Notes Receivable from Financial Advisors |
12 Months Ended |
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Dec. 31, 2015 | |
| Receivables [Abstract] | |
| Notes Receivable from Financial Advisors |
Notes Receivable from Financial Advisors
From time to time, the Company’s broker-dealer subsidiaries may make loans to their financial advisors. These loans are primarily given to newly-recruited advisors to assist in the transition process. In connection with the Securities America acquisiton in 2011, the Company made retention loans aggregating $20,000 to Securities America’s financial advisors. The notes receivable balance is comprised of unsecured non-interest-bearing and interest-bearing loans (interest of up to 8.0%) to the financial advisors. These notes have various schedules for repayment or forgiveness and mature at various dates through 2021. The notes are amortized over the forgiveness period which generally ranges from 3 to 5 years. Receivables are continually evaluated for collectability and possible write-offs and an allowance for doubtful accounts is provided where a loss is considered probable. As of December 31, 2015 and 2014, the allowance amounted to $461 and $215, respectively.
The net carrying value of notes receivable, which are recorded at cost, as of December 31, 2015 and 2014 was $26,967 and $26,152, respectively, which approximates fair value. Fair value is determined based on a valuation technique to convert future cash payments or forgiveness transactions to a single discounted present value amount (Level 2 inputs).
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