Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | OPPENHEIMER HOLDINGS INC | |
Entity Central Index Key | 791,963 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 13,160,353 | |
Class B Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 99,665 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 38,961,000 | $ 48,154,000 |
Deposits with clearing organizations | 56,864,000 | 42,222,000 |
Receivable from brokers, dealers and clearing organizations | 204,527,000 | 187,115,000 |
Receivable from customers, net of allowance for credit losses of $848 ($769 in 2017) | 835,708,000 | 848,226,000 |
Income tax receivable | 2,818,000 | 2,939,000 |
Securities purchased under agreements to resell, at fair value | 6,738,000 | 658,000 |
Securities owned, including amounts pledged of $692,286 ($655,683 in 2017), at fair value | 1,020,404,000 | 926,597,000 |
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,788 and $8,051, respectively ($24,705 and $7,975, respectively, in 2017) | 42,410,000 | 40,520,000 |
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $85,815 ($82,826 in 2017) | 27,994,000 | 27,187,000 |
Intangible assets | 32,100,000 | 31,700,000 |
Goodwill | 137,889,000 | 137,889,000 |
Other assets | 114,867,000 | 145,310,000 |
Total assets | 2,521,280,000 | 2,438,517,000 |
Liabilities | ||
Drafts payable | 21,632,000 | 42,412,000 |
Bank call loans | 107,500,000 | 118,300,000 |
Payable to brokers, dealers and clearing organizations | 282,542,000 | 211,483,000 |
Payable to customers | 373,664,000 | 385,907,000 |
Securities sold under agreements to repurchase | 599,151,000 | 586,478,000 |
Securities sold but not yet purchased, at fair value | 162,042,000 | 94,486,000 |
Accrued compensation | 128,985,000 | 173,116,000 |
Accounts payable and other liabilities | 94,353,000 | 92,495,000 |
Senior secured notes, net of debt issuance costs of $1,034 ($1,163 in 2017) | 198,966,000 | 198,837,000 |
Deferred tax liabilities, net of deferred tax assets of $44,906 ($47,597 in 2017) | 13,804,000 | 11,092,000 |
Total liabilities | 1,982,639,000 | 1,914,606,000 |
Commitments and contingencies (note 12) | ||
Share capital | ||
Common stock | 58,825,000 | 58,492,000 |
Contributed capital | 39,287,000 | 36,546,000 |
Retained earnings | 439,577,000 | 426,930,000 |
Accumulated other comprehensive income | 603,000 | 1,582,000 |
Total Oppenheimer Holdings Inc. stockholders' equity | 538,292,000 | 523,550,000 |
Non-controlling interest | 349,000 | 361,000 |
Total stockholders' equity | 538,641,000 | 523,911,000 |
Total liabilities and stockholders' equity | 2,521,280,000 | 2,438,517,000 |
Class A Stock | ||
Share capital | ||
Common stock | 58,692,000 | 58,359,000 |
Class B Stock | ||
Share capital | ||
Common stock | $ 133,000 | $ 133,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Allowance for credit losses | $ 848 | $ 769 |
Amounts pledged | 692,286 | 655,683 |
Furniture equipment and leasehold improvements, net accumulated depreciation | 85,815 | 82,826 |
Net deferred tax assets | 44,906 | 47,597 |
Notes Receivable, Net Accumulated Amortization | 24,788 | 24,705 |
Notes Receivable, Net Allowance for Uncollectibles | 8,051 | 7,975 |
Unamortized debt issuance expense | $ 1,034 | $ 1,163 |
Class A Stock | ||
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 13,156,353 | 13,139,203 |
Common stock, shares outstanding | 13,156,353 | 13,139,203 |
Common stock, par value | $ 0.001 | $ 0.001 |
Class B Stock | ||
Common stock, authorized | 99,665 | 99,665 |
Common stock, shares issued | 99,665 | 99,665 |
Common stock, shares outstanding | 99,665 | 99,665 |
Common stock, par value | $ 0.001 | $ 0.001 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
REVENUE | ||||
Commissions | $ 82,850 | $ 83,852 | $ 166,257 | $ 170,569 |
Advisory fees | 77,270 | 72,783 | 154,818 | 142,192 |
Investment banking | 27,904 | 15,386 | 56,114 | 33,407 |
Proceeds from (Payments for) in Interest-bearing Deposits in Banks | 28,853 | 17,720 | 54,150 | 31,846 |
Interest | 13,056 | 12,829 | 25,283 | 23,394 |
Principal transactions, net | 6,400 | 5,302 | 9,126 | 10,675 |
Other | 6,223 | 8,012 | 11,338 | 17,062 |
Total revenue | 242,556 | 215,884 | 477,086 | 429,145 |
EXPENSES | ||||
Compensation and related expenses | 151,871 | 142,657 | 304,975 | 286,535 |
Communications and technology | 17,997 | 18,399 | 36,685 | 36,105 |
Occupancy and equipment costs | 14,901 | 15,161 | 30,329 | 30,433 |
Clearing and exchange fees | 5,780 | 5,916 | 11,876 | 11,770 |
Interest | 10,909 | 6,854 | 19,872 | 12,210 |
Other | 28,597 | 28,534 | 51,223 | 60,754 |
Total expenses | 230,055 | 217,521 | 454,960 | 437,807 |
Income (Loss) before income taxes from continuing operations | 12,501 | (1,637) | 22,126 | (8,662) |
Income Tax Expense (Benefit) | 3,662 | (274) | 6,578 | (1,961) |
Net income (loss) from continuing operations | 8,839 | (1,363) | 15,548 | (6,701) |
Income from discontinued operations | 0 | 89 | 0 | 1,065 |
Income taxes | 0 | 36 | 0 | 425 |
Net income from discontinued operations | 0 | 53 | 0 | 640 |
Net income (loss) | 8,839 | (1,310) | 15,548 | (6,061) |
Less net income (loss) attributable to non-controlling interest, net of tax | (16) | 9 | (12) | 105 |
Net income (loss) attributable to Oppenheimer Holdings Inc. | $ 8,855 | $ (1,319) | $ 15,560 | $ (6,166) |
Basic net income (loss) per share attributable to Oppenheimer Holdings Inc. | ||||
Continuing operations (in dollars per share) | $ 0.67 | $ (0.10) | $ 1.17 | $ (0.50) |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.04 |
Net loss per share (in dollars per share) | 0.67 | (0.10) | 1.17 | (0.46) |
Earnings Per Share, Diluted [Abstract] | ||||
Continuing operations (in dollars per share) | 0.63 | (0.10) | 1.11 | (0.50) |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.04 |
Net loss per share (in dollars per share) | $ 0.63 | $ (0.10) | $ 1.11 | $ (0.46) |
Weighted average shares | ||||
Basic (in shares) | 13,248,812 | 13,260,855 | 13,244,245 | 13,329,670 |
Diluted (in shares) | 14,050,573 | 13,260,855 | 14,005,556 | 13,329,670 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 8,839 | $ (1,310) | $ 15,548 | $ (6,061) | |
Other comprehensive income (loss), net of tax | |||||
Currency translation adjustment | [1] | (837) | 780 | (979) | 2,204 |
Comprehensive income (loss) | 8,002 | (530) | 14,569 | (3,857) | |
Net income (loss) attributable to non-controlling interest, net of tax | (16) | 9 | (12) | 105 | |
Total comprehensive income | $ 8,018 | $ (539) | $ 14,581 | $ (3,962) | |
[1] | No other comprehensive income (loss) is attributable to non-controlling interests. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Share Capital | Share CapitalClass A Stock | Contributed Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Parent | Non-Controlling Interest | |
Balance at beginning of period at Dec. 31, 2016 | $ 59,361 | $ 41,765 | $ 410,258 | $ (681) | $ 2,631 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of Class A non-voting common stock | $ 3,857 | ||||||||
Repurchase of Class A non-voting common stock for cancellation | (5,159) | ||||||||
Share-based expense | 2,644 | ||||||||
Vested employee share plan awards | (6,060) | ||||||||
Adjustments to Additional Paid in Capital, Other | 425 | ||||||||
Net income (loss) attributable to Oppenheimer Holdings Inc. | $ (6,166) | (6,166) | $ (6,166) | ||||||
Dividends paid ($0.22 per share) | (2,940) | ||||||||
Dividends received from non-controlling interest | 6 | ||||||||
Cumulative Effect on Retained Earnings, Net of Tax | (314) | ||||||||
Currency translation adjustment | 2,204 | [1] | 2,204 | ||||||
Less net income (loss) attributable to non-controlling interest, net of tax | 105 | 0 | 105 | ||||||
Dividends paid to non-controlling interest | 816 | 0 | (816) | ||||||
Dividends paid to parent | (6) | ||||||||
Balance at end of period at Jun. 30, 2017 | 501,114 | 58,059 | 38,774 | 400,844 | 1,523 | 499,200 | 1,914 | ||
Balance at beginning of period at Dec. 31, 2017 | 523,911 | 58,492 | 36,546 | 426,930 | 1,582 | 523,550 | 361 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of Class A non-voting common stock | 333 | ||||||||
Repurchase of Class A non-voting common stock for cancellation | $ 0 | ||||||||
Share-based expense | 3,096 | ||||||||
Vested employee share plan awards | (355) | ||||||||
Adjustments to Additional Paid in Capital, Other | 0 | ||||||||
Net income (loss) attributable to Oppenheimer Holdings Inc. | 15,560 | 15,560 | 15,560 | ||||||
Dividends paid ($0.22 per share) | (2,913) | ||||||||
Dividends received from non-controlling interest | 0 | ||||||||
Cumulative Effect on Retained Earnings, Net of Tax | 0 | ||||||||
Currency translation adjustment | (979) | [1] | (979) | ||||||
Less net income (loss) attributable to non-controlling interest, net of tax | (12) | 0 | (12) | ||||||
Dividends paid to non-controlling interest | 0 | 0 | |||||||
Dividends paid to parent | 0 | ||||||||
Balance at end of period at Jun. 30, 2018 | $ 538,641 | $ 58,825 | $ 39,287 | $ 439,577 | $ 603 | $ 538,292 | $ 349 | ||
[1] | No other comprehensive income (loss) is attributable to non-controlling interests. |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Retained Earnings | ||
Dividends | $ 0.22 | $ 0.22 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Payments of Debt Issuance Costs | $ 0 | $ (547) |
Increase (Decrease) in Deposit Assets | 14,642 | 2,500 |
Cash flows from operating activities | ||
Net income (loss) | 15,548 | (6,061) |
Non-cash items included in net income (loss): | ||
Depreciation and amortization of furniture, equipment and leasehold improvements | 3,140 | 2,783 |
Deferred income taxes | 2,712 | 1,325 |
Amortization of notes receivable | 6,378 | 5,756 |
Amortization of debt issuance costs | 129 | 223 |
Write off of Deferred Debt Issuance Cost | 0 | 430 |
Provision for (reversal of) credit losses | 79 | (4) |
Share-based compensation | 5,216 | 1,715 |
Decrease (increase) in operating assets: | ||
Receivable from brokers, dealers and clearing organizations | (17,412) | (9,772) |
Receivable from customers | 12,439 | (26,425) |
Income tax receivable | 121 | (4,289) |
Securities purchased under agreements to resell | (6,080) | 19,154 |
Securities owned | (93,807) | (279,324) |
Notes receivable | (8,268) | (11,897) |
Other assets | 29,464 | (9,317) |
Increase (decrease) in operating liabilities: | ||
Drafts payable | (20,780) | (9,461) |
Payable to brokers, dealers and clearing organizations | 71,059 | 18,189 |
Payable to customers | (12,243) | 48,616 |
Securities sold under agreements to repurchase | 12,673 | 79,725 |
Securities sold but not yet purchased | 67,556 | 149,728 |
Accrued compensation | (46,251) | (30,925) |
Accounts payable and other liabilities | 4,280 | (8,054) |
Cash provided by (used in) operating activities | 11,311 | (70,385) |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | (3,947) | (2,075) |
Purchase of tangible assets | (400) | 0 |
Proceeds from settlement of company-owned life insurance | 0 | 1,194 |
Cash used in investing activities | (4,347) | (881) |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | (2,913) | (2,940) |
Cash dividends paid to non-controlling interest | 0 | (816) |
Repurchase of Class A non-voting common stock for cancellation | 0 | (5,159) |
Payments for employee taxes withheld related to vested share-based awards | (2,444) | (2,203) |
(Decrease) Increase in bank call loans, net | (10,800) | 84,600 |
Cash (used in) provided by financing activities | (16,157) | 122,935 |
Net (decrease) increase in cash and cash equivalents | (9,193) | 51,669 |
Cash and cash equivalents, beginning of period | 48,154 | 64,913 |
Cash and cash equivalents, end of period | 38,961 | 116,582 |
Schedule of non-cash financing activities | ||
Employee share plan issuance | 333 | 3,857 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 26,899 | 14,607 |
Cash paid during the period for income taxes, net | 3,918 | 551 |
Proceeds from Issuance of Senior Long-term Debt | 0 | 200,000 |
Early Repayment of Senior Debt | $ 0 | $ 150,000 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization and basis of presentation Organization Oppenheimer Holdings Inc. ("OPY" or the "Parent") is incorporated under the laws of the State of Delaware. The condensed consolidated financial statements include the accounts of OPY and its consolidated subsidiaries (together, the "Company"). The Company engages in a broad range of activities in the financial services industry, including retail securities brokerage, institutional sales and trading, market-making, research, investment banking (both corporate and public finance), investment advisory and asset management services and trust services. The Company has 91 retail branch offices in the United States and has institutional businesses located in London, Tel Aviv, and Hong Kong. The principal subsidiaries of OPY are Oppenheimer & Co. Inc. ("Oppenheimer"), a registered broker-dealer in securities and investment adviser under the Investment Advisers Act of 1940; Oppenheimer Asset Management Inc. ("OAM") and its wholly-owned subsidiary, Oppenheimer Investment Management LLC, both registered investment advisers under the Investment Advisers Act of 1940; Oppenheimer Trust Company of Delaware ("Oppenheimer Trust"), a limited purpose trust company that provides fiduciary services such as trust and estate administration and investment management; OPY Credit Corp., which offers syndication as well as trading of issued corporate loans; Oppenheimer Europe Ltd., based in the United Kingdom, with offices in the Isle of Jersey and Switzerland, which provides institutional equities and fixed income brokerage and corporate finance and is regulated by the Financial Conduct Authority; Oppenheimer Investments Asia Limited, based in Hong Kong, China, which provides fixed income and equities brokerage services to institutional investors and is regulated by the Securities and Futures Commission; and Oppenheimer Multifamily Housing & Healthcare Finance, Inc. ("OMHHF") which was formerly engaged in Federal Housing Administration ("FHA")-insured commercial mortgage origination and servicing. During 2016, the Company sold substantially all of the assets of OMHHF and ceased its operations. Oppenheimer owns Freedom Investments, Inc. ("Freedom"), a registered broker dealer in securities, which provides discount brokerage services, and Oppenheimer Israel (OPCO) Ltd., which is engaged in offering investment services in the State of Israel. Oppenheimer holds a trading permit on the New York Stock Exchange and is a member of several other regional exchanges in the United States. Basis of Presentation The accompanying condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America ("U.S. GAAP") for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 (the "Form 10-K"). The accompanying December 31, 2017 condensed consolidated balance sheet data was derived from the audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and the accompanying disclosures. Although these estimates are based on management's knowledge of current events and actions that the Company may undertake in the future, actual results may differ materially from the estimates. The condensed consolidated results of operations for the six month period ended June 30, 2018 are not necessarily indicative of the results to be expected for any future interim or annual period. Certain prior period amounts have been reclassified to conform to the current period presentation. Accounting standards require the Company to present non-controlling interests as a separate component of stockholders' equity on the Company's condensed consolidated balance sheet. As of June 30, 2018 , the Company owned 83.68% of OMHHF and the non-controlling interest recorded on the condensed consolidated balance sheet was $349,000 . |
Revenues from contracts with cu
Revenues from contracts with customers Revenues from contracts with customers | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from contracts with customers | Revenues from contracts with customers In the first quarter of 2018, the Company adopted ASU 2014-09, "Revenue from Contracts with Customers." The Company has elected the modified retrospective method which did not result in a cumulative-effect adjustment at the date of adoption. The implementation of this new standard had no material impact on the Company's condensed consolidated financial statements for the three and six months ended June 30, 2018 . Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised goods or services to customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, the Company considers the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of the Company's influence, such as market volatility or the judgment and actions of third parties. The Company earns revenue from contracts with customers and other sources (principal transactions, interest and other). The following provides detailed information on the recognition of the Company's revenue from contracts with customers: Commissions Commissions from Sales and Trading — The Company earns commission revenue by executing, settling and clearing transactions with clients primarily in exchange-traded and over-the-counter corporate equity and debt securities, money market instruments and exchange-traded options and futures contracts. A substantial portion of Company's revenue is derived from commissions from private clients through accounts with transaction-based pricing. Trade execution and clearing services, when provided together, represent a single performance obligation as the services are not separately identifiable in the context of the contract. Commission revenue associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, is recognized at a point in time on trade date when the performance obligation is satisfied. Commission revenue is generally paid on settlement date, which is generally two business days after trade date for equity securities and corporate bond transactions and one day for government securities and commodities transactions. The Company records a receivable on the trade date and receives a payment on settlement date. Mutual Fund Income — The Company earns mutual fund income for sales and distribution of mutual fund shares. Many mutual fund companies pay distribution fees to intermediaries, such as broker-dealers, for selling their shares. The fees are operational expenses of the mutual fund and are included in its expense ratio. The Company recognizes mutual fund income at a point in time on trade date when the performance obligation is satisfied which is when the mutual fund interest is sold to the investor. Mutual fund income is generally received within 90 days. Advisory Fees The Company earns management and performance (or incentive) fees in connection with the advisory and asset management services it provides to various types of funds and investment vehicles through its subsidiaries. Management fees are generally based on the account value at the valuation date per the respective asset management agreements and are recognized over time as the customer receives the benefits of the services evenly throughout the term of the contract. Performance fees are recognized when the return on client assets under management ("AUM") exceeds a specified benchmark return or other performance targets over a 12-month measurement period. Performance fees are considered variable as they are subject to fluctuation and/or are contingent on a future event over the measurement period and are not subject to adjustment once the measurement period ends. Such fees are computed as of the fund's year-end when the measurement period ends and generally are recorded as earned in the fourth quarter of the Company's fiscal year. Both management and performance fees are generally received within 90 days. Investment Banking The Company earns underwriting revenues by providing capital raising solutions for corporate clients through initial public offerings, follow-on offerings, equity-linked offerings, private investments in public entities, and private placements. Underwriting revenues are recognized at a point in time on trade date, as the client obtains the control and benefit of the capital markets offering at that point. These fees are generally received within 90 days after the transactions are completed. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenue. Underwriting revenues and related expenses are presented gross on the condensed consolidated statement of operations. Revenue from financial advisory services includes fees generated in connection with mergers, acquisitions and restructuring transactions and such revenue and fees are primarily recorded at a point in time when services for the transactions are completed and income is reasonably determinable, generally as set forth under the terms of the engagement. Payment for advisory services is generally due upon a completion of the transaction or milestone. Retainer fees and fees earned from certain advisory services are recognized ratably over the service period as the customer receives the benefit of the services throughout the term of the contracts, and such fees are collected based on the terms of the contracts. Bank Deposit Sweep Income Bank deposit sweep income consists of revenue earned from the FDIC-insured bank deposit program. Under this program, client funds are swept into deposit accounts at participating banks and are eligible for FDIC deposit insurance up to FDIC standard maximum deposit insurance amounts. Fees are earned over time and are generally received within 30 days. Disaggregation of Revenue The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the three and six months ended June 30, 2018 : (Expressed in thousands) For the Three Months Ended June 30, 2018 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 39,093 $ — $ 33,022 $ 62 $ 72,177 Mutual fund income 10,441 222 5 5 10,673 Advisory fees 59,774 17,485 3 8 77,270 Investment banking - capital markets 3,469 — 16,196 — 19,665 Investment banking - advisory — — 8,239 — 8,239 Bank deposit sweep income 28,853 — — — 28,853 Other 3,430 3 457 (47 ) 3,843 Total revenues from contracts with customers 145,060 17,710 57,922 28 220,720 Other sources of revenue: Interest 9,514 (4 ) 3,263 283 13,056 Principal transactions, net 212 — 6,989 (801 ) 6,400 Other 1,767 — 32 581 2,380 Total other sources of revenue 11,493 (4 ) 10,284 63 21,836 Total revenue $ 156,553 $ 17,706 $ 68,206 $ 91 $ 242,556 (Expressed in thousands) For the Six Months Ended June 30, 2018 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 79,371 $ — $ 65,019 $ 77 $ 144,467 Mutual fund income 21,268 505 7 10 21,790 Advisory fees 119,910 34,838 54 16 154,818 Investment banking - capital markets 7,839 — 30,592 — 38,431 Investment banking - advisory — — 17,683 — 17,683 Bank deposit sweep income 54,150 — — — 54,150 Other 7,705 6 432 (46 ) 8,097 Total revenues from contracts with customers 290,243 35,349 113,787 57 439,436 Other sources of revenue: Interest 18,351 1 6,468 463 25,283 Principal transactions, net 132 — 9,381 (387 ) 9,126 Other 1,921 — 99 1,221 3,241 Total other sources of revenue 20,404 1 15,948 1,297 37,650 Total revenue $ 310,647 $ 35,350 $ 129,735 $ 1,354 $ 477,086 Contract Balances The timing of the Company's revenue recognition may differ from the timing of payment by its customers. The Company records receivables when revenue is recognized prior to payment and it has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company had receivables related to revenue from contracts with customers of $22.3 million and $18.6 million at June 30, 2018 and January 1, 2018, respectively. The Company had no significant impairments related to these receivables during the three and six months ended June 30, 2018 . Deferred revenue primarily relates to IRA fees received annually in advance on customer's IRA accounts managed by the Company where the performance obligation has not yet been satisfied. Total deferred revenue was $2.0 million and $ nil at June 30, 2018 and January 1, 2018, respectively. The following presents the Company's contract assets and deferred revenue balances from contracts with customers, which are included in other assets and other liabilities, respectively, on the condensed consolidated balance sheet: (Expressed in thousands) Ending Balance at June 30, 2018 Opening Balance at January 1, 2018 Contract assets (receivables): Commission (1) $ 3,059 $ 2,007 Mutual fund income (2) 7,308 7,779 Advisory fees (3) 750 1,460 Bank deposit sweep income (4) 3,874 3,459 Investment banking fees (5) 4,683 3,926 Other 2,661 — Total contract assets $ 22,335 $ 18,631 Deferred revenue (payables): Investment banking fees $ 450 $ — IRA fees 1,515 — Total deferred revenue $ 1,965 $ — (1) Commission recorded on trade date but not yet settled. (2) Mutual fund income earned but not yet received. (3) Management and performance fees earned but not yet received. (4) Fees earned from FDIC-insured bank deposit program but not yet received. (5) Underwriting revenue and advisory fee earned but not yet received. Contract Costs The Company incurs incremental transaction-related costs to obtain and/or fulfill contracts associated with investment banking and advisory engagements where the revenue is recognized at a point in time and the costs are determined to be recoverable. As of June 30, 2018 , the contract costs were $1.6 million . There were no significant charges recognized in relation to these costs for the six months ended June 30, 2018 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per share Basic earnings per share is computed by dividing net income attributable to Oppenheimer Holdings Inc. by the weighted average number of shares of Class A non-voting common stock ("Class A Stock") and Class B voting common stock ("Class B Stock") outstanding. Diluted earnings per share includes the weighted average number of shares of Class A Stock and Class B Stock outstanding and options to purchase Class A Stock and unvested restricted stock awards of Class A Stock using the treasury stock method. Earnings per share have been calculated as follows: (Expressed in thousands, except number of shares and per share amounts) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Basic weighted average number of shares outstanding 13,248,812 13,260,855 13,244,245 13,329,670 Net dilutive effect of share-based awards, treasury method (1) 801,761 — 761,311 — Diluted weighted average number of shares outstanding 14,050,573 13,260,855 14,005,556 13,329,670 Net income (loss) from continuing operations $ 8,839 $ (1,363 ) $ 15,548 $ (6,701 ) Net income from discontinued operations — 53 — 640 Net income (loss) 8,839 (1,310 ) 15,548 (6,061 ) Less net income (loss) attributable to non-controlling interest, net of tax (16 ) 9 (12 ) 105 Net income (loss) attributable to Oppenheimer Holdings Inc. $ 8,855 $ (1,319 ) $ 15,560 $ (6,166 ) Basic net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.67 $ (0.10 ) $ 1.17 $ (0.50 ) Discontinued operations (2) — — — 0.04 Net income (loss) per share $ 0.67 $ (0.10 ) $ 1.17 $ (0.46 ) Diluted net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.63 $ (0.10 ) $ 1.11 $ (0.50 ) Discontinued operations (2) — — — 0.04 Net income (loss) per share $ 0.63 $ (0.10 ) $ 1.11 $ (0.46 ) (1) For both the three and six months ended June 30, 2018 , the diluted net income (loss) per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements ( 1,336,424 shares for both the three and six months ended June 30, 2017 ). (2) Represents net income from discontinued operations less net income attributable to non-controlling interest, net of tax divided by weighted average number of shares outstanding. |
Receivable From and Payable to
Receivable From and Payable to Brokers, Dealers and Clearing Organizations | 6 Months Ended |
Jun. 30, 2018 | |
Brokers and Dealers [Abstract] | |
