Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 26, 2016 | Jun. 26, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | JNFC | ||
Entity Registrant Name | JONES FINANCIAL COMPANIES LLLP | ||
Entity Central Index Key | 815,917 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Limited Partnership Interests Outstanding | 914,542 | ||
Entity Public Float | $ 0 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS: | ||
Cash and cash equivalents | $ 937 | $ 1,033 |
Cash and investments segregated under federal regulations | 9,982 | 8,848 |
Securities purchased under agreements to resell | 843 | 634 |
Receivable from: | ||
Clients | 3,060 | 2,789 |
Mutual funds, insurance companies and other | 450 | 437 |
Brokers, dealers and clearing organizations | 160 | 122 |
Securities owned, at fair value: | ||
Investment securities | 201 | 161 |
Inventory securities | 36 | 69 |
Equipment, property and improvements, at cost, net of accumulated depreciation and amortization | 559 | 549 |
Other assets | 128 | 128 |
TOTAL ASSETS | 16,356 | 14,770 |
Payable to: | ||
Clients | 12,499 | 11,320 |
Brokers, dealers and clearing organizations | 71 | 88 |
Accrued compensation and employee benefits | 994 | 980 |
Accounts payable, accrued expenses and other | 182 | 164 |
Total liabilities before partnership capital | $ 13,746 | $ 12,552 |
Commitments and contingencies (Notes 11 and 12) | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals | $ 2,348 | $ 1,973 |
Reserve for anticipated withdrawals | 262 | 245 |
Total partnership capital subject to mandatory redemption | 2,610 | 2,218 |
TOTAL LIABILITIES | $ 16,356 | $ 14,770 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fee revenue | |||
Asset-based | $ 3,399 | $ 3,089 | $ 2,523 |
Account and activity | 690 | 617 | 568 |
Total fee revenue | 4,089 | 3,706 | 3,091 |
Trade revenue | 2,425 | 2,460 | 2,439 |
Interest and dividends | 158 | 135 | 134 |
Other revenue | 22 | 32 | 52 |
Total revenue | 6,694 | 6,333 | 5,716 |
Interest expense | 75 | 55 | 59 |
Net revenue | 6,619 | 6,278 | 5,657 |
Operating expenses: | |||
Compensation and benefits | 4,641 | 4,436 | 3,960 |
Occupancy and equipment | 382 | 367 | 356 |
Communications and data processing | 286 | 289 | 292 |
Professional and consulting fees | 87 | 59 | 48 |
Advertising | 69 | 70 | 58 |
Postage and shipping | 51 | 51 | 51 |
Other operating expenses | 265 | 236 | 218 |
Total operating expenses | 5,781 | 5,508 | 4,983 |
Income before allocations to partners | 838 | 770 | 674 |
Allocations to partners: | |||
Limited partners | 121 | 82 | 78 |
Subordinated limited partners | 93 | 87 | 73 |
General partners | 624 | 601 | 523 |
Net income | $ 0 | $ 0 | $ 0 |
Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding | $ 131.42 | $ 129.40 | $ 121.12 |
Weighted average $1,000 equivalent limited partnership units outstanding | 921,747 | 636,481 | 644,856 |
Consolidated Statements of Inc4
Consolidated Statements of Income (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||||||||||
Limited partnership interest value | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partnership Capital Subject to Mandatory Redemption - USD ($) $ in Millions | Total | Limited Partnership Capital [Member] | Subordinated Limited Partnership Capital [Member] | General Partnership Capital [Member] |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION, at Dec. 31, 2012 | $ 1,983 | $ 696 | $ 302 | $ 985 |
Reserve for anticipated withdrawals at Dec. 31, 2012 | (171) | (45) | (19) | (107) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2012 | 1,812 | 651 | 283 | 878 |
Partnership loans outstanding at beginning of year at Dec. 31, 2012 | 170 | 0 | 0 | 170 |
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2012 | 1,982 | 651 | 283 | 1,048 |
Issuance of partnership interests | 135 | 0 | 32 | 103 |
Redemption of partnership interests | (115) | (10) | (10) | (95) |
Income allocated to partners | 674 | 78 | 73 | 523 |
Distributions | (380) | (31) | (49) | (300) |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2013 | 2,081 | 688 | 329 | 1,064 |
Reserve for anticipated withdrawals at Dec. 31, 2013 | (223) | (48) | (24) | (151) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2013 | 1,858 | 640 | 305 | 913 |
Partnership loans outstanding at end of year at Dec. 31, 2013 | 215 | 0 | 0 | 215 |
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2013 | 2,073 | 640 | 305 | 1,128 |
Total partnership capital, including capital financed with partnership loans at Dec. 31, 2013 | 2,296 | 688 | 329 | 1,279 |
Partnership loans outstanding, reduction to arrive at Partnership Capital | (215) | 0 | 0 | (215) |
Issuance of partnership interests | 141 | 0 | 47 | 94 |
Redemption of partnership interests | (125) | (8) | (16) | (101) |
Income allocated to partners | 770 | 82 | 87 | 601 |
Distributions | (443) | (30) | (60) | (353) |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2014 | 2,218 | 684 | 362 | 1,172 |
Reserve for anticipated withdrawals at Dec. 31, 2014 | (245) | (52) | (27) | (166) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2014 | 1,973 | 632 | 335 | 1,006 |
Partnership loans outstanding at end of year at Dec. 31, 2014 | 198 | 0 | 1 | 197 |
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2014 | 2,171 | 632 | 336 | 1,203 |
Total partnership capital, including capital financed with partnership loans at Dec. 31, 2014 | 2,416 | 684 | 363 | 1,369 |
Partnership loans outstanding, reduction to arrive at Partnership Capital | (198) | 0 | (1) | (197) |
Issuance of partnership interests | 471 | 296 | 43 | 132 |
Redemption of partnership interests | (161) | (12) | (9) | (140) |
Income allocated to partners | 838 | 121 | 93 | 624 |
Distributions | (491) | (47) | (67) | (377) |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2015 | 2,610 | 990 | 394 | 1,226 |
Reserve for anticipated withdrawals at Dec. 31, 2015 | (262) | (74) | (26) | (162) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2015 | 2,348 | 916 | 368 | 1,064 |
Partnership loans outstanding at end of year at Dec. 31, 2015 | 218 | |||
Total partnership capital, including capital financed with partnership loans at Dec. 31, 2015 | 2,828 | $ 990 | 396 | 1,442 |
Partnership loans outstanding, reduction to arrive at Partnership Capital | $ (218) | $ (2) | $ (216) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 0 | $ 0 | $ 0 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Income before allocations to partners | 838 | 770 | 674 |
Depreciation and amortization | 83 | 82 | 82 |
Changes in assets and liabilities: | |||
Cash and investments segregated under federal regulations | (1,134) | (413) | (720) |
Securities purchased under agreements to resell | (209) | 392 | 67 |
Net payable to clients | 908 | 235 | 487 |
Net receivable from brokers, dealers and clearing organizations | (55) | 35 | 55 |
Receivable from mutual funds, insurance companies and other | (13) | (32) | (50) |
Securities owned | (7) | 13 | (57) |
Other assets | (33) | 4 | |
Accrued compensation and employee benefits | 14 | 137 | 178 |
Accounts payable, accrued expenses and other | 19 | 20 | (11) |
Net cash provided by operating activities | 444 | 1,206 | 709 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of equipment, property and improvements, net | (94) | (90) | (84) |
Net cash used in investing activities | (94) | (90) | (84) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of subordinated liabilities | (50) | (50) | |
Issuance of partnership interests (net of partnership loans) | 352 | 55 | 40 |
Redemption of partnership interests | (161) | (125) | (115) |
Distributions from partnership capital (net of partnership loans) | (637) | (563) | (490) |
Issuance of partnership loans | (11) | ||
Net cash used in financing activities | (446) | (683) | (626) |
Net (decrease) increase in cash and cash equivalents | (96) | 433 | (1) |
CASH AND CASH EQUIVALENTS: | |||
Beginning of year | 1,033 | 600 | 601 |
End of year | 937 | 1,033 | 600 |
Cash paid for interest | 75 | 55 | 59 |
Cash paid for taxes (Note 9) | 12 | 10 | 7 |
NON-CASH ACTIVITIES: | |||
Issuance of general partnership interests through partnership loans in current year | 119 | 86 | 95 |
Repayment of partnership loans through distributions from partnership capital in current year | $ 99 | $ 103 | $ 61 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 twelve month periods ended November 30, 2015, 2014 and 2013 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 in the United States (“U.S.”), and one of Edward Jones’ subsidiaries is a registered broker-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. For financial information related to the Partnership’s two operating segments for the years ended December 31, 2015, 2014 and 2013, see Note 13 to the Consolidated Financial Statements. Trust services are offered to Edward Jones’ U.S. clients through Edward Jones Trust Company (“EJTC”), a wholly-owned subsidiary of the Partnership. Investment banking revenue, which is included in trade revenue, is primarily derived from the Partnership's distribution of unit investment trusts and participation in municipal obligations underwriting activities. A small portion of investment banking revenue includes underwriting fee revenue related to underwriting and management fees as well as gross acquisition profit/loss and volume concession revenue, which is earned and collected from the issuer. As of December 31, 2015, the Partnership closed the negotiated municipal obligations underwriting portion of the investment banking business. The revenue and costs associated with the closure were immaterial. 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. Partnership Agreement. Under the terms of the Partnership’s Nineteenth Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated June 6, 2014, as amended (the “Partnership Agreement”), a partner’s capital is required to be redeemed by the Partnership in the event of the partner’s death or withdrawal from the Partnership, subject to compliance with ongoing regulatory capital requirements. In the event of a partner’s death, the Partnership generally redeems the partner’s capital within six months. The Partnership has restrictions in place which govern the withdrawal of capital. Under the terms of the Partnership Agreement, limited partners requesting withdrawal from the Partnership are to be repaid their capital in three equal annual installments beginning no earlier than 90 days after their withdrawal notice is received by the Managing Partner. The capital of general partners requesting withdrawal from the Partnership is converted to subordinated limited partnership capital or, at the discretion of the Managing Partner, redeemed by the Partnership. Subordinated limited partners requesting withdrawal are repaid their capital in six equal annual installments beginning no earlier than 90 days after their request for withdrawal of contributed capital is received by the Managing Partner. The Partnership’s Managing Partner has discretion to waive or modify these withdrawal restrictions and to accelerate the return of capital. All current and future partnership capital is subordinate to all current and future liabilities of the Partnership. The Partnership Agreement includes additional terms. Revenue Recognition. Due to the timing of receipt of information, the Partnership must use estimates in recording the accruals related to certain asset-based fees. These accruals are based on historical trends and are adjusted to reflect market conditions for the period covered. The Partnership’s trade revenue is recorded on a trade date basis. Clients’ securities transactions are recorded on the date they settle. Other forms of revenue are recorded on an accrual basis. The Partnership classifies its revenue into the following categories: Asset-based fee revenue is derived from fees determined by the underlying value of client assets and includes advisory programs, service fees and revenue sharing. Most asset-based fee revenue is generated from fees for investment advisory services within the Partnership’s advisory programs, including in the U.S., Edward Jones Advisory Solutions® (“Advisory Solutions”) and Edward Jones Managed Account Program® (“MAP”) and in Canada, Edward Jones Portfolio Program® and Edward Jones Guided Portfolios®. The Partnership also earns asset-based fee revenue through service fees received under agreements with mutual fund and insurance companies, including revenue related to Edward Jones' ownership interest in Passport Research, Ltd. (“Passport Research”), the investment adviser for two money market funds made available to Edward Jones clients. In addition, the Partnership earns revenue sharing from certain mutual fund and insurance companies. In most cases, this is additional compensation paid by investment advisers, insurance companies or distributors based on a percentage of average assets held by the Partnership’s clients. Account and activity fee revenue includes fees received from mutual fund companies for shareholder accounting services performed by the Partnership and retirement account fees primarily consisting of self-directed individual retirement account custodian account fees. This revenue category also includes other activity-based fee revenue from clients, mutual fund companies and insurance companies. Trade revenue is composed primarily of commissions and principal transactions. Commissions revenue consists of charges to clients for the purchase or sale of mutual fund shares, listed and unlisted equity securities and insurance products. Revenue from principal transactions primarily results from the Partnership’s distribution of and participation in principal trading activities in municipal obligations, over-the-counter corporate obligations, certificates of deposit, unit investment trusts, and government obligations, and from investment banking. Interest and dividends revenue is earned on client margin (loan) account balances, cash and cash equivalents, cash and investments segregated under federal regulations, securities purchased under agreements to resell and partnership loans. For the years ended December 31, 2015, 2014 and 2013, the Partnership earned 20%, 20% and 19%, respectively, of its total revenue from one mutual fund company. The revenue generated from this company related to business conducted with the Partnership’s U.S. segment. Significant reductions in this 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. Foreign Exchange. Assets and liabilities denominated in a foreign currency are translated at the exchange rate at the end of the period. Revenue and expenses denominated in a foreign currency are translated using the average exchange rate for each period. Foreign exchange gains and losses are included in other revenue on the Consolidated Statements of Income. 