Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 26, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Cowen Group, Inc. | ||
Entity Central Index Key | 1,466,538 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 105,645,493 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 664,131,808 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Cash and cash equivalents | $ 158,485 | $ 129,509 | |
Cash collateral pledged | 10,085 | 8,306 | |
Securities owned, at fair value | 610,234 | 792,206 | |
Receivable on derivative contracts, at fair value | 39,618 | 49,877 | |
Securities borrowed | 0 | 676,100 | |
Other investments | 140,647 | 167,464 | |
Receivable from brokers | 117,757 | 84,679 | |
Fees receivable, net of allowance | 34,413 | 46,498 | |
Due from related parties | 39,659 | 26,315 | |
Fixed assets, net of accumulated depreciation and amortization of $29,953 and $25,968, respectively | 27,231 | 26,388 | |
Goodwill | 58,361 | 34,906 | |
Intangible assets, net of accumulated amortization of $28,301 and $25,581, respectively | 25,663 | 8,483 | |
Deferred tax assets, net | 143,560 | 129,400 | |
Other assets | 76,326 | 34,230 | |
Consolidated Funds | |||
Cash and cash equivalents | 13,934 | 501 | |
Securities owned, at fair value | 32,000 | 0 | |
Other investments | 263,818 | 189,377 | |
Other assets | 663 | 1,437 | |
Total Assets | 1,792,454 | 2,405,676 | |
Liabilities | |||
Securities sold, not yet purchased, at fair value | 257,159 | 207,875 | |
Payable for derivative contracts, at fair value | 21,183 | 41,330 | |
Securities loaned | 0 | 682,493 | |
Payable to brokers | 131,789 | 335,822 | |
Compensation payable | 150,403 | 134,289 | |
Notes payable and other debt | 70,984 | 67,144 | |
Convertible debt | [1] | 124,777 | 118,475 |
Fees payable | 5,638 | 6,331 | |
Due to related parties | 329 | 474 | |
Accounts Payable, Accrued Expenses and Other Liabilities | 52,233 | 46,606 | |
Consolidated Funds | |||
Due to related parties | 3 | 0 | |
Contributions received in advance | 850 | 0 | |
Capital withdrawals payable | 78 | 864 | |
Accounts payable, accrued expenses and other liabilities | 124 | 222 | |
Total Liabilities | $ 815,550 | $ 1,641,925 | |
Commitments and Contingencies | |||
Redeemable non-controlling interests | $ 186,911 | $ 86,076 | |
Stockholders' equity | |||
Additional paid-in capital | 902,554 | 772,296 | |
(Accumulated deficit) retained earnings | 23,627 | (16,027) | |
Accumulated other comprehensive income (loss) | 0 | 17 | |
Less: Class A common stock held in treasury, at cost, 34,515,734 and 23,507,656 shares as of December 31, 2015 and December 31, 2014, respectively. | (137,356) | (79,771) | |
Total Stockholders' Equity | 789,993 | 677,675 | |
Total Liabilities and Stockholders' Equity | 1,792,454 | 2,405,676 | |
Convertible Preferred Stock | |||
Stockholders' equity | |||
Preferred stock | 1 | 0 | |
Common Stock Class A | |||
Stockholders' equity | |||
Common stock | 1,167 | 1,160 | |
Less: Class A common stock held in treasury, at cost, 34,515,734 and 23,507,656 shares as of December 31, 2015 and December 31, 2014, respectively. | (137,356) | (79,771) | |
Common Stock Class B | |||
Stockholders' equity | |||
Common stock | $ 0 | $ 0 | |
[1] | The carrying amount of the convertible debt includes an unamortized discount of $24.7 million and $31.0 million as of December 31, 2015 and 2014. |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Fixed assets, accumulated depreciation and amortization (in dollars) | $ 29,953,000 | $ 25,968,000 |
Intangible assets, accumulated amortization (in dollars) | $ 28,301,000 | $ 25,581,000 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 120,750 | 0 |
Preferred stock, shares outstanding | 120,750 | 0 |
Preferred Stock, Liquidation Preference, Value | $ 120,750,000 | |
Treasury Stock, Shares | 34,515,734 | 23,507,656 |
Common stock, shares authorized | 500,000,000 | |
Common Stock Class A | ||
Stockholders' equity | ||
Treasury Stock, Shares | 34,515,734 | 23,507,656 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 140,120,392 | 135,198,855 |
Common stock, shares outstanding | 105,604,658 | 111,691,199 |
Common stock, restricted shares | 497,570 | 424,479 |
Common Stock Class B | ||
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Investment banking | $ 222,781 | $ 170,506 | $ 105,333 |
Brokerage | 157,722 | 140,132 | 114,593 |
Management fees | 41,906 | 40,627 | 37,303 |
Incentive income | 1,466 | 2,785 | 12,586 |
Interest and dividends | 13,796 | 48,870 | 39,454 |
Reimbursement from affiliates | 21,557 | 12,495 | 10,434 |
Other revenue | 3,726 | 9,446 | 5,418 |
Consolidated Funds | |||
Interest and dividends | 1,086 | 2,189 | 1,185 |
Other revenues | 527 | 726 | 2,213 |
Total revenues | 464,567 | 427,776 | 328,519 |
Expenses | |||
Employee compensation and benefits | 321,386 | 305,483 | 207,248 |
Floor brokerage and trade execution | 27,460 | 23,425 | 22,709 |
Interest and dividends | 26,220 | 42,752 | 27,299 |
Professional, advisory and other fees | 25,578 | 18,724 | 14,625 |
Service fees | 7,535 | 8,071 | 9,768 |
Communications | 14,325 | 13,449 | 13,434 |
Occupancy and equipment | 29,055 | 26,025 | 24,729 |
Depreciation and amortization | 9,498 | 10,188 | 10,227 |
Client services and business development | 25,413 | 22,897 | 17,353 |
Goodwill Impairment | 0 | 2,334 | 0 |
Other expenses | 15,594 | 15,209 | 11,486 |
Consolidated Funds | |||
Interest and dividends | 1,104 | 788 | 345 |
Professional, advisory and other fees | 654 | 620 | 1,157 |
Floor brokerage and trade execution | 51 | 16 | 285 |
Other expenses | 501 | 210 | 252 |
Total expenses | 504,374 | 490,191 | 360,917 |
Other income (loss) | |||
Net gains (losses) on securities, derivatives and other investments | 36,789 | 104,928 | 39,651 |
Consolidated Funds | |||
Net realized and unrealized gains (losses) on investments and other transactions | 12,517 | 12,890 | 10,678 |
Net realized and unrealized gains (losses) on derivatives | 2,071 | 2,451 | 365 |
Net gains (losses) on foreign currency transactions | (91) | (18) | 1 |
Total other income (loss) | 51,286 | 120,251 | 50,695 |
Income (loss) before income taxes | 11,479 | 57,836 | 18,297 |
Income tax expense (benefit) | (47,496) | (124,944) | 457 |
Net income (loss) | 58,975 | 182,780 | 17,840 |
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | 15,246 | 15,564 | 13,193 |
Net income (loss) attributable to Cowen Group, Inc. | 43,729 | 167,216 | 4,647 |
Preferred Stock Dividends | 4,075 | 0 | 0 |
Net income (loss) attributable to Cowen Group, Inc. common stockholders | $ 39,654 | $ 167,216 | $ 4,647 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 110,090 | 114,926 | 116,703 |
Diluted (in shares) | 116,174 | 119,486 | 121,117 |
Earnings (loss) per share: | |||
Earnings Per Share, Basic (in dollars per share) | $ 0.36 | $ 1.45 | $ 0.04 |
Earnings Per Share, Diluted (in dollars per share) | $ 0.34 | $ 1.40 | $ 0.04 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 58,975 | $ 182,780 | $ 17,840 | |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | [1] | (17) | (231) | (10) |
Defined benefit pension plan: | ||||
Net gain/(loss) arising during the period | 0 | (344) | (137) | |
Other Comprehensive Income (Loss), Effect of curtailment | 0 | 0 | 360 | |
Amortization of prior service cost included in net periodic pension cost | 0 | 0 | 23 | |
Total defined benefit pension plan | [1] | 0 | (344) | 246 |
Total other comprehensive income, net of tax | (17) | (575) | 236 | |
Comprehensive income (loss) | $ 58,958 | $ 182,205 | $ 18,076 | |
[1] | During the periods presented, the Company did not have material reclassifications out of other comprehensive income. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings/(Accumulated deficit) | Call Option | Cumulative Preferred Stock | Common Stock Class A | ||
Balance at Dec. 31, 2012 | $ 495,109 | $ (31,728) | $ 713,211 | $ 356 | $ (187,865) | $ 0 | $ 1,135 | |||
Common Stock, Shares, Outstanding at Dec. 31, 2012 | 112,447,892 | |||||||||
Preferred stock, shares outstanding at Dec. 31, 2012 | 0 | |||||||||
Redeemable Noncontrolling Interest at Dec. 31, 2012 | 85,703 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) attributable to Cowen Group, Inc. | 4,647 | 4,647 | ||||||||
Net income (loss) attributable to redeemable non-controlling interests | 13,193 | |||||||||
Defined benefit plans | 246 | [1] | 246 | |||||||
Foreign currency translation | (10) | [1] | (10) | |||||||
Capital contributions | 15,181 | |||||||||
Capital withdrawals | (28,263) | |||||||||
Restricted stock awards issued, shares | 4,668,423 | |||||||||
Purchase of treasury stock, at cost, shares | (4,606,073) | |||||||||
Purchase of treasury stock, at cost | (16,446) | |||||||||
Treasury stock reissued, cost | 90 | |||||||||
Treasury Stock Reissued at Lower than Repurchase Price | (25) | |||||||||
Preferred stock dividends | 0 | |||||||||
Common stock issuance upon acquisition, shares | 2,491,647 | |||||||||
Common stock issuance upon acquisition | 6,240 | 6,215 | $ 25 | |||||||
Amortization of share based compensation | 17,915 | |||||||||
Balance at Dec. 31, 2013 | 507,766 | (48,084) | 737,341 | 592 | (183,243) | $ 0 | $ 1,160 | |||
Common Stock, Shares, Outstanding at Dec. 31, 2013 | 115,026,633 | |||||||||
Preferred stock, shares outstanding at Dec. 31, 2013 | 0 | |||||||||
Redeemable Noncontrolling Interest at Dec. 31, 2013 | 85,814 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) attributable to Cowen Group, Inc. | 167,216 | 167,216 | ||||||||
Net income (loss) attributable to redeemable non-controlling interests | 15,564 | |||||||||
Defined benefit plans | (344) | [1] | (344) | |||||||
Foreign currency translation | (231) | [1] | (231) | |||||||
Capital contributions | 10,441 | |||||||||
Capital withdrawals | (24,585) | |||||||||
Deconsolidation of entity | (1,158) | |||||||||
Restricted stock awards issued, shares | 4,265,339 | |||||||||
Purchase of treasury stock, at cost, shares | (7,634,107) | |||||||||
Purchase of treasury stock, at cost | (31,687) | |||||||||
Preferred stock dividends | 0 | |||||||||
Common stock issuance upon acquisition | 0 | |||||||||
Warrants issued | 15,218 | |||||||||
Income tax effect from share based compensation | 1,324 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 33,334 | |||||||||
Stock Options Exercised, Common Stock | $ 0 | |||||||||
Stock options exercised, APIC | 116 | 116 | ||||||||
Amortization of share based compensation | 18,297 | |||||||||
Balance at Dec. 31, 2014 | $ 677,675 | (79,771) | 772,296 | 17 | (16,027) | $ 0 | $ 1,160 | |||
Common Stock, Shares, Outstanding at Dec. 31, 2014 | 111,691,199 | |||||||||
Preferred stock, shares outstanding at Dec. 31, 2014 | 0 | 0 | ||||||||
Redeemable Noncontrolling Interest at Dec. 31, 2014 | $ 86,076 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) attributable to Cowen Group, Inc. | 43,729 | 43,729 | ||||||||
Net income (loss) attributable to redeemable non-controlling interests | 15,246 | |||||||||
Defined benefit plans | [1] | 0 | ||||||||
Foreign currency translation | (17) | [1] | (17) | |||||||
Capital contributions | 110,178 | |||||||||
Capital withdrawals | (24,589) | |||||||||
Restricted stock awards issued, shares | 4,272,910 | |||||||||
Purchase of treasury stock, at cost, shares | (11,008,078) | |||||||||
Purchase of treasury stock, at cost | (57,585) | |||||||||
Preferred stock issuance, net of issuance costs | 120,750 | |||||||||
Preferred stock issuance, net of issuance costs | 117,195 | 117,194 | $ 1 | |||||||
Preferred stock dividends | (4,075) | |||||||||
Common stock issuance upon acquisition, shares | 548,625 | |||||||||
Common stock issuance upon acquisition | 3,008 | 3,002 | $ 6 | |||||||
Capped call option transaction | $ (15,878) | |||||||||
Income tax effect from share based compensation | 3,806 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 100,002 | |||||||||
Stock Options Exercised, Common Stock | $ 1 | |||||||||
Stock options exercised, APIC | 395 | 394 | ||||||||
Amortization of share based compensation | 21,740 | |||||||||
Balance at Dec. 31, 2015 | $ 789,993 | $ (137,356) | $ 902,554 | $ 0 | $ 23,627 | $ 1 | $ 1,167 | |||
Common Stock, Shares, Outstanding at Dec. 31, 2015 | 105,604,658 | |||||||||
Preferred stock, shares outstanding at Dec. 31, 2015 | 120,750 | 120,750 | ||||||||
Redeemable Noncontrolling Interest at Dec. 31, 2015 | $ 186,911 | |||||||||
[1] | During the periods presented, the Company did not have material reclassifications out of other comprehensive income. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 58,975 | $ 182,780 | $ 17,840 |
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities: | |||
Depreciation and amortization | 9,498 | 10,188 | 10,227 |
Amortization of debt discount | 6,302 | 4,685 | 0 |
Tax benefits from share based payment arrangements | 3,806 | 1,324 | 0 |
Share-based compensation | 21,740 | 18,297 | 17,915 |
Deferred tax benefit | (17,966) | (130,724) | 0 |
Deferred rent obligations | (2,333) | (2,348) | (3,770) |
Net loss on disposal of fixed assets | 54 | 1,575 | 410 |
Net gain on disposal of capital leases | 0 | (1,261) | 0 |
Goodwill Impairment | 0 | 2,334 | 0 |
Contingent liability adjustment | (200) | (2,055) | 0 |
Purchases of securities owned, at fair value | (5,856,112) | (4,722,554) | (6,765,271) |
Proceeds from sales of securities owned, at fair value | 6,039,719 | 4,272,785 | 7,057,506 |
Proceeds from sales of securities sold, not yet purchased, at fair value | 2,730,939 | 1,992,965 | 2,740,372 |
Payments to cover securities sold, not yet purchased, at fair value | (2,674,153) | (1,898,102) | (2,774,696) |
Net (gains) losses on securities, derivatives and other investments | (34,495) | (97,013) | (44,741) |
Consolidated Funds | |||
Purchases of securities owned, at fair value | (25,000) | 0 | (298,220) |
Proceeds from sales of securities owned, at fair value | 0 | 0 | 287,412 |
Proceeds from sales of securities sold, not yet purchased, at fair value | 0 | 0 | 42,701 |
Payments to Cover Securities Sold Not Yet Purchased at Fair Value | 0 | 0 | (42,387) |
Purchases of other investments | (92,305) | (19,736) | (4,497) |
Proceeds from sales of other investments | 31,417 | 34,225 | 56,873 |
Net realized and unrealized (gains) losses on investments and other transactions | (13,552) | (16,386) | (14,153) |
(Increase) decrease in operating assets: | |||
Cash Acquired from Acquisition | 0 | 0 | 10,747 |
Cash at deconsolidated entity | 0 | (784) | 0 |
Cash collateral pledged | (1,779) | 2,601 | 135 |
Securities owned, at fair value, held at broker dealer | 14,877 | (3,939) | 20,080 |
Receivable on derivative contracts, at fair value | 10,259 | (4,092) | 10,673 |
Securities borrowed | 676,100 | 251,673 | (521,447) |
Receivable from brokers | (27,750) | (15,533) | 5,218 |
Fees receivable, net of allowance | 11,099 | (1,406) | (9,975) |
Due from related parties | (13,344) | (109) | (5,888) |
Other assets | 5,743 | (15,925) | 2,818 |
Consolidated Funds | |||
Cash and cash equivalents | (13,433) | 1,547 | 1,511 |
Other assets | 770 | 4,187 | (5,528) |
Increase (decrease) in operating liabilities: | |||
Securities sold, not yet purchased, at fair value, held at broker dealer | (11,747) | (21,633) | (10,994) |
Payable for derivative contracts, at fair value | (20,147) | (2,055) | (2,374) |
Securities loaned | (682,493) | (236,084) | 509,605 |
Payable to brokers | (204,186) | 258,587 | (113,023) |
Compensation payable | 5,540 | 78,264 | (13,036) |
Fees payable | (693) | (129) | 1,047 |
Due to related parties | (145) | 92 | (280) |
Accounts payable, accrued expenses and other liabilities | (3,112) | 7,375 | (13,404) |
Consolidated Funds | |||
Contributions received in advance | 850 | 0 | 0 |
Payable to brokers | 0 | 0 | 1,030 |
Due to related parties | 3 | 0 | 0 |
Accounts payable, accrued expenses and other liabilities | (98) | (327) | 146 |
Net cash provided by / (used in) operating activities | (67,352) | (66,711) | 150,582 |
Cash flows from investing activities: | |||
Purchases of other investments | (14,149) | (81,597) | (20,031) |
Purchase of business, net of cash acquired | (38,416) | 0 | 0 |
Cash convertible note economic hedge transaction | 0 | (35,710) | 0 |
Proceeds from sales of other investments | 58,166 | 82,072 | 29,890 |
Loans issued | (46,000) | 0 | 0 |
Purchase of fixed assets | (7,030) | (2,224) | (1,141) |
Net cash provided by / (used in) investing activities | (47,429) | (37,459) | 8,718 |
Cash flows from financing activities: | |||
Securities sold under agreement to repurchase | 0 | (3,657) | (162,288) |
Proceeds from issuance of convertible debt | 0 | 149,500 | 0 |
Proceeds from issuance of preferred stock, net of issuance costs | 117,194 | 0 | 0 |
Capped call option transaction | (15,878) | 0 | 0 |
Deferred debt issuance cost | 0 | (3,720) | 0 |
Proceeds from sale of warrant | 0 | 15,218 | 0 |
Borrowings on notes and other debt | 7,140 | 65,392 | 2,044 |
Repayments on notes and other debt | (3,299) | (3,627) | (3,613) |
Tax benefits from share-based payment arrangements | 3,806 | 1,324 | 0 |
Proceeds from stock options exercised | 394 | 116 | 0 |
Purchase of treasury stock | (48,678) | (26,038) | (12,732) |
Cash paid to acquire net assets (contingent liability payable) | (1,725) | (800) | (779) |
Capital contributions by redeemable non-controlling interests in operating entities | 5,644 | 705 | 501 |
Capital withdrawals to redeemable non-controlling interests in operating entities | (13,860) | (8,279) | (3,058) |
Consolidated Funds | |||
Capital contributions by redeemable non-controlling interests in Consolidated Funds | 104,533 | 9,736 | 14,680 |
Capital withdrawals to redeemable non-controlling interests in Consolidated Funds | (11,514) | (16,911) | (22,873) |
Net cash provided by / (used in) financing activities | 143,757 | 178,959 | (188,118) |
Change in cash and cash equivalents | 28,976 | 74,789 | (28,818) |
Cash and cash equivalents at beginning of period | 129,509 | 54,720 | 83,538 |
Cash and cash equivalents at end of period | 158,485 | 129,509 | 54,720 |
Supplemental information | |||
Interest Paid | 17,525 | 32,032 | 24,644 |
Income Taxes Paid | 4,161 | 547 | 72 |
Purchase of treasury stock, at cost, through net settlement | 8,907 | 5,649 | 3,649 |
Preferred stock dividends declared | 4,075 | 0 | 0 |
Cash conversion option | 0 | 35,710 | 0 |
Net assets (liabilities) acquired upon acquisition (net of cash) | 22,468 | 0 | 0 |
Common stock issuance upon close of acquisition | 3,008 | 0 | 6,240 |
Assets acquired under capital lease | 0 | 4,075 | 0 |
Re-issuance of treasury stock for services provided | 0 | 0 | 65 |
Net assets transferred to Merger Master | 0 | 0 | 22,152 |
Net Assets of Deconsolidated Entity | $ 0 | $ 1,544 | $ 0 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Cowen Group, Inc., a Delaware corporation formed in 2009, is a diversified financial services firm and, together with its consolidated subsidiaries (collectively, “Cowen,” “Cowen Group” or the “Company”), provides alternative investment management, investment banking, research, sales and trading and prime brokerage services through its two business segments: alternative investment and broker-dealer. The Company's alternative investment segment, includes hedge funds, private equity structures, registered investment companies and listed vehicles . The Company's broker-dealer segment offers research, sales and trading and investment banking services to companies and institutional investor clients primarily in the healthcare, technology, media and telecommunications, information and technology services, consumer, aerospace and defense, industrials, real estate investment trusts ("REITs"), energy and transportation sectors. Cowen's broker-dealer segment also offers a full-service suite of prime brokerage services. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Acquisition [Abstract] | |
Acquisition | Acquisitions and Divestitures Acquisitions During the year ended December 31, 2015, the Company completed two acquisitions. On September 1, 2015, the Company completed its acquisition of all of the outstanding interests in Concept Capital Markets, LLC ("Concept") offering prime brokerage services and outsourced trading. On October 1, 2015 the Company completed its acquisition of all of the outstanding interests in Conifer Securities, LLC ("Conifer") representing the prime brokerage services division of Conifer Financial Services LLC. Following the acquisitions Concept was renamed Cowen Prime Services LLC ("Cowen Prime") and Conifer was renamed Cowen Prime Services Trading LLC ("Cowen Prime Trading"). Both are registered broker-dealers (members Financials Industry Regulatory Authority "FINRA" and SIPC). The acquisitions were completed for a combination of cash of $42.3 million , unregistered shares of the Company's Class A common stock valued at $3.0 million and contingent consideration of $3.6 million in the aggregate. In accordance with the terms of their respective purchase agreements, the Company is required to pay to the sellers a portion of future net profits over the target revenues of the businesses over the period through December 31, 2020. The Company estimated the contingent consideration using both the income approach (discounted cash flow method) and market approach (option pricing method) which requires the Company to make estimates and assumptions regarding the future cash flows, profits volatility and share price. Changes in these estimates and assumptions could have a significant impact on the amount recognized. The undiscounted amount can range from zero to $7.2 million . The acquisitions were accounted for under the acquisition method of accounting in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). As such, the results of operations for Concept and Conifer are included in the accompanying consolidated statements of operations since the dates of the respective acquisitions and the assets acquired, liabilities assumed and the resulting goodwill were recorded at their fair values within their respective line items on the accompanying consolidated statement of financial condition (see Note 9 ). The Company is currently in the process of finalizing the valuation for certain acquired assets of Concept and Conifer; therefore, the fair value measurements and goodwill as of December 31, 2015 are preliminary and subject to measurement period adjustments. The allocation of the purchase price to the net assets acquired will be finalized as necessary, up to one year after the acquisitions' respective closing dates, as the information becomes available. Both of the acquisitions were not deemed material individually but were material in the aggregate. The following table summarizes the aggregate preliminary purchase price allocation of net tangible and intangible assets acquired during the year ended December 31, 2015 . (dollars in thousands) Cash and cash equivalents $ 2,966 Receivable from brokers 5,327 Fixed assets 644 Fees receivable 983 Intangibles 19,900 Other assets 684 Payable to brokers (153 ) Compensation payable (1,667 ) Accounts payable, accrued expenses and other liabilities (3,250 ) Total net assets acquired $ 25,434 The Company believes that all of the acquired receivables reflected above in the preliminary allocation of the purchase price are recorded at fair value and are expected to be collected in full. Goodwill, which primarily relates to expected synergies from integrating the operations of the acquirees into the Company, is fully deductible for tax purposes and has been assigned to the broker-dealer segment of the Company. The Company recognized approximately $1.0 million of acquisition-related costs, including legal, accounting, and valuation services. These costs are included in professional, advisory and other fees in the accompanying consolidated statements of operations. Included in the accompanying consolidated statements of operations for the period from September 1, 2015 through December 31, 2015 are revenues of $13.4 million and net income of $1.4 million (excluding corporate allocated expenses) related to the Concept and Conifer combined results of operations. The following unaudited supplemental pro forma information presents consolidated financial results for the twelve month periods as if the acquisitions were completed as of January 1, 2014. This supplemental pro forma information has been prepared for comparative purposes only and is not intended to be indicative of what the Company's results would have been had the acquisitions been completed on January 1, 2014, nor does it purport to be indicative of any future results. For the years ended December 31, 2015 2014 (dollars in thousands, except per share data) (unaudited) Revenues $ 496,543 $ 473,192 Net income (loss) attributable to Cowen Group, Inc. common stockholders 40,613 167,238 Net income per common share: Basic $ 0.37 $ 1.45 Diluted $ 0.35 $ 1.39 Divestitures During the fourth quarter of 2014, the Company made a decision to wind down the operations of the securities lending business. The Company recorded impairment of goodwill in the amount of $2.3 million and impairment of unamortized intangibles of $0.9 million (See Note 9 ). The Company also wrote off the contingent liability due to the principals of the former entity of $2.1 million which is included in other revenues in the accompanying consolidated statements of operations. The Company also recognized certain expenses related to the termination of services. The Company considered the guidance for discontinued operations and determined that winding down the securities lending business does not represent a significant strategic shift in operations, therefore, the Company did not present it as discontinued operations. On September 29, 2014, the Company entered into an agreement with Neuberger Berman to sell its interest in Orchard Square Partners (“OSP”), which manages a global long/short credit investment strategy and had approximately $420.8 million in client assets at December 31, 2014 . The transaction closed on December 31, 2014 and therefore OSP was deconsolidated on that date. During the year ended December 31, 2014, the Company consolidated the results of operations. As of December 31, 2014, the total assets, liabilities and net assets attributable to the Company and non-controlling interest holders were not material. In accordance with the terms of the sale agreement all of the net assets of OSP as of December 31, 2014 were allocated to the Company and the non-controlling members of OSP in accordance with the respective ownership interests and were distributed soon thereafter. The total sale price was $4.5 million which is included in other revenues in the accompanying consolidated statements of operations. In addition, in accordance with the terms of the agreement, Neuberger Berman is also required to pay the Company a portion of future net revenues of the credit business if certain revenue targets are achieved through 2018. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies a. Basis of Presentation These consolidated financial statements are prepared in accordance with US GAAP as promulgated by the Financial Accounting Standards Board ("FASB") through Accounting Standards Codification as the source of authoritative accounting principles in the preparation of financial statements, and include the accounts of the Company, its operating and other subsidiaries, and entities in which the Company has a controlling financial interest or a substantive, controlling general partner interest. All material intercompany transactions and balances have been eliminated on consolidation. Certain fund entities that are consolidated in these accompanying consolidated financial statements, as further discussed below, are not subject to the consolidation provisions with respect to their own controlled investments pursuant to their specialized accounting. The Company serves as the managing member/general partner and/or investment manager to affiliated fund entities which it sponsors and manages. Funds in which the Company has a controlling financial interest are consolidated with the Company pursuant to US GAAP as described below. Consequently, the Company's consolidated financial statements reflect the assets, liabilities, income and expenses of these funds on a gross basis. The ownership interests in these funds that are not owned by the Company are reflected as redeemable non-controlling interests in consolidated subsidiaries in the accompanying consolidated financial statements. The management fees and incentive income earned by the Company from these funds are eliminated in consolidation. Certain reclassifications have been made to prior period amounts in order to conform to current period presentation. During 2014, prior-period amounts for various costs relating to trading and execution activities previously presented as other expenses and communications (client connectivity charges) are now presented as floor brokerage and trade execution costs in the consolidated statements of operations to conform to the current year’s presentation. b. Principles of consolidation The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting operating entity ("VOE") or a variable interest entity ("VIE") under US GAAP. Voting Operating Entities — VOEs are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently and (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity's economic performance. Under US GAAP, the usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. Accordingly, the Company consolidates VOEs in which it owns a majority of the entity's voting shares or units. US GAAP also provides that a general partner of a limited partnership (or a managing member, in the case of a limited liability company) is presumed to control the partnership, and thus should consolidate it, unless a simple majority of the limited partners has the right to remove the general partner without cause or to terminate the partnership. In accordance with these standards, the Company presently consolidates five entities deemed to be VOEs for which it acts as the general partner and investment manager. As of December 31, 2015 and 2014 , the Company consolidated the following funds: Ramius Enterprise LP (“Enterprise LP”) and Ramius Merger Fund LLC (the "Merger Fund") and as of the date that the following companies began operations: May 1, 2015, Quadratic Fund LLC ("Quadratic LLC"); September 1, 2015, Cowen Private Investments LP ("Cowen Private"); December 31, 2015, Ramius Archview Credit and Distressed Fund ("Archview Fund") (collectively the "Consolidated Funds") . RCG Linkem II LLC, an investment company, is consolidated during the period ended December 31, 2015 . It was formed to make an investment in a wireless broadband communication provider in Italy. Cowen AV Investment LLC, an investment company, was consolidated until the first quarter of 2015 when it was liquidated. It was formed to make an investment in a biotechnology company focused on developing gene therapies for certain medical needs. Ramius Co-Investment I LLC and Ramius Co-Investment II LLC, both investment companies, were formed to invest in biomedical companies that develop gene therapies for severe genetic disorders. Ramius Co-Investment I LLC was consolidated as of December 31, 2013 but was deconsolidated during the first quarter of 2014 when it was liquidated. Ramius Co-Investment II LLC was consolidated as of December 31, 2014 and was liquidated during the quarter ended September 30, 2014. The Company determined that all four investment companies are (or were) VOE's due to the Company's controlling equity interests held through the managing member and/or affiliates and control exercised by the managing member who is not subject to substantive removal rights. Variable Interest Entities— VIEs are entities that lack one or more of the characteristics of a VOE. In accordance with US GAAP, an enterprise must consolidate all VIEs of which it is the primary beneficiary. Under the US GAAP consolidation model for VIEs, an enterprise that (1) has the power to direct the activities of a VIE that most significantly impacts the VIE's economic performance, and (2) has an obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, is considered to be the primary beneficiary of the VIE and thus is required to consolidate it. However, the Financial Accounting Standards Board ("FASB") has deferred the application of the revised consolidation model for VIEs that meet the following conditions: (a) the entity has all the attributes of an investment company as defined under AICPA Audit and Accounting Guide, Investment Companies, or does not have all the attributes of an investment company but is an entity for which it is acceptable based on industry practice to apply measurement principles that are consistent with investment companies, (b) the reporting entity does not have explicit or implicit obligations to fund any losses of the entity that could potentially be significant to the entity, and (c) the entity is not a securitization entity, asset-backed financing entity or an entity that was formerly considered a qualifying special-purpose entity. The Company's involvement with its funds is such that all three of the above conditions are met for substantially all of the funds managed by the Company. Where the VIEs have qualified for the deferral, the analysis is based on previous consolidation rules. These rules require an analysis to (a) determine whether an entity in which the Company holds a variable interest is a variable interest entity and (b) whether the Company's involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (e.g., management and performance related fees), would be expected to absorb a majority of the VIE's expected losses, receive a majority of the VIEs expected residual returns, or both. If these conditions are met, the Company is considered to be the primary beneficiary of the VIE and thus is required to consolidate it. The Company reconsiders whether it is the primary beneficiary of a VIE by performing a periodic qualitative and/or quantitative analysis of the VIE that includes a review of, among other things, its capital structure, contractual agreements between the Company and the VIE, the economic interests that create or absorb variability, related party relationships and the design of the VIE. As of December 31, 2015 and 2014 , the Company consolidated three and two VIEs, respectively. As of December 31, 2015 and 2014 , the total net assets of the consolidated VIEs were $2.2 million and $2.0 million , respectively. The VIEs act as managing members/general partners and/or investment managers to affiliated fund entities which they sponsor and/or manage. The VIEs are financed through their operations and/or loan agreements with the Company. As of December 31, 2015 and 2014 , the Company holds variable interests in Ramius Enterprise Master Fund Ltd (“Enterprise Master”), Ramius Merger Master Fund Ltd ("Merger Master"), and as of May 1, 2015, Quadratic Master Fund LTD (Quadratic Master Fund") (collectively the “Unconsolidated Master Funds”) through the Consolidated Funds. Investment companies, which account for their investments under the specialized industry accounting guidance for investment companies prescribed under US GAAP, are not subject to the consolidation provisions for their investments. Therefore, the Company has not consolidated the Unconsolidated Master Funds. In the ordinary course of business, the Company also sponsors various other entities that it has determined to be VIEs. These VIEs are primarily funds and real estate entities for which the Company serves as the general partner, managing member and/or investment manager with decision-making rights. The Company does not consolidate the Unconsolidated Master Funds or real estate entities that are VIEs as it has concluded that it is not the primary beneficiary in each instance. Fund investors are entitled to all of the economics of these VIEs with the exception of the management fee and incentive income, if any, earned by the Company. The Company's involvement with funds and real estate entities that are unconsolidated VIEs is limited to providing investment management services in exchange for management fees and incentive income. Although the Company may advance amounts and pay certain expenses on behalf of the funds and real estate entities that it considers to be VIEs, it does not provide, nor is it required to provide, any type of substantive financial support to these entities outside of regular investment management services (see Note 5 for additional disclosures on VIEs). Equity Method Investments — For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company uses the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge when the loss in value is deemed other than temporary. Other — If the Company does not consolidate an entity, apply the equity method of accounting or account for an investment under the cost method, the Company accounts for such entities (primarily, all securities of such entity which are bought and held principally for the purpose of selling them in the near term as trading securities) in accordance with US GAAP, at fair value with unrealized gains (losses) resulting from changes in fair value reflected within net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. Retention of Specialized Accounting — The Consolidated Funds are investment companies and apply specialized industry accounting for investment companies. The Company has retained this specialized accounting for these funds pursuant to US GAAP. The Company reports its investments on the consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within net realized and unrealized gains (losses) on investments and other transactions. Accordingly, the accompanying consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company. In addition, the Company's broker-dealer subsidiaries , Cowen and Company, LLC ("Cowen and Company"), ATM Execution LLC ("ATM Execution"), Cowen Prime, Cowen Prime Trading, ATM USA, LLC ("ATM USA") (liquidated during the first quarter of 2015) and Cowen Equity Finance LP ("Cowen Equity Finance") (liquidated during the first quarter of 2015), apply the specialized industry accounting for brokers and dealers in securities also prescribed under US GAAP. The Company also retains specialized accounting in consolidation. c. Use of estimates The preparation of the accompanying consolidated financial statements in conformity with US GAAP requires the management of the Company to make estimates and assumptions that affect the fair value of securities and other investments, the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the accompanying consolidated financial statements, the accounting for goodwill and identifiable intangible assets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. d. Cash and cash equivalents The Company considers investments in money market funds and other highly liquid investments with original maturities of three months or less which are deposited with a bank or prime broker to be cash equivalents. Cash and cash equivalents held at Consolidated Funds, although not legally restricted, are not available to fund the general liquidity needs of the Company. The Company may also exposed to credit risk as a result of cash being held at several banks. e. Valuation of investments and derivative contracts US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and Level 3 Fair value is determined based on pricing inputs that are unobservable and includes situations where there is little, if any, market activity for the asset or liability. The determination of fair value for assets and liabilities in this category requires significant management judgment or estimation. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Company. The Company considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company's perceived risk of that instrument. The Company and its operating subsidiaries act as the manager for the Consolidated Funds. Both the Company and the Consolidated Funds hold certain investments which are valued by the Company, acting as the investment manager. The fair value of these investments is generally estimated based on proprietary models developed by the Company, which include discounted cash flow analysis, public market comparables, and other techniques and may be based, at least in part, on independently sourced market information. The material estimates and assumptions used in these models include the timing and expected amount of cash flows, the appropriateness of discount rates used, and, in some cases, the ability to execute, timing of, and estimated proceeds from expected financings. Significant judgment and estimation goes into the selection of an appropriate valuation methodology as well as the assumptions used in these models, and the timing and actual values realized with respect to investments could be materially different from values derived based on the use of those estimates. The valuation methodologies applied impact the reported value of the Company's investments and the investments held by the Consolidated Funds in the consolidated financial statements. Certain of the Company's investments are relatively illiquid or thinly traded and may not be immediately liquidated on demand if needed. Fair values assigned to these investments may differ significantly from the fair values that would have been used had a ready market for the investments existed and such differences could be material . The Company primarily uses the “market approach” to value its financial instruments measured at fair value. In determining an instrument's level within the hierarchy, the Company categorizes the Company's financial instruments into three categories: securities, derivative contracts and other investments. To the extent applicable, each of these categories can further be divided between those held long or sold short. The Company has the option to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The election is made on an instrument by instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. The Company has elected the fair value option for its investments through Cowen Investments, LLC and certain investments it holds though its operating companies. This option has been elected because the Company believes that it is consistent with the manner in which the business is managed as well as the way that financial instruments in other parts of the business are recorded. Securities — Securities with values based on quoted market prices in active markets for identical assets are classified within level 1 of the fair value hierarchy. These securities include active listed equities, certain U.S. government and sovereign obligations, ETF's, mutual funds and certain money market securities. The Company does not adjust the quoted price for such instruments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price. Certain positions for which trading activity may not be readily visible, consisting primarily of convertible debt, corporate debt and loans and restricted equities, are stated at fair value and classified within level 2 of the fair value hierarchy. The estimated fair values assigned by management are determined in good faith and are based on available information considering, trading activity, broker quotes, quotations provided by published pricing services, counterparties and other market participants, and pricing models using quoted inputs, and do not necessarily represent the amounts which might ultimately be realized. As level 2 investments include positions that are not always traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability. Derivative contracts — Derivative contracts can be exchange-traded or privately negotiated over-the-counter (“OTC”). Exchange-traded derivatives, such as futures contracts and exchange-traded option contracts, are typically classified within level 1 or level 2 of the fair value hierarchy depending on whether or not they are deemed to be actively traded. OTC derivatives, such as generic forwards, swaps and options, have inputs which can generally be corroborated by market data and are therefore classified within level 2. OTC derivatives, such as swaps and options where market data is not readily available or observable are classified as level 3. Other investments — Other investments consist primarily of portfolio funds, real estate investments and equity method investments, which are valued as follows : i. Portfolio funds— Portfolio funds (“Portfolio Funds”) include interests in funds and investment companies which may be managed by the Company or its affiliates. The Company follows US GAAP regarding fair value measurements and disclosures relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The guidance permits, as a practical expedient, an entity holding investments in certain entities that either are investment companies as defined by the AICPA Audit and Accounting Guide, Investment Companies, or have attributes similar to an investment company, and calculate net asset value per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. In accordance with US GAAP, investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. ii. Real estate investments— Real estate debt and equity investments are valued at fair value. The fair value of real estate investments are estimated based on the price that would be received to sell an asset in an orderly transaction between marketplace participants at the measurement date. Real estate investments without a public market are valued based on assumptions and valuation techniques used by the Company. Such valuation techniques may include discounted cash flow analysis, prevailing market capitalization rates or earnings multiples applied to earnings from the investment, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties, consideration of the amount that currently would be required to replace the asset, as adjusted for obsolescence, as well as independent external appraisals. In general, the Company considers several valuation techniques when measuring the fair value of a real estate investment. However, in certain circumstances, a single valuation technique may be appropriate. Real estate investments are reviewed on a quarterly basis by the Company for significant changes at the property level or a significant change in the overall market which would impact the value of the real estate investment resulting in unrealized appreciation or depreciation. Real estate and capital markets are cyclical in nature. Property and investment values are affected by, among other things, the availability of capital, occupancy rates, rental rates and interest and inflation rates. In addition, the Company invests in real estate and real estate related investments for which no liquid market exists. The market prices for such investments may be volatile and may not be readily ascertainable. Amounts ultimately realized by the Company from investments sold may differ from the fair values presented, and the differences could be material. The Company's real estate investments are typically categorized as a level 3 investment within the fair value hierarchy as management uses significant unobservable inputs in determining their estimated fair value. See Notes 5 and 6 for further information regarding the Company's investments, including equity method investments, and fair value measurements. f. Due from/due to related parties The Company may advance amounts and pay certain expenses on behalf of employees of the Company or other affiliates of the Company. These amounts settle in the ordinary course of business. Such amounts are included in due from and due to related parties, respectively, on the accompanying consolidated statements of financial condition. g. Receivable from and payable to brokers Receivable from and payable to brokers, includes cash held at clearing brokers, amounts receivable or payable for unsettled transactions, monies borrowed and proceeds from short sales equal to the fair value of securities sold, but not yet purchased. Pursuant to the Company's prime broker agreements, these balances are presented net (assets less liabilities) across balances with the same broker. h. Securities borrowed and securities loaned Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced or received on a gross basis. The related rebates are recorded in the statement of operations as interest income and interest expense. Securities borrowed transactions require the Company to deposit cash collateral with the lender. With respect to securities loaned, the Company receives cash collateral from the borrower. The initial collateral advanced or received approximates or is greater than the market value of securities borrowed or loaned. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or returned, as necessary. Securities borrowed and loaned may also result in credit exposures for the Company in an event that the counterparties are unable to fulfill their contractual obligations. The Company minimizes its credit risk by continuously monitoring its credit exposure and collateral values by demanding additional or returning excess collateral in accordance with the netting provisions available in the master securities lending contracts in place with the counterparties. Fees and interest received or paid are recorded in interest and dividend income and interest expense, respectively, on an accrual basis. In cases where the fair value basis of accounting is elected, any resulting change in fair value is reported in trading revenues. Accrued interest income and expense are recorded in the same manner as under the accrual method. During the fourth quarter of 2014, the Company made a decision to wind down the operations of its securities lending business. At December 31, 2014 , the Company did not have any securities lending transactions for which fair value basis of accounting was elected. i. Fixed Assets Fixed assets are stated at cost less accumulated depreciation or amortization. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or lease term. When the Company commits to a plan to abandon fixed assets or leasehold improvements before the end of its original useful life, the estimated depreciation or amortization period is revised to reflect the shortened useful life of the asset. Other fixed assets are depreciated on a straight-line basis over their estimated useful lives. Asset Depreciable Lives Principal Method Telephone and computer equipment 3-8 years Straight-line Computer software 3-5 years Straight-line Furniture and fixtures 5-8 years Straight-line Leasehold improvements 5-15 years Straight-line Capitalized lease asset 5 years Straight-line j. Goodwill and intangible assets Goodwill represents the excess of the purchase price consideration of acquired companies over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is allocated to the Company's reporting units at the date the goodwill is initially recorded. Once goodwill has been allocated to the reporting units, it generally no longer retains its identification with a particular acquisition, but instead becomes identifiable with the reporting unit. As a result, all of the fair value of each reporting unit is available to support the value of goodwill allocated to the unit. In accordance with US GAAP, the Company tests goodwill for impairment on an annual basis, at December 31 st each year, or at an interim period if events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Under US GAAP, the Company tests goodwill for impairment by assessing the qualitative factors including, macroeconomic environment, industry and market specific conditions, financial performance and events specific to the reporting unit to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. Based on the results of the qualitative assessment the Company performs the two-step goodwill impairment test. The first step requires a comparison of the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the related goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds the fair value, there is an indication that the related goodwill might be impaired and the step two is performed to measure the amount of impairment, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit's goodwill with its carrying amount to measure the amount of impairment, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. In other words, the estimated fair value of the reporting unit is allocated to all of its assets and liabilities (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment is recognized in an amount equal to that excess. Goodwill impairment tests involve significant judgment in determining the estimates of future cash flows, discount rates, economic forecast and other assumptions which are then used in acceptable valuation techniques, such as the market approach (earning and or transactions multiples) and / or income approach (discounted cash flow method). Changes in these estimates and assumptions could have a significant impact on the fair value and any resulting impairment of goodwill. See Note 9 for further discussion. Intangible assets with finite lives are amortized over their estimated average useful lives. The Company does not have any intangible assets deemed to have indefinite lives. Intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that an asset or asset group's carrying value may not be fully recoverable. Similar to goodwill impairment test, an impairment loss, calculated as the difference between the estimated fair value and the carrying value of an asset or asset group, is recognized in the accompanying consolidated statements of operations if the sum of the estimated undiscounted cash flows relating to the asset or asset group is less than the corresponding carrying value. k. Debt Long-term debt is carried at the principal amount borrowed net of any discount/premium. The discount is accreted to interest expense using the effective interest method over the remaining life of the underlying debt obligations. Accrued but unpaid coupon interest is included in accrued expenses and other liabilities in the accompanying consolidated statements of financial condition. l. Deferred rent Deferred rent primarily consists of step rent, allowances from landlords and valuing the Company's lease properties in accordance with US GAAP. Step rent represents the difference between actual operating lease payments due and straight-line rent expense, which is recorded by the Company over the term of the lease, including the build-out period. This amount is recorded as deferred rent in the early years of the lease, when cash paymen |
