XML 32 R22.htm IDEA: XBRL DOCUMENT v3.7.0.1
Supplemental Guarantor Consolidated Financial Statements
3 Months Ended
Mar. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Supplemental Guarantor Consolidated Financial Statements
Condensed consolidating financial information
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 indenture for the Notes contains covenants with restrictions which are discussed in Note 9. The following condensed consolidating financial information presents 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.
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 indenture 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 MARCH 31, 2017
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
906

 
$
14,384

 
$
47,131

 
$
—

 
$
62,421

Deposits with clearing organizations
—

 
—

 
41,902

 
—

 
41,902

Receivable from brokers, dealers and clearing organizations
—

 
—

 
232,682

 
—

 
232,682

Receivable from customers, net of allowance for credit losses of $761
—

 
—

 
830,084

 
—

 
830,084

Income tax receivable
43,251

 
28,284

 
—

 
(62,416
)
 
9,119

Securities purchased under agreements to resell
—

 
—

 
3,896

 
—

 
3,896

Securities owned, including amounts pledged of $705,988, at fair value
—

 
23,742

 
978,963

 
—

 
1,002,705

Notes receivable, net of accumulated amortization and allowance for uncollectibles of $23,866 and $7,300, respectively
—

 
—

 
33,808

 
—

 
33,808

Furniture, equipment and leasehold improvements, net of accumulated depreciation of $85,672
—

 
21,489

 
5,862

 
—

 
27,351

Assets held for sale
—

 
—

 
1,330

 
—

 
1,330

Subordinated loan receivable
—

 
112,558

 
—

 
(112,558
)
 
—

Intangible assets
—

 
—

 
31,700

 
—

 
31,700

Goodwill
—

 
—

 
137,889

 
—

 
137,889

Other assets
83

 
927

 
109,530

 
—

 
110,540

Deferred tax assets
666

 
—

 
34,280

 
(34,946
)
 
—

Investment in subsidiaries
583,798

 
473,618

 
—

 
(1,057,416
)
 
—

Intercompany receivables
30,076

 
43,750

 
—

 
(73,826
)
 
—

Total assets
$
658,780

 
$
718,752

 
$
2,489,057

 
$
(1,341,162
)
 
$
2,525,427

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Drafts payable
$
—

 
$
—

 
$
32,783

 
$
—

 
$
32,783

Bank call loans
—

 
—

 
195,700

 
—

 
195,700

Payable to brokers, dealers and clearing organizations
—

 
—

 
175,204

 
—

 
175,204

Payable to customers
—

 
—

 
504,348

 
—

 
504,348

Securities sold under agreements to repurchase
—

 
—

 
456,090

 
—

 
456,090

Securities sold but not yet purchased, at fair value
—

 
—

 
299,472

 
—

 
299,472

Liabilities held for sale
—

 
—

 
1,421

 
—

 
1,421

Accrued compensation
—

 
—

 
95,164

 
—

 
95,164

Accounts payable and other liabilities
6,193

 
34,248

 
58,808

 
—

 
99,249

Income tax payable
2,440

 
22,189

 
37,787

 
(62,416
)
 
—

Senior secured notes, net of debt issuance cost of $527
149,473

 
—

 
—

 
—

 
149,473

Subordinated indebtedness
—

 
—

 
112,558

 
(112,558
)
 
—

Deferred tax liabilities
—

 
22

 
48,868

 
(34,946
)
 
13,944

Intercompany payables
—

 
62,163

 
11,663

 
(73,826
)
 
—

Total liabilities
158,106

 
118,622

 
2,029,866

 
(283,746
)
 
2,022,848

Stockholders' equity
 
 
 
 
 
 
 
 
 
Stockholders' equity attributable to Oppenheimer Holdings Inc.
500,674

 
600,130

 
457,286

 
(1,057,416
)
 
500,674

Noncontrolling interest
—

 
—

 
1,905

 
—

 
1,905

Total stockholders' equity
500,674

 
600,130

 
459,191

 
(1,057,416
)
 