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 (“ASC 820”), are carried at fair value or at contracted amounts which approximate fair value given the short time to maturity. 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 periods ended December 31, 2015 and 2014. In addition, there were no transfers into or out of Levels I, II or III during these periods. Cash and Cash Equivalents. The Partnership considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and Investments Segregated under Federal Regulations. Cash, investments and the related interest receivable are segregated in special reserve bank accounts for the benefit of U.S. clients pursuant to the Customer Protection Rule 15c3-3 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). . Securities Purchased Under Agreements to Resell. The Partnership participates in short-term resale agreements collateralized by government and agency securities. These transactions are reported as collateralized financing and are carried at cost plus accrued interest. The fair value of the underlying collateral, plus accrued interest, must equal or exceed 102% of the carrying amount of the transaction in U.S. agreements and must equal or exceed 100% in Canada agreements. It is the Partnership’s policy to have such underlying resale agreement collateral delivered to the Partnership or deposited in its accounts at its custodian banks. The Partnership considers these financing receivables to be of good credit quality and, as a result, has not recorded a related allowance for credit loss. In addition, the Partnership considers risk related to these resale agreements to be minimal due to the fact that these resale agreements are fully collateralized. The fair value of the collateral related to these agreements was $858 and $644 as of December 31, 2015 and 2014, respectively, and was not repledged or sold. Collateral. The Partnership reports as assets collateral it has pledged in secured borrowings and other arrangements when the secured party cannot sell or repledge the assets or the Partnership can substitute collateral or otherwise redeem it on short notice. The Partnership does not report collateral it has received in secured lending and other arrangements as an asset when the debtor has the right to redeem or substitute the collateral on short notice. Securities Owned and Sold, Not Yet Purchased . Securities owned and sold, not yet purchased, including inventory securities and investment securities, are recorded on a trade-date basis at fair value which is determined by using quoted market or dealer prices. The Partnership records the related unrealized gains and losses for inventory securities and certain investment securities in trade revenue in the Consolidated Statements of Income. The unrealized gains and losses for investment securities related to the nonqualified deferred compensation plan are recorded in other revenue in the Consolidated Statements of Income. Equipment, Property and Improvements. Equipment, including furniture and fixtures, is recorded at cost and depreciated using straight-line and accelerated methods over estimated useful lives of three to seven years. Buildings are depreciated using the straight-line method over their useful lives, which are estimated at thirty years. Leasehold improvements are amortized based on the term of the lease or the economic useful life of the improvement, whichever is less. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation or amortization is removed from the respective category and any related gain or loss is recorded as other revenue in the Consolidated Statements of Income. The cost of maintenance and repairs is charged against income as incurred, whereas significant enhancements are capitalized. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be fully recoverable. If impairment is indicated, the asset value is written down to its fair value. Non-qualified Deferred Compensation Plan. The Partnership has a non-qualified deferred compensation plan for certain financial advisors. The Partnership has recorded a liability for the future payments due to financial advisors participating in the plan. As the future amounts due to financial advisors change in accordance with plan requirements, the Partnership records the change in future amounts owed to financial advisors as an increase or decrease in accrued compensation in the Consolidated Statements of Financial Condition and compensation and benefits expense in the Consolidated Statements of Income. The Partnership has chosen to hedge this future liability by purchasing securities in an amount similar to the future liability expected to be due in accordance with the plan. These securities are included in investment securities in the Consolidated Statements of Financial Condition and the unrealized gains and losses are recorded in other revenue in the Consolidated Statements of Income. Each period, the net impact of the change in future amounts owed to financial advisors in the non-qualified deferred compensation plan and the change in investment securities are approximately the same, resulting in minimal net impact in the Consolidated Financial Statements. Retirement Transition Plan. The Partnership, in certain circumstances, offers individually tailored retirement transition plans to retiring financial advisors. Each retirement transition plan compensates a retiring financial advisor for successfully providing client transition services in accordance with a retirement and transition employment agreement. Generally, the retirement and transition employment agreement is for five years. During the first two years the retiring financial advisor remains an employee and provides transition services, which include, but are not limited to, the successful transition of client accounts and assets to successor financial advisors, as well as mentoring and providing training and support to successor financial advisors. The financial advisor retires at the end of year two and is subject to a non-compete agreement for three years. Most retiring financial advisors participating in a retirement transition plan are paid ratably over four years. Compensation expense is generally recognized ratably over the two-year transition period which aligns with the service period of the agreement. As of December 31, 2015, $35 was accrued for future payments to advisors who have already started a plan. Successor financial advisors receive reduced compensation on transitioned assets. Lease Accounting. The Partnership enters into lease agreements for certain home office facilities as well as branch office locations. The associated lease expense is recognized on a straight-line basis over the minimum lease terms. Income Taxes. Generally, income taxes have not been provided for in the Consolidated Financial Statements due to the partnership tax structure where each partner is liable for his or her own tax payments. For the jurisdictions in which the Partnership is liable for payments, the income tax provisions are immaterial (see Note 9). Reclassification. Certain prior year balances have been reclassified to conform to the current year presentation. Partnership Capital Subject to Mandatory Redemption. FASB ASC No. 480, Distinguishing Liabilities from Equity (“ASC 480”), established standards for classifying and measuring certain financial instruments with characteristics of both liabilities and equity. Under the provisions of ASC 480, the obligation to redeem a partner’s capital in the event of a partner’s death is one of the criteria requiring capital to be classified as a liability. Since the Partnership Agreement obligates the Partnership to redeem a partner’s capital after a partner’s death, ASC 480 requires all of the Partnership’s equity capital to be classified as a liability. In accordance with ASC 480, income allocable to limited, subordinated limited and general partners is classified as a reduction of income before allocations to partners, which results in a presentation of $0 net income for the years ended December 31, 2015, 2014 and 2013. The financial statement presentations required to comply with ASC 480 do not alter the Partnership’s treatment of income, income allocations or capital for any other purposes. Net income, as defined in the Partnership Agreement, is equivalent to income before allocations to partners on the Consolidated Statements of Income. Such income, if any, for each calendar year is allocated to the Partnership’s three classes of capital in accordance with the formulas prescribed in the Partnership Agreement. Income allocations are based upon partner capital contributions including capital contributions financed with loans from the Partnership. First, limited partners are allocated net income (as defined in the Partnership Agreement) in accordance with the prescribed formula for their share of net income. Limited partners generally do not share in the net loss in any year in which there is a net loss and the Partnership is not dissolved or liquidated. Thereafter, subordinated limited partners and general partners are allocated any remaining net income or net loss based on formulas as defined in the Partnership Agreement. The limited partnership capital subject to mandatory redemption is held by current and former associates and general partners of the Partnership. Limited partners participate in the Partnership’s profits and are paid a minimum 7.5% annual return on the face amount of their capital, in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is held by current and former general partners of the Partnership. Subordinated limited partners receive a percentage of the Partnership’s net income determined in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is subordinated to the limited partnership capital. The general partnership capital subject to mandatory redemption is held by current general partners of the Partnership. General partners receive a percentage of the Partnership’s net income determined in accordance with the Partnership Agreement. The general partnership capital subject to mandatory redemption is subordinated to the limited partnership capital and the subordinated limited partnership capital. Recently Issued Accounting Standards. In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance. The objective of ASU 2014-09 is for a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date of ASU 2014-09 to the first quarter of 2018. An entity can elect to adopt ASU 2014-09 using one of two methods, either full retrospective adoption to each prior reporting period, or recognize the cumulative effect of adoption at the date of initial application. The Partnership is in the process of evaluating the new standard and does not know the effect, if any, ASU 2014-09 will have on the Consolidated Financial Statements or which adoption method will be used. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis 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) 1 |
Receivable from and Payable to
Receivable from and Payable to Clients | 12 Months Ended |
Dec. 31, 2015 | |
Client Receivables And Payables [Abstract] | |
Receivable from and Payable to Clients | NOTE 2 – RECEIVABLE FROM AND PAYABLE TO CLIENTS Receivable from clients is primarily composed of margin loan balances. The value of securities owned by clients and held as collateral for these receivables is not reflected in the Consolidated Financial Statements. Collateral held as of December 31, 2015 and 2014 was $3,954 and $3,595, respectively, and was not repledged or sold. The Partnership considers these financing receivables to be of good credit quality due to the fact that these receivables are primarily collateralized by the related client investments and, as a result, the Partnership considers risk related to these receivables to be minimal. Payable to clients is composed of cash amounts held by the Partnership due to clients. Substantially all amounts payable to clients are subject to withdrawal upon client request. The Partnership pays interest on the vast majority of credit balances in client accounts. |
