10-Q

SECURITIES & EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

or

      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

Commission File No. 001-14761

GAMCO INVESTORS, INC.

(Exact name of Registrant as specified in its charter)

Delaware	13-4007862
(State of other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Corporate Center, Rye, NY	10580-1422
(Address of principle executive offices)	(Zip Code)

(914) 921-3700

Registrant's telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company o Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes   No 

Indicate the number of shares outstanding of each of the Registrant's classes of Common Stock, as of the latest practical date.

Class		Outstanding at October 31, 2017
Class A Common Stock, .001 par value	(Including 164,050 restricted stock awards)	10,089,844
Class B Common Stock, .001 par value		19,062,168

INDEX
GAMCO INVESTORS, INC. AND SUBSIDIARIES
PART I.	FINANCIAL INFORMATION
Item 1.	Unaudited Condensed Consolidated Financial Statements
	Condensed Consolidated Statements of Income:
	- Three months ended September 30, 2017 and 2016
	- Nine months ended September 30, 2017 and 2016
	Condensed Consolidated Statements of Comprehensive Income:
	- Three months ended September 30, 2017 and 2016
	- Nine months ended September 30, 2017 and 2016
	Condensed Consolidated Statements of Financial Condition:
	- September 30, 2017
	- December 31, 2016
	- September 30, 2016
	Condensed Consolidated Statements of Equity:
	- Nine months ended September 30, 2017 and 2016
	Condensed Consolidated Statements of Cash Flows:
	- Nine months ended September 30, 2017 and 2016
	Notes to Unaudited Condensed Consolidated Financial Statements
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.	Quantitative and Qualitative Disclosures About Market Risk (Included in Item 2)
Item 4.	Controls and Procedures
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.	Exhibits
SIGNATURES

2

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

UNAUDITED

(Dollars in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Revenues
Investment advisory and incentive fees	$	77,328		$	75,952		$	228,942		$	219,594
Distribution fees and other income		11,013			11,769			32,916			33,456
Total revenues		88,341			87,721			261,858			253,050
Expenses
Compensation		42,919			21,233			97,634			62,130
Management fee		4,935			1,163			9,455			3,376
Distribution costs		11,665			11,568			33,373			32,786
Other operating expenses		5,429			5,681			15,900			14,993
Total expenses		64,948			39,645			156,362			113,285
Operating income		23,393			48,076			105,496			139,765
Other income (expense)
Net gain from investments		2,841			55			2,867			518
Interest and dividend income		745			371			1,765			1,104
Interest expense		(2,688	)		(3,155	)		(8,269	)		(9,729	)
Shareholder-designated contribution		(3,857	)		-			(3,857	)		-
Total other expense, net		(2,959	)		(2,729	)		(7,494	)		(8,107	)
Income before income taxes		20,434			45,347			98,002			131,658
Income tax provision		3,834			14,486			33,688			47,229
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	16,600		$	30,861		$	64,314		$	84,429
Net income attributable to GAMCO Investors, Inc.'s shareholders
per share:
Basic	$	0.57		$	1.06		$	2.22		$	2.89
Diluted	$	0.55		$	1.03		$	2.14		$	2.85
Weighted average shares outstanding:
Basic		28,926			29,185			28,930			29,222
Diluted		31,173			30,406			31,144			29,811
Dividends declared:	$	0.02		$	0.02		$	0.06		$	0.06

See accompanying notes.

3

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

UNAUDITED

(Dollars in thousands, except per share data)

	Three Months Ended							Nine Months Ended
	September 30,							September 30,
	2017			2016				2017			2016
Net income		$	16,600		$	30,861			$	64,314		$	84,429
Other comprehensive gain/(loss), net of tax:
Foreign currency translation			28			(28	)			75			(121	)
Net unrealized gains on securities available for sale (a)			2,321			506				1,019			323
Other comprehensive gain			2,349			478				1,094			202
Comprehensive income attributable to GAMCO Investors, Inc.		$	18,949		$	31,339			$	65,408		$	84,631

(a) Net of income tax expense of $1,363, $297, $599 and $190, respectively.

See accompanying notes.

4

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

UNAUDITED

(Dollars in thousands, except per share data)

	September 30,			December 31,			September 30,
	2017			2016			2016
ASSETS
Cash and cash equivalents, including restricted cash of $95, $0 and $0, respectively	$	61,097		$	39,812		$	33,852
Investments in securities, including restricted investments in securities
of $59,954, $0 and $0, respectively		101,425			37,285			32,889
Receivable from brokers		1,342			453			344
Investment advisory fees receivable		25,549			43,736			26,606
Receivable from affiliates		4,784			5,960			4,745
Income tax receivable and deferred tax asset		24,941			9,349			10,634
Other assets		11,888			12,634			12,198
Total assets	$	231,026		$	149,229		$	121,268
LIABILITIES AND EQUITY
Payable to brokers	$	13,311		$	66		$	10,203
Income taxes payable and deferred tax liabilities		3,215			3,815			164
Capital lease obligation		4,976			5,066			5,094
Compensation payable		82,896			42,384			31,469
Payable to affiliates		2,981			1,412			7,679
Accrued expenses and other liabilities		24,134			29,178			31,801
Sub-total		131,513			81,921			86,410
4.5% Convertible note (net of issuance costs of $138, $165 and $174, respectively)
(due August 15, 2021) (Note F)		109,862			109,835			109,826
AC 4% PIK Note (due November 30, 2020) (Note F)		70,000			100,000			100,000
5.875% Senior notes (net of issuance costs of $87, $105 and $110, respectively)
(due June 1, 2021) (Note F)		24,138			24,120			24,115
Total liabilities		335,513			315,876			320,351
Commitments and contingencies (Note I)		-			-			-
Equity
GAMCO Investors, Inc. stockholders' equity
Preferred stock, $.001 par value;10,000,000 shares authorized;
none issued and outstanding		-			-			-
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized;
15,473,725, 15,477,082 and 15,480,032 issued, respectively;10,075,944,
10,369,601 and 10,454,392 outstanding, respectively		14			14			14
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized;
24,000,000 shares issued; 19,092,168, 19,093,311 and 19,093,311 shares
outstanding, respectively		19			19			19
Additional paid-in capital		11,084			3,903			3,135
Retained earnings		143,026			80,515			48,412
Accumulated other comprehensive income		12,365			11,271			9,317
Treasury stock, at cost (5,397,781, 5,107,481 and 5,025,640 shares, respectively)		(270,995	)		(262,369	)		(259,980	)
Total GAMCO Investors, Inc. stockholders' equity (deficit)		(104,487	)		(166,647	)		(199,083	)
Total liabilities and equity	$	231,026		$	149,229		$	121,268

See accompanying notes.

5

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

UNAUDITED

(In thousands)

For the Nine Months Ended September 30, 2017

	GAMCO Investors, Inc. stockholders
								Accumulated
			Additional					Other
	Common		Paid-in		Retained			Comprehensive			Treasury
	Stock		Capital		Earnings			Income			Stock			Total
Balance at December 31, 2016	$	33	$	3,903	$	80,515		$	11,271		$	(262,369	)	$	(166,647	)
Net income		-		-		64,314			-			-			64,314
Net unrealized gains on
securities available for sale,
net of income tax expense ($1,663)		-		-		-			2,830			-			2,830
Amounts reclassified from
accumulated other
comprehensive income,
net of income tax benefit ($1,064)		-		-		-			(1,811	)		-			(1,811	)
Foreign currency translation		-		-		-			75			-			75
Dividends declared ($0.06 per
share)		-		-		(1,803	)		-			-			(1,803	)
Stock based compensation
expense		-		7,181		-			-			-			7,181
Purchase of treasury stock		-		-		-			-			(8,626	)		(8,626	)
Balance at September 30, 2017	$	33	$	11,084	$	143,026		$	12,365		$	(270,995	)	$	(104,487	)

See accompanying notes.

6

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

UNAUDITED

(In thousands)

For the Nine Months Ended September 30, 2016

	GAMCO Investors, Inc. stockholders
									Accumulated
			Additional			Retained			Other
	Common		Paid-in			Earnings			Comprehensive			Treasury
	Stock		Capital			(Deficit)			Income			Stock			Total
Balance at December 31, 2015	$	33	$	345		$	(34,224	)	$	9,115		$	(251,596	)	$	(276,327	)
Net income		-		-			84,429			-			-			84,429
Net unrealized gains on
securities available for sale,
net of income tax expense ($129)		-		-			-			221			-			221
Amounts reclassified from
accumulated other
comprehensive income,
net of income tax expense ($61)		-		-			-			102			-			102
Foreign currency translation		-		-			-			(121	)		-			(121	)
Dividends declared ($0.06 per
share)		-		-			(1,793	)		-			-			(1,793	)
Stock based compensation
expense		-		3,258			-			-			-			3,258
Reduction of deferred tax asset
for excess of recorded RSA tax
benefit over actual tax benefit		-		(468	)		-			-			-			(468	)
Purchase of treasury stock		-		-			-			-			(8,384	)		(8,384	)
Balance at September 30, 2016	$	33	$	3,135		$	48,412		$	9,317		$	(259,980	)	$	(199,083	)

See accompanying notes.

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED

(In thousands)

	Nine Months Ended
	September 30,
	2017			2016
Operating activities
Net income	$	64,314		$	84,429
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		439			470
Stock based compensation expense		7,181			3,258
Deferred income taxes		(9,229	)		(3,930	)
Foreign currency translation loss		75			(121	)
Cost basis of donated securities		1,051			68
Net gains on sales of available for sale securities		(20	)		(4	)
(Increase) decrease in assets:
Investments in trading securities		(59,943	)		223
Receivable from affiliates		1,179			290
Receivable from brokers		(889	)		747
Investment advisory fees receivable		18,188			4,442
Income taxes receivable and deferred tax assets		(15,592	)		(3,847	)
Other assets		325			534
Increase (decrease) in liabilities:
Payable to affiliates		1,569			(8	)
Payable to brokers		13,245			10,190
Income taxes payable and deferred tax liabilities		8,029			(1,384	)
Compensation payable		40,506			7,051
Accrued expenses and other liabilities		(5,199	)		2,804
Total adjustments		915			20,783
Net cash provided by operating activities	$	65,229		$	105,212

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED (continued)

(In thousands)

	Nine Months Ended
	September 30,
	2017			2016
Investing activities
Purchases of available for sale securities	$	(3,932	)	$	(223	)
Proceeds from sales of available for sale securities		321			408
Net cash (used in) provided by investing activities		(3,611	)		185
Financing activities
Issuance of 4.5% Convertible note		-			109,826
Dividends paid		(1,737	)		(1,752	)
Purchase of treasury stock		(8,626	)		(8,384	)
Repayment of AC 4% PIK Note		(30,000	)		(150,000	)
Repayment of loan from GGCP		-			(35,000	)
Amortization of debt issuance costs		45			18
Net cash used in financing activities		(40,318	)		(85,292	)
Effect of exchange rates on cash and cash equivalents		(15	)		28
Net increase in cash and cash equivalents		21,285			20,133
Cash and cash equivalents at beginning of period		39,812			13,719
Cash and cash equivalents at end of period	$	61,097		$	33,852
Supplemental disclosures of cash flow information:
Cash paid for interest	$	6,621		$	4,561
Cash paid for taxes	$	52,628		$	55,216

Non-cash activity:

- For the nine months ended September 30, 2017 and September 30, 2016, the Company accrued dividends on restricted stock awards of $66 and $41, respectively.

- For the nine months ended September 30, 2016, the Company recorded $468 as a reduction to its deferred tax asset and additional paid-in capital for the excess of the recorded restricted stock award tax benefit over the actual tax benefit.

See accompanying notes.

9

GAMCO INVESTORS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2017

(Unaudited)

A.  Significant Accounting Policies

Basis of Presentation

Unless we have indicated otherwise, or the context otherwise requires, references in this report to “GAMCO Investors, Inc.,” “GAMCO,” “the Company,” “GBL,” “we,” “us” and “our” or similar terms are to GAMCO Investors, Inc., its predecessors and its subsidiaries.

The unaudited interim condensed consolidated financial statements of GAMCO included herein have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP in the United States for complete financial statements.  In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of GAMCO for the interim periods presented and are not necessarily indicative of a full year’s results.

The interim condensed consolidated financial statements include the accounts of GAMCO and its subsidiaries.  Intercompany accounts and transactions are eliminated.

These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016.

Use of Estimates

The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported on the interim condensed consolidated financial statements and accompanying notes.  Actual results could differ from those estimates.

Recent Accounting Developments

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers," which supersedes the revenue recognition requirements in the Accounting Standards Codification ("Codification") Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the Codification.  The core principle of the new ASU No. 2014-09 is for companies to recognize revenue from the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services.  The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition.  In March 2016, the FASB issued revised guidance which clarifies the guidance related to (a) determining the appropriate unit of account under the revenue standard’s principal versus agent guidance and (b) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control principle. In April 2016, the FASB issued an amendment to provide more detailed guidance including additional implementation guidance and examples related to a) identifying performance obligations and b) licenses of intellectual property. In May 2016, the FASB amended the standard to clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. This new guidance will be effective for the Company's first quarter of 2018 and requires either a full retrospective or a modified retrospective approach to adoption. The Company’s implementation analysis is nearing completion, and the Company does not expect the adoption of the guidance to have a significant effect on the timing of the recognition of revenue.  The Company has also been reviewing and preparing for the enhanced disclosure requirements of the standard, which will have an effect on the disclosures in the consolidated financial statements and accompanying notes.  The overall effect upon adoption may change based on further analysis and implementation efforts. Finally, the Company has not yet determined which transition method it will use.

In January 2016, the FASB issued ASU 2016-01, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Although the ASU retains many current requirements, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. To adopt the amendments, entities will be required to make a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year in which the guidance is effective. This new guidance will be effective for the Company’s first quarter of 2018. Upon adoption of this guidance, changes in the fair value of the Company’s available-for-sale investments will be reported through earnings rather than through other comprehensive income.

10

In February 2016, the FASB issued ASU 2016-02, which amends the guidance in U.S. GAAP for the accounting for leases.  ASU 2016-02 requires a lessee to recognize assets and liabilities arising from most operating leases in the condensed consolidated statement of financial position. It requires these operating leases to be recorded on the balance sheet as right of use assets and offsetting lease liability obligations.  This new guidance will be effective for the Company’s first quarter of 2019. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. For public companies, the ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods.  The Company adopted this guidance on January 1, 2017 without a material impact to the consolidated financial statements.  Please see Note D.

In August 2016, the FASB issued ASU 2016-15, which adds and clarifies guidance on the classification of certain cash receipts and payments in the consolidated statements of cash flows.  This guidance is intended to unify the currently diverse presentations and classifications, which address eight classification issues related to the statement of cash flows, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This new guidance will be effective for the Company’s first quarter of 2018 and requires a retrospective approach to adoption. The Company is currently evaluating the potential effect of this new guidance on its condensed consolidated financial statements and the related disclosures.

In November 2016, the FASB issued ASU 2016-18, which amends ASC 230 to clarify guidance on the classification and presentation of restricted cash in the statement of cash flows.  Key requirements are that an entity should include in its cash and cash equivalent balances in the statement of cash flow those amounts that are deemed to be restricted cash and restricted cash equivalents and that a reconciliation between the statement of financial position and the statement of cash flows must be disclosed when the statement of financial position includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents.  The ASU also mandates that changes in restricted cash and restricted cash equivalents that result from transfers between cash, cash equivalents, restricted cash, and restricted cash equivalents should not be presented as cash flow activities in the statement of cash flows and that an entity with a material amount of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions.  This new guidance was to be effective for the Company’s first quarter of 2018, but the Company has elected to early adopt in the third quarter of 2017.  There was no material impact to the consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04 to simplify the process used to test for goodwill impairment.  A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This new guidance will be effective for the Company’s first quarter of 2020. The Company is currently evaluating the potential effect of this new guidance on its condensed consolidated financial statements and related disclosures.

On May 10, 2017, the FASB issued ASU 2017-09, which amends the scope of modification accounting for share-based payment arrangements.  The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718.  Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification.  For all entities, the ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017.  Early adoption is permitted, including adoption in any interim period.  This ASU, which we did not early adopt, would not have impacted the accounting for the acceleration of vesting of restricted stock awards during the nine months ended September 30, 2017.

11

B.  Investment in Securities

Investments in securities at September 30, 2017, December 31, 2016 and September 30, 2016 consisted of the following:

	September 30, 2017				December 31, 2016				September 30, 2016
	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
	(In thousands)
Trading securities:
US Government Obligations	$	59,905	$	59,954	$	-	$	-	$	-	$	-
Common stocks		24		31		51		54		16		16
Mutual Funds		11		11		-		-		-		-
Total trading securities		59,940		59,996		51		54		16		16
Available for sale securities:
Common stocks		21,319		41,315		18,739		37,131		17,649		32,873
Closed-end funds		99		114		99		100		-		-
Total available for sale securities		21,418		41,429		18,838		37,231		17,649		32,873
Total investments in securities	$	81,358	$	101,425	$	18,889	$	37,285	$	17,665	$	32,889

There were no securities sold, not yet purchased at September 30, 2017, December 31, 2016 and September 30, 2016.

$59.9 million of U.S. Government Obligations are held in an escrow account for the benefit of the Convertible Note holder.

Management determines the appropriate classification of debt and equity securities at the time of purchase and reevaluates such designation as of the date of each condensed consolidated statement of financial condition.  Investments in United States Treasury Bills and Notes with maturities of greater than three months at the time of purchase are classified as investments in securities, and those with maturities of three months or less at the time of purchase are classified as cash equivalents.  The portion of investments in securities held for resale in anticipation of short-term market movements are classified as trading securities.  Trading securities are stated at fair value, with any unrealized gains or losses reported in current period earnings.  Available for sale (“AFS”) investments are stated at fair value, with any unrealized gains or losses, net of taxes, reported as a component of equity except for losses deemed to be other than temporary (“OTT”) which are recorded as realized losses in the condensed consolidated statements of income.

The following table identifies all reclassifications out of accumulated other comprehensive income (“AOCI”) into income for the three and nine months ended September 30, 2017 and 2016 (in thousands):

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Three Months Ended September 30,
2017				2016
	$	20			$	-		Net gain from investments	Realized gain on sale of AFS securities
		2,821				7		Other operating expenses/net gains from investments	Realized gain on donations of AFS securities
		2,841				7		Income before income taxes
		(1,051	)			(3	)	Income tax provision
	$	1,790			$	4		Net income

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Nine Months Ended September 30,
2017				2016
	$	20			$	4		Net gain from investments	Realized gain on sale of AFS securities
		2,855				159		Other operating expenses/net gains from investments	Realized gain on donations of AFS securities
		2,875				163		Income before income taxes
		(1,064	)			(61	)	Income tax provision
	$	1,811			$	102		Net income

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The following is a summary of the cost, gross unrealized gains, gross unrealized losses and fair value of available for sale investments as of September 30, 2017, December 31, 2016 and September 30, 2016:

	September 30, 2017
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	21,319		$	19,996		$	-		$	41,315
Closed-end funds			99			15			-			114
Total available for sale securities		$	21,418		$	20,011		$	-		$	41,429

	December 31, 2016
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	18,739		$	18,392		$	-		$	37,131
Closed-end funds			99			1			-			100
Total available for sale securities		$	18,838		$	18,393		$	-		$	37,231

	September 30, 2016
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	17,649		$	15,224		$	-		$	32,873
Total available for sale securities		$	17,649		$	15,224		$	-		$	32,873

A net unrealized gain, net of taxes, for the three months ended September 30, 2017 and 2016 of $2.3 million and $0.5 million, respectively, has been included in other comprehensive income, a component of equity, at September 30, 2017 and 2016.  During the three months ended September 30, 2017, proceeds from the sales of investments available for sale were approximately $321,000 and gross gains on the sale of investments available for sale amounted to $20,000 and were reclassified from other comprehensive income into net gain from investments in the condensed consolidated statements of income.  There were no sales of investments available for sale for the three months ended September 30, 2016. There were no realized losses on the sale of investments available for sale for the three months ended September 30, 2017 or September 30, 2016.  A net unrealized gain, net of taxes, for the nine months ended September 30, 2017 and 2016 of $1.0 million and $0.3 million, respectively, has been included in other comprehensive income, a component of equity, at September 30, 2017 and 2016, respectively.  During the nine months ended September 30, 2017 and 2016, proceeds from the sales of investments available for sale were approximately $321,000 and $408,000, respectively, and gross gains on the sale of investments available for sale amounted to $20,000 and $4,000, respectively, and were reclassified from other comprehensive income into net gain from investments in the condensed consolidated statements of income.  There were no realized losses on the sale of investments available for sale for the nine months ended September 30, 2017 or September 30, 2016.  The basis on which the cost of a security sold is determined using specific identification.  Accumulated other comprehensive income on the condensed consolidated statements of equity is primarily comprised of unrealized gains/losses, net of taxes, for AFS securities.

