Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 06, 2015 |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MN | ||
Entity Registrant Name | Manning & Napier, Inc. | ||
Entity Central Index Key | 1524223 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $233.40 | ||
Class A common stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 13,713,540 | ||
Class B common stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,000 |
Combined_Consolidated_Statemen
Combined Consolidated Statements of Financial Condition (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $124,992 | $125,250 |
Accounts receivable | 23,704 | 24,140 |
Accounts receivable—Manning & Napier Fund, Inc. | 15,579 | 16,461 |
Due from broker | 5,391 | 5,816 |
Investment securities, at fair value | 26,915 | 21,321 |
Prepaid expenses and other assets | 9,321 | 8,028 |
Total current assets | 205,902 | 201,016 |
Property and equipment, net | 7,456 | 5,424 |
Net deferred tax assets, non-current | 42,581 | 46,164 |
Other long-term assets | 1,534 | 0 |
Total assets | 257,473 | 252,604 |
Liabilities | ||
Accounts payable | 2,906 | 1,476 |
Accrued expenses and other liabilities | 50,779 | 49,813 |
Deferred revenue | 12,812 | 12,007 |
Total current liabilities | 66,497 | 63,296 |
Other long-term liabilities | 3,116 | 1,444 |
Amounts payable under tax receivable agreement, non-current | 39,149 | 42,075 |
Total liabilities | 108,762 | 106,815 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Additional paid-in capital | 209,284 | 208,988 |
Retained deficit | -41,087 | -40,544 |
Accumulated other comprehensive income | 0 | -1 |
Total shareholders’ equity | 168,334 | 168,579 |
Noncontrolling interests | -19,623 | -22,790 |
Total shareholders’ equity and noncontrolling interests | 148,711 | 145,789 |
Total liabilities, shareholders’ equity and noncontrolling interests | 257,473 | 252,604 |
Class A common stock | ||
Shareholders’ equity | ||
Common Stock | 137 | 136 |
Class B common stock | ||
Shareholders’ equity | ||
Common Stock | $0 | $0 |
Combined_Consolidated_Statemen1
Combined Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Class A common stock | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 13,713,540 | 13,634,246 |
Common stock, shares outstanding | 13,713,540 | 13,634,246 |
Class B common stock | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 2,000 | 2,000 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Combined_Consolidated_Statemen2
Combined Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Investment management services revenue | $405,465 | $376,068 | $339,055 |
Expenses | |||
Compensation and related costs | 158,183 | 191,803 | 165,698 |
Distribution, servicing and custody expenses | 77,165 | 67,688 | 58,068 |
Other operating costs | 35,624 | 31,738 | 31,145 |
Total operating expenses | 270,972 | 291,229 | 254,911 |
Operating income | 134,493 | 84,839 | 84,144 |
Non-operating income (loss) | |||
Interest expense | -27 | -23 | -38 |
Interest and dividend income | 741 | 297 | 149 |
Change in liability under tax receivable agreement | 2,014 | -110 | -24 |
Net gains (losses) on investments | -826 | 1,066 | 348 |
Total non-operating income (loss) | 1,902 | 1,230 | 435 |
Income before provision for income taxes | 136,395 | 86,069 | 84,579 |
Provision for income taxes | 12,660 | 9,128 | 8,160 |
Net income attributable to controlling and noncontrolling interests | 123,735 | 76,941 | 76,419 |
Less: net income attributable to noncontrolling interests | 114,418 | 74,285 | 73,950 |
Net income attributable to Manning & Napier, Inc. | $9,317 | $2,656 | $2,469 |
Net income per share available to Class A common stock | |||
Basic (dollars per share) | $0.68 | $0.20 | $0.18 |
Earnings Per Share, Diluted | $0.67 | $0.19 | $0.18 |
Weighted average shares of Class A common stock outstanding | |||
Basic (in shares) | 13,678,494 | 13,617,823 | 13,583,873 |
Diluted (in shares) | 13,881,437 | 13,741,647 | 13,583,873 |
Combined_Consolidated_Statemen3
Combined Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income attributable to controlling and noncontrolling interests | $123,735 | $76,941 | $76,419 |
Net unrealized holding loss on investment securities, net of tax | 0 | -1 | -3 |
Reclassification adjustment for realized losses on investment securities included in net income | 1 | 0 | 1 |
Comprehensive income | 123,736 | 76,940 | 76,417 |
Less: Comprehensive income attributable to noncontrolling interest | 114,419 | 74,284 | 73,948 |
Comprehensive income attributable to Manning & Napier, Inc. | $9,317 | $2,656 | $2,469 |
Combined_Consolidated_Statemen4
Combined Consolidated Statements of Shareholders’ Equity (USD $) | Total | Additional Paid-In Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest | Class A common stock | Class B common stock |
In Thousands, except Share data, unless otherwise specified | Common Stock [Member] | Common Stock [Member] | |||||
Balance at Dec. 31, 2011 | $91,808 | $188,133 | ($27,167) | $2 | ($69,296) | $136 | $0 |
Balance, Shares at Dec. 31, 2011 | 13,583,873 | 1,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 76,419 | 2,469 | 73,950 | ||||
Distributions to noncontrolling interests | -108,059 | -108,059 | |||||
Net changes in unrealized investment securities gains or losses | -2 | -2 | |||||
Equity-based compensation | 72,274 | 9,984 | 62,290 | ||||
Dividends declared on Class A common stock ($0.64, $0.72 and $0.72) | -8,694 | -8,694 | |||||
Balance at Dec. 31, 2012 | 123,746 | 198,117 | -33,392 | 0 | -41,115 | 136 | 0 |
Balance, Shares at Dec. 31, 2012 | 13,583,873 | 1,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 76,941 | 2,656 | 74,285 | ||||
Distributions to noncontrolling interests | -120,852 | -120,852 | |||||
Net changes in unrealized investment securities gains or losses | -1 | -1 | |||||
Equity-based compensation | 82,920 | 11,535 | 71,385 | ||||
Common stock issued under equity compensation plan | 256 | 256 | |||||
Common stock issued under equity compensation plan, shares | 50,373 | ||||||
