2018 Q3 Form 10-Q Financial Statement

#000136090118000023 Filed on November 01, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2017 Q3
Revenue $385.5M $412.0M
YoY Change -6.44% 5.35%
Cost Of Revenue $4.200M $5.400M
YoY Change -22.22% 12.5%
Gross Profit $381.3M $406.6M
YoY Change -6.22% 5.25%
Gross Profit Margin 98.92% 98.69%
Selling, General & Admin $291.1M $302.2M
YoY Change -3.67% 7.01%
% of Gross Profit 76.34% 74.32%
Research & Development $10.59M $10.61M
YoY Change -0.22% 4.51%
% of Gross Profit 2.78% 2.61%
Depreciation & Amortization $7.900M $6.500M
YoY Change 21.54% 10.17%
% of Gross Profit 2.07% 1.6%
Operating Expenses $306.7M $319.5M
YoY Change -4.01% 6.08%
Operating Profit $74.58M $87.07M
YoY Change -14.34% 2.35%
Interest Expense $4.203M $5.413M
YoY Change -22.35% 13.08%
% of Operating Profit 5.64% 6.22%
Other Income/Expense, Net
YoY Change
Pretax Income $76.84M $88.90M
YoY Change -13.57% 3.05%
Income Tax $17.54M $28.82M
% Of Pretax Income 22.83% 32.41%
Net Earnings $49.46M $45.91M
YoY Change 7.73% 32.33%
Net Earnings / Revenue 12.83% 11.14%
Basic Earnings Per Share $1.21 $1.18
Diluted Earnings Per Share $1.08 $1.04
COMMON SHARES
Basic Shares Outstanding 40.97M shares 39.05M shares
Diluted Shares Outstanding 45.86M shares 44.04M shares

Balance Sheet

Concept 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $636.3M $555.6M
YoY Change 14.52% 8.41%
Cash & Equivalents $425.2M $439.9M
Short-Term Investments $211.1M $115.8M
Other Short-Term Assets $68.30M $20.17M
YoY Change 238.55% 6.68%
Inventory
Prepaid Expenses
Receivables $279.2M $206.9M
Other Receivables $23.90M $16.90M
Total Short-Term Assets $1.087B $863.4M
YoY Change 25.87% 18.64%
LONG-TERM ASSETS
Property, Plant & Equipment $68.83M $67.60M
YoY Change 1.81% 46.84%
Goodwill $133.4M $133.9M
YoY Change -0.41% -18.26%
Intangibles $12.68M $21.95M
YoY Change -42.23% -31.21%
Long-Term Investments $57.32M $99.20M
YoY Change -42.21% 14.64%
Other Assets $311.0M $374.9M
YoY Change -17.04% 1.35%
Total Long-Term Assets $618.8M $697.6M
YoY Change -11.3% -4.94%
TOTAL ASSETS
Total Short-Term Assets $1.087B $863.4M
Total Long-Term Assets $618.8M $697.6M
Total Assets $1.706B $1.561B
YoY Change 9.26% 6.8%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $41.70M $33.00M
YoY Change 26.36% 0.0%
Accrued Expenses $330.5M $307.1M
YoY Change 7.62% 41.0%
Deferred Revenue $10.16M
YoY Change
Short-Term Debt $26.10M $33.90M
YoY Change -23.01% 10.06%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $462.7M $422.8M
YoY Change 9.45% 21.69%
LONG-TERM LIABILITIES
Long-Term Debt $168.5M $175.1M
YoY Change -3.77% -5.15%
Other Long-Term Liabilities $73.41M $55.91M
YoY Change 31.31% 28.17%
Total Long-Term Liabilities $73.41M $55.91M
YoY Change 31.31% 28.17%
TOTAL LIABILITIES
Total Short-Term Liabilities $462.7M $422.8M
Total Long-Term Liabilities $73.41M $55.91M
Total Liabilities $806.2M $833.1M
YoY Change -3.22% 9.37%
SHAREHOLDERS EQUITY
Retained Earnings $224.6M $117.4M
YoY Change 91.28% -1738.98%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.293B $1.103B
YoY Change 17.18% 36.86%
Treasury Stock Shares 24.93M shares 22.99M shares
Shareholders Equity $668.1M $475.6M
YoY Change
Total Liabilities & Shareholders Equity $1.706B $1.561B
YoY Change 9.26% 6.8%

Cashflow Statement

Concept 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income $49.46M $45.91M
YoY Change 7.73% 32.33%
Depreciation, Depletion And Amortization $7.900M $6.500M
YoY Change 21.54% 10.17%
Cash From Operating Activities $136.1M $170.5M
YoY Change -20.18% -29.31%
INVESTING ACTIVITIES
Capital Expenditures -$4.700M -$8.300M
YoY Change -43.37% 118.42%
Acquisitions
YoY Change
Other Investing Activities -$57.80M -$55.90M
YoY Change 3.4% 975.0%
Cash From Investing Activities -$62.50M -$64.20M
YoY Change -2.65% 613.33%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -57.50M -82.20M
YoY Change -30.05% 193.57%
NET CHANGE
Cash From Operating Activities 136.1M 170.5M
Cash From Investing Activities -62.50M -64.20M
Cash From Financing Activities -57.50M -82.20M
Net Change In Cash 16.10M 24.10M
YoY Change -33.2% -88.2%
FREE CASH FLOW
Cash From Operating Activities $136.1M $170.5M
Capital Expenditures -$4.700M -$8.300M
Free Cash Flow $140.8M $178.8M
YoY Change -21.25% -27.02%

Facts In Submission

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CY2018Q3 us-gaap Business Combination Acquisition Related Costs
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us-gaap Business Combination Acquisition Related Costs
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21000 USD
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CY2018Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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575637000 USD
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457624000 USD
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617385000 USD
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434439000 USD
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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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63527000 USD
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100000000 USD
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us-gaap Common Stock Dividends Per Share Declared
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1.40
us-gaap Common Stock Dividends Per Share Declared
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1.4
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us-gaap Communications And Information Technology
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30865000 USD
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10590000 USD
us-gaap Communications And Information Technology
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us-gaap Comprehensive Income Net Of Tax
