10-Q

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  NO 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  NO 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicated by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

As of July 29, 2022, 1,218,590 units of limited partnership interest (“Interests”) are outstanding, each representing $1,000 of limited partner capital. There is no public or private market for such Interests.

The accompanying notes are an integral part of these Consolidated Financial Statements.

NOTE 3 – RECEIVABLES AND REVENUE

As of June 24, 2022 and December 31, 2021, collateral held for receivables from clients was $5,294 and $4,803, respectively, and collateral held for securities purchased under agreements to resell was $1,103 and $1,526, respectively. Given the nature of the agreements, the Partnership does not expect the fair value of collateral to fall below the value of the agreements frequently or for an extended period of time. Therefore, the expected credit loss was zero for each period. Additionally, partnership loan values remained below the value of capital allocated to partners, resulting in an expected credit loss of zero as of June 24, 2022 and December 31, 2021.

As of June 24, 2022, December 31, 2021 and December 31, 2020, $625, $695 and $563, respectively, of the receivable from clients balance and $330, $335 and $285, respectively, of the receivable from mutual funds, insurance companies and other balance related to revenue contracts with customers. The related fees are paid out of client accounts or third-party products consisting of cash and securities, and the collateral value of those accounts continues to exceed the amortized cost basis of these receivables, resulting in a remote risk of loss. The expected credit loss for receivables from contracts with customers was zero as of June 24, 2022 and December 31, 2021.

The Partnership derived 12% of its total revenue for both the three- and six-month periods ended June 24, 2022 and 11% and 12% of its total revenue for the three- and six-month periods ended June 25, 2021, respectively, from one mutual fund company. The revenue generated from this company relates to business conducted with the Partnership’s U.S. segment.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements, continued

The following table shows the Partnership's disaggregated revenue information. See Note 8 for segment information.


	Three Months Ended June 24, 2022								Three Months Ended June 25, 2021
	U.S.			Canada		Total			U.S.		Canada		Total
Fee revenue:
Asset-based fee revenue:
Advisory programs fees	$	1,804		$	37	$	1,841		$	1,782	$	31	$	1,813
Service fees		354			28		382			388		29		417
Other asset-based fees		221			—		221			155		—		155
Total asset-based fee revenue		2,379			65		2,444			2,325		60		2,385
Account and activity fee revenue:
Shareholder accounting services fees		113			—		113			109		—		109
Other account and activity fee revenue		55			4		59			59		3		62
Total account and activity fee revenue		168			4		172			168		3		171
Total fee revenue		2,547			69		2,616			2,493		63		2,556
Trade revenue:
Commissions		338			14		352			412		14		426
Principal transactions		39			1		40			10		1		11
Total trade revenue		377			15		392			422		15		437
Total revenue from customers		2,924			84		3,008			2,915		78		2,993
Net interest and dividends and other revenue		(3	)		9		6			39		2		41
Net revenue	$	2,921		$	93	$	3,014		$	2,954	$	80	$	3,034


	Six Months Ended June 24, 2022								Six Months Ended June 25, 2021
	U.S.			Canada		Total			U.S.		Canada		Total
Fee revenue:
Asset-based fee revenue:
Advisory programs fees	$	3,694		$	74	$	3,768		$	3,422	$	58	$	3,480
Service fees		733			57		790			754		54		808
Other asset-based fees		389			—		389			306		—		306
Total asset-based fee revenue		4,816			131		4,947			4,482		112		4,594
Account and activity fee revenue:
Shareholder accounting services fees		224			—		224			216		—		216
Other account and activity fee revenue		113			7		120			118		7		125
Total account and activity fee revenue		337			7		344			334		7		341
Total fee revenue		5,153			138		5,291			4,816		119		4,935
Trade revenue:
Commissions		704			26		730			831		28		859
Principal transactions		49			2		51			19		1		20
Total trade revenue		753			28		781			850		29		879
Total revenue from customers		5,906			166		6,072			5,666		148		5,814
Net interest and dividends and other revenue		(41	)		16		(25	)		67		6		73
Net revenue	$	5,865		$	182	$	6,047		$	5,733	$	154	$	5,887

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 six- and twelve-month periods ended June 24, 2022 and December 31, 2021, respectively.

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


	June 24, 2022
	Level I		Level II		Level III		Total
Assets:
Cash equivalents:
Certificates of deposit	$	—	$	384	$	—	$	384
Money market funds		27		—		—		27
Total cash equivalents	$	27	$	384	$	—	$	411

Investments segregated under federal regulations:
U.S. treasuries	$	14,520	$	—	$	—	$	14,520
Certificates of deposit		—		400		—		400
Total investments segregated under federal regulations	$	14,520	$	400	$	—	$	14,920

Securities owned:
Investment securities:
Government and agency obligations	$	412	$	—	$	—	$	412
Mutual funds(1)		319		—		—		319
Equities		12		—		—		12
Total investment securities	$	743	$	—	$	—	$	743

Inventory securities:
Municipal obligations	$	—	$	18	$	—	$	18
Mutual funds		10		—		—		10
Equities		8		—		—		8
Corporate bonds and notes		—		5		—		5
Certificates of deposit		—		1		—		1
Total inventory securities	$	18	$	24	$	—	$	42

Other assets:
Client fractional share ownership assets	$	630	$	—	$	—	$	630

Liabilities:
Accounts payable, accrued expenses and other:
Client fractional share redemption obligations	$	630	$	—	$	—	$	630

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements, continued


	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 for the non-qualified deferred compensation plan. The balance also includes a security held for regulatory purposes at the Trust Co.

The Partnership makes loans available to those general partners and, in limited circumstances, subordinated limited partners (in each case, other than members of the Enterprise Leadership Team ("ELT"), as defined in the Partnership’s Twenty-First Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated September 1, 2021 (the “Partnership Agreement”)), who require financing for some or all of their Partnership capital contributions. In limited circumstances a general partner may withdraw from the Partnership and become a subordinated limited partner while he or she still has an outstanding Partnership loan. It is anticipated that, of the future general and subordinated limited partnership capital contributions (in each case, other than for ELT members) requiring financing, the majority will be financed through Partnership loans. Loans made by the Partnership to such partners are generally for a period of one year but are expected to be renewed and bear interest at the greater of the Prime Rate for the last business day of the prior fiscal month or 3.25%. The Partnership recognizes interest income for the interest earned related to these loans. The outstanding amount of Partnership loans is reflected as a reduction to total Partnership capital. As of June 24, 2022 and December 31, 2021, the outstanding amount of Partnership loans was $400 and $321, respectively. Interest income earned from these loans, which is included in interest and dividends in the Consolidated Statements of Income, was $4 and $7 for both the three- and six-month periods ended June 24, 2022 and June 25, 2021, respectively.

The following table shows the roll forward of outstanding Partnership loans for the:

The minimum 7.5% annual return on the face amount of limited partnership capital was $23 and $46 for both the three- and six-month periods ended June 24, 2022 and June 25, 2021, respectively. These amounts are included as a component of interest expense in the Consolidated Statements of Income.

The Partnership filed a Registration Statement on Form S-8 with the U.S. Securities and Exchange Commission (“SEC”) on January 12, 2018, to register $450 units of limited partnership interest ("Interests") issuable pursuant to the Partnership's 2018 Employee Limited Partnership Interest Purchase Plan (the "2018 Plan"). The Partnership issued approximately $5 and $4 of Interests under the 2018 Plan in the year ended December 31, 2021 and the first half of 2022, respectively. The Partnership plans to terminate the 2018 Plan in 2022 and deregister all remaining unsold Interests under the 2018 Plan. Before the 2018 Plan is terminated, the Partnership may issue the remaining $60 of Interests under that plan at the discretion of the Managing Partner. The Partnership filed a Registration Statement on Form S-8 with the SEC on December 8, 2021, to register an additional $700 of Interests issuable pursuant to the Partnership's 2021 Employee Limited Partnership Interest Purchase Plan (the "2021 Plan"). Proceeds from the offering under the 2021 Plan are expected to be used to meet growth needs or for other purposes.

NOTE 8 – SEGMENT INFORMATION

The Partnership has determined it has two operating and reportable segments based upon geographic location, the U.S. and Canada. Canada segment information, as reported in the following table, is based upon the consolidated financial statements of the Partnership's Canada operations, which primarily occur through a non-guaranteed subsidiary of the Partnership. The U.S. segment information is derived from the Consolidated Financial Statements less the Canada segment information as presented. Pre-variable income represents income before variable compensation expense and before allocations to partners. This is consistent with how management reviews the segments to assess performance.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements, continued

The following table shows financial information for the Partnership’s reportable segments:


	Three Months Ended				Six Months Ended
	June 24, 2022		June 25, 2021		June 24, 2022		June 25, 2021
Net revenue:
U.S.	$	2,921	$	2,954	$	5,865	$	5,733
Canada		93		80		182		154
Total net revenue	$	3,014	$	3,034	$	6,047	$	5,887

Pre-variable income:
U.S.	$	755	$	915	$	1,574	$	1,756
Canada		19		13		36		21
Total pre-variable income	$	774	$	928	$	1,610	$	1,777

Variable compensation:
U.S.	$	406	$	473	$	870	$	933
Canada		13		12		24		21
Total variable compensation	$	419	$	485	$	894	$	954

Income before allocations to partners:
U.S.	$	349	$	442	$	704	$	823
Canada		6		1		12		—
Total income before allocations to partners	$	355	$	443	$	716	$	823

Restricted cash represents cash segregated in special reserve bank accounts for the benefit of U.S. clients pursuant to Rule 15c3-3 under the Exchange Act.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis is intended to help the reader understand the results of operations and the financial condition of the Partnership. Management’s Discussion and Analysis should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in Part I, Item 1 – Financial Statements of this Quarterly Report on Form 10-Q and Part II, Item 8 – Financial Statements and Supplementary Data of the Partnership’s Annual Report. All amounts are presented in millions, except as otherwise noted.