502,579

Total liabilities and stockholders' equity
$
658,780

 
$
718,752

 
$
2,489,057

 
$
(1,341,162
)
 
$
2,525,427

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2016
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
229

 
$
10,284

 
$
54,400

 
$
—

 
$
64,913

Deposits with clearing organizations
—

 
—

 
38,185

 
—

 
38,185

Receivable from brokers, dealers and clearing organizations
—

 
—

 
214,934

 
—

 
214,934

Receivable from customers, net of allowance for credit losses of $794
—

 
—

 
847,386

 
—

 
847,386

Income tax receivable
41,996

 
28,289

 
—

 
(64,469
)
 
5,816

Securities purchased under agreements to resell
—

 
—

 
24,006

 
—

 
24,006

Securities owned, including amounts pledged of $438,385, at fair value
—

 
23,227

 
683,881

 
—

 
707,108

Notes receivable, net of accumulated amortization and allowance for uncollectibles of $24,826 and $6,784, respectively
—

 
—

 
30,099

 
—

 
30,099

Furniture, equipment and leasehold improvements, net of accumulated depreciation of $84,073
—

 
21,963

 
5,270

 
—

 
27,233

Assets held for sale
—

 
—

 
5,188

 
—

 
5,188

Subordinated loan receivable
—

 
112,558

 
—

 
(112,558
)
 
—

Intangible assets
—

 
—

 
31,700

 
—

 
31,700

Goodwill
—

 
—

 
137,889

 
—

 
137,889

Other assets
71

 
2,598

 
99,804

 
—

 
102,473

Deferred tax assets
394

 
309

 
37,961

 
(38,664
)
 
—

Investment in subsidiaries
584,767

 
483,623

 
—

 
(1,068,390
)
 
—

Intercompany receivables
37,906

 
37,914

 
—

 
(75,820
)
 
—

Total assets
$
665,363


$
720,765

 
$
2,210,703

 
$
(1,359,901
)
 
$
2,236,930

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Drafts payable
$
—

 
$
—

 
$
39,228

 
$
—

 
$
39,228

Bank call loans
—

 
—

 
145,800

 
—

 
145,800

Payable to brokers, dealers and clearing organizations
—

 
—

 
221,389

 
—

 
221,389

Payable to customers
—

 
—

 
449,946

 
—

 
449,946

Securities sold under agreements to repurchase
—

 
—

 
378,084

 
—

 
378,084

Securities sold but not yet purchased, at fair value
—

 
—

 
85,050

 
—

 
85,050

Liabilities held for sale
—

 
—

 
1,217

 
—

 
1,217

Accrued compensation
—

 
—

 
145,053

 
—

 
145,053

Accounts payable and other liabilities
2,868

 
34,920

 
57,552

 
—

 
95,340

Income tax payable
2,440

 
22,189

 
39,840

 
(64,469
)
 
—

Senior secured notes, net of debt issuance costs of $648
149,352

 
—

 
—

 
—

 
149,352

Subordinated indebtedness
—

 
—

 
112,558

 
(112,558
)
 
—

Deferred tax liabilities
—

 
7

 
51,794

 
(38,664
)
 
13,137

Intercompany payables
—

 
62,205

 
13,615

 
(75,820
)
 
—

Total liabilities
154,660

 
119,321

 
1,741,126

 
(291,511
)
 
1,723,596

Stockholders' equity
 
 
 
 
 
 
 
 
 
Stockholders' equity attributable to Oppenheimer Holdings Inc.
510,703

 
601,444

 
466,946

 
(1,068,390
)
 
510,703

Noncontrolling interest
—

 
—

 
2,631

 
—

 
2,631

Total stockholders' equity
510,703

 
601,444

 
469,577

 
(1,068,390
)
 
513,334

Total liabilities and stockholders' equity
$
665,363

 
$
720,765

 
$
2,210,703

 
$
(1,359,901
)
 
$
2,236,930


OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2017
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
REVENUES
 
 
 
 
 
 
 
 
 
