Jones Financial Companies LLLP (JNFC) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	JNFC
Entity Registrant Name	JONES FINANCIAL COMPANIES LLLP
Entity Central Index Key	815,917
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Limited Partnership Interests Outstanding		899,424

Consolidated Statements of Fina

Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
ASSETS:
Cash and cash equivalents	$ 1,026	$ 1,047
Cash and investments segregated under federal regulations	12,516	12,680
Securities purchased under agreements to resell	769	892
Receivable from:
Clients	3,109	3,129
Mutual funds, insurance companies and other	602	513
Brokers, dealers and clearing organizations	265	219
Securities owned, at fair value:
Investment securities	220	224
Inventory securities	84	43
Equipment, property and improvements, at cost, net of accumulated depreciation and amortization	552	549
Other assets	134	128
TOTAL ASSETS	19,277	19,424
Payable to:
Clients	15,383	15,414
Brokers, dealers and clearing organizations	195	99
Accrued compensation and employee benefits	939	1,116
Accounts payable, accrued expenses and other	175	161
Total liabilities before partnership capital	16,692	16,790
Contingencies (Note 5)
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	2,419	2,417
Reserve for anticipated withdrawals	166	217
Total partnership capital subject to mandatory redemption	2,585	2,634
TOTAL LIABILITIES	19,277	19,424
Limited Partnership Capital [Member]
Payable to:
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	901	902
Subordinated Limited Partnership Capital [Member]
Payable to:
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	462	421
General Partnership Capital [Member]
Payable to:
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	$ 1,056	$ 1,094

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Fee revenue
Asset-based	$ 1,115	$ 830
Account and activity	172	180
Total fee revenue	1,287	1,010
Trade revenue	457	522
Interest and dividends	58	43
Other revenue	13	4
Total revenue	1,815	1,579
Interest expense	18	18
Net revenue	1,797	1,561
Operating expenses:
Compensation and benefits	1,277	1,084
Occupancy and equipment	102	97
Communications and data processing	81	69
Advertising	23	22
Fund sub-adviser fees	20	12
Professional and consulting fees	17	13
Postage and shipping	15	13
Other operating expenses	65	60
Total operating expenses	1,600	1,370
Income before allocations to partners	197	191
Allocations to partners:
Limited partners	25	26
Subordinated limited partners	25	23
General partners	147	142
Net Income	$ 0	$ 0
Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding	$ 27.33	$ 28.30
Weighted average $1,000 equivalent limited partnership units outstanding	901,720	914,346

Consolidated Statements of Inc4

Consolidated Statements of Income (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Income Statement [Abstract]
Limited partnership interest value	$ 1,000	$ 1,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 0	$ 0
Adjustments to reconcile net income to net cash provided by operating activities:
Income before allocations to partners	197	191
Depreciation and amortization	20	20
Changes in assets and liabilities:
Cash and investments segregated under federal regulations	164	145
Securities purchased under agreements to resell	123	254
Net payable to clients	(11)	56
Net receivable from brokers, dealers and clearing organizations	50	36
Receivable from mutual funds, insurance companies and other	(89)	(83)
Securities owned	(37)	(17)
Other assets	(6)	22
Accrued compensation and employee benefits	(177)	(248)
Accounts payable, accrued expenses and other	14	(15)
Net cash provided by operating activities	248	361
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment, property and improvements, net	(23)	(14)
Net cash used in investing activities	(23)	(14)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of partnership interests	64	68
Redemption of partnership interests	(153)	(152)
Distributions from partnership capital	(157)	(211)
Net cash used in financing activities	(246)	(295)
Net (decrease) increase in cash and cash equivalents	(21)	52
CASH AND CASH EQUIVALENTS:
Beginning of period	1,047	937
End of period	1,026	989
Cash paid for interest	18	18
Cash paid for taxes	1	3
NON-CASH ACTIVITIES:
Issuance of general partnership interests through partnership loans in current period	140	139
Repayment of partnership loans through distributions from partnership capital in current period	$ 71	$ 60

