Jones Financial Companies LLLP (JNFC) 10-Q 5 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 24, 2016	Jul. 29, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 24, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	JNFC
Entity Registrant Name	JONES FINANCIAL COMPANIES LLLP
Entity Central Index Key	815,917
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Limited Partnership Interests Outstanding		907,919

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) (Parenthetical) - $ / shares	3 Months Ended			6 Months Ended
	Jun. 24, 2016	Jun. 26, 2015		Jun. 24, 2016	Jun. 26, 2015
Income Statement [Abstract]
Limited partnership interest value	$ 1,000	$ 1,000	[1]	$ 1,000	$ 1,000
[1]	1,000

Consolidated Statements of Fina

Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Millions	Jun. 24, 2016	Dec. 31, 2015
ASSETS:
Cash and cash equivalents	$ 883	$ 937
Cash and investments segregated under federal regulations	10,082	9,982
Securities purchased under agreements to resell	597	843
Receivable from:
Clients	3,131	3,060
Mutual funds, insurance companies and other	497	450
Brokers, dealers and clearing organizations	222	160
Securities owned, at fair value:
Investment securities	202	201
Inventory securities	68	36
Equipment, property and improvements, at cost, net of accumulated depreciation and amortization	552	559
Other assets	120	128
TOTAL ASSETS	16,354	16,356
Payable to:
Clients	12,741	12,499
Brokers, dealers and clearing organizations	111	71
Accrued compensation and employee benefits	785	994
Accounts payable, accrued expenses and other	224	182
Total liabilities before partnership capital	13,861	13,746
Contingencies (Note 5)
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	2,375	2,348
Reserve for anticipated withdrawals	118	262
Total partnership capital subject to mandatory redemption	2,493	2,610
TOTAL LIABILITIES	16,354	16,356
Limited Partnership Capital [Member]
Payable to:
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	910	916
Subordinated Limited Partnership Capital [Member]
Payable to:
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	420	368
General Partnership Capital [Member]
Payable to:
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	$ 1,045	$ 1,064

Consolidated Statements of Inc4

Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 24, 2016	Jun. 26, 2015
Fee revenue
Asset-based	$ 891	$ 864	$ 1,721	$ 1,684
Account and activity	181	168	361	332
Total fee revenue	1,072	1,032	2,082	2,016
Trade revenue	546	614	1,068	1,240
Interest and dividends	48	38	91	74
Other revenue	13	15	17	23
Total revenue	1,679	1,699	3,258	3,353
Interest expense	19	18	37	37
Net revenue	1,660	1,681	3,221	3,316
Operating expenses:
Compensation and benefits	1,155	1,184	2,239	2,330
Occupancy and equipment	99	94	196	189
Communications and data processing	74	73	143	142
Professional and consulting fees	28	19	53	34
Advertising	17	15	39	34
Postage and shipping	12	13	25	26
Other operating expenses	67	61	127	125
Total operating expenses	1,452	1,459	2,822	2,880
Income before allocations to partners	208	222	399	436
Allocations to partners:
Limited partners	28	32	54	63
Subordinated limited partners	25	25	48	49
General partners	155	165	297	324
Net Income	$ 0	$ 0	$ 0	$ 0
Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding	$ 30.80	$ 34.83	$ 59.10	$ 68.37
Weighted average $1,000 equivalent limited partnership units outstanding	910,682	923,026	912,437	924,484

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 24, 2016	Jun. 26, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 0	$ 0
Adjustments to reconcile net income to net cash provided by operating activities:
Income before allocations to partners	399	436
Depreciation and amortization	40	40
Changes in assets and liabilities:
Cash and investments segregated under federal regulations	(100)	137
Securities purchased under agreements to resell	246	134
Net payable to clients	171	(294)
Net receivable from brokers, dealers and clearing organizations	(22)	42
Receivable from mutual funds, insurance companies and other	(47)	(52)
Securities owned	(33)	(79)
Other assets	8	5
Accrued compensation and employee benefits	(209)	(203)
Accounts payable, accrued expenses and other	43	94
Net cash provided by operating activities	496	260
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment, property and improvements, net	(34)	(42)
Net cash used in investing activities	(34)	(42)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of partnership interests	69	350
Redemption of partnership interests	(162)	(140)
Distributions from partnership capital	(423)	(421)
Net cash used in financing activities	(516)	(211)
Net (decrease) increase in cash and cash equivalents	(54)	7
CASH AND CASH EQUIVALENTS:
Beginning of period	937	1,033
End of period	883	1,040
Cash paid for interest	37	37
Cash paid for taxes	7	9
NON-CASH ACTIVITIES:
Issuance of general partnership interests through partnership loans in current period	146	119
Repayment of partnership loans through distributions from partnership capital in current period	$ 79	$ 83

