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Supplemental Guarantor Consolidated Financial Statements
12 Months Ended
Dec. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Supplemental Guarantor Consolidated Financial Statements
Supplemental guarantor condensed consolidated financial statements
The Company’s Notes are jointly and severally and fully and unconditionally guaranteed on a senior basis by E.A. Viner International Co. and Viner Finance Inc. (together, the “Guarantors”), unless released as described below. Each of the Guarantors is 100% owned by the Company. The following consolidating financial statements present the financial position, results of operations and cash flows of the Company (referred to as “Parent” for purposes of this note only), the Guarantor subsidiaries, the Non-Guarantor subsidiaries and elimination entries necessary to consolidate the Company. Investments in subsidiaries are accounted for using the equity method for purposes of the consolidated presentation.
Each Guarantor will be automatically and unconditionally released and discharged upon: the sale, exchange or transfer of the capital stock of a Guarantor and the Guarantor ceasing to be a direct or indirect subsidiary of the Company if such sale does not constitute an asset sale under the indenture for the Notes or does not constitute an asset sale effected in compliance with the asset sale and merger covenants of the debenture for the Notes; a Guarantor being dissolved or liquidated; a Guarantor being designated unrestricted in compliance with the applicable provisions of the Notes; or the exercise by the Company of its legal defeasance option or covenant defeasance option or the discharge of the Company’s obligations under the indenture for the Notes in accordance with the terms of such indenture.
OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2014
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
439

 
$
1,557

 
$
61,811

 
$

 
$
63,807

Cash and securities segregated for regulatory and other purposes

 

 
18,594

 

 
18,594

Deposits with clearing organizations

 

 
36,510

 

 
36,510

Receivable from brokers, dealers and clearing organizations

 

 
314,475

 

 
314,475

Receivable from customers, net of allowance for credit losses of $2,427

 

 
864,189

 

 
864,189

Income tax receivable
28,070

 
27,304

 

 
(51,134
)
 
4,240

Securities purchased under agreements to resell

 

 
251,606

 

 
251,606

Securities owned, including amounts pledged of $518,123 at fair value

 
5,806

 
837,349

 

 
843,155

Notes receivable, net of accumulated amortization and allowance for uncollectibles of $42,211 and $8,606, respectively

 

 
34,932

 

 
34,932

Office facilities, net of accumulated depreciation of $103,547

 
20,181

 
9,408

 

 
29,589

Loans held for sale

 

 
19,243

 

 
19,243

Mortgage servicing rights

 

 
30,140

 

 
30,140

Subordinated loan receivable

 
112,558

 

 
(112,558
)
 

Intangible assets

 

 
31,700

 

 
31,700

Goodwill

 

 
137,889

 

 
137,889

Other assets
1,686

 
3,803

 
101,897

 

 
107,386

Deferred tax assets
18

 
309

 
27,973

 
(28,300
)
 

Investment in subsidiaries
565,257

 
544,576

 

 
(1,109,833
)
 

Intercompany receivables
87,442

 

 

 
(87,442
)
 

Total assets
$
682,912

 
$
716,094

 
$
2,777,716

 
$
(1,389,267
)
 
$
2,787,455

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Drafts payable
$

 
$

 
$
35,373

 
$

 
$
35,373

Bank call loans

 

 
59,400

 

 
59,400

Payable to brokers, dealers and clearing organizations

 

 
257,161

 

 
257,161

Payable to customers

 

 
652,256

 

 
652,256

Securities sold under agreements to repurchase

 

 
687,440

 

 
687,440

Securities sold, but not yet purchased, at fair value

 

 
92,510

 

 
92,510

Accrued compensation

 

 
165,134

 

 
165,134

Accounts payable and other liabilities
2,828

 
35,800

 
102,724

 

 
141,352

Income tax payable
2,440

 
22,189

 
26,505

 
(51,134
)
 

Senior secured notes
150,000

 

 

 

 
150,000

Subordinated indebtedness

 

 
112,558

 
(112,558
)
 

Deferred tax liabilities

 
88

 
41,309

 
(28,300
)
 
13,097

Intercompany payables

 
76,492

 
10,950

 
(87,442
)
 

Total liabilities
155,268

 
134,569

 
2,243,320

 
(279,434
)
 
2,253,723

Stockholders’ equity
 
 
 
 
 
 
 
 
 
Stockholders’ equity attributable to Oppenheimer Holdings Inc.
527,644

 
581,525

 
528,308

 
(1,109,833
)
 
527,644

Non-controlling interest

 

 
6,088

 

 
6,088

Total stockholders’ equity
527,644

 
581,525

 
534,396

 
(1,109,833
)
 