Cash Collateral Pledged
Cash Collateral Pledged | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash Collateral Pledged | Cash Collateral Pledged As of December 31, 2015 and 2014 , the Company pledged cash collateral in the amount of $10.1 million and $8.3 million , respectively, which relates to letters of credit issued to the landlords of the Company's premises in New York City, Boston and San Francisco (See Note 19 ). |
Investments of Operating Entiti
Investments of Operating Entities and Consolidated Funds | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments of Operating Entities and Consolidated Funds | Investments of Operating Entities and Consolidated Funds a. Operating Entities Securities owned, at fair value Securities owned, at fair value are held by the Company and are considered held for trading. Substantially all equity securities are pledged to the clearing brokers under terms which permit the clearing broker to sell or re-pledge the securities to others subject to certain limitations. As of December 31, 2015 and 2014 , securities owned, at fair value consisted of the following: As of December 31, 2015 2014 (dollars in thousands) U.S. Government securities (a) $ 3,016 $ 2,010 Preferred stock (b) 25,563 15,070 Common stocks (b) 516,108 597,476 Convertible bonds (c) 819 900 Corporate bonds (d) 47,192 159,557 Warrants and rights 3,059 1,417 Mutual funds (e) 14,477 15,776 $ 610,234 $ 792,206 (a) As of December 31, 2015 , maturities ranged from January 2016 to August 2016 with interest rates ranged between 0% to 5.95% . As of December 31, 2014 , maturities ranged from May 2015 to April 2016 with interest rates ranged between 0% to 5.95% . (b) Included in preferred stocks and common stocks are investments in securities for which the Company has elected the fair value option with the fair value of $7.7 million and $7.4 million , respectively, at December 31, 2015 and $14.3 million of common stocks at December 31, 2014. These investments were acquired in contemplation with merchant banking transactions. (c) As of December 31, 2015 , maturities ranged from July 2016 to March 2018 with interest rates ranged between 8% to 10.00% . As of December 31, 2014 , the maturity was February 2015 with an interest rate of 10.00% . (d) As of December 31, 2015 , maturities ranged from March 2016 to February 2046 and interest rates ranged between 3.25% to 9.00% . As of December 31, 2014 , maturities ranged from February 2015 to February 2046 and interest rates ranged between 5.63% to 11.54% . (e) Included in this amount as of December 31, 2015 and 2014 , are investments in affiliated funds of $13.4 million and $15.7 million , respectively. Receivable on and Payable for derivative contracts, at fair value The Company's direct involvement with derivative financial instruments includes futures, currency forwards, equity swaps, and options. The Company's derivatives trading activities exposes the Company to certain risks, such as price and interest rate fluctuations, volatility risk, credit risk, counterparty risk, foreign currency movements and changes in the liquidity of markets. Upon issuance of the Company's cash convertible unsecured senior notes ("Convertible Notes") (See Note 19 ), the Company recognized the embedded cash conversion option at fair value of $35.7 million which is valued as of December 31, 2015 at $18.2 million and is included in payable for derivative contracts in the accompanying consolidated statement of financial condition. Also, on the date of issuance of the Convertible Notes, the Company entered into a separate cash convertible note economic hedge transaction (the "Hedge Transaction") with a counterparty (the “Option Counterparty”) whereby, the Company purchased a cash settled option contract with terms identical to the conversion option embedded in the Convertible Notes and simultaneously sold an equity settled warrant with a higher strike price. The Hedge Transaction is expected to reduce the Company’s exposure to potential cash payments in excess of the principal amount of converted notes that the Company may be required to make upon conversion of the Convertible Notes. The Company paid a premium of $35.7 million for the option under the Hedge Transaction and received a premium of $15.2 million for the equity settled warrant transaction, for a net cost of $20.5 million . The Hedge Transaction is valued at $18.2 million as of December 31, 2015 and is included in receivable on derivative contracts in the accompanying consolidated statement of financial condition. Aside from the initial premium paid, the Company will not be required to make any cash payments under the Hedge Transaction and could be entitled to receive an amount of cash from the Option Counterparty generally equal to the amount by which the market price per share of common stock exceeds the strike price of the Hedge Transaction during the relevant valuation period. The warrants cover 28,048,786 shares of the Company's Class A common stock and have an initial exercise price of $7.18 per share. The warrants expire over a period of 80 trading days beginning on November 14, 2018. The warrant transaction could have a dilutive effect to the extent that the market value per share of the Company’s Class A common stock exceeds the applicable strike price of the warrants. The Company's long and short exposure to derivatives is as follows: Receivable on derivative contracts As of December 31, 2015 2014 Number of contracts / Notional Value Fair value Number of contracts / Notional Value Fair value (dollars in thousands) Futures $ 9,416 $ 189 $ 3,041 $ 75 Currency forwards $ 67,862 659 $ 23,961 310 Equity swaps $ 118,488 2,327 $ 12,904 251 Options other (a) 289,433 31,456 367,441 48,201 Foreign currency options $ 283,797 4,987 $ 32,200 1,040 $ 39,618 $ 49,877 (a) Includes index, equity, commodity future and cash conversion options. Payable for derivative contracts As of December 31, 2015 2014 Number of contracts / Notional Value Fair value Number of contracts / Notional Value Fair value (dollars in thousands) Futures $ 11,995 $ 101 $ 2,213 $ 33 Currency forwards $ 44,156 463 $ — — Equity and credit default swaps $ 7,605 71 $ 18,352 1,603 Options other (a) 16,632 20,548 22,043 39,694 $ 21,183 $ 41,330 (a) Includes index, equity, commodity future and cash conversion options. The following tables present the gross and net derivative positions and the related offsetting amount, as of December 31, 2015 and 2014 . Gross amounts not offset in the Statement of Financial Condition Gross amounts recognized Gross amounts offset on the Consolidated Statements of Financial Condition (a) Net amounts included on the Consolidated Statements of Financial Condition Financial instruments Cash Collateral pledged (b) Net amounts (dollars in thousands) As of December 31, 2015 Receivable on derivative contracts, at fair value $ 39,618 $ — $ 39,618 $ — $ 9,339 $ 30,279 Payable for derivative contracts, at fair value 21,183 — 21,183 — 534 20,649 As of December 31, 2014 Receivable on derivative contracts, at fair value 49,877 — 49,877 — 2,588 47,289 Payable for derivative contracts, at fair value 41,330 — 41,330 — 1,603 39,727 (a) Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. (b) Includes the amount of collateral held or posted. The realized and unrealized gains/(losses) related to derivatives trading activities were $(4.6) million , $(0.5) million and $4.4 million for the years ended December 31, 2015 , 2014 and 2013, respectively, and are included in other income in the accompanying consolidated statements of operations. Pursuant to the various derivatives transactions discussed above, except for the cash convertible note hedge (see Note 19 ) and exchange traded derivatives, the Company is required to post/receive collateral. As of December 31, 2015 and 2014 , collateral consisting of $27.1 million and $5.5 million of cash, respectively, is included in receivable from brokers and payable to brokers on the accompanying consolidated statements of financial condition. As of December 31, 2015 and 2014 all derivative contracts were with multiple major financial institutions. Other investments As of December 31, 2015 and 2014 , other investments included the following: As of December 31, 2015 2014 (dollars in thousands) (1) Portfolio Funds, at fair value $ 111,360 $ 103,466 (2) Real estate investments, at fair value 1,921 2,175 (3) Equity method investments 27,067 61,443 (4) Lehman claims, at fair value 299 380 $ 140,647 $ 167,464 (1) Portfolio Funds, at fair value The Portfolio Funds, at fair value as of December 31, 2015 and 2014 , included the following: As of December 31, 2015 2014 (dollars in thousands) HealthCare Royalty Partners (a)(*) $ 12,127 $ 11,935 HealthCare Royalty Partners II (a)(*) 6,006 6,648 Orchard Square Partners Credit Fund LP (b) 4,170 11,532 Starboard Value and Opportunity Fund LP (c)(*) 20,369 21,792 Starboard Partners Fund LP (d)(*) 14,036 14,652 Starboard Leaders Fund LP (e)(*) 1,080 1,367 Formation8 Partners Fund I, L.P. (f) 19,454 11,283 Formation8 Partners Hardware Fund I, L.P. (g) 1,101 — RCG LV Park Lane LLC (h) (*) 809 642 RCGL 12E13th LLC (i) (*) 609 638 RCG Longview Debt Fund V, L.P. (i) (*) 18,147 12,876 RCG LPP SME Co-Invest, L.P. (j) (*) 2,468 — Other private investment (k) (*) 6,909 7,324 Other affiliated funds (l)(*) 4,075 2,777 $ 111,360 $ 103,466 * These portfolio funds are affiliates of the Company. The Company has no unfunded commitments regarding the portfolio funds held by the Company except as noted in Note 18 . (a) HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis. (b) Orchard Square Partners Credit Fund LP has a quarterly redemption policy with a 60 day notice period and a 4% penalty on redemptions of investments of less than a year in duration. (c) Starboard Value and Opportunity Fund LP permits quarterly withdrawals upon 90 days notice. (d) Starboard Partners Fund LP permits redemptions on a semi-annual basis on 180 days prior written notice subsequent to an initial two year lock up. (e) Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days prior written notice at any time following the first anniversary of an investors initial capital contribution. (f) Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated. (g) Formation8 Partners Hardware Fund I, L.P. is a private equity fund which invests in early stage and growth hardware companies. Distributions will be made when the underlying investments are liquidated. (h) RCG LV Park Lane LLC is a single purpose entity formed to participate in a joint venture which acquired, at a discount, the mortgage notes on a portfolio of multifamily real estate properties located in Birmingham, Alabama. RCG LV Park Lane LLC is a private equity structure and therefore distributions will be made when the underlying investments are liquidated. (i) RCGL 12E13th LLC and RCG Longview Debt Fund V, L.P. are real estate private equity structures and therefore distributions will be made when the underlying investments are liquidated. (j) RCG LPP SME Co-Invest, L.P. is a single purpose entity formed to participate in a joint venture which acquired two fully entitled residential development sites in the New York City metro area. RCG LPP SME Co-Invest, L.P. is a private equity structure and therefore distributions will be made when the underlying investments are liquidated. (k) Other private investment represents the Company's closed end investment in a portfolio fund that invests in a wireless broadband communication provider in Italy. (l) The majority of these funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated. (2) Real estate investments, at fair value Real estate investments as of December 31, 2015 and 2014 are carried at fair value and include real estate equity investments held by RCG RE Manager, LLC (“RE Manager”), a real estate operating subsidiary of the Company, of $1.9 million and $2.2 million , respectively. (3) Equity method investments Equity method investments include investments held by the Company in several operating companies whose operations primarily include the day to day management of a number of real estate funds, including the portfolio management and administrative services related to the acquisition, disposition, and active monitoring of the real estate funds' underlying debt and equity investments. The Company's ownership interests in these equity method investments range from 20% to 55% . The Company holds a majority of the outstanding ownership interest (i.e., more than 50%) in RCG Longview Partners II, LLC. The operating agreement that governs the management of day-to-day operations and affairs of this entity stipulates that certain decisions require support and approval from other members in addition to the support and approval of the Company. As a result, all operating decisions made in this entity requires the support of both the Company and an affirmative vote of a majority of the other managing members who are not affiliates of the Company. As the Company does not possess control over any of these entities, the presumption of consolidation has been overcome pursuant to current accounting standards and the Company accounts for these investments under the equity method of accounting. Also included in equity method investments are the investments in (a) HealthCare Royalty Partners General Partners and (b) Starboard Value (and certain related parties) which serves as an operating company whose operations primarily include the day to day management (including portfolio management) of several activist hedge funds and related managed accounts. The Company holds a non-controlling financial interest in Starboard Value entities. The independent portfolio managers are responsible for activities which are significant to the overall business and hold the majority of the equity interest. The Starboard Value entities were formed to provide a full range of investment advisory and management services and act as a general partner, investment advisor, and pension advisor or in similar capacity to clients. In accordance with the respective offering documents of the underlying funds, Starboard Value entities are entitled to a fixed percentage of management fee and performance fees. The Company and the Starboard principals reached an agreement in the fourth quarter of 2015 to sell a portion of the Company's ownership interest in the activist business of Starboard Value to the Starboard principals for a gain of $14.4 million which is recorded in Other Income (Loss) in the accompanying Consolidated Statements of Operations and Due From Related Parties in the accompanying Consolidated Statements of Financial Condition. The Company entered into definitive agreements with respect to, and closed, this transaction with an effective date of December 31, 2015. In connection with the transaction, certain service agreements between the Company and Starboard Value were terminated. Starboard Value will also assume certain employees from the Company and will procure certain services directly which were previously provided by the Company. Out of the total sale price, $9.6 million is being financed through the profits of the relevant Starboard entities over a five year period and earns interest at 5% per annum. During the second quarter of 2014, CBOE SE initiated a plan to wind down its operations and liquidate its assets and liabilities. As a result, the Company determined that the carrying value of its investment in CBOE SE was no longer recoverable and reassessed it for impairment. The Company recognized an impairment loss of $0.8 million , during the second quarter of 2014, which was deemed to be other than temporary. The impairment loss was measured based on the estimated recovery under the liquidation plan submitted to the creditors and the regulators and potential sale to a third party and is included in other income (loss) on the accompanying consolidated statement of operations. The Company recorded no other impairment charges in relation to its equity method investments for the years ended December 31, 2015, 2014 and 2013. The following table summarizes equity method investments held by the Company: As of December 31, 2015 2014 (dollars in thousands) RCG Longview Debt Fund IV Management, LLC $ 331 $ 676 RCG Longview Debt Fund V Partners, LLC 4,655 2,684 HealthCare Royalty GP, LLC 989 973 HealthCare Royalty GP II, LLC 1,017 1,125 HealthCare Royalty GP III, LLC 88 62 CBOE Stock Exchange, LLC — 611 Starboard Value LP 15,769 48,772 RCG Longview Partners, LLC — 237 RCG Longview Management, LLC 656 1,117 RCG Urban American, LLC 120 422 RCG Urban American Management, LLC 379 379 RCG Longview Equity Management, LLC 114 316 Urban American Real Estate Fund II, LLC 1,211 2,329 RCG Kennedy House, LLC 304 509 Other 1,434 1,231 $ 27,067 $ 61,443 For the year ended December 31, 2014, three equity method investments have met the significance criteria as defined under Regulation S-X Rule 4-08(g) of the SEC guidance. As such, the Company is presenting the following summarized financial information: As of December 31, 2015 2014 (dollars in thousands) Assets Cash $ 1,060 $ 4,595 Performance & management fee receivable 32,638 108,355 Investments in Portfolio Funds, at fair value 18,797 12,403 Other assets 2,327 1,485 Liabilities 10,426 12,632 Equity $ 44,396 $ 114,206 Year Ended December 31, 2015 2014 2013 (dollars in thousands) Revenues $ 36,641 $ 129,203 $ 41,879 Expenses (20,658 ) (20,362 ) (11,602 ) Net realized and unrealized gains (losses) 4,258 4,563 1,566 Net Income $ 20,241 $ 113,404 $ 31,843 For the period ended December 31, 2015 , equity method investments held by the Company in aggregate have met the significance criteria as defined under SEC guidance. As such, the Company is required to present summarized financial information for these significant investees for the years ended December 31, 2015 , 2014 and 2013 and such information is as follows. As of December 31, 2015 2014 (dollars in thousands) Assets $ 118,835 $ 196,710 Liabilities 21,349 21,303 Equity $ 97,486 $ 175,407 Year Ended December 31, 2015 2014 2013 (dollars in thousands) Revenues $ 49,669 $ 160,224 $ 78,222 Expenses (30,516 ) (46,575 ) (49,340 ) Net realized and unrealized gains (losses) 13,221 14,325 18,589 Net Income $ 32,374 $ 127,974 $ 47,471 As of December 31, 2015 and 2014 , the Company's share of losses in its equity method investment in RCG Longview Partners II, LLC has exceeded the carrying amount recorded in this investee. These amounts are included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated statements of financial condition. RCG Longview Partners II, LLC, as general partner to a real estate fund, has reversed previously recorded incentive income allocations and has recorded a current clawback obligation to the limited partners in the fund. This obligation is due to a change in unrealized value of the fund on which there have previously been distributed carried interest realizations; however, the settlement of a potential obligation is not due until the end of the life of the respective fund. As the Company is obligated to return previous distributions it received from RCG Longview Partners II, LLC, it has continued to record its share of gains/losses in the investee including reflecting its share of the clawback obligation in the amount of $6.2 million . The Company's income (loss) from equity method investments was $(3.3) million , $49.1 million , $16.1 million for the years ended December 31, 2015 , 2014 and 2013, respectively, and is included in net gains (losses) on securities, derivatives and other investments on the accompanying consolidated statements of operations. (4) Lehman Claims, at fair value Lehman Brothers International (Europe) (“LBIE”), through certain affiliates, was a prime broker to the Company, and the Company held cash and cash equivalent balances with LBIE. On September 15, 2008, LBIE was placed into administration (the “Administration”) in the United Kingdom and, as a result, the assets held by the Company in its LBIE accounts were frozen at LBIE. The assets which the Company believed were held at LBIE at the time of Administration (the “Total Net Equity Claim”) consisted of $1.0 million , which represented an unsecured claim against LBIE. The total amounts received to date in respect of the Company’s unsecured claim against LBIE are approximately $1.0 million , representing 100.0% of its agreed claim. The Company may receive further distributions in respect of its claim, but the amount and timing of these distributions remains uncertain. The Company does not expect future distributions to be material. Securities sold, not yet purchased, at fair value Securities sold, not yet purchased, at fair value represent obligations of the Company to deliver a specified security at a contracted price and, thereby, create a liability to purchase that security at prevailing prices. The Company's liability for securities to be delivered is measured at their fair value as of the date of the consolidated financial statements. However, these transactions result in off-balance sheet risk, as the Company's ultimate cost to satisfy the delivery of securities sold, not yet purchased, at fair value may exceed the amount reflected in the accompanying consolidated statements of financial condition. Substantially all equity securities and options are pledged to the clearing broker under terms which permit the clearing broker to sell or re-pledge the securities to others subject to certain limitations. As of December 31, 2015 and 2014 , securities sold, not yet purchased, at fair value consisted of the following: As of December 31, 2015 2014 (dollars in thousands) Common stocks $ 257,101 $ 207,815 Corporate bonds (a) 58 60 $ 257,159 $ 207,875 (a) As of December 31, 2015 and 2014 , the maturity was January 2026 with an interest rate of 5.55% . Securities lending and borrowing transactions The following tables present the contractual gross and net securities borrowing and lending agreements and the related offsetting amount, as of December 31, 2014 . During the first quarter of 2015 this business was completely liquidated. Gross amounts not offset in the Statement of Financial Condition Gross amounts recognized Gross amounts offset on the Consolidated Statements of Financial Condition (a) Net amounts included on the Consolidated Statements of Financial Condition Additional Amounts Available Financial instruments Cash Collateral pledged (b) Net amounts (dollars in thousands) As of December 31, 2014 Securities borrowed $ 676,100 $ — $ 676,100 $ (15,655 ) $ (660,445 ) $ — $ — Securities loaned 682,493 — 682,493 (2,441 ) (680,052 ) — — (a) Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. (b) Includes the amount of cash collateral held/posted. Variable Interest Entities The total assets and liabilities of the variable interest entities for which the Company has concluded that it holds a variable interest, but for which it is not the primary beneficiary, are $3.1 billion and $472.4 million as of December 31, 2015 and $3.0 billion and $499.2 million as of December 31, 2014 , respectively. In addition, the maximum exposure relating to these variable interest entities as of December 31, 2015 was $321.9 million , and as of December 31, 2014 was $260.9 million , all of which is included in other investments, at fair value in the accompanying consolidated statements of financial condition. The exposure to loss primarily relates to the Consolidated Feeder Funds' investment in their Unconsolidated Master Funds as of December 31, 2015 and 2014 . Other On December 22, 2015, the Company, through a wholly owned Luxembourg subsidiary, completed the purchase of the net assets in Hollenfels from a counterparty unrelated to the Company. The purchase price for Hollenfels was $469.8 million . This acquisition was accounted for as an asset acquisition in accordance with US GAAP because upon separation from the transferor, Hollenfels does not meet the definition of a business. The Company intends to provide third party reinsurance coverage through Hollenfels, with a view of building a sustainable premium base slowly, with adequate protections against large loss events as deemed appropriate by the Company's management. (See Note 17). b. Consolidated Funds Securities owned, at fair value As of December 31, 2015 , securities owned, at fair value, of $32.0 million represents various private investments in shares of preferred stock of biotechnology companies held by Cowen Private. Other investments, at fair value As of December 31, 2015 and 2014 other investments, at fair value, held by the Consolidated Funds are comprised of: As of December 31, 2015 2014 (dollars in thousands) (1) Portfolio Funds $ 263,818 $ 188,884 (2) Lehman claims — 493 $ 263,818 $ 189,377 Investments in Portfolio Funds, at fair value As of December 31, 2015 and 2014 , investments in Portfolio Funds, at fair value, included the following: As of December 31, 2015 2014 (dollars in thousands) Investments of Enterprise LP $ 111,075 $ 138,253 Investments of Merger Fund 74,348 50,631 Investments of Quadratic LLC 78,395 — $ 263,818 $ 188,884 Consolidated portfolio fund investments of Enterprise LP Enterprise LP operates under a “master-feeder” structure, whereby Enterprise Master's shareholders are Enterprise LP and RCG II Intermediate Fund, L.P. The consolidated investments in Portfolio Funds include Enterprise LP's investment of $111.1 million and $138.3 million in Enterprise Master as of December 31, 2015 and 2014 , respectively. On May 12, 2010, the Company announced its intention to close Enterprise Master. Prior to this announcement, strategies utilized by Enterprise Master included merger arbitrage and activist investing, investments in distressed securities, convertible hedging, capital structure arbitrage, equity market neutral, investments in private placements of convertible securities, proprietary mortgages, structured credit investments, investments in mortgage backed securities and other structured finance products, investments in real estate and real property interests, structured private placements and other relative value strategies. Enterprise Master had broad investment powers and maximum flexibility in seeking to achieve its investment objective. Enterprise Master was permitted to invest in equity securities, debt instruments, options, futures, swaps, credit default swaps and other derivatives. As Enterprise Master winds down its positions, it will return capital to its investors. There are no unfunded commitments at Enterprise LP. Consolidated portfolio fund investments of Merger Fund The Merger Fund operates under a “master-feeder” structure, whereby Ramius Merger Master Ltd's ("Merger Master") shareholders are Merger Fund and Ramius Merger Fund Ltd. The consolidated investments in Portfolio Funds include Merger Fund's investment of $74.3 million and $50.6 million in Merger Master as of December 31, 2015 and 2014 , respectively. The Merger Master’s investment objective is to achieve consistent absolute returns while emphasizing the preservation of investor capital. The Merger Master seeks to achieve these objectives by taking a fundamental, research-driven approach to investing, primarily in the securities of issuers engaged in, or subject to, announced (or unannounced but otherwise anticipated) extraordinary corporate transactions, which may include, but are not limited to, mergers, acquisitions, leveraged buyouts, tender offers, hostile takeover bids, sale processes, exchange offers, and recapitalizations. Merger Master invests in the securities of one or more issuers engaged in or subject to such extraordinary corporate transactions. Merger Master typically seeks to derive a profit by realizing the price differential, or “spread,” between the market price of securities purchased or sold short and the market price or value of securities realized in connection with the completion or termination of the extraordinary corporate transaction, or in connection with the adjustment of market prices in anticipation thereof, while seeking to minimize the market risk associated with the aforementioned investment activities. Merger Master will, depending on markets conditions, generally focus the majority of its investment program on announced transactions. If the investment manager of Merger Master considers it necessary, it may either alone or as part of a group, also initiate shareholder actions seeking to maximize value. Such shareholder actions may include, but are not limited to, re-orienting management’s focus or initiating the sale of the company (or one or more of its divisions) to a third party. There are no unfunded commitments at Merger Fund. Consolidated portfolio fund investments of Quadratic Fund LLC Quadratic LLC operates under a “master-feeder” structure, whereby Quadratic Master Fund Ltd's ("Quadratic Master") shareholders are Quadratic Fund LLC and Quadratic Fund Ltd. The consolidated investments in Portfolio Funds include Quadratic Fund LLC's investment of $78.4 million in Quadratic Master as of December 31, 2015 . The Quadratic Master’s investment objective is to achieve attractive, risk-adjusted rates of return through the use of proprietary fundamental global macro and options/swaptions based strategies. Quadratic Master’s strategy is primarily executed via options and swaptions. Quadratic Master will pursue absolute returns in all market environments. Occasionally, Quadratic Master may use dividend swaps, credit default swaps, interest rate swaps, inflation swaps, futures, foreign currency forwards, tranches and other delta one products as a hedge against existing options positions or when the investment manager believes that the payoff possibilities thereof are sufficiently asymmetric as to exhibit option-like qualities. There are no unfunded commitments at Quadratic Fund. (2) Lehman Claims, at fair value With respect to the aforementioned Lehman claims, the Total Net Equity Claim of Enterprise Master based on the value of assets at the time of Lehman's insolvency held directly by Enterprise Master and through Enterprise Master's ownership interest in affiliated funds consisted of $24.3 million . As of December 31, 2015 , Enterprise Master has received distributions totaling approximately $37.2 million in respect of its claim. Enterprise Master does not expect to receive any further distributions in respect of its claim. Indirect Concentration of the Underlying Investments Held by Consolidated Funds From time to time, either directly or indirectly through its investments in the Consolidated Funds, the Company may maintain exposure to a particular issue or issuer (both long and/or short) which may account for 5% or more of the Company's equity. Based on information that is available to the Company as of December 31, 2015 and 2014 , the Company assessed whether or not its interests in an issuer for which the Company's pro-rata share exceeds 5% of the Company's equity. There were no indirect concentrations that exceed 5% of the Company's equity as of December 31, 2015 and 2014 . Underlying Investments of Unconsolidated Funds Held by Consolidated Funds Enterprise Master and Merger Master Enterprise LP's investment in Enterprise Master represents Enterprise LP's proportionate share of Enterprise Master's net assets; as a result, the investment balances of Enterprise Master reflected below may exceed the net investment which Enterprise LP has recorded. Merger Fund's investment in Merger Master represents Merger Fund's proportionate share of Merger Master's net assets; as a result, the investment balances of Merger Master reflected below may exceed the net investment which Merger Fund has recorded. The following tables present summarized investment information for the underlying investments and derivatives held by Enterprise Master and Merger Master as of December 31, 2015 and 2014 : Securities owned by Enterprise Master, at fair value As of December 31, 2015 2014 (dollars in thousands) Bank debt $ — $ 20 Common stock 724 1,659 Preferred stock 1,484 576 Private equity — 587 Restricted stock 124 124 Rights 321 2,802 Trade claims 128 128 $ 2,781 $ 5,896 Receivable/(Payable) on derivative contracts, at fair value, owned by Enterprise Master As of December 31, 2015 2014 Description (dollars in thousands) Currency forwards $ (4 ) $ 64 $ (4 ) $ 64 Portfolio Funds, owned by Enterprise Master, at fair value A |
Fair Value Measurements for Ope
Fair Value Measurements for Operating Entities and Consolidated Funds | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements for Operating Entities and Consolidated Funds | Fair Value Measurements for Operating Entities and Consolidated Funds The following table presents the assets and liabilities that are measured at fair value on a recurring basis on the accompanying consolidated statements of financial condition by caption and by level within the valuation hierarchy as of December 31, 2015 and 2014 : Assets at Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total (dollars in thousands) Operating Entities Securities owned US Government securities $ 3,016 $ — $ — $ 3,016 Preferred stock 7,891 4,800 12,872 25,563 Common stocks 505,303 7,527 3,278 516,108 Convertible bonds — — 819 819 Corporate bonds — 47,192 — 47,192 Warrants and rights 487 — 2,572 3,059 Mutual funds 14,477 — — 14,477 Receivable on derivative contracts, at fair value Futures 189 — — 189 Currency forwards — 659 — 659 Equity swaps — 2,327 — 2,327 Options 11,895 6,354 18,194 36,443 Other investments Real estate investments — — 1,921 1,921 Lehman claim — — 299 299 Consolidated funds Preferred stock — — 32,000 32,000 $ 543,258 $ 68,859 $ 71,955 $ 684,072 Percentage of total assets measured at fair value 79.4 % 10.1 % 10.5 % Portfolio funds measured at net asset value (a) 111,360 Consolidated funds' portfolio funds measured at net asset value (a) 263,818 Equity method investments 27,067 Total investments $ 1,086,317 Liabilities at Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total (dollars in thousands) Securities sold, not yet purchased Common stocks $ 257,101 $ — $ — $ 257,101 Corporate bonds — 58 — 58 Payable for derivative contracts, at fair value Futures 101 — — 101 Currency forwards — 463 — 463 Equity and credit default swaps — 71 — 71 Options 2,354 — 18,194 20,548 Accounts payable, accrued expenses and other liabilities Contingent consideration liability (b) — — 6,158 6,158 $ 259,556 $ 592 $ 24,352 $ 284,500 Percentage of total liabilities measured at fair value 91.2 % 0.2 % 8.6 % (a) In accordance with US GAAP, certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. (b) In accordance with the terms of the purchase agreements for acquisitions that closed during 2012 and the third and fourth quarter of 2015, the Company is required to pay to the sellers a portion of future net income of the acquired businesses, if certain revenue targets are achieved through the periods ended August 2016, December 2020, and December 2018, respectively. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts as of December 31, 2015 can range from $0.1 million to $10.0 million . Assets at Fair Value as of December 31, 2014 Level 1 Level 2 Level 3 Total (dollars in thousands) Operating Entities Securities owned US Government securities $ 2,010 $ — $ — $ 2,010 Preferred stock — 2,553 12,517 15,070 Common stocks 578,934 18,130 412 597,476 Convertible bonds — — 900 900 Corporate bonds — 159,557 — 159,557 Warrants and rights 95 — 1,322 1,417 Mutual funds 15,776 — — 15,776 Receivable on derivative contracts, at fair value Futures 75 — — 75 Currency forwards — 310 — 310 Equity swaps — 251 — 251 Options 10,462 1,972 36,807 49,241 Other investments Real estate investments — — 2,175 2,175 Lehman claim — — 380 380 Consolidated funds Lehman claim — — 493 493 $ 607,352 $ 182,773 $ 55,006 $ 845,131 Percentage of total assets measured at fair value 71.9 % 21.6 % 6.5 % Portfolio funds measured at net asset value (a) 103,466 Consolidated funds' portfolio funds measured at net asset value (a) 188,884 Equity method investments 61,443 Total investments $ 1,198,924 Liabilities at Fair Value as of December 31, 2014 Level 1 Level 2 Level 3 Total (dollars in thousands) Securities sold, not yet purchased Common stocks $ 207,815 $ — $ — $ 207,815 Corporate bonds — 60 — 60 Payable for derivative contracts, at fair value Futures 33 — — 33 Equity and credit default swaps — 1,603 — 1,603 Options 2,887 — 36,807 39,694 Accounts payable, accrued expenses and other liabilities Contingent consideration liability (b) — — 4,083 4,083 $ 210,735 $ 1,663 $ 40,890 $ 253,288 Percentage of total liabilities measured at fair value 83.2 % 0.7 % 16.1 % (a) In accordance with US GAAP, certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. (b) In accordance with the terms of a purchase agreement for an acquisitions that closed during 2012, the Company is required to pay to the sellers a portion of future net income of the acquired businesses, if certain revenue targets are achieved through the period ended August 2016. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts can range from $0.9 million to $7.1 million . The following table includes a rollforward of the amounts for the years ended December 31, 2015 and 2014 , for financial instruments classified within level 3. The classification of a financial instrument within level 3 is based upon the significance of the unobservable inputs to the overall fair value measurement. Year Ended December 31, 2015 Balance at December 31, 2014 Transfers in Transfers out Purchases/(covers) (Sales)/shorts Realized and Unrealized gains/losses Balance at December 31, 2015 Change in unrealized gains/losses relating to instruments still held (1) (dollars in thousands) Operating Entities Preferred stock $ 12,517 $ — $ (11,322 ) (a) (b) $ 14,850 $ (6,665 ) $ 3,492 $ 12,872 $ 217 Common stocks 412 — — 3,398 (441 ) (91 ) 3,278 90 Convertible bonds 900 — — 250 — (331 ) 819 (331 ) Options, asset 36,807 — — — — (18,613 ) 18,194 (18,613 ) Options, liability 36,807 — — — — (18,613 ) 18,194 (18,613 ) Warrants and Rights 1,322 — — 824 (71 ) 497 2,572 715 Real estate 2,175 — — — (390 ) 136 1,921 137 Lehman claim 380 — — — — (81 ) 299 (81 ) Contingent consideration liability 4,083 — — 3,600 (1,725 ) 200 6,158 200 Consolidated Funds Preferred stock — 7,000 (b) — 25,000 — — 32,000 — Lehman claim 493 — — — (739 ) 246 — — Year Ended December 31, 2014 Balance at December 31, 2013 Transfers in Transfers out Purchases/(covers) (Sales)/shorts Realized and Unrealized gains/losses Balance at December 31, 2014 Change in unrealized gains/losses relating to instruments still held (1) (dollars in thousands) Operating Entities Preferred stock $ 324 $ — $ (2,000 ) (a) $ 14,396 $ — $ (203 ) $ 12,517 $ (203 ) Common stocks 3,559 — (3,150 ) (a) 12 (1 ) (8 ) 412 (135 ) Convertible bonds 1,950 — — — (200 ) (850 ) 900 (850 ) Options, asset — — — 35,710 — 1,097 36,807 1,097 Options, liability — — — 35,710 — 1,097 36,807 1,097 Warrants and Rights, asset 5,805 — (1,288 ) (c) 57 (97 ) (3,155 ) 1,322 (1,415 ) Real estate 2,088 — — 50,000 (50,168 ) 255 2,175 255 Lehman claim 378 — — — (76 ) 78 380 79 Contingent consideration liability 6,937 — — 21 (820 ) (2,055 ) 4,083 — Consolidated Funds Lehman claim 4,842 — — — (4,711 ) 362 493 (3,897 ) (1) Unrealized gains/losses are reported in other income (loss) in the accompanying consolidated statements of operations. (a) The company completed an initial public offering. (b) The company transferred investments to a consolidated fund. (c) The investment was converted to equity. All realized and unrealized gains (losses) in the table above are reflected in other income (loss) in the accompanying consolidated statements of operations. Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the tables above. The Company recognizes all transfers and the related unrealized gain (loss) at the beginning of the reporting period. Transfers between level 1 and 2 generally relate to whether the principal market for the security becomes active or inactive. Transfers between level 2 and 3 generally relate to whether significant relevant observable inputs are available for the fair value measurements or due to change in liquidity restrictions for the investments. During the years ended December 31, 2015 and 2014, there were no transfers between level 1 and level 2 assets and liabilities. The following table includes quantitative information as of December 31, 2015 and 2014 for financial instruments classified within level 3. The table below quantifies information about the significant unobservable inputs used in the fair value measurement of the Company's level 3 financial instruments. Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2015 Valuation techniques Unobservable Inputs Range Level 3 Assets (dollars in thousands) Common and preferred stocks $ 2,569 Market/transaction multiples and option pricing method Volatility Market multiples 34% 1x to 4.75x Convertible bonds 819 Recovery analysis Recovery rate 50% Warrants and rights, net 2,572 Model based Volatility 18% to 61% (weighted average 43%) Options 18,194 Option pricing models Volatility 38% Other level 3 assets (a) 47,801 Total level 3 assets 71,955 Level 3 Liabilities Options 18,194 Option pricing models Volatility 38% Contingent consideration 6,158 Discounted cash flows Projected cash flow and discount rate 6.6% - 24.5% (weighted average 16.4%) Total level 3 liabilities $ 24,352 Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2014 Valuation techniques Unobservable Inputs Range Level 3 Assets (dollars in thousands) Common and preferred stocks $ 12,269 Market multiples and option pricing method Volatility Market multiples 45% 1x to 6x Convertible bonds 900 Recovery analysis Recovery rate 50% Warrants and rights, net 1,322 Model based Volatility 20% to 60% (weighted average 34%) Options 36,807 Option pricing models Volatility Credit spreads 30% to 40% 500bps - 750 bps Other level 3 assets (a) 3,708 Total level 3 assets 55,006 Level 3 Liabilities Options 36,807 Option pricing models Volatility Credit spreads 30% to 40% 500bps - 750 bps Contingent consideration 4,083 Discounted cash flows Projected cash flow and discount rate 9% Total level 3 liabilities $ 40,890 (a) The quantitative disclosures exclude financial instruments for which the determination of fair value is based on prices from prior transactions and investments for which NAV per share is used as a practical expedient to determine fair value. The Company has established valuation policies and procedures and an internal control infrastructure over its fair value measurement of financial instruments which includes ongoing oversight by the valuation committee as well as periodic audits performed by the Company's internal audit group. The valuation committee is comprised of senior management, including non-investment professionals, who are responsible for overseeing and monitoring the pricing of the Company's investments, including the review of the results of the independent price verification process, approval of new trading asset classes and use of applicable pricing models and approaches. The US GAAP fair value leveling hierarchy is designated and monitored on an ongoing basis. In determining the designation, the Company takes into consideration a number of factors including the observability of inputs, liquidity of the investment and the significance of a particular input to the fair value measurement. Designations, models, pricing vendors, third party valuation providers and inputs used to derive fair market value are subject to review by the valuation committee and the internal audit group. The Company reviews its valuation policy guidelines on an ongoing basis and may adjust them in light of, improved valuation metrics and models, the availability of reliable inputs and information, and prevailing market conditions. The Company reviews a daily profit and loss report, as well as other periodic reports, and analyzes material changes from period-to-period in the valuation of its investments as part of its control procedures. The Company also performs back testing on a regular basis by comparing prices observed in executed transactions to previous valuations. The fair market value for level 3 securities may be highly sensitive to the use of industry standard models, unobservable inputs and subjective assumptions. The degree of fair market value sensitivity is also contingent upon the subjective weight given to specific inputs and valuation metrics. The Company holds various equity and debt instruments where different weight may be applied to industry standard models representing standard valuation metrics such as: discounted cash flows, market multiples, comparative transactions, capital rates, recovery rates and timing, and bid levels. Generally, changes in the weights ascribed to the various valuation metrics and the significant unobservable inputs in isolation may result in significantly lower or higher fair value measurements. Volatility levels for warrants and options are not readily observable and subject to interpretation. Changes in capital rates, discount rates and replacement costs could significantly increase or decrease the valuation of the real estate investments. The interrelationship between unobservable inputs may vary significantly amongst level 3 securities as they are generally highly idiosyncratic. Significant increases (decreases) in any of those inputs in isolation can result in a significantly lower (higher) fair value measurement. Other financial assets and liabilities The following table presents the carrying values and fair values, at December 31, 2015 and 2014 , of financial assets and liabilities and information on their classification within the fair value hierarchy which are not measured at fair value on a recurring basis. For additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value see Note 3 . December 31, 2015 December 31, 2014 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value (dollars in thousands) Financial Assets Operating companies Cash and cash equivalents $ 158,485 $ 158,485 $ 129,509 $ 129,509 Level 1 Cash collateral pledged 10,085 10,085 8,306 8,306 Level 2 Securities borrowed — — 676,100 660,445 Level 1 Consolidated funds Cash and cash equivalents 13,934 13,934 501 501 Level 1 Financial Liabilities Securities loaned — — 682,493 661,533 Level 1 Convertible debt 124,777 (a) 144,946 (b) 118,475 (a) 160,713 (b) Level 2 Notes payable and other debt 70,984 71,945 67,144 69,548 Level 2 (a) The carrying amount of the convertible debt includes an unamortized discount of $24.7 million and $31.0 million as of December 31, 2015 and 2014 . (b) The convertible debt include the conversion option and is based on the last broker quote available. |
Receivables from and Payable to
Receivables from and Payable to Brokers | 12 Months Ended |
Dec. 31, 2015 | |
Brokers and Dealers [Abstract] | |
Receivables from and Payable to Brokers | Receivables from and Payable to Brokers Receivables from and payable to brokers includes cash held at the clearing brokers, amounts receivable or payable for unsettled transactions, monies borrowed and proceeds from short sales (including commissions and fees related to securities transactions) equal to the fair value of securities sold, not yet purchased, which are restricted until the Company purchases the securities sold short. Pursuant to the master netting agreements the Company entered into with its brokers, these balances are presented net (assets less liabilities) across balances with the same broker. As of December 31, 2015 and 2014 , receivable from brokers was $117.8 million and $84.7 million , respectively. Payable to brokers was $131.8 million and $ 335.8 million as of December 31, 2015 and 2014 , respectively. The Company's receivables from and payable to brokers balances are held at multiple financial institutions. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2015 | |
Fixed assets [Abstract] | |