The Company has an established accounting policy and methodology to determine other-than-temporary impairment on available for sale securities.  Under this policy, available for sale securities are evaluated for other than temporary impairments and any impairment charges are recorded in net gain/(loss) from investments on the condensed consolidated statements of income.  Management reviews all available for sale securities whose cost exceeds their market value to determine if the impairment is other than temporary.  Management uses qualitative factors such as diversification of the investment, the amount of time that the investment has been impaired, the intent to sell and the severity of the decline in determining whether the impairment is other than temporary.  

There were no investments classified as available for sale that were in an unrealized loss position at September 30, 2017, December 31, 2016 or September 30, 2016.

For the three and nine months ended September 30, 2017 and 2016, there were no losses on available for sale securities that were deemed to be other than temporary.

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C. Fair Value

The following tables present information about the Company’s assets and liabilities by major categories measured at fair value on a recurring basis as of September 30, 2017, December 31, 2016 and September 30, 2016 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value:

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of September 30, 2017 (in thousands)

	Quoted Prices in Active		Significant Other		Significant		Balance as of
	Markets for Identical		Observable		Unobservable		September 30,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2017
Cash equivalents	$	60,702	$	-	$	-	$	60,702
Investments in securities:
AFS - Common stocks		41,315		-		-		41,315
AFS - Closed-end Funds		114		-		-		114
US Government Obligations		59,954		-		-		59,954
Trading - Common stocks		31		-		-		31
Trading - Mutual Funds		11		-		-		11
Total investments in securities		101,425		-		-		101,425
Total assets at fair value	$	162,127	$	-	$	-	$	162,127

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2016 (in thousands)

	Quoted Prices in Active		Significant Other		Significant		Balance as of
	Markets for Identical		Observable		Unobservable		December 31,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2016
Cash equivalents	$	39,638	$	-	$	-	$	39,638
Investments in securities:
AFS - Common stocks		37,131		-		-		37,131
AFS - Closed-end Funds		100		-		-		100
Trading - Common stocks		54		-		-		54
Total investments in securities		37,285		-		-		37,285
Total assets at fair value	$	76,923	$	-	$	-	$	76,923

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of September 30, 2016 (in thousands)

	Quoted Prices in Active		Significant Other		Significant		Balance as of
	Markets for Identical		Observable		Unobservable		September 30,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2016
Cash equivalents	$	33,576	$	-	$	-	$	33,576
Investments in securities:
AFS - Common stocks		32,873		-		-		32,873
Trading - Common stocks		16		-		-		16
Total investments in securities		32,889		-		-		32,889
Total assets at fair value	$	66,465	$	-	$	-	$	66,465

During the quarters ended September 30, 2017 and 2016, there were no transfers between any Level 1 and Level 2 holdings, or between Level 1 and Level 3 holdings.

D. Income Taxes

The effective tax rate (“ETR”) for the three months ended September 30, 2017 and September 30, 2016 was 18.8% and 31.9%, respectively. The ETR for the nine months ended September 30, 2017 and September 30, 2016 was 34.4% and 35.9%, respectively. The current year quarter’s ETR benefited from the reversal of certain tax accruals totaling $3.6 million due to a change in accounting estimate as well as a $1.0 million tax benefit related to the charitable contribution while the prior year quarter benefited from a reversal of $2.6 million in tax accruals due to the conclusion of a state audit.

14

ASU 2016-09, which was issued in March 2016 and became effective for interim and annual reporting periods beginning after December 15, 2016, simplifies several aspects of accounting for employee share-based payment transactions. Upon adoption of ASU 2016-09 on January 1, 2017, our accounting for excess tax benefits has changed and adopted prospectively, resulting in recognition of excess tax benefits or tax deficiencies against income tax expenses rather than additional paid-in capital.  During the three and nine months ended September 30, 2017, the ETR was higher by 3.6% and 1.0%, respectively, as a result of a reduction to previously recorded stock compensation tax benefits.

E. Earnings Per Share

Thecomputations of basic and diluted net income per share are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2017		2016		2017		2016
Basic:
Net income attributable to GAMCO Investors, Inc.'s
shareholders	$	16,600	$	30,861	$	64,314	$	84,429
Weighted average shares outstanding		28,926		29,185		28,930		29,222
Basic net income per share attributable to GAMCO
Investors, Inc.'s shareholders	$	0.57	$	1.06	$	2.22	$	2.89
Diluted:
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	16,600	$	30,861	$	64,314	$	84,429
Add interest on convertible note, net of management fee and taxes		696		387		2,192		387
Total income attributable to GAMCO Investors, Inc.'s shareholders	$	17,296	$	31,248	$	66,506	$	84,816
Weighted average share outstanding		28,926		29,185		28,930		29,222
Restricted stock awards		247		221		214		253
Assumed conversion of convertible note		2,000		1,000		2,000		336
Total		31,173		30,406		31,144		29,811
Diluted net income per share attributable to GAMCO
Investors, Inc.'s shareholders	$	0.55	$	1.03	$	2.14	$	2.85

F. Debt

Debt consists of the following:

	September 30, 2017						December 31, 2016						September 30, 2016
	Carrying			Fair Value			Carrying			Fair Value			Carrying			Fair Value
	Value			Level 2			Value			Level 2			Value			Level 2
(In thousands)
4.5 % Convertible note		$	109,862			111,574		$	109,835		$	111,525		$	109,826		$	112,172
AC 4% PIK Note			70,000			71,755			100,000			100,930			100,000			101,347
5.875% Senior notes			24,138			24,748			24,120			24,558			24,115			25,073
Total		$	204,000		$	208,077		$	233,955		$	237,013		$	233,941		$	238,592

4.5% Convertible Note

On August 15, 2016, the Company issued and sold a 5-year, $110 million convertible note (“Convertible Note”).  The note bears interest at a rate of 4.5% per annum and is convertible into shares of the Company’s Class A Common stock (“Class A Stock”) at an initial conversion price of $55.00 per share.  The Convertible Note is initially convertible into two million shares of the Company’s Class A Stock, subject to adjustment pursuant to the terms of the Convertible Note.  The Company is required to repurchase the Convertible Note at the request of the holder on specified dates or after certain circumstances involving a Fundamental Change (as defined in the Convertible Note).  The Company recorded $174,000 of costs in connection with the issuance of the Convertible Note.  GGCP, Inc. (“GGCP”), which owns approximately 63 % of the equity interest of the Company, has deposited cash equal to the principal amount of the Note and six months interest (“Initial Deposit”) into an escrow account established pursuant to an escrow agreement by and among GGCP, the Company, the Convertible Note holder and the escrow agent.  In connection with the Initial Deposit made by GGCP, the Company has agreed that GGCP has a right to demand payment in an amount equal to any funds withdrawn from the escrow account by the Convertible Note holder.

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A portion of the proceeds from the sale of the Convertible Note are now held in an escrow account established pursuant to an escrow agreement dated August 15, 2016 by and among the Company, GGCP and its related parties, Cascade and JP Morgan Chase Bank, National Association, as escrow agent (the “Escrow Agreement”).  On September 30, 2017, in connection with an amendment to the Escrow Agreement and in exchange for approximately 53% of the assets in the escrow account, the Company paid GGCP $60 million. The $60 million is disclosed as restricted cash and restricted investment in securities of $0.1 million and $59.9 million, respectively, on the statement of financial condition. The Escrow Agreement provides for the release to the Company of a pro rata portion of the escrowed funds upon repayment of the Convertible Note or conversion of the Convertible Note, based upon the principal amount of the Convertible Note that is converted into Class A Stock.  Under the Convertible Note, Cascade has the right to claim the escrowed funds upon a payment default by the Company.  It is the Company’s current plan to redeem the Convertible Note no later than February 15, 2019.

AC 4% PIK Note

In connection with the spin-off of AC on November 30, 2015, the Company issued a $250 million promissory note (the “AC 4% PIK Note”) payable to AC.  The AC 4% PIK Note bears interest at 4.0% per annum.  The original principal amount has a maturity date of November 30, 2020.  Interest on the AC 4% PIK Note will accrue from the date of the last interest payment, or if no interest has been paid, from the effective date of the AC 4% PIK Note.  At the election of the Company, payment of interest on the AC 4% PIK Note may be paid in kind (in whole or in part) on the then-outstanding principal amount (a “PIK Amount”) in lieu of cash.  All PIK Amounts added to the outstanding principal amount of the AC 4% PIK Note will mature on the fifth anniversary from the date the PIK Amount was added to the outstanding principal of the AC 4% PIK Note.  In no event may any interest be paid in kind subsequent to November 30, 2019.  The Company may prepay the AC 4% PIK Note (in whole or in part) prior to maturity without penalty.

During the three and nine months ended September 30, 2017, the Company prepaid $10 million and $30 million, respectively, of principal of the AC 4% PIK Note against the principal amount due on November 30, 2018.  Of the $70 million principal amount outstanding after this payment, $20 million is due on November 30, 2019, and $50 million is due on November 30, 2020. During the three and nine months ended September 30, 2016, the Company prepaid $150 million of principal of the AC 4% PIK Note.  Subsequent to quarter end, the Company paid an additional $20 million of principal, thereby reducing the amount outstanding to $50 million, all of which is due on November 30, 2020.

5.875% Senior Notes

On May 31, 2011, the Company issued 10-year, $100 million senior notes (“Senior Notes”).  The Senior Notes mature on June 1, 2021 and bear interest at 5.875% per annum, payable semi-annually on June 1 and December 1 of each year and commenced on December 1, 2011.  Upon the occurrence of a change of control triggering event, as defined in the indenture, the Company would be required to offer to repurchase the Senior Notes at 101% of their principal amount.

At September 30, 2017, December 31, 2016 and September 30, 2016, the debt was recorded at its face value, net of issuance costs, of $24.1 million, $24.1 million and $24.1 million, respectively.

The fair value of the Company’s debt, which is a Level 2 valuation, is estimated based on either quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities or using market standard models.  Inputs in these standard models include credit rating, maturity and interest rate.

G. Stockholders’ Equity

Shares outstanding were 29.2 million, 29.5 million and 29.5 million on September 30, 2017, December 31, 2016 and September 30, 2016, respectively.

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Dividends

	Record	Payment
	Date	Date	Amount
Three months ended March 31, 2017	March 14, 2017	March 28, 2017	$	0.02
Three months ended June 30, 2017	June 27, 2017	July 11, 2017		0.02
Three months ended September 30, 2017	September 12, 2017	September 26, 2017		0.02
Nine months ended September 30, 2017			$	0.06

	Record	Payment
	Date	Date	Amount
Three months ended March 31, 2016	March 15, 2016	March 29, 2016	$	0.02
Three months ended June 30, 2016	June 14, 2016	June 28, 2016		0.02
Three months ended September 30, 2016	September 13, 2016	September 27, 2016		0.02
Nine months ended September 30, 2016			$	0.06

Voting Rights

The holders of Class A Stock and Class B Common stock (“Class B Stock”) have identical rights except that (i) holders of Class A Stock are entitled to one vote per share, while holders of Class B Stock are entitled to ten votes per share on all matters to be voted on by shareholders in general, and (ii) holders of Class A Stock are not eligible to vote on matters relating exclusively to Class B Stock and vice versa.

Stock Award and Incentive Plan

The Company maintains two Plans approved by the shareholders, which are designed to provide incentives which will attract and retain individuals key to the success of GBL through direct or indirect ownership of our common stock. Benefits under the Plans may be granted in any one or a combination of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents and other stock or cash based awards. A maximum of 7.5 million shares of Class A Stock have been reserved for issuance under the Plans by a committee of the Board of Directors responsible for administering the Plans (“Compensation Committee”). Under the Plans, the committee may grant RSAs and either incentive or nonqualified stock options with a term not to exceed ten years from the grant date and at an exercise price that the committee may determine.

As of September 30, 2017, December 31, 2016 and September 30, 2016, there were 164,050 RSA shares, 424,340 RSA shares and 427,290 RSA shares outstanding, respectively, that were previously issued at an average weighted grant price of $66.84, $65.74 and $65.72, respectively. These RSA grants occurred prior to the spin-off of Associated Capital (“AC”). On November 30, 2015, pursuant to the spin-off, all RSA grant holders received shares of AC’s Class A common stock as a result of their ownership of their GAMCO unvested RSAs (one share of AC for each share of GBL). All grants of the RSA shares were recommended by the Company's Chairman, who did not receive a RSA, and approved by the Compensation Committee. This expense, net of estimated forfeitures, is recognized over the vesting period for these awards which is either (1) 30% over three years from the date of grant and 70% over five years from the date of grant or (2) 30% over three years from the date of grant and 10% each year over years four through ten from the date of grant.  During the vesting period, dividends to RSA holders are held for them until the RSA vesting dates and are forfeited if the grantee is no longer employed by the Company on the vesting dates.  Dividends declared on these RSAs, less estimated forfeitures, are charged to retained earnings (deficit) on the declaration date.

On June 1, 2017, the Compensation Committee of AC accelerated the vesting of all 420,240 AC RSAs outstanding effective June 15, 2017.  As a result, GBL recorded an incremental $3.7 million of stock-based compensation expense for the nine months ended September 30, 2017.  This amount related to GBL teammates who held AC RSAs.  There will be no further expense related to these AC RSAs recorded by GBL after the second quarter ended June 30, 2017.

On August 7, 2017, the Compensation Committee of GBL accelerated the vesting relating to 201,120 of GBL RSAs outstanding effective August 31, 2017.  As a result, GBL recorded an incremental $1.8 million of stock-based compensation expense for the three and nine months ended September 30, 2017.  There continue to be 164,050 GBL RSAs outstanding that were not vested as part of this acceleration which will result in recognition of expense as these RSAs continue to vest.  See table below for impact by quarter.

ASU 2016-09, which was issued in March 2016 and became effective for interim and annual reporting periods beginning after December 15, 2016, simplifies several aspects of accounting for employee share-based payment transactions.  Upon adoption of ASU 2016-09 on January 1, 2017, the Company elected not to change its accounting policy on forfeitures and continue to estimate forfeitures rather than accounting for forfeitures as they occur, an alternative allowed under ASU 2016-09.  The Company’s accounting treatment for excess tax benefits or tax deficiencies also changed with the adoption of ASU 2016-09 on January 1, 2017. Excess tax benefits or tax deficiencies are now required to be recorded within the income tax expense line in the consolidated statement of income rather than to additional paid-in capital within the condensed consolidated statement of financial condition.  During the three and nine months ended September 30, 2017, the Company reduced previously recorded tax benefits relating to RSA expense by $0.7 million and $1.0 million, respectively, on RSAs that vested.

17

For the three months ended September 30, 2017 and September 30, 2016, we recognized stock-based compensation expense of $2.1 million and $1.2 million, respectively.  For the nine months ended September 30, 2017 and September 30, 2016, we recognized stock-based compensation expense of $7.2 million and $3.3 million, respectively.  The three month amount for 2017 includes the $1.8 million related to the GBL RSA accelerated vesting mentioned above.  The nine month amount for 2017 includes the $1.8 million related to the GBL RSAs’ accelerated vesting and the $3.7 million related to the AC RSAs’ accelerated vesting both mentioned above.  All stock-based compensation expense in future periods for grants currently outstanding will relate to GBL RSAs only.

Actual and projected stock-based compensation expense for RSA shares for the years ended December 31, 2016 through December 31, 2024 is as follows (in thousands):

		2016		2017		2018		2019		2020		2021		2022		2023		2024
	Q1	$	1,037	$	699	$	144	$	113	$	72	$	49	$	32	$	17	$	4
	Q2		1,036		4,381		141		113		68		49		32		17		4
	Q3		1,186		2,103		126		101		57		39		24		10		2
	Q4		691		157		113		90		49		32		17		4		-
Full Year		$	3,950	$	7,340	$	524	$	417	$	246	$	169	$	105	$	48	$	10

The total compensation cost related to non-vested RSAs not yet recognized is approximately $1.7 million as of September 30, 2017.

Stock Repurchase Program

In March 1999, GAMCO's Board of Directors established the Stock Repurchase Program to grant management the authority to repurchase shares of our Class A Common Stock.  On May 3, 2017, our Board of Directors authorized an incremental 500,000 shares to be added to the current buyback authorization. On August 3, 2017, our Board of Directors authorized an incremental 425,352 shares to be added to the current buy back authorization. For the three months ended September 30, 2017 and September 30, 2016, the Company repurchased 131,480 shares and 223,811 shares, respectively, at an average price per share of $29.42 and $31.50, respectively.  For the nine months ended September 30, 2017 and September 30, 2016, the Company repurchased 290,300 shares and 266,846 shares, respectively, at an average price per share of $29.71 and $31.41, respectively.  From the inception of the program through September 30, 2017, 10,191,640 shares have been repurchased at an average price of $43.90 per share.  At September 30, 2017, the total shares available under the program to be repurchased in the future were 868,520.

Shelf Registration

On May 4, 2015, the Securities and Exchange Commission (“SEC”) declared effective the “shelf” registration statement filed by the Company. The “shelf” provides the Company with the flexibility of issuing any combination of senior and subordinated debt securities, convertible securities and common and preferred securities up to a total amount of $500 million and replaced the existing shelf registration which expired in May 2015.  As of September 30, 2017, $500 million is available on the shelf.

H. Related Party Transactions

In connection with the issuance of the Convertible Note in August 2016, GGCP deposited cash of approximately $112.5 million, equal to the principal amount of the Convertible Note and six months interest, into an escrow account established pursuant to an escrow agreement by and among GGCP, the Company, the Convertible Note holder and the escrow agent.  The Company paid the annual costs of setting up the escrow account in the amount of $55,000 and will continue to pay them as long as the escrow account is open.  The Company did not pay any fees to GGCP in connection with the funding of the escrow account.  On September 30, 2017, in connection with an amendment to the Escrow Agreement and in exchange for approximately 53% of the assets in the escrow account, the Company paid GGCP $60 million.  See Note F. Debt for additional details.

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I. Identifiable Intangible Assets

As a result of becoming the advisor to the Gabelli Enterprise Mergers and Acquisitions Fund and the associated consideration paid, the Company maintains an identifiable intangible asset of $1.9 million within other assets on the condensed consolidated statements of financial condition at September 30, 2017, December 31, 2016 and September 30, 2016. The investment advisory agreement is subject to annual renewal by the fund's Board of Directors, which the Company expects to be renewed, and the Company does not expect to incur additional expense as a result, which is consistent with other investment advisory agreements entered into by the Company.  The advisory contract is next up for renewal in February 2018. On November 1, 2015, as a result of becoming the advisor to the Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. and the associated consideration paid, the Company maintains an identifiable intangible asset of $1.6 million within other assets on the condensed consolidated statement of financial condition at September 30, 2017, December 31, 2016 and September 30, 2016.  The advisory contracts for the Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. are both next up for renewal in August 2018. The Company assesses the recoverability of this intangible asset at least annually, or more often should events warrant. There were no indicators of impairment for the three months ended September 30, 2017 or September 30, 2016, and as such there was no impairment analysis performed or charge recorded.

J. Commitments and Contingencies

From time to time, the Company may be named in legal actions and proceedings. These actions may seek substantial or indeterminate compensatory as well as punitive damages or injunctive relief. The Company is also subject to governmental or regulatory examinations or investigations. The examinations or investigations could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief. For any such matters, the condensed consolidated financial statements include the necessary provisions for losses that the Company believes are probable and estimable. Furthermore, the Company evaluates whether there exist losses which may be reasonably possible and will, if material, make the necessary disclosures.  However, management believes such amounts, both those that are probable and those that are reasonably possible, are not material to the Company’s financial condition, operations or cash flows at September 30, 2017.

K. Subsequent Events

On September 30, 2017, GAMCO entered into a third deferred compensation agreement with Mr. Gabelli for the period of October 1, 2017 to December 31, 2017.  Mr. Gabelli’s variable cash compensation for that period will vest on April 1, 2019.  For GAAP accounting purposes, the compensation earned from October 1, 2017 to December 31, 2017 will be expensed ratably from October 1, 2017 to March 31, 2019.

