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, 2016

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, or a smaller reporting company.  See the definitions of ''large accelerated filer", "accelerated filer", and "smaller reporting company'' in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer 	Accelerated filer 
Non-accelerated filer 	Smaller reporting company 

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, 2016
Class A Common Stock, .001 par value	(Including 424,840 restricted stock awards)	10,401,705
Class B Common Stock, .001 par value		19,093,311

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, 2016 and 2015
	- Nine Months Ended September 30, 2016 and 2015
	Condensed Consolidated Statements of Comprehensive Income:
	- Three Months Ended September 30, 2016 and 2015
	- Nine Months Ended September 30, 2016 and 2015
	Condensed Consolidated Statements of Financial Condition:
	- September 30, 2016
	- December 31, 2015
	- September 30, 2015
	Condensed Consolidated Statements of Equity:
	- Nine Months Ended September 30, 2016 and 2015
	Condensed Consolidated Statements of Cash Flows:
	- Nine Months Ended September 30, 2016 and 2015
	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,
	2016			2015			2016			2015
Revenues
Investment advisory and incentive fees	$	75,952		$	79,900		$	219,594		$	251,269
Distribution fees and other income		11,769			12,260			33,456			39,390
Total revenues		87,721			92,160			253,050			290,659
Expenses
Compensation		21,233			34,022			62,130			109,177
Management fee		1,163			4,056			3,376			12,385
Distribution costs		11,568			12,363			32,786			40,093
Other operating expenses		5,681			4,443			14,993			14,157
Total expenses		39,645			54,884			113,285			175,812
Operating income		48,076			37,276			139,765			114,847
Other income (expense)
Net gain from investments		55			72			518			220
Interest and dividend income		371			553			1,104			1,584
Interest expense		(3,155	)		(1,815	)		(9,729	)		(5,575	)
Total other expense, net		(2,729	)		(1,190	)		(8,107	)		(3,771	)
Income before income taxes		45,347			36,086			131,658			111,076
Income tax provision		14,486			13,635			47,229			41,702
Income from continuing operations		30,861			22,451			84,429			69,374
Loss from discontinued operations, net of taxes		-			(7,482	)		-			(5,528	)
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	30,861		$	14,969		$	84,429		$	63,846
Net income/(loss) attributable to GAMCO Investors, Inc.'s shareholders
per share:
Basic - Continuing operations	$	1.06		$	0.90		$	2.89		$	2.77
Basic - Discontinued operations		-			(0.30	)		-			(0.22	)
Basic - Total	$	1.06		$	0.60		$	2.89		$	2.55
Diluted - Continuing operations	$	1.03		$	0.89		$	2.85		$	2.74
Diluted - Discontinued operations		-			(0.30	)		-			(0.22	)
Diluted - Total	$	1.03		$	0.59		$	2.85		$	2.52
Weighted average shares outstanding:
Basic		29,185			24,947			29,222			25,047
Diluted		30,406			25,241			29,811			25,337
Dividends declared:	$	0.02		$	0.07		$	0.06		$	0.21

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,
	2016				2015				2016				2015
Net income		$	30,861			$	14,969			$	84,429			$	63,846
Other comprehensive gain/(loss), net of tax:
Foreign currency translation			(28	)			(35	)			(121	)			(22	)
Net unrealized gain/(loss) on securities available for sale (a)			506				(6,696	)			323				(7,417	)
Other comprehensive gain/(loss)			478				(6,731	)			202				(7,439	)
Comprehensive income attributable to GAMCO Investors, Inc.		$	31,339			$	8,238			$	84,631			$	56,407

(a) Net of income tax expense/(benefit) of $297, ($3,932), $190 and ($4,356), 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,
	2016			2015			2015
ASSETS
Cash and cash equivalents	$	33,852		$	13,719		$	62,561
Investments in securities		32,889			32,975			34,095
Receivable from brokers		344			1,091			1,157
Investment advisory fees receivable		26,606			31,048			26,638
Receivable from affiliates		4,745			5,041			27,957
Income tax receivable and deferred tax asset		10,634			6,787			2,409
Other assets		12,198			13,238			10,776
Assets of discontinued operations		-			-			706,523
Total assets	$	121,268		$	103,899		$	872,116
LIABILITIES AND EQUITY
Payable to brokers	$	10,203		$	12		$	533
Income taxes payable and deferred tax liabilities		164			4,823			5,963
Capital lease obligation		5,094			5,170			5,191
Compensation payable		31,469			24,426			83,700
Securities sold, not yet purchased		-			129			-
Payable to affiliates		7,679			7,687			153
Accrued expenses and other liabilities		31,801			28,882			32,467
Liabilities of discontinued operations		-			-			66,614
Sub-total		86,410			71,129			194,621
4.5% Convertible note (net of issuance costs of $174) (due August 15, 2021) (Note F)		109,826			-			-
AC 4% PIK Note (due November 30, 2020) (Note F)		100,000			250,000			-
Loan from GGCP (due December 28, 2016) (Note F)		-			35,000			-
5.875% Senior notes (net of issuance costs of $110, $128 and $553, respectively)
(due June 1, 2021) (Note F)		24,115			24,097			99,447
Zero coupon subordinated debentures, Face value: $0.0 million at September 30, 2016,
$0.0 million at December 31, 2015 and $6.9 million at September 30, 2015,
respectively (due December 31, 2015) (Note F)		-			-			6,750
Total liabilities		320,351			380,226			300,818
Redeemable noncontrolling interests from discontinued operations		-			-			6,018
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;
15,480,032, 15,422,901 and 15,387,701 issued, respectively;10,454,392,
10,664,107 and 6,340,992 outstanding, respectively		14			14			14
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized;
24,000,000 shares issued; 19,093,311, 19,156,792 and 19,196,792 shares
outstanding, respectively		19			19			19
Additional paid-in capital		3,135			345			299,769
Retained earnings (deficit)		48,412			(34,224	)		661,415
Accumulated other comprehensive income		9,317			9,115			17,575
Treasury stock, at cost (5,025,640, 4,758,794 and 9,046,709 shares, respectively)		(259,980	)		(251,596	)		(416,147	)
Total GAMCO Investors, Inc. stockholders' equity (deficit)		(199,083	)		(276,327	)		562,645
Noncontrolling interests from discontinued operations		-			-			2,635
Total equity (deficit)		(199,083	)		(276,327	)		565,280
Total liabilities and equity (deficit)	$	121,268		$	103,899		$	872,116

See accompanying notes.

5

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

UNAUDITED

(In thousands)

For the Nine Months Ended September 30, 2015

				GAMCO Investors, Inc. stockholders
											Accumulated
						Additional					Other									Redeemable
	Noncontrolling			Common		Paid-in		Retained			Comprehensive			Treasury						Noncontrolling
	Interests			Stock		Capital		Earnings			Income			Stock			Total			Interests
Balance at December 31, 2014	$	2,734		$	33	$	291,681	$	602,950		$	25,014		$	(394,617	)	$	527,795		$	68,334
Redemptions of redeemable
noncontrolling interests		-			-		-		-			-			-			-			(602	)
Contributions from redeemable
noncontrolling interest		-			-		-		-			-			-			-			1,036
Consolidation of a consolidated
feeder fund and a partnership		-			-		-		-			-			-			-			996
Deconsolidation of offshore
fund		-			-		-		-			-			-			-			(63,256	)
Net income (loss)		(99	)		-		-		63,846			-			-			63,747			(490	)
Net unrealized losses on
securities available for sale,
net of income tax benefit ($4,341)		-			-		-		-			(7,392	)		-			(7,392	)		-
Amount reclassed from
accumulated other
comprehensive income,
net of income tax benefit ($15)		-			-		-		-			(25	)		-			(25	)		-
Foreign currency translation		-			-		-		-			(22	)		-			(22	)		-
Dividends declared
($0.21 per share)		-			-		-		(5,381	)		-			-			(5,381	)		-
Stock based compensation
expense		-			-		6,819		-			-			-			6,819			-
Exercise of stock options
including tax benefit ($102)		-			-		1,269		-			-			-			1,269			-
Purchase of treasury stock		-			-		-		-			-			(21,530	)		(21,530	)		-
Balance at September 30, 2015	$	2,635		$	33	$	299,769	$	661,415		$	17,575		$	(416,147	)	$	565,280		$	6,018

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.

7

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED

(In thousands)

	Nine Months Ended
	September 30,
	2016			2015
Operating activities
Net income	$	84,429		$	63,846
Add: Loss from discontinued operations, net of taxes		-			5,528
Income from continuing operations		84,429			69,374
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		470			466
Stock based compensation expense		3,258			4,923
Deferred income taxes		(3,930	)		(1,902	)
Tax benefit from exercise of stock options		-			102
Foreign currency translation loss		(121	)		(22	)
Cost basis of donated securities		68			31
Net gains on sales of available for sale securities		(4	)		(5	)
Accretion of zero coupon debentures		-			502
Loss on extinguishment of zero coupon debentures		-			310
(Increase) decrease in assets:
Investments in trading securities		223			-
Receivable from affiliates		290			(1,517	)
Receivable from brokers		747			526
Investment advisory fees receivable		4,442			11,090
Income tax receivable and deferred tax assets		(3,847	)		24
Other assets		534			1,617
Increase (decrease) in liabilities:
Payable to affiliates		(8	)		(202	)
Payable to brokers		10,190			522
Income taxes payable and deferred tax liabilities		(1,384	)		(8,349	)
Compensation payable		7,051			52,901
Accrued expenses and other liabilities		2,804			4,470
Total adjustments		20,783			65,487
Net cash provided by operating activities from continuing operations	$	105,212		$	134,861

8

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED (continued)

(In thousands)

	Nine Months Ended
	September 30,
	2016			2015
Investing activities
Purchases of available for sale securities	$	(223	)	$	-
Proceeds from sales of available for sale securities		408			51
Net cash provided by investing activities from continuing operations		185			51
Financing activities
Net cash transferred from AC		-			77,533
Issuance of 4.5% Convertible note		109,826			-
Proceeds from exercise of stock options		-			1,167
Dividends paid		(1,752	)		(5,252	)
Repurchase of Zero coupon subordinated debentures		-			(6,224	)
Purchase of treasury stock		(8,384	)		(21,530	)
Repayment of AC 4% PIK Note		(150,000	)		-
Repayment of loan from GGCP		(35,000	)		-
Amortization of debt issuance costs		18			73
Net cash (used in) provided by financing activities from continuing operations		(85,292	)		45,767
Cash flows of discontinued operations
Net cash provided by operating activities		-			59,154
Net cash used in investing activities		-			(41,464	)
Net cash used in financing activities		-			(148,510	)
Net cash used in discontinued operations		-			(130,820	)
Effect of exchange rates on cash and cash equivalents		28			8
Net increase in cash and cash equivalents		20,133			49,867
Cash and cash equivalents at beginning of period		13,719			12,694
Cash and cash equivalents at end of period	$	33,852		$	62,561
Supplemental disclosures of cash flow information:
Cash paid for interest	$	4,561		$	3,531
Cash paid for taxes	$	55,216		$	49,587

Non-cash activity:

- For the nine months ended September 30, 2016 and September 30, 2015, the Company accrued dividends on restricted stock awards of $41 and $129, 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, 2016

(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, 2015.

Reclassifications

Certain amounts reported for the prior period in the accompanying condensed consolidated financial statements have been reclassified in order to conform to the current period’s presentation.  Assets and liabilities related to the spin-off (“Spin-off”) of Associated Capital Group, Inc. (“AC”) on November 30, 2015 on the Company’s condensed consolidated statement of financial condition as of September 30, 2015 have been reclassified as assets and liabilities of discontinued operations (See Note J. Discontinued Operations for further details).  All assets and liabilities related to discontinued operations are excluded from the footnotes for all periods presented unless otherwise noted.  In addition, the historical results of AC and certain investment partnerships and offshore funds have been reflected in the accompanying consolidated statements of income for the quarter and nine months ended September 30, 2015 as discontinued operations and financial information related to discontinued operations has been excluded from the notes to these interim condensed consolidated financial statements for all periods presented.

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.  The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied.  Early adoption is not permitted.  The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

10

In April 2015, the FASB issued ASU 2015-03, which amends the presentation of debt issuance costs in financial statements.  This amended guidance requires entities to present the cost of debt issuances as a reduction of the related debt rather than as an asset.  This guidance is effective for the Company beginning January 1, 2016.  The Company adopted this guidance retrospectively on January 1, 2016.  As a result, the debt issuance costs related to the 5.875% Senior Notes are now shown net in the liability section on the consolidated statements of financial condition.  At December 31, 2015 and September 30, 2015, the 5.875% Senior Notes are now disclosed net of issuance costs of $128,000 and $553,000, respectively.  These amounts were previously disclosed in other assets on the consolidated statements of financial condition.

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. For public companies, the new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. 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. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

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.  ASU 2016-02 is effective beginning January 1, 2019. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

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.  Early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

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.  For public companies, the ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods.  Early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

B.  Investment in Securities

Investments in securities at September 30, 2016, December 31, 2015 and September 30, 2015 consisted of the following:

	September 30, 2016				December 31, 2015				September 30, 2015
	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
	(In thousands)
Trading securities:
Common stocks	$	16	$	16	$	385	$	368	$	-	$	-
Total trading securities		16		16		385		368		-		-
Available for sale securities:
Common stocks		17,649		32,873		17,898		32,607		13,561		34,095
Total available for sale securities		17,649		32,873		17,898		32,607		13,561		34,095
Total investments in securities	$	17,665	$	32,889	$	18,283	$	32,975	$	13,561	$	34,095

11

Securities sold, not yet purchased at September 30, 2016, December 31, 2015 and September 30, 2015 consisted of the following:

	September 30, 2016						December 31, 2015						September 30, 2015
	Proceeds			Fair Value			Proceeds			Fair Value			Proceeds			Fair Value
Trading securities:	(In thousands)
Common stocks		$	-		$	-		$	123		$	129		$	-		$	-
Total securities sold, not yet purchased		$	-		$	-		$	123		$	129		$	-		$	-

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, 2016 and 2015 (in thousands):

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Three Months Ended September 30,
2016				2015
	$	-			$	-		Net gain from investments	Realized gain on sale of AFS securities
		7				45		Other operating expenses/net gain from investments	Realized gain on donation of AFS securities
		7				45		Income before income taxes
		(3	)			(17	)	Income tax provision
	$	4			$	28		Net income

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Nine Months Ended September 30,
2016				2015
	$	4			$	5		Net gain from investments	Realized gain on sale of AFS securities
		159				80		Other operating expenses/net gain from investments	Realized gain on donation of AFS securities
		163				85		Income before income taxes
		(61	)			(32	)	Income tax provision
	$	102			$	53		Net income

12

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, 2016, December 31, 2015 and September 30, 2015:

	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

	December 31, 2015
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	17,898		$	14,709		$	-		$	32,607
Total available for sale securities		$	17,898		$	14,709		$	-		$	32,607

	September 30, 2015
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	13,561		$	20,534		$	-		$	34,095
Total available for sale securities		$	13,561		$	20,534		$	-		$	34,095

Changes in net unrealized gain, net of taxes, for the three months ended September 30, 2016 of $0.5 million and changes in net unrealized loss, net of taxes, for the three months ended September 30, 2015 of $6.7 million have been included in other comprehensive income, a component of equity, at September 30, 2016 and September 30, 2015, respectively.  There were no sales of investments available for sale for the three months ended September 30, 2016 and September 30, 2015.  Changes in net unrealized gain, net of taxes, for the nine months ended September 30, 2016 of $0.3 million and changes in net unrealized loss, net of taxes, for the nine months ended September 30, 2015 of $7.4 million have been included in other comprehensive income, a component of equity, at September 30, 2016 and September 30, 2015, respectively.  During the nine months ended September 30, 2016 and September 30, 2015, proceeds from the sales of investments available for sale were approximately $408,000 and $51,000, respectively.  For the nine months ended September 30, 2016 and September 30, 2015, gross gains on the sale of investments available for sale amounted to $4,000 and $5,000, 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, 2016 or September 30, 2015.  The basis on which the cost of a security sold is determined using specific identification.  Accumulated other comprehensive income on the consolidated statements of equity is primarily comprised of unrealized gains/losses, net of taxes, for AFS securities.

