Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 29, 2019 | Apr. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 29, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | N/A | |
Entity Registrant Name | JONES FINANCIAL COMPANIES LLLP | |
Entity Central Index Key | 0000815917 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Limited Partnership Interests Outstanding | 1,260,268 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Cash and cash equivalents | $ 1,370 | $ 1,498 |
Cash and investments segregated under federal regulations | 7,052 | 8,241 |
Securities purchased under agreements to resell | 1,232 | 911 |
Receivables from: | ||
Clients | 3,317 | 3,359 |
Mutual funds, insurance companies and other | 620 | 555 |
Brokers, dealers and clearing organizations | 300 | 261 |
Securities owned, at fair value: | ||
Investment securities | 270 | 250 |
Inventory securities | 57 | 43 |
Lease right-of-use asset | 795 | 0 |
Equipment, property and improvements, at cost, net of accumulated depreciation and amortization | 566 | 555 |
Other assets | 116 | 142 |
TOTAL ASSETS | 15,695 | 15,815 |
Payables to: | ||
Clients | 10,223 | 11,117 |
Brokers, dealers and clearing organizations | 95 | 90 |
Lease liability | 809 | 0 |
Accrued compensation and employee benefits | 1,182 | 1,465 |
Accounts payable, accrued expenses and other | 212 | 288 |
Total liabilities before partnership capital | 12,521 | 12,960 |
Contingencies (Note 8) | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 2,963 | 2,507 |
Reserve for anticipated withdrawals | 211 | 348 |
Total partnership capital subject to mandatory redemption | 3,174 | 2,855 |
TOTAL LIABILITIES | 15,695 | 15,815 |
Limited Partnership Capital [Member] | ||
Payables to: | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 1,261 | 884 |
Subordinated Limited Partnership Capital [Member] | ||
Payables to: | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | 523 | 504 |
General Partnership Capital [Member] | ||
Payables to: | ||
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans | $ 1,179 | $ 1,119 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Revenue: | ||
Revenue | $ 2,099 | $ 1,989 |
Interest and dividends | 103 | 79 |
Other revenue | 28 | 6 |
Total revenue | 2,230 | 2,074 |
Interest expense | 40 | 32 |
Net revenue | 2,190 | 2,042 |
Operating expenses: | ||
Compensation and benefits | 1,536 | 1,454 |
Occupancy and equipment | 119 | 109 |
Communications and data processing | 86 | 80 |
Fund sub-adviser fees | 36 | 30 |
Advertising | 24 | 25 |
Professional and consulting fees | 23 | 18 |
Postage and shipping | 15 | 14 |
Other operating expenses | 110 | 79 |
Total operating expenses | 1,949 | 1,809 |
Income before allocations to partners | 241 | 233 |
Allocations to partners: | ||
Limited partners | 37 | 27 |
Subordinated limited partners | 29 | 30 |
General partners | 175 | 176 |
Net Income | $ 0 | $ 0 |
Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding | $ 29.20 | $ 30.16 |
Weighted average $1,000 equivalent limited partnership units outstanding | 1,262,740 | 893,700 |
Asset-based Fee Revenue [Member] | ||
Revenue: | ||
Revenue | $ 1,559 | $ 1,453 |
Account and Activity Fee Revenue [Member] | ||
Revenue: | ||
Revenue | 172 | 172 |
Total Fee Revenue [Member] | ||
Revenue: | ||
Revenue | 1,731 | 1,625 |
Trade Revenue [Member] | ||
Revenue: | ||
Revenue | $ 368 | $ 364 |
Consolidated Statements of In_2
Consolidated Statements of Income (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Income Statement [Abstract] | ||
Limited partnership interest value | $ 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, 2017 | $ 2,795 | $ 956 | $ 499 | $ 1,340 |
Reserve for anticipated withdrawals at Dec. 31, 2017 | (290) | (66) | (36) | (188) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2017 | 2,505 | 890 | 463 | 1,152 |
Partnership loans outstanding at beginning of year at Dec. 31, 2017 | 297 | 3 | 294 | |
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2017 | 2,802 | 890 | 466 | 1,446 |
Issuance of partnership interests | 225 | 4 | 51 | 170 |
Redemption of partnership interests | (159) | (2) | (6) | (151) |
Income allocated to partners | 233 | 27 | 30 | 176 |
Distributions | (12) | (1) | (11) | |
Total partnership capital, including capital financed with partnership loans at Mar. 30, 2018 | 3,089 | 919 | 540 | 1,630 |
Partnership loans outstanding, reduction to arrive at Partnership Capital at Mar. 30, 2018 | (381) | (2) | (379) | |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Mar. 30, 2018 | 2,708 | 919 | 538 | 1,251 |
Reserve for anticipated withdrawals at Mar. 30, 2018 | (196) | (27) | (29) | (140) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Mar. 30, 2018 | 2,512 | 892 | 509 | 1,111 |
Partnership loans outstanding at end of year at Mar. 30, 2018 | 381 | |||
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2018 | 2,855 | 956 | 545 | 1,354 |
Reserve for anticipated withdrawals at Dec. 31, 2018 | (348) | (72) | (41) | (235) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2018 | 2,507 | 884 | 504 | 1,119 |
Partnership loans outstanding at beginning of year at Dec. 31, 2018 | 332 | 4 | 328 | |
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2018 | 2,839 | 884 | 508 | 1,447 |
Issuance of partnership interests | 593 | 380 | 51 | 162 |
Redemption of partnership interests | (71) | (3) | (31) | (37) |
Income allocated to partners | 241 | 37 | 29 | 175 |
Distributions | (6) | (6) | ||
Total partnership capital, including capital financed with partnership loans at Mar. 29, 2019 | 3,596 | 1,298 | 557 | 1,741 |
Partnership loans outstanding, reduction to arrive at Partnership Capital at Mar. 29, 2019 | (422) | (5) | (417) | |
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Mar. 29, 2019 | 3,174 | 1,298 | 552 | 1,324 |
Reserve for anticipated withdrawals at Mar. 29, 2019 | (211) | (37) | (29) | (145) |
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Mar. 29, 2019 | 2,963 | $ 1,261 | $ 523 | $ 1,179 |