Receivable from Mutual Funds, I
Receivable from Mutual Funds, Insurance Companies, and Other | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Receivable from Mutual Funds, Insurance Companies, and Other | NOTE 3 – RECEIVABLE FROM MUTUAL FUNDS, INSURANCE COMPANIES AND OTHER The following table shows the Partnership's receivable from mutual funds, insurance companies and other as of December 31, 2015 and 2014: 2015 2014 Asset-based fees from mutual fund and insurance companies $ 211 $ 200 Deposit for Canadian retirement accounts 187 189 Fees for shareholder accounting services 52 48 Total $ 450 $ 437 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 4 – FAIR VALUE The following tables show the Partnership's financial instruments measured at fair value: 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 (1) $ 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 Financial Liabilities at Fair Value as of December 31, 2015 Level I Level II Level III Total Securities sold, not yet purchased (2) Mutual funds $ 3 $ — $ — $ 3 Equities 2 — — 2 Corporate bonds and notes — 1 — 1 Total securities sold, not yet purchased $ 5 $ 1 $ — $ 6 (1) The mutual funds balance consists primarily of securities held to hedge future liabilities related to the non-qualified deferred compensation plan. (2) Securities sold, not yet purchased are included within accounts payable, accrued expenses and other in the Consolidated Statements of Financial Condition. Financial Assets at Fair Value as of December 31, 2014 Level I Level II Level III Total Cash equivalents: Certificate of deposit $ — $ 100 $ — $ 100 Investments segregated under federal regulations: U.S. treasuries $ 1,109 $ — $ — $ 1,109 Certificates of deposit — 225 — 225 Total investments segregated under federal regulations $ 1,109 $ 225 $ — $ 1,334 Securities owned: Investment securities: Mutual funds $ 136 $ — $ — $ 136 Government and agency obligations 19 — — 19 Equities 5 — — 5 Corporate bonds and notes — 1 — 1 Total investment securities $ 160 $ 1 $ — $ 161 Inventory securities: State and municipal obligations $ — $ 40 $ — $ 40 Equities 17 — — 17 Mutual funds 5 — — 5 Certificates of deposit — 3 — 3 Corporate bonds and notes — 2 — 2 Other 1 1 — 2 Total inventory securities $ 23 $ 46 $ — $ 69 Financial Liabilities at Fair Value as of December 31, 2014 Level I Level II Level III Total Securities sold, not yet purchased: Equities $ 2 $ — $ — $ 2 Corporate bonds and notes — 1 — 1 Total securities sold, not yet purchased $ 2 $ 1 $ — $ 3 |
Equipment, Property and Improve
Equipment, Property and Improvements | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Equipment, Property and Improvements | NOTE 5 – EQUIPMENT, PROPERTY AND IMPROVEMENTS The following table shows equipment, property and improvements as of December 31, 2015 and 2014: 2015 2014 Land $ 25 $ 26 Buildings and improvements 886 846 Equipment, furniture and fixtures 611 613 Equipment, property and improvements, at cost 1,522 1,485 Accumulated depreciation and amortization (963 ) (936 ) Equipment, property and improvements, net $ 559 $ 549 Depreciation and amortization expense on equipment, property and improvements of $83, $82 and $82 is included in the Consolidated Statements of Income within the communications and data processing and occupancy and equipment categories for the years ended December 31, 2015, 2014 and 2013, respectively. The Partnership's capital expenditures were $94, $90 and $84 for the years ended 2015, 2014 and 2013, respectively. The capital expenditures in 2015 were primarily related to construction and facilities improvements at the north campus location in St. Louis and branch offices for technology support. The Partnership has purchased Industrial Revenue Bonds issued by St. Louis County related to certain self-constructed and purchased real and personal property. This provides for potential property tax benefits over the life of the bonds (generally 10 years). The Partnership is therefore both the bondholder and the debtor/lessee for these properties. The Partnership has exercised its right to offset the amounts invested in and the obligations for these bonds and has therefore excluded any bond related balances in the Consolidated Statements of Financial Condition. The amount issued as of December 31, 2015 and 2014 was approximately $350 for both periods |
Lines of Credit
Lines of Credit | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Lines of Credit | NOTE 6 – LINES OF CREDIT The following table shows the composition of the Partnership's aggregate bank lines of credit in place as of December 31, 2015 and 2014: 2015 2014 2013 Credit Facility $ 400 $ 400 Uncommitted secured credit facilities 290 365 Total lines of credit $ 690 $ 765 In November 2013, the Partnership entered into an agreement with 12 banks for a five-year $400 committed unsecured revolving line of credit ("2013 Credit Facility"), with an expiration date of November 15, 2018 and replaced a similar credit facility. The 2013 Credit Facility is intended to provide short-term liquidity to the Partnership should the need arise. The 2013 Credit Facility has a tiered interest rate margin based on the Partnership's leverage ratio (ratio of total debt to total capitalization). Borrowings made with a three-day advance notice will have a rate of LIBOR plus a margin ranging from 1.25% to 2.00%. Same day borrowings, which are subject to certain borrowing notification cutoff times, will have a rate consisting of a margin ranging from 0.25% to 1.00% plus the greater of the prime rate, the federal funds effective rate plus 1.00%, or the one-month LIBOR rate plus 1.00%. In accordance with the terms of the 2013 Credit Facility, the Partnership is required to maintain a leverage ratio of no more than 35% and minimum partnership capital, net of reserve for anticipated withdrawals, of at least $1,382 plus 50% of subsequent issuances of partnership capital. As of December 31, 2015, the Partnership was in compliance with all covenants related to the 2013 Credit Facility. The Partnership's uncommitted lines of credit are subject to change at the discretion of the banks and, therefore, due to credit market conditions and the uncommitted nature of these credit facilities, it is possible that these lines of credit could decrease or not be available in the future. In addition, to the extent these banks provide financing to partners for capital contributions, financing available to the Partnership may be reduced. Actual borrowing availability on the uncommitted lines of credit is based on client margin securities and firm-owned securities, which would serve as collateral in the event the Partnership borrowed against these lines. On October 30, 2015, the Partnership's uncommitted lines of credit were reduced by $75 under an agreement with one of the banks. This reduction was not due to the Partnership's financial condition and this bank still participates in the 2013 Credit Facility. There were no amounts outstanding on the 2013 Credit Facility or the uncommitted lines of credit as of December 31, 2015 and 2014. In addition, the Partnership did not have any draws against these lines of credit during the years ended December 31, 2015, 2014 and 2013, respectively. |
Partnership Capital Subject to
Partnership Capital Subject to Mandatory Redemption | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Partnership Capital Subject to Mandatory Redemption | NOTE 7 – PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION The Partnership makes loans available to those general partners who require financing for some or all of their Partnership capital contributions except for members of the Executive Committee (as defined in the Partnership Agreement). 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 a majority of future general and subordinated limited partnership capital contributions (other than for Executive Committee members) requiring financing will be financed through Partnership loans. Loans made by the Partnership to partners are generally for a period of one year but are expected to be renewed and bear interest at the prime rate, as defined in the loan documents. The Partnership recognizes interest income for the interest earned related to these loans. The outstanding amount of Partnership loans financed through the Partnership is reflected as a reduction to total Partnership capital. As of December 31, 2015 and 2014, the outstanding amount of Partnership loans financed through the Partnership was $218 and $198, respectively. Interest income earned from these loans, which is included in interest and dividends in the Consolidated Statements of Income, was $8, $7 and $8 for the years ended December 31, 2015, 2014 and 2013, respectively. The minimum 7.5% annual return on the face amount of limited partnership capital was $69, $48 and $48 for the years ended December 31, 2015, 2014 and 2013, respectively. These amounts are included as a component of interest expense in the Consolidated Statements of Income. The following table shows the roll forward of outstanding Partnership loans for the years ended December 31, 2015 and 2014: 2015 2014 Partnership loans outstanding at beginning of year $ 198 $ 215 Partnership loans issued during the year 119 86 Repayment of Partnership loans during the year (99 ) (103 ) Total Partnership loans outstanding $ 218 $ 198 The Partnership filed a Registration Statement on Form S-8 with the Securities and Exchange Commission ("SEC") on January 17, 2014, to register $350 of Interests to be issued pursuant to the Partnership's 2014 Employee Limited Partnership Interest Purchase Plan (the "Plan"). On January 2, 2015, the Partnership issued $292 of Interests in connection with the Plan. In addition, on January 4, 2016, the Partnership issued additional Interests to individuals participating in retirement transition plans pursuant to 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 | 12 Months Ended |
Dec. 31, 2015 | |
Brokers And Dealers [Abstract] | |
Net Capital Requirements | NOTE 8 – NET CAPITAL REQUIREMENTS As a result of its activities as a broker-dealer, Edward Jones is subject to the net capital provisions of Rule 15c3-1 under the 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 December 31, 2015 and 2014: 2015 2014 U.S.: Net capital $ 1,140 $ 999 Net capital in excess of the minimum required $ 1,083 $ 948 Net capital as a percentage of aggregate debit items 40.1 % 38.9 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 26.0 % 31.1 % Canada: Regulatory risk adjusted capital $ 24 $ 31 Regulatory risk adjusted capital in excess of the minimum required to be held by IIROC $ 19 $ 27 Net capital and the related capital percentages may fluctuate on a daily basis. In addition, EJTC was in compliance with its regulatory capital requirements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9 – INCOME TAXES The Partnership is a pass through entity for federal and state income tax purposes and generally does not incur income taxes. Instead, its earnings and losses are included in the income tax returns of the general and limited partners. However, the Partnership's structure does include certain subsidiaries which are corporations that are subject to income tax. As of December 31, 2015 and 2014, the Partnership's tax basis of net assets and liabilities exceeds the book basis by $203 and $126, respectively. The primary difference between financial statement basis and tax basis is related to the deferral for tax purposes in deducting accrued expenses until they are paid. Since the Partnership is treated as a pass through entity for federal and state income tax purposes, the difference between the tax basis and the book basis of assets and liabilities will impact the future tax liabilities of the partners. The tax differences will not impact the net income of the Partnership. FASB ASC No. 740, Income Taxes, |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | NOTE 10 – EMPLOYEE BENEFIT PLANS The Partnership maintains a profit sharing and 401(k) plan covering all eligible U.S. employees and principals, a Group Registered Retirement Savings Plan covering all eligible Canada employees and principals, and a Deferred Profit Sharing Plan covering all eligible Canada employees. Contributions to the plans are at the discretion of the Partnership. Additionally, participants may contribute on a voluntary basis. The Partnership contributed approximately $169, $158 and $141 for the years ended December 31, 2015, 2014 and 2013, respectively. |
Commitments, Guarantees and Ris