Introduction and Basis of Prese

Introduction and Basis of Presentation	6 Months Ended
	Jun. 24, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Introduction and Basis of Presentation	NOTE 1 – INTRODUCTION AND BASIS OF PRESENTATION The accompanying Consolidated Financial Statements include the accounts of The Jones Financial Companies, L.L.L.P. and all wholly-owned subsidiaries (collectively, the “Partnership”). All material intercompany balances and transactions have been eliminated in consolidation. Non-controlling minority interests are accounted for under the equity method. The results of the Partnership’s subsidiaries in Canada for the three and six month periods ended May 31, 2016 and 2015 are included in the Partnership’s Consolidated Financial Statements because of the timing of the Partnership’s financial reporting process. The Partnership’s principal operating subsidiary, Edward D. Jones & Co., L.P. (“Edward Jones”), is a registered broker-dealer and investment adviser in the United States (“U.S.”) and one of Edward Jones’ subsidiaries is a registered securities dealer in Canada. Through these entities, the Partnership primarily serves individual investors in the U.S. and Canada. Edward Jones primarily derives its revenues from the retail brokerage business through the distribution of mutual fund shares, fees related to assets held by and account services provided to its clients, including investment advisory services, the purchase or sale of securities and insurance products, and principal transactions. The Partnership conducts business throughout the U.S. and Canada with its clients, various brokers, dealers, clearing organizations, depositories and banks. Trust services are offered to Edward Jones’ U.S. clients through Edward Jones Trust Company (“Trust Co.”), a wholly-owned subsidiary of the Partnership. Olive Street Investment Advisers, L.L.C. ("Olive Street"), a wholly-owned subsidiary of the Partnership, provides investment advisory services to the sub-advised mutual funds in the Bridge Builder Trust (the "Trust"). The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the U.S. (“GAAP”) which require the use of certain estimates by management in determining the Partnership’s assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The Partnership has evaluated subsequent events through the date these Consolidated Financial Statements were issued and identified no matters requiring disclosure. The interim financial information included herein is unaudited. However, in the opinion of management, such information includes all adjustments, consisting primarily of normal recurring accruals, which are necessary for a fair presentation of the results of interim operations. Certain prior period amounts have been reclassified to conform to the current period presentation. There have been no material changes to the Partnership’s significant accounting policies as described in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2015 (“Annual Report”). The results of operations for the three and six month periods ended June 24, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016. These Consolidated Financial Statements should be read in conjunction with the Annual Report.

Fair Value

Fair Value	6 Months Ended
	Jun. 24, 2016
Fair Value Disclosures [Abstract]
Fair Value	NOTE 2 – FAIR VALUE Substantially all of the Partnership’s financial assets and financial liabilities covered under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 820, Fair Value Measurement and Disclosure Fair value of a financial instrument is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, also known as the “exit price.” Financial assets are marked to bid prices and financial liabilities are marked to offer prices. The Partnership’s financial assets and financial liabilities recorded at fair value in the Consolidated Statements of Financial Condition are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820 with the related amount of subjectivity associated with the inputs to value these assets and liabilities at fair value for each level, are as follows: Level I – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets and liabilities categorized as Level I generally are U.S. treasuries, investments in publicly traded mutual funds with quoted market prices, equities listed in active markets and government and agency obligations. Level II – Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with related market data at the measurement date and for the duration of the instrument’s anticipated life. The Partnership uses the market approach valuation technique which incorporates third-party pricing services and other relevant observable information (such as market interest rates, yield curves, prepayment risk and credit risk generated by market transactions involving identical or comparable assets or liabilities) in valuing these types of investments. When third-party pricing services are used, the methods and assumptions used are reviewed by the Partnership. The types of assets and liabilities categorized as Level II generally are certificates of deposit, state and municipal obligations, and corporate bonds and notes. Level III – Inputs are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the inputs to the model. The Partnership did not have any assets or liabilities categorized as Level III during the six and twelve month periods ended June 24, 2016 and December 31, 2015, respectively. In addition, there were no transfers into or out of Levels I, II or III during these periods. The following tables show the Partnership’s financial assets measured at fair value: Financial Assets at Fair Value as of June 24, 2016 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 150 $ — $ 150 Investments segregated under federal regulations: U.S. treasuries $ 2,401 $ — $ — $ 2,401 Certificates of deposit — 300 — 300 Total investments segregated under federal regulations $ 2,401 $ 300 $ — $ 2,701 Securities owned: Investment securities: Mutual funds (1) $ 192 $ — $ — $ 192 Equities 5 — — 5 Government and agency obligations 4 — — 4 Corporate bonds and notes — 1 — 1 Total investment securities $ 201 $ 1 $ — $ 202 Inventory securities: State and municipal obligations $ — $ 33 $ — $ 33 Mutual funds 14 — — 14 Certificates of deposit — 13 — 13 Equities 6 — — 6 Corporate bonds and notes — 2 — 2 Total inventory securities $ 20 $ 48 $ — $ 68 (1) The mutual funds balance consists primarily of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan. Financial Assets at Fair Value as of December 31, 2015 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 150 $ — $ 150 Investments segregated under federal regulations: U.S. treasuries $ 2,706 $ — $ — $ 2,706 Certificates of deposit — 300 — 300 Total investments segregated under federal regulations $ 2,706 $ 300 $ — $ 3,006 Securities owned: Investment securities: Mutual funds $ 192 $ — $ — $ 192 Equities 4 — — 4 Government and agency obligations 4 — — 4 Corporate bonds and notes — 1 — 1 Total investment securities $ 200 $ 1 $ — $ 201 Inventory securities: Equities $ 17 $ — $ — $ 17 State and municipal obligations — 11 — 11 Mutual funds 7 — — 7 Corporate bonds and notes — 1 — 1 Total inventory securities $ 24 $ 12 $ — $ 36