Partnership loans outstanding at end of year at Mar. 29, 2019 | $ 422 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
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 | 241 | 233 |
Depreciation and amortization | 25 | 22 |
Changes in assets and liabilities: | ||
Investments segregated under federal regulations | (491) | 402 |
Securities purchased under agreements to resell | (321) | 340 |
Net payable to clients | (852) | (821) |
Net receivable from brokers, dealers and clearing organizations | (34) | 45 |
Receivable from mutual funds, insurance companies and other | (65) | (60) |
Securities owned | (34) | (40) |
Lease right-of-use asset | 10 | 0 |
Other assets | 26 | 6 |
Lease liability | 4 | 0 |
Accrued compensation and employee benefits | (283) | (263) |
Accounts payable, accrued expenses and other | (76) | 24 |
Net cash used in operating activities | (1,850) | (112) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of equipment, property and improvements | (36) | (25) |
Cash used in investing activities | (36) | (25) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of partnership interests | 430 | 57 |
Redemption of partnership interests | (71) | (159) |
Distributions from partnership capital | (281) | (218) |
Net cash provided by (used in) financing activities | 78 | (320) |
Net decrease in cash, cash equivalents and restricted cash | (1,808) | (457) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | ||
Beginning of period | 8,737 | 8,537 |
End of period | $ 6,929 | $ 8,080 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 3 Months Ended |
Mar. 29, 2019 | |
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” or "JFC"). All material intercompany balances and transactions have been eliminated in consolidation. The financial position of the Partnership’s subsidiaries in Canada as of February 28, 2019 and November 30, 2018 are included in the Partnership’s Consolidated Statements of Financial Condition and the results for the three month periods ended February 28, 2019 and 2018 are included in the Partnership’s Consolidated Statements of Income, Consolidated Statements of Changes in Partnership Capital Subject to Mandatory Redemption, 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 is a retail brokerage business and primarily derives revenues from fees for providing investment advisory and other account services to its clients, fees for assets held by clients, the distribution of mutual fund shares, and commissions for the purchase or sale of securities and the purchase of insurance products. 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 ("BB Trust"). Passport Research, Ltd., a wholly-owned subsidiary of the Partnership, provides investment advisory services to the Edward Jones Money Market Fund (the "Fund"). The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“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. 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 on Form 10-K for the year ended December 31, 2018 (the "Annual Report"), except as disclosed in Note 2 herein. The results of operations for the three month period ended March 29, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019. 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. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Standards | 3 Months Ended |
Mar. 29, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recently Issued and Adopted Accounting Standards | NOTE 2 – RECENTLY ISSUED AND ADOPTED ACCOUNTING STANDARDS In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) Leases (Topic 842) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments |
Leases
Leases | 3 Months Ended |
Mar. 29, 2019 | |
Leases [Abstract] | |
Leases | NOTE 3 – LEASES The Partnership leases branch office space under numerous operating leases from non-affiliates and financial advisors. Branch offices are generally leased for terms of five years and generally contain a renewal option. Renewal options are not included in the lease term because it is not reasonably certain the Partnership will exercise the renewal option. The Partnership also leases a few of its home office spaces from non-affiliates with terms ranging from 12 to 30 years. The Partnership recognizes lease liabilities for future lease payments and lease right-of-use assets for the right of use of an underlying asset within a contract. Current leases are all classified as operating leases. Lease right-of-use assets and lease liabilities are recognized on the Consolidated Statements of Financial Condition at commencement date and calculated as the present value of the sum of the remaining fixed lease payments over the lease term. The lease right-of-use asset includes the impact from the timing of lease payments and straight-line rent expense. The Partnership used its incremental borrowing rate based on information available at lease commencement as leases do not contain a readily determinable implicit rate. A single lease cost, or rent expense, is recognized on a straight-line basis over the lease term. The Partnership does not separate lease components (i.e. fixed payments including rent, real estate taxes and insurance costs) from non-lease components (i.e. common-area maintenance) and recognizes them as a single lease component. Variable lease payments not included within lease contracts are expensed as incurred. For the three months ended March 29, 2019, cash paid for amounts included in the measurement of operating lease liabilities was $67 and lease right-of-use assets obtained in exchange for new operating lease liabilities was $67. As of March 29, 2019, the weighted-average remaining lease term was four years, and the weighted-average discount rate was 3.5%. For the first quarter of 2019, operating lease cost was $66 and variable lease costs not included in the lease liability were $14, resulting in a total lease cost of $80. The Partnership's future undiscounted cash outflows for operating leases as of March 29, 2019 are summarized below: 2019 $ 202 2020 232 2021 184 2022 128 2023 74 Thereafter 60 Total lease payments 880 Less: Interest 71 Total present value of lease liabilities $ 809 While the rights and obligations for leases that have not yet commenced are not significant, the Partnership does continually enter into new branch office leases. |