Purchase of Class A units of Manning & Napier Group, LLC held by noncontrolling interests | -7,413 | -920 | -6,493 | ||||
Dividends declared on Class A common stock ($0.64, $0.72 and $0.72) | -9,808 | -9,808 | |||||
Balance at Dec. 31, 2013 | 145,789 | 208,988 | -40,544 | -1 | -22,790 | 136 | 0 |
Balance, Shares at Dec. 31, 2013 | 13,634,246 | 1,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 123,735 | 9,317 | 114,418 | ||||
Distributions to noncontrolling interests | -120,241 | -120,241 | |||||
Net changes in unrealized investment securities gains or losses | 1 | 1 | |||||
Equity-based compensation | 41,534 | 5,958 | 35,576 | ||||
Common stock issued under equity compensation plan | -1 | 1 | |||||
Shares withheld to satisfy tax withholding requirements related to restricted stock units granted | -64 | -9 | -55 | ||||
Common stock issued under equity compensation plan, shares | 79,294 | ||||||
Purchase of Class A units of Manning & Napier Group, LLC held by noncontrolling interests | -32,183 | -5,652 | -26,531 | ||||
Dividends declared on Class A common stock ($0.64, $0.72 and $0.72) | -9,860 | -9,860 | |||||
Balance at Dec. 31, 2014 | $148,711 | $209,284 | ($41,087) | $0 | ($19,623) | $137 | $0 |
Balance, Shares at Dec. 31, 2014 | 13,713,540 | 1,000 |
Combined_Consolidated_Statemen5
Combined Consolidated Statements of Shareholders’ Equity Combined Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash dividends declared per share of Class A common stock (dollars per share) | $0.24 | $0.16 | $0.16 | $0.16 | $0.24 | $0.16 | $0.16 | $0.16 | |||
Class A common stock | |||||||||||
Cash dividends declared per share of Class A common stock (dollars per share) | $0.72 | $0.72 | $0.64 |
Combined_Consolidated_Statemen6
Combined Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $123,735 | $76,941 | $76,419 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity-based compensation | 41,534 | 82,920 | 72,274 |
Depreciation and amortization | 2,317 | 1,889 | 1,686 |
Change in amounts payable under tax receivable agreement | -2,014 | 110 | 24 |
Net (gains) losses on investment securities | 826 | -1,066 | -348 |
Deferred income taxes | 5,312 | 2,037 | 2,776 |
(Increase) decrease in operating assets and increase (decrease) in operating liabilities: | |||
Accounts receivable | 519 | -1,178 | -4,553 |
Accounts receivable—Manning & Napier Fund, Inc. | 882 | -2,694 | -917 |
Prepaid expenses and other assets | -1,563 | -388 | -620 |
Accounts payable | 1,430 | 245 | 92 |
Accrued expenses and other liabilities | -1,543 | 7,013 | 5,581 |
Deferred revenue | 805 | 1,665 | 440 |
Other long-term liabilities | 1,797 | 1,124 | 0 |
Net cash provided by operating activities | 174,037 | 168,618 | 152,854 |
Cash flows from investing activities: | |||
Purchase of property and equipment | -3,694 | -2,331 | -2,282 |
Sale of investments | 11,295 | 8,938 | 4,267 |
Purchase of investments | -17,705 | -16,109 | -12,868 |
Due from broker | 0 | -5,000 | 0 |
Acquisitions, net of cash received | -2,068 | 0 | 0 |
Proceeds from maturity of investments | 605 | 0 | 505 |
Net cash used in investing activities | -11,567 | -14,502 | -10,378 |
Cash flows from financing activities: | |||
Distributions to noncontrolling interests | -120,241 | -120,852 | -108,059 |
Dividends paid on Class A common stock | -9,841 | -8,710 | -6,520 |
Payment of capital lease obligations | -245 | -215 | -183 |
Payment of costs directly associated with issuance of Class A common stock | 0 | 0 | -598 |
Purchase of Class A units of Manning & Napier Group, LLC | -32,401 | -7,413 | 0 |
Net cash used in financing activities | -162,728 | -137,190 | -115,360 |
Net (decrease) increase in cash and cash equivalents | -258 | 16,926 | 27,116 |
Cash and cash equivalents: | |||
Beginning of period | 125,250 | 108,324 | 81,208 |
End of period | 124,992 | 125,250 | 108,324 |
Supplemental disclosures: | |||
Cash paid during the period for interest | 27 | 23 | 25 |
Cash paid during the period for taxes | 8,056 | 6,142 | 6,984 |
Non-cash investing and financing activities: | |||
Capital expenditures in accounts payable and accruals | 619 | 544 | 122 |
Equipment acquired through capital lease obligation | 89 | 521 | 52 |
Accrued dividends | $3,291 | $3,272 | $2,173 |
Organization_and_Nature_of_the
Organization and Nature of the Business | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization and Nature of the Business | Organization and Nature of the Business | |
Manning & Napier, Inc. ("Manning & Napier" or the "Company") provides a broad range of investment solutions through separately managed accounts, mutual funds, and collective investment trust funds, as well as a variety of consultative services that complement its investment process. Founded in 1970, the Company offers equity, fixed income and alternative strategies, as well as a range of blended asset portfolios, such as life cycle funds. Headquartered in Fairport, New York, the Company serves a diversified client base of high net worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans, endowments and foundations. | ||
The Company was incorporated in 2011 as a Delaware corporation, and is the sole managing member of Manning & Napier Group, LLC and its subsidiaries (“Manning & Napier Group”), a holding company for the investment management businesses conducted by its operating subsidiaries. The diagram below depicts the Company's organization structure as of December 31, 2014. | ||
-1 | The operating subsidiaries of Manning & Napier Group are Manning & Napier Advisors, LLC, Exeter Advisors I, LLC, Manning & Napier Alternative Opportunities, LLC, Perspective Partners, LLC, Manning & Napier Information Services, LLC, Manning & Napier Benefits, LLC, Manning & Napier Investor Services, Inc. and Exeter Trust Company. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Basis of Presentation | |
The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and related rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results could differ from these estimates or assumptions. | |