The Partnership broadly categorizes its net revenues into four categories: fee revenue, trade revenue, net interest and dividends revenue (net of interest expense) and other revenue. In the Partnership’s Consolidated Statements of Income, fee revenue is composed of asset-based fees and account and activity fees. Program fees are based on the average daily market value of client assets in the program, as well as contractual rates. These fees are impacted by changes in market values of the assets and by client dollars invested in and divested from the accounts. Account and activity fees and other revenue are impacted by the number of client accounts and the variety of services provided to those accounts, among other factors. Trade revenue is composed of commissions and principal transactions revenue. Commissions are earned from the distribution of mutual fund shares and insurance products and the purchase or sale of securities. Principal transactions revenue primarily results from the Partnership's distribution of and participation in principal trading activities in municipal obligations, over-the-counter corporate obligations, and certificates of deposit. Trade revenue is impacted by the trading volume (client dollars invested), mix of the products in which clients invest and the size of trades, all of which may be impacted by market volatility, and margins earned on the transactions. Net interest and dividends revenue is impacted by the amount of cash and investments, receivables from and payables to clients, the variability of interest rates earned and paid on such balances, the number of Interests outstanding, and the balances of Partnership loans.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

The following table sets forth the changes in major categories of the Consolidated Statements of Income as well as several related key financial metrics for the three- and six-month periods ended June 24, 2022 and June 25, 2021. Management of the Partnership relies on this financial information and the related metrics to evaluate the Partnership’s operating performance and financial condition.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

Even with market volatility and the changing interest rate environment, the Partnership ended the second quarter of 2022 with $20 billion of net new assets, reflecting growth in asset inflows and higher average asset sizes for new households. Although the Partnership experienced growth in asset inflows, higher asset outflows resulted in lower net new assets than the second quarter of 2021. In addition, the Partnership is making its intentional investments in human capital, technology infrastructure, digital initiatives, virtual enablement tools and test and learn pilot programs to support its long-term growth objectives.

The Partnership ended the second quarter of 2022 with $1.6 trillion in client assets under care ("AUC"), a 7% decrease compared to the end of the second quarter of 2021. Average client AUC decreased 1% in the second quarter of 2022 due to lower average market levels, partially offset by the cumulative impact of net new assets. Advisory programs' average AUC increased 3% as a result of the cumulative impact of client dollars invested in advisory programs, partially offset by lower average market levels.

In the second quarter of 2022, the Partnership continued to focus on its strategy to grow and promote branch team success and financial advisor attrition decreased to 6.0%. The Partnership has begun offering greater flexibility and choice to its financial advisors through the options of co-locating their branches with one or more financial advisors in shared office space while maintaining their own individual client relationships, an expanded variety of branch support roles, and a pilot of multi-financial advisor team models. Despite lower attrition, the number of financial advisors decreased by 100 due to a lower number of hires as a result of the Partnership's continued strategy to focus on intentionally building the financial advisor pipeline. This approach may continue to result in fewer financial advisors hired than historical levels.

Although the Partnership experienced growth in asset inflows, referenced above, net new assets declined 13% due to higher asset outflows compared to lower than average outflows experienced in the second quarter of 2021. Net new households decreased 37% primarily due to fewer households added.

Net revenue decreased 1% to $3,014 primarily due to decreases in other revenue and trade revenue. The decrease in other revenue was due to a decline in market levels over the second quarter of 2022, resulting in unrealized losses from the decrease in the value of the mutual fund investment securities held to economically hedge future liabilities for the non-qualified deferred compensation plan. Those unrealized losses were offset by the corresponding decreased liability recognized in financial advisor compensation expense. Other revenue also decreased due to unrealized losses on the Partnership's U.S. Treasury investment securities, resulting from rising interest rates. Trade revenue decreased due to a decrease in overall margin earned and a decrease in client dollars invested in mutual funds. The decrease in net revenue was partially offset by increases in cash solutions revenue within other asset-based fees and interest and dividends revenue reflecting rising interest rates in the second quarter of 2022.

Operating expenses increased 3% to $2,659, primarily due to increases in home office and branch compensation, communications and data processing and other operating expenses. The Partnership's intentional investments to support its long-term growth objectives, referenced above, have increased home office and branch compensation expenses and communications and data processing expenses. The increase in other operating expenses was primarily due to increases in costs from resuming in-person meetings and events, philanthropy, advertising and other various items. The increase in operating expenses was partially offset by a decrease in financial advisor compensation expense related to the non-qualified deferred compensation plan discussed above and decreased variable compensation due to lower firm profitability.

Overall, the decrease in net revenue and the increase in operating expenses generated income before allocations to partners of $355, a 20% decrease from the second quarter of 2021. Income before allocations to partners margin was 11.7%, reflecting a strategic balance between investing in the future and current financial results.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

Average client AUC increased 5% and advisory programs' average AUC increased 10% during the first half of 2022 compared to the same period in 2021 due to the cumulative impact of net new assets and higher average equity market levels, partially offset by lower average bond market levels.

Although the Partnership experienced growth in asset inflows, referenced above, net new assets declined 9% due to higher asset outflows compared to lower than average outflows experienced in the first half of 2021. Net new households decreased 29% primarily due to fewer households added.

Net revenue increased 3% to $6,047. Results reflected a 7% increase in fee revenue, primarily due to the cumulative impact of net asset inflows in advisory programs and higher average equity market levels, partially offset by lower average bond market levels. The net revenue increase was partially offset by decreases in other revenue and trade revenue. The decrease in other revenue was due to a decline in market levels over the first half of 2022, resulting in unrealized losses from the decrease in the value of the mutual fund investment securities held to economically hedge future liabilities for the non-qualified deferred compensation plan. Those unrealized losses were offset by the corresponding decreased liability recognized in financial advisor compensation expense. Other revenue also decreased due to unrealized losses on the Partnership's U.S. Treasury investment securities, resulting from rising interest rates. Trade revenue decreased due to a decrease in overall margin earned and a decrease in client dollars invested in mutual funds.

Operating expenses increased 5% to $5,331 primarily due to an increase in home office and branch compensation, communications and data processing and other operating expenses. The Partnership's intentional investments to support its long-term growth objectives, referenced above, have increased home office and branch compensation expenses and communications and data processing expenses. The increase in other operating expenses was primarily due to increases in costs from resuming in-person meetings and events, philanthropy, advertising and other various items. The increase in operating expenses was partially offset by a decrease in variable compensation due to lower firm profitability.

Overall, the increase in operating expenses, partially offset by the increase in net revenues, generated income before allocations to partners of $716, a 13% decrease from the first half of 2021. Income before allocations to partners margin was 11.7%, reflecting a strategic balance between investing in the future and current financial results.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

RESULTS OF OPERATIONS FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 24, 2022 AND JUNE 25, 2021

The discussion below details the significant fluctuations and their drivers for each of the major categories of the Partnership’s Consolidated Statements of Income.

Fee revenue, which consists of asset-based fees and account and activity fees, increased 2% to $2,616 and 7% to $5,291 in the second quarter and first half of 2022, respectively, compared to the same periods in 2021. A discussion of fee revenue components follows.

Despite lower average market levels in the second quarter of 2022 compared to the same period in 2021, overall asset-based fee revenue increased 2% to $2,444. Other asset-based fee revenue increased reflecting rising interest rates, primarily due to lower fee waivers to maintain a positive client yield on the Money Market Fund and the increase in client assets invested in cash solutions. Advisory programs fee revenue increased due to the cumulative impact of client dollars invested in advisory programs, which was partially offset by lower average market levels. Service fees revenue decreased due to the decrease in the average value of mutual fund assets held outside of advisory programs resulting from lower average market levels.

Overall asset-based fee revenue increased 8% to $4,947 in the first half of 2022 compared to the same period in 2021, primarily due to increases in revenue from advisory programs fees and from other asset-based fees. Growth in revenue from advisory programs was due to the cumulative impact of client dollars invested in advisory programs and higher average equity market levels, partially offset by lower average bond market levels in the first half of 2022 compared to the same period in 2021. Other asset-based fee revenue increased reflecting rising interest rates, primarily due to lower fee waivers to maintain a positive client yield on the Money Market Fund and the increase in client assets invested in cash solutions. Service fees revenue decreased in the first half of 2022 due to the decrease in the second quarter of 2022, referenced above, partially offset by an increase in service fees revenue in the first quarter of 2022 as a result of higher average equity market levels.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

Trade revenue, which consists of commissions and principal transactions, decreased 10% to $392 and 11% to $781 in the second quarter and first half of 2022, respectively, compared to the same periods in 2021. A discussion of trade revenue components follows.

The decrease in trade revenue in the second quarter and first half of 2022 compared to the same periods in 2021 was due to a decrease in mutual funds commissions revenue and the overall margin earned, which was partially offset by an increase in principal transactions revenue. Mutual funds commissions revenue decreased due to the decrease in client dollars invested in mutual fund products. Overall margin decreased due to a change in product mix with a higher portion of client dollars invested in principal transaction products that earn lower margins than other products. The shift in product mix and increased principal transactions revenue was due to a significant increase in client dollars invested in fixed income products, primarily certificates of deposit, during the increasing interest rate environment in the second quarter of 2022 compared to the same period in 2021.

Net interest and dividends revenue increased $35 to $52 and $42 to $73 in the second quarter and first half of 2022, respectively, compared to the same periods in 2021, primarily due to increased short-term investment interest income and an increase in interest income earned on client margin loans. The average balances of short-term investments increased 11% and 10% and client margin loans held by clients increased 22% and 21% in the second quarter and first half of 2022, respectively, compared to the same periods in 2021. Additionally, short-term investment income increased due to a rise in interest rates in the second quarter and first half of 2022 compared to the same periods in 2021.