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214077000 USD
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37004000 USD
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36768000 USD
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64938000 USD
us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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187000000 USD
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62172000 USD
us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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250845000 USD
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0 USD
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0 USD
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3147000 USD
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1834000 USD
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3740000 USD
us-gaap Contract With Customer Liability Revenue Recognized
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8984000 USD
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0 USD
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8599000 USD
us-gaap Deferred Compensation Arrangement With Individual Compensation Expense
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18419000 USD
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13147000 USD
us-gaap Deferred Compensation Arrangement With Individual Compensation Expense
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41328000 USD
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198894000 USD
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227027000 USD
us-gaap Depreciation Amortization And Accretion Net
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18453000 USD
us-gaap Depreciation Amortization And Accretion Net
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21432000 USD
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6421000 USD
us-gaap Depreciation And Amortization
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18267000 USD
CY2018Q3 us-gaap Depreciation And Amortization
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6815000 USD
us-gaap Depreciation And Amortization
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20209000 USD
us-gaap Dividends
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47776000 USD
us-gaap Dividends
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66540000 USD
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57448000 USD
us-gaap Dividends Share Based Compensation Cash
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17030000 USD
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23872000 USD
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1.18
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1.21
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1.04
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3.23
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1.08
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0.32
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0.28
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32018000 USD
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38917000 USD
CY2017Q3 us-gaap Floor Brokerage Exchange And Clearance Fees
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3455000 USD
us-gaap Floor Brokerage Exchange And Clearance Fees
FloorBrokerageExchangeAndClearanceFees
10972000 USD
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3068000 USD
us-gaap Floor Brokerage Exchange And Clearance Fees
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7818000 USD
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us-gaap Gain Loss On Investments
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26000 USD
CY2017Q4 us-gaap Goodwill
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Goodwill
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us-gaap Income Loss From Continuing Operations
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49461000 USD
us-gaap Income Loss From Continuing Operations
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213935000 USD
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88897000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
250172000 USD
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IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
76838000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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298713000 USD
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87070000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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244665000 USD
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74540000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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291871000 USD
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IncomeLossFromEquityMethodInvestments
1827000 USD
us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
5507000 USD
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2298000 USD
us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
6842000 USD
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us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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48018000 USD
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5379000 USD
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471000 USD
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3001000 USD
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51341000 USD
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2102000 USD
us-gaap Increase Decrease In Accounts Receivable Related Parties
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6878000 USD