Commitments, Guarantees and Risks | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Risks | NOTE 11 – COMMITMENTS, GUARANTEES AND RISKS The Partnership leases home office and branch office space under numerous non-cancelable operating leases from non-affiliates and financial advisors. Branch offices are leased generally for terms of three to five years. Rent expense is recognized on a straight-line basis over the minimum lease term. Rent and other lease-related expenses were approximately $254, $242, and $234 for the years ended December 31, 2015, 2014 and 2013, respectively. The Partnership's non-cancelable lease commitments greater than one year as of December 31, 2015, are summarized below: 2016 $ 143 2017 39 2018 26 2019 17 2020 11 Thereafter 18 Total $ 254 The Partnership's annual rent expense is greater than its annual future lease commitments because the annual future lease commitments include only non-cancelable lease payments greater than one year. In addition to the commitments discussed above, as of December 31, 2015, the Partnership would have incurred termination fees of approximately $113 in the event the Partnership terminated existing contractual commitments with certain vendors providing ongoing services primarily for information technology, operations and marketing. These termination fees will decrease over the related contract periods, which generally expire within the next three years. As of December 31, 2015, the Partnership also has a revolving unsecured line of credit available (see Note 6). The Partnership provides margin loans to its clients in accordance with Federal Reserve Board Regulation T and FINRA Rule 4210, which loans are collateralized by securities in client accounts. The Partnership could be liable for the margin requirement of its client margin securities transactions. To mitigate this risk, the Partnership monitors required margin levels and requires clients to deposit additional collateral or reduce positions to meet minimum collateral requirements. The Partnership's securities activities involve execution, settlement and financing of various securities transactions for clients. The Partnership may be exposed to risk of loss in the event clients, other brokers and dealers, banks, depositories or clearing organizations are unable to fulfill contractual obligations. The Partnership has controls in place to ensure client activity is monitored and to mitigate the risk of clients' inability to meet their obligations to the Partnership. Therefore, the Partnership considers its potential to make payments under these client transactions to be remote and accordingly, no liability has been recognized for these transactions. Cash balances held at various major U.S. financial institutions, which typically exceed Federal Deposit Insurance Corporation insurance coverage limits, subject the Partnership to a concentration of credit risk. Additionally, the Partnership's Canada broker-dealer may also have cash deposits in excess of the applicable insured amounts. The Partnership regularly monitors the credit ratings of these financial institutions in order to help mitigate the credit risk that exists with the deposits in excess of insured amounts. The Partnership has credit exposure to U.S. government and agency securities which are held as collateral for its resell agreements, investment securities and segregated investments. The Partnership's primary exposure on resell agreements is with the counterparty and the Partnership would only have exposure to U.S. government and agency credit risk in the event of the counterparty's default on the resell agreements. The Partnership provides guarantees to securities clearing houses and exchanges under their standard membership agreements, which require a member to guarantee the performance of other members. Under these agreements, if a member becomes unable to satisfy its obligations to the clearing houses and exchanges, all other members would be required to meet any shortfall. The Partnership's liability under these arrangements is not quantifiable and may exceed the cash and securities it has posted as collateral. However, the Partnership considers the likelihood that the Partnership will be required to make payments under these agreements to be remote. Accordingly, no liability has been recognized for these transactions. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 12 – 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 $1 to $17 as of December 31, 2015. 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 December 31, 2015 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 | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 13 – SEGMENT INFORMATION An operating segment is defined as a component of an entity that has all of the following characteristics: it engages in business activities from which it may earn revenues and incur expenses; its operating results are regularly reviewed by the entity’s chief operating decision-maker (or decision-making group) for resource allocation and to assess performance; and it has discrete financial information available. Operating segments may be combined in certain circumstances into reportable segments for financial reporting. The Partnership has two operating and reportable segments based upon geographic location, the U.S. and Canada. Each segment, in its geographic location, primarily derives revenue 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 listed and unlisted securities and insurance products, and principal transactions. The Partnership evaluates segment performance based upon income (loss) before allocations to partners, as well as income before variable compensation (“pre-variable income”). Variable compensation is determined at the Partnership level for profit sharing and home office associate and branch office administrator bonus amounts, and therefore is allocated to each geographic segment independent of that segment’s individual pre-variable income. Financial advisor bonuses are determined by the overall Partnership’s profitability, as well as the performance of the individual financial advisors. Both income (loss) before allocations to partners and pre-variable income are considered in evaluating segment performance. Long-lived assets are not disclosed because the balances are not used for evaluating segment performance and deciding how to allocate resources to segments. However, total assets for each segment are provided for informational purposes, as well as capital expenditures and depreciation and amortization. The accounting policies of the segments are the same as those described in Note 1 – Summary of Significant Accounting Policies. For computation of segment information, the Partnership allocates costs incurred by the U.S. entity in support of Canada operations to the Canada segment. Canada segment information is based upon the Consolidated Financial Statements of the Partnership’s Canada operations without eliminating intercompany items, such as management fees paid to affiliated entities. The U.S. segment information is derived from the Consolidated Financial Statements less the Canada segment information as presented. This is consistent with how management reviews the segments in order to assess performance. The following table shows financial information for the Partnership’s reportable segments for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Net revenue: U.S. $ 6,432 $ 6,074 $ 5,457 Canada 187 204 200 Total net revenue $ 6,619 $ 6,278 $ 5,657 Net interest and dividends revenue: U.S. $ 81 $ 76 $ 70 Canada 2 4 5 Total net interest and dividends revenue $ 83 $ 80 $ 75 Pre-variable income: U.S. $ 1,650 $ 1,559 $ 1,310 Canada 8 12 7 Total pre-variable income $ 1,658 $ 1,571 $ 1,317 Variable compensation: U.S. $ 803 $ 781 $ 626 Canada 17 20 17 Total variable compensation $ 820 $ 801 $ 643 Income (loss) before allocations to partners: U.S. $ 847 $ 778 $ 684 Canada (9 ) (8 ) (10 ) Total income before allocations to partners $ 838 $ 770 $ 674 Capital expenditures: U.S. $ 93 $ 88 $ 81 Canada 1 2 3 Total capital expenditures $ 94 $ 90 $ 84 Depreciation and amortization: U.S. $ 81 $ 80 $ 80 Canada 2 2 2 Total depreciation and amortization $ 83 $ 82 $ 82 Total assets at year end: U.S. $ 15,897 $ 14,290 $ 13,341 Canada 459 480 454 Total assets $ 16,356 $ 14,770 $ 13,795 Financial advisors at year end: U.S. 13,839 13,287 12,483 Canada 669 713 675 Total financial advisors 14,508 14,000 13,158 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Parties | NOTE 14 – RELATED PARTIES Edward Jones owns a 49.5% limited partnership interest in Passport Research, the investment adviser for two money market funds made available to Edward Jones clients. Approximately 0.1%, 0.03% and 0.1% of the Partnership's total revenues were derived from this limited partnership interest in Passport Research during 2015, 2014 and 2013, respectively. The Partnership has entered into a non-binding letter of intent to acquire the remaining 50.5% of Passport Research from Federated Investment Management Company ("Federated"), the general partner of Passport Research. The transaction is not expected to have a material impact on the Consolidated Financial Statements. Federated approved the transfer on February 18, 2016 and the transfer is expected to be completed in the fourth quarter of 2016, subject to customary regulatory and fund shareholder approvals. As of December 31, 2015, Edward Jones leases approximately 10% of its branch office space from its financial advisors (see Note 11). Rent expense related to these leases approximated $27, $25 and $23 for the years ended December 31, 2015, 2014 and 2013, respectively. These leases are executed and maintained in a similar manner as those entered into with third parties. T he Bridge Builder Trust (the "Trust") was formed to offer additional fund options for Advisory Solutions clients. Olive Street Investment Advisers, L.L.C. ("OLV"), a wholly-owned subsidiary of the Partnership, is the investment adviser to the sub-advised mutual funds in the Trust. OLV has contractually agreed to waive any investment adviser fees above those amounts paid to the sub-advisers. The investment adviser fee revenue earned by OLV, included within advisory programs fees on the Consolidated Statements of Income, is offset by the expense paid to the sub-advisers, included within professional and consulting fees. The total amounts recognized for the years ended December 31, 2015, 2014 and 2013 were $30, $8 and $1, respectively. In the normal course of business, partners and associates of the Partnership and its affiliates use the brokerage services and trust services of the Partnership for the same services as unrelated third parties, with certain discounts on commissions and fees for certain services. The Partnership has included balances arising from such transactions in the Consolidated Financial Statements on the same basis as other clients. The Partnership recognizes interest income for the interest earned from partners who elect to finance a portion or all of their partnership capital contributions through loans made available from the Partnership (see Note 7). |
Quarterly Information
Quarterly Information | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information | NOTE 15 – QUARTERLY INFORMATION (Unaudited) 2015 Quarters Ended Mar 27 Jun 26 Sep 25 Dec 31 Net revenue $ 1,635 $ 1,681 $ 1,645 $ 1,658 Income before allocations to partners $ 214 $ 222 $ 208 $ 194 Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding $ 33.54 $ 34.83 $ 32.67 $ 30.38 2014 Quarters Ended Mar 28 Jun 27 Sep 26 Dec 31 Net revenue $ 1,490 $ 1,564 $ 1,583 $ 1,641 Income before allocations to partners $ 186 $ 194 $ 195 $ 195 Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding $ 31.27 $ 32.67 $ 32.77 $ 32.69 |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Offsetting Assets and Liabilities | NOTE 16 – 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 December 31, 2015 and 2014: Gross Net amounts Gross amounts not offset offset in the presented in the Consolidated Gross Consolidated Consolidated Statements of Financial amounts of Statements of Statements Condition recognized Financial Financial Financial Securities assets Condition Condition instruments collateral (1) Net 2015 $ 843 — 843 — (843 ) $ — 2014 $ 634 — 634 — (634 ) $ — (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. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Statements | THE JONES FINANCIAL COMPANIES, L.L.L.P. (Parent Company Only) CONDENSED STATEMENTS OF FINANCIAL CONDITION December 31, December 31, (Dollars in millions) 2015 2014 ASSETS: Cash and cash equivalents $ 331 $ 119 Investment securities 9 9 Investment in subsidiaries 2,255 2,076 Other assets 15 15 TOTAL ASSETS $ 2,610 $ 2,219 LIABILITIES: Accounts payable and accrued expenses $ — $ 1 Partnership capital subject to mandatory redemption 2,610 2,218 TOTAL LIABILITIES $ 2,610 $ 2,219 THE JONES FINANCIAL COMPANIES, L.L.L.P. (Parent Company Only) CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, (Dollars in millions) 2015 2014 2013 NET REVENUE Subsidiary earnings $ 833 $ 764 $ 667 Management fee income 99 78 76 Other 7 7 9 Total revenue 939 849 752 Interest expense 69 48 48 Net revenue 870 801 704 OPERATING EXPENSES Compensation and benefits 30 30 28 Other operating expenses 2 1 2 Total operating expenses 32 31 30 INCOME BEFORE ALLOCATIONS TO PARTNERS $ 838 $ 770 $ 674 Allocations to partners (838 ) (770 ) (674 ) NET INCOME $ — $ — $ — THE JONES FINANCIAL COMPANIES, L.L.L.P. (Parent Company Only) CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, (Dollars in millions) 2015 2014 2013 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ — $ — $ — Adjustments to reconcile net income to net cash provided by operating activities: Income before allocations to partners 838 770 674 Changes in assets and liabilities: Investment securities — — 4 Investment in subsidiaries (179 ) (267 ) (136 ) Other assets — (3 ) — Accounts payable and accrued expenses (1 ) — 1 Net cash provided by operating activities 658 500 543 CASH FLOWS FROM FINANCING ACTIVITIES: Issuance of partnership interests (net of partnership loans) 352 55 40 Redemption of partnership interests (161 ) (125 ) (115 ) Distributions from partnership capital (net of partnership loans) (637 ) (563 ) (490 ) Issuance of partnership loans — — (11 ) Net cash used in financing activities (446 ) (633 ) (576 ) Net increase (decrease) in cash and cash equivalents 212 (133 ) (33 ) CASH AND CASH EQUIVALENTS: Beginning of year 119 252 285 End of year $ 331 $ 119 $ 252 NON-CASH ACTIVITIES: Issuance of general partnership interests through partnership loans in current period $ 119 $ 86 $ 95 Repayment of partnership loans through distributions from partnership capital in current period $ 99 $ 103 $ 61 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
