Discontinued Operations

12 Months Ended

Dec. 31, 2016

Discontinued Operations [Abstract]

Discontinued Operations

P.  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 consolidated statements of income as discontinued operations for all periods presented.  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.

GAMCO does not have any significant continuing involvement in the operations of AC after the Spin-off, and GAMCO will not have the ability to influence operating or financial policies of AC.  GAMCO and AC did have a common Chief Executive Officer for a transition period, and GBL does provide certain services to AC under a Transition Services Agreement (see Note K. Related Party Transactions for details).  GAMCO also has debt on its consolidated statement of financial condition at December 31, 2016 and 2015 that is payable to AC.  That GAMCO note pays interest at 4%, which is payable in cash or PIK, and will be paid off ratably over five years, or sooner at GAMCO’s option (see Note F. Debt for details).  AC owns 4.4 million shares of GAMCO’s Class A Stock on which it will receive dividends, if and when they are declared (see Note K. Related Party Transactions for details).  As with all stockholders, employees and directors of GAMCO received one share of AC stock for each share of GAMCO stock that they held on the record date for the distribution.  Some of these AC shares are unvested restricted stock awards to the extent an employee’s holdings consisted of unvested GAMCO restricted stock awards on the record date.  The vesting provisions remain unchanged (see Note G. Equity for details).

The 2015 results include $2.4 million 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 November 30, 2015 and the full year 2014 are summarized below:

	Year Ended December 31,
	2015			2014
Revenues
Investment advisory and incentive fees	$	8,552		$	9,750
Distribution fees and other income		279			325
Institutional research services		8,973			10,925
Total revenues		17,804			21,000
Expenses
Compensation		20,500			22,298
Stock based compensation		4,716			1,921
Management fee		(727	)		(36	)
Distribution costs		(85	)		(598	)
Other operating expenses		9,070			7,341
Total expenses		33,474			30,926
Operating loss		(15,670	)		(9,926	)
Other income (expense)
Net gain from investments		7,660			6,491
Interest and dividend income		2,740			4,416
Interest expense		(1,224	)		(1,377	)
Total other income (expense), net		9,176			9,530
Income/(loss) from discontinued operations before income taxes		(6,494	)		(396	)
Income tax provision/(benefit)		(2,045	)		771
Income/(loss) from discontinued operations, net of taxes		(4,449	)		(1,167	)
Net income/(loss) attributable to noncontrolling interests		(562	)		(4,274	)
Net income/(loss) attributable to GAMCO Investors, Inc.'s
discontinued operations, net of taxes	$	(3,887	)	$	3,107

Q. Other Matters