us-gaap Increase Decrease In Accrued Income Taxes Payable
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-18471000 USD
us-gaap Increase Decrease In Accrued Income Taxes Payable
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us-gaap Increase Decrease In Cash Collateral For Borrowed Securities
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1526000 USD
us-gaap Increase Decrease In Cash Collateral For Borrowed Securities
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2142000 USD
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1849000 USD
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us-gaap Increase Decrease In Employee Related Liabilities
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-10047000 USD
us-gaap Increase Decrease In Other Operating Assets
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59145000 USD
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us-gaap Increase Decrease In Other Operating Liabilities
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us-gaap Increase Decrease In Trading Securities
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us-gaap Increase Decrease In Trading Securities
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us-gaap Interest Expense
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us-gaap Investment Advisory Management And Administrative Fees
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us-gaap Investment Advisory Management And Administrative Fees
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us-gaap Investment Banking Revenue
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us-gaap Labor And Related Expense
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CY2018Q3 us-gaap Liabilities
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CY2017Q4 us-gaap Liabilities And Stockholders Equity
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Operating Activities
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CY2018Q3 us-gaap Net Income Loss
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us-gaap Net Income Loss
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us-gaap Net Income Loss Attributable To Noncontrolling Interest
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us-gaap Occupancy Net
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CY2018Q3 us-gaap Operating Leases Future Minimum Payments Due In Two Years
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5000 USD
us-gaap Other Comprehensive Income Availableforsale Securities Adjustment Net Of Tax Portion Attributable To Noncontrolling Interest
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79000 USD
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us-gaap Other Comprehensive Income Availableforsale Securities Adjustment Net Of Tax Portion Attributable To Noncontrolling Interest
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CY2017Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Noncontrolling Interest
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955000 USD
us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Noncontrolling Interest
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1185000 USD
CY2018Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Noncontrolling Interest
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429000 USD
us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Noncontrolling Interest
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74000 USD
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4832000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
5993000 USD
CY2018Q3 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
2884000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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583000 USD
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OtherComprehensiveIncomeLossNetOfTax
2873000 USD
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OtherComprehensiveIncomeLossNetOfTax
150000 USD
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OtherComprehensiveIncomeLossNetOfTax
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us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
6394000 USD
CY2017Q3 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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24000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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401000 USD
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OtherCostAndExpenseOperating
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OtherIncome
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us-gaap Other Income
OtherIncome
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CY2018Q3 us-gaap Other Income
OtherIncome
10058000 USD
us-gaap Other Income
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us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Recent Accounting Pronouncements</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2014-09</font><font style="font-family:inherit;font-size:10pt;"> &#8211; In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09. ASU 2014-09 provides amendments to ASC 605, "</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue Recognition"</font><font style="font-family:inherit;font-size:10pt;"> and creates ASC 606, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Revenue from Contracts with Customers,"</font><font style="font-family:inherit;font-size:10pt;"> which changes the requirements for revenue recognition and amends the disclosure requirements. In August 2015, the FASB issued ASU No. 2015-14, "</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Deferral of the Effective Date,</font><font style="font-family:inherit;font-size:10pt;">" which provides amendments that defer the effective