533,732

Total liabilities and stockholders’ equity
$
682,912

 
$
716,094

 
$
2,777,716

 
$
(1,389,267
)
 
$
2,787,455

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2013
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
448

 
$
30,901

 
$
66,945

 
$

 
$
98,294

Cash and securities segregated for regulatory and other purposes

 

 
36,323

 

 
36,323

Deposits with clearing organizations

 

 
23,679

 

 
23,679

Receivable from brokers, dealers and clearing organizations

 

 
364,873

 

 
364,873

Receivable from customers, net of allowance for credit losses of $2,423

 

 
868,869

 

 
868,869

Income tax receivable
19,494

 
27,589

 

 
(40,521
)
 
6,562

Securities purchased under agreements to resell

 

 
184,825

 

 
184,825

Securities owned, including amounts pledged of $586,625, at fair value

 
2,225

 
853,863

 

 
856,088

Notes receivable, net of accumulated amortization and allowance for uncollectibles of $54,465 and $9,718, respectively

 

 
40,751

 

 
40,751

Office facilities, net of accumulated depreciation of $97,118

 
21,250

 
11,689

 

 
32,939

Loans held for sale

 

 
75,989

 

 
75,989

Mortgage servicing rights

 

 
28,879

 

 
28,879

Subordinated loan receivable

 
112,558

 

 
(112,558
)
 

Intangible assets

 

 
31,700

 

 
31,700

Goodwill

 

 
137,889

 

 
137,889

Other assets
2,797

 
27,113

 
135,150

 

 
165,060

Deferred tax assets
678

 
309

 
29,496

 
(30,483
)
 

Investment in subsidiaries (1)
546,755

 
562,248

 

 
(1,109,003
)
 

Intercompany receivables
153,528

 

 

 
(153,528
)
 

Total assets
$
723,700


$
784,193

 
$
2,890,920

 
$
(1,446,093
)
 
$
2,952,720

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Drafts payable
$

 
$

 
$
48,198

 
$

 
$
48,198

Bank call loans

 

 
118,200

 

 
118,200

Payable to brokers, dealers and clearing organizations

 

 
223,315

 

 
223,315

Payable to customers

 

 
626,564

 

 
626,564

Securities sold under agreements to repurchase

 

 
757,491

 

 
757,491

Securities sold, but not yet purchased, at fair value

 

 
76,314

 

 
76,314

Accrued compensation

 

 
180,119

 

 
180,119

Accounts payable and other liabilities
3,742

 
59,289

 
129,609

 
(88
)
 
192,552

Income tax payable
2,440

 
22,189

 
15,892

 
(40,521
)
 

Senior secured notes
195,000

 

 

 

 
195,000

Subordinated indebtedness

 

 
112,558

 
(112,558
)
 

Deferred tax liabilities

 

 
37,579

 
(30,483
)
 
7,096

Intercompany payables

 
133,421

 
20,107

 
(153,528
)
 

Total liabilities
201,182

 
214,899

 
2,345,946

 
(337,178
)
 
2,424,849

Stockholders’ equity
 
 
 
 
 
 
 
 
 
Stockholders’ equity attributable to Oppenheimer Holdings Inc. (1)
522,518

 
569,294

 
539,621

 
(1,108,915
)
 
522,518

Noncontrolling interest

 

 
5,353

 

 
5,353

Total stockholders’ equity
522,518

 
569,294

 
544,974

 
(1,108,915
)
 
527,871

Total liabilities and stockholders’ equity
$
723,700

 
$
784,193

 
$
2,890,920

 
$
(1,446,093
)
 
$
2,952,720

(1)
The Company revised amounts previously disclosed as Investment in Subsidiaries and Total Shareholders’ Equity in the Condensed Consolidating Balance Sheet to properly reflect investments in subsidiaries. Offsetting amounts were adjusted in the eliminations column.

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2014
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
REVENUES
 
 
 
 
 
 
 
 
 
Commissions
$

 
$

 
$
469,829

 
$

 
$
469,829

Advisory fees

 
1,139

 
283,785

 
(3,244
)
 
281,680

Investment banking

 

 
125,598

 

 
125,598

Interest

 
10,482

 
49,193

 
(10,431
)
 
49,244

Principal transactions, net

 
164

 
29,535

 

 
29,699

Other

 
477

 
48,362

 
(425
)
 
48,414

Total revenue

 
12,262

 
1,006,302

 
(14,100
)
 
1,004,464

EXPENSES
 
 
 
 
 
 
 
 
 
Compensation and related expenses
1,047

 

 
663,594

 

 
664,641

Communications and technology
145

 

 
67,025

 

 
67,170

Occupancy and equipment costs

 