The majority of interest expense in the second quarter and first half of 2022 consisted of the minimum 7.5% annual return on the face amount of limited partnership capital paid to limited partners. The 7.5% rate is fixed and is not impacted by the current interest rate environment.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

Operating expenses increased 3% to $2,659 and 5% to $5,331 in the second quarter and first half of 2022, respectively, compared to the same periods in 2021 primarily due to increases in home office and branch compensation, communications and data processing and other operating expenses. A discussion of operating expense components follows.

Financial advisor compensation and benefits expense decreased 5% to $1,179 in the second quarter of 2022 compared to the second quarter in 2021 and increased slightly to $2,408 in the first half of 2022 compared to the same period in 2021. The decrease in the second quarter of 2022 was primarily due to decreased future liabilities as a result of corresponding unrealized losses related to the economic hedge for the non-qualified deferred compensation plan. The slight increase in financial advisor compensation in the first half of 2022 was primarily due to the increase in revenues on which commissions are earned and increases in travel incentive program costs, which were significantly offset by the lower future liabilities in relation to the non-qualified deferred compensation plan referenced above and lower new financial advisor salary and other compensation expense from fewer financial advisors hired as a result of the Partnership's intentional strategy to build the financial advisor pipeline.

Home office and branch compensation and benefits expense increased 15% to $488 and 13% to $932 in the second quarter and first half of 2022, respectively, compared to the same periods in 2021 primarily due to higher wages and healthcare costs, including from an increase in the number of associates.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

Variable compensation expands and contracts in relation to the Partnership’s related profitability and margin earned. A significant portion of the Partnership’s profits are allocated to variable compensation and paid to associates in the form of bonuses and profit sharing. The decrease in variable compensation of 14% to $419 and 6% to $894 in the second quarter and first half of 2022, respectively, compared to the same periods in 2021 was due to a decrease in the Partnership's overall profitability, which was partially offset by an increase in the number of profitable branches.

Communications and data processing expenses increased 38% to $159 and 39% to $305 in the second quarter and first half of 2022, respectively, compared to the same periods in 2021 due to intentional investments in technology infrastructure, digital initiatives, virtual enablement tools and test and learn pilot programs.

Other operating expenses increased 63% to $163 and 41% to $295 in the second quarter and first half of 2022, respectively, compared to the same periods in 2021 primarily due to increases in costs associated with resuming in-person meetings and events, philanthropy, advertising and other various items.

The Partnership has two operating and reportable segments based upon geographic location, the U.S. and Canada. Canada segment information, as reported in the following table, is based upon the consolidated financial statements of the Partnership’s Canada operations. The U.S. segment information is derived from the Consolidated Financial Statements less the Canada segment information as presented. Pre-variable income represents income before variable compensation expense and before allocations to partners. This is consistent with how management views the segments to assess performance.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

The following table shows financial information for the Partnership’s reportable segments.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

Net revenue decreased 1% to $2,921 in the second quarter of 2022 compared to the second quarter of 2021, primarily due to decreases in other revenue and trade revenue. The decrease in other revenue was due to a decline in market levels over the second quarter of 2022, resulting in unrealized losses from the decrease in the value of the mutual fund investment securities held to economically hedge future liabilities for the non-qualified deferred compensation plan. Other revenue also decreased due to unrealized losses on the Partnership's U.S. Treasury investment securities, resulting from rising interest rates. Trade revenue decreased due to a decrease in overall margin earned from a change in product mix and a decrease in client dollars invested in mutual funds. The decrease in net revenue was partially offset by increases in cash solutions revenue within other asset-based fees reflecting rising interest rates in the second quarter of 2022.

Net revenue increased 2% to $5,865 in the first half of 2022 compared to the same period in 2021 primarily due to increases in fee revenue. Asset-based fee revenue increased 8% to $4,816 led by an increase in revenue from advisory programs fees, primarily due to the continued investment of client assets in advisory programs and higher average equity market levels, partially offset by lower average bond market levels. The net revenue increase was partially offset by decreases in other revenue and trade revenue. The decrease in other revenue was due to a decline in market levels over the first half of 2022, resulting in unrealized losses from the decrease in the value of the economic hedge for future liabilities and the Partnership's U.S. Treasury investment securities, as discussed above. Trade revenue decreased due to a decrease in overall margin earned from a change in product mix and a decrease in client dollars invested in mutual funds.

Operating expenses (excluding variable compensation) increased 6% to $2,166 and 8% to $4,291 in the second quarter and first half of 2022, respectively, compared to the same period in 2021 primarily due to increases in home office and branch compensation, other operating expenses and communications and data processing. Home office and branch compensation increased due to higher wages and healthcare costs, including from an increase in the number of associates. Other operating expenses increased primarily due to increases in costs from resuming in-person meetings and events, philanthropy, advertising and other various items. The increase in communications and data processing was due to intentional investments in technology infrastructure, digital initiatives, virtual enablement tools and test and learn pilot programs. The increase in operating expenses in the second quarter of 2022 was partially offset by a decrease in financial advisor compensation expense, which was the result of decreased future liabilities from the corresponding unrealized losses related to the economic hedge for the non-qualified deferred compensation plan.

Net income before allocations to partners decreased 21% to $349 and 14% to $704 in the second quarter and first half of 2022, respectively, compared to the same periods in 2021.

Net revenue increased 16% to $93 and 18% to $182 in the second quarter and first half of 2022, respectively, compared to the same periods in 2021, due to increases in revenue from asset-based fees, interest and dividends and other revenue. Asset-based fee revenue increased 8% to $65 and 17% to $131 in the second quarter and first half of 2022, respectively, led by an increase in revenue from advisory programs fees primarily due to the cumulative impact of client assets invested in advisory programs. Interest and dividends and other revenue increased due to a rise in interest rates and favorable exchange rates, respectively, in the second quarter and first half of 2022.

Operating expenses (excluding variable compensation) increased 10% in both the second quarter and first half of 2022 to $74 and $146, respectively, compared to the same periods in 2021 primarily due to an increase in financial advisor compensation. Financial advisor compensation increased largely due to an increase in revenues on which commissions are earned.

Net income before allocations to partners significantly increased to $6 and $12 in the second quarter and first half of 2022, respectively, compared to the same periods in 2021.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

As discussed more fully in Part I, Item 1A – Risk Factors – Risk Related to the Partnership's Business – Legislative and Regulatory Initiatives of the Partnership’s Annual Report, the Partnership continues to monitor several proposed, potential and recently enacted federal and state legislation, rules and regulations.

The Partnership estimates approximately 26% and 30% of its total revenue was derived from sales and services related to mutual fund and insurance products for the three- and six-month periods ended June 24, 2022 and June 25, 2021, respectively. In addition, the Partnership derived 12% of its total revenue for both the three- and six-month periods ended June 24, 2022 and 11% and 12% of its total revenue for the three- and six-month periods ended June 25, 2021, respectively, from one mutual fund company. The revenue generated from this company relates to business conducted with the Partnership’s U.S. segment.

Significant reductions in these revenues due to changes in the mutual funds industry affecting fee structures that result in decreased margins earned, regulatory reform or other changes to the Partnership’s relationship with mutual fund or insurance companies could have a material adverse effect on the Partnership’s results of operations, financial condition, and liquidity.

The Partnership requires liquidity to cover its operating expenses, net capital requirements, capital expenditures, distributions to partners and redemptions of Partnership interests, as well as to facilitate client transactions. The principal sources for meeting the Partnership’s liquidity requirements include existing liquidity and capital resources of the Partnership, discussed further below, and funds generated from operations. The Partnership believes that the liquidity provided by these sources will be sufficient to meet its capital and liquidity requirements for the next twelve months. Depending on conditions in the capital markets and other factors, the Partnership will, from time to time, consider the issuance of debt and additional Partnership capital, the proceeds of which could be used to meet growth needs or for other purposes.

The Partnership’s growth in capital has historically been the result of the sale of Interests to its associates and existing limited partners, the sale of subordinated limited partnership interests to its current or retiring general partners, and retention of a portion of general partner earnings.

The Partnership filed a Registration Statement on Form S-8 with the U.S. Securities and Exchange Commission ("SEC") on January 12, 2018, to register $450 of Interests issuable pursuant to the Partnership's 2018 Employee Limited Partnership Interest Purchase Plan (the "2018 Plan"). The Partnership issued approximately $5 and $4 of Interests under the 2018 Plan in the year ended December 31, 2021 and the first half of 2022, respectively. The Partnership plans to terminate the 2018 Plan in 2022 and deregister all remaining unsold Interests under the 2018 Plan. Before the 2018 Plan is terminated, the Partnership may issue the remaining $60 of Interests under that plan at the discretion of the Managing Partner. The Partnership filed a Registration Statement on Form S-8 with the SEC on December 8, 2021, to register an additional $700 of Interests issuable pursuant to the 2021 Plan. Proceeds from the offering under the 2021 Plan are expected to be used to meet growth needs or for other purposes. The issuance of Interests reduces the Partnership’s net interest income and income before allocations to partners.

The Partnership’s capital subject to mandatory redemption as of June 24, 2022, net of reserve for anticipated withdrawals, was $3,481, an increase of $246 from December 31, 2021. This increase was primarily due to the retention of a portion of general partner earnings ($76) and additional capital contributions related to limited partner, subordinated limited partner and general partner interests ($4, $52 and $272, respectively), partially offset by the net increase in Partnership loans outstanding ($79) and the redemption of limited partner, subordinated limited partner and general partner interests ($8, $18 and $53, respectively). During the three- and six-month periods ended June 24, 2022 and June 25, 2021, the Partnership retained 13.8% of income allocated to general partners.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

Under the terms of the Partnership’s Twenty-First Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated September 1, 2021 (the “Partnership Agreement”), a partner’s capital is required to be redeemed by the Partnership in the event of the partner's death, subject to compliance with ongoing regulatory capital requirements. In the event of a partner’s death, the Partnership generally redeems the partner’s capital within six months. The Partnership has restrictions in place which govern the withdrawal of capital. Under the terms of the Partnership Agreement, limited partners requesting withdrawal from the Partnership are repaid their capital in three equal annual installments beginning no earlier than 90 days after their withdrawal notice is received by the Managing Partner. The capital of general partners requesting withdrawal from the Partnership is converted to subordinated limited partnership capital or, at the discretion of the Managing Partner, redeemed by the Partnership. Subordinated limited partners requesting withdrawal are repaid their capital in six equal annual installments beginning no earlier than 90 days after their request for withdrawal of capital is received by the Managing Partner. The Managing Partner has discretion to waive or modify these withdrawal restrictions and to accelerate the return of capital.