On October 3, 2017, the Company paid an additional $20 million of principal relating to the AC 4% PIK Note, thereby reducing the amount outstanding to $50 million, all of which is due on November 30, 2020.

On November 7, 2017, the Board of Directors declared its regular quarterly dividend of $0.02 per share to all of its shareholders, payable on January 10, 2018 to shareholders of record on December 27, 2017.

From October 1, 2017 to November 7, 2017, the Company repurchased 31,100 shares at $29.11 per share.

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ITEM 2:  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (INCLUDING QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK)

Overview

GAMCO, through the Gabelli brand, well known for its Private Market Value (PMV) with a Catalyst^TM investment approach, is a widely-recognized provider of investment advisory services to open-end funds, closed-end funds, and institutional and private wealth management investors principally in the United States.  Through G.distributors, LLC (“G.distributors”), we provide open-end fund distribution.  We generally manage assets on a fully discretionary basis and invest in a variety of U.S. and international securities through various investment styles.  Our revenues are based primarily on the Company’s levels of assets under management and fees associated with our various investment products.

Our revenues are highly correlated to the level of assets under management and fees associated with our various investment products, rather than our own corporate assets.  Assets under management, which are directly influenced by the level and changes of the overall equity markets, can also fluctuate through acquisitions, the creation of new products, the addition of new accounts, or the loss of existing accounts.  Since various equity products have different fees, changes in our business mix may also affect revenues.  At times, the performance of our equity products may differ markedly from popular market indices, and this can also impact our revenues.  General stock market trends will have the greatest impact on our level of assets under management and hence, on revenues.

We conduct our investment advisory business principally through the following subsidiaries: GAMCO Asset Management Inc. (Institutional and Private Wealth Management) and Gabelli Funds, LLC (Funds).  The distribution of our open-end funds is conducted through G.distributors, our broker-dealer subsidiary.

Assets under management (“AUM”) were $43.1 billion as of September 30, 2017, an increase of $1.8 billion, or 4.3%, from June 30, 2017 of $41.3 billion and an increase of $3.5 billion, or 8.9% from the September 30, 2016 AUM of $39.6 billion.  The third quarter 2017 activity consisted of net cash outflows of $213 million, $1.8 billion of market appreciation and recurring distributions, net of reinvestments, from open-end and closed-end funds of $140 million.  Average total AUM was $42.3 billion in the 2017 quarter versus $39.9 billion in the prior year period, an increase of 6.0%.

In addition to management fees, we earn incentive fees for certain institutional client assets, certain assets attributable to preferred issues of our closed-end funds and our GDL Fund (NYSE: GDL).  As of September 30, 2017, assets under management with incentive based fees were $3.0 billion, $0.2 billion higher than the $2.8 billion on June 30, 2017 and $0.6 billion higher than the $2.4 billion on September 30, 2016. 

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The Company reported Assets Under Management as follows (in millions):

Table I: Fund Flows - 3rd Quarter 2017

								Fund
			Market					distributions,
	June 30,		appreciation/		Net cash			net of			September 30,
	2017		(depreciation)		flows			reinvestments			2017
Equities:
Open-end Funds	$	13,574	$	517	$	(305	)	$	(24	)	$	13,762
Closed-end Funds		7,359		249		176			(116	)		7,668
Institutional & PWM - direct		13,437		613		(157	)		-			13,893
Institutional & PWM - sub-advisory		5,048		368		(70	)		-			5,346
SICAV (a)		421		10		73			-			504
Total Equities		39,839		1,757		(283	)		(140	)		41,173
Fixed Income:
Money-Market Fund		1,813		4		73			-			1,890
Institutional & PWM		29		-		(3	)		-			26
Total Fixed Income		1,842		4		70			-			1,916
Total Assets Under Management	$	41,681	$	1,761	$	(213	)	$	(140	)	$	43,089

(a) Adjusted to include Merger Arbitrage of $371 million at June 30, 2017.

Table II: Fund Flows - Year to date September 2017

									Fund
			Market						distributions,
	December 31,		appreciation/		Net cash				net of			September 30,
	2016		(depreciation)		flows				reinvestments			2017
Equities:
Open-end Funds	$	13,462	$	1,354	$	(1,009	)		$	(45	)	$	13,762
Closed-end Funds		7,150		712		162				(356	)		7,668
Institutional & PWM - direct		13,441		1,523		(1,071	)			-			13,893
Institutional & PWM - sub-advisory		3,783		522		1,041		(b)		-			5,346
SICAV (a)		320		29		155				-			504
Total Equities		38,156		4,140		(722	)			(401	)		41,173
Fixed Income:
Money-Market Fund		1,767		9		114				-			1,890
Institutional & PWM		31		-		(5	)			-			26
Total Fixed Income		1,798		9		109				-			1,916
Total Assets Under Management	$	39,954	$	4,149	$	(613	)		$	(401	)	$	43,089

(a) Adjusted to include Merger Arbitrage of $270 million at December 31, 2016.

(b) Includes $1.2 billion from being approved as the sub-advisor on two sub-advisory entities as of February 27, 2017.

21

Table III: Assets Under Management by Quarter

							% Change From
	September 30,		June 30,		September 30,		June 30,			September 30,
	2017		2017		2016		2017			2016
Equities:
Open-end Funds	$	13,762	$	13,574	$	13,799		1.4	%		(0.3	%)
Closed-end Funds		7,669		7,359		7,178		4.2			6.8
Institutional & PWM - direct		13,893		13,437		13,245		3.4			4.9
Institutional & PWM - sub-advisory		5,346		5,048		3,542		5.9			50.9
SICAV (a)		504		50		42		908.0			1,100.0
Total Equities		41,174		39,468		37,806		4.3			8.9
Fixed Income:
Money-Market Fund		1,890		1,813		1,738		4.2			8.7
Institutional & PWM		26		29		37		(10.3	)		(29.7	)
Total Fixed Income		1,916		1,842		1,775		4.0			7.9
Total Assets Under Management	$	43,090	$	41,310	$	39,581		4.3	%		8.9	%

Institutional & PWM - direct includes $280 million, $300 million and $286 million of Money Market Fund AUM at September 30, 2017, June 30, 2017 and September 30, 2016, respectively.

(a) Adjusted to include Merger Arbitrage of $371 million and $225 million at June 30, 2017 and September 30, 2016, respectively.

22

DEFERRED COMPENSATION

As previously disclosed, the Company has deferred the cash compensation of the Chief Executive Officer relating to all of 2016 (“2016 DCCA”) and the first half of 2017 (“First Half 2017 DCCA”) to provide the Company with flexibility to pay down debt.  We have made substantial progress toward this objective, having reduced our debt since the November 2015 spin-off of AC, resulting in Standard & Poor’s recent revision of its outlook to stable from negative and reaffirmation of our debt rating of BBB-.  In furtherance of this strategic objective, we entered into a third DCCA agreement (“Fourth Quarter 2017 DCCA”) with our Chief Executive Officer on September 30, 2017 deferring his cash compensation for the fourth quarter of 2017 until April 2019 under terms that are similar to the prior two DCCAs.  This new Fourth Quarter 2017 DCCA had no effect on the third quarter results but will impact our results in future quarters as his fourth quarter 2017’s compensation expense is amortized over the DCCA vesting period.

Notwithstanding its ability to settle these agreements in stock, GAMCO currently intends to make cash payments to Mr. Gabelli on the respective vesting dates.  While the agreements did not change Mr. Gabelli’s compensation, GAAP reporting for his compensation did change due to the ratable vesting.

The DCCAs defer the Chief Executive Officer’s compensation expense by amortizing it over each DCCA’s respective vesting period.  The Chief Executive Officer is not entitled to receive the compensation until the end of the vesting period, so generally accepted accounting principles (“GAAP”) specify this treatment of the expense.  The 2016 DCCA is expensed ratably over 4 years, the First Half 2017 DCCA is expensed ratably over 18 months, and the Fourth Quarter DCCA will be expensed ratably over 18 months beginning October 1, 2017.

Because the GAAP reporting of the DCCAs granted to the CEO tracks vesting, compensation expense and management fee expense in the year of grant is lower than compensation expense and management fee expense in future periods to the extent that future periods contain the vesting of the prior year’s DCCA compensation on top of the normal compensation for the current year period which has not been deferred.  In 2016, the full amount of the compensation was deferred, and expense was recorded for the 25% vesting in that year.  In the first six months of 2017, the ratable vesting continued for the 2016 compensation, and the new First Half 2017 DCCA grant resulted in compensation for the first six months of 2017 being deferred and expense being recorded for 33% vesting in that period.  The CEO's third quarter compensation was not deferred so 100% of the CEO’s compensation for that period was recorded together with the ratable portions of the vestings of the 2016 DCCA and the First Half 2017 DCCA.  So there is a compounding effect in future periods when there are both current period compensation that has not been deferred and prior period compensation that is being ratably vested.

Accordingly, this vesting schedule resulted in a $19.1 million and a $26.8 million increase in compensation expense in the third quarter 2017 and first nine months of 2017, respectively, versus the comparable 2016 periods’ amounts as well as a $4.0 million and $6.4 million increase in management fee expense in the third quarter 2017 and first nine months 2017, respectively, as compared to the 2016 periods’ amounts.

The GAAP based balance sheets are also impacted; the compensation payable at September 30, 2017 only includes the vested portion of the compensation subject to the DCCAs.  At September 30, 2017, the amount of unrecognized compensation was $57.2 million.

The following tables show a reconciliation of our results for the third quarters and first nine months of 2017 and 2016, and our balance sheet at September 30, 2017 between the GAAP basis and a non-GAAP adjusted basis as if all of the 2016 DCCA and the First Half 2017 DCCA expense were recognized in 2016 and 2017, respectively, without regard to the vesting schedule.  We believe the non-GAAP financial measures below provide relevant and meaningful information to investors about our core operating results.  These measures have been established in order to increase transparency for the purpose of evaluating our core business, for comparing results with prior period results, and to enable more appropriate comparisons with industry peers.  However, non-GAAP financial measures should not be considered a substitute for financial measures calculated in accordance with U.S. GAAP and may be calculated differently by other companies.  The following schedules reconcile U.S. GAAP financial measures to non-GAAP measures for the three and nine months ended September 30, 2017 and 2016 as well as at September 30, 2017.

23

	Three Months Ended September 30, 2017
				Impact of
	Reported			First Half			Impact of
	GAAP			2017 DCCA			2016 DCCA			Non-GAAP
Revenues
Investment advisory and incentive fees	$	77,328		$	-		$	-		$	77,328
Distribution fees and other income		11,013			-			-			11,013
Total revenues		88,341			-			-			88,341
Expenses
Compensation		42,919			(4,816	)		(3,415	)		34,688
Management fee		4,935			(886	)		(688	)		3,361
Distribution costs		11,665			-			-			11,665
Other operating expenses		5,429			-			-			5,429
Total expenses		64,948			(5,702	)		(4,103	)		55,143
Operating income		23,393			5,702			4,103			33,198
Other income (expense)
Net gain (loss) from investments		2,841			-			-			2,841
Interest and dividend income		745			-			-			745
Interest expense		(2,688	)		-			-			(2,688	)
Shareholder-designated contribution		(3,857	)		-			-			(3,857	)
Total other expense, net		(2,959	)		-			-			(2,959	)
Income before income taxes		20,434			5,702			4,103			30,239
Income tax provision		3,834			2,167			1,559			7,560
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	16,600		$	3,535		$	2,544		$	22,679
Net income attributable to GAMCO Investors, Inc.'s shareholders
per share:
Basic	$	0.57		$	0.12		$	0.09		$	0.78
Diluted	$	0.55		$	0.11		$	0.08		$	0.75

	Nine Months Ended September 30, 2017
				Impact of
	Reported			First Half			Impact of
	GAAP			2017 DCCA			2016 DCCA			Non-GAAP
Revenues
Investment advisory and incentive fees	$	228,942		$	-		$	-		$	228,942
Distribution fees and other income		32,916			-			-			32,916
Total revenues		261,858			-			-			261,858
Expenses
Compensation		97,634			14,390			(9,174	)		102,850
Management fee		9,455			2,666			(2,172	)		9,949
Distribution costs		33,373			-			-			33,373
Other operating expenses		15,900			-			-			15,900
Total expenses		156,362			17,056			(11,346	)		162,072
Operating income		105,496			(17,056	)		11,346			99,786
Other income (expense)
Net gain (loss) from investments		2,867			-			-			2,867
Interest and dividend income		1,765			-			-			1,765
Interest expense		(8,269	)		-			-			(8,269	)
Shareholder-designated contribution		(3,857	)		-			-			(3,857	)
Total other expense, net		(7,494	)		-			-			(7,494	)
Income before income taxes		98,002			(17,056	)		11,346			92,292
Income tax provision		33,688			(6,594	)		4,350			31,444
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	64,314		$	(10,462	)	$	6,996		$	60,848
Net income attributable to GAMCO Investors, Inc.'s shareholders
per share:
Basic	$	2.22		$	(0.36	)	$	0.24		$	2.10
Diluted	$	2.14		$	(0.34	)	$	0.22		$	2.02

24

	Three Months Ended September 30, 2016
	Reported			Impact of
	GAAP			2016 DCCA			Non-GAAP
Revenues
Investment advisory and incentive fees	$	75,952		$	-		$	75,952
Distribution fees and other income		11,769			-			11,769
Total revenues		87,721			-			87,721
Expenses
Compensation		21,233			10,885			32,118
Management fee		1,163			2,400			3,563
Distribution costs		11,568			-			11,568
Other operating expenses		5,681			-			5,681
Total expenses		39,645			13,285			52,930
Operating income		48,076			(13,285	)		34,791
Other income (expense)
Net gain from investments		55			-			55
Interest and dividend income		371			-			371
Interest expense		(3,155	)		-			(3,155	)
Total other expense, net		(2,729	)		-			(2,729	)
Income before income taxes		45,347			(13,285	)		32,062
Income tax provision		14,486			(5,075	)		9,411
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	30,861		$	(8,210	)	$	22,651
Net income attributable to GAMCO Investors, Inc.'s shareholders
per share:
Basic	$	1.06		$	(0.28	)	$	0.78
Diluted	$	1.03		$	(0.27	)	$	0.76

	Nine Months Ended September 30, 2016
	Reported			Impact of
	GAAP			2016 DCCA			Non-GAAP
Revenues
Investment advisory and incentive fees	$	219,594		$	-		$	219,594
Distribution fees and other income		33,456			-			33,456
Total revenues		253,050			-			253,050
Expenses
Compensation		62,130			32,016			94,146
Management fee		3,376			6,926			10,302
Distribution costs		32,786			-			32,786
Other operating expenses		14,993			-			14,993
Total expenses		113,285			38,942			152,227
Operating income		139,765			(38,942	)		100,823
Other income (expense)
Net gain from investments		518			-			518
Interest and dividend income		1,104			-			1,104
Interest expense		(9,729	)		-			(9,729	)
Total other expense, net		(8,107	)		-			(8,107	)
Income before income taxes		131,658			(38,942	)		92,716
Income tax provision		47,229			(14,811	)		32,418
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	84,429		$	(24,131	)	$	60,298
Net income attributable to GAMCO Investors, Inc.'s shareholders
per share:
Basic	$	2.89		$	(0.83	)	$	2.06
Diluted	$	2.85		$	(0.81	)	$	2.04

25

	September 30, 2017
							Impact of
	Reported			Impact of			First Half
	GAAP			2016 DCCA			2017 DCCA			Non-GAAP
ASSETS
Cash and cash equivalents	$	61,097		$	-		$	-		$	61,097
Investments in securities		101,425			-			-			101,425
Receivable from brokers		1,342			-			-			1,342
Investment advisory fees receivable		25,549			-			-			25,549
Receivable from affiliates		4,784			-			-			4,784
Income tax receivable		24,941			14,724			7,017			46,682
Other assets		11,888			-			-			11,888
Total assets	$	231,026		$	14,724		$	7,017		$	252,767
LIABILITIES AND EQUITY
Payable to brokers		13,311			-			-			13,311
Income taxes payable and deferred tax liabilities		3,215			-			-			3,215
Capital lease obligation		4,976			-			-			4,976
Compensation payable		82,896			38,748			18,467			140,111
Payable to affiliates		2,981			-			-			2,981
Accrued expenses and other liabilities		24,134			-			-			24,134
Sub-total		131,513			38,748			18,467			188,728
4.5% Convertible note (due August 15, 2021)		109,862			-			-			109,862
AC 4% PIK Note (due November 30, 2020)		70,000			-			-			70,000
5.875% Senior notes (due June 1, 2021)		24,138			-			-			24,138
Total liabilities		335,513			38,748			18,467			392,728
Equity
GAMCO Investors, Inc. stockholders' equity
Class A Common Stock		14			-			-			14
Class B Common Stock		19			-			-			19
Additional paid-in capital		11,084			-			-			11,084
Retained earnings (deficit)		143,026			(24,024	)		(11,450	)		107,552
Accumulated other comprehensive income		12,365			-			-			12,365
Treasury stock, at cost		(270,995	)		-			-			(270,995	)
Total GAMCO Investors, Inc. stockholders' equity (deficit)		(104,487	)		(24,024	)		(11,450	)		(139,961	)
Total liabilities and equity (deficit)	$	231,026		$	14,724		$	7,017		$	252,767

26

The following discussion should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and the notes thereto included in Item 1 to this report.

RESULTS OF OPERATIONS

Three Months Ended September 30, 2017 Compared To Three Months Ended September 30, 2016

(Unaudited; in thousands, except per share data)
	2017			2016
Revenues
Investment advisory and incentive fees	$	77,328		$	75,952
Distribution fees and other income		11,013			11,769
Total revenues		88,341			87,721
Expenses
Compensation		42,919			21,233
Management fee		4,935			1,163
Distribution costs		11,665			11,568
Other operating expenses		5,429			5,681
Total expenses		64,948			39,645
Operating income		23,393			48,076
Other income (expense)
Net gain from trading securities		2,841			55
Interest and dividend income		745			371
Interest expense		(2,688	)		(3,155	)
Shareholder-designated contribution		(3,857	)		-
Total other expense, net		(2,959	)		(2,729	)
Income before income taxes		20,434			45,347
Income tax provision		3,834			14,486
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	16,600		$	30,861
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
Basic	$	0.57		$	1.06
Diluted	$	0.55		$	1.03

Overview

Net income for the quarter was $16.6 million, or $0.55 per fully diluted share, versus $30.9 million, or $1.03 per fully diluted share, in the prior year’s quarter.  There were several distinct items in both quarters that impacted results.  During the third quarter of 2017, we recorded an additional $1.7 million of stock compensation expense, net of tax, $0.6 million of launch costs, net of tax, for a closed-end fund, $2.2 million of charitable contributions, net of tax, and an additional $6.1 million of expense, net of tax, for the 2016 DCCA and the First Half 2017 DCCA.  The 2017 quarter also included the recognition of $2.6 million in gains on securities donated, net of tax, and a $3.4 million income tax accrual reversal.  The 2016 third quarter included $8.2 million less in expense, net of tax, relating to the 2016 DCCA, an income tax reversal of $2.6 million and $0.3 million of expense, net of tax, from the launch of a closed-end fund.  Absent these distinct items, net income for 2017 was $21.2 million versus $20.4 million in 2016.

Revenues

Investment advisory and incentive fees for the third quarter 2017 were $77.3 million, 1.7% higher than the 2016 comparative figure of $76.0 million.  Open-end fund revenues increased by 0.6% to $33.8 million from $33.6 million in the third quarter of 2016.  Our closed-end fund revenues increased 5.2% to $16.2 million in the third quarter 2017 from $15.4 million in 2016 due to a 5.3% increase in non-performance fee based average AUM.  Institutional and private wealth management account revenues, excluding incentive fees, which are generally based on beginning of quarter AUM, fell $0.2 million to $26.0 million from $26.2 million in the third quarter of 2016.  There were no incentive fees earned during the third quarters of 2017 or 2016.  We recognize incentive fees only when the earning period for them is complete.  Revenues relating to the SICAV were $1.3 million in the third quarter of 2017 versus $0.8 million in the third quarter of 2016.

27

Open-end fund distribution fees and other income were $11.0 million for the third quarter 2017, a decrease of $0.8 million or 6.8% from $11.8 million in the prior year period, primarily due to lower average AUM in open-end equity funds that generate distribution fees.