Receivable From and Payable to Brokers, Dealers and Clearing Organizations | Receivable from and payable to brokers, dealers and clearing organizations (Expressed in thousands) As of June 30, 2018 December 31, 2017 Receivable from brokers, dealers and clearing organizations consists of: Securities borrowed $ 122,238 $ 132,368 Receivable from brokers 31,962 19,298 Securities failed to deliver 24,227 9,442 Clearing organizations 23,459 24,361 Other 2,641 1,646 Total $ 204,527 $ 187,115 Payable to brokers, dealers and clearing organizations consists of: Securities loaned $ 199,598 $ 180,270 Payable to brokers 18,984 1,567 Securities failed to receive 16,894 17,559 Other 47,066 12,087 Total $ 282,542 $ 211,483 |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements Securities owned, securities sold but not yet purchased, investments and derivative contracts are carried at fair value with changes in fair value recognized in earnings each period. Valuation Techniques A description of the valuation techniques applied and inputs used in measuring the fair value of the Company's financial instruments is as follows: U.S. Government Obligations U.S. Treasury securities are valued using quoted market prices obtained from active market makers and inter-dealer brokers. U.S. Agency Obligations U.S. agency securities consist of agency issued debt securities and mortgage pass-through securities. Non-callable agency issued debt securities are generally valued using quoted market prices. Callable agency issued debt securities are valued by benchmarking model-derived prices to quoted market prices and trade data for identical or comparable securities. The fair value of mortgage pass-through securities are model driven with respect to spreads of the comparable to-be-announced ("TBA") security. Sovereign Obligations The fair value of sovereign obligations is determined based on quoted market prices when available or a valuation model that generally utilizes interest rate yield curves and credit spreads as inputs. Corporate Debt and Other Obligations The fair value of corporate bonds is estimated using recent transactions, broker quotations and bond spread information. Mortgage and Other Asset-Backed Securities The Company values non-agency securities collateralized by home equity and various other types of collateral based on external pricing and spread data provided by independent pricing services. When specific external pricing is not observable, the valuation is based on yields and spreads for comparable bonds. Municipal Obligations The fair value of municipal obligations is estimated using recently executed transactions, broker quotations, and bond spread information. Convertible Bonds The fair value of convertible bonds is estimated using recently executed transactions and dollar-neutral price quotations, where observable. When observable price quotations are not available, fair value is determined based on cash flow models using yield curves and bond spreads as key inputs. Corporate Equities Equity securities and options are generally valued based on quoted prices from the exchange or market where traded. To the extent quoted prices are not available, fair values are generally derived using bid/ask spreads. Auction Rate Securities ("ARS") In February 2010, Oppenheimer finalized settlements with each of the New York Attorney General's office ("NYAG") and the Massachusetts Securities Division ("MSD" and, together with the NYAG, the "Regulators") concluding investigations and administrative proceedings by the Regulators concerning Oppenheimer's marketing and sale of ARS. Pursuant to the settlements with the Regulators, Oppenheimer agreed to extend offers to repurchase ARS from certain of its clients subject to certain terms and conditions more fully described below. As of June 30, 2018 , the Company had $5.0 million in outstanding ARS purchase commitments related to the settlements with the Regulators. In addition to the settlements with the Regulators, Oppenheimer has also reached settlements of and received adverse awards in legal proceedings with various clients where the Company is obligated to purchase ARS. Pursuant to completed Purchase Offers (as defined) under the settlements with the Regulators and client-related legal settlements and awards to purchase ARS, as of June 30, 2018 , the Company purchased and holds (net of redemptions) approximately $92.3 million in ARS from its clients. In addition, the Company is committed to purchase another $7.2 million in ARS from clients through 2020 under legal settlements and awards. The ARS positions that the Company owns and is committed to purchase primarily represent auction rate preferred securities issued by closed-end funds and, to a lesser extent, municipal auction rate securities that are municipal bonds wrapped by municipal bond insurance and student loan auction rate securities that are asset-backed securities backed by student loans. Interest rates on ARS typically reset through periodic auctions. Due to the auction mechanism and generally liquid markets, ARS have historically been classified as Level 1 of the fair value hierarchy. Beginning in February 2008, uncertainties in the credit markets resulted in substantially all of the ARS market experiencing failed auctions. Once the auctions failed, the ARS could no longer be valued using observable prices set in the auctions. The Company has used less observable determinants of the fair value of ARS, including the strength in the underlying credits, announced issuer redemptions, completed issuer redemptions, and announcements from issuers regarding their intentions with respect to their outstanding ARS. The Company has also developed an internal methodology to discount for the lack of liquidity and non-performance risk of the failed auctions. Due to liquidity problems associated with the ARS market, ARS that lack liquidity are setting their interest rates according to a maximum rate formula. For example, an auction rate preferred security maximum rate may be set at 200% of a short-term index such as LIBOR or U.S. Treasury yield. For fair value purposes, the Company has determined that the maximum spread would be an adequate risk premium to account for illiquidity in the market. Accordingly, the Company applies a spread to the short-term index for each asset class to derive the discount rate. The Company uses short-term U.S. Treasury yields as its benchmark short-term index. The risk of non-performance is typically reflected in the prices of ARS positions where the fair value is derived from recent trades in the secondary market. The ARS purchase commitment, or derivative asset or liability, arises from both the settlements with the Regulators and legal settlements and awards. The ARS purchase commitment represents the difference between the principal value and the fair value of the ARS the Company is committed to purchase. The Company utilizes the same valuation methodology for the ARS purchase commitment as it does for the ARS it owns. Additionally, the present value of the future principal value of ARS purchase commitments under legal settlements and awards is used in the discounted valuation model to reflect the time value of money over the period of time that the commitments are outstanding. The amount of the ARS purchase commitment only becomes determinable once the Company has met with its primary regulator and the NYAG and agreed upon a buyback amount, commenced the ARS buyback offer to clients, and received notice from its clients which ARS they are tendering. As a result, it is not possible to observe the current yields actually paid on the ARS until all of these events have happened which is typically very close to the time that the Company actually purchases the ARS. For ARS purchase commitments pursuant to legal settlements and awards, the criteria for purchasing ARS from clients is based on the nature of the settlement or award which will stipulate a time period and amount for each repurchase. The Company will not know which ARS will be tendered by the client until the stipulated time for repurchase is reached. Therefore, the Company uses the current yields of ARS owned in its discounted valuation model to determine a fair value of ARS purchase commitments. The Company also uses these current yields by asset class (i.e., auction rate preferred securities, municipal auction rate securities, and student loan auction rate securities) in its discounted valuation model to determine the fair value of ARS purchase commitments. In addition, the Company uses the discount rate and duration of ARS owned, by asset class, as a proxy for the duration of ARS purchase commitments. Additional information regarding the valuation technique and inputs for ARS used is as follows: (Expressed in thousands) Quantitative Information about ARS Level 3 Fair Value Measurements as of June 30, 2018 Product Principal Valuation Adjustment Fair Value Valuation Technique Unobservable Input Range Weighted Average Auction Rate Securities Owned (1) Auction Rate Preferred Securities $ 73,275 $ 941 $ 72,334 Discounted Cash Flow Discount Rate (2) 2.83% to 3.86% 3.22% Duration 2.5 Years 2.5 Years Current Yield (3) 2.36% to 3.21% 2.68% Auction Rate Preferred Securities 18,725 1,123 17,602 Tender Offer (4) N/A N/A N/A Municipal Auction Rate Securities 25 — 25 Par N/A N/A N/A Student Loan Auction Rate Securities 275 13 262 Discounted Cash Flow Discount Rate (5) 3.96% 3.96% Duration 5.5 Years 5.5 Years Current Yield (3) 2.95% 2.95% $ 92,300 $ 2,077 $ 90,223 Auction Rate Securities Commitments to Purchase (6) Auction Rate Preferred Securities $ 10,620 $ 130 $ 10,490 Discounted Cash Flow Discount Rate (2) 2.83% to 3.86% 3.22% Duration 2.5 Years 2.5 Years Current Yield (3) 2.36% to 3.21% 2.68% Auction Rate Preferred Securities 1,515 91 1,424 Tender Offer (4) N/A N/A N/A Municipal Auction Rate Securities 2 — 2 Par N/A N/A N/A Student Loan Auction Rate Securities 25 1 24 Discounted Cash Flow Discount Rate (5) 3.96% 3.96% Duration 5.5 Years 5.5 Years Current Yield (3) 2.95% 2.95% $ 12,162 $ 222 $ 11,940 Total $ 104,462 $ 2,299 $ 102,163 (1) Principal amount represents the par value of the ARS and is included in securities owned on the condensed consolidated balance sheet as of June 30, 2018 . The valuation adjustment amount is included as a reduction to securities owned on the condensed consolidated balance sheet as of June 30, 2018 . (2) Derived by applying a multiple to a spread between 110% to 150% to the U.S. Treasury rate of 2.58% . (3) Based on current yields for ARS positions owned. (4) ARS issuer announced tender offer at 94% of par. Included in Level 2 of the fair value hierarchy. (5) Derived by applying the sum of the spread of 1.20% to the U.S. Treasury rate of 2.76% . (6) Principal amount represents the present value of the ARS par value that the Company is committed to purchase at a future date. This principal amount is presented as an off-balance sheet item. The valuation adjustment amount is included in accounts payable and other liabilities on the condensed consolidated balance sheet as of June 30, 2018 . The fair value of ARS and ARS purchase commitments is particularly sensitive to movements in interest rates. Increases in short-term interest rates would increase the discount rate input used in the ARS valuation and thus reduce the fair value of the ARS (increase the valuation adjustment). Conversely, decreases in short-term interest rates would decrease the discount rate and thus increase the fair value of ARS (decrease the valuation adjustment). However, an increase (decrease) in the discount rate input would be partially mitigated by an increase (decrease) in the current yield earned on the underlying ARS asset increasing the cash flows and thus the fair value. Furthermore, movements in short term interest rates would likely impact the ARS duration (i.e., sensitivity of the price to a change in interest rates), which would also have a mitigating effect on interest rate movements. For example, as interest rates increase, issuers of ARS have an incentive to redeem outstanding securities as servicing the interest payments gets prohibitively expensive which would lower the duration assumption thereby increasing the ARS fair value. Alternatively, ARS issuers are less likely to redeem ARS in a lower interest rate environment as it is a relatively inexpensive source of financing which would increase the duration assumption thereby decreasing the ARS fair value. For example, see the following sensitivities: • The impact of a 25 basis point increase in the discount rate at June 30, 2018 would result in a decrease in the fair value of $493,000 (does not consider a corresponding reduction in duration as discussed above). • The impact of a 50 basis point increase in the discount rate at June 30, 2018 would result in a decrease in the fair value of $982,000 (does not consider a corresponding reduction in duration as discussed above). These sensitivities are hypothetical and are based on scenarios where they are "stressed" and should be used with caution. These estimates do not include all of the interplay among assumptions and are estimated as a portfolio rather than as individual assets. Due to the less observable nature of these inputs, ARS are primarily categorized in Level 3 of the fair value hierarchy. As of June 30, 2018 , the Company had a valuation adjustment (unrealized loss) of $2.1 million for ARS owned which is included as a reduction to securities owned on the condensed consolidated balance sheet. As of June 30, 2018 , the Company also had a valuation adjustment of $222,000 on ARS purchase commitments from settlements with the Regulators and legal settlements and awards, which is included in accounts payable and other liabilities on the condensed consolidated balance sheet. The total valuation adjustment was $2.3 million as of June 30, 2018 . The valuation adjustment represents the difference between the principal value and the fair value of the ARS owned and ARS purchase commitments. Investments In its role as general partner in certain hedge funds and private equity funds, the Company, through its subsidiaries, holds direct investments in such funds. The Company uses the net asset value of the underlying fund as a basis for estimating the fair value of its investment. The following table provides information about the Company's investments in Company-sponsored funds as of June 30, 2018 : (Expressed in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Hedge funds (1) $ 2,624 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 5,008 1,400 N/A N/A $ 7,632 $ 1,400 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. Each hedge fund has various restrictions regarding redemption; no investment is locked-up for a period greater than one year. (2) Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources. Due to the illiquid nature of these funds, investors are not permitted to make withdrawals without the consent of the general partner. The lock-up period of the private equity funds can extend to 10 years. Valuation Process The Company's Finance & Accounting ("F&A") group is responsible for the Company's fair value policies, processes and procedures. F&A is independent from the business units and trading desks and is headed by the Company's Chief Financial Officer ("CFO"), who has final authority over the valuation of the Company's financial instruments. The Finance Control Group ("FCG") within F&A is responsible for daily profit and loss reporting, front-end trading system position reconciliations, monthly profit and loss reporting, and independent price verification procedures. For financial instruments categorized in Levels 1 and 2 of the fair value hierarchy, the FCG performs a monthly independent price verification to determine the reasonableness of the prices provided by the Company's independent pricing vendor. The FCG uses its third-party pricing vendor, executed transactions, and broker-dealer quotes for validating the fair values of financial instruments. For financial instruments categorized in Level 3 of the fair value hierarchy measured on a recurring basis, primarily for ARS, a group comprised of the CFO, the Controller, and an Operations Director are responsible for the ARS valuation model and resulting fair valuations. Procedures performed include aggregating all ARS owned by type from firm inventory accounts and ARS purchase commitments from regulatory and legal settlements and awards provided by the Legal Department. Observable and unobservable inputs are aggregated from various sources and entered into the ARS valuation model. For unobservable inputs, the group reviews the appropriateness of the inputs to ensure consistency with how a market participant would arrive at the unobservable input. For example, for the duration assumption, the group would consider recent policy statements regarding short-term interest rates by the Federal Reserve and recent ARS issuer redemptions and announcements for future redemptions. The model output is reviewed for reasonableness and consistency. Where available, comparisons are performed between ARS owned or committed to purchase with ARS that are trading in the secondary market. Assets and Liabilities Measured at Fair Value The Company's assets and liabilities, recorded at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 , have been categorized based upon the above fair value hierarchy as follows: Assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 (Expressed in thousands) Fair Value Measurements as of June 30, 2018 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,500 $ — $ — $ 10,500 Deposits with clearing organizations 31,135 — — 31,135 Securities owned: U.S. Treasury securities 690,988 — — 690,988 U.S. Agency securities 8,541 7,906 — 16,447 Sovereign obligations — 204 — 204 Corporate debt and other obligations — 24,813 — 24,813 Mortgage and other asset-backed securities — 6,870 — 6,870 Municipal obligations — 116,612 — 116,612 Convertible bonds — 41,135 — 41,135 Corporate equities 33,112 — — 33,112 Auction rate securities — 17,602 72,621 90,223 Securities owned, at fair value 732,641 215,142 72,621 1,020,404 Investments (1) — — 164 164 Derivative contracts: TBAs — 2,815 — 2,815 Total $ 774,276 $ 217,957 $ 72,785 $ 1,065,018 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 115,465 $ — $ — $ 115,465 U.S. Agency securities — 6 — 6 Corporate debt and other obligations — 5,289 — 5,289 Mortgage and other asset-backed securities — 6,808 — 6,808 Convertible bonds — 7,496 — 7,496 Corporate equities 26,978 — — 26,978 Securities sold but not yet purchased, at fair value 142,443 19,599 — 162,042 Derivative contracts: Futures 942 — — 942 Foreign exchange forward contracts 5 — — 5 TBAs — 2,715 — 2,715 ARS purchase commitments — 91 131 222 Derivative contracts, total 947 2,806 131 3,884 Total $ 143,390 $ 22,405 $ 131 $ 165,926 (1) Included in other assets on the condensed consolidated balance sheet. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 (Expressed in thousands) Fair Value Measurements as of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,490 $ — $ — $ 10,490 Deposits with clearing organizations 34,293 — — 34,293 Securities owned: U.S. Treasury securities 640,337 — — 640,337 U.S. Agency securities 3,011 6,894 — 9,905 Sovereign obligations — 608 — 608 Corporate debt and other obligations — 12,538 — 12,538 Mortgage and other asset-backed securities — 4,037 — 4,037 Municipal obligations — 89,618 35 89,653 Convertible bonds — 23,216 — 23,216 Corporate equities 34,067 — — 34,067 Money markets 383 — — 383 Auction rate securities — 24,455 87,398 111,853 Securities owned, at fair value 677,798 161,366 87,433 926,597 Investments (1) — — 169 169 Derivative contracts: TBAs — 716 — 716 Total $ 722,581 $ 162,082 $ 87,602 $ 972,265 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 53,425 $ — $ — $ 53,425 U.S. Agency securities — 13 — 13 Sovereign obligations — 1,179 — 1,179 Corporate debt and other obligations — 4,357 — 4,357 Mortgage and other asset-backed securities — 10 — 10 Convertible bonds — 10,109 — 10,109 Corporate equities 25,393 — — 25,393 Securities sold but not yet purchased, at fair value 78,818 15,668 — 94,486 Derivative contracts: Futures 766 — — 766 TBAs — 614 — 614 ARS purchase commitments — — 8 8 Derivative contracts, total 766 614 8 1,388 Total $ 79,584 $ 16,282 $ 8 $ 95,874 (1) Included in other assets on the condensed consolidated balance sheet. During the three and six months ended June 30, 2018, the Company transferred $17.6 million and $91,000 in ARS and ARS purchase commitments, respectively, from Level 3 to Level 2 of the fair value hierarchy due to tender offer announcements by issuer of auction rate preferred securities. There were no transfers between any of the levels during the three and six months ended June 30, 2017. The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended June 30, 2018 and 2017 : (Expressed in thousands) Level 3 Assets and Liabilities For the Three Months Ended June 30, 2018 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Auction rate securities (1) $ 87,350 $ (902 ) $ 4,050 $ (275 ) $ (17,602 ) $ 72,621 Investments 168 (4 ) — — — 164 Liabilities ARS purchase commitments (2) 183 (39 ) — — 91 131 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. (Expressed in thousands) Level 3 Assets and Liabilities For the Three Months Ended June 30, 2017 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 36 $ — $ — $ — $ — $ 36 Auction rate securities (1) 89,743 502 17,050 (125 ) — 107,170 Investments 164 4 — — — 168 ARS purchase commitments (2) 878 (878 ) — — — — Liabilities ARS purchase commitments (2) 359 105 — — — 254 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the six months ended June 30, 2018 and 2017 : (Expressed in thousands) Level 3 Assets and Liabilities For the Six Months Ended June 30, 2018 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 35 $ 14 $ 76 $ (125 ) $ — $ — Auction rate securities (1) 87,398 (55 ) 4,100 (1,220 ) (17,602 ) 72,621 Investments 169 (5 ) — — — 164 Liabilities ARS purchase commitments (2) 8 (214 ) — — 91 131 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. (Expressed in thousands) Level 3 Assets and Liabilities For the Six Months Ended June 30, 2017 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 44 $ (8 ) $ — $ — $ — $ 36 Auction rate securities (1) 84,926 1,144 22,050 (950 ) — 107,170 Investments 158 10 — — — 168 ARS purchase commitments (2) 849 (849 ) — — — — Liabilities ARS purchase commitments (2) 645 391 — — — 254 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. Financial Instruments Not Measured at Fair Value The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the condensed consolidated balance sheets. The table below excludes non-financial assets and liabilities (e.g., furniture, equipment and leasehold improvements and accrued compensation). The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 or Level 2 (e.g., cash and receivables from customers) approximates fair value because of the relatively short term nature of the underlying assets. The fair value of the Company's senior secured notes, categorized in Level 2 of the fair value hierarchy, is based on quoted prices from the market in which the notes trade. Assets and liabilities not measured at fair value as of June 30, 2018 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 28,461 $ 28,461 $ — $ — $ 28,461 Deposits with clearing organization 25,729 25,729 — — 25,729 Receivable from brokers, dealers and clearing organizations: Securities borrowed 122,238 — 122,238 — 122,238 Receivables from brokers 31,962 — 31,962 — 31,962 Securities failed to deliver 24,227 — 24,227 — 24,227 Clearing organizations 23,459 — 23,459 — 23,459 Other 1,603 — 1,603 — 1,603 203,489 — 203,489 — 203,489 Receivable from customers 835,708 — 835,708 — 835,708 Securities purchased under agreements to resell 6,738 — 6,738 — 6,738 Notes receivable, net 42,410 — 42,410 — 42,410 Investments (1) 65,601 — 65,601 — 65,601 (1) Included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 21,632 $ 21,632 $ — $ — $ 21,632 Bank call loans 107,500 — 107,500 — 107,500 Payables to brokers, dealers and clearing organizations: Securities loaned 199,598 — 199,598 — 199,598 Payable to brokers 18,984 — 18,984 — 18,984 Securities failed to receive 16,894 — 16,894 — 16,894 Other 45,186 — 45,186 — 45,186 280,662 — 280,662 — 280,662 Payables to customers 373,664 — 373,664 — 373,664 Securities sold under agreements to repurchase 599,151 — 599,151 — 599,151 Senior secured notes 200,000 — 204,174 — 204,174 Assets and liabilities not measured at fair value as of December 31, 2017 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 37,664 $ 37,664 $ — $ — $ 37,664 Deposits with clearing organization 7,929 7,929 — — 7,929 Receivable from brokers, dealers and clearing organizations: Securities borrowed 132,368 — 132,368 — 132,368 Receivables from brokers 19,298 — 19,298 — 19,298 Securities failed to deliver 9,442 — 9,442 — 9,442 Clearing organizations 24,361 — 24,361 — 24,361 Other 930 — 930 — 930 186,399 — 186,399 — 186,399 Receivable from customers 848,226 — 848,226 — 848,226 Securities purchased under agreements to resell 658 — 658 — 658 Notes receivable, net 40,520 — 40,520 — 40,520 Investments (1) 65,404 — 65,404 — 65,404 (1) Included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 42,212 $ 42,212 $ — $ — $ 42,212 Bank call loans 118,300 — 118,300 — 118,300 Payables to brokers, dealers and clearing organizations: Securities loaned 180,270 — 180,270 — 180,270 Payable to brokers 1,567 — 1,567 — 1,567 Securities failed to receive 17,559 — 17,559 — 17,559 Other 10,707 — 10,707 — 10,707 210,103 — 210,103 — 210,103 Payables to customers 385,907 — 385,907 — 385,907 Securities sold under agreements to repurchase 586,478 — 586,478 — 586,478 Senior secured notes 200,000 — 206,380 — 206,380 Fair Value Option The Company elected the fair value option for securities sold under agreements to repurchase ("repurchase agreements") and securities purchased under agreements to resell ("reverse repurchase agreements") that do not settle overnight or have an open settlement date. The Company has elected the fair value option for these instruments to reflect more accurately market and economic events in its earnings and to mitigate a potential mismatch in earnings caused by using different measurement attributes (i.e. fair value versus carrying value) for certain assets and liabilities. As of June 30, 2018 , the Company did not have any repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date. Derivative Instruments and Hedging Activities The Company transacts, on a limited basis, in exchange traded and over-the-counter derivatives for both asset and liability management as well as for trading and investment purposes. Risks managed using derivative instruments include interest rate risk and, to a lesser extent, foreign exchange risk. All derivative instruments are measured at fair value and are recognized as either assets or liabilities on the condensed consolidated balance sheet. Foreign exchange hedges From time to time, the Company also utilizes forward and options contracts to hedge the foreign currency risk associated with compensation obligations to Oppenheimer Israel (OPCO) Ltd. employees denominated in New Israeli Shekel ("NIS"). Such hedges have not been designated as accounting hedges. Unrealized gains and losses on foreign exchange forward contracts are recorded in other assets on the condensed consolidated balance sheet and other income in the condensed consolidated statement of operations. Derivatives used for trading and investment purposes Futures contracts represent commitments to purchase or sell securities or other commodities at a future date and at a specified price. Market risk exists with respect to these instruments. Notional or contractual amounts are used to express the volume of these transactions and do not represent the amounts potentially subject to market risk. The Company uses futures contracts, including U.S. Treasury notes, Federal Funds, General Collateral futures and Eurodollar contracts primarily as an economic hedge of interest rate risk associated with government trading activities. Unrealized gains and losses on futures contracts are recorded on the condensed consolidated balance sheet in payable to brokers, dealers and clearing organizations and in the condensed consolidated statement of operations as principal transactions revenue, net. To-be-announced securities The Company also transacts in pass-through mortgage-backed securities eligible to be sold in the TBA market as economic hedges against mortgage-backed securities that it owns or has sold but not yet purchased. TBAs provide for the forward or delayed delivery of the underlying instrument with settlement up to 180 days. The contractual or notional amounts related to these financial instruments reflect the volume of activity and do not reflect the amounts at risk. Net unrealized gains and losses on TBAs are recorded on the condensed consolidated balance sheet in receivable from brokers, dealers and clearing organizations or payable to brokers, dealers and clearing organizations and in the condensed consolidated statement of operations a |
Collateralized Transactions
Collateralized Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Brokers and Dealers [Abstract] | |