The Partnership makes loans available to those general partners and, in limited circumstances, subordinated limited partners (in each case, other than members of the Enterprise Leadership Team ("ELT"), as defined in the Partnership Agreement), who require financing for some or all of their Partnership capital contributions. In limited circumstances, a general partner may withdraw from the Partnership and become a subordinated limited partner while he or she still has an outstanding Partnership loan. It is anticipated that, of the future general and subordinated limited partnership capital contributions (in each case, other than for ELT members) requiring financing, the majority will be financed through Partnership loans. Loans made by the Partnership to such partners are generally for a period of one year but are expected to be renewed and bear interest at the greater of the Prime Rate for the last business day of the prior fiscal month or 3.25% per annum. The Partnership recognizes interest income for the interest earned related to these loans. Partners borrowing from the Partnership will be required to repay such loans by applying the earnings received from the Partnership to such loans, net of amounts retained by the Partnership, amounts distributed for income taxes and 5% of earnings distributed to the partner. The Partnership has full recourse against any partner that defaults on loan obligations to the Partnership. The Partnership does not anticipate that partner loans will have an adverse impact on the Partnership’s short-term liquidity or capital resources.

Any partner may also choose to have individual banking arrangements for their Partnership capital contributions. Any bank financing of capital contributions is in the form of unsecured bank loan agreements and is between the individual and the bank. The Partnership does not guarantee these bank loans, nor can the partner pledge their partnership interest as collateral for the bank loan. The Partnership performs certain administrative functions in connection with its limited partners who have elected to finance a portion of their Partnership capital contributions through individual unsecured bank loan agreements from banks with whom the Partnership has other banking relationships. For all limited partner capital contributions financed through such bank loan agreements, each agreement instructs the Partnership to apply the proceeds from the redemption of that individual’s capital account to the repayment of the limited partner's bank loan prior to any funds being released to the partner. In addition, the partner is required to apply Partnership earnings, net of any distributions to pay taxes, to service the interest and principal on the bank loan. Should a partner’s individual bank loan not be renewed upon maturity for any reason, the Partnership could experience increased requests for capital liquidations, which could adversely impact the Partnership’s liquidity. In addition, partners who finance all or a portion of their capital contributions with bank financing may be more likely to request the withdrawal of capital to meet bank financing requirements should the partners experience a period of reduced earnings. As a partnership, any withdrawals by general partners, subordinated limited partners or limited partners would reduce the Partnership’s available liquidity and capital.

Many of the same banks that provide financing to limited partners also provide financing to the Partnership. To the extent these banks increase credit available to the partners, financing available to the Partnership may be reduced.

The Partnership, while not a party to any partner unsecured bank loan agreements, does facilitate making payments of allocated income to certain banks on behalf of the limited partner. The following table represents amounts related to Partnership loans as well as bank loans (for which the Partnership facilitates certain administrative functions). Partners may have arranged their own bank loans to finance their Partnership capital for which the Partnership does not facilitate certain administrative functions and therefore any such loans are not included in the table.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

Historically, neither the amount of Partnership capital financed with individual loans as indicated in the table above, nor the amount of partner withdrawal requests, has had a significant impact on the Partnership’s liquidity or capital resources.

The following table shows the composition of the Partnership’s aggregate bank lines of credit in place as of:

In accordance with the terms of the Partnership's $500 committed revolving line of credit (the "2018 Credit Facility") entered into in September 2018, the Partnership is required to maintain a leverage ratio of no more than 35% and minimum Partnership capital, net of reserve for anticipated withdrawals and Partnership loans, of at least $1,884. In addition, Edward Jones is required to maintain a minimum tangible net worth of at least $1,344 and minimum regulatory net capital of at least 6% of aggregate debit items as calculated under the alternative method. The Partnership has the ability to draw on various types of loans. The associated interest rate depends on the type of loan, duration of the loan, whether the loan is secured or unsecured and the amount of leverage. Contractual rates are based on an index rate plus the applicable spread. The 2018 Credit Facility is intended to provide short-term liquidity to the Partnership should the need arise. As of June 24, 2022, the Partnership was in compliance with all covenants related to the 2018 Credit Facility.

In addition, the Partnership has multiple uncommitted secured lines of credit totaling $390 that are subject to change at the discretion of the banks. The Partnership has an additional uncommitted line of credit where the amount and the associated collateral requirements are at the bank's discretion in the event of a borrowing. Based on credit market conditions and the uncommitted nature of these credit facilities, it is possible that these lines of credit could decrease or not be available in the future. Actual borrowing capacity on secured lines is based on availability of client margin securities or firm-owned securities, which would serve as collateral on loans in the event the Partnership borrowed against these lines.

There were no amounts outstanding on the 2018 Credit Facility or the uncommitted lines of credit as of June 24, 2022 or December 31, 2021. In addition, the Partnership did not have any draws against these lines of credit during the six-month period ended June 24, 2022, except for periodically testing draw procedures.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

As of June 24, 2022, the Partnership had $1,258 in cash and cash equivalents and $1,087 in securities purchased under agreements to resell, which generally have maturities of less than one week. This totaled to $2,345 of Partnership liquidity as of June 24, 2022, a 30% decrease from $3,364 as of December 31, 2021. The Partnership had $20,711 and $20,179 in cash and investments segregated under federal regulations as of June 24, 2022 and December 31, 2021, respectively, which was not available for general use. The Partnership also held $412 and $413 in government and agency obligations as of June 24, 2022 and December 31, 2021, respectively, primarily to help facilitate cash management and maintain firm liquidity. Changes in cash were due to the daily client cash activity in relation to the weekly segregation requirement.

The Partnership continues to evaluate its cash management strategy. Banks have experienced a significant increase in cash deposits due to market and economic uncertainty, which may impact the Partnership's ability to continue to find financial institutions at which to place funds for principal protection while earning a reasonable rate of return on those funds.

As a result of its activities as a U.S. broker-dealer, Edward Jones is subject to the net capital provisions of Rule 15c3-1 of the Exchange Act and capital compliance rules of the Financial Industry Regulatory Authority ("FINRA"). Under the alternative method permitted by the rules, Edward Jones must maintain minimum net capital equal to the greater of $0.25 or 2% of aggregate debit items arising from client transactions. The net capital rules also provide that Edward Jones’ partnership capital may not be withdrawn if resulting net capital would be less than minimum requirements. Additionally, certain withdrawals require the approval of the SEC and FINRA to the extent they exceed defined levels, even though such withdrawals would not cause net capital to be less than minimum requirements.

EJ Canada is a registered broker-dealer regulated by the Investment Industry Regulatory Organization of Canada ("IIROC"). Under the regulations prescribed by IIROC, EJ Canada is required to maintain minimum levels of risk-adjusted capital, which are dependent on the nature of EJ Canada's assets and operations.

The following table shows the Partnership’s capital figures for its U.S. and Canada broker-dealers as of:

U.S. net capital, Canada regulatory risk-adjusted capital and the related capital percentages may fluctuate on a daily basis.

The Partnership’s net assets are primarily monetary, consisting of cash and cash equivalents, cash and investments segregated under federal regulations, firm-owned securities, and receivables, less liabilities. Monetary net assets are primarily liquid in nature and would not be significantly affected by inflation. Inflation and future expectations of inflation influence securities prices, as well as activity levels in the securities markets. As a result, profitability and capital may be impacted by inflation and inflationary expectations. Additionally, inflation’s impact on the Partnership’s operating expenses may affect profitability to the extent that additional costs are not recoverable through increased prices of services offered by the Partnership.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued

This Quarterly Report on Form 10-Q, and in particular Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements within the meaning of U.S. securities laws. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “will,” “should,” and other expressions which predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Partnership. These risks, uncertainties and other factors may cause the actual results, performance or achievements of the Partnership to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause differences between forward-looking statements and actual events include, but are not limited to, the following: (1) general economic conditions, including inflation, an economic downturn or volatility in the U.S. and/or global securities markets, actions of the U.S. Federal Reserve and/or central banks outside of the United States and economic effects of international geopolitical conflicts; (2) changes in interest rates; (3) the COVID-19 pandemic and the global governmental response, vaccination and related impact on society, the global economy and volatility in financial markets; (4) regulatory actions; (5) changes in legislation or regulation; (6) actions of competitors; (7) litigation; (8) the ability of clients, other broker-dealers, banks, depositories and clearing organizations to fulfill contractual obligations; (9) changes in technology and other technology-related risks; (10) a fluctuation or decline in the fair value of securities; (11) our ability to attract and retain qualified financial advisors and other employees; and (12) the risks discussed under Part I, Item 1A – Risk Factors in the Partnership’s Annual Report. These forward-looking statements were based on information, plans, and estimates at the date of this report, and the Partnership does not undertake to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Various levels of management within the Partnership manage the Partnership’s risk exposure. Position limits in inventory accounts are established and monitored on an ongoing basis. Credit risk related to various financing activities is reduced by the industry practice of obtaining and maintaining collateral. The Partnership monitors its exposure to counterparty risk through the use of credit exposure information, the monitoring of collateral values and the establishment of credit limits. For further discussion of monitoring, see the Risk Management discussion in Part III, Item 10 – Directors, Executive Officers and Corporate Governance of the Partnership’s Annual Report.