Revenue
Revenue | 3 Months Ended |
Mar. 29, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | NOTE 4 – REVENUE As of March 29, 2019 and December 31, 2018, $421 and $377, respectively, of the receivable from clients balance and $295 and $278, respectively, of the receivable from mutual funds, insurance companies and other balance related to revenue contracts with customers. The Partnership derived 14% and 15% of its total revenue for the three month periods ended March 29, 2019 and March 30, 2018, respectively, from one mutual fund complex. The following table shows the Partnership's disaggregated revenue information. See Note 9 for segment information. Three Months Ended March 29, 2019 Three Months Ended March 30, 2018 U.S. Canada Total U.S. Canada Total Revenue Fee revenue: Asset-based fee revenue: Advisory programs fees $ 1,081 $ 15 $ 1,096 $ 982 $ 13 $ 995 Service fees 292 21 313 305 22 327 Other asset-based fees 150 — 150 131 — 131 Total asset-based fee revenue 1,523 36 1,559 1,418 35 1,453 Account and activity fee revenue: Shareholder accounting services fees 107 — 107 109 — 109 Other account and activity fee revenue 62 3 65 59 4 63 Total account and activity fee revenue 169 3 172 168 4 172 Total fee revenue 1,692 39 1,731 1,586 39 1,625 Trade revenue: Commissions 322 11 333 318 14 332 Principal transactions 34 1 35 31 1 32 Total trade revenue 356 12 368 349 15 364 Total revenue from customers 2,048 51 2,099 1,935 54 1,989 Net interest and dividends and other revenue 87 4 91 49 4 53 Net revenue $ 2,135 $ 55 $ 2,190 $ 1,984 $ 58 $ 2,042 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 5 – 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, 2018. The Partnership did not have any assets or liabilities categorized as Level III during the three and twelve month periods ended March 29, 2019 and December 31, 2018, respectively. The following tables show the Partnership’s financial assets measured at fair value: Financial Assets at Fair Value as of March 29, 2019 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 298 $ — $ 298 Investments segregated under federal regulations: U.S. treasuries $ 1,493 $ — $ — $ 1,493 Securities owned: Investment securities: Mutual funds (1) $ 264 $ — $ — $ 264 Government and agency obligations 3 — — 3 Equities 2 — — 2 Corporate bonds and notes — 1 — 1 Total investment securities $ 269 $ 1 $ — $ 270 Inventory securities: State and municipal obligations $ — $ 27 $ — $ 27 Equities 22 — — 22 Corporate bonds and notes — 3 — 3 Certificates of deposit — 3 — 3 Mutual funds 2 — — 2 Total inventory securities $ 24 $ 33 $ — $ 57 (1) The mutual funds balance consists of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan and securities held in relation to profit sharing contributions on behalf of service partners. Financial Assets at Fair Value as of December 31, 2018 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 298 $ — $ 298 Investments segregated under federal regulations: U.S. treasuries $ 998 $ — $ — $ 998 Securities owned: Investment securities: Mutual funds (1) $ 244 $ — $ — $ 244 Government and agency obligations 3 — — 3 Equities 2 — — 2 Corporate bonds and notes — 1 — 1 Total investment securities $ 249 $ 1 $ — $ 250 Inventory securities: Equities $ 16 $ — $ — $ 16 State and municipal obligations — 15 — 15 Mutual funds 6 — — 6 Certificates of deposit — 3 — 3 Corporate bonds and notes — 3 — 3 Total inventory securities $ 22 $ 21 $ — $ 43 |
Partnership Capital
Partnership Capital | 3 Months Ended |
Mar. 29, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Partnership Capital | NOTE 6 – 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 Twentieth Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated August 6, 2018 (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 29, 2019 and December 31, 2018, the outstanding amount of Partnership loans was $422 and $332, respectively. Interest income earned from these loans, which is included in interest and dividends in the Consolidated Statements of Income, was $6 and $4 The following table shows the roll forward of outstanding Partnership loans for: Three Months Ended March 29, March 30, 2019 2018 Partnership loans outstanding at beginning of period $ 332 $ 297 Partnership loans issued during the period 163 168 Repayment of Partnership loans during the period (73 ) (84 ) Total Partnership loans outstanding $ 422 $ 381 The minimum 7.5% annual payment on the face amount of limited partnership capital was $24 and $17 for the three month periods ended March 29, 2019 and March 30, 2018, 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 12, 2018, to register $450 of Interests to be issued pursuant to the Partnership's 2018 Employee Limited Partnership Interest Purchase Plan (the "2018 Plan"). The Partnership issued approximately $380 of Interests under the 2018 Plan on January 2, 2019. The remaining $70 of Interests may be issued under the Plan at the discretion of the Managing Partner in the future. |
Net Capital Requirements
Net Capital Requirements | 3 Months Ended |
Mar. 29, 2019 | |
Brokers And Dealers [Abstract] | |