Commissions
$
—

 
$
—

 
$
86,717

 
$
—

 
$
86,717

Advisory fees
—

 
—

 
69,729

 
(320
)
 
69,409

Investment banking
—

 
—

 
18,021

 
—

 
18,021

Interest
—

 
2,579

 
10,562

 
(2,576
)
 
10,565

Principal transactions, net
—

 
6

 
5,367

 
—

 
5,373

Other
—

 
88

 
23,176

 
(88
)
 
23,176

Total revenue
—

 
2,673

 
213,572

 
(2,984
)
 
213,261

EXPENSES
 
 
 
 
 
 
 
 
 
Compensation and related expenses
338

 
—

 
143,540

 
—

 
143,878

Communications and technology
30

 
—

 
17,676

 
—

 
17,706

Occupancy and equipment costs
—

 
—

 
15,360

 
(88
)
 
15,272

Clearing and exchange fees
—

 
—

 
5,854

 
—

 
5,854

Interest
3,281

 
—

 
4,651

 
(2,576
)
 
5,356

Other
327

 
72

 
32,141

 
(320
)
 
32,220

Total expenses
3,976

 
72

 
219,222

 
(2,984
)
 
220,286

Income (loss) before income taxes
(3,976
)
 
2,601

 
(5,650
)
 
—

 
(7,025
)
Income taxes
(1,528
)
 
920

 
(1,079
)
 
—

 
(1,687
)
Net income (loss) from continuing operations
(2,448
)
 
1,681

 
(4,571
)
 
—

 
(5,338
)
 
 
 
 
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
 
 
 
 
Income from discontinued operations
—

 
—

 
976

 
—

 
976

Income taxes
—

 
—

 
389

 
—

 
389

Net income from discontinued operations
—

 
—

 
587

 
—

 
587

 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries
(2,399
)
 
(4,080
)
 
—

 
6,479

 
—

Net loss
(4,847
)
 
(2,399
)
 
(3,984
)
 
6,479

 
(4,751
)
Less net income attributable to noncontrolling interest, net of tax
—

 
—

 
96

 
—

 
96

Net loss attributable to Oppenheimer Holdings Inc.
(4,847
)
 
(2,399
)
 
(4,080
)
 
6,479

 
(4,847
)
Other comprehensive income
—

 
—

 
1,424

 
—

 
1,424

Total comprehensive loss
$
(4,847
)
 
$
(2,399
)
 
$
(2,656
)
 
$
6,479

 
$
(3,423
)
OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2016
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
REVENUES
 
 
 
 
 
 
 
 
 
Commissions
$
—

 
$
—

 
$
103,833

 
$
—

 
$
103,833

Advisory fees
—

 
—

 
66,379

 
(353
)
 
66,026

Investment banking
—

 
—

 
12,383

 
—

 
12,383

Interest
—

 
2,557

 
13,052

 
(2,567
)
 
13,042

Principal transactions, net
—

 
30

 
6,588

 
—

 
6,618

Other
—

 
78

 
13,054

 
(78
)
 
13,054

Total revenue
—

 
2,665

 
215,289

 
(2,998
)
 
214,956

EXPENSES
 
 
 
 
 
 
 
 
 
Compensation and related expenses
387

 
—

 
148,108

 
—

 
148,495

Communications and technology
28

 
—

 
17,652

 
—

 
17,680

Occupancy and equipment costs
—

 
—

 
14,981

 
(78
)
 
14,903

Clearing and exchange fees
—

 
—

 
6,921

 
—

 
6,921

Interest
3,281

 
—

 
4,153

 
(2,567
)
 
4,867

Other
673

 
3

 
29,107

 
(353
)
 
29,430

Total expenses
4,369

 
3

 
220,922

 
(2,998
)
 
222,296

Income (loss) before income taxes
(4,369
)
 
2,662

 
(5,633
)
 
—

 
(7,340
)
Income taxes
(1,714
)
 
1,004

 
(3,338
)
 
—

 
(4,048
)
Net income (loss) from continuing operations
(2,655
)
 
1,658

 
(2,295
)
 