The Partnership is exposed to market risk from changes in interest rates. Such changes in interest rates impact the income from interest-earning assets, primarily receivables from clients on margin balances and short-term investments, which are primarily comprised of cash and cash equivalents, investments segregated under federal regulations, and securities purchased under agreements to resell, which averaged $3.6 billion and $23.3 billion for the six-month period ended June 24, 2022. These margin receivables and investments earned interest at an average annual rate of approximately 393 and 35 basis points (3.93% and 0.35%), respectively, during the first half of 2022. Changes in interest rates also have an impact on the expense related to the liabilities that finance these assets, such as amounts payable to clients.

The Partnership performed an analysis of its financial instruments and assessed the related interest rate risk and materiality in accordance with the SEC rules. Under current market conditions and based on current levels of interest-earning assets and the liabilities that finance these assets, the Partnership estimates that a 100-basis point (1.00%) increase or decrease in short-term interest rates could increase or decrease, respectively, its annual net interest income by approximately $145 million. This estimate reflects minimum contractual rates on certain balances.

The Partnership maintains a system of disclosure controls and procedures which are designed to ensure that information required to be disclosed by the Partnership in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to management, including the Partnership’s certifying officers, as appropriate to allow timely decisions regarding required disclosure.

Based upon an evaluation performed as of the end of the period covered by this report, the Partnership’s certifying officers, the Chief Executive Officer and the Chief Financial Officer, have concluded that the Partnership’s disclosure controls and procedures were effective as of June 24, 2022.

There have been no changes in the Partnership’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

The information in Part I, Item 1, Note 7 supplements the discussion in Item 3 – Legal Proceedings in the Partnership's Annual Report.

For information regarding risk factors affecting the Partnership, please see the language in Part I, Item 2 – Forward-looking Statements of this Quarterly Report on Form 10-Q and the discussions in Part I, Item 1A – Risk Factors of the Partnership's Annual Report.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated:

Document and Entity Information - shares	6 Months Ended
Jun. 24, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 24, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Registrant Name	JONES FINANCIAL COMPANIES LLLP
Entity Central Index Key	0000815917
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Limited Partnership Interests Outstanding		1,218,590
Entity File Number	0-16633
Entity Tax Identification Number	43-1450818
Entity Address, Address Line One	12555 Manchester Road
Entity Address, City or Town	Des Peres
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63131
City Area Code	314
Local Phone Number	515-2000
Entity Incorporation, State or Country Code	MO
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

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


	June 24, 2022
	Level I		Level II		Level III		Total
Assets:
Cash equivalents:
Certificates of deposit	$	—	$	384	$	—	$	384
Money market funds		27		—		—		27
Total cash equivalents	$	27	$	384	$	—	$	411

Investments segregated under federal regulations:
U.S. treasuries	$	14,520	$	—	$	—	$	14,520
Certificates of deposit		—		400		—		400
Total investments segregated under federal regulations	$	14,520	$	400	$	—	$	14,920

Securities owned:
Investment securities:
Government and agency obligations	$	412	$	—	$	—	$	412
Mutual funds(1)		319		—		—		319
Equities		12		—		—		12
Total investment securities	$	743	$	—	$	—	$	743

Inventory securities:
Municipal obligations	$	—	$	18	$	—	$	18
Mutual funds		10		—		—		10
Equities		8		—		—		8
Corporate bonds and notes		—		5		—		5
Certificates of deposit		—		1		—		1
Total inventory securities	$	18	$	24	$	—	$	42

Other assets:
Client fractional share ownership assets	$	630	$	—	$	—	$	630

Liabilities:
Accounts payable, accrued expenses and other:
Client fractional share redemption obligations	$	630	$	—	$	—	$	630


	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


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A


(Dollars in millions)	June 24, 2022		December 31, 2021
ASSETS:
Cash and cash equivalents	$	1,258	$	1,835
Cash and investments segregated under federal regulations		20,711		20,179
Securities purchased under agreements to resell		1,087		1,529
Receivables from:
Clients		4,479		4,187
Mutual funds, insurance companies and other		939		850
Brokers, dealers and clearing organizations		327		213
Securities owned, at fair value:
Investment securities		743		852
Inventory securities		42		38
Lease right-of-use assets		914		922
Fixed assets, at cost, net of accumulated depreciation and amortization		781		725
Other assets		890		878

TOTAL ASSETS	$	32,171	$	32,208

LIABILITIES:
Payables to:
Clients	$	24,830	$	23,763
Brokers, dealers and clearing organizations		97		112
Accrued compensation and employee benefits		1,670		2,401
Accounts payable, accrued expenses and other		944		1,223
Lease liabilities		949		954
		28,490		28,453
Contingencies (Note 7)

Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans:
Limited partners		1,221		1,225
Subordinated limited partners		615		581
General partners		1,645		1,429
Total		3,481		3,235
Reserve for anticipated withdrawals		200		520
Total partnership capital subject to mandatory redemption		3,681		3,755

TOTAL LIABILITIES	$	32,171	$	32,208


(Dollars in millions)	Limited Partnership Capital			Subordinated Limited Partnership Capital			General Partnership Capital			Total

TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION, DECEMBER 31, 2021	$	1,361		$	640		$	1,754		$	3,755
Reserve for anticipated withdrawals		(136	)		(59	)		(325	)		(520	)
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals, December 31, 2021	$	1,225		$	581		$	1,429		$	3,235
Partnership loans outstanding, December 31, 2021		—			—			321			321
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals, December 31, 2021		1,225			581			1,750			3,556
Issuance of partnership interests		4			52			264			320
Redemption of partnership interests		(5	)		(17	)		(38	)		(60	)
Income allocated to partners		43			43			275			361
Distributions		(1	)		—			(12	)		(13	)
Total partnership capital, including capital financed with partnership loans, March 25, 2022		1,266			659			2,239			4,164
Issuance of partnership interests		—			—			8			8
Redemption of partnership interests		(3	)		(1	)		(15	)		(19	)
Income allocated to partners		42			41			272			355
Distributions		(9	)		(71	)		(347	)		(427	)
Total partnership capital, including capital financed with partnership loans, June 24, 2022		1,296			628			2,157			4,081
Partnership loans outstanding, June 24, 2022		—			—			(400	)		(400	)
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION, JUNE 24, 2022	$	1,296		$	628		$	1,757		$	3,681
Reserve for anticipated withdrawals		(75	)		(13	)		(112	)		(200	)
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals, June 24, 2022	$	1,221		$	615		$	1,645		$	3,481


(Dollars in millions)	Limited Partnership Capital			Subordinated Limited Partnership Capital			General Partnership Capital			Total

TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION, DECEMBER 31, 2020	$	1,362		$	594		$	1,633		$	3,589
Reserve for anticipated withdrawals		(125	)		(56	)		(333	)		(514	)
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals, December 31, 2020	$	1,237		$	538		$	1,300		$	3,075
Partnership loans outstanding, December 31, 2020		—			1			340			341
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals, December 31, 2020		1,237			539			1,640			3,416
Issuance of partnership interests		3			60			211			274
Redemption of partnership interests		(5	)		(16	)		(50	)		(71	)
Income allocated to partners		49			46			285			380
Distributions		—			—			(3	)		(3	)
Total partnership capital, including capital financed with partnership loans, March 26, 2021		1,284			629			2,083			3,996
Issuance of partnership interests		2			—			9			11
Redemption of partnership interests		(5	)		—			(8	)		(13	)
Income allocated to partners		58			52			333			443
Distributions		(10	)		(82	)		(397	)		(489	)
Total partnership capital, including capital financed with partnership loans, June 25, 2021		1,329			599			2,020			3,948
Partnership loans outstanding, June 25, 2021		—			—			(395	)		(395	)
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION, JUNE 25, 2021	$	1,329		$	599		$	1,625		$	3,553
Reserve for anticipated withdrawals		(97	)		(16	)		(133	)		(246	)
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals, June 25, 2021	$	1,232		$	583		$	1,492		$	3,307


	Six Months Ended
(Dollars in millions)	June 24, 2022			June 25, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	—		$	—
Adjustments to reconcile net income to net cash provided by operating activities:
Income before allocations to partners		716			823
Depreciation and amortization		240			220

Changes in assets and liabilities:
Investments segregated under federal regulations		(612	)		43
Securities purchased under agreements to resell		442			629
Net payable to clients		775			(582	)
Net receivable from brokers, dealers and clearing organizations		(129	)		(53	)
Receivable from mutual funds, insurance companies and other		(89	)		(33	)
Securities owned		105			537
Other assets		(12	)		(81	)
Lease liabilities		(161	)		(160	)
Accrued compensation and employee benefits		(731	)		(278	)
Accounts payable, accrued expenses and other		(283	)		(20	)
Net cash provided by operating activities		261			1,045

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets		(128	)		(79	)
Cash used in investing activities		(128	)		(79	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of partnership loans		45			27
Issuance of partnership interests		56			65
Redemption of partnership interests		(79	)		(84	)
Distributions from partnership capital		(812	)		(867	)
Net cash used in financing activities		(790	)		(859	)
Net (decrease) increase in cash, cash equivalents and restricted cash		(657	)		107

CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period		7,706			6,875
End of period	$	7,049		$	6,982


	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Large accelerated filer		Accelerated filer	
Non-accelerated filer		Smaller reporting company	
Emerging growth company	


		Page

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements	3

	Consolidated Statements of Financial Condition	3
	Consolidated Statements of Income	4
	Consolidated Statements of Changes in Partnership Capital - June 24, 2022	5
	Consolidated Statements of Changes in Partnership Capital - June 25, 2021	6
	Consolidated Statements of Cash Flows	7
	Notes to Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	33