The Partnership's Business and Basis of Accounting | 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 twelve month periods ended November 30, 2015, 2014 and 2013 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 in the United States (“U.S.”), and one of Edward Jones’ subsidiaries is a registered broker-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. For financial information related to the Partnership’s two operating segments for the years ended December 31, 2015, 2014 and 2013, see Note 13 to the Consolidated Financial Statements. Trust services are offered to Edward Jones’ U.S. clients through Edward Jones Trust Company (“EJTC”), a wholly-owned subsidiary of the Partnership. Investment banking revenue, which is included in trade revenue, is primarily derived from the Partnership's distribution of unit investment trusts and participation in municipal obligations underwriting activities. A small portion of investment banking revenue includes underwriting fee revenue related to underwriting and management fees as well as gross acquisition profit/loss and volume concession revenue, which is earned and collected from the issuer. As of December 31, 2015, the Partnership closed the negotiated municipal obligations underwriting portion of the investment banking business. The revenue and costs associated with the closure were immaterial. 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. |
Partnership Agreement | Partnership Agreement. Under the terms of the Partnership’s Nineteenth Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated June 6, 2014, as amended (the “Partnership Agreement”), a partner’s capital is required to be redeemed by the Partnership in the event of the partner’s death or withdrawal from the Partnership, subject to compliance with ongoing regulatory capital requirements. In the event of a partner’s death, the Partnership generally redeems the partner’s capital within six months. The Partnership has restrictions in place which govern the withdrawal of capital. Under the terms of the Partnership Agreement, limited partners requesting withdrawal from the Partnership are to be repaid their capital in three equal annual installments beginning no earlier than 90 days after their withdrawal notice is received by the Managing Partner. The capital of general partners requesting withdrawal from the Partnership is converted to subordinated limited partnership capital or, at the discretion of the Managing Partner, redeemed by the Partnership. Subordinated limited partners requesting withdrawal are repaid their capital in six equal annual installments beginning no earlier than 90 days after their request for withdrawal of contributed capital is received by the Managing Partner. The Partnership’s Managing Partner has discretion to waive or modify these withdrawal restrictions and to accelerate the return of capital. All current and future partnership capital is subordinate to all current and future liabilities of the Partnership. The Partnership Agreement includes additional terms. |
Revenue Recognition | Revenue Recognition. Due to the timing of receipt of information, the Partnership must use estimates in recording the accruals related to certain asset-based fees. These accruals are based on historical trends and are adjusted to reflect market conditions for the period covered. The Partnership’s trade revenue is recorded on a trade date basis. Clients’ securities transactions are recorded on the date they settle. Other forms of revenue are recorded on an accrual basis. The Partnership classifies its revenue into the following categories: Asset-based fee revenue is derived from fees determined by the underlying value of client assets and includes advisory programs, service fees and revenue sharing. Most asset-based fee revenue is generated from fees for investment advisory services within the Partnership’s advisory programs, including in the U.S., Edward Jones Advisory Solutions® (“Advisory Solutions”) and Edward Jones Managed Account Program® (“MAP”) and in Canada, Edward Jones Portfolio Program® and Edward Jones Guided Portfolios®. The Partnership also earns asset-based fee revenue through service fees received under agreements with mutual fund and insurance companies, including revenue related to Edward Jones' ownership interest in Passport Research, Ltd. (“Passport Research”), the investment adviser for two money market funds made available to Edward Jones clients. In addition, the Partnership earns revenue sharing from certain mutual fund and insurance companies. In most cases, this is additional compensation paid by investment advisers, insurance companies or distributors based on a percentage of average assets held by the Partnership’s clients. Account and activity fee revenue includes fees received from mutual fund companies for shareholder accounting services performed by the Partnership and retirement account fees primarily consisting of self-directed individual retirement account custodian account fees. This revenue category also includes other activity-based fee revenue from clients, mutual fund companies and insurance companies. Trade revenue is composed primarily of commissions and principal transactions. Commissions revenue consists of charges to clients for the purchase or sale of mutual fund shares, listed and unlisted equity securities and insurance products. Revenue from principal transactions primarily results from the Partnership’s distribution of and participation in principal trading activities in municipal obligations, over-the-counter corporate obligations, certificates of deposit, unit investment trusts, and government obligations, and from investment banking. Interest and dividends revenue is earned on client margin (loan) account balances, cash and cash equivalents, cash and investments segregated under federal regulations, securities purchased under agreements to resell and partnership loans. For the years ended December 31, 2015, 2014 and 2013, the Partnership earned 20%, 20% and 19%, respectively, of its total revenue from one mutual fund company. The revenue generated from this company related to business conducted with the Partnership’s U.S. segment. Significant reductions in this 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. |
Foreign Exchange | Foreign Exchange. Assets and liabilities denominated in a foreign currency are translated at the exchange rate at the end of the period. Revenue and expenses denominated in a foreign currency are translated using the average exchange rate for each period. Foreign exchange gains and losses are included in other revenue on the Consolidated Statements of Income. |
Fair Value | 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 (“ASC 820”), are carried at fair value or at contracted amounts which approximate fair value given the short time to maturity. 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 periods ended December 31, 2015 and 2014. In addition, there were no transfers into or out of Levels I, II or III during these periods. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Partnership considers all highly liquid investments with original maturities of three months or less to be cash equivalents. |
Cash and Investments Segregated under Federal Regulations | Cash and Investments Segregated under Federal Regulations. Cash, investments and the related interest receivable are segregated in special reserve bank accounts for the benefit of U.S. clients pursuant to the Customer Protection Rule 15c3-3 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). . |
Securities Purchased Under Agreements to Resell | Securities Purchased Under Agreements to Resell. The Partnership participates in short-term resale agreements collateralized by government and agency securities. These transactions are reported as collateralized financing and are carried at cost plus accrued interest. The fair value of the underlying collateral, plus accrued interest, must equal or exceed 102% of the carrying amount of the transaction in U.S. agreements and must equal or exceed 100% in Canada agreements. It is the Partnership’s policy to have such underlying resale agreement collateral delivered to the Partnership or deposited in its accounts at its custodian banks. The Partnership considers these financing receivables to be of good credit quality and, as a result, has not recorded a related allowance for credit loss. In addition, the Partnership considers risk related to these resale agreements to be minimal due to the fact that these resale agreements are fully collateralized. The fair value of the collateral related to these agreements was $858 and $644 as of December 31, 2015 and 2014, respectively, and was not repledged or sold. |
Collateral | Collateral. The Partnership reports as assets collateral it has pledged in secured borrowings and other arrangements when the secured party cannot sell or repledge the assets or the Partnership can substitute collateral or otherwise redeem it on short notice. The Partnership does not report collateral it has received in secured lending and other arrangements as an asset when the debtor has the right to redeem or substitute the collateral on short notice. |
Securities Owned and Sold, Not Yet Purchased | Securities Owned and Sold, Not Yet Purchased . Securities owned and sold, not yet purchased, including inventory securities and investment securities, are recorded on a trade-date basis at fair value which is determined by using quoted market or dealer prices. The Partnership records the related unrealized gains and losses for inventory securities and certain investment securities in trade revenue in the Consolidated Statements of Income. The unrealized gains and losses for investment securities related to the nonqualified deferred compensation plan are recorded in other revenue in the Consolidated Statements of Income. |
Equipment, Property and Improvements | Equipment, Property and Improvements. Equipment, including furniture and fixtures, is recorded at cost and depreciated using straight-line and accelerated methods over estimated useful lives of three to seven years. Buildings are depreciated using the straight-line method over their useful lives, which are estimated at thirty years. Leasehold improvements are amortized based on the term of the lease or the economic useful life of the improvement, whichever is less. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation or amortization is removed from the respective category and any related gain or loss is recorded as other revenue in the Consolidated Statements of Income. The cost of maintenance and repairs is charged against income as incurred, whereas significant enhancements are capitalized. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be fully recoverable. If impairment is indicated, the asset value is written down to its fair value. |
Non-qualified Deferred Compensation Plan | Non-qualified Deferred Compensation Plan. The Partnership has a non-qualified deferred compensation plan for certain financial advisors. The Partnership has recorded a liability for the future payments due to financial advisors participating in the plan. As the future amounts due to financial advisors change in accordance with plan requirements, the Partnership records the change in future amounts owed to financial advisors as an increase or decrease in accrued compensation in the Consolidated Statements of Financial Condition and compensation and benefits expense in the Consolidated Statements of Income. The Partnership has chosen to hedge this future liability by purchasing securities in an amount similar to the future liability expected to be due in accordance with the plan. These securities are included in investment securities in the Consolidated Statements of Financial Condition and the unrealized gains and losses are recorded in other revenue in the Consolidated Statements of Income. Each period, the net impact of the change in future amounts owed to financial advisors in the non-qualified deferred compensation plan and the change in investment securities are approximately the same, resulting in minimal net impact in the Consolidated Financial Statements. |