GBL 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, 2016, December 31, 2015 or September 30, 2015.

For the three and nine months ended September 30, 2016 and 2015 there were no losses on available for sale securities that were deemed to be other than temporary.

13

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, 2016, December 31, 2015 and September 30, 2015 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, 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
Liabilities
Securities sold, not yet purchased:
Trading - Common stocks	$	-	$	-	$	-	$	-
Total securities sold, not yet purchased	$	-	$	-	$	-	$	-

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2015 (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)		2015
Cash equivalents	$	13,538	$	-	$	-	$	13,538
Investments in securities:
AFS - Common stocks		32,607		-		-		32,607
Trading - Common stocks		368		-		-		368
Total investments in securities		32,975		-		-		32,975
Total assets at fair value	$	46,513	$	-	$	-	$	46,513
Liabilities
Securities sold, not yet purchased:
Trading - Common stocks	$	129	$	-	$	-	$	129
Total securities sold, not yet purchased	$	129	$	-	$	-	$	129

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of September 30, 2015 (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)		2015
Cash equivalents	$	62,398	$	-	$	-	$	62,398
Investments in securities:
AFS - Common stocks		34,095		-		-		34,095
Trading - Common stocks		-		-		-		-
Total investments in securities		34,095		-		-		34,095
Total assets at fair value	$	96,493	$	-	$	-	$	96,493
Liabilities
Securities sold, not yet purchased:
Trading - Common stocks	$	-	$	-	$	-	$	-
Total securities sold, not yet purchased	$	-	$	-	$	-	$	-

14

During the quarters ended September 30, 2016 and 2015, there were no transfers between any Level 1 and Level 2 holdings, or between Level 1 and Level 3 holdings.

Other than certain securities which were part of the Spin-off, the Company did not hold any Level 2 or 3 securities at September 30, 2016, December 31, 2015 or September 30, 2015.

D. Income Taxes

The effective tax rate ("ETR) for the three months ended September 30, 2016 and September 30, 2015 was 31.9% and 37.8%, respectively.  The ETR for the nine months ended September 30, 2016 and September 30, 2015 was 35.9% and 37.5%, respectively.  The change in rates is primarily due to the reversal of tax accruals related to the closing out of a state audit.

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)	2016		2015			2016		2015
Basic:
Income from continuing operations	$	30,861	$	22,451		$	84,429	$	69,374
Income from discontinued operations, net of taxes		-		(7,482	)		-		(5,528	)
Net income attributable to GAMCO Investors, Inc.'s
shareholders	$	30,861	$	14,969		$	84,429	$	63,846
Weighted average shares outstanding		29,185		24,947			29,222		25,047
Basic net income per share attributable to GAMCO
Investors, Inc.'s shareholders:
Continuing operations	$	1.06	$	0.90		$	2.89	$	2.77
Discontinued operations		-		(0.30	)		-		(0.22	)
Total	$	1.06	$	0.60		$	2.89	$	2.55
Diluted:
Income from continuing operations	$	30,861	$	22,451		$	84,429	$	69,374
Add interest on convertible note, net of management fee and taxes		387		-			387		-
Total income from continuing operations		31,248		22,451			84,816		69,374
Income from discontinued operations, net of taxes		-		(7,482	)		-		(5,528	)
Net income attributable to GAMCO Investors, Inc.'s
shareholders	$	31,248	$	14,969		$	84,816	$	63,846
Weighted average share outstanding		29,185		24,947			29,222		25,047
Dilutive stock options and restricted stock awards		221		294			253		290
Assumed conversion of convertible note		1,000		-			336		-
Total		30,406		25,241			29,811		25,337
Diluted net income per share attributable to GAMCO
Investors, Inc.'s shareholders:
Continuing operations	$	1.03	$	0.89		$	2.85	$	2.74
Discontinued operations		-		(0.30	)		-		(0.22	)
Total	$	1.03	$	0.59		$	2.85	$	2.52

15

F. Debt

Debt consists of the following:

	September 30, 2016						December 31, 2015						September 30, 2015
	Carrying			Fair Value			Carrying			Fair Value			Carrying			Fair Value
	Value			Level 2			Value			Level 2			Value			Level 2
(In thousands)
4.5 % Convertible note		$	109,826		$	112,172		$	-		$	-		$	-		$	-
AC 4% PIK Note			100,000			101,347			250,000			250,000			-			-
Loan from GGCP			-			-			35,000			35,000			-			-
5.875% Senior notes			24,115			25,073			24,097			24,437			99,447			106,625
0% Subordinated debentures			-			-			-			-			6,750			6,800
Total		$	233,941		$	238,592		$	309,097		$	309,437		$	106,197		$	113,425

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 62% 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.

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 months ended September 30, 2016, the Company prepaid $150 million of principal of the AC 4% PIK Note.  $50 million of the prepayment was applied against the principal amount due on November 30, 2016, $40 million against the principal amount due on November 30, 2017, $30 million against the principal amount due on November 30, 2018, and $30 million against the principal amount due on November 30, 2019.  Of the $100 million principal amount outstanding at September 30, 2016, $10 million is due on November 30, 2017, $20 million is due on November 30, 2018, $20 million is due on November 30, 2019, and $50 million 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.

On November 18, 2015, the Company commenced a tender offer (the “Offer”) to purchase for cash up to $100 million aggregate principal amount of the Senior Notes at a price of 101% of the principal amount.  $75.8 million of face value Senior Notes were tendered upon the expiration of the Offer.  At September 30, 2016, December 31, 2015 and September 30, 2015, the debt was recorded at its face value, net of issuance costs, of $24.1 million, $24.1 million and $99.4 million, respectively.

16

Loan from GGCP

In connection with the Offer, the Company borrowed $35.0 million from GGCP. The loan has a term of one year and bears interest at 90-day LIBOR plus 3.25%, reset and payable quarterly.  On March 18, 2016, the Company paid back $15.0 million of the loan.  During the second quarter of 2016 the Company paid back the remaining $20.0 million of the loan.  At December 31, 2015, the debt was recorded at its face value of $35.0 million.

Zero coupon Subordinated debentures due December 31, 2015

On December 31, 2010, the Company issued $86.4 million in par value of five year zero coupon subordinated debentures due December 31, 2015 ("Debentures") to its shareholders of record on December 15, 2010 through the declaration of a special dividend of $3.20 per share. The Debentures have a par value of $100 and are callable at the option of the Company, in whole or in part, at any time or from time to time, at a redemption price equal to 100% of the principal amount of the Debentures to be redeemed. During the three and nine month periods ended September 30, 2015 the Company repurchased 16 Debentures and 62,242 Debentures, respectively, having a face value of $1,600 and $6.2 million, respectively.  The redemptions were accounted for as extinguishments of debt and resulted in losses of less than $1,000 and $310,000, respectively, which was included in net gain from investments on the condensed consolidated statements of income.  The debt was being accreted to its face value using the effective rate on the date of issuance of 7.45%.  At September 30, 2015, the debt was recorded at its accreted value of  $6.8 million. The debt matured on December 31, 2015 and was fully paid at that time.

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.

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, 2016, $500 million is available on the shelf.

G. Stockholders' Equity

Shares outstanding were 29.5 million, 29.8 million and 25.5 million on September 30, 2016, December 31, 2015 and September 30, 2015, respectively.

Dividends

	Payment	Record
	Date	Date	Amount
Three months ended March 31, 2016	March 29, 2016	March 15, 2016	$	0.02
Three months ended June 30, 2016	June 28, 2016	June 14, 2016		0.02
Three months ended September 30, 2016	September 27, 2016	September 13, 2016		0.02
Nine months ended September 30, 2016			$	0.06
Three months ended March 31, 2015	March 31, 2015	March 17, 2015	$	0.07
Three months ended June 30, 2015	June 30, 2015	June 16, 2015		0.07
Three months ended September 30, 2015	September 29, 2015	September 15, 2015		0.07
Nine months ended September 30, 2015			$	0.21

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.

17

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 3.5 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, 2016, December 31, 2015 and September 30, 2015, there were 427,290 RSA shares, 553,100 RSA shares and 688,550 RSA shares outstanding, respectively, that were previously issued at an average weighted grant price of $65.72, $64.02 and $67.34, respectively.  These RSA grants occurred prior to the spin-off of Associated Capital.  On November 30, 2015, pursuant to the spin-off, all RSA grant holders received shares of Associated Capital’s Class A common stock as a result of their ownership of their GAMCO unvested RSAs (one share of Associated Capital 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.

For the three months ended September 30, 2016 and September 30, 2015, we recognized stock-based compensation expense of $1.2 million and $1.6 million, respectively.  For the nine months ended September 30, 2016 and September 30, 2015, we recognized stock-based compensation expense of $3.3 million and $4.9 million, respectively.  Actual and projected stock-based compensation expense for RSA shares for the years ended December 31, 2015 through December 31, 2024 (based on awards currently issued or granted) is as follows (in thousands):

		2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
	Q1	$	1,639	$	1,037	$	685	$	464	$	365		219		145		93		48		7
	Q2		1,640		1,036		685		453		365		204		145		93		48		7
	Q3		1,644		1,186		602		402		323		169		114		66		24		5
	Q4		4,945		691		520		366		295		145		93		48		7		-
Full Year		$	9,868	$	3,950	$	2,492	$	1,685	$	1,348		737		497		300		127		19

The total compensation cost related to non-vested RSAs not yet recognized is approximately $7.9 million as of September 30, 2016.  There were no options exercised for the three or nine months ended September 30, 2016.  For both the three and nine months ended September 30, 2015 proceeds from the exercise of 26,000 stock options were $1.2 million resulting in a tax benefit to GAMCO of $102,000.

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.  For the three months ended September 30, 2016 and September 30, 2015, the Company repurchased 223,811 shares and 172,007 shares, respectively, at an average price per share of $31.50 and $61.11, respectively.  For the nine months ended September 30, 2016 and September 30, 2015, the Company repurchased 266,846 shares and 321,488 shares, respectively, at an average price per share of $31.41 and $66.96, respectively.  From the inception of the program through September 30, 2016, 9,819,499 shares have been repurchased at an average price of $44.44 per share.  At September 30, 2016, the total shares available under the program to be repurchased in the future were 315,309.

H. 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, 2016, December 31, 2015 and September 30, 2015. 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 2017. 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, 2016 and December 31, 2015.  The advisory contracts for the Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. are both next up for renewal in November 2017. 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, 2016 or September 30, 2015, and as such there was no impairment analysis performed or charge recorded.

18

I. 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, 2016.

J.  Discontinued Operations

As a result of the Spin-off, the results of AC’s operations through the Spin-off Date, as well as transaction costs related to the Spin-off, have been classified in the condensed consolidated statements of income as discontinued operations.  There was no gain or loss on the Spin-off for the Company, and it was a tax-free spin-off to GAMCO’s shareholders.

The three and nine months ended September 30, 2015 results include $0 and $1.5 million, respectively, in costs incurred with respect to the Spin-off and are included in Other operating expenses below.  Operating results for the period from January 1, 2015 through September 30, 2015 is summarized below:

	Three Months Ended			Nine Months Ended
	September 30, 2015			September 30, 2015
Revenues
Investment advisory and incentive fees	$	2,560		$	6,954
Distribution fees and other income		41			276
Institutional research services		2,446			7,278
Total revenues		5,047			14,508
Expenses
Compensation		5,079			16,555
Stock based compensation		630			1,895
Management fee		(1,374	)		(1,025	)
Distribution costs		(19	)		(82	)
Other operating expenses		1,811			6,922
Total expenses		6,127			24,265
Operating loss		(1,080	)		(9,757	)
Other income (expense)
Net gain from investments		(11,539	)		(834	)
Interest and dividend income		551			2,303
Interest expense		(322	)		(984	)
Total other income (expense), net		(11,310	)		485
Loss from discontinued operations before income taxes		(12,390	)		(9,272	)
Income tax benefit		(4,390	)		(3,155	)
Loss from discontinued operations, net of taxes		(8,000	)		(6,117	)
Net loss attributable to noncontrolling interests		(518	)		(589	)
Net loss attributable to GAMCO Investors, Inc.'s discontinued operations, net of taxes	$	(7,482	)	$	(5,528	)

19

The assets and liabilities of AC have been classified in the consolidated statement of financial condition as of September 30, 2015 as assets and liabilities of discontinued operations and consist of the following:

	September 30, 2015
Cash and cash equivalents	$	363,055
Investments in securities		92,822
Investments in sponsored registered investment companies		115,046
Investments in partnerships		101,025
Receivable from brokers		51,761
Investment advisory fees receivable		1,991
Receivable from affiliates		(27,957	)
Income tax receivable		-
Other assets		8,780
Total assets of discontinued operations		706,523
Payable to brokers		48,541
Income taxes payable and deferred tax liabilities		4,566
Compensation payable		5,047
Securities sold, not yet purchased		5,577
Payable to affiliates		(153	)
Mandatorily redeemable noncontrolling interests		1,257
Accrued expenses and other liabilities		1,779
Total liabilities of discontinued operations		66,614
Redeemable noncontrolling interests from discontinued
operations		6,018
Noncontrolling interests from discontinued operations		2,635
Net assets of discontinued operations	$	631,256

K. Subsequent Events

On November 4, 2016, the Board of Directors declared its regular quarterly dividend of $0.02 per share to all of its shareholders, payable on December 27, 2016 to shareholders of record on December 13, 2016.

