Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Assets and Liabilities (Tables)

v3.19.3
Fair Value of Assets and Liabilities (Tables)
9 Months Ended
Sep. 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 September 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.
 
 
 
September 30, 2019
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
Total Estimated Fair Value
Cash and cash equivalents
 
$
251,033

 
$
251,033

 
$

 
$
251,033

Receivables from clearing brokers
 
27,835

 

 
27,835

 
27,835

Receivables from other broker-dealers
 
5,597

 

 
5,597

 
5,597

Notes receivables, net (1)
 
7,459

 

 
7,459

 
7,459

Other receivables, net
 
67,419

 

 
67,419

 
67,419

Insurance trailing commissions receivable
 
67,290

 

 
67,290

 
67,290

 
 
$
426,633

 
$
251,033

 
$
175,600

 
$
426,633

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Accrued compensation
 
$
36,871

 
$

 
$
36,871

 
$
36,871

Commissions and fees payable
 
106,004

 

 
106,004

 
106,004

Accounts payable and accrued liabilities (2)
 
34,677

 

 
34,677

 
34,677

Accrued interest
 

 

 

 

Notes payable, net (3)
 
315,898

 

 
333,145

 
333,145

 
 
$
493,450

 
$

 
$
510,697

 
$
510,697


(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 $2,520.
(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 September 30, 2019 and December 31, 2018:

 
 
September 30, 2019
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
 Level 3
 
Total Estimated Fair Value
Certificates of deposit
 
$
289

 
$
289

 
$

 
$

 
$
289

Debt securities
 
627

 

 
627

 

 
627

U.S. treasury notes
 
711

 

 
711

 

 
711

Common stock and warrants
 
2,974

 
326

 
2,648

 

 
2,974

Total
 
$
4,601

 
$
615

 
$
3,986

 
$

 
$
4,601

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Contingent consideration payable
 
$
2,520

 
$

 
$

 
$
2,520

 
$
2,520

Debt securities
 
29

 

 
29

 

 
29

Common stock and warrants
 
6

 
6

 

 

 
6

Total
 
$
2,555

 
$
6

 
$
29

 
$
2,520

 
$
2,555



 
 
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
 
290

Fair value of contingent consideration as of September 30, 2019
 
$
2,520