Supplemental Guarantor Consolidated Financial Statements (Tables)

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2019



(Expressed in thousands)	Parent		Guarantor subsidiaries		Non-guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	4,811	$	2,179	$	72,560	$	—		$	79,550
Deposits with clearing organizations	—		—		48,415		—			48,415
Receivable from brokers, dealers and clearing organizations	—		—		158,231		5,062			163,293
Receivable from customers, net of allowance for credit losses of $451	—		—		796,934		—			796,934
Income tax receivable	42,556		16,469		—		(53,855		)	5,170
Securities owned, including amounts pledged of $357,120, at fair value	—		1,352		798,367		—			799,719
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $38,355 and $3,673, respectively	—		—		43,670		—			43,670
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $94,773	—		22,537		8,840		—			31,377
Subordinated loan receivable	209		112,558		—		(112,767		)	—
Right-of-use lease assets, net of accumulated amortization of $25,186	—		153,780		6,517		—			160,297
Intangible assets	—		400		31,700		—			32,100
Goodwill	—		—		137,889		—			137,889
Other assets	154		11,798		164,821		(10,432		)	166,341
Deferred tax assets	4		7,048		2,449		(9,501		)	—
Investment in subsidiaries	697,093		763,990		24,656		(1,485,739		)	—
Intercompany receivables	2,875		67,923		—		(70,798		)	—
Total assets	$	747,702	$	1,160,034	$	2,295,049	$	(1,738,030	)	$	2,464,755
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Payable to brokers, dealers and clearing organizations	$	—	$	—	$	520,975	$	—		$	520,975
Payable to customers	—		—		334,735		—			334,735
Securities sold under agreements to repurchase	—		—		287,265		—			287,265
Securities sold but not yet purchased, at fair value	—		—		100,571		—			100,571
Accrued compensation	—		—		207,358		—			207,358
Accounts payable and other liabilities	5,166		75		50,049		(10,565		)	44,725
Lease liabilities	—		196,234		6,906		—			203,140
Income tax payable	—		40		703		(743		)	—
Senior secured notes, net of debt issuance cost of $485	149,515		—		—		—			149,515
Subordinated indebtedness	—		—		112,558		(112,558		)	—
Deferred tax liabilities	—		—		33,546		(9,797		)	23,749
Intercompany payables	299		—		—		(299		)	—
Total liabilities	154,980		196,349		1,654,666		(133,962		)	1,872,033
Stockholders' equity
Stockholders' equity	592,722		963,685		640,383		(1,604,068		)	592,722
Total liabilities and stockholders' equity	$	747,702	$	1,160,034	$	2,295,049	$	(1,738,030	)	$	2,464,755

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2018



(Expressed in thousands)	Parent			Guarantor subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	53,526		$	3,826	$	33,323		$	—		$	90,675
Deposits with clearing organizations	—			—		67,678			—			67,678
Receivable from brokers, dealers and clearing organizations	—			—		166,493			—			166,493
Receivable from customers, net of allowance for credit losses of $886	—			—		720,777			—			720,777
Income tax receivable	45,733			23,491		(702		)	(67,508		)	1,014
Securities purchased under agreements to resell	—			—		290			—			290
Securities owned, including amounts pledged of $517,951 at fair value	—			1,358		836,226			—			837,584
Notes receivable, net of accumulated amortization and allowance for uncollectibles of $25,109 and $6,800, respectively	—			—		44,058			—			44,058
Furniture, equipment and leasehold improvements, net of accumulated depreciation of $89,182	—			20,722		8,266			—			28,988
Subordinated loan receivable	—			112,558		—			(112,558		)	—
Intangible assets	—			400		31,700			—			32,100
Goodwill	—			—		137,889			—			137,889
Other assets	135			2,581		110,052			—			112,768
Deferred tax assets	1			455		18,494			(18,950		)	—
Investment in subsidiaries	661,837			546,704		—			(1,208,541		)	—
Intercompany receivables	(14,211		)	46,840		(6,299		)	(26,330		)	—
Total assets	$	747,021		$	758,935	$	2,168,245		$	(1,433,887	)	$	2,240,314
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Drafts payable	$	—		$	—	$	16,348		$	—		$	16,348
Bank call loans	—			—		15,000			—			15,000
Payable to brokers, dealers and clearing organizations	—			—		289,207			—			289,207
Payable to customers	—			—		336,616			—			336,616
Securities sold under agreements to repurchase	—			—		484,218			—			484,218
Securities sold but not yet purchased, at fair value	—			—		85,446			—			85,446
Accrued compensation	—			—		167,348			—			167,348
Accounts payable and other liabilities	163			31,653		55,823			(9		)	87,630
Income tax payable	2,440			22,189		42,878			(67,507		)	—
Senior secured notes, net of debt issuance costs of $904	199,096			—		—			—			199,096
Subordinated indebtedness	—			—		112,558			(112,558		)	—
Deferred tax liabilities	—			—		33,029			(18,946		)	14,083
Intercompany payables	—			26,334		—			(26,334		)	—
Total liabilities	201,699			80,176		1,638,471			(225,354		)	1,694,992
Stockholders' equity
Stockholders' equity	545,322			678,759		529,774			(1,208,533		)	545,322
Total liabilities and stockholders' equity	$	747,021		$	758,935	$	2,168,245		$	(1,433,887	)	$	2,240,314