From October 1, 2016 to November 4, 2016, the Company repurchased 60,237 shares at $29.06 per share.

20

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 $39.6 billion as of September 30, 2016, an increase of $0.3 billion, or 0.8%, from June 30, 2016 of $39.3 billion and an increase of $1.1 billion, or 2.9% from the September 30, 2015 AUM of $38.5 billion.  The third quarter 2016 activity consisted of net cash outflows of $0.5 billion, $1.0 billion of market appreciation and recurring distributions, net of reinvestments, from open-end and closed-end funds of $0.2 billion.  Average total AUM was $39.9 billion in the 2016 quarter versus $41.6 billion in the prior year period, a decrease of 4.1%.  Average AUM in our open-end equity funds, a key driver to our investment advisory fees, was $14.0 billion in the third quarter of 2016, falling 7.9% from the 2015 quarter average AUM of $15.2 billion.

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, 2016, assets under management with incentive based fees were $2.4 billion, the same as June 30, 2016 and 14.3% lower than the $2.8 billion on September 30, 2015. The Company reported Assets Under Management as follows (in millions):

21

Table I: Fund Flows - 3rd Quarter 2016

								Fund
			Market					distributions,
	June 30,		appreciation/		Net cash			net of			September 30,
	2016		(depreciation)		flows			reinvestments			2016
Equities:
Open-end Funds	$	13,981	$	259	$	(416	)	$	(25	)	$	13,799
Closed-end Funds		6,917		131		257			(127	)		7,178
Institutional & PWM - direct		13,326		429		(510	)		-			13,245
Institutional & PWM - sub-advisory		3,459		186		(103	)		-			3,542
SICAV		40		1		1			-			42
Total Equities		37,723		1,006		(771	)		(152	)		37,806
Fixed Income:
Money-Market Fund		1,518		1		219			-			1,738
Institutional & PWM		32		-		5			-			37
Total Fixed Income		1,550		1		224			-			1,775
Total Assets Under Management	$	39,273	$	1,007	$	(547	)	$	(152	)	$	39,581

Table II: Fund Flows - Year to date September 2016

								Fund
			Market					distributions,
	December 31,		appreciation/		Net cash			net of			September 30,
	2015		(depreciation)		flows			reinvestments			2016
Equities:
Open-end Funds	$	13,811	$	1,204	$	(1,170	)	$	(46	)	$	13,799
Closed-end Funds		6,492		619		437			(370	)		7,178
Institutional & PWM - direct		13,366		904		(1,025	)		-			13,245
Institutional & PWM - sub-advisory		3,401		314		(173	)		-			3,542
SICAV		37		3		2			-			42
Total Equities		37,107		3,044		(1,929	)		(416	)		37,806
Fixed Income:
Money-Market Fund		1,514		2		222			-			1,738
Institutional & PWM		38		-		(1	)		-			37
Total Fixed Income		1,552		2		221			-			1,775
Total Assets Under Management	$	38,659	$	3,046	$	(1,708	)	$	(416	)	$	39,581

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Table III: Assets Under Management by Quarter

							% Change From
	September 30,		December 31,		September 30,		December 31,			September 30,
	2016		2015		2015		2015			2015
Equities:
Open-end Funds	$	13,799	$	13,811	$	14,075		(0.1	%)		(2.0	%)
Closed-end Funds		7,178		6,492		6,205		10.6			15.7
Institutional & PWM - direct		13,245		13,366		13,190		(0.9	)		0.4
Institutional & PWM - sub-advisory		3,542		3,401		3,302		4.1			7.3
SICAV		42		37		36		13.5			16.7
Total Equities		37,806		37,107		36,808		1.9			2.7
Fixed Income:
Money-Market Fund		1,738		1,514		1,637		14.8			6.2
Institutional & PWM		37		38		45		(2.6	)		(17.8	)
Total Fixed Income		1,775		1,552		1,682		14.4			5.5
Total Assets Under Management	$	39,581	$	38,659	$	38,490		2.4	%		2.8	%

Institutional & PWM - direct includes $286 million, $226 million and $227 million of Money Market Fund AUM at September 30, 2016, December 31, 2015 and September 30, 2015, respectively.

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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, 2016 Compared To Three Months Ended September 30, 2015

(Unaudited; in thousands, except per share data)
	2016			2015
Revenues
Investment advisory and incentive fees	$	75,952		$	79,900
Distribution fees and other income		11,769			12,260
Total revenues		87,721			92,160
Expenses
Compensation		21,233			34,022
Management fee		1,163			4,056
Distribution costs		11,568			12,363
Other operating expenses		5,681			4,443
Total expenses		39,645			54,884
Operating income		48,076			37,276
Other income (expense)
Net gain from trading securities		55			72
Interest and dividend income		371			553
Interest expense		(3,155	)		(1,815	)
Total other income/(expense), net		(2,729	)		(1,190	)
Income before income taxes		45,347			36,086
Income tax provision		14,486			13,635
Income from continuing operations		30,861			22,451
Loss from discontinued operations		-			(7,482	)
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	30,861		$	14,969
Net income/(loss) attributable to GAMCO Investors, Inc.'s shareholders per share:
Basic - Continuing operations	$	1.06		$	0.90
Basic - Discontinued operations		-			(0.30	)
Basic - Total	$	1.06		$	0.60
Diluted - Continuing operations	$	1.03		$	0.89
Diluted - Discontinued operations		-			(0.30	)
Diluted - Total	$	1.03		$	0.59

Overview

Income from continuing operations for the quarter was $30.9 million, or $1.03 per fully diluted share, versus $22.5 million, or $0.89 per fully diluted share, in the prior year’s quarter.  The quarter to quarter comparison was impacted by lower variable compensation partially offset by lower revenues and lower income from firm investments.

Revenues

Investment advisory and incentive fees for the third quarter 2016 were $76.0 million, 4.9% lower than the 2015 comparative figure of $79.9 million.  Open-end fund revenues decreased by 8.7% to $33.6 million from $36.8 million in the third quarter of 2015 driven by a 7.9% decrease in average open-end equity AUM.  Our closed-end fund revenues increased 7.7% to $15.4 million in the third quarter 2016 from $14.3 million in 2015 due to an 8.1% 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, decreased $2.6 million to $26.2 million from $28.8 million in third quarter 2015.  There were no incentive fees earned during the third quarters 2016 and 2015. Revenues relating to the SICAV were $0.8 million in the third quarter of 2016 versus less than $0.1 million in the third quarter of 2015.

24

Open-end fund distribution fees and other income were $11.8 million for the third quarter 2016, a decrease of $0.5 million or 4.1% from $12.3 million in the prior year period, primarily due to lower average AUM in open-end equity funds that generate distribution fees and decreased level of sales of load shares of open-end funds.

Expenses

Compensation costs, which are largely variable, were $21.2 million or 37.6% lower than prior year compensation costs of $34.0 million.  The deferred compensation agreement entered into by the Company with Mr. Gabelli resulted in variable compensation being reduced by $10.9 million during the third quarter of 2016.  This expense will be recognized ratably over the vesting period through January 1, 2020.  The remainder of the quarter over quarter decrease was comprised of a $1.5 million decrease in variable compensation related to the decreased levels of AUM, a $0.5 million decrease in stock compensation expense offset by a $0.1 million increase in fixed compensation, primarily relating to increased bonus accruals in the current quarter.

Management fee expense, which is wholly variable and based on pretax income, decreased to $1.2 million in the third quarter of 2016 from $4.0 million in the 2015 period.  The management fee expense for the third quarter of 2016 was lower by $2.4 million due to the accounting of the deferred compensation agreement with Mr. Gabelli.

Distribution costs were $11.6 million, a decrease of $0.8 million or 6.5% from $12.4 million in the prior year’s period.  The decline in distribution costs was primarily driven by lower AUM which resulted in reduced payments to third parties for distribution of $0.4 million and lower amortization of advanced commissions of $0.3 million.

Other operating expenses were $5.7 million in the third quarter of 2016, an increase of $1.3 million, or 29.5%, from $4.4 million in the third quarter of 2015. The current year quarter included $0.6 million of expenses incurred in the launching of the Gabelli Go Anywhere Trust, our 15^th closed-end fund.

Operating income for the third quarter of 2016 was $48.1 million, an increase of $10.8 million, or 29.0%, from the $37.3 million in the third quarter of 2015.  Operating income, as a percentage of revenues, was 54.8% in the 2016 quarter as compared to 40.4% in the 2015 quarter.

Other expense

Total other expense, net was an expense of $2.7 million for the third quarter 2016 versus an expense of $1.2 million in the prior year’s quarter.  Net gains from trading securities decreased to $55,000 in the third quarter of 2016. Interest and dividend income decreased to $0.4 million in the third quarter 2016 from $0.6 million in the third quarter 2015.  Interest expense increased $1.4 million to $3.2 million in the third quarter of 2016 from $1.8 million in the third quarter of 2015.In 2016, the AC 4% PIK Note issued in November 2015 was outstanding as was the 4.5% convertible note issued in August 2016, offset in part by the tender of $78 million of the Senior Notes in December 2015.

The effective tax rates (“ETR”) for the three months ended September 30, 2016 and September 30, 2015 were 31.9% and 37.8%, respectively. The change in rates is primarily due to the reversal of tax accruals related to the closing out of a state audit.

25

Nine Months Ended September 30, 2016 Compared To Nine Months Ended September 30, 2015

(Unaudited; in thousands, except per share data)
	2016			2015
Revenues
Investment advisory and incentive fees	$	219,594		$	251,269
Distribution fees and other income		33,456			39,390
Total revenues		253,050			290,659
Expenses
Compensation		62,130			109,177
Management fee		3,376			12,385
Distribution costs		32,786			40,093
Other operating expenses		14,993			14,157
Total expenses		113,285			175,812
Operating income		139,765			114,847
Other income (expense)
Net gain from trading securities		518			220
Interest and dividend income		1,104			1,584
Interest expense		(9,729	)		(5,575	)
Total other expense, net		(8,107	)		(3,771	)
Income before income taxes		131,658			111,076
Income tax provision		47,229			41,702
Income from continuing operations		84,429			69,374
Loss from discontinued operations		-			(5,528	)
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	84,429		$	63,846
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
Basic - Continuing operations	$	2.89		$	2.77
Basic - Discontinued operations		-			(0.22	)
Basic - Total	$	2.89		$	2.55
Diluted - Continuing operations	$	2.85		$	2.74
Diluted - Discontinued operations		-			(0.22	)
Diluted - Total	$	2.85		$	2.52

Overview

Income from continuing operations for the first nine months of 2016 was $84.4 million, or $2.85 per fully diluted share, versus $69.4 million, or $2.74 per fully diluted share, in the prior year’s first nine months.  The period to period comparison was impacted by lower variable compensation partially offset by lower revenues and lower income from firm investments.

Revenues

Investment advisory and incentive fees for the nine months ended September 30, 2016 were $219.6 million, 12.6% lower than the 2015 comparative figure of $251.3 million.  Open-end fund revenues decreased by 16.6% to $97.6 million in the nine months ended September 30, 2016 from $117.0 million in 2015 driven by a 15.8% decrease in average open-end equity AUM.  Our closed-end fund revenues decreased 4.3% to $42.7 million in the nine months ended September 30, 2016 from $44.6 million in 2015 due to a 3.7% decrease 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, decreased $11.5 million to $77.3 million from $88.8 million in nine months ending September 30, 2015.  There were no incentive fees earned during the nine months ended September 30, 2016. Incentive fees earned during the nine months ended September 30, 2015 were $0.8 million.

Open-end fund distribution fees and other income were $33.5 million for the nine months ended September 30, 2016, a decrease of $5.9 million or 15.0% from $39.4 million in the prior year period, primarily due to lower average AUM in open-end equity funds that generate distribution fees and decreased level of sales of load shares of open-end funds.

26

Expenses

Compensation costs, which are largely variable, were $62.1 million or 43.1% lower than prior year compensation costs of $109.2 million.  The deferred compensation agreement entered into by the Company with Mr. Gabelli resulted in variable compensation being reduced by $32.0 million during the nine months ending September 30, 2016.  This expense will be recognized ratably over the vesting period through January 1, 2020.  The remainder of the period over period decrease was comprised of an $11.8 million decrease in variable compensation related to the decreased levels of AUM, a $1.7 million decrease in stock compensation expense and a $1.6 million decrease in fixed compensation, primarily relating to reduced bonus accruals in the current period.

Management fee expense, which is wholly variable and based on pretax income, decreased to $3.4 million in the first nine months of 2016 from $12.4 million in the 2015 period.  The management fee expense for the first nine months of 2016 was lower by $6.9 million due to the accounting of the deferred compensation agreement with Mr. Gabelli.

Distribution costs were $32.8 million, a decrease of $7.3 million or 18.2% from $40.1 million in the prior year’s period.  The decline in distribution costs was driven by lower AUM which resulted in reduced payments to third parties for distribution of $5.4 million and lower amortization of advanced commissions of $1.0 million.

Other operating expenses were $15.0 million in the first nine months of 2016, an increase of $0.8 million, or 5.6%, from $14.2 million in the first nine months of 2015.

Operating income for the first nine months of 2016 was $139.8 million, an increase of $25.0 million, or 21.8%, from the $114.8 million in the first nine months of 2015.  Operating income, as a percentage of revenues, was 55.2% in the 2016 period as compared to 39.5% in the 2015 period.

Other expense

Total other expense, net was an expense of $8.1 million for the nine months ended September 30, 2016 versus an expense of $3.8 million in the prior year’s period.  Net gains from trading securities increased $0.3 million to $0.5 million in the nine months ending September 30, 2016. Interest and dividend income decreased to $1.1 million in the nine months ended September 30, 2016 from $1.6 million in the first nine months of 2015.  Interest expense increased $4.1 million to $9.7 million in the first nine months of 2016 from $5.6 million in the first nine months of 2015.  In 2016, the AC 4% PIK Note issued in November 2015 was outstanding as was the 4.5% convertible note issued in August 2016, offset in part by the tender of $78 million of the Senior Notes in December 2015.

The ETR for the nine months ended September 30, 2016 and September 30, 2015 were 35.9% and 37.5%, respectively. The change in rates is primarily due to the reversal of tax accruals related to the closing out of a state audit.