Net Capital Requirements | NOTE 7 – 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 (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 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 capital figures for its U.S. and Canada broker-dealer subsidiaries as of: March 29, December 31, 2019 2018 U.S.: Net capital $ 1,372 $ 1,280 Net capital in excess of the minimum required $ 1,315 $ 1,221 Net capital as a percentage of aggregate debit items 48.1 % 43.6 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 28.8 % 28.3 % Canada: Regulatory risk-adjusted capital $ 35 $ 40 Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC $ 24 $ 39 U.S. net capital, Canada risk-adjusted capital and the related capital percentages may fluctuate on a daily basis. In addition, Trust Co. was in compliance with its regulatory capital requirements. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 29, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 8 – 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. These matters include: Mutual Fund Share Class Waivers . As previously disclosed, on October 26, 2015, Edward Jones, without admitting or denying the findings, entered into a settlement agreement with FINRA in connection with its investigation of possible violations of the federal securities laws or rules with respect to mutual fund purchases and sales charge waivers for certain retirement plan and charitable organization accounts. On June 12, 2015, the Division of Enforcement of the SEC informed Edward Jones that it is also investigating this matter. The SEC’s review is ongoing. Consistent with its practice, Edward Jones is cooperating fully with the SEC with respect to its investigation. Retirement Plan Litigation . On August 19, 2016, JFC, Edward Jones and certain other defendants were named in a putative class action lawsuit ( ) filed in the U.S. District Court for the Eastern District of Missouri brought under the Employee Retirement Income Security Act of 1974, as amended, by a participant in the Edward D. Jones & Co. Profit Sharing and 401(k) Plan (the "Retirement Plan"). The lawsuit alleges that the defendants breached their fiduciary duties to Retirement Plan participants and seeks declaratory and equitable relief and monetary damages on behalf of the Retirement Plan. The defendants filed a motion to dismiss the lawsuit which was granted in part dismissing the claim against JFC, and denied in part as to all other defendants on January 26, 2017. On November 11, 2016, a substantially similar lawsuit ( Schultz, et al. v. Edward D. Jones & Co., L.P., et al. Schultz McDonald Schultz Wage-and-Hour Class Action. On March 13, 2018, JFC and Edward Jones were named as defendants in a purported collective and class action lawsuit ( ) filed in the U.S. District Court for the Northern District of Illinois by four former financial advisors. The lawsuit was brought under the Fair Labor Standards Act as well as Missouri and Illinois law and alleges that the defendants unlawfully attempted to recoup training costs from departing financial advisors and failed to pay all overtime owed to financial advisor trainees among other claims. The lawsuit seeks declaratory and injunctive relief, compensatory and liquidated damages. JFC and Edward Jones deny the allegations and intend to vigorously defend against the allegations in this lawsuit. On March 19, 2019, the court entered an order granting the defendants' motion to dismiss all claims, but permitting the plaintiffs to amend and re-file certain of their claims. Securities Class Action. On March 30, 2018, Edward Jones and its affiliated entities and individuals were named as defendants in a putative class action ( filed in the U.S. District Court for the Eastern District of California. The lawsuit was brought under the Securities Act of 1933, as amended (the "Securities Act"), and the Exchange Act, as well as Missouri and California law and alleges that the defendants inappropriately transitioned clients from commission-based accounts to fee-based programs. The plaintiffs have requested declaratory, equitable, and exemplary relief, and compensatory damages. Edward Jones and its affiliated entities and individuals deny the allegations and intend to vigorously defend this lawsuit. Discrimination Class Action . On May 24, 2018, Edward Jones and JFC were named as defendants in a putative class action lawsuit ( ) filed in the U.S. District Court for the Northern District of Illinois by a former financial advisor. An amended complaint was filed on September 24, 2018, under 42 U.S.C. § 1981, alleging that the defendants discriminated against the former financial advisor and financial advisor trainees on the basis of race. On November 26, 2018, the plaintiffs filed a second amended complaint adding an allegation of discrimination of Title VII of the Civil Rights Act of 1964. The lawsuit seeks equitable and injunctive relief, as well as compensatory and punitive damages. Edward Jones and JFC deny the allegations and intend to vigorously defend this lawsuit. In addition to these matters, 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 Accounting Standards Codification 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 up to $32 as of March 29, 2019. 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 29, 2019 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. 29, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 9 – 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 29, 2019 March 30, 2018 Net revenue: U.S. $ 2,135 $ 1,984 Canada 55 58 Total net revenue $ 2,190 $ 2,042 Pre-variable income (loss): U.S. $ 488 $ 466 Canada (1 ) 3 Total pre-variable income 487 469 Variable compensation: U.S. 240 230 Canada 6 6 Total variable compensation 246 236 Income (loss) before allocations to partners: U.S. 248 236 Canada (7 ) (3 ) Total income before allocations to partners $ 241 $ 233 |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 3 Months Ended |
Mar. 29, 2019 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | NOTE 10 – 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 March 29, 2019 $ 1,232 — 1,232 — (1,232 ) $ — December 31, 2018 $ 911 — 911 — (911 ) $ — (1) Actual collateral was 102% of the related assets in U.S. agreements and 100% in Canada agreements for all periods presented. |
Cash Flow Information
Cash Flow Information | 3 Months Ended |