Retirement Transition Plan | Retirement Transition Plan. The Partnership, in certain circumstances, offers individually tailored retirement transition plans to retiring financial advisors. Each retirement transition plan compensates a retiring financial advisor for successfully providing client transition services in accordance with a retirement and transition employment agreement. Generally, the retirement and transition employment agreement is for five years. During the first two years the retiring financial advisor remains an employee and provides transition services, which include, but are not limited to, the successful transition of client accounts and assets to successor financial advisors, as well as mentoring and providing training and support to successor financial advisors. The financial advisor retires at the end of year two and is subject to a non-compete agreement for three years. Most retiring financial advisors participating in a retirement transition plan are paid ratably over four years. Compensation expense is generally recognized ratably over the two-year transition period which aligns with the service period of the agreement. As of December 31, 2015, $35 was accrued for future payments to advisors who have already started a plan. Successor financial advisors receive reduced compensation on transitioned assets. |
Lease Accounting | Lease Accounting. The Partnership enters into lease agreements for certain home office facilities as well as branch office locations. The associated lease expense is recognized on a straight-line basis over the minimum lease terms. |
Income Taxes | Income Taxes. Generally, income taxes have not been provided for in the Consolidated Financial Statements due to the partnership tax structure where each partner is liable for his or her own tax payments. For the jurisdictions in which the Partnership is liable for payments, the income tax provisions are immaterial (see Note 9). |
Reclassification | Reclassification. Certain prior year balances have been reclassified to conform to the current year presentation. |
Partnership Capital Subject to Mandatory Redemption | Partnership Capital Subject to Mandatory Redemption. FASB ASC No. 480, Distinguishing Liabilities from Equity (“ASC 480”), established standards for classifying and measuring certain financial instruments with characteristics of both liabilities and equity. Under the provisions of ASC 480, the obligation to redeem a partner’s capital in the event of a partner’s death is one of the criteria requiring capital to be classified as a liability. Since the Partnership Agreement obligates the Partnership to redeem a partner’s capital after a partner’s death, ASC 480 requires all of the Partnership’s equity capital to be classified as a liability. In accordance with ASC 480, income allocable to limited, subordinated limited and general partners is classified as a reduction of income before allocations to partners, which results in a presentation of $0 net income for the years ended December 31, 2015, 2014 and 2013. The financial statement presentations required to comply with ASC 480 do not alter the Partnership’s treatment of income, income allocations or capital for any other purposes. Net income, as defined in the Partnership Agreement, is equivalent to income before allocations to partners on the Consolidated Statements of Income. Such income, if any, for each calendar year is allocated to the Partnership’s three classes of capital in accordance with the formulas prescribed in the Partnership Agreement. Income allocations are based upon partner capital contributions including capital contributions financed with loans from the Partnership. First, limited partners are allocated net income (as defined in the Partnership Agreement) in accordance with the prescribed formula for their share of net income. Limited partners generally do not share in the net loss in any year in which there is a net loss and the Partnership is not dissolved or liquidated. Thereafter, subordinated limited partners and general partners are allocated any remaining net income or net loss based on formulas as defined in the Partnership Agreement. The limited partnership capital subject to mandatory redemption is held by current and former associates and general partners of the Partnership. Limited partners participate in the Partnership’s profits and are paid a minimum 7.5% annual return on the face amount of their capital, in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is held by current and former general partners of the Partnership. Subordinated limited partners receive a percentage of the Partnership’s net income determined in accordance with the Partnership Agreement. The subordinated limited partnership capital subject to mandatory redemption is subordinated to the limited partnership capital. The general partnership capital subject to mandatory redemption is held by current general partners of the Partnership. General partners receive a percentage of the Partnership’s net income determined in accordance with the Partnership Agreement. The general partnership capital subject to mandatory redemption is subordinated to the limited partnership capital and the subordinated limited partnership capital. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards. In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance. The objective of ASU 2014-09 is for a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date of ASU 2014-09 to the first quarter of 2018. An entity can elect to adopt ASU 2014-09 using one of two methods, either full retrospective adoption to each prior reporting period, or recognize the cumulative effect of adoption at the date of initial application. The Partnership is in the process of evaluating the new standard and does not know the effect, if any, ASU 2014-09 will have on the Consolidated Financial Statements or which adoption method will be used. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis 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) |
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 |
Receivable from Mutual Funds,25
Receivable from Mutual Funds, Insurance Companies, and Other (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Composition of Partnership's Receivable from Mutual Funds, Insurance Companies and Other | The following table shows the Partnership's receivable from mutual funds, insurance companies and other as of December 31, 2015 and 2014: 2015 2014 Asset-based fees from mutual fund and insurance companies $ 211 $ 200 Deposit for Canadian retirement accounts 187 189 Fees for shareholder accounting services 52 48 Total $ 450 $ 437 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Partnership's Financial Assets at Fair Value | The following tables show the Partnership's financial instruments measured at fair value: 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 (1) $ 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 (1) The mutual funds balance consists primarily of securities held to hedge future liabilities related to the non-qualified deferred compensation plan. Financial Assets at Fair Value as of December 31, 2014 Level I Level II Level III Total Cash equivalents: Certificate of deposit $ — $ 100 $ — $ 100 Investments segregated under federal regulations: U.S. treasuries $ 1,109 $ — $ — $ 1,109 Certificates of deposit — 225 — 225 Total investments segregated under federal regulations $ 1,109 $ 225 $ — $ 1,334 Securities owned: Investment securities: Mutual funds $ 136 $ — $ — $ 136 Government and agency obligations 19 — — 19 Equities 5 — — 5 Corporate bonds and notes — 1 — 1 Total investment securities $ 160 $ 1 $ — $ 161 Inventory securities: State and municipal obligations $ — $ 40 $ — $ 40 Equities 17 — — 17 Mutual funds 5 — — 5 Certificates of deposit — 3 — 3 Corporate bonds and notes — 2 — 2 Other 1 1 — 2 Total inventory securities $ 23 $ 46 $ — $ 69 |
Partnership's Financial Liabilities at Fair Value | Financial Liabilities at Fair Value as of December 31, 2015 Level I Level II Level III Total Securities sold, not yet purchased (2) Mutual funds $ 3 $ — $ — $ 3 Equities 2 — — 2 Corporate bonds and notes — 1 — 1 Total securities sold, not yet purchased $ 5 $ 1 $ — $ 6 (2) Securities sold, not yet purchased are included within accounts payable, accrued expenses and other in the Consolidated Statements of Financial Condition. Financial Liabilities at Fair Value as of December 31, 2014 Level I Level II Level III Total Securities sold, not yet purchased: Equities $ 2 $ — $ — $ 2 Corporate bonds and notes — 1 — 1 Total securities sold, not yet purchased $ 2 $ 1 $ — $ 3 |
Equipment, Property and Impro27
Equipment, Property and Improvements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Composition of Partnership's Equipment, Property and Improvements | The following table shows equipment, property and improvements as of December 31, 2015 and 2014: 2015 2014 Land $ 25 $ 26 Buildings and improvements 886 846 Equipment, furniture and fixtures 611 613 Equipment, property and improvements, at cost 1,522 1,485 Accumulated depreciation and amortization (963 ) (936 ) Equipment, property and improvements, net $ 559 $ 549 |
Lines of Credit (Tables)
Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Composition of Partnership's Aggregate Bank Lines of Credit | The following table shows the composition of the Partnership's aggregate bank lines of credit in place as of December 31, 2015 and 2014: 2015 2014 2013 Credit Facility $ 400 $ 400 Uncommitted secured credit facilities 290 365 Total lines of credit $ 690 $ 765 |
Partnership Capital Subject t29
Partnership Capital Subject to Mandatory Redemption (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Roll Forward of Outstanding Partnership Loans | The following table shows the roll forward of outstanding Partnership loans for the years ended December 31, 2015 and 2014: 2015 2014 Partnership loans outstanding at beginning of year $ 198 $ 215 Partnership loans issued during the year 119 86 Repayment of Partnership loans during the year (99 ) (103 ) Total Partnership loans outstanding $ 218 $ 198 |
Net Capital Requirements (Table
Net Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 and 2014: 2015 2014 U.S.: Net capital $ 1,140 $ 999 Net capital in excess of the minimum required $ 1,083 $ 948 Net capital as a percentage of aggregate debit items 40.1 % 38.9 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 26.0 % 31.1 % Canada: Regulatory risk adjusted capital $ 24 $ 31 Regulatory risk adjusted capital in excess of the minimum required to be held by IIROC $ 19 $ 27 |
Commitments, Guarantees and R31
Commitments, Guarantees and Risks (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Partnership's Non-cancelable Lease Commitments Greater Than One Year | The Partnership's non-cancelable lease commitments greater than one year as of December 31, 2015, are summarized below: 2016 $ 143 2017 39 2018 26 2019 17 2020 11 Thereafter 18 Total $ 254 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Financial Information for Partnership's Reportable Segments | The following table shows financial information for the Partnership’s reportable segments for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Net revenue: U.S. $ 6,432 $ 6,074 $ 5,457 Canada 187 204 200 Total net revenue $ 6,619 $ 6,278 $ 5,657 Net interest and dividends revenue: U.S. $ 81 $ 76 $ 70 Canada 2 4 5 Total net interest and dividends revenue $ 83 $ 80 $ 75 Pre-variable income: U.S. $ 1,650 $ 1,559 $ 1,310 Canada 8 12 7 Total pre-variable income $ 1,658 $ 1,571 $ 1,317 Variable compensation: U.S. $ 803 $ 781 $ 626 Canada 17 20 17 Total variable compensation $ 820 $ 801 $ 643 Income (loss) before allocations to partners: U.S. $ 847 $ 778 $ 684 Canada (9 ) (8 ) (10 ) Total income before allocations to partners $ 838 $ 770 $ 674 Capital expenditures: U.S. $ 93 $ 88 $ 81 Canada 1 2 3 Total capital expenditures $ 94 $ 90 $ 84 Depreciation and amortization: U.S. $ 81 $ 80 $ 80 Canada 2 2 2 Total depreciation and amortization $ 83 $ 82 $ 82 Total assets at year end: U.S. $ 15,897 $ 14,290 $ 13,341 Canada 459 480 454 Total assets $ 16,356 $ 14,770 $ 13,795 Financial advisors at year end: U.S. 13,839 13,287 12,483 Canada 669 713 675 Total financial advisors 14,508 14,000 13,158 |
Quarterly Information (Tables)
Quarterly Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Information | 2015 Quarters Ended Mar 27 Jun 26 Sep 25 Dec 31 Net revenue $ 1,635 $ 1,681 $ 1,645 $ 1,658 Income before allocations to partners $ 214 $ 222 $ 208 $ 194 Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding $ 33.54 $ 34.83 $ 32.67 $ 30.38 2014 Quarters Ended Mar 28 Jun 27 Sep 26 Dec 31 Net revenue $ 1,490 $ 1,564 $ 1,583 $ 1,641 Income before allocations to partners $ 186 $ 194 $ 195 $ 195 Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding $ 31.27 $ 32.67 $ 32.77 $ 32.69 |
Offsetting Assets and Liabili34
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 and 2014: Gross Net amounts Gross amounts not offset offset in the presented in the Consolidated Gross Consolidated Consolidated Statements of Financial amounts of Statements of Statements Condition recognized Financial Financial Financial Securities assets Condition Condition instruments collateral (1) Net 2015 $ 843 — 843 — (843 ) $ — 2014 $ 634 — 634 — (634 ) $ — (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. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)SegmentCapital_RepaymentCapitalClass | Dec. 31, 2014USD ($)Segment | Dec. 31, 2013USD ($)Segment | |