DEFERRED COMPENSATION

On December 21, 2015, GAMCO entered into a deferred compensation agreement with Mr. Gabelli whereby his variable compensation for 2016 will be in the form of Restricted Stock Units (“RSUs”) determined by the volume-weighted average price of the Company’s Class A Stock during 2016.  When the restrictions lapse on January 1, 2020 (the “Lapse Date”), this RSU agreement can be settled in either cash or stock.  Notwithstanding its ability to settle the RSU agreement in stock, GAMCO currently intends to make a cash payment to Mr. Gabelli on the Lapse Date in an amount, under the terms of the agreement, equal to the number of RSUs valued at the lesser of the volume-weighted average price of the Company’s Class A Stock for the 2016 fiscal year or the volume-weighted average price on the Lapse Date or, if not a trading day, then the first trading date thereafter.  The Board’s decision to grant these RSUs and thereby defer the cash payment of his 2016 variable compensation until January 1, 2020 was to provide the Company with greater financial flexibility.  While the issuance of the award itself does not change Mr. Gabelli’s compensation, the GAAP reporting for his compensation has changed.  The three and nine month 2016 results were materially bolstered by the GAAP-mandated treatment of these RSUs.  Margins for the third quarter and first nine months of 2016 therefore are not comparable with prior periods.  Under GAAP, only 25% of this deferred compensation expense is being recognized in the current year with the remainder amortized as expense in 2017, 2018, and 2019.  Expressed another way, the 2016 third quarter and first nine months as well as the remainder of 2016 benefit from a reduction of 75% of the compensation, and 2017, 2018, and 2019 will, in turn, be impacted by an additional 25% of the compensation from 2016 in each year.  No decision has been made regarding whether an RSU grant will be repeated for 2017.

The balance sheet is also impacted; the compensation payable at September 30, 2016 and in each future period-end of 2016 is only 25% of the full amount of the 2016 compensation that will be due once the RSUs are fully vested.  At September 30, 2016, the amount of unrecognized compensation was $38.9 million.

27

The following tables show a reconciliation of our results for the third quarter of 2016, the first nine months of 2016 and our balance sheet at September 30, 2016 between the GAAP basis and a non-GAAP adjusted basis of the deferred compensation (the RSU grant) as if all of the expense was recognized in 2016.  We believe this adjusted measure is useful in evaluating the ongoing operating results of the Company absent the material adjustment related to the treatment of the deferred compensation agreement.

	Three Months Ended September 30, 2016
				Impact of
	Reported			Deferred
	GAAP			Compensation			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
Income from continuing operations		30,861			(8,210	)		22,651
Income from discontinued operations, net of taxes		-			-			-
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	30,861		$	(8,210	)	$	22,651
per share:
Net income attributable to GAMCO Investors, Inc.'s shareholders
Basic	$	1.06		$	(0.28	)	$	0.78
Diluted	$	1.03		$	(0.27	)	$	0.76

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	Nine Months Ended September 30, 2016
				Impact of
	Reported			Deferred
	GAAP			Compensation			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
Income from continuing operations		84,429			(24,131	)		60,298
Income from discontinued operations, net of taxes		-			-			-
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	84,429		$	(24,131	)	$	60,298
per share:
Net income attributable to GAMCO Investors, Inc.'s shareholders
Basic	$	2.89		$	(0.83	)	$	2.06
Diluted	$	2.85		$	(0.81	)	$	2.04

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	September 30, 2016
				Impact of
	Reported			Deferred
	GAAP			Compensation			Non-GAAP
ASSETS
Cash and cash equivalents	$	33,852		$	-		$	33,852
Investments in securities		32,889			-			32,889
Receivable from brokers		344			-			344
Investment advisory fees receivable		26,606			-			26,606
Receivable from affiliates		4,745			-			4,745
Income tax receivable		10,634			14,811			25,445
Other assets		12,198			-			12,198
Total assets	$	121,268		$	14,811		$	136,079
LIABILITIES AND EQUITY
Payable to brokers		10,203			-			10,203
Income taxes payable and deferred tax liabilities		164			-			164
Capital lease obligation		5,094			-			5,094
Compensation payable		31,469			38,942			70,411
Payable to affiliates		7,679			-			7,679
Accrued expenses and other liabilities		31,801			-			31,801
Sub-total		86,410			38,942			125,352
4.5% Convertible note (due August 15, 2021)		109,826			-			109,826
AC 4% PIK Note (due November 30, 2020)		100,000			-			100,000
Loan from GGCP (due December 28, 2016)		-			-			-
5.875% Senior notes (due June 1, 2021)		24,115			-			24,115
Total liabilities		320,351			38,942			359,293
Equity
GAMCO Investors, Inc. stockholders' equity
Class A Common Stock		14			-			14
Class B Common Stock		19			-			19
Additional paid-in capital		3,135			-			3,135
Retained earnings (deficit)		48,412			(24,131	)		24,281
Accumulated other comprehensive income		9,317			-			9,317
Treasury stock, at cost		(259,980	)		-			(259,980	)
Total GAMCO Investors, Inc. stockholders' equity (deficit)		(199,083	)		(24,131	)		(223,214	)
Total liabilities and equity (deficit)	$	121,268		$	14,811		$	136,079

The following table further illustrates the effect that the GAAP accounting for the compensation deferral will have on our results for 2016 through 2019 under certain assumptions.  For simplicity in arriving at the 2016 through 2019 illustrative effects, we have assumed that the third quarter RSU expense is predictive of the full year results but there is no assurance that this will be the case.

Effect of recording RSU on a GAAP basis versus recording all of the expense in 2016:

	2016		2017		2018		2019
RSU expense		(52,228)		17,409		17,409		17,409

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,
	2016			2015
Cash flows provided by continuing operations :	(in thousands)
Operating activities	$	105,212		$	134,861
Investing activities		185			51
Financing activities		(85,292	)		45,767
Increase in cash and cash equivalents from continuing operations		20,105			180,679
Cash flows of discontinued operations:
Operating activities		-			59,154
Investing activities		-			(41,464	)
Financing activities		-			(148,510	)
Decrease in cash and cash equivalents from discontinued operations		-			(130,820	)
Effect of exchange rates on cash and cash equivalents		28			8
Net increase		20,133			49,867
Cash and cash equivalents at beginning of period		13,719			12,694
Cash and cash equivalents at end of period	$	33,852		$	62,561

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, 2016, we had total cash and cash equivalents of $33.9 million, an increase of $20.1 million from December 31, 2015 primarily due to the Company’s operating activities described below.  Total debt outstanding at September 30, 2016 was $234 million, consisting of $100 million of a 4% PIK Note due November 30, 2020, $110 million of a 4.5% convertible note due August 15, 2021, and $24 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 for the next few years.

For the nine months ended September 30, 2016, cash provided by operating activities was $105.2 million, a decrease of $29.7 million from cash provided in the prior year period of $134.9 million.  Cash was provided through an increase in net income of $15.1 million, an increase in income taxes payable and deferred tax liabilities of $7.0 million, an increase to payable to brokers of $9.7 million, and a decrease in receivable from affiliates of $1.8 million.  Reducing cash was an increase in investment advisory fees receivable of $6.6 million, an increase in income tax receivable and deferred tax assets of $3.9 million, a decrease in compensation payable of $45.9 million, a decrease to stock based compensation expense of $1.7 million, , and $5.2 million from other sources.  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, including $150.0 million for the partial payment of the 4% PIK Note, $35.0 million for the full repayment of the loan from GGCP, $8.4 million paid for the purchase of treasury stock, and $1.8 million paid in dividends partially offset by the issuance of the 4.5% Convertible note for $109.8 million.

For the nine months ended September 30, 2015, cash provided by operating activities was $134.9 million.  Cash provided by investing activities, related to proceeds from sales of available for sale securities, was $51,000 in the first nine months of 2015.  Cash provided by financing activities in the first nine months of 2015 was $45.8 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.

31

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, 2016.  At September 30, 2016, G.distributors had net capital, as defined, of approximately $2.5 million, exceeding the regulatory requirement by approximately $2.3 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.

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 $32.9 million, $33.0 million and $34.1 million at September 30, 2016, December 31, 2015 and September 30, 2015, respectively, included investments in common stocks.  Of the $32.9 million, $33.0 million and $34.1 million, invested in common stocks at September 30, 2016, December 31, 2015 and September 30, 2015, respectively, $32.9 million, $32.6 million and $34.1 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 December 31, 2015, the fair value of securities sold, not yet purchased was $0.1 million.  At September 30, 2016 and September 30, 2015, there were no securities sold, not yet purchased.

The following table provides a sensitivity analysis for our investments in equity securities and partnerships and affiliates which invest primarily in equity securities, excluding arbitrage products for which the principal exposure is to deal closure and not overall market conditions, as of September 30, 2016 and December 31, 2015.  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, 2016:
Equity price sensitive investments, at fair value		$	32,889		$	29,600		$	36,178
At December 31, 2015:
Equity price sensitive investments, at fair value		$	32,848		$	29,563		$	36,133

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, 2016, cash and cash equivalent balance of $33.9 million, a 1% increase in interest rates would increase our interest income by $0.3 million annually.  Given that our current return on these cash equivalent investments in this low interest rate environment is approximately 0.23% annually, an analysis of a 1% decrease is not meaningful.

32

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 2015 Annual Report on Form 10-K filed with the SEC on March 15, 2016 for details on Critical Accounting Policies.

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, 2016, we had equity investments of $32.9 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, 2016.  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, 2016, 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.

33

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, 2016.

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, 2016:

						(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
7/01/16 - 7/31/16		23,877		$	34.14		23,877		515,243
8/01/16 - 8/31/16		151,124			31.67		151,124		364,119
9/01/16 - 9/30/16		48,810			29.66		48,810		315,309
Totals		223,811		$	31.50		223,811

34

Item 6.(a) Exhibits

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

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 4, 2016	Date: November 4, 2016

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 4, 2016

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 4, 2016

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 4, 2016

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, 2016 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 4, 2016

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, 2016 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 4, 2016	Date:	November 4, 2016

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.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
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	2016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Class A [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		10,401,705
Class B [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		19,093,311

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues
Investment advisory and incentive fees	$ 75,952	$ 79,900	$ 219,594	$ 251,269
Distribution fees and other income	11,769	12,260	33,456	39,390
Total revenues	87,721	92,160	253,050	290,659
Expenses
Compensation	21,233	34,022	62,130	109,177
Management fee	1,163	4,056	3,376	12,385
Distribution costs	11,568	12,363	32,786	40,093
Other operating expenses	5,681	4,443	14,993	14,157
Total expenses	39,645	54,884	113,285	175,812
Operating income	48,076	37,276	139,765	114,847
Other income (expense)
Net gain from investments	55	72	518	220
Interest and dividend income	371	553	1,104	1,584
Interest expense	(3,155)	(1,815)	(9,729)	(5,575)
Total other expense, net	(2,729)	(1,190)	(8,107)	(3,771)
Income before income taxes	45,347	36,086	131,658	111,076
Income tax provision	14,486	13,635	47,229	41,702
Income from continuing operations	30,861	22,451	84,429	69,374
Income from discontinued operations, net of taxes	0	(7,482)	0	(5,528)
Net income attributable to GAMCO Investors, Inc.'s shareholders	$ 30,861	$ 14,969	$ 84,429	$ 63,846
Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
Basic - Continuing operations (in dollars per share)	$ 1.06	$ 0.90	$ 2.89	$ 2.77
Basic - Discontinued operations (in dollars per share)	0	(0.30)	0	(0.22)
Basic - Total (in dollars per share)	1.06	0.60	2.89	2.55
Diluted - Continuing operations (in dollars per share)	1.03	0.89	2.85	2.74
Diluted - Discontinued operations (in dollars per share)	0	(0.30)	0	(0.22)
Diluted - Total (in dollars per share)	$ 1.03	$ 0.59	$ 2.85	$ 2.52
Weighted average shares outstanding:
Basic (in shares)	29,185	24,947	29,222	25,047
Diluted (in shares)	30,406	25,241	29,811	25,337
Dividends declared: (in dollars per share)	$ 0.02	$ 0.07	$ 0.06	$ 0.21

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED [Abstract]
Net income		$ 30,861	$ 14,969	$ 84,429	$ 63,846
Other comprehensive loss, net of tax:
Foreign currency translation		(28)	(35)	(121)	(22)
Net unrealized losses on securities available for sale	[1]	506	(6,696)	323	(7,417)
Other comprehensive loss		478	(6,731)	202	(7,439)
Comprehensive income attributable to GAMCO Investors, Inc.		$ 31,339	$ 8,238	$ 84,631	$ 56,407

[1] Net of income tax expense/(benefit) of ($1,624), ($150), ($107) and ($424), respectively.

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED [Abstract]
Net unrealized losses on securities available for sale, net of income tax benefit	$ 297	$ (3,932)	$ 190	$ (4,356)

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION UNAUDITED - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
ASSETS
Cash and cash equivalents	$ 33,852	$ 13,719	$ 62,561
Investments in securities	32,889	32,975	34,095
Receivable from brokers	344	1,091	1,157
Investment advisory fees receivable	26,606	31,048	26,638
Receivable from affiliates	4,745	5,041	27,957
Income tax receivable and deferred tax asset	10,634	6,787	2,409
Other assets	12,198	13,238	10,776
Assets of discontinued operations	0	0	706,523
Total assets	121,268	103,899	872,116
LIABILITIES AND EQUITY
Payable to brokers	10,203	12	533
Income taxes payable and deferred tax liabilities	164	4,823	5,963
Capital lease obligation	5,094	5,170	5,191
Compensation payable	31,469	24,426	83,700
Securities sold, not yet purchased	0	129	0
Payable to affiliates	7,679	7,687	153
Accrued expenses and other liabilities	31,801	28,882	32,467
Liabilities of discontinued operations	0	0	66,614
Sub-total	86,410	71,129	194,621
4.5% Convertible note (due August 15, 2021) (Note F)	109,826	0	0
AC 4% PIK Note (due November 30, 2020) (Note F)	100,000	250,000	0
Loan from GGCP (due December 28, 2016) (Note F)	0	35,000	0
5.875% Senior notes (due June 1, 2021)	24,115	24,097	99,447
Zero coupon subordinated debentures, Face value: $0.0 million at September 30, 2016, $0.0 million at December 31, 2015 and $6.9 million at September 30, 2015, respectively (due December 31, 2015)	0	0	6,750
Total liabilities	320,351	380,226	300,818
Redeemable noncontrolling interests from discontinued operations	0	0	6,018
Commitments and contingencies (Note J)
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	3,135	345	299,769
Retained earnings (deficit)	48,412	(34,224)	661,415
Accumulated other comprehensive income	9,317	9,115	17,575
Treasury stock, at cost (5,025,640, 4,758,794 and 9,046,709 shares, respectively)	(259,980)	(251,596)	(416,147)
Total GAMCO Investors, Inc. stockholders' equity (deficit)	(199,083)	(276,327)	562,645
Noncontrolling interests from discontinued operations	0	0	2,635
Total equity (deficit)	(199,083)	(276,327)	565,280
Total liabilities and equity (deficit)	121,268	103,899	872,116
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, 2016	Dec. 31, 2015	Sep. 30, 2015
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)	29,500,000	29,800,000	25,500,000
Treasury stock, shares (in shares)	5,025,640	4,758,794	9,046,709
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)	15,480,032	15,422,901	15,387,701
Common Stock, outstanding (in shares)	10,454,392	10,664,107	6,340,992
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)	19,093,311	19,156,792	19,196,792
4.5% Convertible Notes [Member]
LIABILITIES AND EQUITY
Debt instrument, interest rate	4.50%
Debt issuance costs	$ 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
Loan from GGCP [Member]
LIABILITIES AND EQUITY
Debt instrument, maturity date	Dec. 28, 2016
5.875% Senior Notes [Member]
LIABILITIES AND EQUITY
Debt instrument, interest rate	5.875%	5.875%	5.875%
Debt issuance costs	$ 110	$ 128	$ 553
Debt instrument, maturity date	Jun. 01, 2021
Zero Coupon Subordinated Debentures [Member]
LIABILITIES AND EQUITY
Debt instrument, interest rate	0.00%
Debt instrument, maturity date	Dec. 31, 2015
Zero coupon subordinated debentures, face value	$ 0	$ 0	$ 6,900