Mar. 29, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | NOTE 11 – CASH FLOW INFORMATION The following table shows supplemental cash flow information for: Three Months Ended March 29, 2019 March 30, 2018 Cash paid for interest $ 40 $ 31 Cash paid for taxes $ 2 $ 3 Non-cash activities: Issuance of general partnership interests through partnership loans in current period $ 163 $ 168 Repayment of partnership loans through distributions from partnership capital in current period $ 73 $ 84 Lease right-of-use assets obtained in exchange for lease obligations $ 67 $ - The following table reconciles certain line items on the Consolidated Statements of Financial Condition to the cash, cash equivalents and restricted cash balance on the Consolidated Statements of Cash Flows as of: March 29, 2019 March 30, 2018 Cash and cash equivalents $ 1,370 $ 1,017 Cash and investments segregated under federal regulations 7,052 9,069 Less: Investments segregated under federal regulations 1,493 2,006 Total cash, cash equivalents and restricted cash $ 6,929 $ 8,080 Restricted cash represents cash segregated in special reserve bank accounts for the benefit of U.S. clients pursuant to the Customer Protection Rule 15c3-3 under the Exchange Act. |
Introduction and Basis of Pre_2
Introduction and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 29, 2019 | |
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” or "JFC"). All material intercompany balances and transactions have been eliminated in consolidation. The financial position of the Partnership’s subsidiaries in Canada as of February 28, 2019 and November 30, 2018 are included in the Partnership’s Consolidated Statements of Financial Condition and the results for the three month periods ended February 28, 2019 and 2018 are included in the Partnership’s Consolidated Statements of Income, Consolidated Statements of Changes in Partnership Capital Subject to Mandatory Redemption, 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 is a retail brokerage business and primarily derives revenues from fees for providing investment advisory and other account services to its clients, fees for assets held by clients, the distribution of mutual fund shares, and commissions for the purchase or sale of securities and the purchase of insurance products. 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 ("BB Trust"). Passport Research, Ltd., a wholly-owned subsidiary of the Partnership, provides investment advisory services to the Edward Jones Money Market Fund (the "Fund"). The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“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. 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 on Form 10-K for the year ended December 31, 2018 (the "Annual Report"), except as disclosed in Note 2 herein. The results of operations for the three month period ended March 29, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019. 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, 2018 |
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 Accounting Standards Codification No. 450, Contingencies |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Leases [Abstract] | |
Schedule of Future Undiscounted Cash Outflows for Operating Leases | The Partnership's future undiscounted cash outflows for operating leases as of March 29, 2019 are summarized below: 2019 $ 202 2020 232 2021 184 2022 128 2023 74 Thereafter 60 Total lease payments 880 Less: Interest 71 Total present value of lease liabilities $ 809 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Partnership's Disaggregated Revenue | The following table shows the Partnership's disaggregated revenue information. See Note 9 for segment information. Three Months Ended March 29, 2019 Three Months Ended March 30, 2018 U.S. Canada Total U.S. Canada Total Revenue Fee revenue: Asset-based fee revenue: Advisory programs fees $ 1,081 $ 15 $ 1,096 $ 982 $ 13 $ 995 Service fees 292 21 313 305 22 327 Other asset-based fees 150 — 150 131 — 131 Total asset-based fee revenue 1,523 36 1,559 1,418 35 1,453 Account and activity fee revenue: Shareholder accounting services fees 107 — 107 109 — 109 Other account and activity fee revenue 62 3 65 59 4 63 Total account and activity fee revenue 169 3 172 168 4 172 Total fee revenue 1,692 39 1,731 1,586 39 1,625 Trade revenue: Commissions 322 11 333 318 14 332 Principal transactions 34 1 35 31 1 32 Total trade revenue 356 12 368 349 15 364 Total revenue from customers 2,048 51 2,099 1,935 54 1,989 Net interest and dividends and other revenue 87 4 91 49 4 53 Net revenue $ 2,135 $ 55 $ 2,190 $ 1,984 $ 58 $ 2,042 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
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 29, 2019 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 298 $ — $ 298 Investments segregated under federal regulations: U.S. treasuries $ 1,493 $ — $ — $ 1,493 Securities owned: Investment securities: Mutual funds (1) $ 264 $ — $ — $ 264 Government and agency obligations 3 — — 3 Equities 2 — — 2 Corporate bonds and notes — 1 — 1 Total investment securities $ 269 $ 1 $ — $ 270 Inventory securities: State and municipal obligations $ — $ 27 $ — $ 27 Equities 22 — — 22 Corporate bonds and notes — 3 — 3 Certificates of deposit — 3 — 3 Mutual funds 2 — — 2 Total inventory securities $ 24 $ 33 $ — $ 57 (1) The mutual funds balance consists of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan and securities held in relation to profit sharing contributions on behalf of service partners. Financial Assets at Fair Value as of December 31, 2018 Level I Level II Level III Total Cash equivalents: Certificates of deposit $ — $ 298 $ — $ 298 Investments segregated under federal regulations: U.S. treasuries $ 998 $ — $ — $ 998 Securities owned: Investment securities: Mutual funds (1) $ 244 $ — $ — $ 244 Government and agency obligations 3 — — 3 Equities 2 — — 2 Corporate bonds and notes — 1 — 1 Total investment securities $ 249 $ 1 $ — $ 250 Inventory securities: Equities $ 16 $ — $ — $ 16 State and municipal obligations — 15 — 15 Mutual funds 6 — — 6 Certificates of deposit — 3 — 3 Corporate bonds and notes — 3 — 3 Total inventory securities $ 22 $ 21 $ — $ 43 |
Partnership Capital (Tables)
Partnership Capital (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