date of ASU 2014-09 by one year. In April 2016, the FASB issued ASU No. 2016-10, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Identifying Performance Obligations and Licensing,"</font><font style="font-family:inherit;font-size:10pt;"> which provides clarification to identifying performance obligations and the licensing implementation guidance in ASU 2014-09. In May 2016, the FASB issued ASU No. 2016-12, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Narrow-Scope Improvements and Practical Expedients," </font><font style="font-family:inherit;font-size:10pt;">which provides clarification on certain issues identified in the guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition in ASU 2014-09. The amendments in these updates are effective either retrospectively to each prior reporting period presented, or as a cumulative-effect adjustment as of the date of adoption, during interim and annual periods beginning after December&#160;15, 2017, with early adoption permitted beginning after December 15, 2016.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company adopted ASU 2014-09 on January 1, 2018 using the modified retrospective method of transition, which requires a cumulative-effect adjustment as of the date of adoption. The Company did not have a cumulative-effect adjustment as of the date of adoption. Following the adoption of ASU 2014-09, success related advisory fees, for which payment is generally dependent on the closing of a strategic transaction, a financing arrangement or some other defined outcome, are considered variable consideration as defined by the standard. ASU 2014-09 requires that revenue be recognized when it is probable that variable consideration will not be reversed in a future period. Accordingly, revenue recognition for such fees could be accelerated under ASU 2014-09 in rare circumstances, which will require careful analysis and judgment. Under legacy U.S. GAAP, the Company recognized such fees upon closing regardless of the probability of the outcome. The effect of the timing of revenue recognition could be material to any given reporting period. Furthermore, legacy U.S. GAAP allowed expenses related to underwriting transactions to be reflected net in related revenues. Under ASU 2014-09, those expenses are presented gross in the results of operations. See Notes 2 and 4 for further information.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2016-01</font><font style="font-family:inherit;font-size:10pt;"> - In January 2016, the FASB issued ASU No.&#160;2016-01, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Recognition and Measurement of Financial Assets and Financial Liabilities"</font><font style="font-family:inherit;font-size:10pt;"> ("ASU 2016-01"). ASU 2016-01 provides amendments to ASC 825, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Financial Instruments,"</font><font style="font-family:inherit;font-size:10pt;"> which change the requirements for certain aspects of recognition, measurement and presentation of financial assets and liabilities and amend the disclosure requirements. The amendments in this update are effective during interim and annual periods beginning after December 15, 2017. The amendments in this update should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and the amendments related to equity securities without readily determinable fair values should be applied prospectively.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company adopted ASU 2016-01 on January 1, 2018, which resulted in a cumulative effect adjustment of cumulative unrealized losses, net of tax, on available-for-sale equity securities included in Accumulated Other Comprehensive Income (Loss) to Retained Earnings of </font><font style="font-family:inherit;font-size:10pt;">($2,229)</font><font style="font-family:inherit;font-size:10pt;">. Following the adoption of ASU 2016-01, unrealized gains and losses on these securities are recorded in Other Revenue, Including Interest and Investments, on the </font><font style="font-family:inherit;font-size:10pt;">Unaudited Condensed Consolidated Statements of Operations</font><font style="font-family:inherit;font-size:10pt;">. The Company also holds equity securities without readily determinable fair values, which were accounted for under the cost method of accounting under legacy U.S. GAAP. Following the adoption of ASU 2016-01, the Company elected to measure each of its former cost method investments at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. See Notes 7 and 9 for further information.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2016-02</font><font style="font-family:inherit;font-size:10pt;"> - In February 2016, the FASB issued ASU No. 2016-02, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Leases (Topic 842)" </font><font style="font-family:inherit;font-size:10pt;">("ASU 2016-02"). ASU 2016-02 supersedes ASC 840, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Leases," </font><font style="font-family:inherit;font-size:10pt;">and includes requirements for the recognition of a right-of-use asset and lease liability on the balance sheet by lessees for those leases classified as operating leases under previous guidance. In July 2018, the FASB issued ASU No. 2018-11, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Leases (Topic 842): Targeted Improvements," </font><font style="font-family:inherit;font-size:10pt;">which provides an additional transition method to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to Retained Earnings for prior periods as of the beginning of the fiscal year of adoption. The amendments in these updates are effective using a modified retrospective approach as of the date of adoption, during interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company