Annual report pursuant to Section 13 and 15(d)

Fair Value of Assets and Liabilities (Tables)

v3.20.1
Fair Value of Assets and Liabilities (Tables)
12 Months Ended
Dec. 31, 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 December 31, 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.

 
 
December 31, 2019
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
Total Estimated Fair Value
Cash and cash equivalents
 
$
248,772

 
$
248,772

 
$

 
$
248,772

Receivables from clearing brokers
 
23,086

 

 
23,086

 
23,086

Receivables from other broker-dealers
 
4,051

 

 
4,051

 
4,051

Notes receivables from financial advisors, net (1)
 
8,781

 

 
8,781

 
8,781

Other receivables, net
 
71,810

 

 
71,810

 
71,810

Insurance trailing commissions receivable
 
73,782

 

 
73,782

 
73,782

 
 
$
430,282

 
$
248,772

 
$
181,510

 
$
430,282

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Accrued compensation
 
$
40,350

 
$

 
$
40,350

 
$
40,350

Commissions and fees payable
 
109,719

 

 
109,719

 
109,719

Accounts payable and accrued liabilities (2)
 
48,708

 

 
48,708

 
48,708

Accrued interest
 

 

 

 

Notes payable, net (3)
 
315,443

 

 
332,490

 
332,490

 
 
$
514,220

 
$

 
$
531,267

 
$
531,267



(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 $1,330.
(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 December 31, 2019 and December 31, 2018:
 
 
December 31, 2019
Assets
 
Carrying Value
 
 Level 1
 
 Level 2
 
 Level 3
 
Total Estimated Fair Value
Certificates of deposit
 
$
36

 
$
36

 
$

 
$

 
$
36

Debt securities
 
2,205

 

 
2,205

 

 
2,205

U.S. Treasury notes
 
710

 

 
710

 

 
710

Common stock and warrants
 
1,498

 
633

 
865

 

 
1,498

Total
 
$
4,449

 
$
669

 
$
3,780

 
$

 
$
4,449

 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Contingent consideration payable
 
$
1,330

 
$

 
$

 
$
1,330

 
$
1,330

Debt securities
 
420

 

 
420

 

 
420

U.S. Treasury notes
 

 

 

 

 

Common stock and warrants
 

 

 

 

 

Total
 
$
1,750

 
$

 
$
420

 
$
1,330

 
$
1,750



 
 
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

U.S. Treasury notes
 

 

 

 

 

Common stock
 
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, 2016
 
$
7,144

Payments
 
(5,021
)
Change in fair value of contingent consideration
 
(19
)
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

Payments
 
(1,564
)
Change in fair value of contingent consideration
 
664

Fair value of contingent consideration as of December 31, 2019
 
$
1,330