Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 30, 2017 | |
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-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 368.4 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 12,946,841 | ||
Class B Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 99,665 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 90,675 | $ 48,154 |
Deposits with clearing organizations | 67,678 | 42,222 |
Receivable from brokers, dealers and clearing organizations | 166,493 | 187,115 |
Receivable from customers, net of allowance for credit losses of $886 ($769 in 2017) | 720,777 | 848,226 |
Income tax receivable | 1,014 | 2,939 |
Securities purchased under agreements to resell | 290 | 658 |
Securities owned, including amounts pledged of $517,951 ($655,683 in 2017), at fair value | 837,584 | 926,597 |
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $25,109 and $6,800, respectively ($24,705 and $7,975, respectively, in 2017) | 44,058 | 40,520 |
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $89,182 ($82,826 in 2017) | 28,988 | 27,187 |
Intangible assets | 32,100 | 31,700 |
Goodwill | 137,889 | 137,889 |
Other assets | 112,768 | 145,310 |
Total assets | 2,240,314 | 2,438,517 |
Liabilities | ||
Drafts payable | 16,348 | 42,412 |
Bank call loans | 15,000 | 118,300 |
Payable to brokers, dealers and clearing organizations | 289,207 | 211,483 |
Payable to customers | 336,616 | 385,907 |
Securities sold under agreements to repurchase | 484,218 | 586,478 |
Securities sold but not yet purchased, at fair value | 85,446 | 94,486 |
Accrued compensation | 167,348 | 173,116 |
Accounts payable and other liabilities | 87,630 | 92,495 |
Senior secured notes, net of debt issuance costs of $904 ($1,163 in 2017) | 199,096 | 198,837 |
Deferred tax liabilities, net of deferred tax assets of $41,722 ($46,247 in 2017) | 14,083 | 11,092 |
Total liabilities | 1,694,992 | 1,914,606 |
Commitments and contingencies (note 16) | ||
Share capital | ||
Common stock | 53,392 | 58,492 |
Contributed capital | 41,776 | 36,546 |
Retained earnings | 449,989 | 426,930 |
Accumulated other comprehensive income | 165 | 1,582 |
Total Oppenheimer Holdings Inc. stockholders' equity | 545,322 | 523,550 |
Non-controlling interest | 0 | 361 |
Total stockholders' equity | 545,322 | 523,911 |
Total liabilities and stockholders' equity | 2,240,314 | 2,438,517 |
Class A Stock | ||
Share capital | ||
Common stock | 53,259 | 58,359 |
Class B Stock | ||
Share capital | ||
Common stock | $ 133 | $ 133 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 15, 2015 |
Allowance for credit losses | $ 886 | $ 769 | ||
Amounts pledged | 518,000 | 655,700 | ||
Furniture equipment and leasehold improvements, net accumulated depreciation | 89,182 | 82,826 | ||
Net deferred tax assets | 44,926 | 47,597 | ||
Notes Receivable, Net Accumulated Amortization | 25,109 | 24,705 | ||
Notes Receivable, Net Allowance for Uncollectibles | 6,800 | 7,975 | ||
Unamortized debt issuance expense | $ 904 | $ 1,163 | ||
Common Class A [Member] | ||||
Common stock, authorized | 50,000,000 | 50,000,000 | ||
Common stock, shares issued | 12,941,809 | 13,139,203 | ||
Common stock, shares outstanding | 12,941,809 | 13,139,203 | 13,261,095 | 13,348,369 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
REVENUE | |||||||||||
Commissions | $ 329,668 | $ 336,620 | $ 377,317 | ||||||||
Investment Advisory Fee Revenue | 314,349 | 320,746 | 269,119 | ||||||||
Investment banking | 115,353 | 78,215 | 81,011 | ||||||||
Interest Income, Deposits with Financial Institutions | 116,052 | 76,839 | 36,316 | ||||||||
Interest | 52,484 | 48,498 | 47,649 | ||||||||
Principal transactions, net | 14,461 | 23,273 | 20,481 | ||||||||
Other | 15,787 | 36,147 | 25,886 | ||||||||
Total revenue | $ 243,254 | $ 237,814 | $ 242,556 | $ 234,530 | $ 264,973 | $ 226,220 | $ 215,884 | $ 213,261 | 958,154 | 920,338 | 857,779 |
EXPENSES | |||||||||||
Compensation and related expenses | 607,192 | 602,138 | 584,710 | ||||||||
Communications and technology | 74,479 | 71,978 | 70,390 | ||||||||
Occupancy and equipment costs | 61,171 | 61,164 | 60,791 | ||||||||
Clearing and exchange fees | 22,985 | 23,545 | 25,126 | ||||||||
Interest | 46,396 | 28,354 | 19,437 | ||||||||
Other | 101,078 | 113,423 | 119,217 | ||||||||
Total expenses | 227,671 | 230,670 | 230,055 | 224,905 | 248,403 | 214,392 | 217,521 | 220,286 | 913,301 | 900,602 | 879,671 |
Income (loss) before income taxes from continuing operations | 15,583 | 7,144 | 12,501 | 9,625 | 16,570 | 11,828 | (1,637) | (7,025) | 44,853 | 19,736 | (21,892) |
Current and Deferred Income Tax Expense (Benefit) from Continuing Operations | 15,977 | (2,134) | (12,262) | ||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 8,267 | 5,061 | 8,839 | 6,709 | 21,168 | 7,403 | (1,363) | (5,338) | 28,876 | 21,870 | (9,630) |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 0 | 2,071 | 17,339 | ||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 0 | 941 | 7,218 | ||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | 29 | 461 | 53 | 587 | 0 | 1,130 | 10,121 |
Net income | 8,267 | 5,061 | 8,839 | 6,709 | 21,197 | 7,864 | (1,310) | (4,751) | 28,876 | 23,000 | 491 |
Less net income (loss) attributable to non-controlling interest, net of tax | 6 | (10) | (16) | 4 | 4 | 75 | 9 | 96 | (16) | 184 | 1,652 |
Net income (loss) attributable to Oppenheimer Holdings Inc. | $ 8,261 | $ 5,071 | $ 8,855 | $ 6,705 | $ 21,193 | $ 7,789 | $ (1,319) | $ (4,847) | $ 28,892 | $ 22,816 | $ (1,161) |
Basic net income (loss) per share attributable to Oppenheimer Holdings Inc. | |||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.62 | $ 0.38 | $ 0.67 | $ 0.51 | $ 1.61 | $ 0.56 | $ (0.10) | $ (0.40) | $ 2.18 | $ 1.65 | $ (0.72) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | 0 | 0 | 0 | 0 | 0.03 | 0 | 0.04 | 0 | 0.07 | 0.63 |
Net income (loss) per share | 0.62 | 0.38 | 0.67 | 0.51 | 2 | 1 | 0 | 0 | 2.18 | 1.72 | (0.09) |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.59 | 0.36 | 0.63 | 0.48 | 1.54 | 0.54 | (0.10) | (0.40) | 2.05 | 1.60 | (0.72) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0 | 0 | 0 | 0 | 0.03 | 0 | 0.04 | 0 | 0.07 | 0.63 |
Earnings Per Share, Diluted | 0.59 | 0.36 | 0.63 | 0.48 | 2 | 1 | 0 | 0 | 2.05 | 1.67 | (0.09) |
Dividends | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.44 | $ 0.44 | $ 440 |
Weighted average shares | |||||||||||
Basic | 13,248,876 | 13,246,423 | 13,368,768 | ||||||||
Diluted | 14,061,369 | 13,673,361 | 13,368,768 | ||||||||
Retained Earnings [Member] | |||||||||||
EXPENSES | |||||||||||
Net income (loss) attributable to Oppenheimer Holdings Inc. | $ 28,892 | $ 22,816 | $ (1,161) | ||||||||
Basic net income (loss) per share attributable to Oppenheimer Holdings Inc. | |||||||||||
Dividends | $ 0.44 | $ 0.44 | $ 0.44 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 28,876 | $ 23,000 | $ 491 | |
Other comprehensive income (loss), net of tax | ||||
Currency translation adjustment | [1] | (1,417) | 2,263 | 220 |
Comprehensive income | 27,459 | 25,263 | 711 | |
Net income (loss) attributable to non-controlling interest, net of tax | (16) | 184 | 1,652 | |
Total comprehensive income | $ 27,475 | $ 25,079 | $ (941) | |
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Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Share Capital | Share CapitalCommon Class A [Member] | Contributed Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Parent | Non-Controlling Interest | |
Balance at beginning of year at Dec. 31, 2015 | $ 57,520 | $ 44,438 | $ 417,001 | $ (901) | $ 7,024 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of Class A non-voting common stock | $ 5,776 | $ 5,776 | |||||||
Repurchase of Class A non-voting common stock for cancellation | (3,935) | ||||||||
Tax deficiency from share-based awards | (740) | ||||||||
Share-based expense | 5,184 | ||||||||
Vested employee share plan awards | (7,117) | ||||||||
Net income (loss) attributable to Oppenheimer Holdings Inc. | (1,161) | (1,161) | $ (1,161) | ||||||
Dividends paid ($0.44 per share for the years 2012, 2013 & 2014) | (5,887) | ||||||||
Dividends received from non-controlling interest | 305 | ||||||||
Currency translation adjustment | 220 | [1] | 220 | ||||||
Less net income (loss) attributable to non-controlling interest, net of tax | 1,652 | 0 | 1,652 | ||||||
Dividends paid to non-controlling interest | 5,740 | (5,740) | |||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees | (305) | ||||||||
Balance at end of year at Dec. 31, 2016 | 513,334 | 59,361 | 41,765 | 410,258 | (681) | 2,631 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative-effect adjustment from adoption of new accounting update of employee share-based accounting | 0 | ||||||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 510,703 | ||||||||
Non-controlling interest | 2,631 | ||||||||
Issuance of Class A non-voting common stock | 6,569 | 6,595 | |||||||
Repurchase of Class A non-voting common stock for cancellation | (7,464) | ||||||||
Tax deficiency from share-based awards | 0 | ||||||||
Share-based expense | 5,583 | ||||||||
Vested employee share plan awards | (11,227) | ||||||||
Net income (loss) attributable to Oppenheimer Holdings Inc. | 22,816 | 22,816 | 22,816 | ||||||
Dividends paid ($0.44 per share for the years 2012, 2013 & 2014) | (5,836) | ||||||||
Dividends received from non-controlling interest | 6 | ||||||||
Currency translation adjustment | 2,263 | [1] | 2,263 | ||||||
Less net income (loss) attributable to non-controlling interest, net of tax | 184 | 0 | 184 | ||||||
Dividends paid to non-controlling interest | 2,448 | (2,448) | |||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees | (6) | ||||||||
Balance at end of year at Dec. 31, 2017 | 523,911 | 58,492 | 36,546 | 426,930 | 1,582 | 523,550 | 361 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Adjustments to Additional Paid in Capital, Other | (314) | ||||||||
Cumulative-effect adjustment from adoption of new accounting update of employee share-based accounting | 425 | ||||||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 523,550 | 523,550 | |||||||
Non-controlling interest | 361 | 0 | 361 | ||||||
Issuance of Class A non-voting common stock | 724 | 794 | |||||||
Repurchase of Class A non-voting common stock for cancellation | $ (5,894) | ||||||||
Tax deficiency from share-based awards | 0 | ||||||||
Share-based expense | 6,061 | ||||||||
Vested employee share plan awards | (831) | ||||||||
Net income (loss) attributable to Oppenheimer Holdings Inc. | 28,892 | 28,892 | 28,892 | ||||||
Dividends paid ($0.44 per share for the years 2012, 2013 & 2014) | (5,833) | ||||||||
Dividends received from non-controlling interest | 0 | ||||||||
Currency translation adjustment | (1,417) | [1] | (1,417) | ||||||
Less net income (loss) attributable to non-controlling interest, net of tax | (16) | 0 | (16) | ||||||
Dividends paid to non-controlling interest | 372 | 0 | (345) | ||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees | 0 | ||||||||
Balance at end of year at Dec. 31, 2018 | 545,322 | $ 53,392 | 41,776 | 449,989 | $ 165 | 545,322 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Adjustments to Additional Paid in Capital, Other | $ 0 | ||||||||
Cumulative-effect adjustment from adoption of new accounting update of employee share-based accounting | $ 0 | ||||||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 545,322 | $ 545,322 | |||||||
Non-controlling interest | $ 0 | $ 0 | |||||||
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Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.44 | $ 0.44 | $ 440 |
Retained Earnings | |||||||||||
Dividends | $ 0.44 | $ 0.44 | $ 0.44 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 28,876 | $ 23,000 | $ 491 |
Non-cash items included in net income: | |||
Depreciation and amortization of furniture, equipment and leasehold improvements | 6,871 | 5,657 | 6,788 |
Deferred Income Taxes and Tax Credits | 2,773 | (2,045) | (2,941) |
Amortization of notes receivable | 12,540 | 11,791 | 12,960 |
Amortization of debt issuance costs | 259 | 353 | 484 |
Write-off of debt issuance costs | 0 | 430 | 0 |
Amortization of mortgage servicing rights | 0 | 0 | 1,286 |
Provision for (reversal of) credit losses | 117 | (25) | (1,751) |
Share-based compensation | 6,710 | 12,573 | 6,203 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | 0 | 0 | (740) |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | 0 | (16,475) |
Decrease (increase) in operating assets: | |||
Deposits with clearing organizations | (25,456) | (4,037) | 11,305 |
Receivable from brokers, dealers and clearing organizations | 20,622 | 27,819 | 145,882 |
Increase (Decrease) in Accounts and Other Receivables | (127,332) | 815 | 5,280 |
Income tax receivable | 1,925 | 2,877 | 5,104 |
Securities purchased under agreements to resell | 368 | 23,348 | 182,493 |
Securities owned | 89,013 | (219,489) | 24,725 |
Notes receivable | (16,078) | (22,212) | (10,210) |
Loans held for sale | 0 | 0 | 60,234 |
Mortgage servicing rights | 0 | 0 | (1,300) |
Other assets | 30,272 | (37,130) | 2,368 |
Increase (decrease) in operating liabilities: | |||
Drafts payable | (26,064) | 3,184 | (8,783) |
Payable to brokers, dealers and clearing organizations | 77,724 | (9,906) | 56,843 |
Payable to customers | (49,291) | (64,039) | (144,887) |
Securities sold under agreements to repurchase | (102,260) | 208,394 | (273,361) |
Securities sold but not yet purchased | (9,040) | 9,436 | (41,443) |
Accrued compensation | (6,418) | 21,184 | (6,864) |
Accounts payable and other liabilities | (2,225) | (6,484) | (69,996) |
Cash provided by (used in) operating activities | 168,570 | (16,136) | (66,865) |
Cash flows from investing activities | |||
Purchase of furniture, equipment and leasehold improvements | (8,672) | (5,611) | (5,731) |
Payments to Acquire Intangible Assets | (400) | 0 | 0 |
Proceeds from Divestiture of Businesses | 0 | 0 | 45,448 |
Proceeds from Life Insurance Policy | 881 | 1,744 | 0 |
Cash (used in) provided by investing activities | (8,191) | (3,867) | 39,717 |
Cash flows from financing activities | |||
Cash dividends paid on Class A non-voting and Class B voting common stock | (5,833) | (5,836) | (5,887) |
Payments of Ordinary Dividends, Noncontrolling Interest | (372) | (2,448) | (5,740) |
Issuance of Class A non-voting common stock | 70 | 26 | 0 |
Repurchase of Class A non-voting common stock for cancellation | (5,894) | (7,464) | (3,935) |
Payments Related to Tax Withholding for Share-based Compensation | (2,529) | (2,237) | (1,341) |
Proceeds from Issuance of Senior Long-term Debt | 0 | 200,000 | 0 |
Redemption of senior secured notes | 0 | (150,000) | 0 |
Payments of Debt Issuance Costs | 0 | (1,297) | 0 |
Redemption of senior secured notes | (103,300) | (27,500) | 45,600 |
Cash (used in) provided by financing activities | (117,858) | 3,244 | 28,697 |
Net increase (decrease) in cash and cash equivalents | 42,521 | (16,759) | 1,549 |
Cash and cash equivalents, beginning of year | 48,154 | 64,913 | 63,364 |
Cash and cash equivalents, end of year | 90,675 | 48,154 | 64,913 |
Schedule of non-cash financing activities | |||
Employee share plan issuance | 724 | 6,569 | 5,776 |
Supplemental disclosure of cash flow information | |||
Cash paid during the year for interest | 53,559 | 23,899 | 19,705 |
Proceeds from Income Tax Refunds | $ (2,378) | $ (5,009) | |
Cash paid (received) during the year for income taxes, net | $ 11,520 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Oppenheimer Holdings Inc. ("OPY" or the "Parent") is incorporated under the laws of the State of Delaware. The 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 92 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, Germany 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of significant accounting policies and estimates Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. Intercompany transactions and balances have been eliminated in the preparation of the consolidated financial statements. Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. In presenting the consolidated financial statements, management makes estimates regarding valuations of financial instruments, loans and allowances for credit losses, the outcome of legal and regulatory matters, goodwill and other intangible assets, share-based compensation plans and income taxes. Estimates, by their nature, are based on judgment and available information. Therefore, actual results could be materially different from these estimates. A discussion of certain critical accounting policies in which estimates are a significant component of the amounts reported on the consolidated financial statements follows. Financial Instruments and Fair Value Financial Instruments 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. Fair Value Measurements Accounting guidance for the fair value measurement of financial assets, which defines fair value, establishes a framework for measuring fair value, establishes a fair value measurement hierarchy, and expands fair value measurement disclosures. Fair value, as defined by the accounting guidance, is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy established by this accounting guidance prioritizes the inputs used in valuation techniques into the following three categories (highest to lowest priority): Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly; and Level 3: Unobservable inputs that are significant to the overall fair value measurement. The Company's financial instruments that are recorded at fair value generally are classified within Level 1 or Level 2 within the fair value hierarchy using quoted market prices or quotes from market makers or broker-dealers. Financial instruments classified within Level 1 are valued based on quoted market prices in active markets and consist of U.S. Treasury and Agency securities, corporate equities, and certain money market instruments. Level 2 financial instruments primarily consist of investment grade and high-yield corporate debt, convertible bonds, mortgage and asset-backed securities, and municipal obligations. Financial instruments classified as Level 2 are valued based on quoted prices for similar assets and liabilities in active markets and quoted prices for identical or similar assets and liabilities in markets that are not active. Some financial instruments are classified within Level 3 within the fair value hierarchy as observable pricing inputs are not available due to limited market activity for the asset or liability. Such financial instruments include certain distressed municipal securities, auction rate securities ("ARS") and investments in hedge funds and private equity funds where the Company, through its subsidiaries, is general partner. Fair Value Option The Company has the option to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company may make a fair value option election on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. Consolidation The Company consolidates all subsidiaries in which it has a controlling financial interest, as well as any variable interest entities ("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. The Company reviews factors, including the rights of the equity holders at risk and obligations of equity holders to absorb losses or receive expected residual returns, to determine if the entity is a VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly by the Company. Under Accounting Standards Update ("ASU") 2015-02, a general partner will not consolidate a partnership or similar entity under the voting interest model. See note 8 for further details. Financing Receivables The Company's financing receivables include customer margin loans, securities purchased under agreements to resell ("reverse repurchase agreements"), and securities borrowed transactions. The Company uses financing receivables to extend margin loans to customers, meet trade settlement requirements, and facilitate its matched-book arrangements and inventory requirements. The Company's financing receivables are secured by collateral received from clients and counterparties. In many cases, the Company is permitted to sell or re-pledge securities held as collateral. These securities may be used to collateralize repurchase agreements, to enter into securities lending agreements, to cover short positions or fulfill the obligation of securities fails to deliver. The Company monitors the market value of the collateral received on a daily basis and may require clients and counterparties to deposit additional collateral or return collateral pledged, when appropriate. Customer receivables, primarily consisting of customer margin loans collateralized by customer-owned securities, are stated net of allowance for credit losses. The Company reviews large customer accounts that do not comply with the Company's margin requirements on a case-by-case basis to determine the likelihood of collection and records an allowance for credit loss following that process. For small customer accounts that do not comply with the Company's margin requirements, the allowance for credit loss is generally recorded as the amount of unsecured or partially secured receivables. The Company also makes loans to financial advisers as part of its hiring process. These loans are recorded as notes receivable on its consolidated balance sheet. Allowances are established on these loans if the financial adviser is no longer associated with the Company and the loan has not been promptly repaid. Legal and Regulatory Reserves The Company records reserves related to legal and regulatory proceedings in accounts payable and other liabilities. The determination of the amounts of these reserves requires significant judgment on the part of management. In accordance with applicable accounting guidance, the Company establishes reserves for litigation and regulatory matters where available information indicates that it is probable a liability had been incurred and the Company can reasonably estimate the amount of that loss. When loss contingencies are not probable or cannot be reasonably estimated, the Company does not establish reserves. When determining whether to record a reserve, management considers many factors including, but not limited to, the amount of the claim; the stage and forum of the proceeding, the sophistication of the claimant, the amount of the loss, if any, in the client's account and the possibility of wrongdoing, if any, on the part of an employee of the Company; the basis and validity of the claim; previous results in similar cases; and applicable legal precedents and case law. Each legal and regulatory proceeding is reviewed with counsel in each accounting period and the reserve is adjusted as deemed appropriate by management. Any change in the reserve amount is recorded in the results of that period. The assumptions of management in determining the estimates of reserves may be incorrect and the actual disposition of a legal or regulatory proceeding could be greater or less than the reserve amount. Goodwill The Company defines a reporting unit as an operating segment. The Company's goodwill resides in its Private Client Division ("PCD") reporting unit. Goodwill of a reporting unit is subject to at least an annual test for impairment to determine if the estimated fair value of a reporting unit is less than its carrying amount. Goodwill of a reporting unit is required to be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Due to the volatility in the financial services sector and equity markets in general, determining whether an impairment of goodwill has occurred is increasingly difficult and requires management to exercise significant judgment. The Company's annual goodwill impairment analysis performed as of December 31, 2018 applied the same valuation methodologies with consistent inputs as that performed as of December 31, 2017 , as follows: In estimating the fair value of the PCD reporting unit, the Company uses traditional standard valuation methods, including the market comparable approach and income approach. The market comparable approach is based on comparisons of the subject company to public companies whose stocks are actively traded ("Price Multiples") or to similar companies engaged in an actual merger or acquisition ("Precedent Transactions"). As part of this process, multiples of value relative to financial variables, such as earnings or stockholders' equity, are developed and applied to the appropriate financial variables of the subject company to indicate its value. The income approach involves estimating the present value of the subject company's future cash flows by using projections of the cash flows that the business is expected to generate, and discounting these cash flows at a given rate of return ("Discounted Cash Flow" or "DCF"). Each of these standard valuation methodologies requires the use of management estimates and assumptions. In its Price Multiples valuation analysis, the Company uses various operating metrics of comparable companies, including revenues, after-tax earnings, and EBITDA as well as price-to-book value ratios at a point in time. The Company analyzes prices paid in Precedent Transactions that are comparable to the business conducted in the PCD. The DCF analysis includes the Company's assumptions regarding discount rate, growth rates of the PCD's revenues, expenses, EBITDA, and capital expenditures, adjusted for current economic conditions and expectations. The Company weighs each of the three valuation methods equally in its overall valuation. Given the subjectivity involved in selecting which valuation method to use, the corresponding weightings, and the input variables for use in the analyses, it is possible that a different valuation model and the selection of different input variables could produce a materially different estimate of the fair value of the PCD reporting unit. Intangible Assets Indefinite intangible assets are comprised of trademarks, trade names and an Internet domain name. These intangible assets carried at $32.1 million , which are not amortized, are subject to at least an annual test for impairment to determine if the estimated fair value is less than their carrying amount. The fair value of the trademarks and trade names was substantially in excess of its carrying value as of December 31, 2018 . Share-Based Compensation Plans As part of the compensation to employees and directors, the Company uses stock-based compensation, consisting of restricted stock, stock options and stock appreciation rights. In accordance with ASC Topic 718, "Compensation - Stock Compensation," the Company classifies the stock options and restricted stock awards as equity awards, which requires the compensation cost to be recognized in the consolidated statement of operations over the requisite service period of the award at grant date fair value and adjust for actual forfeitures. The fair value of restricted stock awards is determined based on the grant date closing price of the Company's Class A non-voting common stock ("Class A Stock") adjusted for the present value of the dividend to be received upon vesting. The fair value of stock options is determined using the Black-Scholes model. Key assumptions used to estimate the fair value include the expected term and the expected volatility of the Company's Class A Stock over the term of the award, the risk-free interest rate over the expected term, and the Company's expected annual dividend yield. The Company classifies stock appreciation rights ("OARs") as liability awards, which requires the fair value to be remeasured at each reporting period until the award vests. The fair value of OARs is also determined using the Black-Scholes model at the end of each reporting period. The compensation cost is adjusted each reporting period for changes in fair value prorated for the portion of the requisite service period rendered. Revenue Recognition Brokerage Customers' securities and commodities transactions are reported on a settlement date basis, which is generally two business days after trade date for securities transactions and one day for commodities transactions. Related commission income and expense is recorded on a trade date basis. Principal Transactions Transactions in proprietary securities and related revenue and expenses are recorded on a trade date basis. Securities owned and securities sold but not yet purchased are reported at fair value generally based upon quoted prices. Realized and unrealized changes in fair value are recognized in principal transactions, net in the period in which the change occurs. Investment Banking Fees Advisory fees from mergers, acquisitions and restructuring transactions are recorded when services for the transactions are completed and income is reasonably determinable, generally as set forth under the terms of the engagement. Retainer fees and engagement fees are recognized ratably over the service period. Underwriting fees are recorded when 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 the related expenses are presented gross on the consolidated statement of operations. Interest Interest revenue represents interest earned on margin debit balances, securities borrowed transactions, reverse repurchase agreements, fixed income securities, firm investments, and cash and cash equivalents. Interest revenue is recognized in the period earned based upon average or daily asset balances, contractual cash flows, and interest rates. Asset Management Asset management fees are generally recognized over the period the related service is provided based on the account value at the valuation date per the respective asset management agreements. In certain circumstances, OAM is entitled to receive performance (or incentive) fees when the return on assets under management ("AUM") exceeds certain benchmark returns or other performance targets. Performance fees are generally based on investment performance over a 12-month 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. Asset management fees and performance fees are included in advisory fees in the consolidated statement of operations. Assets under management are not included as assets of the Company. Bank Deposit Sweep Income Bank deposit sweep income consists of revenues earned from the Advantage 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. The Company earns the fee paid on these deposits after administrative fees are paid to the administrator of the program. The fee earned in the period is recorded in bank deposit sweep income and the portion of interest credited to clients is recorded in interest expense in the consolidated statement of operations. Balance Sheet Cash and Cash Equivalents The Company defines cash equivalents as highly liquid investments with original maturities of less than 90 days that are not held for sale in the ordinary course of business. Receivables from / Payables to Brokers, Dealers and Clearing Organizations Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced or received. Securities borrowed transactions require the Company to deposit cash or other collateral with the lender. The Company receives cash or collateral in an amount generally in excess of the market value of securities loaned. The Company monitors the market value of securities borrowed and loaned on a daily basis and may require counterparties to deposit additional collateral or return collateral pledged, when appropriate. Securities failed to deliver and receive represent the contract value of securities which have not been delivered or received, respectively, by settlement date. Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase Reverse repurchase agreements and securities sold under agreements to repurchase ("repurchase agreements") are treated as collateralized financing transactions and are recorded at their contractual amounts plus accrued interest. The resulting interest income and expense for these arrangements are included in interest income and interest expense in the consolidated statement of operations. Additionally, the Company elected the fair value option for repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date. The Company can present the reverse repurchase and repurchase transactions on a net-by-counterparty basis when the specific offsetting requirements are satisfied. Notes Receivable Notes receivable represent recruiting and retention payments generally in the form of upfront loans to financial advisers and key revenue producers as part of the Company's overall growth strategy. These notes generally amortize over a service period of 3 to 9 years from the initial date of the note or based on productivity levels of employees. All such notes are contingent on the employees' continued employment with the Company. The unforgiven portion of the notes becomes due on demand in the event the employee departs during the service period. Amortization of notes receivable is included in the consolidated statement of operations in compensation and related expenses. Furniture, Equipment and Leasehold Improvements Furniture, equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation of furniture, fixtures, and equipment is provided on a straight-line basis generally over 3 - 7 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the improvement or the remaining term of the lease. Leases with escalating rents are expensed on a straight-line basis over the life of the lease. Landlord incentives are recorded as deferred rent and amortized, as reductions to lease expense, on a straight-line basis over the life of the applicable lease. Deferred rent is included in accounts payable and other liabilities on the consolidated balance sheet. Drafts Payable Drafts payable represent amounts drawn by the Company against a bank. Bank Call Loans Bank call loans are generally payable on demand and bear interest at various rates, such loans were collateralized by firm and/or customer securities. Foreign Currency Translations Foreign currency balances have been translated into U.S. dollars as follows: monetary assets and liabilities at exchange rates prevailing at period end; revenue and expenses at average rates for the period; and non-monetary assets and stockholders' equity at historical rates. The functional currency of the overseas operations is the local currency in each location except for Oppenheimer Europe Ltd. and Oppenheimer Investments Asia Limited which have the U.S. dollar as their functional currency. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and the results of recent operations. The Company records uncertain tax positions in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 740, "Income Taxes" on the basis of a two-step process whereby it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company records interest and penalties accruing on unrecognized tax benefits in income before income taxes as interest expense and other expense, respectively, in its consolidated statement of operations. The Company permanently reinvests eligible earnings of its foreign subsidiaries and, accordingly, does not accrue any U.S. income taxes that would arise if such earnings were repatriated. 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 Staff Accounting Bulletin 118 (“SAB 118”) which provides guidance on accounting for the impact of the Tax Cuts and Jobs Act (the “TCJA”). SAB 118 provides a measurement period, not to exceed 12 months from the date of enactment to complete, the accounting associated with the TCJA. Under SAB 118, for matters for which the accounting related to the TCJA had not yet been completed, the Company recognized provisional amounts to the extent that they were reasonably estimable. The Company has completed its accounting of the impact of the TJCA in the current period and there were no significant changes to the provisional amounts previously recorded in accordance with SAB 118. See note 14, Income taxes. 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 evaluated the impact of adopting this ASU which will have a significant impact on its consolidated financial statements. Since the Company has operating leases in over 100 locations, equipment leases and embedded leases, the Company expects to recognize a significant right-of use asset and lease liability on its consolidated balance sheet upon adoption of this ASU. As of December 31, 2018 , the Company estimates that it will record right-of-use assets between $170.0 million to $215.0 million and lease liabilities within the same range on the consolidated balance sheet upon the adoption of this standard, which predominately relates to real estate leases. 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 the Company's 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 the Company's 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 relationships 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 the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement - Disclosure Framework - Changes to the Disclosure Requirements for the Fair Value Measurement," which modifies the disclosure requirements related to fair value measurement. The ASU is effective for fiscal years and interim periods 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's disclosure. |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 3. Discontinued operations OMHHF historically was engaged in the business of originating and servicing FHA-insured multifamily and healthcare facility loans and securitizing these loans into GNMA mortgage backed securities. OMHHF offered mortgage services to developers of commercial properties including apartments, elderly housing and nursing homes that satisfied FHA criteria. During 2016, the Company sold substantially all of the assets of OMHHF and ceased it operations. The Company determined that the sale of the assets of OMHHF met the criteria to be classified within discontinued operations, and the results of OMHHF are reported as discontinued operations in the consolidated statements of operations. The following is a summary of revenue and expenses of OMHHF for the years ended December 31, 2018 , 2017 and 2016 : (Expressed in thousands) For the Years Ended December 31, 2018 2017 2016 REVENUE Interest $ — $ 8 $ 943 Principal transactions, net — — (9,022 ) Gain on sale of assets — — 16,475 Other (1) — 2,165 16,917 Total revenue — 2,173 25,313 EXPENSES Compensation and related expenses — 18 4,311 Communications and technology — 27 221 Occupancy and equipment costs — — 415 Interest — 12 408 Other — 45 2,619 Total expenses — 102 7,974 Income before income taxes $ — $ 2,071 $ 17,339 Income attributable to non-controlling interest before income taxes $ — $ 338 $ 2,830 (1) Other revenue for the year ended December 31, 2017 was primarily due to an earn-out from the sale of OMHHF's pipeline business in 2016. The following is a summary of cash flows of OMHHF for the years ended December 31, 2018 , 2017 and 2016 : (Expressed in thousands) For the Years Ended December 31, 2018 2017 2016 Cash provided by (used in) operating activities $ — $ 5,721 $ (14,097 ) Cash provided by investing activities — — 45,448 Cash used in financing activities (1) (2) (372 ) (20,035 ) (35,421 ) Net decrease in cash and cash equivalents $ (372 ) $ (14,314 ) $ (4,070 ) (1) Includes cash dividends paid to OMHHF's parent (E.A. Viner International Co.) and non-controlling interest of $ nil and $345,000 , respectively, for the year ended December 31, 2018 ( $12.6 million and $2.4 million , respectively, for the year ended December 31, 2017 ). (2) Includes $5.0 million paid to OMHHF's parent due to redemption of the parent's outstanding preferred stock for the year ended December 31, 2017. |
Receivable From and Payable to
Receivable From and Payable to Brokers, Dealers and Clearing Organizations | 12 Months Ended |
Dec. 31, 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 December 31, 2018 2017 Receivable from brokers, dealers and clearing organizations consists of: Securities borrowed $ 108,144 $ 132,368 Receivable from brokers 20,140 19,298 Securities failed to deliver 7,021 9,442 Clearing organizations 28,777 24,361 Other 2,411 1,646 Total $ 166,493 $ 187,115 Payable to brokers, dealers and clearing organizations consists of: Securities loaned $ 146,815 $ 180,270 Payable to brokers 158 1,567 Securities failed to receive 27,799 17,559 Other 114,435 12,087 Total $ 289,207 $ 211,483 |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 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 December 31, 2018 , the Company had no 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 December 31, 2018 , the Company purchased and holds (net of redemptions) approximately $40.7 million in ARS from its clients. In addition, the Company is committed to purchase another $7.3 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 December 31, 2018 Product Principal Valuation Adjustment Fair Value Valuation Technique Unobservable Input Range Weighted Average Auction Rate Securities Owned (1) Auction Rate Preferred Securities $ 21,350 $ 1 $ 21,349 Discounted Cash Flow Discount Rate (2) 2.86% to 3.89% 3.88% — Duration 1 Year 1 Year Current Yield (3) 2.69% to 4.05% 4.03% Auction Rate Preferred Securities 18,950 2,697 16,253 Tender Offer (4) N/A N/A N/A Municipal Auction Rate Securities 75 — 75 Discounted Cash Flow Discount Rate (5) 4.35% 4.35% Duration 2 years 2 years Current Yield (3) 5.51% 5.51% Student Loan Auction Rate Securities 275 — 275 Discounted Cash Flow Discount Rate (6) 3.68% 3.68% Duration 4.0 Years 4.0 Years Current Yield (3) 3.64% 3.64% $ 40,650 $ 2,698 $ 37,952 Auction Rate Securities Commitments to Purchase (7) Auction Rate Preferred Securities 7,305 1,096 6,209 Tender Offer (4) N/A N/A N/A $ 7,305 $ 1,096 $ 6,209 Total $ 47,955 $ 3,794 $ 44,161 (1) Principal amount represents the par value of the ARS and is included in securities owned on the consolidated balance sheet as of December 31, 2018 . The valuation adjustment amount is included as a reduction to securities owned on the consolidated balance sheet as of December 31, 2018 . (2) Derived by applying a multiple to a spread between 110% to 150% to the U.S. Treasury rate of 2.60% . (3) Based on current yields for ARS positions owned. (4) Residual ARS amounts owned and ARS commitments to purchase that were subject to tender offers were priced at the tender offer price. Included in Level 2 of the fair value hierarchy. (5) Derived by applying the sum of the spread of 175% to the U.S. Treasury rate of 2.49% . (6) Derived by applying the sum of the spread of 1.20% to the U.S. Treasury rate of 2.48% . (7) 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 consolidated balance sheet as of December 31, 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 impa ct of a 25 basis point increase in the discount rate at December 31, 2018 would result in a decrease in the fair value of $22,000 (does not consider a corresponding reduction in duration as discussed above). • The impact of a 50 basis point increase in the discount rate at December 31, 2018 would result in a decrease in the fair value of $76,000 (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 December 31, 2018 , the Company had a valuation adjustment (unrealized loss) of $2.7 million for ARS owned which is included as a reduction to securities owned on the consolidated balance sheet. As of December 31, 2018 , the Company also had a valuation adjustment of $1.1 million on ARS purc hase commitments from legal settlements and awards which is included in accounts payable and other liabilities on the consolidated balance sheet. The total valuation adjus tment was $3.8 million as of December 31, 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 December 31, 2018 : (Expressed in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Hedge funds (1) $ 1,596 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 4,908 1,399 N/A N/A $ 6,504 $ 1,399 (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 December 31, 2018 and 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 December 31, 2018 (Expressed in thousands) Fair Value Measurements as of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,500 $ — $ — $ 10,500 Deposits with clearing organizations 34,599 — — 34,599 Securities owned: U.S. Treasury securities 657,208 — — 657,208 U.S. Agency securities 812 6,494 — 7,306 Sovereign obligations — 214 — 214 Corporate debt and other obligations — 20,665 — 20,665 Mortgage and other asset-backed securities — 2,486 — 2,486 Municipal obligations — 52,261 — 52,261 Convertible bonds — 31,270 — 31,270 Corporate equities 28,215 — — 28,215 Money markets 7 — — 7 Auction rate securities — 16,253 21,699 37,952 Securities owned, at fair value 686,242 129,643 21,699 837,584 Investments (1) — — 101 101 Derivative contracts: TBAs — 4,873 — 4,873 Total $ 731,341 $ 134,516 $ 21,800 $ 887,657 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 53,646 $ — $ — $ 53,646 U.S. Agency securities — 3 — 3 Sovereign obligations — 78 — 78 Corporate debt and other obligations — 7,236 — 7,236 Convertible bonds — 9,709 — 9,709 Corporate equities 14,774 — — 14,774 Securities sold but not yet purchased, at fair value 68,420 17,026 — 85,446 Derivative contracts: Futures 807 — — 807 Foreign exchange forward contracts 4 — — 4 TBAs — 4,873 — 4,873 ARS purchase commitments — 1,096 — 1,096 Derivative contracts, total 811 5,969 — 6,780 Total $ 69,231 $ 22,995 $ — $ 92,226 (1) Included in other assets on the 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 consolidated balance sheet. The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2018 and 2017 : (Expressed in thousands) Level 3 Assets and Liabilities For the Year Ended December 31, 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) (5) 87,398 1,351 6,300 (35,675 ) (37,675 ) 21,699 Investments 169 (8 ) — — (60 ) 101 Liabilities ARS purchase commitments (2) (5) 8 (1,088 ) — — 1,096 — (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 consolidated statement of operations, except for gains (losses) from investments which are included in other income in the consolidated statement of operations. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. (5) Represents transfers from Level 3 to Level 2 of the fair value hierarchy. Transfers were due to tender offers by issuers of ARS. (Expressed in thousands) Level 3 Assets and Liabilities For the Year Ended December 31, 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 $ (9 ) $ — $ — $ — $ 35 Auction rate securities (1) 84,926 1,177 27,225 (1,475 ) (24,455 ) 87,398 Investments 158 11 — — — 169 ARS purchase commitments (2) 849 (849 ) — — — — Liabilities ARS purchase commitments (2) 645 637 — — — 8 (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 consolidated statement of operations, except for gains (losses) from investments which are included in other income in the 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 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 December 31, 2018 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 80,175 $ 80,175 $ — $ — $ 80,175 Deposits with clearing organization 33,079 33,079 — — 33,079 Receivable from brokers, dealers and clearing organizations: Securities borrowed 108,144 — 108,144 — 108,144 Receivables from brokers 20,140 — 20,140 — 20,140 Securities failed to deliver 7,021 — 7,021 — 7,021 Clearing organizations 28,777 — 28,777 — 28,777 Other 2,411 — 2,411 — 2,411 166,493 — 166,493 — 166,493 Receivable from customers 720,777 — 720,777 — 720,777 Securities purchased under agreements to resell 290 290 — 290 Notes receivable, net 44,058 44,058 — 44,058 Investments (1) 59,765 — 59,765 — 59,765 (1) Included in other assets on the consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 16,348 $ 16,348 $ — $ — $ 16,348 Bank call loans 15,000 — 15,000 — 15,000 Payables to brokers, dealers and clearing organizations: Securities loaned 146,815 — 146,815 — 146,815 Payable to brokers 158 — 158 — 158 Securities failed to receive 27,799 — 27,799 — 27,799 Other 113,628 — 113,628 — 113,628 288,400 — 288,400 — 288,400 Payables to customers 336,616 — 336,616 — 336,616 Securities sold under agreements to repurchase 484,218 — 484,218 — 484,218 Senior secured notes 200,000 — 199,722 — 199,722 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 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 December 31, 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 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 consolidated balance sheet and other income in the 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 consolidated balance sheet in payable to brokers, dealers and clearing organizations and in the 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 consolidated balance sheet in receivable from brokers, dealers and clearing organizations or payable to brokers, dealers and clearing organizations and in the consolidated statement of operations as principal transactions revenue, net. The notional amounts and fair values of the Company's derivatives as of December 31, 2018 and 2017 by product were as follows: (Expressed in thousands) Fair Value of Derivative Instruments as of December 31, 2018 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 729,500 $ 4,873 $ 729,500 $ 4,873 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 4,580,800 $ 807 Other contracts Foreign exchange forward contracts 200 4 TBAs 729,500 4,873 ARS purchase commitments 7,305 1,096 $ 5,317,805 $ 6,780 (1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivate instruments are not subject to master netting agreements, thus the related amounts are not offset. (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. Such derivate 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. The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the consolidated statements of operations for the years ended December 31, 2018 and 2017 : (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Operations For the Year Ended December 31, 2018 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 592 Other contracts Foreign exchange forward contracts Other revenue (7 ) TBAs Principal transactions revenue 371 ARS purchase commitments Principal transactions revenue (1,088 ) $ (132 ) (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Operations For the Year Ended December 31, 2017 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 987 Other contracts Foreign exchange forward contracts Other revenue 12 TBAs Principal transactions revenue (167 ) Other TBAs Other revenue (338 ) ARS purchase commitments Principal transactions revenue (212 ) $ 282 |
Collateralized Transactions
Collateralized Transactions | 12 Months Ended |
Dec. 31, 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. As of December 31, 2018 , bank call loans were $15.0 million ( $118.3 million as of December 31, 2017 ). As of December 31, 2018 , such loans were collateralized by firm and/or customer securities with market values of approximately $18.6 million and $1.6 million , respectively, with commercial banks. As of December 31, 2018 , the Company had approximately $1.0 billion of customer securities under customer margin loans that are available to be pledged, of which the Company has re-pledged approximately $112.6 million under securities loan agreements. As of December 31, 2018 , the Company had pledged $460.2 million of customer securities directly with the Options Clearing Corporation to secure obligations and margin requirements under option contracts written by customers. As of December 31, 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 December 31, 2018 : (Expressed in thousands) Overnight and Open Repurchase agreements: U.S. Government and Agency securities $ 566,357 Securities loaned: Equity securities 146,815 Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 713,172 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 December 31, 2018 and 2017 : As of December 31, 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 $ 82,429 $ (82,139 ) $ 290 $ — $ — $ 290 Securities borrowed (1) 108,144 — 108,144 (105,960 ) — 2,184 Total $ 190,573 $ (82,139 ) $ 108,434 $ (105,960 ) $ — $ 2,474 (1) Included in receivable from brokers, dealers and clearing organizations on the 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 $ 566,357 $ (82,139 ) $ 484,218 $ (480,322 ) $ — $ 3,896 Securities loaned (2) 146,815 — 146,815 (139,232 ) — 7,583 Total $ 713,172 $ (82,139 ) $ 631,033 $ (619,554 ) $ — $ 11,479 (2) Included in payable to brokers, dealers and clearing organizations on the 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 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 consolidated balance sheet. 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 December 31, 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 December 31, 2018 , the fair value of securities received as collateral under securities borrowed transactions and reverse repurchase agreements was $104.9 million ( $127.2 million as of December 31, 2017 ) and $83.0 million ( $221.6 million as of December 31, 2017 ), respectively, of which the Company has sold and re-pledged approximately $27.6 million ( $30.9 million as of December 31, 2017 ) under securities loaned transactions and $83.0 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 $518.0 million , as presented on the face of the consolidated balance sheet as of December 31, 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 $20.2 million as of December 31, 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 December 31, 2018 are receivables from five major U.S. broker-dealers totaling approximately $86.2 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 December 31, 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 December 31, 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 | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entities | Variable interest entities 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 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 December 31, 2018 and 2017 : (Expressed in thousands) As of December 31, 2018 Total VIE Assets (1) Carrying Value of the Capital Commitments Maximum Exposure to Loss in Non-consolidated VIEs Assets (2) Liabilities Hedge funds $ 291,200 $ 337 $ — $ — $ 337 Private equity funds 7,454 8 — — 8 Total $ 298,654 $ 345 $ — $ — $ 345 (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 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 consolidated balance sheet. |
Office Facilities
Office Facilities | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Office Facilities | Furniture, equipment and leasehold improvements (Expressed in thousands) For the Years Ended December 31, 2018 2017 Furniture, fixtures and equipment $ 57,482 $ 53,260 Leasehold improvements 60,688 56,753 Total 118,170 110,013 Less accumulated depreciation (89,182 ) (82,826 ) Total $ 28,988 $ 27,187 Depreciation and amortization expense, included in occupancy and equipment costs in the consolidated statements of operations, was $6.9 million , $5.7 million and $6.8 million in the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Bank Call Loans
Bank Call Loans | 12 Months Ended |
Dec. 31, 2018 | |
Bank Call Loans [Abstract] | |
Bank Call Loans | Bank call loans Bank call loans, primarily payable on demand, bear interest at various rates but not exceeding the broker call rate, which was 4.25% at December 31, 2018 ( 3.25% at December 31, 2017 ). Details of the bank call loans are as follows: (Expressed in thousands, except percentages) 2018 2017 Year-end balance $ 15,000 $ 118,300 Weighted interest rate (at end of year) 3.43 % 2.25 % Maximum balance (at any month-end) 161,800 230,400 Average amount outstanding (during the year) 53,271 123,918 Average interest rate (during the year) 2.66 % 2.08 % Interest expense for the year ended December 31, 2018 on bank call loans was $1.4 million ( $2.6 million in 2017 and $1.7 million in 2016 ). |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt (Expressed in thousands) Issued Maturity Date December 31, 2018 December 31, 2017 6.75% Senior Secured Notes 7/1/2022 $ 200,000 $ 200,000 Unamortized Debt Issuance Cost (904 ) (1,163 ) $ 199,096 $ 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 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 December 31, 2018 , the Parent was in compliance with all of its covenants. Interest expense for the year ended December 31, 2018 and 2017 on the Notes was $13.5 million and $7.0 million , respectively. Interest paid on the Notes for the year ended December 31, 2018 was $13.8 million ($ nil in 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 15th and October 15th. 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 year ended December 31, 2017 on the Old Notes was $6.7 million ( $13.1 million in 2016 ). Interest paid on the Old Notes for the year ended December 31, 2017 was $9.4 million ( $13.1 million in 2016). |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 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 years indicated: 2018 2017 Class A Stock outstanding, beginning of year 13,139,203 13,261,095 Issued pursuant to share-based compensation plans (note 15) 38,728 328,458 Repurchased and canceled pursuant to the stock buy-back (236,122 ) (450,350 ) Class A Stock outstanding, end of year 12,941,809 13,139,203 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. As of January 1, 2018, 508,906 shares were available to be purchased under this program. During the year ended December 31, 2018 , the Company purchased and canceled an aggregate of 236,122 shares of Class A Stock for a total consideration of $5.9 million ( $24.96 per share). As of December 31, 2018 , 272,784 shares remained available to be purchased under this program. Any such share repurchases 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. Dividends The Company paid cash dividends of $0.44 per share to holders of Class A and Class B Stock in 2018 , 2017 and 2016 . |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 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 Stock and 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 the 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 Year Ended December 31, 2018 2017 2016 Basic weighted average number of shares outstanding 13,248,876 13,246,423 13,368,768 Net dilutive effect of share-based awards, treasury method (1) 812,493 426,938 — Diluted weighted average number of shares outstanding 14,061,369 13,673,361 13,368,768 Net income (loss) from continuing operations $ 28,876 $ 21,870 $ (9,630 ) Net income from discontinued operations — 1,130 10,121 Net income 28,876 23,000 491 Net income (loss) attributable to non-controlling interest, net of tax (16 ) 184 1,652 Net income (loss) attributable to Oppenheimer Holdings Inc. $ 28,892 $ 22,816 $ (1,161 ) Basic net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 2.18 $ 1.65 $ (0.72 ) Discontinued operations (2) — 0.07 0.63 Net income (loss) per share $ 2.18 $ 1.72 $ (0.09 ) Diluted net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 2.05 $ 1.60 $ (0.72 ) Discontinued operations (2) — 0.07 0.63 Net income (loss) per share $ 2.05 $ 1.67 $ (0.09 ) (1) For the year ended December 31, 2018 , the diluted net income per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements ( 10,592 and 1,237,134 shares for the years ended December 31, 2017 and 2016 , respectively). (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. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Income taxes from continuing operations shown in the consolidated statements of operations are reconciled to amounts of tax that would have been payable (recoverable) from the application of the federal tax rate to pre-tax profit, as follows: (Expressed in thousands) For the Years Ended December 31, 2018 2017 2016 Amount Percentage Amount Percentage Amount Percentage U.S. federal statutory income tax rate $ 9,419 21.0 % $ 6,907 35.0 % $ (7,662 ) 35.0 % U.S. state and local income taxes, net of U.S. federal income tax benefits 3,144 7.0 % 1,430 7.2 % (1,075 ) 4.9 % Unrecognized tax benefit — — % (9 ) — % (603 ) 2.8 % Valuation allowance 1,833 4.1 % 89 0.5 % 1,208 -5.5 % Non-taxable income (637 ) -1.4 % (1,055 ) -5.3 % (1,267 ) 5.8 % Provision to return adjustments (326 ) -0.7 % (1,277 ) -6.5 % (4,167 ) 19.0 % Impact of the TCJA — — % (9,013 ) -45.7 % — — % Change in state and foreign tax rates 267 0.6 % (353 ) -1.8 % 264 -1.2 % Foreign tax rate differentials 112 0.2 % 974 4.9 % 143 -0.7 % Excess tax benefits from share-based awards (81 ) -0.2 % (493 ) -2.5 % — — % Other non-deductible expenses 2,246 5.0 % 666 3.4 % 897 -4.1 % Total income taxes $ 15,977 35.6 % $ (2,134 ) -10.8 % $ (12,262 ) 56.0 % Income taxes from continuing operations included in the consolidated statements of operations represent the following: (Expressed in thousands) For the Years Ended December 31, 2018 2017 2016 Current: U.S. federal tax (benefit) $ 10,355 $ 506 $ (15,433 ) State and local tax (benefit) 2,618 (1,326 ) (4,631 ) Non-U.S. operations 231 144 46 Total Current 13,204 (676 ) (20,018 ) Deferred: U.S. federal tax (benefit) 395 (1,215 ) 5,856 State and local tax 1,438 1,725 617 Non-U.S. operations 940 (1,968 ) 1,283 Total Deferred 2,773 (1,458 ) 7,756 Total $ 15,977 $ (2,134 ) $ (12,262 ) Loss before income taxes from continuing operations with respect to Non-U.S. operations was $4.0 million , $8.5 million and $965,000 for the years ended December 31, 2018 , 2017 and 2016 , respectively. The effective income tax rate from continuing operations for the year ended December 31, 2018 was 35.6% compared with 10.8% (benefit) for the year ended December 31, 2017 . The effective tax rate for the year ended December 31, 2018 benefited due to the Federal tax rate of 21% (versus 35% in prior years) as a result of the enactment of the TCJA in December 2017 offset by a detriment from the establishment of a valuation allowance for the deferred tax asset related to net operating losses of the Company's operations in Europe as well as 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. The effective income tax rate for the year ended December 31, 2017 was positively impacted by the estimated impact of the TCJA which resulted in a net discrete after-tax benefit of $9.0 million . The net discrete after-tax benefit was comprised of a benefit of $29.0 million related to the re-measurement of deferred tax liabilities offset by a detriment of $19.6 million related to the re-measurement of deferred tax assets as well as a detriment of $0.4 million related to miscellaneous nondeductible items. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when such differences are expected to reverse. Significant components of the Company's deferred tax assets and liabilities from continuing operations as of December 31, 2018 and 2017 were as follows: (Expressed in thousands) As of December 31, 2018 2017 Deferred tax assets: Deferred compensation $ 18,909 $ 19,105 Deferred rent and lease incentives 9,597 10,303 Net operating losses and credits 7,071 10,535 Receivable reserves 2,350 2,663 Accrued expenses 2,863 1,104 Auction rate securities reserves 1,007 540 Involuntary conversion 1,692 1,670 Depreciation 370 500 Other 1,067 1,177 Total deferred tax assets 44,926 47,597 Valuation allowance 3,204 1,350 Deferred tax assets after valuation allowance 41,722 46,247 Deferred tax liabilities: Goodwill 41,049 40,534 Partnership investments 8,227 9,184 Company-owned life insurance 6,277 7,426 Other 252 195 Total deferred tax liabilities 55,805 57,339 Deferred tax liabilities, net $ (14,083 ) $ (11,092 ) The Company has deferred tax assets at December 31, 2018 of $2.5 million arising from net operating losses incurred by Oppenheimer Israel (OPCO) Ltd. The Company believes that realization of the deferred tax assets is more likely than not based on expectations of future taxable income in Israel. These net operating losses carry forward indefinitely and are not subject to expiration, provided that these subsidiaries and their underlying businesses continue operating normally (as is anticipated). During the year ended December 31, 2018, the Company recorded a valuation allowance of $1.8 million against the deferred tax asset related to the net operating losses incurred by Oppenheimer Europe Ltd. Goodwill arising from the acquisitions of Josephthal Group Inc. and the Oppenheimer Divisions is being amortized for tax purposes on a straight-line basis over 15 years. The difference between book and tax is recorded as a deferred tax liability. As of December 31, 2017, the 15 year amortization period ended. The Company or one or more of its subsidiaries file income tax returns in the U.S. federal jurisdiction and in various states and foreign jurisdictions. The Company has closed tax years through 2014 in the U.S. federal jurisdiction. The Company is under examination in various states in which the Company has significant business operations. The Company has closed tax years through 2010 for New York State and is currently under exam for the 2011 to 2014 tax years. The Company also has closed tax years through 2008 with New York City and is currently under exam for the 2009 to 2012 tax years. With the exception of New York State and City, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2015. The Company has unrecognized tax benefits of $1.1 million , $1.1 million and $1.1 million as of December 31, 2018 , 2017 and 2016 , respectively, from continuing operations (as shown on the table below). Included in the balance of unrecognized tax benefits as of December 31, 2018 and 2017 are $853,000 and $853,000 of tax benefits for either year that, if recognized, would affect the effective tax rate. During the year ended December 31, 2018 , the Company did not record any changes in unrecognized tax benefit. The Company does not believe any unrecognized tax benefit will significantly increase or decrease within twelve months. A reconciliation of the beginning and ending amount of unrecognized tax benefit follows: (Expressed in thousands) 2018 2017 2016 Balance at beginning of year $ 1,079 $ 1,088 $ 2,490 Additions for tax positions of prior years — — 98 Lapse in statute of limitations — (9 ) (652 ) Settlements with taxing authorities — — (848 ) Balance at end of year $ 1,079 $ 1,079 $ 1,088 In its consolidated statements of operations, the Company records interest and penalties accruing on unrecognized tax benefits in income (loss) before income taxes as interest expense and other expense, respectively. For the year ended December 31, 2018 , the Company recorded tax-related interest expense of $113,000 in its consolidated statement of operations. For the year ended December 31, 2017 , the Company recorded tax-related interest expense of $231,000 in its consolidated statement of operations. As of December 31, 2018 and 2017 , the Company had an income tax-related interest payable of $345,000 and $232,000 , respectively, on its consolidated balance sheets. |