Introduction and Basis of Prese

Introduction and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Introduction and Basis of Presentation	NOTE 1 – INTRODUCTION AND BASIS OF PRESENTATION The accompanying Consolidated Financial Statements include the accounts of The Jones Financial Companies, L.L.L.P. and all wholly-owned subsidiaries (collectively, the “Partnership”). All material intercompany balances and transactions have been eliminated in consolidation. Non-controlling minority interests are accounted for under the equity method. The results of the Partnership’s subsidiaries in Canada as of February 28, 2017 and November 30, 2016 are included in the Partnership’s Consolidated Statement of Financial Condition and the results for the three month periods ended February 28, 2017 and 2016 are included in the Partnership’s Consolidated Statements of Income and Consolidated Statements of Cash Flows because of the timing of the Partnership’s financial reporting process. The Partnership’s principal operating subsidiary, Edward D. Jones & Co., L.P. (“Edward Jones”), is a registered broker-dealer and investment adviser in the United States (“U.S.”), and one of Edward Jones’ subsidiaries is a registered 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 to, fees related to assets held by and account services provided to its clients, including investment advisory services, the purchase or sale of securities and insurance products, and principal transactions. The Partnership conducts business throughout the U.S. and Canada with its clients, various brokers, dealers, clearing organizations, depositories and banks. Trust services are offered to Edward Jones’ U.S. clients through Edward Jones Trust Company (“Trust Co.”), a wholly-owned subsidiary of the Partnership. Olive Street Investment Advisers, LLC, a wholly-owned subsidiary of the Partnership, provides investment advisory services to the sub-advised mutual funds in the Bridge Builder® Trust. As disclosed in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2016 ("Annual Report"), in January 2017 the Partnership completed the acquisition of the remaining 50.5% general partner interest in Passport Research, Ltd. ("Passport Research") from Federated Investment Management Company. The transfer did not have a material impact on the Consolidated Financial Statements. Passport Research is the investment adviser to the Edward Jones Money Market Fund and as investment adviser, earns fund adviser fee revenue and incurs expenses for sub-adviser fees. The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the U.S. (“GAAP”) which require the use of certain estimates by management in determining the Partnership’s assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The Partnership has evaluated subsequent events through the date these Consolidated Financial Statements were issued and identified no matters requiring disclosure. The interim financial information included herein is unaudited. However, in the opinion of management, such information includes all adjustments, consisting primarily of normal recurring accruals, which are necessary for a fair statement of the results of interim operations. Certain prior period amounts have been reclassified to conform to the current period presentation. There have been no material changes to the Partnership’s significant accounting policies or disclosures of recently issued accounting standards as described in Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 of the Partnership's Annual Report. The results of operations for the three month period ended March 31, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017. These unaudited Consolidated Financial Statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and notes thereto included in the Annual Report.