Fixed Assets | Fixed Assets As of December 31, 2015 and 2014 , fixed assets consisted of the following: As of December 31, 2015 2014 (dollars in thousands) Telephone and computer equipment $ 6,521 $ 5,466 Computer software 1,680 1,305 Furniture and fixtures 6,131 5,692 Leasehold improvements 35,215 32,256 Assets acquired under capital leases—equipment 7,637 7,637 57,184 52,356 Less: Accumulated depreciation and amortization (29,953 ) (25,968 ) $ 27,231 $ 26,388 Depreciation and amortization expense related to fixed assets was $ 6.8 million , $ 6.6 million and $ 6.5 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively and are included in depreciation and amortization expense in the accompanying consolidated statements of operations. Assets acquired under capital leases were $7.6 million and $7.6 million as of December 31, 2015 and 2014 , respectively. If the assets acquired under capital leases transfer title at the end of the lease term or contain a bargain purchase option, the assets are amortized over their estimated useful lives; otherwise, the assets are amortized over the respective lease term. The depreciation of assets capitalized under capital leases is included in depreciation and amortization expenses and was $1.5 million , $1.5 million , and $1.3 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangible Assets Goodwill In accordance with US GAAP, the Company tests goodwill for impairment on an annual basis or at an interim period if events or changed circumstances would more likely than not reduce the fair value of a reporting unit below its carrying amount. Under US GAAP, the Company first assesses the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amounts as a basis for determining if it is necessary to perform the two-step approach. Periodically estimating the fair value of a reporting unit requires significant judgment and often involves the use of significant estimates and assumptions. These estimates and assumptions could have a significant effect on whether or not an impairment charge is recorded and the magnitude of such a charge. The Company estimated the fair value using the income and market approach which involves estimates of future cash flows, discount rates, economic forecast and other assumption which are then used in the market approach (earning and / or transactions multiples) and / or income approach (discounted cash flow method). No impairment charges for goodwill were recognized during the years ended December 31, 2015 , and 2013, respectively. Based on the results of the impairment analysis as of December 31, 2014, the Company did not recognize any impairment relating to the alternative investment reporting unit. However, the Company recognized an impairment charge of $2.3 million for its broker-dealer reporting unit. The impairment charge is due to the securities lending business which the Company decided to wind down during the fourth quarter of 2014. The Company determined that the securities lending business represented a standalone business. After winding it down, the reporting unit will not be able to realize the benefits of the acquired goodwill. Therefore, the Company recognized an impairment charge for the goodwill associated with the securities lending business. The following table presents the changes in the Company's goodwill balance, by reporting unit for the years ended December 31, 2015 , 2014 , and 2013 : Alternative Investment Broker- Total (dollars in thousands) Beginning balance - December 31, 2013 Goodwill $ 30,228 $ 24,363 $ 54,591 Accumulated impairment charges (10,200 ) (7,151 ) (17,351 ) Net 20,028 17,212 37,240 Activity: 2014 Recognized goodwill — — — Goodwill impairment charges — (2,334 ) (2,334 ) Ending balance: December 31, 2014 Goodwill 30,228 24,363 54,591 Accumulated impairment charges (10,200 ) (9,485 ) (19,685 ) Net 20,028 14,878 34,906 Activity: 2015 Recognized goodwill — 23,455 23,455 Goodwill impairment charges — — — Ending balance: December 31, 2015 Goodwill 30,228 47,818 78,046 Accumulated impairment charges (10,200 ) (9,485 ) (19,685 ) Net $ 20,028 $ 38,333 $ 58,361 Intangible assets Information for the Company's intangible assets that are subject to amortization is presented below as of December 31, 2015 and 2014 . The Company recognized trade name, customer relationships, and customer contracts in connection with the transactions during the prior years. As a result of the Cowen Prime and Cowen Prime Trading acquisitions during the period ended December 31, 2015 (see Note 2) the Company recognized intangible assets in the amount of $19.9 million with expected useful lives ranging from 1 to 14 years with weighted average useful life of 10.31 years. December 31, 2015 December 31, 2014 Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in years) (in thousands) (in thousands) Investment contracts 5 $ 3,900 $ (3,900 ) $ — $ 3,900 $ (3,900 ) $ — Trade names 1 - 7.5 9,712 (8,897 ) 815 9,612 (8,305 ) 1,307 Customer relationships 3 - 14 29,484 (10,338 ) 19,146 13,284 (8,936 ) 4,348 Customer contracts 1.2 800 (800 ) — 800 (800 ) — Non compete agreements and covenants with limiting conditions acquired 3 - 5 1,831 (172 ) 1,659 31 (21 ) 10 Intellectual property 3 - 10 8,237 (4,194 ) 4,043 6,437 (3,619 ) 2,818 $ 53,964 $ (28,301 ) $ 25,663 $ 34,064 $ (25,581 ) $ 8,483 The Company tests intangible assets for impairment if events or circumstances suggest that the asset groups carrying value may not be fully recoverable. For the year ended December 31, 2015 and 2013, no impairment charge for intangible assets was recognized. During the year ended December 31, 2014 the Company wrote off $0.9 million representing the remaining intangible assets related to the securities lending business. These intangibles were assessed for impairment when the Company decided to wind down the business during the fourth quarter of 2014. The Company does not expect to derive future benefits from these intangible assets. The impairment charge is recorded in depreciation and amortization expense within the accompanying consolidated statements of operations for the year ended December 31, 2014. Amortization expense related to intangible assets was $2.7 million , $3.6 million (including impairment charges of $0.9 million related to the broker-dealer segment), and $3.7 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively, which is included in depreciation and amortization expense in the accompanying consolidated statements of operations. All of the Company's intangible assets have finite lives. The estimated future amortization expense for the Company's intangible assets as of December 31, 2015 is as follows: (dollars in thousands) 2016 $ 4,422 2017 3,955 2018 3,045 2019 2,384 2020 2,236 Thereafter 9,621 $ 25,663 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets in Operating Entities are as follows: As of December 31, 2015 2014 (dollars in thousands) Deposits $ 674 $ 10,689 Prepaid expenses 7,783 6,340 Tax receivables 2,855 126 Deferred rent asset 341 512 Deferred charges - debt 4,795 5,958 Interest and dividends receivable 2,006 3,484 Loan receivable (a) 8,000 — Short term bridge loan (b) 38,000 — Miscellaneous receivables (See Note 2) 2,788 4,400 Other (c) 9,084 2,721 $ 76,326 $ 34,230 (a) As of December 31, 2015 , the maturity was August 2017 with interest rate of 12% . (b) As of December 31, 2015, the maturity was February 2016, was secured by the real estate assets and had an effective annualized interest rate of 8% . (c) Included in this amount is $4.5 million , due January 2024, with interest rate of 8% for the first five years and 8.5% for the remainder of the term, related to the Company's new commercial reinsurance activities (see Note 5). |
Accounts Payable Accrued Expens
Accounts Payable Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Payable, Accrued Expenses and Other Liabilities [Abstract] | |
Accounts Payable Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Expenses and Other Liabilities Accounts payable, accrued expenses and other liabilities in Operating Entities are as follows: As of December 31, 2015 2014 (dollars in thousands) Deferred rent obligations (see Note 3(l)) $ 11,979 $ 13,142 Deferred income 428 1,033 Equity in RCG Longview Partners II, LLC (see Note 5a(3)) 5,969 5,878 Professional fees payable 4,811 3,889 Placement and other fees payable 1,555 3,615 Litigation reserve 1,300 — Contingent consideration payable (see Note 2) 6,158 4,083 Interest and dividends payable 3,574 3,366 Accrued expenses and accounts payable 15,223 7,846 Accrued tax liabilities 1,236 3,754 $ 52,233 $ 46,606 |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interests in Consolidated Subsidiaries and Funds | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interests in Consolidated Subsidiaries and Funds | Redeemable Non-Controlling Interests in Consolidated Subsidiaries and Funds Redeemable non-controlling interests in consolidated subsidiaries and funds and the related net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds are comprised as follows: As of December 31, 2015 2014 (dollars in thousands) Redeemable non-controlling interests in consolidated subsidiaries and funds Operating companies $ 10,906 $ 9,619 Consolidated funds 176,005 76,457 $ 186,911 $ 86,076 Year Ended December 31, 2015 2014 2013 (dollars in thousands) Income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds Operating companies $ 9,503 $ 10,094 $ 10,461 Consolidated funds 5,743 5,470 2,732 $ 15,246 $ 15,564 $ 13,193 |
Other Revenues and Expenses
Other Revenues and Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Other Revenues and Expenses [Abstract] | |
Other Revenues and Expenses | Other Revenues and Expenses Upon closing of the sale of the Company's long/short credit business, on December 31, 2014, the company recorded a gain of $4.5 million included in other revenues in the accompanying consolidated statements of operations (See Note 2 ). The company adjusted the value of the contingent liability related to the securities lending business by $2.1 million due to the Company's decision during the fourth quarter of 2014 to wind down the operations of the business. This amount is included in other revenues in the accompanying consolidated statements of operations (See Note 2 ). During June 2008, the Company sold its fractional share ownership of a business aircraft for a net gain of $0.5 million . In the same month, October LLC, a wholly owned subsidiary of the Company, also sold an aircraft through a sale-leaseback transaction. The Company recognized a deferred net gain of $2.8 million and amortized it over a period of sixty-seven months , the term of the lease. During the year ended December 31, 2013, the amount of the gain recognized in other revenue in the accompanying consolidated statements of operations was $0.5 million . The lease expired on January 31, 2014 and the associated net gain of $2.8 million was fully recognized. Other expenses, during the years ended December 31, 2015 , 2014 , and 2013 , are primarily the general administrative expenses of the various operating company subsidiaries or the Consolidated Funds. |
Share-Based Compensation and Em
Share-Based Compensation and Employee Ownership Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation and Employee Ownership Plans | Share-Based and Deferred Compensation and Employee Ownership Plans The Company issues share based compensation under the 2006 Equity and Incentive Plan, the 2007 Equity and Incentive Plan (both established prior to the November 2009 transaction between Ramius and Cowen) and the Cowen Group, Inc. 2010 Equity and Incentive Plan (collectively, the “Equity Plans”). The Equity Plans permit the grant of options, restricted shares, restricted stock units, stock appreciation rights ("SAR's") and other equity based awards to the Company's employees and directors. Stock options granted generally vest over two -to- five -year periods and expire seven years from the date of grant. Restricted shares and restricted share units issued may be immediately vested or may generally vest over a two -to- five -year period. SAR's vest and expire after five years from grant date. Awards are subject to the risk of forfeiture. As of December 31, 2015 , there were approximately 0.9 million shares available for future issuance under the Equity Plans. Under the 2010 Equity Plan, the Company awarded $12.5 million of deferred cash awards to its employees during the year ended December 31, 2015 . These awards vest over a four year period and accrue interest between 0.70% to 0.75% per year. As of December 31, 2015 , the Company had unrecognized compensation expense related to deferred cash awards of $28.3 million . The Company measures compensation cost for share based awards according to the equity method. In accordance with the expense recognition provisions of those standards, the Company amortizes unearned compensation associated with share based awards on a straight-line basis over the vesting period of the option or award. In relation to awards under the Equity Plans, the Company recognized expense of $21.7 million , $18.3 million , and $17.9 million for the years ended December 31, 2015 , 2014 and 2013, respectively. The income tax effect recognized for the Equity Plans was a benefit of $5.0 million , $6.0 million and $9.7 million for the years ended December 31, 2015 , 2014 and 2013, respectively. However, for the years ended December 31, 2015 and 2013, these benefits were offset by valuation allowance. Stock Options and Stock Appreciation Rights The Company values options and SAR's on grant date using the Black-Scholes valuation model which requires the Company to make assumptions regarding the expected term, volatility, risk-free rate and dividend yield: Expected term . Expected term represents the period of time that awards granted are expected to be outstanding. The Company elected to use the "simplified" calculation method, as applicable to companies that lack extensive historical data. The mid-point between the vesting date and the contractual expiration date is used as the expected term under this method. Expected volatility . The Company bases its expected volatility on its own stock price history. Risk free rate . The risk-free rate for periods within the expected term of the award is based on the interest rate of a traded zero-coupon U.S. Treasury bond with a term equal to the awards' expected term on the date of grant. Dividend yield . The Company has not paid and does not expect to pay dividends in the foreseeable future. Accordingly, the assumed dividend yield is zero . The following table summarizes the Company's stock option activity for the years ended December 31, 2015 and 2014: Shares Subject Weighted Average Weighted Average Aggregate Intrinsic (in years) (dollars in thousands) Balance outstanding at December 31, 2013 300,006 $ 7.19 2.4 $ 41 Options granted — — — — Options exercised (33,334 ) 3.50 — — Options expired (50,000 ) 16.27 — — Balance outstanding at December 31, 2014 216,672 $ 5.65 1.60 $ 87 Options granted — — — — Options exercised (100,002 ) 3.96 — — Options expired (100,003 ) 7.49 — — Balance outstanding at December 31, 2015 16,667 $ 4.89 1.10 $ — Options exercisable at December 31, 2014 216,672 $ 5.65 1.60 $ — Options exercisable at December 31, 2015 16,667 $ 4.89 1.09 $ — (1) Based on the Company's closing stock price of $3.83 on December 31, 2015 and $4.80 on December 31, 2014 . As of December 31, 2015 , the Company's stock options were fully expensed. The following table summarizes the Company's SAR's for the years ended December 31, 2015 and 2014: Shares Subject Weighted Average Weighted Average Aggregate Intrinsic (in years) (dollars in thousands) Balance outstanding at December 31, 2013 400,000 $ 2.90 4.21 608 SAR's granted — — — — SAR's acquired — — — — SAR's expired — — — — Balance outstanding at December 31, 2014 400,000 2.90 3.21 $ 913 SAR's granted — — — — SAR's acquired — — — — SAR's expired — — — — Balance outstanding at December 31, 2015 400,000 $ 2.90 2.21 $ 558 SAR's exercisable at December 31, 2015 — $ — — $ — (1) Based on the Company's closing stock price of $3.83 on December 31, 2015 and $4.80 on December 31, 2014 . As of December 31, 2015 and 2014 , the unrecognized compensation expense related to the Company's grant of SAR's was $0.1 million and $0.2 million , respectively. Restricted Shares and Restricted Stock Units Granted to Employees Restricted shares and restricted stock units are referred to collectively as restricted stock. The following table summarizes the Company's restricted share and restricted stock unit activity for the year ended December 31, 2015 : Nonvested Restricted Shares and Restricted Stock Units Weighted-Average Balance outstanding at December 31, 2013 13,551,544 $ 3.37 Granted (1) 9,674,496 3.89 Vested (4,071,120 ) 3.27 Canceled — — Forfeited (1,500,338 ) 3.07 Balance outstanding at December 31, 2014 17,654,582 $ 3.70 Granted 9,043,604 4.49 Vested (4,188,289 ) 3.08 Canceled — — Forfeited (1,029,533 ) 3.42 Balance outstanding at December 31, 2015 (1) 21,480,364 $ 4.17 (1) Performance linked restricted stock units of 1,925,750 were awarded to employees of the Company in December 2013 and January 2014. Of the awards granted, 326,250 have been forfeited through December 31, 2015 . The remaining awards, included in the outstanding balance as of December 31, 2015 , will vest on June 10, 2019 and will be earned only to the extent that the Company attains specified performance goals relating to its volume-weighted average share price and the aggregate net income for the years from 2014 to 2018. The actual number of RSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 100% of the targeted award. Each RSU is equal to the one share of the Company’s Class A common stock. Compensation expense is recognized to the extent that it is probable that the Company will attain the performance goals. The fair value of restricted stock (excluding performance linked units which are valued using the Monte Carlo valuation model) is determined based on the number of shares granted and the quoted price of the Company's common stock on the date of grant. As of December 31, 2015 , there was $60.4 million of unrecognized compensation expense related to the Company's grant of nonvested restricted shares and restricted stock units to employees. Unrecognized compensation expense related to nonvested restricted shares and restricted stock units granted to employees is expected to be recognized over a weighted-average period of 1.64 years. Restricted Shares and Restricted Stock Units Granted to Non-employee Board Members There were 157,621 restricted stock units awarded during the year ended December 31, 2015 . As of December 31, 2015 there were 497,570 restricted stock units outstanding. |
Defined Benefit Plan
Defined Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plan | Defined Benefit Plan On December 1, 2005, the Company adopted a defined benefit plan ("Cash Balance Plan") to provide retirement income to all eligible employees of the Company and its subsidiaries in accordance with the terms and conditions in the plan document. As previously stated, the Company made the decision to terminate the Cash Balance Plan effective December 31, 2013. On May 12, 2014 Cowen received a favorable determination letter from the IRS approving the termination of the Cash Balance Plan. Subsequently, steps were taken to process the distributions based on participant distribution elections by December 15, 2015 and the Company is filing a final Form 5500 for the Plan Year 2014. The amounts contained in the following table relate to the Company's defined benefit plan(s) for the year ended December 31, 2014 : As of December 31, 2014 (dollars in thousands) Projected benefit obligation Benefit obligation at beginning of year $ 3,592 Service cost — Interest cost 84 Actuarial loss (gain) (2 ) Benefits paid (3,791 ) Curtailments — Lump sum settlement 117 Effect of change in currency conversion — Benefit obligation at end of year $ — Change in plan assets Fair value of plan assets at beginning of year $ 4,389 Actual return on plan assets 306 Employer contributions — Benefits paid (3,791 ) Transfer to qualified replacement plan (874 ) Expenses paid from the plan (30 ) Fair value of plan assets at the end of year $ — Funded balance at end of year $ — Amounts recognized in the consolidated statement of financial condition Asset $ — Accumulated benefit obligation $ — Year Ended December 31, 2014 2013 (dollars in thousands) Components of net periodic benefit cost included in employee compensation and benefits Service cost $ — $ — Interest cost 84 207 Expected return on plan assets (299 ) (251 ) Amortization of loss / (gain) (205 ) — Amortization of prior service cost — 21 Effect of settlement — (95 ) Net periodic benefit cost $ (420 ) $ (118 ) Other changes in plan assets and benefit obligations recognized in other comprehensive loss Net loss (gain) $ 344 $ 137 Effect of curtailment — (360 ) Effect of settlement — — Amortization of loss / (gain) — — Amortization of prior service cost — (23 ) Total recognized in other comprehensive income (loss) $ 344 $ (246 ) Total recognized in net periodic benefit cost and other comprehensive loss $ (76 ) $ (364 ) Amounts recognized in accumulated other comprehensive loss Net gain (loss) $ — $ 344 Prior service cost — — Effect of change in currency conversion — — Total recognized in accumulated other comprehensive income (loss) $ — $ 344 Estimated amounts to be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year Prior service cost $ — $ — Net gain (loss) $ — $ — The assumed long term rate of return on the Cash Balance Plan assets was 6% as of December 31, 2014 and 2013 . The Company's approach in determining the long-term rate of return for plan assets is based upon historical financial market relationships that have existed over time with the presumption that this trend will generally remain constant in the future. All assets in the Cash Balance Plan as of December 31, 2014 were distributed or transferred out. |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution Plans [Abstract] | |
Defined Contribution Plans | Defined Contribution Plans The Company sponsors a Retirement and Savings Plan which is a defined contribution plan pursuant to Section 401(k) of the Internal Revenue Code (the "401k Plans"). All full-time employees of the Company can contribute on a tax deferred basis to the 401k Plans up to federal contribution limits or up to 100% of their annual compensation, subject to certain limitations. The Company provides matching contributions for certain employees that are equal to a specified percentage of the eligible participant's contribution as defined by the 401k Plans. For the year ended December 31, 2015, the Company's contributions to the Plans were $0.3 million . The Company did not contribute to the Plans during the year ended December 31, 2014. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The taxable results of the Company’s U.S. operations are included in the consolidated income tax returns of Cowen Group, Inc. as well as stand‑alone state and local tax returns. The Company has subsidiaries that are resident in foreign countries where tax filings have to be submitted on a stand‑alone basis. These subsidiaries are subject to tax in their respective countries and the Company is responsible for and, thus, reports all taxes incurred by these subsidiaries. The countries where the Company owns subsidiaries with tax filing obligations are the United Kingdom, Luxembourg, and Hong Kong. The components of the Company's income tax expense for the years ended December 31, 2015 , 2014 and 2013 are as follows: Year ended December 31, 2015 2014 2013 (dollars in thousands) Current tax expense/(benefit) Federal $ (635 ) $ 2,247 $ — State and local 313 573 241 Foreign 348 341 188 Total $ 26 $ 3,161 $ 429 Deferred tax expense/(benefit) Federal $ (37,979 ) $ (99,284 ) $ — State and local (7,420 ) (28,825 ) — Foreign (2,123 ) 4 28 Total (47,522 ) (128,105 ) 28 Total Tax expense/(benefit) $ (47,496 ) $ (124,944 ) $ 457 Consolidated U.S. income/(loss) before income taxes was $8.0 million in 2015 , $56.7 million in 2014 , and $11.9 million in 2013 . The corresponding amounts for non-U.S.-based income/(loss) were $3.5 million in 2015 , $1.1 million in 2014 , and $6.4 million in 2013 . The reconciliations of the Company's federal statutory rate to the effective income tax rate for the years ended December 31, 2015 , 2014 , and 2013 are as follows: Year ended December 31, 2015 2014 2013 Pre-tax loss at U.S. statutory rate 35.0 % 35.0 % 35.0 % Stock compensation — — 12.6 Deferred asset recognition (323.8 ) — — Change in valuation allowance — (252.7 ) (27.2 ) Impact of change in NY tax law (27.9 ) — — State and foreign tax (39.6 ) 5.8 — Minority interest reversal (46.5 ) (9.4 ) (25.2 ) Other, net (11.0 ) 5.3 7.3 Total (413.8 )% (216.0 )% 2.5 % As of December 31, 2015 , the Company has net income taxes receivable of approximately $1.8 million representing Federal and state tax overpayments, which is included in other assets on the accompanying consolidated statements of financial condition. The Company also has foreign income taxes payable of $1.1 million , which is included in other liabilities on the accompanying consolidated statements of financial condition. The components of the Company's deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows: As of December 31, 2015 2014 (dollars in thousands) Deferred tax assets, net of valuation allowance Net operating loss $ 110,904 $ 94,628 Deferred compensation 65,162 56,069 Goodwill 7,009 8,434 Fixed assets 2,003 — Tax credits 1,630 2,668 Acquired lease liability 4,843 5,164 Other 2,317 2,394 Total deferred tax assets 193,868 169,357 Valuation allowance — (2,263 ) Deferred tax assets, net of valuation allowance 193,868 167,094 Deferred tax liabilities Basis difference on investments (15,352 ) (15,352 ) Unrealized gains on investments (34,613 ) (21,739 ) Intangible assets (296 ) (537 ) Other (47 ) (66 ) Total deferred tax liabilities (50,308 ) (37,694 ) Deferred tax assets/(liabilities), net $ 143,560 $ 129,400 Deferred tax assets, net of valuation allowance, are reported in other assets in the accompanying consolidated statements of financial condition. In addition to the deferred tax balances in the table above, the Company records balances related to its operating losses in Luxembourg, which are discussed below. The Company records deferred tax assets and liabilities for the future tax benefit or expense that will result from differences between the carrying value of its assets for income tax purposes and for financial reporting purposes, as well as for operating or capital loss and tax credit carryovers. A valuation allowance is recorded to bring the net deferred tax assets to a level that, in management’s view, is more likely than not to be realized in the foreseeable future. This level will be estimated based on a number of factors, especially the amount of net deferred tax assets of the Company that are actually expected to be realized, for tax purposes, in the foreseeable future. The Company recorded no valuation allowance against its deferred tax assets of $193.9 million as of December 31, 2015 and approximately $2.3 million against its deferred tax assets of $169.4 million as of December 31, 2014 . Separately, the Company has deferred tax liabilities of $50.3 million as of December 31, 2015 , and $37.7 million as of December 31, 2014 . In December 2015, the Company recorded a deferred tax benefit of $37.2 million , representing the deferred tax benefits generated by a local subsidiary upon the acquisition of Hollenfels. Hollenfels had deferred tax liabilities at the time of its acquisition and upon its purchase, pursuant to an Advance Tax Agreement, the local subsidiary generated deferred tax assets that fully offset these liabilities, resulting in the recognition of this deferred tax benefit. The deferred tax benefit of $47.5 million in December 31, 2015 was derived by the deferred tax benefit described above by the reversal of temporary items during the course of normal operations. The deferred tax benefit of $128.1 million recorded in December 31, 2014, predominantly represented the release of valuation allowance due to the anticipation of future profits. For the year ended December 31, 2013, the deferred tax expense recorded by the Company was immaterial. The Company has the following net operating loss carryforwards at December 31, 2015 : Federal New York State New York City Hong Kong Jurisdiction: Net operating loss (in millions) $ 264 $ 84 $ 123 $ 13 Year of expiration 2033 2033 2033 Indefinite In addition to the net operating loss carryforwards in the table above, the Company also has net operating loss carryforwards in Luxembourg. These loss carryforwards are only accessible to the extent of taxable income generated by the Luxembourg reinsurance companies, including any deferred income that will be generated in the future. Consequently, the Company recorded a deferred tax asset of $75.3 million , net of deferred tax liabilities of $351.0 million in connection with future taxable income, and an offsetting valuation allowance of $75.3 million against its Luxembourg net operating loss carryforwards that are in excess of such taxable income. The increase in deferred tax liabilities and corresponding reduction in the valuation allowance was caused by the acquisition of Hollenfels, as described above. As a result of an acquisition of a subsidiary with net operating loss carryovers in June 2011, a portion of the Company’s deferred tax assets, are subject to an annual limitation under Section 382 of the Internal Revenue Code (“Section 382”). The deduction limitation is approximately $6.7 million annually and applies to approximately $64 million of net operating losses. The Company is not expected to lose any deferred tax assets as a result of these limitations. The Company adopted the accounting guidance for accounting for uncertainty in income taxes as which clarifies the criteria that must be met prior to recognition of the financial statement benefit of a position taken in a tax return. The Company does not have any uncertain tax positions recorded for the years ended December 31, 2015 , 2014 , and 2013 . Further, the Company did not record any additions to its unrecognized tax benefit balances as a result of current or prior year tax positions or reductions due to expired statute of limitations during the years ended December 31, 2015 , 2014 , and 2013 . The Company is subject to examination by the United States Internal Revenue Service, the United Kingdom Inland Revenue Service as well as state, local and foreign tax authorities in jurisdictions where the Company has significant business operations, such as New York. Currently, the Company is under audit by New York State for 2010 to 2012 tax years. Management is not expecting a material tax liability from this audit. The Company intends to permanently reinvest the capital and accumulated earnings of its foreign subsidiaries in the respective subsidiary, but remits the current earnings of its foreign subsidiaries to the United States to the extent permissible under local regulatory rules. The undistributed earnings of the Company’s foreign subsidiaries totaled $1.0 million and $1.1 million as of December 31, 2015 and 2014 , respectively, and the tax liability that would arise if these earnings were remitted is approximately $0.1 million and $0.2 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Obligations The Company has entered into leases for office space and equipment. These leases contain rent escalation clauses. The Company records rent expense on a straight-line basis over the lease term, including any rent holiday periods. Rent expense was $18.5 million , $16.8 million , and $15.6 million for the years ended December 31, 2015 , 2014 , and 2013, respectively. As of December 31, 2015 , future minimum annual lease and service payments for the Company were as follows: Equipment Leases (a) Service Payments Facility Leases (b) (dollars in thousands) 2016 $ 2,502 $ 15,850 $ 19,386 2017 2,301 7,255 15,615 2018 2,221 4,126 15,620 2019 813 1,401 14,821 2020 — — 14,814 Thereafter — — 32,250 $ 7,837 $ 28,632 $ 112,506 (a) Equipment Leases include the Company's commitments relating to operating and capital leases. See Note 19 for further information on the capital lease minimum payments which are included in the table. (b) The Company has entered into various agreements to sublease certain of its premises. The Company recorded sublease income related to these leases of $2.3 million , $1.8 million and $1.5 million for the years ended December 31, 2015 , 2014 , and 2013, respectively. Clawback Obligations For financial reporting purposes, the general partners of a real estate fund have recorded a liability for potential clawback obligations to the limited partners, due to changes in the unrealized value of the fund's remaining investments and where the fund's general partner has previously received carried interest distributions. The clawback liability, however, is not realized until the end of the fund's life. The life of the real estate fund's with a potential clawback obligation is currently in a winding-up phase whereby the remaining assets of the fund are being liquidated as promptly as possible so as to maximize value, however a final date for liquidation has not been set. The fund is currently winding-down and as of both December 31, 2015 and 2014 , and the clawback obligation was $6.2 million . The Company serves as the general partner/managing member and/or investment manager to various affiliated and sponsored funds. As such, the Company is contingently liable for obligations for those entities. These amounts are not included above as the Company believes that the assets in these funds are sufficient to discharge any liabilities. Unfunded Commitments As of December 31, 2015 , the Company had unfunded commitments of $5.6 million pertaining to capital commitments in three real estate investments held by the Company, all of which pertain to related party investments. Such commitments can be called at any time, subject to advance notice. The Company, as a limited partner of the HealthCare Royalty Partners funds and also as a member of HealthCare Royalty Partners General Partners, has committed to invest $45.4 million in the Healthcare Royalty Partners funds which are managed by Healthcare Royalty Management. This commitment is expected to be called over a two to five year period. The Company will make its pro-rata investment in the HealthCare Royalty Partners funds along with the other limited partners. Through December 31, 2015 , the Company has funded $36.0 million towards these commitments. In April 2013, the Company committed $1.0 million t o Starboard Leaders Fund LP, which may increase or decrease over time, and, as of December 31, 2015 , has funded $0.9 million towards this commitment. As of December 31, 2015 , the Company has an unfunded commitment to Formation8 Partners Fund I, L.P. of $0.9 million . The remaining capital commitment is expected to be called over a one year period . As of December 31, 2015, the Company has an unfunded commitment to Formation8 Partners Hardware Fund I, L.P. of $1.4 million . The remaining capital commitment is expected to be called over a one year period. As of December 31, 2015 , the Company has an unfunded commitment to Lagunita Biosciences, LLC of $4.0 million . The remaining capital commitment is expected to be called over a three - year period. Litigation In the ordinary course of business, the Company and its affiliates and subsidiaries and current and former officers, directors and employees (the "Company and Related Parties") are named as defendants in, or as parties to, various legal actions and proceedings. Certain of these actions and proceedings assert claims or seek relief in connection with alleged violations of securities, banking, anti-fraud, anti-money laundering, employment and other statutory and common laws. Certain of these actual or threatened legal actions and proceedings include claims for substantial or indeterminate compensatory or punitive damages, or for injunctive relief. In the ordinary course of business, the Company and Related Parties are also subject to governmental and regulatory examinations, information gathering requests (both formal and informal), certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Certain affiliates and subsidiaries of the Company are investment banks, registered broker-dealers, futures commission merchants, investment advisers or other regulated entities and, in those capacities, are subject to regulation by various U.S., state and foreign securities, commodity futures and other regulators. In connection with formal and informal inquiries by these regulators, the Company and such affiliates and subsidiaries receive requests, and orders seeking documents and other information in connection with various aspects of their regulated activities. Due to the global scope of the Company's operations, and its presence in countries around the world, the Company and Related Parties may be subject to litigation, and governmental and regulatory examinations, information gathering requests, investigations and proceedings (both formal and informal), in multiple jurisdictions with legal and regulatory regimes that may differ substantially, and present substantially different risks, from those the Company and Related Parties are subject to in the United States. The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interests of the Company and its shareholders, and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. In accordance with US GAAP, the Company establishes reserves for contingencies when the Company believes that it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. The Company discloses a contingency if there is at least a reasonable possibility that a loss may have been incurred and there is no reserve for the loss because the conditions above are not met. The Company's disclosure includes an estimate of the reasonably possible loss or range of loss for those matters, for which an estimate can be made. Neither a reserve nor disclosure is required for losses that are deemed remote . The Company appropriately reserves for certain matters where, in the opinion of management, the likelihood of liability is probable and the extent of such liability is reasonably estimable. Such amounts are included within accounts payable, accrued expenses and other liabilities in the accompanying consolidated statements of financial condition. Estimates, by their nature, are based on judgment and currently available information and involve a variety of factors, including, but not limited to, the type and nature of the litigation, claim or proceeding, the progress of the matter, the advice of legal counsel, the Company's defenses and its experience in similar cases or proceedings as well as its assessment of matters, including settlements, involving other defendants in similar or related cases or proceedings. The Company may increase or decrease its legal reserves in the future, on a matter-by-matter basis, to account for developments in such matters. The Company accrues legal fees as incurred. On May 28, 2014, Energy Intelligence Group, Inc. and Energy Intelligence Group UK (collectively, "EIG") filed a lawsuit against Cowen and Company, LLC in the United States Court for the Southern District of New York (Energy Intelligence Group, Inc. and Energy Intelligence Group UK v. Cowen and Company, LLC, No. 14-CV-3789). The complaint alleges copyright infringement based on alleged impermissible distribution of EIG's publication, Oil Daily, by Cowen and Company, LLC, and Dahlman Rose & Company, LLC, as Cowen's alleged predecessor-in-interest. EIG is seeking statutory damages based on alleged willful infringement of their copyrights. The Company intends to vigorously defend against this lawsuit. On November 12, 2014, the Company filed an answer and affirmative defenses to the EIG complaint. On September 25, 2015, the Company filed its motion for partial summary judgment to dismiss certain of EIG’s claims relating to Dahlman Rose’s alleged copyright infringement. We expect the Company’s motion to be heard in the first or second quarter of 2016, but we cannot predict when the Court will issue a decision. Because the case is in its preliminary stages, the Company cannot predict the outcome at this time, but it does not currently expect this case to have a material effect on its financial position. The case could have a material effect on the Company’s results of operations in a future period. |
Convertible Debt and Notes Paya
Convertible Debt and Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Debt and Notes Payable | Convertible Debt and Notes Payable As of December 31, 2015 and 2014 , the Company's outstanding debt was as follows: As of December 31, 2015 2014 (dollars in thousands) Convertible debt $ 124,777 $ 118,475 Note Payable 63,250 63,250 Revolver 5,000 — Capital lease obligations 2,734 3,894 $ 195,761 $ 185,619 Convertible Debt On March 10, 2014, the Company issued $149.5 million of 3.0% cash convertible senior notes ("Convertible Notes"). The Convertible Notes are due on March 15, 2019 unless earlier repurchased by the Company or converted by the holder into cash in accordance with their terms prior to such date. The interest on the Convertible Notes is payable semi-annually on March 15 and September 15 of each year. The Convertible Notes are senior unsecured obligations and rank senior in right of payments to other obligations. The Convertible Notes may be converted into cash, upon the occurrence of certain events, whereby a holder will receive, per $1,000 principal amount of notes being converted, an amount equal to the sum of principal amount outstanding and the conversion amount based on the current conversion price (the "Conversion Option"). The Convertible Notes were issued with an initial conversion price of $5.33 per share. The Company recorded interest expense of $4.5 million and $3.6 million for the years ended December 31, 2015 and 2014 , respectively. The initial unamortized discount on the Convertible Notes was $35.7 million and is shown net in convertible debt in the accompanying consolidated statements of financial condition. Amortization on the discount, included within interest expense in the accompanying consolidated statements of operations is $6.3 million and $4.7 million for the years ended December 31, 2015 and 2014 , respectively, based on an effective interest rate of 8.89% . The Company capitalized the debt issuance costs in the amount of $3.7 million , which is included in other assets in the accompanying consolidated statements of financial condition , and will be amortized over the life of the Convertible Notes. As of December 31, 2015 , the Company is in compliance with all covenants included in the indenture governing the Convertible Notes. Of the net proceeds from the sale of the Convertible Notes, approximately $20.5 million was applied to pay the net cost of a cash convertible note economic hedge and warrant transaction which increases the effective conversion price to $7.18 (see Note 5 ), and approximately $0.3 million was applied to repurchase shares of Cowen Class A common stock. The remainder of the net proceeds is being used for general corporate purposes. Note Payable On October 10, 2014 the Company completed its public offering of $63.3 million aggregate principal amount of 8.25% senior notes due on October 15, 2021 ("2021 Notes"). Interest on the 2021 Notes is payable quarterly in arrears on January 15, April 15, July 15 and October 15, commencing on January 15, 2015. The Company recorded interest expense of $5.2 million for the year ended December 31, 2015 . The Company capitalized debt issuance costs of approximately $2.9 million which are included in other assets in the accompanying consolidated statements of financial condition and will be amortized over the life of the 2021 Notes. As of December 31, 2015 , the Company was in compliance with all covenants included in the indenture governing the 2021 Notes. Revolver On July 31, 2015, the Company entered into a $25.0 million 3 64 day revolving unsecured credit facility with multiple financial institutions primarily for working capital management. The Company has drawn $5 million under this facility as of December 31, 2015 . Interest accrues on borrowed funds at LIBOR plus 3.0% and interest accrues on the undrawn facility amount at LIBOR plus 0.38% . The revolver matures in August 2016. The Company is required to comply with certain financial covenants for which the Company was in compliance with through December 31, 2015 . Interest expense for the year ended December 31, 2015 was $0.2 million . Capital Lease Obligations The Company entered into several capital leases for computer equipment during the fourth quarter of 2010 and one in January 2014. These leases amounted to $7.6 million and are recorded in fixed assets and as capital lease obligations, which are included in short-term borrowings and other debt in the accompanying consolidated statements of financial condition, and have lease terms that range from 48 to 60 months and interest rates that range from 0.60% to 6.03% . As of December 31, 2015 , t he remaining balance on these capital leases was $2.7 million . Interest expense was $0.2 million , $0.2 million and $0.1 million for the years ended December 31, 2015 , 2014 and 2013, respectively. Annual scheduled maturities of debt and minimum payments for all debt outstanding as of December 31, 2015 , is as follows: Convertible Debt Note Payable Revolver Capital Lease (dollars in thousands) 2016 $ 4,485 $ 5,218 $ 5,000 $ 1,025 2017 4,485 5,218 — 938 2018 4,485 5,218 — 938 2019 151,743 5,218 — 78 2020 — 5,218 — — Thereafter — 68,468 — — Subtotal 165,198 94,558 5,000 2,979 Less: Amount representing interest (a) (40,421 ) (31,308 ) — (245 ) Total $ 124,777 $ 63,250 $ 5,000 $ 2,734 (a) Amount necessary to reduce net minimum payments to present value calculated at the Company's implicit rate at inception. This amount also includes the unamortized discount on the convertible debt. Letters of Credit As of December 31, 2015 , the Company has the following eight irrevocable letters of credit related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit. Location Amount Maturity (dollars in thousands) San Francisco $ 710 January 2016 New York $ 1,000 February 2016 Boston $ 382 March 2016 New York $ 355 May 2016 New York $ 1,861 May 2016 New York $ 794 October 2016 New York $ 3,373 October 2016 New York $ 1,600 November 2016 To the extent any letter of credit is drawn upon, interest will be assessed at the prime commercial lending rate . As of December 31, 2015 and 2014 , there were no amounts due related to these letters of credit . |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholder's Equity | Stockholder's Equity The Company is authorized to issue 500,000,000 shares of common stock, which shall consist of 250,000,000 shares of Class A common stock, par value $0.01 per share, and 250,000,000 shares of Class B common stock, par value $0.01 per share. The Company is also authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. Subject to the rights of holders of any outstanding preferred stock, the number of authorized shares of common stock or preferred stock may be increased or decreased by the affirmative vote of the holders of a majority of the shares entitled to vote on such matters, but in no instance can the number of authorized shares be reduced below the number of shares then outstanding. Common stock The certificate of incorporation of the Company provides for two classes of common stock, and for the conversion of each class into the other, to provide a mechanism by which holders of Class A common stock of the Company who may be limited in the amount of voting common stock of the Company they can hold pursuant to federal, state or foreign bank laws, to convert their shares into non-voting Class B common stock to prevent being in violation of such laws. Each holder of Class A common stock is entitled to one vote per share in connection with the election of directors and on all other matters submitted to a stockholder vote, provided, however, that, except as otherwise required by law, holders of Class A common stock are not entitled to vote on any amendment to the Company 's amended and restated certificate of incorporation that relates solely to the terms of one or more outstanding series of the Company's preferred stock, if holders of the preferred stock series are entitled to vote on the amendment under the Company's certificate of incorporation or Delaware law. No holder of Class A common stock may accumulate votes in voting for directors of the Company. Each holder of Class B common stock is not entitled to vote except as otherwise provided by law, provided however that the Company must obtain the consent of a majority of the holders of Class B common stock to effect any amendment, alteration or repeal of any provision of the Company's amended and restated certificate of incorporation or amended and restated by-laws that would adversely affect the voting powers, preferences or rights of holders of Class B common stock. Except as otherwise provided by law, Class B common stock shares will not be counted as shares held by stockholders for purposes of determining whether a vote or consent has been approved or given by the requisite percentage of shares. Each share of Class A common stock is convertible at the option of the holder and at no cost into one share of Class B common stock, and each share of Class B common stock is convertible at the option of the holder and at no cost into one share of Class A common stock. The conversion ratios will be adjusted proportionally to reflect any stock split, stock dividend, merger, reorganization, recapitalization or other change in the Class A common stock and Class B common stock. Upon conversion, converted shares resume the status of authorized and unissued shares. Subject to the preferences of the holders of any of the Company's preferred stock that may be outstanding from time to time, each share of Class A common stock and Class B common stock will have an equal and ratable right to receive dividends and other distributions in cash, property or shares of stock as may be declared by the Company's board of directors out of assets or funds legally available for the payment of dividends and other distributions. In the event of the liquidation, dissolution or winding up of the Company, subject to the preferences of the holders of any preferred stock of the Company that may be outstanding from time to time, holders of Class A common stock and Class B common stock will be entitled to share equally and ratably in the assets available for distribution to the Company's stockholders. There are no redemption or sinking fund provisions applicable to the Class A or the Class B common stock. Preferred stock The Company's amended and restated certificate of incorporation permits the Company to issue up to 10,000,000 shares of preferred stock in one or more series with such designations, titles, voting powers, preferences and rights and such qualifications, limitations and restrictions as may be fixed by the board of directors of the Company without any further action by the Company's stockholders. The Company's board of directors may increase or decrease the number of shares of any series of preferred stock following the issuance of that series of preferred stock, but in no instance can the number of shares of a series of preferred stock be reduced below the number of shares of the series then outstanding. Preferred Stock and Purchase of Capped Call Option On May 19, 2015, the Company completed its offering of 120,750 shares of the Company's 5.625% Series A cumulative perpetual convertible preferred stock ("Series A Convertible Preferred Stock") that provided $117.2 million of proceeds, net of underwriting fees and issuance costs of $3.4 million . Each share of the Series A Convertible Preferred Stock is entitled to dividends at a rate of 5.625% per annum which will be payable, when and if declared by the board of directors of the Company, quarterly, in arrears, on February 15, May 15, August 15 and November 15 of each year. The Company may, at its option, pay dividends in cash, common stock or a combination thereof . During the year ended December 31, 2015 the Company declared and accrued a cash dividend of $4.1 million . Each share of Series A Convertible Preferred Stock is non-voting and has a liquidity preference over the Company's Class A common stock and ranks senior to all classes or series of the Company's Class A common stock, but junior to all of the Company's existing and future indebtedness with respect to divided rights and rights upon the Company's involuntary liquidation, dissolution or winding down. Each share of Series A Convertible Preferred Stock is convertible, at the option of the holder, into a number of shares of our Class A common stock equal to the liquidation preference of $1,000 divided by the conversion rate. The initial conversion rate is 152.2476 shares (which equates to $6.57 per share) of the Company's Class A common stock for each share of the Series A Convertible Preferred Stock. At any time on or after May 20, 2020, the Company may elect to convert all outstanding shares of the Series A Convertible Preferred Stock into shares of the Company’s Class A common stock, cash or a combination thereof, at the Company’s election, in each case, based on the then-applicable conversion rate, if the last reported sale price of the Company’s Class A common stock equals or exceeds 150% of the then-current conversion price on at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days (including on the last trading day of such period) immediately prior to such election. At the time of conversion, the conversion rate may be adjusted based on certain events including but not limited to the issuance of cash dividends or Class A common stock as a dividends to the Company's Class A common shareholders or a share split or combination. In connection with the issuance and sale of the Series A Convertible Preferred Stock, the Company entered into a privately negotiated capped call option transaction (the “Capped Call Option Transaction”) with Nomura Global Financial Products Inc. (the “option counterparty”) for $15.9 million . The Capped Call Option Transaction is expected generally to reduce the potential dilution to the Company’s Class A common stock (if the Company elects to convert to common shares) and/or offset any cash payments that the Company is required to make upon conversion of any Series A Convertible Preferred Stock. The Capped Call Option Transaction has an initial effective strike price of $6.57 per share, which matches the initial conversion price of the Series A Convertible Preferred Stock, and a cap price of $8.39 per share. However, to the extent that the market price of Class A common stock, as measured under the terms of the Capped Call Option Transaction, exceeds the cap price thereof, there would nevertheless be dilution and/or such cash payments would not be offset. As the Capped Call Option Transaction is a free standing derivative that is indexed to the Company's own stock price and the Company controls if it is settled in cash or stock it qualifies for equity classification as a reduction to additional paid in capital. Treasury Stock Treasury stock of $137.4 million as of December 31, 2015 , compared to $79.8 million as of December 31, 2014 , resulted from $8.9 million acquired through repurchases of shares to cover employee minimum tax withholding obligations related to stock compensation vesting events under the Company's Equity Plan or other similar transactions and $48.7 million purchased in connection with a share repurchase program. The following represents the activity relating to the treasury stock held by the Company during the years ended December 31, 2015 : Treasury stock shares Cost Average cost Balance outstanding at December 31, 2014 23,507,656 $ 79,771 $ 3.39 Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions 1,654,331 8,907 5.38 Purchase of treasury stock 9,353,747 48,678 5.20 Balance outstanding at December 31, 2015 34,515,734 $ 137,356 $ 3.98 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income / (Loss) [Abstract] | |
Accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income includes the after tax change in unrealized gains and losses on foreign currency translation adjustments and net gain (loss) and amortization of prior service costs related to the Company's defined benefit plans. Foreign currency translation (a) Defined benefit plans (a) Total (dollars in thousands) Balance at January 1, 2013 $ 258 $ 98 $ 356 Net change (10 ) 246 236 Balance at December 31, 2013 248 344 592 Net change (231 ) (344 ) (575 ) Balance at December 31, 2014 $ 17 $ — $ 17 Net change (17 ) — (17 ) Balance at December 31, 2015 $ — $ — $ — (a) During the periods presented, the Company did not have material reclassifications out of other comprehensive income. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company calculates its basic and diluted earnings per share in accordance with US GAAP. Basic earnings per share is calculated by dividing net income attributable to the Company's common stockholders by the weighted average number of common shares outstanding for the period. As of December 31, 2015 , there were 105,604,658 shares outstanding. The Company has included 497,570 fully vested, unissued restricted stock units in its calculation of basic earnings per share. Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive items. The Company uses the treasury stock method to reflect the potential dilutive effect of the warrants (see Note 5 (a)), unexercised stock options, unvested restricted shares, restricted stock units, and SAR's. In calculating the number of dilutive shares outstanding, the shares of common stock underlying unvested restricted shares and restricted stock units are assumed to have been delivered, and options and warrants are assumed to have been exercised, on the grant date. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the sum of (a) the amount of compensation cost attributed to future services and not yet recognized and (b) the amount of tax benefit that would be credited to additional paid-in capital assuming vesting and delivery of the shares. The tax benefit is the amount resulting from a tax deduction for compensation in excess of compensation expense recognized for financial statement reporting purposes. All outstanding warrants were not included in the computation of diluted net income (loss) per common share for the years ended December 31, 2015 , 2014 and 2013, respectively, as their inclusion would have been anti-dilutive. The Company can elect to settle the Series A Convertible Preferred Stock in shares, cash, or a combination of both. The Company's intent is to settle in cash and, based on current and projected liquidity needs, the Company has the ability to do so. The computation of earnings per share is as follows: Year Ended December 31, 2015 2014 2013 (dollars in thousands, except per share data) Net income (loss) $ 58,975 $ 182,780 $ 17,840 Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds 15,246 15,564 13,193 Net income (loss) attributable to Cowen Group, Inc. 43,729 167,216 4,647 Preferred stock dividends 4,075 — — Net income (loss) attributable to Cowen Group, Inc. common stockholders $ 39,654 $ 167,216 4,647 Shares for basic and diluted calculations: Weighted average shares used in basic computation 110,090 114,926 116,703 Stock options 13 — — Performance based restricted stock 263 — — Stock appreciation rights 140 60 306 Restricted stock 5,668 4,500 4,108 Weighted average shares used in diluted computation 116,174 119,486 121,117 Earnings (loss) per share: Basic $ 0.36 $ 1.45 $ 0.04 Diluted $ 0.34 $ 1.40 $ 0.04 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company conducts its operations through two segments: the alternative investment segment and the broker‑dealer segment. These activities are conducted primarily in the United States and substantially all of its revenues are generated domestically. The performance measure for these segments is Economic Income (Loss), which management uses to evaluate the financial performance of and make operating decisions for the segments including determining appropriate compensation levels. Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors. In general, Economic Income (Loss) is a pre-tax measure that (i) eliminates the impact of consolidation for consolidated funds (ii) excludes goodwill and intangible impairment (iii) excludes certain other acquisition-related and/or reorganization expenses and (iv) excludes preferred stock dividends. In addition, Economic Income (Loss) revenues include investment income that represents the income the Company has earned in investing its own capital, including realized and unrealized gains and losses, interest and dividends, net of associated investment related expenses. For US GAAP purposes, these items are included in each of their respective line items. Economic Income (Loss) revenues also include management fees, incentive income and investment income earned through the Company's investment as a general partner in certain real estate entities and the Company's investment in the activist business. For US GAAP purposes, all of these items are recorded in other income (loss). In addition, Economic Income (Loss) expenses are reduced by reimbursement from affiliates, which for US GAAP purposes is presented gross as part of revenue. As further stated below, one major difference between Economic Income (Loss) and US GAAP net income (loss) is that Economic Income (Loss) presents the segments' results of operations without the impact resulting from the full consolidation of any of the Consolidated Funds. Consolidation of these funds results in including in income the pro rata share of the income or loss attributable to other owners of such entities which is reflected in net income (loss) attributable to redeemable non-controlling interest in consolidated subsidiaries in the accompanying consolidated statements of operations. This pro rata share has no effect on the overall financial performance for the alternative investment segment, as ultimately, this income or loss is not income or loss for the alternative investment segment itself. Included in Economic Income (Loss) is the actual pro rata share of the income or loss attributable to the Company as an investor in such entities, which is relevant in management making operating decisions and evaluating financial performance. The following tables set forth operating results for the Company's alternative investment and broker-dealer segments and related adjustments necessary to reconcile the Company's Economic Income (Loss) measure to arrive at the Company's consolidated US GAAP net income (loss): Year Ended December 31, 2015 Adjustments Alternative Investment Broker-Dealer Total Economic Income/(Loss) Funds Consolidation Other Adjustments US GAAP (dollars in thousands) Revenues Investment banking $ — $ 222,781 $ 222,781 $ — $ — $ 222,781 Brokerage — 160,436 160,436 — (2,714 ) (e) 157,722 Management fees 68,989 1,026 70,015 (1,307 ) (26,802 ) (a) 41,906 Incentive income (1,544 ) — (1,544 ) (736 ) 3,746 (a) 1,466 Investment Income 49,244 13,352 62,596 — (62,596 ) (c) — Interest and dividends — — — — 13,796 (c)(e) 13,796 Reimbursement from affiliates — — — (190 ) 21,747 (f) 21,557 Other revenue 14,492 890 15,382 — (11,656 ) (c) 3,726 Consolidated Funds revenues — — — 1,613 — 1,613 Total revenues 131,181 398,485 529,666 (620 ) (64,479 ) 464,567 Expenses Non interest expense 107,291 362,463 469,754 — 6,090 (c)(d) 475,844 Interest and dividends 11,839 4,745 16,584 — 9,636 (c)(e) 26,220 Consolidated Funds expenses — — — 2,310 — 2,310 Total expenses 119,130 367,208 486,338 2,310 15,726 504,374 Total other income (loss) — — — 8,781 42,505 (c) 51,286 Income taxes expense / (benefit) — — — — (47,496 ) (b) (47,496 ) (Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds (8,796 ) — (8,796 ) (5,851 ) (599 ) (15,246 ) Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. $ 3,255 $ 31,277 $ 34,532 $ — $ 9,197 $ 43,729 Year Ended December 31, 2014 Adjustments Alternative Investment Broker-Dealer Total Economic Income/(Loss) Funds Consolidation Other Adjustments US GAAP (dollars in thousands) Revenues Investment banking $ — $ 170,506 $ 170,506 $ — $ — $ 170,506 Brokerage 55 146,192 146,247 — (6,115 ) (e) 140,132 Management fees 64,774 — 64,774 (963 ) (23,184 ) (a) 40,627 Incentive income 45,708 — 45,708 (281 ) (42,642 ) (a) 2,785 Investment Income 45,193 20,022 65,215 — (65,215 ) (c) — Interest and dividends — — — — 48,870 (c)(e) 48,870 Reimbursement from affiliates — — — (342 ) 12,837 (f) 12,495 Other revenue 4,645 523 5,168 — 4,278 (c) 9,446 Consolidated Funds revenues — — — 2,915 — 2,915 Total revenues 160,375 337,243 497,618 1,329 (71,171 ) 427,776 Expenses Non interest expense 115,601 320,261 435,862 — 7,609 (c)(d) 443,471 Goodwill impairment — — — — 2,334 (g) 2,334 Interest and dividends 7,804 1,994 9,798 — 32,954 (c)(e) 42,752 Consolidated Funds expenses — — — 1,634 — 1,634 Total expenses 123,405 322,255 445,660 1,634 42,897 490,191 Total other income (loss) — — — 5,775 114,476 (c) 120,251 Income taxes expense / (benefit) — — — — (124,944 ) (b) (124,944 ) (Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds (7,802 ) — (7,802 ) (5,470 ) (2,292 ) (15,564 ) Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. $ 29,168 $ 14,988 $ 44,156 $ — $ 123,060 $ 167,216 Year Ended December 31, 2013 Adjustments Alternative Investment Broker-Dealer (1) Total Economic Income/(Loss) Funds Consolidation Other Adjustments US GAAP (dollars in thousands) Revenues Investment banking $ — $ 105,333 $ 105,333 $ — $ — $ 105,333 Brokerage — 121,065 121,065 — (6,472 ) (e) 114,593 Management fees 56,984 — 56,984 (1,146 ) (18,535 ) (a) 37,303 Incentive income 21,205 — 21,205 — (8,619 ) (a) 12,586 Investment income 30,713 5,947 36,660 — (36,660 ) (c) — Interest and dividends — — — — 39,454 (c)(e) 39,454 Reimbursement from affiliates — — — (99 ) 10,533 (f) 10,434 Other revenue 524 2,010 2,534 — 2,884 (c) 5,418 Consolidated Funds revenues — — — 3,398 — 3,398 Total revenues 109,426 234,355 343,781 2,153 (17,415 ) 328,519 Expenses Non interest expense 86,054 237,841 323,895 — 7,684 (c)(d) 331,579 Interest and dividends 231 119 350 — 26,949 (c)(e) 27,299 Consolidated Funds expenses — — — 2,039 — 2,039 Total expenses 86,285 237,960 324,245 2,039 34,633 360,917 Total other income (loss) — — — 2,618 48,077 (c) 50,695 Income taxes expense / (benefit) — — — — 457 (b) 457 (Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds (12,995 ) — (12,995 ) (2,732 ) 2,534 (13,193 ) Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. stockholders $ 10,146 $ (3,605 ) $ 6,541 $ — $ (1,894 ) $ 4,647 The following is a summary of the adjustments made to US GAAP net income (loss) for the segment to arrive at Economic Income (Loss): Funds Consolidation: The impacts of consolidation and the related elimination entries of the Consolidated Funds are not included in Economic Income (Loss). Adjustments to reconcile to US GAAP net income (loss) include elimination of incentive income and management fees earned from the Consolidated Funds and addition of fund expenses excluding management fees paid, fund revenues and investment income (loss). Other Adjustments: (a) Economic Income (Loss) recognizes revenues (i) net of distribution fees paid to agents and (ii) our proportionate share of management and incentive fees of certain real estate operating entities and the activist business. (b) Economic Income (Loss) excludes income taxes as management does not consider this item when evaluating the performance of the segment. (c) Economic Income (Loss) recognizes Company income from proprietary trading (including interest and dividends) net of related expenses. (d) Economic Income (Loss) recognizes the Company's proportionate share of expenses for certain real estate and other operating entities for which the investments are recorded under the equity method of accounting for investments. (e) Economic Income (Loss) recognizes stock borrow/loan activity (prior to January 2015) and other brokerage dividends as brokerage revenue. (f) Reimbursement from affiliates is shown as a reduction of Economic Income expenses, but is included as a part of revenues under US GAAP. (g) Economic Income (Loss) excludes goodwill impairment and other reorganization expenses. For the years ended December 31, 2015 and 2014, there was no one fund or other customer which represented more than 10% of the Company's total revenues. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2015 | |
Brokers and Dealers [Abstract] | |
Regulatory Requirements | Regulatory Requirements As registered broker-dealers, Cowen and Company, ATM Execution, Cowen Prime and Cowen Prime Trading are subject to the SEC's Uniform Net Capital Rule 15c3-1 (the “Rule”), which requires the maintenance of minimum net capital. Under the alternative method permitted by the Rule, Cowen and Company's minimum net capital requirement, as defined, is $1.0 million . Under the alternative method ATM Execution, Cowen Prime and Cowen Prime Trading are required to maintain minimum net capital, as defined, equal to $250,000 . The broker-dealers are not permitted to withdraw equity if certain minimum net capital requirements are not met. As of December 31, 2015 , Cowen and Company had total net capital of approximately $50.8 million , which was approximately $49.8 million in excess of its minimum net capital requirement of $1.0 million . As of December 31, 2015 , ATM Execution had total net capital of approximately $4.1 million , which was approximately $3.8 million in excess of its minimum net capital requirement of $250,000 . As of December 31, 2015 , Cowen Prime had total net capital of approximately $17.9 million , which was approximately $17.6 million in excess of its minimum net capital requirement of $250,000 . Cowen Prime Trading had total net capital of approximately $3.6 million , which was approximately $3.3 million in excess of its minimum net capital requirement of $250,000 . Cowen and Company, ATM Execution, Cowen Prime and Cowen Prime Trading claim exemption from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934 as their activities are limited to those set forth in the conditions for exemption appearing in paragraph (k)(2)(ii) of the Rule. Proprietary accounts of broker-dealers (“PAB”) held at the clearing broker are considered allowable assets for net capital purposes, pursuant to agreements between Cowen and Company, ATM Execution, Cowen Prime and Cowen Prime Trading and the clearing brokers, which require, among other things, that the clearing brokers performs computations for PAB and segregates certain balances on behalf of Cowen and Company, ATM Execution, Cowen Prime and Cowen Prime Trading, if applicable. Ramius UK Ltd. ("Ramius UK") and Cowen International Limited ("CIL") are subject to the capital requirements of the Financial Conduct Authority (“FCA”) of the UK. Financial Resources, as defined, must exceed the requirement of the FCA . As of December 31, 2015 , Ramius UK's Financial Resources of $0.28 million exceeded its minimum requirement of $0.05 million by $0.23 million . As of December 31, 2015 , CIL's Financial Resources of $3.2 million exceeded its minimum requirement of $2.1 million by $1.1 million . During the second quarter of 2015, the Company decided to cease regulated activities carried out by Cowen and Company (Asia) Limited (“Cowen Asia”). On November 27, 2015, the Securities and Futures Commission (“SFC”) of Hong Kong revoked the license. As of December 31, 2015, Cowen Asia was no longer subject to the financial resources requirements of the SFC in Hong Kong . Cowen’s Luxembourg reinsurance companies, Vianden RCG Re SCA (“Vianden”) and Hollenfels, are subject to minimum net capital requirements as required by relevant European Commission directives and local regulatory rules in Luxembourg. As of December 31, 2015 , Vianden and Hollenfels had total regulatory capital of approximately $64.0 million and $77.4 million , respectively, which was approximately $58.2 million and $73.4 million in excess of the total minimum net capital requirement of $6.6 million and $4.0 million , respectively . Based on minimum capital and surplus requirements pursuant to the laws of the state of New York that apply to captive insurance companies, RCG Insurance Company, Cowen’s captive insurance company incorporated and licensed in the state of New York, was required to maintain capital and surplus of approximately $0.3 million as of December 31, 2015 . RCG Insurance Company’s capital and surplus as of December 31, 2015 totaled approximately $22 million . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company and its affiliated entities are the managing member, general partner and/or investment manager to the Company's alternative asset management products and certain managed accounts. Management fees and incentive income are primarily earned from affiliated entities. As of December 31, 2015 and 2014 , $6.3 million and $5.1 million , respectively, included in fees receivable are earned from related parties. The Company may, at its discretion, reimburse certain fees charged to the funds that it manages to avoid duplication of fees when such funds have an underlying investment in another affiliated investment fund. The Company reimbursed the funds it manages an immaterial amount for the year ended December 31, 2015. For the years ended December 31, 2014 and 2013, the Company reimbursed the funds it manages $0.7 million and $1.7 million , which were recorded net in management fees and incentive income in the accompanying consolidated statements of operations. As of December 31, 2015 and 2014 , related amounts still payable were $0.1 million and $0.1 million , respectively, and were reflected in fees payable in the accompanying consolidated statements of financial condition. Fees receivable and fees payable are recorded at carrying value, which approximates fair value. The Company may also make loans to employees or other affiliates, excluding executive officers of the Company. These loans are interest bearing and settle pursuant to the agreed-upon terms with such employees or affiliates and are included in due from related parties in the accompanying consolidated statements of financial condition. As of December 31, 2015 and 2014 , loans to employees (which do not include loans to any executive officers) of $5.5 million and $6.1 million , respectively, were included in due from related parties on the accompanying consolidated statements of financial condition. Of these amounts $1.2 million and $3.9 million , respectively, are related to forgivable loans. These forgivable loans provide for a cash payment up-front to employees, with the amount due back to the Company forgiven over a vesting period. An employee that voluntarily ceases employment, or is terminated with cause, is generally required to pay back to the Company any unvested forgivable loans granted to them. The forgivable loans are recorded as an asset to the Company on the date of grant and payment, and then amortized to compensation expense on a straight-line basis over the vesting period. The vesting period on forgivable loans is generally one to three years. The Company recorded compensation expense of $3.2 million , $4.4 million , and $3.2 million for the years ended December 31, 2015 , 2014 and 2013, respectively. This expense is included in employee compensation and benefits in the accompanying consolidated statement of operations. For the years ended December 31, 2015 , and 2014 , the interest income was insignificant for all loans and advances. The remaining balance included in due from related parties primarily relates to amounts due to the Company from affiliated funds and real estate entities due to expenses paid on their behalf. Included in due to related parties is approximately $0.3 million and $0.5 million as of December 31, 2015 and December 31, 2014 , respectively, related to a subordination agreement with an investor in certain real estate funds. This total is based on a hypothetical liquidation of the real estate funds as of the balance sheet date. During March 2015, the Company issued a $15.0 million unsecured loan to its real estate business with maturity of June 29, 2015 and an effective annualized interest rate of 8.8% . This balance was fully repaid to the Company during June 2015. The interest income for the year ended December 31, 2015 was $0.3 million . Employees and certain other related parties invest on a discretionary basis within consolidated entities. These investments generally are subject to preferential management fee and performance fee arrangements. As of December 31, 2015 and 2014 , such investments aggregated $ 21.3 million and $ 15.1 million , respectively, were included in redeemable non-controlling interests on the accompanying consolidated statements of financial condition. Their share of the net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds aggregated $ 10.4 million and $ 10.6 million for the years ended December 31, 2015 and 2014 , respectively. |
Guarantees and Off-Balance Shee
Guarantees and Off-Balance Sheet Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Guarantees and Off Balance Sheet Arrangements [Abstract] | |
Guarantees and Off-Balance Sheet Arrangements | Guarantees and Off-Balance Sheet Arrangements Guarantees US GAAP requires the Company to disclose information about its obligations under certain guarantee arrangements. Those standards define guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying security (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. Those standards also define guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement as well as indirect guarantees of the indebtedness of others. In the normal course of its operations, the Company enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss to be remote. The Company indemnifies and guarantees certain service providers, such as clearing and custody agents, trustees and administrators, against specified potential losses in connection with their acting as an agent of, or providing services to, the Company or its affiliates. The Company also indemnifies some clients against potential losses incurred in the event specified third-party service providers, including sub-custodians and third-party brokers, improperly execute transactions. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make significant payments under these arrangements and has not recorded any contingent liability in the consolidated financial statements for these indemnifications. The Company also provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. The Company may also provide standard indemnifications to some counterparties to protect them in the event additional taxes are owed or payments are withheld, due either to a change in or adverse application of certain tax laws. These indemnifications generally are standard contractual terms and are entered into in the normal course of business. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the accompanying consolidated financial statements for these indemnifications. Off-Balance Sheet Arrangements The Company has no material off-balance sheet arrangements as of December 31, 2015 and 2014. However, through indemnification provisions in the clearing agreement, customer activities may expose the Company to off-balance-sheet credit risk. Pursuant to the clearing agreement, the Company is required to reimburse the Company's clearing broker, without limit, for any losses incurred due to a counterparty's failure to satisfy its contractual obligations. However, these transactions are collateralized by the underlying security, thereby reducing the associated risk to changes in the market value of the security through the settlement date. In addition, during the normal course of business, the Company has exposure to a number of risks including market risk, currency risk, credit risk, operational risk, liquidity risk and legal risk. As part of the Company's risk management process, these risks are monitored on a regular basis throughout the course of the year. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 23, 2016, the Company's Board of Directors approved a $7.0 million increase in the Company's share repurchase program (see Note 20 ) bringing the total remaining shares available for repurchase to $25.0 million . The Company has evaluated events that have occurred after the balance sheet date but before the financial statements are issued and has determined that there were no additional subsequent events requiring adjustment or disclosure in the consolidated financial statements. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information The following table presents unaudited quarterly results of operations for 2015 and 2014 . These quarterly results reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results. Revenues and net income (loss) can vary significantly from quarter to quarter due to the nature of the Company's business activities. Cowen Group, Inc. Quarterly Financial Information (Unaudited) Quarter Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 (in thousands) Total revenues $ 121,094 $ 119,608 $ 113,254 $ 110,611 Net Income (loss) before income taxes 26,365 13,978 (11,083 ) (17,781 ) Income tax expense (benefit) 6,947 3,346 (5,081 ) (52,708 ) Net income (loss) from continuing operations 19,418 10,632 (6,002 ) 34,927 Net Income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds 2,720 3,916 4,344 4,266 Net income (loss) attributable to Cowen Group, Inc. $ 16,698 $ 6,716 $ (10,346 ) $ 30,661 Preferred stock dividends — 755 1,603 1,717 Net income (loss) attributable to Cowen Group, Inc. common stockholders 16,698 5,961 (11,949 ) 28,944 Earnings (loss) per share: Basic $ 0.15 $ 0.05 $ (0.11 ) $ 0.27 Diluted $ 0.14 $ 0.05 $ (0.11 ) $ 0.26 Weighted average number of common shares: Basic 112,053 111,915 109,191 107,236 Diluted 118,590 118,226 109,191 112,730 Quarter Ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 (in thousands) Total revenues $ 106,677 $ 92,902 $ 107,101 $ 121,096 Net Income (loss) before income taxes 14,106 13,644 10,670 19,416 Income tax expense (benefit) 79 46 141 (125,210 ) Net income (loss) from continuing operations 14,027 13,598 10,529 144,626 Net Income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds 4,187 5,216 4,006 2,155 Net income (loss) attributable to Cowen Group, Inc. stockholders $ 9,840 $ 8,382 $ 6,523 $ 142,471 Earnings (loss) per share: Basic $ 0.09 $ 0.07 $ 0.06 $ 1.26 Diluted $ 0.08 $ 0.07 $ 0.05 $ 1.21 Weighted average number of common shares: Basic 115,680 115,569 114,969 113,492 Diluted 122,898 120,199 118,801 118,222 |
Significant Accounting Polici36
Significant Accounting Policies - Annual (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of Presentation These consolidated financial statements are prepared in accordance with US GAAP as promulgated by the Financial Accounting Standards Board ("FASB") through Accounting Standards Codification as the source of authoritative accounting principles in the preparation of financial statements, and include the accounts of the Company, its operating and other subsidiaries, and entities in which the Company has a controlling financial interest or a substantive, controlling general partner interest. All material intercompany transactions and balances have been eliminated on consolidation. Certain fund entities that are consolidated in these accompanying consolidated financial statements, as further discussed below, are not subject to the consolidation provisions with respect to their own controlled investments pursuant to their specialized accounting. The Company serves as the managing member/general partner and/or investment manager to affiliated fund entities which it sponsors and manages. Funds in which the Company has a controlling financial interest are consolidated with the Company pursuant to US GAAP as described below. Consequently, the Company's consolidated financial statements reflect the assets, liabilities, income and expenses of these funds on a gross basis. The ownership interests in these funds that are not owned by the Company are reflected as redeemable non-controlling interests in consolidated subsidiaries in the accompanying consolidated financial statements. The management fees and incentive income earned by the Company from these funds are eliminated in consolidation. Certain reclassifications have been made to prior period amounts in order to conform to current period presentation. During 2014, prior-period amounts for various costs relating to trading and execution activities previously presented as other expenses and communications (client connectivity charges) are now presented as floor brokerage and trade execution costs in the consolidated statements of operations to conform to the current year’s presentation. |
Principles of consolidation | Principles of consolidation The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting operating entity ("VOE") or a variable interest entity ("VIE") under US GAAP. Voting Operating Entities — VOEs are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently and (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity's economic performance. Under US GAAP, the usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. Accordingly, the Company consolidates VOEs in which it owns a majority of the entity's voting shares or units. US GAAP also provides that a general partner of a limited partnership (or a managing member, in the case of a limited liability company) is presumed to control the partnership, and thus should consolidate it, unless a simple majority of the limited partners has the right to remove the general partner without cause or to terminate the partnership. In accordance with these standards, the Company presently consolidates five entities deemed to be VOEs for which it acts as the general partner and investment manager. As of December 31, 2015 and 2014 , the Company consolidated the following funds: Ramius Enterprise LP (“Enterprise LP”) and Ramius Merger Fund LLC (the "Merger Fund") and as of the date that the following companies began operations: May 1, 2015, Quadratic Fund LLC ("Quadratic LLC"); September 1, 2015, Cowen Private Investments LP ("Cowen Private"); December 31, 2015, Ramius Archview Credit and Distressed Fund ("Archview Fund") (collectively the "Consolidated Funds") . RCG Linkem II LLC, an investment company, is consolidated during the period ended December 31, 2015 . It was formed to make an investment in a wireless broadband communication provider in Italy. Cowen AV Investment LLC, an investment company, was consolidated until the first quarter of 2015 when it was liquidated. It was formed to make an investment in a biotechnology company focused on developing gene therapies for certain medical needs. Ramius Co-Investment I LLC and Ramius Co-Investment II LLC, both investment companies, were formed to invest in biomedical companies that develop gene therapies for severe genetic disorders. Ramius Co-Investment I LLC was consolidated as of December 31, 2013 but was deconsolidated during the first quarter of 2014 when it was liquidated. Ramius Co-Investment II LLC was consolidated as of December 31, 2014 and was liquidated during the quarter ended September 30, 2014. The Company determined that all four investment companies are (or were) VOE's due to the Company's controlling equity interests held through the managing member and/or affiliates and control exercised by the managing member who is not subject to substantive removal rights. Variable Interest Entities— VIEs are entities that lack one or more of the characteristics of a VOE. In accordance with US GAAP, an enterprise must consolidate all VIEs of which it is the primary beneficiary. Under the US GAAP consolidation model for VIEs, an enterprise that (1) has the power to direct the activities of a VIE that most significantly impacts the VIE's economic performance, and (2) has an obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE, is considered to be the primary beneficiary of the VIE and thus is required to consolidate it. However, the Financial Accounting Standards Board ("FASB") has deferred the application of the revised consolidation model for VIEs that meet the following conditions: (a) the entity has all the attributes of an investment company as defined under AICPA Audit and Accounting Guide, Investment Companies, or does not have all the attributes of an investment company but is an entity for which it is acceptable based on industry practice to apply measurement principles that are consistent with investment companies, (b) the reporting entity does not have explicit or implicit obligations to fund any losses of the entity that could potentially be significant to the entity, and (c) the entity is not a securitization entity, asset-backed financing entity or an entity that was formerly considered a qualifying special-purpose entity. The Company's involvement with its funds is such that all three of the above conditions are met for substantially all of the funds managed by the Company. Where the VIEs have qualified for the deferral, the analysis is based on previous consolidation rules. These rules require an analysis to (a) determine whether an entity in which the Company holds a variable interest is a variable interest entity and (b) whether the Company's involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (e.g., management and performance related fees), would be expected to absorb a majority of the VIE's expected losses, receive a majority of the VIEs expected residual returns, or both. If these conditions are met, the Company is considered to be the primary beneficiary of the VIE and thus is required to consolidate it. The Company reconsiders whether it is the primary beneficiary of a VIE by performing a periodic qualitative and/or quantitative analysis of the VIE that includes a review of, among other things, its capital structure, contractual agreements between the Company and the VIE, the economic interests that create or absorb variability, related party relationships and the design of the VIE. As of December 31, 2015 and 2014 , the Company consolidated three and two VIEs, respectively. As of December 31, 2015 and 2014 , the total net assets of the consolidated VIEs were $2.2 million and $2.0 million , respectively. The VIEs act as managing members/general partners and/or investment managers to affiliated fund entities which they sponsor and/or manage. The VIEs are financed through their operations and/or loan agreements with the Company. As of December 31, 2015 and 2014 , the Company holds variable interests in Ramius Enterprise Master Fund Ltd (“Enterprise Master”), Ramius Merger Master Fund Ltd ("Merger Master"), and as of May 1, 2015, Quadratic Master Fund LTD (Quadratic Master Fund") (collectively the “Unconsolidated Master Funds”) through the Consolidated Funds. Investment companies, which account for their investments under the specialized industry accounting guidance for investment companies prescribed under US GAAP, are not subject to the consolidation provisions for their investments. Therefore, the Company has not consolidated the Unconsolidated Master Funds. In the ordinary course of business, the Company also sponsors various other entities that it has determined to be VIEs. These VIEs are primarily funds and real estate entities for which the Company serves as the general partner, managing member and/or investment manager with decision-making rights. The Company does not consolidate the Unconsolidated Master Funds or real estate entities that are VIEs as it has concluded that it is not the primary beneficiary in each instance. Fund investors are entitled to all of the economics of these VIEs with the exception of the management fee and incentive income, if any, earned by the Company. The Company's involvement with funds and real estate entities that are unconsolidated VIEs is limited to providing investment management services in exchange for management fees and incentive income. Although the Company may advance amounts and pay certain expenses on behalf of the funds and real estate entities that it considers to be VIEs, it does not provide, nor is it required to provide, any type of substantive financial support to these entities outside of regular investment management services (see Note 5 for additional disclosures on VIEs). Equity Method Investments — For operating entities over which the Company exercises significant influence but which do not meet the requirements for consolidation as outlined above, the Company uses the equity method of accounting. The Company's investments in equity method investees are recorded in other investments in the accompanying consolidated statements of financial condition. The Company's share of earnings or losses from equity method investees is included in net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The difference between the carrying value of the equity method investment and its estimated fair value is recognized as an impairment charge when the loss in value is deemed other than temporary. Other — If the Company does not consolidate an entity, apply the equity method of accounting or account for an investment under the cost method, the Company accounts for such entities (primarily, all securities of such entity which are bought and held principally for the purpose of selling them in the near term as trading securities) in accordance with US GAAP, at fair value with unrealized gains (losses) resulting from changes in fair value reflected within net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. Retention of Specialized Accounting — The Consolidated Funds are investment companies and apply specialized industry accounting for investment companies. The Company has retained this specialized accounting for these funds pursuant to US GAAP. The Company reports its investments on the consolidated statements of financial condition at their estimated fair value, with unrealized gains (losses) resulting from changes in fair value reflected within net realized and unrealized gains (losses) on investments and other transactions. Accordingly, the accompanying consolidated financial statements reflect different accounting policies for investments depending on whether or not they are held through a consolidated investment company. In addition, the Company's broker-dealer subsidiaries , Cowen and Company, LLC ("Cowen and Company"), ATM Execution LLC ("ATM Execution"), Cowen Prime, Cowen Prime Trading, ATM USA, LLC ("ATM USA") (liquidated during the first quarter of 2015) and Cowen Equity Finance LP ("Cowen Equity Finance") (liquidated during the first quarter of 2015), apply the specialized industry accounting for brokers and dealers in securities also prescribed under US GAAP. The Company also retains specialized accounting in consolidation. |
Use of estimates | Use of estimates The preparation of the accompanying consolidated financial statements in conformity with US GAAP requires the management of the Company to make estimates and assumptions that affect the fair value of securities and other investments, the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the accompanying consolidated financial statements, the accounting for goodwill and identifiable intangible assets and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents The Company considers investments in money market funds and other highly liquid investments with original maturities of three months or less which are deposited with a bank or prime broker to be cash equivalents. Cash and cash equivalents held at Consolidated Funds, although not legally restricted, are not available to fund the general liquidity needs of the Company. The Company may also exposed to credit risk as a result of cash being held at several banks. |
Valuation of investments and derivative contracts | Valuation of investments and derivative contracts US GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and Level 3 Fair value is determined based on pricing inputs that are unobservable and includes situations where there is little, if any, market activity for the asset or liability. The determination of fair value for assets and liabilities in this category requires significant management judgment or estimation. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Company. The Company considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company's perceived risk of that instrument. The Company and its operating subsidiaries act as the manager for the Consolidated Funds. Both the Company and the Consolidated Funds hold certain investments which are valued by the Company, acting as the investment manager. The fair value of these investments is generally estimated based on proprietary models developed by the Company, which include discounted cash flow analysis, public market comparables, and other techniques and may be based, at least in part, on independently sourced market information. The material estimates and assumptions used in these models include the timing and expected amount of cash flows, the appropriateness of discount rates used, and, in some cases, the ability to execute, timing of, and estimated proceeds from expected financings. Significant judgment and estimation goes into the selection of an appropriate valuation methodology as well as the assumptions used in these models, and the timing and actual values realized with respect to investments could be materially different from values derived based on the use of those estimates. The valuation methodologies applied impact the reported value of the Company's investments and the investments held by the Consolidated Funds in the consolidated financial statements. Certain of the Company's investments are relatively illiquid or thinly traded and may not be immediately liquidated on demand if needed. Fair values assigned to these investments may differ significantly from the fair values that would have been used had a ready market for the investments existed and such differences could be material . The Company primarily uses the “market approach” to value its financial instruments measured at fair value. In determining an instrument's level within the hierarchy, the Company categorizes the Company's financial instruments into three categories: securities, derivative contracts and other investments. To the extent applicable, each of these categories can further be divided between those held long or sold short. The Company has the option to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The election is made on an instrument by instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. The Company has elected the fair value option for its investments through Cowen Investments, LLC and certain investments it holds though its operating companies. This option has been elected because the Company believes that it is consistent with the manner in which the business is managed as well as the way that financial instruments in other parts of the business are recorded. Securities — Securities with values based on quoted market prices in active markets for identical assets are classified within level 1 of the fair value hierarchy. These securities include active listed equities, certain U.S. government and sovereign obligations, ETF's, mutual funds and certain money market securities. The Company does not adjust the quoted price for such instruments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price. Certain positions for which trading activity may not be readily visible, consisting primarily of convertible debt, corporate debt and loans and restricted equities, are stated at fair value and classified within level 2 of the fair value hierarchy. The estimated fair values assigned by management are determined in good faith and are based on available information considering, trading activity, broker quotes, quotations provided by published pricing services, counterparties and other market participants, and pricing models using quoted inputs, and do not necessarily represent the amounts which might ultimately be realized. As level 2 investments include positions that are not always traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability. Derivative contracts — Derivative contracts can be exchange-traded or privately negotiated over-the-counter (“OTC”). Exchange-traded derivatives, such as futures contracts and exchange-traded option contracts, are typically classified within level 1 or level 2 of the fair value hierarchy depending on whether or not they are deemed to be actively traded. OTC derivatives, such as generic forwards, swaps and options, have inputs which can generally be corroborated by market data and are therefore classified within level 2. OTC derivatives, such as swaps and options where market data is not readily available or observable are classified as level 3. Other investments — Other investments consist primarily of portfolio funds, real estate investments and equity method investments, which are valued as follows : i. Portfolio funds— Portfolio funds (“Portfolio Funds”) include interests in funds and investment companies which may be managed by the Company or its affiliates. The Company follows US GAAP regarding fair value measurements and disclosures relating to investments in certain entities that calculate net asset value (“NAV”) per share (or its equivalent). The guidance permits, as a practical expedient, an entity holding investments in certain entities that either are investment companies as defined by the AICPA Audit and Accounting Guide, Investment Companies, or have attributes similar to an investment company, and calculate net asset value per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment. In accordance with US GAAP, investments which are valued using NAV per share as a practical expedient are not categorized within the fair value hierarchy. ii. Real estate investments— Real estate debt and equity investments are valued at fair value. The fair value of real estate investments are estimated based on the price that would be received to sell an asset in an orderly transaction between marketplace participants at the measurement date. Real estate investments without a public market are valued based on assumptions and valuation techniques used by the Company. Such valuation techniques may include discounted cash flow analysis, prevailing market capitalization rates or earnings multiples applied to earnings from the investment, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties, consideration of the amount that currently would be required to replace the asset, as adjusted for obsolescence, as well as independent external appraisals. In general, the Company considers several valuation techniques when measuring the fair value of a real estate investment. However, in certain circumstances, a single valuation technique may be appropriate. Real estate investments are reviewed on a quarterly basis by the Company for significant changes at the property level or a significant change in the overall market which would impact the value of the real estate investment resulting in unrealized appreciation or depreciation. Real estate and capital markets are cyclical in nature. Property and investment values are affected by, among other things, the availability of capital, occupancy rates, rental rates and interest and inflation rates. In addition, the Company invests in real estate and real estate related investments for which no liquid market exists. The market prices for such investments may be volatile and may not be readily ascertainable. Amounts ultimately realized by the Company from investments sold may differ from the fair values presented, and the differences could be material. The Company's real estate investments are typically categorized as a level 3 investment within the fair value hierarchy as management uses significant unobservable inputs in determining their estimated fair value. See Notes 5 and 6 for further information regarding the Company's investments, including equity method investments, and fair value measurements. |
Due from/due to related parties | Due from/due to related parties The Company may advance amounts and pay certain expenses on behalf of employees of the Company or other affiliates of the Company. These amounts settle in the ordinary course of business. Such amounts are included in due from and due to related parties, respectively, on the accompanying consolidated statements of financial condition. |
Receivable from and payable to brokers | Receivable from and payable to brokers Receivable from and payable to brokers, includes cash held at clearing brokers, amounts receivable or payable for unsettled transactions, monies borrowed and proceeds from short sales equal to the fair value of securities sold, but not yet purchased. Pursuant to the Company's prime broker agreements, these balances are presented net (assets less liabilities) across balances with the same broker. |
Securities borrowed and securities loaned and repurchase agreements | Securities borrowed and securities loaned Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced or received on a gross basis. The related rebates are recorded in the statement of operations as interest income and interest expense. Securities borrowed transactions require the Company to deposit cash collateral with the lender. With respect to securities loaned, the Company receives cash collateral from the borrower. The initial collateral advanced or received approximates or is greater than the market value of securities borrowed or loaned. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or returned, as necessary. Securities borrowed and loaned may also result in credit exposures for the Company in an event that the counterparties are unable to fulfill their contractual obligations. The Company minimizes its credit risk by continuously monitoring its credit exposure and collateral values by demanding additional or returning excess collateral in accordance with the netting provisions available in the master securities lending contracts in place with the counterparties. Fees and interest received or paid are recorded in interest and dividend income and interest expense, respectively, on an accrual basis. In cases where the fair value basis of accounting is elected, any resulting change in fair value is reported in trading revenues. Accrued interest income and expense are recorded in the same manner as under the accrual method. During the fourth quarter of 2014, the Company made a decision to wind down the operations of its securities lending business. At December 31, 2014 , the Company did not have any securities lending transactions for which fair value basis of accounting was elected. |