Employee Compensation Plans
Employee Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Compensation Plans | Employee compensation plans The Company maintains various employee compensation plans for the benefits of its employees. Two types of employee compensation are granted under share-based compensation and cash-based compensation plans. Share-based Compensation Oppenheimer Holdings Inc. 2014 Incentive Plan On February 26, 2014, the Company adopted the Oppenheimer Holdings Inc. 2014 Incentive Plan (the "OIP"). Pursuant to the OIP, the Compensation Committee of the Board of Directors of the Company (the "Committee") is permitted to grant options to purchase Class A Stock ("stock options"), Class A Stock awards and restricted Class A Stock (collectively "restricted stock awards") to or for the benefit of employees and non-employee directors of the Company and its subsidiaries as part of their compensation. Stock o ptions are generally granted for five -year term and generally vest at the rate of 25% of the amount granted on the second anniversary of the grant, 25% on the third anniversary of the grant, 25% on the fourth anniversary of the grant and 25% six months before expiration. Restricted stock awards are generally awarded for a three or five year term and fully vest at the end of the term. Oppenheimer Holdings Inc. Stock Appreciation Right Plan Under the Oppenheimer Holdings Inc. Stock Appreciation Right Plan, the Company awards stock appreciation rights ("OARs") to certain employees as part of their compensation package based on a formula reflecting gross production and length of service. These awards are granted once per year in January with respect to the prior year's production. The OARs vest five years from grant date and settle in cash at vesting. Restricted stock - The Company has granted restricted stock awards pursuant to the OIP. The following table summarizes the status of the Company's non-vested restricted Class A Stock awards under the OIP for the year ended December 31, 2018 : Number of Class A Shares Subject to Restricted Stock Awards Weighted Average Fair Value Remaining Contractual Life Nonvested at beginning of year 1,067,296 $ 16.34 2.2 Years Granted 333,959 25.96 3.0 Years Vested (39,465 ) 19.54 — Forfeited (72,566 ) 16.54 — Nonvested at end of year 1,289,224 $ 18.72 1.8 Years As of December 31, 2018 , all outstanding restricted Class A Stock awards were non-vested. The aggregate intrinsic value of restricted Class A Stock awards outstanding as of December 31, 2018 was $32.9 million . During the year ended December 31, 2018 , the Company included $6.0 million ( $5.6 million in 2017 and $5.2 million in 2016 ) of compensation expense in its consolidated statement of operations relating to restricted Class A Stock awards. As of December 31, 2018 , there was $11.2 million of total unrecognized compensation cost related to unvested restricted Class A Stock awards. The cost is expected to be recognized over a weighted average period of 1.8 years. As of December 31, 2018 , the number of shares of Class A Stock available under the share-based compensation plans, but not yet awarded, was 811,937 . On January 31, 2019, the Company awarded a total of 359,208 restricted shares of Class A Stock to current employees pursuant to the OIP. Of these restricted shares, 153,818 shares will cliff vest in three years and 205,390 shares will cliff vest in five years. These awards will be expensed over the applicable three or five year vesting period. Stock options - The Company has granted stock options pursuant to the OIP. There were 15,573 and 14,499 options outstanding as of December 31, 2018 and 2017 , respectively. In the year ended December 31, 2018 , the Company included $26,500 ( $25,700 in 2017 and $19,900 in 2016 ) of compensation expense in its consolidated statement of operations relating to the expensing of stock options. On January 31, 2019, the Company awarded a total of 3,578 options to purchase Class A Stock to current employees pursuant to the OIP. These options will be expensed over 4.5 years (the vesting period). OARs - The Company has awarded OARs pursuant to the Oppenheimer Holdings Inc. Stock Appreciation Right Plan. The following table summarizes the status of the Company's outstanding OARs awards as of December 31, 2018 : Grant Date Number of OARs Outstanding Strike Price Remaining Contractual Life Fair Value as of December 31, 2018 January 14, 2014 378,460 $ 23.48 13 Days $ 2.11 January 9, 2015 428,920 21.94 1 Year 4.87 January 6, 2016 425,900 15.89 2 Years 9.90 January 6, 2017 409,660 18.90 3 Years 8.32 January 5, 2018 482,720 27.05 4 Years 5.96 2,125,660 Total weighted average values $ 21.58 2.1 Years $ 6.30 The fair value as of December 31, 2018 for each of the OARs was estimated using the Black-Scholes model with the following assumptions: Grant Date January 14, 2014 January 9, 2015 January 6, 2016 January 6, 2017 January 5, 2018 Expected term (1) 13 Days 1 Year 2 Years 3 Years 4 Years Expected volatility factor (2) 28.2 % 27.6 % 26.7 % 29.0 % 33.0 % Risk-free interest rate (3) 1.2 % 2.6 % 2.5 % 2.5 % 2.5 % Actual dividends (4) $ 0.44 $ 0.44 $ 0.44 $ 0.44 $ 0.44 (1) The expected term was determined based on the remaining life of the actual awards. (2) The volatility factor was measured using the weighted average of historical daily price changes of the Company's Class A Stock over a historical period commensurate to the expected term of the awards. (3) The risk-free interest rate was based on periods equal to the expected term of the awards based on the U.S. Treasury yield curve in effect at December 31, 2018 . (4) Actual dividends were used to compute the expected annual dividend yield. As of December 31, 2018 , 2,125,660 of outstanding OARs were unvested and nil were vested. As of December 31, 2018 , the aggregate intrinsic value of OARs outstanding was $9.2 million . In the year ended December 31, 2018 , the Company included $650,000 ( $6.9 million in 2017 and $1.0 million in 2016 ) in compensation expense in its consolidated statement of operations relating to OARs awards. The liability related to the OARs was $6.9 million as of December 31, 2018 . As of December 31, 2018 , there was $6.5 million of total unrecognized compensation cost related to unvested OARs. The cost is expected to be recognized over a weighted average period of 2.1 years. On January 11, 2019, 560,156 OARs were awarded to Oppenheimer employees related to fiscal 2018 performance. These OARs will be expensed over 5 years (the vesting period). Cash-based Compensation Plan Defined Contribution Plan The Company, through its subsidiaries, maintains a defined contribution plan covering substantially all full-time U.S. employees. The Oppenheimer & Co. Inc. 401(k) Plan provides that Oppenheimer may make discretionary contributions. Eligible Oppenheimer employees could make voluntary contributions which could not exceed $18,500 , 18,000 and 18,000 per annum in 2018 , 2017 and 2016 , respectively. The Company made contributions to the 401(k) Plan of $1.8 million , $1.5 million and $1.3 million in 2018 , 2017 and 2016 , respectively. Deferred Compensation Plans The Company maintains an Executive Deferred Compensation Plan ("EDCP") and a Deferred Incentive Plan ("DIP") in order to offer certain qualified high-performing financial advisers a bonus based upon a formula reflecting years of service, production, net commissions and a valuation of their clients' assets. The bonus amounts resulted in deferrals in fiscal 2018 of $9.4 million ( $8.2 million in 2017 and $7.7 million in 2016 ). These deferrals normally vest after five years. The liability is being recognized on a straight-line basis over the vesting period. The EDCP also includes voluntary deferrals by senior executives that are not subject to vesting. The Company maintains a Company-owned life insurance policy, which is designed to offset approximately 60% of the EDCP liability. The EDCP liability is being tracked against the value of a benchmark investment portfolio held for this purpose. As of December 31, 2018 , the Company's liability with respect to the EDCP and DIP totaled $46.5 million and is included in accrued compensation on the consolidated balance sheet as of December 31, 2018 . In addition, the Company is maintaining a deferred compensation plan on behalf of certain employees who were formerly employed by CIBC World Markets. The liability is being tracked against the value of an investment portfolio held by the Company for this purpose and, therefore, the liability fluctuates with the fair value of the underlying portfolio. As of December 31, 2018 , the Company's liability with respect to this plan totaled $15.6 million . The total amount expensed in 2018 for the Company's deferred compensation plans was $6.1 million ( $17.1 million in 2017 and $11.8 million in 2016 ). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and contingencies Commitments The Company and its subsidiaries have operating leases for office space, equipment and furniture and fixtures expiring at various dates through 2034 . Future minimum rental commitments under such office and equipment leases as of December 31, 2018 are as follows: (Expressed in thousands) 2019 $ 39,684 2020 36,851 2021 32,858 2022 29,604 2023 27,356 2024 and thereafter 114,256 $ 280,609 The above table includes operating leases which have been signed by the Company's subsidiary, Viner Finance Inc., in which the Company is responsible for rent charges associated with its occupancy. Certain of the leases contain provisions for rent increases based on changes in costs incurred by the lessor. The Company's rent expense for the year ended December 31, 2018 was $44.7 million ( $45.6 million in 2017 and $44.4 million in 2016 ). As of December 31, 2018 , the Company had capital commitments of $1.4 million with respect to unfunded obligations in private equity funds sponsored by the Company. As of December 31, 2018 , the Company had no collateralized or uncollateralized letters of credit outstanding. 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 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 December 31, 2018 , the Company had no 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 December 31, 2018 , the Company purchased and holds (net of redemptions) approximately $40.7 million in ARS from its clients. In addition, the Company is committed to purchase another $7.3 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. 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 $7.5 million of ARS principal value as of December 31, 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 December 31, 2018 , there were no ARS purchase commitments related to legal settlements extending past 2020. 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. 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. On February 12, 2018, the SEC Division of Enforcement ("Enforcement Division") announced the Share Class Selection Disclosure Initiative ("SCSD Initiative") pursuant to which investment advisers were encouraged to self-report possible securities laws violations relating to the failure to make certain disclosures concerning mutual fund share class selection. On June 11, 2018, Oppenheimer and OAM notified the Enforcement Division that it intended to participate in the SCSD Initiative. Oppenheimer and OAM filed the information required by the SCSD Initiative on September 19, 2018. On February 7, 2019, Oppenheimer (and its affiliate Oppenheimer Asset Management, collectively “Oppenheimer”) filed an Offer of Settlement with the SEC (the “Offer”) pursuant to which Oppenheimer offered to disgorge approximately $3.5 million (the “Disgorgement Amount”) (including pre-judgment interest) of 12b-1 fees and agree to certain undertakings including the following: (i) within 30 days of the entry of an SEC Order, review and correct as necessary all relevant disclosure documents concerning mutual fund share class selection and 12b-1 fees; (ii) within 30 days of the entry of an SEC Order, evaluate whether existing clients should be moved to a lower-cost share class and move clients as necessary; (iii) within 30 days of the entry of an SEC Order, evaluate, update (if necessary), and review for the effectiveness of their implementation, Oppenheimer’s policies and procedures so that they are reasonably designed to prevent violations of the Investment Advisers Act in connection with disclosures regarding mutual fund share class selection; (iv) within 30 days of the entry of an SEC Order, notify affected investors (i.e., those former and current clients who, during the relevant period of inadequate disclosure, purchased or held 12b-1 fee paying share class mutual funds when a lower-cost share class of the same fund was available to the client) of the settlement terms of the Order in a clear and conspicuous fashion; and (v) within 40 days of the entry of an SEC Order, certify, in writing, compliance with the undertaking(s) set forth above. Oppenheimer is awaiting the entry of an SEC Order consistent with the above. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 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 December 31, 2018 , the net capital of Oppenheimer as calculated under the Rule was $194.5 million or 20.86% of Oppenheimer's aggregate debit items. This was $175.8 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 December 31, 2018 , Freedom had net capital of $5.3 million , which was $5.2 million in excess of the $100,000 required to be maintained at that date. As of December 31, 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 13.37% (required 4.5% ); • Tier 1 Capital ratio 13.37% (required 6.0% ); and • Total Capital ratio 13.65% (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 . As of December 31, 2018, Oppenheimer Europe Ltd. is in compliance with its regulatory requirements. As of December 31, 2018 , the regulatory capital of Oppenheimer Investments Asia Limited was $1.5 million , which was $1.1 million in excess of the $383,000 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. |
Goodwill and intangibles
Goodwill and intangibles | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangibles | Goodwill and intangibles Goodwill The Company's goodwill of $137.9 million resides in its PCD reporting unit. The Company performed its annual test for goodwill impairment as of December 31, 2018 and 2017 , which did not result in any impairment charges for either period. At each annual goodwill impairment testing date, the PCD reporting unit had a fair value that was substantially in excess of its carrying value. Intangible Assets Indefinite intangible assets are comprised of trademarks, trade names and an Internet domain name. These intangible assets carried at $32.1 million , which are not amortized, are subject to at least an annual test for impairment to determine if the estimated fair value is less than their carrying amount. Trademarks and trade names recorded as of December 31, 2018 and 2017 have been tested for impairment and it has been determined that no impairment has occurred. At each annual intangible assets impairment testing date, the trademarks and trade names had a fair value that was substantially in excess of its carrying value. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 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 Commercial Mortgage Banking segment was discontinued during the second quarter of 2016. See note 3 for further details. The table below presents information about the reported revenue and income (loss) before income taxes from continuing operations of the Company for the years ended December 31, 2018 , 2017 and 2016 . 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 Year Ended December 31, 2018 2017 2016 Revenue Private client (1) $ 617,871 $ 592,753 $ 504,192 Asset management (1) 71,696 89,896 92,852 Capital markets 272,719 231,632 254,933 Corporate/Other (4,132 ) 6,057 5,802 Total $ 958,154 $ 920,338 $ 857,779 Income (loss) before income taxes Private client (1) $ 149,097 $ 128,840 $ 66,072 Asset management (1) 18,590 26,685 31,412 Capital markets (13,416 ) (39,978 ) (17,713 ) Corporate/Other (109,418 ) (95,811 ) (101,663 ) Total $ 44,853 $ 19,736 $ (21,892 ) (1) Clients investing in the OAM advisory program are charged fees based on the value of AUM. Advisory fees were allocated 22.5% to the Asset Management and 77.5% to the Private Client segments. Starting January 1, 2017, the Company determined it was appropriate to change the allocation to 10.0% to the Asset Management and 90.0% to the Private Client segments due to changes in the mix of the business over time and costs associated with it. Revenue, classified by the major geographic areas in which it was earned for the years ended December 31, 2018 , 2017 and 2016 was as follows: (Expressed in thousands) Year Ended December 31, 2018 2017 2016 Americas $ 925,127 $ 880,602 $ 815,231 Europe/Middle East 29,292 36,364 39,048 Asia 3,735 3,372 3,500 Total $ 958,154 $ 920,338 $ 857,779 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events On February 1, 2019 , the Company announced a quarterly dividend in the amount of $0.11 per share, payable on February 28, 2019 to holders of Class A Stock and Class B Stock of record on February 15, 2019 . |
Quarterly Information
Quarterly Information | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (unaudited) | Quarterly information (unaudited) (Expressed in thousands, except per share amounts) Fiscal Quarters For the Year Ended December 31, 2018 Fourth Third Second First Year Revenue $ 243,254 $ 237,814 $ 242,556 $ 234,530 $ 958,154 Expenses 227,671 230,670 230,055 224,905 913,301 Income before income taxes from continuing operations 15,583 7,144 12,501 9,625 44,853 Income taxes 7,316 2,083 3,662 2,916 15,977 Net income from continuing operations 8,267 5,061 8,839 6,709 28,876 Net income from discontinued operations — — — — — Net income 8,267 5,061 8,839 6,709 28,876 Less net income (loss) attributable to non-controlling interest, net of tax 6 (10 ) (16 ) 4 (16 ) Net income attributable to Oppenheimer Holdings Inc. $ 8,261 $ 5,071 $ 8,855 $ 6,705 $ 28,892 Basic net income per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.62 $ 0.38 $ 0.67 $ 0.51 $ 2.18 Discontinued operations — — — — — Net income per share $ 0.62 $ 0.38 $ 0.67 $ 0.51 $ 2.18 Diluted net income per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.59 $ 0.36 $ 0.63 $ 0.48 $ 2.05 Discontinued operations — — — — — Net income per share $ 0.59 $ 0.36 $ 0.63 $ 0.48 $ 2.05 Dividends per share $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.44 Market price of Class A Stock (1) High $ 33.76 $ 34.15 $ 29.80 $ 29.00 $ 34.15 Low $ 23.52 $ 27.40 $ 24.60 $ 25.25 $ 23.52 (1) The price quotations above were obtained from the New York Stock Exchange website. (Expressed in thousands, except per share amounts) Fiscal Quarters For the Year Ended December 31, 2017 Fourth Third Second First Year Revenue $ 264,973 $ 226,220 $ 215,884 $ 213,261 $ 920,338 Expenses 248,403 214,392 217,521 220,286 900,602 Income (Loss) before income taxes from continuing operations 16,570 11,828 (1,637 ) (7,025 ) 19,736 Income taxes (4,598 ) 4,425 (274 ) (1,687 ) (2,134 ) Net income (loss) from continuing operations 21,168 7,403 (1,363 ) (5,338 ) 21,870 Net income (loss) from discontinued operations 29 461 53 587 1,130 Net income (loss) 21,197 7,864 (1,310 ) (4,751 ) 23,000 Less net income attributable to non-controlling interest, net of tax 4 75 9 96 184 Net income (loss) attributable to Oppenheimer Holdings Inc. $ 21,193 $ 7,789 $ (1,319 ) $ (4,847 ) $ 22,816 Basic net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 1.61 $ 0.56 $ (0.10 ) $ (0.40 ) $ 1.65 Discontinued operations — 0.03 — 0.04 0.07 Net income (loss) per share $ 1.61 $ 0.59 $ (0.10 ) $ (0.36 ) $ 1.72 Diluted net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 1.54 $ 0.54 $ (0.10 ) $ (0.40 ) $ 1.60 Discontinued operations — 0.03 — 0.04 0.07 Net income (loss) per share $ 1.54 $ 0.57 $ (0.10 ) $ (0.36 ) $ 1.67 Dividends per share $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.44 Market price of Class A Stock (1) High $ 29.00 $ 17.70 $ 18.25 $ 19.60 $ 29.00 Low $ 17.35 $ 15.40 $ 15.10 $ 15.90 $ 15.10 (1) The price quotations above were obtained from the New York Stock Exchange website. |
Supplemental Guarantor Consolid
Supplemental Guarantor Consolidated Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information 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 11 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 10. 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 DECEMBER 31, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 53,526 $ 3,826 $ 33,323 $ — $ 90,675 Deposits with clearing organizations — — 67,678 — 67,678 Receivable from brokers, dealers and clearing organizations — — 166,493 — 166,493 Receivable from customers, net of allowance for credit losses of $886 — — 720,777 — 720,777 Income tax receivable 45,733 23,491 (702 ) (67,508 ) 1,014 Securities purchased under agreements to resell — — 290 — 290 Securities owned, including amounts pledged of $517,951, at fair value — 1,358 836,226 — 837,584 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $25,109 and $6,800, respectively — — 44,058 — 44,058 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $89,182 — 20,722 8,266 — 28,988 Subordinated loan receivable — 112,558 — (112,558 ) — Intangible assets — 400 31,700 — 32,100 Goodwill — — 137,889 137,889 Other assets 135 2,581 110,052 — 112,768 Deferred tax assets 1 455 18,494 (18,950 ) — Investment in subsidiaries 661,837 546,704 — (1,208,541 ) — Intercompany receivables (14,211 ) 46,840 (6,299 ) (26,330 ) — Total assets $ 747,021 $ 758,935 $ 2,168,245 $ (1,433,887 ) $ 2,240,314 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 16,348 $ — $ 16,348 Bank call loans — — 15,000 — 15,000 Payable to brokers, dealers and clearing organizations — — 289,207 — 289,207 Payable to customers — — 336,616 — 336,616 Securities sold under agreements to repurchase — — 484,218 — 484,218 Securities sold but not yet purchased, at fair value — — 85,446 — 85,446 Accrued compensation — — 167,348 — 167,348 Accounts payable and other liabilities 163 31,653 55,823 (9 ) 87,630 Income tax payable 2,440 22,189 42,878 (67,507 ) — Senior secured notes, net of debt issuance cost of $904 199,096 — — — 199,096 Subordinated indebtedness — — 112,558 (112,558 ) — Deferred tax liabilities — — 33,029 (18,946 ) 14,083 Intercompany payables — 26,334 — (26,334 ) — Total liabilities 201,699 80,176 1,638,471 (225,354 ) 1,694,992 Stockholders' equity Stockholders' equity attributable to Oppenheimer Holdings Inc. 545,322 678,759 529,774 (1,208,533 ) 545,322 Total stockholders' equity 545,322 678,759 529,774 (1,208,533 ) 545,322 Total liabilities and stockholders' equity $ 747,021 $ 758,935 $ 2,168,245 $ (1,433,887 ) $ 2,240,314 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 YEAR ENDED DECEMBER 31, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES Commissions $ — $ — $ 329,668 $ — $ 329,668 Advisory fees — 1,938 316,829 (4,418 ) 314,349 Investment banking — — 115,353 — 115,353 Bank deposit sweep income — — 116,052 — 116,052 Interest 66 8,247 52,481 (8,310 ) 52,484 Principal transactions, net — — 14,515 (54 ) 14,461 Other — 443 15,782 (438 ) 15,787 Total revenue 66 10,628 960,680 (13,220 ) 958,154 EXPENSES Compensation and related expenses 1,548 — 605,644 — 607,192 Communications and technology 163 — 74,316 — 74,479 Occupancy and equipment costs — — 61,610 (439 ) 61,171 Clearing and exchange fees — — 22,985 — 22,985 Interest 13,500 — 41,205 (8,309 ) 46,396 Other 1,208 4,059 100,229 (4,418 ) 101,078 Total expenses 16,419 4,059 905,989 (13,166 ) 913,301 Income (loss) before income taxes (16,353 ) 6,569 54,691 — 44,853 Income taxes expenses (benefits) (4,371 ) 2,052 18,296 — 15,977 Net income (loss) from continuing operations (11,982 ) 4,517 36,395 — 28,876 Equity in earnings of subsidiaries 40,874 36,411 — (77,285 ) — Net income 28,892 40,928 36,395 (77,285 ) 28,876 Less net income attributable to non-controlling interest, net of tax — — (16 ) — (16 ) Net income attributable to Oppenheimer Holdings Inc. 28,892 40,928 36,411 (77,285 ) 28,892 Other comprehensive income — — (1,417 ) — (1,417 ) Total comprehensive income $ 28,892 $ 40,928 $ 34,994 $ (77,285 ) $ 27,475 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2017 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 336,620 $ — $ 336,620 Advisory fees — 1,752 323,114 (4,120 ) 320,746 Investment banking — — 81,215 (3,000 ) 78,215 Bank deposit sweep income — — 76,839 — 76,839 Interest — 9,589 48,548 (9,639 ) 48,498 Principal transactions, net — 17 23,256 — 23,273 Other 22 361 36,123 (359 ) 36,147 Total revenue 22 11,719 925,715 (17,118 ) 920,338 EXPENSES Compensation and related expenses 1,237 — 600,901 — 602,138 Communications and technology 160 — 71,818 — 71,978 Occupancy and equipment costs — — 61,523 (359 ) 61,164 Clearing and exchange fees — — 23,545 — 23,545 Interest 13,740 — 24,253 (9,639 ) 28,354 Other 4,969 1,382 114,192 (7,120 ) 113,423 Total expenses 20,106 1,382 896,232 (17,118 ) 900,602 Income (loss) before income taxes (20,084 ) 10,337 29,483 — 19,736 Income taxes expenses (benefits) (7,110 ) (12,655 ) 17,631 — (2,134 ) Net income (loss) from continuing operations (12,974 ) 22,992 11,852 — 21,870 Discontinued operations Income from discontinued operations — — 2,071 — 2,071 Income taxes — — 941 — 941 Net income from discontinued operations — — 1,130 — 1,130 Equity in earnings of subsidiaries 35,790 12,798 — (48,588 ) — Net income 22,816 35,790 12,982 (48,588 ) 23,000 Less net income attributable to non-controlling interest, net of tax — — 184 — 184 Net income attributable to Oppenheimer Holdings Inc. 22,816 35,790 12,798 (48,588 ) 22,816 Other comprehensive income — — 2,263 — 2,263 Total comprehensive income $ 22,816 $ 35,790 $ 15,061 $ (48,588 ) $ 25,079 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2016 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 377,317 $ — $ 377,317 Advisory fees — 1,571 271,763 (4,215 ) 269,119 Investment banking — — 81,011 — 81,011 Bank deposit sweep income — — 36,316 — 36,316 Interest — 10,242 47,804 (10,397 ) 47,649 Principal transactions, net — 16 20,465 — 20,481 Other — 326 25,885 (325 ) 25,886 Total revenue — 12,155 860,561 (14,937 ) 857,779 EXPENSES Compensation and related expenses 1,241 — 583,469 — 584,710 Communications and technology 124 — 70,266 — 70,390 Occupancy and equipment costs — — 61,116 (325 ) 60,791 Clearing and exchange fees — — 25,126 — 25,126 Interest 13,125 — 16,709 (10,397 ) 19,437 Other 1,887 1,284 120,261 (4,215 ) 119,217 Total expenses 16,377 1,284 876,947 (14,937 ) 879,671 Income (loss) before income taxes (16,377 ) 10,871 (16,386 ) — (21,892 ) Income taxes expenses (benefits) (8,296 ) 3,325 (7,291 ) — (12,262 ) Net income (loss) from continuing operations (8,081 ) 7,546 (9,095 ) — (9,630 ) Discontinued operations Income from discontinued operations — — 17,339 — 17,339 Income taxes — — 7,218 — 7,218 Net income from discontinued operations — — 10,121 — 10,121 Equity in earnings of subsidiaries 6,920 (626 ) — (6,294 ) — Net income (loss) (1,161 ) 6,920 1,026 (6,294 ) 491 Less net income attributable to non-controlling interest, net of tax — — 1,652 — 1,652 Net income (loss) attributable to Oppenheimer Holdings Inc. (1,161 ) 6,920 (626 ) (6,294 ) (1,161 ) Other comprehensive income — — 220 — 220 Total comprehensive income (loss) $ (1,161 ) $ 6,920 $ (406 ) $ (6,294 ) $ (941 ) OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ 60,270 $ 510 $ 107,790 $ 168,570 Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (8,672 ) — (8,672 ) Purchase of intangible assets — (400 ) — — (400 ) Proceeds from the settlement of Company-owned life insurance 881 881 Cash used in investing activities — (400 ) (7,791 ) — (8,191 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (5,833 ) — — — (5,833 ) Cash dividends paid to non-controlling interest — — (372 ) — (372 ) Issuance of Class A non-voting common stock 70 — — — 70 Repurchase of Class A non-voting common stock for cancellation (5,894 ) — — — (5,894 ) Payments of employee taxes withheld related to vested share-based awards (2,529 ) — — — (2,529 ) Decrease in bank call loans, net — — (103,300 ) — (103,300 ) Cash used in financing activities (14,186 ) — (103,672 ) — (117,858 ) Net increase (decrease) in cash and cash equivalents 46,084 110 (3,673 ) — 42,521 Cash and cash equivalents, beginning of the year 7,442 3,716 36,996 — 48,154 Cash and cash equivalents, end of the year $ 53,526 $ 3,826 $ 33,323 $ — $ 90,675 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2017 (Expressed in thousands) Parent Guarantor subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ (25,979 ) $ (6,568 ) $ 16,411 $ — $ (16,136 ) Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (5,611 ) — (5,611 ) Proceeds from the settlement of Company-owned life insurance — — 1,744 — 1,744 Cash used in investing activities — — (3,867 ) — (3,867 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (5,836 ) — — — (5,836 ) Cash dividends paid to non-controlling interest — — (2,448 ) — (2,448 ) Issuance of Class A non-voting common stock 26 — — — 26 Repurchase of Class A non-voting common stock for cancellation (7,464 ) — — — (7,464 ) Payments of employee taxes withheld related to vested share-based awards (2,237 ) — — — (2,237 ) Issuance of senior secured notes 200,000 — — — 200,000 Redemption of senior secured notes (150,000 ) — — — (150,000 ) Debt issuance costs (1,297 ) — — — (1,297 ) Decrease in bank call loans, net — — (27,500 ) — (27,500 ) Cash provided by (used in) financing activities 33,192 — (29,948 ) — 3,244 Net increase (decrease) in cash and cash equivalents 7,213 (6,568 ) (17,404 ) — (16,759 ) Cash and cash equivalents, beginning of the year 229 10,284 54,400 — 64,913 Cash and cash equivalents, end of the year $ 7,442 $ 3,716 $ 36,996 $ — $ 48,154 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2016 (Expressed in thousands) Parent Guarantor subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ 10,485 $ 7,698 $ (85,048 ) $ — $ (66,865 ) Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (5,731 ) — (5,731 ) Proceeds from sale of assets — — 45,448 — 45,448 Cash provided by investing activities — — 39,717 — 39,717 Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (5,887 ) — — — (5,887 ) Cash dividends paid to non-controlling interest — — (5,740 ) — (5,740 ) Repurchase of Class A non-voting common stock for cancellation (3,935 ) — — — (3,935 ) Payments of employee taxes withheld related to vested share-based awards (1,341 ) — — — (1,341 ) Increase in bank call loans, net — — 45,600 — 45,600 Cash provided by (used in) financing activities (11,163 ) — 39,860 — 28,697 Net increase (decrease) in cash and cash equivalents (678 ) 7,698 (5,471 ) — 1,549 Cash and cash equivalents, beginning of the year 907 2,586 59,871 — 63,364 Cash and cash equivalents, end of the year $ 229 $ 10,284 $ 54,400 $ — $ 64,913 |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 4. 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 consolidated financial statements for the year ended December 31, 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 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 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 year ended December 31, 2018 : (Expressed in thousands) For the Year Ended December 31, 2018 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 154,167 $ — $ 131,955 $ 89 $ 286,211 Mutual fund income 42,514 908 13 22 43,457 Advisory fees 243,474 70,775 67 33 314,349 Investment banking - capital markets 13,284 — 56,474 — 69,758 Investment banking - advisory — — 45,595 — 45,595 Bank deposit sweep income 116,052 — — — 116,052 Other 14,745 13 1,054 352 16,164 Total revenues from contracts with customers 584,236 71,696 235,158 496 891,586 Other sources of revenue: Interest 37,581 — 13,739 1,164 52,484 Principal transactions, net (1,125 ) — 23,378 (7,792 ) 14,461 Other (2,821 ) — 444 2,000 (377 ) Total other sources of revenue 33,635 — 37,561 (4,628 ) 66,568 Total revenue $ 617,871 $ 71,696 $ 272,719 $ (4,132 ) $ 958,154 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 $23.7 million and $21.0 million at December 31, 2018 and January 1, 2018, respectively. The Company had no significant impairments related to these receivables during the year ended December 31, 2018 . 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 consolidated balance sheet: (Expressed in thousands) Ending Balance at December 31, 2018 Opening Balance at January 1, 2018 Contract assets (receivables): Commission (1) $ 3,738 $ 2,007 Mutual fund income (2) 7,241 7,779 Advisory fees (3) 1,214 1,460 Bank deposit sweep income (4) 4,622 3,459 Investment banking fees (5) 3,996 3,926 Other 2,869 2,398 Total contract assets $ 23,680 $ 21,029 Deferred revenue (payables): Investment banking fees (6) $ 318 $ — Total deferred revenue $ 318 $ — (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. (6) Retainer fees and fees earned from certain advisory transactions where the performance obligations have not yet been satisfied. 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 December 31, 2018 , the contract costs were $1.6 million . There were no significant charges recognized in relation to these costs for year ended December 31, 2018 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. Intercompany transactions and balances have been eliminated in the preparation of the consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. In presenting the consolidated financial statements, management makes estimates regarding valuations of financial instruments, loans and allowances for credit losses, the outcome of legal and regulatory matters, goodwill and other intangible assets, share-based compensation plans and income taxes. Estimates, by their nature, are based on judgment and available information. Therefore, actual results could be materially different from these estimates. A discussion of certain critical accounting policies in which estimates are a significant component of the amounts reported on the consolidated financial statements follows. |