Collateralized Transactions | Collateralized transactions The Company enters into collateralized borrowing and lending transactions in order to meet customers' needs and earn interest rate spreads, obtain securities for settlement and finance trading inventory positions. Under these transactions, the Company either receives or provides collateral, including U.S. Government and Agency, asset-backed, corporate debt, equity, and non-U.S. Government and Agency securities. The Company obtains short-term borrowings primarily through bank call loans. Bank call loans are generally payable on demand and bear interest at various rates but not exceeding the broker call rate. As of June 30, 2018 , bank call loans were $107.5 million ( $118.3 million as of December 31, 2017 ). As of June 30, 2018 , such loans were collateralized by firm and customer securities with market values of approximately $93.2 million and $442.6 million , respectively, with commercial banks. As of June 30, 2018 , the Company had approximately $1.1 billion of customer securities under customer margin loans that are available to be pledged, of which the Company has re-pledged approximately $161.2 million under securities loan agreements. As of June 30, 2018 , the Company had pledged $364.7 million of customer securities directly with the Options Clearing Corporation to secure obligations and margin requirements under option contracts written by customers. As of June 30, 2018 , the Company had no outstanding letters of credit. The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to cover short positions and settle other securities obligations, to accommodate customers' needs and to finance the Company's inventory positions. Except as described below, repurchase and reverse repurchase agreements, principally involving U.S. Government and Agency securities, are carried at amounts at which the securities subsequently will be resold or reacquired as specified in the respective agreements and include accrued interest. Repurchase agreements and reverse repurchase agreements are presented on a net-by-counterparty basis, when the repurchase agreements and reverse repurchase agreements are executed with the same counterparty, have the same explicit settlement date, are executed in accordance with a master netting arrangement, the securities underlying the repurchase agreements and reverse repurchase agreements exist in "book entry" form and certain other requirements are met. The following table presents a disaggregation of the gross obligation by the class of collateral pledged and the remaining contractual maturity of the repurchase agreements and securities loaned transactions as of June 30, 2018 : (Expressed in thousands) Overnight and Open Repurchase agreements: U.S. Government and Agency securities $ 694,162 Securities loaned: Equity securities 199,598 Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 893,760 The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of June 30, 2018 and December 31, 2017 : As of June 30, 2018 (Expressed in thousands) Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset on the Balance Sheet Net Amounts of Assets Presented on the Balance Sheet Financial Instruments Cash Collateral Received Net Amount Reverse repurchase agreements $ 101,749 $ (95,011 ) $ 6,738 $ (6,431 ) $ — $ 307 Securities borrowed (1) 122,238 — 122,238 (117,374 ) — 4,864 Total $ 223,987 $ (95,011 ) $ 128,976 $ (123,805 ) $ — $ 5,171 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amounts of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount Repurchase agreements $ 694,162 $ (95,011 ) $ 599,151 $ (597,168 ) $ — $ 1,983 Securities loaned (2) 199,598 — 199,598 (188,954 ) — 10,644 Total $ 893,760 $ (95,011 ) $ 798,749 $ (786,122 ) $ — $ 12,627 (2) Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. As of December 31, 2017 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 200,712 $ (200,054 ) $ 658 $ — $ — $ 658 Securities borrowed (1) 132,368 — 132,368 (128,575 ) — 3,793 Total $ 333,080 $ (200,054 ) $ 133,026 $ (128,575 ) $ — $ 4,451 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amounts of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount Repurchase agreements $ 786,532 $ (200,054 ) $ 586,478 $ (585,289 ) $ — $ 1,189 Securities loaned (2) 180,270 — 180,270 (170,176 ) — 10,094 Total $ 966,802 $ (200,054 ) $ 766,748 $ (755,465 ) $ — $ 11,283 (2) Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Certain of the Company's repurchase agreements and reverse repurchase agreements are carried at fair value as a result of the Company's fair value option election. The Company elected the fair value option for those repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date. As of June 30, 2018 , the Company did not have any repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date. The Company receives collateral in connection with securities borrowed and reverse repurchase agreement transactions and customer margin loans. Under many agreements, the Company is permitted to sell or re-pledge the securities received (e.g., use the securities to enter into securities lending transactions, or deliver to counterparties to cover short positions). As of June 30, 2018 , the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $118.2 million ( $127.2 million as of December 31, 2017 ) and $95.1 million ( $221.6 million as of December 31, 2017 ), respectively, of which the Company has sold and re-pledged approximately $26.6 million ( $30.9 million as of December 31, 2017 ) under securities loaned transactions and $95.1 million under repurchase agreements ( $221.6 million as of December 31, 2017 ). The Company pledges certain of its securities owned for securities lending and repurchase agreements and to collateralize bank call loan transactions. The carrying value of pledged securities owned that can be sold or re-pledged by the counterparty was $692.3 million , as presented on the face of the condensed consolidated balance sheet as of June 30, 2018 ( $655.7 million as of December 31, 2017 ). The carrying value of securities owned by the Company that have been loaned or pledged to counterparties where those counterparties do not have the right to sell or re-pledge the collateral was $92.8 million as of June 30, 2018 ( $97.2 million as of December 31, 2017 ). The Company manages credit exposure arising from repurchase and reverse repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Company, in the event of a customer default, the right to liquidate securities and the right to offset a counterparty's rights and obligations. The Company manages market risk of repurchase agreements and securities loaned by monitoring the market value of collateral held and the market value of securities receivable from others. It is the Company's policy to request and obtain additional collateral when exposure to loss exists. In the event the counterparty is unable to meet its contractual obligation to return the securities, the Company may be exposed to off-balance sheet risk of acquiring securities at prevailing market prices. Credit Concentrations Credit concentrations may arise from trading, investing, underwriting and financing activities and may be impacted by changes in economic, industry or political factors. In the normal course of business, the Company may be exposed to credit risk in the event customers, counterparties including other brokers and dealers, issuers, banks, depositories or clearing organizations are unable to fulfill their contractual obligations. The Company seeks to mitigate these risks by actively monitoring exposures and obtaining collateral as deemed appropriate. Included in receivable from brokers, dealers and clearing organizations as of June 30, 2018 are receivables from four major U.S. broker-dealers totaling approximately $77.2 million . The Company is obligated to settle transactions with brokers and other financial institutions even if its clients fail to meet their obligations to the Company. Clients are required to complete their transactions on the settlement date, generally one to two business days after the trade date. If clients do not fulfill their contractual obligations, the Company may incur losses. The Company has clearing/participating arrangements with the National Securities Clearing Corporation, the Fixed Income Clearing Corporation ("FICC"), R.J. O'Brien & Associates (commodities transactions), Mortgage-Backed Securities Division (a division of FICC) and others. With respect to its business in reverse repurchase and repurchase agreements, substantially all open contracts as of June 30, 2018 are with the FICC . In addition, the Company clears its non-U.S. international equities business carried on by Oppenheimer Europe Ltd. through Global Prime Partners, Ltd. The clearing organizations have the right to charge the Company for losses that result from a client's failure to fulfill its contractual obligations. Accordingly, the Company has credit exposures with these clearing brokers. The clearing brokers can re-hypothecate the securities held on behalf of the Company. As the right to charge the Company has no maximum amount and applies to all trades executed through the clearing brokers, the Company believes there is no maximum amount assignable to this right. As of June 30, 2018 , the Company had recorded no liabilities with regard to this right. The Company's policy is to monitor the credit standing of the clearing brokers and banks with which it conducts business. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2018 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entities | Variable interest entities ("VIEs") The Company's policy is to consolidate all subsidiaries in which it has a controlling financial interest, as well as any VIEs where the Company is deemed to be the primary beneficiary, when it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE. For funds that the Company has concluded are not VIEs, the Company then evaluates whether the fund is a partnership or similar entity. If the fund is a partnership or similar entity, the Company evaluates the fund under the partnership consolidation guidance. Pursuant to that guidance, the Company consolidates funds in which it is the general partner, unless presumption of control by the Company can be overcome. This presumption is overcome only when unrelated investors in the fund have the substantive ability to liquidate the fund or otherwise remove the Company as the general partner without cause, based on a simple majority vote of unaffiliated investors, or have other substantive participating rights. If the presumption of control can be overcome, the Company accounts for its interest in the fund pursuant to the equity method of accounting. The Company serves as general partner of hedge funds and private equity funds that were established for the purpose of providing investment alternatives to both its institutional and qualified retail clients. The Company holds variable interests in these funds as a result of its right to receive management and incentive fees. The Company's investment in and additional capital commitments to these hedge funds and private equity funds are also considered variable interests. The Company's additional capital commitments are subject to call at a later date and are limited to the amount committed. The Company assesses whether it is the primary beneficiary of the hedge funds and private equity funds in which it holds a variable interest in the form of general and limited partner interests. In each instance, the Company has determined that it is not the primary beneficiary and therefore need not consolidate the hedge funds or private equity funds. The subsidiaries' general and limited partnership interests, additional capital commitments, and management fees receivable represent its maximum exposure to loss. The subsidiaries' general partnership and limited partnership interests and management fees receivable are included in other assets on the condensed consolidated balance sheet. The following tables set forth the total VIE assets, the carrying value of the subsidiaries' variable interests, and the Company's maximum exposure to loss in Company-sponsored non-consolidated VIEs in which the Company holds variable interests and other non-consolidated VIEs in which the Company holds variable interests as of June 30, 2018 and December 31, 2017 : (Expressed in thousands) As of June 30, 2018 Total VIE Assets (1) Carrying Value of the Capital Commitments Maximum Exposure to Loss in Non-consolidated VIEs Assets (2) Liabilities Hedge funds $ 327,974 $ 717 $ — $ — $ 717 Private equity funds 9,108 12 — 1 13 Total $ 337,082 $ 729 $ — $ 1 $ 730 (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (2) Represents the Company's interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) As of December 31, 2017 Total (1) Carrying Value of the Capital Maximum Assets (2) Liabilities Hedge funds $ 328,172 $ 713 $ — $ — $ 713 Private equity funds 15,668 12 — 2 14 Total $ 343,840 $ 725 $ — $ 2 $ 727 (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (2) Represents the Company's interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt (Expressed in thousands) Issued Maturity Date June 30, 2018 December 31, 2017 6.75% Senior Secured Notes 7/1/2022 $ 200,000 $ 200,000 Unamortized Debt Issuance Cost (1,034 ) (1,163 ) $ 198,966 $ 198,837 6.75% Senior Secured Notes On June 23, 2017 , the Parent issued in a private offering $200.0 million aggregate principal amount of 6.75% Senior Secured Notes due 2022 (the "Unregistered Notes") under an indenture at an issue price of 100% of the principal amount. On September 19, 2017, the Parent completed an exchange offer in which the Parent exchanged 99.8% of its Unregistered Notes for a like principal amount of notes with identical terms except that such new notes have been registered under the Securities Act of 1933, as amended (the "Notes"). The Parent did not receive any proceeds in the exchange offer. Interest on the Notes is payable semi-annually on January 1st and July 1st, beginning January 1, 2018. On June 23, 2017, the Parent used a portion of the net proceeds from the offering of the Unregistered Notes to redeem in full its 8.75% Senior Secured Notes due April 15, 2018 (the "Old Notes") in the principal amount of $120.0 million , and pay all related fees and expenses related thereto. The cost to issue the Notes was $4.3 million , of which $3.0 million was paid to its subsidiary, Oppenheimer, who served as the initial purchaser of the offering, and was eliminated in consolidation. The Company capitalized the remaining $1.3 million and will amortize it over the term of the Notes. The indenture governing the Notes contains covenants that place restrictions on the incurrence of indebtedness, the payment of dividends, the repurchase of equity, the sale of assets, mergers and acquisitions and the granting of liens. Pursuant to the indenture governing the Notes, the Parent is restricted from paying any dividend or making any payment or distribution on account of its equity interests unless, among other things, (i) the dividend, payment or distribution (together with all other such dividends, payments or distributions made since July 1, 2017) is less than an amount calculated based in part on the Consolidated Adjusted Net Income (as defined in the indenture governing the Notes) of the Parent and its restricted and regulated subsidiaries since July 1, 2017, or (ii) the dividend, payment or distribution fits within one or more exceptions, including: • it is less than $20 million in any fiscal year; or • when combined with all other Restricted Payments (as defined in the indenture governing the Notes) that rely upon this exception, it does not exceed $10 million . The Notes provide for events of default including, among other things, nonpayment, breach of covenants and bankruptcy. The Parent's obligations under the Notes are guaranteed by certain of the Parent's subsidiaries and are secured by a first-priority security interest in substantially all of the assets of the Parent and the subsidiary's guarantors. These guarantees and the collateral may be shared, on a pari passu basis, under certain circumstances, with debt incurred. As of June 30, 2018 , the Parent was in compliance with all of its covenants. Interest expense for the three and six months ended June 30, 2018 on the Notes was $3.4 million and $6.8 million , respectively ( $300,000 for both the three and six months ended June 30, 2017 ). 8.75% Senior Secured Notes On April 12, 2011 , the Parent issued in a private offering $200.0 million in aggregate principal amount of Old Notes at an issue price of 100% of the principal amount. Interest on the Old Notes was payable semi-annually on April 15 th and October 15 th . On April 15, 2014 , the Parent retired early $50.0 million of the Old Notes. The indenture for the Old Notes contained covenants, with which the Company was in compliance during 2017. On April 15, 2017 , the Parent used the net proceeds from the asset sales of OMHHF to finance the redemption of $30.0 million aggregate principal amount of the Old Notes at a redemption price equal to 100% of the principal, plus accrued and unpaid interest. On June 23, 2017, the Parent used a portion of the net proceeds from the offering of the Notes to redeem in full its Old Notes in the principal amount of $120.0 million and to satisfy and discharge all of its obligations under the indenture governing the Old Notes (the "8.75% Notes Indenture"). In connection with the satisfaction and discharge of the 8.75% Notes Indenture, all of the obligations of the Parent and the subsidiary guarantors (other than certain customary provisions of the 8.75% Notes Indenture, including those relating to the compensation and indemnification of the trustee that expressly survive pursuant to the terms of the 8.75% Notes Indenture) were discharged and the guarantees of the subsidiary guarantors and the liens on the collateral securing the Old Notes were released on June 23, 2017. Interest expense for the three and six months ended June 30, 2017 on the Old Notes was $3.4 million and $ 6.7 million , respectively. |
Share Capital
Share Capital | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Share Capital | Share capital The Company's authorized share capital consists of (a) 50,000,000 shares of Preferred Stock, par value $0.001 per share; (b) 50,000,000 shares of Class A Stock, par value $0.001 per share; and (c) 99,665 shares of Class B Stock, par value $0.001 per share. No Preferred Stock has been issued. 99,665 shares of Class B Stock have been issued and are outstanding. The Class A Stock and the Class B Stock are equal in all respects except that the Class A Stock is non-voting. The following table reflects changes in the number of shares of Class A Stock outstanding for the periods indicated: For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Class A Stock outstanding, beginning of period 13,141,103 13,182,332 13,139,203 13,261,095 Issued pursuant to shared-based compensation plans 15,250 — 17,150 179,020 Repurchased and canceled pursuant to the stock buy-back — (49,557 ) — (307,340 ) Class A Stock outstanding, end of period 13,156,353 13,132,775 13,156,353 13,132,775 Stock buy-back On May 5, 2017, the Company announced that its board of directors approved a share repurchase program that authorizes the Company to purchase up to 650,000 shares of the Company's Class A Stock, representing approximately 5% of its 13,178,571 then issued and outstanding shares of Class A Stock. This authorization supplemented the 40,734 shares that remained authorized and available under the Company's previous share repurchase program covering up to 665,000 shares of the Company's Class A Stock, which was announced on September 15, 2015, for a total of 690,734 shares authorized and available for repurchase. During the three and six months ended June 30, 2018 , the Company did not purchase any shares of Class A Stock under this program. As of June 30, 2018 , 508,906 shares remained available to be purchased under this program. Any such share purchases will be made by the Company from time to time in the open market at the prevailing open market price using cash on hand, in compliance with the applicable rules and regulations of the New York Stock Exchange and federal and state securities laws and the terms of the Company's senior secured debt. The Company will cancel all of the shares repurchased. The Company expects to continue the share repurchase program indefinitely. The Company will base the timing and amounts of any purchases on market conditions and other factors including price, regulatory requirements and capital availability. The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares of Class A Stock. Depending on market conditions and other factors, the Company may commence or suspend repurchases from time to time without notice. |
Income taxes Income taxes
Income taxes Income taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes On December 22, 2017, the Federal government enacted Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act ("TCJA"). The TCJA makes broad and complex changes to the U.S. tax code, including, but not limited to: (1) reducing the U.S. Federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) a new provision designed to tax global intangible low-taxed income ("GILTI"), which allows for the possibility of using foreign tax credits ("FTCs") and a deduction of up to 50 percent to offset the income tax liability (subject to some limitations); (5) limitations on the use of FTCs to reduce the U.S. income tax liability; (6) eliminating the corporate alternative minimum tax ("AMT") and changing how existing AMT credits can be realized; (7) creating the base erosion anti-abuse tax, a new minimum tax; (8) limitations on the deductibility of certain executive compensation; (9) creating a new limitation on deductible interest expense; (10) eliminating the deductibility of entertainment expenses; and (11) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. On December 22, 2017, the SEC staff issued SAB 118 which provides guidance on accounting for the tax effects of the TCJA. SAB 118 provides a measurement period that should not extend beyond one year from the TCJA enactment date for companies to complete the accounting under ASC 740. The Company has not completed its accounting for the income tax effects of certain elements of the TCJA. However, the Company was able to make reasonable estimates of the effects of certain elements and recorded a provisional estimate in the condensed consolidated financial statements. The estimated enactment net discrete after-tax benefit incorporates assumptions made based upon the Company's current interpretations of the TCJA, and may change as it receives additional clarification and implementation guidance and as the interpretation of the TCJA evolves over time. The Company is expected to complete its analysis within the measurement period in accordance with SAB 118. The effective income tax rate from continuing operations for the three months ended June 30, 2018 was 29.3% (tax expense) compared with 16.7% (tax benefit) for the three months ended June 30, 2017 and reflects the Company's estimate of the annual effective tax rate adjusted for certain discrete items. The estimated effective tax rate for the second quarter of 2018 is due to the Federal tax rate of 21% (versus 35%) as a result of the passage of the TCJA in December 2017 offset by foreign income inclusion and larger non-deductible expenses related to items such as entertainment, fringe benefits, regulatory fines and penalties, and limitations around the deductibility of executive compensation under the TCJA. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Contingencies Many aspects of the Company's business involve substantial risks of liability. In the normal course of business, the Company has been named as defendant or co-defendant in various legal actions, including arbitrations, class actions and other litigation, creating substantial exposure and periodic expenses. Certain of the actual or threatened legal matters include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. These proceedings arise primarily from securities brokerage, asset management and investment banking activities. The Company is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding the Company's business, which may result in expenses, adverse judgments, settlements, fines, penalties, injunctions or other relief. The investigations include inquiries from the Securities and Exchange Commission (the "SEC"), the Financial Industry Regulatory Authority ("FINRA") and various state regulators. The Company accrues for estimated loss contingencies related to legal and regulatory matters when available information indicates that it is probable a liability had been incurred and the Company can reasonably estimate the amount of that loss. In many proceedings, however, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount of any loss. In addition, even where a loss is possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is often not possible to reasonably estimate the size of the possible loss or range of loss or possible additional losses or range of additional losses. For certain legal and regulatory proceedings, the Company cannot reasonably estimate such losses, particularly for proceedings that are in their early stages of development or where plaintiffs seek substantial, indeterminate or special damages. Counsel may be required to review, analyze and resolve numerous issues, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the proceedings in question, before the Company can reasonably estimate a loss or range of loss or additional loss for the proceeding. Even after lengthy review and analysis, the Company, in many legal and regulatory proceedings, may not be able to reasonably estimate possible losses or range of loss. For certain other legal and regulatory proceedings, the Company can estimate possible losses, or range of loss in excess of amounts accrued, but does not believe, based on current knowledge and after consultation with counsel, that such losses individually, or in the aggregate, will have a material adverse effect on the Company's condensed consolidated financial statements as a whole. For legal and regulatory proceedings where there is at least a reasonable possibility that a loss or an additional loss may be incurred, the Company estimates a range of aggregate loss in excess of amounts accrued of $0 to $30.0 million . This estimated aggregate range is based upon currently available information for those legal proceedings in which the Company is involved, where the Company can make an estimate for such losses. For certain cases, the Company does not believe that it can make an estimate. The foregoing aggregate estimate is based on various factors, including the varying stages of the proceedings (including the fact that many are currently in preliminary stages), the numerous yet-unresolved issues in many of the proceedings and the attendant uncertainty of the various potential outcomes of such proceedings. Accordingly, the Company's estimate will change from time to time, and actual losses may be more than the current estimate. In February 2010, Oppenheimer finalized settlements with the Regulators concluding investigations and administrative proceedings by the Regulators concerning Oppenheimer's marketing and sale of ARS. Pursuant to the settlements with the Regulators, Oppenheimer agreed to extend offers to repurchase ARS from certain of its clients subject to certain terms and conditions more fully described below. As of June 30, 2018 , the Company had $5.0 million in outstanding ARS purchase commitments related to the settlements with the Regulators. In addition to the settlements with the Regulators, Oppenheimer has also reached settlements of and received adverse awards in legal proceedings with various clients where the Company is obligated to purchase ARS. Pursuant to completed Purchase Offers (as defined) under the settlements with the Regulators and client related legal settlements and awards to purchase ARS, as of June 30, 2018 , the Company purchased and holds (net of redemptions) approximately $92.3 million in ARS from its clients. In addition, the Company is committed to purchase another $7.2 million in ARS from clients through 2020 under legal settlements and awards. The Company's purchases of ARS from its clients holding ARS eligible for repurchase will, subject to the terms and conditions of the settlements with the Regulators, continue on a periodic basis. Pursuant to these terms and conditions, the Company is required to conduct a financial review every six months, until the Company has extended Purchase Offers to all Eligible Investors (as defined), to determine whether it has funds available, after giving effect to the financial and regulatory capital constraints applicable to the Company, to extend additional Purchase Offers. The financial review is based on the Company's operating results, regulatory net capital, liquidity, and other ARS purchase commitments outstanding under legal settlements and awards (described below). There are no predetermined quantitative thresholds or formulas used for determining the final agreed upon amount for the Purchase Offers. Upon completion of the financial review, the Company first meets with its primary regulator, FINRA, and then with representatives of the NYAG and other regulators to present the results of the review and to finalize the amount of the next Purchase Offer and discuss offer scenarios in terms of which Eligible Investors should receive a Purchase Offer. Once various Purchase Offer scenarios have been discussed, the regulators, not the Company, make the final determination of which Purchase Offer scenario to implement. The terms of the settlements provide that the amount of ARS to be purchased during any period shall not risk placing the Company in violation of regulatory requirements. Eligible Investors for future buybacks continued to hold approximately $21.2 million of ARS principal value as of June 30, 2018 . It is reasonably possible that some ARS Purchase Offers will need to be extended to Eligible Investors holding ARS prior to redemptions (or tender offers) by issuers of the full amount that remains outstanding. The potential additional losses that may result from entering into ARS purchase commitments with Eligible Investors for future buybacks represent the estimated difference between the principal value and the fair value. It is possible that the Company could sustain a loss of all or substantially all of the principal value of ARS still held by Eligible Investors but such an outcome is highly unlikely. The amount of potential additional losses resulting from entering into these commitments cannot be reasonably estimated due to the uncertainties surrounding the amounts and timing of future buybacks that result from the six-month financial review and the amounts, scope, and timing of future issuer redemptions and tender offers of ARS held by Eligible Investors. The range of potential additional losses related to valuation adjustments is between $0 and the amount of the estimated differential between the principal value and the fair value of ARS held by Eligible Investors for future buybacks that were not yet purchased or committed to be purchased by the Company at any point in time. The range of potential additional losses described here is not included in the estimated range of aggregate loss in excess of amounts accrued for legal and regulatory proceedings described above. Outside of the settlements with the Regulators, the Company has also reached various legal settlements with clients. As of June 30, 2018 , there were no ARS purchase commitments related to legal settlements extending past 2020. The Company has sought, with limited success, financing from a number of sources to try to find a means for all its clients to find liquidity from their ARS holdings and will continue to do so. There can be no assurance that the Company will be successful in finding a liquidity solution for all its clients' ARS. Since August 2014, Oppenheimer has been responding to information requests from the SEC regarding the supervision of one of its former financial advisers who was indicted by the United States Attorney's Office for the District of New Jersey in March 2014 on allegations of insider trading. A number of Oppenheimer employees have provided on-the-record testimony in connection with the SEC inquiry. Oppenheimer is continuing to cooperate with the SEC inquiry. Since September 2016, Oppenheimer has been responding to information requests from FINRA (including from FINRA's Enforcement Department) regarding the supervision of Oppenheimer's sale of unit investment trusts from 2011 to 2015. The inquiry is part of a larger targeted examination or "sweep" examination involving many other brokerage firms. Oppenheimer is continuing to cooperate with the FINRA inquiry. |