Fixed Assets | Fixed Assets Fixed assets are stated at cost less accumulated depreciation or amortization. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or lease term. When the Company commits to a plan to abandon fixed assets or leasehold improvements before the end of its original useful life, the estimated depreciation or amortization period is revised to reflect the shortened useful life of the asset. Other fixed assets are depreciated on a straight-line basis over their estimated useful lives. Asset Depreciable Lives Principal Method Telephone and computer equipment 3-8 years Straight-line Computer software 3-5 years Straight-line Furniture and fixtures 5-8 years Straight-line Leasehold improvements 5-15 years Straight-line Capitalized lease asset 5 years Straight-line |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill represents the excess of the purchase price consideration of acquired companies over the estimated fair value assigned to the individual assets acquired and liabilities assumed. Goodwill is allocated to the Company's reporting units at the date the goodwill is initially recorded. Once goodwill has been allocated to the reporting units, it generally no longer retains its identification with a particular acquisition, but instead becomes identifiable with the reporting unit. As a result, all of the fair value of each reporting unit is available to support the value of goodwill allocated to the unit. In accordance with US GAAP, the Company tests goodwill for impairment on an annual basis, at December 31 st each year, or at an interim period if events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Under US GAAP, the Company tests goodwill for impairment by assessing the qualitative factors including, macroeconomic environment, industry and market specific conditions, financial performance and events specific to the reporting unit to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. Based on the results of the qualitative assessment the Company performs the two-step goodwill impairment test. The first step requires a comparison of the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, the related goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds the fair value, there is an indication that the related goodwill might be impaired and the step two is performed to measure the amount of impairment, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit's goodwill with its carrying amount to measure the amount of impairment, if any. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. In other words, the estimated fair value of the reporting unit is allocated to all of its assets and liabilities (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment is recognized in an amount equal to that excess. Goodwill impairment tests involve significant judgment in determining the estimates of future cash flows, discount rates, economic forecast and other assumptions which are then used in acceptable valuation techniques, such as the market approach (earning and or transactions multiples) and / or income approach (discounted cash flow method). Changes in these estimates and assumptions could have a significant impact on the fair value and any resulting impairment of goodwill. See Note 9 for further discussion. Intangible assets with finite lives are amortized over their estimated average useful lives. The Company does not have any intangible assets deemed to have indefinite lives. Intangible assets are tested for potential impairment whenever events or changes in circumstances suggest that an asset or asset group's carrying value may not be fully recoverable. Similar to goodwill impairment test, an impairment loss, calculated as the difference between the estimated fair value and the carrying value of an asset or asset group, is recognized in the accompanying consolidated statements of operations if the sum of the estimated undiscounted cash flows relating to the asset or asset group is less than the corresponding carrying value. |
Debt | Debt Long-term debt is carried at the principal amount borrowed net of any discount/premium. The discount is accreted to interest expense using the effective interest method over the remaining life of the underlying debt obligations. Accrued but unpaid coupon interest is included in accrued expenses and other liabilities in the accompanying consolidated statements of financial condition. |
Deferred rent | Deferred rent Deferred rent primarily consists of step rent, allowances from landlords and valuing the Company's lease properties in accordance with US GAAP. Step rent represents the difference between actual operating lease payments due and straight-line rent expense, which is recorded by the Company over the term of the lease, including the build-out period. This amount is recorded as deferred rent in the early years of the lease, when cash payments are generally lower than straight-line rent expense, and reduced in the later years of the lease when payments begin to exceed the straight-line expense. Landlord allowances are generally comprised of amounts received and/or promised to the Company by landlords and may be received in the form of cash or free rent. These allowances are part of the negotiated terms of the lease. The Company records a receivable from the landlord and a deferred rent liability when the allowances are earned. This deferred rent is amortized into income (through lower rent expense) over the term (including the pre-opening build-out period) of the applicable lease, and the receivable is reduced as amounts are received from the landlord. Liabilities resulting from valuing the Company's leased properties acquired through business combinations are quantified by comparing the current fair value of the leased space to the current rental payments on the date of acquisition. Deferred rent, included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated statements of financial condition, as of December 31, 2015 and 2014 is $12.0 million and $13.1 million , respectively. |
Legal reserves | Legal reserves In accordance with US GAAP, the Company establishes reserves for contingencies when the Company believes that it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. The Company discloses a contingency if there is at least a reasonable possibility that a loss may have been incurred and there is no reserve for the loss because the conditions above are not met. The Company's disclosure includes an estimate of the reasonably possible loss or range of loss for those matters, for which an estimate can be made. Neither reserve nor disclosure is required for losses that are deemed remote. |
Capital withdrawals payable | Capital withdrawals payable Capital withdrawals from the Consolidated Funds are recognized as liabilities, net of any incentive income, when the amount requested in the withdrawal notice represents an unconditional obligation at a specified or determined date (or dates) or upon an event certain to occur. This generally may occur either at the time of the receipt of the notice, or on the last day of a reporting period, depending on the nature of the request. As a result, withdrawals paid after the end of the year, but based upon year-end capital balances are reflected as liabilities at the balance sheet date. |
Redeemable non-controlling interests in consolidated subsidiaries | Redeemable non-controlling interests in consolidated subsidiaries Redeemable non-controlling interests represent the pro rata share of the book value of the financial positions and results of operations attributable to the other owners of the consolidated subsidiaries. Redeemable non-controlling interests related to Consolidated Funds are generally subject to annual, semi-annual or quarterly withdrawals or redemptions by investors in these funds, sometimes following the expiration of a specified period of time (generally one year), or may only be withdrawn subject to a redemption fee (generally ranging from 1% to 5% ). Likewise, non-controlling interests related to certain other consolidated entities are generally subject to withdrawal, redemption, transfer or put/call rights that permit such non-controlling investors to withdraw from the entities on varying terms and conditions. Because these non-controlling interests are redeemable at the option of the non-controlling interests, they have been classified as temporary equity in the accompanying consolidated statements of financial condition. When redeemed amounts become legally payable to investors on a current basis, they are reclassified as a liability. |
Stockholders' Equity | Treasury stock In accordance with the US GAAP relating to repurchases of an entity's own outstanding common stock, the Company records the purchases of stock held in treasury at cost and reports them separately as a deduction from total stockholders' equity on the accompanying consolidated statements of financial condition and changes in equity. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). The Company's other comprehensive income (loss) is comprised of valuation adjustments to the Company's defined benefit plans and foreign currency cumulative translation adjustments. |
Revenue recognition | Revenue recognition The Company's principle sources of revenue are derived from two segments: an alternative investment segment and a broker-dealer segment, as more fully described below. Our alternative investment segment generates revenue through three principle sources: management fees, incentive income and investment income from the Company's own capital. Our broker-dealer segment generates revenue through three principle sources: investment banking, brokerage and investment income. Management fees The Company earns management fees from affiliated funds and certain managed accounts that it serves as the investment manager based on assets under management. The actual management fees received vary depending on distribution fees or fee splits paid to third parties either in connection with raising the assets or structuring the investment. Management fees are generally paid on a quarterly basis at the beginning of each quarter in arrears and are prorated for capital inflows and redemptions. While some investors may have separately negotiated fees, in general the management fees are as follows: • Hedge Funds. Management fees for the Company's hedge funds are generally charged at an annual rate of up to 2% of assets under management or notional trading level. Management fees are generally calculated monthly based on assets under management at the end of each month before incentive income . • Mutual Funds. Management fees for the Company’s mutual funds (State Street/Ramius Managed Futures Strategy Fund and Ramius Event Driven Equity Fund) are generally charged at an annual rate of up to 1.35% of assets under management (subject to an overall expense cap of up to 1.9% ). • Alternative Solutions. Management fees for the Alternative Solutions business are generally charged at an annual rate of up to 2% of assets under management or notional trading level. Management fees are generally calculated monthly based on assets under management at the end of each month before incentive income or based on assets under management at the beginning of the month. Management fees earned from the Alternative Solutions business are based and initially calculated on estimated net asset values and actual fees ultimately earned could be impacted to the extent of any changes in these estimates . • Real Estate. Management fees from the Company's real estate business are generally charged by their general partners at an annual rate from 0.25% to 1.50% of total capital commitments during the investment period and of invested capital or net asset value of the applicable fund after the investment period has ended. Management fees are typically paid to the general partners on a quarterly basis, at the beginning of the quarter in arrears, and are prorated for changes in capital commitments throughout the investment period and invested capital after the investment period. The general partners of the funds on the RCG Longview platform are owned jointly by the Company and third parties. Accordingly, the management fees (in addition to incentive income and investment income) generated by these real estate funds are split between the Company and the other general partners. Pursuant to US GAAP, these fees and other income received by the general partners that are accounted for under the equity method of accounting and are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. • HealthCare Royalty Partners. During the investment period (as defined in the management agreement of the HealthCare Royalty Partners' funds), management fees for the funds and managed accounts advised by HealthCare Royalty Partners are generally charged at an annual rate of up to 2% of committed capital. After the investment period, management fees are generally charged at an annual rate of up t o 2% of the net asset value of the funds or managed accounts or the aggregate cost basis of the unrealized investments held by the funds. Management fees for the HealthCare Royalty Partners funds are calculated on a quarterly basis. • Ramius Trading Strategies. Management fees and platform fees for the Company's private commodity trading advisory business are generally charged at an annual rate of up to 0.5% . Management and platform fees are generally calculated monthly based on each account's notional trading level at the end of each month . Incentive income The Company earns incentive income based on net profits (as defined in the respective investment management agreements) with respect to certain of the Company's funds and managed accounts, allocable for each fiscal year that exceeds cumulative unrecovered net losses, if any, that have been carried forward from prior years. For the products the Company offers, incentive income earned is typically up to 20% for hedge funds and up to 10% for alternative solutions products (in certain cases on performance in excess of a benchmark), of the net profits earned for the full year that are attributable to each fee-paying investor. Generally, incentive income on real estate funds is earned after the investor has received a full return of their invested capital, plus a preferred return. However, for certain real estate funds, the Company is entitled to receive incentive fees earlier, provided that the investors have received their preferred return on a current basis or on an investor by investor basis. These funds are generally subject to a potential clawback of these incentive fees upon the liquidation of the fund if the investor has not received a full return of its invested capital plus the preferred return thereon. Incentive income in the HealthCare Royalty Partners funds is generally earned only after investors receive a full return of their capital plus a preferred return. Pursuant to US GAAP, incentive income received by the general partners that are accounted for under the equity method of accounting and are reflected under net gains (losses) on securities, derivatives and other investments in the accompanying consolidated statements of operations. In periods following a period of a net loss attributable to an investor, the Company generally does not earn incentive income on any future profits attributable to that investor until the accumulated net loss from prior periods is recovered, an arrangement commonly referred to as a “high-water mark.” The Company has elected to record incentive income revenue in accordance with “Method 2” of US GAAP. Under Method 2, the incentive income from the Company's funds and managed accounts for any period is based upon the net profits of those funds and managed accounts at the reporting date. Any incentive income recognized in the accompanying consolidated statement of operations may be subject to future reversal based on subsequent negative performance prior to the conclusion of the fiscal year, when all contingencies have been resolved. Carried interest in the real estate funds is subject to clawback to the extent that the carried interest actually distributed to date exceeds the amount due to the Company based on cumulative results. As such, the accrual for potential repayment of previously received carried interest, which is a component of accounts payable, accrued expenses and other liabilities, represents all amounts previously distributed to the Company, less an assumed tax liability, that would need to be repaid to certain real estate funds if these funds were to be liquidated based on the current fair value of the underlying funds' investments as of the reporting date. The actual clawback liability does not become realized until the end of a fund's life. Investment Banking The Company earns investment banking revenue primarily from fees associated with public and private capital raising transactions and providing strategic advisory services. Investment banking revenues are derived primarily from small and mid-capitalization companies within the Company's Target Sectors. Investment banking revenue consists of underwriting fees, strategic/financial advisory fees and placement and sales agent fees. • Underwriting fees. The Company earns underwriting fees in securities offerings in which the Company acts as an underwriter, such as initial public offerings, follow-on equity offerings, debt offerings, and convertible security offerings. Fee revenue relating to underwriting commitments is recorded when all significant items relating to the underwriting process have been completed and the amount of the underwriting revenue has been determined. This generally is the point at which all of the following have occurred: (i) the issuer's registration statement has become effective with the SEC or the other offering documents are finalized; (ii) the Company has made a firm commitment for the purchase of securities from the issuer; and (iii) the Company has been informed of the number of securities that it has been allotted. When the Company is not the lead manager for an underwriting transaction, management must estimate the Company's share of transaction-related expenses incurred by the lead manager in order to recognize revenue. Transaction-related expenses are deducted from the underwriting fee and therefore reduce the revenue the Company recognizes as co-manager. Such amounts are adjusted to reflect actual expenses in the period in which the Company receives the final settlement, typically within 90 days following the closing of the transaction. • Strategic/financial advisory fees. The Company's strategic advisory revenues include success fees earned in connection with advising companies, principally in mergers and acquisitions and restructuring transactions. The Company also earns fees for related advisory work such as providing fairness opinions. The Company records strategic advisory revenues when the services for the transactions are completed under the terms of each assignment or engagement and collection is reasonably assured. Expenses associated with such transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded. • Placement and sales agent fees. The Company earns agency placement fees and sales agent commissions in non-underwritten transactions such as private placements of loans and debt and equity securities, including, private investment in public equity transactions (“PIPEs”), and as sales agent in at-the-market offerings of equity securities. The Company records placement revenues (which may be in cash and/or securities) when the services for the transactions are completed under the terms of each assignment or engagement and collection is reasonably assured. The Company records sales agent commissions on a trade date basis. Expenses associated with such transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded. Brokerage Brokerage revenue consists of commissions, principal transactions and equity research fees. • Commissions. Commission revenue includes fees from executing client transactions. These fees are recognized on a trade date basis. The Company permits institutional customers to allocate a portion of their commissions to pay for research products and other services provided by third parties. The amounts allocated for those purposes are commonly referred to as soft dollar arrangements. Commissions on soft dollar brokerage are recorded net of the related expenditures on an accrual basis. Commission revenues also includes fees from making algorithms available to clients. • Principal transactions. Principal transactions revenue includes net trading gains and losses from the Company's market-making activities in over-the-counter equity securities, trading of convertible securities, and trading gains and losses on inventory and other firm positions, which include warrants previously received as part of investment banking transactions. In certain cases, the Company provides liquidity to clients by buying or selling blocks of shares of listed stocks without previously identifying the other side of the trade at execution, which subjects the Company to market risk. These positions are typically held for a very short duration. • Equity research fees. Equity research fees are paid to the Company for providing equity research. Revenue is recognized once an arrangement exists, access to research has been provided, the fee amount is fixed or determinable, and collection is reasonably assured. Investment Income Investment income earned by the alternative investment and broker-dealer segments are earned from investing the Company's capital in various strategies an d from investments in private capital raising transactions of its investment banking clients. Interest and dividends Interest and dividends are earned by the Company from various sources. The Company receives interest and dividends primarily from investments held by its Consolidated Funds and its brokerage balances from invested capital and from its security lending program (which was discontinued in the fourth quarter of 2014). Interest is recognized on an accrual basis and interest income is recognized on the debt of those issuers that is deemed collectible. Interest income and expense includes premiums and discounts amortized and accreted on debt investments based on criteria determined by the Company using the effective yield method, which assumes the reinvestment of all interest payments. Dividends are recognized on the ex-dividend date. Reimbursement from affiliates The Company allocates, at its discretion, certain expenses incurred on behalf of its hedge fund, fund of funds and real estate businesses. These expenses relate to the administration of such subsidiaries and assets that the Company manages for its funds. In addition, pursuant to the funds' offering documents, the Company charges certain allowable expenses to the funds, including charges and personnel costs for legal, compliance, accounting, tax compliance, risk and technology expenses that directly relate to administering the assets of the funds. Such expenses that have been reimbursed at their actual costs are included in the accompanying consolidated statements of operations as employee compensation and benefits, professional, advisory and other fees, communications, occupancy and equipment, client services and business development and other. |
Investment transactions and related income/expenses | Investments transactions and related income/expenses Purchases and sales of securities, net of commissions, and derivative contracts, and the related revenues and expenses are recorded on a trade date basis with net trading gains and losses included as a component of net gains (losses) on securities, derivatives and other investments, and with respect to the Consolidated Funds and other real estate entities as a component of net realized and unrealized gains (losses) on investments and other transactions and net realized and unrealized gains (losses) on derivatives, in the accompanying consolidated statements of operations. |
Share-based compensation | Share-based compensation The Company accounts for its share-based awards granted to individuals as payment for employee services in accordance with US GAAP and values such awards based on grant date fair value. Unearned compensation associated with share-based awards is amortized over the vesting period of the option or award. The Company estimates forfeiture for equity-based awards that are not expected to vest. See Note 14 for further information regarding the Company's share-based compensation plans. |
Employee benefit plans | Employee benefit plans The Company recognizes, in its accompanying consolidated statements of financial condition, the funded status of its defined benefit plans, measured as the difference between the fair value of the plan assets and the benefit obligation. The Company recognizes changes in the funded status of a defined benefit plan within accumulated other comprehensive income (loss), net of tax, to the extent such changes are not recognized in earnings as components of periodic net benefit cost. See Note 15 for further information regarding the Company's defined benefit plan. |
Leases | Leases The Company leases certain facilities and equipment used in its operations. The Company evaluates and classifies its leases as operating or capital leases for financial reporting purposes. Assets held under capital leases are included in fixed assets. Operating lease expense is recorded on a straight-line basis over the lease term. Landlord incentives are recorded as deferred rent and amortized, as reductions to lease expense, on a straight-line basis over the life of the applicable lease. |
Income Tax | Income taxes The Company accounts for income taxes in accordance with US GAAP which requires the recognition of tax benefits or expenses based on the estimated future tax effects of temporary differences between the financial statement and tax basis of its assets and liabilities. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. Valuation allowances are established to reduce deferred tax assets to an amount that is more likely than not to be realized. US GAAP clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements, requiring the Company to determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the tax amount recognized in the financial statements is reduced by the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant taxing authority. The Company recognizes accrued interest and penalties related to its uncertain tax positions as a component of income tax expense. In accordance with federal and state tax laws, the Company and its subsidiaries file consolidated federal, state, and local income tax returns as well as stand‑alone state and local tax returns. The Company also has subsidiaries that are resident in foreign countries where tax filings generally have to be submitted on a stand‑alone basis. These subsidiaries are subject to tax in their respective countries and the Company is responsible for and, thus, reports all taxes incurred by these subsidiaries in the consolidated statement of operations. The countries where the Company owns subsidiaries and has tax filing obligations are the United Kingdom, Luxembourg, and Hong Kong. The taxable results of the Company’s U.S. operations are included in the consolidated income tax returns of Cowen Group, Inc. as well as stand‑alone state and local tax returns. The Company has subsidiaries that are resident in foreign countries where tax filings have to be submitted on a stand‑alone basis. These subsidiaries are subject to tax in their respective countries and the Company is responsible for and, thus, reports all taxes incurred by these subsidiaries. The countries where the Company owns subsidiaries with tax filing obligations are the United Kingdom, Luxembourg, and Hong Kong. |
Foreign currency transactions | Foreign currency transactions The Company consolidates certain foreign subsidiaries that have designated a foreign currency as their functional currency. For entities that have designated a foreign currency as their functional currency, assets and liabilities are translated into U.S. dollars based on current rates, which are the spot rates prevailing at the end of each statement of financial condition date, and revenues and expenses are translated at historical rates, which are the average rates for the relevant periods. The resulting translation gains and losses, and the tax effects of such gains and losses, are recorded in accumulated other comprehensive income (loss), a separate component of stockholders' equity. For subsidiaries that have designated the U.S. Dollar as their functional currency, securities and other assets and liabilities denominated in foreign currencies are translated into U.S. Dollar amounts at the date of valuation. Purchases and sales of securities and other assets and liabilities and the related income and expenses denominated in foreign currencies are translated into U.S. Dollar amounts on the respective dates of the transactions. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on these balances from fluctuations arising from changes in market prices of securities and other assets/liabilities held or sold. Such fluctuations are included in the accompanying consolidated statements of operations as a component of net gains (losses) on securities, derivatives and other investments. Gains and losses primarily relating to foreign currency broker balances are included in net gains (losses) on foreign currency transactions in the accompanying consolidated statements of operations. |
New accounting pronouncements | Recently issued accounting pronouncements In January 2016, as a joint project with International Accounting Standards Board (IASB), the FASB issued a new accounting pronouncement to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendments in the update made improvements to US GAAP for equity investments and investments carried at amortized cost. The guidance also simplify the impairment assessment for equity investments and clarify the need for valuation allowance on deferred tax asset related to available for sale securities. For public business entities the guidance is effective for reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of this guidance on the Company’s financial condition and its disclosures. In September 2015, as part of its simplification initiative, the FASB issued a new accounting pronouncement which eliminates the concept of measurement period adjustments in a business combination transaction. The amendments require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments also require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date and eliminate the current requirement to retrospectively account for those adjustments. For public business entities the guidance is effective prospectively for reporting periods beginning after December 15, 2015. The Company is currently evaluating the impact of this guidance on the Company’s financial condition, results of operations and cash flows. In May 2015, the FASB amended the guidance for fair value measurement and issued the amendment which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share as practical expedient. The amendment also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share as practical expedient. For public companies, the guidance is effective retrospectively for the reporting periods beginning after December 15, 2015 and early adoption is permitted. During the quarter ended June 30, 2015, the Company early adopted the guidance and excluded the investments measured at fair value using the net asset value per share as practical expedient from the fair value hierarchy. The adoption did not result in any impact on the Company’s financial condition, result of operations and cash flows. See Note 6 which reflects the impact of adopting this guidance and further information. In April 2015, the FASB issued a new accounting pronouncement simplifying the presentation of debt issuance costs. The accounting guidance requires that debt issuance costs related to a recognized debt liability be reported on the Consolidated Statements of Financial Condition as a direct deduction from the carrying amount of that debt liability. The guidance is effective retrospectively for reporting periods beginning after December 15, 2015 and early adoption is permitted. In August 2015, FASB issued another pronouncement amending the SEC guidance pursuant to this amendment. The adoption of this accounting guidance is not expected to have a material impact on the Company’s financial condition. In May 2014, the FASB issued guidance which amends and supersedes the revenue recognition requirements and most industry-specific guidance and creates a single source of revenue guidance. The new guidance outlines the principles an entity must apply to measure and recognize revenue and related cash flows. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain non-financial assets. The guidance is effective for reporting periods beginning after December 15, 2017. In July 2015, the FASB confirmed a deferral of the effective date by one year, with early adoption on the original effective date permitted. The Company is currently evaluating the impact of this guidance on the Company’s financial condition, results of operations and cash flows. In February 2015, the FASB issued an accounting pronouncement which amends and updates its previous guidance regarding consolidation analysis. The amendment eliminates the deferral of certain consolidation standards for entities considered to be investment companies and modifies the consolidation analysis performed on certain types of legal entities. The guidance is effective for reporting periods beginning after December 15, 2015. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements. In January 2015, the FASB issued a new accounting pronouncement regarding extraordinary items. The guidance eliminates the concept and presentation requirements for extraordinary items and issuers are no longer required to evaluate and present separately any transaction which is unusual and infrequent. The guidance is effective for reporting periods beginning after December 15, 2015. The Company does not expect this guidance to have any impact on its financial position and results of operations. |
Earnings Per Share | Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive items. The Company uses the treasury stock method to reflect the potential dilutive effect of the warrants (see Note 5 (a)), unexercised stock options, unvested restricted shares, restricted stock units, and SAR's. In calculating the number of dilutive shares outstanding, the shares of common stock underlying unvested restricted shares and restricted stock units are assumed to have been delivered, and options and warrants are assumed to have been exercised, on the grant date. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the sum of (a) the amount of compensation cost attributed to future services and not yet recognized and (b) the amount of tax benefit that would be credited to additional paid-in capital assuming vesting and delivery of the shares. The tax benefit is the amount resulting from a tax deduction for compensation in excess of compensation expense recognized for financial statement reporting purposes. All outstanding warrants were not included in the computation of diluted net income (loss) per common share for the years ended December 31, 2015 , 2014 and 2013, respectively, as their inclusion would have been anti-dilutive. |
Segment Reporting | The performance measure for these segments is Economic Income (Loss), which management uses to evaluate the financial performance of and make operating decisions for the segments including determining appropriate compensation levels. Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other factors. In general, Economic Income (Loss) is a pre-tax measure that (i) eliminates the impact of consolidation for consolidated funds (ii) excludes goodwill and intangible impairment (iii) excludes certain other acquisition-related and/or reorganization expenses and (iv) excludes preferred stock dividends. In addition, Economic Income (Loss) revenues include investment income that represents the income the Company has earned in investing its own capital, including realized and unrealized gains and losses, interest and dividends, net of associated investment related expenses. For US GAAP purposes, these items are included in each of their respective line items. Economic Income (Loss) revenues also include management fees, incentive income and investment income earned through the Company's investment as a general partner in certain real estate entities and the Company's investment in the activist business. For US GAAP purposes, all of these items are recorded in other income (loss). In addition, Economic Income (Loss) expenses are reduced by reimbursement from affiliates, which for US GAAP purposes is presented gross as part of revenue. As further stated below, one major difference between Economic Income (Loss) and US GAAP net income (loss) is that Economic Income (Loss) presents the segments' results of operations without the impact resulting from the full consolidation of any of the Consolidated Funds. Consolidation of these funds results in including in income the pro rata share of the income or loss attributable to other owners of such entities which is reflected in net income (loss) attributable to redeemable non-controlling interest in consolidated subsidiaries in the accompanying consolidated statements of operations. This pro rata share has no effect on the overall financial performance for the alternative investment segment, as ultimately, this income or loss is not income or loss for the alternative investment segment itself. Included in Economic Income (Loss) is the actual pro rata share of the income or loss attributable to the Company as an investor in such entities, which is relevant in management making operating decisions and evaluating financial performance. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the aggregate preliminary purchase price allocation of net tangible and intangible assets acquired during the year ended December 31, 2015 . (dollars in thousands) Cash and cash equivalents $ 2,966 Receivable from brokers 5,327 Fixed assets 644 Fees receivable 983 Intangibles 19,900 Other assets 684 Payable to brokers (153 ) Compensation payable (1,667 ) Accounts payable, accrued expenses and other liabilities (3,250 ) Total net assets acquired $ 25,434 |
Business Acquisition, Pro Forma Information | The following unaudited supplemental pro forma information presents consolidated financial results for the twelve month periods as if the acquisitions were completed as of January 1, 2014. This supplemental pro forma information has been prepared for comparative purposes only and is not intended to be indicative of what the Company's results would have been had the acquisitions been completed on January 1, 2014, nor does it purport to be indicative of any future results. For the years ended December 31, 2015 2014 (dollars in thousands, except per share data) (unaudited) Revenues $ 496,543 $ 473,192 Net income (loss) attributable to Cowen Group, Inc. common stockholders 40,613 167,238 Net income per common share: Basic $ 0.37 $ 1.45 Diluted $ 0.35 $ 1.39 |
Significant Accounting Polici38
Significant Accounting Policies - Annual (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Fixed Assets Depreciable Lives | Asset Depreciable Lives Principal Method Telephone and computer equipment 3-8 years Straight-line Computer software 3-5 years Straight-line Furniture and fixtures 5-8 years Straight-line Leasehold improvements 5-15 years Straight-line Capitalized lease asset 5 years Straight-line |
Investments of Operating Enti39
Investments of Operating Entities and Consolidated Funds - (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investment Holdings [Line Items] | |
Marketable Securities | As of December 31, 2015 and 2014 , securities owned, at fair value consisted of the following: As of December 31, 2015 2014 (dollars in thousands) U.S. Government securities (a) $ 3,016 $ 2,010 Preferred stock (b) 25,563 15,070 Common stocks (b) 516,108 597,476 Convertible bonds (c) 819 900 Corporate bonds (d) 47,192 159,557 Warrants and rights 3,059 1,417 Mutual funds (e) 14,477 15,776 $ 610,234 $ 792,206 (a) As of December 31, 2015 , maturities ranged from January 2016 to August 2016 with interest rates ranged between 0% to 5.95% . As of December 31, 2014 , maturities ranged from May 2015 to April 2016 with interest rates ranged between 0% to 5.95% . (b) Included in preferred stocks and common stocks are investments in securities for which the Company has elected the fair value option with the fair value of $7.7 million and $7.4 million , respectively, at December 31, 2015 and $14.3 million of common stocks at December 31, 2014. These investments were acquired in contemplation with merchant banking transactions. (c) As of December 31, 2015 , maturities ranged from July 2016 to March 2018 with interest rates ranged between 8% to 10.00% . As of December 31, 2014 , the maturity was February 2015 with an interest rate of 10.00% . (d) As of December 31, 2015 , maturities ranged from March 2016 to February 2046 and interest rates ranged between 3.25% to 9.00% . As of December 31, 2014 , maturities ranged from February 2015 to February 2046 and interest rates ranged between 5.63% to 11.54% . |
Schedule of Derivative Instruments | The Company's long and short exposure to derivatives is as follows: Receivable on derivative contracts As of December 31, 2015 2014 Number of contracts / Notional Value Fair value Number of contracts / Notional Value Fair value (dollars in thousands) Futures $ 9,416 $ 189 $ 3,041 $ 75 Currency forwards $ 67,862 659 $ 23,961 310 Equity swaps $ 118,488 2,327 $ 12,904 251 Options other (a) 289,433 31,456 367,441 48,201 Foreign currency options $ 283,797 4,987 $ 32,200 1,040 $ 39,618 $ 49,877 (a) Includes index, equity, commodity future and cash conversion options. Payable for derivative contracts As of December 31, 2015 2014 Number of contracts / Notional Value Fair value Number of contracts / Notional Value Fair value (dollars in thousands) Futures $ 11,995 $ 101 $ 2,213 $ 33 Currency forwards $ 44,156 463 $ — — Equity and credit default swaps $ 7,605 71 $ 18,352 1,603 Options other (a) 16,632 20,548 22,043 39,694 $ 21,183 $ 41,330 (a) Includes index, equity, commodity future and cash conversion options. The following tables present the gross and net derivative positions and the related offsetting amount, as of December 31, 2015 and 2014 . Gross amounts not offset in the Statement of Financial Condition Gross amounts recognized Gross amounts offset on the Consolidated Statements of Financial Condition (a) Net amounts included on the Consolidated Statements of Financial Condition Financial instruments Cash Collateral pledged (b) Net amounts (dollars in thousands) As of December 31, 2015 Receivable on derivative contracts, at fair value $ 39,618 $ — $ 39,618 $ — $ 9,339 $ 30,279 Payable for derivative contracts, at fair value 21,183 — 21,183 — 534 20,649 As of December 31, 2014 Receivable on derivative contracts, at fair value 49,877 — 49,877 — 2,588 47,289 Payable for derivative contracts, at fair value 41,330 — 41,330 — 1,603 39,727 (a) Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. (b) Includes the amount of collateral held or posted. |
Schedule of Other Investments | As of December 31, 2015 and 2014 , other investments included the following: As of December 31, 2015 2014 (dollars in thousands) (1) Portfolio Funds, at fair value $ 111,360 $ 103,466 (2) Real estate investments, at fair value 1,921 2,175 (3) Equity method investments 27,067 61,443 (4) Lehman claims, at fair value 299 380 $ 140,647 $ 167,464 |
Schedule of Other Investments, Portfolio Funds | The Portfolio Funds, at fair value as of December 31, 2015 and 2014 , included the following: As of December 31, 2015 2014 (dollars in thousands) HealthCare Royalty Partners (a)(*) $ 12,127 $ 11,935 HealthCare Royalty Partners II (a)(*) 6,006 6,648 Orchard Square Partners Credit Fund LP (b) 4,170 11,532 Starboard Value and Opportunity Fund LP (c)(*) 20,369 21,792 Starboard Partners Fund LP (d)(*) 14,036 14,652 Starboard Leaders Fund LP (e)(*) 1,080 1,367 Formation8 Partners Fund I, L.P. (f) 19,454 11,283 Formation8 Partners Hardware Fund I, L.P. (g) 1,101 — RCG LV Park Lane LLC (h) (*) 809 642 RCGL 12E13th LLC (i) (*) 609 638 RCG Longview Debt Fund V, L.P. (i) (*) 18,147 12,876 RCG LPP SME Co-Invest, L.P. (j) (*) 2,468 — Other private investment (k) (*) 6,909 7,324 Other affiliated funds (l)(*) 4,075 2,777 $ 111,360 $ 103,466 * These portfolio funds are affiliates of the Company. The Company has no unfunded commitments regarding the portfolio funds held by the Company except as noted in Note 18 . (a) HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis. (b) Orchard Square Partners Credit Fund LP has a quarterly redemption policy with a 60 day notice period and a 4% penalty on redemptions of investments of less than a year in duration. (c) Starboard Value and Opportunity Fund LP permits quarterly withdrawals upon 90 days notice. (d) Starboard Partners Fund LP permits redemptions on a semi-annual basis on 180 days prior written notice subsequent to an initial two year lock up. (e) Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days prior written notice at any time following the first anniversary of an investors initial capital contribution. (f) Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated. (g) Formation8 Partners Hardware Fund I, L.P. is a private equity fund which invests in early stage and growth hardware companies. Distributions will be made when the underlying investments are liquidated. (h) RCG LV Park Lane LLC is a single purpose entity formed to participate in a joint venture which acquired, at a discount, the mortgage notes on a portfolio of multifamily real estate properties located in Birmingham, Alabama. RCG LV Park Lane LLC is a private equity structure and therefore distributions will be made when the underlying investments are liquidated. (i) RCGL 12E13th LLC and RCG Longview Debt Fund V, L.P. are real estate private equity structures and therefore distributions will be made when the underlying investments are liquidated. (j) RCG LPP SME Co-Invest, L.P. is a single purpose entity formed to participate in a joint venture which acquired two fully entitled residential development sites in the New York City metro area. RCG LPP SME Co-Invest, L.P. is a private equity structure and therefore distributions will be made when the underlying investments are liquidated. (k) Other private investment represents the Company's closed end investment in a portfolio fund that invests in a wireless broadband communication provider in Italy. (l) The majority of these funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated. |
Schedule of Other Investments, Equity Method | For the period ended December 31, 2015 , equity method investments held by the Company in aggregate have met the significance criteria as defined under SEC guidance. As such, the Company is required to present summarized financial information for these significant investees for the years ended December 31, 2015 , 2014 and 2013 and such information is as follows. As of December 31, 2015 2014 (dollars in thousands) Assets $ 118,835 $ 196,710 Liabilities 21,349 21,303 Equity $ 97,486 $ 175,407 Year Ended December 31, 2015 2014 2013 (dollars in thousands) Revenues $ 49,669 $ 160,224 $ 78,222 Expenses (30,516 ) (46,575 ) (49,340 ) Net realized and unrealized gains (losses) 13,221 14,325 18,589 Net Income $ 32,374 $ 127,974 $ 47,471 The following table summarizes equity method investments held by the Company: As of December 31, 2015 2014 (dollars in thousands) RCG Longview Debt Fund IV Management, LLC $ 331 $ 676 RCG Longview Debt Fund V Partners, LLC 4,655 2,684 HealthCare Royalty GP, LLC 989 973 HealthCare Royalty GP II, LLC 1,017 1,125 HealthCare Royalty GP III, LLC 88 62 CBOE Stock Exchange, LLC — 611 Starboard Value LP 15,769 48,772 RCG Longview Partners, LLC — 237 RCG Longview Management, LLC 656 1,117 RCG Urban American, LLC 120 422 RCG Urban American Management, LLC 379 379 RCG Longview Equity Management, LLC 114 316 Urban American Real Estate Fund II, LLC 1,211 2,329 RCG Kennedy House, LLC 304 509 Other 1,434 1,231 $ 27,067 $ 61,443 |
Schedule of Securities Sold, Not yet Purchased | As of December 31, 2015 and 2014 , securities sold, not yet purchased, at fair value consisted of the following: As of December 31, 2015 2014 (dollars in thousands) Common stocks $ 257,101 $ 207,815 Corporate bonds (a) 58 60 $ 257,159 $ 207,875 (a) As of December 31, 2015 and 2014 , the maturity was January 2026 with an interest rate of 5.55% . |
Securities Borrowed and Securities Loaned | Securities lending and borrowing transactions The following tables present the contractual gross and net securities borrowing and lending agreements and the related offsetting amount, as of December 31, 2014 . During the first quarter of 2015 this business was completely liquidated. Gross amounts not offset in the Statement of Financial Condition Gross amounts recognized Gross amounts offset on the Consolidated Statements of Financial Condition (a) Net amounts included on the Consolidated Statements of Financial Condition Additional Amounts Available Financial instruments Cash Collateral pledged (b) Net amounts (dollars in thousands) As of December 31, 2014 Securities borrowed $ 676,100 $ — $ 676,100 $ (15,655 ) $ (660,445 ) $ — $ — Securities loaned 682,493 — 682,493 (2,441 ) (680,052 ) — — (a) Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. (b) Includes the amount of cash collateral held/posted. |
Operating Entities | |
Investment Holdings [Line Items] | |
Schedule of Results of Operations, Equity Method Investments [Table Text Block] | For the year ended December 31, 2014, three equity method investments have met the significance criteria as defined under Regulation S-X Rule 4-08(g) of the SEC guidance. As such, the Company is presenting the following summarized financial information: As of December 31, 2015 2014 (dollars in thousands) Assets Cash $ 1,060 $ 4,595 Performance & management fee receivable 32,638 108,355 Investments in Portfolio Funds, at fair value 18,797 12,403 Other assets 2,327 1,485 Liabilities 10,426 12,632 Equity $ 44,396 $ 114,206 Year Ended December 31, 2015 2014 2013 (dollars in thousands) Revenues $ 36,641 $ 129,203 $ 41,879 Expenses (20,658 ) (20,362 ) (11,602 ) Net realized and unrealized gains (losses) 4,258 4,563 1,566 Net Income $ 20,241 $ 113,404 $ 31,843 |
Consolidated Funds | |
Investment Holdings [Line Items] | |
Schedule of Other Investments | Other investments, at fair value As of December 31, 2015 and 2014 other investments, at fair value, held by the Consolidated Funds are comprised of: As of December 31, 2015 2014 (dollars in thousands) (1) Portfolio Funds $ 263,818 $ 188,884 (2) Lehman claims — 493 $ 263,818 $ 189,377 |
Schedule of Other Investments, Portfolio Funds | Investments in Portfolio Funds, at fair value As of December 31, 2015 and 2014 , investments in Portfolio Funds, at fair value, included the following: As of December 31, 2015 2014 (dollars in thousands) Investments of Enterprise LP $ 111,075 $ 138,253 Investments of Merger Fund 74,348 50,631 Investments of Quadratic LLC 78,395 — $ 263,818 $ 188,884 |
Enterprise Master | |
Investment Holdings [Line Items] | |
Schedule of Derivative Instruments | Receivable/(Payable) on derivative contracts, at fair value, owned by Enterprise Master As of December 31, 2015 2014 Description (dollars in thousands) Currency forwards $ (4 ) $ 64 $ (4 ) $ 64 |
Schedule of Securities Owned | Securities owned by Enterprise Master, at fair value As of December 31, 2015 2014 (dollars in thousands) Bank debt $ — $ 20 Common stock 724 1,659 Preferred stock 1,484 576 Private equity — 587 Restricted stock 124 124 Rights 321 2,802 Trade claims 128 128 $ 2,781 $ 5,896 |
Schedule of Other Investments, Portfolio Funds | Portfolio Funds, owned by Enterprise Master, at fair value As of December 31, 2015 2014 Strategy (dollars in thousands) RCG Longview Equity Fund, LP* Real Estate $ 7,635 $ 9,090 RCG Longview II, LP* Real Estate 698 747 RCG Longview Debt Fund IV, LP* Real Estate 3,577 5,348 RCG Longview, LP* Real Estate — 40 RCG Soundview, LLC* Real Estate 452 452 RCG Urban American Real Estate Fund, L.P.* Real Estate 312 1,161 RCG International Sarl* Multi-Strategy — 2,113 RCG Special Opportunities Fund, Ltd* Multi-Strategy 81,544 92,405 RCG Energy, LLC * Energy 1,189 2,294 RCG Renergys, LLC* Energy 1 1 Other Private Investments Various 10,515 12,057 Other Real Estate Investments (*) Real Estate 5,753 10,138 $ 111,676 $ 135,846 * Affiliates of the Company. |
Merger Master | |
Investment Holdings [Line Items] | |
Marketable Securities | Securities owned by Merger Master, at fair value As of December 31, 2015 2014 (dollars in thousands) Common stocks $ 157,429 $ 133,510 Corporate bonds (a) 492 3,383 $ 157,921 $ 136,893 (a) As of December 31, 2015 , the maturity was ranged from June 2024 with interest rate of 5.25% . As of December 31, 2014 , maturities ranged from February 2017 to June 2019 and interest rates ranged between 8.50% and 9.75% |