Principles of Consolidation | |
Manning & Napier holds approximately 14.5% economic interest in Manning & Napier Group, but as managing member controls all of the business and affairs of Manning & Napier Group. As a result, the Company consolidates the financial results of Manning & Napier Group and records a noncontrolling interest on its consolidated statements of financial condition with respect to the remaining economic interest in Manning & Napier Group held by M&N Group Holdings, LLC (“M&N Group Holdings”) and Manning & Napier Capital Company, LLC (“MNCC”). | |
All material intercompany transactions have been eliminated in consolidation. | |
In accordance with Accounting Standards Codification ("ASU") 2009-17, Consolidation (Topic 810) – Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, the determination of whether a company is required to consolidate an entity is based on, among other things, an entity’s purpose and design, a company’s ability to direct the activities of the entity that most significantly impact the entity’s economic performance, and whether a company is obligated to absorb losses or receive benefits that could potentially be significant to the entity. The standard also requires ongoing assessments of whether a company is the primary beneficiary of a variable interest entity (“VIE”). In January 2010, the FASB deferred portions of ASU 2009-17 that relate to certain investment companies. The Company determined that certain entities for which it is the investment manager and/or general partner, qualify for the scope deferral and will continue to be assessed for consolidation under prior accounting guidance for consolidation of VIEs. | |
The Company provides seed capital to its investment teams to develop new products and services for its clients. The original seed investment typically represents all or a majority of the equity investment in the new product. The Company evaluates its seed investments on a regular basis and consolidates such investments as required pursuant to U.S. GAAP. | |
The Company serves as the investment adviser for Manning & Napier Fund Inc. series of mutual funds (the “Fund”) and the Exeter Collective Investment Trust (“CIT”). The Fund and CIT are legal entities, the business and affairs of which are managed by their respective boards of directors. As a result, each of these entities is a voting interest entity (“VOE”). While the Company holds, in limited cases, direct investments in a fund (which are made on the same terms as are available to other investors and do not represent a majority voting interest in any fund), the Company does not have a controlling financial interest or a majority voting interest and, as such, does not consolidate these entities. | |
On May 22, 2014 the Company became the General Partner of the MN Xenon Managed Futures Fund LP ("LP Fund"). The Company has determined that the LP Fund is not a VIE as (a) the entity has enough equity to finance its activities without additional financial support and (b) the limited partners, as a group, have the ability to remove the general partner ("kick-out rights") with a majority vote of partnership percentage. Under the voting interest model, the Company does not consolidate VOEs in which the presumption of control by the general partner is overcome by kick-out rights. | |
Operating Segments | |
The Company operates in one segment, the investment management industry. The Company primarily provides investment management services to separately managed accounts, mutual funds and collective investment trust funds. Management assesses the financial performance of these vehicles on a combined basis. | |
Revenue | |
The majority of the Company’s revenues are based on fees charged to manage customers’ portfolios. Investment management fees are generally computed as a percentage of assets under management ("AUM") and recognized as earned. Fees for providing investment advisory services are computed and billed in accordance with the provisions of the applicable investment management agreements. For the Company’s separately managed accounts, clients either pay investment management fees in advance, typically for a semi-annual or quarterly period, or in arrears, typically for a monthly or quarterly period. When investment management fees are paid in advance, the Company defers the revenue and recognizes it over the applicable period. When investment management fees are paid in arrears, the Company estimates revenues based on AUM market values as of the most recent month end date, and adjusts to actual when billed. For mutual funds and collective investment trust vehicles, the Company’s fees are calculated and earned daily based on AUM. | |
Certain investment advisory contracts provide for a performance-based fee, in addition to a base investment management fee, which is calculated as a percentage of cumulative profits over and above the aggregate of previous period cumulative profits. Performance-based fees are recorded as a component of revenue at the end of each contract’s measurement period, when all contingencies are resolved, typically on a quarterly basis. For the year ended December 31, 2014 the Company recognized less than $0.1 million in performance fee income. | |
The Company has agreements with third parties who provide distribution and administrative services for its mutual funds, collective investment trusts and certain separately managed accounts. Third party agreements are evaluated against Financial Accounting Standards Board ("FASB") ASC 605-45 Revenue Recognition - Principal Agent Considerations to determine whether revenue should be reported gross or net of payments to third-party service providers. In management's judgment there are various indicators that support gross revenue reporting, the most notable being the Company acts as primary obligor and therefore principal service provider. Based on this evaluation, investment management service revenue is recorded gross of distribution and administrative fees paid to third parties. | |