Regulatory Requirements
Regulatory Requirements | 6 Months Ended |
Jun. 30, 2018 | |
Regulated Operations [Abstract] | |
Regulatory Requirements | Regulatory requirements The Company's U.S. broker dealer subsidiaries, Oppenheimer and Freedom, are subject to the uniform net capital requirements of the SEC under Rule 15c3-1 (the "Rule") promulgated under the Securities Exchange Act of 1934. Oppenheimer computes its net capital requirements under the alternative method provided for in the Rule which requires that Oppenheimer maintain net capital equal to two percent of aggregate customer-related debit items, as defined in SEC Rule 15c3-3. As of June 30, 2018 , the net capital of Oppenheimer as calculated under the Rule was $161.2 million or 15.77% of Oppenheimer's aggregate debit items. This was $140.8 million in excess of the minimum required net capital at that date. Freedom computes its net capital requirement under the basic method provided for in the Rule, which requires that Freedom maintain net capital equal to the greater of $100,000 or 6-2/3% of aggregate indebtedness, as defined. As of June 30, 2018 , Freedom had net capital of $5.4 million , which was $5.3 million in excess of the $100,000 required to be maintained at that date. As of June 30, 2018 , the capital required and held under the Capital Requirements Directive ("CRD IV") for Oppenheimer Europe Ltd. was as follows: • Common Equity Tier 1 ratio 18.20% (required 4.5% ); • Tier 1 Capital ratio 18.20% (required 6.0% ); and • Total Capital ratio 18.76% (required 8.0% ). In December 2017, Oppenheimer Europe Ltd. received approval from the Financial Conduct Authority ("FCA") for a variation of permission to remove the limitation of "matched principal business" from the firm's scope of permitted businesses and become a "Full-Scope Prudential Sourcebook for Investment Firms (IFPRU) €730K" firm which was effective January 2018. In addition to the capital requirement under CRV IV above, Oppenheimer Europe Ltd. is required to maintain a minimum capital of EUR 730,000 . In December 2017, the Company contributed additional capital of $7.0 million to Oppenheimer Europe Ltd. in order to facilitate this new permissioning. As of June 30, 2018 , the regulatory capital of Oppenheimer Investments Asia Limited was $2.0 million , which was $1.6 million in excess of the $387,000 required to be maintained on that date. Oppenheimer Investments Asia Limited computes its regulatory capital pursuant to the requirements of the Securities and Futures Commission of Hong Kong. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information The Company has determined its reportable segments based on the Company's method of internal reporting, which disaggregates its retail business by branch and its proprietary and investment banking businesses by product. The Company evaluates the performance of its segments and allocates resources to them based upon profitability. The Company's reportable segments are: Private Client — includes commissions and a proportionate amount of fee income earned on assets under management ("AUM"), net interest earnings on client margin loans and cash balances, fees from money market funds, custodian fees, net contributions from stock loan activities and financing activities, and direct expenses associated with this segment; Asset Management — includes a proportionate amount of fee income earned on AUM from investment management services of Oppenheimer Asset Management Inc. Oppenheimer's asset management divisions employ various programs to manage client assets either in individual accounts or in funds, and includes direct expenses associated with this segment; and Capital Markets — includes investment banking, institutional equities sales, trading, and research, taxable fixed income sales, trading, and research, public finance and municipal trading, as well as the Company's operations in the United Kingdom, Hong Kong and Israel, and direct expenses associated with this segment. The Company does not allocate costs associated with certain infrastructure support groups that are centrally managed for its reportable segments. These areas include, but are not limited to, legal, compliance, operations, accounting, and internal audit. Costs associated with these groups are separately reported in a Corporate/Other category and primarily include compensation and benefits. The table below presents information about the reported revenue and income (loss) before income taxes from continuing operations of the Company for the three and six months ended June 30, 2018 and 2017 . Asset information by reportable segment is not reported, since the Company does not produce such information for internal use by the chief operating decision maker. (Expressed in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Revenue Private client (1) $ 156,553 $ 140,252 $ 310,647 $ 277,641 Asset management (1) 17,706 19,304 35,350 37,970 Capital markets 68,206 53,707 129,735 109,610 Corporate/Other 91 2,621 1,354 3,924 Total $ 242,556 $ 215,884 $ 477,086 $ 429,145 Income (loss) before income taxes Private client (1) $ 33,513 $ 28,051 $ 73,675 $ 56,813 Asset management (1) 3,958 4,081 7,676 7,792 Capital markets (199 ) (10,982 ) (6,256 ) (23,596 ) Corporate/Other (24,771 ) (22,787 ) (52,969 ) (49,671 ) Total $ 12,501 $ (1,637 ) $ 22,126 $ (8,662 ) (1) Clients investing in the OAM advisory program are charged fees based on the value of AUM. Advisory fees are allocated 10.0% to the Asset Management and 90.0% to the Private Client segments. Revenue, classified by the major geographic areas in which it was earned, for the three and six months ended June 30, 2018 and 2017 was as follows: (Expressed in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Americas $ 234,471 $ 204,052 $ 460,083 $ 407,715 Europe/Middle East 7,222 10,904 14,745 19,364 Asia 863 928 2,258 2,066 Total $ 242,556 $ 215,884 $ 477,086 $ 429,145 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events On July 27, 2018 , the Company announced a quarterly dividend in the amount of $0.11 per share, payable on August 24, 2018 to holders of Class A Stock and Class B Stock of record on August 10, 2018 . |
Supplemental Guarantor Consolid
Supplemental Guarantor Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Consolidated Financial Statements | Condensed consolidating financial information On June 23, 2017, the Parent issued in a private offering $200.0 million aggregate principal amount of the Notes. The Company used a portion of the net proceeds from the offering of the Unregistered Notes to redeem in full its Old Notes. See note 9 for further details. The Notes are jointly and severally and fully and unconditionally guaranteed on a senior basis by E.A. Viner International Co. and Viner Finance Inc. (together, the "Guarantors"), unless released as described below. Each of the Guarantors is 100% owned by the Parent. The indenture for the Notes contains covenants with restrictions which are discussed in note 9. The following condensed consolidating financial information presents the financial position, results of operations and cash flows of the Parent, the Guarantor subsidiaries, the Non-Guarantor subsidiaries and elimination entries necessary to consolidate the Company. Each Guarantor will be automatically and unconditionally released and discharged upon: the sale, exchange or transfer of the capital stock of a Guarantor and the Guarantor ceasing to be a direct or indirect subsidiary of the Parent if such sale does not constitute an asset sale under the indenture for the Notes or does not constitute an asset sale effected in compliance with the asset sale and merger covenants of the indenture for the Notes; a Guarantor being dissolved or liquidated; a Guarantor being designated unrestricted in compliance with the applicable provisions of the Notes; or the exercise by the Parent of its legal defeasance option or covenant defeasance option or the discharge of the Parent's obligations under the indenture for the Notes in accordance with the terms of such indenture. OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF JUNE 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 668 $ 4,588 $ 33,705 $ — $ 38,961 Deposits with clearing organizations — — 56,864 — 56,864 Receivable from brokers, dealers and clearing organizations — — 204,527 — 204,527 Receivable from customers, net of allowance for credit losses of $848 — — 835,708 — 835,708 Income tax receivable 46,865 24,904 — (68,951 ) 2,818 Securities purchased under agreements to resell — — 6,738 — 6,738 Securities owned, including amounts pledged of $692,286, at fair value — 1,369 1,019,035 — 1,020,404 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,788 and $8,051, respectively — — 42,410 — 42,410 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $85,815 — 20,883 7,111 — 27,994 Subordinated loan receivable — 112,558 — (112,558 ) — Intangible assets — 400 31,700 — 32,100 Goodwill — — 137,889 — 137,889 Other assets 120 2,580 112,167 — 114,867 Deferred tax assets 122 118 18,641 (18,881 ) — Investment in subsidiaries 643,205 526,774 — (1,169,979 ) — Intercompany receivables 48,843 49,627 — (98,470 ) — Total assets $ 739,823 $ 743,801 $ 2,506,495 $ (1,468,839 ) $ 2,521,280 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 21,632 $ — $ 21,632 Bank call loans — — 107,500 — 107,500 Payable to brokers, dealers and clearing organizations — — 282,542 — 282,542 Payable to customers — — 373,664 — 373,664 Securities sold under agreements to repurchase — — 599,151 — 599,151 Securities sold but not yet purchased, at fair value — — 162,042 — 162,042 Accrued compensation — — 128,985 — 128,985 Accounts payable and other liabilities 125 33,496 60,732 — 94,353 Income tax payable 2,440 22,189 44,322 (68,951 ) — Senior secured notes, net of debt issuance cost of $1,034 198,966 — — — 198,966 Subordinated indebtedness — — 112,558 (112,558 ) — Deferred tax liabilities — — 32,685 (18,881 ) 13,804 Intercompany payables — 28,141 70,329 (98,470 ) — Total liabilities 201,531 83,826 1,996,142 (298,860 ) 1,982,639 Stockholders' equity Stockholders' equity attributable to Oppenheimer Holdings Inc. 538,292 659,975 510,004 (1,169,979 ) 538,292 Non-controlling interest — — 349 — 349 Total stockholders' equity 538,292 659,975 510,353 (1,169,979 ) 538,641 Total liabilities and stockholders' equity $ 739,823 $ 743,801 $ 2,506,495 $ (1,468,839 ) $ 2,521,280 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2017 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 7,442 $ 3,716 $ 36,996 $ — $ 48,154 Deposits with clearing organizations — — 42,222 — 42,222 Receivable from brokers, dealers and clearing organizations — — 187,115 — 187,115 Receivable from customers, net of allowance for credit losses of $769 — — 848,226 — 848,226 Income tax receivable 45,998 26,025 — (69,084 ) 2,939 Securities purchased under agreements to resell — — 658 — 658 Securities owned, including amounts pledged of $655,683, at fair value — 1,386 925,211 — 926,597 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,705 and $7,975, respectively — — 40,520 — 40,520 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $82,826 — 20,221 6,966 — 27,187 Subordinated loan receivable — 112,558 — (112,558 ) — Intangible assets — — 31,700 — 31,700 Goodwill — — 137,889 — 137,889 Other assets 133 2,573 142,604 — 145,310 Deferred tax assets 3,502 — 18,463 (21,965 ) — Investment in subsidiaries 622,824 507,747 — (1,130,571 ) — Intercompany receivables 52,149 83,437 — (135,586 ) — Total assets $ 732,048 $ 757,663 $ 2,418,570 $ (1,469,764 ) $ 2,438,517 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 42,412 $ — $ 42,412 Bank call loans — — 118,300 — 118,300 Payable to brokers, dealers and clearing organizations — — 211,483 — 211,483 Payable to customers — — 385,907 — 385,907 Securities sold under agreements to repurchase — — 586,478 — 586,478 Securities sold but not yet purchased, at fair value — — 94,486 — 94,486 Accrued compensation — — 173,116 — 173,116 Accounts payable and other liabilities 7,221 33,994 51,280 — 92,495 Income tax payable 2,440 22,189 44,455 (69,084 ) — Senior secured notes, net of debt issuance costs of $1,163 198,837 — — — 198,837 Subordinated indebtedness — — 112,558 (112,558 ) — Deferred tax liabilities — 17 33,040 (21,965 ) 11,092 Intercompany payables — 62,163 73,423 (135,586 ) — Total liabilities 208,498 118,363 1,926,938 (339,193 ) 1,914,606 Stockholders' equity Stockholders' equity attributable to Oppenheimer Holdings Inc. 523,550 639,300 491,271 (1,130,571 ) 523,550 Non-controlling interest — — 361 — 361 Total stockholders' equity 523,550 639,300 491,632 (1,130,571 ) 523,911 Total liabilities and stockholders' equity $ 732,048 $ 757,663 $ 2,418,570 $ (1,469,764 ) $ 2,438,517 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated REVENUES Commissions $ — $ — $ 82,850 $ — $ 82,850 Advisory fees — — 77,589 (319 ) 77,270 Investment banking — — 27,904 — 27,904 Bank deposit sweep income — — 28,853 — 28,853 Interest 3 2,060 13,070 (2,077 ) 13,056 Principal transactions, net — — 6,409 (9 ) 6,400 Other — 95 6,222 (94 ) 6,223 Total revenue 3 2,155 242,897 (2,499 ) 242,556 EXPENSES Compensation and related expenses 522 — 151,349 — 151,871 Communications and technology 49 — 17,948 — 17,997 Occupancy and equipment costs — — 14,995 (94 ) 14,901 Clearing and exchange fees — — 5,780 — 5,780 Interest 3,375 — 9,611 (2,077 ) 10,909 Other 278 849 27,798 (328 ) 28,597 Total expenses 4,224 849 227,481 (2,499 ) 230,055 Income (loss) before income taxes (4,221 ) 1,306 15,416 — 12,501 Income taxes (1,065 ) 369 4,358 — 3,662 Net income (loss) from continuing operations (3,156 ) 937 11,058 — 8,839 Equity in earnings of subsidiaries 12,011 11,074 — (23,085 ) — Net income 8,855 12,011 11,058 (23,085 ) 8,839 Less net loss attributable to non-controlling interest, net of tax — — (16 ) — (16 ) Net income attributable to Oppenheimer Holdings Inc. 8,855 12,011 11,074 (23,085 ) 8,855 Other comprehensive loss — — (837 ) — (837 ) Total comprehensive income $ 8,855 $ 12,011 $ 10,237 $ (23,085 ) $ 8,018 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2017 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 83,852 $ — $ 83,852 Advisory fees — — 73,126 (343 ) 72,783 Investment banking — — 18,386 (3,000 ) 15,386 Bank deposit sweep income — — 17,720 — 17,720 Interest — 2,559 12,845 (2,575 ) 12,829 Principal transactions, net — 9 5,293 — 5,302 Other — 90 8,011 (89 ) 8,012 Total revenue — 2,658 219,233 (6,007 ) 215,884 EXPENSES Compensation and related expenses 367 — 142,290 — 142,657 Communications and technology 49 — 18,350 — 18,399 Occupancy and equipment costs — — 15,250 (89 ) 15,161 Clearing and exchange fees — — 5,916 — 5,916 Interest 3,709 — 5,720 (2,575 ) 6,854 Other 3,922 195 27,760 (3,343 ) 28,534 Total expenses 8,047 195 215,286 (6,007 ) 217,521 Income (loss) before income taxes (8,047 ) 2,463 3,947 — (1,637 ) Income taxes (3,098 ) 956 1,868 — (274 ) Net income (loss) from continuing operations (4,949 ) 1,507 2,079 — (1,363 ) Discontinued operations Income from discontinued operations — — 89 — 89 Income taxes — — 36 — 36 Net income from discontinued operations — — 53 — 53 Equity in earnings of subsidiaries 3,630 2,123 — (5,753 ) — Net income (loss) (1,319 ) 3,630 2,132 (5,753 ) (1,310 ) Less net income attributable to non-controlling interest, net of tax — — 9 — 9 Net income (loss) attributable to Oppenheimer Holdings Inc. (1,319 ) 3,630 2,123 (5,753 ) (1,319 ) Other comprehensive income — — 780 — 780 Total comprehensive income (loss) $ (1,319 ) $ 3,630 $ 2,903 $ (5,753 ) $ (539 ) OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated REVENUES Commissions $ — $ — $ 166,257 $ — $ 166,257 Advisory fees — — 155,463 (645 ) 154,818 Investment banking — — 56,114 — 56,114 Bank deposit sweep income — — 54,150 — 54,150 Interest 3 4,120 25,317 (4,157 ) 25,283 Principal transactions, net — — 9,168 (42 ) 9,126 Other — 191 11,336 (189 ) 11,338 Total revenue 3 4,311 477,805 (5,033 ) 477,086 EXPENSES Compensation and related expenses 848 — 304,127 — 304,975 Communications and technology 88 — 36,597 — 36,685 Occupancy and equipment costs — — 30,518 (189 ) 30,329 Clearing and exchange fees — — 11,876 — 11,876 Interest 6,750 — 17,279 (4,157 ) 19,872 Other 665 1,102 50,143 (687 ) 51,223 Total expenses 8,351 1,102 450,540 (5,033 ) 454,960 Income (loss) before income taxes (8,348 ) 3,209 27,265 — 22,126 Income taxes (2,105 ) 633 8,050 — 6,578 Net income (loss) from continuing operations (6,243 ) 2,576 19,215 — 15,548 Equity in earnings of subsidiaries 21,803 19,227 — (41,030 ) — Net income 15,560 21,803 19,215 (41,030 ) 15,548 Less net loss attributable to non-controlling interest, net of tax — — (12 ) — (12 ) Net income attributable to Oppenheimer Holdings Inc. 15,560 21,803 19,227 (41,030 ) 15,560 Other comprehensive loss — — (979 ) — (979 ) Total comprehensive income $ 15,560 $ 21,803 $ 18,248 $ (41,030 ) $ 14,581 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2017 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 170,569 $ — $ 170,569 Advisory fees — — 142,855 (663 ) 142,192 Investment banking — — 36,407 (3,000 ) 33,407 Bank deposit sweep income — — 31,846 — 31,846 Interest — 5,138 23,407 (5,151 ) 23,394 Principal transactions, net — 15 10,660 — 10,675 Other — 178 17,061 (177 ) 17,062 Total revenue — 5,331 432,805 (8,991 ) 429,145 EXPENSES Compensation and related expenses 705 — 285,830 — 286,535 Communications and technology 79 — 36,026 — 36,105 Occupancy and equipment costs — — 30,610 (177 ) 30,433 Clearing and exchange fees — — 11,770 — 11,770 Interest 6,990 — 10,371 (5,151 ) 12,210 Other 4,249 267 59,901 (3,663 ) 60,754 Total expenses 12,023 267 434,508 (8,991 ) 437,807 Income (loss) before income taxes (12,023 ) 5,064 (1,703 ) — (8,662 ) Income taxes (4,626 ) 1,876 789 — (1,961 ) Net income (loss) from continuing operations (7,397 ) 3,188 (2,492 ) — (6,701 ) Discontinued operations Income from discontinued operations — — 1,065 — 1,065 Income taxes — — 425 — 425 Net income from discontinued operations — — 640 — 640 Equity in earnings of subsidiaries 1,231 (1,957 ) — 726 — Net income (loss) (6,166 ) 1,231 (1,852 ) 726 (6,061 ) Less net income attributable to non-controlling interest, net of tax — — 105 — 105 Net income (loss) attributable to Oppenheimer Holdings Inc. (6,166 ) 1,231 (1,957 ) 726 (6,166 ) Other comprehensive income — — 2,204 — 2,204 Total comprehensive income (loss) $ (6,166 ) $ 1,231 $ 247 $ 726 $ (3,962 ) OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ (1,417 ) $ 1,272 $ 11,456 $ — $ 11,311 Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (3,947 ) — (3,947 ) Purchase of tangible assets — (400 ) — — (400 ) Cash used in investing activities — (400 ) (3,947 ) — (4,347 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (2,913 ) — — — (2,913 ) Payments for employee taxes withheld related to vested share-based awards (2,444 ) — — — (2,444 ) Increase in bank call loans, net — — (10,800 ) — (10,800 ) Cash used in financing activities (5,357 ) — (10,800 ) — (16,157 ) Net increase (decrease) in cash and cash equivalents (6,774 ) 872 (3,291 ) — (9,193 ) Cash and cash equivalents, beginning of the period 7,442 3,716 36,996 — 48,154 Cash and cash equivalents, end of the period $ 668 $ 4,588 $ 33,705 $ — $ 38,961 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2017 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ 34,273 $ (7,052 ) $ (97,606 ) $ — $ (70,385 ) Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (2,075 ) — (2,075 ) Proceeds from settlement of company-owned life insurance — — 1,194 — 1,194 Cash used in investing activities — — (881 ) — (881 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (2,940 ) — — — (2,940 ) Cash dividends paid to non-controlling interest — — (816 ) — (816 ) Repurchase of Class A non-voting common stock for cancellation (5,159 ) — — — (5,159 ) Payments for employee taxes withheld related to vested share-based awards (2,203 ) — — — (2,203 ) Issuance of senior secured notes 200,000 — — — 200,000 Redemption of senior secured notes (150,000 ) — — — (150,000 ) Debt issuance costs (547 ) — — — (547 ) Increase in bank call loans, net — — 84,600 — 84,600 Cash provided by financing activities 39,151 — 83,784 — 122,935 Net increase (decrease) in cash and cash equivalents 73,424 (7,052 ) (14,703 ) — 51,669 Cash and cash equivalents, beginning of the period 229 10,284 54,400 — 64,913 Cash and cash equivalents, end of the period $ 73,653 $ 3,232 $ 39,697 $ — $ 116,582 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Recently Issued In February 2016, the FASB issued ASU 2016-02, "Leases." The ASU requires the recognition of a right-of use asset and lease liability on the balance sheet by lessees for those leases classified as operating leases under previous guidance. The ASU is effective for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact of adopting this ASU which it expects will have a significant impact on its condensed consolidated financial statements. Since the Company has operating leases in over 100 locations, the Company expects to recognize a significant right-of use asset and lease liability on its condensed consolidated balance sheet upon adoption of this ASU. The Company has elected the modified retrospective method and will include any cumulative-effect adjustment as of the date of adoption. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which amends the FASB's guidance on the impairment of financial instruments. The ASU adds to U.S. GAAP an impairment model ("current expected credit loss model"). Under this new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The ASU is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact, if any, that the ASU will have on the Company; the adoption of the ASU is not currently expected to have a material impact on its condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other, Simplifying the Test for Goodwill Impairment," which simplifies the subsequent measurement of goodwill. The Company is no longer required to perform its Step 2 goodwill impairment test; instead, the Company should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The ASU is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company will not early adopt this ASU. The Company is currently evaluating the impact, if any, of the ASU on the Company; the adoption of the ASU is not currently expected to have a material impact on its condensed consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities," which amends the hedge accounting recognition and presentation requirements. The ASU improves the transparency and understandability of information conveyed to financial statement users by better aligning companies' hedging relationship to their existing risk management strategies, simplifies the application of hedge accounting and increases transparency regarding the scope and results of the hedging program. The ASU is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company will not early adopt this ASU. The Company is currently evaluating the impact, if any, of the ASU on the Company; the adoption of the ASU is not currently expected to have a material impact on its condensed consolidated financial statements. |
Revenues from contracts with 25
Revenues from contracts with customers Revenues from contracts with customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following presents the Company's revenue from contracts with customers disaggregated by major business activity and other sources of revenue for the three and six months ended June 30, 2018 : (Expressed in thousands) For the Three Months Ended June 30, 2018 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 39,093 $ — $ 33,022 $ 62 $ 72,177 Mutual fund income 10,441 222 5 5 10,673 Advisory fees 59,774 17,485 3 8 77,270 Investment banking - capital markets 3,469 — 16,196 — 19,665 Investment banking - advisory — — 8,239 — 8,239 Bank deposit sweep income 28,853 — — — 28,853 Other 3,430 3 457 (47 ) 3,843 Total revenues from contracts with customers 145,060 17,710 57,922 28 220,720 Other sources of revenue: Interest 9,514 (4 ) 3,263 283 13,056 Principal transactions, net 212 — 6,989 (801 ) 6,400 Other 1,767 — 32 581 2,380 Total other sources of revenue 11,493 (4 ) 10,284 63 21,836 Total revenue $ 156,553 $ 17,706 $ 68,206 $ 91 $ 242,556 (Expressed in thousands) For the Six Months Ended June 30, 2018 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 79,371 $ — $ 65,019 $ 77 $ 144,467 Mutual fund income 21,268 505 7 10 21,790 Advisory fees 119,910 34,838 54 16 154,818 Investment banking - capital markets 7,839 — 30,592 — 38,431 Investment banking - advisory — — 17,683 — 17,683 Bank deposit sweep income 54,150 — — — 54,150 Other 7,705 6 432 (46 ) 8,097 Total revenues from contracts with customers 290,243 35,349 113,787 57 439,436 Other sources of revenue: Interest 18,351 1 6,468 463 25,283 Principal transactions, net 132 — 9,381 (387 ) 9,126 Other 1,921 — 99 1,221 3,241 Total other sources of revenue 20,404 1 15,948 1,297 37,650 Total revenue $ 310,647 $ 35,350 $ 129,735 $ 1,354 $ 477,086 |
Contract with Customer, Asset and Liability | Contract Balances The timing of the Company's revenue recognition may differ from the timing of payment by its customers. The Company records receivables when revenue is recognized prior to payment and it has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company had receivables related to revenue from contracts with customers of $22.3 million and $18.6 million at June 30, 2018 and January 1, 2018, respectively. The Company had no significant impairments related to these receivables during the three and six months ended June 30, 2018 . Deferred revenue primarily relates to IRA fees received annually in advance on customer's IRA accounts managed by the Company where the performance obligation has not yet been satisfied. Total deferred revenue was $2.0 million and $ nil at June 30, 2018 and January 1, 2018, respectively. The following presents the Company's contract assets and deferred revenue balances from contracts with customers, which are included in other assets and other liabilities, respectively, on the condensed consolidated balance sheet: (Expressed in thousands) Ending Balance at June 30, 2018 Opening Balance at January 1, 2018 Contract assets (receivables): Commission (1) $ 3,059 $ 2,007 Mutual fund income (2) 7,308 7,779 Advisory fees (3) 750 1,460 Bank deposit sweep income (4) 3,874 3,459 Investment banking fees (5) 4,683 3,926 Other 2,661 — Total contract assets $ 22,335 $ 18,631 Deferred revenue (payables): Investment banking fees $ 450 $ — IRA fees 1,515 — Total deferred revenue $ 1,965 $ — (1) Commission recorded on trade date but not yet settled. (2) Mutual fund income earned but not yet received. (3) Management and performance fees earned but not yet received. (4) Fees earned from FDIC-insured bank deposit program but not yet received. (5) Underwriting revenue and advisory fee earned but not yet received. Contract Costs The Company incurs incremental transaction-related costs to obtain and/or fulfill contracts associated with investment banking and advisory engagements where the revenue is recognized at a point in time and the costs are determined to be recoverable. As of June 30, 2018 , the contract costs were $1.6 million . There were no significant charges recognized in relation to these costs for the six months ended June 30, 2018 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share | Earnings per share have been calculated as follows: (Expressed in thousands, except number of shares and per share amounts) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Basic weighted average number of shares outstanding 13,248,812 13,260,855 13,244,245 13,329,670 Net dilutive effect of share-based awards, treasury method (1) 801,761 — 761,311 — Diluted weighted average number of shares outstanding 14,050,573 13,260,855 14,005,556 13,329,670 Net income (loss) from continuing operations $ 8,839 $ (1,363 ) $ 15,548 $ (6,701 ) Net income from discontinued operations — 53 — 640 Net income (loss) 8,839 (1,310 ) 15,548 (6,061 ) Less net income (loss) attributable to non-controlling interest, net of tax (16 ) 9 (12 ) 105 Net income (loss) attributable to Oppenheimer Holdings Inc. $ 8,855 $ (1,319 ) $ 15,560 $ (6,166 ) Basic net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.67 $ (0.10 ) $ 1.17 $ (0.50 ) Discontinued operations (2) — — — 0.04 Net income (loss) per share $ 0.67 $ (0.10 ) $ 1.17 $ (0.46 ) Diluted net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.63 $ (0.10 ) $ 1.11 $ (0.50 ) Discontinued operations (2) — — — 0.04 Net income (loss) per share $ 0.63 $ (0.10 ) $ 1.11 $ (0.46 ) (1) For both the three and six months ended June 30, 2018 , the diluted net income (loss) per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements ( 1,336,424 shares for both the three and six months ended June 30, 2017 ). (2) Represents net income from discontinued operations less net income attributable to non-controlling interest, net of tax divided by weighted average number of shares outstanding. |
