Fair Value

3 Months Ended

Mar. 25, 2022

Fair Value Disclosures [Abstract]

Fair Value

NOTE 4 – FAIR VALUE

The Partnership's valuation methodologies for financial assets and financial liabilities measured at fair value and the fair value hierarchy are described in Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 of the Partnership's Annual Report. There have been no material changes to the Partnership's valuation methodologies since December 31, 2021.

The Partnership records fractional shares at fair value in other assets with associated liabilities in accounts payable, accrued expenses and other in the Consolidated Statements of Financial Condition. The liabilities are initially recorded at the dollar amount received from the clients, but the Partnership makes an election to record the liabilities at fair value. Changes in the fair value of the assets and liabilities offset in other revenue in the Consolidated Statements of Income, with no impact on income before allocations to partners.

The Partnership did not have any assets or liabilities categorized as Level III during the three- and twelve-month periods ended March 25, 2022 and December 31, 2021, respectively.

The following tables show the Partnership’s financial assets and liabilities measured at fair value:

	Fair Value as of
	March 25, 2022
	Level I		Level II		Level III		Total
Assets:
Cash equivalents:
Certificates of deposit	$	—	$	242	$	—	$	242
Money market funds		17		—		—		17
Total cash equivalents	$	17	$	242	$	—	$	259
Investments segregated under federal regulations:
U.S. treasuries	$	14,435	$	—	$	—	$	14,435
Certificates of deposit		—		400		—		400
Total investments segregated under federal regulations	$	14,435	$	400	$	—	$	14,835
Securities owned:
Investment securities:
Government and agency obligations	$	712	$	—	$	—	$	712
Mutual funds(1)		323		—		—		323
Equities		3		—		—		3
Total investment securities	$	1,038	$	—	$	—	$	1,038
Inventory securities:
Mutual funds	$	13	$	—	$	—	$	13
Equities		8		—		—		8
Municipal obligations		—		8		—		8
Corporate bonds and notes		—		2		—		2
Certificates of deposit		—		1		—		1
Total inventory securities	$	21	$	11	$	—	$	32
Other assets:
Client fractional share ownership assets	$	697	$	—	$	—	$	697
Liabilities:
Accounts payable, accrued expenses and other:
Client fractional share redemption obligations	$	697	$	—	$	—	$	697

	Fair Value as of
	December 31, 2021
	Level I		Level II		Level III		Total
Assets:
Cash equivalents:
Certificates of deposit	$	—	$	266	$	—	$	266
Money market funds		47		—		—		47
Total cash equivalents	$	47	$	266	$	—	$	313
Investments segregated under federal regulations:
U.S. treasuries	$	13,908	$	—	$	—	$	13,908
Certificates of deposit		—		400		—		400
Total investments segregated under federal regulations	$	13,908	$	400	$	—	$	14,308
Securities owned:
Investment securities:
Government and agency obligations	$	413	$	—	$	—	$	413
Mutual funds(1)		366		—		—		366
Equities		3		—		—		3
Certificates of deposit		—		70		—		70
Total investment securities	$	782	$	70	$	—	$	852
Inventory securities:
Equities	$	18	$	—	$	—	$	18
Municipal obligations		—		9		—		9
Certificates of deposit		—		6		—		6
Corporate bonds and notes		—		3		—		3
Mutual funds		2		—		—		2
Total inventory securities	$	20	$	18	$	—	$	38
Other assets:
Client fractional share ownership assets	$	710	$	—	$	—	$	710
Liabilities:
Accounts payable, accrued expenses and other:
Client fractional share redemption obligations	$	710	$	—	$	—	$	710

(1)The mutual funds balance consists primarily of securities held to economically hedge future liabilities related to the non-qualified deferred compensation plan. The balance also includes a security held for regulatory purposes at the Trust Co.