Financial Instruments and Fair Value | Financial Instruments and Fair Value Financial Instruments 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. Fair Value Measurements Accounting guidance for the fair value measurement of financial assets, which defines fair value, establishes a framework for measuring fair value, establishes a fair value measurement hierarchy, and expands fair value measurement disclosures. Fair value, as defined by the accounting guidance, is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy established by this accounting guidance prioritizes the inputs used in valuation techniques into the following three categories (highest to lowest priority): Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly; and Level 3: Unobservable inputs that are significant to the overall fair value measurement. The Company's financial instruments that are recorded at fair value generally are classified within Level 1 or Level 2 within the fair value hierarchy using quoted market prices or quotes from market makers or broker-dealers. Financial instruments classified within Level 1 are valued based on quoted market prices in active markets and consist of U.S. Treasury and Agency securities, corporate equities, and certain money market instruments. Level 2 financial instruments primarily consist of investment grade and high-yield corporate debt, convertible bonds, mortgage and asset-backed securities, and municipal obligations. Financial instruments classified as Level 2 are valued based on quoted prices for similar assets and liabilities in active markets and quoted prices for identical or similar assets and liabilities in markets that are not active. Some financial instruments are classified within Level 3 within the fair value hierarchy as observable pricing inputs are not available due to limited market activity for the asset or liability. Such financial instruments include certain distressed municipal securities, auction rate securities ("ARS") and investments in hedge funds and private equity funds where the Company, through its subsidiaries, is general partner. Fair Value Option The Company has the option to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company may make a fair value option election on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. |
Consolidation | Consolidation The Company consolidates all subsidiaries in which it has a controlling financial interest, as well as any variable interest entities ("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. The Company reviews factors, including the rights of the equity holders at risk and obligations of equity holders to absorb losses or receive expected residual returns, to determine if the entity is a VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly by the Company. Under Accounting Standards Update ("ASU") 2015-02, a general partner will not consolidate a partnership or similar entity under the voting interest model. See note 8 for further details. |
Financing Receivables | Financing Receivables The Company's financing receivables include customer margin loans, securities purchased under agreements to resell ("reverse repurchase agreements"), and securities borrowed transactions. The Company uses financing receivables to extend margin loans to customers, meet trade settlement requirements, and facilitate its matched-book arrangements and inventory requirements. |
Allowance for Credit Losses | The Company's financing receivables are secured by collateral received from clients and counterparties. In many cases, the Company is permitted to sell or re-pledge securities held as collateral. These securities may be used to collateralize repurchase agreements, to enter into securities lending agreements, to cover short positions or fulfill the obligation of securities fails to deliver. The Company monitors the market value of the collateral received on a daily basis and may require clients and counterparties to deposit additional collateral or return collateral pledged, when appropriate. Customer receivables, primarily consisting of customer margin loans collateralized by customer-owned securities, are stated net of allowance for credit losses. The Company reviews large customer accounts that do not comply with the Company's margin requirements on a case-by-case basis to determine the likelihood of collection and records an allowance for credit loss following that process. For small customer accounts that do not comply with the Company's margin requirements, the allowance for credit loss is generally recorded as the amount of unsecured or partially secured receivables. The Company also makes loans to financial advisers as part of its hiring process. These loans are recorded as notes receivable on its consolidated balance sheet. Allowances are established on these loans if the financial adviser is no longer associated with the Company and the loan has not been promptly repaid. |
Legal and Regulatory Reserves | Legal and Regulatory Reserves The Company records reserves related to legal and regulatory proceedings in accounts payable and other liabilities. The determination of the amounts of these reserves requires significant judgment on the part of management. In accordance with applicable accounting guidance, the Company establishes reserves for litigation and regulatory matters where available information indicates that it is probable a liability had been incurred and the Company can reasonably estimate the amount of that loss. When loss contingencies are not probable or cannot be reasonably estimated, the Company does not establish reserves. When determining whether to record a reserve, management considers many factors including, but not limited to, the amount of the claim; the stage and forum of the proceeding, the sophistication of the claimant, the amount of the loss, if any, in the client's account and the possibility of wrongdoing, if any, on the part of an employee of the Company; the basis and validity of the claim; previous results in similar cases; and applicable legal precedents and case law. Each legal and regulatory proceeding is reviewed with counsel in each accounting period and the reserve is adjusted as deemed appropriate by management. Any change in the reserve amount is recorded in the results of that period. The assumptions of management in determining the estimates of reserves may be incorrect and the actual disposition of a legal or regulatory proceeding could be greater or less than the reserve amount. |
Goodwill | Goodwill The Company defines a reporting unit as an operating segment. The Company's goodwill resides in its Private Client Division ("PCD") reporting unit. Goodwill of a reporting unit is subject to at least an annual test for impairment to determine if the estimated fair value of a reporting unit is less than its carrying amount. Goodwill of a reporting unit is required to be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Due to the volatility in the financial services sector and equity markets in general, determining whether an impairment of goodwill has occurred is increasingly difficult and requires management to exercise significant judgment. The Company's annual goodwill impairment analysis performed as of December 31, 2018 applied the same valuation methodologies with consistent inputs as that performed as of December 31, 2017 , as follows: In estimating the fair value of the PCD reporting unit, the Company uses traditional standard valuation methods, including the market comparable approach and income approach. The market comparable approach is based on comparisons of the subject company to public companies whose stocks are actively traded ("Price Multiples") or to similar companies engaged in an actual merger or acquisition ("Precedent Transactions"). As part of this process, multiples of value relative to financial variables, such as earnings or stockholders' equity, are developed and applied to the appropriate financial variables of the subject company to indicate its value. The income approach involves estimating the present value of the subject company's future cash flows by using projections of the cash flows that the business is expected to generate, and discounting these cash flows at a given rate of return ("Discounted Cash Flow" or "DCF"). Each of these standard valuation methodologies requires the use of management estimates and assumptions. In its Price Multiples valuation analysis, the Company uses various operating metrics of comparable companies, including revenues, after-tax earnings, and EBITDA as well as price-to-book value ratios at a point in time. The Company analyzes prices paid in Precedent Transactions that are comparable to the business conducted in the PCD. The DCF analysis includes the Company's assumptions regarding discount rate, growth rates of the PCD's revenues, expenses, EBITDA, and capital expenditures, adjusted for current economic conditions and expectations. The Company weighs each of the three valuation methods equally in its overall valuation. Given the subjectivity involved in selecting which valuation method to use, the corresponding weightings, and the input variables for use in the analyses, it is possible that a different valuation model and the selection of different input variables could produce a materially different estimate of the fair value of the PCD reporting unit. |
Intangible Assets | Intangible Assets Indefinite intangible assets are comprised of trademarks, trade names and an Internet domain name. These intangible assets carried at $32.1 million , which are not amortized, are subject to at least an annual test for impairment to determine if the estimated fair value is less than their carrying amount. The fair value of the trademarks and trade names was substantially in excess of its carrying value as of December 31, 2018 . |
Share-Based Compensation Plans | Share-Based Compensation Plans As part of the compensation to employees and directors, the Company uses stock-based compensation, consisting of restricted stock, stock options and stock appreciation rights. In accordance with ASC Topic 718, "Compensation - Stock Compensation," the Company classifies the stock options and restricted stock awards as equity awards, which requires the compensation cost to be recognized in the consolidated statement of operations over the requisite service period of the award at grant date fair value and adjust for actual forfeitures. The fair value of restricted stock awards is determined based on the grant date closing price of the Company's Class A non-voting common stock ("Class A Stock") adjusted for the present value of the dividend to be received upon vesting. The fair value of stock options is determined using the Black-Scholes model. Key assumptions used to estimate the fair value include the expected term and the expected volatility of the Company's Class A Stock over the term of the award, the risk-free interest rate over the expected term, and the Company's expected annual dividend yield. The Company classifies stock appreciation rights ("OARs") as liability awards, which requires the fair value to be remeasured at each reporting period until the award vests. The fair value of OARs is also determined using the Black-Scholes model at the end of each reporting period. The compensation cost is adjusted each reporting period for changes in fair value prorated for the portion of the requisite service period rendered. |
Revenue Recognition | Revenue Recognition Brokerage Customers' securities and commodities transactions are reported on a settlement date basis, which is generally two business days after trade date for securities transactions and one day for commodities transactions. Related commission income and expense is recorded on a trade date basis. Principal Transactions Transactions in proprietary securities and related revenue and expenses are recorded on a trade date basis. Securities owned and securities sold but not yet purchased are reported at fair value generally based upon quoted prices. Realized and unrealized changes in fair value are recognized in principal transactions, net in the period in which the change occurs. Investment Banking Fees Advisory fees from mergers, acquisitions and restructuring transactions are recorded when services for the transactions are completed and income is reasonably determinable, generally as set forth under the terms of the engagement. Retainer fees and engagement fees are recognized ratably over the service period. Underwriting fees are recorded when 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 the related expenses are presented gross on the consolidated statement of operations. Interest Interest revenue represents interest earned on margin debit balances, securities borrowed transactions, reverse repurchase agreements, fixed income securities, firm investments, and cash and cash equivalents. Interest revenue is recognized in the period earned based upon average or daily asset balances, contractual cash flows, and interest rates. Asset Management Asset management fees are generally recognized over the period the related service is provided based on the account value at the valuation date per the respective asset management agreements. In certain circumstances, OAM is entitled to receive performance (or incentive) fees when the return on assets under management ("AUM") exceeds certain benchmark returns or other performance targets. Performance fees are generally based on investment performance over a 12-month 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. Asset management fees and performance fees are included in advisory fees in the consolidated statement of operations. Assets under management are not included as assets of the Company. Bank Deposit Sweep Income Bank deposit sweep income consists of revenues earned from the Advantage 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. The Company earns the fee paid on these deposits after administrative fees are paid to the administrator of the program. The fee earned in the period is recorded in bank deposit sweep income and the portion of interest credited to clients is recorded in interest expense in the consolidated statement of operations. |
Balance Sheet | Balance Sheet Cash and Cash Equivalents The Company defines cash equivalents as highly liquid investments with original maturities of less than 90 days that are not held for sale in the ordinary course of business. Receivables from / Payables to Brokers, Dealers and Clearing Organizations Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced or received. Securities borrowed transactions require the Company to deposit cash or other collateral with the lender. The Company receives cash or collateral in an amount generally in excess of the market value of securities loaned. The Company monitors the market value of securities borrowed and loaned on a daily basis and may require counterparties to deposit additional collateral or return collateral pledged, when appropriate. Securities failed to deliver and receive represent the contract value of securities which have not been delivered or received, respectively, by settlement date. Securities Purchased under Agreements to Resell and Securities Sold under Agreements to Repurchase Reverse repurchase agreements and securities sold under agreements to repurchase ("repurchase agreements") are treated as collateralized financing transactions and are recorded at their contractual amounts plus accrued interest. The resulting interest income and expense for these arrangements are included in interest income and interest expense in the consolidated statement of operations. Additionally, the Company elected the fair value option for repurchase agreements and reverse repurchase agreements that do not settle overnight or have an open settlement date. The Company can present the reverse repurchase and repurchase transactions on a net-by-counterparty basis when the specific offsetting requirements are satisfied. Notes Receivable Notes receivable represent recruiting and retention payments generally in the form of upfront loans to financial advisers and key revenue producers as part of the Company's overall growth strategy. These notes generally amortize over a service period of 3 to 9 years from the initial date of the note or based on productivity levels of employees. All such notes are contingent on the employees' continued employment with the Company. The unforgiven portion of the notes becomes due on demand in the event the employee departs during the service period. Amortization of notes receivable is included in the consolidated statement of operations in compensation and related expenses. Furniture, Equipment and Leasehold Improvements Furniture, equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation of furniture, fixtures, and equipment is provided on a straight-line basis generally over 3 - 7 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the improvement or the remaining term of the lease. Leases with escalating rents are expensed on a straight-line basis over the life of the lease. Landlord incentives are recorded as deferred rent and amortized, as reductions to lease expense, on a straight-line basis over the life of the applicable lease. Deferred rent is included in accounts payable and other liabilities on the consolidated balance sheet. Drafts Payable Drafts payable represent amounts drawn by the Company against a bank. Bank Call Loans Bank call loans are generally payable on demand and bear interest at various rates, such loans were collateralized by firm and/or customer securities. Foreign Currency Translations Foreign currency balances have been translated into U.S. dollars as follows: monetary assets and liabilities at exchange rates prevailing at period end; revenue and expenses at average rates for the period; and non-monetary assets and stockholders' equity at historical rates. The functional currency of the overseas operations is the local currency in each location except for Oppenheimer Europe Ltd. and Oppenheimer Investments Asia Limited which have the U.S. dollar as their functional currency. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and the results of recent operations. The Company records uncertain tax positions in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 740, "Income Taxes" on the basis of a two-step process whereby it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company records interest and penalties accruing on unrecognized tax benefits in income before income taxes as interest expense and other expense, respectively, in its consolidated statement of operations. The Company permanently reinvests eligible earnings of its foreign subsidiaries and, accordingly, does not accrue any U.S. income taxes that would arise if such earnings were repatriated. |
New Accounting Pronouncements | 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 evaluated the impact of adopting this ASU which will have a significant impact on its consolidated financial statements. Since the Company has operating leases in over 100 locations, equipment leases and embedded leases, the Company expects to recognize a significant right-of use asset and lease liability on its consolidated balance sheet upon adoption of this ASU. As of December 31, 2018 , the Company estimates that it will record right-of-use assets between $170.0 million to $215.0 million and lease liabilities within the same range on the consolidated balance sheet upon the adoption of this standard, which predominately relates to real estate leases. 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 the Company's 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 the Company's 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 relationships 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 the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement - Disclosure Framework - Changes to the Disclosure Requirements for the Fair Value Measurement," which modifies the disclosure requirements related to fair value measurement. The ASU is effective for fiscal years and interim periods 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's disclosure. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following is a summary of revenue and expenses of OMHHF for the years ended December 31, 2018 , 2017 and 2016 : (Expressed in thousands) For the Years Ended December 31, 2018 2017 2016 REVENUE Interest $ — $ 8 $ 943 Principal transactions, net — — (9,022 ) Gain on sale of assets — — 16,475 Other (1) — 2,165 16,917 Total revenue — 2,173 25,313 EXPENSES Compensation and related expenses — 18 4,311 Communications and technology — 27 221 Occupancy and equipment costs — — 415 Interest — 12 408 Other — 45 2,619 Total expenses — 102 7,974 Income before income taxes $ — $ 2,071 $ 17,339 Income attributable to non-controlling interest before income taxes $ — $ 338 $ 2,830 (1) Other revenue for the year ended December 31, 2017 was primarily due to an earn-out from the sale of OMHHF's pipeline business in 2016. The following is a summary of cash flows of OMHHF for the years ended December 31, 2018 , 2017 and 2016 : (Expressed in thousands) For the Years Ended December 31, 2018 2017 2016 Cash provided by (used in) operating activities $ — $ 5,721 $ (14,097 ) Cash provided by investing activities — — 45,448 Cash used in financing activities (1) (2) (372 ) (20,035 ) (35,421 ) Net decrease in cash and cash equivalents $ (372 ) $ (14,314 ) $ (4,070 ) (1) Includes cash dividends paid to OMHHF's parent (E.A. Viner International Co.) and non-controlling interest of $ nil and $345,000 , respectively, for the year ended December 31, 2018 ( $12.6 million and $2.4 million , respectively, for the year ended December 31, 2017 ). (2) Includes $5.0 million paid to OMHHF's parent due to redemption of the parent's outstanding preferred stock for the year ended December 31, 2017. |
Receivable From and Payable t_2
Receivable From and Payable to Brokers, Dealers and Clearing Organizations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Brokers and Dealers [Abstract] | |
Receivable from and Payable to Brokers, Dealers and Clearing Organizations | (Expressed in thousands) As of December 31, 2018 2017 Receivable from brokers, dealers and clearing organizations consists of: Securities borrowed $ 108,144 $ 132,368 Receivable from brokers 20,140 19,298 Securities failed to deliver 7,021 9,442 Clearing organizations 28,777 24,361 Other 2,411 1,646 Total $ 166,493 $ 187,115 Payable to brokers, dealers and clearing organizations consists of: Securities loaned $ 146,815 $ 180,270 Payable to brokers 158 1,567 Securities failed to receive 27,799 17,559 Other 114,435 12,087 Total $ 289,207 $ 211,483 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
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 December 31, 2018 Product Principal Valuation Adjustment Fair Value Valuation Technique Unobservable Input Range Weighted Average Auction Rate Securities Owned (1) Auction Rate Preferred Securities $ 21,350 $ 1 $ 21,349 Discounted Cash Flow Discount Rate (2) 2.86% to 3.89% 3.88% — Duration 1 Year 1 Year Current Yield (3) 2.69% to 4.05% 4.03% Auction Rate Preferred Securities 18,950 2,697 16,253 Tender Offer (4) N/A N/A N/A Municipal Auction Rate Securities 75 — 75 Discounted Cash Flow Discount Rate (5) 4.35% 4.35% Duration 2 years 2 years Current Yield (3) 5.51% 5.51% Student Loan Auction Rate Securities 275 — 275 Discounted Cash Flow Discount Rate (6) 3.68% 3.68% Duration 4.0 Years 4.0 Years Current Yield (3) 3.64% 3.64% $ 40,650 $ 2,698 $ 37,952 Auction Rate Securities Commitments to Purchase (7) Auction Rate Preferred Securities 7,305 1,096 6,209 Tender Offer (4) N/A N/A N/A $ 7,305 $ 1,096 $ 6,209 Total $ 47,955 $ 3,794 $ 44,161 (1) Principal amount represents the par value of the ARS and is included in securities owned on the consolidated balance sheet as of December 31, 2018 . The valuation adjustment amount is included as a reduction to securities owned on the consolidated balance sheet as of December 31, 2018 . (2) Derived by applying a multiple to a spread between 110% to 150% to the U.S. Treasury rate of 2.60% . (3) Based on current yields for ARS positions owned. (4) Residual ARS amounts owned and ARS commitments to purchase that were subject to tender offers were priced at the tender offer price. Included in Level 2 of the fair value hierarchy. (5) Derived by applying the sum of the spread of 175% to the U.S. Treasury rate of 2.49% . (6) Derived by applying the sum of the spread of 1.20% to the U.S. Treasury rate of 2.48% . (7) 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 consolidated balance sheet as of December 31, 2018 . | |
Investments in Company-Sponsored Funds | The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2018 : (Expressed in thousands) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Hedge funds (1) $ 1,596 $ — Quarterly - Annually 30 - 120 Days Private equity funds (2) 4,908 1,399 N/A N/A $ 6,504 $ 1,399 (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 December 31, 2018 and 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 December 31, 2018 (Expressed in thousands) Fair Value Measurements as of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 10,500 $ — $ — $ 10,500 Deposits with clearing organizations 34,599 — — 34,599 Securities owned: U.S. Treasury securities 657,208 — — 657,208 U.S. Agency securities 812 6,494 — 7,306 Sovereign obligations — 214 — 214 Corporate debt and other obligations — 20,665 — 20,665 Mortgage and other asset-backed securities — 2,486 — 2,486 Municipal obligations — 52,261 — 52,261 Convertible bonds — 31,270 — 31,270 Corporate equities 28,215 — — 28,215 Money markets 7 — — 7 Auction rate securities — 16,253 21,699 37,952 Securities owned, at fair value 686,242 129,643 21,699 837,584 Investments (1) — — 101 101 Derivative contracts: TBAs — 4,873 — 4,873 Total $ 731,341 $ 134,516 $ 21,800 $ 887,657 Liabilities Securities sold but not yet purchased: U.S. Treasury securities $ 53,646 $ — $ — $ 53,646 U.S. Agency securities — 3 — 3 Sovereign obligations — 78 — 78 Corporate debt and other obligations — 7,236 — 7,236 Convertible bonds — 9,709 — 9,709 Corporate equities 14,774 — — 14,774 Securities sold but not yet purchased, at fair value 68,420 17,026 — 85,446 Derivative contracts: Futures 807 — — 807 Foreign exchange forward contracts 4 — — 4 TBAs — 4,873 — 4,873 ARS purchase commitments — 1,096 — 1,096 Derivative contracts, total 811 5,969 — 6,780 Total $ 69,231 $ 22,995 $ — $ 92,226 (1) Included in other assets on the 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 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 years ended December 31, 2018 and 2017 : (Expressed in thousands) Level 3 Assets and Liabilities For the Year Ended December 31, 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) (5) 87,398 1,351 6,300 (35,675 ) (37,675 ) 21,699 Investments 169 (8 ) — — (60 ) 101 Liabilities ARS purchase commitments (2) (5) 8 (1,088 ) — — 1,096 — (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 consolidated statement of operations, except for gains (losses) from investments which are included in other income in the consolidated statement of operations. (4) Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date. (5) Represents transfers from Level 3 to Level 2 of the fair value hierarchy. Transfers were due to tender offers by issuers of ARS. (Expressed in thousands) Level 3 Assets and Liabilities For the Year Ended December 31, 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 $ (9 ) $ — $ — $ — $ 35 Auction rate securities (1) 84,926 1,177 27,225 (1,475 ) (24,455 ) 87,398 Investments 158 11 — — — 169 ARS purchase commitments (2) 849 (849 ) — — — — Liabilities ARS purchase commitments (2) 645 637 — — — 8 (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 consolidated statement of operations, except for gains (losses) from investments which are included in other income in the 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 December 31, 2018 (Expressed in thousands) Fair Value Measurement: Assets Carrying Value Level 1 Level 2 Level 3 Total Cash $ 80,175 $ 80,175 $ — $ — $ 80,175 Deposits with clearing organization 33,079 33,079 — — 33,079 Receivable from brokers, dealers and clearing organizations: Securities borrowed 108,144 — 108,144 — 108,144 Receivables from brokers 20,140 — 20,140 — 20,140 Securities failed to deliver 7,021 — 7,021 — 7,021 Clearing organizations 28,777 — 28,777 — 28,777 Other 2,411 — 2,411 — 2,411 166,493 — 166,493 — 166,493 Receivable from customers 720,777 — 720,777 — 720,777 Securities purchased under agreements to resell 290 290 — 290 Notes receivable, net 44,058 44,058 — 44,058 Investments (1) 59,765 — 59,765 — 59,765 (1) Included in other assets on the consolidated balance sheet. (Expressed in thousands) Fair Value Measurement: Liabilities Carrying Value Level 1 Level 2 Level 3 Total Drafts payable $ 16,348 $ 16,348 $ — $ — $ 16,348 Bank call loans 15,000 — 15,000 — 15,000 Payables to brokers, dealers and clearing organizations: Securities loaned 146,815 — 146,815 — 146,815 Payable to brokers 158 — 158 — 158 Securities failed to receive 27,799 — 27,799 — 27,799 Other 113,628 — 113,628 — 113,628 288,400 — 288,400 — 288,400 Payables to customers 336,616 — 336,616 — 336,616 Securities sold under agreements to repurchase 484,218 — 484,218 — 484,218 Senior secured notes 200,000 — 199,722 — 199,722 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 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 F | |
Notional Amounts and Fair Values of Derivatives by Product | The notional amounts and fair values of the Company's derivatives as of December 31, 2018 and 2017 by product were as follows: (Expressed in thousands) Fair Value of Derivative Instruments as of December 31, 2018 Description Notional Fair Value Assets: Derivatives not designated as hedging instruments (1) Other contracts TBAs $ 729,500 $ 4,873 $ 729,500 $ 4,873 Liabilities: Derivatives not designated as hedging instruments (1) Commodity contracts Futures $ 4,580,800 $ 807 Other contracts Foreign exchange forward contracts 200 4 TBAs 729,500 4,873 ARS purchase commitments 7,305 1,096 $ 5,317,805 $ 6,780 (1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivate instruments are not subject to master netting agreements, thus the related amounts are not offset. (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. Such derivate instruments are not subject to master netting agreements, thus the related amounts are not offset. | |