Advisory Agreements | |
The Company derives significant revenue from its role as advisor to the Fund and the CIT. | |
Investments in the Fund amounted to approximately $0.2 million and $1.7 million at December 31, 2014 and 2013, respectively. | |
Fees earned for advisory related services provided to the Fund and CIT investment vehicles were approximately $215.5 million, $196.9 million and $173.4 million for the years ended December 31, 2014, 2013 and 2012, respectively, which represents greater than 10% of revenue in each period. | |
Cash and Cash Equivalents | |
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents are primarily held in operating accounts at major financial institutions and also in money market mutual securities. Cash equivalents are stated at cost, which approximates market value due to the short-term maturity of these investments. The fair value of cash equivalents have been classified as Level 1 in accordance with the fair value hierarchy. | |
Due from broker | |
The Company conducts business with brokers for certain of its investment activities. The due from broker balance on the consolidated statements of financial condition represents cash held by brokers as collateral for managed futures and cash at brokers as collateral for securities sold, not yet purchased. | |
Investment Securities | |
Investment securities are classified as either trading or available-for-sale and are carried at fair value. Fair value is determined based on quoted market prices in active markets for identical or similar instruments. | |
Investment securities classified as trading consist of equity securities, fixed income securities, and investments in mutual funds and hedge funds for which the Company provides advisory services. Realized and unrealized gains and losses on trading securities are recorded in net gains (losses) on investments in the consolidated statements of operations. Realized gains and losses on sales of trading securities are computed on a specific identification basis. At December 31, 2014 and 2013, trading securities consist solely of investments held by the Company for the purpose of providing initial cash seeding for product development purposes. | |
Investment securities classified as available-for-sale consist of U.S. Treasury notes. Unrealized gains and losses on available-for-sale securities are excluded from earnings and are reported, net of deferred income tax, as a separate component of accumulated other comprehensive income in stockholders’ equity until realized. The Company periodically reviews each individual security position that has an unrealized loss, or impairment, to determine if that impairment is other-than-temporary. If impairment is determined to be other-than-temporary, the carrying value of the security will be written down to fair value and the loss will be recognized in earnings. Realized gains and losses on sales of available-for-sale securities are computed on a specific identification basis and are recorded in net gains (losses) on investments in the consolidated statements of operations. | |
Securities sold, not yet purchased are recorded on the trade date, are stated at fair value and represent obligations of the Company to purchase the securities at prevailing market rates. Therefore, the future satisfaction of such obligations may be for an amount greater or less than the amounts recorded on the consolidated statements of financial condition. The ultimate gains or losses recognized are dependent upon the prices at which these securities are purchased to settle the obligations under the sales commitments. Realized gains and losses from covers of securities sold, not yet purchased transactions are included in net gains (losses) from investments on the consolidated statements of operations. Securities sold, not yet purchased are included in accrued expenses and other liabilities in the consolidated statements of financial condition, with any unrealized gains or losses reported in current period earnings in net gains (losses) on investments on the consolidated statements of operations. | |
Accounts Receivable | |
Accounts receivable includes investment management and custodial fees receivable from clients. The Company’s accounts receivable balances do not include any significant allowance for doubtful accounts nor has any significant bad debt expense attributable to accounts receivable been recorded for the years ended December 31, 2014, 2013 or 2012. | |
Property and Equipment | |
Property and equipment are recorded at cost, less accumulated depreciation. Property and equipment are depreciated on a straight-line basis over the applicable life of the asset class. Depreciation is calculated for computer software, office equipment, and furniture and fixtures using useful lives of 3, 5, and 7 years, respectively. Leasehold improvements are depreciated over the shorter of the estimated useful life of the asset or the remaining expected lease term. Gains or losses upon sale or other disposition of fixed assets, are included in the consolidated statements of operations. | |
Leases | |
Rent under non-cancelable operating leases with scheduled rent increases is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. Allowances and other lease incentives provided by the Company’s landlords are amortized on a straight-line basis as a reduction of rent expense. The difference between straight-line rent expense and rent paid and the unamortized deferred lease costs and build-out allowances are recorded as deferred rent liability in the consolidated statements of financial condition. | |
Equity-Based Compensation | |
The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized over the period during which an employee is required to provide service in exchange for the award. The Company estimates an expected forfeiture rate, and only recognizes expense for those awards expected to vest. If the actual forfeiture rate is materially different from that estimated, the equity-based compensation expense could be significantly different from the amount initially recorded in the current period. See Note 14 for additional information on equity-based compensation. | |