 
63,437

 
(425
)
 
63,012

Clearing and exchange fees

 

 
24,709

 

 
24,709

Interest
14,401

 

 
13,831

 
(10,431
)
 
17,801

Other
4,626

 
733

 
139,280

 
(3,244
)
 
141,395

Total expenses
20,219

 
733

 
971,876

 
(14,100
)
 
978,728

Income (loss) before income taxes
(20,219
)
 
11,529

 
34,426

 

 
25,736

Income tax provision (benefit)
(7,917
)
 
3,971

 
20,121

 

 
16,175

Equity in earnings of subsidiaries
21,128

 
13,570

 

 
(34,698
)
 

Net income for the year
8,826

 
21,128

 
14,305

 
(34,698
)
 
9,561

Less net income attributable to non-controlling interest, net of tax

 

 
735

 

 
735

Net income attributable to Oppenheimer Holdings Inc.
8,826

 
21,128

 
13,570

 
(34,698
)
 
8,826

Other comprehensive income (loss)

 

 
(2,627
)
 

 
(2,627
)
Total comprehensive income
$
8,826

 
$
21,128

 
$
10,943

 
$
(34,698
)
 
$
6,199

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2013
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
REVENUES
 
 
 
 
 
 
 
 
 
Commissions
$

 
$

 
$
486,767

 
$

 
$
486,767

Advisory fees

 
825

 
276,913

 
(3,560
)
 
274,178

Investment banking

 

 
97,977

 

 
97,977

Interest
5

 
11,128

 
53,401

 
(11,318
)
 
53,216

Principal transactions, net

 
79

 
43,689

 

 
43,768

Other

 
180

 
63,808

 
(180
)
 
63,808

Total revenue
5

 
12,212

 
1,022,555

 
(15,058
)
 
1,019,714

EXPENSES
 
 
 
 
 
 
 
 
 
Compensation and related expenses
1,124

 

 
674,812

 

 
675,936

Communications and technology
119

 

 
65,698

 

 
65,817

Occupancy and equipment costs

 

 
66,938

 
(180
)
 
66,758

Clearing and exchange fees

 

 
24,481

 

 
24,481

Interest
17,500

 

 
19,960

 
(11,318
)
 
26,142

Other
1,309

 
522

 
118,400

 
(3,560
)
 
116,671

Total expenses
20,052

 
522

 
970,289

 
(15,058
)
 
975,805

Income (loss) before income taxes
(20,047
)
 
11,690

 
52,266

 

 
43,909

Income tax provision (benefit)
(7,110
)
 
5,638

 
19,228

 

 
17,756

Equity in earnings of subsidiaries (1)

37,998

 
31,946

 

 
(69,944
)
 

Net income for the year
25,061

 
37,998

 
33,038

 
(69,944
)
 
26,153

Less net income attributable to non-controlling interest, net of tax

 

 
1,092

 

 
1,092

Net income attributable to Oppenheimer Holdings Inc.
25,061

 
37,998

 
31,946

 
(69,944
)
 
25,061

Other comprehensive income (loss)
(3
)
 

 
1,505

 

 
1,502

Total comprehensive income
$
25,058

 
$
37,998

 
$
33,451

 
$
(69,944
)
 
$
26,563

(1)
The Company revised amounts in Equity in Earnings of Subsidiaries in the Condensed Consolidating Statement of Operations to properly reflect investments in subsidiaries. Offsetting amounts were adjusted in the eliminations column.

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2012
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
REVENUES
 
 
 
 
 
 
 
 
 
Commissions
$

 
$

 
$
469,865

 
$

 
$
469,865

Advisory fees

 

 
225,226

 
(2,494
)
 
222,732

Investment banking

 

 
89,477

 

 
89,477

Interest

 
12,070

 
57,452

 
(11,860
)
 
57,662

Principal transactions, net

 
752

 
53,559

 

 
54,311

Other

 
168

 
58,565

 
(168
)
 
58,565

Total revenue

 
12,990

 
954,144

 
(14,522
)
 
952,612

EXPENSES
 
 
 
 
 
 
 
 
 
Compensation and related expenses
397

 

 
626,014

 

 
626,411

Communications and technology
81

 

 
63,278

 

 
63,359

Occupancy and equipment costs

 

 
62,986

 
(168
)
 
62,818

Clearing and exchange fees

 

 
23,750

 

 
23,750

Interest
17,500

 

 
29,447

 
(11,861
)
 
35,086

Other
1,475

 
60

 
142,673

 
(2,493
)
 
141,715

Total expenses
19,453

 
60

 
948,148

 
(14,522
)
 
953,139

Income (loss) before income taxes
(19,453
)
 
12,930

 
5,996

 