Expenses

Compensation costs, which are largely variable, were $42.9 million or 102.4% higher than prior year compensation costs of $21.2 million.  This is primarily due to the accounting for the vesting of the DCCAs.

Because the GAAP reporting of the DCCAs granted to the CEO tracks vesting, compensation expense in the year of grant is lower than compensation expense in future periods to the extent that future periods contain the vesting of the prior year’s DCCA compensation on top of the normal compensation for the current year period which has not been deferred.  In 2016, the full amount of the compensation was deferred, and expense was recorded for the 25% vesting in that year.  In the first half of 2017, the ratable vesting continued for the 2016 compensation, and the new First Half 2017 DCCA grant resulted in compensation for the first six months of 2017 being deferred and expense being recorded for 33% vesting in that period.  In the third quarter 2017, there was no DCCA so 100% of the CEO’s compensation for that period was recorded together with the ratable portions of the vestings of the 2016 DCCA and the First Half 2017 DCCA.  So there is a compounding effect in future periods when there are both current period compensation that has not been deferred and prior period compensation that is being ratably vested.  Accordingly, this vesting schedule resulted in a $19.1 million increase in compensation in third quarter 2017 versus third quarter 2016.

The remainder of the quarter over quarter increase was comprised of a $1.1 million increase in variable compensation related to the increased levels of AUM, a $0.6 million increase in fixed compensation, and a $0.9 million net increase in stock compensation expense, inclusive of the $1.8 million incurred in the third quarter of 2017 for the acceleration of the GBL RSAs.

Management fee expense, which is wholly variable and based on pretax income, increased to $4.9 million in the third quarter of 2017 from $1.2 million in the 2016 period.  Once again, this increase is primarily due to the accounting for the vesting of the DCCAs.  The DCCAs affected management fee expense, which is part of the CEO’s DCCAs, in a similar fashion to the compensation expense with the vesting schedule resulting in a $4.0 million increase in management fee expense in the third quarter 2017 as compared with the third quarter 2016.  The remaining $0.3 decline in the year-over-year comparison is due to the decline in pre-tax income on which the management fee is based.

Distribution costs were $11.7 million, an increase of $0.1 million or 0.9% from $11.6 million in the prior year’s period.

Other operating expenses were $5.4 million in the third quarter of 2017, a decrease of $0.3 million, or 5.3%, from $5.7 million in the third quarter of 2016. The research fee paid to G.research increased to $0.8 million in the third quarter of 2017 from $0.4 million in the prior year quarter. Legal expense was lower by $0.7 million in the 2017 period.

Operating income for the third quarter of 2017 was $23.4 million, a decrease of $24.7 million, or 51.4%, from the $48.1 million in the third quarter of 2016.  Operating income, as a percentage of revenues, was 26.5% in the 2017 quarter as compared to 54.8% in the 2016 quarter.

Other expense

Total other expense, net was an expense of $3.0 million for the third quarter 2017 versus an expense of $2.7 million in the prior year’s quarter.  Net gains from trading securities were $2.8 million in the third quarter of 2017 versus gains of $55,000 in the third quarter of 2016.  Interest and dividend income increased to $0.7 million in the third quarter 2017 from $0.4 million in the third quarter 2016.  Interest expense decreased $0.5 million to $2.7 million in the third quarter of 2017 from $3.2 million in the third quarter of 2016 as gross debt at September 30, 2017 was $29.9 million lower as debt fell from $233.9 million at September 30, 2016 to $204.0 million at September 30, 2017.

The effective tax rates (“ETR”) for the three months ended September 30, 2017 and September 30, 2016 were 18.8% and 31.9%, respectively.  The ETR for the three months ended September 30, 2017 was higher by 3.6% than it would have otherwise been as a result of a reduction to previously recorded stock compensation tax benefits. The current year quarter’s ETR benefited from the reversal of certain tax accruals totaling $3.4 million as well as a $1.0 million tax benefit related to charitable contributions while the prior year quarter benefited from a reversal of $2.6 million in tax accruals due to the conclusion of a state audit.

28

Nine Months Ended September 30, 2017 Compared To Nine Months Ended September 30, 2016

(Unaudited; in thousands, except per share data)
	2017			2016
Revenues
Investment advisory and incentive fees	$	228,942		$	219,594
Distribution fees and other income		32,916			33,456
Total revenues		261,858			253,050
Expenses
Compensation		97,634			62,130
Management fee		9,455			3,376
Distribution costs		33,373			32,786
Other operating expenses		15,900			14,993
Total expenses		156,362			113,285
Operating income		105,496			139,765
Other income (expense)
Net gain from trading securities		2,867			518
Interest and dividend income		1,765			1,104
Interest expense		(8,269	)		(9,729	)
Shareholder-designated contribution		(3,857	)		-
Total other expense, net		(7,494	)		(8,107	)
Income before income taxes		98,002			131,658
Income tax provision		33,688			47,229
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	64,314		$	84,429
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
Basic	$	2.22		$	2.89
Diluted	$	2.14		$	2.85

Overview

Net income for the first nine months was $64.3 million, or $2.14 per fully diluted share, versus $84.4 million, or $2.85 per fully diluted share, in the prior year’s first nine months.  There were several distinct items in both periods that impacted results.  During 2017, we recorded an additional $4.0 million of stock compensation expense, net of tax, $0.6 million of launch costs, net of tax, for a closed-end fund, and $2.2 million of charitable contributions, net of tax.  The 2017 quarter also included a $3.4 million reduction of expense, net of tax, for the 2016 DCCA and the First Half 2017 DCCA, the recognition of $2.6 million in gains on securities donated, net of tax, and a $3.4 million income tax accrual reversal.  The 2016 third quarter included $24.1 million less in expense, net of tax benefit, relating to the 2016 DCCA, a tax reversal of $2.6 million and $0.3 million of expense, net of tax benefit, from the launch of a closed-end fund.  Absent these distinct items, net income for 2017 was $61.7 million versus $58.0 million in 2016.

Revenues

Investment advisory and incentive fees for the nine months ended September 2017 were $228.9 million, 4.2% higher than the 2016 comparative figure of $219.6 million.  Open-end fund revenues increased by 2.2% to $99.7 million from $97.6 million in the first nine months of 2017.  Our closed-end fund revenues increased 11.0% to $47.4 million in the nine months ended September 2017 from $42.7 million in 2016 due to a 7.4% increase in non-performance fee based average AUM.  Institutional and private wealth management account revenues, excluding incentive fees, which are generally based on beginning of quarter AUM, rose $1.3 million to $78.6 million from $77.3 million in the first nine months of 2016.  There were no incentive fees earned during the first nine months of 2017 or 2016.  We recognize incentive fees only when the earning period for them is complete.  Revenues relating to the SICAV were $3.2 million in the nine months ended September 2017 versus $1.9 million in the nine months ended September 2016.

Open-end fund distribution fees and other income were $32.9 million for the first nine months of 2017, a decrease of $0.6 million or 1.8% from $33.5 million in the prior year period, primarily due to lower average AUM in open-end equity funds that generate distribution fees.

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Expenses

Compensation costs, which are largely variable, were $97.6 million or 57.2% higher than prior year compensation costs of $62.1 million.  This is primarily due to the accounting for the vesting of the DCCAs.

Because the GAAP reporting of the DCCAs granted to the CEO tracks vesting, compensation expense in the year of grant is lower than compensation expense in future periods to the extent that future periods contain the vesting of the prior year’s DCCA compensation on top of the normal compensation for the current year period which has not been deferred.  In 2016, the full amount of the compensation was deferred, and expense was recorded for the 25% vesting in that year.  In the first six months of 2017, the ratable vesting continued for the 2016 compensation, and the new First Half 2017 DCCA grant resulted in compensation for the first six months of 2017 being deferred and expense being recorded for 33% vesting in that period.  In the third quarter 2017, there was no DCCA, so 100% of the CEO’s compensation for that period was recorded together with the ratable portions of the vestings of the 2016 DCCA and the First Half 2017 DCCA.  So there is a compounding effect in future periods when there are both current period compensation that has not been deferred and prior period compensation that is being ratably vested.  Accordingly, this vesting schedule resulted in a $26.8 million increase in compensation expense in the first nine months of 2017 versus the comparable 2016 period.

The remainder of the period over period increase was comprised of a $4.2 million increase in variable compensation related to the increased levels of AUM, a $0.6 million increase in fixed compensation, and a $3.9 million net increase in stock compensation expense, inclusive of the $5.5 million incurred in 2017 for the acceleration of the GBL and AC RSAs.

Management fee expense, which is wholly variable and based on pretax income, increased to $9.5 million in the nine months ended September 30, 2017 from $3.4 million in the 2016 period.  Once again, this increase is primarily due to the accounting for the vesting of the DCCAs.  The DCCAs affected management fee expense, which is part of the CEO’s DCCAs, in a similar fashion to the compensation expense with the vesting schedule resulting in a $6.4 million increase in management fee expense in the first nine months of 2017 as compared with the comparable period in 2016.  The remaining $0.3 decline in the year-over-year comparison is due to the decline in pre-tax income on which the management fee is based.

Distribution costs were $33.4 million, an increase of $0.6 million or 1.8% from $32.8 million in the prior year’s period.

Other operating expenses were $15.9 million in the first nine months of 2017, an increase of $0.9 million, or 6%, from $15.0 million in the first nine months of 2016. The research fee paid to G.research increased to $2.3 million in the nine months ending September 30, 2017 from $1.1 million in the prior year period.

Operating income for the first nine months of 2017 was $105.5 million, a decrease of $34.3 million, or 24.5%, from the $139.8 million in the first nine months of 2016.  Operating income, as a percentage of revenues, was 40.3% in the 2017 period as compared to 55.2% in the 2016 period.

Other expense

Total other expense, net was an expense of $7.5 million for the nine months ended September 30, 2017 versus an expense of $8.1 million in the prior year’s period.  Net gains from trading securities increased to $2.9 million in the first nine months of 2017 from $0.5 million in the prior year period.  Interest and dividend income increased to $1.8 million in the first nine months of 2017 from $1.1 million in the first nine months of 2016.  Interest expense decreased $1.4 million to $8.3 million in the first nine months of 2017 from $9.7 million in the first nine months of 2016 as gross debt at September 30, 2017 was $204.0 million down from the $233.9 million at September 30, 2016.

The ETR for the nine months ended September 30, 2017 and September 30, 2016 were 34.4% and 35.9%, respectively.  The ETR for the nine months ended September 30, 2017 was higher by 1.0% than it would have otherwise been as a result of a reduction to previously recorded stock compensation tax benefits. The current year quarter’s ETR benefited from the reversal of certain tax accruals totaling $3.6 million as well as a $1.0 million tax benefit related to charitable contributions while the prior year quarter benefited from a reversal of $2.6 million in tax accruals due to the conclusion of a state audit.

30

LIQUIDITY AND CAPITAL RESOURCES

Our principal assets are highly liquid in nature and consist of cash and cash equivalents, short-term investments and securities held for investment purposes.  Cash and cash equivalents are comprised primarily of 100% U.S. Treasury money market funds managed by GAMCO.

Summary cash flow data is as follows:

	Nine months ended
	September 30,
	2017			2016
Cash flows provided by / (used in) operations :	(in thousands)
Operating activities	$	65,229		$	105,212
Investing activities		(3,611	)		185
Financing activities		(40,318	)		(85,292	)
Increase in cash and cash equivalents from operations		21,300			20,105
Effect of exchange rates on cash and cash equivalents		(15	)		28
Net increase		21,285			20,133
Cash and cash equivalents at beginning of period		39,812			13,719
Cash and cash equivalents at end of period	$	61,097		$	33,852

Cash and liquidity requirements have historically been met through cash generated by operating income and our borrowing capacity.  We filed a registration statement with the SEC in 2015 which, among other things, provides us opportunistic flexibility to sell any combination of senior and subordinate debt securities, convertible debt securities, equity securities (including common and preferred stock), and other securities up to a total amount of $500 million.  The shelf is available through April 2018, at which time it may be renewed.

At September 30, 2017, we had total unrestricted cash and cash equivalents of $61.0 million, an increase of $21.2 million from December 31, 2016 primarily due to the Company’s operating activities described below.  We also held $0.1 million of cash equivalents and $59.9 million of investments in securities in an escrow account for the benefit of the Convertible Note holder.  Total debt outstanding at September 30, 2017 was $204 million, consisting of $70 million of a 4% PIK Note due November 30, 2020, $110 million of a 4.5% convertible note due August 15, 2021, and $24.2 million of 5.875% senior notes due 2021.  It is anticipated that the majority of our free cash flow will go towards servicing our debt and deferred compensation payable for the next few years.

For the nine months ended September 30, 2017, cash provided by operating activities was $65.2 million, a decrease of $40.0 million from cash provided in the prior year period of $105.2 million.  Cash was provided through an increase in compensation payable of $33.5 million, a decrease in investment advisory fees receivable of $13.7 million, an increase in income taxes payable and deferred tax liabilities of $9.4 million, an increase of $3.9 million in stock based compensation expense, an increase in payable to brokers of $3.1 million, an increase in payable to affiliates of $1.6 million and $1.7 million from other sources.  Reducing cash was an increase in investments in trade securities of $60.2 million, a decrease in net income of $20.1 million, an increase in income tax receivable and deferred tax assets of $11.7 million, an increase in deferred income taxes of $5.3 million, a decrease to accrued expenses and other liabilities of $8.0 million and an increase in receivable from brokers of $1.6 million.  Cash used in investing activities was $3.6 million.  Cash used in financing activities in the first nine months of 2017 was $40.3 million, including $8.6 million paid for the purchase of treasury stock, and $1.7 million paid in dividends and $30.0 million for the partial repayment for the 4% PIK Note.

For the nine months ended September 30, 2016, cash provided by operating activities was $105.2 million. Cash provided by investing activities, related to proceeds from sales of available for sale securities was $0.2 million in the first nine months of 2016.  Cash used in financing activities in the first nine months of 2016 was $85.3 million.

Based upon our current level of operations and anticipated growth, we expect that our current cash balances plus cash flows from operating activities and our borrowing capacity will be sufficient to finance our working capital needs for the foreseeable future.  We have no material commitments for capital expenditures.

We have one broker-dealer, G.distributors, which is subject to certain net capital requirements.  G.distributors computes it net capital under the alternative method permitted, which requires minimum net capital of the greater of $250,000 or 2% of the aggregate debit items in the reserve formula for those broker-dealers subject to Rule 15c3-3 promulgated under the Securities Exchange Act of 1934.  The requirement was $250,000 for the broker-dealer at September 30, 2017.  At September 30, 2017, G.distributors had net capital, as defined, of approximately $3.8 million, exceeding the regulatory requirement by approximately $3.5 million.  Net capital requirements for our affiliated broker-dealer may increase in accordance with rules and regulations to the extent they engage in other business activities.

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Market Risk

Our primary market risk exposure is to changes in equity prices and interest rates.  Since approximately 96% of our AUM are equities, our financial results are subject to equity market risk as revenues from our investment management services are sensitive to stock market dynamics.  In addition, returns from our proprietary investment portfolio are exposed to interest rate and equity market risk.

The Company’s Chief Investment Officer oversees the proprietary investment portfolios and allocations of proprietary capital among the various strategies.  The Chief Investment Officer and the Board of Directors review the proprietary investment portfolios throughout the year.  Additionally, the Company monitors its proprietary investment portfolios to ensure that they are in compliance with the Company’s guidelines.

Equity Price Risk

The Company earns substantially all of its revenue as advisory and distribution fees from affiliated open-end and closed-end funds and Institutional and Private Wealth Management assets.  Such fees represent a percentage of AUM, and the majority of these assets are in equity investments.  Accordingly, since revenues are proportionate to the value of those investments, a substantial increase or decrease in equity markets overall will have a corresponding effect on the Company's revenues.

With respect to our proprietary investment activities, investments in securities of $101.4 million, $37.3 million and $32.9 million at September 30, 2017, December 31, 2016 and September 30, 2016, respectively, included investments in common stocks of $41.3 million, $37.2 million and $32.9 million, respectively, and investments in closed-end funds of $0.1 million, $0.1 million and $0, respectively.  Of the $41.3 million, $37.2 million and $32.9 million, invested in common stocks at September 30, 2017, December 31, 2016 and September 30, 2016, respectively, $41.3 million, $37.1 million and $32.9 million, respectively, was related to our investment in Westwood Holdings Group Inc.  Securities sold, not yet purchased are financial instruments purchased under agreements to resell and financial instruments sold under agreement to repurchase.  These financial instruments are stated at fair value and are subject to market risks resulting from changes in price and volatility.  At September 30, 2017, December 31, 2016 and September 30, 2016, there were no securities sold, not yet purchased.

The following table provides a sensitivity analysis for our investments in equity securities as of September 30, 2017 and December 31, 2016.  The sensitivity analysis assumes a 10% increase or decrease in the value of these investments (in thousands):

				Fair Value			Fair Value
				assuming			assuming
				10% decrease in			10% increase in
(unaudited)	Fair Value			equity prices			equity prices
At September 30, 2017:
Equity price sensitive investments, at fair value		$	101,425		$	91,282		$	111,567
At December 31, 2016:
Equity price sensitive investments, at fair value		$	37,285		$	33,557		$	41,014

Interest Rate Risk

Our exposure to interest rate risk results, principally, from our investment of excess cash in a sponsored money market fund that holds U.S. Government securities.  These investments are primarily short term in nature, and the carrying value of these investments generally approximates fair value.  Based on September 30, 2017, cash and cash equivalent balance of $61.1 million, a 1% increase in interest rates would increase our interest income by $0.6 million annually.  Given that our current return on these cash equivalent investments in this low interest rate environment is approximately 0.98% annually, an analysis of a 1% decrease is not meaningful.

Critical Accounting Policies and Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods.  Actual results could differ significantly from those estimates.  See Note A and the Company’s Critical Accounting Policies in Management’s Discussion and Analysis of Financial Condition and Results of Operations in GAMCO’s 2016 Annual Report on Form 10-K filed with the SEC on March 7, 2017 for details on Critical Accounting Policies.

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Item 3.  Quantitative and Qualitative Disclosures About Market Risk

In the normal course of its business, GAMCO is exposed to risk of loss due to fluctuations in the securities market and general economy. Management is responsible for identifying, assessing and managing market and other risks. 

Our exposure to pricing risk in equity securities is directly related to our role as financial intermediary and advisor for AUM in our affiliated open-end and closed-end funds, institutional and private wealth management accounts, and investment partnerships as well as our proprietary investment and trading activities.  At September 30, 2017, we had equity investments of $101.4 million.  We may alter our investment holdings from time to time in response to changes in market risks and other factors considered appropriate by management.  The equity investment portfolio is at fair value and will move in line with the equity markets.  The trading portfolio changes are recorded as net gain from investments in the condensed consolidated statements of income while the available for sale portfolio changes are recorded in accumulated other comprehensive income in the condensed consolidated statements of financial condition.

Item 4.  Controls and Procedures

We evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2017.  Disclosure controls and procedures as defined under the Exchange Act Rule 13a-15(e), are designed to ensure that the information we are required to disclose in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time period specified in SEC rules and regulations.  Disclosure controls and procedures include, without limitation, controls and procedures accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Co-Chief Accounting Officers (“CAOs”), to allow timely decisions regarding required disclosure.  Our CEO and CAOs participated in this evaluation and concluded that, as of the date of September 30, 2017, our disclosure controls and procedures were effective.

There have been no changes in our internal control over financial reporting as defined by Rule 13a-15(f) that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Forward-Looking Information

Our disclosure and analysis in this report contain some forward-looking statements.  Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results.  Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, there can be no assurance that our actual results will not differ materially from what we expect or believe. Some of the factors that could cause our actual results to differ from our expectations or beliefs include, without limitation: the adverse effect from a decline in the securities markets; a decline in the performance of our products; a general downturn in the economy; changes in government policy or regulation; changes in our ability to attract or retain key employees; and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. We also direct your attention to any more specific discussions of risk contained in our Form 10-Q and other public filings.  We are providing these statements as permitted by the Private Litigation Reform Act of 1995. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations or if we receive any additional information relating to the subject matters of our forward-looking statements.