Income Taxes | |
The Company records a tax provision for the anticipated tax consequences of the reported results of operations. The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company records a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is believed more likely than not to be realized. | |
The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | |
Goodwill | |
The Company reviews the carrying value of goodwill at least annually and whenever changes in circumstances indicate that its carrying amount may not be recoverable. If the carrying amount of goodwill exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. No impairment was recognized for the year ended December 31, 2014. | |
Comprehensive Income (Loss) | |
Comprehensive income is a measure of income which includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of the change in unrealized gains and losses on available-for-sale investments. The changes in the balances of components comprising other comprehensive income (loss) are presented in the accompanying consolidated statements of comprehensive income for the years ended December 31, 2014, 2013 and 2012. | |
Loss Contingencies | |
The Company accrues for estimated costs, including legal costs related to existing lawsuits, claims and proceedings when it is probable that a liability has been incurred and the costs can be reasonably estimated. Potential loss contingencies and related accruals are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information pertinent to a particular matter. Significant differences could exist between the actual cost required to investigate, litigate and/or settle a claim or the ultimate outcome of a suit and management’s estimate. These differences could have a material impact on the Company’s consolidated financial statements. No loss accruals were recorded as of December 31, 2014, 2013 and 2012. | |
Recent Accounting Pronouncements | |
In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The ASU modifies existing consolidation guidance for determining whether certain legal entities should be consolidated. The new guidance will be effective on January 1, 2016, and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the potential impact on its consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes existing accounting standards for revenue recognition and creates a single framework. The new guidance will be effective on January 1, 2017 and requires either a retrospective or a modified retrospective approach to adoption. Early application is prohibited. The Company is currently evaluating its transition method and the potential impact on its consolidated financial statements. |
Acquisitions_Notes
Acquisitions (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions |
On May 22, 2014, the Company acquired the operating assets of 2100 Xenon LLC ("Xenon"), an alternative investment manager specializing in managed futures and global macro strategies for institutional and individual clients. | |
The acquisition was accounted for under the acquisition method of accounting in accordance with ASC 805 "Business Combinations." Accordingly, goodwill was measured as the excess of the acquisition-date fair value of the consideration transferred over the amount of acquisition-date identifiable assets acquired net of assumed liabilities. The Company recorded $0.8 million of intangible assets and $0.9 million of goodwill, all of which are deductible for U.S. tax purposes, in other long term assets in the consolidated statement of financial condition. In management's opinion, the goodwill represents the value expected from the synergies created through the integration of Xenon's operations, as well as the reputation and expertise of Xenon in the asset management industry. | |
The results of operations of Xenon have been included in the Company's results prospectively from the date of acquisition. |
Noncontrolling_Interests
Noncontrolling Interests | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||
Noncontrolling Interests | Noncontrolling Interests | |||||||||||
Manning & Napier holds an approximately 14.5% economic interest in Manning & Napier Group, but as managing member controls all of the business and affairs of Manning & Napier Group. As a result, the Company consolidates the financial results of Manning & Napier Group and records a noncontrolling interest on its consolidated statement of financial conditions with respect to the remaining approximately 85.5% economic interest in Manning & Napier Group held by M&N Group Holdings and MNCC. Net income attributable to noncontrolling interests on the consolidated statements of operations represents the portion of earnings attributable to the economic interest in Manning & Napier Group held by the noncontrolling interests. | ||||||||||||
The following provides a reconciliation from “Income before provision for income taxes” to “Net income attributable to Manning & Napier, Inc.”: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Income before provision for income taxes | $ | 136,395 | $ | 86,069 | $ | 84,579 | ||||||
Less: gain (loss) before provision for income taxes of Manning & Napier, Inc. (a) | 1,999 | (937 | ) | (1,773 | ) | |||||||
Income before provision for income taxes, as adjusted | 134,396 | 87,006 | 86,352 | |||||||||
Controlling interest percentage (b) | 14.3 | % | 13.9 | % | 13.8 | % | ||||||
Net income attributable to controlling interest | 19,280 | 12,103 | 11,929 | |||||||||
Plus: gain (loss) before provision for income taxes of Manning & Napier, Inc. (a) | 1,999 | (937 | ) | (1,773 | ) | |||||||
Income before income taxes attributable to Manning & Napier, Inc. | 21,279 | 11,166 | 10,156 | |||||||||
Less: provision for income taxes of Manning & Napier, Inc. (c) | 11,962 | 8,510 | 7,687 | |||||||||