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED - USD ($) $ in Thousands	Noncontrolling Interests [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Deficit) [Member]	Accumulated Other Comprehensive Income [Member]	Treasury Stock [Member]	Total	Redeemable Noncontrolling Interests [Member]
Balance at Dec. 31, 2014	$ 2,734	$ 33	$ 291,681	$ 602,950	$ 25,014	$ (394,617)	$ 527,795	$ 68,334
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemptions of redeemable noncontrolling interests	0	0	0	0	0	0	0	(602)
Contributions from redeemable noncontrolling interests	0	0	0	0	0	0	0	1,036
Consolidation of a consolidated feeder fund and a partnership	0	0	0	0	0	0	0	996
Deconsolidation of offshore fund	0	0	0	0	0	0	0	(63,256)
Net income (loss)	(99)	0	0	63,846	0	0	63,747	(490)
Net unrealized losses on securities available for sale, net of income tax expense	0	0	0	0	(7,392)	0	(7,392)	0
Amounts reclassified from accumulated other comprehensve income, net of income tax expense (benefit)	0	0	0	0	(25)	0	(25)	0
Foreign currency translation	0	0	0	0	(22)	0	(22)	0
Dividends declared	0	0	0	(5,381)	0	0	(5,381)	0
Stock based compensation expense	0	0	6,819	0	0	0	6,819	0
Exercise of stock options including tax benefit ($102)	0	0	1,269	0	0	0	1,269	0
Purchase of treasury stock	0	0	0	0	0	(21,530)	(21,530)	0
Balance at Sep. 30, 2015	$ 2,635	33	299,769	661,415	17,575	(416,147)	565,280	$ 6,018
Balance at Dec. 31, 2015		33	345	(34,224)	9,115	(251,596)	(276,327)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		0	0	84,429	0	0	84,429
Net unrealized losses on securities available for sale, net of income tax expense		0	0	0	221	0	221
Amounts reclassified from accumulated other comprehensve 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 and additional paid-in capital 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)

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED [Abstract]
Net unrealized losses on securities available for sale, income tax	$ 129	$ (4,341)
Amounts reclassified from accumulated other comprehensive income, income tax expense (benefit)	$ 61	$ (15)
Dividends declared (in dollars per share)	$ 0.06	$ 0.21
Tax benefit from exercise of stock options		$ 102

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net income attributable to GAMCO Investors, Inc.'s shareholders	$ 84,429	$ 63,846
Add: Loss from discontinued operations, net of taxes	0	5,528
Income from continuing operations	84,429	69,374
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	470	466
Stock based compensation expense	3,258	4,923
Deferred income taxes	(3,930)	(1,902)
Tax benefit from exercise of stock options	0	102
Foreign currency translation gain/(loss)	(121)	(22)
Cost basis of donated securities	68	31
Net gains on sales of available for sale securities	(4)	(5)
Accretion of zero coupon debentures	0	502
Loss on extinguishment of zero coupon debentures	0	310
(Increase) decrease in assets:
Investments in trading securities	223	0
Investments in partnerships:
Receivable from affiliates	290	(1,517)
Receivable from brokers	747	526
Investment advisory fees receivable	4,442	11,090
Income tax receivable and deferred tax assets	(3,847)	24
Other assets	534	1,617
Increase (decrease) in liabilities:
Payable to affiliates	(8)	(202)
Payable to brokers	10,190	522
Income taxes payable and deferred tax liabilities	(1,384)	(8,349)
Compensation payable	7,051	52,901
Accrued expenses and other liabilities	2,804	4,470
Total adjustments	20,783	65,487
Net cash provided by operating activities from continuing operations	105,212	134,861
Investing activities
Purchases of available for sale securities	(223)	0
Proceeds from sales of available for sale securities	408	51
Net cash provided by investing activities from continuing operations	185	51
Financing activities
Net cash transferred from AC	0	77,533
Issuance of 4.5% Convertible note	109,826	0
Proceeds from exercise of stock options	0	1,167
Dividends paid	(1,752)	(5,252)
Repurchase of Zero coupon subordinated debentures	0	(6,224)
Purchase of treasury stock	(8,384)	(21,530)
Repayment of AC 4% PIK Note	(150,000)	0
Repayment of loan from GGCP	(35,000)	0
Amortization of debt issuance costs	18	73
Net cash (used in) provided by financing activities from continuing operations	(85,292)	45,767
Cash flows of discontinued operations
Net cash provided by operating activities	0	59,154
Net cash used in investing activities	0	(41,464)
Net cash used in financing activities	0	(148,510)
Net cash used in discontinued operations	0	(130,820)
Effect of exchange rates on cash and cash equivalents	28	8
Net increase/(decrease) in cash and cash equivalents	20,133	49,867
Cash and cash equivalents at beginning of period	13,719	12,694
Cash and cash equivalents at end of period	33,852	62,561
Supplemental disclosures of cash flow information:
Cash paid for interest	4,561	3,531
Cash paid for taxes	$ 55,216	$ 49,587

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Non-cash activity:
Accrued restricted stock award dividends	$ 41	$ 129
Reduction of deferred tax asset and additional paid-in capital 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%
AC 4% PIK Note [Member]
Financing activities
Debt instrument, interest rate	4.00%
Zero Coupon Subordinated Debentures [Member]
Financing activities
Debt instrument, interest rate	0.00%

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Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

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, 2015.

Reclassifications

Certain amounts reported for the prior period in the accompanying condensed consolidated financial statements have been reclassified in order to conform to the current period’s presentation.  Assets and liabilities related to the spin-off (“Spin-off”) of Associated Capital Group, Inc. (“AC”) on November 30, 2015 on the Company’s condensed consolidated statement of financial condition as of September 30, 2015 have been reclassified as assets and liabilities of discontinued operations (See Note J. Discontinued Operations for further details).  All assets and liabilities related to discontinued operations are excluded from the footnotes for all periods presented unless otherwise noted.  In addition, the historical results of AC and certain investment partnerships and offshore funds have been reflected in the accompanying consolidated statements of income for the quarter and nine months ended September 30, 2015 as discontinued operations and financial information related to discontinued operations has been excluded from the notes to these interim condensed consolidated financial statements for all periods presented.

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.  The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied.  Early adoption is not permitted.  The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, which amends the presentation of debt issuance costs in financial statements.  This amended guidance requires entities to present the cost of debt issuances as a reduction of the related debt rather than as an asset.  This guidance is effective for the Company beginning January 1, 2016.  The Company adopted this guidance retrospectively on January 1, 2016.  As a result, the debt issuance costs related to the 5.875% Senior Notes are now shown net in the liability section on the consolidated statements of financial condition.  At December 31, 2015 and September 30, 2015, the 5.875% Senior Notes are now disclosed net of issuance costs of $128,000 and $553,000, respectively.  These amounts were previously disclosed in other assets on the consolidated statements of financial condition.

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. For public companies, the new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. 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. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

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.  ASU 2016-02 is effective beginning January 1, 2019. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

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.  Early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

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.  For public companies, the ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods.  Early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

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Investment in Securities

9 Months Ended

Sep. 30, 2016

Investment in Securities [Abstract]

Investment in Securities

B.  Investment in Securities

Investments in securities at September 30, 2016, December 31, 2015 and September 30, 2015 consisted of the following:

	September 30, 2016				December 31, 2015				September 30, 2015
	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
	(In thousands)
Trading securities:
Common stocks	$	16	$	16	$	385	$	368	$	-	$	-
Total trading securities		16		16		385		368		-		-
Available for sale securities:
Common stocks		17,649		32,873		17,898		32,607		13,561		34,095
Total available for sale securities		17,649		32,873		17,898		32,607		13,561		34,095
Total investments in securities	$	17,665	$	32,889	$	18,283	$	32,975	$	13,561	$	34,095

Securities sold, not yet purchased at September 30, 2016, December 31, 2015 and September 30, 2015 consisted of the following:

	September 30, 2016						December 31, 2015						September 30, 2015
	Proceeds			Fair Value			Proceeds			Fair Value			Proceeds			Fair Value
Trading securities:	(In thousands)
Common stocks		$	-		$	-		$	123		$	129		$	-		$	-
Total securities sold, not yet purchased		$	-		$	-		$	123		$	129		$	-		$	-

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, 2016 and 2015 (in thousands):

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Three Months Ended September 30,
2016				2015
	$	-			$	-		Net gain from investments	Realized gain on sale of AFS securities
		7				45		Other operating expenses/net gain from investments	Realized gain on donation of AFS securities
		7				45		Income before income taxes
		(3	)			(17	)	Income tax provision
	$	4			$	28		Net income

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Nine Months Ended September 30,
2016				2015
	$	4			$	5		Net gain from investments	Realized gain on sale of AFS securities
		159				80		Other operating expenses/net gain from investments	Realized gain on donation of AFS securities
		163				85		Income before income taxes
		(61	)			(32	)	Income tax provision
	$	102			$	53		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, 2016, December 31, 2015 and September 30, 2015:

	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

	December 31, 2015
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	17,898		$	14,709		$	-		$	32,607
Total available for sale securities		$	17,898		$	14,709		$	-		$	32,607

	September 30, 2015
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	13,561		$	20,534		$	-		$	34,095
Total available for sale securities		$	13,561		$	20,534		$	-		$	34,095

Changes in net unrealized gain, net of taxes, for the three months ended September 30, 2016 of $0.5 million and changes in net unrealized loss, net of taxes, for the three months ended September 30, 2015 of $6.7 million have been included in other comprehensive income, a component of equity, at September 30, 2016 and September 30, 2015, respectively.  There were no sales of investments available for sale for the three months ended September 30, 2016 and September 30, 2015.  Changes in net unrealized gain, net of taxes, for the nine months ended September 30, 2016 of $0.3 million and changes in net unrealized loss, net of taxes, for the nine months ended September 30, 2015 of $7.4 million have been included in other comprehensive income, a component of equity, at September 30, 2016 and September 30, 2015, respectively.  During the nine months ended September 30, 2016 and September 30, 2015, proceeds from the sales of investments available for sale were approximately $408,000 and $51,000, respectively.  For the nine months ended September 30, 2016 and September 30, 2015, gross gains on the sale of investments available for sale amounted to $4,000 and $5,000, 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, 2016 or September 30, 2015.  The basis on which the cost of a security sold is determined using specific identification.  Accumulated other comprehensive income on the consolidated statements of equity is primarily comprised of unrealized gains/losses, net of taxes, for AFS securities.

GBL 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, 2016, December 31, 2015 or September 30, 2015.

For the three and nine months ended September 30, 2016 and 2015 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, 2016

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, 2016, December 31, 2015 and September 30, 2015 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, 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
Liabilities
Securities sold, not yet purchased:
Trading - Common stocks	$	-	$	-	$	-	$	-
Total securities sold, not yet purchased	$	-	$	-	$	-	$	-

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2015 (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)		2015
Cash equivalents	$	13,538	$	-	$	-	$	13,538
Investments in securities:
AFS - Common stocks		32,607		-		-		32,607
Trading - Common stocks		368		-		-		368
Total investments in securities		32,975		-		-		32,975
Total assets at fair value	$	46,513	$	-	$	-	$	46,513
Liabilities
Securities sold, not yet purchased:
Trading - Common stocks	$	129	$	-	$	-	$	129
Total securities sold, not yet purchased	$	129	$	-	$	-	$	129

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of September 30, 2015 (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)		2015
Cash equivalents	$	62,398	$	-	$	-	$	62,398
Investments in securities:
AFS - Common stocks		34,095		-		-		34,095
Trading - Common stocks		-		-		-		-
Total investments in securities		34,095		-		-		34,095
Total assets at fair value	$	96,493	$	-	$	-	$	96,493
Liabilities
Securities sold, not yet purchased:
Trading - Common stocks	$	-	$	-	$	-	$	-
Total securities sold, not yet purchased	$	-	$	-	$	-	$	-

During the quarters ended September 30, 2016 and 2015, there were no transfers between any Level 1 and Level 2 holdings, or between Level 1 and Level 3 holdings.

Other than certain securities which were part of the Spin-off, the Company did not hold any Level 2 or 3 securities at September 30, 2016, December 31, 2015 or September 30, 2015.

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Income Taxes

9 Months Ended

Sep. 30, 2016

Income Taxes [Abstract]

Income Taxes

D. Income Taxes

The effective tax rate ("ETR) for the three months ended September 30, 2016 and September 30, 2015 was 31.9% and 37.8%, respectively.  The ETR for the nine months ended September 30, 2016 and September 30, 2015 was 35.9% and 37.5%, respectively.  The change in rates is primarily due to the reversal of tax accruals related to the closing out of a state audit.

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Earnings Per Share

9 Months Ended

Sep. 30, 2016

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)	2016		2015			2016		2015
Basic:
Income from continuing operations	$	30,861	$	22,451		$	84,429	$	69,374
Income from discontinued operations, net of taxes		-		(7,482	)		-		(5,528	)
Net income attributable to GAMCO Investors, Inc.'s
shareholders	$	30,861	$	14,969		$	84,429	$	63,846
Weighted average shares outstanding		29,185		24,947			29,222		25,047
Basic net income per share attributable to GAMCO
Investors, Inc.'s shareholders:
Continuing operations	$	1.06	$	0.90		$	2.89	$	2.77
Discontinued operations		-		(0.30	)		-		(0.22	)
Total	$	1.06	$	0.60		$	2.89	$	2.55
Diluted:
Income from continuing operations	$	30,861	$	22,451		$	84,429	$	69,374
Add interest on convertible note, net of management fee and taxes		387		-			387		-
Total income from continuing operations		31,248		22,451			84,816		69,374
Income from discontinued operations, net of taxes		-		(7,482	)		-		(5,528	)
Net income attributable to GAMCO Investors, Inc.'s
shareholders	$	31,248	$	14,969		$	84,816	$	63,846
Weighted average share outstanding		29,185		24,947			29,222		25,047
Dilutive stock options and restricted stock awards		221		294			253		290
Assumed conversion of convertible note		1,000		-			336		-
Total		30,406		25,241			29,811		25,337
Diluted net income per share attributable to GAMCO
Investors, Inc.'s shareholders:
Continuing operations	$	1.03	$	0.89		$	2.85	$	2.74
Discontinued operations		-		(0.30	)		-		(0.22	)
Total	$	1.03	$	0.59		$	2.85	$	2.52

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Debt

9 Months Ended

Sep. 30, 2016

Debt [Abstract]

Debt

F. Debt

Debt consists of the following:

	September 30, 2016						December 31, 2015						September 30, 2015
	Carrying			Fair Value			Carrying			Fair Value			Carrying			Fair Value
	Value			Level 2			Value			Level 2			Value			Level 2
(In thousands)
4.5 % Convertible note		$	109,826		$	112,172		$	-		$	-		$	-		$	-
AC 4% PIK Note			100,000			101,347			250,000			250,000			-			-
Loan from GGCP			-			-			35,000			35,000			-			-
5.875% Senior notes			24,115			25,073			24,097			24,437			99,447			106,625
0% Subordinated debentures			-			-			-			-			6,750			6,800
Total		$	233,941		$	238,592		$	309,097		$	309,437		$	106,197		$	113,425

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 62% 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.