Partnership Capital

Partnership Capital	6 Months Ended
	Jun. 24, 2016
Other Liabilities Disclosure [Abstract]
Partnership Capital	NOTE 3 – PARTNERSHIP CAPITAL The Partnership makes loans available to those general partners and, in limited circumstances, subordinated limited partners, in each case, other than members of the Executive Committee (as defined in the Partnership’s Nineteenth Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated June 6, 2014 (the “Partnership Agreement”)), who require financing for some or all of their Partnership capital contributions. In limited circumstances a general partner may withdraw from the Partnership and become a subordinated limited partner while he or she still has an outstanding Partnership loan. It is anticipated that, of the future general and subordinated limited partnership capital contributions (in each case, other than for Executive Committee members) requiring financing, the majority will be financed through Partnership loans. Loans made by the Partnership to such partners are generally for a period of one year but are expected to be renewed and bear interest at the interest rate defined in the loan documents. The Partnership recognizes interest income for the interest earned related to these loans. The outstanding amount of Partnership loans is reflected as a reduction to total Partnership capital. As of June 24, 2016 and December 31, 2015, the outstanding amount of Partnership loans was $285 and $218, respectively. Interest income earned from these loans, which is included in interest and dividends in the Consolidated Statements of Income, was $3 and $5 for the three and six month periods ended June 24, 2016, respectively, and $2 and $4 for the three and six month periods ended June 26, 2015, respectively. The following table shows the roll forward of outstanding Partnership loans for: Six Months Ended June 24, June 26, 2016 2015 Partnership loans outstanding at beginning of period $ 218 $ 198 Partnership loans issued during the period 146 119 Repayment of Partnership loans during the period (79 ) (83 ) Total Partnership loans outstanding $ 285 $ 234 The minimum 7.5% annual payment on the face amount of limited partnership capital was $17 and $34 for the three and six month periods ended June 24, 2016, respectively, and $18 and $35 for the three and six month periods ended June 26, 2015, respectively. These amounts are included as a component of interest expense in the Consolidated Statements of Income. The Partnership filed a Registration Statement on Form S-8 with the U.S. Securities and Exchange Commission (“SEC”) on January 17, 2014, to register $350 in Interests to be issued pursuant to the Partnership’s 2014 Employee Limited Partnership Interest Purchase Plan (the “Plan”). The Partnership has previously issued approximately $292 of Interests in connection with the Plan. The remaining $58 of Interests may be issued in connection with the Plan at the discretion of the Partnership in the future.

Net Capital Requirements

Net Capital Requirements	6 Months Ended
	Jun. 24, 2016
Brokers And Dealers [Abstract]
Net Capital Requirements	NOTE 4 – NET CAPITAL REQUIREMENTS As a result of its activities as a U.S. broker-dealer, Edward Jones is subject to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), and capital compliance rules of the Financial Industry Regulatory Authority (“FINRA”) Rule 4110. Under the alternative method permitted by the rules, Edward Jones must maintain minimum net capital equal to the greater of $0.25 or 2% of aggregate debit items arising from client transactions. The net capital rules also provide that Edward Jones’ partnership capital may not be withdrawn if resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and FINRA to the extent they exceed defined levels, even though such withdrawals would not cause net capital to be less than minimum requirements. The Partnership’s Canada broker-dealer is a registered securities dealer regulated by the Investment Industry Regulatory Organization of Canada (“IIROC”). Under the regulations prescribed by IIROC, the Partnership’s Canada broker-dealer is required to maintain minimum levels of risk-adjusted capital, which are dependent on the nature of the Partnership’s Canada broker-dealer’s assets and operations. The following table shows the Partnership’s net capital figures for its U.S. and Canada broker-dealers as of: June 24, December 2016 2015 U.S.: Net capital $ 1,129 $ 1,140 Net capital in excess of the minimum required $ 1,071 $ 1,083 Net capital as a percentage of aggregate debit items 38.8 % 40.1 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 22.5 % 26.0 % Canada: Regulatory risk adjusted capital $ 44 $ 24 Regulatory risk adjusted capital in excess of the minimum required to be held by IIROC $ 33 $ 19 Net capital and the related capital percentages may fluctuate on a daily basis. In addition, Trust Co. was in compliance with its regulatory capital requirements as of June 24, 2016 and December 31, 2015.