—

 
(3,292
)
 
 
 
 
 
 
 
 
 
 
Discontinued operations
 
 
 
 
 
 
 
 
 
Loss from discontinued operations
—

 
—

 
(657
)
 
—

 
(657
)
Income taxes
—

 
—

 
(40
)
 
—

 
(40
)
Net loss from discontinued operations
—

 
—

 
(617
)
 
—

 
(617
)
 
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries
(1,192
)
 
(2,850
)
 
—

 
4,042

 
—

Net loss
(3,847
)
 
(1,192
)
 
(2,912
)
 
4,042

 
(3,909
)
Less net loss attributable to noncontrolling interest, net of tax
—

 
—

 
(62
)
 
—

 
(62
)
Net loss attributable to Oppenheimer Holdings Inc.
(3,847
)
 
(1,192
)
 
(2,850
)
 
4,042

 
(3,847
)
Other comprehensive income
—

 
—

 
873

 
—

 
873

Total comprehensive loss
$
(3,847
)
 
$
(1,192
)
 
$
(1,977
)
 
$
4,042

 
$
(2,974
)


    
OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2017
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Cash provided by (used in) operating activities
$
8,717

 
$
4,100

 
$
(54,803
)
 
$
—

 
$
(41,986
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchase of furniture, equipment and leasehold improvements
—

 
—

 
(1,550
)
 
—

 
(1,550
)
Cash used in investing activities
—

 
—

 
(1,550
)
 
—

 
(1,550
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Cash dividends paid on Class A non-voting and Class B voting common stock
(1,480
)
 
—

 
—

 
—

 
(1,480
)
Cash dividends paid to noncontrolling interest
—

 
—

 
(816
)
 
—

 
(816
)
Repurchase of Class A non-voting common stock for cancellation
(4,357
)
 
—

 
—

 
—

 
(4,357
)
Payments for employee taxes withheld related to vested share-based awards
(2,203
)
 
—

 
—

 
—

 
(2,203
)
Increase in bank call loans, net
—

 
—

 
49,900

 
—

 
49,900

Cash provided by (used in) in financing activities
(8,040
)
 
—

 
49,084

 
—

 
41,044

Net increase (decrease) in cash and cash equivalents
677

 
4,100

 
(7,269
)
 
—

 
(2,492
)
Cash and cash equivalents, beginning of the period
229

 
10,284

 
54,400

 
—

 
64,913

Cash and cash equivalents, end of the period
$
906

 
$
14,384

 
$
47,131

 
$
—

 
$
62,421

OPPENHEIMER HOLDINGS INC.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2016
(Expressed in thousands)
Parent
 
Guarantor
subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Cash provided by (used in) operating activities
$
5,740

 
$
(2,467
)
 
$
(44,045
)
 
$
—

 
$
(40,772
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 

Purchase of furniture, equipment and leasehold improvements
—

 
—

 
(1,762
)
 
—

 
(1,762
)
Cash used in investing activities
—

 
—

 
(1,762
)
 
—

 
(1,762
)
Cash flows from financing activities:

 

 

 

 

Cash dividends paid on Class A non-voting and Class B voting common stock
(1,476
)
 
—

 
—

 
—

 
(1,476
)
Repurchase of Class A non-voting common stock for cancellation
(3,634
)
 
—

 
—

 
—

 
(3,634
)
Payments for employee taxes withheld related to vested share-based awards
(1,341
)
 
—

 
—

 
—

 
(1,341
)
Increase in bank call loans, net
—

 
—

 
48,100

 
—

 
48,100

Cash provided by (used in) financing activities
(6,451
)
 
—

 
48,100

 
—

 
41,649

Net increase (decrease) in cash and cash equivalents
(711
)
 
(2,467
)
 
2,293

 
—

 
(885
)
Cash and cash equivalents, beginning of the period
907

 
2,586

 
59,871

 
—

 
63,364

Cash and cash equivalents, end of the period
$
196

 
$
119

 
$
62,164

 
$
—

 
$
62,479