Schedule of Derivative Instruments | Receivable on derivative contracts, at fair value, owned by Merger Master As of December 31, 2015 2014 Description (dollars in thousands) Options $ 1,275 $ 541 Currency forwards 235 — Equity swaps 1,001 78 $ 2,511 $ 619 Payable for derivative contracts, at fair value, owned by Merger Master As of December 31, 2015 2014 Description (dollars in thousands) Options $ 563 $ 238 Equity swaps 30 58 $ 593 $ 296 |
Quadratic Master | |
Investment Holdings [Line Items] | |
Schedule of Derivative Instruments | Receivable on derivative contracts, at fair value, owned by Quadratic Master As of December 31, 2015 Description (dollars in thousands) Options $ 9,007 Currency forwards 92 $ 9,099 |
Fair Value Measurements for O40
Fair Value Measurements for Operating Entities and Consolidated Funds (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the assets and liabilities that are measured at fair value on a recurring basis on the accompanying consolidated statements of financial condition by caption and by level within the valuation hierarchy as of December 31, 2015 and 2014 : Assets at Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total (dollars in thousands) Operating Entities Securities owned US Government securities $ 3,016 $ — $ — $ 3,016 Preferred stock 7,891 4,800 12,872 25,563 Common stocks 505,303 7,527 3,278 516,108 Convertible bonds — — 819 819 Corporate bonds — 47,192 — 47,192 Warrants and rights 487 — 2,572 3,059 Mutual funds 14,477 — — 14,477 Receivable on derivative contracts, at fair value Futures 189 — — 189 Currency forwards — 659 — 659 Equity swaps — 2,327 — 2,327 Options 11,895 6,354 18,194 36,443 Other investments Real estate investments — — 1,921 1,921 Lehman claim — — 299 299 Consolidated funds Preferred stock — — 32,000 32,000 $ 543,258 $ 68,859 $ 71,955 $ 684,072 Percentage of total assets measured at fair value 79.4 % 10.1 % 10.5 % Portfolio funds measured at net asset value (a) 111,360 Consolidated funds' portfolio funds measured at net asset value (a) 263,818 Equity method investments 27,067 Total investments $ 1,086,317 Liabilities at Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total (dollars in thousands) Securities sold, not yet purchased Common stocks $ 257,101 $ — $ — $ 257,101 Corporate bonds — 58 — 58 Payable for derivative contracts, at fair value Futures 101 — — 101 Currency forwards — 463 — 463 Equity and credit default swaps — 71 — 71 Options 2,354 — 18,194 20,548 Accounts payable, accrued expenses and other liabilities Contingent consideration liability (b) — — 6,158 6,158 $ 259,556 $ 592 $ 24,352 $ 284,500 Percentage of total liabilities measured at fair value 91.2 % 0.2 % 8.6 % (a) In accordance with US GAAP, certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. (b) In accordance with the terms of the purchase agreements for acquisitions that closed during 2012 and the third and fourth quarter of 2015, the Company is required to pay to the sellers a portion of future net income of the acquired businesses, if certain revenue targets are achieved through the periods ended August 2016, December 2020, and December 2018, respectively. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts as of December 31, 2015 can range from $0.1 million to $10.0 million . Assets at Fair Value as of December 31, 2014 Level 1 Level 2 Level 3 Total (dollars in thousands) Operating Entities Securities owned US Government securities $ 2,010 $ — $ — $ 2,010 Preferred stock — 2,553 12,517 15,070 Common stocks 578,934 18,130 412 597,476 Convertible bonds — — 900 900 Corporate bonds — 159,557 — 159,557 Warrants and rights 95 — 1,322 1,417 Mutual funds 15,776 — — 15,776 Receivable on derivative contracts, at fair value Futures 75 — — 75 Currency forwards — 310 — 310 Equity swaps — 251 — 251 Options 10,462 1,972 36,807 49,241 Other investments Real estate investments — — 2,175 2,175 Lehman claim — — 380 380 Consolidated funds Lehman claim — — 493 493 $ 607,352 $ 182,773 $ 55,006 $ 845,131 Percentage of total assets measured at fair value 71.9 % 21.6 % 6.5 % Portfolio funds measured at net asset value (a) 103,466 Consolidated funds' portfolio funds measured at net asset value (a) 188,884 Equity method investments 61,443 Total investments $ 1,198,924 Liabilities at Fair Value as of December 31, 2014 Level 1 Level 2 Level 3 Total (dollars in thousands) Securities sold, not yet purchased Common stocks $ 207,815 $ — $ — $ 207,815 Corporate bonds — 60 — 60 Payable for derivative contracts, at fair value Futures 33 — — 33 Equity and credit default swaps — 1,603 — 1,603 Options 2,887 — 36,807 39,694 Accounts payable, accrued expenses and other liabilities Contingent consideration liability (b) — — 4,083 4,083 $ 210,735 $ 1,663 $ 40,890 $ 253,288 Percentage of total liabilities measured at fair value 83.2 % 0.7 % 16.1 % (a) In accordance with US GAAP, certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. (b) In accordance with the terms of a purchase agreement for an acquisitions that closed during 2012, the Company is required to pay to the sellers a portion of future net income of the acquired businesses, if certain revenue targets are achieved through the period ended August 2016. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts can range from $0.9 million to $7.1 million . |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table includes a rollforward of the amounts for the years ended December 31, 2015 and 2014 , for financial instruments classified within level 3. The classification of a financial instrument within level 3 is based upon the significance of the unobservable inputs to the overall fair value measurement. Year Ended December 31, 2015 Balance at December 31, 2014 Transfers in Transfers out Purchases/(covers) (Sales)/shorts Realized and Unrealized gains/losses Balance at December 31, 2015 Change in unrealized gains/losses relating to instruments still held (1) (dollars in thousands) Operating Entities Preferred stock $ 12,517 $ — $ (11,322 ) (a) (b) $ 14,850 $ (6,665 ) $ 3,492 $ 12,872 $ 217 Common stocks 412 — — 3,398 (441 ) (91 ) 3,278 90 Convertible bonds 900 — — 250 — (331 ) 819 (331 ) Options, asset 36,807 — — — — (18,613 ) 18,194 (18,613 ) Options, liability 36,807 — — — — (18,613 ) 18,194 (18,613 ) Warrants and Rights 1,322 — — 824 (71 ) 497 2,572 715 Real estate 2,175 — — — (390 ) 136 1,921 137 Lehman claim 380 — — — — (81 ) 299 (81 ) Contingent consideration liability 4,083 — — 3,600 (1,725 ) 200 6,158 200 Consolidated Funds Preferred stock — 7,000 (b) — 25,000 — — 32,000 — Lehman claim 493 — — — (739 ) 246 — — Year Ended December 31, 2014 Balance at December 31, 2013 Transfers in Transfers out Purchases/(covers) (Sales)/shorts Realized and Unrealized gains/losses Balance at December 31, 2014 Change in unrealized gains/losses relating to instruments still held (1) (dollars in thousands) Operating Entities Preferred stock $ 324 $ — $ (2,000 ) (a) $ 14,396 $ — $ (203 ) $ 12,517 $ (203 ) Common stocks 3,559 — (3,150 ) (a) 12 (1 ) (8 ) 412 (135 ) Convertible bonds 1,950 — — — (200 ) (850 ) 900 (850 ) Options, asset — — — 35,710 — 1,097 36,807 1,097 Options, liability — — — 35,710 — 1,097 36,807 1,097 Warrants and Rights, asset 5,805 — (1,288 ) (c) 57 (97 ) (3,155 ) 1,322 (1,415 ) Real estate 2,088 — — 50,000 (50,168 ) 255 2,175 255 Lehman claim 378 — — — (76 ) 78 380 79 Contingent consideration liability 6,937 — — 21 (820 ) (2,055 ) 4,083 — Consolidated Funds Lehman claim 4,842 — — — (4,711 ) 362 493 (3,897 ) (1) Unrealized gains/losses are reported in other income (loss) in the accompanying consolidated statements of operations. (a) The company completed an initial public offering. (b) The company transferred investments to a consolidated fund. (c) The investment was converted to equity. |
Fair Value Inputs, Assets, Quantitative Information | The following table includes quantitative information as of December 31, 2015 and 2014 for financial instruments classified within level 3. The table below quantifies information about the significant unobservable inputs used in the fair value measurement of the Company's level 3 financial instruments. Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2015 Valuation techniques Unobservable Inputs Range Level 3 Assets (dollars in thousands) Common and preferred stocks $ 2,569 Market/transaction multiples and option pricing method Volatility Market multiples 34% 1x to 4.75x Convertible bonds 819 Recovery analysis Recovery rate 50% Warrants and rights, net 2,572 Model based Volatility 18% to 61% (weighted average 43%) Options 18,194 Option pricing models Volatility 38% Other level 3 assets (a) 47,801 Total level 3 assets 71,955 Level 3 Liabilities Options 18,194 Option pricing models Volatility 38% Contingent consideration 6,158 Discounted cash flows Projected cash flow and discount rate 6.6% - 24.5% (weighted average 16.4%) Total level 3 liabilities $ 24,352 Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2014 Valuation techniques Unobservable Inputs Range Level 3 Assets (dollars in thousands) Common and preferred stocks $ 12,269 Market multiples and option pricing method Volatility Market multiples 45% 1x to 6x Convertible bonds 900 Recovery analysis Recovery rate 50% Warrants and rights, net 1,322 Model based Volatility 20% to 60% (weighted average 34%) Options 36,807 Option pricing models Volatility Credit spreads 30% to 40% 500bps - 750 bps Other level 3 assets (a) 3,708 Total level 3 assets 55,006 Level 3 Liabilities Options 36,807 Option pricing models Volatility Credit spreads 30% to 40% 500bps - 750 bps Contingent consideration 4,083 Discounted cash flows Projected cash flow and discount rate 9% Total level 3 liabilities $ 40,890 (a) The quantitative disclosures exclude financial instruments for which the determination of fair value is based on prices from prior transactions and investments for which NAV per share is used as a practical expedient to determine fair value. |
Fair Value Measurements, Nonrecurring | The following table presents the carrying values and fair values, at December 31, 2015 and 2014 , of financial assets and liabilities and information on their classification within the fair value hierarchy which are not measured at fair value on a recurring basis. For additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value see Note 3 . December 31, 2015 December 31, 2014 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value (dollars in thousands) Financial Assets Operating companies Cash and cash equivalents $ 158,485 $ 158,485 $ 129,509 $ 129,509 Level 1 Cash collateral pledged 10,085 10,085 8,306 8,306 Level 2 Securities borrowed — — 676,100 660,445 Level 1 Consolidated funds Cash and cash equivalents 13,934 13,934 501 501 Level 1 Financial Liabilities Securities loaned — — 682,493 661,533 Level 1 Convertible debt 124,777 (a) 144,946 (b) 118,475 (a) 160,713 (b) Level 2 Notes payable and other debt 70,984 71,945 67,144 69,548 Level 2 (a) The carrying amount of the convertible debt includes an unamortized discount of $24.7 million and $31.0 million as of December 31, 2015 and 2014 . (b) The convertible debt include the conversion option and is based on the last broker quote available. |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fixed assets [Abstract] | |
Property, Plant and Equipment | As of December 31, 2015 and 2014 , fixed assets consisted of the following: As of December 31, 2015 2014 (dollars in thousands) Telephone and computer equipment $ 6,521 $ 5,466 Computer software 1,680 1,305 Furniture and fixtures 6,131 5,692 Leasehold improvements 35,215 32,256 Assets acquired under capital leases—equipment 7,637 7,637 57,184 52,356 Less: Accumulated depreciation and amortization (29,953 ) (25,968 ) $ 27,231 $ 26,388 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the changes in the Company's goodwill balance, by reporting unit for the years ended December 31, 2015 , 2014 , and 2013 : Alternative Investment Broker- Total (dollars in thousands) Beginning balance - December 31, 2013 Goodwill $ 30,228 $ 24,363 $ 54,591 Accumulated impairment charges (10,200 ) (7,151 ) (17,351 ) Net 20,028 17,212 37,240 Activity: 2014 Recognized goodwill — — — Goodwill impairment charges — (2,334 ) (2,334 ) Ending balance: December 31, 2014 Goodwill 30,228 24,363 54,591 Accumulated impairment charges (10,200 ) (9,485 ) (19,685 ) Net 20,028 14,878 34,906 Activity: 2015 Recognized goodwill — 23,455 23,455 Goodwill impairment charges — — — Ending balance: December 31, 2015 Goodwill 30,228 47,818 78,046 Accumulated impairment charges (10,200 ) (9,485 ) (19,685 ) Net $ 20,028 $ 38,333 $ 58,361 |
Intangible Assets | December 31, 2015 December 31, 2014 Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in years) (in thousands) (in thousands) Investment contracts 5 $ 3,900 $ (3,900 ) $ — $ 3,900 $ (3,900 ) $ — Trade names 1 - 7.5 9,712 (8,897 ) 815 9,612 (8,305 ) 1,307 Customer relationships 3 - 14 29,484 (10,338 ) 19,146 13,284 (8,936 ) 4,348 Customer contracts 1.2 800 (800 ) — 800 (800 ) — Non compete agreements and covenants with limiting conditions acquired 3 - 5 1,831 (172 ) 1,659 31 (21 ) 10 Intellectual property 3 - 10 8,237 (4,194 ) 4,043 6,437 (3,619 ) 2,818 $ 53,964 $ (28,301 ) $ 25,663 $ 34,064 $ (25,581 ) $ 8,483 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for the Company's intangible assets as of December 31, 2015 is as follows: (dollars in thousands) 2016 $ 4,422 2017 3,955 2018 3,045 2019 2,384 2020 2,236 Thereafter 9,621 $ 25,663 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
Other Assets | Other assets in Operating Entities are as follows: As of December 31, 2015 2014 (dollars in thousands) Deposits $ 674 $ 10,689 Prepaid expenses 7,783 6,340 Tax receivables 2,855 126 Deferred rent asset 341 512 Deferred charges - debt 4,795 5,958 Interest and dividends receivable 2,006 3,484 Loan receivable (a) 8,000 — Short term bridge loan (b) 38,000 — Miscellaneous receivables (See Note 2) 2,788 4,400 Other (c) 9,084 2,721 $ 76,326 $ 34,230 (a) As of December 31, 2015 , the maturity was August 2017 with interest rate of 12% . (b) As of December 31, 2015, the maturity was February 2016, was secured by the real estate assets and had an effective annualized interest rate of 8% . (c) Included in this amount is $4.5 million , due January 2024, with interest rate of 8% for the first five years and 8.5% for the remainder of the term, related to the Company's new commercial reinsurance activities (see Note 5). |
Accounts Payable Accrued Expe44
Accounts Payable Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Payable, Accrued Expenses and Other Liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable, accrued expenses and other liabilities in Operating Entities are as follows: As of December 31, 2015 2014 (dollars in thousands) Deferred rent obligations (see Note 3(l)) $ 11,979 $ 13,142 Deferred income 428 1,033 Equity in RCG Longview Partners II, LLC (see Note 5a(3)) 5,969 5,878 Professional fees payable 4,811 3,889 Placement and other fees payable 1,555 3,615 Litigation reserve 1,300 — Contingent consideration payable (see Note 2) 6,158 4,083 Interest and dividends payable 3,574 3,366 Accrued expenses and accounts payable 15,223 7,846 Accrued tax liabilities 1,236 3,754 $ 52,233 $ 46,606 |
Redeemable Non-Controlling In45
Redeemable Non-Controlling Interests in Consolidated Subsidiaries and Funds (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Redeemable non-controlling interests in consolidated subsidiaries and funds | Redeemable non-controlling interests in consolidated subsidiaries and funds and the related net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds are comprised as follows: As of December 31, 2015 2014 (dollars in thousands) Redeemable non-controlling interests in consolidated subsidiaries and funds Operating companies $ 10,906 $ 9,619 Consolidated funds 176,005 76,457 $ 186,911 $ 86,076 |
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | Year Ended December 31, 2015 2014 2013 (dollars in thousands) Income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds Operating companies $ 9,503 $ 10,094 $ 10,461 Consolidated funds 5,743 5,470 2,732 $ 15,246 $ 15,564 $ 13,193 |
Share-Based Compensation and 46
Share-Based Compensation and Employee Ownership Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the Company's stock option activity for the years ended December 31, 2015 and 2014: Shares Subject Weighted Average Weighted Average Aggregate Intrinsic (in years) (dollars in thousands) Balance outstanding at December 31, 2013 300,006 $ 7.19 2.4 $ 41 Options granted — — — — Options exercised (33,334 ) 3.50 — — Options expired (50,000 ) 16.27 — — Balance outstanding at December 31, 2014 216,672 $ 5.65 1.60 $ 87 Options granted — — — — Options exercised (100,002 ) 3.96 — — Options expired (100,003 ) 7.49 — — Balance outstanding at December 31, 2015 16,667 $ 4.89 1.10 $ — Options exercisable at December 31, 2014 216,672 $ 5.65 1.60 $ — Options exercisable at December 31, 2015 16,667 $ 4.89 1.09 $ — (1) Based on the Company's closing stock price of $3.83 on December 31, 2015 and $4.80 on December 31, 2014 . |
Schedule of Share-based Compensation, Stock Appreciation Rights, Activity | As of December 31, 2015 , the Company's stock options were fully expensed. The following table summarizes the Company's SAR's for the years ended December 31, 2015 and 2014: Shares Subject Weighted Average Weighted Average Aggregate Intrinsic (in years) (dollars in thousands) Balance outstanding at December 31, 2013 400,000 $ 2.90 4.21 608 SAR's granted — — — — SAR's acquired — — — — SAR's expired — — — — Balance outstanding at December 31, 2014 400,000 2.90 3.21 $ 913 SAR's granted — — — — SAR's acquired — — — — SAR's expired — — — — Balance outstanding at December 31, 2015 400,000 $ 2.90 2.21 $ 558 SAR's exercisable at December 31, 2015 — $ — — $ — (1) Based on the Company's closing stock price of $3.83 on December 31, 2015 and $4.80 on December 31, 2014 . |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Restricted shares and restricted stock units are referred to collectively as restricted stock. The following table summarizes the Company's restricted share and restricted stock unit activity for the year ended December 31, 2015 : Nonvested Restricted Shares and Restricted Stock Units Weighted-Average Balance outstanding at December 31, 2013 13,551,544 $ 3.37 Granted (1) 9,674,496 3.89 Vested (4,071,120 ) 3.27 Canceled — — Forfeited (1,500,338 ) 3.07 Balance outstanding at December 31, 2014 17,654,582 $ 3.70 Granted 9,043,604 4.49 Vested (4,188,289 ) 3.08 Canceled — — Forfeited (1,029,533 ) 3.42 Balance outstanding at December 31, 2015 (1) 21,480,364 $ 4.17 (1) Performance linked restricted stock units of 1,925,750 were awarded to employees of the Company in December 2013 and January 2014. Of the awards granted, 326,250 have been forfeited through December 31, 2015 . The remaining awards, included in the outstanding balance as of December 31, 2015 , will vest on June 10, 2019 and will be earned only to the extent that the Company attains specified performance goals relating to its volume-weighted average share price and the aggregate net income for the years from 2014 to 2018. The actual number of RSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 100% of the targeted award. Each RSU is equal to the one share of the Company’s Class A common stock. Compensation expense is recognized to the extent that it is probable that the Company will attain the performance goals. |
Defined Benefit Plan - Annual (
Defined Benefit Plan - Annual (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Periodic Benefit Cost | The amounts contained in the following table relate to the Company's defined benefit plan(s) for the year ended December 31, 2014 : As of December 31, 2014 (dollars in thousands) Projected benefit obligation Benefit obligation at beginning of year $ 3,592 Service cost — Interest cost 84 Actuarial loss (gain) (2 ) Benefits paid (3,791 ) Curtailments — Lump sum settlement 117 Effect of change in currency conversion — Benefit obligation at end of year $ — Change in plan assets Fair value of plan assets at beginning of year $ 4,389 Actual return on plan assets 306 Employer contributions — Benefits paid (3,791 ) Transfer to qualified replacement plan (874 ) Expenses paid from the plan (30 ) Fair value of plan assets at the end of year $ — Funded balance at end of year $ — Amounts recognized in the consolidated statement of financial condition Asset $ — Accumulated benefit obligation $ — Year Ended December 31, 2014 2013 (dollars in thousands) Components of net periodic benefit cost included in employee compensation and benefits Service cost $ — $ — Interest cost 84 207 Expected return on plan assets (299 ) (251 ) Amortization of loss / (gain) (205 ) — Amortization of prior service cost — 21 Effect of settlement — (95 ) Net periodic benefit cost $ (420 ) $ (118 ) Other changes in plan assets and benefit obligations recognized in other comprehensive loss Net loss (gain) $ 344 $ 137 Effect of curtailment — (360 ) Effect of settlement — — Amortization of loss / (gain) — — Amortization of prior service cost — (23 ) Total recognized in other comprehensive income (loss) $ 344 $ (246 ) Total recognized in net periodic benefit cost and other comprehensive loss $ (76 ) $ (364 ) Amounts recognized in accumulated other comprehensive loss Net gain (loss) $ — $ 344 Prior service cost — — Effect of change in currency conversion — — Total recognized in accumulated other comprehensive income (loss) $ — $ 344 Estimated amounts to be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year Prior service cost $ — $ — Net gain (loss) $ — $ — |
Income Taxes - Annual (Tables)
Income Taxes - Annual (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the Company's income tax expense for the years ended December 31, 2015 , 2014 and 2013 are as follows: Year ended December 31, 2015 2014 2013 (dollars in thousands) Current tax expense/(benefit) Federal $ (635 ) $ 2,247 $ — State and local 313 573 241 Foreign 348 341 188 Total $ 26 $ 3,161 $ 429 Deferred tax expense/(benefit) Federal $ (37,979 ) $ (99,284 ) $ — State and local (7,420 ) (28,825 ) — Foreign (2,123 ) 4 28 Total (47,522 ) (128,105 ) 28 Total Tax expense/(benefit) $ (47,496 ) $ (124,944 ) $ 457 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliations of the Company's federal statutory rate to the effective income tax rate for the years ended December 31, 2015 , 2014 , and 2013 are as follows: Year ended December 31, 2015 2014 2013 Pre-tax loss at U.S. statutory rate 35.0 % 35.0 % 35.0 % Stock compensation — — 12.6 Deferred asset recognition (323.8 ) — — Change in valuation allowance — (252.7 ) (27.2 ) Impact of change in NY tax law (27.9 ) — — State and foreign tax (39.6 ) 5.8 — Minority interest reversal (46.5 ) (9.4 ) (25.2 ) Other, net (11.0 ) 5.3 7.3 Total (413.8 )% (216.0 )% 2.5 % |
Schedule of Deferred Tax Assets and Liabilities | The components of the Company's deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows: As of December 31, 2015 2014 (dollars in thousands) Deferred tax assets, net of valuation allowance Net operating loss $ 110,904 $ 94,628 Deferred compensation 65,162 56,069 Goodwill 7,009 8,434 Fixed assets 2,003 — Tax credits 1,630 2,668 Acquired lease liability 4,843 5,164 Other 2,317 2,394 Total deferred tax assets 193,868 169,357 Valuation allowance — (2,263 ) Deferred tax assets, net of valuation allowance 193,868 167,094 Deferred tax liabilities Basis difference on investments (15,352 ) (15,352 ) Unrealized gains on investments (34,613 ) (21,739 ) Intangible assets (296 ) (537 ) Other (47 ) (66 ) Total deferred tax liabilities (50,308 ) (37,694 ) Deferred tax assets/(liabilities), net $ 143,560 $ 129,400 |
Summary of Operating Loss Carryforwards | The Company has the following net operating loss carryforwards at December 31, 2015 : Federal New York State New York City Hong Kong Jurisdiction: Net operating loss (in millions) $ 264 $ 84 $ 123 $ 13 Year of expiration 2033 2033 2033 Indefinite |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Annual Lease and Service Payments | As of December 31, 2015 , future minimum annual lease and service payments for the Company were as follows: Equipment Leases (a) Service Payments Facility Leases (b) (dollars in thousands) 2016 $ 2,502 $ 15,850 $ 19,386 2017 2,301 7,255 15,615 2018 2,221 4,126 15,620 2019 813 1,401 14,821 2020 — — 14,814 Thereafter — — 32,250 $ 7,837 $ 28,632 $ 112,506 (a) Equipment Leases include the Company's commitments relating to operating and capital leases. See Note 19 for further information on the capital lease minimum payments which are included in the table. (b) The Company has entered into various agreements to sublease certain of its premises. The Company recorded sublease income related to these leases of $2.3 million , $1.8 million and $1.5 million for the years ended December 31, 2015 , 2014 , and 2013, respectively. |
Convertible Debt and Notes Pa50
Convertible Debt and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Capital Lease Obligations | As of December 31, 2015 and 2014 , the Company's outstanding debt was as follows: As of December 31, 2015 2014 (dollars in thousands) Convertible debt $ 124,777 $ 118,475 Note Payable 63,250 63,250 Revolver 5,000 — Capital lease obligations 2,734 3,894 $ 195,761 $ 185,619 |
Schedule of Maturities of Debt and Future Minimum Lease Payments for Capital Leases | Annual scheduled maturities of debt and minimum payments for all debt outstanding as of December 31, 2015 , is as follows: Convertible Debt Note Payable Revolver Capital Lease (dollars in thousands) 2016 $ 4,485 $ 5,218 $ 5,000 $ 1,025 2017 4,485 5,218 — 938 2018 4,485 5,218 — 938 2019 151,743 5,218 — 78 2020 — 5,218 — — Thereafter — 68,468 — — Subtotal 165,198 94,558 5,000 2,979 Less: Amount representing interest (a) (40,421 ) (31,308 ) — (245 ) Total $ 124,777 $ 63,250 $ 5,000 $ 2,734 (a) Amount necessary to reduce net minimum payments to present value calculated at the Company's implicit rate at inception. This amount also includes the unamortized discount on the convertible debt. |
Schedule of Line of Credit Facilities | As of December 31, 2015 , the Company has the following eight irrevocable letters of credit related to leased office space, for which there is cash collateral pledged, which the Company pays a fee on the stated amount of the letter of credit. Location Amount Maturity (dollars in thousands) San Francisco $ 710 January 2016 New York $ 1,000 February 2016 Boston $ 382 March 2016 New York $ 355 May 2016 New York $ 1,861 May 2016 New York $ 794 October 2016 New York $ 3,373 October 2016 New York $ 1,600 November 2016 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Treasury Stock Activity | The following represents the activity relating to the treasury stock held by the Company during the years ended December 31, 2015 : Treasury stock shares Cost Average cost Balance outstanding at December 31, 2014 23,507,656 $ 79,771 $ 3.39 Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions 1,654,331 8,907 5.38 Purchase of treasury stock 9,353,747 48,678 5.20 Balance outstanding at December 31, 2015 34,515,734 $ 137,356 $ 3.98 |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income / (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign currency translation (a) Defined benefit plans (a) Total (dollars in thousands) Balance at January 1, 2013 $ 258 $ 98 $ 356 Net change (10 ) 246 236 Balance at December 31, 2013 248 344 592 Net change (231 ) (344 ) (575 ) Balance at December 31, 2014 $ 17 $ — $ 17 Net change (17 ) — (17 ) Balance at December 31, 2015 $ — $ — $ — (a) During the periods presented, the Company did not have material reclassifications out of other comprehensive income. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Basic and Diluted | The computation of earnings per share is as follows: Year Ended December 31, 2015 2014 2013 (dollars in thousands, except per share data) Net income (loss) $ 58,975 $ 182,780 $ 17,840 Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds 15,246 15,564 13,193 Net income (loss) attributable to Cowen Group, Inc. 43,729 167,216 4,647 Preferred stock dividends 4,075 — — Net income (loss) attributable to Cowen Group, Inc. common stockholders $ 39,654 $ 167,216 4,647 Shares for basic and diluted calculations: Weighted average shares used in basic computation 110,090 114,926 116,703 Stock options 13 — — Performance based restricted stock 263 — — Stock appreciation rights 140 60 306 Restricted stock 5,668 4,500 4,108 Weighted average shares used in diluted computation 116,174 119,486 121,117 Earnings (loss) per share: Basic $ 0.36 $ 1.45 $ 0.04 Diluted $ 0.34 $ 1.40 $ 0.04 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | The following tables set forth operating results for the Company's alternative investment and broker-dealer segments and related adjustments necessary to reconcile the Company's Economic Income (Loss) measure to arrive at the Company's consolidated US GAAP net income (loss): Year Ended December 31, 2015 Adjustments Alternative Investment Broker-Dealer Total Economic Income/(Loss) Funds Consolidation Other Adjustments US GAAP (dollars in thousands) Revenues Investment banking $ — $ 222,781 $ 222,781 $ — $ — $ 222,781 Brokerage — 160,436 160,436 — (2,714 ) (e) 157,722 Management fees 68,989 1,026 70,015 (1,307 ) (26,802 ) (a) 41,906 Incentive income (1,544 ) — (1,544 ) (736 ) 3,746 (a) 1,466 Investment Income 49,244 13,352 62,596 — (62,596 ) (c) — Interest and dividends — — — — 13,796 (c)(e) 13,796 Reimbursement from affiliates — — — (190 ) 21,747 (f) 21,557 Other revenue 14,492 890 15,382 — (11,656 ) (c) 3,726 Consolidated Funds revenues — — — 1,613 — 1,613 Total revenues 131,181 398,485 529,666 (620 ) (64,479 ) 464,567 Expenses Non interest expense 107,291 362,463 469,754 — 6,090 (c)(d) 475,844 Interest and dividends 11,839 4,745 16,584 — 9,636 (c)(e) 26,220 Consolidated Funds expenses — — — 2,310 — 2,310 Total expenses 119,130 367,208 486,338 2,310 15,726 504,374 Total other income (loss) — — — 8,781 42,505 (c) 51,286 Income taxes expense / (benefit) — — — — (47,496 ) (b) (47,496 ) (Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds (8,796 ) — (8,796 ) (5,851 ) (599 ) (15,246 ) Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. $ 3,255 $ 31,277 $ 34,532 $ — $ 9,197 $ 43,729 Year Ended December 31, 2014 Adjustments Alternative Investment Broker-Dealer Total Economic Income/(Loss) Funds Consolidation Other Adjustments US GAAP (dollars in thousands) Revenues Investment banking $ — $ 170,506 $ 170,506 $ — $ — $ 170,506 Brokerage 55 146,192 146,247 — (6,115 ) (e) 140,132 Management fees 64,774 — 64,774 (963 ) (23,184 ) (a) 40,627 Incentive income 45,708 — 45,708 (281 ) (42,642 ) (a) 2,785 Investment Income 45,193 20,022 65,215 — (65,215 ) (c) — Interest and dividends — — — — 48,870 (c)(e) 48,870 Reimbursement from affiliates — — — (342 ) 12,837 (f) 12,495 Other revenue 4,645 523 5,168 — 4,278 (c) 9,446 Consolidated Funds revenues — — — 2,915 — 2,915 Total revenues 160,375 337,243 497,618 1,329 (71,171 ) 427,776 Expenses Non interest expense 115,601 320,261 435,862 — 7,609 (c)(d) 443,471 Goodwill impairment — — — — 2,334 (g) 2,334 Interest and dividends 7,804 1,994 9,798 — 32,954 (c)(e) 42,752 Consolidated Funds expenses — — — 1,634 — 1,634 Total expenses 123,405 322,255 445,660 1,634 42,897 490,191 Total other income (loss) — — — 5,775 114,476 (c) 120,251 Income taxes expense / (benefit) — — — — (124,944 ) (b) (124,944 ) (Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds (7,802 ) — (7,802 ) (5,470 ) (2,292 ) (15,564 ) Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. $ 29,168 $ 14,988 $ 44,156 $ — $ 123,060 $ 167,216 Year Ended December 31, 2013 Adjustments Alternative Investment Broker-Dealer (1) Total Economic Income/(Loss) Funds Consolidation Other Adjustments US GAAP (dollars in thousands) Revenues Investment banking $ — $ 105,333 $ 105,333 $ — $ — $ 105,333 Brokerage — 121,065 121,065 — (6,472 ) (e) 114,593 Management fees 56,984 — 56,984 (1,146 ) (18,535 ) (a) 37,303 Incentive income 21,205 — 21,205 — (8,619 ) (a) 12,586 Investment income 30,713 5,947 36,660 — (36,660 ) (c) — Interest and dividends — — — — 39,454 (c)(e) 39,454 Reimbursement from affiliates — — — (99 ) 10,533 (f) 10,434 Other revenue 524 2,010 2,534 — 2,884 (c) 5,418 Consolidated Funds revenues — — — 3,398 — 3,398 Total revenues 109,426 234,355 343,781 2,153 (17,415 ) 328,519 Expenses Non interest expense 86,054 237,841 323,895 — 7,684 (c)(d) 331,579 Interest and dividends 231 119 350 — 26,949 (c)(e) 27,299 Consolidated Funds expenses — — — 2,039 — 2,039 Total expenses 86,285 237,960 324,245 2,039 34,633 360,917 Total other income (loss) — — — 2,618 48,077 (c) 50,695 Income taxes expense / (benefit) — — — — 457 (b) 457 (Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds (12,995 ) — (12,995 ) (2,732 ) 2,534 (13,193 ) Economic Income (Loss) / Net Income (loss) attributable to Cowen Group, Inc. stockholders $ 10,146 $ (3,605 ) $ 6,541 $ — $ (1,894 ) $ 4,647 The following is a summary of the adjustments made to US GAAP net income (loss) for the segment to arrive at Economic Income (Loss): Funds Consolidation: The impacts of consolidation and the related elimination entries of the Consolidated Funds are not included in Economic Income (Loss). Adjustments to reconcile to US GAAP net income (loss) include elimination of incentive income and management fees earned from the Consolidated Funds and addition of fund expenses excluding management fees paid, fund revenues and investment income (loss). Other Adjustments: (a) Economic Income (Loss) recognizes revenues (i) net of distribution fees paid to agents and (ii) our proportionate share of management and incentive fees of certain real estate operating entities and the activist business. (b) Economic Income (Loss) excludes income taxes as management does not consider this item when evaluating the performance of the segment. (c) Economic Income (Loss) recognizes Company income from proprietary trading (including interest and dividends) net of related expenses. (d) Economic Income (Loss) recognizes the Company's proportionate share of expenses for certain real estate and other operating entities for which the investments are recorded under the equity method of accounting for investments. (e) Economic Income (Loss) recognizes stock borrow/loan activity (prior to January 2015) and other brokerage dividends as brokerage revenue. (f) Reimbursement from affiliates is shown as a reduction of Economic Income expenses, but is included as a part of revenues under US GAAP. (g) Economic Income (Loss) excludes goodwill impairment and other reorganization expenses. |
Supplemental Financial Inform55
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents unaudited quarterly results of operations for 2015 and 2014 . These quarterly results reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results. Revenues and net income (loss) can vary significantly from quarter to quarter due to the nature of the Company's business activities. Cowen Group, Inc. Quarterly Financial Information (Unaudited) Quarter Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 (in thousands) Total revenues $ 121,094 $ 119,608 $ 113,254 $ 110,611 Net Income (loss) before income taxes 26,365 13,978 (11,083 ) (17,781 ) Income tax expense (benefit) 6,947 3,346 (5,081 ) (52,708 ) Net income (loss) from continuing operations 19,418 10,632 (6,002 ) 34,927 Net Income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds 2,720 3,916 4,344 4,266 Net income (loss) attributable to Cowen Group, Inc. $ 16,698 $ 6,716 $ (10,346 ) $ 30,661 Preferred stock dividends — 755 1,603 1,717 Net income (loss) attributable to Cowen Group, Inc. common stockholders 16,698 5,961 (11,949 ) 28,944 Earnings (loss) per share: Basic $ 0.15 $ 0.05 $ (0.11 ) $ 0.27 Diluted $ 0.14 $ 0.05 $ (0.11 ) $ 0.26 Weighted average number of common shares: Basic 112,053 111,915 109,191 107,236 Diluted 118,590 118,226 109,191 112,730 Quarter Ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 (in thousands) Total revenues $ 106,677 $ 92,902 $ 107,101 $ 121,096 Net Income (loss) before income taxes 14,106 13,644 10,670 19,416 Income tax expense (benefit) 79 46 141 (125,210 ) Net income (loss) from continuing operations 14,027 13,598 10,529 144,626 Net Income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds 4,187 5,216 4,006 2,155 Net income (loss) attributable to Cowen Group, Inc. stockholders $ 9,840 $ 8,382 $ 6,523 $ 142,471 Earnings (loss) per share: Basic $ 0.09 $ 0.07 $ 0.06 $ 1.26 Diluted $ 0.08 $ 0.07 $ 0.05 $ 1.21 Weighted average number of common shares: Basic 115,680 115,569 114,969 113,492 Diluted 122,898 120,199 118,801 118,222 |
Organization and Business (Deta
Organization and Business (Details) | 12 Months Ended |
Dec. 31, 2015segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 2 |
Acquisition (Details)
Acquisition (Details) - USD ($) | 4 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 100,000 | $ 100,000 | $ 900,000 | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 10,000,000 | 10,000,000 | 7,100,000 | |
Goodwill Impairment | 0 | 2,334,000 | $ 0 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (200,000) | (2,055,000) | $ 0 | |
Cowen Prime and Cowen Prime Trading | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | 3,600,000 | 3,600,000 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 0 | 0 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 7,200,000 | 7,200,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 2,966,000 | 2,966,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Receivable from brokers | 5,327,000 | 5,327,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Fixed Assets | 644,000 | 644,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Fees Receivable | 983,000 | 983,000 | ||
Intangible Assets, Net (Including Goodwill) | 19,900,000 | 19,900,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 684,000 | 684,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Payable to brokers | (153,000) | (153,000) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Compensation Payable | (1,667,000) | (1,667,000) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (3,250,000) | (3,250,000) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 25,434,000 | 25,434,000 | ||
Business Acquisition, Transaction Costs | 1,000,000 | 1,000,000 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 13,400,000 | |||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 1,400,000 | |||
Revenues | 496,543,000 | 473,192,000 | ||
Net income (loss) attributable to Cowen Group, Inc. common stockholders | $ 40,613,000 | $ 167,238,000 | ||
Net income per common share - Basic (in dollars per share) | $ 0.37 | $ 1.45 | ||
Net income per common share - Diluted (in dollars per share) | $ 0.35 | $ 1.39 | ||
Cowen Equity Finance | ||||
Business Acquisition [Line Items] | ||||
Impairment of Intangible Assets, Finite-lived | $ 900,000 | |||
Cash [Member] | Cowen Prime and Cowen Prime Trading | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | $ 42,300,000 | |||
Common Stock | Cowen Prime and Cowen Prime Trading | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | 3,000,000 | |||
Broker-Dealer | ||||
Business Acquisition [Line Items] | ||||
Goodwill Impairment | $ 0 | 2,334,000 | ||
Broker-Dealer | Cowen Equity Finance | ||||
Business Acquisition [Line Items] | ||||
Goodwill Impairment | 2,300,000 | |||
Orchard Square Partners | ||||
Business Acquisition [Line Items] | ||||
Assets under Management, Carrying Amount | 420,800,000 | |||
Gain (Loss) on Disposition of Business | $ 4,500,000 |
Significant Accounting Polici58
Significant Accounting Policies - Annual (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)cowenfund | Dec. 31, 2014USD ($)cowenfund | |
Organization [Line Items] | ||
Total net assets of consolidated VIEs | $ | $ 2,200 | $ 2,000 |
Deferred rent | $ | 11,979 | 13,142 |
Deferred Rent Asset, Net, Current | $ | $ 341 | $ 512 |
Minimum | ||
Organization [Line Items] | ||
Redeemable Noncontrolling Interest, Redemption Fee, Percent | 1.00% | |
Maximum | ||
Organization [Line Items] | ||
Redeemable Noncontrolling Interest, Redemption Fee, Percent | 5.00% | |
Telephone and computer equipment | Minimum | ||
Organization [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Telephone and computer equipment | Maximum | ||
Organization [Line Items] | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Computer Software, Intangible Asset [Member] | Minimum | ||
Organization [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Computer Software, Intangible Asset [Member] | Maximum | ||
Organization [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Furniture and Fixtures [Member] | Minimum | ||
Organization [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Furniture and Fixtures [Member] | Maximum | ||
Organization [Line Items] | ||
Property, Plant and Equipment, Useful Life | 8 years | |
Leasehold improvements | Minimum | ||
Organization [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold improvements | Maximum | ||
Organization [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Assets Held under Capital Leases [Member] | ||
Organization [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Organization [Line Items] | ||
Number of funds, Consolidated | cowenfund | 3 | 2 |
Other investment companies | ||
Organization [Line Items] | ||
Number of funds, Consolidated | cowenfund | 5 | |
Investment Company | ||
Organization [Line Items] | ||
Number of funds, Consolidated | cowenfund | 4 | 4 |
Managed mutual funds | Minimum | ||
Organization [Line Items] | ||
Asset Management Fees, Percent Fee | 1.35% | |
Managed mutual funds | Maximum | ||
Organization [Line Items] | ||
Asset Management Fees, Percent Fee | 1.90% | |
Alternative Solutions | Maximum | ||
Organization [Line Items] | ||
Asset Management Fees, Percent Fee | 2.00% | |
Real Estate Funds | Minimum | ||
Organization [Line Items] | ||
Asset Management Fees, Percent Fee | 0.25% | |
Real Estate Funds | Maximum | ||
Organization [Line Items] | ||
Asset Management Fees, Percent Fee | 1.50% | |
Hedge Funds | Maximum | ||
Organization [Line Items] | ||
Asset Management Fees, Percent Fee | 2.00% | |
After investment period | Healthcare Royalty Partners | ||
Organization [Line Items] | ||
Asset Management Fees, Percent Fee | 2.00% | |
During investment period | Healthcare Royalty Partners | ||
Organization [Line Items] | ||
Asset Management Fees, Percent Fee | 2.00% | |
Commodity trading advisory | Ramius Trading Strategies Managed Futures Fund | Maximum | ||
Organization [Line Items] | ||
Asset Management Fees, Percent Fee | 0.50% | |
Alternative Solutions | ||
Organization [Line Items] | ||
Incentive Fees, Percent Fee | 10.00% | |
Hedge Funds | ||
Organization [Line Items] | ||
Incentive Fees, Percent Fee | 20.00% |
Cash Collateral Pledged (Detail
Cash Collateral Pledged (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||
Cash collateral pledged | $ 10,085 | $ 8,306 |
Investments of Operating Enti60
Investments of Operating Entities and Consolidated Funds - Securities Owned at Fair Value - (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Investment Holdings [Line Items] | |||
Fair Value, Concentration of Risk, Investments | $ 0 | $ 0 | |
Marketable Securities, Consolidated Funds | 32,000,000 | 0 | |
Securities owned, at fair value | 610,234,000 | 792,206,000 | |
US Treasury and Government [Member] | |||
Investment Holdings [Line Items] | |||
Trading Securities, Debt | [1] | $ 3,016,000 | $ 2,010,000 |
US Government Securities | Minimum | |||
Investment Holdings [Line Items] | |||
Debt securities, interest rate | 0.00% | 0.00% | |
US Government Securities | Maximum | |||
Investment Holdings [Line Items] | |||
Debt securities, interest rate | 5.95% | 5.95% | |
Preferred Stock | |||
Investment Holdings [Line Items] | |||
Trading Securities, Equity | [2] | $ 25,563,000 | $ 15,070,000 |
Common Stock | |||
Investment Holdings [Line Items] | |||
Trading Securities, Equity | [2] | 516,108,000 | 597,476,000 |
Convertible Bonds | |||
Investment Holdings [Line Items] | |||
Trading Securities, Debt | [3] | $ 819,000 | $ 900,000 |
Debt securities, interest rate | 10.00% | ||
Convertible Bonds | Minimum | |||
Investment Holdings [Line Items] | |||
Debt securities, interest rate | 8.00% | ||
Convertible Bonds | Maximum | |||
Investment Holdings [Line Items] | |||
Debt securities, interest rate | 10.00% | ||
Corporate Bonds | |||
Investment Holdings [Line Items] | |||
Trading Securities, Debt | [4] | $ 47,192,000 | $ 159,557,000 |
Corporate Bonds | Minimum | |||
Investment Holdings [Line Items] | |||
Debt securities, interest rate | 3.25% | 5.63% | |
Corporate Bonds | Maximum | |||
Investment Holdings [Line Items] | |||
Debt securities, interest rate | 9.00% | 11.54% | |
Warrants and Rights | |||
Investment Holdings [Line Items] | |||
Trading Securities, Equity | $ 3,059,000 | $ 1,417,000 | |
Mutual Funds | |||
Investment Holdings [Line Items] | |||
Trading Securities, Equity | [5] | 14,477,000 | 15,776,000 |
Enterprise Master | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | 2,781,000 | 5,896,000 | |
Enterprise Master | Debt | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | 0 | 20,000 | |
Enterprise Master | Trade Claims | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | 128,000 | 128,000 | |
Enterprise Master | Preferred Stock | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | 1,484,000 | 576,000 | |
Enterprise Master | Private Equity | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | 0 | 587,000 | |
Enterprise Master | Common Stock | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | 724,000 | 1,659,000 | |
Enterprise Master | Restricted Stock | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | 124,000 | 124,000 | |
Enterprise Master | Rights | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | 321,000 | 2,802,000 | |
Merger Master | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | 157,921,000 | 136,893,000 | |
Merger Master | Common Stock | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | 157,429,000 | 133,510,000 | |
Merger Master | Corporate Bonds | |||
Investment Holdings [Line Items] | |||
Securities owned, at fair value | [6] | $ 492,000 | $ 3,383,000 |
Debt securities, interest rate | 5.25% | ||
Merger Master | Corporate Bonds | Minimum | |||
Investment Holdings [Line Items] | |||
Debt securities, interest rate | 8.50% | ||
Merger Master | Corporate Bonds | Maximum | |||
Investment Holdings [Line Items] | |||
Debt securities, interest rate | 9.75% | ||
Common Stock | |||
Investment Holdings [Line Items] | |||
Trading Securities, Equity | [2] | $ 7,400,000 | $ 14,300,000 |
Preferred Stock | |||
Investment Holdings [Line Items] | |||
Trading Securities, Equity | [2] | 7,700,000 | |
Affiliated Entity | Mutual Funds | |||
Investment Holdings [Line Items] | |||
Trading Securities, Equity | [5] | $ 13,400,000 | $ 15,700,000 |
[1] | As of December 31, 2015, maturities ranged from January 2016 to August 2016 with interest rates ranged between 0% to 5.95%. As of December 31, 2014, maturities ranged from May 2015 to April 2016 with interest rates ranged between 0% to 5.95%. | ||
[2] | Included in preferred stocks and common stocks are investments in securities for which the Company has elected the fair value option with the fair value of $7.7 million and $7.4 million, respectively, at December 31, 2015 and $14.3 million of common stocks at December 31, 2014. These investments were acquired in contemplation with merchant banking transactions. | ||
[3] | As of December 31, 2015, maturities ranged from July 2016 to March 2018 with interest rates ranged between 8% to 10.00%. As of December 31, 2014, the maturity was February 2015 with an interest rate of 10.00%. | ||
[4] | As of December 31, 2015, maturities ranged from March 2016 to February 2046 and interest rates ranged between 3.25% to 9.00%. As of December 31, 2014, maturities ranged from February 2015 to February 2046 and interest rates ranged between 5.63% to 11.54%. | ||
[5] | s of December 31, 2015 and 2014, are investments in affiliated funds of $13.4 million and $15.7 million, respectively. | ||
[6] | As of December 31, 2015, the maturity was ranged from June 2024 with interest rate of 5.25%. As of December 31, 2014, maturities ranged from February 2017 to June 2019 and interest rates ranged between 8.50% and 9.75%. |
Investments of Operating Enti61
Investments of Operating Entities and Consolidated Funds - Derivatives (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($)contractshares | Dec. 31, 2014USD ($)contract | Dec. 31, 2013USD ($) | Mar. 10, 2014USD ($)$ / shares | ||
Derivative [Line Items] | |||||
Securities sold, not yet purchased, at fair value | $ 257,159 | $ 207,875 | |||
Warrants issued | 15,218 | ||||
Cost of hedge transaction and warrant, net | $ 20,500 | ||||
Receivable on derivative contracts, at fair value | 39,618 | 49,877 | |||
Payable for derivative contracts, at fair value | $ 21,183 | 41,330 | |||
Trading days for expiration | 80 days | ||||
Futures | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | $ 189 | 75 | |||
Payable for derivative contracts, at fair value | 101 | 33 | |||
Derivative Asset, Notional Amount | 9,416 | 3,041 | |||
Derivative Liability, Notional Amount | 11,995 | 2,213 | |||
Currency Forwards | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | 659 | 310 | |||
Payable for derivative contracts, at fair value | 463 | 0 | |||
Derivative Asset, Notional Amount | 67,862 | 23,961 | |||
Derivative Liability, Notional Amount | 44,156 | 0 | |||
Equity Swaps | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | 2,327 | 251 | |||
Payable for derivative contracts, at fair value | 71 | 1,603 | |||
Derivative Asset, Notional Amount | 118,488 | 12,904 | |||
Derivative Liability, Notional Amount | 7,605 | 18,352 | |||
Options | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | [1] | $ 31,456 | $ 48,201 | ||
Derivative Asset, Number of Instruments Held | contract | [1] | 289,433 | 367,441 | ||
Put Option | |||||
Derivative [Line Items] | |||||
Payable for derivative contracts, at fair value | [2] | $ 20,548 | $ 39,694 | ||
Derivative Liability, Number of Instruments Held | contract | [2] | 16,632 | 22,043 | ||
Foreign Exchange Option | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | $ 4,987 | $ 1,040 | |||
Derivative Asset, Notional Amount | 283,797 | 32,200 | |||
Receivables from Brokers-Dealers and Clearing Organizations | |||||
Derivative [Line Items] | |||||
Collateral posted | 27,100 | 5,500 | |||
Other Income | |||||
Derivative [Line Items] | |||||
Realized and unrealized gains/(losses) related to derivatives trading activities | (4,600) | (500) | $ 4,400 | ||
Enterprise Master | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | (4) | 64 | |||
Merger Master | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | 2,511 | 619 | |||
Payable for derivative contracts, at fair value | 593 | 296 | |||
Merger Master | Equity Swaps | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | 1,001 | 78 | |||
Merger Master | Currency forward | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | 235 | 0 | |||
Merger Master | Options | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | 1,275 | 541 | |||
Merger Master | Equity Swaps | |||||
Derivative [Line Items] | |||||
Payable for derivative contracts, at fair value | 30 | 58 | |||
Merger Master | Put Option | |||||
Derivative [Line Items] | |||||
Payable for derivative contracts, at fair value | 563 | 238 | |||
Quadratic Master | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | $ 9,099 | ||||
Common Stock Class A | |||||
Derivative [Line Items] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 28,048,786 | ||||
Class of Warrant, Exercise Price of Warrants or Rights | $ / shares | $ 7.18 | ||||
Convertible Debt | |||||
Derivative [Line Items] | |||||
Call Option, Fair Value | $ 18,200 | $ 35,700 | |||
Receivable on derivatives contracts, at fair value [Member] | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 39,618 | 49,877 | |||
Receivable on derivative contracts, at fair value | 39,618 | 49,877 | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [3] | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | [4] | 9,339 | 2,588 | ||
Derivative asset, net of offset | 30,279 | 47,289 | |||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | 0 | 0 | |||
Payable for derivatives contracts, at fair value [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 21,183 | 41,330 | |||
Payable for derivative contracts, at fair value | 21,183 | 41,330 | |||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | 0 | 0 | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | [3] | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | [4] | 534 | 1,603 | ||
Derivative Liability, net of offset | 20,649 | 39,727 | |||