 
(527
)
Income tax provision (benefit)
(6,315
)
 
6,093

 
546

 

 
324

Equity in earnings of subsidiaries

9,525

 

 

 
(9,525
)
 

Net income (loss) for the year
(3,613
)
 
6,837

 
5,450

 
(9,525
)
 
(851
)
Less net income attributable to non-controlling interest, net of tax

 

 
2,762

 

 
2,762

Net income (loss) attributable to Oppenheimer Holdings Inc.
(3,613
)
 
6,837

 
2,688

 
(9,525
)
 
(3,613
)
Other comprehensive income

 

 
415

 

 
415

Total comprehensive income (loss)
$
(3,613
)
 
$
6,837

 
$
3,103

 
$
(9,525
)
 
$
(3,198
)

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2014
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Cash provided by (used in) continuing operations
$
49,595

 
$
(29,344
)
 
$
58,064

 
$

 
$
78,315

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Purchase of office facilities

 

 
(4,398
)
 

 
(4,398
)
Cash used in investing activities

 

 
(4,398
)
 

 
(4,398
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Cash dividends paid on Class A non-voting and Class B voting common stock
(5,983
)
 

 

 

 
(5,983
)
Issuance of Class A non-voting common stock
185

 

 

 

 
185

Tax benefit from share-based awards
1,194

 

 

 

 
1,194

Redemption of senior secured notes
(45,000
)
 

 

 

 
(45,000
)
Decrease in bank call loans, net


 

 
(58,800
)
 

 
(58,800
)
Cash flow used in financing activities
(49,604
)
 

 
(58,800
)
 

 
(108,404
)
Net decrease in cash and cash equivalents
(9
)
 
(29,344
)
 
(5,134
)
 

 
(34,487
)
Cash and cash equivalents, beginning of the year
448

 
30,901

 
66,945

 

 
98,294

Cash and cash equivalents, end of the year
$
439

 
$
1,557

 
$
61,811

 
$

 
$
63,807

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2013
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Cash provided by (used in) continuing operations
$
9,944

 
$
(9,757
)
 
$
(3,616
)
 
$

 
$
(3,429
)
Cash flows from investing activities

 

 

 

 

Purchase of office facilities

 

 
(14,012
)
 

 
(14,012
)
Cash used in investing activities

 

 
(14,012
)
 

 
(14,012
)
Cash flows from financing activities

 

 

 

 

Cash dividends paid on Class A non-voting and Class B voting common stock
(5,978
)
 

 

 

 
(5,978
)
Issuance of Class A non-voting common stock
150

 

 

 

 
150

Repurchase of Class A non-voting common stock for cancellation
(3,625
)
 

 

 

 
(3,625
)
Tax deficiency from share-based awards
(78
)
 

 

 

 
(78
)
Decrease in bank call loans, net

 

 
(10,100
)
 

 
(10,100
)
Cash flow used in financing activities
(9,531
)
 

 
(10,100
)
 

 
(19,631
)
Net increase (decrease) in cash and cash equivalents
413

 
(9,757
)
 
(27,728
)
 

 
(37,072
)
Cash and cash equivalents, beginning of the year
35

 
40,658

 
94,673

 

 
135,366

Cash and cash equivalents, end of the year
$
448

 
$
30,901

 
$
66,945

 
$

 
$
98,294

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2012
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operations:
 
 
 
 
 
 
 
 
 
Cash provided by (used in) continuing operations
$
6,052

 
$
31,776

 
$
(47,280
)
 
$

 
$
(9,452
)
Cash flows from investing activities

 

 

 

 

Purchase of office facilities

 

 
(14,739
)
 

 
(14,739
)
Cash used in investing activities

 

 
(14,739
)
 

 
(14,739
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Cash dividends paid on Class A non-voting and Class B voting common stock
(5,986
)
 

 

 

 
(5,986
)
Repurchase of Class A non-voting common stock for cancellation
(1,866
)
 

 

 

 
(1,866
)
Tax deficiency from share-based awards
(720
)
 

 

 

 
(720
)
Acquisition of non-controlling interest

 
(3,000
)
 

 

 
(3,000
)
Increase in bank call loans, net

 

 
100,800

 

 
100,800

Cash flow provided by (used in) financing activities
(8,572
)
 
(3,000
)
 
100,800

 

 
89,228

Net increase (decrease) in cash and cash equivalents
(2,520
)
 
28,776

 
38,781

 

 
65,037

Cash and cash equivalents, beginning of the year
2,555

 
11,882

 
55,892

 

 
70,329

Cash and cash equivalents, end of the year
$
35

 
$
40,658

 
$
94,673

 
$

 
$
135,366