anticipates adopting ASU 2016-02 on January 1, 2019 using the modified retrospective approach. The Company is in the process of evaluating its lease agreements under ASU 2016-02, including its lease agreement to expand its New York headquarters signed on July 1, 2018. See Note 16 for further information. The adoption will result in the present value of the Company's lease commitments which have a term in excess of one year being reflected on the Company's Statements of Financial Condition as a long-term asset with a corresponding liability, classified as current and non-current. The Company's lease commitments primarily relate to office space, as discussed in Note 16 and in Note 18 to the Company's consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. The impact on the Company's earnings is not expected to be materially different from the current expense related to leases as required under legacy U.S. GAAP, which is primarily reflected in Occupancy and Equipment Rental expense on the </font><font style="font-family:inherit;font-size:10pt;">Unaudited Condensed Consolidated Statements of Operations</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2016-13</font><font style="font-family:inherit;font-size:10pt;"> - In June 2016, the FASB issued ASU No. 2016-13, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Measurement of Credit Losses on Financial Instruments" </font><font style="font-family:inherit;font-size:10pt;">("ASU 2016-13"). ASU 2016-13 provides amendments to ASC 326, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Financial Instruments - Credit Losses," </font><font style="font-family:inherit;font-size:10pt;">which amend the guidance on the impairment of financial instruments and adds an impairment model (the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Entities will recognize an allowance for its estimate of expected credit losses as of the end of each reporting period. The amendments in this update are effective during interim and annual periods beginning after December 15, 2019, with early adoption permitted after December 15, 2018. The Company currently uses the specific identification method for establishing credit provisions and write-offs of its trade accounts receivable. The Company anticipates adopting ASU 2016-13 on January 1, 2020 and does not anticipate a material difference between the current method and the CECL model.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2016-15 - </font><font style="font-family:inherit;font-size:10pt;">In August 2016, the FASB issued ASU No. 2016-15, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Classification of Certain Cash Receipts and Cash Payments" </font><font style="font-family:inherit;font-size:10pt;">("ASU 2016-15"). ASU 2016-15 provides amendments to ASC 230, "</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Statement of Cash Flows,</font><font style="font-family:inherit;font-size:10pt;">" ("ASC 230") which provide guidance on the classification of certain cash receipts and payments in the statement of cash flows. The amendments in this update are effective retrospectively, or prospectively, if retrospective application is impracticable, during interim and annual periods beginning after December 15, 2017, with early adoption permitted. The adoption of ASU 2016-15 did not have a material impact on the Company's financial condition, results of operations and cash flows, or disclosures thereto.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2016-18 - </font><font style="font-family:inherit;font-size:10pt;">In November 2016, the FASB issued ASU No. 2016-18, "</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Restricted Cash</font><font style="font-family:inherit;font-size:10pt;">&quot;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"> </font><font style="font-family:inherit;font-size:10pt;">("ASU 2016-18"). ASU 2016-18 provides amendments to ASC 230, which require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents. The amendments in this update are effective retrospectively during interim and annual periods beginning after December 15, 2017, with early adoption permitted. The adoption of ASU 2016-18 resulted in restricted cash balances being included in the Unaudited Condensed Consolidated Statements of Cash Flows and expanded disclosure on these restricted cash balances. See Note 16 for further information.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2017-01 -</font><font style="font-family:inherit;font-size:10pt;"> In January 2017, the FASB issued ASU No. 2017-01, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Clarifying the Definition of a Business" </font><font style="font-family:inherit;font-size:10pt;">("ASU 2017-01"). ASU 2017-01 provides amendments to ASC 805, "</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Business Combinations,</font><font style="font-family:inherit;font-size:10pt;">" which clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update are effective prospectively during interim and annual periods beginning after December 15, 2017, with early adoption permitted. The adoption of ASU 2017-01 did not have a material impact on the Company's financial condition, results of operations and cash flows, or disclosures thereto.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2017-09 - </font><font style="font-family:inherit;font-size:10pt;">In May 2017, the FASB issued ASU No. 2017-09, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Scope of Modification Accounting"</font><font style="font-family:inherit;font-size:10pt;"> ("ASU 2017-09"). ASU 2017-09 provides amendments to ASC 718, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Compensation - Stock Compensation," </font><font style="font-family:inherit;font-size:10pt;">("ASC 718") which provide guidance and clarity around which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendments in this update are effective prospectively during interim and annual periods beginning after December 15, 2017, with early adoption permitted. The adoption of ASU 2017-09 did not have a material impact on the Company's financial condition, results of operations and cash flows, or disclosures thereto.