Part II:  Other Information

Item 1. Legal Proceedings

From time to time, the Company may be named in legal actions and proceedings.  These actions may seek substantial or indeterminate compensatory as well as punitive damages or injunctive relief.  The Company is also subject to governmental or regulatory examinations or investigations.  The examinations or investigations could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief.  For any such matters, the condensed consolidated financial statements include the necessary provisions for losses that the Company believes are probable and estimable.  Furthermore, the Company evaluates whether there exist losses which may be reasonably possible and will, if material, make the necessary disclosures.  However, management believes such amounts, both those that are probable and those that are reasonably possible, are not material to the Company’s financial condition, operations or cash flows at September 30, 2017.

33

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information with respect to the repurchase of Class A Common Stock of GAMCO during the three months ended September 30, 2017:

						(c) Total Number of		(d) Maximum
	(a) Total		(b) Average			Shares Repurchased as		Number of Shares
	Number of		Price Paid Per			Part of Publicly		That May Yet Be
	Shares		Share, net of			Announced Plans		Purchased Under
Period	Repurchased		Commissions			or Programs		the Plans or Programs
7/01/17 - 7/31/17		-		$	-		-		574,648
8/01/17 - 8/31/17		113,121			29.53		113,121		886,879
9/01/17 - 9/30/17		18,359			28.74		18,359		868,520
Totals		131,480		$	29.42		131,480

In August 2017, the Board of Directors increased the buyback authorization by 425,352 shares of GBL Class A stock.  Our stock repurchase program is not subject to an expiration date.

Item 6.   (a) Exhibits

10.20 Restricted Stock Unit Agreement, dated September 30, 2017, by and between GAMCO Investors, Inc. and Mario J. Gabelli. (Incorporated by reference to Exhibit 99.1 to the Company’s Report on Form 8-K dated September 30, 2017 filed with the Securities and Exchange Commission on October 5, 2017).

31.1 Certification of CEO pursuant to Rule 13a-14(a).

31.2	Certification of co-CAO pursuant to Rule 13a-14(a).
31.3	Certification of co-CAO pursuant to Rule 13a-14(a).

32.1 Certification of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2 Certification of co-CAOs pursuant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

GAMCO INVESTORS, INC.

(Registrant)

By: /s/ Kieran Caterina	By: /s/ Diane M. LaPointe
Name: Kieran Caterina	Name: Diane M. LaPointe
Title: Co-Chief Accounting Officer	Title: Co-Chief Accounting Officer
Date: November 7, 2017	Date: November 7, 2017

35

EX-31.1

Exhibit 31.1

Certifications

I, Mario J. Gabelli, certify that:

1. I have reviewed this report on Form 10-Q of GAMCO Investors, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Mario J. Gabelli
	Mario J. Gabelli
	Chief Executive Officer
Date:	November 7, 2017

EX-31.2

Exhibit 31.2

Certifications

I, Kieran Caterina, certify that:

1. I have reviewed this report on Form 10-Q of GAMCO Investors, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Kieran Caterina
	Kieran Caterina
	co-Chief Accounting Officer
Date:	November 7, 2017

EX-31.3

Exhibit 31.3

Certifications

I, Diane M. LaPointe, certify that:

1. I have reviewed this report on Form 10-Q of GAMCO Investors, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Diane M. LaPointe
	Diane M. LaPointe
	Co-Chief Accounting Officer
Date:	November 7, 2017

EX-32.1

Exhibit 32.1

Certification of CEO Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of GAMCO Investors, Inc. (the “Company”) for the quarterly period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Mario J. Gabelli, as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1)           The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)           The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/       Mario J. Gabelli

Name: Mario J. Gabelli

Title:   Chief Executive Officer

Date:   November 7, 2017

This certification accompanies the Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

EX-32.2

Exhibit 32.2

Certification of co-CAOs Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of GAMCO Investors, Inc. (the “Company”) for the quarterly period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Kieran Caterina and Diane M. LaPointe, as Co-Chief Accounting Officers of the Company, hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of their knowledge:

(1)           The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)           The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/       Kieran Caterina		/s/       Diane M. LaPointe
Name:	Kieran Caterina	Name:	Diane M. LaPointe
Title:	Co-Chief Accounting Officer	Title:	Co-Chief Accounting Officer
Date:	November 7, 2017	Date:	November 7, 2017

This certification accompanies the Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Entity Information [Line Items]
Entity Registrant Name	GAMCO INVESTORS, INC. ET AL
Entity Central Index Key	0001060349
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Class A [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		10,089,844
Class B [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		19,062,168

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Investment advisory and incentive fees	$ 77,328	$ 75,952	$ 228,942	$ 219,594
Distribution fees and other income	11,013	11,769	32,916	33,456
Total revenues	88,341	87,721	261,858	253,050
Expenses
Compensation	42,919	21,233	97,634	62,130
Management fee	4,935	1,163	9,455	3,376
Distribution costs	11,665	11,568	33,373	32,786
Other operating expenses	5,429	5,681	15,900	14,993
Total expenses	64,948	39,645	156,362	113,285
Operating income	23,393	48,076	105,496	139,765
Other income (expense)
Net gain (loss) from investments	2,841	55	2,867	518
Interest and dividend income	745	371	1,765	1,104
Interest expense	(2,688)	(3,155)	(8,269)	(9,729)
Shareholder-designated contributions	(3,857)	0	(3,857)	0
Total other expense, net	(2,959)	(2,729)	(7,494)	(8,107)
Income before income taxes	20,434	45,347	98,002	131,658
Income tax provision	3,834	14,486	33,688	47,229
Income from continuing operations			64,314	84,429
Net income attributable to GAMCO Investors, Inc.'s shareholders	$ 16,600	$ 30,861	$ 64,314	$ 84,429
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
Basic (in dollars per share)	$ 0.57	$ 1.06	$ 2.22	$ 2.89
Diluted (in dollars per share)	$ 0.55	$ 1.03	$ 2.14	$ 2.85
Weighted average shares outstanding:
Basic (in shares)	28,926	29,185	28,930	29,222
Diluted (in shares)	31,173	30,406	31,144	29,811
Dividends declared: (in dollars per share)	$ 0.02	$ 0.02	$ 0.06	$ 0.06

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016		Sep. 30, 2017	Sep. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED [Abstract]
Net income	$ 16,600		$ 30,861		$ 64,314	$ 84,429
Other comprehensive gain/(loss), net of tax:
Foreign currency translation	28		(28)		75	(121)
Net unrealized gain/(loss) on securities available for sale	2,321	[1]	506	[1]	1,019	323
Other comprehensive gain/(loss)	2,349		478		1,094	202
Comprehensive income attributable to GAMCO Investors, Inc.	$ 18,949		$ 31,339		$ 65,408	$ 84,631

[1] Net of income tax expense of $1,363, $297, $599 and $190, respectively.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED [Abstract]
Net unrealized gain/(loss) on securities available for sale, net of income tax expense	$ 1,363	$ 297	$ 599	$ 190

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION UNAUDITED - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
ASSETS
Cash and cash equivalents, including restricted cash of $95, $0 and $0, respectively	$ 61,097	$ 39,812	$ 33,852
Investments in securities, including restricted investments of securities of $59,954, $0 and $0, respectively	101,425	37,285	32,889
Receivable from brokers	1,342	453	344
Investment advisory fees receivable	25,549	43,736	26,606
Receivable from affiliates	4,784	5,960	4,745
Income tax receivable and deferred tax asset	24,941	9,349	10,634
Other assets	11,888	12,634	12,198
Total assets	231,026	149,229	121,268
LIABILITIES AND EQUITY
Payable to brokers	13,311	66	10,203
Income taxes payable and deferred tax liabilities	3,215	3,815	164
Capital lease obligation	4,976	5,066	5,094
Compensation payable	82,896	42,384	31,469
Payable to affiliates	2,981	1,412	7,679
Accrued expenses and other liabilities	24,134	29,178	31,801
Sub-total	131,513	81,921	86,410
4.5% Convertible note (net of issuance costs of $138, $165 and $174, respectively) (due August 15, 2021) (Note F)	109,862	109,835	109,826
AC 4% PIK Note (due November 30, 2020) (Note F)	70,000	100,000	100,000
5.875% Senior notes (net of issuance costs of $87, $105 and $110, respectively) (due June 1, 2021) (Note F)	24,138	24,120	24,115
Total liabilities	335,513	315,876	320,351
Commitments and contingencies (Note I)
GAMCO Investors, Inc. stockholders' equity
Preferred stock, $.001 par value; 10,000,000 shares authorized; none issued and outstanding	0	0	0
Additional paid-in capital	11,084	3,903	3,135
Retained earnings	143,026	80,515	48,412
Accumulated other comprehensive income	12,365	11,271	9,317
Treasury stock, at cost (5,397,781, 5,107,481 and 5,025,640 shares, respectively)	(270,995)	(262,369)	(259,980)
Total GAMCO Investors, Inc. stockholders' equity (deficit)	(104,487)	(166,647)	(199,083)
Total liabilities and equity (deficit)	231,026	149,229	121,268
Class A [Member]
GAMCO Investors, Inc. stockholders' equity
Common stock	14	14	14
Class B [Member]
GAMCO Investors, Inc. stockholders' equity
Common stock	$ 19	$ 19	$ 19

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION UNAUDITED (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
ASSETS
Restricted cash	$ 95	$ 0	$ 0
Restricted investments in securities	$ 59,954	$ 0	$ 0
GAMCO Investors, Inc. stockholders equity
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0	0
Preferred stock, shares outstanding (in shares)	0	0	0
Common Stock, outstanding (in shares)	29,200,000	29,500,000	29,500,000
Treasury stock, shares (in shares)	5,397,781	5,107,481	5,025,640
Class A [Member]
GAMCO Investors, Inc. stockholders equity
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Common Stock, shares authorized (in shares)	100,000,000	100,000,000	100,000,000
Common Stock, issued (in shares)	15,473,725	15,477,082	15,480,032
Common Stock, outstanding (in shares)	10,075,944	10,369,601	10,454,392
Class B [Member]
GAMCO Investors, Inc. stockholders equity
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Common Stock, shares authorized (in shares)	100,000,000	100,000,000	100,000,000
Common Stock, issued (in shares)	24,000,000	24,000,000	24,000,000
Common Stock, outstanding (in shares)	19,092,168	19,093,311	19,093,311
4.5% Convertible Notes [Member]
ASSETS
Restricted cash	$ 95
Restricted investments in securities	$ 59,954
LIABILITIES AND EQUITY
Debt instrument, interest rate	4.50%	4.50%	4.50%
Debt issuance costs	$ 138	$ 165	$ 174
Debt instrument, maturity date	Aug. 15, 2021
AC 4% PIK Note [Member]
LIABILITIES AND EQUITY
Debt instrument, interest rate	4.00%
Debt instrument, maturity date	Nov. 30, 2020
5.875% Senior Notes [Member]
LIABILITIES AND EQUITY
Debt instrument, interest rate	5.875%	5.875%	5.875%
Debt issuance costs	$ 87	$ 105	$ 110
Debt instrument, maturity date	Jun. 01, 2021

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Deficit) [Member]	Accumulated Other Comprehensive Income [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2015	$ 33	$ 345	$ (34,224)	$ 9,115	$ (251,596)	$ (276,327)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	0	84,429	0	0	84,429
Net unrealized gain on securities available for sale, net of income tax expense	0	0	0	221	0	221
Amounts reclassified from accumulated other comprehensive income, net of income tax expense (benefit)	0	0	0	102	0	102
Foreign currency translation	0	0	0	(121)	0	(121)
Dividends declared	0	0	(1,793)	0	0	(1,793)
Stock based compensation expense	0	3,258	0	0	0	3,258
Reduction of deferred tax asset for excess of recorded RSA tax benefit over actual tax benefit	0	(468)	0	0	0	(468)
Purchase of treasury stock	0	0	0	0	(8,384)	(8,384)
Balance at Sep. 30, 2016	33	3,135	48,412	9,317	(259,980)	(199,083)
Balance at Dec. 31, 2016	33	3,903	80,515	11,271	(262,369)	(166,647)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	0	64,314	0	0	64,314
Net unrealized gain on securities available for sale, net of income tax expense	0	0	0	2,830	0	2,830
Amounts reclassified from accumulated other comprehensive income, net of income tax expense (benefit)	0	0	0	(1,811)	0	(1,811)
Foreign currency translation	0	0	0	75	0	75
Dividends declared	0	0	(1,803)	0	0	(1,803)
Stock based compensation expense	0	7,181	0	0	0	7,181
Purchase of treasury stock	0	0	0	0	(8,626)	(8,626)
Balance at Sep. 30, 2017	$ 33	$ 11,084	$ 143,026	$ 12,365	$ (270,995)	$ (104,487)

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED [Abstract]
Net unrealized gains on securities available for sale, income tax expense (benefit)	$ 1,663	$ 129
Amounts reclassified from accumulated other comprehensive income, income tax expense (benefit)	$ (1,064)	$ 61
Dividends declared (in dollars per share)	$ 0.06	$ 0.06

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED - USD ($) $ in Thousands	3 Months Ended					9 Months Ended		12 Months Ended
	Sep. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Operating activities
Net income	$ 16,600			$ 30,861		$ 64,314	$ 84,429
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization						439	470
Stock based compensation expense	2,103	$ 699	$ 691	1,186	$ 1,037	7,181	3,258	$ 3,950
Deferred income taxes						(9,229)	(3,930)
Foreign currency translation loss						75	(121)
Cost basis of donated securities						1,051	68
Net gains on sales of available for sale securities						(20)	(4)
(Increase) decrease in assets:
Investments in trading securities						(59,943)	223
Receivable from affiliates						1,179	290
Receivable from brokers						(889)	747
Investment advisory fees receivable						18,188	4,442
Income tax receivable and deferred tax assets						(15,592)	(3,847)
Other assets						325	534
Increase (decrease) in liabilities:
Payable to affiliates						1,569	(8)
Payable to brokers						13,245	10,190
Income taxes payable and deferred tax liabilities						8,029	(1,384)
Compensation payable						40,506	7,051
Accrued expenses and other liabilities						(5,199)	2,804
Total adjustments						915	20,783
Net cash provided by operating activities						65,229	105,212
Investing activities
Purchases of available for sale securities						(3,932)	(223)
Proceeds from sales of available for sale securities	321			0		321	408
Change in restricted cash						0	0
Net cash provided by investing activities						(3,611)	185
Financing activities
Issuance of 4.5% Convertible note						0	109,826
Dividends paid						(1,737)	(1,752)
Purchase of treasury stock						(8,626)	(8,384)
Repayment of AC 4% PIK Note						(30,000)	(150,000)
Repayment of loan from GGCP						0	(35,000)
Amortization of debt issuance costs						45	18
Net cash (used in) provided by financing activities						(40,318)	(85,292)
Effect of exchange rates on cash and cash equivalents						(15)	28
Net increase in cash and cash equivalents						21,285	20,133
Cash and cash equivalents at beginning of period		$ 39,812	33,852		$ 13,719	39,812	13,719	13,719
Cash and cash equivalents at end of period	$ 61,097		$ 39,812	$ 33,852		61,097	33,852	$ 39,812
Supplemental disclosures of cash flow information:
Cash paid for interest						6,621	4,561
Cash paid for taxes						$ 52,628	$ 55,216

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Non-cash activity:
Accrued restricted stock award dividends	$ 66	$ 41
Reduction of deferred tax asset for excess of recorded RSA tax benefit over actual tax benefit		$ (468)
4.5% Convertible Notes [Member]
Financing activities
Debt instrument, interest rate	4.50%	4.50%
AC 4% PIK Note [Member]
Financing activities
Debt instrument, interest rate	4.00%

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Significant Accounting Policies

9 Months Ended

Sep. 30, 2017

Significant Accounting Policies [Abstract]

Significant Accounting Policies

A.  Significant Accounting Policies

Basis of Presentation

Unless we have indicated otherwise, or the context otherwise requires, references in this report to “GAMCO Investors, Inc.,” “GAMCO,” “the Company,” “GBL,” “we,” “us” and “our” or similar terms are to GAMCO Investors, Inc., its predecessors and its subsidiaries.

The unaudited interim condensed consolidated financial statements of GAMCO included herein have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP in the United States for complete financial statements.  In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of GAMCO for the interim periods presented and are not necessarily indicative of a full year’s results.

The interim condensed consolidated financial statements include the accounts of GAMCO and its subsidiaries.  Intercompany accounts and transactions are eliminated.

These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016.

Use of Estimates

The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported on the interim condensed consolidated financial statements and accompanying notes.  Actual results could differ from those estimates.

Recent Accounting Developments

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers," which supersedes the revenue recognition requirements in the Accounting Standards Codification ("Codification") Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the Codification.  The core principle of the new ASU No. 2014-09 is for companies to recognize revenue from the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services.  The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition.  In March 2016, the FASB issued revised guidance which clarifies the guidance related to (a) determining the appropriate unit of account under the revenue standard’s principal versus agent guidance and (b) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control principle. In April 2016, the FASB issued an amendment to provide more detailed guidance including additional implementation guidance and examples related to a) identifying performance obligations and b) licenses of intellectual property. In May 2016, the FASB amended the standard to clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. This new guidance will be effective for the Company's first quarter of 2018 and requires either a full retrospective or a modified retrospective approach to adoption. The Company’s implementation analysis is nearing completion, and the Company does not expect the adoption of the guidance to have a significant effect on the timing of the recognition of revenue.  The Company has also been reviewing and preparing for the enhanced disclosure requirements of the standard, which will have an effect on the disclosures in the consolidated financial statements and accompanying notes.  The overall effect upon adoption may change based on further analysis and implementation efforts. Finally, the Company has not yet determined which transition method it will use.

In January 2016, the FASB issued ASU 2016-01, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Although the ASU retains many current requirements, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. To adopt the amendments, entities will be required to make a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year in which the guidance is effective. This new guidance will be effective for the Company’s first quarter of 2018. Upon adoption of this guidance, changes in the fair value of the Company’s available-for-sale investments will be reported through earnings rather than through other comprehensive income.

In February 2016, the FASB issued ASU 2016-02, which amends the guidance in U.S. GAAP for the accounting for leases.  ASU 2016-02 requires a lessee to recognize assets and liabilities arising from most operating leases in the condensed consolidated statement of financial position. It requires these operating leases to be recorded on the balance sheet as right of use assets and offsetting lease liability obligations.  This new guidance will be effective for the Company’s first quarter of 2019. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. For public companies, the ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods.  The Company adopted this guidance on January 1, 2017 without a material impact to the consolidated financial statements.  Please see Note D.

In August 2016, the FASB issued ASU 2016-15, which adds and clarifies guidance on the classification of certain cash receipts and payments in the consolidated statements of cash flows.  This guidance is intended to unify the currently diverse presentations and classifications, which address eight classification issues related to the statement of cash flows, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This new guidance will be effective for the Company’s first quarter of 2018 and requires a retrospective approach to adoption. The Company is currently evaluating the potential effect of this new guidance on its condensed consolidated financial statements and the related disclosures.

In November 2016, the FASB issued ASU 2016-18, which amends ASC 230 to clarify guidance on the classification and presentation of restricted cash in the statement of cash flows.  Key requirements are that an entity should include in its cash and cash equivalent balances in the statement of cash flow those amounts that are deemed to be restricted cash and restricted cash equivalents and that a reconciliation between the statement of financial position and the statement of cash flows must be disclosed when the statement of financial position includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents.  The ASU also mandates that changes in restricted cash and restricted cash equivalents that result from transfers between cash, cash equivalents, restricted cash, and restricted cash equivalents should not be presented as cash flow activities in the statement of cash flows and that an entity with a material amount of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions.  This new guidance was to be effective for the Company’s first quarter of 2018, but the Company has elected to early adopt in the third quarter of 2017.  There was no material impact to the consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04 to simplify the process used to test for goodwill impairment.  A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This new guidance will be effective for the Company’s first quarter of 2020. The Company is currently evaluating the potential effect of this new guidance on its condensed consolidated financial statements and related disclosures.

On May 10, 2017, the FASB issued ASU 2017-09, which amends the scope of modification accounting for share-based payment arrangements.  The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718.  Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification.  For all entities, the ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017.  Early adoption is permitted, including adoption in any interim period.  This ASU, which we did not early adopt, would not have impacted the accounting for the acceleration of vesting of restricted stock awards during the nine months ended September 30, 2017.