Contingencies

Contingencies	6 Months Ended
	Jun. 24, 2016
Commitments And Contingencies Disclosure [Abstract]
Contingencies	NOTE 5 – CONTINGENCIES In the normal course of its business, the Partnership is involved, from time to time, in various legal and regulatory matters, including arbitrations, class actions, other litigation, and examinations, investigations and proceedings by governmental authorities and self-regulatory organizations, which may result in losses. In addition, the Partnership provides for potential losses that may arise related to other contingencies. The Partnership assesses its liabilities and contingencies utilizing available information. For those matters where it is probable the Partnership will incur a potential loss and the amount of the loss is reasonably estimable, in accordance with FASB ASC No. 450, Contingencies For such matters where an accrued liability has not been established and the Partnership believes a loss is both reasonably possible and estimable, as well as for matters where an accrued liability has been recorded but for which an exposure to loss in excess of the amount accrued is both reasonably possible and estimable, the current estimated aggregated range of additional possible loss is $0 to $10 as of June 24, 2016. This range of reasonably possible loss does not necessarily represent the Partnership's maximum loss exposure as the Partnership was not able to estimate a range of reasonably possible loss for all matters. Further, the matters underlying any disclosed estimated range will change from time to time, and actual results may vary significantly. While the outcome of these matters is inherently uncertain, based on information currently available, the Partnership believes that its established liabilities at June 24, 2016 are adequate and the liabilities arising from such matters will not have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Partnership. However, based on future developments and the potential unfavorable resolution of these matters, the outcome could be material to the Partnership’s future consolidated operating results for a particular period or periods.

Segment Information

Segment Information	6 Months Ended
	Jun. 24, 2016
Segment Reporting [Abstract]
Segment Information	NOTE 6 – SEGMENT INFORMATION The Partnership has determined it has two operating and reportable segments based upon geographic location, the U.S. and Canada. Canada segment information, as reported in the following table, is based upon the Consolidated Financial Statements of the Partnership's Canada operations. The U.S. segment information is derived from the Consolidated Financial Statements less the Canada segment information as presented. Pre-variable income represents income before variable compensation expense and before allocations to partners. This is consistent with how management views the segments in order to assess performance. The following table shows financial information for the Partnership’s reportable segments: Three Months Ended Six Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 Net revenue: U.S. $ 1,617 $ 1,634 $ 3,137 $ 3,217 Canada 43 47 84 99 Total net revenue $ 1,660 $ 1,681 $ 3,221 $ 3,316 Pre-variable income: U.S. $ 399 $ 442 $ 757 $ 857 Canada (3 ) — (3 ) 4 Total pre-variable income 396 442 754 861 Variable compensation: U.S. 185 215 348 416 Canada 3 5 7 9 Total variable compensation 188 220 355 425 Income (loss) before allocations to partners: U.S. 214 227 409 441 Canada (6 ) (5 ) (10 ) (5 ) Total income before allocations to partners $ 208 $ 222 $ 399 $ 436 The Partnership derived from one mutual fund company, and the funds it advised, 20% of its total revenue for both the three and six month periods ended June 24, 2016 and June 26, 2015. The revenue generated from this company relates to business conducted with the Partnership’s U.S. segment. Significant reductions in revenue due to regulatory reform or other changes to the Partnership’s relationship with this mutual fund company could have a material impact on the Partnership’s results of operations.

Offsetting Assets and Liabiliti

Offsetting Assets and Liabilities	6 Months Ended
	Jun. 24, 2016
Text Block [Abstract]
Offsetting Assets and Liabilities	NOTE 7 – OFFSETTING ASSETS AND LIABILITIES The Partnership does not offset financial instruments in the Consolidated Statements of Financial Condition. However, the Partnership enters into master netting arrangements with counterparties for securities purchased under agreements to resell that are subject to net settlement in the event of default. These agreements create a right of offset for the amounts due to and due from the same counterparty in the event of default or bankruptcy. The following table shows the Partnership's securities purchased under agreements to resell as of: Gross amounts of Gross amounts offset in the Consolidated Statements Net amounts presented Consolidated Statements Gross amounts not offset in the Consolidated Financial Condition recognized assets Financial Condition Financial Condition Financial instruments Securities collateral (1) Net amount Jun 24, 2016 $ 597 — 597 — (597 ) $ — Dec 31, 2015 $ 843 — 843 — (843 ) $ — (1) Actual collateral was greater than 102% of the related assets in U.S. agreements and greater than 100% in Canada agreements for all periods presented.