Currency forward | Quadratic Master | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | 92 | ||||
Options | Quadratic Master | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | 9,007 | ||||
Put Option | Quadratic Master | |||||
Derivative [Line Items] | |||||
Payable for derivative contracts, at fair value | 200 | ||||
Currency Forwards | Enterprise Master | |||||
Derivative [Line Items] | |||||
Receivable on derivative contracts, at fair value | $ (4) | $ 64 | |||
[1] | Includes index, equity, commodity future and cash conversion options. | ||||
[2] | Includes index, equity, commodity future and cash conversion options. | ||||
[3] | Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. | ||||
[4] | Includes the amount of collateral held or posted. |
Investments of Operating Enti62
Investments of Operating Entities and Consolidated Funds - Other Investments - Quarterly (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Investment Holdings [Line Items] | ||||
Other Investments, Consolidated Funds | $ 263,818 | $ 189,377 | ||
Other investments | 140,647 | 167,464 | ||
Portfolio Funds, at fair value | ||||
Investment Holdings [Line Items] | ||||
Other Investments, Consolidated Funds | 263,818 | [1] | 188,884 | [2] |
Other investments | 111,360 | [1] | 103,466 | [2] |
Real Estate Equity Investment | ||||
Investment Holdings [Line Items] | ||||
Other investments | 1,921 | 2,175 | ||
Equity Method Investments | ||||
Investment Holdings [Line Items] | ||||
Other investments | 27,067 | 61,443 | ||
Lehman claims, at fair value | ||||
Investment Holdings [Line Items] | ||||
Other Investments, Consolidated Funds | 0 | 493 | ||
Other investments | 299 | $ 380 | ||
Hollenfels | ||||
Investment Holdings [Line Items] | ||||
Business Combination, Consideration Transferred | $ 469,800 | |||
[1] | In accordance with US GAAP, certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. | |||
[2] | In accordance with US GAAP, certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. |
Investments of Operating Enti63
Investments of Operating Entities and Consolidated Funds - Portfolio Funds - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | ||||
Investment Holdings [Line Items] | |||||
Portfolio Funds, Consolidated Funds | $ 263,818 | $ 188,884 | |||
Other investments | 140,647 | 167,464 | |||
Enterprise LP | |||||
Investment Holdings [Line Items] | |||||
Portfolio Funds, Consolidated Funds | 111,075 | 138,253 | |||
Merger Fund | |||||
Investment Holdings [Line Items] | |||||
Portfolio Funds, Consolidated Funds | 74,348 | 50,631 | |||
Quadratic Fund LLC | |||||
Investment Holdings [Line Items] | |||||
Portfolio Funds, Consolidated Funds | 78,395 | 0 | |||
Portfolio Funds | |||||
Investment Holdings [Line Items] | |||||
Other investments | 111,360 | [1] | 103,466 | [2] | |
Portfolio Funds | Healthcare Royalty Partners | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3],[4] | 12,127 | 11,935 | ||
Portfolio Funds | Healthcare Royalty Partners II | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [3],[4] | 6,006 | 6,648 | ||
Portfolio Funds | Orchard Square Partners Credit Fund LP | |||||
Investment Holdings [Line Items] | |||||
Other investments | [5] | $ 4,170 | $ 11,532 | ||
Portfolio Funds | Orchard Square Partners Credit Fund LP | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Required notice period, redemption | 60 days | 60 days | |||
Penalty on redemptions of less than one year | 4.00% | 4.00% | |||
Portfolio Funds | Starboard Value and Opportunity Fund LP | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [4],[6] | $ 20,369 | $ 21,792 | ||
Required notice period, withdrawal | 90 days | 90 days | |||
Portfolio Funds | Starboard Partners Fund LP | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [4],[7] | $ 14,036 | $ 14,652 | ||
Required notice period, withdrawal | 180 days | 180 days | |||
Portfolio Funds | Starboard Leaders Fund LP | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [4],[8] | $ 1,080 | $ 1,367 | ||
Unfunded Commitment cancellation | 30 days | 30 days | |||
Portfolio Funds | Formation 8 Partners Fund I LP | |||||
Investment Holdings [Line Items] | |||||
Other investments | [9] | $ 19,454 | $ 11,283 | ||
Portfolio Funds | Formation 8 Partners Hardware Fund I, L.P. | |||||
Investment Holdings [Line Items] | |||||
Other investments | [10] | 1,101 | 0 | ||
Portfolio Funds | RCG LV Park Lane LLC | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [4],[11] | 809 | 642 | ||
Portfolio Funds | RCGL 12E13th LLC | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [4],[12] | 609 | 638 | ||
Portfolio Funds | RCGLongview Debt Fund V, L.P. | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [4],[12] | 18,147 | 12,876 | ||
Portfolio Funds | Other Funds | |||||
Investment Holdings [Line Items] | |||||
Other investments | [4],[13] | 6,909 | 7,324 | ||
Portfolio Funds | Other Funds | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [4],[14] | 4,075 | 2,777 | ||
Portfolio Funds | RCG LPP SME Co-Invest, L.P. | Affiliated Entity | |||||
Investment Holdings [Line Items] | |||||
Other investments | [4],[15] | 2,468 | 0 | ||
Portfolio Funds | Enterprise Master | |||||
Investment Holdings [Line Items] | |||||
Other investments | 111,676 | 135,846 | |||
Portfolio Funds | Enterprise Master | RCG Longview Equity Fund, LP | Affiliated Entity | Real Estate Strategy | |||||
Investment Holdings [Line Items] | |||||
Other investments | [16] | 7,635 | 9,090 | ||
Portfolio Funds | Enterprise Master | RCG Longview II, LP | Affiliated Entity | Real Estate Strategy | |||||
Investment Holdings [Line Items] | |||||
Other investments | [16] | 698 | 747 | ||
Portfolio Funds | Enterprise Master | RCG Longview Debt Fund IV, LP | Affiliated Entity | Real Estate Strategy | |||||
Investment Holdings [Line Items] | |||||
Other investments | [16] | 3,577 | 5,348 | ||
Portfolio Funds | Enterprise Master | RCG Longview, LP | Affiliated Entity | Real Estate Strategy | |||||
Investment Holdings [Line Items] | |||||
Other investments | [16] | 0 | 40 | ||
Portfolio Funds | Enterprise Master | RCG Soundview, LLC | Affiliated Entity | Real Estate Strategy | |||||
Investment Holdings [Line Items] | |||||
Other investments | [16] | 452 | 452 | ||
Portfolio Funds | Enterprise Master | RCG Urban American Real Estate Fund, L.P. | Affiliated Entity | Real Estate Strategy | |||||
Investment Holdings [Line Items] | |||||
Other investments | [16] | 312 | 1,161 | ||
Portfolio Funds | Enterprise Master | RCG International Sarl | Affiliated Entity | Multi-strategy | |||||
Investment Holdings [Line Items] | |||||
Other investments | [16] | 0 | 2,113 | ||
Portfolio Funds | Enterprise Master | RCG Special Opportunities Fund, Ltd | Affiliated Entity | Multi-strategy | |||||
Investment Holdings [Line Items] | |||||
Other investments | [16] | 81,544 | 92,405 | ||
Portfolio Funds | Enterprise Master | RCG Energy, LLC | Affiliated Entity | Energy Strategy | |||||
Investment Holdings [Line Items] | |||||
Other investments | [16] | 1,189 | 2,294 | ||
Portfolio Funds | Enterprise Master | RCG Renergys, LLC | Affiliated Entity | Energy Strategy | |||||
Investment Holdings [Line Items] | |||||
Other investments | [16] | 1 | 1 | ||
Portfolio Funds | Enterprise Master | Other Private Investment | Various Strategies | |||||
Investment Holdings [Line Items] | |||||
Other investments | 10,515 | 12,057 | |||
Portfolio Funds | Enterprise Master | Real Estate Funds | Real Estate Strategy | |||||
Investment Holdings [Line Items] | |||||
Other investments | [16] | $ 5,753 | $ 10,138 | ||
[1] | In accordance with US GAAP, certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. | ||||
[2] | In accordance with US GAAP, certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. | ||||
[3] | HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis. | ||||
[4] | These portfolio funds are affiliates of the Company. | ||||
[5] | Orchard Square Partners Credit Fund LP has a quarterly redemption policy with a 60 day notice period and a 4% penalty on redemptions of investments of less than a year in duration. | ||||
[6] | Starboard Value and Opportunity Fund LP permits quarterly withdrawals upon 90 days notice. | ||||
[7] | Starboard Partners Fund LP permits redemptions on a semi-annual basis on 180 days prior written notice subsequent to an initial two year lock up. | ||||
[8] | Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days prior written notice at any time following the first anniversary of an investors initial capital contribution. | ||||
[9] | Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated. | ||||
[10] | Formation8 Partners Hardware Fund I, L.P. is a private equity fund which invests in early stage and growth hardware companies. Distributions will be made when the underlying investments are liquidated. | ||||
[11] | RCG LV Park Lane LLC is a single purpose entity formed to participate in a joint venture which acquired, at a discount, the mortgage notes on a portfolio of multifamily real estate properties located in Birmingham, Alabama. RCG LV Park Lane LLC is a private equity structure and therefore distributions will be made when the underlying investments are liquidated. | ||||
[12] | RCGL 12E13th LLC and RCG Longview Debt Fund V, L.P. are real estate private equity structures and therefore distributions will be made when the underlying investments are liquidated. | ||||
[13] | Other private investment represents the Company's closed end investment in a portfolio fund that invests in a wireless broadband communication provider in Italy. | ||||
[14] | The majority of these funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated. | ||||
[15] | RCG LPP SME Co-Invest, L.P. is a single purpose entity formed to participate in a joint venture which acquired two fully entitled residential development sites in the New York City metro area. RCG LPP SME Co-Invest, L.P. is a private equity structure and therefore distributions will be made when the underlying investments are liquidated. | ||||
[16] | Affiliates of the Company. |
Investments of Operating Enti64
Investments of Operating Entities and Consolidated Funds - Real Estate (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other investments | $ 140,647 | $ 167,464 |
Real Estate Equity Investment | ||
Other investments | 1,921 | 2,175 |
Real Estate Equity Investment | RCG RE Manager, LLC | ||
Other investments | 1,900 | 2,200 |
Clawback Obligation | ||
Other Commitment | 6,200 | 6,200 |
Clawback Obligation | RCG Longview Partners II, LLC | ||
Other Commitment | $ 6,200 | $ 6,200 |
Investments of Operating Enti65
Investments of Operating Entities and Consolidated Funds - Equity Method Investments - (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | $ 140,647 | $ 167,464 | ||
Other than Temporary Impairment Losses, Investments | $ 800 | |||
Net Gains (Losses) on Securities, Derivatives and Other Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (Loss) from Equity Method Investments | (3,300) | 49,100 | $ 16,100 | |
Clawback Obligation | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other Commitment | 6,200 | 6,200 | ||
Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 27,067 | 61,443 | ||
Equity Method Investee, Exceeded Threshold for Income Test | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 49,669 | 160,224 | 78,222 | |
Expenses | (30,516) | (46,575) | (49,340) | |
Net realized and unrealized gains (losses) | 13,221 | 14,325 | 18,589 | |
Net Income | 32,374 | 127,974 | 47,471 | |
Equity | 97,486 | 175,407 | ||
Assets | 118,835 | 196,710 | ||
Liabilities | 21,349 | 21,303 | ||
RCG Longview Debt Fund IV Management, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 331 | 676 | ||
RCG Longview Debt Fund V Partners, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 4,655 | 2,684 | ||
Healthcare Royalty GP, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 989 | 973 | ||
Healthcare Royalty GP II, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 1,017 | 1,125 | ||
Healthcare Royalty GP III, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 88 | 62 | ||
CBOE Stock Exchange, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 0 | 611 | ||
Starboard Value LP | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 14,400 | |||
Other investments | 15,769 | 48,772 | ||
Notes Receivable, Related Parties | $ 9,600 | |||
Effective interest rate | 5.00% | |||
RCG Longview Partners, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | $ 0 | 237 | ||
RCG Longview Management, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 656 | 1,117 | ||
RCG Urban American, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 120 | 422 | ||
RCG Urban American Management, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 379 | 379 | ||
RCG Longview Equity Management, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 114 | 316 | ||
Urban American Real Estate Fund II, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 1,211 | 2,329 | ||
RCG Kennedy House, LLC | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 304 | 509 | ||
Equity Method Investee, Other | Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other investments | 1,434 | 1,231 | ||
RCG Longview Partners II, LLC | Clawback Obligation | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Other Commitment | $ 6,200 | 6,200 | ||
Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 20.00% | |||
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 55.00% | |||
Operating Entities | Equity Method Investee, Exceeded Threshold for Income Test | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 36,641 | 129,203 | 41,879 | |
Expenses | (20,658) | (20,362) | (11,602) | |
Net realized and unrealized gains (losses) | 4,258 | 4,563 | 1,566 | |
Net Income | 20,241 | 113,404 | $ 31,843 | |
Cash | 1,060 | 4,595 | ||
Performance & management fee receivable | 32,638 | 108,355 | ||
Investments in Portfolio Funds, at fair value | 18,797 | 12,403 | ||
Other assets | 2,327 | 1,485 | ||
Liabilities | 10,426 | 12,632 | ||
Equity | $ 44,396 | $ 114,206 |
Investments of Operating Enti66
Investments of Operating Entities and Consolidated Funds - Lehman Claims (Details) - Lehman claims, at fair value - USD ($) $ in Millions | Dec. 31, 2015 | Sep. 15, 2008 |
Investment Holdings [Line Items] | ||
Initial value | $ 1 | |
Total Dividend Amount Received | $ 1 | |
Total Dividend percent received | 100.00% | |
Enterprise Master | ||
Investment Holdings [Line Items] | ||
Initial value | $ 24.3 | |
Total Dividend Amount Received | $ 37.2 |
Investments of Operating Enti67
Investments of Operating Entities and Consolidated Funds - Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments Sold, Not yet Purchased [Line Items] | |||
Securities owned, at fair value | $ 610,234 | $ 792,206 | |
Securities sold, not yet purchased, at fair value | 257,159 | 207,875 | |
Merger Master | |||
Investments Sold, Not yet Purchased [Line Items] | |||
Securities owned, at fair value | 157,921 | 136,893 | |
Corporate Bonds | |||
Investments Sold, Not yet Purchased [Line Items] | |||
Securities sold, not yet purchased, at fair value | [1] | $ 58 | $ 60 |
Securities sold, not yet purchased, interest rate | 5.55% | 5.55% | |
Common Stock | |||
Investments Sold, Not yet Purchased [Line Items] | |||
Securities sold, not yet purchased, at fair value | $ 257,101 | $ 207,815 | |
Common Stock | Merger Master | |||
Investments Sold, Not yet Purchased [Line Items] | |||
Securities sold, not yet purchased, at fair value | $ 73,800 | $ 39,900 | |
[1] | As of December 31, 2015 and 2014, the maturity was January 2026 with an interest rate of 5.55% |
Investments of Operating Enti68
Investments of Operating Entities and Consolidated Funds - Securities Lending and Borrowing Transactions (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Securities borrowed | $ 0 | $ 676,100 | |
Securities Borrowed, Amount Offset Against Collateral | [1] | 0 | |
Securities Borrowed | 676,100 | ||
Securities Borrowed, Not Offset, Policy Election Deduction | (15,655) | ||
Securities Borrowed, Not Offset against Collateral | [2] | 0 | |
Securities Borrowed, net | 0 | ||
Securities loaned | $ 0 | 682,493 | |
Securities Loaned, Amount Offset Against Collateral | [1] | 0 | |
Securities Loaned | 682,493 | ||
Securities Loaned, Not Offset, Policy Election Deduction | (2,441) | ||
Securities Loaned, Fair Value of Collateral | [2] | 0 | |
Securities Loaned, Not Offset Against Collateral | 0 | ||
securities borrowed [Member] | |||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | (660,445) | ||
securities loaned [Member] | |||
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | $ (680,052) | ||
[1] | Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred. | ||
[2] | Includes the amount of cash collateral held/posted. |
Investments of Operating Enti69
Investments of Operating Entities and Consolidated Funds - Variable Interest Entities (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Total assets of nonconsolidated variable interest entities | $ 3,100 | $ 3,000 |
Total liabilities of nonconsolidated variable interest entities | 472.4 | 499.2 |
Maximum exposure regarding nonconsolidated variable interest entities | $ 321.9 | $ 260.9 |
Fair Value Measurements for O70
Fair Value Measurements for Operating Entities and Consolidated Funds Assets and Liabilities at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | $ 684,072 | $ 845,131 | ||
Financial Liabilities Fair Value Disclosure | 284,500 | 253,288 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 100 | 900 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 10,000 | 7,100 | ||
Other investments | 140,647 | 167,464 | ||
Other Investments, Consolidated Funds | 263,818 | 189,377 | ||
Investments | 1,086,317 | 1,198,924 | ||
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | $ 543,258 | $ 607,352 | ||
Percentage of Total Assets at Fair Value | 79.40% | 71.90% | ||
Percentage of Total Liabilities at Fair Value | 91.20% | 83.20% | ||
Financial Liabilities Fair Value Disclosure | $ 259,556 | $ 210,735 | ||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | $ 68,859 | $ 182,773 | ||
Percentage of Total Assets at Fair Value | 10.10% | 21.60% | ||
Percentage of Total Liabilities at Fair Value | 0.20% | 0.70% | ||
Financial Liabilities Fair Value Disclosure | $ 592 | $ 1,663 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | $ 71,955 | $ 55,006 | ||
Percentage of Total Assets at Fair Value | 10.50% | 6.50% | ||
Percentage of Total Liabilities at Fair Value | 8.60% | 16.10% | ||
Financial Liabilities Fair Value Disclosure | $ 24,352 | $ 40,890 | ||
Common Stock | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 257,101 | 207,815 | ||
Common Stock | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 257,101 | 207,815 | ||
Common Stock | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Common Stock | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 58 | 60 | ||
Corporate Bonds | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Corporate Bonds | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 58 | 60 | ||
Corporate Bonds | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Contingent liability payable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 6,158 | [1] | 4,083 | [2] |
Contingent liability payable | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | [1] | 0 | [2] |
Contingent liability payable | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | [1] | 0 | [2] |
Contingent liability payable | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 6,158 | [1] | 4,083 | [2] |
Futures | Derivative Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 101 | 33 | ||
Futures | Derivative Liabilities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 101 | 33 | ||
Futures | Derivative Liabilities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Futures | Derivative Liabilities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Currency forward | Derivative Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 463 | |||
Currency forward | Derivative Liabilities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | |||
Currency forward | Derivative Liabilities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 463 | |||
Currency forward | Derivative Liabilities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | |||
Equity Swaps | Derivative Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 71 | 1,603 | ||
Equity Swaps | Derivative Liabilities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Equity Swaps | Derivative Liabilities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 71 | 1,603 | ||
Equity Swaps | Derivative Liabilities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Put Option | Derivative Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 20,548 | 39,694 | ||
Put Option | Derivative Liabilities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 2,354 | 2,887 | ||
Put Option | Derivative Liabilities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 0 | 0 | ||
Put Option | Derivative Liabilities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial Liabilities Fair Value Disclosure | 18,194 | 36,807 | ||
US Government Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 3,016 | 2,010 | ||
US Government Securities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 3,016 | 2,010 | ||
US Government Securities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
US Government Securities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Preferred Stock | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 25,563 | 15,070 | ||
Preferred Stock | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 7,891 | 0 | ||
Preferred Stock | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 4,800 | 2,553 | ||
Preferred Stock | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 12,872 | 12,517 | ||
Common Stock | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 516,108 | 597,476 | ||
Common Stock | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 505,303 | 578,934 | ||
Common Stock | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 7,527 | 18,130 | ||
Common Stock | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 3,278 | 412 | ||
Convertible Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 819 | 900 | ||
Convertible Bonds | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Convertible Bonds | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Convertible Bonds | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 819 | 900 | ||
Corporate Bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 47,192 | 159,557 | ||
Corporate Bonds | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Corporate Bonds | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 47,192 | 159,557 | ||
Corporate Bonds | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Warrants and Rights | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 3,059 | 1,417 | ||
Warrants and Rights | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 487 | 95 | ||
Warrants and Rights | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Warrants and Rights | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 2,572 | 1,322 | ||
Mutual Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 14,477 | 15,776 | ||
Mutual Funds | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 14,477 | 15,776 | ||
Mutual Funds | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Mutual Funds | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Derivative Assets | Futures | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 189 | 75 | ||
Derivative Assets | Futures | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 189 | 75 | ||
Derivative Assets | Futures | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Derivative Assets | Futures | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Derivative Assets | Currency forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 659 | 310 | ||
Derivative Assets | Currency forward | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Derivative Assets | Currency forward | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 659 | 310 | ||
Derivative Assets | Currency forward | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Derivative Assets | Equity Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 2,327 | 251 | ||
Derivative Assets | Equity Swaps | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Derivative Assets | Equity Swaps | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 2,327 | 251 | ||
Derivative Assets | Equity Swaps | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Derivative Assets | Options | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 36,443 | 49,241 | ||
Derivative Assets | Options | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 11,895 | 10,462 | ||
Derivative Assets | Options | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 6,354 | 1,972 | ||
Derivative Assets | Options | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 18,194 | 36,807 | ||
Portfolio Funds, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | 111,360 | [3] | 103,466 | [4] |
Other Investments, Consolidated Funds | 263,818 | [3] | 188,884 | [4] |
Real Estate Investments, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 1,921 | 2,175 | ||
Real Estate Investments, at fair value | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Real Estate Investments, at fair value | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Real Estate Investments, at fair value | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 1,921 | 2,175 | ||
Lehman claims, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 299 | 380 | ||
Other investments | 299 | 380 | ||
Other Investments, Consolidated Funds | 0 | 493 | ||
Lehman claims, at fair value | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Lehman claims, at fair value | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | ||
Lehman claims, at fair value | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 299 | 380 | ||
Equity Method Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Other investments | 27,067 | 61,443 | ||
Consolidated Funds | Preferred Stock | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 32,000 | |||
Consolidated Funds | Preferred Stock | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | |||
Consolidated Funds | Preferred Stock | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | |||
Consolidated Funds | Preferred Stock | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | $ 32,000 | |||
Consolidated Funds | Lehman claims, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 493 | |||
Consolidated Funds | Lehman claims, at fair value | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | |||
Consolidated Funds | Lehman claims, at fair value | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | 0 | |||
Consolidated Funds | Lehman claims, at fair value | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value Disclosure, Recurring | $ 493 | |||
[1] | In accordance with the terms of the purchase agreements for acquisitions that closed during 2012 and the third and fourth quarter of 2015, the Company is required to pay to the sellers a portion of future net income of the acquired businesses, if certain revenue targets are achieved through the periods ended August 2016, December 2020, and December 2018, respectively. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts as of December 31, 2015 can range from $0.1 million to $10.0 million. | |||
[2] | In accordance with the terms of a purchase agreement for an acquisitions that closed during 2012, the Company is required to pay to the sellers a portion of future net income of the acquired businesses, if certain revenue targets are achieved through the period ended August 2016. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts can range from $0.9 million to $7.1 million. | |||
[3] | In accordance with US GAAP, certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. | |||
[4] | In accordance with US GAAP, certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statement of financial condition. |
Fair Value Measurements for O71
Fair Value Measurements for Operating Entities and Consolidated Funds Unobservable Input Roll Forward (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Asset Value | $ 55,006,000 | ||||
Balance Liability Value | 40,890,000 | ||||
Balance Asset Value | 71,955,000 | $ 55,006,000 | |||
Balance Liability Value | 24,352,000 | 40,890,000 | |||
Fair value, Between Level 1 and 2 transfers, amount | 0 | ||||
Preferred Stock | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Asset Value | 12,517,000 | 324,000 | |||
Asset, Transfers In | 0 | 0 | |||
Asset, Transfers Out | [1] | (11,322,000) | [2] | (2,000,000) | |
Purchases/(covers) | 14,850,000 | 14,396,000 | |||
(Sales)/short buys | (6,665,000) | 0 | |||
Realized and unrealized gains (losses), asset | 3,492,000 | (203,000) | |||
Change in Unrealized Gain (Loss), instruments still held, asset | [3] | 217,000 | (203,000) | ||
Balance Asset Value | 12,872,000 | 12,517,000 | |||
Common Stock | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Asset Value | 412,000 | 3,559,000 | |||
Asset, Transfers In | 0 | 0 | |||
Asset, Transfers Out | 0 | (3,150,000) | [1] | ||
Purchases/(covers) | 3,398,000 | 12,000 | |||
(Sales)/short buys | (441,000) | (1,000) | |||
Realized and unrealized gains (losses), asset | (91,000) | (8,000) | |||
Change in Unrealized Gain (Loss), instruments still held, asset | [3] | 90,000 | (135,000) | ||
Balance Asset Value | 3,278,000 | 412,000 | |||
Convertible Bonds | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Asset Value | 900,000 | 1,950,000 | |||
Asset, Transfers In | 0 | 0 | |||
Asset, Transfers Out | 0 | 0 | |||
Purchases/(covers) | 250,000 | 0 | |||
(Sales)/short buys | 0 | (200,000) | |||
Realized and unrealized gains (losses), asset | (331,000) | (850,000) | |||
Change in Unrealized Gain (Loss), instruments still held, asset | [3] | (331,000) | (850,000) | ||
Balance Asset Value | 819,000 | 900,000 | |||
Options | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Asset Value | 36,807,000 | 0 | |||
Asset, Transfers In | 0 | 0 | |||
Asset, Transfers Out | 0 | 0 | |||
Purchases/(covers) | 0 | 35,710,000 | |||
(Sales)/short buys | 0 | 0 | |||
Realized and unrealized gains (losses), asset | (18,613,000) | 1,097,000 | |||
Change in Unrealized Gain (Loss), instruments still held, asset | [3] | (18,613,000) | 1,097,000 | ||
Balance Asset Value | 18,194,000 | 36,807,000 | |||
Warrants and Rights | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Asset Value | 1,322,000 | 5,805,000 | |||
Asset, Transfers In | 0 | 0 | |||
Asset, Transfers Out | 0 | (1,288,000) | [4] | ||
Purchases/(covers) | 824,000 | 57,000 | |||
(Sales)/short buys | (71,000) | (97,000) | |||
Realized and unrealized gains (losses), asset | 497,000 | (3,155,000) | |||
Change in Unrealized Gain (Loss), instruments still held, asset | [3] | 715,000 | (1,415,000) | ||
Balance Asset Value | 2,572,000 | 1,322,000 | |||
Real Estate Investments, at fair value | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Asset Value | 2,175,000 | 2,088,000 | |||
Asset, Transfers In | 0 | 0 | |||
Asset, Transfers Out | 0 | 0 | |||
Purchases/(covers) | 0 | 50,000,000 | |||
(Sales)/short buys | (390,000) | (50,168,000) | |||
Realized and unrealized gains (losses), asset | 136,000 | 255,000 | |||
Change in Unrealized Gain (Loss), instruments still held, asset | [3] | 137,000 | 255,000 | ||
Balance Asset Value | 1,921,000 | 2,175,000 | |||
Lehman claims, at fair value | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Asset Value | 380,000 | 378,000 | |||
Asset, Transfers In | 0 | 0 | |||
Asset, Transfers Out | 0 | 0 | |||
Purchases/(covers) | 0 | 0 | |||
(Sales)/short buys | 0 | (76,000) | |||
Realized and unrealized gains (losses), asset | (81,000) | 78,000 | |||
Change in Unrealized Gain (Loss), instruments still held, asset | [3] | (81,000) | 79,000 | ||
Balance Asset Value | 299,000 | 380,000 | |||
Consolidated Funds | Preferred Stock | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Asset Value | 0 | ||||
Asset, Transfers In | [2] | 7,000,000 | |||
Asset, Transfers Out | 0 | ||||
Purchases/(covers) | 25,000,000 | ||||
(Sales)/short buys | 0 | ||||
Realized and unrealized gains (losses), asset | 0 | ||||
Change in Unrealized Gain (Loss), instruments still held, asset | [3] | 0 | |||
Balance Asset Value | 32,000,000 | 0 | |||
Consolidated Funds | Lehman claims, at fair value | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Asset Value | 493,000 | 4,842,000 | |||
Asset, Transfers In | 0 | 0 | |||
Asset, Transfers Out | 0 | 0 | |||
Purchases/(covers) | 0 | 0 | |||
(Sales)/short buys | (739,000) | (4,711,000) | |||
Realized and unrealized gains (losses), asset | 246,000 | 362,000 | |||
Change in Unrealized Gain (Loss), instruments still held, asset | [3] | 0 | (3,897,000) | ||
Balance Asset Value | 0 | 493,000 | |||
Options, liability | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Liability Value | 36,807,000 | 0 | |||
Liability, Transfers In | 0 | 0 | |||
Liability, Transfers Out | 0 | 0 | |||
Liability, Purchases | 0 | 35,710,000 | |||
Liability, Sales | 0 | 0 | |||
Realized and unrealized gains (losses), liability | (18,613,000) | 1,097,000 | |||
Change in Unrealized Gain (Loss), instruments still held, liabilities | [3] | (18,613,000) | 1,097,000 | ||
Balance Liability Value | 18,194,000 | 36,807,000 | |||
Contingent liability payable | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance Liability Value | 4,083,000 | 6,937,000 | |||
Liability, Transfers In | 0 | 0 | |||
Liability, Transfers Out | 0 | 0 | |||
Liability, Purchases | 3,600,000 | 21,000 | |||
Liability, Sales | (1,725,000) | (820,000) | |||
Realized and unrealized gains (losses), liability | 200,000 | (2,055,000) | |||
Change in Unrealized Gain (Loss), instruments still held, liabilities | [3] | 200,000 | 0 | ||
Balance Liability Value | $ 6,158,000 | $ 4,083,000 | |||
[1] | The company completed an initial public offering. | ||||
[2] | The company transferred investments to a consolidated fund. | ||||
[3] | Unrealized gains/losses are reported in other income (loss) in the accompanying consolidated statements of operations. | ||||
[4] | The investment was converted to equity. |
Fair Value Measurements for O72
Fair Value Measurements for Operating Entities and Consolidated Funds Fair Value Inputs, Unobservable Inputs, Quantitative Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Balance Asset Value | $ 71,955 | $ 55,006 | ||||
Financial Liabilities Fair Value Disclosure | 284,500 | 253,288 | ||||
Assets, Fair Value Disclosure, Recurring | 684,072 | 845,131 | ||||
Balance Liability Value | 24,352 | 40,890 | ||||
Contingent liability payable | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Financial Liabilities Fair Value Disclosure | 6,158 | [1] | 4,083 | [2] | ||
Balance Liability Value | 6,158 | 4,083 | $ 6,937 | |||
Common and Preferred Stock | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Balance Asset Value | 2,569 | 12,269 | ||||
Convertible Bonds | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Balance Asset Value | 819 | 900 | 1,950 | |||
Assets, Fair Value Disclosure, Recurring | 819 | 900 | ||||
Warrants and Rights | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Balance Asset Value | 2,572 | 1,322 | $ 5,805 | |||
Assets, Fair Value Disclosure, Recurring | 3,059 | 1,417 | ||||
Other Investments | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Balance Asset Value | [3] | 47,801 | 3,708 | |||
Level 3 | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Financial Liabilities Fair Value Disclosure | 24,352 | 40,890 | ||||
Assets, Fair Value Disclosure, Recurring | $ 71,955 | $ 55,006 | ||||
Level 3 | Options | Market Approach Valuation Technique | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Volatility | 38.00% | |||||
Level 3 | Options | Market Approach Valuation Technique | Minimum | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Volatility | 30.00% | |||||
Fair Value Assumptions, Credit Spread | 5.00% | |||||
Level 3 | Options | Market Approach Valuation Technique | Maximum | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Volatility | 40.00% | |||||
Fair Value Assumptions, Credit Spread | 7.50% | |||||
Level 3 | Contingent liability payable | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Financial Liabilities Fair Value Disclosure | $ 6,158 | [1] | $ 4,083 | [2] | ||
Level 3 | Contingent liability payable | Income Approach and Market Approach Valuation Techniques | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
DCF discount rate | 9.00% | |||||
Level 3 | Contingent liability payable | Income Approach and Market Approach Valuation Techniques | Minimum | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
DCF discount rate | 6.50% | |||||
Level 3 | Contingent liability payable | Income Approach and Market Approach Valuation Techniques | Maximum | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
DCF discount rate | 24.50% | |||||
Level 3 | Contingent liability payable | Market Approach Valuation Technique | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair Value Assumptions, Weighted Average Volatility Rate | 16.40% | |||||
Level 3 | Common and Preferred Stock | Market Approach Valuation Technique | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Volatility | 34.00% | 45.00% | ||||
Level 3 | Common and Preferred Stock | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member] | Minimum | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Market multiple | 1 | 1 | ||||
Level 3 | Common and Preferred Stock | Market Approach, Income Approach and Replacement Cost Valuation Techniques [Member] | Maximum | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Market multiple | 4.75 | 6 | ||||
Level 3 | Convertible Bonds | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Assets, Fair Value Disclosure, Recurring | $ 819 | $ 900 | ||||
Level 3 | Convertible Bonds | Cost Approach Valuation Technique [Member] | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair Value Inputs, Recovery Rate | 50.00% | 50.00% | ||||
Level 3 | Warrants and Rights | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Assets, Fair Value Disclosure, Recurring | $ 2,572 | $ 1,322 | ||||
Level 3 | Warrants and Rights | Market Approach Valuation Technique | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair Value Assumptions, Weighted Average Volatility Rate | 43.00% | 34.00% | ||||
Level 3 | Warrants and Rights | Market Approach Valuation Technique | Minimum | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Volatility | 18.00% | 20.00% | ||||
Level 3 | Warrants and Rights | Market Approach Valuation Technique | Maximum | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Volatility | 61.00% | 60.00% | ||||
Level 3 | Options | Market Approach Valuation Technique | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Volatility | 38.00% | |||||
Level 3 | Options | Market Approach Valuation Technique | Minimum | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Volatility | 30.00% | |||||
Fair Value Assumptions, Credit Spread | 5.00% | |||||
Level 3 | Options | Market Approach Valuation Technique | Maximum | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Volatility | 40.00% | |||||
Fair Value Assumptions, Credit Spread | 7.50% | |||||
Options | Derivative Assets | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Assets, Fair Value Disclosure, Recurring | $ 36,443 | $ 49,241 | ||||
Options | Level 3 | Derivative Assets | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Assets, Fair Value Disclosure, Recurring | $ 18,194 | $ 36,807 | ||||
[1] | In accordance with the terms of the purchase agreements for acquisitions that closed during 2012 and the third and fourth quarter of 2015, the Company is required to pay to the sellers a portion of future net income of the acquired businesses, if certain revenue targets are achieved through the periods ended August 2016, December 2020, and December 2018, respectively. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts as of December 31, 2015 can range from $0.1 million to $10.0 million. | |||||
[2] | In accordance with the terms of a purchase agreement for an acquisitions that closed during 2012, the Company is required to pay to the sellers a portion of future net income of the acquired businesses, if certain revenue targets are achieved through the period ended August 2016. The Company estimated the contingent consideration liability using the income approach (discounted cash flow method) which requires the Company to make estimates and assumptions regarding the future cash flows and profits. Changes in these estimates and assumptions could have a significant impact on the amounts recognized. The undiscounted amounts can range from $0.9 million to $7.1 million. | |||||
[3] | The quantitative disclosures exclude financial instruments for which the determination of fair value is based on prices from prior transactions and investments for which NAV per share is used as a practical expedient to determine fair value. |
Fair Value Measurements for O73
Fair Value Measurements for Operating Entities and Consolidated Funds Carrying Value Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 10, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash and cash equivalents | $ 158,485 | $ 129,509 | $ 54,720 | $ 83,538 | ||
Cash collateral pledged | 10,085 | 8,306 | ||||
Securities borrowed | 0 | 676,100 | ||||
Cash and cash equivalents, Consolidated Funds | 13,934 | 501 | ||||
Securities loaned | 0 | 682,493 | ||||
Convertible debt | [1] | 124,777 | 118,475 | |||
Notes payable and other debt | 70,984 | 67,144 | ||||
Convertible Debt | ||||||
Convertible debt, unamortized discount | 24,700 | 31,000 | $ 35,700 | |||
Level 1 | ||||||
Cash and cash equivalents, Fair Value | 158,485 | 129,509 | ||||
Securities borrowed, Fair Value | 0 | 660,445 | ||||
Cash and cash equivalents, Consolidated Funds, Fair Value | 13,934 | 501 | ||||
Securities Loaned, Fair Value | 0 | 661,533 | ||||
Level 2 | ||||||
Cash collateral pledged, Fair Value | 10,085 | 8,306 | ||||
Convertible debt, Fair Value | [2] | 144,946 | 160,713 | |||
Notes payable and other debt, Fair Value | $ 71,945 | $ 69,548 | ||||
[1] | The carrying amount of the convertible debt includes an unamortized discount of $24.7 million and $31.0 million as of December 31, 2015 and 2014. | |||||
[2] | The convertible debt include the conversion option and is based on the last broker quote available. |
Receivables from and Payable 74
Receivables from and Payable to Brokers (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Brokers and Dealers [Abstract] | ||
Receivable from brokers | $ 117,757 | $ 84,679 |
Payable to brokers | $ 131,789 | $ 335,822 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Fixed assets | $ 57,184 | $ 52,356 | |
Less: Accumulated depreciation and amortization | (29,953) | (25,968) | |
Fixed assets, net | 27,231 | 26,388 | |
Depreciation and amortization | 6,800 | 6,600 | $ 6,500 |
Telephone and computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets | 6,521 | 5,466 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets | 1,680 | 1,305 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets | 6,131 | 5,692 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets | 35,215 | 32,256 | |
Assets acquired under capital leases-equipment | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets | 7,637 | 7,637 | |
Depreciation | $ 1,500 | $ 1,500 | $ 1,300 |
Goodwill and Intangibles Schedu
Goodwill and Intangibles Schedule of Goodwill by Segment (Details) (Annual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Roll Forward] | |||
Goodwill, Gross | $ 54,591 | $ 54,591 | |
Goodwill, Impaired, Accumulated Impairment Loss | (19,685) | (17,351) | |
Goodwill | 34,906 | 37,240 | |
Goodwill, Acquired During Period | 23,455 | 0 | |
Goodwill impairment | 0 | (2,334) | $ 0 |
Goodwill, Gross | 78,046 | 54,591 | 54,591 |
Goodwill, Impaired, Accumulated Impairment Loss | (19,685) | (19,685) | (17,351) |
Goodwill | 58,361 | 34,906 | 37,240 |
Alternative Investment | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross | 30,228 | 30,228 | |
Goodwill, Impaired, Accumulated Impairment Loss | (10,200) | (10,200) | |
Goodwill | 20,028 | 20,028 | |
Goodwill, Acquired During Period | 0 | 0 | |
Goodwill impairment | 0 | 0 | |
Goodwill, Gross | 30,228 | 30,228 | 30,228 |
Goodwill, Impaired, Accumulated Impairment Loss | (10,200) | (10,200) | (10,200) |
Goodwill | 20,028 | 20,028 | 20,028 |
Broker-Dealer | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross | 24,363 | 24,363 | |
Goodwill, Impaired, Accumulated Impairment Loss | (9,485) | (7,151) | |
Goodwill | 14,878 | 17,212 | |
Goodwill, Acquired During Period | 23,455 | 0 | |
Goodwill impairment | 0 | (2,334) | |
Goodwill, Gross | 47,818 | 24,363 | 24,363 |
Goodwill, Impaired, Accumulated Impairment Loss | (9,485) | (9,485) | (7,151) |
Goodwill | $ 38,333 | 14,878 | $ 17,212 |
Cowen Prime and Cowen Prime Trading | |||
Goodwill [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years 3 months 22 days | ||
Cowen Equity Finance | Broker-Dealer | |||
Goodwill [Roll Forward] | |||
Goodwill impairment | $ (2,300) |
Goodwill and Intangibles Sche77
Goodwill and Intangibles Schedule of Intangible Assets (Details) (Annual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 53,964 | $ 34,064 | |
Intangible assets, accumulated amortization (in dollars) | (28,301) | (25,581) | |
Intangible Assets, Net | 25,663 | 8,483 | |
Amortization of Intangible Assets | $ 2,700 | 3,600 | $ 3,700 |
Investment Contracts | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Finite-Lived Intangible Assets, Gross | $ 3,900 | 3,900 | |
Intangible assets, accumulated amortization (in dollars) | (3,900) | (3,900) | |
Intangible Assets, Net | 0 | 0 | |
Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 9,712 | 9,612 | |
Intangible assets, accumulated amortization (in dollars) | (8,897) | (8,305) | |
Intangible Assets, Net | 815 | 1,307 | |
Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 29,484 | 13,284 | |
Intangible assets, accumulated amortization (in dollars) | (10,338) | (8,936) | |
Intangible Assets, Net | $ 19,146 | 4,348 | |
Customer Contracts | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 1 year 2 months 12 days | ||
Finite-Lived Intangible Assets, Gross | $ 800 | 800 | |
Intangible assets, accumulated amortization (in dollars) | (800) | (800) | |
Intangible Assets, Net | 0 | 0 | |
Noncompete agreements and covenants with limiting conditions acquired | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 1,831 | 31 | |
Intangible assets, accumulated amortization (in dollars) | (172) | (21) | |
Intangible Assets, Net | 1,659 | 10 | |
Intellectual property | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 8,237 | 6,437 | |
Intangible assets, accumulated amortization (in dollars) | (4,194) | (3,619) | |
Intangible Assets, Net | 4,043 | 2,818 | |
Cowen Equity Finance | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Finite-lived | $ 900 | ||
Cowen Prime and Cowen Prime Trading | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Including Goodwill) | $ 19,900 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years 3 months 22 days | ||
Minimum | Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||
Minimum | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Minimum | Noncompete agreements and covenants with limiting conditions acquired | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Minimum | Intellectual property | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Minimum | Cowen Prime and Cowen Prime Trading | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||
Maximum | Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 7 years 6 months | ||
Maximum | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 14 years | ||
Maximum | Noncompete agreements and covenants with limiting conditions acquired | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Maximum | Intellectual property | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Maximum | Cowen Prime and Cowen Prime Trading | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 14 years |
Goodwill and Intangibles Amorti
Goodwill and Intangibles Amortization of Intangible Assets (Details) (Annual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2,016 | $ 4,422 | ||
2,017 | 3,955 | ||
2,018 | 3,045 | ||
2,019 | 2,384 | ||
2,020 | 2,236 | ||
Thereafter | 9,621 | ||
Finite-Lived Intangible Assets, Net | 25,663 | ||
Amortization of Intangible Assets | $ 2,700 | $ 3,600 | $ 3,700 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Deposits | $ 674 | $ 10,689 | |
Prepaid expenses | 7,783 | 6,340 | |
Tax receivables | 2,855 | 126 | |
Deferred rent asset | 341 | 512 | |
Deferred charges - debt | 4,795 | 5,958 | |
Interest and Dividends Receivable | 2,006 | 3,484 | |
Loan receivable | [1] | 8,000 | 0 |
Short Term Bridge Loan | [2] | 38,000 | 0 |
Miscellaneous Receivables | 2,788 | 4,400 | |
Other | [3] | 9,084 | 2,721 |
Other Assets | $ 76,326 | $ 34,230 | |
Bridge Loan [Member] | |||
Effective interest rate | 8.00% | ||
Hollenfels | |||
Loan receivable | [1] | $ 4,500 | |
Loans [Member] | |||
Effective interest rate | 12.00% | ||
Loans [Member] | Hollenfels | Minimum | |||
Effective interest rate | 8.00% | ||
Loans [Member] | Hollenfels | Maximum | |||
Effective interest rate | 8.50% | ||
[1] | As of December 31, 2015, the maturity was August 2017 with interest rate of 12%. | ||
[2] | As of December 31, 2015, the maturity was February 2016, was secured by the real estate assets and had an effective annualized interest rate of 8%. | ||
[3] | Included in this amount is $4.5 million, due January 2024, with interest rate of 8% for the first five years and 8.5% for the remainder of the term, related to the Company's new commercial reinsurance activities (see Note 5). |
Accounts Payable Accrued Expe80
Accounts Payable Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Payable, Accrued Expenses and Other Liabilities [Abstract] | ||
Deferred rent obligations | $ 11,979 | $ 13,142 |
Deferred income | 428 | 1,033 |
Equity in RCG Longview Partners II, LLC | 5,969 | 5,878 |
Professional fees payable | 4,811 | 3,889 |
Placement and other fees payable | 1,555 | 3,615 |
Litigation reserve | 1,300 | 0 |
Contingent consideration payable | 6,158 | 4,083 |
Interest and dividends payable | 3,574 | 3,366 |
Accrued expenses and accounts payable | 15,223 | 7,846 |
Accrued tax liabilities | 1,236 | 3,754 |
Accounts payable, accrued expenses and other liabilities | $ 52,233 | $ 46,606 |
Redeemable Non-Controlling In81
Redeemable Non-Controlling Interests in Consolidated Subsidiaries and Funds (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Noncontrolling Interest [Line Items] | |||||||||||
Redeemable non-controlling interests in consolidated subsidiaries and funds | $ 186,911 | $ 86,076 | $ 186,911 | $ 86,076 | |||||||
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | 4,266 | $ 4,344 | $ 3,916 | $ 2,720 | 2,155 | $ 4,006 | $ 5,216 | $ 4,187 | 15,246 | 15,564 | $ 13,193 |
Operating Entities | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Redeemable non-controlling interests in consolidated subsidiaries and funds | 10,906 | 9,619 | 10,906 | 9,619 | |||||||
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | 9,503 | 10,094 | 10,461 | ||||||||
Consolidated Funds | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Redeemable non-controlling interests in consolidated subsidiaries and funds | $ 176,005 | $ 76,457 | 176,005 | 76,457 | |||||||
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | $ 5,743 | $ 5,470 | $ 2,732 |
Other Revenues and Expenses (De
Other Revenues and Expenses (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2008 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other revenues and expenses | ||||
Contingent liability adjustment | $ 200 | $ 2,055 | $ 0 | |
Sale Leaseback Transaction, Current Period Gain Recognized | $ 500 | |||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 67 months | |||
October LLC [Member] | ||||
Other revenues and expenses | ||||
Sale Leaseback Transaction, Current Period Gain Recognized | $ 500 | |||
Sale Leaseback Transaction, Deferred Gain, Gross | $ 2,800 | |||
Orchard Square Partners | ||||
Other revenues and expenses | ||||
Gain (Loss) on Disposition of Business | $ 4,500 |
Share-Based Compensation and 83
Share-Based Compensation and Employee Ownership Plans Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Equity Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuance under compensation plan, in shares | 900,000 | |||
Stock-compensation expense recognized in connection with compensation plan | $ 21.7 | $ 18.3 | $ 17.9 | |