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2018-02</font><font style="font-family:inherit;font-size:10pt;"> - In February 2018, the FASB issued ASU No. 2018-02, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income"</font><font style="font-family:inherit;font-size:10pt;"> ("ASU 2018-02"). ASU 2018-02 provides amendments to ASC 220, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">&#8220;Income Statement - Reporting Other Comprehensive Income,&#8221;</font><font style="font-family:inherit;font-size:10pt;"> which allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this update are effective either in the period of adoption or retrospectively, to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized, during interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact of this update on the Company's financial condition, results of operations and cash flows, or disclosures thereto.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2018-05</font><font style="font-family:inherit;font-size:10pt;"> - In March 2018, the FASB issued ASU No. 2018-05, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118"</font><font style="font-family:inherit;font-size:10pt;"> ("ASU 2018-05"). ASU 2018-05 adds various SEC paragraphs to ASC 740, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">&#8220;Income Taxes,&#8221;</font><font style="font-family:inherit;font-size:10pt;"> ("ASC 740") pursuant to the issuance of SEC Staff Accounting Bulletin No. 118 ("SAB 118"). The amendments in this update were effective upon issuance. See Note 18 for further information.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2018-07 - </font><font style="font-family:inherit;font-size:10pt;">In June 2018, the FASB issued ASU No. 2018-07, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Improvements to Nonemployee Share-Based Payment Accounting" </font><font style="font-family:inherit;font-size:10pt;">("ASU 2018-07"). ASU 2018-07 provides amendments to ASC 718 to align the accounting for share-based payment awards issued to employees and nonemployees, particularly surrounding the measurement date and impact of performance conditions. The amendments in this update are effective during interim and annual periods beginning after December 15, 2018, with early adoption permitted. The amendments in this update should be applied by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption for liability-classified awards that have not been settled and equity-classified awards for which a measurement date has not been established by the date of adoption, and prospectively for all new awards granted after the date of adoption. The Company is currently assessing the impact of this update on the Company's financial condition, results of operations and cash flows, or disclosures thereto.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2018-13 - </font><font style="font-family:inherit;font-size:10pt;">In August 2018, the FASB issued ASU No. 2018-13, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" </font><font style="font-family:inherit;font-size:10pt;">("ASU 2018-13"). ASU 2018-13 provides amendments to ASC 820, "</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Fair Value Measurements and Disclosures"</font><font style="font-family:inherit;font-size:10pt;"> ("ASC 820"), which remove the requirements surrounding the disclosure and policy of transfers between fair value levels and the valuation processes for recurring Level 3 fair value measurements. In addition, ASU 2018-13 adds disclosure requirements for changes in unrealized gains and losses for Level 3 measurements and the range and weighted average of significant unobservable inputs used in Level 3 fair value measurements. The amendments in this update are effective during interim and annual periods beginning after December 15, 2019, with early adoption permitted. The amendments on changes in unrealized gains and losses and unobservable inputs for Level 3 measurements should be applied prospectively, and all other amendments in this update should be applied retrospectively. The Company is currently assessing the impact of this update on the Company's financial condition, results of operations and cash flows, or disclosures thereto.</font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">ASU 2018-15 - </font><font style="font-family:inherit;font-size:10pt;">In August 2018, the FASB issued ASU No. 2018-15, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract" </font><font style="font-family:inherit;font-size:10pt;">("ASU 2018-15"). ASU 2018-15 aligns the requirements for capitalizing implementation costs in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred for internal-use software as prescribed by ASC 350, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">"Intangibles - Goodwill and Other." </font><font style="font-family:inherit;font-size:10pt;">The amendments in this update are effective either prospectively, for eligible costs incurred on or after the date this guidance is first applied, or retrospectively, during interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2018-15 during the third quarter of 2018. The adoption of ASU 2018-15 did not have a material impact on the Company's financial condition, results of operations and cash flows, or disclosures thereto.</font></div></div>

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