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 months ended September 30, 2016, the Company prepaid $150 million of principal of the AC 4% PIK Note.  $50 million of the prepayment was applied against the principal amount due on November 30, 2016, $40 million against the principal amount due on November 30, 2017, $30 million against the principal amount due on November 30, 2018, and $30 million against the principal amount due on November 30, 2019.  Of the $100 million principal amount outstanding at September 30, 2016, $10 million is due on November 30, 2017, $20 million is due on November 30, 2018, $20 million is due on November 30, 2019, and $50 million 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.

On November 18, 2015, the Company commenced a tender offer (the “Offer”) to purchase for cash up to $100 million aggregate principal amount of the Senior Notes at a price of 101% of the principal amount.  $75.8 million of face value Senior Notes were tendered upon the expiration of the Offer.  At September 30, 2016, December 31, 2015 and September 30, 2015, the debt was recorded at its face value, net of issuance costs, of $24.1 million, $24.1 million and $99.4 million, respectively.

Loan from GGCP

In connection with the Offer, the Company borrowed $35.0 million from GGCP. The loan has a term of one year and bears interest at 90-day LIBOR plus 3.25%, reset and payable quarterly.  On March 18, 2016, the Company paid back $15.0 million of the loan.  During the second quarter of 2016 the Company paid back the remaining $20.0 million of the loan.  At December 31, 2015, the debt was recorded at its face value of $35.0 million.

Zero coupon Subordinated debentures due December 31, 2015

On December 31, 2010, the Company issued $86.4 million in par value of five year zero coupon subordinated debentures due December 31, 2015 ("Debentures") to its shareholders of record on December 15, 2010 through the declaration of a special dividend of $3.20 per share. The Debentures have a par value of $100 and are callable at the option of the Company, in whole or in part, at any time or from time to time, at a redemption price equal to 100% of the principal amount of the Debentures to be redeemed. During the three and nine month periods ended September 30, 2015 the Company repurchased 16 Debentures and 62,242 Debentures, respectively, having a face value of $1,600 and $6.2 million, respectively.  The redemptions were accounted for as extinguishments of debt and resulted in losses of less than $1,000 and $310,000, respectively, which was included in net gain from investments on the condensed consolidated statements of income.  The debt was being accreted to its face value using the effective rate on the date of issuance of 7.45%.  At September 30, 2015, the debt was recorded at its accreted value of  $6.8 million. The debt matured on December 31, 2015 and was fully paid at that time.

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.

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, 2016, $500 million is available on the shelf.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2016

Stockholders' Equity [Abstract]

Stockholders' Equity

G. Stockholders' Equity

Shares outstanding were 29.5 million, 29.8 million and 25.5 million on September 30, 2016, December 31, 2015 and September 30, 2015, respectively.

Dividends

	Payment	Record
	Date	Date	Amount
Three months ended March 31, 2016	March 29, 2016	March 15, 2016	$	0.02
Three months ended June 30, 2016	June 28, 2016	June 14, 2016		0.02
Three months ended September 30, 2016	September 27, 2016	September 13, 2016		0.02
Nine months ended September 30, 2016			$	0.06
Three months ended March 31, 2015	March 31, 2015	March 17, 2015	$	0.07
Three months ended June 30, 2015	June 30, 2015	June 16, 2015		0.07
Three months ended September 30, 2015	September 29, 2015	September 15, 2015		0.07
Nine months ended September 30, 2015			$	0.21

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 3.5 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, 2016, December 31, 2015 and September 30, 2015, there were 427,290 RSA shares, 553,100 RSA shares and 688,550 RSA shares outstanding, respectively, that were previously issued at an average weighted grant price of $65.72, $64.02 and $67.34, respectively.  These RSA grants occurred prior to the spin-off of Associated Capital.  On November 30, 2015, pursuant to the spin-off, all RSA grant holders received shares of Associated Capital’s Class A common stock as a result of their ownership of their GAMCO unvested RSAs (one share of Associated Capital 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.

For the three months ended September 30, 2016 and September 30, 2015, we recognized stock-based compensation expense of $1.2 million and $1.6 million, respectively.  For the nine months ended September 30, 2016 and September 30, 2015, we recognized stock-based compensation expense of $3.3 million and $4.9 million, respectively.  Actual and projected stock-based compensation expense for RSA shares for the years ended December 31, 2015 through December 31, 2024 (based on awards currently issued or granted) is as follows (in thousands):

		2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
	Q1	$	1,639	$	1,037	$	685	$	464	$	365		219		145		93		48		7
	Q2		1,640		1,036		685		453		365		204		145		93		48		7
	Q3		1,644		1,186		602		402		323		169		114		66		24		5
	Q4		4,945		691		520		366		295		145		93		48		7		-
Full Year		$	9,868	$	3,950	$	2,492	$	1,685	$	1,348		737		497		300		127		19

The total compensation cost related to non-vested RSAs not yet recognized is approximately $7.9 million as of September 30, 2016.  There were no options exercised for the three or nine months ended September 30, 2016.  For both the three and nine months ended September 30, 2015 proceeds from the exercise of 26,000 stock options were $1.2 million resulting in a tax benefit to GAMCO of $102,000.

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.  For the three months ended September 30, 2016 and September 30, 2015, the Company repurchased 223,811 shares and 172,007 shares, respectively, at an average price per share of $31.50 and $61.11, respectively.  For the nine months ended September 30, 2016 and September 30, 2015, the Company repurchased 266,846 shares and 321,488 shares, respectively, at an average price per share of $31.41 and $66.96, respectively.  From the inception of the program through September 30, 2016, 9,819,499 shares have been repurchased at an average price of $44.44 per share.  At September 30, 2016, the total shares available under the program to be repurchased in the future were 315,309.

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Identifiable Intangible Assets

9 Months Ended

Sep. 30, 2016

Identifiable Intangible Assets [Abstract]

Identifiable Intangible Assets

H. 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, 2016, December 31, 2015 and September 30, 2015. 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 2017. 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, 2016 and December 31, 2015.  The advisory contracts for the Bancroft Fund Ltd. and the Ellsworth Growth and Income Fund Ltd. are both next up for renewal in November 2017. 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, 2016 or September 30, 2015, and as such there was no impairment analysis performed or charge recorded.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies [Abstract]

Commitments and Contingencies

I. 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, 2016.

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Discontinued Operations

9 Months Ended

Sep. 30, 2016

Discontinued Operations [Abstract]

Discontinued Operations

J.  Discontinued Operations

As a result of the Spin-off, the results of AC’s operations through the Spin-off Date, as well as transaction costs related to the Spin-off, have been classified in the condensed consolidated statements of income as discontinued operations.  There was no gain or loss on the Spin-off for the Company, and it was a tax-free spin-off to GAMCO’s shareholders.

The three and nine months ended September 30, 2015 results include $0 and $1.5 million, respectively, in costs incurred with respect to the Spin-off and are included in Other operating expenses below.  Operating results for the period from January 1, 2015 through September 30, 2015 is summarized below:

	Three Months Ended			Nine Months Ended
	September 30, 2015			September 30, 2015
Revenues
Investment advisory and incentive fees	$	2,560		$	6,954
Distribution fees and other income		41			276
Institutional research services		2,446			7,278
Total revenues		5,047			14,508
Expenses
Compensation		5,079			16,555
Stock based compensation		630			1,895
Management fee		(1,374	)		(1,025	)
Distribution costs		(19	)		(82	)
Other operating expenses		1,811			6,922
Total expenses		6,127			24,265
Operating loss		(1,080	)		(9,757	)
Other income (expense)
Net gain from investments		(11,539	)		(834	)
Interest and dividend income		551			2,303
Interest expense		(322	)		(984	)
Total other income (expense), net		(11,310	)		485
Loss from discontinued operations before income taxes		(12,390	)		(9,272	)
Income tax benefit		(4,390	)		(3,155	)
Loss from discontinued operations, net of taxes		(8,000	)		(6,117	)
Net loss attributable to noncontrolling interests		(518	)		(589	)
Net loss attributable to GAMCO Investors, Inc.'s discontinued operations, net of taxes	$	(7,482	)	$	(5,528	)

The assets and liabilities of AC have been classified in the consolidated statement of financial condition as of September 30, 2015 as assets and liabilities of discontinued operations and consist of the following:

	September 30, 2015
Cash and cash equivalents	$	363,055
Investments in securities		92,822
Investments in sponsored registered investment companies		115,046
Investments in partnerships		101,025
Receivable from brokers		51,761
Investment advisory fees receivable		1,991
Receivable from affiliates		(27,957	)
Income tax receivable		-
Other assets		8,780
Total assets of discontinued operations		706,523
Payable to brokers		48,541
Income taxes payable and deferred tax liabilities		4,566
Compensation payable		5,047
Securities sold, not yet purchased		5,577
Payable to affiliates		(153	)
Mandatorily redeemable noncontrolling interests		1,257
Accrued expenses and other liabilities		1,779
Total liabilities of discontinued operations		66,614
Redeemable noncontrolling interests from discontinued
operations		6,018
Noncontrolling interests from discontinued operations		2,635
Net assets of discontinued operations	$	631,256

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Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

K. Subsequent Events

On November 4, 2016, the Board of Directors declared its regular quarterly dividend of $0.02 per share to all of its shareholders, payable on December 27, 2016 to shareholders of record on December 13, 2016.

From October 1, 2016 to November 4, 2016, the Company repurchased 60,237 shares at $29.06 per share.

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Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2016

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, 2015.

Reclassifications

Reclassifications

Certain amounts reported for the prior period in the accompanying condensed consolidated financial statements have been reclassified in order to conform to the current period’s presentation.  Assets and liabilities related to the spin-off (“Spin-off”) of Associated Capital Group, Inc. (“AC”) on November 30, 2015 on the Company’s condensed consolidated statement of financial condition as of September 30, 2015 have been reclassified as assets and liabilities of discontinued operations (See Note J. Discontinued Operations for further details).  All assets and liabilities related to discontinued operations are excluded from the footnotes for all periods presented unless otherwise noted.  In addition, the historical results of AC and certain investment partnerships and offshore funds have been reflected in the accompanying consolidated statements of income for the quarter and nine months ended September 30, 2015 as discontinued operations and financial information related to discontinued operations has been excluded from the notes to these interim condensed consolidated financial statements for all periods presented.

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.  The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied.  Early adoption is not permitted.  The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, which amends the presentation of debt issuance costs in financial statements.  This amended guidance requires entities to present the cost of debt issuances as a reduction of the related debt rather than as an asset.  This guidance is effective for the Company beginning January 1, 2016.  The Company adopted this guidance retrospectively on January 1, 2016.  As a result, the debt issuance costs related to the 5.875% Senior Notes are now shown net in the liability section on the consolidated statements of financial condition.  At December 31, 2015 and September 30, 2015, the 5.875% Senior Notes are now disclosed net of issuance costs of $128,000 and $553,000, respectively.  These amounts were previously disclosed in other assets on the consolidated statements of financial condition.

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. For public companies, the new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. 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. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

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.  ASU 2016-02 is effective beginning January 1, 2019. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

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.  Early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

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.  For public companies, the ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods.  Early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

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Investment in Securities (Tables)

9 Months Ended

Sep. 30, 2016

Investment in Securities [Abstract]

Investments in Securities

Investments in securities at September 30, 2016, December 31, 2015 and September 30, 2015 consisted of the following:

	September 30, 2016				December 31, 2015				September 30, 2015
	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
	(In thousands)
Trading securities:
Common stocks	$	16	$	16	$	385	$	368	$	-	$	-
Total trading securities		16		16		385		368		-		-
Available for sale securities:
Common stocks		17,649		32,873		17,898		32,607		13,561		34,095
Total available for sale securities		17,649		32,873		17,898		32,607		13,561		34,095
Total investments in securities	$	17,665	$	32,889	$	18,283	$	32,975	$	13,561	$	34,095

Securities Sold, Not Yet Purchased

Securities sold, not yet purchased at September 30, 2016, December 31, 2015 and September 30, 2015 consisted of the following:

	September 30, 2016						December 31, 2015						September 30, 2015
	Proceeds			Fair Value			Proceeds			Fair Value			Proceeds			Fair Value
Trading securities:	(In thousands)
Common stocks		$	-		$	-		$	123		$	129		$	-		$	-
Total securities sold, not yet purchased		$	-		$	-		$	123		$	129		$	-		$	-

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, 2016 and 2015 (in thousands):

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Three Months Ended September 30,
2016				2015
	$	-			$	-		Net gain from investments	Realized gain on sale of AFS securities
		7				45		Other operating expenses/net gain from investments	Realized gain on donation of AFS securities
		7				45		Income before income taxes
		(3	)			(17	)	Income tax provision
	$	4			$	28		Net income

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Nine Months Ended September 30,
2016				2015
	$	4			$	5		Net gain from investments	Realized gain on sale of AFS securities
		159				80		Other operating expenses/net gain from investments	Realized gain on donation of AFS securities
		163				85		Income before income taxes
		(61	)			(32	)	Income tax provision
	$	102			$	53		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, 2016, December 31, 2015 and September 30, 2015:

	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

	December 31, 2015
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	17,898		$	14,709		$	-		$	32,607
Total available for sale securities		$	17,898		$	14,709		$	-		$	32,607

	September 30, 2015
				Gross			Gross
				Unrealized			Unrealized
	Cost			Gains			Losses			Fair Value
	(In thousands)
Common stocks		$	13,561		$	20,534		$	-		$	34,095
Total available for sale securities		$	13,561		$	20,534		$	-		$	34,095