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value	NOTE 2 – FAIR VALUE The Partnership's valuation methodologies for financial assets and financial liabilities measured at fair value and the fair value hierarchy are described in Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 of the Partnership's Annual Report. There have been no material changes to the Partnership's valuation methodologies since December 31, 2016. The Partnership did not have any assets or liabilities categorized as Level III during the three and twelve month periods ended March 31, 2017 and December 31, 2016, respectively. In addition, there were no transfers into or out of Levels I, II or III during these periods. The following tables show the Partnership’s financial assets measured at fair value: Financial Assets at Fair Value as of March 31, 2017 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 250 $ — $ 250 Investments segregated under federal regulations: U.S. treasuries $ 3,993 $ — $ — $ 3,993 Certificates of deposit — 150 — 150 Total investments segregated under federal regulations $ 3,993 $ 150 $ — $ 4,143 Securities owned: Investment securities: Mutual funds (1) $ 212 $ — $ — $ 212 Equities 4 — — 4 Government and agency obligations 3 — — 3 Corporate bonds and notes — 1 — 1 Total investment securities $ 219 $ 1 $ — $ 220 Inventory securities: State and municipal obligations $ — $ 33 $ — $ 33 Equities 23 — — 23 Mutual funds 19 — — 19 Corporate bonds and notes — 5 — 5 Certificates of deposit — 4 — 4 Total inventory securities $ 42 $ 42 $ — $ 84 (1) The mutual funds balance consists primarily of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan. Financial Assets at Fair Value as of December 31, 2016 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 150 $ — $ 150 Investments segregated under federal regulations: U.S. treasuries $ 3,999 $ — $ — $ 3,999 Certificates of deposit — 150 — 150 Total investments segregated under federal regulations $ 3,999 $ 150 $ — $ 4,149 Securities owned: Investment securities: Mutual funds $ 209 $ — $ — $ 209 Government and agency obligations 9 — — 9 Equities 5 — — 5 Corporate bonds and notes — 1 — 1 Total investment securities $ 223 $ 1 $ — $ 224 Inventory securities: Equities $ 17 $ — $ — $ 17 State and municipal obligations — 16 — 16 Mutual funds 7 — — 7 Corporate bonds and notes — 2 — 2 Other — 1 — 1 Total inventory securities $ 24 $ 19 $ — $ 43

Partnership Capital

Partnership Capital	3 Months Ended
	Mar. 31, 2017
Partners Capital Notes [Abstract]
Partnership Capital	NOTE 3 – PARTNERSHIP CAPITAL The Partnership makes loans available to those general partners and, in limited circumstances, subordinated limited partners (in each case, other than members of the Executive Committee, as defined in the Partnership’s Nineteenth Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated June 6, 2014 (the “Partnership Agreement”)), who require financing for some or all of their Partnership capital contributions. In limited circumstances a general partner may withdraw from the Partnership and become a subordinated limited partner while he or she still has an outstanding Partnership loan. It is anticipated that, of the future general and subordinated limited partnership capital contributions (in each case, other than for Executive Committee members) requiring financing, the majority will be financed through Partnership loans. Loans made by the Partnership to such partners are generally for a period of one year but are expected to be renewed and bear interest at the interest rate defined in the loan documents. The Partnership recognizes interest income for the interest earned related to these loans. The outstanding amount of Partnership loans is reflected as a reduction to total Partnership capital. As of March 31, 2017 and December 31, 2016, the outstanding amount of Partnership loans was $335 and $266, respectively. Interest income earned from these loans, which is included in interest and dividends in the Consolidated Statements of Income, was $3 and $2 for the three month periods ended March 31, 2017 and March 25, 2016, respectively. The following table shows the roll forward of outstanding Partnership loans for: Three Months Ended March 31, March 25, 2017 2016 Partnership loans outstanding at beginning of period $ 266 $ 218 Partnership loans issued during the period 140 139 Repayment of Partnership loans during the period (71 ) (60 ) Total Partnership loans outstanding $ 335 $ 297 The minimum 7.5% annual payment on the face amount of limited partnership capital was $17 for both the three month periods ended March 31, 2017 and March 25, 2016, respectively. These amounts are included as a component of interest expense in the Consolidated Statements of Income. The Partnership filed a Registration Statement on Form S-8 with the U.S. Securities and Exchange Commission ("SEC") on January 17, 2014, to register $350 of Interests to be issued pursuant to the Partnership's 2014 Employee Limited Partnership Interest Purchase Plan ("Plan"). The Partnership previously issued approximately $293 of Interests under the Plan. The remaining $57 of Interests may be issued under the Plan at the discretion of the Partnership in the future.