Adopted and Recently Issued Acc

Adopted and Recently Issued Accounting Standards	6 Months Ended
	Jun. 24, 2016
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Adopted and Recently Issued Accounting Standards	NOTE 8 – ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS In February 2015, the FASB issued Accounting Standards Update ("ASU") No. 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued ASU No. 2014-09, Revenue from Contracts with Customers In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)

Introduction and Basis of Pre14

Introduction and Basis of Presentation (Policies)	6 Months Ended
	Jun. 24, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
The Partnership's Business and Basis of Accounting	The accompanying Consolidated Financial Statements include the accounts of The Jones Financial Companies, L.L.L.P. and all wholly-owned subsidiaries (collectively, the “Partnership”). All material intercompany balances and transactions have been eliminated in consolidation. Non-controlling minority interests are accounted for under the equity method. The results of the Partnership’s subsidiaries in Canada for the three and six month periods ended May 31, 2016 and 2015 are included in the Partnership’s Consolidated Financial Statements because of the timing of the Partnership’s financial reporting process. The Partnership’s principal operating subsidiary, Edward D. Jones & Co., L.P. (“Edward Jones”), is a registered broker-dealer and investment adviser in the United States (“U.S.”) and one of Edward Jones’ subsidiaries is a registered securities dealer in Canada. Through these entities, the Partnership primarily serves individual investors in the U.S. and Canada. Edward Jones primarily derives its revenues from the retail brokerage business through the distribution of mutual fund shares, fees related to assets held by and account services provided to its clients, including investment advisory services, the purchase or sale of securities and insurance products, and principal transactions. The Partnership conducts business throughout the U.S. and Canada with its clients, various brokers, dealers, clearing organizations, depositories and banks. Trust services are offered to Edward Jones’ U.S. clients through Edward Jones Trust Company (“Trust Co.”), a wholly-owned subsidiary of the Partnership. Olive Street Investment Advisers, L.L.C. ("Olive Street"), a wholly-owned subsidiary of the Partnership, provides investment advisory services to the sub-advised mutual funds in the Bridge Builder Trust (the "Trust"). The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the U.S. (“GAAP”) which require the use of certain estimates by management in determining the Partnership’s assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The Partnership has evaluated subsequent events through the date these Consolidated Financial Statements were issued and identified no matters requiring disclosure. The interim financial information included herein is unaudited. However, in the opinion of management, such information includes all adjustments, consisting primarily of normal recurring accruals, which are necessary for a fair presentation of the results of interim operations. Certain prior period amounts have been reclassified to conform to the current period presentation. There have been no material changes to the Partnership’s significant accounting policies as described in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2015 (“Annual Report”). The results of operations for the three and six month periods ended June 24, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016. These Consolidated Financial Statements should be read in conjunction with the Annual Report.
Fair Value	Substantially all of the Partnership’s financial assets and financial liabilities covered under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 820, Fair Value Measurement and Disclosure Fair value of a financial instrument is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, also known as the “exit price.” Financial assets are marked to bid prices and financial liabilities are marked to offer prices. The Partnership’s financial assets and financial liabilities recorded at fair value in the Consolidated Statements of Financial Condition are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by ASC 820 with the related amount of subjectivity associated with the inputs to value these assets and liabilities at fair value for each level, are as follows: Level I – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets and liabilities categorized as Level I generally are U.S. treasuries, investments in publicly traded mutual funds with quoted market prices, equities listed in active markets and government and agency obligations. Level II – Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with related market data at the measurement date and for the duration of the instrument’s anticipated life. The Partnership uses the market approach valuation technique which incorporates third-party pricing services and other relevant observable information (such as market interest rates, yield curves, prepayment risk and credit risk generated by market transactions involving identical or comparable assets or liabilities) in valuing these types of investments. When third-party pricing services are used, the methods and assumptions used are reviewed by the Partnership. The types of assets and liabilities categorized as Level II generally are certificates of deposit, state and municipal obligations, and corporate bonds and notes. Level III – Inputs are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the inputs to the model. The Partnership did not have any assets or liabilities categorized as Level III during the six and twelve month periods ended June 24, 2016 and December 31, 2015, respectively. In addition, there were no transfers into or out of Levels I, II or III during these periods.
Contingencies (ASC No.450)	The Partnership assesses its liabilities and contingencies utilizing available information. For those matters where it is probable the Partnership will incur a potential loss and the amount of the loss is reasonably estimable, in accordance with FASB ASC No. 450, Contingencies