Net income attributable to Manning & Napier, Inc. | $ | 9,317 | $ | 2,656 | $ | 2,469 | ||||||
__________________________ | ||||||||||||
a) | Manning & Napier, Inc. incurs certain gains or expenses that are only attributable to it and are therefore excluded from the net income attributable to noncontrolling interests. | |||||||||||
b) | Income before provision for income taxes is allocated to the controlling interest based on the percentage of units of Manning & Napier Group held by Manning & Napier, Inc. The amount represents the Company's weighted ownership of Manning & Napier Group for the respective periods. | |||||||||||
c) | The consolidated provision for income taxes is equal to the sum of (i) the provision for income taxes for entities other than Manning & Napier, Inc. and (ii) the provision for income taxes of Manning & Napier, Inc. which includes all U.S. federal and state income taxes. The consolidated provision for income taxes totaled approximately $12.7 million, $9.1 million and $8.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
On March 31, 2014, M&N Group Holdings and MNCC exchanged 2,098,837 Class A units of Manning & Napier Group for approximately $30.3 million in cash. Subsequent to the exchange, the Class A units were retired. In addition, on May 29, 2014, M&N Group Holdings exchanged a total of 187,848 Class A units of Manning & Napier Group. In connection with the exchange, Manning & Napier issued 56,000 shares of Class A common stock and paid approximately $2.1 million in cash for the remaining 131,848 units. These acquisitions of additional operating company membership interests were treated as reorganizations of entities under common control as required by ASC 805 "Business Combinations." | ||||||||||||
As a result of the aforementioned transactions, the Company's economic ownership interest in Manning & Napier Group increased to approximately 14.5%. As of December 31, 2014, 73,574,338 Class A units of Manning & Napier Group are held by M&N Group Holdings and MNCC, of which 71,057,986 units may be exchangeable for shares of the Company's Class A common stock pursuant to the terms of the exchange agreement entered into at the time of the Company's 2011 initial public offering ("IPO") (Note 12). | ||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company made approximately $120.2 million, $120.9 million and $108.1 million, respectively, in distributions to noncontrolling interests. None of these distributions were payments pursuant to the tax receivable agreement (Note 15). | ||||||||||||
Obligations pursuant to the tax receivable agreement are obligations of Manning & Napier. They do not impact the noncontrolling interests. These obligations are not income tax obligations and have no impact on the tax provision or the allocation of taxes. Furthermore, the tax receivable agreement has no impact on the allocation of the provision for income taxes to the Company’s net income. |
Investment_Securities
Investment Securities | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Investments [Abstract] | ||||||||||||||||
Investment Securities | Investment Securities | |||||||||||||||
The following table represents the Company’s investment securities holdings at December 31, 2014 and December 31, 2013: | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||
Gains | Losses | Value | ||||||||||||||
(in thousands) | ||||||||||||||||
Available-for-sale securities | ||||||||||||||||
U.S. Treasury notes (0.25%, 10/31/2015) | $ | 2,107 | $ | — | $ | — | $ | 2,107 | ||||||||
Trading securities | ||||||||||||||||
Equity securities | 12,048 | |||||||||||||||
Fixed income securities | 9,366 | |||||||||||||||
Mutual funds | 168 | |||||||||||||||
Hedge funds | 3,226 | |||||||||||||||
24,808 | ||||||||||||||||
Total investment securities | $ | 26,915 | ||||||||||||||
31-Dec-13 | ||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||
Gains | Losses | Value | ||||||||||||||
(in thousands) | ||||||||||||||||
Available-for-sale securities | ||||||||||||||||
U.S. treasury note (0.25%, 8/31/2014) | $ | 505 | $ | — | $ | — | $ | 505 | ||||||||
U.S. treasury note (1.75%, 1/31/2014) | 102 | — | — | 102 | ||||||||||||
607 | — | — | 607 | |||||||||||||
Trading securities | ||||||||||||||||
Equity securities | 11,961 | |||||||||||||||
Fixed income securities | 7,085 | |||||||||||||||
Mutual funds | 1,668 | |||||||||||||||
20,714 | ||||||||||||||||
Total investment securities | $ | 21,321 | ||||||||||||||
Investment securities are classified as either trading or available-for-sale and are carried at fair value. Fair value is determined based on quoted market prices in active markets for identical or similar instruments. | ||||||||||||||||
Investment securities classified as trading consist of equity securities, fixed income securities, investments in mutual funds and investments in hedge funds for which the Company provides advisory services. At December 31, 2014 and 2013, trading securities consist solely of investments held by the Company to provide initial cash seeding for product development purposes. The Company recognized approximately $1.3 million of net unrealized losses, approximately $0.9 million of net unrealized gains and less than $0.1 million of net unrealized losses related to investments classified as trading securities for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
Investment securities classified as available-for-sale consist of U.S. Treasury notes. As of December 31, 2014 and 2013, $0.6 million of these securities is considered restricted in order to comply with certain state regulations. The Company periodically reviews each individual security position that has an unrealized loss, or impairment, to determine if that impairment is other-than-temporary. No other-than-temporary impairment charges have been recognized by the Company during the years ended December 31, 2014, 2013, or 2012. | ||||||||||||||||