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 29, March 30, 2019 2018 Partnership loans outstanding at beginning of period $ 332 $ 297 Partnership loans issued during the period 163 168 Repayment of Partnership loans during the period (73 ) (84 ) Total Partnership loans outstanding $ 422 $ 381 |
Net Capital Requirements (Table
Net Capital Requirements (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Brokers And Dealers [Abstract] | |
Partnership's Capital Figures for U.S. and Canada Broker-Dealer Subsidiaries | The following table shows the Partnership’s capital figures for its U.S. and Canada broker-dealer subsidiaries as of: March 29, December 31, 2019 2018 U.S.: Net capital $ 1,372 $ 1,280 Net capital in excess of the minimum required $ 1,315 $ 1,221 Net capital as a percentage of aggregate debit items 48.1 % 43.6 % Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items 28.8 % 28.3 % Canada: Regulatory risk-adjusted capital $ 35 $ 40 Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC $ 24 $ 39 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
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 29, 2019 March 30, 2018 Net revenue: U.S. $ 2,135 $ 1,984 Canada 55 58 Total net revenue $ 2,190 $ 2,042 Pre-variable income (loss): U.S. $ 488 $ 466 Canada (1 ) 3 Total pre-variable income 487 469 Variable compensation: U.S. 240 230 Canada 6 6 Total variable compensation 246 236 Income (loss) before allocations to partners: U.S. 248 236 Canada (7 ) (3 ) Total income before allocations to partners $ 241 $ 233 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
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 March 29, 2019 $ 1,232 — 1,232 — (1,232 ) $ — December 31, 2018 $ 911 — 911 — (911 ) $ — (1) Actual collateral was 102% of the related assets in U.S. agreements and 100% in Canada agreements for all periods presented. |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 3 Months Ended |
Mar. 29, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following table shows supplemental cash flow information for: Three Months Ended March 29, 2019 March 30, 2018 Cash paid for interest $ 40 $ 31 Cash paid for taxes $ 2 $ 3 Non-cash activities: Issuance of general partnership interests through partnership loans in current period $ 163 $ 168 Repayment of partnership loans through distributions from partnership capital in current period $ 73 $ 84 Lease right-of-use assets obtained in exchange for lease obligations $ 67 $ - |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash Balance | The following table reconciles certain line items on the Consolidated Statements of Financial Condition to the cash, cash equivalents and restricted cash balance on the Consolidated Statements of Cash Flows as of: March 29, 2019 March 30, 2018 Cash and cash equivalents $ 1,370 $ 1,017 Cash and investments segregated under federal regulations 7,052 9,069 Less: Investments segregated under federal regulations 1,493 2,006 Total cash, cash equivalents and restricted cash $ 6,929 $ 8,080 |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Standards - Additional Information (Detail) - USD ($) | Mar. 29, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Lease right-of-use asset | $ 795,000,000 | $ 0 | |
Lease liability | $ 809,000,000 | $ 0 | |
ASC 842 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Lease right-of-use asset | $ 785,000,000 | ||
Lease liability | 805,000,000 | ||
Reduction in right-of-use asset for deferred rent | 20,000,000 | ||
Cumulative-effect adjustment to the opening balance of Partnership capital | $ 0 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Lessee Lease Description [Line Items] | ||
Cash paid for operating leases | $ 67 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 67 | $ 0 |
Weighted average remaining lease term in years | 4 years | |
Weighted average discount rate | 3.50% | |
Operating lease, cost | $ 66 | |
Variable lease costs not included in the lease liability | 14 | |
Total lease cost | $ 80 | |
Branch Office Space [Member] | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, description | The Partnership leases branch office space under numerous operating leases from non-affiliates and financial advisors. Branch offices are generally leased for terms of five years and generally contain a renewal option. | |
Lessee, operating lease term of contract | 5 years | |
Lessee Operating Lease Home Office Spaces [Member] | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, description | The Partnership also leases a few of its home office spaces from non-affiliates with terms ranging from 12 to 30 years. | |
Minimum [Member] | Lessee Operating Lease Home Office Spaces [Member] | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease term of contract | 12 years | |
Maximum [Member] | Lessee Operating Lease Home Office Spaces [Member] | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating lease term of contract | 30 years |
Leases - Schedule of Future Und
Leases - Schedule of Future Undiscounted Cash Outflows for Operating Leases (Detail) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2018 |
Lessee Disclosure [Abstract] | ||
2019 | $ 202 | |
2020 | 232 | |
2021 | 184 | |
2022 | 128 | |
2023 | 74 | |
Thereafter | 60 | |
Total lease payments | 880 | |
Less: Interest | 71 | |
Lease liability | $ 809 | $ 0 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Mar. 29, 2019USD ($)Customer | Mar. 30, 2018Customer | Dec. 31, 2018USD ($) | |
Disaggregation Of Revenue [Line Items] | |||
Receivable from clients balance | $ 421 | $ 377 | |
Fees from mutual fund, insurance companies and other | $ 295 | $ 278 | |
Number of customers | Customer | 1 | 1 | |
Sales Revenue Net [Member] | Customer [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Concentration Risk, Percentage | 14.00% | 15.00% |
Revenue - Schedule of Partnersh
Revenue - Schedule of Partnership's Disaggregated Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Net revenue | $ 2,099 | $ 1,989 |
Net interest and dividends and other revenue | 91 | 53 |
Net revenue | 2,190 | 2,042 |
United States [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 2,048 | 1,935 |