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
	Jun. 24, 2016
Fair Value Disclosures [Abstract]
Partnership's Financial Assets at Fair Value	The following tables show the Partnership’s financial assets measured at fair value: Financial Assets at Fair Value as of June 24, 2016 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 150 $ — $ 150 Investments segregated under federal regulations: U.S. treasuries $ 2,401 $ — $ — $ 2,401 Certificates of deposit — 300 — 300 Total investments segregated under federal regulations $ 2,401 $ 300 $ — $ 2,701 Securities owned: Investment securities: Mutual funds (1) $ 192 $ — $ — $ 192 Equities 5 — — 5 Government and agency obligations 4 — — 4 Corporate bonds and notes — 1 — 1 Total investment securities $ 201 $ 1 $ — $ 202 Inventory securities: State and municipal obligations $ — $ 33 $ — $ 33 Mutual funds 14 — — 14 Certificates of deposit — 13 — 13 Equities 6 — — 6 Corporate bonds and notes — 2 — 2 Total inventory securities $ 20 $ 48 $ — $ 68 (1) The mutual funds balance consists primarily of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan. Financial Assets at Fair Value as of December 31, 2015 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 150 $ — $ 150 Investments segregated under federal regulations: U.S. treasuries $ 2,706 $ — $ — $ 2,706 Certificates of deposit — 300 — 300 Total investments segregated under federal regulations $ 2,706 $ 300 $ — $ 3,006 Securities owned: Investment securities: Mutual funds $ 192 $ — $ — $ 192 Equities 4 — — 4 Government and agency obligations 4 — — 4 Corporate bonds and notes — 1 — 1 Total investment securities $ 200 $ 1 $ — $ 201 Inventory securities: Equities $ 17 $ — $ — $ 17 State and municipal obligations — 11 — 11 Mutual funds 7 — — 7 Corporate bonds and notes — 1 — 1 Total inventory securities $ 24 $ 12 $ — $ 36

Partnership Capital (Tables)

Partnership Capital (Tables)	6 Months Ended
	Jun. 24, 2016
Other Liabilities Disclosure [Abstract]
Roll Forward of Outstanding Partnership Loans	The following table shows the roll forward of outstanding Partnership loans for: Six Months Ended June 24, June 26, 2016 2015 Partnership loans outstanding at beginning of period $ 218 $ 198 Partnership loans issued during the period 146 119 Repayment of Partnership loans during the period (79 ) (83 ) Total Partnership loans outstanding $ 285 $ 234

Net Capital Requirements (Table

Net Capital Requirements (Tables)	6 Months Ended
	Jun. 24, 2016
Brokers And Dealers [Abstract]
Partnership's Net Capital Figures for U.S. and Canada Broker-Dealers	The following table shows the Partnership’s net capital figures for its U.S. and Canada broker-dealers as of: June 24, December 2016 2015 U.S.: Net capital $ 1,129 $ 1,140 Net capital in excess of the minimum required $ 1,071 $ 1,083 Net capital as a percentage of aggregate debit items 38.8 % 40.1 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 22.5 % 26.0 % Canada: Regulatory risk adjusted capital $ 44 $ 24 Regulatory risk adjusted capital in excess of the minimum required to be held by IIROC $ 33 $ 19

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 24, 2016
Segment Reporting [Abstract]
Financial Information for Partnership's Reportable Segments	The following table shows financial information for the Partnership’s reportable segments: Three Months Ended Six Months Ended June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 Net revenue: U.S. $ 1,617 $ 1,634 $ 3,137 $ 3,217 Canada 43 47 84 99 Total net revenue $ 1,660 $ 1,681 $ 3,221 $ 3,316 Pre-variable income: U.S. $ 399 $ 442 $ 757 $ 857 Canada (3 ) — (3 ) 4 Total pre-variable income 396 442 754 861 Variable compensation: U.S. 185 215 348 416 Canada 3 5 7 9 Total variable compensation 188 220 355 425 Income (loss) before allocations to partners: U.S. 214 227 409 441 Canada (6 ) (5 ) (10 ) (5 ) Total income before allocations to partners $ 208 $ 222 $ 399 $ 436

Offsetting Assets and Liabili19

Offsetting Assets and Liabilities (Tables)	6 Months Ended
	Jun. 24, 2016
Text Block [Abstract]
Schedule of Partnership's Securities Purchased Under Agreement to Resell	The following table shows the Partnership's securities purchased under agreements to resell as of: Gross amounts of Gross amounts offset in the Consolidated Statements Net amounts presented Consolidated Statements Gross amounts not offset in the Consolidated Financial Condition recognized assets Financial Condition Financial Condition Financial instruments Securities collateral (1) Net amount Jun 24, 2016 $ 597 — 597 — (597 ) $ — Dec 31, 2015 $ 843 — 843 — (843 ) $ — (1) Actual collateral was greater than 102% of the related assets in U.S. agreements and greater than 100% in Canada agreements for all periods presented.