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 consolidated statements of operations for the years ended December 31, 2018 and 2017 : (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Operations For the Year Ended December 31, 2018 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 592 Other contracts Foreign exchange forward contracts Other revenue (7 ) TBAs Principal transactions revenue 371 ARS purchase commitments Principal transactions revenue (1,088 ) $ (132 ) (Expressed in thousands) The Effect of Derivative Instruments in the Statement of Operations For the Year Ended December 31, 2017 Recognized in Income on Derivatives (pre-tax) Types Description Location Net Gain (Loss) Commodity contracts Futures Principal transactions revenue $ 987 Other contracts Foreign exchange forward contracts Other revenue 12 TBAs Principal transactions revenue (167 ) Other TBAs Other revenue (338 ) ARS purchase commitments Principal transactions revenue (212 ) $ 282 |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2018 : (Expressed in thousands) Overnight and Open Repurchase agreements: U.S. Government and Agency securities $ 566,357 Securities loaned: Equity securities 146,815 Gross amount of recognized liabilities for repurchase agreements and securities loaned $ 713,172 |
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 December 31, 2018 and 2017 : As of December 31, 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 $ 82,429 $ (82,139 ) $ 290 $ — $ — $ 290 Securities borrowed (1) 108,144 — 108,144 (105,960 ) — 2,184 Total $ 190,573 $ (82,139 ) $ 108,434 $ (105,960 ) $ — $ 2,474 (1) Included in receivable from brokers, dealers and clearing organizations on the 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 $ 566,357 $ (82,139 ) $ 484,218 $ (480,322 ) $ — $ 3,896 Securities loaned (2) 146,815 — 146,815 (139,232 ) — 7,583 Total $ 713,172 $ (82,139 ) $ 631,033 $ (619,554 ) $ — $ 11,479 (2) Included in payable to brokers, dealers and clearing organizations on the 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 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 consolidated balance sheet. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2018 and 2017 : (Expressed in thousands) As of December 31, 2018 Total VIE Assets (1) Carrying Value of the Capital Commitments Maximum Exposure to Loss in Non-consolidated VIEs Assets (2) Liabilities Hedge funds $ 291,200 $ 337 $ — $ — $ 337 Private equity funds 7,454 8 — — 8 Total $ 298,654 $ 345 $ — $ — $ 345 (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 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 consolidated balance sheet. |
Office Facilities (Tables)
Office Facilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Office Facilities | (Expressed in thousands) For the Years Ended December 31, 2018 2017 Furniture, fixtures and equipment $ 57,482 $ 53,260 Leasehold improvements 60,688 56,753 Total 118,170 110,013 Less accumulated depreciation (89,182 ) (82,826 ) Total $ 28,988 $ 27,187 |
Bank Call Loans (Tables)
Bank Call Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Bank Call Loans [Abstract] | |
Summary of Bank Call Loans | Bank call loans, primarily payable on demand, bear interest at various rates but not exceeding the broker call rate, which was 4.25% at December 31, 2018 ( 3.25% at December 31, 2017 ). Details of the bank call loans are as follows: (Expressed in thousands, except percentages) 2018 2017 Year-end balance $ 15,000 $ 118,300 Weighted interest rate (at end of year) 3.43 % 2.25 % Maximum balance (at any month-end) 161,800 230,400 Average amount outstanding (during the year) 53,271 123,918 Average interest rate (during the year) 2.66 % 2.08 % |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | (Expressed in thousands) Issued Maturity Date December 31, 2018 December 31, 2017 6.75% Senior Secured Notes 7/1/2022 $ 200,000 $ 200,000 Unamortized Debt Issuance Cost (904 ) (1,163 ) $ 199,096 $ 198,837 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 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 years indicated: 2018 2017 Class A Stock outstanding, beginning of year 13,139,203 13,261,095 Issued pursuant to share-based compensation plans (note 15) 38,728 328,458 Repurchased and canceled pursuant to the stock buy-back (236,122 ) (450,350 ) Class A Stock outstanding, end of year 12,941,809 13,139,203 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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 Year Ended December 31, 2018 2017 2016 Basic weighted average number of shares outstanding 13,248,876 13,246,423 13,368,768 Net dilutive effect of share-based awards, treasury method (1) 812,493 426,938 — Diluted weighted average number of shares outstanding 14,061,369 13,673,361 13,368,768 Net income (loss) from continuing operations $ 28,876 $ 21,870 $ (9,630 ) Net income from discontinued operations — 1,130 10,121 Net income 28,876 23,000 491 Net income (loss) attributable to non-controlling interest, net of tax (16 ) 184 1,652 Net income (loss) attributable to Oppenheimer Holdings Inc. $ 28,892 $ 22,816 $ (1,161 ) Basic net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 2.18 $ 1.65 $ (0.72 ) Discontinued operations (2) — 0.07 0.63 Net income (loss) per share $ 2.18 $ 1.72 $ (0.09 ) Diluted net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 2.05 $ 1.60 $ (0.72 ) Discontinued operations (2) — 0.07 0.63 Net income (loss) per share $ 2.05 $ 1.67 $ (0.09 ) (1) For the year ended December 31, 2018 , the diluted net income per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements ( 10,592 and 1,237,134 shares for the years ended December 31, 2017 and 2016 , respectively). |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Effective Income Tax Rate | ncome taxes from continuing operations shown in the consolidated statements of operations are reconciled to amounts of tax that would have been payable (recoverable) from the application of the federal tax rate to pre-tax profit, as follows: (Expressed in thousands) For the Years Ended December 31, 2018 2017 2016 Amount Percentage Amount Percentage Amount Percentage U.S. federal statutory income tax rate $ 9,419 21.0 % $ 6,907 35.0 % $ (7,662 ) 35.0 % U.S. state and local income taxes, net of U.S. federal income tax benefits 3,144 7.0 % 1,430 7.2 % (1,075 ) 4.9 % Unrecognized tax benefit — — % (9 ) — % (603 ) 2.8 % Valuation allowance 1,833 4.1 % 89 0.5 % 1,208 -5.5 % Non-taxable income (637 ) -1.4 % (1,055 ) -5.3 % (1,267 ) 5.8 % Provision to return adjustments (326 ) -0.7 % (1,277 ) -6.5 % (4,167 ) 19.0 % Impact of the TCJA — — % (9,013 ) -45.7 % — — % Change in state and foreign tax rates 267 0.6 % (353 ) -1.8 % 264 -1.2 % Foreign tax rate differentials 112 0.2 % 974 4.9 % 143 -0.7 % Excess tax benefits from share-based awards (81 ) -0.2 % (493 ) -2.5 % — — % Other non-deductible expenses 2,246 5.0 % 666 3.4 % 897 -4.1 % Total income taxes $ 15,977 35.6 % $ (2,134 ) -10.8 % $ (12,262 ) 56.0 % |
Schedule of Current and Deferred Income Tax (Benefit) | Income taxes from continuing operations included in the consolidated statements of operations represent the following: (Expressed in thousands) For the Years Ended December 31, 2018 2017 2016 Current: U.S. federal tax (benefit) $ 10,355 $ 506 $ (15,433 ) State and local tax (benefit) 2,618 (1,326 ) (4,631 ) Non-U.S. operations 231 144 46 Total Current 13,204 (676 ) (20,018 ) Deferred: U.S. federal tax (benefit) 395 (1,215 ) 5,856 State and local tax 1,438 1,725 617 Non-U.S. operations 940 (1,968 ) 1,283 Total Deferred 2,773 (1,458 ) 7,756 Total $ 15,977 $ (2,134 ) $ (12,262 ) |
Schedule of Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities from continuing operations as of December 31, 2018 and 2017 were as follows: (Expressed in thousands) As of December 31, 2018 2017 Deferred tax assets: Deferred compensation $ 18,909 $ 19,105 Deferred rent and lease incentives 9,597 10,303 Net operating losses and credits 7,071 10,535 Receivable reserves 2,350 2,663 Accrued expenses 2,863 1,104 Auction rate securities reserves 1,007 540 Involuntary conversion 1,692 1,670 Depreciation 370 500 Other 1,067 1,177 Total deferred tax assets 44,926 47,597 Valuation allowance 3,204 1,350 Deferred tax assets after valuation allowance 41,722 46,247 Deferred tax liabilities: Goodwill 41,049 40,534 Partnership investments 8,227 9,184 Company-owned life insurance 6,277 7,426 Other 252 195 Total deferred tax liabilities 55,805 57,339 Deferred tax liabilities, net $ (14,083 ) $ (11,092 ) |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefit follows: (Expressed in thousands) 2018 2017 2016 Balance at beginning of year $ 1,079 $ 1,088 $ 2,490 Additions for tax positions of prior years — — 98 Lapse in statute of limitations — (9 ) (652 ) Settlements with taxing authorities — — (848 ) Balance at end of year $ 1,079 $ 1,079 $ 1,088 |
Employee Compensation Plans (Ta
Employee Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summarizes of Company's Non-Vested ESP/EIP Awards | The following table summarizes the status of the Company's non-vested restricted Class A Stock awards under the OIP for the year ended December 31, 2018 : Number of Class A Shares Subject to Restricted Stock Awards Weighted Average Fair Value Remaining Contractual Life Nonvested at beginning of year 1,067,296 $ 16.34 2.2 Years Granted 333,959 25.96 3.0 Years Vested (39,465 ) 19.54 — Forfeited (72,566 ) 16.54 — Nonvested at end of year 1,289,224 $ 18.72 1.8 Years |
Schedule of Stock Option Activity | There were 15,573 and 14,499 options outstanding as of December 31, 2018 and 2017 , respectively. |
Stock Appreciation Rights | The following table summarizes the status of the Company's outstanding OARs awards as of December 31, 2018 : Grant Date Number of OARs Outstanding Strike Price Remaining Contractual Life Fair Value as of December 31, 2018 January 14, 2014 378,460 $ 23.48 13 Days $ 2.11 January 9, 2015 428,920 21.94 1 Year 4.87 January 6, 2016 425,900 15.89 2 Years 9.90 January 6, 2017 409,660 18.90 3 Years 8.32 January 5, 2018 482,720 27.05 4 Years 5.96 2,125,660 Total weighted average values $ 21.58 2.1 Years $ 6.30 |
Schedule of Assumptions Used | The fair value as of December 31, 2018 for each of the OARs was estimated using the Black-Scholes model with the following assumptions: Grant Date January 14, 2014 January 9, 2015 January 6, 2016 January 6, 2017 January 5, 2018 Expected term (1) 13 Days 1 Year 2 Years 3 Years 4 Years Expected volatility factor (2) 28.2 % 27.6 % 26.7 % 29.0 % 33.0 % Risk-free interest rate (3) 1.2 % 2.6 % 2.5 % 2.5 % 2.5 % Actual dividends (4) $ 0.44 $ 0.44 $ 0.44 $ 0.44 $ 0.44 (1) The expected term was determined based on the remaining life of the actual awards. (2) The volatility factor was measured using the weighted average of historical daily price changes of the Company's Class A Stock over a historical period commensurate to the expected term of the awards. (3) The risk-free interest rate was based on periods equal to the expected term of the awards based on the U.S. Treasury yield curve in effect at December 31, 2018 . (4) Actual dividends were used to compute the expected annual dividend yield. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Commitments under Office and Equipment Leases | Future minimum rental commitments under such office and equipment leases as of December 31, 2018 are as follows: (Expressed in thousands) 2019 $ 39,684 2020 36,851 2021 32,858 2022 29,604 2023 27,356 2024 and thereafter 114,256 $ 280,609 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2018 , 2017 and 2016 . 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 Year Ended December 31, 2018 2017 2016 Revenue Private client (1) $ 617,871 $ 592,753 $ 504,192 Asset management (1) 71,696 89,896 92,852 Capital markets 272,719 231,632 254,933 Corporate/Other (4,132 ) 6,057 5,802 Total $ 958,154 $ 920,338 $ 857,779 Income (loss) before income taxes Private client (1) $ 149,097 $ 128,840 $ 66,072 Asset management (1) 18,590 26,685 31,412 Capital markets (13,416 ) (39,978 ) (17,713 ) Corporate/Other (109,418 ) (95,811 ) (101,663 ) Total $ 44,853 $ 19,736 $ (21,892 ) (1) Clients investing in the OAM advisory program are charged fees based on the value of AUM. Advisory fees were allocated 22.5% to the Asset Management and 77.5% to the Private Client segments. Starting January 1, 2017, the Company determined it was appropriate to change the allocation to 10.0% to the Asset Management and 90.0% to the Private Client segments due to changes in the mix of the business over time and costs associated with it. |
Revenue Classified by Major Geographic Areas | Revenue, classified by the major geographic areas in which it was earned for the years ended December 31, 2018 , 2017 and 2016 was as follows: (Expressed in thousands) Year Ended December 31, 2018 2017 2016 Americas $ 925,127 $ 880,602 $ 815,231 Europe/Middle East 29,292 36,364 39,048 Asia 3,735 3,372 3,500 Total $ 958,154 $ 920,338 $ 857,779 |
Quarterly Information (Tables)
Quarterly Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Information | (Expressed in thousands, except per share amounts) Fiscal Quarters For the Year Ended December 31, 2018 Fourth Third Second First Year Revenue $ 243,254 $ 237,814 $ 242,556 $ 234,530 $ 958,154 Expenses 227,671 230,670 230,055 224,905 913,301 Income before income taxes from continuing operations 15,583 7,144 12,501 9,625 44,853 Income taxes 7,316 2,083 3,662 2,916 15,977 Net income from continuing operations 8,267 5,061 8,839 6,709 28,876 Net income from discontinued operations — — — — — Net income 8,267 5,061 8,839 6,709 28,876 Less net income (loss) attributable to non-controlling interest, net of tax 6 (10 ) (16 ) 4 (16 ) Net income attributable to Oppenheimer Holdings Inc. $ 8,261 $ 5,071 $ 8,855 $ 6,705 $ 28,892 Basic net income per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.62 $ 0.38 $ 0.67 $ 0.51 $ 2.18 Discontinued operations — — — — — Net income per share $ 0.62 $ 0.38 $ 0.67 $ 0.51 $ 2.18 Diluted net income per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 0.59 $ 0.36 $ 0.63 $ 0.48 $ 2.05 Discontinued operations — — — — — Net income per share $ 0.59 $ 0.36 $ 0.63 $ 0.48 $ 2.05 Dividends per share $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.44 Market price of Class A Stock (1) High $ 33.76 $ 34.15 $ 29.80 $ 29.00 $ 34.15 Low $ 23.52 $ 27.40 $ 24.60 $ 25.25 $ 23.52 (1) The price quotations above were obtained from the New York Stock Exchange website. (Expressed in thousands, except per share amounts) Fiscal Quarters For the Year Ended December 31, 2017 Fourth Third Second First Year Revenue $ 264,973 $ 226,220 $ 215,884 $ 213,261 $ 920,338 Expenses 248,403 214,392 217,521 220,286 900,602 Income (Loss) before income taxes from continuing operations 16,570 11,828 (1,637 ) (7,025 ) 19,736 Income taxes (4,598 ) 4,425 (274 ) (1,687 ) (2,134 ) Net income (loss) from continuing operations 21,168 7,403 (1,363 ) (5,338 ) 21,870 Net income (loss) from discontinued operations 29 461 53 587 1,130 Net income (loss) 21,197 7,864 (1,310 ) (4,751 ) 23,000 Less net income attributable to non-controlling interest, net of tax 4 75 9 96 184 Net income (loss) attributable to Oppenheimer Holdings Inc. $ 21,193 $ 7,789 $ (1,319 ) $ (4,847 ) $ 22,816 Basic net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 1.61 $ 0.56 $ (0.10 ) $ (0.40 ) $ 1.65 Discontinued operations — 0.03 — 0.04 0.07 Net income (loss) per share $ 1.61 $ 0.59 $ (0.10 ) $ (0.36 ) $ 1.72 Diluted net income (loss) per share attributable to Oppenheimer Holdings Inc. Continuing operations $ 1.54 $ 0.54 $ (0.10 ) $ (0.40 ) $ 1.60 Discontinued operations — 0.03 — 0.04 0.07 Net income (loss) per share $ 1.54 $ 0.57 $ (0.10 ) $ (0.36 ) $ 1.67 Dividends per share $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.44 Market price of Class A Stock (1) High $ 29.00 $ 17.70 $ 18.25 $ 19.60 $ 29.00 Low $ 17.35 $ 15.40 $ 15.10 $ 15.90 $ 15.10 (1) The price quotations above were obtained from the New York Stock Exchange website. |
Supplemental Guarantor Consol_2
Supplemental Guarantor Consolidated Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 53,526 $ 3,826 $ 33,323 $ — $ 90,675 Deposits with clearing organizations — — 67,678 — 67,678 Receivable from brokers, dealers and clearing organizations — — 166,493 — 166,493 Receivable from customers, net of allowance for credit losses of $886 — — 720,777 — 720,777 Income tax receivable 45,733 23,491 (702 ) (67,508 ) 1,014 Securities purchased under agreements to resell — — 290 — 290 Securities owned, including amounts pledged of $517,951, at fair value — 1,358 836,226 — 837,584 Notes receivable, net of accumulated amortization and allowance for uncollectibles of $25,109 and $6,800, respectively — — 44,058 — 44,058 Furniture, equipment and leasehold improvements, net of accumulated depreciation of $89,182 — 20,722 8,266 — 28,988 Subordinated loan receivable — 112,558 — (112,558 ) — Intangible assets — 400 31,700 — 32,100 Goodwill — — 137,889 137,889 Other assets 135 2,581 110,052 — 112,768 Deferred tax assets 1 455 18,494 (18,950 ) — Investment in subsidiaries 661,837 546,704 — (1,208,541 ) — Intercompany receivables (14,211 ) 46,840 (6,299 ) (26,330 ) — Total assets $ 747,021 $ 758,935 $ 2,168,245 $ (1,433,887 ) $ 2,240,314 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Drafts payable $ — $ — $ 16,348 $ — $ 16,348 Bank call loans — — 15,000 — 15,000 Payable to brokers, dealers and clearing organizations — — 289,207 — 289,207 Payable to customers — — 336,616 — 336,616 Securities sold under agreements to repurchase — — 484,218 — 484,218 Securities sold but not yet purchased, at fair value — — 85,446 — 85,446 Accrued compensation — — 167,348 — 167,348 Accounts payable and other liabilities 163 31,653 55,823 (9 ) 87,630 Income tax payable 2,440 22,189 42,878 (67,507 ) — Senior secured notes, net of debt issuance cost of $904 199,096 — — — 199,096 Subordinated indebtedness — — 112,558 (112,558 ) — Deferred tax liabilities — — 33,029 (18,946 ) 14,083 Intercompany payables — 26,334 — (26,334 ) — Total liabilities 201,699 80,176 1,638,471 (225,354 ) 1,694,992 Stockholders' equity Stockholders' equity attributable to Oppenheimer Holdings Inc. 545,322 678,759 529,774 (1,208,533 ) 545,322 Total stockholders' equity 545,322 678,759 529,774 (1,208,533 ) 545,322 Total liabilities and stockholders' equity $ 747,021 $ 758,935 $ 2,168,245 $ (1,433,887 ) $ 2,240,314 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 Operations | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated REVENUES Commissions $ — $ — $ 329,668 $ — $ 329,668 Advisory fees — 1,938 316,829 (4,418 ) 314,349 Investment banking — — 115,353 — 115,353 Bank deposit sweep income — — 116,052 — 116,052 Interest 66 8,247 52,481 (8,310 ) 52,484 Principal transactions, net — — 14,515 (54 ) 14,461 Other — 443 15,782 (438 ) 15,787 Total revenue 66 10,628 960,680 (13,220 ) 958,154 EXPENSES Compensation and related expenses 1,548 — 605,644 — 607,192 Communications and technology 163 — 74,316 — 74,479 Occupancy and equipment costs — — 61,610 (439 ) 61,171 Clearing and exchange fees — — 22,985 — 22,985 Interest 13,500 — 41,205 (8,309 ) 46,396 Other 1,208 4,059 100,229 (4,418 ) 101,078 Total expenses 16,419 4,059 905,989 (13,166 ) 913,301 Income (loss) before income taxes (16,353 ) 6,569 54,691 — 44,853 Income taxes expenses (benefits) (4,371 ) 2,052 18,296 — 15,977 Net income (loss) from continuing operations (11,982 ) 4,517 36,395 — 28,876 Equity in earnings of subsidiaries 40,874 36,411 — (77,285 ) — Net income 28,892 40,928 36,395 (77,285 ) 28,876 Less net income attributable to non-controlling interest, net of tax — — (16 ) — (16 ) Net income attributable to Oppenheimer Holdings Inc. 28,892 40,928 36,411 (77,285 ) 28,892 Other comprehensive income — — (1,417 ) — (1,417 ) Total comprehensive income $ 28,892 $ 40,928 $ 34,994 $ (77,285 ) $ 27,475 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2017 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 336,620 $ — $ 336,620 Advisory fees — 1,752 323,114 (4,120 ) 320,746 Investment banking — — 81,215 (3,000 ) 78,215 Bank deposit sweep income — — 76,839 — 76,839 Interest — 9,589 48,548 (9,639 ) 48,498 Principal transactions, net — 17 23,256 — 23,273 Other 22 361 36,123 (359 ) 36,147 Total revenue 22 11,719 925,715 (17,118 ) 920,338 EXPENSES Compensation and related expenses 1,237 — 600,901 — 602,138 Communications and technology 160 — 71,818 — 71,978 Occupancy and equipment costs — — 61,523 (359 ) 61,164 Clearing and exchange fees — — 23,545 — 23,545 Interest 13,740 — 24,253 (9,639 ) 28,354 Other 4,969 1,382 114,192 (7,120 ) 113,423 Total expenses 20,106 1,382 896,232 (17,118 ) 900,602 Income (loss) before income taxes (20,084 ) 10,337 29,483 — 19,736 Income taxes expenses (benefits) (7,110 ) (12,655 ) 17,631 — (2,134 ) Net income (loss) from continuing operations (12,974 ) 22,992 11,852 — 21,870 Discontinued operations Income from discontinued operations — — 2,071 — 2,071 Income taxes — — 941 — 941 Net income from discontinued operations — — 1,130 — 1,130 Equity in earnings of subsidiaries 35,790 12,798 — (48,588 ) — Net income 22,816 35,790 12,982 (48,588 ) 23,000 Less net income attributable to non-controlling interest, net of tax — — 184 — 184 Net income attributable to Oppenheimer Holdings Inc. 22,816 35,790 12,798 (48,588 ) 22,816 Other comprehensive income — — 2,263 — 2,263 Total comprehensive income $ 22,816 $ 35,790 $ 15,061 $ (48,588 ) $ 25,079 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2016 (Expressed in thousands) Parent Guarantor Non-guarantor Eliminations Consolidated REVENUES Commissions $ — $ — $ 377,317 $ — $ 377,317 Advisory fees — 1,571 271,763 (4,215 ) 269,119 Investment banking — — 81,011 — 81,011 Bank deposit sweep income — — 36,316 — 36,316 Interest — 10,242 47,804 (10,397 ) 47,649 Principal transactions, net — 16 20,465 — 20,481 Other — 326 25,885 (325 ) 25,886 Total revenue — 12,155 860,561 (14,937 ) 857,779 EXPENSES Compensation and related expenses 1,241 — 583,469 — 584,710 Communications and technology 124 — 70,266 — 70,390 Occupancy and equipment costs — — 61,116 (325 ) 60,791 Clearing and exchange fees — — 25,126 — 25,126 Interest 13,125 — 16,709 (10,397 ) 19,437 Other 1,887 1,284 120,261 (4,215 ) 119,217 Total expenses 16,377 1,284 876,947 (14,937 ) 879,671 Income (loss) before income taxes (16,377 ) 10,871 (16,386 ) — (21,892 ) Income taxes expenses (benefits) (8,296 ) 3,325 (7,291 ) — (12,262 ) Net income (loss) from continuing operations (8,081 ) 7,546 (9,095 ) — (9,630 ) Discontinued operations Income from discontinued operations — — 17,339 — 17,339 Income taxes — — 7,218 — 7,218 Net income from discontinued operations — — 10,121 — 10,121 Equity in earnings of subsidiaries 6,920 (626 ) — (6,294 ) — Net income (loss) (1,161 ) 6,920 1,026 (6,294 ) 491 Less net income attributable to non-controlling interest, net of tax — — 1,652 — 1,652 Net income (loss) attributable to Oppenheimer Holdings Inc. (1,161 ) 6,920 (626 ) (6,294 ) (1,161 ) Other comprehensive income — — 220 — 220 Total comprehensive income (loss) $ (1,161 ) $ 6,920 $ (406 ) $ (6,294 ) $ (941 ) |
Condensed Consolidating Statement of Cash Flows | OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2018 (Expressed in thousands) Parent Guarantor subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ 60,270 $ 510 $ 107,790 $ 168,570 Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (8,672 ) — (8,672 ) Purchase of intangible assets — (400 ) — — (400 ) Proceeds from the settlement of Company-owned life insurance 881 881 Cash used in investing activities — (400 ) (7,791 ) — (8,191 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (5,833 ) — — — (5,833 ) Cash dividends paid to non-controlling interest — — (372 ) — (372 ) Issuance of Class A non-voting common stock 70 — — — 70 Repurchase of Class A non-voting common stock for cancellation (5,894 ) — — — (5,894 ) Payments of employee taxes withheld related to vested share-based awards (2,529 ) — — — (2,529 ) Decrease in bank call loans, net — — (103,300 ) — (103,300 ) Cash used in financing activities (14,186 ) — (103,672 ) — (117,858 ) Net increase (decrease) in cash and cash equivalents 46,084 110 (3,673 ) — 42,521 Cash and cash equivalents, beginning of the year 7,442 3,716 36,996 — 48,154 Cash and cash equivalents, end of the year $ 53,526 $ 3,826 $ 33,323 $ — $ 90,675 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2017 (Expressed in thousands) Parent Guarantor subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ (25,979 ) $ (6,568 ) $ 16,411 $ — $ (16,136 ) Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (5,611 ) — (5,611 ) Proceeds from the settlement of Company-owned life insurance — — 1,744 — 1,744 Cash used in investing activities — — (3,867 ) — (3,867 ) Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (5,836 ) — — — (5,836 ) Cash dividends paid to non-controlling interest — — (2,448 ) — (2,448 ) Issuance of Class A non-voting common stock 26 — — — 26 Repurchase of Class A non-voting common stock for cancellation (7,464 ) — — — (7,464 ) Payments of employee taxes withheld related to vested share-based awards (2,237 ) — — — (2,237 ) Issuance of senior secured notes 200,000 — — — 200,000 Redemption of senior secured notes (150,000 ) — — — (150,000 ) Debt issuance costs (1,297 ) — — — (1,297 ) Decrease in bank call loans, net — — (27,500 ) — (27,500 ) Cash provided by (used in) financing activities 33,192 — (29,948 ) — 3,244 Net increase (decrease) in cash and cash equivalents 7,213 (6,568 ) (17,404 ) — (16,759 ) Cash and cash equivalents, beginning of the year 229 10,284 54,400 — 64,913 Cash and cash equivalents, end of the year $ 7,442 $ 3,716 $ 36,996 $ — $ 48,154 OPPENHEIMER HOLDINGS INC. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2016 (Expressed in thousands) Parent Guarantor subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Cash provided by (used in) operating activities $ 10,485 $ 7,698 $ (85,048 ) $ — $ (66,865 ) Cash flows from investing activities: Purchase of furniture, equipment and leasehold improvements — — (5,731 ) — (5,731 ) Proceeds from sale of assets — — 45,448 — 45,448 Cash provided by investing activities — — 39,717 — 39,717 Cash flows from financing activities: Cash dividends paid on Class A non-voting and Class B voting common stock (5,887 ) — — — (5,887 ) Cash dividends paid to non-controlling interest — — (5,740 ) — (5,740 ) Repurchase of Class A non-voting common stock for cancellation (3,935 ) — — — (3,935 ) Payments of employee taxes withheld related to vested share-based awards (1,341 ) — — — (1,341 ) Increase in bank call loans, net — — 45,600 — 45,600 Cash provided by (used in) financing activities (11,163 ) — 39,860 — 28,697 Net increase (decrease) in cash and cash equivalents (678 ) 7,698 (5,471 ) — 1,549 Cash and cash equivalents, beginning of the year 907 2,586 59,871 — 63,364 Cash and cash equivalents, end of the year $ 229 $ 10,284 $ 54,400 $ — $ 64,913 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | 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 year ended December 31, 2018 : (Expressed in thousands) For the Year Ended December 31, 2018 Reportable Segments Private Client Asset Management Capital Markets Corporate/Other Total Revenues from contracts with customers: Commissions from sales and trading $ 154,167 $ — $ 131,955 $ 89 $ 286,211 Mutual fund income 42,514 908 13 22 43,457 Advisory fees 243,474 70,775 67 33 314,349 Investment banking - capital markets 13,284 — 56,474 — 69,758 Investment banking - advisory — — 45,595 — 45,595 Bank deposit sweep income 116,052 — — — 116,052 Other 14,745 13 1,054 352 16,164 Total revenues from contracts with customers 584,236 71,696 235,158 496 891,586 Other sources of revenue: Interest 37,581 — 13,739 1,164 52,484 Principal transactions, net (1,125 ) — 23,378 (7,792 ) 14,461 Other (2,821 ) — 444 2,000 (377 ) Total other sources of revenue 33,635 — 37,561 (4,628 ) 66,568 Total revenue $ 617,871 $ 71,696 $ 272,719 $ (4,132 ) $ 958,154 |
Contract with Customer, Asset and Liability [Table Text Block] | 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 $23.7 million and $21.0 million at December 31, 2018 and January 1, 2018, respectively. The Company had no significant impairments related to these receivables during the year ended December 31, 2018 . 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 consolidated balance sheet: (Expressed in thousands) Ending Balance at December 31, 2018 Opening Balance at January 1, 2018 Contract assets (receivables): Commission (1) $ 3,738 $ 2,007 Mutual fund income (2) 7,241 7,779 Advisory fees (3) 1,214 1,460 Bank deposit sweep income (4) 4,622 3,459 Investment banking fees (5) 3,996 3,926 Other 2,869 2,398 Total contract assets $ 23,680 $ 21,029 Deferred revenue (payables): Investment banking fees (6) $ 318 $ — Total deferred revenue $ 318 $ — (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. (6) Retainer fees and fees earned from certain advisory transactions where the performance obligations have not yet been satisfied. |
Organization - Additional Infor
Organization - Additional Information (Narrative) (Details) | Dec. 31, 2018office |
Americas | |
Organization And Basis Of Presentation [Line Items] | |
Number of offices providing services | 92 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Non-controlling interest | $ 0 | $ 361 |
Cash equivalents maximum maturity period of highly liquid investments | 90 days | |
Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of business days for related transactions | 1 day | |
Loan forgiven over service period | 3 years | |
Minimum [Member] | Furniture and Fixtures [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Depreciation and amortization on straight-line basis | 3 years | |
Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of business days for related transactions | 2 days | |
Loan forgiven over service period | 9 years | |
Maximum [Member] | Furniture and Fixtures [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Depreciation and amortization on straight-line basis | 7 years | |
Securities | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of business days for related transactions | 2 days | |
Commodities | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of business days for related transactions | 1 day |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 0 | $ 0 | $ 45,448 |
Dividends paid to non-controlling interest | 372 | 2,448 | $ 5,740 |
Oppenheimer Multi Family Housing And Healthcare Finance [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Dividends paid to non-controlling interest | 300 | 2,400 | |
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries | $ 0 | 12,600 | |
Payments for Repurchase of Preferred Stock and Preference Stock | $ 5,000 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations Assets and Liabilities Table (Details) - Oppenheimer Multi Family Housing And Healthcare Finance [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disposal Group, Including Discontinued Operation, Interest Income | $ 0 | $ 8 | $ 943 |
Disposal Group, Including Discontinued Operation, Principal Transactions | 0 | 0 | (9,022) |
Disposal Group, including discontinued operations, Gain on Sale of Assets | 0 | 0 | 16,475 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | 2,165 | 16,917 |
Disposal Group, Including Discontinued Operation, Revenue | 0 | 2,173 | 25,313 |
Disposal Group, Including Discontinued Operation, Compensation and Related Expenses | 0 | 18 | 4,311 |
Disposal Group, Including Discontinued Operation, Communications and Technology | 0 | 27 | 221 |
Disposal Group, Including Discontinued Operation, Occupancy and Equipment | 0 | 0 | 415 |
Disposal Group, Including Discontinued Operation, Interest Expense | 0 | 12 | 408 |
Disposal Group, Including Discontinued Operation, Other Expense | 0 | 45 | 2,619 |
Disposal Group, Including Discontinued Operation, Operating Expense | 0 | 102 | 7,974 |
Disposal Group, Including Discontinued Operation, Gross Profit (Loss) | 0 | 2,071 | 17,339 |
Income (Loss) from Discontinued Operations, before tax, Attributable to Noncontrolling Interest | 0 | 338 | 2,830 |
Disposal Group, Including Discontinued Operation, Communications and Technology | 0 | 5,721 | (14,097) |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 0 | 0 | 45,448 |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | (372) | (20,035) | (35,421) |
Net Cash Provided by (Used in) Discontinued Operations | $ (372) | $ (14,314) | $ (4,070) |
Receivable from and Payable t_3
Receivable from and Payable to Brokers, Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivable from brokers, dealers and clearing organizations consists of: | ||
Securities borrowed | $ 108,144 | $ 132,368 |
Receivable from brokers | 20,140 | 19,298 |