Condensed Consolidating Statement of Operations

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2019



(Expressed in thousands)	Parent			Guarantor subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated
REVENUES
Commissions	$	—		$	—		$	320,114	$	—		$	320,114
Advisory fees	—			1,853			356,165		(4,347		)	353,671
Investment banking	—			—			126,211		—			126,211
Bank deposit sweep income	—			—			117,422		—			117,422
Interest	237			8,238			50,538		(8,290		)	50,723
Principal transactions, net	—			118			29,988		(12		)	30,094
Other	3			2			35,138		1			35,144
Total revenue	240			10,211			1,035,576		(12,648		)	1,033,379
EXPENSES
Compensation and related expenses	1,323			—			656,398		(7		)	657,714
Communications and technology	172			—			81,416		—			81,588
Occupancy and equipment costs	—			(1		)	62,198		1			62,198
Clearing and exchange fees	—			—			21,962		—			21,962
Interest	12,319			—			41,659		(8,291		)	45,687
Other	2,814			1,366			89,489		(4,351		)	89,318
Total expenses	16,628			1,365			953,122		(12,648		)	958,467
Income (loss) before income taxes	(16,388		)	8,846			82,454		—			74,912
Income taxes expenses (benefits)	(4,609		)	2,151			24,417		—			21,959
Net income (loss)	(11,779		)	6,695			58,037		—			52,953

Equity in earnings of subsidiaries	64,732			58,037			—		(122,769		)	—
Net income	52,953			64,732			58,037		(122,769		)	52,953
Other comprehensive income	—			—			1,596		—			1,596
Total comprehensive income	$	52,953		$	64,732		$	59,633	$	(122,769	)	$	54,549

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2018



(Expressed in thousands)	Parent			Guarantor subsidiaries		Non-guarantor Subsidiaries			Eliminations			Consolidated
REVENUES
Commissions	$	—		$	—	$	329,668		$	—		$	329,668
Advisory fees	—			1,938		316,829			(4,418		)	314,349
Investment banking	—			—		115,353			—			115,353
Bank deposit sweep income	—			—		116,052			—			116,052
Interest	66			8,247		52,481			(8,310		)	52,484
Principal transactions, net	—			—		14,515			(54		)	14,461
Other	—			443		15,782			(438		)	15,787
Total revenue	66			10,628		960,680			(13,220		)	958,154
EXPENSES
Compensation and related expenses	1,548			—		605,644			—			607,192
Communications and technology	163			—		74,316			—			74,479
Occupancy and equipment costs	—			—		61,610			(439		)	61,171
Clearing and exchange fees	—			—		22,985			—			22,985
Interest	13,500			—		41,205			(8,309		)	46,396
Other	1,208			4,059		100,213			(4,418		)	101,062
Total expenses	16,419			4,059		905,973			(13,166		)	913,285
Income (loss) before income taxes	(16,353		)	6,569		54,707			(54		)	44,869
Income taxes expenses (benefits)	(4,371		)	2,052		18,296			—			15,977
Net income (loss)	(11,982		)	4,517		36,411			(54		)	28,892

Equity in earnings of subsidiaries	40,874			36,411		—			(77,285		)	—
Net income	28,892			40,928		36,411			(77,339		)	28,892
Other comprehensive income (loss)	—			—		(1,417		)	—			(1,417		)
Total comprehensive income	$	28,892		$	40,928	$	34,994		$	(77,339	)	$	27,475

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2017



(Expressed in thousands)	Parent			Guarantor subsidiaries			Non-guarantor Subsidiaries		Eliminations			Consolidated
REVENUES
Commissions	$	—		$	—		$	336,620	$	—		$	336,620
Advisory fees	—			1,752			323,114		(4,120		)	320,746
Investment banking	—			—			81,215		(3,000		)	78,215
Bank deposit sweep income	—			—			76,839		—			76,839
Interest	—			9,589			48,548		(9,639		)	48,498
Principal transactions, net	—			17			23,256		—			23,273
Other	22			361			36,123		(359		)	36,147
Total revenue	22			11,719			925,715		(17,118		)	920,338
EXPENSES
Compensation and related expenses	1,237			—			600,901		—			602,138
Communications and technology	160			—			71,818		—			71,978
Occupancy and equipment costs	—			—			61,523		(359		)	61,164
Clearing and exchange fees	—			—			23,545		—			23,545
Interest	13,740			—			24,253		(9,639		)	28,354
Other	4,969			1,382			114,376		(7,120		)	113,607
Total expenses	20,106			1,382			896,416		(17,118		)	900,786
Income (loss) before income taxes	(20,084		)	10,337			29,299		—			19,552
Income taxes expenses (benefits)	(7,110		)	(12,655		)	17,631		—			(2,134		)
Net income (loss) from continuing operations	(12,974		)	22,992			11,668		—			21,686