Net interest and dividends and other revenue | 87 | 49 |
Net revenue | 2,135 | 1,984 |
Canada [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 51 | 54 |
Net interest and dividends and other revenue | 4 | 4 |
Net revenue | 55 | 58 |
Asset-based Fee Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 1,559 | 1,453 |
Asset-based Fee Revenue [Member] | Advisory Programs Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 1,096 | 995 |
Asset-based Fee Revenue [Member] | Service Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 313 | 327 |
Asset-based Fee Revenue [Member] | Other Asset-based Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 150 | 131 |
Asset-based Fee Revenue [Member] | United States [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 1,523 | 1,418 |
Asset-based Fee Revenue [Member] | United States [Member] | Advisory Programs Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 1,081 | 982 |
Asset-based Fee Revenue [Member] | United States [Member] | Service Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 292 | 305 |
Asset-based Fee Revenue [Member] | United States [Member] | Other Asset-based Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 150 | 131 |
Asset-based Fee Revenue [Member] | Canada [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 36 | 35 |
Asset-based Fee Revenue [Member] | Canada [Member] | Advisory Programs Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 15 | 13 |
Asset-based Fee Revenue [Member] | Canada [Member] | Service Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 21 | 22 |
Account and Activity Fee Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 172 | 172 |
Account and Activity Fee Revenue [Member] | Shareholder Accounting Services Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 107 | 109 |
Account and Activity Fee Revenue [Member] | Other Account and Activity Fee Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 65 | 63 |
Account and Activity Fee Revenue [Member] | United States [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 169 | 168 |
Account and Activity Fee Revenue [Member] | United States [Member] | Shareholder Accounting Services Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 107 | 109 |
Account and Activity Fee Revenue [Member] | United States [Member] | Other Account and Activity Fee Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 62 | 59 |
Account and Activity Fee Revenue [Member] | Canada [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 3 | 4 |
Account and Activity Fee Revenue [Member] | Canada [Member] | Other Account and Activity Fee Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 3 | 4 |
Total Fee Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 1,731 | 1,625 |
Total Fee Revenue [Member] | United States [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 1,692 | 1,586 |
Total Fee Revenue [Member] | Canada [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 39 | 39 |
Trade Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 368 | 364 |
Trade Revenue [Member] | Commissions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 333 | 332 |
Trade Revenue [Member] | Principal Transactions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 35 | 32 |
Trade Revenue [Member] | United States [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 356 | 349 |
Trade Revenue [Member] | United States [Member] | Commissions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 322 | 318 |
Trade Revenue [Member] | United States [Member] | Principal Transactions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 34 | 31 |
Trade Revenue [Member] | Canada [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 12 | 15 |
Trade Revenue [Member] | Canada [Member] | Commissions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 11 | 14 |
Trade Revenue [Member] | Canada [Member] | Principal Transactions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | $ 1 | $ 1 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 29, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Fair value of level III, assets | $ 0 | $ 0 |
Fair value of level III, liabilities | $ 0 | $ 0 |
Fair Value - Partnership's Fina
Fair Value - Partnership's Financial Assets at Fair Value (Detail) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2018 |
Investment securities: | ||
Total investment securities | $ 270 | $ 250 |
Inventory securities: | ||
Total inventory securities | 57 | 43 |
Equities [Member] | ||
Investment securities: | ||
Total investment securities | 2 | 2 |
Inventory securities: | ||
Total inventory securities | 22 | 16 |
Corporate Bonds and Notes [Member] | ||
Investment securities: | ||
Total investment securities | 1 | 1 |
Inventory securities: | ||
Total inventory securities | 3 | 3 |
Government and Agency Obligations [Member] | ||
Investment securities: | ||
Total investment securities | 3 | 3 |
U.S. Treasuries [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 1,493 | 998 |
Mutual Funds [Member] | ||
Investment securities: | ||
Total investment securities | 264 | 244 |
Inventory securities: | ||
Total inventory securities | 2 | 6 |
State and Municipal Obligations [Member] | ||
Inventory securities: | ||
Total inventory securities | 27 | 15 |
Certificates of Deposit [Member] | ||
Cash equivalents: | ||
Cash and cash equivalents | 298 | 298 |
Inventory securities: | ||
Total inventory securities | 3 | 3 |
Level I [Member] | ||
Investment securities: | ||
Total investment securities | 269 | 249 |
Inventory securities: | ||
Total inventory securities | 24 | 22 |
Level I [Member] | Equities [Member] | ||
Investment securities: | ||
Total investment securities | 2 | 2 |
Inventory securities: | ||
Total inventory securities | 22 | 16 |
Level I [Member] | Government and Agency Obligations [Member] | ||
Investment securities: | ||
Total investment securities | 3 | 3 |
Level I [Member] | U.S. Treasuries [Member] | ||
Investments segregated under federal regulations: | ||
Total investments segregated under federal regulations | 1,493 | 998 |