Securities failed to deliver | 7,021 | 9,442 |
Clearing organizations | 28,777 | 24,361 |
Other | 2,411 | 1,646 |
Receivables from broker, dealers and clearing organizations | 166,493 | 187,115 |
Payable to brokers, dealers and clearing organizations consists of: | ||
Securities loaned | 146,815 | 180,270 |
Due to Correspondent Brokers | 158 | 1,567 |
Securities failed to receive | 27,799 | 17,559 |
Other | 114,435 | 12,087 |
Payable to brokers, dealers and clearing organizations | $ 289,207 | $ 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 | Dec. 31, 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 | $ 837,584 | $ 926,597 |
Securities Sold | 85,446 | 94,486 |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 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 | 20,665 | 12,538 |
Securities Sold | 7,236 | 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 | 52,261 | 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 | 31,270 | 23,216 |
Securities Sold | $ 9,709 | $ 10,109 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Level Two and Three Principal Amount | $ 47,955,000 |
Valuation Adjustment For Level Two and Three Assets | 3,794,000 |
Fair Value Of Level Two and Three Assets | $ 44,161,000 |
Auction Rate Preferred Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
U S Treasury Rate | 2.60% |
Municipal Auction Rate Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Spread To U S Treasury Rate | 175.00% |
U S Treasury Rate | 2.49% |
Student Loan Auction Rate Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Spread To U S Treasury Rate | 1.20% |
U S Treasury Rate | 2.48% |
Auction Rate Securities Owned | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Level Two and Three Principal Amount | $ 40,650,000 |
Valuation Adjustment For Level Two and Three Assets | 2,698,000 |
Fair Value Of Level Two and Three Assets | 37,952,000 |
Auction Rate Securities Owned | Auction Rate Preferred Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Principal | 21,350,000 |
Valuation Adjustment | 1,000 |
Fair Value | $ 21,349,000 |
Fair Value Measurement, Valuation Techniques | Discounted Cash Flow |
Weighted Average Discount Rate, Percent | 3.88% |
Duration | 1 year |
Auction Rate Securities Owned | Auction Rate Preferred Securities 02 [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Measurement, Valuation Techniques | Tender Offer (4) |
Level Two Principal Amount | $ 18,950,000 |
Valuation Adjustment For Level Two Assets | 2,697,000 |
Fair Value Of Level Two Assets | 16,253,000 |
Auction Rate Securities Owned | Municipal Auction Rate Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Principal | 75,000 |
Valuation Adjustment | 0 |
Fair Value | $ 75,000 |
Fair Value Measurement, Valuation Techniques | Discounted Cash Flow |
Fair Value Input, Discount Rate | 4.35% |
Weighted Average Discount Rate, Percent | 4.35% |
Duration | 2 years |
Fair Value Unobservable Input Current Yield | 5.51% |
Auction Rate Securities Owned | Student Loan Auction Rate Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Principal | $ 275,000 |
Valuation Adjustment | 0 |
Fair Value | $ 275,000 |
Fair Value Measurement, Valuation Techniques | Discounted Cash Flow |
Fair Value Input, Discount Rate | 3.68% |
Weighted Average Discount Rate, Percent | 3.68% |
Duration | 4 years |
Fair Value Unobservable Input Current Yield | 3.64% |
Minimum [Member] | Auction Rate Preferred Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Spread To U S Treasury Rate | 110.00% |
Minimum [Member] | Auction Rate Securities Owned | Auction Rate Preferred Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Input, Discount Rate | 2.86% |
Fair Value Unobservable Input Current Yield | 2.69% |
Maximum [Member] | Auction Rate Preferred Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Spread To U S Treasury Rate | 150.00% |
Maximum [Member] | Auction Rate Securities Owned | Auction Rate Preferred Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Input, Discount Rate | 3.89% |
Maximum [Member] | ARS purchase commitments | Auction Rate Preferred Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Unobservable Input Current Yield | 4.05% |
Weighted Average | Auction Rate Securities Owned | Auction Rate Preferred Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Duration | 1 year |
Fair Value Unobservable Input Current Yield | 4.03% |
Weighted Average | Auction Rate Securities Owned | Municipal Auction Rate Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Unobservable Input Current Yield | 5.51% |
Weighted Average | Auction Rate Securities Owned | Student Loan Auction Rate Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Duration | 4 years |
Fair Value Unobservable Input Current Yield | 3.64% |
Weighted Average | Municipal Auction Rate Securities | Auction Rate Preferred Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Duration | 2 years |
ARS purchase commitments | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Measurement, Valuation Techniques | Tender Offer (4) |
Level Two Principal Amount | $ 7,305,000 |
Valuation Adjustment For Level Two Assets | 1,096,000 |
Fair Value Of Level Two Assets | $ 6,209,000 |
Other Assets | Minimum [Member] | ARS purchase commitments | Auction Rate Preferred Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Input, Discount Rate | 2.86% |
Fair Value Unobservable Input Current Yield | 2.69% |
Other Assets | Maximum [Member] | ARS purchase commitments | Auction Rate Preferred Securities | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Input, Discount Rate | 3.89% |
Fair Value Unobservable Input Current Yield | 4.05% |
Fair Value Measurements - Inves
Fair Value Measurements - Investments in Company-Sponsored Funds (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Investment Holdings [Line Items] | |
Fair Value | $ 6,504 |
Unfunded Commitments | 1,399 |
Hedge Funds [Member] | |
Investment Holdings [Line Items] | |
Fair Value | 1,596 |
Unfunded Commitments | $ 0 |
Redemption Frequency | Quarterly - Annually |
Private Equity Funds | |
Investment Holdings [Line Items] | |
Investments Lock In Period | 10 years |
Fair Value | $ 4,908 |
Unfunded Commitments | $ 1,399 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash equivalents | $ 10,500 | $ 10,490 |
Deposits with clearing organizations | 34,599 | 34,293 |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 926,597 | |
Securities owned | ||
Securities owned, at fair value | 837,584 | 926,597 |
Investments | 6,504 | |
Derivative contracts | ||
Total | 887,657 | 972,265 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 85,446 | 94,486 |
Derivative contracts: | ||
Derivative contracts | 6,780 | 1,388 |
Total | 92,226 | 95,874 |
Investments | ||
Securities owned | ||
Investments | 101 | 169 |
Equity Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 28,215 | 34,067 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 14,774 | |
Money Market Funds [Member] | ||
Securities owned | ||
Securities owned, at fair value | 7 | 383 |
Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 37,952 | 111,853 |
Corporate Equities [Member] | ||
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 25,393 | |
U.S. Treasury securities | ||
ASSETS | ||
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 640,337 | |
Securities owned | ||
Securities owned, at fair value | 657,208 | |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 53,646 | 53,425 |
US Government Corporations and Agencies Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 7,306 | 9,905 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 13 | |
US Government Agencies Debt Securities [Member] | ||
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 3 | |
Sovereign obligations | ||
Securities owned | ||
Securities owned, at fair value | 214 | 608 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 78 | 1,179 |
Corporate debt and other obligations | ||
Securities owned | ||
Securities owned, at fair value | 20,665 | 12,538 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 7,236 | 4,357 |
Mortgage and other asset-backed securities | ||
Securities owned | ||
Securities owned, at fair value | 2,486 | 4,037 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 10 | |
Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 52,261 | 89,653 |
Convertible bonds | ||
Securities owned | ||
Securities owned, at fair value | 31,270 | 23,216 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 9,709 | 10,109 |
Level 1 | ||
ASSETS | ||
Cash equivalents | 10,500 | 10,490 |
Deposits with clearing organizations | 34,599 | 34,293 |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 677,798 | |
Securities owned | ||
Securities owned, at fair value | 686,242 | |
Derivative contracts | ||
Total | 731,341 | 722,581 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 68,420 | 78,818 |
Derivative contracts: | ||
Derivative contracts | 811 | 766 |
Total | 69,231 | 79,584 |
Level 1 | Equity Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 28,215 | 34,067 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 14,774 | |
Level 1 | Money Market Funds [Member] | ||
Securities owned | ||
Securities owned, at fair value | 7 | 383 |
Level 1 | Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 0 | |
Level 1 | Corporate Equities [Member] | ||
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 25,393 | |
Level 1 | U.S. Treasury securities | ||
ASSETS | ||
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 640,337 | |
Securities owned | ||
Securities owned, at fair value | 657,208 | |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 53,646 | 53,425 |
Level 1 | US Government Corporations and Agencies Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 812 | 3,011 |
Level 2 | ||
ASSETS | ||
Cash equivalents | 0 | |
Deposits with clearing organizations | 0 | |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 161,366 | |
Securities owned | ||
Securities owned, at fair value | 129,643 | |
Derivative contracts | ||
Total | 134,516 | 162,082 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 17,026 | 15,668 |
Derivative contracts: | ||
Derivative contracts | 5,969 | 614 |
Total | 22,995 | 16,282 |
Level 2 | Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 16,253 | 24,455 |
Level 2 | US Government Corporations and Agencies Securities [Member] | ||
Securities owned | ||
Securities owned, at fair value | 6,494 | 6,894 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 3 | 13 |
Level 2 | Sovereign obligations | ||
Securities owned | ||
Securities owned, at fair value | 214 | 608 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 78 | 1,179 |
Level 2 | Corporate debt and other obligations | ||
Securities owned | ||
Securities owned, at fair value | 20,665 | 12,538 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 7,236 | 4,357 |
Level 2 | Mortgage and other asset-backed securities | ||
Securities owned | ||
Securities owned, at fair value | 2,486 | 4,037 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 10 | |
Level 2 | Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 52,261 | 89,618 |
Level 2 | Convertible bonds | ||
Securities owned | ||
Securities owned, at fair value | 31,270 | 23,216 |
Securities sold, but not yet purchased | ||
Securities sold but not yet purchased, at fair value | 9,709 | 10,109 |
Level 3 | ||
ASSETS | ||
Cash equivalents | 0 | |
Deposits with clearing organizations | 0 | |
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 87,433 | |
Securities owned | ||
Securities owned, at fair value | 21,699 | |
Derivative contracts | ||
Total | 21,800 | 87,602 |
Derivative contracts: | ||
Derivative contracts | 0 | 8 |
Total | 0 | 8 |
Level 3 | Investments | ||
Securities owned | ||
Investments | 101 | 169 |
Level 3 | Auction rate securities | ||
Securities owned | ||
Securities owned, at fair value | 21,699 | 87,398 |
Level 3 | Municipal obligations | ||
Securities owned | ||
Securities owned, at fair value | 0 | 35 |
TBAs | ||
Derivative contracts | ||
Derivative contracts, total | 4,873 | 716 |
Derivative contracts: | ||
Derivative contracts | 4,873 | 614 |
TBAs | Level 2 | ||
Derivative contracts | ||
Derivative contracts, total | 4,873 | 716 |
Derivative contracts: | ||
Derivative contracts | 4,873 | 614 |
ARS purchase commitments | ||
Derivative contracts: | ||
Derivative contracts | 1,096 | 8 |
ARS purchase commitments | Level 2 | ||
Derivative contracts: | ||
Derivative contracts | 1,096 | |
ARS purchase commitments | Level 3 | ||
Derivative contracts: | ||
Derivative contracts | 0 | 8 |
Future [Member] | ||
Derivative contracts: | ||
Derivative contracts | 807 | 766 |
Future [Member] | Level 1 | ||
Derivative contracts: | ||
Derivative contracts | 807 | $ 766 |
Foreign exchange forward contracts | ||
Derivative contracts: | ||
Derivative contracts | 4 | |
Foreign exchange forward contracts | Level 1 | ||
Derivative contracts: | ||
Derivative contracts | $ 4 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Beginning Balance | $ 169 | $ 158 |
Total Realized and Unrealized Gains (Losses), Assets | (8) | 11 |
Purchases and Issuances | 0 | |
Sales and Settlements | 0 | |
Transfers In (Out) | (60) | |
Assets Ending Balance | 101 | 169 |
Auction Rate Securities Purchase Commitment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Beginning Balance | 0 | 849 |
Total Realized and Unrealized Gains (Losses), Assets | (849) | |
Assets Ending Balance | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, (Sales), Issuances, (Settlements) | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 1,096 | |
Auction rate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Beginning Balance | 87,398 | 84,926 |
Total Realized and Unrealized Gains (Losses), Assets | 1,351 | 1,177 |
Purchases and Issuances | 6,300 | 27,225 |
Sales and Settlements | (35,675) | (1,475) |
Transfers In (Out) | (37,675) | (24,455) |
Assets Ending Balance | 21,699 | 87,398 |
Auction Rate Securities Purchase Commitment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Beginning Balance | 8 | 645 |
Total Realized and Unrealized Gains (Loss), Liabilities | (1,088) | 637 |
Liabilities Ending Balance | 0 | 8 |
Municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Beginning Balance | 35 | 44 |
Total Realized and Unrealized Gains (Losses), Assets | 14 | (9) |
Purchases and Issuances | 76 | |
Sales and Settlements | (125) | 0 |
Transfers In (Out) | 0 | |
Assets Ending Balance | $ 0 | $ 35 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets and Liabilities Not Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | $ 926,597 | |
Securities purchased under agreements to resell | $ 290 | 658 |
Due from Employees | 44,058 | 40,520 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 677,798 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 161,366 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Owned and Sold, Not yet Purchased, at Fair Value, Security Owned, Including Disposal Group Securities Owned | 87,433 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Estimate Not Practicable, Cash | 80,175 | 37,664 |
Deposits with clearing organization | 33,079 | 7,929 |
Securities borrowed | 108,144 | 132,368 |
Receivables from brokers | 20,140 | 19,298 |
Securities failed to deliver | 7,021 | 9,442 |
Clearing organizations | 28,777 | 24,361 |
Other | 2,411 | 930 |
Total Receivable from brokers, dealers and clearing organizations | 166,493 | 186,399 |
Receivable from customers | 720,777 | 848,226 |
Securities purchased under agreements to resell | 290 | 658 |
Due from Employees | 44,058 | 40,520 |
Fair Value, Estimate Not Practicable, Investment | 59,765 | 65,404 |
Drafts payable | 16,348 | 42,212 |
Bank call loans | 15,000 | 118,300 |
Securities loaned | 146,815 | 180,270 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 158 | 1,567 |
Securities failed to receive | 27,799 | 17,559 |
Other | 113,628 | 10,707 |
Total payables to brokers, dealers and clearing organizations | 288,400 | 210,103 |
Payables to customers | 336,616 | 385,907 |
Fair Value,Estimate not Practicable, Securities sold under Agreements to Repurchase | 484,218 | 586,478 |
Fair Value, Estimate not Practicable, Senior Secured Notes | 199,722 | 206,380 |
Fair Value, Measurements, Nonrecurring [Member] | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Estimate Not Practicable, Cash | 80,175 | 37,664 |
Deposits with clearing organization | 33,079 | 7,929 |
Drafts payable | 16,348 | 42,212 |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities borrowed | 108,144 | 132,368 |
Receivables from brokers | 20,140 | 19,298 |
Securities failed to deliver | 7,021 | 9,442 |
Clearing organizations | 28,777 | 24,361 |
Other | 2,411 | 930 |
Total Receivable from brokers, dealers and clearing organizations | 166,493 | 186,399 |
Receivable from customers | 720,777 | 848,226 |
Securities purchased under agreements to resell | 290 | |
Due from Employees | 44,058 | 40,520 |
Fair Value, Estimate Not Practicable, Investment | 59,765 | 65,404 |
Bank call loans | 15,000 | 118,300 |
Securities loaned | 146,815 | 180,270 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 158 | 1,567 |
Securities failed to receive | 27,799 | 17,559 |
Other | 113,628 | 10,707 |
Total payables to brokers, dealers and clearing organizations | 288,400 | 210,103 |
Payables to customers | 336,616 | 385,907 |
Fair Value,Estimate not Practicable, Securities sold under Agreements to Repurchase | 484,218 | 586,478 |
Fair Value, Estimate not Practicable, Senior Secured Notes | 199,722 | 206,380 |
Fair Value, Measurements, Nonrecurring [Member] | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Estimate Not Practicable, Cash | 80,175 | 37,664 |
Deposits with clearing organization | 33,079 | 7,929 |
Securities borrowed | 108,144 | 132,368 |
Receivables from brokers | 20,140 | 19,298 |
Securities failed to deliver | 7,021 | 9,442 |
Clearing organizations | 28,777 | 24,361 |
Other | 2,411 | 930 |
Total Receivable from brokers, dealers and clearing organizations | 166,493 | 186,399 |
Receivable from customers | 720,777 | 848,226 |
Securities purchased under agreements to resell | 290 | 658 |
Due from Employees | 44,058 | 40,520 |
Fair Value, Estimate Not Practicable, Investment | 59,765 | 65,404 |
Drafts payable | 16,348 | 42,212 |
Bank call loans | 15,000 | 118,300 |
Securities loaned | 146,815 | 180,270 |
Fair Value Estimate Not Practicable Payable to Correspondent Brokers | 158 | 1,567 |
Securities failed to receive | 27,799 | 17,559 |
Other | 113,628 | 10,707 |
Total payables to brokers, dealers and clearing organizations | 288,400 | 210,103 |
Payables to customers | 336,616 | 385,907 |
Fair Value,Estimate not Practicable, Securities sold under Agreements to Repurchase | 484,218 | 586,478 |
Fair Value, Estimate not Practicable, Senior Secured Notes | $ 200,000 | $ 200,000 |
Fair Value Measurements - Notio
Fair Value Measurements - Notional Amounts and Fair Values of Derivatives by Product (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Derivatives asset, Notional | $ 729,500 | $ 65,576 | |
Derivatives asset, Fair Value | 4,873 | 716 | |
Derivative liability, notional | 5,317,805 | 5,920,568 | |
Derivative liability, Fair Value | 6,780 | 1,388 | |
Other Contracts | TBAs | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives asset, Notional | 729,500 | 26,000 | |
Derivatives asset, Fair Value | 4,873 | 22 | |
Derivative liability, notional | 729,500 | 26,000 | |
Derivative liability, Fair Value | 4,873 | 22 | |
Other Contracts | Other TBAs (2) | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives asset, Notional | 39,576 | ||
Derivatives asset, Fair Value | 694 | ||
Derivative liability, notional | 39,576 | ||
Derivative liability, Fair Value | 592 | ||
Other Contracts | Foreign exchange forward contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional | 200 | ||
Derivative liability, Fair Value | 4 | ||
Other Contracts | Auction Rate Securities Purchase Commitment | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional | 7,305 | 10,992 | |
Derivative liability, Fair Value | 1,096 | 8 | |
Commodity Contracts | Futures | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, notional | 4,580,800 | 5,844,000 | [1] |
Derivative liability, Fair Value | $ 807 | $ 766 | [1] |
[1] | For the year ended December 31, 2018, the diluted net income per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements (10,592 and 1,237,134 shares for the years ended December 31, 2017 and 2016, respectively).(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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | $ (132) | $ 282 |
Commodity Contracts | Principal Transaction Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | 592 | 987 |
Other Contracts | Principal Transaction Revenue | ERROR in label resolution. | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | 371 | (167) |
Other Contracts | Other | Foreign exchange forward contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | (7) | 12 |
Other Contracts | Other | Other TBAs (2) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | (338) | |
Other Contracts | Auction Rate Securities Purchase Commitment | Principal Transaction Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Recognized in Income on Derivatives (pre-tax) Gain (Loss) | $ (1,088) | $ (212) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities owned, at fair value | $ 837,584,000 | $ 926,597,000 |
ARS Valuation Adjustment For Level Two and Three Assets | $ 3,794,000 | |
Loan position held in secondary loan trading portfolio | 0 | |
Forward or delayed delivery of the underlying instrument with settlement | 180 days | |
Equity Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities owned, at fair value | $ 28,215,000 | 34,067,000 |
Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities owned, at fair value | 37,952,000 | 111,853,000 |
Auction Rate Securities Owned | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
ARS Valuation Adjustment For Level Two and Three Assets | 2,698,000 | |
Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total amount of ARS the firm purchased and hold | 40,700,000 | |
Amount of ARS committed to purchase from clients | 7,300,000 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | $ (37,675,000) | (24,455,000) |
Auction rate securities | Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commitment to purchase ARS period maximum | 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 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments Lock In Period | 10 years | |
Auction Rate Preferred Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
U S Treasury Rate | 2.60% | |
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 Owned | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Input, Discount Rate | 2.86% | |
Fair Value Unobservable Input Current Yield | 2.69% | |
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 Purchase Commitment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Unobservable Input Current Yield | 4.05% | |
Auction Rate Preferred Securities | Maximum [Member] | Auction Rate Securities Owned | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Input, Discount Rate | 3.89% | |
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 | 2.48% | |
Student Loan Auction Rate Securities | Auction Rate Securities Owned | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Input, Discount Rate | 3.68% | |
Fair Value Unobservable Input Current Yield | 3.64% | |
Auction Rate Securities Purchase Commitment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Valuation Adjustment For Level Two Assets | $ 1,096,000 | |
Fair Value, Valuation Scenario One [Member] | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Basis point | 25.00% | |
Decrease in fair value of ARS | $ 22,000,000 | |
Fair Value, Valuation Scenario Two | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Basis point | 50.00% | |
Decrease in fair value of ARS | $ 76,000,000 | |
Other Assets | Auction Rate Preferred Securities | Minimum [Member] | Auction Rate Securities Purchase Commitment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Input, Discount Rate | 2.86% | |
Fair Value Unobservable Input Current Yield | 2.69% | |
Other Assets | Auction Rate Preferred Securities | Maximum [Member] | Auction Rate Securities Purchase Commitment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Input, Discount Rate | 3.89% | |
Fair Value Unobservable Input Current Yield | 4.05% | |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities owned, at fair value | $ 129,643,000 | |
Level 2 | Auction rate securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities owned, at fair value | $ 16,253,000 | $ 24,455,000 |
Collateralized Transactions - A
Collateralized Transactions - Additional Information (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)dealer | Dec. 31, 2017USD ($) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Bank call loans | $ 15,000,000 | $ 118,300,000 | |
Customer securities under customer margin loans available to be pledged | 1,000,000,000 | ||
Customer securities deposited to secure obligations and margin requirements under option contracts | 460,200,000 | ||
Outstanding letters of credit | 0 | ||
Gross Amounts of Recognized Liabilities | 786,532,000 | ||
Gross Amounts of Recognized Liabilities | [1] | 180,270,000 | |
Amounts pledged | 518,000,000 | 655,700,000 | |
Carrying value of securities owned by the Company loaned or pledged | $ 20,200,000 | 97,200,000 | |
Number of broker-dealers | dealer | 5 | ||
Receivable from brokers and clearing organizations | $ 86,200,000 | ||
Reverse Repurchase Agreements | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities received as collateral under securities borrowed transaction with market value | 83,000,000 | 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 | 27,600,000 | 30,900,000 | |
Securities received as collateral under securities borrowed transaction with market value | 104,900,000 | 127,200,000 | |
Repurchase Agreements [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Customer securities under customer margin loans agreement available to be repledged | 83,000,000 | $ 221,600,000 | |
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 | 713,172,000 | ||
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 | 566,357,000 | ||
Equity Securities [Member] | Maturity Overnight and on Demand [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Gross Amounts of Recognized Liabilities | [2] | $ 146,815,000 | |
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 | ||
Commercial Banks | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Collateralized loans, collateralized by firm | $ 18,600,000 | ||
Customer securities under customer margin loans agreement available to be repledged | 1,600,000 | ||
Securities Loaned [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Customer securities under customer margin loans agreement available to be repledged | $ 112,600,000 | ||
[1] | Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet. | ||
[2] | Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet. |
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 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Reverse repurchase agreements | |||||
Gross Amounts of Recognized Assets | $ 82,429 | $ 200,712 | |||
Gross Amounts Offset on the Balance Sheet | (82,139) | (200,054) | |||
Securities Purchased under Agreement to Resell, Amount Not Offset Against Collateral | 658 | ||||
Net Amounts of Assets Presented on the Balance Sheet | 290 | 658 | |||
Financial Instruments | 0 | 0 | |||
Cash Collateral Received | 0 | 0 | |||
Net Amount | 290 | 658 | |||
Securities borrowed | |||||
Gross Amounts of Recognized Assets | 108,144 | [1] | 132,368 | [2] | |
Gross Amounts Offset on the Balance Sheet | 0 | [1] | 0 | [2] | |
Securities Borrowed, Amount Not Offset Against Collateral | [2] | 132,368 | |||
Net Amounts of Assets Presented on the Balance Sheet | 108,144 | 132,368 | |||
Financial Instruments | (105,960) | [1] | (128,575) | [2] | |
Cash Collateral Received | 0 | [1] | 0 | [2] | |
Net Amount | 2,184 | [1] | 3,793 | [2] | |
Total | |||||
Gross Amounts of Recognized Assets | 190,573 | 333,080 | |||
Gross Amounts Offset on the Balance Sheet | (82,139) | (200,054) | |||
Net Amounts of Assets Presented on the Balance Sheet | 108,434 | 133,026 | |||
Financial Instruments | (105,960) | (128,575) | |||
Cash Collateral Received | 0 | 0 | |||
Net Amount | 2,474 | 4,451 | |||
Repurchase agreements | |||||
Gross Amounts of Recognized Liabilities | 786,532 | ||||
Gross Amounts Offset on the Balance Sheet | (82,139) | (200,054) | |||
Securities Sold under Agreements to Repurchase, Amount Not Offset Against Collateral | 586,478 | ||||
Net Amounts of Liabilities Presented on the Balance Sheet | 484,218 | 586,478 | |||
Financial Instruments | (480,322) | (585,289) | |||
Cash Collateral Pledged | 0 | 0 | |||
Net Amount | 3,896 | 1,189 | |||
Securities loaned | |||||
Gross Amounts of Recognized Liabilities | [3] | 180,270 | |||
Gross Amounts Offset on the Balance Sheet | 0 | [4] | 0 | [3] | |
Securities Loaned, Amount Not Offset Against Collateral | [3] | 180,270 | |||
Net Amounts of Liabilities Presented on the Balance Sheet | 146,815 | 180,270 | |||
Financial Instruments | (139,232) | [4] | (170,176) | [3] | |
Cash Collateral Pledged | 0 | [4] | 0 | [3] | |
Net Amount | 7,583 | [4] | 10,094 | [3] | |
Total | |||||
Gross Amounts of Recognized Liabilities | 713,172 | 966,802 | |||
Gross Amounts Offset on the Balance Sheet | (82,139) | (200,054) | |||
Net Amounts of Liabilities Presented on the Balance Sheet | 631,033 | 766,748 | |||
Financial Instruments | (619,554) | (755,465) | |||
Cash Collateral Pledged | 0 | 0 | |||
Net Amount | 11,479 | $ 11,283 | |||
U.S. treasury, agency and sovereign obligations | Maturity Overnight and on Demand [Member] | |||||
Repurchase agreements | |||||
Gross Amounts of Recognized Liabilities | 566,357 | ||||
Equity Securities [Member] | Maturity Overnight and on Demand [Member] | |||||
Securities loaned | |||||
Gross Amounts of Recognized Liabilities | [4] | $ 146,815 | |||
[1] | Included in receivable from brokers, dealers and clearing organizations on the consolidated balance sheet. | ||||
[2] | Included in receivable from brokers, dealers and clearing organizations on the consolidated balance sheet. | ||||
[3] | Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet. | ||||
[4] | Included in payable to brokers, dealers and clearing organizations on the consolidated balance sheet. |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | ||
Variable Interest Entity [Line Items] | ||||
Total VIE Assets | $ 298,654 | [1] | $ 343,840 | [2] |
Carrying Value of Variable Interest Assets | 345 | [3] | 725 | [4] |
Capital Commitments | 0 | 2 | ||
Maximum Exposure to Loss in Non- consolidated VIEs | 345 | 727 | ||
Private Equity Funds [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total VIE Assets | 7,454 | [1] | 15,668 | [2] |
Carrying Value of Variable Interest Assets | 8 | [3] | 12 | [4] |
Carrying Value of Variable Interest Liabilities | 0 | [3] | 0 | |
Capital Commitments | 0 | [3] | 2 | |
Maximum Exposure to Loss in Non- consolidated VIEs | 8 | [3] | 14 | |
Hedge Funds [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total VIE Assets | 291,200 | [1] | 328,172 | [2] |
Carrying Value of Variable Interest Assets | 337 | [3] | 713 | [4] |
Carrying Value of Variable Interest Liabilities | 0 | [3] | 0 | |
Capital Commitments | 0 | [3] | 0 | |
Maximum Exposure to Loss in Non- consolidated VIEs | $ 337 | [3] | $ 713 | |
[1] | Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. | |||
[2] | Represents the total assets of the VIEs and does not represent the Company's interests in the VIEs. | |||
[3] | Represents the Company's interests in the VIEs and is included in other assets on the consolidated balance sheet. | |||
[4] | Represents the Company's interests in the VIEs and is included in other assets on the consolidated balance sheet. |
Office Facilities - Summary of
Office Facilities - Summary of Office Facilities Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization of furniture, equipment and leasehold improvements | $ 6,871 | $ 5,657 | $ 6,788 |
Office facilities, gross | 118,170 | 110,013 | |
Less accumulated depreciation | (89,182) | (82,826) | |
Total | 28,988 | 27,187 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Office facilities, gross | 57,482 | 53,260 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Office facilities, gross | $ 60,688 | $ 56,753 |
Office Facilities - Additional
Office Facilities - Additional Information (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 6,871 | $ 5,657 | $ 6,788 |
Bank Call Loans - Additional In
Bank Call Loans - Additional Information (Narrative) (Details) - USD ($) number in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Bank Call Loans [Abstract] | |||
Broker call rate | 0.00% | 0.00% | |
