |
Weighted-average exercise price, Outstanding | $ / shares | $ 31.29 |
Number of shares, Exercisable | shares | 733,261 |
Weighted-average exercise price, Exercisable | $ / shares | $ 31.29 |
$35.01 - $45.00 | |
Summary information about outstanding stock options and warrants | |
Total number of shares, Outstanding | shares | 476,678 |
Weighted-average remaining life (years), Outstanding | 7 years 3 months 25 days |
Weighted-average exercise price, Outstanding | $ / shares | $ 39.60 |
Number of shares, Exercisable | shares | 293,475 |
Weighted-average exercise price, Exercisable | $ / shares | $ 39.68 |
$45.01 - $65.00 | |
Summary information about outstanding stock options and warrants | |
Total number of shares, Outstanding | shares | 349,558 |
Weighted-average remaining life (years), Outstanding | 5 years 10 days |
Weighted-average exercise price, Outstanding | $ / shares | $ 48.74 |
Number of shares, Exercisable | shares | 349,558 |
Weighted-average exercise price, Exercisable | $ / shares | $ 48.74 |
$65.01 - $75.00 | |
Summary information about outstanding stock options and warrants | |
Total number of shares, Outstanding | shares | 366,440 |
Weighted-average remaining life (years), Outstanding | 8 years 4 months 2 days |
Weighted-average exercise price, Outstanding | $ / shares | $ 65.56 |
Number of shares, Exercisable | shares | 115,355 |
Weighted-average exercise price, Exercisable | $ / shares | $ 65.56 |
$75.01 - $80.00 | |
Summary information about outstanding stock options and warrants | |
Total number of shares, Outstanding | shares | 404,368 |
Weighted-average remaining life (years), Outstanding | 9 years 4 months 20 days |
Weighted-average exercise price, Outstanding | $ / shares | $ 77.53 |
Number of shares, Exercisable | shares | 1,365 |
Weighted-average exercise price, Exercisable | $ / shares | $ 77.53 |
Restricted Stock Activity (Deta
Restricted Stock Activity (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock units vested and undistributed | 50,637 |
Restricted stock awards [Member] | |
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 | 7,057 |
Number of Shares, Granted | 9,366 |
Number of Shares, Vested | (8,127) |
Number of Shares, Forfeited | 0 |
Number of Shares, Ending Balance | 8,296 |
Number of Shares, Expected to vest | 8,296 |
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ / shares | $ 70.26 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | 81.99 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 71.81 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 0 |
Weighted-Average Grant-Date Fair Value, Ending Balance | $ / shares | 81.99 |
Weighed-Average Grant-Date Fair Value, Expected to vest | $ / shares | $ 81.99 |
Restricted stock units (RSUs) [Member] | |
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 | 910,720 |
Number of Shares, Granted | 287,288 |
Number of Shares, Vested | (348,811) |
Number of Shares, Forfeited | (39,644) |
Number of Shares, Ending Balance | 809,553 |
Number of Shares, Expected to vest | 707,986 |
Weighted-Average Grant-Date Fair Value, Beginning Balance | $ / shares | $ 52.38 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | 81.95 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 44.41 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 60.48 |
Weighted-Average Grant-Date Fair Value, Ending Balance | $ / shares | 65.91 |
Weighed-Average Grant-Date Fair Value, Expected to vest | $ / shares | $ 66.96 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 131,714 | $ 106,865 | $ 433,204 | $ 319,161 |
Basic weighted-average number of shares outstanding | 81,833 | 87,426 | 83,315 | 88,841 |
Dilutive common share equivalents | 2,011 | 2,452 | 2,106 | 2,606 |
Diluted weighted-average number of shares outstanding | 83,844 | 89,878 | 85,421 | 91,447 |
Basic earnings per share | $ 1.61 | $ 1.22 | $ 5.20 | $ 3.59 |
Diluted earnings per share | $ 1.57 | $ 1.19 | $ 5.07 | $ 3.49 |
Earnings per Share (Textuals) (
Earnings per Share (Textuals) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of Earnings per Share amount | 422,680 | 439,156 | 596,354 | 377,583 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory income tax rate | 21.00% | |||
Effective income tax rate | 26.00% | 27.50% | 24.90% | 25.80% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Related Party Transaction [Line Items] | ||||
Shareholder Percent Ownership in Company | 10.00% | |||
Revenue from related party transactions | $ 1.2 | $ 1 | $ 3 | $ 2.6 |
Related party transactions expenses | $ 0.5 | $ 0.6 | $ 1.3 | $ 1.8 |
Net Capital and Regulatory Re_2
Net Capital and Regulatory Requirements (Details) $ in Millions | Sep. 30, 2019USD ($) |
Net capital and net capital requirements for the Company's broker-dealer subsidiaries | |
Broker-Dealer, Net Capital | $ 178.3 |
Broker-Dealer, Minimum Net Capital Required, Broker-Dealer Subsidiary, Aggregate Indebtedness Standard | $ 8.9 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Details) - Subsequent Event [Member] - $ / shares | Nov. 21, 2019 | Nov. 07, 2019 | Oct. 21, 2019 |
Subsequent Event [Line Items] | |||
Dividends Payable, Date Declared | Oct. 21, 2019 | ||
Dividends Payable, Amount Per Share | $ 0.25 | ||
Dividends Payable, Date to be Paid | Nov. 21, 2019 | ||
Dividends Payable, Date of Record | Nov. 7, 2019 |