Net Capital Requirements

Net Capital Requirements	3 Months Ended
	Mar. 31, 2017
Brokers And Dealers [Abstract]
Net Capital Requirements	NOTE 4 – NET CAPITAL REQUIREMENTS As a result of its activities as a U.S. broker-dealer, Edward Jones is subject to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), and capital compliance rules of the Financial Industry Regulatory Authority (“FINRA”) Rule 4110. Under the alternative method permitted by the rules, Edward Jones must maintain minimum net capital equal to the greater of $0.25 or 2% of aggregate debit items arising from client transactions. The net capital rules also provide that Edward Jones’ partnership capital may not be withdrawn if resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and FINRA to the extent they exceed defined levels, even though such withdrawals would not cause net capital to be less than minimum requirements. The Partnership’s Canada broker-dealer subsidiary is a registered broker-dealer regulated by the Investment Industry Regulatory Organization of Canada (“IIROC”). Under the regulations prescribed by IIROC, the Partnership’s Canada broker-dealer subsidiary is required to maintain minimum levels of risk-adjusted capital, which are dependent on the nature of the Partnership’s Canada broker-dealer subsidiary’s assets and operations. The following table shows the Partnership’s net capital figures for its U.S. and Canada broker-dealer subsidiaries as of: March 31, December 31, 2017 2016 U.S.: Net capital $ 974 $ 998 Net capital in excess of the minimum required $ 918 $ 941 Net capital as a percentage of aggregate debit items 34.7 % 35.0 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 22.6 % 23.1 % Canada: Regulatory risk adjusted capital $ 33 $ 37 Regulatory risk adjusted capital in excess of the minimum required to be held by IIROC $ 27 $ 33 Net capital and the related capital percentages may fluctuate on a daily basis. In addition, Trust Co. was in compliance with its regulatory capital requirements as of March 31, 2017 and December 31, 2016.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Contingencies	NOTE 5 – CONTINGENCIES In the normal course of its business, the Partnership is involved, from time to time, in various legal and regulatory matters, including arbitrations, class actions, other litigation, and examinations, investigations and proceedings by governmental authorities, self-regulatory organizations and other regulators, 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. The Partnership accrues for potential losses for those matters where it is probable that the Partnership will incur a potential loss to the extent that the amount of such potential loss can be reasonably estimated, in accordance with FASB ASC No. 450, Contingencies For such matters where an accrued liability has not been established and the Partnership believes a loss is both reasonably possible and estimable, as well as for matters where an accrued liability has been recorded but for which an exposure to loss in excess of the amount accrued is both reasonably possible and estimable, the current estimated aggregated range of additional possible loss is $0 to $10 as of March 31, 2017. 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 March 31, 2017 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	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Information	NOTE 6 – SEGMENT INFORMATION The Partnership has determined it has two operating and reportable segments based upon geographic location, the U.S. and Canada. Canada segment information, as reported in the following table, is based upon the Consolidated Financial Statements of the Partnership's Canada operations, which primarily occur through a non-guaranteed subsidiary of the Partnership. The U.S. segment information is derived from the Consolidated Financial Statements less the Canada segment information as presented. Pre-variable income represents income before variable compensation expense and before allocations to partners. This is consistent with how management views the segments in order to assess performance. The following table shows financial information for the Partnership’s reportable segments: Three Months Ended March 31, 2017 March 25, 2016 Net revenue: U.S. $ 1,749 $ 1,520 Canada 48 41 Total net revenue $ 1,797 $ 1,561 Pre-variable income (loss): U.S. $ 362 $ 358 Canada (1 ) — Total pre-variable income 361 358 Variable compensation: U.S. 160 163 Canada 4 4 Total variable compensation 164 167 Income (loss) before allocations to partners: U.S. 202 195 Canada (5 ) (4 ) Total income before allocations to partners $ 197 $ 191 The Partnership derived 18% and 20% of its total revenue for the three month periods ended March 31, 2017 and March 25, 2016, respectively, from one mutual fund company, which includes the funds that mutual fund company advised. The revenue generated from this company relates 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.