Item 4.	Controls and Procedures	33

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	34

Item 1A.	Risk Factors	34

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34

Item 6.	Exhibits	35

	Signatures	36


	Three Months Ended					Six Months Ended
(Dollars in millions, except per unit information and units outstanding)	June 24, 2022			June 25, 2021		June 24, 2022			June 25, 2021
Revenue:
Fee revenue
Asset-based	$	2,444		$	2,385	$	4,947		$	4,594
Account and activity		172			171		344			341
Total fee revenue		2,616			2,556		5,291			4,935
Trade revenue		392			437		781			879
Interest and dividends		76			40		120			78
Other (loss) revenue, net		(46	)		24		(98	)		42
Total revenue		3,038			3,057		6,094			5,934
Interest expense		24			23		47			47
Net revenue		3,014			3,034		6,047			5,887
Operating expenses:
Compensation and benefits		2,086			2,148		4,234			4,187
Communications and data processing		159			115		305			219
Occupancy and equipment		144			135		287			269
Fund sub-adviser fees		63			59		126			115
Professional and consulting fees		44			34		84			65
Other operating expenses		163			100		295			209
Total operating expenses		2,659			2,591		5,331			5,064

Income before allocations to partners		355			443		716			823

Allocations to partners:
Limited partners		42			58		85			107
Subordinated limited partners		41			52		84			98
General partners		272			333		547			618
Net Income	$	—		$	—	$	—		$	—

Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding	$	34.31		$	46.66	$	69.22		$	86.74

Weighted average $1,000 equivalent limited partnership units outstanding		1,221,821			1,231,702		1,224,068			1,234,095


	June 24, 2022
2022	$	159
2023		279
2024		215
2025		154
2026		97
Thereafter		89
Total lease payments		993
Less: Interest		44
Total present value of lease liabilities	$	949


	June 24, 2022			December 31, 2021
U.S.:
Net capital	$	1,383		$	1,421
Net capital in excess of the minimum required	$	1,307		$	1,352
Net capital as a percentage of aggregate debit items		36.5	%		41.3	%
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items		18.5	%		20.7	%

Canada:
Regulatory risk-adjusted capital	$	81		$	71
Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC	$	74		$	50


	Gross amounts of		Gross amounts offset in the Consolidated Statements of		Net amounts presented in the Consolidated Statements of		Gross amounts not offset in the Consolidated Statements of Financial Condition
	recognized assets		Financial Condition		Financial Condition		Financial instruments		Securities collateral			Net amount
June 24, 2022	$	1,087		—		1,087		—		(1,087	)	$	—
December 31, 2021	$	1,529	—			1,529	—			(1,526	)	$	3


	As of June 24, 2022
	Limited Partnership Interests			Subordinated Limited Partnership Interests		General Partnership Interests			Total Partnership Interests
Total Partnership capital(1)	$	1,221		$	615	$	2,045		$	3,881
Partnership capital owned by partners with individual loans	$	89		$	—	$	992		$	1,081
Partnership capital owned by partners with individual loans as a percent of total Partnership capital		7	%		—		49	%		28	%

Individual loans:
Individual bank loans	$	16		$	—	$	—		$	16
Individual Partnership loans		—			—		400			400
Total individual loans	$	16		$	—	$	400		$	416
Individual loans as a percent of total Partnership capital		1	%		—		20	%		11	%
Individual loans as a percent of respective Partnership capital owned by partners with loans		18	%		—		40	%		38	%


	June 24, 2022		December 31, 2021
2018 Credit Facility	$	500	$	500
Uncommitted secured credit facilities		390		390
Total bank lines of credit	$	890	$	890


THE JONES FINANCIAL COMPANIES, L.L.L.P.

By:		/s/ Penny Pennington
		Penny Pennington
		Managing Partner (Principal Executive Officer)
		August 5, 2022


Signatures	Title	Date

/s/ Penny Pennington	Managing Partner (Principal Executive Officer)	August 5, 2022
Penny Pennington	Managing Partner (Principal Executive Officer)	August 5, 2022

/s/ Andrew T. Miedler	Chief Financial Officer (Principal Financial and Accounting Officer)	August 5, 2022
Andrew T. Miedler		August 5, 2022


Withdrawn General Partners:

Partner Name	Date Withdrawn as General Partner	Address 1 & 2	City, State & Zip
Buffington, Sarah Renae	6/1/2022	12555 Manchester Road	St. Louis, MO 63131
Davies, Joseph Pierre	6/1/2022	12555 Manchester Road	St. Louis, MO 63131
Sundararaman, Katherine Hanni	6/1/2022	12555 Manchester Road	St. Louis, MO 63131






Admitted General Partners:

Partner Name	Date Admitted as General Partner	Address 1 & 2	City, State & Zip
Davies Family Revocable Trust	6/1/2022	12555 Manchester Road	St. Louis, MO 63131
Katherine H. Sundararaman Revocable Living Trust	6/1/2022	12555 Manchester Road	St. Louis, MO 63131
Malik, Hasan	6/1/2022	12555 Manchester Road	St. Louis, MO 63131
Ozgenc, Deniz	6/1/2022	12555 Manchester Road	St. Louis, MO 63131
Sarah R. Buffington Living Trust	6/1/2022	12555 Manchester Road	St. Louis, MO 63131


Withdrawn General Partners:
Partner Name	Date Withdrawn as General Partner	Address 1 & 2	City, State & Zip
Betsinger, Gregory Stephen	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Bradley L Frick Revocable Living Trust	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Charles Shannon Isaacson and Sommer L Isaacson Joint Revocable Trust	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Davis, John Myron	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Dickerson, James Richard	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Haas, Lena	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Klein, Christian Guy	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Price Family Trust	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Reed, Justine Louise	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Schenk, Peter Carl	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Schloneger, Kevin Scott	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Slade III, Harry	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Whitman, Wendell Warren	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Willis, Charlotte B	7/1/2022	12555 Manchester Road	St. Louis, MO 63131

Admitted General Partners:
Partner Name	Date Admitted as General Partner	Address 1 & 2	City, State & Zip
Lena Haas Revocable Trust	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Roy, Sara Katherine	7/1/2022	12555 Manchester Road	St. Louis, MO 63131
Soto Jr, Victor Manuel	7/1/2022	12555 Manchester Road	St. Louis, MO 63131


	June 24, 2022			December 31, 2021			% Change
U.S.:
Net capital	$	1,383		$	1,421			-3	%
Net capital in excess of the minimum required	$	1,307		$	1,352			-3	%
Net capital as a percentage of aggregate debit items		36.5	%		41.3	%		-12	%
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items		18.5	%		20.7	%		-11	%

Canada:
Regulatory risk-adjusted capital	$	81		$	71			14	%
Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC	$	74		$	50			48	%


Exhibit Number		Description
3.1	*	Twenty-first Amended and Restated Agreement of Registered Limited Liability Limited Partnership, dated September 1, 2021, incorporated by reference from Exhibit 3.1 to The Jones Financial Companies, L.L.L.P. Form 8-K dated September 7, 2021.
3.2	*	Twenty-Second Amended and Restated Certificate of Limited Partnership of the Jones Financial Companies, L.L.L.P., dated February 22, 2022, incorporated by reference from Exhibit 3.2 to The Jones Financial Companies, L.L.L.P. Form 10-Q for the quarterly period ended March 25, 2022.
3.3	*	First Amendment of Twenty-Second Restated Certificate of Limited Partnership of The Jones Financial Companies, L.L.L.P., dated March 24, 2022, incorporated by reference from Exhibit 3.3 to The Jones Financial Companies, L.L.L.P. Form 10-Q for the quarterly period ended March 25, 2022.
3.4	*	Second Amendment of Twenty-Second Restated Certificate of Limited Partnership of The Jones Financial Companies, L.L.L.P., dated April 20, 2022, incorporated by reference from Exhibit 3.4 to The Jones Financial Companies, L.L.L.P. Form 10-Q for the quarterly period ended March 25, 2022.
3.5	**	Third Amendment of Twenty-Second Restated Certificate of Limited Partnership of The Jones Financial Companies, L.L.L.P., dated May 24, 2022.
3.6	**	Fourth Amendment of Twenty-Second Restated Certificate of Limited Partnership of The Jones Financial Companies, L.L.L.P., dated June 23, 2022.
3.7	**	Fifth Amendment of Twenty-Second Restated Certificate of Limited Partnership of The Jones Financial Companies, L.L.L.P., dated July 21, 2022.
31.1	**	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15(d)-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
31.2	**	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15(d)-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
32.1	**	Certification of Chief Executive Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
32.2	**	Certification of Chief Financial Officer pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	**	Inline XBRL Instance Document
101.SCH	**	Inline XBRL Taxonomy Extension Schema
101.CAL	**	Inline XBRL Taxonomy Extension Calculation
101.DEF	**	Inline XBRL Extension Definition
101.LAB	**	Inline XBRL Taxonomy Extension Label
101.PRE	**	Inline XBRL Taxonomy Extension Presentation
104	**	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Millions	Jun. 24, 2022	Dec. 31, 2021	Dec. 31, 2020
ASSETS:
Cash and cash equivalents	$ 1,258	$ 1,835
Cash and investments segregated under federal regulations	20,711	20,179
Securities purchased under agreements to resell	1,087	1,529
Receivables from:
Clients	4,479	4,187
Mutual funds, insurance companies and other	939	850
Brokers, dealers and clearing organizations	327	213
Securities owned, at fair value:
Investment securities	743	852
Inventory securities	42	38
Lease right-of-use assets	914	922
Fixed assets, at cost, net of accumulated depreciation and amortization	781	725
Other assets	890	878
TOTAL ASSETS	32,171	32,208
Payables to:
Clients	24,830	23,763
Brokers, dealers and clearing organizations	97	112
Accrued compensation and employee benefits	1,670	2,401
Accounts payable, accrued expenses and other	944	1,223
Lease liabilities	949	954
Total liabilities before partnership capital	28,490	28,453
Contingencies (Note 7)
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	3,481	3,235
Reserve for anticipated withdrawals	(200)	(520)	(514)
Total partnership capital subject to mandatory redemption	3,681	3,755	$ 3,589
TOTAL LIABILITIES	32,171	32,208
Limited Partnership Capital [Member]
Payables to:
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	1,221	1,225
Subordinated Limited Partnership Capital [Member]
Payables to:
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	615	581
General Partnership Capital [Member]
Payables to:
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals and partnership loans	$ 1,645	$ 1,429

Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 24, 2022	Jun. 25, 2021	Jun. 24, 2022	Jun. 25, 2021
Revenue:
Revenue	$ 3,008	$ 2,993	$ 6,072	$ 5,814
Interest and dividends	76	40	120	78
Other (loss) revenue, net	(46)	24	(98)	42
Total revenue	3,038	3,057	6,094	5,934
Interest expense	24	23	47	47
Net revenue	3,014	3,034	6,047	5,887
Operating expenses:
Compensation and benefits	2,086	2,148	4,234	4,187
Occupancy and equipment	144	135	287	269
Communications and data processing	159	115	305	219
Fund sub-adviser fees	63	59	126	115
Professional and consulting fees	44	34	84	65
Other operating expenses	163	100	295	209
Total operating expenses	2,659	2,591	5,331	5,064
Income before allocations to partners	355	443	716	823
Allocations to partners:
Limited partners	42	58	85	107
Subordinated limited partners	41	52	84	98
General partners	272	333	547	618
Net Income (Loss) Attributable to Parent, Total	$ 0	$ 0	$ 0	$ 0
Income allocated to limited partners per weighted average $1,000 equivalent limited partnership unit outstanding	$ 34.31	$ 46.66	$ 69.22	$ 86.74
Weighted average $1,000 equivalent limited partnership units outstanding	1,221,821	1,231,702	1,224,068	1,234,095
Total Fee Revenue [Member]
Revenue:
Revenue	$ 2,616	$ 2,556	$ 5,291	$ 4,935
Asset-based Fee Revenue [Member]
Revenue:
Revenue	2,444	2,385	4,947	4,594
Account and Activity Fee Revenue [Member]
Revenue:
Revenue	172	171	344	341
Trade Revenue [Member]
Revenue:
Revenue	$ 392	$ 437	$ 781	$ 879

Consolidated Statements of Income (Unaudited) (Parenthetical) - $ / shares	6 Months Ended
	Jun. 24, 2022	Jun. 25, 2021
Income Statement [Abstract]
Limited partnership interest value	$ 1,000	$ 1,000

Consolidated Statements of Changes in Partnership Capital Subject to Mandatory Redemption (Unaudited) - USD ($) $ in Millions	Total	Limited Partnership Capital [Member]	Subordinated Limited Partnership Capital [Member]	General Partnership Capital [Member]
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2020	$ 3,589	$ 1,362	$ 594	$ 1,633
Reserve for anticipated withdrawals at Dec. 31, 2020	(514)	(125)	(56)	(333)
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2020	3,075	1,237	538	1,300
Partnership loans outstanding at beginning of year at Dec. 31, 2020	341	0	1	340
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2020	3,416	1,237	539	1,640
Issuance of partnership interests	274	3	60	211
Redemption of partnership interests	(71)	(5)	(16)	(50)
Income allocated to partners	380	49	46	285
Distributions	(3)	0	0	(3)
Total partnership capital, including capital financed with partnership loans at Mar. 26, 2021	3,996	1,284	629	2,083
Issuance of partnership interests	11	2	0	9
Redemption of partnership interests	(13)	(5)	0	(8)
Income allocated to partners	443	58	52	333
Distributions	(489)	(10)	(82)	(397)
Total partnership capital, including capital financed with partnership loans at Jun. 25, 2021	3,948	1,329	599	2,020
Partnership loans outstanding at end of period at Jun. 25, 2021	395	0	0	395
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Jun. 25, 2021	3,553	1,329	599	1,625
Reserve for anticipated withdrawals at Jun. 25, 2021	(246)	(97)	(16)	(133)
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Jun. 25, 2021	3,307	1,232	583	1,492
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Dec. 31, 2021	3,755	1,361	640	1,754
Reserve for anticipated withdrawals at Dec. 31, 2021	(520)	(136)	(59)	(325)
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Dec. 31, 2021	3,235	1,225	581	1,429
Partnership loans outstanding at beginning of year at Dec. 31, 2021	321	0	0	321
Total partnership capital, including capital financed with partnership loans, net of reserve for anticipated withdrawals at Dec. 31, 2021	3,556	1,225	581	1,750
Issuance of partnership interests	320	4	52	264
Redemption of partnership interests	(60)	(5)	(17)	(38)
Income allocated to partners	361	43	43	275
Distributions	(13)	(1)	0	(12)
Total partnership capital, including capital financed with partnership loans at Mar. 25, 2022	4,164	1,266	659	2,239
Issuance of partnership interests	8	0	0	8
Redemption of partnership interests	(19)	(3)	(1)	(15)
Income allocated to partners	355	42	41	272
Distributions	(427)	(9)	(71)	(347)
Total partnership capital, including capital financed with partnership loans at Jun. 24, 2022	4,081	1,296	628	2,157
Partnership loans outstanding at end of period at Jun. 24, 2022	400	0	0	400
TOTAL PARTNERSHIP CAPITAL SUBJECT TO MANDATORY REDEMPTION at Jun. 24, 2022	3,681	1,296	628	1,757
Reserve for anticipated withdrawals at Jun. 24, 2022	(200)	(75)	(13)	(112)
Partnership capital subject to mandatory redemption, net of reserve for anticipated withdrawals at Jun. 24, 2022	$ 3,481	$ 1,221	$ 615	$ 1,645

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 24, 2022	Jun. 25, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 0	$ 0
Adjustments to reconcile net income to net cash provided by operating activities:
Income before allocations to partners	716	823
Depreciation and amortization	240	220
Changes in assets and liabilities:
Investments segregated under federal regulations	(612)	43
Securities purchased under agreements to resell	442	629
Net payable to clients	775	(582)
Net receivable from brokers, dealers and clearing organizations	(129)	(53)
Receivable from mutual funds, insurance companies and other	(89)	(33)
Securities owned	105	537
Other assets	(12)	(81)
Lease liabilities	(161)	(160)
Accrued compensation and employee benefits	(731)	(278)
Accounts payable, accrued expenses and other	(283)	(20)
Net cash provided by operating activities	261	1,045
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment, property and improvements	(128)	(79)
Cash used in investing activities	(128)	(79)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of partnership loans	45	27
Issuance of partnership interests	56	65
Redemption of partnership interests	(79)	(84)
Distributions from partnership capital	(812)	(867)
Net cash used in financing activities	(790)	(859)
Net (decrease) increase in cash, cash equivalents and restricted cash	(657)	107
CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	7,706	6,875
End of period	$ 7,049	$ 6,982

Introduction and Basis of Presentation (Policies)	6 Months Ended
Introduction and Basis of Presentation (Policies)	Jun. 24, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Partnership's Business and Basis of Accounting	The accompanying Consolidated Financial Statements include the accounts of The Jones Financial Companies, L.L.L.P. and all wholly-owned subsidiaries (collectively, the “Partnership” or "JFC"). The financial position of the Partnership’s subsidiaries in Canada as of May 31, 2022 and November 30, 2021 are included in the Partnership’s Consolidated Statements of Financial Condition and the results for the three- and six-month periods ended May 31, 2022 and 2021 are included in the Partnership’s Consolidated Statements of Income, Consolidated Statements of Changes in Partnership Capital Subject to Mandatory Redemption, and Consolidated Statements of Cash Flows because of the timing of the Partnership’s financial reporting process. The Partnership’s principal operating subsidiary, Edward D. Jones & Co., L.P. (“Edward Jones”), is a registered broker-dealer and investment adviser in the United States (“U.S.”), and one of Edward Jones’ subsidiaries, Edward Jones (an Ontario limited partnership) ("EJ Canada"), is a registered broker-dealer in Canada. Through these entities, the Partnership primarily serves individual investors in the U.S. and Canada. Edward Jones is a retail brokerage business and primarily derives revenues from fees for providing investment advisory and other account services to its clients, fees for assets held by clients and commissions for the distribution of mutual fund shares and insurance products and the purchase or sale of securities. The Partnership conducts business throughout the U.S. and Canada with its clients, various brokers, dealers, clearing organizations, depositories and banks. For financial information related to the Partnership’s two operating segments for the three- and six-month periods ended June 24, 2022 and June 25, 2021, see Note 8 to the Consolidated Financial Statements. Trust services are offered to Edward Jones’ U.S. clients through Edward Jones Trust Company (“Trust Co.”), a wholly-owned subsidiary of the Partnership. Olive Street Investment Advisers, LLC, a wholly-owned subsidiary of the Partnership, provides investment advisory services to the eleven sub-advised mutual funds comprising the Bridge Builder® Trust. Passport Research, Ltd., a wholly-owned subsidiary of Edward Jones, provides investment advisory services to the sub-advised Edward Jones Money Market Fund (the "Money Market Fund"). The Consolidated Financial Statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles, which require the use of certain estimates by management in determining the Partnership’s assets, liabilities, revenues and expenses. Actual results could differ from these estimates. Certain prior period balances have been adjusted to align to current year presentation. The interim financial information included herein is unaudited. However, in the opinion of management, such information includes all adjustments, consisting primarily of normal recurring accruals, which are necessary for a fair statement of the results of interim operations. The Partnership evaluated subsequent events for recognition or disclosure through August 5, 2022, which was the date these Consolidated Financial Statements were available to be issued, and identified no matters requiring disclosure. There have been no material changes to the Partnership’s significant accounting policies or disclosures of recently issued accounting standards as described in Part II, Item 8 – Financial Statements and Supplementary Data – Note 1 of the Partnership's Annual Report on Form 10-K for the year ended December 31, 2021 (the "Annual Report"). The results of operations for the three- and six- month periods ended June 24, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. These unaudited Consolidated Financial Statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and notes thereto included in the Annual Report.
Contingencies (ASC No.450)	The Partnership accrues for potential losses for those matters where it is probable that the Partnership will incur a potential loss to the extent that the amount of such potential loss can be reasonably estimated, in accordance with Financial Accounting Standards Board Accounting Standards Codification No. 450, Contingencies. This liability represents the Partnership’s estimate of the probable loss as of June 24, 2022, after considering, among other factors, the progress of each case, the Partnership's experience with other legal and regulatory matters and discussion with legal counsel, and is believed to be sufficient. The aggregate accrued liability is recorded within the accounts payable, accrued expenses and other line of the Consolidated Statements of Financial Condition and may be adjusted from time to time to reflect any relevant developments