Interest expense on bank call loans | $ 1.4 | $ 2.6 | $ 1.7 |
Bank Call Loans - Summary of Ba
Bank Call Loans - Summary of Bank Call Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Bank Call Loans [Abstract] | ||
Year-end balance | $ 15,000 | $ 118,300 |
Weighted interest rate (at end of year) | 3.43% | 2.25% |
Maximum balance (at any month-end) | $ 161,800 | $ 230,400 |
Bank Call Loans Average Amount Outstanding | $ 53,271 | $ 123,918 |
Average interest rate (during the year) | 2.66% | 2.08% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Unamortized debt issuance expense | $ (904) | $ (1,163) |
Long-term Debt | $ 199,096 | 198,837 |
6.75% Senior Secured Notes [Member] | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 1, 2022 | |
Long-term Debt, Gross | $ 200,000 | $ 200,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Narrative) (Details) - USD ($) $ in Millions | Jun. 23, 2017 | Apr. 15, 2017 | Apr. 15, 2014 | Apr. 12, 2011 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 19, 2017 |
6.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Private placement date | Jun. 23, 2017 | |||||||
Debt Instrument, Face Amount | $ 200 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |||||||
Debt Issuance Costs, Gross | $ 4.3 | |||||||
Debt Instrument, Issue Price Percentage | 100.00% | |||||||
Percentage of Notes Registered under the Securities Act of 1933 | 99.80% | |||||||
Term of payments of interest on notes | semi-annually | |||||||
Interest expense on note | $ 13.5 | $ 7 | ||||||
Interest Paid Long Term Debt | 13.8 | 0 | ||||||
8.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 200 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | |||||||
Extinguishment of Debt, Amount | $ 120 | $ 30 | $ 50 | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
Debt Instrument, Issue Price Percentage | 100.00% | |||||||
Term of payments of interest on notes | semi-annually | |||||||
Interest expense on note | 6.7 | $ 13.1 | ||||||
Interest Paid Long Term Debt | $ 9.4 | $ 13.1 | ||||||
Oppenheimer [Member] | 6.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Issuance Costs, Gross | 3 | |||||||
Third Party [Member] | 6.75% Senior Secured Notes [Member] | Senior Secured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Issuance Costs, Gross | $ 1.3 | |||||||
Maximum [Member] | 6.75% Senior Secured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Restrictive Covenants Exceptions | 20 | |||||||
Restrictive Covenants Exception for total Dividend Payment and other Restricted Payments | $ 10 |
Share Capital - Changes in Numb
Share Capital - Changes in Number of Shares of Class A Stock Outstanding (Details) - Common Class A [Member] - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Class A Stock outstanding, beginning of year | 13,139,203 | 13,261,095 |
Issued pursuant to shared-based compensation plans | 38,728 | 328,458 |
Repurchased and canceled pursuant to the stock buy-back | (236,122) | (450,350) |
Class A Stock outstanding, end of year | 12,941,809 | 13,139,203 |
Share Capital - Additional Info
Share Capital - Additional Information (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 05, 2017 | Sep. 15, 2015 | |
Class of Stock [Line Items] | |||||||||||||
Amounts pledged | $ 518 | $ 655.7 | $ 518 | $ 655.7 | |||||||||
Preferred stock, authorized | 50,000,000 | 50,000,000 | |||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||||||
Preferred stock, issued | 0 | 0 | |||||||||||
Dividends per share | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.44 | $ 0.44 | $ 440 | ||
Common Class A [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Common Stock, outstanding | 12,941,809 | 13,139,203 | 12,941,809 | 13,139,203 | 13,261,095 | 13,348,369 | |||||||
Common Stock, Shares, Issued | 12,941,809 | 13,139,203 | 12,941,809 | 13,139,203 | |||||||||
Repurchase and cancelled stock | 236,122 | 450,350 | |||||||||||
Dividends per share | $ 0.44 | $ 0.44 | $ 0.44 | ||||||||||
Class B Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, authorized | 99,665 | 99,665 | 99,665 | 99,665 | |||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Common Stock, outstanding | 99,665 | 99,665 | 99,665 | 99,665 | |||||||||
Common Stock, Shares, Issued | 99,665 | 99,665 | 99,665 | 99,665 | |||||||||
Dividends per share | $ 0.44 | $ 0.44 | $ 0.44 | ||||||||||
Previous Program [Member] | Common Class A [Member] | |||||||||||||
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 | 40,734 | |||||||||||
New Program [Member] | Common Class A [Member] | |||||||||||||
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 Repurchased and Retired During Period, Shares | 236,122 | ||||||||||||
Stock Repurchased and Retired During Period, Value | $ 5.9 | ||||||||||||
Stock Repurchased and Retired During Period, Per Share | $ 24.96 | ||||||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 272,784 | 272,784 | 690,734 | ||||||||||
Common Stock, Shares, Issued | 13,178,571 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Earnings Per Share [Abstract] | ||||||||||||
Basic weighted average number of shares outstanding | 13,248,876 | 13,246,423 | 13,368,768 | |||||||||
Net dilutive effect of share-based awards, treasury method | [1] | 812,493 | 426,938 | 0 | ||||||||
Diluted weighted average number of shares outstanding | 14,061,369 | 13,673,361 | 13,368,768 | |||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 8,267 | $ 5,061 | $ 8,839 | $ 6,709 | $ 21,168 | $ 7,403 | $ (1,363) | $ (5,338) | $ 28,876 | $ 21,870 | $ (9,630) | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | 29 | 461 | 53 | 587 | 0 | 1,130 | 10,121 | |
Net income | 8,267 | 5,061 | 8,839 | 6,709 | 21,197 | 7,864 | (1,310) | (4,751) | 28,876 | 23,000 | 491 | |
Net income attributable to non-controlling interest, net of tax | 6 | (10) | (16) | 4 | 4 | 75 | 9 | 96 | (16) | 184 | 1,652 | |
Net income (loss) attributable to Oppenheimer Holdings Inc. | $ 8,261 | $ 5,071 | $ 8,855 | $ 6,705 | $ 21,193 | $ 7,789 | $ (1,319) | $ (4,847) | $ 28,892 | $ 22,816 | $ (1,161) | |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.62 | $ 0.38 | $ 0.67 | $ 0.51 | $ 1.61 | $ 0.56 | $ (0.10) | $ (0.40) | $ 2.18 | $ 1.65 | $ (0.72) | |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | 0 | 0 | 0 | 0 | 0.03 | 0 | 0.04 | 0 | 0.07 | 0.63 | |
Net income (loss) per share | 0.62 | 0.38 | 0.67 | 0.51 | 2 | 1 | 0 | 0 | 2.18 | 1.72 | (0.09) | |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.59 | 0.36 | 0.63 | 0.48 | 1.54 | 0.54 | (0.10) | (0.40) | 2.05 | 1.60 | (0.72) | |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0 | 0 | 0 | 0 | 0.03 | 0 | 0.04 | 0 | 0.07 | 0.63 | |
Diluted earnings per share | $ 0.59 | $ 0.36 | $ 0.63 | $ 0.48 | $ 2 | $ 1 | $ 0 | $ 0 | $ 2.05 | $ 1.67 | $ (0.09) | |
[1] | For the year ended December 31, 2018, the diluted net income per share computation does not include the anti-dilutive effect of 4,050 shares of Class A Stock granted under share-based compensation arrangements (10,592 and 1,237,134 shares for the years ended December 31, 2017 and 2016, respectively).(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 _2
Earnings Per Share - Summary of Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 10,592 | 1,237,134 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | $ 9,419 | $ 6,907 | $ (7,662) |
U.S. state and local income taxes, net of U.S. federal income tax benefits | 3,144 | 1,430 | (1,075) |
Unrecognized tax benefit | 0 | (9) | (603) |
Valuation allowance | 1,833 | 89 | 1,208 |
Non-taxable income | (637) | (1,055) | (1,267) |
Provision to return adjustments | (326) | (1,277) | (4,167) |
Impact of the TCJA | 0 | (9,013) | 0 |
Change in state and foreign tax rates | 267 | (353) | 264 |
Foreign tax rate differentials | 112 | 974 | 143 |
Excess tax benefits from share-based awards | (81) | (493) | 0 |
Other non-deductible expenses | 2,246 | 666 | 897 |
Current and Deferred Income Tax Expense (Benefit) from Continuing Operations | $ 15,977 | $ (2,134) | $ (12,262) |
U.S. federal statutory income tax rate, percent | 21.00% | 35.00% | 35.00% |
U.S. state and local income taxes, net of U.S. federal income tax benefits, percent | 7.00% | 7.20% | 4.90% |
Unrecognized tax benefits, percent | 0.00% | 0.00% | 2.80% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 4.10% | 0.50% | (5.50%) |
Other, percent | (1.40%) | (5.30%) | 5.80% |
Adjustment to reflect prior year tax return filings, percent | (0.70%) | (6.50%) | 19.00% |
Effective Income Tax Reconciliation, impact of the TCJA Tax Reform, Percent | 0.00% | (45.70%) | 0.00% |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.60% | (1.80%) | (1.20%) |
Non-U.S. operations, percent | 0.20% | 4.90% | (0.70%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | (0.20%) | (2.50%) | (0.00%) |
Business promotion and other non-deductible expenses, percent | 5.00% | 3.40% | (4.10%) |
Total income tax expense, percent | 35.60% | (10.80%) | 56.00% |
Income Taxes - Schedule of Curr
Income Taxes - Schedule of Current and Deferred Income Tax (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
U.S. federal tax (benefit) | $ 10,355 | $ 506 | $ (15,433) |
State and local tax (benefit) | 2,618 | (1,326) | (4,631) |
Non-U.S. operations | 231 | 144 | 46 |
Total Current | 13,204 | (676) | (20,018) |
Deferred: | |||
U.S. federal tax (benefit) | 395 | (1,215) | 5,856 |
State and local tax | 1,438 | 1,725 | 617 |
Non-U.S. operations | 940 | (1,968) | 1,283 |
Deferred income taxes | 2,773 | (1,458) | 7,756 |
Current and Deferred Income Tax Expense (Benefit) from Continuing Operations | $ 15,977 | $ (2,134) | $ (12,262) |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Deferred compensation | $ 18,909 | $ 19,105 |
Deferred rent and lease incentives | 9,597 | 10,303 |
Net operating losses and credits | 7,071 | 10,535 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 2,350 | 2,663 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 2,863 | 1,104 |
Deferred Tax Assets, Tax Deferred Expense, Auction Rate Securities Reserves | 1,007 | 540 |
Involuntary conversion | 1,692 | 1,670 |
Deferred Tax Assets, Tax Deferred Expense, Depreciation | 370 | 500 |
Other | 1,067 | 1,177 |
Total deferred tax assets | 44,926 | 47,597 |
Valuation allowance | 3,204 | 1,350 |
Deferred tax assets after valuation allowance | 41,722 | 46,247 |
Deferred tax liabilities: | ||
Goodwill | 41,049 | 40,534 |
Partnership investments | 8,227 | 9,184 |
Company-owned life insurance | 6,277 | 7,426 |
Other | 252 | 195 |
Deferred Tax Liabilities, Gross | 55,805 | 57,339 |
Total deferred tax liabilities | $ (14,083) | $ (11,092) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 1,079,000 | $ 1,088,000 | $ 2,490,000 |
Additions for tax positions of prior years | 0 | 0 | 98,000 |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 0 | (9,000) | (652,000) |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | 0 | (848,000) |
Ending Balance | $ 1,079,000 | $ 1,079,000 | $ 1,088,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Income Taxes [Line Items] | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 113,000 | $ 231,000 | ||
Profit (loss) before income taxes for foreign operations | $ (4,000,000) | $ (8,500,000) | $ (965,000) | |
Effective Income Tax Rate Reconciliation, Percent | 35.60% | (10.80%) | 56.00% | |
Impact of the TCJA Tax Reform, Net After Tax Benefit | $ 9,000,000 | |||
Effective Income Tax Reconciliation, impact of the TCJA Tax Reform | $ 0 | 9,013,000 | $ 0 | |
Impact of the TCJA Tax Reform, adjustment related to re-measurement of deferred tax liabilities | 29,000,000 | |||
Impact of the TCJA Tax Reform, adjustment related to re-measurement of deferred tax assets | 19,600,000 | |||
Impact of the TCJA Tax Reform, Other Adjustments | 400,000 | |||
Valuation allowance | 3,204,000 | $ 1,350,000 | ||
Goodwill amortized period | 15 years | |||
Unrecognized tax benefits | 1,079,000 | $ 1,079,000 | 1,088,000 | $ 2,490,000 |
Unrecognized tax benefit that would impact tax rate | 853,000,000,000 | 853,000 | ||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 0 | 9,000 | 652,000 | |
Income tax-related interest payable | 345,000 | 232,000 | ||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 0 | $ 0 | $ 848,000 | |
State and Local Jurisdiction | New York State | Minimum [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Income tax examination year | 2,011 | |||
State and Local Jurisdiction | New York State | Maximum [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Income tax examination year | 2,014 | |||
State and Local Jurisdiction | New York City | Minimum [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Income tax examination year | 2,009 | |||
State and Local Jurisdiction | New York City | Maximum [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Income tax examination year | 2,012 | |||
Oppenheimer Israel (OPCO) Ltd. | ||||
Schedule Of Income Taxes [Line Items] | ||||
Net operating loss carryforward | $ 2,500,000 | |||
Oppenheimer Europe [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Valuation allowance | $ 1,800,000 |
Employee Compensation Plans - S
Employee Compensation Plans - Summarizes of Company's Non-Vested ESP/EIP Awards (Details) - Common Class A [Member] - Restricted Stock - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of shares, Non-vested beginning of year | 1,067,296 | |
Granted, Number of shares | 333,959 | |
Vested, Number of shares | (39,465) | |
Forfeited or expired, Number of shares | (72,566) | |
Number of shares, Non-vested end of year | 1,289,224 | 1,067,296 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures | ||
Weighted average fair value, Non-vested beginning of year | $ 16.34 | |
Weighted average fair value, Granted | 25.96 | |
Weighted average fair value, Vested | 19.54 | |
Weighted average fair value, Forfeited or expired | 16.54 | |
Weighted average fair value, Non-vested end of year | $ 18.72 | $ 16.34 |
Remaining contractual life, Non-vested | 1 year 9 months 24 days | 2 years 2 months 24 days |
Remaining contractual life, Granted | 3 years |
Employee Compensation Plans -_2
Employee Compensation Plans - Summarizes Stock Options Outstanding and Exercisable (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 15,573 | 14,499 |
Employee Compensation Plans -_3
Employee Compensation Plans - Stock Appreciation Rights (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares | Jan. 11, 2019 | Dec. 31, 2018 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights Outstanding Number | 2,125,660 | 2,125,660 | |
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights unvested amount | 2,100,000 | 2,100,000 | |
Total Number of OARs outstanding | 0 | 0 | |
Total weighted average strike price | $ 0 | $ 0 | |
Total weighted average remaining contractual life | 2 years 1 month | ||
Total weighted average fair value per share | $ 0 | $ 0 | |
Subsequent Event [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Of Stock Appreciation Rights Granted | 560,156 | ||
January Five Two Thousand Eighteen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights Outstanding Number | 482,720 | 482,720 | |
Strike price | $ 0 | $ 0 | |
Remaining contractual life | 4 years | ||
Fair value per share | $ 0 | $ 0 | |
January Six Two Thousand Seventeen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights Outstanding Number | 409,660 | 409,660 | |
Strike price | $ 0 | $ 0 | |
Remaining contractual life | 3 years | ||
Fair value per share | $ 8.3245 | $ 8.3245 | |
January Six Two Thousand Sixteen | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights Outstanding Number | 425,900 | 425,900 | |
Strike price | $ 0 | $ 0 | |
Remaining contractual life | 2 years | ||
Fair value per share | $ 0 | $ 0 | |
January Nine Two Thousand Fifteen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights Outstanding Number | 428,920 | 428,920 | |
Strike price | $ 0 | $ 0 | |
Remaining contractual life | 1 year | ||
Fair value per share | $ 0 | $ 0 | |
January Fourteen Two Thousand Fourteen [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights Outstanding Number | 378,460 | 378,460 | |
Strike price | $ 0 | $ 0 | |
Remaining contractual life | 13 days | ||
Fair value per share | $ 0 | $ 0 |
Employee Compensation Plans - A
Employee Compensation Plans - Additional Information (Narrative) (Details) | Jan. 31, 2019shares | Jan. 11, 2019shares | Dec. 31, 2018USD ($)employee_compensation_planshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Employee Compensation Plans Granted | employee_compensation_plan | 2 | ||||
Maximum annual contribution under Defined Contribution Plan | $ 18,500 | $ 18,000 | $ 18,000 | ||
Employer contribution to Defined Contribution Plan | 1,800,000 | 1,500,000 | 1,300,000 | ||
Deferred bonus amounts | $ 9,400,000 | 8,200,000 | 7,700,000 | ||
Vesting period of deferred bonus | 5 years | ||||
Deferred compensation plans cost | $ 6,100,000 | 17,100,000 | 11,800,000 | ||
Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares of Class A Stock available | shares | 811,937 | ||||
Restricted Stock | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate intrinsic value of ESP awards outstanding | $ 32,900,000 | ||||
Compensation expense relating to the share-based awards | 6,000,000 | 5,600,000 | 5,200,000 | ||
Unrecognized compensation cost related to unvested share-based compensation | $ 11,200,000 | ||||
Cost is expected to be recognized over a weighted average period | 1 year 9 months 24 days | ||||
Granted, Number of shares | shares | 333,959 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | 39,465 | ||||
Restricted Stock | Subsequent Event [Member] | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted, Number of shares | shares | 359,208 | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense relating to the share-based awards | $ 26,500 | 25,700 | 19,900 | ||
Employee Stock Option | Subsequent Event [Member] | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period under share based payment | 4 years 6 months | ||||
Number of Options, Granted | shares | 3,578 | ||||
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense relating to the share-based awards | $ 700,000 | $ 6,900,000 | $ 1,000,000 | ||
Cost is expected to be recognized over a weighted average period | 2 years 1 month | ||||
Aggregate intrinsic value of OARs outstanding and expected to vest | $ 9,200,000 | ||||
Liability related to the OARs | 6,900,000 | ||||
Total unrecognized compensation cost | $ 6,500,000 | ||||
Stock Appreciation Rights (SARs) [Member] | Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period under share based payment | 5 years | ||||
Number Of Stock Appreciation Rights Granted | shares | 560,156 | ||||
Minimum [Member] | Restricted Stock | Subsequent Event [Member] | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period under share based payment | 3 years | ||||
Maximum [Member] | Restricted Stock | Subsequent Event [Member] | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period under share based payment | 5 years | ||||
Third Anniversary | Restricted Stock | Subsequent Event [Member] | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted, Number of shares | shares | 153,818 | ||||
Fifth Anniversary [Domain] | Restricted Stock | Subsequent Event [Member] | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | 205,390 | ||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) [Member] | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term granted for options | 5 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 6 months | ||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) [Member] | Minimum [Member] | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period under share based payment | 3 years | ||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) [Member] | Maximum [Member] | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period under share based payment | 5 years | ||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) [Member] | Second Anniversary | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage under share based payment | 25.00% | ||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) [Member] | Third Anniversary | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage under share based payment | 25.00% | ||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) [Member] | Fourth Anniversary | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage under share based payment | 25.00% | ||||
Oppenheimer Holdings 2014 Incentive Plan (OIP) [Member] | Six Months Before Expiration | Class A Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage under share based payment | 25.00% | ||||
Oppenheimer Holdings Inc. Stock Appreciation Right Plan | Stock Appreciation Rights [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period under share based payment | 5 years | ||||
Executive Deferred Compensation Plan and Deferred Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Liability Percentage offset by Company Owned Life Insurance | 60.00% | ||||
Company's deferred compensation liability | $ 46,500,000 | ||||
CIBC Deferred Compensation Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Company's deferred compensation liability | $ 15,600,000 |
Employee Compensation Plans -_4
Employee Compensation Plans - Schedule of Stock Compensation Assumptions Used (Details) - Stock Appreciation Rights (SARs) [Member] | Dec. 31, 2018USD ($) |
January Five Two Thousand Eighteen [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 4 years |
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights Fair Value Assumptions Expected Volatility Rate | 33.027% |
Share-based Compensation Arrangement by Cash Payment Award Stock Appreciation Rights, Fair Value Assumptions, Risk Free Interest Rate | 2.49% |
Share-based Compensation Arrangement by Cash Payment Award Stock Appreciation Rights, Fair Value Assumptions, Expected Dividend Payments | $ 0.44 |
January Six Two Thousand Seventeen [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 3 years |
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights Fair Value Assumptions Expected Volatility Rate | 29.016% |
Share-based Compensation Arrangement by Cash Payment Award Stock Appreciation Rights, Fair Value Assumptions, Risk Free Interest Rate | 2.462% |
Share-based Compensation Arrangement by Cash Payment Award Stock Appreciation Rights, Fair Value Assumptions, Expected Dividend Payments | $ 0.44 |
January Six Two Thousand Sixteen | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 2 years |
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights Fair Value Assumptions Expected Volatility Rate | 26.671% |
Share-based Compensation Arrangement by Cash Payment Award Stock Appreciation Rights, Fair Value Assumptions, Risk Free Interest Rate | 2.483% |
Share-based Compensation Arrangement by Cash Payment Award Stock Appreciation Rights, Fair Value Assumptions, Expected Dividend Payments | $ 0.44 |
January Nine Two Thousand Fifteen [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 1 year |
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights Fair Value Assumptions Expected Volatility Rate | 27.634% |
Share-based Compensation Arrangement by Cash Payment Award Stock Appreciation Rights, Fair Value Assumptions, Risk Free Interest Rate | 2.587% |
Share-based Compensation Arrangement by Cash Payment Award Stock Appreciation Rights, Fair Value Assumptions, Expected Dividend Payments | $ 0.44 |
January Fourteen Two Thousand Fourteen [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 13 days |
Share Based Compensation Arrangement By Cash Payment Award Stock Appreciation Rights Fair Value Assumptions Expected Volatility Rate | 28.21% |
Share-based Compensation Arrangement by Cash Payment Award Stock Appreciation Rights, Fair Value Assumptions, Risk Free Interest Rate | 1.213% |
Share-based Compensation Arrangement by Cash Payment Award Stock Appreciation Rights, Fair Value Assumptions, Expected Dividend Payments | $ 0.44 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rental Commitments under Office and Equipment Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Expiration Date | Feb. 28, 2034 |
2,017 | $ 39,684 |
2,018 | 36,851 |
2,019 | 32,858 |
2,020 | 29,604 |
2,021 | 27,356 |
2024 and thereafter | 114,256 |
Total | $ 280,609 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 07, 2019 | |
Loss Contingencies [Line Items] | ||||
Lease Expiration Date | Feb. 28, 2034 | |||
Rent expense | $ 44,700,000 | $ 45,600,000 | $ 44,400,000 | |
Unfunded Commitments | 1,399,000 | |||
Eligible investor subject to future buyback principal value | 7,500,000 | |||
Auction rate securities | ||||
Loss Contingencies [Line Items] | ||||
Total amount of ARS the firm purchased and hold | 40,700,000 | |||
Amount of ARS committed to purchase from clients | 7,300,000 | |||
Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Offer of Settlement with the SEC - SCSD Initiative | $ 3,500,000 | |||
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 | |||
Private Equity Funds [Member] | ||||
Loss Contingencies [Line Items] | ||||
Unfunded Commitments | $ 1,399,000 |
Regulatory Requirements - Addit
Regulatory Requirements - Additional Information (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | |
Oppenheimer | ||
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 | 194,500,000 | |
Excess capital | $ 175,800,000 | |
Aggregate indebtedness | 20.86% | |
Freedom | ||
Regulatory Capital Requirements [Line Items] | ||
Net Capital as Reported in Entity's Part II Unaudited FOCUS Report | $ 5,300,000 | |
Freedom maintain net capital equal to the greater | $ 100,000 | |
Aggregate indebtedness | 6.67% | |
Net capital in excess of minimum required | $ 5,200,000 | |
Oppenheimer Europe Ltd | ||
Regulatory Capital Requirements [Line Items] | ||
Regulatory capital required to be maintained | € | € 730,000 | |
Oppenheimer Investments Asia Ltd. | ||
Regulatory Capital Requirements [Line Items] | ||
Net capital | 1,500,000 | |
Excess Liquid Capital under Hong Kong SFC Rules | 1,100,000 | |
Regulatory capital required to be maintained | $ 383,000 | |
Basel Three New Requirements [Member] | Oppenheimer Europe Ltd | ||
Regulatory Capital Requirements [Line Items] | ||
Common Equity Tier 1 Ratio | 13.37% | 13.37% |
Common Equity Tier 1 Ratio Required | 4.50% | 4.50% |
Tier 1 Capital Ratio | 13.37% | 13.37% |
Tier 1 Capital Ratio Required | 6.00% | 6.00% |
Total Capital Ratio | 13.65% | 13.65% |
Total Capital Ratio Required | 8.00% | 8.00% |
Goodwill and intangibles - Addi
Goodwill and intangibles - Additional Information (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 137,889 | $ 137,889 |
Carrying value of intangibles | $ 32,100 | $ 31,700 |
Segment Information - Reported
Segment Information - Reported Revenue and Profit Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenue | ||||||||||||
Total revenue | $ (243,254) | $ (237,814) | $ (242,556) | $ (234,530) | $ (264,973) | $ (226,220) | $ (215,884) | $ (213,261) | $ (958,154) | $ (920,338) | $ (857,779) | |
Income (loss) before income taxes | ||||||||||||
Income (loss) before income taxes from continuing operations | $ 15,583 | $ 7,144 | $ 12,501 | $ 9,625 | $ 16,570 | $ 11,828 | $ (1,637) | $ (7,025) | 44,853 | 19,736 | (21,892) | |
Private Client Division | ||||||||||||
Revenue | ||||||||||||
Total revenue | [1] | (617,871) | (592,753) | (504,192) | ||||||||
Income (loss) before income taxes | ||||||||||||
Income (loss) before income taxes from continuing operations | [1] | $ 149,097 | $ 128,840 | $ 66,072 | ||||||||
Asset management fees | 90.00% | 90.00% | 77.50% | |||||||||
Asset Management | ||||||||||||
Revenue | ||||||||||||
Total revenue | [1] | $ (71,696) | $ (89,896) | $ (92,852) | ||||||||
Income (loss) before income taxes | ||||||||||||
Income (loss) before income taxes from continuing operations | [1] | $ 18,590 | $ 26,685 | $ 31,412 | ||||||||
Asset management fees | 10.00% | 10.00% | 22.50% | |||||||||
Capital markets | ||||||||||||
Revenue | ||||||||||||
Total revenue | $ (272,719) | $ (231,632) | $ (254,933) | |||||||||
Income (loss) before income taxes | ||||||||||||
Income (loss) before income taxes from continuing operations | (13,416) | (39,978) | (17,713) | |||||||||
Corporate/Other | ||||||||||||
Revenue | ||||||||||||
Total revenue | (4,132) | (6,057) | (5,802) | |||||||||
Income (loss) before income taxes | ||||||||||||
Income (loss) before income taxes from continuing operations | $ (109,418) | $ (95,811) | $ (101,663) | |||||||||
[1] | Clients investing in the OAM advisory program are charged fees based on the value of AUM. Advisory fees were allocated 22.5% to the Asset Management and 77.5% to the Private Client segments. Starting January 1, 2017, the Company determined it was appropriate to change the allocation to 10.0% to the Asset Management and 90.0% to the Private Client segments due to changes in the mix of the business over time and costs associated with it. |
Segment Information - Revenue C
Segment Information - Revenue Classified by Major Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 243,254 | $ 237,814 | $ 242,556 | $ 234,530 | $ 264,973 | $ 226,220 | $ 215,884 | $ 213,261 | $ 958,154 | $ 920,338 | $ 857,779 |
Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 925,127 | 880,602 | 815,231 | ||||||||
Europe/Middle East | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | 29,292 | 36,364 | 39,048 | ||||||||
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total revenue | $ 3,735 | $ 3,372 | $ 3,500 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Narrative) (Details) - Subsequent Event [Member] - $ / shares | Feb. 28, 2019 | Feb. 15, 2019 | Feb. 01, 2019 |
Subsequent Events [Line Items] | |||
Date of announcement of dividend | Feb. 1, 2019 | ||
Quarterly dividend payable amount per share | $ 0.11 | ||
Date of payment of dividend | Feb. 28, 2019 | ||
Date of record of dividend | Feb. 15, 2019 |
Quarterly Information - Schedul
Quarterly Information - Schedule of Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Revenue | $ 243,254 | $ 237,814 | $ 242,556 | $ 234,530 | $ 264,973 | $ 226,220 | $ 215,884 | $ 213,261 | $ 958,154 | $ 920,338 | $ 857,779 | ||||||
Operating Expenses | 227,671 | 230,670 | 230,055 | 224,905 | 248,403 | 214,392 | 217,521 | 220,286 | 913,301 | 900,602 | 879,671 | ||||||
Income (loss) before income taxes from continuing operations | 15,583 | 7,144 | 12,501 | 9,625 | 16,570 | 11,828 | (1,637) | (7,025) | 44,853 | 19,736 | (21,892) | ||||||
Other Income Tax Expense (Benefit), Continuing Operations | 7,316 | 2,083 | 3,662 | 2,916 | (4,598) | 4,425 | (274) | (1,687) | 15,977 | (2,134) | (12,262) | ||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 8,267 | 5,061 | 8,839 | 6,709 | 21,168 | 7,403 | (1,363) | (5,338) | 28,876 | 21,870 | (9,630) | ||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | 29 | 461 | 53 | 587 | 0 | 1,130 | 10,121 | ||||||
Net income | 8,267 | 5,061 | 8,839 | 6,709 | 21,197 | 7,864 | (1,310) | (4,751) | 28,876 | 23,000 | 491 | ||||||
Less net income (loss) attributable to non-controlling interest, net of tax | 6 | (10) | (16) | 4 | 4 | 75 | 9 | 96 | (16) | 184 | 1,652 | ||||||
Net income (loss) attributable to Oppenheimer Holdings Inc. | $ 8,261 | $ 5,071 | $ 8,855 | $ 6,705 | $ 21,193 | $ 7,789 | $ (1,319) | $ (4,847) | $ 28,892 | $ 22,816 | $ (1,161) | ||||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.62 | $ 0.38 | $ 0.67 | $ 0.51 | $ 1.61 | $ 0.56 | $ (0.10) | $ (0.40) | $ 2.18 | $ 1.65 | $ (0.72) | ||||||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | 0 | 0 | 0 | 0 | 0.03 | 0 | 0.04 | 0 | 0.07 | 0.63 | ||||||
Net income (loss) per share | 0.62 | 0.38 | 0.67 | 0.51 | 2 | 1 | 0 | 0 | 2.18 | 1.72 | (0.09) | ||||||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.59 | 0.36 | 0.63 | 0.48 | 1.54 | 0.54 | (0.10) | (0.40) | 2.05 | 1.60 | (0.72) | ||||||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0 | 0 | 0 | 0 | 0.03 | 0 | 0.04 | 0 | 0.07 | 0.63 | ||||||
Earnings Per Share, Diluted | 0.59 | 0.36 | 0.63 | 0.48 | 2 | 1 | 0 | 0 | 2.05 | 1.67 | (0.09) | ||||||
Basic net income per share attributable to Oppenheimer Holdings Inc. | |||||||||||||||||
Dividends per share | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.44 | 0.44 | $ 440 | ||||||
Market price of Class A Stock | |||||||||||||||||
High | 29 | [1] | 17.70 | [1] | 18.25 | [1] | 19.60 | [1] | 34.15 | [2] | 29 | [1] | |||||
Low | $ 17.35 | [1] | $ 15.40 | [1] | $ 15.10 | [1] | $ 15.90 | [1] | $ 23.52 | [2] | $ 15.1 | [1] | |||||
[1] | The price quotations above were obtained from the New York Stock Exchange website. | ||||||||||||||||
[2] | The price quotations above were obtained from the New York Stock Exchange website. |
Supplemental Guarantor Condense
Supplemental Guarantor Condensed Consolidated Financial Statements - Additional Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Jun. 23, 2017 | Apr. 12, 2011 | |
Interest owned by the holding company | 100.00% | ||
6.75% Senior Secured Notes [Member] | Secured Debt [Member] | |||