The table below presents realized gains and losses on the sale of all securities for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | ||||||||||||||||
Gross realized investment gains | $ | 1,425 | $ | 990 | $ | 718 | ||||||||||
Gross realized investment losses | (415 | ) | (885 | ) | (350 | ) | ||||||||||
Net realized gains | $ | 1,010 | $ | 105 | $ | 368 | ||||||||||
Derivative_Instrument_Notes
Derivative Instrument (Notes) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | Derivative Instruments | ||||||||||||||||||||||||
The Company enters into futures contracts for product development purposes. Futures are commitments either to purchase or sell a designated financial instrument, currency, commodity or an index at a specified future date for a specified price and may be settled in cash or another financial asset. Upon entering into a futures contract, the Company is required to pledge to the broker an amount of cash, which is reported in due from broker within the consolidated statements of financial condition. Futures contracts have little credit risk because the counterparties are futures exchanges. The Company does not hold any derivatives in a formal hedge relationship under ASC 815-10, Derivatives and Hedging. | |||||||||||||||||||||||||
The following tables present the notional value and fair value as of December 31, 2014 and 2013 for derivative instruments not designated as hedging instruments: | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Notional Value | Asset Derivative | Liability Derivative | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Interest rate futures | $ | 106,932 | $ | 162 | $ | (60 | ) | ||||||||||||||||||
Index futures | 2,032 | 51 | (16 | ) | |||||||||||||||||||||
Commodity futures | 3,506 | 41 | (76 | ) | |||||||||||||||||||||
Currency futures | 10,017 | 162 | (17 | ) | |||||||||||||||||||||
Total derivatives | $ | 122,487 | $ | 416 | $ | (169 | ) | ||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Notional Value | Asset Derivative | Liability Derivative | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Interest rate futures | $ | 123,164 | $ | 217 | $ | (66 | ) | ||||||||||||||||||
Total derivatives | $ | 123,164 | $ | 217 | $ | (66 | ) | ||||||||||||||||||
As of December 31, 2014, the derivative assets and liabilities are measured at fair value and are included in due from broker in the consolidated statements of financial condition, with changes in the fair value reported in net gains (losses) on investments in the consolidated statements of operations. For the twelve months ended December 31, 2014, the average volume of derivative activity (measured in terms of notional value) was approximately $128.6 million. The following table presents the gains (losses) recognized in net gains (losses) on investments in the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Interest rate futures | $ | (555 | ) | $ | 38 | $ | — | ||||||||||||||||||
Index futures | (63 | ) | — | — | |||||||||||||||||||||
Commodity futures | (119 | ) | — | — | |||||||||||||||||||||
Currency futures | 143 | — | — | ||||||||||||||||||||||
Balance as of end of period | $ | (594 | ) | $ | 38 | $ | — | ||||||||||||||||||
Effective January 1, 2013, the Company adopted ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. The amended standard requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The derivatives instruments are subject to a master netting agreement allowing for the netting of assets and liabilities on the consolidated statements of financial position. | |||||||||||||||||||||||||
The following table presents the offsetting of managed futures as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
December 31, 2014 | $ | (169 | ) | $ | 416 | $ | 247 | $ | — | $ | — | $ | 247 | ||||||||||||
December 31, 2013 | $ | (66 | ) | $ | 217 | $ | 151 | $ | — | $ | — | $ | 151 | ||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
Fair value is defined as the price that the Company would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. A fair value hierarchy is provided that gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). | ||||||||||||||||
The following three-tier fair value hierarchy prioritizes the inputs used in measuring fair value: | ||||||||||||||||
• | Level 1—observable inputs such as quoted prices in active markets for identical securities; | |||||||||||||||
• | Level 2—other significant observable inputs (including but not limited to quoted prices for similar securities, interest rates, prepayment rates, credit risk, etc.); and | |||||||||||||||
• | Level 3—significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments). | |||||||||||||||
The following provides the hierarchy of inputs used to derive the fair value of the Company’s assets as of December 31, 2014 and 2013: | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Totals | |||||||||||||
(in thousands) | ||||||||||||||||
Equity securities | $ | 12,048 | $ | — | $ | — | $ | 12,048 | ||||||||
Fixed income securities | 1,154 | 8,212 | — | 9,366 | ||||||||||||
Mutual funds | 168 | — | — | 168 | ||||||||||||
Hedge funds | — | 3,226 | — | 3,226 | ||||||||||||
U.S. Treasury notes | — | 2,107 | — | 2,107 | ||||||||||||
Derivatives | 416 | — | — | 416 | ||||||||||||
Total assets at fair value | $ | 13,786 | $ | 13,545 | $ | — | $ | 27,331 | ||||||||
Equity securities sold, not yet purchased | $ | 964 | $ | — | $ | — | $ | 964 | ||||||||
Derivatives | 169 | — | — | 169 | ||||||||||||
Total liabilities at fair value | $ | 1,133 | $ | — | $ | — | $ | 1,133 | ||||||||
31-Dec-13 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Totals | |||||||||||||
(in thousands) | ||||||||||||||||
Equity securities | $ | 11,961 | $ | — | $ | — | $ | 11,961 | ||||||||
Fixed income securities | 1,220 | 5,865 | — | 7,085 | ||||||||||||
Mutual funds | 1,668 | — | — | 1,668 | ||||||||||||
U.S. Treasury notes | — | 607 | — | 607 | ||||||||||||
Derivatives | 217 | — | — | 217 | ||||||||||||
Total assets at fair value | $ | 15,066 | $ | 6,472 | $ | — | $ | 21,538 | ||||||||