Receivable From and Payable t27
Receivable From and Payable to Brokers, Dealers and Clearing Organizations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Brokers and Dealers [Abstract] | |
Receivable from and Payable to Brokers, Dealers and Clearing Organizations | (Expressed in thousands) As of June 30, 2018 December 31, 2017 Receivable from brokers, dealers and clearing organizations consists of: Securities borrowed $ 122,238 $ 132,368 Receivable from brokers 31,962 19,298 Securities failed to deliver 24,227 9,442 Clearing organizations 23,459 24,361 Other 2,641 1,646 Total $ 204,527 $ 187,115 Payable to brokers, dealers and clearing organizations consists of: Securities loaned $ 199,598 $ 180,270 Payable to brokers 18,984 1,567 Securities failed to receive 16,894 17,559 Other 47,066 12,087 Total $ 282,542 $ 211,483 |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Quantitative Information about Level 3 Fair Value Measurements | Additional information regarding the valuation technique and inputs for ARS used is as follows: (Expressed in thousands) Quantitative Information about ARS Level 3 Fair Value Measurements as of June 30, 2018 Product Principal Valuation Adjustment Fair Value Valuation Technique Unobservable Input Range Weighted Average Auction Rate Securities Owned (1) Auction Rate Preferred Securities $ 73,275 $ 941 $ 72,334 Discounted Cash Flow Discount Rate (2) 2.83% to 3.86% 3.22% Duration 2.5 Years 2.5 Years Current Yield (3) 2.36% to 3.21% 2.68% Auction Rate Preferred Securities 18,725 1,123 17,602 Tender Offer (4) N/A N/A N/A Municipal Auction Rate Securities 25 — 25 Par N/A N/A N/A Student Loan Auction Rate Securities 275 13 262 Discounted Cash Flow Discount Rate (5) 3.96% 3.96% Duration 5.5 Years 5.5 Years Current Yield (3) 2.95% 2.95% $ 92,300 $ 2,077 $ 90,223 Auction Rate Securities Commitments to Purchase (6) Auction Rate Preferred Securities $ 10,620 $ 130 $ 10,490 Discounted Cash Flow Discount Rate (2) 2.83% to 3.86% 3.22% Duration 2.5 Years 2.5 Years Current Yield (3) 2.36% to 3.21% 2.68% Auction Rate Preferred Securities 1,515 91 1,424 Tender Offer (4) N/A N/A N/A Municipal Auction Rate Securities 2 — 2 Par N/A N/A N/A Student Loan Auction Rate Securities 25 1 24 Discounted Cash Flow Discount Rate (5) 3.96% 3.96% Duration 5.5 Years 5.5 Years Current Yield (3) 2.95% 2.95% $ 12,162 $ 222 $ 11,940 Total $ 104,462 $ 2,299 $ 102,163 (1) Principal amount represents the par value of the ARS and is included in securities owned on the condensed consolidated balance sheet as of June 30, 2018 . The valuation adjustment amount is included as a reduction to securities owned on the condensed consolidated balance sheet as of June 30, 2018 . (2) Derived by applying a multiple to a spread between 110% to 150% to the U.S. Treasury rate of 2.58% . (3) Based on current yields for ARS positions owned. (4) ARS issuer announced tender offer at 94% of par. Included in Level 2 of the fair value hierarchy. (5) Derived by applying the sum of the spread of 1.20% to the U.S. Treasury rate of 2.76% . (6) Principal amount represents the present value of the ARS par value that the Company is committed to purchase at a future date. This principal amount is presented as an off-balance sheet item. The valuation adjustment amount is included in accounts payable and other liabilities on the condensed consolidated balance sheet as of June 30, 2018 . |
Investments in Company-Sponsored Funds | The following table provides information about the Company's investments in Company-sponsored funds as of June 30, 2018 : (Expressed in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Hedge funds (1) $ 2,624 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 5,008 1,400 N/A N/A $ 7,632 $ 1,400 (1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies. Each hedge fund has various restrictions regarding redemption; no investment is locked-up for a period greater than one year. (2) Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources. Due to the illiquid nature of these funds, investors are not permitted to make withdrawals without the consent of the general partner. The lock-up period of the private equity funds can extend to 10 years. |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company's assets and liabilities, recorded at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 , have been categorized based upon the above fair value hierarchy as follows: Assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 (Expressed in thousands) Fair Value Measurements as of June 30, 2018 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,500 $ — $ — $ 10,500 Deposits with clearing organizations 31,135 — — 31,135 Securities owned: U.S. Treasury securities 690,988 — — 690,988 U.S. Agency securities 8,541 7,906 — 16,447 Sovereign obligations — 204 — 204 Corporate debt and other obligations — 24,813 — 24,813 Mortgage and other asset-backed securities — 6,870 — 6,870 Municipal obligations — 116,612 — 116,612 Convertible bonds — 41,135 — 41,135 Corporate equities 33,112 — — 33,112 Auction rate securities — 17,602 72,621 90,223 Securities owned, at fair value 732,641 215,142 72,621 1,020,404 Investments (1) — — 164 164 Derivative contracts: TBAs — 2,815 — 2,815 Total $ 774,276 $ 217,957 $ 72,785 $ 1,065,018 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 115,465 $ — $ — $ 115,465 U.S. Agency securities — 6 — 6 Corporate debt and other obligations — 5,289 — 5,289 Mortgage and other asset-backed securities — 6,808 — 6,808 Convertible bonds — 7,496 — 7,496 Corporate equities 26,978 — — 26,978 Securities sold but not yet purchased, at fair value 142,443 19,599 — 162,042 Derivative contracts: Futures 942 — — 942 Foreign exchange forward contracts 5 — — 5 TBAs — 2,715 — 2,715 ARS purchase commitments — 91 131 222 Derivative contracts, total 947 2,806 131 3,884 Total $ 143,390 $ 22,405 $ 131 $ 165,926 (1) Included in other assets on the condensed consolidated balance sheet. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 (Expressed in thousands) Fair Value Measurements as of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,490 $ — $ — $ 10,490 Deposits with clearing organizations 34,293 — — 34,293 Securities owned: U.S. Treasury securities 640,337 — — 640,337 U.S. Agency securities 3,011 6,894 — 9,905 Sovereign obligations — 608 — 608 Corporate debt and other obligations — 12,538 — 12,538 Mortgage and other asset-backed securities — 4,037 — 4,037 Municipal obligations — 89,618 35 89,653 Convertible bonds — 23,216 — 23,216 Corporate equities 34,067 — — 34,067 Money markets 383 — — 383 Auction rate securities — 24,455 87,398 111,853 Securities owned, at fair value 677,798 161,366 87,433 926,597 Investments (1) — — 169 169 Derivative contracts: TBAs — 716 — 716 Total $ 722,581 $ 162,082 $ 87,602 $ 972,265 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 53,425 $ — $ — $ 53,425 U.S. Agency securities — 13 — 13 Sovereign obligations — 1,179 — 1,179 Corporate debt and other obligations — 4,357 — 4,357 Mortgage and other asset-backed securities — 10 — 10 Convertible bonds — 10,109 — 10,109 Corporate equities 25,393 — — 25,393 Securities sold but not yet purchased, at fair value 78,818 15,668 — 94,486 Derivative contracts: Futures 766 — — 766 TBAs — 614 — 614 ARS purchase commitments — — 8 8 Derivative contracts, total 766 614 8 1,388 Total $ 79,584 $ 16,282 $ 8 $ 95,874 (1) Included in other assets on the condensed consolidated balance sheet. |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended June 30, 2018 and 2017 : (Expressed in thousands) Level 3 Assets and Liabilities For the Three Months Ended June 30, 2018 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Auction rate securities (1) $ 87,350 $ (902 ) $ 4,050 $ (275 ) $ (17,602 ) $ 72,621 Investments 168 (4 ) — — — 164 Liabilities ARS purchase commitments (2) 183 (39 ) — — 91 131 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. (Expressed in thousands) Level 3 Assets and Liabilities For the Three Months Ended June 30, 2017 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 36 $ — $ — $ — $ — $ 36 Auction rate securities (1) 89,743 502 17,050 (125 ) — 107,170 Investments 164 4 — — — 168 ARS purchase commitments (2) 878 (878 ) — — — — Liabilities ARS purchase commitments (2) 359 105 — — — 254 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the six months ended June 30, 2018 and 2017 : (Expressed in thousands) Level 3 Assets and Liabilities For the Six Months Ended June 30, 2018 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 35 $ 14 $ 76 $ (125 ) $ — $ — Auction rate securities (1) 87,398 (55 ) 4,100 (1,220 ) (17,602 ) 72,621 Investments 169 (5 ) — — — 164 Liabilities ARS purchase commitments (2) 8 (214 ) — — 91 131 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. (Expressed in thousands) Level 3 Assets and Liabilities For the Six Months Ended June 30, 2017 Beginning Balance Total Realized and Unrealized Gains (Losses) (3)(4) Purchases and Issuances Sales and Settlements Transfers In (Out) Ending Balance Assets Municipal obligations $ 44 $ (8 ) $ — $ — $ — $ 36 Auction rate securities (1) 84,926 1,144 22,050 (950 ) — 107,170 Investments 158 10 — — — 168 ARS purchase commitments (2) 849 (849 ) — — — — Liabilities ARS purchase commitments (2) 645 391 — — — 254 (1) Represents auction rate preferred securities, municipal auction rate securities and student loan auction rate securities that failed in the auction rate market. (2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period. (3) Included in principal transactions in the condensed consolidated statement of operations, except for gains (losses) from investments which are included in other income in the condensed consolidated statement of operations. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. |
Assets and Liabilities Not Measured at Fair Value on Recurring Basis | Assets and liabilities not measured at fair value as of June 30, 2018 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 28,461 $ 28,461 $ — $ — $ 28,461 Deposits with clearing organization 25,729 25,729 — — 25,729 Receivable from brokers, dealers and clearing organizations: Securities borrowed 122,238 — 122,238 — 122,238 Receivables from brokers 31,962 — 31,962 — 31,962 Securities failed to deliver 24,227 — 24,227 — 24,227 Clearing organizations 23,459 — 23,459 — 23,459 Other 1,603 — 1,603 — 1,603 203,489 — 203,489 — 203,489 Receivable from customers 835,708 — 835,708 — 835,708 Securities purchased under agreements to resell 6,738 — 6,738 — 6,738 Notes receivable, net 42,410 — 42,410 — 42,410 Investments (1) 65,601 — 65,601 — 65,601 (1) Included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 21,632 $ 21,632 $ — $ — $ 21,632 Bank call loans 107,500 — 107,500 — 107,500 Payables to brokers, dealers and clearing organizations: Securities loaned 199,598 — 199,598 — 199,598 Payable to brokers 18,984 — 18,984 — 18,984 Securities failed to receive 16,894 — 16,894 — 16,894 Other 45,186 — 45,186 — 45,186 280,662 — 280,662 — 280,662 Payables to customers 373,664 — 373,664 — 373,664 Securities sold under agreements to repurchase 599,151 — 599,151 — 599,151 Senior secured notes 200,000 — 204,174 — 204,174 Assets and liabilities not measured at fair value as of December 31, 2017 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 37,664 $ 37,664 $ — $ — $ 37,664 Deposits with clearing organization 7,929 7,929 — — 7,929 Receivable from brokers, dealers and clearing organizations: Securities borrowed 132,368 — 132,368 — 132,368 Receivables from brokers 19,298 — 19,298 — 19,298 Securities failed to deliver 9,442 — 9,442 — 9,442 Clearing organizations 24,361 — 24,361 — 24,361 Other 930 — 930 — 930 186,399 — 186,399 — 186,399 Receivable from customers 848,226 — 848,226 — 848,226 Securities purchased under agreements to resell 658 — 658 — 658 Notes receivable, net 40,520 — 40,520 — 40,520 Investments (1) 65,404 — 65,404 — 65,404 (1) Included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 42,212 $ 42,212 $ — $ — $ 42,212 Bank call loans 118,300 — 118,300 — 118,300 Payables to brokers, dealers and clearing organizations: Securities loaned 180,270 — 180,270 — 180,270 Payable to brokers 1,567 — 1,567 — 1,567 Securities failed to receive 17,559 — 17,559 — 17,559 Other 10,707 — 10,707 — 10,707 210,103 — 210,103 — 210,103 Payables to customers 385,907 — 385,907 — 385,907 Securities sold under agreements to repurchase 586,478 — 586,478 — 586,478 Senior secured notes 200,000 — 206,380 — 206,380 |
Notional Amounts and Fair Values of Derivatives by Product | The notional amounts and fair values of the Company's derivatives as of June 30, 2018 and December 31, 2017 by product were as follows: (Expressed in thousands) Fair Value of Derivative Instruments as of June 30, 2018 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 821,000 $ 1,777 Other TBAs (2) 31,366 1,038 $ 852,366 $ 2,815 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 4,981,000 $ 942 Other contracts Foreign exchange forward contracts 400 5 TBAs 821,000 1,749 Other TBAs (2) 31,366 966 ARS purchase commitments 12,162 222 $ 5,845,928 $ 3,884 (1) See "Derivative Instruments and Hedging Activities" above for description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset. (2) Represents TBA purchase and sale contracts related to the legacy OMHHF business. (Expressed in thousands) Fair Value of Derivative Instruments as of December 31, 2017 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 26,000 $ 22 Other TBAs (2) 39,576 694 $ 65,576 $ 716 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 5,844,000 $ 766 Other contracts TBAs 26,000 22 Other TBAs (2) 39,576 592 ARS purchase commitments 10,992 8 $ 5,920,568 $ 1,388 (1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. (2) Represents TBA purchase and sale contracts related to the legacy OMHHF business. |
Fair Value Amounts of Derivative Instruments and their Effect on Statement of Operations | The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the condensed consolidated statements of operations for the three months ended June 30, 2018 and 2017 : (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Operations For the Three Months Ended June 30, 2018 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 322 Other contracts Foreign exchange forward contracts Other revenue (5 ) Other contracts TBAs Principal transactions revenue 162 Other TBAs Other revenue 72 ARS purchase commitments Principal transactions revenue (39 ) $ 512 (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Operations For the Three Months Ended June 30, 2017 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ (8 ) Other contracts Foreign exchange forward contracts Other revenue 8 TBAs Principal transactions revenue 204 Other TBAs Other revenue 191 ARS purchase commitments Principal transactions revenue (773 ) $ (378 ) The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the condensed consolidated statements of operations for the six months ended June 30, 2018 and 2017 : (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Operations For the Six Months Ended June 30, 2018 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 1,351 Other contracts Foreign exchange forward contracts Other revenue (5 ) Other contracts TBAs Principal transactions revenue 196 Other TBAs Other revenue 147 ARS purchase commitments Principal transactions revenue (214 ) $ 1,475 (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Operations For the Six Months Ended June 30, 2017 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 234 Other contracts Foreign exchange forward contracts Other revenue 12 TBAs Principal transactions revenue 77 Other TBAs Other revenue 511 ARS purchase commitments Principal transactions revenue (458 ) $ 376 |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Brokers and Dealers [Abstract] | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | The following table presents a disaggregation of the gross obligation by the class of collateral pledged and the remaining contractual maturity of the repurchase agreements and securities loaned transactions as of June 30, 2018 : (Expressed in thousands) Overnight and Open Repurchase agreements: U.S. Government and Agency securities $ 694,162 Securities loaned: Equity securities 199,598 Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 893,760 |
Schedule of Gross Amounts and Offsetting Amounts of Reverse Repurchase Agreements, Repurchase Agreements, Securities Borrowed and Securities Lending Transactions | The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of June 30, 2018 and December 31, 2017 : As of June 30, 2018 (Expressed in thousands) Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Assets Gross Amounts Offset on the Balance Sheet Net Amounts of Assets Presented on the Balance Sheet Financial Instruments Cash Collateral Received Net Amount Reverse repurchase agreements $ 101,749 $ (95,011 ) $ 6,738 $ (6,431 ) $ — $ 307 Securities borrowed (1) 122,238 — 122,238 (117,374 ) — 4,864 Total $ 223,987 $ (95,011 ) $ 128,976 $ (123,805 ) $ — $ 5,171 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amounts of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount Repurchase agreements $ 694,162 $ (95,011 ) $ 599,151 $ (597,168 ) $ — $ 1,983 Securities loaned (2) 199,598 — 199,598 (188,954 ) — 10,644 Total $ 893,760 $ (95,011 ) $ 798,749 $ (786,122 ) $ — $ 12,627 (2) Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. As of December 31, 2017 (Expressed in thousands) Gross Amounts Not Offset Gross Gross Net Amounts Financial Cash Net Amount Reverse repurchase agreements $ 200,712 $ (200,054 ) $ 658 $ — $ — $ 658 Securities borrowed (1) 132,368 — 132,368 (128,575 ) — 3,793 Total $ 333,080 $ (200,054 ) $ 133,026 $ (128,575 ) $ — $ 4,451 (1) Included in receivable from brokers, dealers and clearing organizations on the condensed consolidated balance sheet. Gross Amounts Not Offset on the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amounts of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount Repurchase agreements $ 786,532 $ (200,054 ) $ 586,478 $ (585,289 ) $ — $ 1,189 Securities loaned (2) 180,270 — 180,270 (170,176 ) — 10,094 Total $ 966,802 $ (200,054 ) $ 766,748 $ (755,465 ) $ — $ 11,283 (2) Included in payable to brokers, dealers and clearing organizations on the condensed consolidated balance sheet. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entities | The following tables set forth the total VIE assets, the carrying value of the subsidiaries' variable interests, and the Company's maximum exposure to loss in Company-sponsored non-consolidated VIEs in which the Company holds variable interests and other non-consolidated VIEs in which the Company holds variable interests as of June 30, 2018 and December 31, 2017 : (Expressed in thousands) As of June 30, 2018 Total VIE Assets (1) Carrying Value of the Capital Commitments Maximum Exposure to Loss in Non-consolidated VIEs Assets (2) Liabilities Hedge funds $ 327,974 $ 717 $ — $ — $ 717 Private equity funds 9,108 12 — 1 13 Total $ 337,082 $ 729 $ — $ 1 $ 730 (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (2) Represents the Company's interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. (Expressed in thousands) As of December 31, 2017 Total (1) Carrying Value of the Capital Maximum Assets (2) Liabilities Hedge funds $ 328,172 $ 713 $ — $ — $ 713 Private equity funds 15,668 12 — 2 14 Total $ 343,840 $ 725 $ — $ 2 $ 727 (1) Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. (2) Represents the Company's interests in the VIEs and is included in other assets on the condensed consolidated balance sheet. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | (Expressed in thousands) Issued Maturity Date June 30, 2018 December 31, 2017 6.75% Senior Secured Notes 7/1/2022 $ 200,000 $ 200,000 Unamortized Debt Issuance Cost (1,034 ) (1,163 ) $ 198,966 $ 198,837 |
Share Capital (Tables)
Share Capital (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Number of Shares of Class A Stock Outstanding | The following table reflects changes in the number of shares of Class A Stock outstanding for the periods indicated: For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Class A Stock outstanding, beginning of period 13,141,103 13,182,332 13,139,203 13,261,095 Issued pursuant to shared-based compensation plans 15,250 — 17,150 179,020 Repurchased and canceled pursuant to the stock buy-back — (49,557 ) — (307,340 ) Class A Stock outstanding, end of period 13,156,353 13,132,775 13,156,353 13,132,775 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Reported Revenue and Profit Before Income Taxes | The table below presents information about the reported revenue and income (loss) before income taxes from continuing operations of the Company for the three and six months ended June 30, 2018 and 2017 . Asset information by reportable segment is not reported, since the Company does not produce such information for internal use by the chief operating decision maker. (Expressed in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Revenue Private client (1) $ 156,553 $ 140,252 $ 310,647 $ 277,641 Asset management (1) 17,706 19,304 35,350 37,970 Capital markets 68,206 53,707 129,735 109,610 Corporate/Other 91 2,621 1,354 3,924 Total $ 242,556 $ 215,884 $ 477,086 $ 429,145 Income (loss) before income taxes Private client (1) $ 33,513 $ 28,051 $ 73,675 $ 56,813 Asset management (1) 3,958 4,081 7,676 7,792 Capital markets (199 ) (10,982 ) (6,256 ) (23,596 ) Corporate/Other (24,771 ) (22,787 ) (52,969 ) (49,671 ) Total $ 12,501 $ (1,637 ) $ 22,126 $ (8,662 ) (1) Clients investing in the OAM advisory program are charged fees based on the value of AUM. Advisory fees are allocated 10.0% to the Asset Management and 90.0% to the Private Client segments. |
Revenue Classified by Major Geographic Areas | Revenue, classified by the major geographic areas in which it was earned, for the three and six months ended June 30, 2018 and 2017 was as follows: (Expressed in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Americas $ 234,471 $ 204,052 $ 460,083 $ 407,715 Europe/Middle East 7,222 10,904 14,745 19,364 Asia 863 928 2,258 2,066 Total $ 242,556 $ 215,884 $ 477,086 $ 429,145 |
Supplemental Guarantor Consol34
Supplemental Guarantor Consolidated Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Income Statement [Table Text Block] | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated REVENUES Commissions $ — $ — $ 166,257 $ — $ 166,257 Advisory fees — — 155,463 (645 ) 154,818 Investment banking — — 56,114 — 56,114 Bank deposit sweep income — — 54,150 — 54,150 Interest 3 4,120 25,317 (4,157 ) 25,283 Principal transactions, net — — 9,168 (42 ) 9,126 Other — 191 11,336 (189 ) 11,338 Total revenue 3 4,311 477,805 (5,033 ) 477,086 EXPENSES Compensation and related expenses 848 — 304,127 — 304,975 Communications and technology 88 — 36,597 — 36,685 Occupancy and equipment costs — — 30,518 (189 ) 30,329 Clearing and exchange fees — — 11,876 — 11,876 Interest 6,750 — 17,279 (4,157 ) 19,872 Other 665 1,102 50,143 (687 ) 51,223 Total expenses 8,351 1,102 450,540 (5,033 ) 454,960 Income (loss) before income taxes (8,348 ) 3,209 27,265 — 22,126 Income taxes (2,105 ) 633 8,050 — 6,578 Net income (loss) from continuing operations (6,243 ) 2,576 19,215 — 15,548 Equity in earnings of subsidiaries 21,803 19,227 — (41,030 ) — Net income 15,560 21,803 19,215 (41,030 ) 15,548 Less net loss attributable to non-controlling interest, net of tax — — (12 ) — (12 ) Net income attributable to Oppenheimer Holdings Inc. 15,560 21,803 19,227 (41,030 ) 15,560 Other comprehensive loss — — (979 ) — (979 ) Total comprehensive income $ 15,560 $ 21,803 $ 18,248 $ (41,030 ) $ 14,581 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2017 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 170,569 $ — $ 170,569 Advisory fees — — 142,855 (663 ) 142,192 Investment banking — — 36,407 (3,000 ) 33,407 Bank deposit sweep income — — 31,846 — 31,846 Interest — 5,138 23,407 (5,151 ) 23,394 Principal transactions, net — 15 10,660 — 10,675 Other — 178 17,061 (177 ) 17,062 Total revenue — 5,331 432,805 (8,991 ) 429,145 EXPENSES Compensation and related expenses 705 — 285,830 — 286,535 Communications and technology 79 — 36,026 — 36,105 Occupancy and equipment costs — — 30,610 (177 ) 30,433 Clearing and exchange fees — — 11,770 — 11,770 Interest 6,990 — 10,371 (5,151 ) 12,210 Other 4,249 267 59,901 (3,663 ) 60,754 Total expenses 12,023 267 434,508 (8,991 ) 437,807 Income (loss) before income taxes (12,023 ) 5,064 (1,703 ) — (8,662 ) Income taxes (4,626 ) 1,876 789 — (1,961 ) Net income (loss) from continuing operations (7,397 ) 3,188 (2,492 ) — (6,701 ) Discontinued operations Income from discontinued operations — — 1,065 — 1,065 Income taxes — — 425 — 425 Net income from discontinued operations — — 640 — 640 Equity in earnings of subsidiaries 1,231 (1,957 ) — 726 — Net income (loss) (6,166 ) 1,231 (1,852 ) 726 (6,061 ) Less net income attributable to non-controlling interest, net of tax — — 105 — 105 Net income (loss) attributable to Oppenheimer Holdings Inc. (6,166 ) 1,231 (1,957 ) 726 (6,166 ) Other comprehensive income — — 2,204 — 2,204 Total comprehensive income (loss) $ (6,166 ) $ 1,231 $ 247 $ 726 $ (3,962 ) OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated REVENUES Commissions $ — $ — $ 82,850 $ — $ 82,850 Advisory fees — — 77,589 (319 ) 77,270 Investment banking — — 27,904 — 27,904 Bank deposit sweep income — — 28,853 — 28,853 Interest 3 2,060 13,070 (2,077 ) 13,056 Principal transactions, net — — 6,409 (9 ) 6,400 Other — 95 6,222 (94 ) 6,223 Total revenue 3 2,155 242,897 (2,499 ) 242,556 EXPENSES Compensation and related expenses 522 — 151,349 — 151,871 Communications and technology 49 — 17,948 — 17,997 Occupancy and equipment costs — — 14,995 (94 ) 14,901 Clearing and exchange fees — — 5,780 — 5,780 Interest 3,375 — 9,611 (2,077 ) 10,909 Other 278 849 27,798 (328 ) 28,597 Total expenses 4,224 849 227,481 (2,499 ) 230,055 Income (loss) before income taxes (4,221 ) 1,306 15,416 — 12,501 Income taxes (1,065 ) 369 4,358 — 3,662 Net income (loss) from continuing operations (3,156 ) 937 11,058 — 8,839 Equity in earnings of subsidiaries 12,011 11,074 — (23,085 ) — Net income 8,855 12,011 11,058 (23,085 ) 8,839 Less net loss attributable to non-controlling interest, net of tax — — (16 ) — (16 ) Net income attributable to Oppenheimer Holdings Inc. 8,855 12,011 11,074 (23,085 ) 8,855 Other comprehensive loss — — (837 ) — (837 ) Total comprehensive income $ 8,855 $ 12,011 $ 10,237 $ (23,085 ) $ 8,018 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2017 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 83,852 $ — $ 83,852 Advisory fees — — 73,126 (343 ) 72,783 Investment banking — — 18,386 (3,000 ) 15,386 Bank deposit sweep income — — 17,720 — 17,720 Interest — 2,559 12,845 (2,575 ) 12,829 Principal transactions, net — 9 5,293 — 5,302 Other — 90 8,011 (89 ) 8,012 Total revenue — 2,658 219,233 (6,007 ) 215,884 EXPENSES Compensation and related expenses 367 — 142,290 — 142,657 Communications and technology 49 — 18,350 — 18,399 Occupancy and equipment costs — — 15,250 (89 ) 15,161 Clearing and exchange fees — — 5,916 — 5,916 Interest 3,709 — 5,720 (2,575 ) 6,854 Other 3,922 195 27,760 (3,343 ) 28,534 Total expenses 8,047 195 215,286 (6,007 ) 217,521 Income (loss) before income taxes (8,047 ) 2,463 3,947 — (1,637 ) Income taxes (3,098 ) 956 1,868 — (274 ) Net income (loss) from continuing operations (4,949 ) 1,507 2,079 — (1,363 ) Discontinued operations Income from discontinued operations — — 89 — 89 Income taxes — — 36 — 36 Net income from discontinued operations — — 53 — 53 Equity in earnings of subsidiaries 3,630 2,123 — (5,753 ) — Net income (loss) (1,319 ) 3,630 2,132 (5,753 ) (1,310 ) Less net income attributable to non-controlling interest, net of tax — — 9 — 9 Net income (loss) attributable to Oppenheimer Holdings Inc. (1,319 ) 3,630 2,123 (5,753 ) (1,319 ) Other comprehensive income — — 780 — 780 Total comprehensive income (loss) $ (1,319 ) $ 3,630 $ 2,903 $ (5,753 ) $ (539 ) |