Debt Instrument, Face Amount | $ 200 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||
8.75% Senior Secured Notes [Member] | Secured Debt [Member] | |||
Debt Instrument, Face Amount | $ 200 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% |
Supplemental Guarantor Conden_2
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 90,675 | $ 48,154 | $ 64,913 | $ 63,364 |
Deposits with clearing organizations | 67,678 | 42,222 | ||
Receivable from brokers, dealers and clearing organizations | 166,493 | 187,115 | ||
Receivable from customers, net of allowance for credit losses of $886 ($769 in 2017) | 720,777 | 848,226 | ||
Income tax receivable | 1,014 | 2,939 | ||
Securities purchased under agreements to resell | 290 | 658 | ||
Securities owned, at fair value | 837,584 | 926,597 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $25,109 and $6,800, respectively ($24,705 and $7,975, respectively, in 2017) | 44,058 | 40,520 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 28,988 | 27,187 | ||
Subordinated loan receivable | 0 | 0 | ||
Intangible assets | 32,100 | 31,700 | ||
Goodwill | 137,889 | 137,889 | ||
Other assets | 112,768 | 145,310 | ||
Deferred tax assets | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Total assets | 2,240,314 | 2,438,517 | ||
Liabilities | ||||
Drafts payable | 16,348 | 42,412 | ||
Bank call loans | 15,000 | 118,300 | ||
Payable to brokers, dealers and clearing organizations | 289,207 | 211,483 | ||
Payable to customers | 336,616 | 385,907 | ||
Securities sold under agreements to repurchase | 484,218 | 586,478 | ||
Securities sold but not yet purchased, at fair value | 85,446 | 94,486 | ||
Accrued compensation | 167,348 | 173,116 | ||
Accounts payable and other liabilities | 87,630 | 92,495 | ||
Income tax payable | 0 | 0 | ||
Senior secured notes, net of debt issuance costs of $904 ($1,163 in 2017) | 199,096 | 198,837 | ||
Subordinated indebtedness | 0 | 0 | ||
Deferred tax liabilities, net | 14,083 | 11,092 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 1,694,992 | 1,914,606 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 545,322 | 523,550 | ||
Non-controlling interest | 0 | 361 | ||
Total stockholders' equity | 545,322 | 523,911 | 513,334 | |
Total liabilities and stockholders' equity | 2,240,314 | 2,438,517 | ||
Allowance for credit losses | 886 | 769 | ||
Amounts pledged | 518,000 | 655,700 | ||
Notes Receivable, Net Accumulated Amortization | 25,109 | 24,705 | ||
Notes Receivable, Net Allowance for Uncollectibles | 6,800 | 7,975 | ||
Net accumulated depreciation | 89,182 | 82,826 | ||
Unamortized debt issuance expense | 904 | 1,163 | ||
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 $886 ($769 in 2017) | 0 | 0 | ||
Income tax receivable | (67,508) | (69,084) | ||
Securities purchased under agreements to resell | 0 | 0 | ||
Securities owned, at fair value | 0 | 0 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $25,109 and $6,800, 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) | (112,558) | ||
Intangible assets | 0 | 0 | ||
Goodwill | 0 | |||
Other assets | 0 | 0 | ||
Deferred tax assets | (18,950) | (21,965) | ||
Investment in subsidiaries | (1,208,541) | (1,130,571) | ||
Intercompany receivables | (26,330) | (135,586) | ||
Total assets | (1,433,887) | (1,469,764) | ||
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 | (9) | 0 | ||
Income tax payable | (67,507) | (69,084) | ||
Senior secured notes, net of debt issuance costs of $904 ($1,163 in 2017) | 0 | 0 | ||
Subordinated indebtedness | (112,558) | (112,558) | ||
Deferred tax liabilities, net | (18,946) | (21,965) | ||
Intercompany payables | (26,334) | (135,586) | ||
Total liabilities | (225,354) | (339,193) | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | (1,208,533) | (1,130,571) | ||
Non-controlling interest | 0 | |||
Total stockholders' equity | (1,208,533) | (1,130,571) | ||
Total liabilities and stockholders' equity | (1,433,887) | (1,469,764) | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 3,826 | 3,716 | 10,284 | 2,586 |
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 $886 ($769 in 2017) | 0 | 0 | ||
Income tax receivable | 23,491 | 26,025 | ||
Securities purchased under agreements to resell | 0 | 0 | ||
Securities owned, at fair value | 1,358 | 1,386 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $25,109 and $6,800, respectively ($24,705 and $7,975, respectively, in 2017) | 0 | 0 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 20,722 | 20,221 | ||
Subordinated loan receivable | 112,558 | 112,558 | ||
Intangible assets | 400 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 2,581 | 2,573 | ||
Deferred tax assets | 455 | 0 | ||
Investment in subsidiaries | 546,704 | 507,747 | ||
Intercompany receivables | 46,840 | 83,437 | ||
Total assets | 758,935 | 757,663 | ||
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 | 31,653 | 33,994 | ||
Income tax payable | 22,189 | 22,189 | ||
Senior secured notes, net of debt issuance costs of $904 ($1,163 in 2017) | 0 | 0 | ||
Subordinated indebtedness | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 17 | ||
Intercompany payables | 26,334 | 62,163 | ||
Total liabilities | 80,176 | 118,363 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 678,759 | 639,300 | ||
Non-controlling interest | 0 | |||
Total stockholders' equity | 678,759 | 639,300 | ||
Total liabilities and stockholders' equity | 758,935 | 757,663 | ||
Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 33,323 | 36,996 | 54,400 | 59,871 |
Deposits with clearing organizations | 67,678 | 42,222 | ||
Receivable from brokers, dealers and clearing organizations | 166,493 | 187,115 | ||
Receivable from customers, net of allowance for credit losses of $886 ($769 in 2017) | 720,777 | 848,226 | ||
Income tax receivable | (702) | 0 | ||
Securities purchased under agreements to resell | 290 | 658 | ||
Securities owned, at fair value | 836,226 | 925,211 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $25,109 and $6,800, respectively ($24,705 and $7,975, respectively, in 2017) | 44,058 | 40,520 | ||
Office facilities, net of accumulated depreciation of $104,065 ($97,118 in 2013) | 8,266 | 6,966 | ||
Subordinated loan receivable | 0 | 0 | ||
Intangible assets | 31,700 | 31,700 | ||
Goodwill | 137,889 | 137,889 | ||
Other assets | 110,052 | 142,604 | ||
Deferred tax assets | 18,494 | 18,463 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany receivables | (6,299) | 0 | ||
Total assets | 2,168,245 | 2,418,570 | ||
Liabilities | ||||
Drafts payable | 16,348 | 42,412 | ||
Bank call loans | 15,000 | 118,300 | ||
Payable to brokers, dealers and clearing organizations | 289,207 | 211,483 | ||
Payable to customers | 336,616 | 385,907 | ||
Securities sold under agreements to repurchase | 484,218 | 586,478 | ||
Securities sold but not yet purchased, at fair value | 85,446 | 94,486 | ||
Accrued compensation | 167,348 | 173,116 | ||
Accounts payable and other liabilities | 55,823 | 51,280 | ||
Income tax payable | 42,878 | 44,455 | ||
Senior secured notes, net of debt issuance costs of $904 ($1,163 in 2017) | 0 | 0 | ||
Subordinated indebtedness | 112,558 | 112,558 | ||
Deferred tax liabilities, net | 33,029 | 33,040 | ||
Intercompany payables | 0 | 73,423 | ||
Total liabilities | 1,638,471 | 1,926,938 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 529,774 | 491,271 | ||
Non-controlling interest | 361 | |||
Total stockholders' equity | 529,774 | 491,632 | ||
Total liabilities and stockholders' equity | 2,168,245 | 2,418,570 | ||
Parent | ||||
ASSETS | ||||
Cash and cash equivalents | 53,526 | 7,442 | 229 | $ 907 |
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 $886 ($769 in 2017) | 0 | 0 | ||
Income tax receivable | 45,733 | 45,998 | ||
Securities purchased under agreements to resell | 0 | 0 | ||
Securities owned, at fair value | 0 | 0 | ||
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $25,109 and $6,800, 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 | 135 | 133 | ||
Deferred tax assets | 1 | 3,502 | ||
Investment in subsidiaries | 661,837 | 622,824 | ||
Intercompany receivables | (14,211) | 52,149 | ||
Total assets | 747,021 | 732,048 | ||
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 | 163 | 7,221 | ||
Income tax payable | 2,440 | 2,440 | ||
Senior secured notes, net of debt issuance costs of $904 ($1,163 in 2017) | 199,096 | 198,837 | ||
Subordinated indebtedness | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Total liabilities | 201,699 | 208,498 | ||
Stockholders' equity | ||||
Stockholders' equity attributable to Oppenheimer Holdings Inc. | 545,322 | 523,550 | $ 510,703 | |
Non-controlling interest | 0 | |||
Total stockholders' equity | 545,322 | 523,550 | ||
Total liabilities and stockholders' equity | $ 747,021 | $ 732,048 |
Supplemental Guarantor Conden_3
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
REVENUES | |||||||||||
Commissions | $ 329,668 | $ 336,620 | $ 377,317 | ||||||||
Investment Advisory Fee Revenue | 314,349 | 320,746 | 269,119 | ||||||||
Investment banking | 115,353 | 78,215 | 81,011 | ||||||||
Sweep Interest Income from FDIC-Insured Bank Deposits | 116,052 | 76,839 | 36,316 | ||||||||
Interest | 52,484 | 48,498 | 47,649 | ||||||||
Principal transactions, net | 14,461 | 23,273 | 20,481 | ||||||||
Other | 15,787 | 36,147 | 25,886 | ||||||||
Total revenue | $ 243,254 | $ 237,814 | $ 242,556 | $ 234,530 | $ 264,973 | $ 226,220 | $ 215,884 | $ 213,261 | 958,154 | 920,338 | 857,779 |
EXPENSES | |||||||||||
Compensation and related expenses | 607,192 | 602,138 | 584,710 | ||||||||
Communications and technology | 74,479 | 71,978 | 70,390 | ||||||||
Occupancy and equipment costs | 61,171 | 61,164 | 60,791 | ||||||||
Clearing and exchange fees | 22,985 | 23,545 | 25,126 | ||||||||
Interest | 46,396 | 28,354 | 19,437 | ||||||||
Other | 101,078 | 113,423 | 119,217 | ||||||||
Total expenses | 227,671 | 230,670 | 230,055 | 224,905 | 248,403 | 214,392 | 217,521 | 220,286 | 913,301 | 900,602 | 879,671 |
Income (loss) before income taxes from continuing operations | 15,583 | 7,144 | 12,501 | 9,625 | 16,570 | 11,828 | (1,637) | (7,025) | 44,853 | 19,736 | (21,892) |
Other Income Tax Expense (Benefit), Continuing Operations | 7,316 | 2,083 | 3,662 | 2,916 | (4,598) | 4,425 | (274) | (1,687) | 15,977 | (2,134) | (12,262) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 8,267 | 5,061 | 8,839 | 6,709 | 21,168 | 7,403 | (1,363) | (5,338) | 28,876 | 21,870 | (9,630) |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 0 | 2,071 | 17,339 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 8,267 | 5,061 | 8,839 | 6,709 | 21,197 | 7,864 | (1,310) | (4,751) | 28,876 | 23,000 | 491 |
Discontinued Operation, Tax Effect of Discontinued Operation | 0 | 941 | 7,218 | ||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | 29 | 461 | 53 | 587 | 0 | 1,130 | 10,121 |
Less net income (loss) attributable to non-controlling interest, net of tax | 6 | (10) | (16) | 4 | 4 | 75 | 9 | 96 | (16) | 184 | 1,652 |
Net income (loss) attributable to Oppenheimer Holdings Inc. | $ 8,261 | $ 5,071 | $ 8,855 | $ 6,705 | $ 21,193 | $ 7,789 | $ (1,319) | $ (4,847) | 28,892 | 22,816 | (1,161) |
Other comprehensive income | (1,417) | 2,263 | 220 | ||||||||
Total comprehensive income | 27,475 | 25,079 | (941) | ||||||||
Eliminations | |||||||||||
REVENUES | |||||||||||
Commissions | 0 | 0 | 0 | ||||||||
Investment Advisory Fee Revenue | (4,418) | (4,120) | (4,215) | ||||||||
Investment banking | 0 | (3,000) | 0 | ||||||||
Sweep Interest Income from FDIC-Insured Bank Deposits | 0 | 0 | 0 | ||||||||
Interest | (8,310) | (9,639) | (10,397) | ||||||||
Principal transactions, net | (54) | 0 | 0 | ||||||||
Other | (438) | (359) | (325) | ||||||||
Total revenue | (13,220) | (17,118) | (14,937) | ||||||||
EXPENSES | |||||||||||
Compensation and related expenses | 0 | 0 | 0 | ||||||||
Communications and technology | 0 | 0 | 0 | ||||||||
Occupancy and equipment costs | (439) | (359) | (325) | ||||||||
Clearing and exchange fees | 0 | 0 | 0 | ||||||||
Interest | (8,309) | (9,639) | (10,397) | ||||||||
Other | (4,418) | (7,120) | (4,215) | ||||||||
Total expenses | (13,166) | (17,118) | (14,937) | ||||||||
Income (loss) before income taxes from continuing operations | 0 | 0 | 0 | ||||||||
Other Income Tax Expense (Benefit), Continuing Operations | 0 | 0 | 0 | ||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | ||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 0 | 0 | |||||||||
Equity in earnings of subsidiaries | (77,285) | (48,588) | (6,294) | ||||||||
Net income | (77,285) | (48,588) | (6,294) | ||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 0 | 0 | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | |||||||||
Less net income (loss) attributable to non-controlling interest, net of tax | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Oppenheimer Holdings Inc. | (77,285) | (48,588) | (6,294) | ||||||||
Other comprehensive income | 0 | 0 | 0 | ||||||||
Total comprehensive income | (77,285) | (48,588) | (6,294) | ||||||||
Guarantor Subsidiaries | |||||||||||
REVENUES | |||||||||||
Commissions | 0 | 0 | 0 | ||||||||
Investment Advisory Fee Revenue | 1,938 | 1,752 | 1,571 | ||||||||
Investment banking | 0 | 0 | 0 | ||||||||
Sweep Interest Income from FDIC-Insured Bank Deposits | 0 | 0 | 0 | ||||||||
Interest | 8,247 | 9,589 | 10,242 | ||||||||
Principal transactions, net | 0 | 17 | 16 | ||||||||
Other | 443 | 361 | 326 | ||||||||
Total revenue | 10,628 | 11,719 | 12,155 | ||||||||
EXPENSES | |||||||||||
Compensation and related expenses | 0 | 0 | 0 | ||||||||
Communications and technology | 0 | 0 | 0 | ||||||||
Occupancy and equipment costs | 0 | 0 | 0 | ||||||||
Clearing and exchange fees | 0 | 0 | 0 | ||||||||
Interest | 0 | 0 | 0 | ||||||||
Other | 4,059 | 1,382 | 1,284 | ||||||||
Total expenses | 4,059 | 1,382 | 1,284 | ||||||||
Income (loss) before income taxes from continuing operations | 6,569 | 10,337 | 10,871 | ||||||||
Other Income Tax Expense (Benefit), Continuing Operations | 2,052 | (12,655) | 3,325 | ||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 4,517 | 22,992 | 7,546 | ||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 0 | 0 | |||||||||
Equity in earnings of subsidiaries | 36,411 | 12,798 | (626) | ||||||||
Net income | 40,928 | 35,790 | 6,920 | ||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 0 | 0 | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | |||||||||
Less net income (loss) attributable to non-controlling interest, net of tax | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Oppenheimer Holdings Inc. | 40,928 | 35,790 | 6,920 | ||||||||
Other comprehensive income | 0 | 0 | 0 | ||||||||
Total comprehensive income | 40,928 | 35,790 | 6,920 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
REVENUES | |||||||||||
Commissions | 329,668 | 336,620 | 377,317 | ||||||||
Investment Advisory Fee Revenue | 316,829 | 323,114 | 271,763 | ||||||||
Investment banking | 115,353 | 81,215 | 81,011 | ||||||||
Sweep Interest Income from FDIC-Insured Bank Deposits | 116,052 | 76,839 | 36,316 | ||||||||
Interest | 52,481 | 48,548 | 47,804 | ||||||||
Principal transactions, net | 14,515 | 23,256 | 20,465 | ||||||||
Other | 15,782 | 36,123 | 25,885 | ||||||||
Total revenue | 960,680 | 925,715 | 860,561 | ||||||||
EXPENSES | |||||||||||
Compensation and related expenses | 605,644 | 600,901 | 583,469 | ||||||||
Communications and technology | 74,316 | 71,818 | 70,266 | ||||||||
Occupancy and equipment costs | 61,610 | 61,523 | 61,116 | ||||||||
Clearing and exchange fees | 22,985 | 23,545 | 25,126 | ||||||||
Interest | 41,205 | 24,253 | 16,709 | ||||||||
Other | 100,229 | 114,192 | 120,261 | ||||||||
Total expenses | 905,989 | 896,232 | 876,947 | ||||||||
Income (loss) before income taxes from continuing operations | 54,691 | 29,483 | (16,386) | ||||||||
Other Income Tax Expense (Benefit), Continuing Operations | 18,296 | 17,631 | (7,291) | ||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 36,395 | 11,852 | (9,095) | ||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 2,071 | 17,339 | |||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 36,395 | 12,982 | 1,026 | ||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 941 | 7,218 | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 1,130 | 10,121 | |||||||||
Less net income (loss) attributable to non-controlling interest, net of tax | (16) | 184 | 1,652 | ||||||||
Net income (loss) attributable to Oppenheimer Holdings Inc. | 36,411 | 12,798 | (626) | ||||||||
Other comprehensive income | (1,417) | 2,263 | 220 | ||||||||
Total comprehensive income | 34,994 | 15,061 | (406) | ||||||||
Parent | |||||||||||
REVENUES | |||||||||||
Commissions | 0 | 0 | 0 | ||||||||
Investment Advisory Fee Revenue | 0 | 0 | 0 | ||||||||
Investment banking | 0 | 0 | 0 | ||||||||
Sweep Interest Income from FDIC-Insured Bank Deposits | 0 | 0 | 0 | ||||||||
Interest | 66 | 0 | 0 | ||||||||
Principal transactions, net | 0 | 0 | 0 | ||||||||
Other | 0 | 22 | 0 | ||||||||
Total revenue | 66 | 22 | 0 | ||||||||
EXPENSES | |||||||||||
Compensation and related expenses | 1,548 | 1,237 | 1,241 | ||||||||
Communications and technology | 163 | 160 | 124 | ||||||||
Occupancy and equipment costs | 0 | 0 | 0 | ||||||||
Clearing and exchange fees | 0 | 0 | 0 | ||||||||
Interest | 13,500 | 13,740 | 13,125 | ||||||||
Other | 1,208 | 4,969 | 1,887 | ||||||||
Total expenses | 16,419 | 20,106 | 16,377 | ||||||||
Income (loss) before income taxes from continuing operations | (16,353) | (20,084) | (16,377) | ||||||||
Other Income Tax Expense (Benefit), Continuing Operations | (4,371) | (7,110) | (8,296) | ||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (11,982) | (12,974) | (8,081) | ||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 0 | 0 | |||||||||
Equity in earnings of subsidiaries | 40,874 | 35,790 | 6,920 | ||||||||
Net income | 28,892 | 22,816 | (1,161) | ||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 0 | 0 | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | |||||||||
Less net income (loss) attributable to non-controlling interest, net of tax | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Oppenheimer Holdings Inc. | 28,892 | 22,816 | (1,161) | ||||||||
Other comprehensive income | 0 | 0 | 0 | ||||||||
Total comprehensive income | $ 28,892 | $ 22,816 | $ (1,161) |
Supplemental Guarantor Conden_4
Supplemental Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operations: | |||
Cash provided by (used in) operating activities | $ 168,570 | $ (16,136) | $ (66,865) |
Cash flows from investing activities | |||
Purchase of furniture, equipment and leasehold improvements | (8,672) | (5,611) | (5,731) |
Proceeds from Sale of Other Assets, Investing Activities | 45,448 | ||
Payments to Acquire Intangible Assets | (400) | 0 | 0 |
Proceeds from Life Insurance Policy | 881 | 1,744 | 0 |
Cash (used in) provided by investing activities | (8,191) | (3,867) | 39,717 |
Cash flows from financing activities | |||
Cash dividends paid on Class A non-voting and Class B voting common stock | (5,833) | (5,836) | (5,887) |
Payments of Ordinary Dividends, Noncontrolling Interest | (372) | (2,448) | (5,740) |
Issuance of Class A non-voting common stock | 70 | 26 | 0 |
Payments for Repurchase of Common Stock | (5,894) | (7,464) | (3,935) |
Payments Related to Tax Withholding for Share-based Compensation | (2,529) | (2,237) | (1,341) |
Proceeds from Issuance of Long-term Debt | 200,000 | ||
Repayments of Long-term Debt | (150,000) | ||
Payments of Debt Issuance Costs | 0 | (1,297) | 0 |
Redemption of senior secured notes | 0 | (150,000) | 0 |
Redemption of senior secured notes | (103,300) | (27,500) | 45,600 |
Cash (used in) provided by financing activities | (117,858) | 3,244 | 28,697 |
Net increase (decrease) in cash and cash equivalents | 42,521 | (16,759) | 1,549 |
Cash and cash equivalents, beginning of year | 48,154 | 64,913 | 63,364 |
Cash and cash equivalents, end of year | 90,675 | 48,154 | 64,913 |
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 | 0 |
Proceeds from Sale of Other Assets, Investing Activities | 0 | ||
Payments to Acquire Intangible Assets | 0 | ||
Proceeds from Life Insurance Policy | 0 | ||
Cash (used in) provided by investing activities | 0 | 0 | 0 |
Cash flows from financing activities | |||
Cash dividends paid on Class A non-voting and Class B voting common stock | 0 | 0 | 0 |
Payments of Ordinary Dividends, Noncontrolling Interest | 0 | 0 | 0 |
Issuance of Class A non-voting common stock | 0 | 0 | |
Payments for Repurchase of Common Stock | 0 | 0 | 0 |
Payments Related to Tax Withholding for Share-based Compensation | 0 | 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 | 0 |
Cash (used in) provided by financing activities | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of year | 0 | 0 | 0 |
Cash and cash equivalents, end of year | 0 | 0 | 0 |
Guarantor Subsidiaries | |||
Cash flows from operations: | |||
Cash provided by (used in) operating activities | 510 | (6,568) | 7,698 |
Cash flows from investing activities | |||
Purchase of furniture, equipment and leasehold improvements | 0 | 0 | 0 |
Proceeds from Sale of Other Assets, Investing Activities | 0 | ||
Payments to Acquire Intangible Assets | (400) | ||
Proceeds from Life Insurance Policy | 0 | ||
Cash (used in) provided by investing activities | (400) | 0 | 0 |
Cash flows from financing activities | |||
Cash dividends paid on Class A non-voting and Class B voting common stock | 0 | 0 | 0 |
Payments of Ordinary Dividends, Noncontrolling Interest | 0 | 0 | 0 |
Issuance of Class A non-voting common stock | 0 | 0 | |
Payments for Repurchase of Common Stock | 0 | 0 | 0 |
Payments Related to Tax Withholding for Share-based Compensation | 0 | 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 | 0 |
Cash (used in) provided by financing activities | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 110 | (6,568) | 7,698 |
Cash and cash equivalents, beginning of year | 3,716 | 10,284 | 2,586 |
Cash and cash equivalents, end of year | 3,826 | 3,716 | 10,284 |
Non-Guarantor Subsidiaries | |||
Cash flows from operations: | |||
Cash provided by (used in) operating activities | 107,790 | 16,411 | (85,048) |
Cash flows from investing activities | |||
Purchase of furniture, equipment and leasehold improvements | (8,672) | (5,611) | (5,731) |
Proceeds from Sale of Other Assets, Investing Activities | 45,448 | ||
Payments to Acquire Intangible Assets | 0 | ||
Proceeds from Life Insurance Policy | 881 | 1,744 | |
Cash (used in) provided by investing activities | (7,791) | (3,867) | 39,717 |
Cash flows from financing activities | |||
Cash dividends paid on Class A non-voting and Class B voting common stock | 0 | 0 | 0 |
Payments of Ordinary Dividends, Noncontrolling Interest | (372) | (2,448) | (5,740) |
Issuance of Class A non-voting common stock | 0 | 0 | |
Payments for Repurchase of Common Stock | 0 | 0 | 0 |
Payments Related to Tax Withholding for Share-based Compensation | 0 | 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 | (103,300) | (27,500) | 45,600 |
Cash (used in) provided by financing activities | (103,672) | (29,948) | 39,860 |
Net increase (decrease) in cash and cash equivalents | (3,673) | (17,404) | (5,471) |
Cash and cash equivalents, beginning of year | 36,996 | 54,400 | 59,871 |
Cash and cash equivalents, end of year | 33,323 | 36,996 | 54,400 |
Parent Company [Member] | |||
Cash flows from investing activities | |||
Payments to Acquire Intangible Assets | 0 | ||
Proceeds from Life Insurance Policy | 0 | ||
Cash flows from financing activities | |||
Payments of Ordinary Dividends, Noncontrolling Interest | 0 | 0 | |
Proceeds from Issuance of Long-term Debt | 200,000 | ||
Parent | |||
Cash flows from operations: | |||
Cash provided by (used in) operating activities | 60,270 | (25,979) | 10,485 |
Cash flows from investing activities | |||
Purchase of furniture, equipment and leasehold improvements | 0 | 0 | 0 |
Proceeds from Sale of Other Assets, Investing Activities | 0 | ||
Cash (used in) provided by investing activities | 0 | 0 | 0 |
Cash flows from financing activities | |||
Cash dividends paid on Class A non-voting and Class B voting common stock | (5,833) | (5,836) | (5,887) |
Payments of Ordinary Dividends, Noncontrolling Interest | 0 | ||
Issuance of Class A non-voting common stock | 70 | 26 | |
Payments for Repurchase of Common Stock | (5,894) | (7,464) | (3,935) |
Payments Related to Tax Withholding for Share-based Compensation | (2,529) | (2,237) | (1,341) |
Repayments of Long-term Debt | (150,000) | ||
Payments of Debt Issuance Costs | (1,297) | ||
Redemption of senior secured notes | 0 | 0 | 0 |
Cash (used in) provided by financing activities | (14,186) | 33,192 | (11,163) |
Net increase (decrease) in cash and cash equivalents | 46,084 | 7,213 | (678) |
Cash and cash equivalents, beginning of year | 7,442 | 229 | 907 |
Cash and cash equivalents, end of year | $ 53,526 | $ 7,442 | $ 229 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 891,586 | |||||||||||
Interest | 52,484 | $ 48,498 | $ 47,649 | |||||||||
Principal transactions, net | (14,461) | (23,273) | (20,481) | |||||||||
Revenues, Excluding Revenue From Contract With Customers, Other | (377) | |||||||||||
Revenues, Excluding Revenue From Contract With Customers | (66,568) | |||||||||||
Revenue | $ (243,254) | $ (237,814) | $ (242,556) | $ (234,530) | $ (264,973) | $ (226,220) | $ (215,884) | $ (213,261) | (958,154) | (920,338) | (857,779) | |
Commissions From Sales And Trading [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 286,211 | |||||||||||
Mutual Fund Income [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 43,457 | |||||||||||
Advisory Fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 314,349 | |||||||||||
Investment Banking, Capital Markets [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 69,758 | |||||||||||
Investment Banking, Advisory [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 45,595 | |||||||||||
Investment Banking, Advisory [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 116,052 | |||||||||||
Other [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 16,164 | |||||||||||
Private Client Division | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 584,236 | |||||||||||
Interest | 37,581 | |||||||||||
Principal transactions, net | 1,125 | |||||||||||
Revenues, Excluding Revenue From Contract With Customers, Other | 2,821 | |||||||||||
Revenues, Excluding Revenue From Contract With Customers | (33,635) | |||||||||||
Revenue | [1] | (617,871) | (592,753) | (504,192) | ||||||||
Private Client Division | Commissions From Sales And Trading [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 154,167 | |||||||||||
Private Client Division | Mutual Fund Income [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 42,514 | |||||||||||
Private Client Division | Advisory Fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 243,474 | |||||||||||
Private Client Division | Investment Banking, Capital Markets [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 13,284 | |||||||||||
Private Client Division | Investment Banking, Advisory [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | |||||||||||
Private Client Division | Investment Banking, Advisory [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 116,052 | |||||||||||
Private Client Division | Other [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 14,745 | |||||||||||
Asset Management Segment [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 71,696 | |||||||||||
Interest | 0 | |||||||||||
Principal transactions, net | 0 | |||||||||||
Revenues, Excluding Revenue From Contract With Customers, Other | 0 | |||||||||||
Revenues, Excluding Revenue From Contract With Customers | 0 | |||||||||||
Revenue | [1] | (71,696) | (89,896) | (92,852) | ||||||||
Asset Management Segment [Member] | Commissions From Sales And Trading [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | |||||||||||
Asset Management Segment [Member] | Mutual Fund Income [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 908 | |||||||||||
Asset Management Segment [Member] | Advisory Fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 70,775 | |||||||||||
Asset Management Segment [Member] | Investment Banking, Capital Markets [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | |||||||||||
Asset Management Segment [Member] | Investment Banking, Advisory [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | |||||||||||
Asset Management Segment [Member] | Investment Banking, Advisory [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | |||||||||||
Asset Management Segment [Member] | Other [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 13 | |||||||||||
Capital markets | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 235,158 | |||||||||||
Interest | 13,739 | |||||||||||
Principal transactions, net | (23,378) | |||||||||||
Revenues, Excluding Revenue From Contract With Customers, Other | (444) | |||||||||||
Revenues, Excluding Revenue From Contract With Customers | (37,561) | |||||||||||
Revenue | (272,719) | (231,632) | (254,933) | |||||||||
Capital markets | Commissions From Sales And Trading [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 131,955 | |||||||||||
Capital markets | Mutual Fund Income [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 13 | |||||||||||
Capital markets | Advisory Fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 67 | |||||||||||
Capital markets | Investment Banking, Capital Markets [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 56,474 | |||||||||||
Capital markets | Investment Banking, Advisory [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 45,595 | |||||||||||
Capital markets | Investment Banking, Advisory [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | |||||||||||
Capital markets | Other [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,054 | |||||||||||
Corporate/Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 496 | |||||||||||
Interest | 1,164 | |||||||||||
Principal transactions, net | (7,792) | |||||||||||
Revenues, Excluding Revenue From Contract With Customers, Other | (2,000) | |||||||||||
Revenues, Excluding Revenue From Contract With Customers | (4,628) | |||||||||||
Revenue | (4,132) | $ (6,057) | $ (5,802) | |||||||||
Corporate/Other | Commissions From Sales And Trading [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 89 | |||||||||||
Corporate/Other | Mutual Fund Income [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 22 | |||||||||||
Corporate/Other | Advisory Fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 33 | |||||||||||
Corporate/Other | Investment Banking, Capital Markets [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | |||||||||||
Corporate/Other | Investment Banking, Advisory [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | |||||||||||
Corporate/Other | Investment Banking, Advisory [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | |||||||||||
Corporate/Other | Other [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 352 | |||||||||||
[1] | Clients investing in the OAM advisory program are charged fees based on the value of AUM. Advisory fees were allocated 22.5% to the Asset Management and 77.5% to the Private Client segments. Starting January 1, 2017, the Company determined it was appropriate to change the allocation to 10.0% to the Asset Management and 90.0% to the Private Client segments due to changes in the mix of the business over time and costs associated with it. |
Revenue Recognition Contract As
Revenue Recognition Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 |
Contracts with Customers Assets and Liabilities [Line Items] | ||
Contract with Customer, Asset, Net | $ 23,680 | $ 21,029 |
Contract with Customer, Liability | 318 | 0 |
Commission [Member] | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Contract with Customer, Asset, Net | 3,738 | 2,007 |
Mutual Fund Income [Member] | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Contract with Customer, Asset, Net | 7,241 | 7,779 |
Advisory Fees [Member] | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Contract with Customer, Asset, Net | 1,214 | 1,460 |
Bank Deposit Sweep Income [Member] | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Contract with Customer, Asset, Net | 4,622 | 3,459 |
Investment Banking Fees [Member] | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Contract with Customer, Asset, Net | 3,996 | 3,926 |
Other | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Contract with Customer, Asset, Net | 2,869 | 2,398 |
Investment Banking Fees [Member] | ||
Contracts with Customers Assets and Liabilities [Line Items] | ||
Contract with Customer, Liability | $ 318 | $ 0 |
Revenue Recognition Narrative (
Revenue Recognition Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, Net | $ 23,680 | $ 21,029 |
Capitalized Contract Cost, Net | $ 1,600 |