Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Assets and Liabilities (Tables)

v3.19.2
Fair Value of Assets and Liabilities (Tables)
6 Months Ended
Jun. 30, 2019
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, 2019 and December 31, 2018 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, 2019
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
Total Estimated Fair Value
Cash and cash equivalents
 
$
239,780

 
$
239,780

 
$

 
$
239,780

Receivables from clearing brokers
 
35,049

 

 
35,049

 
35,049

Receivables from other broker-dealers
 
2,641

 

 
2,641

 
2,641

Notes receivables, net (1)
 
6,055

 

 
6,055

 
6,055

Other receivables, net
 
70,480

 

 
70,480

 
70,480

Insurance trailing commissions receivable
 
65,370

 

 
65,370

 
65,370

 
 
$
419,375

 
$
239,780

 
$
179,595

 
$
419,375

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Accrued compensation
 
$
25,800

 
$

 
$
25,800

 
$
25,800

Commissions and fees payable
 
105,673

 

 
105,673

 
105,673

Accounts payable and accrued liabilities (2)
 
41,269

 

 
41,269

 
41,269

Accrued interest
 
1,792

 

 
1,792

 
1,792

Notes payable, net (3)
 
316,416

 

 
333,863

 
333,863

 
 
$
490,950

 
$

 
$
508,397

 
$
508,397


(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 $2,427.
(3) Estimated fair value based on then current rates at which similar amounts of debt could be borrowed.



 
 
December 31, 2018
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
Total Estimated Fair Value
Cash and cash equivalents
 
$
182,693

 
$
182,693

 
$

 
$
182,693

Receivables from clearing brokers
 
24,068

 

 
24,068

 
24,068

Receivables from other broker-dealers
 
7,078

 

 
7,078

 
7,078

Notes receivables, net (1)
 
5,809

 

 
5,809

 
5,809

Other receivables, net
 
68,942

 

 
68,942

 
68,942

Insurance trailing commissions receivable
 
64,300

 

 
64,300

 
64,300

 
 
$
352,890

 
$
182,693

 
$
170,197

 
$
352,890

 
 

 

 

 

Liabilities
 

 

 

 

Accrued compensation
 
$
39,264

 
$

 
$
39,264

 
$
39,264

Commissions and fees payable
 
105,306

 

 
105,306

 
105,306

Accounts payable and accrued liabilities (2)
 
46,511

 

 
46,511

 
46,511

Accrued interest
 
123

 

 
123

 
123

Notes payable, net (3)
 
254,072

 

 
266,844

 
266,844

 
 
$
445,276

 
$

 
$
458,048

 
$
458,048


(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 $2,230.
(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 present the financial assets and liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018:

 
 
June 30, 2019
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
 Level 3
 
Total Estimated Fair Value
Certificates of deposit
 
$
223

 
$
223

 
$

 
$

 
$
223

Debt securities
 
1,463

 

 
1,463

 

 
1,463

U.S. treasury notes
 
809

 

 
809

 

 
809

Common stock and warrants
 
2,325

 
901

 
1,424

 

 
2,325

Total
 
$
4,820

 
$
1,124

 
$
3,696

 
$

 
$
4,820

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Contingent consideration payable
 
$
2,427

 
$

 
$

 
$
2,427

 
$
2,427

Debt securities
 
318

 

 
318

 

 
318

Common stock and warrants
 
3,079

 
3,079

 

 

 
3,079

Total
 
$
5,824

 
$
3,079

 
$
318

 
$
2,427

 
$
5,824



 
 
December 31, 2018
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
 Level 3
 
Total Estimated Fair Value
Certificates of deposit
 
$
426

 
$
426

 
$

 
$

 
$
426

Debt securities
 
1,447

 

 
1,447

 

 
1,447

U.S. treasury notes
 
794

 

 
794

 

 
794

Common stock and warrants
 
8,256

 
7,070

 
1,186

 

 
8,256

Total
 
$
10,923

 
$
7,496

 
$
3,427

 
$

 
$
10,923

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Contingent consideration payable
 
$
2,230

 
$

 
$

 
$
2,230

 
$
2,230

Debt securities
 
196

 

 
196

 

 
196

Common stock and warrants
 
2,379

 
2,379

 

 

 
2,379

Total
 
$
4,805

 
$
2,379

 
$
196

 
$
2,230

 
$
4,805

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, 2017
 
$
2,104

Payments
 
(1,353
)
Change in fair value of contingent consideration
 
238

Fair value of contingent consideration in connection with KFG and FSFG acquisitions
 
1,241

Fair value of contingent consideration as of December 31, 2018
 
$
2,230

Change in fair value of contingent consideration
 
197

Fair value of contingent consideration as of June 30, 2019
 
$
2,427