Offsetting Assets and Liabiliti

Offsetting Assets and Liabilities	3 Months Ended
	Mar. 31, 2017
Offsetting [Abstract]
Offsetting Assets and Liabilities	NOTE 7 – OFFSETTING ASSETS AND LIABILITIES The Partnership does not offset financial instruments in the Consolidated Statements of Financial Condition. However, the Partnership enters into master netting arrangements with counterparties for securities purchased under agreements to resell that are subject to net settlement in the event of default. These agreements create a right of offset for the amounts due to and due from the same counterparty in the event of default or bankruptcy. The following table shows the Partnership's securities purchased under agreements to resell as of: Gross amounts of Gross amounts offset in the Consolidated Statements Net amounts presented Consolidated Statements Gross amounts not offset in the Consolidated Financial Condition recognized assets Financial Condition Financial Condition Financial instruments Securities collateral (1) Net amount Mar 31, 2017 $ 769 — 769 — (769 ) $ — Dec 31, 2016 $ 892 — 892 — (892 ) $ — (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.

Introduction and Basis of Pre13

Introduction and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
The Partnership's Business and Basis of Accounting	The accompanying Consolidated Financial Statements include the accounts of The Jones Financial Companies, L.L.L.P. and all wholly-owned subsidiaries (collectively, the “Partnership”). All material intercompany balances and transactions have been eliminated in consolidation. Non-controlling minority interests are accounted for under the equity method. The results of the Partnership’s subsidiaries in Canada as of February 28, 2017 and November 30, 2016 are included in the Partnership’s Consolidated Statement of Financial Condition and the results for the three month periods ended February 28, 2017 and 2016 are included in the Partnership’s Consolidated Statements of Income and Consolidated Statements of Cash Flows because of the timing of the Partnership’s financial reporting process. The Partnership’s principal operating subsidiary, Edward D. Jones & Co., L.P. (“Edward Jones”), is a registered broker-dealer and investment adviser in the United States (“U.S.”), and one of Edward Jones’ subsidiaries is a registered 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 to, fees related to assets held by and account services provided to its clients, including investment advisory services, the purchase or sale of securities and insurance products, and principal transactions. The Partnership conducts business throughout the U.S. and Canada with its clients, various brokers, dealers, clearing organizations, depositories and banks. Trust services are offered to Edward Jones’ U.S. clients through Edward Jones Trust Company (“Trust Co.”), a wholly-owned subsidiary of the Partnership. Olive Street Investment Advisers, LLC, a wholly-owned subsidiary of the Partnership, provides investment advisory services to the sub-advised mutual funds in the Bridge Builder® Trust. As disclosed in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2016 ("Annual Report"), in January 2017 the Partnership completed the acquisition of the remaining 50.5% general partner interest in Passport Research, Ltd. ("Passport Research") from Federated Investment Management Company. The transfer did not have a material impact on the Consolidated Financial Statements. Passport Research is the investment adviser to the Edward Jones Money Market Fund and as investment adviser, earns fund adviser fee revenue and incurs expenses for sub-adviser fees. The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the U.S. (“GAAP”) which require the use of certain estimates by management in determining the Partnership’s assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The Partnership has evaluated subsequent events through the date these Consolidated Financial Statements were issued and identified no matters requiring disclosure. The interim financial information included herein is unaudited. However, in the opinion of management, such information includes all adjustments, consisting primarily of normal recurring accruals, which are necessary for a fair statement of the results of interim operations. Certain prior period amounts have been reclassified to conform to the current period presentation. There have been no material changes to the Partnership’s significant accounting policies or disclosures of recently issued accounting standards as described in Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 of the Partnership's Annual Report. The results of operations for the three month period ended March 31, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017. These unaudited Consolidated Financial Statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and notes thereto included in the Annual Report.
Fair Value	The Partnership's valuation methodologies for financial assets and financial liabilities measured at fair value and the fair value hierarchy are described in Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 of the Partnership's Annual Report. There have been no material changes to the Partnership's valuation methodologies since December 31, 2016. The Partnership did not have any assets or liabilities categorized as Level III during the three and twelve month periods ended March 31, 2017 and December 31, 2016, respectively. In addition, there were no transfers into or out of Levels I, II or III during these periods.
Contingencies (ASC No.450)	The Partnership assesses its liabilities and contingencies utilizing available information. The Partnership accrues for potential losses for those matters where it is probable that the Partnership will incur a potential loss to the extent that the amount of such potential loss can be reasonably estimated, in accordance with FASB ASC No. 450, Contingencies