Fair Value - Additional Informa

Fair Value - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 24, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair value of level III, assets	$ 0	$ 0
Fair value of level III, liabilities	0	0
Transfers between levels I, II and III	$ 0	$ 0

Fair Value - Partnership's Fina

Fair Value - Partnership's Financial Assets at Fair Value (Detail) - USD ($) $ in Millions	Jun. 24, 2016	Dec. 31, 2015
Investments segregated under federal regulations:
Total investments segregated under federal regulations	$ 2,701	$ 3,006
Investment securities:
Total investment securities	202	201
Inventory securities:
Total inventory securities	68	36
Equities [Member]
Investment securities:
Total investment securities	5	4
Inventory securities:
Total inventory securities	6	17
Corporate Bonds and Notes [Member]
Investment securities:
Total investment securities	1	1
Inventory securities:
Total inventory securities	2	1
Government and Agency Obligations [Member]
Investment securities:
Total investment securities	4	4
U.S. Treasuries [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	2,401	2,706
Mutual Funds [Member]
Investment securities:
Total investment securities	192	192
Inventory securities:
Total inventory securities	14	7
State and Municipal Obligations [Member]
Inventory securities:
Total inventory securities	33	11
Level I [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	2,401	2,706
Investment securities:
Total investment securities	201	200
Inventory securities:
Total inventory securities	20	24
Level I [Member] | Equities [Member]
Investment securities:
Total investment securities	5	4
Inventory securities:
Total inventory securities	6	17
Level I [Member] | Corporate Bonds and Notes [Member]
Investment securities:
Total investment securities	0	0
Inventory securities:
Total inventory securities	0	0
Level I [Member] | Government and Agency Obligations [Member]
Investment securities:
Total investment securities	4	4
Level I [Member] | U.S. Treasuries [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	2,401	2,706
Level I [Member] | Mutual Funds [Member]
Investment securities:
Total investment securities	192	192
Inventory securities:
Total inventory securities	14	7
Level I [Member] | State and Municipal Obligations [Member]
Inventory securities:
Total inventory securities	0	0
Level II [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	300	300
Investment securities:
Total investment securities	1	1
Inventory securities:
Total inventory securities	48	12
Level II [Member] | Equities [Member]
Investment securities:
Total investment securities	0	0
Inventory securities:
Total inventory securities	0	0
Level II [Member] | Corporate Bonds and Notes [Member]
Investment securities:
Total investment securities	1	1
Inventory securities:
Total inventory securities	2	1
Level II [Member] | Government and Agency Obligations [Member]
Investment securities:
Total investment securities	0	0
Level II [Member] | U.S. Treasuries [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	0	0
Level II [Member] | Mutual Funds [Member]
Investment securities:
Total investment securities	0	0
Inventory securities:
Total inventory securities	0	0
Level II [Member] | State and Municipal Obligations [Member]
Inventory securities:
Total inventory securities	33	11
Level III [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	0	0
Investment securities:
Total investment securities	0	0
Inventory securities:
Total inventory securities	0	0
Level III [Member] | Equities [Member]
Investment securities:
Total investment securities	0	0
Inventory securities:
Total inventory securities	0	0
Level III [Member] | Corporate Bonds and Notes [Member]
Investment securities:
Total investment securities	0	0
Inventory securities:
Total inventory securities	0	0
Level III [Member] | Government and Agency Obligations [Member]
Investment securities:
Total investment securities	0	0
Level III [Member] | U.S. Treasuries [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	0	0
Level III [Member] | Mutual Funds [Member]
Investment securities:
Total investment securities	0	0
Inventory securities:
Total inventory securities	0	0
Level III [Member] | State and Municipal Obligations [Member]
Inventory securities:
Total inventory securities	0	0
Certificates of Deposit [Member]
Cash equivalents:
Cash and cash equivalents	150	150
Investments segregated under federal regulations:
Total investments segregated under federal regulations	300	300
Inventory securities:
Total inventory securities	13
Certificates of Deposit [Member] | Level I [Member]
Cash equivalents:
Cash and cash equivalents	0	0
Investments segregated under federal regulations:
Total investments segregated under federal regulations	0	0
Inventory securities:
Total inventory securities	0
Certificates of Deposit [Member] | Level II [Member]
Cash equivalents:
Cash and cash equivalents	150	150
Investments segregated under federal regulations:
Total investments segregated under federal regulations	300	300
Inventory securities:
Total inventory securities	13
Certificates of Deposit [Member] | Level III [Member]
Cash equivalents:
Cash and cash equivalents	0	0
Investments segregated under federal regulations:
Total investments segregated under federal regulations	0	$ 0
Inventory securities:
Total inventory securities	$ 0

Partnership Capital - Additiona

Partnership Capital - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 24, 2016	Jun. 26, 2015	Dec. 31, 2015	Jan. 02, 2015	Dec. 31, 2014	Jan. 17, 2014
Partners Capital Account [Line Items]
Period of loans made by Partnership to general partners			1 year
Outstanding amount of partner loans financed through the Partnership	$ 285	$ 234	$ 285	$ 234	$ 218		$ 198
Interest income from outstanding amount of general partner loan	$ 3	$ 2	$ 5	$ 4
Limited partnership's minimum annual payment rate	7.50%	7.50%	7.50%	7.50%
Limited partnership's minimum return, value	$ 17	$ 18	$ 34	$ 35
2014 Limited Partnership Offering [Member]
Partners Capital Account [Line Items]
Limited partnership amount registered								$ 350
Limited partnership interests issued						$ 292
Remaining limited partnership interests that may be issued	$ 58		$ 58