Level I [Member] | Mutual Funds [Member] | ||
Investment securities: | ||
Total investment securities | 264 | 244 |
Inventory securities: | ||
Total inventory securities | 2 | 6 |
Level II [Member] | ||
Investment securities: | ||
Total investment securities | 1 | 1 |
Inventory securities: | ||
Total inventory securities | 33 | 21 |
Level II [Member] | Corporate Bonds and Notes [Member] | ||
Investment securities: | ||
Total investment securities | 1 | 1 |
Inventory securities: | ||
Total inventory securities | 3 | 3 |
Level II [Member] | State and Municipal Obligations [Member] | ||
Inventory securities: | ||
Total inventory securities | 27 | 15 |
Level II [Member] | Certificates of Deposit [Member] | ||
Cash equivalents: | ||
Cash and cash equivalents | 298 | 298 |
Inventory securities: | ||
Total inventory securities | $ 3 | $ 3 |
Partnership Capital - Additiona
Partnership Capital - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 29, 2019 | Mar. 30, 2018 | Dec. 31, 2018 | Jan. 12, 2018 | Dec. 31, 2017 | |
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 | $ 422 | $ 381 | $ 332 | $ 297 | |
Interest income from outstanding amount of general partner loan | $ 6 | $ 4 | |||
Limited partnership's minimum annual payment rate | 7.50% | 7.50% | |||
Limited partnership's minimum return, value | $ 24 | $ 17 | |||
2018 Limited Partnership Offering [Member] | |||||
Partners Capital Account [Line Items] | |||||
Limited partnership amount registered | $ 450 | ||||
Limited partnership interests issued | 380 | ||||
Remaining limited partnership interests that may be issued | $ 70 |
Partnership Capital - Roll Forw
Partnership Capital - Roll Forward of Outstanding Partnership Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Partners Capital Notes [Abstract] | ||
Partnership loans outstanding at beginning of year | $ 332 | $ 297 |
Partnership loans issued during the period | 163 | 168 |
Repayment of Partnership loans during the period | (73) | (84) |
Partnership loans outstanding at end of year | $ 422 | $ 381 |
Net Capital Requirements - Addi
Net Capital Requirements - Additional Information (Detail) - United States [Member] | 3 Months Ended |
Mar. 29, 2019USD ($) | |
Net Capital Requirements [Line Items] | |
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 Capital Figures for U.S. and Canada Broker-Dealer Subsidiaries (Detail) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2018 |
United States [Member] | ||
Regulatory Capital Requirements | ||
Net capital | $ 1,372 | $ 1,280 |
Net capital in excess of the minimum required | $ 1,315 | $ 1,221 |
Net capital as a percentage of aggregate debit items | 48.10% | 43.60% |
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items | 28.80% | 28.30% |
Canada [Member] | ||
Regulatory Capital Requirements | ||
Regulatory risk-adjusted capital | $ 35 | $ 40 |
Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC | $ 24 | $ 39 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | Mar. 29, 2019USD ($) |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Current estimated possible loss | $ 32 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 29, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment Information - Financial
Segment Information - Financial Information for Partnership's Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Net revenue: | ||
Total net revenue | $ 2,190 | $ 2,042 |
Pre-variable income (loss): | ||
Total pre-variable income | 487 | 469 |
Variable compensation: | ||
Total variable compensation | 246 | 236 |
Income (loss) before allocations to partners: | ||
Total income before allocations to partners | 241 | 233 |
United States [Member] | ||
Net revenue: | ||
Total net revenue | 2,135 | 1,984 |
Pre-variable income (loss): | ||
Total pre-variable income | 488 | 466 |
Variable compensation: | ||
Total variable compensation | 240 | 230 |
Income (loss) before allocations to partners: | ||
Total income before allocations to partners | 248 | 236 |
Canada [Member] | ||
Net revenue: | ||
Total net revenue | 55 | 58 |
Pre-variable income (loss): | ||
Total pre-variable income | (1) | 3 |
Variable compensation: | ||
Total variable compensation | 6 | 6 |
Income (loss) before allocations to partners: | ||
Total income before allocations to partners | $ (7) | $ (3) |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Detail) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2018 |
Offsetting Securities Purchased Under Agreements To Resell [Abstract] | ||
Securities purchased under agreements to resell, Gross amounts of recognized assets | $ 1,232 | $ 911 |
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 | 1,232 | 911 |
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 | (1,232) | (911) |
Securities purchased under agreements to resell, Net amount | $ 0 | $ 0 |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Parenthetical) (Detail) | Mar. 29, 2019 | Dec. 31, 2018 |
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% |
Cash Flow Information - Schedul
Cash Flow Information - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2019 | Mar. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 40 | $ 31 |
Cash paid for taxes | 2 | 3 |
Non-cash activities: | ||
Issuance of general partnership interests through partnership loans in current period | 163 | 168 |
Repayment of partnership loans through distributions from partnership capital in current period | 73 | 84 |
Lease right-of-use assets obtained in exchange for lease obligations | $ 67 | $ 0 |
Cash Flow Information - Sched_2
Cash Flow Information - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash Balance (Detail) - USD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2018 | Mar. 30, 2018 |
Supplemental Cash Flow Elements [Abstract] | |||
Cash and cash equivalents | $ 1,370 | $ 1,498 | $ 1,017 |
Cash and investments segregated under federal regulations | 7,052 | $ 8,241 | 9,069 |
Less: Investments segregated under federal regulations | 1,493 | 2,006 | |
Total cash, cash equivalents and restricted cash | $ 6,929 | $ 8,080 |