Discontinued operations
Income from discontinued operations	—			—			2,071		—			2,071
Income taxes	—			—			941		—			941
Net income from discontinued operations	—			—			1,130		—			1,130

Equity in earnings of subsidiaries	35,790			12,798			—		(48,588		)	—
Net income	22,816			35,790			12,798		(48,588		)	22,816
Other comprehensive income	—			—			2,263		—			2,263
Total comprehensive income	$	22,816		$	35,790		$	15,061	$	(48,588	)	$	25,079

Condensed Consolidating Statement of Cash Flows

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2019



(Expressed in thousands)	Parent			Guarantor subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:
Cash provided by (used in) operating activities	$	18,248		$	(1,647	)	$	62,541		$	—	$	79,142
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements	—			—			(10,024		)	—		(10,024		)
Proceeds from the settlement of Company-owned life insurance	—			—			1,720			—		1,720
Cash used in investing activities	—			—			(8,304		)	—		(8,304		)
Cash flows from financing activities:
Cash dividends paid on Class A non-voting and Class B voting common stock	(5,944		)	—			—			—		(5,944		)
Issuance of Class A non-voting common stock	83			—			—			—		83
Repurchase of Class A non-voting common stock for cancellation	(8,400		)	—			—			—		(8,400		)
Payments of employee taxes withheld related to vested share-based awards	(1,014		)	—			—			—		(1,014		)
Redemption of senior secured notes	(50,000		)	—			—			—		(50,000		)
Debt redemption costs	(1,688		)	—			—			—		(1,688		)
Decrease in bank call loans, net	—			—			(15,000		)	—		(15,000		)
Cash used in financing activities	(66,963		)	—			(15,000		)	—		(81,963		)
Net increase (decrease) in cash and cash equivalents	(48,715		)	(1,647		)	39,237			—		(11,125		)
Cash and cash equivalents, beginning of the year	53,526			3,826			33,323			—		90,675
Cash and cash equivalents, end of the year	$	4,811		$	2,179		$	72,560		$	—	$	79,550

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2018



(Expressed in thousands)	Parent			Guarantor subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Cash flows from operating activities:
Cash provided by operating activities	$	60,270		$	510		$	107,790		$	—	$	168,570
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements	—			—			(8,672		)	—		(8,672		)
Purchase of intangible assets	—			(400		)	—			—		(400		)
Proceeds from the settlement of Company-owned life insurance	—			—			881			—		881
Cash used in investing activities	—			(400		)	(7,791		)	—		(8,191		)
Cash flows from financing activities:
Cash dividends paid on Class A non-voting and Class B voting common stock	(5,833		)	—			—			—		(5,833		)
Cash dividends paid to non-controlling interest	—			—			(372		)	—		(372		)
Issuance of Class A non-voting common stock	70			—			—			—		70
Repurchase of Class A non-voting common stock for cancellation	(5,894		)	—			—			—		(5,894		)
Payments of employee taxes withheld related to vested share-based awards	(2,529		)	—			—			—		(2,529		)
Decrease in bank call loans, net	—			—			(103,300		)	—		(103,300		)
Cash used in financing activities	(14,186		)	—			(103,672		)	—		(117,858		)
Net increase (decrease) in cash and cash equivalents	46,084			110			(3,673		)	—		42,521
Cash and cash equivalents, beginning of the year	7,442			3,716			36,996			—		48,154
Cash and cash equivalents, end of the year	$	53,526		$	3,826		$	33,323		$	—	$	90,675

OPPENHEIMER HOLDINGS INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 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	$	(25,979	)	$	(6,568	)	$	16,411		$	—	$	(16,136	)
Cash flows from investing activities:
Purchase of furniture, equipment and leasehold improvements	—			—			(5,611		)	—		(5,611		)
Proceeds from the settlement of Company-owned life insurance	—			—			1,744			—		1,744
Cash used in investing activities	—			—			(3,867		)	—		(3,867		)
Cash flows from financing activities:
Cash dividends paid on Class A non-voting and Class B voting common stock	(5,836		)	—			—			—		(5,836		)
Cash dividends paid to non-controlling interest	—			—			(2,448		)	—		(2,448		)
Issuance of Class A non-voting common stock	26			—			—			—		26
Repurchase of Class A non-voting common stock for cancellation	(7,464		)	—			—			—		(7,464		)
Payments of employee taxes withheld related to vested share-based awards	(2,237		)	—			—			—		(2,237		)
Issuance of senior secured notes	200,000			—			—			—		200,000
Redemption of senior secured notes	(150,000		)	—			—			—		(150,000		)
Debt issuance costs	(1,297		)	—			—			—		(1,297		)
Decrease in bank call loans, net	—			—			(27,500		)	—		(27,500		)
Cash provided by (used in) financing activities	33,192			—			(29,948		)	—		3,244
Net increase (decrease) in cash and cash equivalents	7,213			(6,568		)	(17,404		)	—		(16,759		)
Cash and cash equivalents, beginning of the year	229			10,284			54,400			—		64,913
Cash and cash equivalents, end of the year	$	7,442		$	3,716		$	36,996		$	—	$	48,154