Condensed Consolidating Balance Sheet | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF JUNE 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 668 $ 4,588 $ 33,705 $ — $ 38,961 Deposits with clearing organizations — — 56,864 — 56,864 Receivable from brokers, dealers and clearing organizations — — 204,527 — 204,527 Receivable from customers, net of allowance for credit losses of $848 — — 835,708 — 835,708 Income tax receivable 46,865 24,904 — (68,951 ) 2,818 Securities purchased under agreements to resell — — 6,738 — 6,738 Securities owned, including amounts pledged of $692,286, at fair value — 1,369 1,019,035 — 1,020,404 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,788 and $8,051, respectively — — 42,410 — 42,410 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $85,815 — 20,883 7,111 — 27,994 Subordinated loan receivable — 112,558 — (112,558 ) — Intangible assets — 400 31,700 — 32,100 Goodwill — — 137,889 — 137,889 Other assets 120 2,580 112,167 — 114,867 Deferred tax assets 122 118 18,641 (18,881 ) — Investment in subsidiaries 643,205 526,774 — (1,169,979 ) — Intercompany receivables 48,843 49,627 — (98,470 ) — Total assets $ 739,823 $ 743,801 $ 2,506,495 $ (1,468,839 ) $ 2,521,280 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 21,632 $ — $ 21,632 Bank call loans — — 107,500 — 107,500 Payable to brokers, dealers and clearing organizations — — 282,542 — 282,542 Payable to customers — — 373,664 — 373,664 Securities sold under agreements to repurchase — — 599,151 — 599,151 Securities sold but not yet purchased, at fair value — — 162,042 — 162,042 Accrued compensation — — 128,985 — 128,985 Accounts payable and other liabilities 125 33,496 60,732 — 94,353 Income tax payable 2,440 22,189 44,322 (68,951 ) — Senior secured notes, net of debt issuance cost of $1,034 198,966 — — — 198,966 Subordinated indebtedness — — 112,558 (112,558 ) — Deferred tax liabilities — — 32,685 (18,881 ) 13,804 Intercompany payables — 28,141 70,329 (98,470 ) — Total liabilities 201,531 83,826 1,996,142 (298,860 ) 1,982,639 Stockholders' equity Stockholders' equity attributable to Oppenheimer Holdings Inc. 538,292 659,975 510,004 (1,169,979 ) 538,292 Non-controlling interest — — 349 — 349 Total stockholders' equity 538,292 659,975 510,353 (1,169,979 ) 538,641 Total liabilities and stockholders' equity $ 739,823 $ 743,801 $ 2,506,495 $ (1,468,839 ) $ 2,521,280 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2017 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 7,442 $ 3,716 $ 36,996 $ — $ 48,154 Deposits with clearing organizations — — 42,222 — 42,222 Receivable from brokers, dealers and clearing organizations — — 187,115 — 187,115 Receivable from customers, net of allowance for credit losses of $769 — — 848,226 — 848,226 Income tax receivable 45,998 26,025 — (69,084 ) 2,939 Securities purchased under agreements to resell — — 658 — 658 Securities owned, including amounts pledged of $655,683, at fair value — 1,386 925,211 — 926,597 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,705 and $7,975, respectively — — 40,520 — 40,520 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $82,826 — 20,221 6,966 — 27,187 Subordinated loan receivable — 112,558 — (112,558 ) — Intangible assets — — 31,700 — 31,700 Goodwill — — 137,889 — 137,889 Other assets 133 2,573 142,604 — 145,310 Deferred tax assets 3,502 — 18,463 (21,965 ) — Investment in subsidiaries 622,824 507,747 — (1,130,571 ) — Intercompany receivables 52,149 83,437 — (135,586 ) — Total assets $ 732,048 $ 757,663 $ 2,418,570 $ (1,469,764 ) $ 2,438,517 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 42,412 $ — $ 42,412 Bank call loans — — 118,300 — 118,300 Payable to brokers, dealers and clearing organizations — — 211,483 — 211,483 Payable to customers — — 385,907 — 385,907 Securities sold under agreements to repurchase — — 586,478 — 586,478 Securities sold but not yet purchased, at fair value — — 94,486 — 94,486 Accrued compensation — — 173,116 — 173,116 Accounts payable and other liabilities 7,221 33,994 51,280 — 92,495 Income tax payable 2,440 22,189 44,455 (69,084 ) — Senior secured notes, net of debt issuance costs of $1,163 198,837 — — — 198,837 Subordinated indebtedness — — 112,558 (112,558 ) — Deferred tax liabilities — 17 33,040 (21,965 ) 11,092 Intercompany payables — 62,163 73,423 (135,586 ) — Total liabilities 208,498 118,363 1,926,938 (339,193 ) 1,914,606 Stockholders' equity Stockholders' equity attributable to Oppenheimer Holdings Inc. 523,550 639,300 491,271 (1,130,571 ) 523,550 Non-controlling interest — — 361 — 361 Total stockholders' equity 523,550 639,300 491,632 (1,130,571 ) 523,911 Total liabilities and stockholders' equity $ 732,048 $ 757,663 $ 2,418,570 $ (1,469,764 ) $ 2,438,517 |
Condensed Consolidating Statement of Cash Flows | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ (1,417 ) $ 1,272 $ 11,456 $ — $ 11,311 Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (3,947 ) — (3,947 ) Purchase of tangible assets — (400 ) — — (400 ) Cash used in investing activities — (400 ) (3,947 ) — (4,347 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (2,913 ) — — — (2,913 ) Payments for employee taxes withheld related to vested share-based awards (2,444 ) — — — (2,444 ) Increase in bank call loans, net — — (10,800 ) — (10,800 ) Cash used in financing activities (5,357 ) — (10,800 ) — (16,157 ) Net increase (decrease) in cash and cash equivalents (6,774 ) 872 (3,291 ) — (9,193 ) Cash and cash equivalents, beginning of the period 7,442 3,716 36,996 — 48,154 Cash and cash equivalents, end of the period $ 668 $ 4,588 $ 33,705 $ — $ 38,961 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2017 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ 34,273 $ (7,052 ) $ (97,606 ) $ — $ (70,385 ) Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (2,075 ) — (2,075 ) Proceeds from settlement of company-owned life insurance — — 1,194 — 1,194 Cash used in investing activities — — (881 ) — (881 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (2,940 ) — — — (2,940 ) Cash dividends paid to non-controlling interest — — (816 ) — (816 ) Repurchase of Class A non-voting common stock for cancellation (5,159 ) — — — (5,159 ) Payments for employee taxes withheld related to vested share-based awards (2,203 ) — — — (2,203 ) Issuance of senior secured notes 200,000 — — — 200,000 Redemption of senior secured notes (150,000 ) — — — (150,000 ) Debt issuance costs (547 ) — — — (547 ) Increase in bank call loans, net — — 84,600 — 84,600 Cash provided by financing activities 39,151 — 83,784 — 122,935 Net increase (decrease) in cash and cash equivalents 73,424 (7,052 ) (14,703 ) — 51,669 Cash and cash equivalents, beginning of the period 229 10,284 54,400 — 64,913 Cash and cash equivalents, end of the period $ 73,653 $ 3,232 $ 39,697 $ — $ 116,582 |
Organization - Additional Infor
Organization - Additional Information (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2018USD ($)office | Dec. 31, 2017USD ($) | |
Organization And Basis Of Presentation [Line Items] | ||
Ownership interest in subsidiary | 83.68% | |
Non-controlling interest | $ | $ 349,000 | $ 361,000 |
Americas | ||
Organization And Basis Of Presentation [Line Items] | ||
Number of offices providing services | office | 91 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Additional Information (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 83.68% | |
Non-controlling interest | $ 349,000 | $ 361,000 |
Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of business days for related transactions | 1 day | |
Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of business days for related transactions | 2 days |
Revenues from contracts with 37
Revenues from contracts with customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 220,720 | $ 439,436 | ||
Interest | 13,056 | $ 12,829 | 25,283 | $ 23,394 |
Principal transactions, net | 6,400 | 5,302 | 9,126 | 10,675 |
Other | 2,380 | 3,241 | ||
Total other sources of revenue | 21,836 | 37,650 | ||
Total revenue | 242,556 | 215,884 | 477,086 | 429,145 |
Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 72,177 | 144,467 | ||
Mutual fund income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 10,673 | 21,790 | ||
Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 77,270 | 154,818 | ||
Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 19,665 | 38,431 | ||
Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,239 | 17,683 | ||
Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 28,853 | 54,150 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,843 | 8,097 | ||
Private Client | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 145,060 | 290,243 | ||
Interest | 9,514 | 18,351 | ||
Principal transactions, net | 212 | 132 | ||
Other | 1,767 | 1,921 | ||
Total other sources of revenue | 11,493 | 20,404 | ||
Total revenue | 156,553 | 140,252 | 310,647 | 277,641 |
Private Client | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 39,093 | 79,371 | ||
Private Client | Mutual fund income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 10,441 | 21,268 | ||
Private Client | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 59,774 | 119,910 | ||
Private Client | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,469 | 7,839 | ||
Private Client | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Private Client | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 28,853 | 54,150 | ||
Private Client | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,430 | 7,705 | ||
Asset Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 17,710 | 35,349 | ||
Interest | (4) | 1 | ||
Principal transactions, net | 0 | 0 | ||
Other | 0 | 0 | ||
Total other sources of revenue | (4) | 1 | ||
Total revenue | 17,706 | 19,304 | 35,350 | 37,970 |
Asset Management | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Asset Management | Mutual fund income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 222 | 505 | ||
Asset Management | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 17,485 | 34,838 | ||
Asset Management | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Asset Management | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Asset Management | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Asset Management | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3 | 6 | ||
Capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 57,922 | 113,787 | ||
Interest | 3,263 | 6,468 | ||
Principal transactions, net | 6,989 | 9,381 | ||
Other | 32 | 99 | ||
Total other sources of revenue | 10,284 | 15,948 | ||
Total revenue | 68,206 | $ 53,707 | 129,735 | $ 109,610 |
Capital markets | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 33,022 | 65,019 | ||
Capital markets | Mutual fund income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5 | 7 | ||
Capital markets | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3 | 54 | ||
Capital markets | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16,196 | 30,592 | ||
Capital markets | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,239 | 17,683 | ||
Capital markets | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Capital markets | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 457 | 432 | ||
Corporate and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 28 | 57 | ||
Interest | 283 | 463 | ||
Principal transactions, net | (801) | (387) | ||
Other | 581 | 1,221 | ||
Total other sources of revenue | 63 | 1,297 | ||
Total revenue | 91 | 1,354 | ||
Corporate and Other [Member] | Commissions from sales and trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 62 | 77 | ||
Corporate and Other [Member] | Mutual fund income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5 | 10 | ||
Corporate and Other [Member] | Advisory fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8 | 16 | ||
Corporate and Other [Member] | Investment banking - capital markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Corporate and Other [Member] | Investment banking - advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Corporate and Other [Member] | Bank deposit sweep income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
Corporate and Other [Member] | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ (47) | $ (46) |
Revenues from contracts with 38
Revenues from contracts with customers Revenues from contracts with customers (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jan. 01, 2018 | |
Capitalized Contract Cost [Line Items] | ||
Contract Revenue Cost | $ 1,600 | |
Contract assets | 22,335 | $ 18,631 |
Deferred income, IRA fees | 1,965 | 0 |
Commission | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 3,059 | 2,007 |
Mutual Fund Income | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 7,308 | 7,779 |
Advisory fees | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 750 | 1,460 |
Bank Deposit Sweep Income | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 3,874 | 3,459 |
Investment Banking Fees | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 4,683 | 3,926 |
Other Income [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 2,661 | 0 |
Investment Banking Fees | ||
Capitalized Contract Cost [Line Items] | ||
Deferred income, IRA fees | 450 | 0 |
IRA Fees [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Deferred income, IRA fees | $ 1,515 | $ 0 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Earnings Per Share [Abstract] | |||||
Basic weighted average number of shares outstanding | 13,248,812 | 13,260,855 | 13,244,245 | 13,329,670 | |
Net dilutive effect of share-based awards, treasury method | [1] | 801,761 | 0 | 761,311 | 0 |
Diluted weighted average number of shares outstanding | 14,050,573 | 13,260,855 | 14,005,556 | 13,329,670 | |
Net income (loss) from continuing operations | $ 8,839 | $ (1,363) | $ 15,548 | $ (6,701) | |
Net income from discontinued operations | 0 | 53 | 0 | 640 | |
Net income (loss) | 8,839 | (1,310) | 15,548 | (6,061) | |
Net income attributable to non-controlling interest, net of tax | (16) | 9 | (12) | 105 | |
Net income (loss) attributable to Oppenheimer Holdings Inc. | $ 8,855 | $ (1,319) | $ 15,560 | $ (6,166) | |
Continuing operations (in dollars per share) | $ 0.67 | $ (0.10) | $ 1.17 | $ (0.50) | |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.04 | |
Net income (loss) per share | 0.67 | (0.10) | 1.17 | (0.46) | |
Continuing operations (in dollars per share) | 0.63 | (0.10) | 1.11 | (0.50) | |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.04 | |
Net loss per share (in dollars per share) | $ 0.63 | $ (0.10) | $ 1.11 | $ (0.46) | |
[1] | For both the three and six months ended June 30, 2018, the diluted net income (loss) per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements (1,336,424 shares for both the three and six months ended June 30, 2017).(2)Represents net income from discontinued operations less net income attributable to non-controlling interest, net of tax divided by weighted average number of shares outstanding. |
Earnings Per Share - Summary 40
Earnings Per Share - Summary of Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Class A Stock | ||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Number of anti-dilutive warrants, options and restricted shares, for the year | 4,050 | 1,336,424 | 4,050 | 1,336,424 |
Receivable from and Payable t41
Receivable from and Payable to Brokers, Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Receivable from brokers, dealers and clearing organizations consists of: | ||
Securities borrowed | $ 122,238 | $ 132,368 |
Receivable from brokers | 31,962 | 19,298 |
Securities failed to deliver | 24,227 | 9,442 |
Clearing organizations | 23,459 | 24,361 |
Other | 2,641 | 1,646 |
Receivables from broker, dealers and clearing organizations | 204,527 | 187,115 |
Payable to brokers, dealers and clearing organizations consists of: | ||
Securities loaned | 199,598 | 180,270 |
Due to Correspondent Brokers | 18,984 | 1,567 |
Securities failed to receive | 16,894 | 17,559 |
Other | 47,066 | 12,087 |
Payable to brokers, dealers and clearing organizations | $ 282,542 | $ 211,483 |
Fair Value Measurements - Secur
Fair Value Measurements - Securities Owned and Securities Sold, But Not Yet Purchased at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Securities owned, including amounts pledged of $0 ($546,334 in 2015), at fair value | $ 1,020,404 | $ 926,597 |
Securities Sold | 162,042 | 94,486 |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 1,020,404 | 926,597 |
Corporate debt and other obligations | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Securities owned, including amounts pledged of $0 ($546,334 in 2015), at fair value | 24,813 | 12,538 |
Securities Sold | 5,289 | 4,357 |
Municipal obligations | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Securities owned, including amounts pledged of $0 ($546,334 in 2015), at fair value | 116,612 | 89,653 |
Convertible bonds | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Securities owned, including amounts pledged of $0 ($546,334 in 2015), at fair value | 41,135 | 23,216 |
Securities Sold | $ 7,496 | $ 10,109 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Level Three Principal Amount | $ 104,462,000 | $ 104,462,000 |
Valuation Adjustment For Level Three Asset and Liability | 2,299,000 | 2,299,000 |
Fair Value Of Level Three Assets and Liabilities | 102,163,000 | 102,163,000 |
Auction rate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Level Three Principal Amount | 92,300,000 | 92,300,000 |
Valuation Adjustment | 2,077,000 | 2,077,000 |
Fair Value | 90,223,000 | 90,223,000 |
Auction Rate Preferred Securities 01 [Member] | Auction rate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Level Three Principal Amount | 18,725,000 | 18,725,000 |
Valuation Adjustment | 1,123,000 | 1,123,000 |
Fair Value | 17,602,000 | $ 17,602,000 |
Valuation Technique | Tender Offer (4) | |
Municipal Auction Rate Securities [Member] | Auction rate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Level Three Principal Amount | 25,000 | $ 25,000 |
Valuation Adjustment | 0 | 0 |
Fair Value | $ 25,000 | $ 25,000 |
Valuation Technique | Par | |
Student Loan Auction Rate Securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Spread To U S Treasury Rate | 1.20% | 1.20% |
U S Treasury Rate | 2.76% | 2.76% |
Student Loan Auction Rate Securities | Auction rate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Level Three Principal Amount | $ 275,000 | $ 275,000 |
Valuation Adjustment | 13,000 | 13,000 |
Fair Value | $ 262,000 | $ 262,000 |
Valuation Technique | Discounted Cash Flow | |
Discount Rate | 3.96% | |
Fair Value Unobservable Inputs Duration | 5 years 6 months | |
Fair Value Unobservable Input Current Yield | 2.95% | 2.95% |
Student Loan Auction Rate Securities | Weighted Average [Member] | Auction rate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 3.96% | |
Fair Value Unobservable Inputs Duration | 5 years 6 months | |
Fair Value Unobservable Input Current Yield | 2.95% | 2.95% |
Auction Rate Preferred Securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
U S Treasury Rate | 2.58% | 2.58% |
Auction Rate Preferred Securities | Auction rate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Level Three Principal Amount | $ 73,275,000 | $ 73,275,000 |
Valuation Adjustment | 941,000 | 941,000 |
Fair Value | $ 72,334,000 | $ 72,334,000 |
Valuation Technique | Discounted Cash Flow | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Auction Rate Preferred Securities | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Spread To U S Treasury Rate | 110.00% | 110.00% |
Auction Rate Preferred Securities | Minimum [Member] | Auction rate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 2.83% | |
Fair Value Unobservable Input Current Yield | 2.36% | 2.36% |
Auction Rate Preferred Securities | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Spread To U S Treasury Rate | 150.00% | 150.00% |
Auction Rate Preferred Securities | Maximum [Member] | Auction rate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 3.86% | |
Fair Value Unobservable Input Current Yield | 3.21% | 3.21% |
Auction Rate Preferred Securities | Weighted Average [Member] | Auction rate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 3.22% | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Fair Value Unobservable Input Current Yield | 2.68% | 2.68% |
Fair Value, Valuation Scenario One [Member] | Auction rate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Sensitivity Analysis Of Fair Value Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities Change In Discount Rate | 25.00% | 25.00% |
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of Other than 10 or 20 Percent Adverse Change in Discount Rate | $ 493,000 | $ 493,000 |
Fair Value, Valuation Scenario Two [Member] | Auction rate securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Sensitivity Analysis Of Fair Value Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities Change In Discount Rate | 50.00% | 50.00% |
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of Other than 10 or 20 Percent Adverse Change in Discount Rate | $ 982,000 | $ 982,000 |
Auction Rate Securities Purchase Commitment | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 91,000 | |
Level Three Principal Amount | 12,162,000 | 12,162,000 |
Valuation Adjustment For Level Three Liabilities | 222,000 | 222,000 |
Fair Value Of Level Three Liabilities | 11,940,000 | 11,940,000 |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities 01 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Level Three Principal Amount | 1,515,000 | 1,515,000 |
Valuation Adjustment For Level Three Liabilities | 91,000 | 91,000 |
Fair Value Of Level Three Liabilities | 1,424,000 | $ 1,424,000 |
Valuation Technique | Tender Offer (4) | |
Auction Rate Securities Purchase Commitment | Municipal Auction Rate Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Level Three Principal Amount | 2,000 | $ 2,000 |
Valuation Adjustment For Level Three Liabilities | 0 | 0 |
Fair Value Of Level Three Liabilities | 2,000 | $ 2,000 |
Valuation Technique | Par | |
Auction Rate Securities Purchase Commitment | Student Loan Auction Rate Securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Level Three Principal Amount | 25,000 | $ 25,000 |
Valuation Adjustment For Level Three Liabilities | 1,000 | 1,000 |
Fair Value Of Level Three Liabilities | $ 24,000 | $ 24,000 |
Valuation Technique | Discounted Cash Flow | |
Discount Rate | 3.96% | |
Fair Value Unobservable Inputs Duration | 5 years 6 months | |
Fair Value Unobservable Input Current Yield | 2.95% | 2.95% |
Auction Rate Securities Purchase Commitment | Student Loan Auction Rate Securities | Weighted Average [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 3.96% | |
Fair Value Unobservable Inputs Duration | 5 years 6 months | |
Fair Value Unobservable Input Current Yield | 2.95% | 2.95% |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Level Three Principal Amount | $ 10,620,000 | $ 10,620,000 |
Valuation Adjustment For Level Three Liabilities | 130,000 | 130,000 |
Fair Value Of Level Three Liabilities | $ 10,490,000 | $ 10,490,000 |
Valuation Technique | Discounted Cash Flow | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 2.83% | |
Fair Value Unobservable Input Current Yield | 2.36% | 2.36% |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 3.86% | |
Fair Value Unobservable Input Current Yield | 3.21% | 3.21% |
Auction Rate Securities Purchase Commitment | Auction Rate Preferred Securities | Weighted Average [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount Rate | 3.22% | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Fair Value Unobservable Input Current Yield | 2.68% | 2.68% |
Fair Value Measurements - Inves
Fair Value Measurements - Investments in Company-Sponsored Funds (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Investment Holdings [Line Items] | |
Fair Value | $ 7,632 |
Unfunded Commitments | $ 1,400 |
Hedge Funds [Member] | |
Investment Holdings [Line Items] | |
Investment Redemption Notice Period Minimum | 30 days |
Investment Redemption Notice Period Maximum | 120 days |
Fair Value | $ 2,624 |
Unfunded Commitments | $ 0 |
Redemption Frequency | Quarterly - Annually |
Private Equity Funds | |
Investment Holdings [Line Items] | |
Investments Lock In Period | 10 years |
Fair Value | $ 5,008 |
Unfunded Commitments | $ 1,400 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | |
ASSETS | ||||
Cash equivalents | $ 10,500,000 | $ 10,490,000 | ||
Deposits with clearing organizations | 31,135,000 | 34,293,000 | ||
Securities owned | ||||
Securities owned, at fair value | 1,020,404,000 | 926,597,000 | ||
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 1,020,404,000 | 926,597,000 | ||
Investments | 7,632,000 | |||
Derivative contracts | ||||
Total | 1,065,018,000 | 972,265,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 162,042,000 | 94,486,000 | ||
Derivative contracts: | ||||
Derivative contracts | 3,884,000 | 1,388,000 | ||
Total | 165,926,000 | 95,874,000 | ||
Future [Member] | ||||
Derivative contracts: | ||||
Derivative contracts | 942,000 | 766,000 | ||
Foreign exchange forward contracts | ||||
Derivative contracts: | ||||
Derivative contracts | 5,000 | |||
TBAs | ||||
Derivative contracts | ||||
Derivative contracts, total | 2,815,000 | 716,000 | ||
Derivative contracts: | ||||
Derivative contracts | 2,715,000 | 614,000 | ||
Investments | ||||
Securities owned | ||||
Investments | 164,000 | 169,000 | ||
Equity Securities [Member] | ||||
Securities owned | ||||
Securities owned, at fair value | 33,112,000 | 34,067,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 26,978,000 | 25,393,000 | ||
Money Market Funds [Member] | ||||
Securities owned | ||||
Securities owned, at fair value | 383,000 | |||
Auction rate securities | ||||
Securities owned | ||||
Securities owned, at fair value | 90,223,000 | 111,853,000 | ||
U.S. Treasury securities | ||||
Securities owned | ||||
Securities owned, at fair value | 690,988,000 | 640,337,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 115,465,000 | 53,425,000 | ||
US Government Agencies Debt Securities [Member] | ||||
Securities owned | ||||
Securities owned, at fair value | 16,447,000 | 9,905,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 6,000 | 13,000 | ||
Sovereign obligations | ||||
Securities owned | ||||
Securities owned, at fair value | 204,000 | 608,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 1,179,000 | |||
Corporate debt and other obligations | ||||
Securities owned | ||||
Securities owned, at fair value | 24,813,000 | 12,538,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 5,289,000 | 4,357,000 | ||
Mortgage and other asset-backed securities | ||||
Securities owned | ||||
Securities owned, at fair value | 6,870,000 | 4,037,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 6,808,000 | 10,000 | ||
Municipal obligations | ||||
Securities owned | ||||
Securities owned, at fair value | 116,612,000 | 89,653,000 | ||
Convertible bonds | ||||
Securities owned | ||||
Securities owned, at fair value | 41,135,000 | 23,216,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 7,496,000 | 10,109,000 | ||
Level 1 | ||||
ASSETS | ||||
Cash equivalents | 10,500,000 | 10,490,000 | ||
Deposits with clearing organizations | 31,135,000 | 34,293,000 | ||
Securities owned | ||||
Securities owned, at fair value | 732,641,000 | 677,798,000 | ||
Derivative contracts | ||||
Total | 774,276,000 | 722,581,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 142,443,000 | 78,818,000 | ||
Derivative contracts: | ||||
Derivative contracts | 947,000 | 766,000 | ||
Total | 143,390,000 | 79,584,000 | ||
Level 1 | Future [Member] | ||||
Derivative contracts: | ||||
Derivative contracts | 942,000 | 766,000 | ||
Level 1 | Foreign exchange forward contracts | ||||
Derivative contracts: | ||||
Derivative contracts | 5,000 | |||
Level 1 | Corporate equities | ||||
Securities owned | ||||
Securities owned, at fair value | 33,112,000 | 34,067,000 | ||
Level 1 | Equity Securities [Member] | ||||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 26,978,000 | 25,393,000 | ||
Level 1 | Money markets | ||||
Securities owned | ||||
Securities owned, at fair value | 383,000 | |||
Level 1 | Auction rate securities | ||||
Securities owned | ||||
Securities owned, at fair value | 0 | |||
Level 1 | U.S. Treasury securities | ||||
Securities owned | ||||
Securities owned, at fair value | 690,988,000 | 640,337,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 115,465,000 | 53,425,000 | ||
Level 1 | US Government Agencies Debt Securities [Member] | ||||
Securities owned | ||||
Securities owned, at fair value | 8,541,000 | 3,011,000 | ||
Level 2 | ||||
Securities owned | ||||
Securities owned, at fair value | 215,142,000 | 161,366,000 | ||
Derivative contracts | ||||
