Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Assets and Liabilities (Tables)

v3.7.0.1
Fair Value of Assets and Liabilities (Tables)
6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis
The following tables present the carrying values and estimated fair values at June 30, 2017 and December 31, 2016 of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and information is provided on their classification within the fair value hierarchy. Such instruments are carried at amounts that approximate fair value due to their short-term nature and generally negligible credit risk.
 
 
 
June 30, 2017
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
Total Estimated Fair Value
Cash and cash equivalents
 
$
88,852


$
88,852


$

 
$
88,852

Receivables from clearing brokers
 
55,422




55,422

 
55,422

Receivables from other broker-dealers
 
2,346




2,346

 
2,346

Notes receivables, net (1)
 
33,923




33,923

 
33,923

Other receivables, net
 
50,119




50,119

 
50,119

 
 
$
230,662


$
88,852


$
141,810

 
$
230,662

 
 





 

Liabilities
 





 

Accrued compensation
 
$
20,743


$


$
20,743

 
$
20,743

Commissions and fees payable
 
61,696




61,696

 
61,696

Accounts payable and accrued liabilities (2)
 
35,425




35,425

 
35,425

Accrued interest
 
410




410

 
410

Notes payable, net (3)
 
30,573




28,755

 
28,755

 
 
$
148,847


$


$
147,029

 
$
147,029


(1) Carrying value approximates fair value, which is determined based on a valuation technique to convert future cash payments or forgiveness transactions to a single discounted preset value amount.
(2) Excludes contingent consideration liabilities of $2,777.
(3) Estimated fair value based on then current rates at which similar amounts of debt could be borrowed.



 
 
December 31, 2016
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
Total Estimated Fair Value
Cash and cash equivalents
 
$
98,930


$
98,930


$

 
$
98,930

Receivables from clearing brokers
 
41,492




41,492

 
41,492

Receivables from other broker-dealers
 
853




853

 
853

Notes receivables, net (1)
 
32,611




32,611

 
32,611

Other receivables, net
 
54,634




54,634

 
54,634

 
 
$
228,520


$
98,930


$
129,590

 
$
228,520

 
 





 

Liabilities
 





 

Accrued compensation
 
$
26,299


$


$
26,299

 
$
26,299

Commissions and fees payable
 
60,594




60,594

 
60,594

Accounts payable and accrued liabilities (2)
 
32,732




32,732

 
32,732

Accrued interest
 
281




281

 
281

Notes payable, net (3)
 
26,417




24,494

 
24,494

 
 
$
146,323


$


$
144,400

 
$
144,400


(1) Carrying value approximates fair value, which is determined based on a valuation technique to convert future cash payments or forgiveness transactions to a single discounted preset value amount.
(2) Excludes contingent consideration liabilities of $7,144.
(3) Estimated fair value based on then current rates at which similar amounts of debt could be borrowed.
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis
The following tables presents the financial assets and liabilities measured at fair value on a recurring basis at June 30, 2017 and December 31, 2016:

 
 
June 30, 2017
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
 Level 3
 
Total Estimated Fair Value
Certificates of deposit
 
$
513


$
513


$


$


$
513

Debt securities
 
2,454




2,454




2,454

U.S. Treasury notes
 
100




100




100

Common stock and warrants
 
1,200


335


865




1,200

Total
 
$
4,267

 
$
848

 
$
3,419

 
$

 
$
4,267

 
 
 
 
 
 
 
 
 
 
 
Liabilites
 
 
 
 
 
 
 
 
 
 
Contingent consideration payable
 
$
2,777


$


$


$
2,777


$
2,777

Debt securities
 
(117
)



(117
)



(117
)
U.S. Treasury notes
 
(151
)



(151
)



(151
)
Common stock and warrants
 
(83
)

(83
)





(83
)
Total
 
$
2,426

 
$
(83
)
 
$
(268
)
 
$
2,777

 
$
2,426



 
 
December 31, 2016
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
 Level 3
 
Total Estimated Fair Value
Certificates of deposit
 
$
443


$
443


$


$


$
443

Debt securities
 
1,850




1,850




1,850

U.S. Treasury notes
 
101




101




101

Common stock and warrants
 
1,149


494


655




1,149

Total
 
$
3,543

 
$
937

 
$
2,606

 
$

 
$
3,543

 
 
 
 
 
 
 
 
 
 
 
Liabilites
 
 
 
 
 
 
 
 
 
 
Contingent consideration payable
 
$
7,144


$


$


$
7,144


$
7,144

Debt securities
 
25




25




25

U.S. Treasury notes
 
96




96




96

Common stock and warrants
 
261


261






261

Total
 
$
7,526

 
$
261

 
$
121

 
$
7,144

 
$
7,526

Schedule of Changes in Carrying Value of Contingent Consideration
Set forth below are changes in the carrying value of contingent consideration related to acquisitions, which is included in accounts payable and accrued liabilities:

Fair value of contingent consideration as of December 31, 2015
 
$
2,813

Payments
 
(827
)
Change in fair value of contingent consideration
 
216

Fair value of contingent consideration in connection with 2016 acquisitions
 
4,942

Fair value of contingent consideration as of December 31, 2016
 
$
7,144

Payments
 
(1,505
)
Change in fair value of contingent consideration
 
(152
)
Fair value of contingent consideration as of March 31, 2017
 
$
5,487

Payments
 
(2,773
)
Change in fair value of contingent consideration
 
63

Fair value of contingent consideration as of June 30, 2017
 
$
2,777