Tax benefit of stock-compensation expense recognized in connection with compensation plan | $ 5 | $ 6 | $ 9.7 | |
Equity Plans | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, initial term | 7 years | |||
Equity Plans | Employee Stock Option | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation award, vesting period | 2 years | |||
Equity Plans | Employee Stock Option | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation award, vesting period | 5 years | |||
Equity Plans | Restricted Shares and Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 60.4 | |||
Vested, shares | 4,188,289 | 4,071,120 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 21,480,364 | [1] | 17,654,582 | 13,551,544 |
Equity Plans | Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation award, vesting period | 2 years | |||
Equity Plans | Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation award, vesting period | 5 years | |||
Equity Plans | Restricted Stock Units (RSUs) | Non-employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 157,621 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 497,570 | |||
Equity Plans | Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 0.1 | $ 0.2 | ||
SAR's, initial term | 5 years | |||
Vested, shares | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 400,000 | 400,000 | 400,000 | |
Deferred Cash Award | Cowen Group, Inc. 2010 Equity and Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation award, vesting period | 4 years | |||
Deferred cash awards, unrecognized compensation expense | $ 28.3 | |||
Deferred Cash Award | Cowen Group, Inc. 2010 Equity and Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred cash award, interest rate | 0.70% | |||
Deferred Cash Award | Cowen Group, Inc. 2010 Equity and Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred cash award, interest rate | 0.75% | |||
[1] | Performance linked restricted stock units of 1,925,750 were awarded to employees of the Company in December 2013 and January 2014. Of the awards granted, 326,250 have been forfeited through December 31, 2015. The remaining awards, included in the outstanding balance as of December 31, 2015, will vest on June 10, 2019 and will be earned only to the extent that the Company attains specified performance goals relating to its volume-weighted average share price and the aggregate net income for the years from 2014 to 2018. The actual number of RSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 100% of the targeted award. Each RSU is equal to the one share of the Company’s Class A common stock. Compensation expense is recognized to the extent that it is probable that the Company will attain the performance goals. |
Share-Based Compensation and 84
Share-Based Compensation and Employee Ownership Plans Deferred Cash (Details) - Cowen Group, Inc. 2010 Equity and Incentive Plan - Deferred Cash Award $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Deferred cash awards granted | $ 12.5 |
Deferred cash awards, vesting period | 4 years |
Deferred cash awards, unrecognized compensation expense | $ 28.3 |
Minimum | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Deferred cash award, interest rate | 0.70% |
Maximum | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Deferred cash award, interest rate | 0.75% |
Share-Based Compensation and 85
Share-Based Compensation and Employee Ownership Plans Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||
Weighted Average Exercise Price/Share | ||||
Weighted average remaining term, options outstanding | 2 years 4 months 24 days | |||
Weighted average remaining term, options exercisable | 1 year 7 months 5 days | |||
Aggregate Intrinsic Value | ||||
Closing stock price, in dollars per share | $ 3.83 | $ 4.80 | ||
Equity Plans | ||||
Shares Subject to Option | ||||
Balance outstanding, beginning of period, shares | 216,672 | 300,006 | ||
Options granted, shares | 0 | 0 | ||
Options exercised, shares | (100,002) | (33,334) | ||
Options expired, shares | (100,003) | (50,000) | ||
Balance outstanding, end of period, shares | 16,667 | 216,672 | 300,006 | |
Options exercisable, shares | 16,667 | 216,672 | ||
Weighted Average Exercise Price/Share | ||||
Balance outstanding, beginning of period, in dollars per share | $ 5.65 | $ 7.19 | ||
Options granted, in dollars per share | 0 | 0 | ||
Options exercised, in dollars per share | 3.96 | 3.50 | ||
Options expired, in dollars per share | 7.49 | 16.27 | ||
Balance outstanding, end of period, in dollars per share | 4.89 | 5.65 | $ 7.19 | |
Options exercisable, in dollars per share | $ 4.89 | $ 5.65 | ||
Weighted average remaining term, options outstanding | 1 year 1 month 5 days | 1 year 7 months 6 days | ||
Weighted average remaining term, options exercisable | 1 year 1 month 1 day | |||
Aggregate Intrinsic Value | ||||
Balance outstanding, beginning of period | [1] | $ 87 | $ 41 | |
Balance outstanding, end of period | [1] | 0 | $ 87 | $ 41 |
Options exercisable | [1] | $ 0 | ||
[1] | Based on the Company's closing stock price of $3.83 on December 31, 2015 and $4.80 on December 31, 2014. |
Share-Based Compensation and 86
Share-Based Compensation and Employee Ownership Plans SARs (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Aggregate Intrinsic Value | ||||||
Closing stock price, in dollars per share | $ 3.83 | $ 4.80 | ||||
Stock Appreciation Rights | ||||||
Aggregate Intrinsic Value | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercisable, Weighted remaining contractual term | 0 | |||||
Equity Plans | ||||||
Aggregate Intrinsic Value | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | [1] | $ 0 | ||||
Equity Plans | Stock Appreciation Rights | ||||||
Shares Subject to Option | ||||||
Balance outstanding, beginning of period, shares | 400,000 | 400,000 | ||||
Granted, shares | 0 | 0 | ||||
Acquired, shares | 0 | 0 | ||||
Expired, shares | 0 | 0 | ||||
Balance outstanding, end of period, shares | 400,000 | 400,000 | 400,000 | |||
Balance exercisable, shares | 0 | |||||
Weighted Average Exercise Price/Share | ||||||
Balance outstanding, beginning of period, in dollars per share | $ 2.90 | $ 2.90 | ||||
Granted, in dollars per share | 0 | 0 | ||||
Acquired, in dollars per share | 0 | 0 | ||||
Expired, in dollars per share | 0 | 0 | ||||
Balance outstanding, end of period, in dollars per share | $ 2.90 | $ 2.90 | $ 2.90 | |||
Weighted Average Remaining Term Outstanding | 2 years 2 months 16 days | 3 years 2 months 16 days | 4 years 2 months 16 days | |||
Aggregate Intrinsic Value | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 558 | [2] | $ 913 | [2] | $ 608 | |
Unrecognized compensation expense | $ 100 | $ 200 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercisable, Weighted Average Grant Date Fair Value | $ 0 | |||||
[1] | Based on the Company's closing stock price of $3.83 on December 31, 2015 and $4.80 on December 31, 2014. | |||||
[2] | Based on the Company's closing stock price of $3.83 on December 31, 2015 and $4.80 on December 31, 2014. |
Share-Based Compensation and 87
Share-Based Compensation and Employee Ownership Plans Restricted Shares and Restricted Stock Units (Details) - Equity Plans - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Weighted-Average Grant Date Fair Value | ||||
Allocated Share-based Compensation Expense | $ 21.7 | $ 18.3 | $ 17.9 | |
Restricted Shares and Restricted Stock Units (RSUs) | ||||
Nonvested Restricted Shares and Restricted Stock Units | ||||
Balance outstanding, beginning of period, shares | 17,654,582 | 13,551,544 | ||
Granted, shares | 9,043,604 | 9,674,496 | ||
Vested, shares | (4,188,289) | (4,071,120) | ||
Cancelled, shares | 0 | 0 | ||
Forfeited, shares | (1,029,533) | (1,500,338) | ||
Balance outstanding, end of period, shares | 21,480,364 | [1] | 17,654,582 | 13,551,544 |
Weighted-Average Grant Date Fair Value | ||||
Balance outstanding, beginning of period, in dollars per share | $ 3.70 | $ 3.37 | ||
Granted, in dollars per share | 4.49 | 3.89 | ||
Vested, in dollars per share | 3.08 | 3.27 | ||
Cancelled, in dollars per share | 0 | 0 | ||
Forfeited, in dollars per share | 3.42 | 3.07 | ||
Balance outstanding, end of period, in dollars per share | $ 4.17 | [1] | $ 3.70 | $ 3.37 |
Unrecognized compensation expense | $ 60.4 | |||
Weighted-average recognition period for unrecognized compensation expense | 1 year 7 months 20 days | |||
Performance based restricted stock | ||||
Nonvested Restricted Shares and Restricted Stock Units | ||||
Granted, shares | 1,925,750 | |||
Forfeited, shares | (326,250) | |||
[1] | Performance linked restricted stock units of 1,925,750 were awarded to employees of the Company in December 2013 and January 2014. Of the awards granted, 326,250 have been forfeited through December 31, 2015. The remaining awards, included in the outstanding balance as of December 31, 2015, will vest on June 10, 2019 and will be earned only to the extent that the Company attains specified performance goals relating to its volume-weighted average share price and the aggregate net income for the years from 2014 to 2018. The actual number of RSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 100% of the targeted award. Each RSU is equal to the one share of the Company’s Class A common stock. Compensation expense is recognized to the extent that it is probable that the Company will attain the performance goals. |
Defined Benefit Plan - Annual88
Defined Benefit Plan - Annual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value of Plan Assets | $ 0 | $ 4,389 | $ 4,389 | $ 0 | $ 4,389 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit Obligation | 0 | 3,592 | |||
Service cost | 0 | 0 | |||
Interest cost | 84 | 207 | |||
Actuarial loss (gain) | 2 | ||||
Benefits paid | (3,791) | ||||
Curtailments | 0 | ||||
Lump sum settlement | 117 | ||||
Effect of change in currency conversion | 0 | ||||
Benefit Obligation | 0 | 3,592 | |||
Defined Benefit Plan, Change in Plan Assets [Roll Forward] | |||||
Fair Value of Plan Assets | 0 | 4,389 | |||
Actual return on plan assets | 306 | ||||
Employer contributions | 0 | ||||
Benefits paid | (3,791) | ||||
Transfer to qualified replacement plan | (874) | ||||
Expenses paid from the plan | (30) | ||||
Fair Value of Plan Assets | 0 | 4,389 | |||
Funded balance at end of year | 0 | ||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | |||||
Pension and Other Postretirement Defined Benefit Plans, Liabilities | 0 | ||||
Accumulated Benefit Obligation | 0 | ||||
Components of net periodic benefit cost included in employee compensation and benefits | |||||
Service cost | 0 | 0 | |||
Interest cost | 84 | 207 | |||
Expected return on plan assets | (299) | (251) | |||
Amortization of (loss) / gain | (205) | 0 | |||
Amortization of prior service cost | 0 | 21 | |||
Effect of settlement | 0 | (95) | |||
Net periodic benefit cost | (420) | (118) | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||||
Net Gain (Loss) | 344 | 137 | |||
Effect of Curtailment | 0 | (360) | |||
Effect of Settlement | 0 | 0 | |||
Amortization of Loss (Gain) | 0 | 0 | |||
Amortization of prior service cost included in net periodic pension cost | $ 0 | 0 | (23) | ||
Total recognized in other comprehensive income (loss) | 344 | (246) | |||
Defined Benefit Plan, Amounts Recognized in Net Periodic Benefit Cost and Other Comprehensive Loss (Income) | (76) | (364) | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||||
Net Gains (Losses) | 0 | 344 | |||
Prior Service Cost | 0 | 0 | |||
Effect of change in currency conversion | 0 | 0 | |||
Total recognized in accumulated other comprehensive income (loss) | $ 0 | $ 344 | |||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||||
Prior Service Cost | 0 | 0 | |||
Net Gains (Losses) | $ 0 | $ 0 | |||
Cash Balance Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.00% | 6.00% |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Contribution Plans [Abstract] | |
Defined Benefit Plan, Contributions by Employer | $ 0.3 |
Income Taxes Income Tax Expense
Income Taxes Income Tax Expense - Annual (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 8,000 | $ 56,700 | $ 11,900 | ||||||||
Current tax expense/(benefit) | |||||||||||
Federal | (635) | 2,247 | 0 | ||||||||
State and local | 313 | 573 | 241 | ||||||||
Foreign | 348 | 341 | 188 | ||||||||
Total | 26 | 3,161 | 429 | ||||||||
Deferred tax expense/(benefit) | |||||||||||
Federal | (37,979) | (99,284) | 0 | ||||||||
State and local | (7,420) | (28,825) | 0 | ||||||||
Foreign | (2,123) | 4 | 28 | ||||||||
Total | (47,522) | (128,105) | 28 | ||||||||
Total Tax expense/(benefit) | $ (52,708) | $ (5,081) | $ 3,346 | $ 6,947 | $ (125,210) | $ 141 | $ 46 | $ 79 | (47,496) | (124,944) | 457 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 3,500 | $ 1,100 | $ 6,400 |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation - Annual (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income (Loss) before income taxes, Domestic | $ 8 | $ 56.7 | $ 11.9 |
Income (Loss) before Income Taxes, Foreign | $ 3.5 | $ 1.1 | $ 6.4 |
Pre-tax loss at U.S. statutory rate | 35.00% | 35.00% | 35.00% |
Stock Compensation | 0.00% | 0.00% | 12.60% |
Deferred asset recognition | (323.80%) | 0.00% | 0.00% |
Change in valuation allowance | 0.00% | (252.70%) | (27.20%) |
Impact of change in NY tax law | (27.90%) | 0.00% | 0.00% |
State and Foreign tax | (39.60%) | 5.80% | 0.00% |
Minority interest reversal | (46.50%) | (9.40%) | (25.20%) |
Other, net | (11.00%) | 5.30% | 7.30% |
Total | (413.80%) | (216.00%) | 2.50% |
Income Taxes Receivable | $ 1.8 | ||
Accrued tax liabilities | $ 1.1 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities - Annual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred tax assets, net of valuation allowance | |||
Net operating loss | $ 110,904 | $ 94,628 | |
Deferred compensation | 65,162 | 56,069 | |
Goodwill | 7,009 | 8,434 | |
Fixed Assets | 2,003 | 0 | |
Tax credits | 1,630 | 2,668 | |
Acquired lease liability | 4,843 | 5,164 | |
Deferred Tax Assets, Other | 2,317 | 2,394 | |
Total deferred tax assets | 193,868 | 169,357 | |
Valuation allowance | 0 | (2,263) | |
Deferred tax assets, net of valuation allowance | 193,868 | 167,094 | |
Deferred tax liabilities | |||
Basis difference on investments | (15,352) | (15,352) | |
Unrealized gains on investments | (34,613) | (21,739) | |
Intangible assets | (296) | (537) | |
Deferred Tax Liabilities, Other | (47) | (66) | |
Total deferred tax liabilities | (50,308) | (37,694) | |
Deferred tax assets, net | 143,560 | 129,400 | |
Deferred Income Tax Expense (Benefit) | 47,522 | $ 128,105 | $ (28) |
Luxembourg Reinsurance Companies [Member] | |||
Deferred tax assets, net of valuation allowance | |||
Deferred Tax Assets, Other | 75,300 | ||
Valuation allowance | (75,300) | ||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Gross, Current | 351,000 | ||
Hollenfels | |||
Deferred tax liabilities | |||
Deferred Other Tax Expense (Benefit) | $ 37,200 |
Income Taxes Summary of Operati
Income Taxes Summary of Operating Loss Carryforwards - Annual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Income Taxes Receivable | $ 1,800 | ||
Accrued tax liabilities | 1,100 | ||
Deferred Tax Assets, Gross | 193,868 | $ 169,357 | |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 8,000 | 56,700 | $ 11,900 |
Deferred Tax Liabilities, Gross | 50,308 | 37,694 | |
Deferred Tax Assets, Other | 2,317 | 2,394 | |
Valuation allowance | 0 | 2,263 | |
Undistributed Earnings of Foreign Subsidiaries | 1,000 | 1,100 | |
Tax Liabilities, Undistributed Foreign Earnings | 100 | 200 | |
Income (Loss) before Income Taxes, Foreign | 3,500 | 1,100 | 6,400 |
Deferred Income Tax Expense (Benefit) | 47,522 | $ 128,105 | $ (28) |
Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 264,000 | ||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2033 | ||
The New York State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 84,000 | ||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2033 | ||
Hong Kong Inland Revenue Department [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 13,000 | ||
New York City [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 123,000 | ||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2033 | ||
Luxembourg Reinsurance Companies [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Other | $ 75,300 | ||
Deferred Tax Liabilities, Gross, Current | 351,000 | ||
Valuation allowance | 75,300 | ||
LaBranche and Co Inc. [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 64,000 | ||
Deferred tax asset, deduction limitation | $ 6,700 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits - Annual (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 1 | $ 1.1 |
Tax Liabilities, Undistributed Foreign Earnings | $ 0.1 | $ 0.2 |
Income Taxes Deferred Tax Ass95
Income Taxes Deferred Tax Assets - Annual (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $ 0 | $ 2,263 |
Commitments and Contingencies96
Commitments and Contingencies (Details) | 12 Months Ended | ||||
Dec. 31, 2015USD ($)cowenfund | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Apr. 30, 2013USD ($) | ||
Lease Obligations | |||||
Net rent expense | $ 18,500,000 | $ 16,800,000 | $ 15,600,000 | ||
Future minimum annual lease and service payments | |||||
Sublease income related to operating leases | 2,300,000 | 1,800,000 | $ 1,500,000 | ||
Lagunita Biosciences LLC [Member] | |||||
Future minimum annual lease and service payments | |||||
Other commitments, unfunded amount | 4,000,000 | ||||
Affiliated Entity | |||||
Future minimum annual lease and service payments | |||||
Other commitments, unfunded amount | 5,600,000 | ||||
Affiliated Entity | Healthcare Royalty Partners | |||||
Future minimum annual lease and service payments | |||||
Contractual obligation | 45,400,000 | ||||
Funding toward commitments | $ 36,000,000 | ||||
Affiliated Entity | Healthcare Royalty Partners | Minimum | |||||
Future minimum annual lease and service payments | |||||
Expected call period | 2 years | ||||
Affiliated Entity | Healthcare Royalty Partners | Maximum | |||||
Future minimum annual lease and service payments | |||||
Expected call period | 5 years | ||||
Affiliated Entity | Starboard Leaders Fund LP | |||||
Future minimum annual lease and service payments | |||||
Funding toward commitments | $ 900,000 | ||||
Affiliated Entity | Formation 8 Partners Fund I LP | |||||
Future minimum annual lease and service payments | |||||
Other commitments, unfunded amount | 900,000 | ||||
Affiliated Entity | Formation 8 Partners Hardware Fund I, L.P. | |||||
Future minimum annual lease and service payments | |||||
Other commitments, unfunded amount | 1,400,000 | ||||
Clawback Obligation | |||||
Future minimum annual lease and service payments | |||||
Contractual obligation | $ 6,200,000 | 6,200,000 | |||
Commitment to Invest | Lagunita Biosciences LLC [Member] | |||||
Future minimum annual lease and service payments | |||||
Term of capital commitment | 3 years | ||||
Commitment to Invest | Affiliated Entity | Starboard Leaders Fund LP | |||||
Future minimum annual lease and service payments | |||||
Contractual obligation | $ 1,000,000 | ||||
Commitment to Invest | Affiliated Entity | Formation 8 Partners Fund I LP | |||||
Future minimum annual lease and service payments | |||||
Term of capital commitment | 1 year | ||||
Commitment to Invest | Affiliated Entity | Formation 8 Partners Hardware Fund I, L.P. | |||||
Future minimum annual lease and service payments | |||||
Term of capital commitment | 1 year | ||||
Unfunded Commitments | |||||
Future minimum annual lease and service payments | |||||
Number of real estate investments, in investments | cowenfund | 3 | ||||
RCG Longview Partners II, LLC | Clawback Obligation | |||||
Future minimum annual lease and service payments | |||||
Contractual obligation | $ 6,200,000 | $ 6,200,000 | |||
Equipment Leases | |||||
Future minimum annual lease and service payments | |||||
Contractual Obligation, Due in remainder of current year | [1] | 2,502,000 | |||
Contractual Obligation, Due in Second Year | [1] | 2,301,000 | |||
Contractual Obligation, Due in Third Year | [1] | 2,221,000 | |||
Contractual Obligation, Due in Fourth Year | [1] | 813,000 | |||
Contractual Obligation, Due in Fifth Year | [1] | 0 | |||
Thereafter | [1] | 0 | |||
Future minimum annual lease and service payments | [1] | 7,837,000 | |||
Service Payments | |||||
Future minimum annual lease and service payments | |||||
Contractual Obligation, Due in remainder of current year | 15,850,000 | ||||
Contractual Obligation, Due in Second Year | 7,255,000 | ||||
Contractual Obligation, Due in Third Year | 4,126,000 | ||||
Contractual Obligation, Due in Fourth Year | 1,401,000 | ||||
Contractual Obligation, Due in Fifth Year | 0 | ||||
Thereafter | 0 | ||||
Future minimum annual lease and service payments | 28,632,000 | ||||
Facility Leases | |||||
Future minimum annual lease and service payments | |||||
Contractual Obligation, Due in remainder of current year | [2] | 19,386,000 | |||
Contractual Obligation, Due in Second Year | [2] | 15,615,000 | |||
Contractual Obligation, Due in Third Year | [2] | 15,620,000 | |||
Contractual Obligation, Due in Fourth Year | [2] | 14,821,000 | |||
Contractual Obligation, Due in Fifth Year | [2] | 14,814,000 | |||
Thereafter | [2] | 32,250,000 | |||
Future minimum annual lease and service payments | [2] | $ 112,506,000 | |||
[1] | Equipment Leases include the Company's commitments relating to operating and capital leases. See Note 19 for further information on the capital lease minimum payments which are included in the table. | ||||
[2] | The Company has entered into various agreements to sublease certain of its premises. The Company recorded sublease income related to these leases of $2.3 million, $1.8 million and $1.5 million for the years ended December 31, 2015, 2014, and 2013, respectively. |
Convertible Debt and Notes Pa97
Convertible Debt and Notes Payable (Details) | Oct. 10, 2014USD ($) | Dec. 31, 2015USD ($)letters_of_credit | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)letters_of_credit | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jan. 31, 2014USD ($) | Mar. 10, 2014USD ($)$ / shares | |
Debt and Capital Lease Obligations [Line Items] | |||||||||
Interest Expense, Lessee, Assets under Capital Lease | $ 100,000 | $ 100,000 | $ 100,000 | $ 200,000 | |||||
Components of short-term borrowings and other debt | |||||||||
Convertible debt | [1] | 124,777,000 | 118,475,000 | 124,777,000 | 118,475,000 | ||||
Revolver | 5,000,000 | 0 | 5,000,000 | 0 | |||||
Capital lease obligations | 2,734,000 | 3,894,000 | 2,734,000 | 3,894,000 | |||||
Debt, Long-term and Short-term, Combined Amount | 195,761,000 | 185,619,000 | 195,761,000 | 185,619,000 | |||||
Debt Instrument, Face Amount | 63,250,000 | 63,250,000 | 63,250,000 | 63,250,000 | |||||
Amortization of debt discount | 6,302,000 | 4,685,000 | $ 0 | ||||||
Cash convertible note hedge transaction | 0 | 149,500,000 | 0 | ||||||
Capital Lease Obligations Incurred | $ 7,600,000 | ||||||||
Capital Leases, Income Statement, Interest Expense | 200,000 | 200,000 | $ 100,000 | ||||||
Future minimum lease payments for capital lease obligations | |||||||||
2,016 | 1,025,000 | 1,025,000 | |||||||
2,017 | 938,000 | 938,000 | |||||||
2,018 | 938,000 | 938,000 | |||||||
2,019 | 78,000 | 78,000 | |||||||
2,020 | 0 | 0 | |||||||
Thereafter | 0 | 0 | |||||||
Subtotal | 2,979,000 | 2,979,000 | |||||||
Less: Amount representing interest | [2] | (245,000) | (245,000) | ||||||
Capital lease obligations | $ 2,734,000 | 3,894,000 | $ 2,734,000 | 3,894,000 | |||||
Number of Letters of Credit | letters_of_credit | 8 | 8 | |||||||
Revolving Credit Facility | |||||||||
Components of short-term borrowings and other debt | |||||||||
Revolver | $ 5,000,000 | $ 5,000,000 | |||||||
Letter of credit, borrowing capacity | $ 25,000,000 | $ 25,000,000 | |||||||
Line of Credit Facility, Commitment Fee Percentage | 3.00% | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.38% | ||||||||
Interest Expense, Debt | $ 200,000 | ||||||||
Minimum | |||||||||
Components of short-term borrowings and other debt | |||||||||
Capital Lease Obligation, Initial Term | 48 months | ||||||||
Capital leases, interest rate | 0.60% | 0.60% | |||||||
Maximum | |||||||||
Components of short-term borrowings and other debt | |||||||||
Capital Lease Obligation, Initial Term | 60 months | ||||||||
Capital leases, interest rate | 6.03% | 6.03% | |||||||
Cash Convertible Note Economic Hedge And Warrant Transaction | |||||||||
Components of short-term borrowings and other debt | |||||||||
Cash convertible note hedge transaction | 20,500,000 | ||||||||
Treasury Stock | |||||||||
Components of short-term borrowings and other debt | |||||||||
Cash convertible note hedge transaction | 300,000 | ||||||||
Letter of Credit, San Francisco Office, Expires January 2016 | Letter of Credit | |||||||||
Components of short-term borrowings and other debt | |||||||||
Letter of credit, borrowing capacity | $ 710,000 | $ 710,000 | |||||||
Letter of Credit, NY Office, Expires February 2016 | Letter of Credit | |||||||||
Components of short-term borrowings and other debt | |||||||||
Letter of credit, borrowing capacity | 1,000,000 | 1,000,000 | |||||||
Letter of Credit, Boston Office, Expires March 2016 | Letter of Credit | |||||||||
Components of short-term borrowings and other debt | |||||||||
Letter of credit, borrowing capacity | 382,000 | 382,000 | |||||||
Letter of Credit, NY Office 1, Expires May 2016 | Letter of Credit | |||||||||
Components of short-term borrowings and other debt | |||||||||
Letter of credit, borrowing capacity | 355,000 | 355,000 | |||||||
Letter of Credit, NY Office 2, Expires May 2016 | Letter of Credit | |||||||||
Components of short-term borrowings and other debt | |||||||||
Letter of credit, borrowing capacity | 1,861,000 | 1,861,000 | |||||||
Letter of Credit, NY Office 3, Expires October 2016 | Letter of Credit | |||||||||
Components of short-term borrowings and other debt | |||||||||
Letter of credit, borrowing capacity | 794,000 | 794,000 | |||||||
Letter of Credit, NY Office 4, Expires October 2016 | Letter of Credit | |||||||||
Components of short-term borrowings and other debt | |||||||||
Letter of credit, borrowing capacity | 3,373,000 | 3,373,000 | |||||||
Letter of Credit, NY Office 5, Expires November 2016 | Letter of Credit | |||||||||
Components of short-term borrowings and other debt | |||||||||
Letter of credit, borrowing capacity | 1,600,000 | 1,600,000 | |||||||
Convertible Debt | |||||||||
Components of short-term borrowings and other debt | |||||||||
Debt Instrument, Face Amount | $ 149,500,000 | ||||||||
Interest rate | 3.00% | ||||||||
Principal amount of notes being converted | $ 1,000 | ||||||||
Interest on Convertible Debt, Net of Tax | 1,100,000 | 1,100,000 | 4,500,000 | 3,600,000 | |||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 5.33 | ||||||||
Convertible debt, unamortized discount | 24,700,000 | $ 31,000,000 | 24,700,000 | 31,000,000 | $ 35,700,000 | ||||
Amortization of debt discount | 6,300,000 | $ 4,700,000 | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.89% | ||||||||
Debt Issuance Cost | 3,700,000 | ||||||||
Repayments on long-term and short-term borrowings | |||||||||
2,016 | 4,485,000 | 4,485,000 | |||||||
2,017 | 4,485,000 | 4,485,000 | |||||||
2,018 | 4,485,000 | 4,485,000 | |||||||
2,019 | 151,743,000 | 151,743,000 | |||||||
2,020 | 0 | 0 | |||||||
Thereafter | 0 | 0 | |||||||
Subtotal | 165,198,000 | 165,198,000 | |||||||
Less: Amount representing interest | [2] | (40,421,000) | (40,421,000) | ||||||
Senior Notes | |||||||||
Components of short-term borrowings and other debt | |||||||||
Notes Payable | 63,250,000 | 63,250,000 | |||||||
Debt Instrument, Face Amount | $ 63,300,000 | ||||||||
Interest rate | 8.25% | ||||||||
Interest on Convertible Debt, Net of Tax | 5,200,000 | ||||||||
Debt Issuance Cost | $ 2,900,000 | ||||||||
Repayments on long-term and short-term borrowings | |||||||||
2,016 | 5,218,000 | 5,218,000 | |||||||
2,017 | 5,218,000 | 5,218,000 | |||||||
2,018 | 5,218,000 | 5,218,000 | |||||||
2,019 | 5,218,000 | 5,218,000 | |||||||
2,020 | 5,218,000 | 5,218,000 | |||||||
Thereafter | 68,468,000 | 68,468,000 | |||||||
Subtotal | 94,558,000 | 94,558,000 | |||||||
Less: Amount representing interest | [2] | $ (31,308,000) | $ (31,308,000) | ||||||
Common Stock Class A | |||||||||
Components of short-term borrowings and other debt | |||||||||
Class of Warrant, Exercise Price of Warrants or Rights | $ / shares | $ 7.18 | ||||||||
[1] | The carrying amount of the convertible debt includes an unamortized discount of $24.7 million and $31.0 million as of December 31, 2015 and 2014. | ||||||||
[2] | Amount necessary to reduce net minimum payments to present value calculated at the Company's implicit rate at inception. This amount also includes the unamortized discount on the convertible debt. |
Stockholders Equity - Annual (D
Stockholders Equity - Annual (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)class$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)shares | May. 19, 2015USD ($)$ / sharesshares | |
Equity, Class of Stock [Line Items] | ||||
Common stock, shares authorized | 500,000,000 | |||
Treasury Stock, Shares [Roll Forward] | ||||
Treasury stock, shares, beginning of period | 23,507,656 | |||
Purchase of treasury stock, shares | 9,353,747 | |||
Treasury stock, shares, end of period | 34,515,734 | 23,507,656 | ||
Treasury Stock, Cost [Roll Forward] | ||||
Treasury stock, cost, beginning of period | $ | $ 79,771 | |||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions | $ | 8,907 | $ 5,649 | $ 3,649 | |
Treasury stock reissued, cost | $ | $ (90) | |||
Purchase of treasury stock, cost | $ | 48,678 | |||
Treasury stock, cost, end of period | $ | $ 137,356 | $ 79,771 | ||
Treasury Stock, Average Cost Per Share [Roll Forward] | ||||
Treasury stock, average cost per share, beginning of period, in dollars per share | $ / shares | $ 3.39 | |||
Purchase of treasury stock, average cost per share, in dollars per share | $ / shares | 5.20 | |||
Treasury stock, average cost per share, end of period, in dollars per share | $ / shares | $ 3.98 | $ 3.39 | ||
Number of classes | class | 2 | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Convertible Preferred Stock, Shares Issued upon Conversion | 152.2476 | |||
Convertible Preferred Stock, Threshold Percentage of Stock Price Trigger | 150.00% | |||
Treasury Stock | ||||
Treasury Stock, Shares [Roll Forward] | ||||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions | 1,654,331 | |||
Treasury Stock, Cost [Roll Forward] | ||||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions | $ | $ 8,907 | |||
Treasury Stock, Average Cost Per Share [Roll Forward] | ||||
Shares purchased for minimum tax withholding under the Equity Plan or other similar transactions, Average Cost Per Share | $ / shares | $ 5.38 | |||
Convertible Preferred Stock | ||||
Equity, Class of Stock [Line Items] | ||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ | $ 3,400 | |||
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 1,000 | |||
Preferred Stock, Dividend Rate, Percentage | 5.625% | |||
Dividends | $ | $ 4,100 | |||
Common Stock Class A | ||||
Equity, Class of Stock [Line Items] | ||||
Common stock, shares authorized | 250,000,000 | 250,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Treasury Stock, Shares [Roll Forward] | ||||
Treasury stock, shares, beginning of period | 23,507,656 | |||
Treasury stock reissued, shares | (24,744) | |||
Treasury stock, shares, end of period | 34,515,734 | 23,507,656 | ||
Treasury Stock, Cost [Roll Forward] | ||||
Treasury stock, cost, beginning of period | $ | $ 79,771 | |||
Treasury stock, cost, end of period | $ | $ 137,356 | $ 79,771 | ||
Common Stock Class B | ||||
Equity, Class of Stock [Line Items] | ||||
Common stock, shares authorized | 250,000,000 | 250,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Call Option | ||||
Equity, Class of Stock [Line Items] | ||||
Option indexed to Issuer's Equity, Value | $ | $ 15,900 | |||
Maximum | ||||
Equity, Class of Stock [Line Items] | ||||
Convertible Preferred Stock, Threshold Consecutive Trading Days | 30 days | |||
Maximum | Call Option | ||||
Equity, Class of Stock [Line Items] | ||||
Option Indexed to Issuer's Equity, Strike Price | $ / shares | $ 8.39 | |||
Minimum | ||||
Equity, Class of Stock [Line Items] | ||||
Convertible Preferred Stock, Threshold Consecutive Trading Days | 20 days | |||
Minimum | Call Option | ||||
Equity, Class of Stock [Line Items] | ||||
Option Indexed to Issuer's Equity, Strike Price | $ / shares | $ 6.57 |
Accumulated Other Comprehensi99
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accumulated Other Comprehensive Income / (Loss) [Abstract] | |||||
Foreign Currency Translations | [1] | $ 0 | $ 17 | $ 248 | $ 258 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | [1] | (17) | (231) | (10) | |
Defined Benefit Plans | [1] | 0 | 0 | 344 | 98 |
Total defined benefit pension plan | [1] | 0 | 344 | (246) | |
Accumulated other comprehensive income (loss) | 0 | 17 | 592 | $ 356 | |
Other Comprehensive Income (Loss), Net of Tax | $ (17) | $ (575) | $ 236 | ||
[1] | During the periods presented, the Company did not have material reclassifications out of other comprehensive income. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Computation of earnings per share: | ||||||||||||
Net income (loss) | $ 58,975 | $ 182,780 | $ 17,840 | |||||||||
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | $ 4,266 | $ 4,344 | $ 3,916 | $ 2,720 | $ 2,155 | $ 4,006 | $ 5,216 | $ 4,187 | 15,246 | 15,564 | 13,193 | |
Net income (loss) attributable to Cowen Group, Inc. | 30,661 | (10,346) | 6,716 | 16,698 | $ 142,471 | $ 6,523 | $ 8,382 | $ 9,840 | 43,729 | 167,216 | 4,647 | |
Preferred Stock Dividends | 1,717 | 1,603 | 755 | 0 | 4,075 | 0 | 0 | |||||
Net income (loss) attributable to Cowen Group, Inc. common stockholders | $ 28,944 | $ (11,949) | $ 5,961 | $ 16,698 | $ 39,654 | $ 167,216 | $ 4,647 | |||||
Shares for basic and diluted calculations: | ||||||||||||
Weighted average shares used in basic computation, shares | 107,236,000 | 109,191,000 | 111,915,000 | 112,053,000 | 113,492,000 | 114,969,000 | 115,569,000 | 115,680,000 | 110,090,000 | 114,926,000 | 116,703,000 | |
Weighted average shares used in diluted computation, shares | 112,730,000 | 109,191,000 | 118,226,000 | 118,590,000 | 118,222,000 | 118,801,000 | 120,199,000 | 122,898,000 | 116,174,000 | 119,486,000 | 121,117,000 | |
Earnings (loss) per share: | ||||||||||||
Earnings Per Share, Basic (in dollars per share) | $ 0.27 | $ (0.11) | $ 0.05 | $ 0.15 | $ 1.26 | $ 0.06 | $ 0.07 | $ 0.09 | $ 0.36 | $ 1.45 | $ 0.04 | |
Earnings Per Share, Diluted (in dollars per share) | $ 0.26 | $ (0.11) | $ 0.05 | $ 0.14 | $ 1.21 | $ 0.05 | $ 0.07 | $ 0.08 | $ 0.34 | $ 1.40 | $ 0.04 | |
Stock Options | ||||||||||||
Shares for basic and diluted calculations: | ||||||||||||
Shares attributable to share-based payment awards, shares | 13,000 | 0 | 0 | |||||||||
Performance based restricted stock | ||||||||||||
Shares for basic and diluted calculations: | ||||||||||||
Shares attributable to share-based payment awards, shares | 263,000 | 0 | 0 | |||||||||
Stock Appreciation Rights | ||||||||||||
Shares for basic and diluted calculations: | ||||||||||||
Shares attributable to share-based payment awards, shares | 140,000 | 60,000 | 306,000 | |||||||||
Restricted Stock | ||||||||||||
Shares for basic and diluted calculations: | ||||||||||||
Shares attributable to share-based payment awards, shares | 5,668,000 | 4,500,000 | 4,108,000 | |||||||||
Common Stock Class A | ||||||||||||
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Common stock, shares outstanding, shares | 105,604,658 | 111,691,199 | 105,604,658 | 111,691,199 | 115,026,633 | 112,447,892 | ||||||
Common stock, restricted shares, shares | 497,570 | 424,479 | 497,570 | 424,479 |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segmentcustomer | Dec. 31, 2014USD ($)customer | Dec. 31, 2013USD ($)customer | ||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Operating Segments | segment | 2 | |||||||||||
Revenues | ||||||||||||
Investment banking | $ 222,781,000 | $ 170,506,000 | $ 105,333,000 | |||||||||
Brokerage | 157,722,000 | 140,132,000 | 114,593,000 | |||||||||
Management fees | 41,906,000 | 40,627,000 | 37,303,000 | |||||||||
Incentive income | 1,466,000 | 2,785,000 | 12,586,000 | |||||||||
Investment Income | 0 | 0 | 0 | |||||||||
Interest and dividends | 13,796,000 | 48,870,000 | 39,454,000 | |||||||||
Reimbursement from affiliates | 21,557,000 | 12,495,000 | 10,434,000 | |||||||||
Other revenue | 3,726,000 | 9,446,000 | 5,418,000 | |||||||||
Total revenues | $ 110,611,000 | $ 113,254,000 | $ 119,608,000 | $ 121,094,000 | $ 121,096,000 | $ 107,101,000 | $ 92,902,000 | $ 106,677,000 | 464,567,000 | 427,776,000 | 328,519,000 | |
Expenses | ||||||||||||
Non-interest expense | 475,844,000 | 443,471,000 | 331,579,000 | |||||||||
Goodwill Impairment | 0 | 2,334,000 | 0 | |||||||||
Interest and dividends | 26,220,000 | 42,752,000 | 27,299,000 | |||||||||
Total expenses | 504,374,000 | 490,191,000 | 360,917,000 | |||||||||
Other income (loss) | ||||||||||||
Total other income (loss) | 51,286,000 | 120,251,000 | 50,695,000 | |||||||||
Income tax expense (benefit) | (52,708,000) | (5,081,000) | 3,346,000 | 6,947,000 | (125,210,000) | 141,000 | 46,000 | 79,000 | (47,496,000) | (124,944,000) | 457,000 | |
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | (15,246,000) | (15,564,000) | (13,193,000) | |||||||||
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc. | $ 30,661,000 | $ (10,346,000) | $ 6,716,000 | $ 16,698,000 | $ 142,471,000 | $ 6,523,000 | $ 8,382,000 | $ 9,840,000 | $ 43,729,000 | $ 167,216,000 | $ 4,647,000 | |
Number of major customers | customer | 0 | 0 | 0 | |||||||||
Reported Under Economic Income / (Loss) | ||||||||||||
Revenues | ||||||||||||
Investment banking | $ 222,781,000 | $ 170,506,000 | $ 105,333,000 | |||||||||
Brokerage | 160,436,000 | 146,247,000 | 121,065,000 | |||||||||
Management fees | 70,015,000 | 64,774,000 | 56,984,000 | |||||||||
Incentive income | (1,544,000) | 45,708,000 | 21,205,000 | |||||||||
Investment Income | 62,596,000 | 65,215,000 | 36,660,000 | |||||||||
Interest and dividends | 0 | 0 | 0 | |||||||||
Reimbursement from affiliates | 0 | 0 | 0 | |||||||||
Other revenue | 15,382,000 | 5,168,000 | 2,534,000 | |||||||||
Total revenues | 529,666,000 | 497,618,000 | 343,781,000 | |||||||||
Expenses | ||||||||||||
Non-interest expense | 469,754,000 | 435,862,000 | 323,895,000 | |||||||||
Goodwill Impairment | 0 | |||||||||||
Interest and dividends | 16,584,000 | 9,798,000 | 350,000 | |||||||||
Total expenses | 486,338,000 | 445,660,000 | 324,245,000 | |||||||||
Other income (loss) | ||||||||||||
Total other income (loss) | 0 | 0 | 0 | |||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | (8,796,000) | (7,802,000) | (12,995,000) | |||||||||
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc. | 34,532,000 | 44,156,000 | 6,541,000 | |||||||||
Alternative Investment | ||||||||||||
Expenses | ||||||||||||
Goodwill Impairment | 0 | 0 | ||||||||||
Alternative Investment | Reported Under Economic Income / (Loss) | ||||||||||||
Revenues | ||||||||||||
Investment banking | 0 | 0 | 0 | |||||||||
Brokerage | 0 | 55,000 | 0 | |||||||||
Management fees | 68,989,000 | 64,774,000 | 56,984,000 | |||||||||
Incentive income | (1,544,000) | 45,708,000 | 21,205,000 | |||||||||
Investment Income | 49,244,000 | 45,193,000 | 30,713,000 | |||||||||
Interest and dividends | 0 | 0 | 0 | |||||||||
Reimbursement from affiliates | 0 | 0 | 0 | |||||||||
Other revenue | 14,492,000 | 4,645,000 | 524,000 | |||||||||
Total revenues | 131,181,000 | 160,375,000 | 109,426,000 | |||||||||
Expenses | ||||||||||||
Non-interest expense | 107,291,000 | 115,601,000 | 86,054,000 | |||||||||
Goodwill Impairment | 0 | |||||||||||
Interest and dividends | 11,839,000 | 7,804,000 | 231,000 | |||||||||
Total expenses | 119,130,000 | 123,405,000 | 86,285,000 | |||||||||
Other income (loss) | ||||||||||||
Total other income (loss) | 0 | 0 | 0 | |||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | (8,796,000) | (7,802,000) | (12,995,000) | |||||||||
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc. | 3,255,000 | 29,168,000 | 10,146,000 | |||||||||
Broker-Dealer | ||||||||||||
Expenses | ||||||||||||
Goodwill Impairment | 0 | 2,334,000 | ||||||||||
Broker-Dealer | Reported Under Economic Income / (Loss) | ||||||||||||
Revenues | ||||||||||||
Investment banking | 222,781,000 | 170,506,000 | 105,333,000 | |||||||||
Brokerage | 160,436,000 | 146,192,000 | 121,065,000 | |||||||||
Management fees | 1,026,000 | 0 | 0 | |||||||||
Incentive income | 0 | 0 | 0 | |||||||||
Investment Income | 13,352,000 | 20,022,000 | 5,947,000 | |||||||||
Interest and dividends | 0 | 0 | 0 | |||||||||
Reimbursement from affiliates | 0 | 0 | 0 | |||||||||
Other revenue | 890,000 | 523,000 | 2,010,000 | |||||||||
Total revenues | 398,485,000 | 337,243,000 | 234,355,000 | |||||||||
Expenses | ||||||||||||
Non-interest expense | 362,463,000 | 320,261,000 | 237,841,000 | |||||||||
Goodwill Impairment | 0 | |||||||||||
Interest and dividends | 4,745,000 | 1,994,000 | 119,000 | |||||||||
Total expenses | 367,208,000 | 322,255,000 | 237,960,000 | |||||||||
Other income (loss) | ||||||||||||
Total other income (loss) | 0 | 0 | 0 | |||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | 0 | 0 | 0 | |||||||||
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc. | 31,277,000 | 14,988,000 | (3,605,000) | |||||||||
Funds Consolidation | Reconciliation from Economic Income / (Loss) to U.S. GAAP | ||||||||||||
Revenues | ||||||||||||
Investment banking | 0 | 0 | 0 | |||||||||
Brokerage | 0 | 0 | 0 | |||||||||
Management fees | (1,307,000) | (963,000) | (1,146,000) | |||||||||
Incentive income | (736,000) | (281,000) | 0 | |||||||||
Investment Income | 0 | 0 | 0 | |||||||||
Interest and dividends | 0 | 0 | 0 | |||||||||
Reimbursement from affiliates | (190,000) | (342,000) | (99,000) | |||||||||
Other revenue | 0 | 0 | 0 | |||||||||
Total revenues | (620,000) | 1,329,000 | 2,153,000 | |||||||||
Expenses | ||||||||||||
Non-interest expense | 0 | 0 | 0 | |||||||||
Goodwill Impairment | 0 | |||||||||||
Interest and dividends | 0 | 0 | 0 | |||||||||
Total expenses | 2,310,000 | 1,634,000 | 2,039,000 | |||||||||
Other income (loss) | ||||||||||||
Total other income (loss) | 8,781,000 | 5,775,000 | 2,618,000 | |||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | (5,851,000) | (5,470,000) | (2,732,000) | |||||||||
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc. | 0 | 0 | 0 | |||||||||
Significant Reconciling Items | Reconciliation from Economic Income / (Loss) to U.S. GAAP | ||||||||||||
Revenues | ||||||||||||
Investment banking | 0 | 0 | 0 | |||||||||
Brokerage | [1] | (2,714,000) | (6,115,000) | (6,472,000) | ||||||||
Management fees | [2] | (26,802,000) | (23,184,000) | (18,535,000) | ||||||||
Incentive income | [2] | 3,746,000 | (42,642,000) | (8,619,000) | ||||||||
Investment Income | [3] | (62,596,000) | (65,215,000) | (36,660,000) | ||||||||
Interest and dividends | [1],[3] | 13,796,000 | 48,870,000 | 39,454,000 | ||||||||
Reimbursement from affiliates | [4] | 21,747,000 | 12,837,000 | 10,533,000 | ||||||||
Other revenue | [3] | (11,656,000) | 4,278,000 | 2,884,000 | ||||||||
Total revenues | (64,479,000) | (71,171,000) | (17,415,000) | |||||||||
Expenses | ||||||||||||
Non-interest expense | [3],[5] | 6,090,000 | 7,609,000 | 7,684,000 | ||||||||
Goodwill Impairment | [6] | 2,334,000 | ||||||||||
Interest and dividends | [1],[3] | 9,636,000 | 32,954,000 | 26,949,000 | ||||||||
Total expenses | 15,726,000 | 42,897,000 | 34,633,000 | |||||||||
Other income (loss) | ||||||||||||
Total other income (loss) | [3] | 42,505,000 | 114,476,000 | 48,077,000 | ||||||||
Income tax expense (benefit) | [7] | (47,496,000) | (124,944,000) | 457,000 | ||||||||
(Income) loss attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | (599,000) | (2,292,000) | 2,534,000 | |||||||||
Economic Income (Loss) / Net income (loss) attributable to Cowen Group, Inc. | 9,197,000 | 123,060,000 | (1,894,000) | |||||||||
Consolidated Funds | ||||||||||||
Revenues | ||||||||||||
Total revenues | 1,613,000 | 2,915,000 | 3,398,000 | |||||||||
Expenses | ||||||||||||
Total expenses | 2,310,000 | 1,634,000 | 2,039,000 | |||||||||
Consolidated Funds | Reported Under Economic Income / (Loss) | ||||||||||||
Revenues | ||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||
Expenses | ||||||||||||
Total expenses | 0 | 0 | 0 | |||||||||
Consolidated Funds | Alternative Investment | Reported Under Economic Income / (Loss) | ||||||||||||
Revenues | ||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||
Expenses | ||||||||||||
Total expenses | 0 | 0 | 0 | |||||||||
Consolidated Funds | Broker-Dealer | Reported Under Economic Income / (Loss) | ||||||||||||
Revenues | ||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||
Expenses | ||||||||||||
Total expenses | 0 | 0 | 0 | |||||||||
Consolidated Funds | Funds Consolidation | Reconciliation from Economic Income / (Loss) to U.S. GAAP | ||||||||||||
Revenues | ||||||||||||
Total revenues | 1,613,000 | 2,915,000 | 3,398,000 | |||||||||
Expenses | ||||||||||||
Total expenses | 2,310,000 | 1,634,000 | 2,039,000 | |||||||||
Consolidated Funds | Significant Reconciling Items | Reconciliation from Economic Income / (Loss) to U.S. GAAP | ||||||||||||
Revenues | ||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||
Expenses | ||||||||||||
Total expenses | $ 0 | $ 0 | $ 0 | |||||||||
[1] | Economic Income (Loss) recognizes stock borrow/loan activity (prior to January 2015) and other brokerage dividends as brokerage revenue. | |||||||||||
[2] | Economic Income (Loss) recognizes revenues (i) net of distribution fees paid to agents and (ii) our proportionate share of management and incentive fees of certain real estate operating entities and the activist business. | |||||||||||
[3] | Economic Income (Loss) recognizes Company income from proprietary trading (including interest and dividends) net of related expenses. | |||||||||||
[4] | Reimbursement from affiliates is shown as a reduction of Economic Income expenses, but is included as a part of revenues under US GAAP. | |||||||||||
[5] | Economic Income (Loss) recognizes the Company's proportionate share of expenses for certain real estate and other operating entities for which the investments are recorded under the equity method of accounting for investments. | |||||||||||
[6] | Economic Income (Loss) excludes goodwill impairment and other reorganization expenses. | |||||||||||
[7] | Economic Income (Loss) excludes income taxes as management does not consider this item when evaluating the performance of the segment. |
Regulatory Requirements (Detail
Regulatory Requirements (Details) | Dec. 31, 2015USD ($) |
Cowen and Company | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Net capital requirement under alternative method | $ 1,000,000 |
Net capital | 50,800,000 |
Excess capital | 49,800,000 |
ATM Execution | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Minimum net capital required | 250,000 |
Net capital | 4,100,000 |
Excess capital | 3,800,000 |
Concept (Cowen Prime) | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Minimum net capital required | 250,000 |
Net capital | 17,900,000 |
Excess capital | 17,600,000 |
Conifer (Cowen Prime Trading) | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Minimum net capital required | 250,000 |
Net capital | 3,600,000 |
Excess capital | 3,300,000 |
Vianden | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Minimum net capital required | 6,600,000 |
Net capital | 64,000,000 |
Excess capital | 58,200,000 |
Hollenfels | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Minimum net capital required | 4,000,000 |
Net capital | 77,400,000 |
Excess capital | 73,400,000 |
RCG Insurance Company | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Minimum net capital required | 300,000 |
Net capital | 22,000,000 |
U.K. Financial Services Authority | Raimus U.K., Ltd. | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Financial resources | 280,000 |
Financial resources requirement | 50,000 |
Excess financial resources | 230,000 |
U.K. Financial Services Authority | Cowen International Limited | |
Regulatory Requirements for Broker-Dealers [Line Items] | |
Financial resources | 3,200,000 |
Financial resources requirement | 2,100,000 |
Excess financial resources | $ 1,100,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||||||||||
Fees receivable, net of allowance | $ 34,413 | $ 46,498 | $ 34,413 | $ 46,498 | |||||||
Redeemable non-controlling interests, Related Party | (186,911) | (86,076) | (186,911) | (86,076) | |||||||
Net income (loss) attributable to redeemable non-controlling interests, Related Party | (4,266) | $ (4,344) | $ (3,916) | $ (2,720) | (2,155) | $ (4,006) | $ (5,216) | $ (4,187) | (15,246) | (15,564) | $ (13,193) |
June 29, 2015 | Real Estate Equity Investment | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest Income, Related Party | 300 | ||||||||||
Real estate loan | 15,000 | $ 15,000 | |||||||||
Effective interest rate | 8.82% | ||||||||||
Employees | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Redeemable non-controlling interests, Related Party | 21,300 | 15,100 | $ 21,300 | 15,100 | |||||||
Net income (loss) attributable to redeemable non-controlling interests, Related Party | $ (10,400) | (10,600) | |||||||||
Employee Loans | Minimum | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Forgivable Loans, Vesting Period | 1 year | ||||||||||
Employee Loans | Maximum | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Forgivable Loans, Vesting Period | 3 years | ||||||||||
Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Fees receivable, net of allowance | 6,300 | 5,100 | $ 6,300 | 5,100 | |||||||
Affiliated Entity | Fees Payable | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Fees payable to related parties | 100 | 100 | 100 | 100 | |||||||
Affiliated Entity | Management Fee and Incentive Income | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Reimbursement to affiliated funds | 700 | 1,700 | |||||||||
Employees | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due from employees | 5,500 | 6,100 | 5,500 | 6,100 | |||||||
Forgivable Loan Balances | 1,200 | 3,900 | 1,200 | 3,900 | |||||||
Amortization on Forgivable Loans | 3,200 | 4,400 | $ 3,200 | ||||||||
Investor | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due to Affiliate | $ 300 | $ 500 | $ 300 | $ 500 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | Feb. 23, 2016USD ($) |
Subsequent Event [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 7 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 25 |
Supplemental Financial Infor105
Supplemental Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Financial Information [Abstract] | |||||||||||
Total revenues | $ 110,611 | $ 113,254 | $ 119,608 | $ 121,094 | $ 121,096 | $ 107,101 | $ 92,902 | $ 106,677 | $ 464,567 | $ 427,776 | $ 328,519 |
Income (loss) before income taxes | (17,781) | (11,083) | 13,978 | 26,365 | 19,416 | 10,670 | 13,644 | 14,106 | 11,479 | 57,836 | 18,297 |
Income tax expense (benefit) | (52,708) | (5,081) | 3,346 | 6,947 | (125,210) | 141 | 46 | 79 | (47,496) | (124,944) | 457 |
Net income (loss) from continuing operations | 34,927 | (6,002) | 10,632 | 19,418 | 144,626 | 10,529 | 13,598 | 14,027 | |||
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds | 4,266 | 4,344 | 3,916 | 2,720 | 2,155 | 4,006 | 5,216 | 4,187 | 15,246 | 15,564 | 13,193 |
Preferred Stock Dividends | 1,717 | 1,603 | 755 | 0 | 4,075 | 0 | 0 | ||||
Net income (loss) attributable to Cowen Group, Inc. | 30,661 | (10,346) | 6,716 | 16,698 | $ 142,471 | $ 6,523 | $ 8,382 | $ 9,840 | 43,729 | 167,216 | 4,647 |
Net income (loss) attributable to Cowen Group, Inc. common stockholders | $ 28,944 | $ (11,949) | $ 5,961 | $ 16,698 | $ 39,654 | $ 167,216 | $ 4,647 | ||||
Earnings (loss) per share: | |||||||||||
Earnings Per Share, Basic (in dollars per share) | $ 0.27 | $ (0.11) | $ 0.05 | $ 0.15 | $ 1.26 | $ 0.06 | $ 0.07 | $ 0.09 | $ 0.36 | $ 1.45 | $ 0.04 |
Earnings Per Share, Diluted (in dollars per share) | $ 0.26 | $ (0.11) | $ 0.05 | $ 0.14 | $ 1.21 | $ 0.05 | $ 0.07 | $ 0.08 | $ 0.34 | $ 1.40 | $ 0.04 |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | 107,236 | 109,191 | 111,915 | 112,053 | 113,492 | 114,969 | 115,569 | 115,680 | 110,090 | 114,926 | 116,703 |
Diluted (in shares) | 112,730 | 109,191 | 118,226 | 118,590 | 118,222 | 118,801 | 120,199 | 122,898 | 116,174 | 119,486 | 121,117 |