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Partnership's Financial Assets at Fair Value	The following tables show the Partnership’s financial assets measured at fair value: Financial Assets at Fair Value as of March 31, 2017 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 250 $ — $ 250 Investments segregated under federal regulations: U.S. treasuries $ 3,993 $ — $ — $ 3,993 Certificates of deposit — 150 — 150 Total investments segregated under federal regulations $ 3,993 $ 150 $ — $ 4,143 Securities owned: Investment securities: Mutual funds (1) $ 212 $ — $ — $ 212 Equities 4 — — 4 Government and agency obligations 3 — — 3 Corporate bonds and notes — 1 — 1 Total investment securities $ 219 $ 1 $ — $ 220 Inventory securities: State and municipal obligations $ — $ 33 $ — $ 33 Equities 23 — — 23 Mutual funds 19 — — 19 Corporate bonds and notes — 5 — 5 Certificates of deposit — 4 — 4 Total inventory securities $ 42 $ 42 $ — $ 84 (1) The mutual funds balance consists primarily of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan. Financial Assets at Fair Value as of December 31, 2016 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 150 $ — $ 150 Investments segregated under federal regulations: U.S. treasuries $ 3,999 $ — $ — $ 3,999 Certificates of deposit — 150 — 150 Total investments segregated under federal regulations $ 3,999 $ 150 $ — $ 4,149 Securities owned: Investment securities: Mutual funds $ 209 $ — $ — $ 209 Government and agency obligations 9 — — 9 Equities 5 — — 5 Corporate bonds and notes — 1 — 1 Total investment securities $ 223 $ 1 $ — $ 224 Inventory securities: Equities $ 17 $ — $ — $ 17 State and municipal obligations — 16 — 16 Mutual funds 7 — — 7 Corporate bonds and notes — 2 — 2 Other — 1 — 1 Total inventory securities $ 24 $ 19 $ — $ 43

Partnership Capital (Tables)

Partnership Capital (Tables)	3 Months Ended
	Mar. 31, 2017
Other Liabilities Disclosure [Abstract]
Roll Forward of Outstanding Partnership Loans	The following table shows the roll forward of outstanding Partnership loans for: Three Months Ended March 31, March 25, 2017 2016 Partnership loans outstanding at beginning of period $ 266 $ 218 Partnership loans issued during the period 140 139 Repayment of Partnership loans during the period (71 ) (60 ) Total Partnership loans outstanding $ 335 $ 297

Net Capital Requirements (Table

Net Capital Requirements (Tables)	3 Months Ended
	Mar. 31, 2017
Brokers And Dealers [Abstract]
Partnership's Net Capital Figures for U.S. and Canada Broker-Dealer Subsidiaries	The following table shows the Partnership’s net capital figures for its U.S. and Canada broker-dealer subsidiaries as of: March 31, December 31, 2017 2016 U.S.: Net capital $ 974 $ 998 Net capital in excess of the minimum required $ 918 $ 941 Net capital as a percentage of aggregate debit items 34.7 % 35.0 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 22.6 % 23.1 % Canada: Regulatory risk adjusted capital $ 33 $ 37 Regulatory risk adjusted capital in excess of the minimum required to be held by IIROC $ 27 $ 33

