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Receivables and Payables
 12 Months Ended
Dec. 31, 2013
Receivables and Payables  
Receivables and Payables

(9)   Receivables and Payables

Receivables from and Payables to Brokers, Dealers and Clearing Organizations

        The following is a summary of receivables from and payables to brokers, dealers and clearing organizations at December 31 (dollars in thousands):

 
   Receivables from   Payables to  
 
   2013   2012   2013   2012  

Broker-dealers

   $ 254,031   $ 297,916   $ 284,681   $ 513,529  

Clearing organizations

     23,033     12,391     2,798     728  

Securities borrowed

     742,307     798,228     —     —  

Securities loaned

     —     —     737,789     823,202  

Allowance for doubtful accounts

     (1,029 )   (1,416 )   —     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 1,018,342   $ 1,107,119   $ 1,025,268   $ 1,337,459  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Receivables from and Payables to Customers

        The following is a summary of receivables from and payables to customers at December 31 (dollars in thousands):

 
   Receivables from   Payables to  
 
   2013   2012   2013   2012  

Customers

   $ 592,139   $ 548,287   $ 469,264   $ 226,892  

Allowance for doubtful accounts

     (1,135 )   (1,462 )   —     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 591,004   $ 546,825   $ 469,264   $ 226,892  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

        The Company maintains an allowance for doubtful accounts based upon estimated collectability of receivables. The allowance was decreased by $0.4 million in 2013 and increased by $1.4 million in 2012 and $0.2 million in 2011. Total write-offs against the allowance of $0.3 million, $0.2 million and $0.1 million were recorded during 2013, 2012 and 2011, respectively.

  • Securities Borrowed and Loaned

        As of December 31, 2013, securities borrowed as part of the Company's matched book operations with a fair value of $710.6 million were delivered for securities loaned. The gross amounts of interest earned on cash provided to counterparties as collateral for securities borrowed, and interest incurred on cash received from counterparties as collateral for securities loaned, and the resulting net amount included in other revenue on the Consolidated Statements of Operations for 2013, 2012 and 2011 were as follows (dollars in thousands):

 
   2013   2012   2011  

Interest earned

   $ 17,756   $ 19,242   $ 19,130  

Interest incurred

     (10,786 )   (14,589 )   (14,646 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net

   $ 6,970   $ 4,653   $ 4,484  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        Interest earned in 2013 includes a gain of $2.5 million related to adjustments to historical dividend withholdings on securities borrowed. Deposits paid for securities borrowed and deposits received for securities loaned are recorded at the amount of cash collateral advanced or received. Deposits paid for securities borrowed transactions require the Company to deposit cash with the lender. With respect to deposits received for securities loaned, the Company receives collateral in the form of cash in an amount generally in excess of the market value of the securities loaned. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded, as necessary.

        The Company's securities borrowing and lending is generally done under industry standard agreements ("Master Securities Lending Agreements") that may allow, following an event of default by either party, the prompt close-out of all transactions (including the liquidation of securities held) and the offsetting of obligations to return cash or securities, as the case may be, by the non-defaulting party. Events of default under the Master Securities Lending Agreements generally include, subject to certain conditions: (i) failure to timely deliver cash or securities as required under the transaction, (ii) a party's insolvency, bankruptcy, or similar proceeding, (iii) breach of representation, and (iv) a material breach of the agreement. The counterparty that receives the securities in these transactions generally has unrestricted access in its use of the securities. For financial statement purposes, the Company does not offset securities borrowed and securities loaned.

        In accordance with ASU 2013-01, the following table summarizes the transactions under certain Master Securities Lending Agreements that may be eligible for offsetting if an event of default occurred and a right of offset was legally enforceable (dollars in thousands):

 
   Gross Amounts of
Recognized Assets/
(Liabilities)		   Gross Amounts
Offset in the
Consolidated
Statement of
Financial Condition		   Net Amounts
Presented in the
Consolidated
Statement of
Financial Condition		   Collateral
Received or
Pledged
(including Cash)		   Net
Amount		  

As of December 31, 2013:

                                

Deposits paid for securities borrowed

   $ 742,307   $ —   $ 742,307   $ 742,083   $ 224  

Deposits received for securities loaned

     (737,789 )   —     (737,789 )   (721,821 )   (15,698 )

As of December 31, 2012:

                                

Deposits paid for securities borrowed

     798,228     —     798,228     789,317     8,911  

Deposits received for securities loaned

     (823,202 )   —     (823,202 )   (822,382 )   (820 )