Partnership Capital - Roll Forw

Partnership Capital - Roll Forward of Outstanding Partnership Loans (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 24, 2016	Jun. 26, 2015
Other Liabilities Disclosure [Abstract]
Partnership loans outstanding at beginning of period	$ 218	$ 198
Partnership loans issued during the period	146	119
Repayment of Partnership loans during the period	(79)	(83)
Partnership loans outstanding at end of period	$ 285	$ 234

Net Capital Requirements - Addi

Net Capital Requirements - Additional Information (Detail)	6 Months Ended
	Jun. 24, 2016USD ($)
Net Capital Requirements [Abstract]
Percentage of aggregate debit items arising from customer transactions to maintain minimum net capital requirements	2.00%
Minimum net capital requirements	$ 250,000

Net Capital Requirements - Part

Net Capital Requirements - Partnership's Net Capital Figures for U.S. and Canada Broker-Dealers (Detail) - USD ($) $ in Millions	Jun. 24, 2016	Dec. 31, 2015
United States [Member]
Regulatory Capital Requirements
Net capital	$ 1,129	$ 1,140
Net capital in excess of the minimum required	$ 1,071	$ 1,083
Net capital as a percentage of aggregate debit items	38.80%	40.10%
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items	22.50%	26.00%
Canada [Member]
Regulatory Capital Requirements
Regulatory risk adjusted capital	$ 44	$ 24
Regulatory risk adjusted capital in excess of the minimum required to be held by IIROC	$ 33	$ 19

Contingencies - Additional Info

Contingencies - Additional Information (Detail) $ in Millions	Jun. 24, 2016USD ($)
Minimum [Member]
Loss Contingencies [Line Items]
Current estimated possible loss	$ 0
Maximum [Member]
Loss Contingencies [Line Items]
Current estimated possible loss	$ 10

Segment Information - Additiona

Segment Information - Additional Information (Detail) - Segment	3 Months Ended		6 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 24, 2016	Jun. 26, 2015
Segment Reporting [Abstract]
Number of operating segments			2
Number of reportable segments			2
Partnership's total revenue derived from one mutual fund company	20.00%	20.00%	20.00%	20.00%

Segment Information - Financial

Segment Information - Financial Information for Partnership's Reportable Segments (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 24, 2016	Jun. 26, 2015	Jun. 24, 2016	Jun. 26, 2015
Net revenue:
Total net revenue	$ 1,660	$ 1,681	$ 3,221	$ 3,316
Pre-variable income:
Total pre-variable income	396	442	754	861
Variable compensation:
Total variable compensation	188	220	355	425
Income (loss) before allocations to partners:
Total income before allocations to partners	208	222	399	436
United States [Member]
Net revenue:
Total net revenue	1,617	1,634	3,137	3,217
Pre-variable income:
Total pre-variable income	399	442	757	857
Variable compensation:
Total variable compensation	185	215	348	416
Income (loss) before allocations to partners:
Total income before allocations to partners	214	227	409	441
Canada [Member]
Net revenue:
Total net revenue	43	47	84	99
Pre-variable income:
Total pre-variable income	(3)	0	(3)	4
Variable compensation:
Total variable compensation	3	5	7	9
Income (loss) before allocations to partners:
Total income before allocations to partners	$ (6)	$ (5)	$ (10)	$ (5)

Offsetting Assets and Liabili29

Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Detail) - USD ($) $ in Millions	Jun. 24, 2016	Dec. 31, 2015
Offsetting Securities Purchased Under Agreements To Resell [Abstract]
Securities purchased under agreements to resell, Gross amounts of recognized assets	$ 597	$ 843
Securities purchased under agreements to resell, Gross amounts offset in the Consolidated Statements of Financial Condition	0	0
Securities purchased under agreements to resell, Net amounts presented in the Consolidated Statements of Financial Condition	597	843
Securities purchased under agreements to resell, gross amounts not offset, financial instruments	0	0
Securities purchased under agreements to resell, gross amounts not offset, securities collateral	(597)	(843)
Securities purchased under agreements to resell, Net amount	$ 0	$ 0

Offsetting Assets and Liabili30

Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Parenthetical) (Detail) - Minimum [Member]	Jun. 24, 2016	Dec. 31, 2015
United States [Member]
Offsetting Assets And Liabilities [Line Items]
Actual collateral of related assets	102.00%	102.00%
Canada [Member]
Offsetting Assets And Liabilities [Line Items]
Actual collateral of related assets	100.00%	100.00%