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Investment in Securities

9 Months Ended

Sep. 30, 2017

Investment in Securities [Abstract]

Investment in Securities

B.  Investment in Securities

Investments in securities at September 30, 2017, December 31, 2016 and September 30, 2016 consisted of the following:

	September 30, 2017				December 31, 2016				September 30, 2016
	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
	(In thousands)
Trading securities:
US Government Obligations	$	59,905	$	59,954	$	-	$	-	$	-	$	-
Common stocks		24		31		51		54		16		16
Mutual Funds		11		11		-		-		-		-
Total trading securities		59,940		59,996		51		54		16		16
Available for sale securities:
Common stocks		21,319		41,315		18,739		37,131		17,649		32,873
Closed-end funds		99		114		99		100		-		-
Total available for sale securities		21,418		41,429		18,838		37,231		17,649		32,873
Total investments in securities	$	81,358	$	101,425	$	18,889	$	37,285	$	17,665	$	32,889

There were no securities sold, not yet purchased at September 30, 2017, December 31, 2016 and September 30, 2016.

$59.9 million of U.S. Government Obligations are held in an escrow account for the benefit of the Convertible Note holder.

Management determines the appropriate classification of debt and equity securities at the time of purchase and reevaluates such designation as of the date of each condensed consolidated statement of financial condition.  Investments in United States Treasury Bills and Notes with maturities of greater than three months at the time of purchase are classified as investments in securities, and those with maturities of three months or less at the time of purchase are classified as cash equivalents.  The portion of investments in securities held for resale in anticipation of short-term market movements are classified as trading securities.  Trading securities are stated at fair value, with any unrealized gains or losses reported in current period earnings.  Available for sale (“AFS”) investments are stated at fair value, with any unrealized gains or losses, net of taxes, reported as a component of equity except for losses deemed to be other than temporary (“OTT”) which are recorded as realized losses in the condensed consolidated statements of income.

The following table identifies all reclassifications out of accumulated other comprehensive income (“AOCI”) into income for the three and nine months ended September 30, 2017 and 2016 (in thousands):

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Three Months Ended September 30,
2017				2016
	$	20			$	-		Net gain from investments	Realized gain on sale of AFS securities
		2,821				7		Other operating expenses/net gains from investments	Realized gain on donations of AFS securities
		2,841				7		Income before income taxes
		(1,051	)			(3	)	Income tax provision
	$	1,790			$	4		Net income

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Nine Months Ended September 30,
2017				2016
	$	20			$	4		Net gain from investments	Realized gain on sale of AFS securities
		2,855				159		Other operating expenses/net gains from investments	Realized gain on donations of AFS securities
		2,875				163		Income before income taxes
		(1,064	)			(61	)	Income tax provision
	$	1,811			$	102		Net income

The following is a summary of the cost, gross unrealized gains, gross unrealized losses and fair value of available for sale investments as of September 30, 2017, December 31, 2016 and September 30, 2016:

	September 30, 2017
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	21,319		$	19,996		$	-		$	41,315
Closed-end funds			99			15			-			114
Total available for sale securities		$	21,418		$	20,011		$	-		$	41,429

	December 31, 2016
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	18,739		$	18,392		$	-		$	37,131
Closed-end funds			99			1			-			100
Total available for sale securities		$	18,838		$	18,393		$	-		$	37,231

	September 30, 2016
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	17,649		$	15,224		$	-		$	32,873
Total available for sale securities		$	17,649		$	15,224		$	-		$	32,873

A net unrealized gain, net of taxes, for the three months ended September 30, 2017 and 2016 of $2.3 million and $0.5 million, respectively, has been included in other comprehensive income, a component of equity, at September 30, 2017 and 2016.  During the three months ended September 30, 2017, proceeds from the sales of investments available for sale were approximately $321,000 and gross gains on the sale of investments available for sale amounted to $20,000 and were reclassified from other comprehensive income into net gain from investments in the condensed consolidated statements of income.  There were no sales of investments available for sale for the three months ended September 30, 2016. There were no realized losses on the sale of investments available for sale for the three months ended September 30, 2017 or September 30, 2016.  A net unrealized gain, net of taxes, for the nine months ended September 30, 2017 and 2016 of $1.0 million and $0.3 million, respectively, has been included in other comprehensive income, a component of equity, at September 30, 2017 and 2016, respectively.  During the nine months ended September 30, 2017 and 2016, proceeds from the sales of investments available for sale were approximately $321,000 and $408,000, respectively, and gross gains on the sale of investments available for sale amounted to $20,000 and $4,000, respectively, and were reclassified from other comprehensive income into net gain from investments in the condensed consolidated statements of income.  There were no realized losses on the sale of investments available for sale for the nine months ended September 30, 2017 or September 30, 2016.  The basis on which the cost of a security sold is determined using specific identification.  Accumulated other comprehensive income on the condensed consolidated statements of equity is primarily comprised of unrealized gains/losses, net of taxes, for AFS securities.

The Company has an established accounting policy and methodology to determine other-than-temporary impairment on available for sale securities.  Under this policy, available for sale securities are evaluated for other than temporary impairments and any impairment charges are recorded in net gain/(loss) from investments on the condensed consolidated statements of income.  Management reviews all available for sale securities whose cost exceeds their market value to determine if the impairment is other than temporary.  Management uses qualitative factors such as diversification of the investment, the amount of time that the investment has been impaired, the intent to sell and the severity of the decline in determining whether the impairment is other than temporary.  

There were no investments classified as available for sale that were in an unrealized loss position at September 30, 2017, December 31, 2016 or September 30, 2016.

For the three and nine months ended September 30, 2017 and 2016, there were no losses on available for sale securities that were deemed to be other than temporary.

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Fair Value

9 Months Ended

Sep. 30, 2017

Fair Value [Abstract]

Fair Value

C. Fair Value

The following tables present information about the Company’s assets and liabilities by major categories measured at fair value on a recurring basis as of September 30, 2017, December 31, 2016 and September 30, 2016 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value:

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of September 30, 2017 (in thousands)

	Quoted Prices in Active		Significant Other		Significant		Balance as of
	Markets for Identical		Observable		Unobservable		September 30,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2017
Cash equivalents	$	60,702	$	-	$	-	$	60,702
Investments in securities:
AFS - Common stocks		41,315		-		-		41,315
AFS - Closed-end Funds		114		-		-		114
US Government Obligations		59,954		-		-		59,954
Trading - Common stocks		31		-		-		31
Trading - Mutual Funds		11		-		-		11
Total investments in securities		101,425		-		-		101,425
Total assets at fair value	$	162,127	$	-	$	-	$	162,127

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2016 (in thousands)

	Quoted Prices in Active		Significant Other		Significant		Balance as of
	Markets for Identical		Observable		Unobservable		December 31,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2016
Cash equivalents	$	39,638	$	-	$	-	$	39,638
Investments in securities:
AFS - Common stocks		37,131		-		-		37,131
AFS - Closed-end Funds		100		-		-		100
Trading - Common stocks		54		-		-		54
Total investments in securities		37,285		-		-		37,285
Total assets at fair value	$	76,923	$	-	$	-	$	76,923

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of September 30, 2016 (in thousands)

	Quoted Prices in Active		Significant Other		Significant		Balance as of
	Markets for Identical		Observable		Unobservable		September 30,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2016
Cash equivalents	$	33,576	$	-	$	-	$	33,576
Investments in securities:
AFS - Common stocks		32,873		-		-		32,873
Trading - Common stocks		16		-		-		16
Total investments in securities		32,889		-		-		32,889
Total assets at fair value	$	66,465	$	-	$	-	$	66,465

During the quarters ended September 30, 2017 and 2016, there were no transfers between any Level 1 and Level 2 holdings, or between Level 1 and Level 3 holdings.

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Taxes [Abstract]

Income Taxes

D. Income Taxes

The effective tax rate (“ETR”) for the three months ended September 30, 2017 and September 30, 2016 was 18.8% and 31.9%, respectively. The ETR for the nine months ended September 30, 2017 and September 30, 2016 was 34.4% and 35.9%, respectively. The current year quarter’s ETR benefited from the reversal of certain tax accruals totaling $3.6 million due to a change in accounting estimate as well as a $1.0 million tax benefit related to the charitable contribution while the prior year quarter benefited from a reversal of $2.6 million in tax accruals due to the conclusion of a state audit.

ASU 2016-09, which was issued in March 2016 and became effective for interim and annual reporting periods beginning after December 15, 2016, simplifies several aspects of accounting for employee share-based payment transactions. Upon adoption of ASU 2016-09 on January 1, 2017, our accounting for excess tax benefits has changed and adopted prospectively, resulting in recognition of excess tax benefits or tax deficiencies against income tax expenses rather than additional paid-in capital.  During the three and nine months ended September 30, 2017, the ETR was higher by 3.6% and 1.0%, respectively, as a result of a reduction to previously recorded stock compensation tax benefits.

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Earnings Per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share

E. Earnings Per Share

Thecomputations of basic and diluted net income per share are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2017		2016		2017		2016
Basic:
Net income attributable to GAMCO Investors, Inc.'s
shareholders	$	16,600	$	30,861	$	64,314	$	84,429
Weighted average shares outstanding		28,926		29,185		28,930		29,222
Basic net income per share attributable to GAMCO
Investors, Inc.'s shareholders	$	0.57	$	1.06	$	2.22	$	2.89
Diluted:
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	16,600	$	30,861	$	64,314	$	84,429
Add interest on convertible note, net of management fee and taxes		696		387		2,192		387
Total income attributable to GAMCO Investors, Inc.'s shareholders	$	17,296	$	31,248	$	66,506	$	84,816
Weighted average share outstanding		28,926		29,185		28,930		29,222
Restricted stock awards		247		221		214		253
Assumed conversion of convertible note		2,000		1,000		2,000		336
Total		31,173		30,406		31,144		29,811
Diluted net income per share attributable to GAMCO
Investors, Inc.'s shareholders	$	0.55	$	1.03	$	2.14	$	2.85

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Debt

9 Months Ended

Sep. 30, 2017

Debt [Abstract]

Debt

F. Debt

Debt consists of the following:

	September 30, 2017						December 31, 2016						September 30, 2016
	Carrying			Fair Value			Carrying			Fair Value			Carrying			Fair Value
	Value			Level 2			Value			Level 2			Value			Level 2
(In thousands)
4.5 % Convertible note		$	109,862			111,574		$	109,835		$	111,525		$	109,826		$	112,172
AC 4% PIK Note			70,000			71,755			100,000			100,930			100,000			101,347
5.875% Senior notes			24,138			24,748			24,120			24,558			24,115			25,073
Total		$	204,000		$	208,077		$	233,955		$	237,013		$	233,941		$	238,592

4.5% Convertible Note

On August 15, 2016, the Company issued and sold a 5-year, $110 million convertible note (“Convertible Note”).  The note bears interest at a rate of 4.5% per annum and is convertible into shares of the Company’s Class A Common stock (“Class A Stock”) at an initial conversion price of $55.00 per share.  The Convertible Note is initially convertible into two million shares of the Company’s Class A Stock, subject to adjustment pursuant to the terms of the Convertible Note.  The Company is required to repurchase the Convertible Note at the request of the holder on specified dates or after certain circumstances involving a Fundamental Change (as defined in the Convertible Note).  The Company recorded $174,000 of costs in connection with the issuance of the Convertible Note.  GGCP, Inc. (“GGCP”), which owns approximately 63 % of the equity interest of the Company, has deposited cash equal to the principal amount of the Note and six months interest (“Initial Deposit”) into an escrow account established pursuant to an escrow agreement by and among GGCP, the Company, the Convertible Note holder and the escrow agent.  In connection with the Initial Deposit made by GGCP, the Company has agreed that GGCP has a right to demand payment in an amount equal to any funds withdrawn from the escrow account by the Convertible Note holder.

A portion of the proceeds from the sale of the Convertible Note are now held in an escrow account established pursuant to an escrow agreement dated August 15, 2016 by and among the Company, GGCP and its related parties, Cascade and JP Morgan Chase Bank, National Association, as escrow agent (the “Escrow Agreement”).  On September 30, 2017, in connection with an amendment to the Escrow Agreement and in exchange for approximately 53% of the assets in the escrow account, the Company paid GGCP $60 million. The $60 million is disclosed as restricted cash and restricted investment in securities of $0.1 million and $59.9 million, respectively, on the statement of financial condition. The Escrow Agreement provides for the release to the Company of a pro rata portion of the escrowed funds upon repayment of the Convertible Note or conversion of the Convertible Note, based upon the principal amount of the Convertible Note that is converted into Class A Stock.  Under the Convertible Note, Cascade has the right to claim the escrowed funds upon a payment default by the Company.  It is the Company’s current plan to redeem the Convertible Note no later than February 15, 2019.

AC 4% PIK Note

In connection with the spin-off of AC on November 30, 2015, the Company issued a $250 million promissory note (the “AC 4% PIK Note”) payable to AC.  The AC 4% PIK Note bears interest at 4.0% per annum.  The original principal amount has a maturity date of November 30, 2020.  Interest on the AC 4% PIK Note will accrue from the date of the last interest payment, or if no interest has been paid, from the effective date of the AC 4% PIK Note.  At the election of the Company, payment of interest on the AC 4% PIK Note may be paid in kind (in whole or in part) on the then-outstanding principal amount (a “PIK Amount”) in lieu of cash.  All PIK Amounts added to the outstanding principal amount of the AC 4% PIK Note will mature on the fifth anniversary from the date the PIK Amount was added to the outstanding principal of the AC 4% PIK Note.  In no event may any interest be paid in kind subsequent to November 30, 2019.  The Company may prepay the AC 4% PIK Note (in whole or in part) prior to maturity without penalty.

During the three and nine months ended September 30, 2017, the Company prepaid $10 million and $30 million, respectively, of principal of the AC 4% PIK Note against the principal amount due on November 30, 2018.  Of the $70 million principal amount outstanding after this payment, $20 million is due on November 30, 2019, and $50 million is due on November 30, 2020. During the three and nine months ended September 30, 2016, the Company prepaid $150 million of principal of the AC 4% PIK Note.  Subsequent to quarter end, the Company paid an additional $20 million of principal, thereby reducing the amount outstanding to $50 million, all of which is due on November 30, 2020.

5.875% Senior Notes

On May 31, 2011, the Company issued 10-year, $100 million senior notes (“Senior Notes”).  The Senior Notes mature on June 1, 2021 and bear interest at 5.875% per annum, payable semi-annually on June 1 and December 1 of each year and commenced on December 1, 2011.  Upon the occurrence of a change of control triggering event, as defined in the indenture, the Company would be required to offer to repurchase the Senior Notes at 101% of their principal amount.

At September 30, 2017, December 31, 2016 and September 30, 2016, the debt was recorded at its face value, net of issuance costs, of $24.1 million, $24.1 million and $24.1 million, respectively.

The fair value of the Company’s debt, which is a Level 2 valuation, is estimated based on either quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities or using market standard models.  Inputs in these standard models include credit rating, maturity and interest rate.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2017

Stockholders' Equity [Abstract]

Stockholders' Equity

G. Stockholders’ Equity

Shares outstanding were 29.2 million, 29.5 million and 29.5 million on September 30, 2017, December 31, 2016 and September 30, 2016, respectively.

Dividends

	Record	Payment
	Date	Date	Amount
Three months ended March 31, 2017	March 14, 2017	March 28, 2017	$	0.02
Three months ended June 30, 2017	June 27, 2017	July 11, 2017		0.02
Three months ended September 30, 2017	September 12, 2017	September 26, 2017		0.02
Nine months ended September 30, 2017			$	0.06

	Record	Payment
	Date	Date	Amount
Three months ended March 31, 2016	March 15, 2016	March 29, 2016	$	0.02
Three months ended June 30, 2016	June 14, 2016	June 28, 2016		0.02
Three months ended September 30, 2016	September 13, 2016	September 27, 2016		0.02
Nine months ended September 30, 2016			$	0.06

Voting Rights

The holders of Class A Stock and Class B Common stock (“Class B Stock”) have identical rights except that (i) holders of Class A Stock are entitled to one vote per share, while holders of Class B Stock are entitled to ten votes per share on all matters to be voted on by shareholders in general, and (ii) holders of Class A Stock are not eligible to vote on matters relating exclusively to Class B Stock and vice versa.

Stock Award and Incentive Plan

The Company maintains two Plans approved by the shareholders, which are designed to provide incentives which will attract and retain individuals key to the success of GBL through direct or indirect ownership of our common stock. Benefits under the Plans may be granted in any one or a combination of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents and other stock or cash based awards. A maximum of 7.5 million shares of Class A Stock have been reserved for issuance under the Plans by a committee of the Board of Directors responsible for administering the Plans (“Compensation Committee”). Under the Plans, the committee may grant RSAs and either incentive or nonqualified stock options with a term not to exceed ten years from the grant date and at an exercise price that the committee may determine.

As of September 30, 2017, December 31, 2016 and September 30, 2016, there were 164,050 RSA shares, 424,340 RSA shares and 427,290 RSA shares outstanding, respectively, that were previously issued at an average weighted grant price of $66.84, $65.74 and $65.72, respectively. These RSA grants occurred prior to the spin-off of Associated Capital (“AC”). On November 30, 2015, pursuant to the spin-off, all RSA grant holders received shares of AC’s Class A common stock as a result of their ownership of their GAMCO unvested RSAs (one share of AC for each share of GBL). All grants of the RSA shares were recommended by the Company's Chairman, who did not receive a RSA, and approved by the Compensation Committee. This expense, net of estimated forfeitures, is recognized over the vesting period for these awards which is either (1) 30% over three years from the date of grant and 70% over five years from the date of grant or (2) 30% over three years from the date of grant and 10% each year over years four through ten from the date of grant.  During the vesting period, dividends to RSA holders are held for them until the RSA vesting dates and are forfeited if the grantee is no longer employed by the Company on the vesting dates.  Dividends declared on these RSAs, less estimated forfeitures, are charged to retained earnings (deficit) on the declaration date.

On June 1, 2017, the Compensation Committee of AC accelerated the vesting of all 420,240 AC RSAs outstanding effective June 15, 2017.  As a result, GBL recorded an incremental $3.7 million of stock-based compensation expense for the nine months ended September 30, 2017.  This amount related to GBL teammates who held AC RSAs.  There will be no further expense related to these AC RSAs recorded by GBL after the second quarter ended June 30, 2017.

On August 7, 2017, the Compensation Committee of GBL accelerated the vesting relating to 201,120 of GBL RSAs outstanding effective August 31, 2017.  As a result, GBL recorded an incremental $1.8 million of stock-based compensation expense for the three and nine months ended September 30, 2017.  There continue to be 164,050 GBL RSAs outstanding that were not vested as part of this acceleration which will result in recognition of expense as these RSAs continue to vest.  See table below for impact by quarter.

ASU 2016-09, which was issued in March 2016 and became effective for interim and annual reporting periods beginning after December 15, 2016, simplifies several aspects of accounting for employee share-based payment transactions.  Upon adoption of ASU 2016-09 on January 1, 2017, the Company elected not to change its accounting policy on forfeitures and continue to estimate forfeitures rather than accounting for forfeitures as they occur, an alternative allowed under ASU 2016-09.  The Company’s accounting treatment for excess tax benefits or tax deficiencies also changed with the adoption of ASU 2016-09 on January 1, 2017. Excess tax benefits or tax deficiencies are now required to be recorded within the income tax expense line in the consolidated statement of income rather than to additional paid-in capital within the condensed consolidated statement of financial condition.  During the three and nine months ended September 30, 2017, the Company reduced previously recorded tax benefits relating to RSA expense by $0.7 million and $1.0 million, respectively, on RSAs that vested.

For the three months ended September 30, 2017 and September 30, 2016, we recognized stock-based compensation expense of $2.1 million and $1.2 million, respectively.  For the nine months ended September 30, 2017 and September 30, 2016, we recognized stock-based compensation expense of $7.2 million and $3.3 million, respectively.  The three month amount for 2017 includes the $1.8 million related to the GBL RSA accelerated vesting mentioned above.  The nine month amount for 2017 includes the $1.8 million related to the GBL RSAs’ accelerated vesting and the $3.7 million related to the AC RSAs’ accelerated vesting both mentioned above.  All stock-based compensation expense in future periods for grants currently outstanding will relate to GBL RSAs only.