Total | 217,957,000 | 162,082,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 19,599,000 | 15,668,000 | ||
Derivative contracts: | ||||
Derivative contracts | 2,806,000 | 614,000 | ||
Total | 22,405,000 | 16,282,000 | ||
Level 2 | TBAs | ||||
Derivative contracts | ||||
Derivative contracts, total | 2,815,000 | 716,000 | ||
Derivative contracts: | ||||
Derivative contracts | 2,715,000 | 614,000 | ||
Level 2 | Equity Securities [Member] | ||||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 0 | |||
Level 2 | Auction rate securities | ||||
Securities owned | ||||
Securities owned, at fair value | 17,602,000 | 24,455,000 | ||
Level 2 | US Government Agencies Debt Securities [Member] | ||||
Securities owned | ||||
Securities owned, at fair value | 7,906,000 | 6,894,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 6,000 | 13,000 | ||
Level 2 | Sovereign obligations | ||||
Securities owned | ||||
Securities owned, at fair value | 204,000 | 608,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 1,179,000 | |||
Level 2 | Corporate debt and other obligations | ||||
Securities owned | ||||
Securities owned, at fair value | 24,813,000 | 12,538,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 5,289,000 | 4,357,000 | ||
Level 2 | Mortgage and other asset-backed securities | ||||
Securities owned | ||||
Securities owned, at fair value | 6,870,000 | 4,037,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 6,808,000 | 10,000 | ||
Level 2 | Municipal obligations | ||||
Securities owned | ||||
Securities owned, at fair value | 116,612,000 | 89,618,000 | ||
Level 2 | Convertible bonds | ||||
Securities owned | ||||
Securities owned, at fair value | 41,135,000 | 23,216,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 7,496,000 | 10,109,000 | ||
Level 3 | ||||
Securities owned | ||||
Securities owned, at fair value | 72,621,000 | 87,433,000 | ||
Derivative contracts | ||||
Total | 72,785,000 | 87,602,000 | ||
Securities sold, but not yet purchased | ||||
Securities sold but not yet purchased, at fair value | 0 | |||
Derivative contracts: | ||||
Derivative contracts | 131,000 | 8,000 | ||
Total | 131,000 | 8,000 | ||
Level 3 | Investments | ||||
Securities owned | ||||
Investments | 164,000 | 169,000 | ||
Level 3 | Auction rate securities | ||||
Securities owned | ||||
Securities owned, at fair value | 72,621,000 | 87,398,000 | ||
Level 3 | Municipal obligations | ||||
Securities owned | ||||
Securities owned, at fair value | 35,000 | |||
Auction rate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers, Net | 17,600,000 | $ 0 | $ 0 | |
ARS purchase commitments | ||||
Derivative contracts: | ||||
Derivative contracts | 222,000 | 8,000 | ||
ARS purchase commitments | Level 2 | ||||
Derivative contracts: | ||||
Derivative contracts | 91,000 | |||
ARS purchase commitments | Level 3 | ||||
Derivative contracts: | ||||
Derivative contracts | $ 131,000 | $ 8,000 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | $ (10,000) | |||
Assets Beginning Balance | 158,000 | |||
Purchases and Issuances | 0 | |||
Sales and Settlements | 0 | |||
Transfers In (Out) | 0 | |||
Assets Ending Balance | $ 168,000 | 168,000 | ||
Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | $ 4,000 | (4,000) | ||
Assets Beginning Balance | 168,000 | 164,000 | ||
Assets Ending Balance | 164,000 | 168,000 | $ 164,000 | 168,000 |
Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 5,000 | |||
Assets Beginning Balance | 169,000 | |||
Purchases and Issuances | 0 | |||
Sales and Settlements | 0 | |||
Transfers In (Out) | 0 | |||
Assets Ending Balance | 164,000 | 164,000 | ||
Municipal obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | (14,000) | 8,000 | |
Assets Beginning Balance | 36,000 | 35,000 | 44,000 | |
Purchases and Issuances | (76,000) | 0 | ||
Sales and Settlements | (125,000) | 0 | ||
Transfers In (Out) | 0 | 0 | ||
Assets Ending Balance | 0 | 36,000 | 0 | 36,000 |
ARS purchase commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 878,000 | 849,000 | ||
Assets Beginning Balance | 878,000 | 849,000 | ||
Purchases and Issuances | 0 | |||
Sales and Settlements | 0 | |||
Transfers In (Out) | 0 | |||
Assets Ending Balance | 0 | 0 | ||
Auction rate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 902,000 | (502,000) | 55,000 | 1,144,000 |
Assets Beginning Balance | 87,350,000 | 89,743,000 | 87,398,000 | (84,926,000) |
Purchases and Issuances | (4,050,000) | (17,050,000) | (4,100,000) | 22,050,000 |
Sales and Settlements | (275,000) | (125,000) | (1,220,000) | (950,000) |
Transfers In (Out) | 17,602,000 | 17,602,000 | 0 | |
Assets Ending Balance | 72,621,000 | 107,170,000 | 72,621,000 | 107,170,000 |
ARS purchase commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Purchases and Issuances | 0 | |||
Sales and Settlements | 0 | |||
Transfers In (Out) | (91,000) | |||
Liabilities Beginning Balance | 183,000 | 359,000 | 8,000 | 645,000 |
Total Realized and Unrealized Gains (Loss), Liabilities | (39,000) | 105,000 | (214,000) | 391,000 |
Liabilities Ending Balance | 131,000 | 254,000 | $ 131,000 | 254,000 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 91,000 | |||
Auction rate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers, Net | $ 17,600,000 | $ 0 | $ 0 |
Fair Value Measurements - Ass47
Fair Value Measurements - Assets and Liabilities Not Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ||
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | $ 1,020,404 | $ 926,597 |
Securities purchased under agreements to resell, at fair value | 6,738 | 658 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ||
Cash | 28,461 | 37,664 |
Deposits with clearing organization | 25,729 | 7,929 |
Securities borrowed | 122,238 | 132,368 |
Receivables from brokers | 31,962 | 19,298 |
Securities failed to deliver | 24,227 | 9,442 |
Clearing organizations | 23,459 | 24,361 |
Other | 1,603 | 930 |
Total Receivable from brokers, dealers and clearing organizations | 203,489 | 186,399 |
Receivable from customers | 835,708 | 848,226 |
Securities purchased under agreements to resell, at fair value | 6,738 | 658 |
Fair Value, Estimate not Practicable, Due from Employees | 42,410 | 40,520 |
Drafts payable | 21,632 | 42,212 |
Bank call loans | 107,500 | 118,300 |
Securities loaned | 199,598 | 180,270 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 18,984 | 1,567 |
Securities failed to receive | 16,894 | 17,559 |
Other | 45,186 | 10,707 |
Total payables to brokers, dealers and clearing organizations | 280,662 | 210,103 |
Payables to customers | 373,664 | 385,907 |
Securities sold under agreements to repurchase | 599,151 | 586,478 |
Senior secured notes | 204,174 | 206,380 |
Fair Value, Estimate Not Practicable, Investments | 65,601 | 65,404 |
Level 1 | Fair Value, Measurements, Nonrecurring [Member] | ||
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ||
Cash | 28,461 | 37,664 |
Deposits with clearing organization | 25,729 | 7,929 |
Drafts payable | 21,632 | 42,212 |
Level 2 | Fair Value, Measurements, Nonrecurring [Member] | ||
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ||
Securities borrowed | 122,238 | 132,368 |
Receivables from brokers | 31,962 | 19,298 |
Securities failed to deliver | 24,227 | 9,442 |
Clearing organizations | 23,459 | 24,361 |
Other | 1,603 | 930 |
Total Receivable from brokers, dealers and clearing organizations | 203,489 | 186,399 |
Receivable from customers | 835,708 | 848,226 |
Securities purchased under agreements to resell, at fair value | 6,738 | 658 |
Fair Value, Estimate not Practicable, Due from Employees | 42,410 | 40,520 |
Bank call loans | 107,500 | 118,300 |
Securities loaned | 199,598 | 180,270 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 18,984 | 1,567 |
Securities failed to receive | 16,894 | 17,559 |
Other | 45,186 | 10,707 |
Total payables to brokers, dealers and clearing organizations | 280,662 | 210,103 |
Payables to customers | 373,664 | 385,907 |
Securities sold under agreements to repurchase | 599,151 | 586,478 |
Senior secured notes | 204,174 | 206,380 |
Fair Value, Estimate Not Practicable, Investments | 65,601 | 65,404 |
Carrying Value [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Financial Instruments Not Measured at Fair Value on Recurring Basis [Line items] | ||
Cash | 28,461 | 37,664 |
Deposits with clearing organization | 25,729 | 7,929 |
Securities borrowed | 122,238 | 132,368 |
Receivables from brokers | 31,962 | 19,298 |
Securities failed to deliver | 24,227 | 9,442 |
Clearing organizations | 23,459 | 24,361 |
Other | 1,603 | 930 |
Total Receivable from brokers, dealers and clearing organizations | 203,489 | 186,399 |
Receivable from customers | 835,708 | 848,226 |
Securities purchased under agreements to resell, at fair value | 6,738 | 658 |
Fair Value, Estimate not Practicable, Due from Employees | 42,410 | 40,520 |
Drafts payable | 21,632 | 42,212 |
Bank call loans | 107,500 | 118,300 |
Securities loaned | 199,598 | 180,270 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 18,984 | 1,567 |
Securities failed to receive | 16,894 | 17,559 |
Other | 45,186 | 10,707 |
Total payables to brokers, dealers and clearing organizations | 280,662 | 210,103 |
Payables to customers | 373,664 | 385,907 |
Securities sold under agreements to repurchase | 599,151 | 586,478 |
Senior secured notes | 200,000 | 200,000 |
Fair Value, Estimate Not Practicable, Investments | $ 65,601 | $ 65,404 |
Fair Value Measurements - Notio
Fair Value Measurements - Notional Amounts and Fair Values of Derivatives by Product (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Derivatives asset, Notional | $ 852,366 | $ 65,576 | |
Derivatives asset, Fair Value | 2,815 | 716 | |
Derivative liability, notional | 5,845,928 | 5,920,568 | |
Derivative liability, Fair Value | 3,884 | 1,388 | |
Foreign exchange forward contracts | Other Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional | 400 | ||
Derivative liability, Fair Value | 5 | ||
Future [Member] | Commodity Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional | 4,981,000 | 5,844,000 | [1] |
Derivative liability, Fair Value | 942 | 766 | [1] |
Other TBA Contracts [Member] | Other Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives asset, Notional | 31,366 | 39,576 | |
Derivatives asset, Fair Value | 1,038 | 694 | |
Derivative liability, notional | 31,366 | 39,576 | |
Derivative liability, Fair Value | 966 | 592 | |
TBAs | Other Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives asset, Notional | 821,000 | 26,000 | |
Derivatives asset, Fair Value | 1,777 | 22 | |
Derivative liability, notional | 821,000 | 26,000 | |
Derivative liability, Fair Value | 1,749 | 22 | |
ARS purchase commitments | Other Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional | 12,162 | 10,992 | |
Derivative liability, Fair Value | $ 222 | $ 8 | |
[1] | For both the three and six months ended June 30, 2018, the diluted net income (loss) per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements (1,336,424 shares for both the three and six months ended June 30, 2017).(2)Represents net income from discontinued operations less net income attributable to non-controlling interest, net of tax divided by weighted average number of shares outstanding. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Amounts of Derivative Instruments and their Effect on Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | $ 512 | $ (378) | $ 1,475 | $ 376 |
Commodity Contracts | Principal Transaction Revenue | Future [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | 322 | (8) | 1,351 | 234 |
Other Contracts | Principal Transaction Revenue | TBAs | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | 162 | 204 | 196 | 77 |
Other Contracts | Principal Transaction Revenue | ARS purchase commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | (39) | (773) | (214) | (458) |
Other Contracts | Other Income [Member] | Other TBA Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | 72 | 191 | $ 147 | 511 |
Other Contracts | Other Income [Member] | Foreign exchange forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | $ (5) | $ 8 | $ 12 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Level Three Principal Amount | $ 104,462,000 | |
Securities owned, at fair value | $ 1,020,404,000 | $ 926,597,000 |
Forward or delayed delivery of the underlying instrument with settlement | 180 days | |
Valuation Adjustment For Level Three Asset and Liability | $ 2,299,000 | |
Fair Value Of Level Three Assets and Liabilities | 102,163,000 | |
Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities owned, at fair value | 33,112,000 | 34,067,000 |
Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Level Three Principal Amount | 92,300,000 | |
Auction Rate Securities Committed To Purchase related to settlements with regulators | 5,000,000 | |
Securities owned, at fair value | 90,223,000 | $ 111,853,000 |
Valuation adjustment (unrealized loss) for ARS | (2,077,000) | |
Total amount of ARS the firm purchased and hold | 92,300,000 | |
Fair Value Of Level Three Assets | $ 90,223,000 | |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities Committed To Purchase Period | 2,020 | |
Hedge Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment Redemption Notice Period Minimum | 30 days | |
Investment Redemption Notice Period Maximum | 120 days | |
Private Equity Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments Lock In Period | 10 years | |
Fair Value, Valuation Scenario One [Member] | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Basis point | 25.00% | |
Fair Value, Valuation Scenario Two [Member] | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Basis point | 50.00% | |
Municipal Auction Rate Securities [Member] | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Level Three Principal Amount | $ 25,000 | |
Valuation adjustment (unrealized loss) for ARS | 0 | |
Fair Value Of Level Three Assets | $ 25,000 | |
Fair Value Measurements, Valuation Techniques | Par | |
Auction Rate Preferred Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
U S Treasury Rate | 2.58% | |
Auction Rate Preferred Securities | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Level Three Principal Amount | $ 73,275,000 | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Valuation adjustment (unrealized loss) for ARS | $ (941,000) | |
Fair Value Of Level Three Assets | $ 72,334,000 | |
Fair Value Measurements, Valuation Techniques | Discounted Cash Flow | |
Auction Rate Preferred Securities | Weighted Average [Member] | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Permanent and construction loans , discount rate | 3.22% | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Fair Value Unobservable Input Current Yield | 2.68% | |
Auction Rate Preferred Securities | Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Spread To U S Treasury Rate | 110.00% | |
Auction Rate Preferred Securities | Minimum [Member] | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Permanent and construction loans , discount rate | 2.83% | |
Fair Value Unobservable Input Current Yield | 2.36% | |
Auction Rate Preferred Securities | Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Spread To U S Treasury Rate | 150.00% | |
Auction Rate Preferred Securities | Maximum [Member] | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Permanent and construction loans , discount rate | 3.86% | |
Fair Value Unobservable Input Current Yield | 3.21% | |
Student Loan Auction Rate Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Spread To U S Treasury Rate | 1.20% | |
U S Treasury Rate | 2.76% | |
Student Loan Auction Rate Securities | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Level Three Principal Amount | $ 275,000 | |
Permanent and construction loans , discount rate | 3.96% | |
Fair Value Unobservable Inputs Duration | 5 years 6 months | |
Valuation adjustment (unrealized loss) for ARS | $ (13,000) | |
Fair Value Unobservable Input Current Yield | 2.95% | |
Fair Value Of Level Three Assets | $ 262,000 | |
Fair Value Measurements, Valuation Techniques | Discounted Cash Flow | |
Student Loan Auction Rate Securities | Weighted Average [Member] | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Permanent and construction loans , discount rate | 3.96% | |
Fair Value Unobservable Inputs Duration | 5 years 6 months | |
Fair Value Unobservable Input Current Yield | 2.95% | |
ARS purchase commitments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Level Three Principal Amount | $ 12,162,000 | |
Amount of ARS committed to purchase from clients | 7,200,000 | |
Valuation Adjustment For Level Three Liabilities | 222,000 | |
Fair Value Of Level Three Liabilities | 11,940,000 | |
ARS purchase commitments | Municipal Auction Rate Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Level Three Principal Amount | $ 2,000 | |
Fair Value Measurements, Valuation Techniques | Par | |
Valuation Adjustment For Level Three Liabilities | $ 0 | |
Fair Value Of Level Three Liabilities | 2,000 | |
ARS purchase commitments | Auction Rate Preferred Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Level Three Principal Amount | $ 10,620,000 | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Fair Value Measurements, Valuation Techniques | Discounted Cash Flow | |
Valuation Adjustment For Level Three Liabilities | $ 130,000 | |
Fair Value Of Level Three Liabilities | $ 10,490,000 | |
ARS purchase commitments | Auction Rate Preferred Securities | Weighted Average [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Permanent and construction loans , discount rate | 3.22% | |
Fair Value Unobservable Inputs Duration | 2 years 6 months | |
Fair Value Unobservable Input Current Yield | 2.68% | |
ARS purchase commitments | Auction Rate Preferred Securities | Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Permanent and construction loans , discount rate | 2.83% | |
Fair Value Unobservable Input Current Yield | 2.36% | |
ARS purchase commitments | Auction Rate Preferred Securities | Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Permanent and construction loans , discount rate | 3.86% | |
Fair Value Unobservable Input Current Yield | 3.21% | |
ARS purchase commitments | Student Loan Auction Rate Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Level Three Principal Amount | $ 25,000 | |
Permanent and construction loans , discount rate | 3.96% | |
Fair Value Unobservable Inputs Duration | 5 years 6 months | |
Fair Value Unobservable Input Current Yield | 2.95% | |
Fair Value Measurements, Valuation Techniques | Discounted Cash Flow | |
Valuation Adjustment For Level Three Liabilities | $ 1,000 | |
Fair Value Of Level Three Liabilities | $ 24,000 | |
ARS purchase commitments | Student Loan Auction Rate Securities | Weighted Average [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Permanent and construction loans , discount rate | 3.96% | |
Fair Value Unobservable Inputs Duration | 5 years 6 months | |
Fair Value Unobservable Input Current Yield | 2.95% |
Collateralized Transactions - S
Collateralized Transactions - Schedule of Gross Amounts and Offsetting Amounts of Reverse Repurchase Agreements, Repurchase Agreements, Securities Borrowed and Securities Lending Transactions (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Reverse repurchase agreements | ||
Gross Amounts of Recognized Assets | $ 101,749 | $ 200,712 |
Gross Amounts Offset on the Balance Sheet | (95,011) | (200,054) |
Net Amounts of Assets Presented on the Balance Sheet | 6,738 | 658 |
Financial Instruments | (6,431) | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | 307 | 658 |
Securities borrowed | ||
Gross Amounts of Recognized Assets | 122,238 | 132,368 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented on the Balance Sheet | 122,238 | 132,368 |
Financial Instruments | (117,374) | (128,575) |
Cash Collateral Received | 0 | 0 |
Net Amount | 4,864 | 3,793 |
Total | ||
Gross Amounts of Recognized Assets | 223,987 | 333,080 |
Gross Amounts Offset on the Balance Sheet | (95,011) | (200,054) |
Net Amounts of Assets Presented on the Balance Sheet | 128,976 | 133,026 |
Financial Instruments | (123,805) | (128,575) |
Cash Collateral Received | 0 | 0 |
Net Amount | 5,171 | 4,451 |
Repurchase agreements | ||
Gross Amounts of Recognized Liabilities | 786,532 | |
Gross Amounts Offset on the Balance Sheet | (95,011) | (200,054) |
Net Amounts of Liabilities Presented on the Balance Sheet | 599,151 | 586,478 |
Financial Instruments | (597,168) | (585,289) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 1,983 | 1,189 |
Securities loaned | ||
Gross Amounts of Recognized Liabilities | 180,270 | |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented on the Balance Sheet | 199,598 | 180,270 |
Financial Instruments | (188,954) | (170,176) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | 10,644 | 10,094 |
Total | ||
Gross Amounts of Recognized Liabilities | 893,760 | 966,802 |
Gross Amounts Offset on the Balance Sheet | (95,011) | (200,054) |
Net Amounts of Liabilities Presented on the Balance Sheet | 798,749 | 766,748 |
Financial Instruments | (786,122) | (755,465) |
Cash Collateral Pledged | 0 | 0 |
Net Amount | $ 12,627 | $ 11,283 |
Collateralized Transactions - A
Collateralized Transactions - Additional Information (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2018USD ($)dealer | Dec. 31, 2017USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 786,532,000 | |
Gross Amounts of Recognized Liabilities | 180,270,000 | |
Bank call loans | $ 107,500,000 | 118,300,000 |
Customer Securities for which Entity has Right to Sell or Repledge, Fair Value | 1,100,000,000 | |
Customer securities under customer margin loans agreement available to be repledged | 161,200,000 | |
Outstanding letters of credit | 0 | |
Amounts pledged | 692,286,000 | 655,683,000 |
Carrying value of securities owned by the Company loaned or pledged | $ 92,800,000 | 97,200,000 |
Number of broker-dealers | dealer | 4 | |
Receivable from brokers and clearing organizations | $ 77,200,000 | |
Reverse Repurchase Agreements | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer securities under customer margin loans agreement available to be repledged | 95,100,000 | 221,600,000 |
Securities received as collateral under securities borrowed transaction with market value | 95,100,000 | 221,600,000 |
Securities Borrowed Transactions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer securities under customer margin loans agreement available to be repledged | 26,600,000 | 30,900,000 |
Securities received as collateral under securities borrowed transaction with market value | 118,200,000 | $ 127,200,000 |
Maturity Overnight and on Demand [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 893,760,000 | |
Short-term Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Collateralized loans, collateralized by firm | 93,200,000 | |
Collateralized loans, collateralized by customer securities | 442,600,000 | |
U.S. treasury, agency and sovereign obligations | Maturity Overnight and on Demand [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Amounts of Recognized Liabilities | 694,162,000 | |
Equity Securities [Member] | Maturity Overnight and on Demand [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 199,598,000 | |
Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of business days for related transactions | 1 day | |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of business days for related transactions | 2 days | |
Options Clearing Corporation [Domain] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Customer securities under customer margin loans agreement available to be repledged | $ 364,700,000 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Total VIE Assets | $ 337,082 | $ 343,840 |
Carrying Value of Variable Interest Assets | 729 | 725 |
Capital Commitments | 1 | 2 |
Maximum Exposure to Loss in Non- consolidated VIEs | 730 | 727 |
Private Equity Funds | ||
Variable Interest Entity [Line Items] | ||
Total VIE Assets | 9,108 | 15,668 |
Carrying Value of Variable Interest Assets | 12 | 12 |
Carrying Value of Variable Interest Liabilities | 0 | 0 |
Capital Commitments | 1 | 2 |
Maximum Exposure to Loss in Non- consolidated VIEs | 13 | 14 |
Hedge Funds [Member] | ||
Variable Interest Entity [Line Items] | ||
Total VIE Assets | 327,974 | 328,172 |
Carrying Value of Variable Interest Assets | 717 | 713 |
Carrying Value of Variable Interest Liabilities | 0 | 0 |
Capital Commitments | 0 | 0 |
Maximum Exposure to Loss in Non- consolidated VIEs | $ 717 | $ 713 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 200,000 | $ 200,000 |
Unamortized debt issuance expense | (1,034) | (1,163) |
Long-term debt | $ 198,966 | $ 198,837 |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 1, 2022 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Narrative) (Details) - USD ($) | Jun. 23, 2017 | Apr. 15, 2017 | Apr. 15, 2014 | Apr. 12, 2011 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Sep. 19, 2017 |
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 198,966,000 | $ 198,966,000 | $ 198,837,000 | |||||||
6.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Private placement date | Jun. 23, 2017 | |||||||||
Debt Instrument, Face Amount | $ 200,000,000 | |||||||||
Interest rate | 6.75% | |||||||||
Debt Issuance Costs, Gross | $ 4,300,000 | |||||||||
Interest expense on note | 3,400,000 | $ 300,000 | 6,800,000 | $ 300,000 | ||||||
Debt Instrument, Issue Price Percentage | 100.00% | |||||||||
Percentage of Notes Registered under the Securities Act of 1933 | 99.80% | |||||||||
8.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Private placement date | Apr. 12, 2011 | |||||||||
Debt Instrument, Face Amount | $ 200,000,000 | |||||||||
Interest rate | 8.75% | |||||||||
Extinguishment of Debt, Amount | $ 120,000,000 | $ 30,000,000 | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||
Term of payments of interest on notes | semi-annually | |||||||||
Extinguishment of Debt, Amount | $ 50,000,000 | |||||||||
Interest expense on note | $ 3,400,000 | $ 6,700,000 | ||||||||
Debt Instrument, Issue Price Percentage | 100.00% | |||||||||
Oppenheimer [Member] | 6.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Issuance Costs, Gross | $ 3,000,000 | |||||||||
Third Party [Member] | 6.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Issuance Costs, Gross | $ 1,300,000 | |||||||||
Maximum [Member] | 6.75% Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Restrictive Covenants Exception for Dividend or Distribution Amount during fiscal year | 20,000,000 | |||||||||
Restrictive Covenants Exception for total Dividend Payment and other Restricted Payments | $ 10,000,000 | $ 10,000,000 |
Share Capital - Changes in Numb
Share Capital - Changes in Number of Shares of Class A Stock Outstanding (Details) - Class A Stock - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Class A Stock outstanding, beginning of period | 13,141,103 | 13,182,332 | 13,139,203 | 13,261,095 |
Issued pursuant to shared-based compensation plans | 15,250 | 0 | 17,150 | 179,020 |
Repurchased and canceled pursuant to the stock buy-back | 0 | (49,557) | 0 | (307,340) |
Class A Stock outstanding, end of period | 13,156,353 | 13,132,775 | 13,156,353 | 13,132,775 |
Share Capital - Additional Info
Share Capital - Additional Information (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | May 05, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 15, 2015 | |
Class of Stock [Line Items] | ||||||||||
Amounts pledged | $ 692,286 | $ 692,286 | $ 655,683 | |||||||
Preferred stock, authorized | 50,000,000 | 50,000,000 | ||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | ||||||||
Preferred stock, issued | 0 | 0 | ||||||||
Class A Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Common Stock, outstanding | 13,156,353 | 13,132,775 | 13,156,353 | 13,132,775 | 13,141,103 | 13,139,203 | 13,182,332 | 13,261,095 | 13,178,571 | |
Common Stock, Shares, Issued | 13,156,353 | 13,156,353 | 13,139,203 | |||||||
Repurchase and cancelled stock | 0 | 49,557 | 0 | 307,340 | ||||||
Class B Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, authorized | 99,665 | 99,665 | 99,665 | |||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Common Stock, outstanding | 99,665 | 99,665 | 99,665 | |||||||
Common Stock, Shares, Issued | 99,665 | 99,665 | 99,665 | |||||||
Previous Program [Member] | Class A Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of class A common stock | 665,000 | |||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 40,734 | |||||||||
New Program [Member] | Class A Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchase of class A common stock | 650,000 | |||||||||
Stock Repurchase Program Percentage Of Shares Repurchase Of Outstanding Share | 5.00% | |||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 508,906 | 508,906 | 690,734 | |||||||
Common Stock, Shares, Issued | 13,178,571 |
Income taxes (Details)
Income taxes (Details) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 29.30% | 16.70% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Eligible investor subject to future buyback principal value | $ 21,200,000 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Maximum estimated range of aggregate loss for legal proceedings | 0 |
Eligible investor subject to future buyback potential additional losses related to valuation adjustments | 0 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Maximum estimated range of aggregate loss for legal proceedings | 30,000,000 |