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2016

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, 2016, December 31, 2015 and September 30, 2015 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, 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
Liabilities
Securities sold, not yet purchased:
Trading - Common stocks	$	-	$	-	$	-	$	-
Total securities sold, not yet purchased	$	-	$	-	$	-	$	-

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2015 (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)		2015
Cash equivalents	$	13,538	$	-	$	-	$	13,538
Investments in securities:
AFS - Common stocks		32,607		-		-		32,607
Trading - Common stocks		368		-		-		368
Total investments in securities		32,975		-		-		32,975
Total assets at fair value	$	46,513	$	-	$	-	$	46,513
Liabilities
Securities sold, not yet purchased:
Trading - Common stocks	$	129	$	-	$	-	$	129
Total securities sold, not yet purchased	$	129	$	-	$	-	$	129

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of September 30, 2015 (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)		2015
Cash equivalents	$	62,398	$	-	$	-	$	62,398
Investments in securities:
AFS - Common stocks		34,095		-		-		34,095
Trading - Common stocks		-		-		-		-
Total investments in securities		34,095		-		-		34,095
Total assets at fair value	$	96,493	$	-	$	-	$	96,493
Liabilities
Securities sold, not yet purchased:
Trading - Common stocks	$	-	$	-	$	-	$	-
Total securities sold, not yet purchased	$	-	$	-	$	-	$	-

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2016

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)	2016		2015			2016		2015
Basic:
Income from continuing operations	$	30,861	$	22,451		$	84,429	$	69,374
Income from discontinued operations, net of taxes		-		(7,482	)		-		(5,528	)
Net income attributable to GAMCO Investors, Inc.'s
shareholders	$	30,861	$	14,969		$	84,429	$	63,846
Weighted average shares outstanding		29,185		24,947			29,222		25,047
Basic net income per share attributable to GAMCO
Investors, Inc.'s shareholders:
Continuing operations	$	1.06	$	0.90		$	2.89	$	2.77
Discontinued operations		-		(0.30	)		-		(0.22	)
Total	$	1.06	$	0.60		$	2.89	$	2.55
Diluted:
Income from continuing operations	$	30,861	$	22,451		$	84,429	$	69,374
Add interest on convertible note, net of management fee and taxes		387		-			387		-
Total income from continuing operations		31,248		22,451			84,816		69,374
Income from discontinued operations, net of taxes		-		(7,482	)		-		(5,528	)
Net income attributable to GAMCO Investors, Inc.'s
shareholders	$	31,248	$	14,969		$	84,816	$	63,846
Weighted average share outstanding		29,185		24,947			29,222		25,047
Dilutive stock options and restricted stock awards		221		294			253		290
Assumed conversion of convertible note		1,000		-			336		-
Total		30,406		25,241			29,811		25,337
Diluted net income per share attributable to GAMCO
Investors, Inc.'s shareholders:
Continuing operations	$	1.03	$	0.89		$	2.85	$	2.74
Discontinued operations		-		(0.30	)		-		(0.22	)
Total	$	1.03	$	0.59		$	2.85	$	2.52

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Debt (Tables)

9 Months Ended

Sep. 30, 2016

Debt [Abstract]

Schedule of Debt

Debt consists of the following:

	September 30, 2016						December 31, 2015						September 30, 2015
	Carrying			Fair Value			Carrying			Fair Value			Carrying			Fair Value
	Value			Level 2			Value			Level 2			Value			Level 2
(In thousands)
4.5 % Convertible note		$	109,826		$	112,172		$	-		$	-		$	-		$	-
AC 4% PIK Note			100,000			101,347			250,000			250,000			-			-
Loan from GGCP			-			-			35,000			35,000			-			-
5.875% Senior notes			24,115			25,073			24,097			24,437			99,447			106,625
0% Subordinated debentures			-			-			-			-			6,750			6,800
Total		$	233,941		$	238,592		$	309,097		$	309,437		$	106,197		$	113,425

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2016

Stockholders' Equity [Abstract]

Dividends

Dividends

	Payment	Record
	Date	Date	Amount
Three months ended March 31, 2016	March 29, 2016	March 15, 2016	$	0.02
Three months ended June 30, 2016	June 28, 2016	June 14, 2016		0.02
Three months ended September 30, 2016	September 27, 2016	September 13, 2016		0.02
Nine months ended September 30, 2016			$	0.06
Three months ended March 31, 2015	March 31, 2015	March 17, 2015	$	0.07
Three months ended June 30, 2015	June 30, 2015	June 16, 2015		0.07
Three months ended September 30, 2015	September 29, 2015	September 15, 2015		0.07
Nine months ended September 30, 2015			$	0.21

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

For the three months ended September 30, 2016 and September 30, 2015, we recognized stock-based compensation expense of $1.2 million and $1.6 million, respectively.  For the nine months ended September 30, 2016 and September 30, 2015, we recognized stock-based compensation expense of $3.3 million and $4.9 million, respectively.  Actual and projected stock-based compensation expense for RSA shares for the years ended December 31, 2015 through December 31, 2024 (based on awards currently issued or granted) is as follows (in thousands):

		2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
	Q1	$	1,639	$	1,037	$	685	$	464	$	365		219		145		93		48		7
	Q2		1,640		1,036		685		453		365		204		145		93		48		7
	Q3		1,644		1,186		602		402		323		169		114		66		24		5
	Q4		4,945		691		520		366		295		145		93		48		7		-
Full Year		$	9,868	$	3,950	$	2,492	$	1,685	$	1,348		737		497		300		127		19

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Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2016

Discontinued Operations [Abstract]

Summary of Operating Results

The three and nine months ended September 30, 2015 results include $0 and $1.5 million, respectively, in costs incurred with respect to the Spin-off and are included in Other operating expenses below.  Operating results for the period from January 1, 2015 through September 30, 2015 is summarized below:

	Three Months Ended			Nine Months Ended
	September 30, 2015			September 30, 2015
Revenues
Investment advisory and incentive fees	$	2,560		$	6,954
Distribution fees and other income		41			276
Institutional research services		2,446			7,278
Total revenues		5,047			14,508
Expenses
Compensation		5,079			16,555
Stock based compensation		630			1,895
Management fee		(1,374	)		(1,025	)
Distribution costs		(19	)		(82	)
Other operating expenses		1,811			6,922
Total expenses		6,127			24,265
Operating loss		(1,080	)		(9,757	)
Other income (expense)
Net gain from investments		(11,539	)		(834	)
Interest and dividend income		551			2,303
Interest expense		(322	)		(984	)
Total other income (expense), net		(11,310	)		485
Loss from discontinued operations before income taxes		(12,390	)		(9,272	)
Income tax benefit		(4,390	)		(3,155	)
Loss from discontinued operations, net of taxes		(8,000	)		(6,117	)
Net loss attributable to noncontrolling interests		(518	)		(589	)
Net loss attributable to GAMCO Investors, Inc.'s discontinued operations, net of taxes	$	(7,482	)	$	(5,528	)

Assets and Liabilities of Discontinued Operations

The assets and liabilities of AC have been classified in the consolidated statement of financial condition as of September 30, 2015 as assets and liabilities of discontinued operations and consist of the following:

	September 30, 2015
Cash and cash equivalents	$	363,055
Investments in securities		92,822
Investments in sponsored registered investment companies		115,046
Investments in partnerships		101,025
Receivable from brokers		51,761
Investment advisory fees receivable		1,991
Receivable from affiliates		(27,957	)
Income tax receivable		-
Other assets		8,780
Total assets of discontinued operations		706,523
Payable to brokers		48,541
Income taxes payable and deferred tax liabilities		4,566
Compensation payable		5,047
Securities sold, not yet purchased		5,577
Payable to affiliates		(153	)
Mandatorily redeemable noncontrolling interests		1,257
Accrued expenses and other liabilities		1,779
Total liabilities of discontinued operations		66,614
Redeemable noncontrolling interests from discontinued
operations		6,018
Noncontrolling interests from discontinued operations		2,635
Net assets of discontinued operations	$	631,256

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Significant Accounting Policies (Details) - 5.875% Senior Notes [Member] - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	May 31, 2011
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt instrument, interest rate	5.875%	5.875%	5.875%	5.875%
Debt issuance costs	$ 110	$ 128	$ 553
ASU 2015-03 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt instrument, interest rate		5.875%	5.875%
Debt issuance costs		$ 128	$ 553

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Investment in Securities, Investment in Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Trading securities [Abstract]
Cost	$ 16	$ 385	$ 0
Fair value	16	368	0
Available for sale securities [Abstract]
Cost	17,649	17,898	13,561
Fair value	32,873	32,607	34,095
Total investments in securities [Abstract]
Cost	17,665	18,283	13,561
Fair value	32,889	32,975	34,095
Common Stock [Member]
Trading securities [Abstract]
Cost	16	385	0
Fair value	16	368	0
Available for sale securities [Abstract]
Cost	17,649	17,898	13,561
Fair value	$ 32,873	$ 32,607	$ 34,095

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Investment in Securities, Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Trading securities [Abstract]
Proceeds	$ 0	$ 123	$ 0
Fair value	0	129	0
Common Stock [Member]
Trading securities [Abstract]
Proceeds	0	123	0
Fair value	$ 0	$ 129	$ 0

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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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gain from investments	$ 55	$ 72	$ 518	$ 220
Other operating expenses/net gain from investments	5,681	4,443	14,993	14,157
Income before income taxes	45,347	36,086	131,658	111,076
Income tax provision	(14,486)	(13,635)	(47,229)	(41,702)
Net income attributable to GAMCO Investors, Inc.'s shareholders	30,861	14,969	84,429	63,846
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	7	45	163	85
Income tax provision	(3)	(17)	(61)	(32)
Net income attributable to GAMCO Investors, Inc.'s shareholders	4	28	102	53
Realized Gain on Sale of AFS Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gain from investments	0	0	4	5
Realized Gain on Donation of AFS Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other operating expenses/net gain from investments	$ 7	$ 45	$ 159	$ 80

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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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Cost		$ 17,649,000	$ 13,561,000	$ 17,649,000	$ 13,561,000	$ 17,898,000
Gross unrealized gains		15,224,000	20,534,000	15,224,000	20,534,000	14,709,000
Gross unrealized losses		0	0	0	0	0
Fair value		32,873,000	34,095,000	32,873,000	34,095,000	32,607,000
Unrealized changes to fair value net of taxes included in other comprehensive income	[1]	506,000	(6,696,000)	323,000	(7,417,000)
Proceeds from sale of investment available for sale		0	0	408,000	51,000
Gross realized gains on sale of investment available for sale		0	0	4,000	5,000
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		17,649,000	13,561,000	17,649,000	13,561,000	17,898,000
Gross unrealized gains		15,224,000	20,534,000	15,224,000	20,534,000	14,709,000
Gross unrealized losses		0	0	0	0	0
Fair value		$ 32,873,000	$ 34,095,000	$ 32,873,000	$ 34,095,000	$ 32,607,000

[1] Net of income tax expense/(benefit) of ($1,624), ($150), ($107) and ($424), respectively.

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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, 2016 USD ($) Investment	Sep. 30, 2015 USD ($) Investment	Sep. 30, 2016 USD ($) Investment	Sep. 30, 2015 USD ($) Investment	Dec. 31, 2015 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, 2016	Dec. 31, 2015	Sep. 30, 2015
Investments in securities [Abstract]
Total investments in securities	$ 32,889	$ 32,975	$ 34,095
Securities sold, not yet purchased [Abstract]
Total securities sold, not yet purchased	0	129	0
Recurring Basis [Member]
Assets [Abstract]
Cash equivalents	33,576	13,538	62,398
Investments in securities [Abstract]
AFS - Common stocks	32,873	32,607	34,095
Trading - Common stocks	16	368	0
Total investments in securities	32,889	32,975	34,095
Total assets at fair value	66,465	46,513	96,493
Securities sold, not yet purchased [Abstract]
Trading - Common Stocks	0	129	0
Total securities sold, not yet purchased	0	129	0
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Cash equivalents	33,576	13,538	62,398
Investments in securities [Abstract]
AFS - Common stocks	32,873	32,607	34,095
Trading - Common stocks	16	368	0
Total investments in securities	32,889	32,975	34,095
Total assets at fair value	66,465	46,513	96,493
Securities sold, not yet purchased [Abstract]
Trading - Common Stocks	0	129	0
Total securities sold, not yet purchased	0	129	0
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
Trading - Common stocks	0	0	0
Total investments in securities	0	0	0
Total assets at fair value	0	0	0
Securities sold, not yet purchased [Abstract]
Trading - Common Stocks	0	0	0
Total securities sold, not yet purchased	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
Trading - Common stocks	0	0	0
Total investments in securities	0	0	0
Total assets at fair value	0	0	0
Securities sold, not yet purchased [Abstract]
Trading - Common Stocks	0	0	0
Total securities sold, not yet purchased	$ 0	$ 0	$ 0

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Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Taxes [Abstract]
Effective income tax rate	31.90%	37.80%	35.90%	37.50%

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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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic [Abstract]
Income from continuing operations	$ 30,861	$ 22,451	$ 84,429	$ 69,374
Income from discontinued operations, net of taxes	0	(7,482)	0	(5,528)
Net income attributable to GAMCO Investors, Inc.'s shareholders	$ 30,861	$ 14,969	$ 84,429	$ 63,846
Weighted average shares outstanding (in shares)	29,185	24,947	29,222	25,047
Basic net income per share attributable to GAMCO Investors, Inc.'s shareholders [Abstract]
Continuing operations (in dollars per share)	$ 1.06	$ 0.90	$ 2.89	$ 2.77
Discontinued operations (in dollars per share)	0	(0.30)	0	(0.22)
Basic - Total (in dollars per share)	$ 1.06	$ 0.60	$ 2.89	$ 2.55
Diluted [Abstract]
Income from continuing operations	$ 30,861	$ 22,451	$ 84,429	$ 69,374
Add interest on convertible note, net of management fee and taxes	387	0	387	0
Total income from continuing operations	31,248	22,451	84,816	69,374
Income from discontinued operations, net of taxes	0	(7,482)	0	(5,528)
Net income attributable to GAMCO Investors, Inc.'s shareholders	$ 31,248	$ 14,969	$ 84,816	$ 63,846
Weighted average shares outstanding (in shares)	29,185	24,947	29,222	25,047
Dilutive stock options and restricted stock awards (in shares)	221	294	253	290
Assumed conversion of convertible note (in shares)	1,000	0	336	0
Total (in shares)	30,406	25,241	29,811	25,337
Diluted net income per share attributable to GAMCO Investors, Inc.'s shareholders [Abstract]
Continuing operations (in dollars per share)	$ 1.03	$ 0.89	$ 2.85	$ 2.74
Discontinued operations (in dollars per share)	0	(0.30)	0	(0.22)
Diluted - Total (in dollars per share)	$ 1.03	$ 0.59	$ 2.85	$ 2.52