Leases - Schedule of Future Undiscounted Cash Outflows for Operating Leases (Detail) - USD ($) $ in Millions	Jun. 24, 2022	Dec. 31, 2021
Lessee Disclosure [Abstract]
2022	$ 159
2023	279
2024	215
2025	154
2026	97
Thereafter	89
Total lease payments	993
Less: Interest	44
Total present value of lease liabilities	$ 949	$ 954

Fair Value - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
Fair Value - Additional Information (Detail) - USD ($)	Jun. 24, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair value of level III, assets	$ 0	$ 0

Fair Value - Partnership's Financial Assets at Fair Value (Detail) - USD ($) $ in Millions	Jun. 24, 2022	Dec. 31, 2021
Cash equivalents:
Total cash equivalents	$ 411	$ 313
Investments segregated under federal regulations:
Total investments segregated under federal regulations	14,920	14,308
Investment securities:
Total investment securities	743	852
Inventory securities:
Total inventory securities	42	38
Other Assets [Abstract]
Client Fractional Shares Ownership Assets	630	710
Accounts Payable and Accrued Liabilities [Abstract]
Client Fractional Shares Redemption Obligations	630	710
Equities [Member]
Investment securities:
Total investment securities	12	3
Inventory securities:
Total inventory securities	8	18
Corporate Bonds and Notes [Member]
Inventory securities:
Total inventory securities	5	3
Government and Agency Obligations [Member]
Investment securities:
Total investment securities	412	413
U.S. Treasuries [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	14,520	13,908
Mutual Funds [Member]
Investment securities:
Total investment securities	319	366
Inventory securities:
Total inventory securities	10	2
State and Municipal Obligations [Member]
Inventory securities:
Total inventory securities	18	9
Certificates of Deposit [Member]
Cash equivalents:
Total cash equivalents	384	266
Investments segregated under federal regulations:
Total investments segregated under federal regulations	400	400
Investment securities:
Total investment securities		70
Inventory securities:
Total inventory securities	1	6
Money Market Fund [Member]
Cash equivalents:
Total cash equivalents	27	47
Level I [Member]
Cash equivalents:
Total cash equivalents	27	47
Investments segregated under federal regulations:
Total investments segregated under federal regulations	14,520	13,908
Investment securities:
Total investment securities	743	782
Inventory securities:
Total inventory securities	18	20
Other Assets [Abstract]
Client Fractional Shares Ownership Assets	630	710
Accounts Payable and Accrued Liabilities [Abstract]
Client Fractional Shares Redemption Obligations	630	710
Level I [Member] \| Equities [Member]
Investment securities:
Total investment securities	12	3
Inventory securities:
Total inventory securities	8	18
Level I [Member] \| Corporate Bonds and Notes [Member]
Inventory securities:
Total inventory securities	0	0
Level I [Member] \| Government and Agency Obligations [Member]
Investment securities:
Total investment securities	412	413
Level I [Member] \| U.S. Treasuries [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	14,520	13,908
Level I [Member] \| Mutual Funds [Member]
Investment securities:
Total investment securities	319	366
Inventory securities:
Total inventory securities	10	2
Level I [Member] \| State and Municipal Obligations [Member]
Inventory securities:
Total inventory securities	0	0
Level I [Member] \| Certificates of Deposit [Member]
Cash equivalents:
Total cash equivalents	0	0
Investments segregated under federal regulations:
Total investments segregated under federal regulations	0	0
Investment securities:
Total investment securities		0
Inventory securities:
Total inventory securities	0	0
Level I [Member] \| Money Market Fund [Member]
Cash equivalents:
Total cash equivalents	27	47
Level II [Member]
Cash equivalents:
Total cash equivalents	384	266
Investments segregated under federal regulations:
Total investments segregated under federal regulations	400	400
Investment securities:
Total investment securities	0	70
Inventory securities:
Total inventory securities	24	18
Other Assets [Abstract]
Client Fractional Shares Ownership Assets	0	0
Accounts Payable and Accrued Liabilities [Abstract]
Client Fractional Shares Redemption Obligations	0	0
Level II [Member] \| Equities [Member]
Investment securities:
Total investment securities	0	0
Inventory securities:
Total inventory securities	0	0
Level II [Member] \| Corporate Bonds and Notes [Member]
Inventory securities:
Total inventory securities	5	3
Level II [Member] \| Government and Agency Obligations [Member]
Investment securities:
Total investment securities	0	0
Level II [Member] \| U.S. Treasuries [Member]
Investments segregated under federal regulations:
Total investments segregated under federal regulations	0	0
Level II [Member] \| Mutual Funds [Member]
Investment securities:
Total investment securities	0	0
Inventory securities:
Total inventory securities	0	0
Level II [Member] \| State and Municipal Obligations [Member]
Inventory securities:
Total inventory securities	18	9
Level II [Member] \| Certificates of Deposit [Member]
Cash equivalents:
Total cash equivalents	384	266
Investments segregated under federal regulations:
Total investments segregated under federal regulations	400	400
Investment securities:
Total investment securities		70
Inventory securities:
Total inventory securities	1	6
Level II [Member] \| Money Market Fund [Member]
Cash equivalents:
Total cash equivalents	$ 0	$ 0

Partnership Capital Subject to Mandatory Redemption - Roll Forward of Outstanding Partnership Loans (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 24, 2022	Jun. 25, 2021
Partners' Capital Notes [Abstract]
Partnership loans outstanding at beginning of year	$ 321	$ 341
Partnership loans issued during the period	272	220
Repayment of Partnership loans during the period	(193)	(166)
Partnership loans outstanding at end of period	$ 400	$ 395

Net Capital Requirements - Additional Information (Detail) - Edward D. Jones & Co., L. P [Member] $ in Thousands	Jun. 24, 2022 USD ($)
Net Capital Requirements [Line Items]
Percentage of aggregate debit items arising from customer transactions to maintain minimum net capital requirements	0.02
Minimum net capital requirements	$ 250

Net Capital Requirements - Partnership's Capital Figures for U.S. and Canada Broker-Dealer Subsidiaries (Detail) - USD ($) $ in Millions	Jun. 24, 2022	Dec. 31, 2021
Edward D. Jones & Co., L. P [Member]
Regulatory Capital Requirements
Net capital	$ 1,383	$ 1,421
Net capital in excess of the minimum required	$ 1,307	$ 1,352
Net capital as a percentage of aggregate debit items	36.50%	41.30%
Net capital after anticipated capital withdrawals, as a percentage of aggregate debit items	18.50%	20.70%
Canada [Member]
Regulatory Capital Requirements
Regulatory risk-adjusted capital	$ 81	$ 71
Regulatory risk-adjusted capital in excess of the minimum required to be held by IIROC	$ 74	$ 50

Contingencies - Additional Information (Detail) $ in Millions	Jun. 24, 2022 USD ($)
Loss Contingencies [Line Items]
Loss Contingency, Estimate of Possible Loss	$ 39

Segment Information - Additional Information (Detail)	6 Months Ended
Segment Information - Additional Information (Detail)	Jun. 24, 2022 Segment
Segment Reporting [Abstract]
Number of reportable segments	2

Offsetting Assets and Liabilities - Schedule of Partnership's Securities Purchased Under Agreement to Resell (Detail) - USD ($) $ in Millions	Jun. 24, 2022	Dec. 31, 2021
Offsetting Securities Purchased under Agreements to Resell [Abstract]
Securities purchased under agreements to resell, Gross amounts of recognized assets	$ 1,087	$ 1,529
Securities purchased under agreements to resell, Gross amounts offset in the Consolidated Statements of Financial Condition	0	0
Securities purchased under agreements to resell, Net amounts presented in the Consolidated Statements of Financial Condition	1,087	1,529
Securities purchased under agreements to resell, Gross amounts not offset in the Consolidated Statements of Financial Condition, Financial instruments	0	0
Securities purchased under agreements to resell, Gross amounts not offset in the Consolidated Statements of Financial Condition, Securities collateral	(1,087)	(1,526)
Securities purchased under agreements to resell, Net amount	$ 0	$ 3

Cash Flow Information - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 24, 2022	Jun. 25, 2021
Non-cash activities:
Issuance of general partnership interests through partnership loans in current period	$ 272	$ 220
Repayment of partnership loans through distributions from partnership capital in current period	$ 148	$ 139

Cash Flow Information - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash Balance (Detail) - USD ($) $ in Millions	Jun. 24, 2022	Dec. 31, 2021	Jun. 25, 2021
Supplemental Cash Flow Elements [Abstract]
Cash and cash equivalents	$ 1,258	$ 1,835	$ 1,316
Cash and investments segregated under federal regulations	20,711	$ 20,179	17,791
Less: Investments segregated under federal regulations	14,920		12,125
Total cash, cash equivalents and restricted cash	$ 7,049		$ 6,982