Auction rate securities | |
Loss Contingencies [Line Items] | |
Auction Rate Securities Committed To Purchase related to settlements with regulators | 5,000,000 |
Total amount of ARS the firm purchased and hold | $ 92,300,000 |
Regulatory Requirements - Addit
Regulatory Requirements - Additional Information (Narrative) (Details) | 1 Months Ended | 6 Months Ended | |
Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017EUR (€) | |
Oppenheimer [Member] | |||
Regulatory Capital Requirements [Line Items] | |||
Required percentage of net capital to aggregate customer-related debit items | $ 0.02 | ||
Net Capital as Reported in Entity's Part II Unaudited FOCUS Report | $ 161,200,000 | ||
Aggregate indebtedness | 15.77% | ||
Excess capital | $ 140,800,000 | ||
Freedom | |||
Regulatory Capital Requirements [Line Items] | |||
Net Capital as Reported in Entity's Part II Unaudited FOCUS Report | $ 5,400,000 | ||
Aggregate indebtedness | 6.67% | ||
Freedom maintain net capital equal to the greater | $ 100,000 | ||
Net capital in excess of minimum required | $ 5,300,000 | ||
Oppenheimer Europe Ltd | |||
Regulatory Capital Requirements [Line Items] | |||
Common Equity Tier 1 Ratio | 18.20% | ||
Common Equity Tier 1 Ratio Required | 4.50% | ||
Tier 1 Capital Ratio | 18.20% | ||
Tier 1 Capital Ratio Required | 6.00% | ||
Total Capital Ratio | 18.76% | ||
Total Capital Ratio Required | 8.00% | ||
Regulatory capital required to be maintained | € | € 730,000 | ||
Oppenheimer Investments Asia Ltd. | |||
Regulatory Capital Requirements [Line Items] | |||
Regulatory capital required to be maintained | $ 387,000 | ||
Net capital | 2,000,000 | ||
Excess Liquid Capital under Hong Kong SFC Rules | $ 1,600,000 | ||
Oppenheimer Europe Ltd | |||
Regulatory Capital Requirements [Line Items] | |||
Contributions to subsidiary | $ 7,000,000 |
Segment Information - Reported
Segment Information - Reported Revenue and Profit Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue | ||||
Total revenue | $ (242,556) | $ (215,884) | $ (477,086) | $ (429,145) |
Income (loss) before income taxes | ||||
Income (Loss) before income taxes from continuing operations | 12,501 | (1,637) | 22,126 | (8,662) |
Private Client Division | ||||
Revenue | ||||
Total revenue | (156,553) | (140,252) | (310,647) | (277,641) |
Income (loss) before income taxes | ||||
Income (Loss) before income taxes from continuing operations | $ 33,513 | 28,051 | 73,675 | 56,813 |
Asset management fees | 90.00% | |||
Asset Management | ||||
Revenue | ||||
Total revenue | $ (17,706) | (19,304) | (35,350) | (37,970) |
Income (loss) before income taxes | ||||
Income (Loss) before income taxes from continuing operations | $ 3,958 | 4,081 | 7,676 | 7,792 |
Asset management fees | 10.00% | |||
Capital markets | ||||
Revenue | ||||
Total revenue | $ (68,206) | (53,707) | (129,735) | (109,610) |
Income (loss) before income taxes | ||||
Income (Loss) before income taxes from continuing operations | (199) | (10,982) | (6,256) | (23,596) |
Corporate/Other | ||||
Revenue | ||||
Total revenue | (91) | (2,621) | (1,354) | (3,924) |
Income (loss) before income taxes | ||||
Income (Loss) before income taxes from continuing operations | $ (24,771) | $ (22,787) | $ (52,969) | $ (49,671) |
Segment Information - Revenue C
Segment Information - Revenue Classified by Major Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 242,556 | $ 215,884 | $ 477,086 | $ 429,145 |
Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 234,471 | 204,052 | 460,083 | 407,715 |
Europe/Middle East | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 7,222 | 10,904 | 14,745 | 19,364 |
Asia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 863 | $ 928 | $ 2,258 | $ 2,066 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Narrative) (Details) - Subsequent Event [Member] - $ / shares | Aug. 24, 2018 | Aug. 10, 2018 | Jul. 27, 2018 |
Subsequent Events [Line Items] | |||
Date of announcement of dividend | Jul. 27, 2018 | ||
Date of payment of dividend | Aug. 24, 2018 | ||
Date of record of dividend | Aug. 10, 2018 | ||
Class A Stock | |||
Subsequent Events [Line Items] | |||
Quarterly dividend payable amount per share | $ 0.11 | ||
Class B Stock | |||
Subsequent Events [Line Items] | |||
Quarterly dividend payable amount per share | $ 0.11 |
Supplemental Guarantor Condense
Supplemental Guarantor Condensed Consolidated Financial Statements - Additional Information (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 23, 2017 | Apr. 12, 2011 | |
Condensed Consolidated financial statements [Line Items] | |||
Interest owned by the holding company | 100.00% | ||
Secured Debt [Member] | 6.75% Senior Secured Notes [Member] | |||
Condensed Consolidated financial statements [Line Items] | |||
Debt Instrument, Face Amount | $ 200 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||
Secured Debt [Member] | 8.75% Senior Secured Notes [Member] | |||
Condensed Consolidated financial statements [Line Items] | |||
Debt Instrument, Face Amount | $ 200 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% |
Supplemental Guarantor Conden65
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 38,961,000 | $ 48,154,000 | $ 116,582,000 | $ 64,913,000 |
Deposits with clearing organizations | 56,864,000 | 42,222,000 | ||
Receivable from brokers, dealers and clearing organizations | 204,527,000 | 187,115,000 | ||
Receivable from customers, net of allowance for credit losses of $848 ($769 in 2017) | 835,708,000 | 848,226,000 | ||
Income tax receivable | 2,818,000 | 2,939,000 | ||
Securities purchased under agreements to resell, at fair value | 6,738,000 | 658,000 | ||
Securities owned, at fair value | 1,020,404,000 | 926,597,000 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,788 and $8,051, respectively ($24,705 and $7,975, respectively, in 2017) | 42,410,000 | 40,520,000 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 27,994,000 | 27,187,000 | ||
Subordinated loan receivable | 0 | 0 | ||
Intangible assets | 32,100,000 | 31,700,000 | ||
Goodwill | 137,889,000 | 137,889,000 | ||
Other assets | 114,867,000 | 145,310,000 | ||
Deferred tax assets | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 2,521,280,000 | 2,438,517,000 | ||
Liabilities | ||||
Drafts payable | 21,632,000 | 42,412,000 | ||
Bank call loans | 107,500,000 | 118,300,000 | ||
Payable to brokers, dealers and clearing organizations | 282,542,000 | 211,483,000 | ||
Payable to customers | 373,664,000 | 385,907,000 | ||
Securities sold under agreements to repurchase | 599,151,000 | 586,478,000 | ||
Securities sold but not yet purchased, at fair value | 162,042,000 | 94,486,000 | ||
Accrued compensation | 128,985,000 | 173,116,000 | ||
Accounts payable and other liabilities | 94,353,000 | 92,495,000 | ||
Income tax payable | 0 | 0 | ||
Senior secured notes, net of debt issuance costs of $1,034 ($1,163 in 2017) | 198,966,000 | 198,837,000 | ||
Subordinated indebtedness | 0 | 0 | ||
Deferred tax liabilities, net | 13,804,000 | 11,092,000 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 1,982,639,000 | 1,914,606,000 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 538,292,000 | 523,550,000 | ||
Non-controlling interest | 349,000 | 361,000 | ||
Total stockholders' equity | 538,641,000 | 523,911,000 | 501,114,000 | |
Total liabilities and stockholders' equity | 2,521,280,000 | 2,438,517,000 | ||
Allowance for credit losses | 848,000 | 769,000 | ||
Amounts pledged | 692,286,000 | 655,683,000 | ||
Notes Receivable, Net Accumulated Amortization | 24,788,000 | 24,705,000 | ||
Notes Receivable, Net Allowance for Uncollectibles | 8,051,000 | 7,975,000 | ||
Net accumulated depreciation | 85,815,000 | 82,826,000 | ||
Unamortized debt issuance expense | 1,034,000 | 1,163,000 | ||
Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Deposits with clearing organizations | 0 | 0 | ||
Receivable from brokers, dealers and clearing organizations | 0 | 0 | ||
Receivable from customers, net of allowance for credit losses of $848 ($769 in 2017) | 0 | 0 | ||
Income tax receivable | (68,951,000) | (69,084,000) | ||
Securities purchased under agreements to resell, at fair value | 0 | 0 | ||
Securities owned, at fair value | 0 | 0 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,788 and $8,051, respectively ($24,705 and $7,975, respectively, in 2017) | 0 | 0 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 0 | 0 | ||
Subordinated loan receivable | (112,558,000) | (112,558,000) | ||
Intangible assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 0 | 0 | ||
Deferred tax assets | (18,881,000) | (21,965,000) | ||
Investment in subsidiaries | (1,169,979,000) | (1,130,571,000) | ||
Intercompany receivables | (98,470,000) | (135,586,000) | ||
Total assets | (1,468,839,000) | (1,469,764,000) | ||
Liabilities | ||||
Drafts payable | 0 | 0 | ||
Bank call loans | 0 | 0 | ||
Payable to brokers, dealers and clearing organizations | 0 | 0 | ||
Payable to customers | 0 | 0 | ||
Securities sold under agreements to repurchase | 0 | 0 | ||
Securities sold but not yet purchased, at fair value | 0 | 0 | ||
Accrued compensation | 0 | 0 | ||
Accounts payable and other liabilities | 0 | 0 | ||
Income tax payable | (68,951,000) | (69,084,000) | ||
Senior secured notes, net of debt issuance costs of $1,034 ($1,163 in 2017) | 0 | 0 | ||
Subordinated indebtedness | (112,558,000) | (112,558,000) | ||
Deferred tax liabilities, net | (18,881,000) | (21,965,000) | ||
Intercompany payables | (98,470,000) | (135,586,000) | ||
Total liabilities | (298,860,000) | (339,193,000) | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | (1,169,979,000) | (1,130,571,000) | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' equity | (1,169,979,000) | (1,130,571,000) | ||
Total liabilities and stockholders' equity | (1,468,839,000) | (1,469,764,000) | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 4,588,000 | 3,716,000 | 3,232,000 | 10,284,000 |
Deposits with clearing organizations | 0 | 0 | ||
Receivable from brokers, dealers and clearing organizations | 0 | 0 | ||
Receivable from customers, net of allowance for credit losses of $848 ($769 in 2017) | 0 | 0 | ||
Income tax receivable | 24,904,000 | 26,025,000 | ||
Securities purchased under agreements to resell, at fair value | 0 | 0 | ||
Securities owned, at fair value | 1,369,000 | 1,386,000 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,788 and $8,051, respectively ($24,705 and $7,975, respectively, in 2017) | 0 | 0 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 20,883,000 | 20,221,000 | ||
Subordinated loan receivable | 112,558,000 | 112,558,000 | ||
Intangible assets | 400,000 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 2,580,000 | 2,573,000 | ||
Deferred tax assets | 118,000 | 0 | ||
Investment in subsidiaries | 526,774,000 | 507,747,000 | ||
Intercompany receivables | 49,627,000 | 83,437,000 | ||
Total assets | 743,801,000 | 757,663,000 | ||
Liabilities | ||||
Drafts payable | 0 | 0 | ||
Bank call loans | 0 | 0 | ||
Payable to brokers, dealers and clearing organizations | 0 | 0 | ||
Payable to customers | 0 | 0 | ||
Securities sold under agreements to repurchase | 0 | 0 | ||
Securities sold but not yet purchased, at fair value | 0 | 0 | ||
Accrued compensation | 0 | 0 | ||
Accounts payable and other liabilities | 33,496,000 | 33,994,000 | ||
Income tax payable | 22,189,000 | 22,189,000 | ||
Senior secured notes, net of debt issuance costs of $1,034 ($1,163 in 2017) | 0 | 0 | ||
Subordinated indebtedness | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 17,000 | ||
Intercompany payables | 28,141,000 | 62,163,000 | ||
Total liabilities | 83,826,000 | 118,363,000 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 659,975,000 | 639,300,000 | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' equity | 659,975,000 | 639,300,000 | ||
Total liabilities and stockholders' equity | 743,801,000 | 757,663,000 | ||
Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 33,705,000 | 36,996,000 | 39,697,000 | 54,400,000 |
Deposits with clearing organizations | 56,864,000 | 42,222,000 | ||
Receivable from brokers, dealers and clearing organizations | 204,527,000 | 187,115,000 | ||
Receivable from customers, net of allowance for credit losses of $848 ($769 in 2017) | 835,708,000 | 848,226,000 | ||
Income tax receivable | 0 | 0 | ||
Securities purchased under agreements to resell, at fair value | 6,738,000 | 658,000 | ||
Securities owned, at fair value | 1,019,035,000 | 925,211,000 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,788 and $8,051, respectively ($24,705 and $7,975, respectively, in 2017) | 42,410,000 | 40,520,000 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 7,111,000 | 6,966,000 | ||
Subordinated loan receivable | 0 | 0 | ||
Intangible assets | 31,700,000 | 31,700,000 | ||
Goodwill | 137,889,000 | 137,889,000 | ||
Other assets | 112,167,000 | 142,604,000 | ||
Deferred tax assets | 18,641,000 | 18,463,000 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 2,506,495,000 | 2,418,570,000 | ||
Liabilities | ||||
Drafts payable | 21,632,000 | 42,412,000 | ||
Bank call loans | 107,500,000 | 118,300,000 | ||
Payable to brokers, dealers and clearing organizations | 282,542,000 | 211,483,000 | ||
Payable to customers | 373,664,000 | 385,907,000 | ||
Securities sold under agreements to repurchase | 599,151,000 | 586,478,000 | ||
Securities sold but not yet purchased, at fair value | 162,042,000 | 94,486,000 | ||
Accrued compensation | 128,985,000 | 173,116,000 | ||
Accounts payable and other liabilities | 60,732,000 | 51,280,000 | ||
Income tax payable | 44,322,000 | 44,455,000 | ||
Senior secured notes, net of debt issuance costs of $1,034 ($1,163 in 2017) | 0 | 0 | ||
Subordinated indebtedness | 112,558,000 | 112,558,000 | ||
Deferred tax liabilities, net | 32,685,000 | 33,040,000 | ||
Intercompany payables | 70,329,000 | 73,423,000 | ||
Total liabilities | 1,996,142,000 | 1,926,938,000 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 510,004,000 | 491,271,000 | ||
Non-controlling interest | 349,000 | 361,000 | ||
Total stockholders' equity | 510,353,000 | 491,632,000 | ||
Total liabilities and stockholders' equity | 2,506,495,000 | 2,418,570,000 | ||
Parent | ||||
ASSETS | ||||
Cash and cash equivalents | 668,000 | 7,442,000 | 73,653,000 | $ 229,000 |
Deposits with clearing organizations | 0 | 0 | ||
Receivable from brokers, dealers and clearing organizations | 0 | 0 | ||
Receivable from customers, net of allowance for credit losses of $848 ($769 in 2017) | 0 | 0 | ||
Income tax receivable | 46,865,000 | 45,998,000 | ||
Securities purchased under agreements to resell, at fair value | 0 | 0 | ||
Securities owned, at fair value | 0 | 0 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,788 and $8,051, respectively ($24,705 and $7,975, respectively, in 2017) | 0 | 0 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 0 | 0 | ||
Subordinated loan receivable | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 120,000 | 133,000 | ||
Deferred tax assets | 122,000 | 3,502,000 | ||
Investment in subsidiaries | 643,205,000 | 622,824,000 | ||
Intercompany receivables | 48,843,000 | 52,149,000 | ||
Total assets | 739,823,000 | 732,048,000 | ||
Liabilities | ||||
Drafts payable | 0 | 0 | ||
Bank call loans | 0 | 0 | ||
Payable to brokers, dealers and clearing organizations | 0 | 0 | ||
Payable to customers | 0 | 0 | ||
Securities sold under agreements to repurchase | 0 | 0 | ||
Securities sold but not yet purchased, at fair value | 0 | 0 | ||
Accrued compensation | 0 | 0 | ||
Accounts payable and other liabilities | 125,000 | 7,221,000 | ||
Income tax payable | 2,440,000 | 2,440,000 | ||
Senior secured notes, net of debt issuance costs of $1,034 ($1,163 in 2017) | 198,966,000 | 198,837,000 | ||
Subordinated indebtedness | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 201,531,000 | 208,498,000 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 538,292,000 | 523,550,000 | ||
Non-controlling interest | 0 | 0 | ||
Total stockholders' equity | 538,292,000 | 523,550,000 | $ 499,200,000 | |
Total liabilities and stockholders' equity | $ 739,823,000 | $ 732,048,000 |
Supplemental Guarantor Conden66
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
REVENUES | ||||
Commissions | $ 82,850 | $ 83,852 | $ 166,257 | $ 170,569 |
Advisory fees | 77,270 | 72,783 | 154,818 | 142,192 |
Investment banking | 27,904 | 15,386 | 56,114 | 33,407 |
Sweep Interest Income from FDIC-Insured Bank Deposits | 28,853 | 17,720 | 54,150 | 31,846 |
Interest | 13,056 | 12,829 | 25,283 | 23,394 |
Principal transactions, net | 6,400 | 5,302 | 9,126 | 10,675 |
Other | 6,223 | 8,012 | 11,338 | 17,062 |
Total revenue | 242,556 | 215,884 | 477,086 | 429,145 |
EXPENSES | ||||
Compensation and related expenses | 151,871 | 142,657 | 304,975 | 286,535 |
Communications and technology | 17,997 | 18,399 | 36,685 | 36,105 |
Occupancy and equipment costs | 14,901 | 15,161 | 30,329 | 30,433 |
Clearing and exchange fees | 5,780 | 5,916 | 11,876 | 11,770 |
Interest | 10,909 | 6,854 | 19,872 | 12,210 |
Other | 28,597 | 28,534 | 51,223 | 60,754 |
Total expenses | 230,055 | 217,521 | 454,960 | 437,807 |
Income (Loss) before income taxes from continuing operations | 12,501 | (1,637) | 22,126 | (8,662) |
Income Tax Expense (Benefit) | 3,662 | (274) | 6,578 | (1,961) |
Net income (loss) from continuing operations | 8,839 | (1,363) | 15,548 | (6,701) |
Income from discontinued operations | 0 | 89 | 0 | 1,065 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | 8,839 | (1,310) | 15,548 | (6,061) |
Income taxes | 0 | 36 | 0 | 425 |
Net income from discontinued operations | 0 | 53 | 0 | 640 |
Less net income (loss) attributable to non-controlling interest, net of tax | (16) | 9 | (12) | 105 |
Net income (loss) attributable to Oppenheimer Holdings Inc. | 8,855 | (1,319) | 15,560 | (6,166) |
Other comprehensive loss | (837) | 780 | (979) | 2,204 |
Total comprehensive income | 8,018 | (539) | 14,581 | (3,962) |
Eliminations | ||||
REVENUES | ||||
Commissions | 0 | 0 | 0 | 0 |
Advisory fees | (319) | (343) | (645) | (663) |
Investment banking | 0 | (3,000) | 0 | (3,000) |
Sweep Interest Income from FDIC-Insured Bank Deposits | 0 | 0 | (4,157) | 0 |
Interest | (2,077) | (2,575) | (42) | (5,151) |
Principal transactions, net | (9) | 0 | 0 | 0 |
Other | (94) | (89) | (189) | (177) |
Total revenue | (2,499) | (6,007) | (5,033) | (8,991) |
EXPENSES | ||||
Compensation and related expenses | 0 | 0 | 0 | 0 |
Communications and technology | 0 | 0 | 0 | 0 |
Occupancy and equipment costs | (94) | (89) | (189) | (177) |
Clearing and exchange fees | 0 | 0 | 0 | 0 |
Interest | (2,077) | (2,575) | (4,157) | (5,151) |
Other | (328) | (3,343) | (687) | (3,663) |
Total expenses | (2,499) | (6,007) | (5,033) | (8,991) |
Income (Loss) before income taxes from continuing operations | 0 | 0 | 0 | 0 |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 |
Net income (loss) from continuing operations | 0 | 0 | 0 | 0 |
Income from discontinued operations | 0 | 0 | ||
Equity in earnings of subsidiaries | (23,085) | (5,753) | (41,030) | 726 |
Net income (loss) | (23,085) | (5,753) | (41,030) | 726 |
Income taxes | 0 | 0 | ||
Net income from discontinued operations | 0 | 0 | ||
Less net income (loss) attributable to non-controlling interest, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Oppenheimer Holdings Inc. | (23,085) | (5,753) | (41,030) | 726 |
Other comprehensive loss | 0 | 0 | 0 | 0 |
Total comprehensive income | (23,085) | (5,753) | (41,030) | 726 |
Guarantor Subsidiaries | ||||
REVENUES | ||||
Commissions | 0 | 0 | 0 | 0 |
Advisory fees | 0 | 0 | 0 | 0 |
Investment banking | 0 | 0 | 0 | 0 |
Sweep Interest Income from FDIC-Insured Bank Deposits | 0 | 0 | 4,120 | 0 |
Interest | 2,060 | 2,559 | 0 | 5,138 |
Principal transactions, net | 0 | 9 | 0 | 15 |
Other | 95 | 90 | 191 | 178 |
Total revenue | 2,155 | 2,658 | 4,311 | 5,331 |
EXPENSES | ||||
Compensation and related expenses | 0 | 0 | 0 | 0 |
Communications and technology | 0 | 0 | 0 | 0 |
Occupancy and equipment costs | 0 | 0 | 0 | 0 |
Clearing and exchange fees | 0 | 0 | 0 | 0 |
Interest | 0 | 0 | 0 | 0 |
Other | 849 | 195 | 1,102 | 267 |
Total expenses | 849 | 195 | 1,102 | 267 |
Income (Loss) before income taxes from continuing operations | 1,306 | 2,463 | 3,209 | 5,064 |
Income Tax Expense (Benefit) | 369 | 956 | 633 | 1,876 |
Net income (loss) from continuing operations | 937 | 1,507 | 2,576 | 3,188 |
Income from discontinued operations | 0 | 0 | ||
Equity in earnings of subsidiaries | 11,074 | 2,123 | 19,227 | (1,957) |
Net income (loss) | 12,011 | 3,630 | 21,803 | 1,231 |
Income taxes | 0 | 0 | ||
Net income from discontinued operations | 0 | 0 | ||
Less net income (loss) attributable to non-controlling interest, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Oppenheimer Holdings Inc. | 12,011 | 3,630 | 21,803 | 1,231 |
Other comprehensive loss | 0 | 0 | 0 | 0 |
Total comprehensive income | 12,011 | 3,630 | 21,803 | 1,231 |
Non-Guarantor Subsidiaries | ||||
REVENUES | ||||
Commissions | 82,850 | 83,852 | 166,257 | 170,569 |
Advisory fees | 77,589 | 73,126 | 155,463 | 142,855 |
Investment banking | 27,904 | 18,386 | 56,114 | 36,407 |
Sweep Interest Income from FDIC-Insured Bank Deposits | 28,853 | 17,720 | 25,317 | 31,846 |
Interest | 13,070 | 12,845 | 9,168 | 23,407 |
Principal transactions, net | 6,409 | 5,293 | 54,150 | 10,660 |
Other | 6,222 | 8,011 | 11,336 | 17,061 |
Total revenue | 242,897 | 219,233 | 477,805 | 432,805 |
EXPENSES | ||||
Compensation and related expenses | 151,349 | 142,290 | 304,127 | 285,830 |
Communications and technology | 17,948 | 18,350 | 36,597 | 36,026 |
Occupancy and equipment costs | 14,995 | 15,250 | 30,518 | 30,610 |
Clearing and exchange fees | 5,780 | 5,916 | 11,876 | 11,770 |
Interest | 9,611 | 5,720 | 17,279 | 10,371 |
Other | 27,798 | 27,760 | 50,143 | 59,901 |
Total expenses | 227,481 | 215,286 | 450,540 | 434,508 |
Income (Loss) before income taxes from continuing operations | 15,416 | 3,947 | 27,265 | (1,703) |
Income Tax Expense (Benefit) | 4,358 | 1,868 | 8,050 | 789 |
Net income (loss) from continuing operations | 11,058 | 2,079 | 19,215 | (2,492) |
Income from discontinued operations | 89 | 1,065 | ||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | 11,058 | 2,132 | 19,215 | (1,852) |
Income taxes | 36 | 425 | ||
Net income from discontinued operations | 53 | 640 | ||
Less net income (loss) attributable to non-controlling interest, net of tax | (16) | 9 | (12) | 105 |
Net income (loss) attributable to Oppenheimer Holdings Inc. | 11,074 | 2,123 | 19,227 | (1,957) |
Other comprehensive loss | (837) | 780 | (979) | 2,204 |
Total comprehensive income | 10,237 | 2,903 | 18,248 | 247 |
Parent | ||||
REVENUES | ||||
Commissions | 0 | 0 | 0 | 0 |
Advisory fees | 0 | 0 | 0 | 0 |
Investment banking | 0 | 0 | 0 | 0 |
Sweep Interest Income from FDIC-Insured Bank Deposits | 0 | 0 | 3 | 0 |
Interest | 3 | 0 | 0 | 0 |
Principal transactions, net | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Total revenue | 3 | 0 | 3 | 0 |
EXPENSES | ||||
Compensation and related expenses | 522 | 367 | 848 | 705 |
Communications and technology | 49 | 49 | 88 | 79 |
Occupancy and equipment costs | 0 | 0 | 0 | 0 |
Clearing and exchange fees | 0 | 0 | 0 | 0 |
Interest | 3,375 | 3,709 | 6,750 | 6,990 |
Other | 278 | 3,922 | 665 | 4,249 |
Total expenses | 4,224 | 8,047 | 8,351 | 12,023 |
Income (Loss) before income taxes from continuing operations | (4,221) | (8,047) | (8,348) | (12,023) |
Income Tax Expense (Benefit) | (1,065) | (3,098) | (2,105) | (4,626) |
Net income (loss) from continuing operations | (3,156) | (4,949) | (6,243) | (7,397) |
Income from discontinued operations | 0 | 0 | ||
Equity in earnings of subsidiaries | 12,011 | 3,630 | 21,803 | 1,231 |
Net income (loss) | 8,855 | (1,319) | 15,560 | (6,166) |
Income taxes | 0 | 0 | ||
Net income from discontinued operations | 0 | 0 | ||
Less net income (loss) attributable to non-controlling interest, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Oppenheimer Holdings Inc. | 8,855 | (1,319) | 15,560 | (6,166) |
Other comprehensive loss | 0 | 0 | 0 | 0 |
Total comprehensive income | $ 8,855 | $ (1,319) | $ 15,560 | $ (6,166) |
Supplemental Guarantor Conden67
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operations: | ||
Cash provided by (used in) operating activities | $ 11,311 | $ (70,385) |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | (3,947) | (2,075) |
Proceeds from settlement of company-owned life insurance | 0 | 1,194 |
Purchase of tangible assets | (400) | 0 |
Cash used in investing activities | (4,347) | (881) |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | (2,913) | (2,940) |
Cash dividends paid to non-controlling interest | 0 | (816) |
Payments for Repurchase of Common Stock | 0 | (5,159) |
Payments for employee taxes withheld related to vested share-based awards | (2,444) | (2,203) |
Proceeds from Issuance of Long-term Debt | (200,000) | |
Repayments of Long-term Debt | (150,000) | |
Payments of Debt Issuance Costs | 0 | (547) |
Redemption of senior secured notes | (10,800) | 84,600 |
Cash (used in) provided by financing activities | (16,157) | 122,935 |
Net (decrease) increase in cash and cash equivalents | (9,193) | 51,669 |
Cash and cash equivalents, beginning of period | 48,154 | 64,913 |
Cash and cash equivalents, end of period | 38,961 | 116,582 |
Eliminations | ||
Cash flows from operations: | ||
Cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | 0 | 0 |
Proceeds from settlement of company-owned life insurance | 0 | |
Purchase of tangible assets | 0 | |
Cash used in investing activities | 0 | 0 |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | 0 | 0 |
Cash dividends paid to non-controlling interest | 0 | |
Payments for Repurchase of Common Stock | 0 | |
Payments for employee taxes withheld related to vested share-based awards | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 0 | |
Repayments of Long-term Debt | 0 | |
Payments of Debt Issuance Costs | 0 | |
Redemption of senior secured notes | 0 | 0 |
Cash (used in) provided by financing activities | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Guarantor Subsidiaries | ||
Cash flows from operations: | ||
Cash provided by (used in) operating activities | 1,272 | (7,052) |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | 0 | 0 |
Proceeds from settlement of company-owned life insurance | 0 | |
Purchase of tangible assets | (400) | |
Cash used in investing activities | (400) | 0 |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | 0 | 0 |
Cash dividends paid to non-controlling interest | 0 | |
Payments for Repurchase of Common Stock | 0 | |
Payments for employee taxes withheld related to vested share-based awards | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 0 | |
Repayments of Long-term Debt | 0 | |
Payments of Debt Issuance Costs | 0 | |
Redemption of senior secured notes | 0 | 0 |
Cash (used in) provided by financing activities | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 872 | (7,052) |
Cash and cash equivalents, beginning of period | 3,716 | 10,284 |
Cash and cash equivalents, end of period | 4,588 | 3,232 |
Non-Guarantor Subsidiaries | ||
Cash flows from operations: | ||
Cash provided by (used in) operating activities | 11,456 | (97,606) |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | (3,947) | (2,075) |
Proceeds from settlement of company-owned life insurance | 1,194 | |
Purchase of tangible assets | 0 | |
Cash used in investing activities | (3,947) | (881) |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | 0 | 0 |
Cash dividends paid to non-controlling interest | (816) | |
Payments for Repurchase of Common Stock | 0 | |
Payments for employee taxes withheld related to vested share-based awards | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 0 | |
Repayments of Long-term Debt | 0 | |
Payments of Debt Issuance Costs | 0 | |
Redemption of senior secured notes | (10,800) | 84,600 |
Cash (used in) provided by financing activities | (10,800) | 83,784 |
Net (decrease) increase in cash and cash equivalents | (3,291) | (14,703) |
Cash and cash equivalents, beginning of period | 36,996 | 54,400 |
Cash and cash equivalents, end of period | 33,705 | 39,697 |
Parent | ||
Cash flows from operations: | ||
Cash provided by (used in) operating activities | (1,417) | 34,273 |
Cash flows from investing activities | ||
Purchase of furniture, equipment and leasehold improvements | 0 | 0 |
Proceeds from settlement of company-owned life insurance | 0 | |
Purchase of tangible assets | 0 | |
Cash used in investing activities | 0 | 0 |
Cash flows from financing activities | ||
Cash dividends paid on Class A non-voting and Class B voting common stock | (2,913) | (2,940) |
Cash dividends paid to non-controlling interest | 0 | |
Payments for Repurchase of Common Stock | (5,159) | |
Payments for employee taxes withheld related to vested share-based awards | (2,444) | (2,203) |
Proceeds from Issuance of Long-term Debt | 200,000 | |
Repayments of Long-term Debt | (150,000) | |
Payments of Debt Issuance Costs | (547) | |
Redemption of senior secured notes | 0 | 0 |
Cash (used in) provided by financing activities | (5,357) | 39,151 |
Net (decrease) increase in cash and cash equivalents | (6,774) | 73,424 |
Cash and cash equivalents, beginning of period | 7,442 | 229 |
Cash and cash equivalents, end of period | $ 668 | $ 73,653 |