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Financial Information for Partnership's Reportable Segments	The following table shows financial information for the Partnership’s reportable segments: Three Months Ended March 31, 2017 March 25, 2016 Net revenue: U.S. $ 1,749 $ 1,520 Canada 48 41 Total net revenue $ 1,797 $ 1,561 Pre-variable income (loss): U.S. $ 362 $ 358 Canada (1 ) — Total pre-variable income 361 358 Variable compensation: U.S. 160 163 Canada 4 4 Total variable compensation 164 167 Income (loss) before allocations to partners: U.S. 202 195 Canada (5 ) (4 ) Total income before allocations to partners $ 197 $ 191

Offsetting Assets and Liabili18

Offsetting Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Offsetting [Abstract]
Schedule of Partnership's Securities Purchased Under Agreement to Resell	The following table shows the Partnership's securities purchased under agreements to resell as of: Gross amounts of Gross amounts offset in the Consolidated Statements Net amounts presented Consolidated Statements Gross amounts not offset in the Consolidated Financial Condition recognized assets Financial Condition Financial Condition Financial instruments Securities collateral (1) Net amount Mar 31, 2017 $ 769 — 769 — (769 ) $ — Dec 31, 2016 $ 892 — 892 — (892 ) $ — (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.

Introduction and Basis of Pre19

Introduction and Basis of Presentation - Additional Information (Detail)	1 Months Ended
	Jan. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Remaining ownership percentage acquired in Passport Research	50.50%

Fair Value - Additional Informa

Fair Value - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair value of level III, assets	$ 0	$ 0
Fair value of level III, liabilities	0	0
Transfers between levels I, II and III	$ 0	$ 0

Fair Value - Partnership's Fina

Fair Value - Partnership's Financial Assets at Fair Value (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Investments segregated under federal regulations:
Total investments segregated under federal regulations	$ 4,143	$ 4,149
Investment securities:
Total investment securities	220	224
Inventory securities:
Total inventory securities	84	43
Equities [Member]
Investment securities:
Total investment securities	4	5
Inventory securities:
Total inventory securities	23	17
Corporate Bonds and Notes [Member]
Investment securities:
Total investment securities	1	1
Inventory securities:
Total inventory securities	5	2
Government and Agency Obligations [Member]
Investment securities:
Total investment securities	3	9
Other [Member]
Inventory securities:
Total inventory securities		1
U.S. Treasuries [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	3,993	3,999
Mutual Funds [Member]
Investment securities:
Total investment securities	212	209
Inventory securities:
Total inventory securities	19	7
State and Municipal Obligations [Member]
Inventory securities:
Total inventory securities	33	16
Certificates of Deposit [Member]
Cash equivalents:
Cash and cash equivalents	250	150
Investments segregated under federal regulations:
Total investments segregated under federal regulations	150	150
Inventory securities:
Total inventory securities	4
Level I [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	3,993	3,999
Investment securities:
Total investment securities	219	223
Inventory securities:
Total inventory securities	42	24
Level I [Member] | Equities [Member]
Investment securities:
Total investment securities	4	5
Inventory securities:
Total inventory securities	23	17
Level I [Member] | Government and Agency Obligations [Member]
Investment securities:
Total investment securities	3	9
Level I [Member] | U.S. Treasuries [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	3,993	3,999
Level I [Member] | Mutual Funds [Member]
Investment securities:
Total investment securities	212	209
Inventory securities:
Total inventory securities	19	7
Level II [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	150	150
Investment securities:
Total investment securities	1	1
Inventory securities:
Total inventory securities	42	19
Level II [Member] | Corporate Bonds and Notes [Member]
Investment securities:
Total investment securities	1	1
Inventory securities:
Total inventory securities	5	2
Level II [Member] | Other [Member]
Inventory securities:
Total inventory securities		1
Level II [Member] | State and Municipal Obligations [Member]
Inventory securities:
Total inventory securities	33	16
Level II [Member] | Certificates of Deposit [Member]
Cash equivalents:
Cash and cash equivalents	250	150
Investments segregated under federal regulations:
Total investments segregated under federal regulations	150	$ 150
Inventory securities:
Total inventory securities	$ 4