Basis Of Presentation [Line Items] | |||
Number of operating segments | Segment | 2 | 2 | 2 |
Period for partner's capital redemption in the event of death | 6 months | ||
Number of annual capital repayments for withdrawal of limited partners | Segment | 3 | ||
Period to begin repaying capital upon withdrawal for limited partners | 90 days | ||
Number of annual capital repayments for withdrawal of subordinated limited partners | Capital_Repayment | 6 | ||
Period to begin repaying capital upon withdrawal for subordinated limited partners | 90 days | ||
Partnership's total revenue derived from one mutual fund company | 20.00% | 20.00% | 19.00% |
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 of collateral related to resell agreements | $ 858,000,000 | 644,000,000 | |
Retirement and transition employment agreement term | 5 years | ||
Retirement transition plan employment term | 2 years | ||
Retirement transition plan non-compete term | 3 years | ||
Retirement transition plan compensation paid term | 4 years | ||
Retirement transition plan compensation expense term | 2 years | ||
Retirement transition plan accrued future payments | $ 35,000,000 | ||
Net income | $ 0 | $ 0 | $ 0 |
Number of classes of capital | CapitalClass | 3 | ||
Limited Partnership's minimum annual return rate | 7.50% | 7.50% | 7.50% |
Building [Member] | |||
Basis Of Presentation [Line Items] | |||
Equipment, property and improvements estimated useful lives | 30 years | ||
Minimum [Member] | Equipment [Member] | |||
Basis Of Presentation [Line Items] | |||
Equipment, property and improvements estimated useful lives | 3 years | ||
Minimum [Member] | United States [Member] | |||
Basis Of Presentation [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 102.00% | 102.00% | |
Minimum [Member] | Canada [Member] | |||
Basis Of Presentation [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 100.00% | 100.00% | |
Maximum [Member] | Equipment [Member] | |||
Basis Of Presentation [Line Items] | |||
Equipment, property and improvements estimated useful lives | 7 years | ||
Securities Purchase Agreement [Member] | Minimum [Member] | United States [Member] | |||
Basis Of Presentation [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 102.00% | ||
Securities Purchase Agreement [Member] | Minimum [Member] | Canada [Member] | |||
Basis Of Presentation [Line Items] | |||
Fair value of underlying collateral as percentage of carrying value of transaction | 100.00% |
Receivable From and Payable t36
Receivable From and Payable to Clients - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Client Receivables And Payables [Abstract] | ||
Collateral held | $ 3,954 | $ 3,595 |
Receivable from Mutual Funds,37
Receivable from Mutual Funds, Insurance Companies, and Other - Composition of Partnership's Receivable from Mutual Funds, Insurance Companies and Other (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Brokers And Dealers [Abstract] | ||
Asset-based fees from mutual fund and insurance companies | $ 211 | $ 200 |
Deposit for Canadian retirement accounts | 187 | 189 |
Fees for shareholder accounting services | 52 | 48 |
Total | $ 450 | $ 437 |
Fair Value - Partnership's Fina
Fair Value - Partnership's Financial Assets at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | $ 3,006 | $ 1,334 |
Investment securities: | ||
Total investment securities | 201 | 161 |
Inventory securities: | ||
Total inventory securities | 36 | 69 |
Mutual Funds [Member] | ||
Investment securities: | ||
Total investment securities | 192 | 136 |
Inventory securities: | ||
Total inventory securities | 7 | 5 |
Government and Agency Obligations [Member] | ||
Investment securities: | ||
Total investment securities | 4 | 19 |
Other [Member] | ||
Inventory securities: | ||
Total inventory securities | 2 | |
U.S. Treasuries [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 2,706 | 1,109 |
State and Municipal Obligations [Member] | ||
Inventory securities: | ||
Total inventory securities | 11 | 40 |
Equities [Member] | ||
Investment securities: | ||
Total investment securities | 4 | 5 |
Inventory securities: | ||
Total inventory securities | 17 | 17 |
Corporate Bonds and Notes [Member] | ||
Investment securities: | ||
Total investment securities | 1 | 1 |
Inventory securities: | ||
Total inventory securities | 1 | 2 |
Certificates of Deposit [Member] | ||
Cash equivalents: | ||
Cash and cash equivalents | 150 | 100 |
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 300 | 225 |
Inventory securities: | ||
Total inventory securities | 3 | |
Level I [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 2,706 | 1,109 |
Investment securities: | ||
Total investment securities | 200 | 160 |
Inventory securities: | ||
Total inventory securities | 24 | 23 |
Level I [Member] | Mutual Funds [Member] | ||
Investment securities: | ||
Total investment securities | 192 | 136 |
Inventory securities: | ||
Total inventory securities | 7 | 5 |
Level I [Member] | Government and Agency Obligations [Member] | ||
Investment securities: | ||
Total investment securities | 4 | 19 |
Level I [Member] | Other [Member] | ||
Inventory securities: | ||
Total inventory securities | 1 | |
Level I [Member] | U.S. Treasuries [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 2,706 | 1,109 |
Level I [Member] | State and Municipal Obligations [Member] | ||
Inventory securities: | ||
Total inventory securities | 0 | 0 |
Level I [Member] | Equities [Member] | ||
Investment securities: | ||
Total investment securities | 4 | 5 |
Inventory securities: | ||
Total inventory securities | 17 | 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] | Certificates of Deposit [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 | |
Level II [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 300 | 225 |
Investment securities: | ||
Total investment securities | 1 | 1 |
Inventory securities: | ||
Total inventory securities | 12 | 46 |
Level II [Member] | Mutual Funds [Member] | ||
Investment securities: | ||
Total investment securities | 0 | 0 |
Inventory securities: | ||
Total inventory securities | 0 | 0 |
Level II [Member] | Government and Agency Obligations [Member] | ||
Investment securities: | ||
Total investment securities | 0 | 0 |
Level II [Member] | Other [Member] | ||
Inventory securities: | ||
Total inventory securities | 1 | |
Level II [Member] | U.S. Treasuries [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 0 | 0 |
Level II [Member] | State and Municipal Obligations [Member] | ||
Inventory securities: | ||
Total inventory securities | 11 | 40 |
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 | 1 | 2 |
Level II [Member] | Certificates of Deposit [Member] | ||
Cash equivalents: | ||
Cash and cash equivalents | 150 | 100 |
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 300 | 225 |
Inventory securities: | ||
Total inventory securities | 3 | |
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] | Mutual Funds [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] | Other [Member] | ||
Inventory securities: | ||
Total inventory securities | 0 | |
Level III [Member] | U.S. Treasuries [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 0 | 0 |
Level III [Member] | State and Municipal Obligations [Member] | ||
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] | Certificates of Deposit [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 |
Fair Value - Partnership's Fi39
Fair Value - Partnership's Financial Liabilities at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | $ 6 | $ 3 |
Equities [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 2 | 2 |
Corporate Bonds and Notes [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 1 | 1 |
Mutual Funds [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 3 | |
Level I [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 5 | 2 |
Level I [Member] | Equities [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 2 | 2 |
Level I [Member] | Corporate Bonds and Notes [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 0 | 0 |
Level I [Member] | Mutual Funds [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 3 | |
Level II [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 1 | 1 |
Level II [Member] | Equities [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 0 | 0 |
Level II [Member] | Corporate Bonds and Notes [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 1 | 1 |
Level II [Member] | Mutual Funds [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 0 | |
Level III [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 0 | 0 |
Level III [Member] | Equities [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 0 | 0 |
Level III [Member] | Corporate Bonds and Notes [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | 0 | $ 0 |
Level III [Member] | Mutual Funds [Member] | ||
Securities sold, not yet purchased: | ||
Total securities sold, not yet purchased | $ 0 |
Equipment, Property and Impro40
Equipment, Property and Improvements - Composition of Partnership's Equipment, Property and Improvements (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Equipment, property and improvements, at cost | $ 1,522 | $ 1,485 |
Accumulated depreciation and amortization | (963) | (936) |
Equipment, property and improvements, net | 559 | 549 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, property and improvements, at cost | 25 | 26 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, property and improvements, at cost | 886 | 846 |
Equipment, Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, property and improvements, at cost | $ 611 | $ 613 |
Equipment, Property and Impro41
Equipment, Property and Improvements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization expense | $ 83 | $ 82 | $ 82 |
Purchase of equipment, property and improvements, net | $ 94 | 90 | $ 84 |
Industrial revenue bonds maturity period | 10 years | ||
Amount issued related to industrial revenue bonds | $ 350 | $ 350 |
Lines of Credit - Composition o
Lines of Credit - Composition of Partnership's Aggregate Bank Lines of Credit (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Line of credit facility | $ 690,000,000 | $ 765,000,000 |
2013 Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility | 400,000,000 | 400,000,000 |
Uncommitted Secured Credit Facilities [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility | $ 290,000,000 | $ 365,000,000 |
Lines of Credit - Additional In
Lines of Credit - Additional Information (Detail) | Oct. 30, 2015USD ($) | Dec. 31, 2015USD ($)Bank | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Line of Credit Facility [Line Items] | ||||
Line of credit facility | $ 690,000,000 | $ 765,000,000 | ||
2013 Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Expiration date of unsecured revolving line of credit | Nov. 15, 2018 | |||
Number of banks with which agreement made | Bank | 12 | |||
Number of years for unsecured revolving line of credit | 5 years | |||
Line of credit facility | $ 400,000,000 | 400,000,000 | ||
Debt instrument basis spread on LIBOR minimum on a three day advance notice | 1.25% | |||
Debt instrument basis spread on LIBOR maximum on a three day advance notice | 2.00% | |||
Debt instrument basis spread on variable rate minimum on same day borrowing | 0.25% | |||
Debt instrument basis spread on variable rate maximum on same day borrowing | 1.00% | |||
Federal funds effective rate plus 1% | 1.00% | |||
LIBOR rate plus 1% | 1.00% | |||
Maximum leverage ratio required to be maintained by partnership | 35.00% | |||
Required minimum partnership capital, net of reserve for anticipated withdrawals | $ 1,382,000,000 | |||
Additional issuances of partnership capital | 50.00% | |||
Amount outstanding under credit facility | $ 0 | 0 | ||
Partnership draws against lines of credit | 0 | 0 | $ 0 | |
Uncommitted Secured Credit Facilities [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility | 290,000,000 | 365,000,000 | ||
Decrease in credit facility | $ 75,000,000 | |||
Amount outstanding under credit facility | 0 | 0 | ||
Partnership draws against lines of credit | $ 0 | $ 0 | $ 0 |
Partnership Capital Subject t44
Partnership Capital Subject to Mandatory Redemption - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 02, 2015 | Jan. 17, 2014 | Dec. 31, 2012 | |
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 | $ 218 | $ 198 | $ 215 | $ 170 | ||
Interest income from outstanding amount of general partner loan | $ 8 | $ 7 | $ 8 | |||
Limited Partnership's minimum annual return rate | 7.50% | 7.50% | 7.50% | |||
Limited partnership's minimum return, value | $ 69 | $ 48 | $ 48 | |||
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 |
Partnership Capital Subject t45
Partnership Capital Subject to Mandatory Redemption - Roll Forward of Outstanding Partnership Loans (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Liabilities Disclosure [Abstract] | ||
Partnership loans outstanding at beginning of year | $ 198 | $ 215 |
Partnership loans issued during the year | 119 | 86 |
Repayment of Partnership loans during the year | (99) | (103) |