Actual and projected stock-based compensation expense for RSA shares for the years ended December 31, 2016 through December 31, 2024 is as follows (in thousands):

		2016		2017		2018		2019		2020		2021		2022		2023		2024
	Q1	$	1,037	$	699	$	144	$	113	$	72	$	49	$	32	$	17	$	4
	Q2		1,036		4,381		141		113		68		49		32		17		4
	Q3		1,186		2,103		126		101		57		39		24		10		2
	Q4		691		157		113		90		49		32		17		4		-
Full Year		$	3,950	$	7,340	$	524	$	417	$	246	$	169	$	105	$	48	$	10

The total compensation cost related to non-vested RSAs not yet recognized is approximately $1.7 million as of September 30, 2017.

Stock Repurchase Program

In March 1999, GAMCO's Board of Directors established the Stock Repurchase Program to grant management the authority to repurchase shares of our Class A Common Stock.  On May 3, 2017, our Board of Directors authorized an incremental 500,000 shares to be added to the current buyback authorization. On August 3, 2017, our Board of Directors authorized an incremental 425,352 shares to be added to the current buy back authorization. For the three months ended September 30, 2017 and September 30, 2016, the Company repurchased 131,480 shares and 223,811 shares, respectively, at an average price per share of $29.42 and $31.50, respectively.  For the nine months ended September 30, 2017 and September 30, 2016, the Company repurchased 290,300 shares and 266,846 shares, respectively, at an average price per share of $29.71 and $31.41, respectively.  From the inception of the program through September 30, 2017, 10,191,640 shares have been repurchased at an average price of $43.90 per share.  At September 30, 2017, the total shares available under the program to be repurchased in the future were 868,520.

Shelf Registration

On May 4, 2015, the Securities and Exchange Commission (“SEC”) declared effective the “shelf” registration statement filed by the Company. The “shelf” provides the Company with the flexibility of issuing any combination of senior and subordinated debt securities, convertible securities and common and preferred securities up to a total amount of $500 million and replaced the existing shelf registration which expired in May 2015.  As of September 30, 2017, $500 million is available on the shelf.

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Related Party Transactions

9 Months Ended

Sep. 30, 2017

Related Party Transactions [Abstract]

Related Party Transactions

H. Related Party Transactions

In connection with the issuance of the Convertible Note in August 2016, GGCP deposited cash of approximately $112.5 million, equal to the principal amount of the Convertible Note and six months interest, into an escrow account established pursuant to an escrow agreement by and among GGCP, the Company, the Convertible Note holder and the escrow agent.  The Company paid the annual costs of setting up the escrow account in the amount of $55,000 and will continue to pay them as long as the escrow account is open.  The Company did not pay any fees to GGCP in connection with the funding of the escrow account.  On September 30, 2017, in connection with an amendment to the Escrow Agreement and in exchange for approximately 53% of the assets in the escrow account, the Company paid GGCP $60 million.  See Note F. Debt for additional details.

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Identifiable Intangible Assets

9 Months Ended

Sep. 30, 2017

Identifiable Intangible Assets [Abstract]

Identifiable Intangible Assets

I. Identifiable Intangible Assets

As a result of becoming the advisor to the Gabelli Enterprise Mergers and Acquisitions Fund and the associated consideration paid, the Company maintains an identifiable intangible asset of $1.9 million within other assets on the condensed consolidated statements of financial condition at September 30, 2017, December 31, 2016 and September 30, 2016. The investment advisory agreement is subject to annual renewal by the fund's Board of Directors, which the Company expects to be renewed, and the Company does not expect to incur additional expense as a result, which is consistent with other investment advisory agreements entered into by the Company.  The advisory contract is next up for renewal in February 2018. On November 1, 2015, as a result of becoming the advisor to the Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. and the associated consideration paid, the Company maintains an identifiable intangible asset of $1.6 million within other assets on the condensed consolidated statement of financial condition at September 30, 2017, December 31, 2016 and September 30, 2016.  The advisory contracts for the Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. are both next up for renewal in August 2018. The Company assesses the recoverability of this intangible asset at least annually, or more often should events warrant. There were no indicators of impairment for the three months ended September 30, 2017 or September 30, 2016, and as such there was no impairment analysis performed or charge recorded.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies [Abstract]

Commitments and Contingencies

J. Commitments and Contingencies

From time to time, the Company may be named in legal actions and proceedings. These actions may seek substantial or indeterminate compensatory as well as punitive damages or injunctive relief. The Company is also subject to governmental or regulatory examinations or investigations. The examinations or investigations could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief. For any such matters, the condensed consolidated financial statements include the necessary provisions for losses that the Company believes are probable and estimable. Furthermore, the Company evaluates whether there exist losses which may be reasonably possible and will, if material, make the necessary disclosures.  However, management believes such amounts, both those that are probable and those that are reasonably possible, are not material to the Company’s financial condition, operations or cash flows at September 30, 2017.

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Subsequent Events

9 Months Ended

Sep. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

K. Subsequent Events

On September 30, 2017, GAMCO entered into a third deferred compensation agreement with Mr. Gabelli for the period of October 1, 2017 to December 31, 2017.  Mr. Gabelli’s variable cash compensation for that period will vest on April 1, 2019.  For GAAP accounting purposes, the compensation earned from October 1, 2017 to December 31, 2017 will be expensed ratably from October 1, 2017 to March 31, 2019.

On October 3, 2017, the Company paid an additional $20 million of principal relating to the AC 4% PIK Note, thereby reducing the amount outstanding to $50 million, all of which is due on November 30, 2020.

On November 7, 2017, the Board of Directors declared its regular quarterly dividend of $0.02 per share to all of its shareholders, payable on January 10, 2018 to shareholders of record on December 27, 2017.

From October 1, 2017 to November 7, 2017, the Company repurchased 31,100 shares at $29.11 per share.

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Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2017

Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Unless we have indicated otherwise, or the context otherwise requires, references in this report to “GAMCO Investors, Inc.,” “GAMCO,” “the Company,” “GBL,” “we,” “us” and “our” or similar terms are to GAMCO Investors, Inc., its predecessors and its subsidiaries.

The unaudited interim condensed consolidated financial statements of GAMCO included herein have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP in the United States for complete financial statements.  In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of GAMCO for the interim periods presented and are not necessarily indicative of a full year’s results.

The interim condensed consolidated financial statements include the accounts of GAMCO and its subsidiaries.  Intercompany accounts and transactions are eliminated.

These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016.

Use of Estimates

Use of Estimates

The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported on the interim condensed consolidated financial statements and accompanying notes.  Actual results could differ from those estimates.

Recent Accounting Developments

Recent Accounting Developments

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers," which supersedes the revenue recognition requirements in the Accounting Standards Codification ("Codification") Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the Codification.  The core principle of the new ASU No. 2014-09 is for companies to recognize revenue from the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services.  The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition.  In March 2016, the FASB issued revised guidance which clarifies the guidance related to (a) determining the appropriate unit of account under the revenue standard’s principal versus agent guidance and (b) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control principle. In April 2016, the FASB issued an amendment to provide more detailed guidance including additional implementation guidance and examples related to a) identifying performance obligations and b) licenses of intellectual property. In May 2016, the FASB amended the standard to clarify the guidance on assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. This new guidance will be effective for the Company's first quarter of 2018 and requires either a full retrospective or a modified retrospective approach to adoption. The Company’s implementation analysis is nearing completion, and the Company does not expect the adoption of the guidance to have a significant effect on the timing of the recognition of revenue.  The Company has also been reviewing and preparing for the enhanced disclosure requirements of the standard, which will have an effect on the disclosures in the consolidated financial statements and accompanying notes.  The overall effect upon adoption may change based on further analysis and implementation efforts. Finally, the Company has not yet determined which transition method it will use.

In January 2016, the FASB issued ASU 2016-01, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Although the ASU retains many current requirements, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. To adopt the amendments, entities will be required to make a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year in which the guidance is effective. This new guidance will be effective for the Company’s first quarter of 2018. Upon adoption of this guidance, changes in the fair value of the Company’s available-for-sale investments will be reported through earnings rather than through other comprehensive income.

In February 2016, the FASB issued ASU 2016-02, which amends the guidance in U.S. GAAP for the accounting for leases.  ASU 2016-02 requires a lessee to recognize assets and liabilities arising from most operating leases in the condensed consolidated statement of financial position. It requires these operating leases to be recorded on the balance sheet as right of use assets and offsetting lease liability obligations.  This new guidance will be effective for the Company’s first quarter of 2019. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. For public companies, the ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods.  The Company adopted this guidance on January 1, 2017 without a material impact to the consolidated financial statements.  Please see Note D.

In August 2016, the FASB issued ASU 2016-15, which adds and clarifies guidance on the classification of certain cash receipts and payments in the consolidated statements of cash flows.  This guidance is intended to unify the currently diverse presentations and classifications, which address eight classification issues related to the statement of cash flows, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This new guidance will be effective for the Company’s first quarter of 2018 and requires a retrospective approach to adoption. The Company is currently evaluating the potential effect of this new guidance on its condensed consolidated financial statements and the related disclosures.

In November 2016, the FASB issued ASU 2016-18, which amends ASC 230 to clarify guidance on the classification and presentation of restricted cash in the statement of cash flows.  Key requirements are that an entity should include in its cash and cash equivalent balances in the statement of cash flow those amounts that are deemed to be restricted cash and restricted cash equivalents and that a reconciliation between the statement of financial position and the statement of cash flows must be disclosed when the statement of financial position includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents.  The ASU also mandates that changes in restricted cash and restricted cash equivalents that result from transfers between cash, cash equivalents, restricted cash, and restricted cash equivalents should not be presented as cash flow activities in the statement of cash flows and that an entity with a material amount of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions.  This new guidance was to be effective for the Company’s first quarter of 2018, but the Company has elected to early adopt in the third quarter of 2017.  There was no material impact to the consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04 to simplify the process used to test for goodwill impairment.  A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This new guidance will be effective for the Company’s first quarter of 2020. The Company is currently evaluating the potential effect of this new guidance on its condensed consolidated financial statements and related disclosures.

On May 10, 2017, the FASB issued ASU 2017-09, which amends the scope of modification accounting for share-based payment arrangements.  The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718.  Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification.  For all entities, the ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017.  Early adoption is permitted, including adoption in any interim period.  This ASU, which we did not early adopt, would not have impacted the accounting for the acceleration of vesting of restricted stock awards during the nine months ended September 30, 2017.

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Investment in Securities (Tables)

9 Months Ended

Sep. 30, 2017

Investment in Securities [Abstract]

Investments in Securities

Investments in securities at September 30, 2017, December 31, 2016 and September 30, 2016 consisted of the following:

	September 30, 2017				December 31, 2016				September 30, 2016
	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
	(In thousands)
Trading securities:
US Government Obligations	$	59,905	$	59,954	$	-	$	-	$	-	$	-
Common stocks		24		31		51		54		16		16
Mutual Funds		11		11		-		-		-		-
Total trading securities		59,940		59,996		51		54		16		16
Available for sale securities:
Common stocks		21,319		41,315		18,739		37,131		17,649		32,873
Closed-end funds		99		114		99		100		-		-
Total available for sale securities		21,418		41,429		18,838		37,231		17,649		32,873
Total investments in securities	$	81,358	$	101,425	$	18,889	$	37,285	$	17,665	$	32,889

Reclassifications Out of Accumulated Other Comprehensive Income

The following table identifies all reclassifications out of accumulated other comprehensive income (“AOCI”) into income for the three and nine months ended September 30, 2017 and 2016 (in thousands):

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Three Months Ended September 30,
2017				2016
	$	20			$	-		Net gain from investments	Realized gain on sale of AFS securities
		2,821				7		Other operating expenses/net gains from investments	Realized gain on donations of AFS securities
		2,841				7		Income before income taxes
		(1,051	)			(3	)	Income tax provision
	$	1,790			$	4		Net income

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Nine Months Ended September 30,
2017				2016
	$	20			$	4		Net gain from investments	Realized gain on sale of AFS securities
		2,855				159		Other operating expenses/net gains from investments	Realized gain on donations of AFS securities
		2,875				163		Income before income taxes
		(1,064	)			(61	)	Income tax provision
	$	1,811			$	102		Net income

Summary of Available-for-sale Securities

The following is a summary of the cost, gross unrealized gains, gross unrealized losses and fair value of available for sale investments as of September 30, 2017, December 31, 2016 and September 30, 2016:

	September 30, 2017
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	21,319		$	19,996		$	-		$	41,315
Closed-end funds			99			15			-			114
Total available for sale securities		$	21,418		$	20,011		$	-		$	41,429

	December 31, 2016
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	18,739		$	18,392		$	-		$	37,131
Closed-end funds			99			1			-			100
Total available for sale securities		$	18,838		$	18,393		$	-		$	37,231

	September 30, 2016
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	17,649		$	15,224		$	-		$	32,873
Total available for sale securities		$	17,649		$	15,224		$	-		$	32,873

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present information about the Company’s assets and liabilities by major categories measured at fair value on a recurring basis as of September 30, 2017, December 31, 2016 and September 30, 2016 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value:

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of September 30, 2017 (in thousands)

	Quoted Prices in Active		Significant Other		Significant		Balance as of
	Markets for Identical		Observable		Unobservable		September 30,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2017
Cash equivalents	$	60,702	$	-	$	-	$	60,702
Investments in securities:
AFS - Common stocks		41,315		-		-		41,315
AFS - Closed-end Funds		114		-		-		114
US Government Obligations		59,954		-		-		59,954
Trading - Common stocks		31		-		-		31
Trading - Mutual Funds		11		-		-		11
Total investments in securities		101,425		-		-		101,425
Total assets at fair value	$	162,127	$	-	$	-	$	162,127

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2016 (in thousands)

	Quoted Prices in Active		Significant Other		Significant		Balance as of
	Markets for Identical		Observable		Unobservable		December 31,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2016
Cash equivalents	$	39,638	$	-	$	-	$	39,638
Investments in securities:
AFS - Common stocks		37,131		-		-		37,131
AFS - Closed-end Funds		100		-		-		100
Trading - Common stocks		54		-		-		54
Total investments in securities		37,285		-		-		37,285
Total assets at fair value	$	76,923	$	-	$	-	$	76,923

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of September 30, 2016 (in thousands)

	Quoted Prices in Active		Significant Other		Significant		Balance as of
	Markets for Identical		Observable		Unobservable		September 30,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2016
Cash equivalents	$	33,576	$	-	$	-	$	33,576
Investments in securities:
AFS - Common stocks		32,873		-		-		32,873
Trading - Common stocks		16		-		-		16
Total investments in securities		32,889		-		-		32,889
Total assets at fair value	$	66,465	$	-	$	-	$	66,465

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Computations of Basic and Diluted Net Income per Share

Thecomputations of basic and diluted net income per share are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share amounts)	2017		2016		2017		2016
Basic:
Net income attributable to GAMCO Investors, Inc.'s
shareholders	$	16,600	$	30,861	$	64,314	$	84,429
Weighted average shares outstanding		28,926		29,185		28,930		29,222
Basic net income per share attributable to GAMCO
Investors, Inc.'s shareholders	$	0.57	$	1.06	$	2.22	$	2.89
Diluted:
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	16,600	$	30,861	$	64,314	$	84,429
Add interest on convertible note, net of management fee and taxes		696		387		2,192		387
Total income attributable to GAMCO Investors, Inc.'s shareholders	$	17,296	$	31,248	$	66,506	$	84,816
Weighted average share outstanding		28,926		29,185		28,930		29,222
Restricted stock awards		247		221		214		253
Assumed conversion of convertible note		2,000		1,000		2,000		336
Total		31,173		30,406		31,144		29,811
Diluted net income per share attributable to GAMCO
Investors, Inc.'s shareholders	$	0.55	$	1.03	$	2.14	$	2.85

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Debt (Tables)

9 Months Ended

Sep. 30, 2017

Debt [Abstract]

Schedule of Debt

Debt consists of the following:

	September 30, 2017						December 31, 2016						September 30, 2016
	Carrying			Fair Value			Carrying			Fair Value			Carrying			Fair Value
	Value			Level 2			Value			Level 2			Value			Level 2
(In thousands)
4.5 % Convertible note		$	109,862			111,574		$	109,835		$	111,525		$	109,826		$	112,172
AC 4% PIK Note			70,000			71,755			100,000			100,930			100,000			101,347
5.875% Senior notes			24,138			24,748			24,120			24,558			24,115			25,073
Total		$	204,000		$	208,077		$	233,955		$	237,013		$	233,941		$	238,592

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2017

Stockholders' Equity [Abstract]

Dividends

Dividends

	Record	Payment
	Date	Date	Amount
Three months ended March 31, 2017	March 14, 2017	March 28, 2017	$	0.02
Three months ended June 30, 2017	June 27, 2017	July 11, 2017		0.02
Three months ended September 30, 2017	September 12, 2017	September 26, 2017		0.02
Nine months ended September 30, 2017			$	0.06

	Record	Payment
	Date	Date	Amount
Three months ended March 31, 2016	March 15, 2016	March 29, 2016	$	0.02
Three months ended June 30, 2016	June 14, 2016	June 28, 2016		0.02
Three months ended September 30, 2016	September 13, 2016	September 27, 2016		0.02
Nine months ended September 30, 2016			$	0.06

Actual and Projected Stock-based Compensation Expense for RSA Shares and Options

For the three months ended September 30, 2017 and September 30, 2016, we recognized stock-based compensation expense of $2.1 million and $1.2 million, respectively.  For the nine months ended September 30, 2017 and September 30, 2016, we recognized stock-based compensation expense of $7.2 million and $3.3 million, respectively.  The three month amount for 2017 includes the $1.8 million related to the GBL RSA accelerated vesting mentioned above.  The nine month amount for 2017 includes the $1.8 million related to the GBL RSAs’ accelerated vesting and the $3.7 million related to the AC RSAs’ accelerated vesting both mentioned above.  All stock-based compensation expense in future periods for grants currently outstanding will relate to GBL RSAs only.

Actual and projected stock-based compensation expense for RSA shares for the years ended December 31, 2016 through December 31, 2024 is as follows (in thousands):

		2016		2017		2018		2019		2020		2021		2022		2023		2024
	Q1	$	1,037	$	699	$	144	$	113	$	72	$	49	$	32	$	17	$	4
	Q2		1,036		4,381		141		113		68		49		32		17		4
	Q3		1,186		2,103		126		101		57		39		24		10		2
	Q4		691		157		113		90		49		32		17		4		-
Full Year		$	3,950	$	7,340	$	524	$	417	$	246	$	169	$	105	$	48	$	10

The total compensation cost related to non-vested RSAs not yet recognized is approximately $1.7 million as of September 30, 2017.