Partnership Capital - Additiona

Partnership Capital - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016	Dec. 31, 2016	Dec. 31, 2015	Jan. 17, 2014
Partners Capital Account [Line Items]
Period of loans made by Partnership to general partners	1 year
Outstanding amount of partner loans financed through the Partnership	$ 335	$ 297	$ 266	$ 218
Interest income from outstanding amount of general partner loan	$ 3	$ 2
Limited partnership's minimum annual payment rate	7.50%	7.50%
Limited partnership's minimum return, value	$ 17	$ 17
2014 Limited Partnership Offering [Member]
Partners Capital Account [Line Items]
Limited partnership amount registered					$ 350
Limited partnership interests previously issued	293
Remaining limited partnership interests that may be issued	$ 57

Partnership Capital - Roll Forw

Partnership Capital - Roll Forward of Outstanding Partnership Loans (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Partners Capital Notes [Abstract]
Partnership loans outstanding at beginning of period	$ 266	$ 218
Partnership loans issued during the period	140	139
Repayment of Partnership loans during the period	(71)	(60)
Partnership loans outstanding at end of period	$ 335	$ 297

Net Capital Requirements - Addi

Net Capital Requirements - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017USD ($)
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-Dealer Subsidiaries (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
United States [Member]
Regulatory Capital Requirements
Net capital	$ 974	$ 998
Net capital in excess of the minimum required	$ 918	$ 941
Net capital as a percentage of aggregate debit items	34.70%	35.00%
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items	22.60%	23.10%
Canada [Member]
Regulatory Capital Requirements
Regulatory risk adjusted capital	$ 33	$ 37
Regulatory risk adjusted capital in excess of the minimum required to be held by IIROC	$ 27	$ 33

Contingencies - Additional Info

Contingencies - Additional Information (Detail) $ in Millions	Mar. 31, 2017USD ($)
Minimum [Member]
Loss Contingencies [Line Items]
Current estimated possible loss	$ 0
Maximum [Member]
Loss Contingencies [Line Items]
Current estimated possible loss	$ 10

Segment Information - Additiona

Segment Information - Additional Information (Detail) - Segment	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Segment Reporting [Abstract]
Number of operating segments	2
Number of reportable segments	2
Partnership's total revenue derived from one mutual fund company	18.00%	20.00%

Segment Information - Financial

Segment Information - Financial Information for Partnership's Reportable Segments (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 25, 2016
Net revenue:
Total net revenue	$ 1,797	$ 1,561
Pre-variable income (loss):
Total pre-variable income	361	358
Variable compensation:
Total variable compensation	164	167
Income (loss) before allocations to partners:
Total income before allocations to partners	197	191
United States [Member]
Net revenue:
Total net revenue	1,749	1,520
Pre-variable income (loss):
Total pre-variable income	362	358
Variable compensation:
Total variable compensation	160	163
Income (loss) before allocations to partners:
Total income before allocations to partners	202	195
Canada [Member]
Net revenue:
Total net revenue	48	41
Pre-variable income (loss):
Total pre-variable income	(1)
Variable compensation:
Total variable compensation	4	4
Income (loss) before allocations to partners:
Total income before allocations to partners	$ (5)	$ (4)

Offsetting Assets and Liabili29

Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Offsetting Securities Purchased Under Agreements To Resell [Abstract]
Securities purchased under agreements to resell, Gross amounts of recognized assets	$ 769	$ 892
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	769	892
Securities purchased under agreements to resell, Gross amounts not offset in the Consolidated Statements of Financial Condition, Financial instruments	0	0
Securities purchased under agreements to resell, Gross amounts not offset in the Consolidated Statements of Financial Condition, Securities collateral	(769)	(892)
Securities purchased under agreements to resell, Net amount	$ 0	$ 0

Offsetting Assets and Liabili30

Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Parenthetical) (Detail) - Minimum [Member]	Mar. 31, 2017	Dec. 31, 2016
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%