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Debt (Details) $ / shares in Units, shares in Millions					3 Months Ended			9 Months Ended
	Mar. 18, 2016 USD ($)	Nov. 18, 2015 USD ($)	May 31, 2011 USD ($)	Dec. 31, 2010 USD ($) $ / shares	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Sep. 30, 2015 USD ($) Debenture	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($) Debenture	Aug. 15, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($)	Nov. 30, 2015 USD ($)	May 04, 2015 USD ($)
Long-term debt [Abstract]
Carrying value					$ 233,941,000		$ 106,197,000	$ 233,941,000	$ 106,197,000		$ 309,097,000
Fair value					238,592,000		113,425,000	238,592,000	113,425,000		309,437,000
Loss on extinguishment of debt								0	(310,000)
Prepayment of debt								150,000,000	0
Principal amount outstanding					233,941,000		106,197,000	233,941,000	106,197,000		309,097,000
4.5% Convertible Notes [Member]
Long-term debt [Abstract]
Carrying value					109,826,000		0	109,826,000	0		0
Fair value					$ 112,172,000		0	$ 112,172,000	0		0
Debt instrument, interest rate					4.50%			4.50%		4.50%
Debt instrument, term								5 years
Face value of debt										$ 110,000,000
Debt instrument, maturity date								Aug. 15, 2021
Debt issuance costs					$ 174,000			$ 174,000		$ 174,000
Principal amount outstanding					109,826,000		0	109,826,000	0		0
4.5% Convertible Notes [Member] | Common Class A [Member]
Long-term debt [Abstract]
Debt instrument, conversion price (in dollars per share) | $ / shares										$ 55.00
Debt instrument, shares issuable in conversion (in shares) | shares										2
AC 4% PIK Note [Member]
Long-term debt [Abstract]
Carrying value					100,000,000		0	100,000,000	0		250,000,000
Fair value					$ 101,347,000		0	$ 101,347,000	0		250,000,000
Debt instrument, interest rate					4.00%			4.00%				4.00%
Face value of debt					$ 100,000,000			$ 100,000,000				$ 250,000,000
Debt instrument, maturity date								Nov. 30, 2020
Prepayment of debt					150,000,000
Principal amount outstanding					100,000,000		0	$ 100,000,000	0		250,000,000
AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2016 [Member]
Long-term debt [Abstract]
Prepayment of debt					50,000,000
AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2017 [Member]
Long-term debt [Abstract]
Face value of debt					10,000,000			10,000,000
Prepayment of debt					40,000,000
AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2018 [Member]
Long-term debt [Abstract]
Face value of debt					20,000,000			20,000,000
Prepayment of debt					30,000,000
AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2019 [Member]
Long-term debt [Abstract]
Face value of debt					20,000,000			20,000,000
Prepayment of debt					30,000,000
AC 4% PIK Note [Member] | Principal Amount Due on November 30, 2020 [Member]
Long-term debt [Abstract]
Face value of debt					50,000,000			50,000,000
Loan from GGCP [Member]
Long-term debt [Abstract]
Carrying value					0		0	0	0		35,000,000
Fair value					$ 0		0	$ 0	0		35,000,000
Debt instrument, term					1 year
Face value of debt											35,000,000
Debt instrument, maturity date								Dec. 28, 2016
Principal amount outstanding					$ 0		0	$ 0	0		35,000,000
Repayment of debt	$ 15,000,000					$ 20,000,000
Loan from GGCP [Member] | 90-day LIBOR [Member]
Long-term debt [Abstract]
Debt instrument, basis spread on variable rate					3.25%
5.875% Senior Notes [Member]
Long-term debt [Abstract]
Carrying value					$ 24,115,000		99,447,000	24,115,000	99,447,000		24,097,000
Fair value					$ 25,073,000		$ 106,625,000	$ 25,073,000	$ 106,625,000		$ 24,437,000
Debt instrument, interest rate			5.875%		5.875%		5.875%	5.875%	5.875%		5.875%
Debt instrument, term								10 years
Face value of debt		$ 100,000,000	$ 100,000,000
Debt instrument, maturity date								Jun. 01, 2021
Debt issuance costs					$ 110,000		$ 553,000	$ 110,000	$ 553,000		$ 128,000
Debt redemption price		101.00%	101.00%
Debt instrument, repurchased face amount		$ 75,800,000
Principal amount outstanding					24,115,000		99,447,000	24,115,000	99,447,000		24,097,000
0% Subordinated Debentures [Member]
Long-term debt [Abstract]
Carrying value					0		6,750,000	0	6,750,000		0
Fair value					$ 0		$ 6,800,000	$ 0	$ 6,800,000		0
Debt instrument, interest rate				0.00%	0.00%			0.00%
Debt instrument, term								5 years
Face value of debt				$ 86,400,000
Effective interest rate				7.45%
Debt instrument, maturity date								Dec. 31, 2015
Debt redemption price				100.00%
Dividend, date of record								Dec. 15, 2010
Dividends declared related to issuance of debt (in dollars per share) | $ / shares				$ 3.20
Par value of debentures (in dollars per share) | $ / shares				$ 100
Number of debentures repurchased | Debenture							16		62,242
Face value of repurchased debentures							$ 1,600.0		$ 6,200,000
Loss on extinguishment of debt							(1,000)		(310,000)
Principal amount outstanding					$ 0		$ 6,750,000	$ 0	$ 6,750,000		$ 0
Maximum amount of debt and equity to be issued under shelf registration													$ 500,000,000
Amount available for debt and equity issuance under shelf registration					$ 500,000,000			$ 500,000,000

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Stockholders' Equity, Dividends (Details) - $ / shares shares in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Stockholders' Equity [Abstract]
Shares outstanding (in shares)	29.5			25.5			29.5	25.5	29.8
Dividends Payable [Line Items]
Dividends declared (in dollars per share)	$ 0.02			$ 0.07			$ 0.06	$ 0.21
Quarterly Dividend [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)							$ 0.06	$ 0.21
Quarterly Dividend Declared in Q1 2016 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)			$ 0.02
Dividend payment date							Mar. 29, 2016
Dividend record date							Mar. 15, 2016
Quarterly Dividend Declared in Q2 2016 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)		$ 0.02
Dividend payment date							Jun. 28, 2016
Dividend record date							Jun. 14, 2016
Quarterly Dividend Declared in Q3 2016 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)	$ 0.02
Dividend payment date							Sep. 27, 2016
Dividend record date							Sep. 13, 2016
Quarterly Dividend Declared in Q1 2015 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)						$ 0.07
Dividend payment date							Mar. 31, 2015
Dividend record date							Mar. 17, 2015
Quarterly Dividend Declared in Q2 2015 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)					$ 0.07
Dividend payment date							Jun. 30, 2015
Dividend record date							Jun. 16, 2015
Quarterly Dividend Declared in Q3 2015 [Member]
Dividends Payable [Line Items]
Dividends declared (in dollars per share)				$ 0.07
Dividend payment date							Sep. 29, 2015
Dividend record date							Sep. 15, 2015

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Stockholders' Equity, Voting Rights, Stock Award and Incentive Plan (Details)	3 Months Ended							9 Months Ended		12 Months Ended
	Sep. 30, 2016 USD ($) $ / shares shares	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($) $ / shares shares	Sep. 30, 2015 USD ($) $ / shares shares	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Sep. 30, 2016 USD ($) VoteperShare Plan $ / shares shares	Sep. 30, 2015 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares
Stock Award and Incentive Plan [Abstract]
Number of incentive plans | Plan								2
Actual and projected stock based compensation expense for RSA shares and options [Abstract]
Actual stock based compensation expense			$ 1,037,000	$ 4,945,000	$ 1,644,000	$ 1,640,000	$ 1,639,000	$ 3,258,000	$ 4,923,000	$ 9,868,000
2016	$ 3,950,000							3,950,000
2017	2,492,000							2,492,000
2018	1,685,000							1,685,000
2019	1,348,000							1,348,000
2020	737,000							737,000
2021	497,000							497,000
2022	300,000							300,000
2023	127,000							127,000
2024	19,000							19,000
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Compensation cost related to non-vested options not yet recognized	$ 7,900,000							$ 7,900,000
Stock options exercised (in shares) | shares	0				26,000			0	26,000
Proceeds from exercise of stock options					$ 1,167,000				$ 1,167,000
Tax benefit from exercise of stock options					$ 102,000				$ 102,000
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	427,290			553,100	688,550			427,290	688,550	553,100
Average weighted grant price (in dollars per share) | $ / shares	$ 65.72			$ 64.02	$ 67.34			$ 65.72	$ 67.34	$ 64.02
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%
Q1 [Member]
Actual and projected stock based compensation expense for RSA shares and options [Abstract]
2017	$ 685,000							$ 685,000
2018	464,000							464,000
2019	365,000							365,000
2020	219,000							219,000
2021	145,000							145,000
2022	93,000							93,000
2023	48,000							48,000
2024	7,000							7,000
Q2 [Member]
Actual and projected stock based compensation expense for RSA shares and options [Abstract]
Actual stock based compensation expense		$ 1,036,000
2017	685,000							685,000
2018	453,000							453,000
2019	365,000							365,000
2020	204,000							204,000
2021	145,000							145,000
2022	93,000							93,000
2023	48,000							48,000
2024	7,000							7,000
Q3 [Member]
Actual and projected stock based compensation expense for RSA shares and options [Abstract]
2016	1,186,000							1,186,000
2017	602,000							602,000
2018	402,000							402,000
2019	323,000							323,000
2020	169,000							169,000
2021	114,000							114,000
2022	66,000							66,000
2023	24,000							24,000
2024	5,000							5,000
Q4 [Member]
Actual and projected stock based compensation expense for RSA shares and options [Abstract]
2016	691,000							691,000
2017	520,000							520,000
2018	366,000							366,000
2019	295,000							295,000
2020	145,000							145,000
2021	93,000							93,000
2022	48,000							48,000
2023	7,000							7,000
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	3,500,000							3,500,000
Class B [Member]
Voting Rights [Abstract]
Number of votes per share | VoteperShare								10

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Stockholders' Equity, Stock Repurchase Program (Details) - $ / shares	3 Months Ended		9 Months Ended		213 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016
Stock Repurchase Program [Abstract]
Shares repurchased (in shares)	223,811	172,007	266,846	321,488	9,819,499
Average price per share of repurchased shares (in dollars per share)	$ 31.50	$ 61.11	$ 31.41	$ 66.96	$ 44.44
Share available under program to repurchase (in shares)	315,309		315,309		315,309

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Identifiable Intangible Assets (Details) - Investment Advisory Contract [Member] - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Gabelli Enterprise Mergers and Acquisitions Fund [Member]
Finite-Lived Intangible Assets [Line Items]
Identifiable intangible asset	$ 1.9	$ 1.9	$ 1.9
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

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Discontinued Operations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Other income (expense) [Abstract]
Income from discontinued operations, net of taxes	$ 0	$ (7,482,000)	$ 0	$ (5,528,000)
Assets and Liabilities of Discontinued Operations [Abstract]
Total assets of discontinued operations	0	706,523,000	0	706,523,000	$ 0
Total liabilities of discontinued operations	$ 0	66,614,000	0	66,614,000	$ 0
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | Associated Capital Group, Inc. [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on spin-off			$ 0
Costs incurred with respect to spin-off		0		1,500,000
Revenues [Abstract]
Investment advisory and incentive fees		2,560,000		6,954,000
Distribution fees and other income		41,000		276,000
Institutional research services		2,446,000		7,278,000
Total revenues		5,047,000		14,508,000
Expenses [Abstract]
Compensation		5,079,000		16,555,000
Stock based compensation		630,000		1,895,000
Management fee		(1,374,000)		(1,025,000)
Distribution costs		(19,000)		(82,000)
Other operating expenses		1,811,000		6,922,000
Total expenses		6,127,000		24,265,000
Operating loss		(1,080,000)		(9,757,000)
Other income (expense) [Abstract]
Net gain from investments		(11,539,000)		(834,000)
Interest and dividend income		551,000		2,303,000
Interest expense		(322,000)		(984,000)
Total other income (expense), net		(11,310,000)		485,000
Income from discontinued operations before income taxes		(12,390,000)		(9,272,000)
Income tax provision		(4,390,000)		(3,155,000)
Income from discontinued operations, net of taxes		(8,000,000)		(6,117,000)
Net loss attributable to noncontrolling interests		(518,000)		(589,000)
Net income attributable to GAMCO Investors, Inc.'s discontinued operations, net of taxes		(7,482,000)		(5,528,000)
Assets and Liabilities of Discontinued Operations [Abstract]
Cash and cash equivalents		363,055,000		363,055,000
Investments in securities		92,822,000		92,822,000
Investments in sponsored registered investment companies		115,046,000		115,046,000
Investments in partnerships		101,025,000		101,025,000
Receivable from brokers		51,761,000		51,761,000
Investment advisory fees receivable		1,991,000		1,991,000
Receivable from affiliates		(27,957,000)		(27,957,000)
Income tax receivable		0		0
Other assets		8,780,000		8,780,000
Total assets of discontinued operations		706,523,000		706,523,000
Payable to brokers		48,541,000		48,541,000
Income taxes payable and deferred tax liabilities		4,566,000		4,566,000
Compensation payable		5,047,000		5,047,000
Securities sold, not yet purchased		5,577,000		5,577,000
Payable to affiliates		(153,000)		(153,000)
Mandatorily redeemable noncontrolling interests		1,257,000		1,257,000
Accrued expenses and other liabilities		1,779,000		1,779,000
Total liabilities of discontinued operations		66,614,000		66,614,000
Redeemable noncontrolling interests from discontinued operations		6,018,000		6,018,000
Noncontrolling interests from discontinued operations		2,635,000		2,635,000
Net assets of discontinued operations		$ 631,256,000		$ 631,256,000

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Subsequent Events (Details) - $ / shares		1 Months Ended	3 Months Ended		9 Months Ended		213 Months Ended
	Nov. 04, 2016	Nov. 04, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016
Subsequent Event [Line Items]
Average price per share of repurchased shares (in dollars per share)			$ 31.50	$ 61.11	$ 31.41	$ 66.96	$ 44.44
Dividends declared (in dollars per share)			$ 0.02	$ 0.07	0.06	0.21
Quarterly Dividend [Member]
Subsequent Event [Line Items]
Dividends declared (in dollars per share)					$ 0.06	$ 0.21
Subsequent Event [Member]
Subsequent Event [Line Items]
Stock repurchased (in shares)		60,237
Average price per share of repurchased shares (in dollars per share)		$ 29.06
Subsequent Event [Member] | Quarterly Dividend Declared in Q4 2016 [Member]
Subsequent Event [Line Items]
Dividends declared (in dollars per share)	$ 0.02
Dividends declared date	Nov. 04, 2016
Dividends payable date	Dec. 27, 2016
Dividends record date	Dec. 13, 2016