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Investment in Securities, Investment in Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Trading securities [Abstract]
Cost	$ 59,940	$ 51	$ 16
Fair value	59,996	54	16
Available for sale securities [Abstract]
Cost	21,418	18,838	17,649
Fair value	41,429	37,231	32,873
Total investments in securities [Abstract]
Cost	81,358	18,889	17,665
Fair value	101,425	37,285	32,889
US Government Obligations [Member]
Trading securities [Abstract]
Cost	59,905	0	0
Fair value	59,954	0	0
Common Stock [Member]
Trading securities [Abstract]
Cost	24	51	16
Fair value	31	54	16
Available for sale securities [Abstract]
Cost	21,319	18,739	17,649
Fair value	41,315	37,131	32,873
Mutual Funds [Member]
Trading securities [Abstract]
Cost	11	0	0
Fair value	11	0	0
Closed End Funds [Member]
Available for sale securities [Abstract]
Cost	99	99	0
Fair value	$ 114	$ 100	$ 0

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Investment in Securities, Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Investment in Securities [Abstract]
Investment sold, not yet purchased	$ 0	$ 0	$ 0
Investment [Line Items]
Restricted investments in securities held in escrow account	59,954	$ 0	$ 0
Convertible Notes [Member]
Investment [Line Items]
Restricted investments in securities held in escrow account	59,954
US Government Obligations [Member] | Convertible Notes [Member]
Investment [Line Items]
Restricted investments in securities held in escrow account	$ 59,900

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Investment in Securities, Reclassifications Out of Accumulated Other Comprehensive Income into Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gain from investments	$ 2,841	$ 55	$ 2,867	$ 518
Other operating expenses/net gain from investments	5,429	5,681	15,900	14,993
Income before income taxes	20,434	45,347	98,002	131,658
Income tax provision	(3,834)	(14,486)	(33,688)	(47,229)
Net income attributable to GAMCO Investors, Inc.'s shareholders	16,600	30,861	64,314	84,429
Amount Reclassified from AOCI [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	2,841	7	2,875	163
Income tax provision	(1,051)	(3)	(1,064)	(61)
Net income attributable to GAMCO Investors, Inc.'s shareholders	1,790	4	1,811	102
Realized Gain on Sale of AFS Securities [Member] | Amount Reclassified from AOCI [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gain from investments	20	0	20	4
Realized Gain on Donation of AFS Securities [Member] | Amount Reclassified from AOCI [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other operating expenses/net gain from investments	$ 2,821	$ 7	$ 2,855	$ 159

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Investment in Securities, Summary of Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Cost	$ 21,418,000	$ 17,649,000	$ 21,418,000	$ 17,649,000	$ 18,838,000
Gross unrealized gains	20,011,000	15,224,000	20,011,000	15,224,000	18,393,000
Gross unrealized losses	0	0	0	0	0
Fair value	41,429,000	32,873,000	41,429,000	32,873,000	37,231,000
Changes in net unrealized gain (loss), net of tax	2,321,000	506,000	1,019,000	323,000
Proceeds from sale of investment available for sale	321,000	0	321,000	408,000
Gross realized gains on sale of investment available for sale	20,000	0	20,000	4,000
Gross realized losses on sale of investment available for sale	0	0	0	0
Common Stock [Member]
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Cost	21,319,000	17,649,000	21,319,000	17,649,000	18,739,000
Gross unrealized gains	19,996,000	15,224,000	19,996,000	15,224,000	18,392,000
Gross unrealized losses	0	0	0	0	0
Fair value	41,315,000	32,873,000	41,315,000	32,873,000	37,131,000
Closed-end Funds [Member]
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Cost	99,000	0	99,000	0	99,000
Gross unrealized gains	15,000		15,000		1,000
Gross unrealized losses	0		0		0
Fair value	$ 114,000	$ 0	$ 114,000	$ 0	$ 100,000

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Investment in Securities, Investments Classified as Available for Sale in Unrealized Loss Position (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) Investment	Sep. 30, 2016 USD ($) Investment	Sep. 30, 2017 USD ($) Investment	Sep. 30, 2016 USD ($) Investment	Dec. 31, 2016 Investment
Schedule of Available-for-sale Securities [Line Items]
Number of investment holding in loss positions | Investment	0	0	0	0	0
Losses on available for sale securities deemed to be other than temporary | $	$ 0	$ 0	$ 0	$ 0

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Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Investments in securities [Abstract]
Total investments in securities	$ 101,425	$ 37,285	$ 32,889
Recurring Basis [Member]
Assets [Abstract]
Cash equivalents	60,702	39,638	33,576
Investments in securities [Abstract]
AFS - Common stocks	41,315	37,131	32,873
AFS - Closed-end Funds	114	100
US Government Obligations	59,954
Trading - Common stocks	31	54	16
Trading - Mutual funds	11
Total investments in securities	101,425	37,285	32,889
Total assets at fair value	162,127	76,923	66,465
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Cash equivalents	60,702	39,638	33,576
Investments in securities [Abstract]
AFS - Common stocks	41,315	37,131	32,873
AFS - Closed-end Funds	114	100
US Government Obligations	59,954
Trading - Common stocks	31	54	16
Trading - Mutual funds	11
Total investments in securities	101,425	37,285	32,889
Total assets at fair value	162,127	76,923	66,465
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Cash equivalents	0	0	0
Investments in securities [Abstract]
AFS - Common stocks	0	0	0
AFS - Closed-end Funds	0	0
US Government Obligations	0
Trading - Common stocks	0	0	0
Trading - Mutual funds	0
Total investments in securities	0	0	0
Total assets at fair value	0	0	0
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Cash equivalents	0	0	0
Investments in securities [Abstract]
AFS - Common stocks	0	0	0
AFS - Closed-end Funds	0	0
US Government Obligations	0
Trading - Common stocks	0	0	0
Trading - Mutual funds	0
Total investments in securities	0	0	0
Total assets at fair value	$ 0	$ 0	$ 0

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Effective income tax rate	18.80%	31.90%	34.40%	35.90%
Reversal of tax accruals	$ (3.6)	$ (2.6)
Tax benefit related to charitable contribution	$ (1.0)
ASU 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in effective income tax rate over prior period	3.60%		1.00%

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Basic [Abstract]
Income from continuing operations			$ 64,314	$ 84,429
Net income attributable to GAMCO Investors, Inc.'s shareholders	$ 16,600	$ 30,861	$ 64,314	$ 84,429
Weighted average share outstanding (in shares)	28,926	29,185	28,930	29,222
Basic net income per share attributable to GAMCO Investors, Inc.'s shareholders (in dollars per share)	$ 0.57	$ 1.06	$ 2.22	$ 2.89
Diluted [Abstract]
Net income attributable to GAMCO Investors, Inc.'s shareholders	$ 16,600	$ 30,861	$ 64,314	$ 84,429
Income from continuing operations			64,314	84,429
Add interest on convertible notes, net of management fee and taxes	696	387	2,192	387
Total income attributable to GAMCO Investors, Inc.'s shareholders	$ 17,296	$ 31,248	$ 66,506	$ 84,816
Weighted average share outstanding (in shares)	28,926	29,185	28,930	29,222
Restricted stock awards	247	221	214	253
Assumed conversion of convertible notes (in shares)	2,000	1,000	2,000	336
Total (in shares)	31,173	30,406	31,144	29,811
Diluted net income per share attributable to GAMCO Investors, Inc.'s shareholders (in dollars per share)	$ 0.55	$ 1.03	$ 2.14	$ 2.85

XML

Debt (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions					3 Months Ended		9 Months Ended
	Oct. 03, 2017	Sep. 30, 2017	Aug. 15, 2016	May 31, 2011	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Nov. 30, 2015	May 04, 2015
Long-term debt [Abstract]
Carrying value		$ 204,000			$ 204,000	$ 233,941	$ 204,000	$ 233,941	$ 233,955
Restricted cash		95			95	0	95	0	0
Restricted investments in securities		59,954			59,954	0	59,954	0	0
Prepayment of debt							30,000	150,000
Maximum amount of debt and equity to be issued under shelf registration											$ 500,000
Amount available for debt and equity issuance under shelf registration		500,000			500,000		500,000
Level 2 [Member]
Long-term debt [Abstract]
Fair value		208,077			208,077	238,592	208,077	238,592	237,013
4.5% Convertible Notes [Member]
Long-term debt [Abstract]
Carrying value		$ 109,862			$ 109,862	$ 109,826	$ 109,862	$ 109,826	$ 109,835
Debt instrument, interest rate		4.50%	4.50%		4.50%	4.50%	4.50%	4.50%	4.50%
Debt instrument, term							5 years
Percentage of assets owned in escrow account							53.00%
Cash deposited into escrow account		$ 60,000					$ 60,000
Restricted cash		95			$ 95		95
Restricted investments in securities		59,954			59,954		$ 59,954
Face value of debt			$ 110,000
Debt instrument, maturity date							Aug. 15, 2021
Debt issuance costs		138	$ 174		138	$ 174	$ 138	$ 174	$ 165
4.5% Convertible Notes [Member] | Common Class A [Member]
Long-term debt [Abstract]
Debt instrument, conversion price (in dollars per share)			$ 55.00
Debt instrument, shares issuable in conversion (in shares)			2
4.5% Convertible Notes [Member] | Level 2 [Member]
Long-term debt [Abstract]
Fair value		111,574			111,574	112,172	$ 111,574	112,172	111,525
4.5% Convertible Notes [Member] | GGCP Holdings LLC [Member]
Long-term debt [Abstract]
Equity method investment, ownership percentage			63.00%
Period of interest included in initial deposit							6 months
Cash deposited into escrow account			$ 110,000
Cash withdrawn from escrow account							$ 60,000
AC 4% PIK Note [Member]
Long-term debt [Abstract]
Carrying value		$ 70,000			$ 70,000	100,000	$ 70,000	100,000	100,000
Debt instrument, interest rate		4.00%			4.00%		4.00%			4.00%
Face value of debt										$ 250,000
Debt instrument, maturity date							Nov. 30, 2020
Prepayment of debt					$ 10,000	150,000	$ 30,000	150,000
AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2019 [Member]
Long-term debt [Abstract]
Carrying value		$ 20,000			20,000		20,000
AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2019 [Member] | Subsequent Event [Member]
Long-term debt [Abstract]
Carrying value	$ 50,000
Debt instrument, interest rate	4.00%
Debt instrument, maturity date	Nov. 30, 2020
Prepayment of debt	$ 20,000
AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2020 [Member]
Long-term debt [Abstract]
Carrying value		50,000			50,000		50,000
AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2020 [Member] | Subsequent Event [Member]
Long-term debt [Abstract]
Carrying value	$ 50,000
Debt instrument, maturity date	Nov. 30, 2020
Prepayment of debt	$ 20,000
AC 4% PIK Note [Member] | Level 2 [Member]
Long-term debt [Abstract]
Fair value		71,755			71,755	101,347	71,755	101,347	100,930
5.875% Senior Notes [Member]
Long-term debt [Abstract]
Carrying value		$ 24,138			$ 24,138	$ 24,115	$ 24,138	$ 24,115	$ 24,120
Debt instrument, interest rate		5.875%		5.875%	5.875%	5.875%	5.875%	5.875%	5.875%
Debt instrument, term							10 years
Face value of debt				$ 100,000
Debt instrument, maturity date							Jun. 01, 2021
Debt issuance costs		$ 87			$ 87	$ 110	$ 87	$ 110	$ 105
Debt redemption price				101.00%
5.875% Senior Notes [Member] | Level 2 [Member]
Long-term debt [Abstract]
Fair value		$ 24,748			$ 24,748	$ 25,073	$ 24,748	$ 25,073	$ 24,558

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Stockholders' Equity, Dividends (Details) - $ / shares shares in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Stockholders' Equity [Abstract]
Shares outstanding (in shares)	29.2			29.5			29.2	29.5	29.5
Dividends Payable [Line Items]
Dividends declared (in dollars per share)	$ 0.02			$ 0.02			$ 0.06	$ 0.06
Quarterly Dividend [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)							$ 0.06	$ 0.06
Quarterly Dividend Declared in Q1 2017 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)			$ 0.02
Dividend payment date			Mar. 14, 2017
Dividend record date			Mar. 28, 2017
Quarterly Dividend Declared in Q2 2017 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)		$ 0.02
Dividend payment date		Jun. 27, 2017
Dividend record date		Jul. 11, 2017
Quarterly Dividend Declared in Q3 2017 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)	$ 0.02
Dividend payment date	Sep. 12, 2017
Dividend record date	Sep. 26, 2017
Quarterly Dividend Declared in Q1 2016 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)						$ 0.02
Dividend payment date						Mar. 15, 2016
Dividend record date						Mar. 29, 2016
Quarterly Dividend Declared in Q2 2016 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)					$ 0.02
Dividend payment date					Jun. 14, 2016
Dividend record date					Jun. 28, 2016
Quarterly Dividend Declared in Q3 2016 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)				$ 0.02
Dividend payment date				Sep. 13, 2016
Dividend record date				Sep. 27, 2016

XML

Stockholders' Equity, Voting Rights, Stock Award and Incentive Plan (Details) $ / shares in Units, $ in Thousands				3 Months Ended							9 Months Ended		12 Months Ended
	Aug. 07, 2017 shares	Jun. 01, 2017 shares	Nov. 30, 2015 shares	Sep. 30, 2017 USD ($) $ / shares shares	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) $ / shares shares	Sep. 30, 2016 USD ($) $ / shares shares	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Sep. 30, 2017 USD ($) VoteperShare Plan $ / shares shares	Sep. 30, 2016 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares
Stock Award and Incentive Plan [Abstract]
Number of incentive plans | Plan											2
Incremental stock-based compensation expenses due to accelerated vesting				$ 1,800							$ 1,800
Actual and projected stock based compensation expense for RSA shares and options [Abstract]
Actual stock based compensation expense				2,103	$ 4,381	$ 699	$ 691	$ 1,186	$ 1,036	$ 1,037	7,181	$ 3,258	$ 3,950
2017				7,340							7,340
2018				524							524
2019				417							417
2020				246							246
2021				169							169
2022				105							105
2023				48							48
2024				10							10
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Compensation cost related to non-vested options not yet recognized				$ 1,700							$ 1,700
Stock Options [Member] | Maximum [Member]
Stock Award and Incentive Plan [Abstract]
Term of nonqualified stock options											10 years
Restricted Stock Awards [Member]
Stock Award and Incentive Plan [Abstract]
RSA shares outstanding (in shares) | shares				164,050			424,340	427,290			164,050	427,290	424,340
Average weighted grant price (in dollars per share) | $ / shares				$ 66.84			$ 65.74	$ 65.72			$ 66.84	$ 65.72	$ 65.74
Number of shares with accelerated vesting (in shares) | shares	201,120
Restricted Stock Awards [Member] | ASU 2016-09 [Member]
Stock Award and Incentive Plan [Abstract]
Tax benefit from stock based compensation expenses				$ (700)							$ (1,000)
Restricted Stock Awards [Member] | Vesting in Three Years from Date of Grant [Member]
Stock Award and Incentive Plan [Abstract]
Award vesting percentage											30.00%
Award vesting period											3 years
Restricted Stock Awards [Member] | Vesting in Five Years from Date of Grant [Member]
Stock Award and Incentive Plan [Abstract]
Award vesting percentage											70.00%
Award vesting period											5 years
Restricted Stock Awards [Member] | Vesting in Year Four from Date of Grant [Member]
Stock Award and Incentive Plan [Abstract]
Award vesting percentage											10.00%
Restricted Stock Awards [Member] | Vesting in Year Five from Date of Grant [Member]
Stock Award and Incentive Plan [Abstract]
Award vesting percentage											10.00%
Restricted Stock Awards [Member] | Vesting in Year Six from Date of Grant [Member]
Stock Award and Incentive Plan [Abstract]
Award vesting percentage											10.00%
Restricted Stock Awards [Member] | Vesting in Year Seven from Date of Grant [Member]
Stock Award and Incentive Plan [Abstract]
Award vesting percentage											10.00%
Restricted Stock Awards [Member] | Vesting in Year Eight from Date of Grant [Member]
Stock Award and Incentive Plan [Abstract]
Award vesting percentage											10.00%
Restricted Stock Awards [Member] | Vesting in Year Nine from Date of Grant [Member]
Stock Award and Incentive Plan [Abstract]
Award vesting percentage											10.00%
Restricted Stock Awards [Member] | Vesting in Year Ten from Date of Grant [Member]
Stock Award and Incentive Plan [Abstract]
Award vesting percentage											10.00%
Restricted Stock Awards [Member] | AC [Member]
Stock Award and Incentive Plan [Abstract]
Number of shares with accelerated vesting (in shares) | shares		420,240
Incremental stock-based compensation expenses due to accelerated vesting				0							$ 3,700
Q1 [Member]
Actual and projected stock based compensation expense for RSA shares and options [Abstract]
2018				144							144
2019				113							113
2020				72							72
2021				49							49
2022				32							32
2023				17							17
2024				4							4
Q2 [Member]
Actual and projected stock based compensation expense for RSA shares and options [Abstract]
2018				141							141
2019				113							113
2020				68							68
2021				49							49
2022				32							32
2023				17							17
2024				4							4
Q3 [Member]
Actual and projected stock based compensation expense for RSA shares and options [Abstract]
2018				126							126
2019				101							101
2020				57							57
2021				39							39
2022				24							24
2023				10							10
2024				2							2
Q4 [Member]
Actual and projected stock based compensation expense for RSA shares and options [Abstract]
2017				157							157
2018				113							113
2019				90							90
2020				49							49
2021				32							32
2022				17							17
2023				4							4
2024				$ 0							$ 0
Class A [Member]
Voting Rights [Abstract]
Number of votes per share | VoteperShare											1
Class A [Member] | Maximum [Member]
Stock Award and Incentive Plan [Abstract]
Number of shares reserved for issuance under each plan (in shares) | shares				7,500,000							7,500,000
Class A [Member] | Restricted Stock Awards [Member] | AC [Member]
Stock Award and Incentive Plan [Abstract]
Number of shares of common stock issued for each share of Gamco common stock in spin-off (in shares) | shares			1
Class B [Member]
Voting Rights [Abstract]
Number of votes per share | VoteperShare											10

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Stockholders' Equity, Stock Repurchase Program and Shelf Registration (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended		225 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Aug. 03, 2017	May 03, 2017	May 04, 2015
Stock Repurchase Program [Abstract]
Incremental Class A shares authorized to buyback (in shares)						425,352	500,000
Shelf Registration [Abstract]
Maximum amount of debt and equity to be issued under shelf registration								$ 500
Amount available for debt and equity issuance under shelf registration	$ 500		$ 500		$ 500
Common Class A [Member] | Stock Repurchase Program [Member]
Stock Repurchase Program [Abstract]
Shares repurchased (in shares)	131,480	223,811	290,300	266,846	10,191,640
Average price per share of repurchased shares (in dollars per share)	$ 29.42	$ 31.50	$ 29.71	$ 31.41	$ 43.90
Share available under program to repurchase (in shares)	868,520		868,520		868,520

XML

Related Party Transactions (Details) - Convertible Notes [Member] - USD ($)			1 Months Ended	9 Months Ended
	Sep. 30, 2017	Aug. 15, 2016	Aug. 31, 2016	Sep. 30, 2017
Related Party Transaction [Line Items]
Annual costs of setting up escrow account paid				$ 55,000
Percentage of assets owned in escrow account				53.00%
Cash deposited into escrow account	$ 60,000,000			$ 60,000,000
GGCP [Member]
Related Party Transaction [Line Items]
Deposited transaction amount			$ 112,500,000
Period of interest included in initial deposit				6 months
Cash deposited into escrow account		$ 110,000,000
Cash withdrawn from escrow account				$ 60,000,000

XML

Identifiable Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Impairment on intangible assets	$ 0.0	$ 0.0
Investment Advisory Contract [Member] | Gabelli Enterprise Mergers and Acquisitions Fund [Member]
Finite-Lived Intangible Assets [Line Items]
Identifiable intangible asset	1.9	1.9	$ 1.9
Investment Advisory Contract [Member] | Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. [Member]
Finite-Lived Intangible Assets [Line Items]
Identifiable intangible asset	$ 1.6	$ 1.6	$ 1.6

XML

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended		9 Months Ended
	Nov. 07, 2017	Oct. 03, 2017	Nov. 07, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Aug. 03, 2017	May 03, 2017	Dec. 31, 2016	Nov. 30, 2015
Subsequent Event [Line Items]
Dividends declared (in dollars per share)				$ 0.02	$ 0.02	$ 0.06	$ 0.06
Prepayment of debt						$ 30,000	$ 150,000
Principal amount outstanding				$ 204,000	$ 233,941	$ 204,000	$ 233,941			$ 233,955
Shares available to be repurchased under the plan (in shares)								425,352	500,000
Quarterly Dividend [Member]
Subsequent Event [Line Items]
Dividends declared (in dollars per share)						$ 0.06	$ 0.06
Quarterly Dividend Declared in Q3 2017 [Member]
Subsequent Event [Line Items]
Dividends declared (in dollars per share)				$ 0.02
Dividends payable date				Sep. 12, 2017
Dividends record date				Sep. 26, 2017
AC 4% PIK Note [Member]
Subsequent Event [Line Items]
Prepayment of debt				$ 10,000	150,000	$ 30,000	$ 150,000
Principal amount outstanding				$ 70,000	$ 100,000	$ 70,000	$ 100,000			$ 100,000
Debt instrument, interest rate				4.00%		4.00%					4.00%
Debt instrument, maturity date						Nov. 30, 2020
AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2020 [Member]
Subsequent Event [Line Items]
Principal amount outstanding				$ 20,000		$ 20,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Stock repurchased (in shares)			31,100
Average price per share of repurchased shares (in dollars per share)			$ 29.11
Subsequent Event [Member] | Quarterly Dividend Declared in Q3 2017 [Member]
Subsequent Event [Line Items]
Dividends declared (in dollars per share)	$ 0.02
Dividends declared date	Nov. 07, 2017
Dividends payable date	Jan. 10, 2018
Dividends record date	Dec. 27, 2017
Subsequent Event [Member] | AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2020 [Member]
Subsequent Event [Line Items]
Prepayment of debt		$ 20,000
Principal amount outstanding		$ 50,000
Debt instrument, interest rate		4.00%
Debt instrument, maturity date		Nov. 30, 2020