Partnership loans outstanding at end of year | $ 218 | $ 198 |
Net Capital Requirements - Addi
Net Capital Requirements - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
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 | Dec. 31, 2015 | Dec. 31, 2014 |
United States [Member] | ||
Regulatory Capital Requirements | ||
Net capital | $ 1,140 | $ 999 |
Net capital in excess of the minimum required | $ 1,083 | $ 948 |
Net capital as a percentage of aggregate debit items | 40.10% | 38.90% |
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items | 26.00% | 31.10% |
Canada [Member] | ||
Regulatory Capital Requirements | ||
Regulatory risk adjusted capital | $ 24 | $ 31 |
Regulatory risk adjusted capital in excess of the minimum required to be held by IIROC | $ 19 | $ 27 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Partnership's tax basis of assets and liabilities exceeds book basis | $ 203 | $ 126 |
Income tax examination, Likelihood of unfavorable settlement | greater than fifty percent | |
Uncertain tax positions | $ 0 | $ 0 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | |||
Partnership's contribution to deferred compensation plans | $ 169 | $ 158 | $ 141 |
Commitments, Guarantees and R50
Commitments, Guarantees and Risks - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Operating lease expiration minimum period | 3 years | ||
Operating lease expiration maximum period | 5 years | ||
Operating lease rental expense based on straight-line basis | $ 254 | $ 242 | $ 234 |
Termination fees | $ 113 | ||
Expiration period of termination fee | 3 years |
Commitments, Guarantees and R51
Commitments, Guarantees and Risks - Partnership's Non-cancelable Lease Commitments Greater Than One Year (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,016 | $ 143 |
2,017 | 39 |
2,018 | 26 |
2,019 | 17 |
2,020 | 11 |
Thereafter | 18 |
Total partnerships non-cancelable lease commitments | $ 254 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Current estimated possible loss | $ 1 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Current estimated possible loss | $ 17 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | |||
Number of operating segments | 2 | 2 | 2 |
Number of reportable segments | 2 |
Segment Information - Financial
Segment Information - Financial Information for Partnership's Reportable Segments (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($)Advisor | Sep. 25, 2015USD ($) | Jun. 26, 2015USD ($) | Mar. 27, 2015USD ($) | Dec. 31, 2014USD ($)Advisor | Sep. 26, 2014USD ($) | Jun. 27, 2014USD ($) | Mar. 28, 2014USD ($) | Dec. 31, 2015USD ($)Advisor | Dec. 31, 2014USD ($)Advisor | Dec. 31, 2013USD ($)Advisor | |
Net revenue: | |||||||||||
Total net revenue | $ 1,658 | $ 1,645 | $ 1,681 | $ 1,635 | $ 1,641 | $ 1,583 | $ 1,564 | $ 1,490 | $ 6,619 | $ 6,278 | $ 5,657 |
Net interest and dividends revenue: | |||||||||||
Total net interest and dividends revenue | 83 | 80 | 75 | ||||||||
Pre-variable income: | |||||||||||
Total pre-variable income | 1,658 | 1,571 | 1,317 | ||||||||
Variable compensation: | |||||||||||
Total variable compensation | 820 | 801 | 643 | ||||||||
Income (loss) before allocations to partners: | |||||||||||
Total income before allocations to partners | 194 | $ 208 | $ 222 | $ 214 | 195 | $ 195 | $ 194 | $ 186 | 838 | 770 | 674 |
Capital expenditures: | |||||||||||
Total capital expenditures | 94 | 90 | 84 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 83 | 82 | 82 | ||||||||
Total assets at year end: | |||||||||||
Total assets | $ 16,356 | $ 14,770 | $ 16,356 | $ 14,770 | $ 13,795 | ||||||
Financial advisors at year end: | |||||||||||
Total financial advisors | Advisor | 14,508 | 14,000 | 14,508 | 14,000 | 13,158 | ||||||
United States [Member] | |||||||||||
Net revenue: | |||||||||||
Total net revenue | $ 6,432 | $ 6,074 | $ 5,457 | ||||||||
Net interest and dividends revenue: | |||||||||||
Total net interest and dividends revenue | 81 | 76 | 70 | ||||||||
Pre-variable income: | |||||||||||
Total pre-variable income | 1,650 | 1,559 | 1,310 | ||||||||
Variable compensation: | |||||||||||
Total variable compensation | 803 | 781 | 626 | ||||||||
Income (loss) before allocations to partners: | |||||||||||
Total income before allocations to partners | 847 | 778 | 684 | ||||||||
Capital expenditures: | |||||||||||
Total capital expenditures | 93 | 88 | 81 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 81 | 80 | 80 | ||||||||
Total assets at year end: | |||||||||||
Total assets | $ 15,897 | $ 14,290 | $ 15,897 | $ 14,290 | $ 13,341 | ||||||
Financial advisors at year end: | |||||||||||
Total financial advisors | Advisor | 13,839 | 13,287 | 13,839 | 13,287 | 12,483 | ||||||
Canada [Member] | |||||||||||
Net revenue: | |||||||||||
Total net revenue | $ 187 | $ 204 | $ 200 | ||||||||
Net interest and dividends revenue: | |||||||||||
Total net interest and dividends revenue | 2 | 4 | 5 | ||||||||
Pre-variable income: | |||||||||||
Total pre-variable income | 8 | 12 | 7 | ||||||||
Variable compensation: | |||||||||||
Total variable compensation | 17 | 20 | 17 | ||||||||
Income (loss) before allocations to partners: | |||||||||||
Total income before allocations to partners | (9) | (8) | (10) | ||||||||
Capital expenditures: | |||||||||||
Total capital expenditures | 1 | 2 | 3 | ||||||||
Depreciation and amortization: | |||||||||||
Depreciation and amortization | 2 | 2 | 2 | ||||||||
Total assets at year end: | |||||||||||
Total assets | $ 459 | $ 480 | $ 459 | $ 480 | $ 454 | ||||||
Financial advisors at year end: | |||||||||||
Total financial advisors | Advisor | 669 | 713 | 669 | 713 | 675 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ||||
Rent expense related to leases | $ 254 | $ 242 | $ 234 | |
Scenario, Forecast [Member] | ||||
Related Party Transaction [Line Items] | ||||
Remaining ownership percentage intended to be acquired in Passport Research, Ltd | 50.50% | |||
Edward Jones [Member] | ||||
Related Party Transaction [Line Items] | ||||
Limited partnership interest in passport research, Ltd | 49.50% | |||
Percentage of Partnership's total revenues derived from limited partnership interest in passport research, Ltd | 0.10% | 0.03% | 0.10% | |
Percentage of branch office space leased from its financial advisors | 10.00% | |||
Rent expense related to leases | $ 27 | $ 25 | $ 23 | |
Olive Street [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expense paid to sub-advisers | 30 | 8 | 1 | |
Advisory revenue received from Trust | $ 30 | $ 8 | $ 1 |
Quarterly Information - Summary
Quarterly Information - Summary of Quarterly Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net revenue | $ 1,658 | $ 1,645 | $ 1,681 | $ 1,635 | $ 1,641 | $ 1,583 | $ 1,564 | $ 1,490 | $ 6,619 | $ 6,278 | $ 5,657 |
Income before allocations to partners | $ 194 | $ 208 | $ 222 | $ 214 | $ 195 | $ 195 | $ 194 | $ 186 | $ 838 | $ 770 | $ 674 |
Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding | $ 30.38 | $ 32.67 | $ 34.83 | $ 33.54 | $ 32.69 | $ 32.77 | $ 32.67 | $ 31.27 | $ 131.42 | $ 129.40 | $ 121.12 |
Quarterly Information - Summa57
Quarterly Information - Summary of Quarterly Information (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Limited partnership interest value | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |
Offsetting Assets and Liabili58
Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting Securities Purchased Under Agreements To Resell [Abstract] | ||
Securities purchased under agreements to resell, Gross amounts of recognized assets | $ 843 | $ 634 |
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 | 843 | 634 |
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 | (843) | (634) |
Securities purchased under agreements to resell, Net amount | $ 0 | $ 0 |
Offsetting Assets and Liabili59
Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Parenthetical) (Detail) - Minimum [Member] | Dec. 31, 2015 | Dec. 31, 2014 |
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% |
Schedule I - Condensed Statemen
Schedule I - Condensed Statements of Financial Condition (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS: | ||||
Cash and cash equivalents | $ 937 | $ 1,033 | $ 600 | $ 601 |
Investment securities | 201 | 161 | ||
Other assets | 128 | 128 | ||
TOTAL ASSETS | 16,356 | 14,770 | 13,795 | |
LIABILITIES: | ||||
Accounts payable and accrued expenses | 182 | 164 | ||
Partnership capital subject to mandatory redemption | 2,610 | 2,218 | 2,081 | 1,983 |
TOTAL LIABILITIES | 16,356 | 14,770 | ||
Parent Company [Member] | ||||
ASSETS: | ||||
Cash and cash equivalents | 331 | 119 | $ 252 | $ 285 |
Investment securities | 9 | 9 | ||
Investment in subsidiaries | 2,255 | 2,076 | ||
Other assets | 15 | 15 | ||
TOTAL ASSETS | 2,610 | 2,219 | ||
LIABILITIES: | ||||
Accounts payable and accrued expenses | 1 | |||
Partnership capital subject to mandatory redemption | 2,610 | 2,218 | ||
TOTAL LIABILITIES | $ 2,610 | $ 2,219 |
Schedule I - Condensed Statem61
Schedule I - Condensed Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
NET REVENUE | |||||||||||
Other | $ 22 | $ 32 | $ 52 | ||||||||
Total revenue | 6,694 | 6,333 | 5,716 | ||||||||
Interest expense | 75 | 55 | 59 | ||||||||
Net revenue | $ 1,658 | $ 1,645 | $ 1,681 | $ 1,635 | $ 1,641 | $ 1,583 | $ 1,564 | $ 1,490 | 6,619 | 6,278 | 5,657 |
OPERATING EXPENSES | |||||||||||
Compensation and benefits | 4,641 | 4,436 | 3,960 | ||||||||
Other operating expenses | 265 | 236 | 218 | ||||||||
Total operating expenses | 5,781 | 5,508 | 4,983 | ||||||||
Income before allocations to partners | $ 194 | $ 208 | $ 222 | $ 214 | $ 195 | $ 195 | $ 194 | $ 186 | 838 | 770 | 674 |
Allocations to partners | (838) | (770) | (674) | ||||||||
Net income | 0 | 0 | 0 | ||||||||
Parent Company [Member] | |||||||||||
NET REVENUE | |||||||||||
Subsidiary earnings | 833 | 764 | 667 | ||||||||
Management fee income | 99 | 78 | 76 | ||||||||
Other | 7 | 7 | 9 | ||||||||
Total revenue | 939 | 849 | 752 | ||||||||
Interest expense | 69 | 48 | 48 | ||||||||
Net revenue | 870 | 801 | 704 | ||||||||
OPERATING EXPENSES | |||||||||||
Compensation and benefits | 30 | 30 | 28 | ||||||||
Other operating expenses | 2 | 1 | 2 | ||||||||
Total operating expenses | 32 | 31 | 30 | ||||||||
Income before allocations to partners | 838 | 770 | 674 | ||||||||
Allocations to partners | (838) | (770) | (674) | ||||||||
Net income | $ 0 | $ 0 | $ 0 |
Schedule I - Condensed Statem62
Schedule I - Condensed Statements of Cash Flow (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ 0 | $ 0 | $ 0 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Income before allocations to partners | $ 194 | $ 208 | $ 222 | $ 214 | $ 195 | $ 195 | $ 194 | $ 186 | 838 | 770 | 674 |
Changes in assets and liabilities: | |||||||||||
Other assets | (33) | 4 | |||||||||
Accounts payable and accrued expenses | 19 | 20 | (11) | ||||||||
Net cash provided by operating activities | 444 | 1,206 | 709 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Issuance of partnership interests (net of partnership loans) | 352 | 55 | 40 | ||||||||
Redemption of partnership interests | (161) | (125) | (115) | ||||||||
Distributions from partnership capital (net of partnership loans) | (637) | (563) | (490) | ||||||||
Issuance of partnership loans | (11) | ||||||||||
Net cash used in financing activities | (446) | (683) | (626) | ||||||||
Net (decrease) increase in cash and cash equivalents | (96) | 433 | (1) | ||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||
Beginning of year | 1,033 | 600 | 1,033 | 600 | 601 | ||||||
End of year | 937 | 1,033 | 937 | 1,033 | 600 | ||||||
NON-CASH ACTIVITIES: | |||||||||||
Issuance of general partnership interests through partnership loans in current period | 119 | 86 | 95 | ||||||||
Repayment of partnership loans through distributions from partnership capital in current period | 99 | 103 | 61 | ||||||||
Parent Company [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | 0 | 0 | 0 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Income before allocations to partners | 838 | 770 | 674 | ||||||||
Changes in assets and liabilities: | |||||||||||
Investment securities | 0 | 0 | 4 | ||||||||
Investment in subsidiaries | (179) | (267) | (136) | ||||||||
Other assets | 0 | (3) | 0 | ||||||||
Accounts payable and accrued expenses | (1) | 0 | 1 | ||||||||
Net cash provided by operating activities | 658 | 500 | 543 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Issuance of partnership interests (net of partnership loans) | 352 | 55 | 40 | ||||||||
Redemption of partnership interests | (161) | (125) | (115) | ||||||||
Distributions from partnership capital (net of partnership loans) | (637) | (563) | (490) | ||||||||
Issuance of partnership loans | 0 | 0 | (11) | ||||||||
Net cash used in financing activities | (446) | (633) | (576) | ||||||||
Net (decrease) increase in cash and cash equivalents | 212 | (133) | (33) | ||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||
Beginning of year | $ 119 | $ 252 | 119 | 252 | 285 | ||||||
End of year | $ 331 | $ 119 | 331 | 119 | 252 | ||||||
NON-CASH ACTIVITIES: | |||||||||||
Issuance of general partnership interests through partnership loans in current period | 119 | 86 | 95 | ||||||||
Repayment of partnership loans through distributions from partnership capital in current period | $ 99 | $ 103 | $ 61 |