Securities sold, not yet purchased | $ | 777 | $ | — | $ | — | $ | 777 | ||||||||
Derivatives | 66 | — | — | 66 | ||||||||||||
Total liabilities at fair value | $ | 843 | $ | — | $ | — | $ | 843 | ||||||||
Valuations of investments in fixed income securities and U.S. Treasury notes can generally be obtained through independent pricing services. For most bond types, the pricing service utilizes matrix pricing, which considers one or more of the following factors: yield or price of bonds of comparable quality, coupon, maturity, current cash flows, type and current day trade information, as well as dealer supplied prices. These valuations are categorized as Level 2 in the hierarchy. | ||||||||||||||||
The Company relies on the net asset value of certain hedge fund investments as their fair value. The net asset values have been derived from the fair values of underlying futures contracts as of the respective reporting dates. Redemptions may occur monthly at the net asset value and are therefore categorized as Level 2 in the hierarchy. | ||||||||||||||||
There were no Level 3 securities held by the Company as of December 31, 2014 or 2013. | ||||||||||||||||
The Company’s policy is to recognize transfers in and transfers out of the valuation levels as of the beginning of the reporting period. There were no significant transfers between Level 1 and Level 2 during the year ended December 31, 2014. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and Equipment | |||||||
Property and equipment as of December 31, 2014 and 2013 consisted of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Furniture and fixtures | $ | 1,980 | $ | 1,494 | ||||
Office equipment | 5,002 | 4,301 | ||||||
Computer software | 2,928 | 2,175 | ||||||
Leasehold improvements | 4,985 | 3,351 | ||||||
14,895 | 11,321 | |||||||
Less: Accumulated depreciation | (7,439 | ) | (5,897 | ) | ||||
Property and equipment, net | $ | 7,456 | $ | 5,424 | ||||
Depreciation expense is included in other operating costs and totaled $2.2 million, $1.9 million and $1.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
The Company has evaluated its long-lived assets for impairment under the current accounting standards and has concluded that no impairment loss has occurred as of December 31, 2014 and 2013. |
Accrued_Expenses_and_Other_Lia
Accrued Expenses and Other Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounts Payable and Accrued Liabilities [Abstract] | ||||||||
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities | |||||||
Accrued expenses and other liabilities as of December 31, 2014 and 2013 consisted of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Accrued bonuses and sales commissions | $ | 28,801 | $ | 28,305 | ||||
Accrued payroll and benefits | 3,424 | 2,970 | ||||||
Accrued sub-transfer agent fees | 8,108 | 8,081 | ||||||
Dividends payable | 3,291 | 3,272 | ||||||
Amounts payable under tax receivable agreement | 2,100 | 1,955 | ||||||
Securities sold, not yet purchased | 964 | 777 | ||||||
Other accruals and liabilities | 4,091 | 4,453 | ||||||
$ | 50,779 | $ | 49,813 | |||||
Line_of_Credit_Notes
Line of Credit (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit |
On February 13, 2013, the Company and Manning & Napier Group executed a Daily Adjusting LIBOR Revolving Line Note (the "Note") with M&T Bank. The Note has an original principal amount of $10.0 million and bears an interest rate of 1.50 percentage points above the greater of (a) one-month LIBOR, adjusting daily, or (b) one-day (i.e. overnight) LIBOR. The Note is unsecured and is payable on demand. If the Company fails to make payment when due under the Note, the default rate on the outstanding balance shall be 5 percentage points per year above the otherwise applicable rate per year. The Company has not drawn any loans under the Note. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | Commitments and Contingencies | ||||
The Company may enter into agreements that contain certain representations and warranties and which provide general indemnifications. The Company may also serve as a guarantor of such obligations. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company expects any risk of liability associated with such guarantees to be remote. | |||||
As an investment adviser to a variety of investment products, the Company is subject to routine reviews and inspections by the SEC and Financial Industry Regulatory Authority, Inc., National Futures Association and U.S. Commodity Futures Trading Commission. From time to time the Company may also be subject to claims, be involved in various legal proceedings arising in the ordinary course of its business and other contingencies. The Company does not believe that the outcome of any of these reviews, inspections or other legal proceedings will have a material impact on its consolidated financial statements; however, litigation is subject to many uncertainties, and the outcome of individual litigated matters is difficult to predict. The Company will establish accruals for matters that are probable, can be reasonably estimated, and may take into account any related insurance recoveries to the extent of such recoveries. Currently, there are no legal proceedings pending or to the Company’s knowledge threatened against it. As of December 31, 2014 and 2013, the Company has not accrued for any such claims, legal proceedings, or other contingencies. | |||||
Lease Commitments | |||||
The Company has several operating leases for office space, and leases its primary office facilities in Fairport, New York under an operating lease expiring December 31, 2022. The Company also rents additional office space in various other locations throughout the United States. Total rental expense for all leases amounted to $3.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. Minimum rent payments relating to the office leases for years subsequent to 2014, are as follows: | |||||
Year Ending December 31, | Minimum Payments | ||||
(in thousands) | |||||
2015 | $ | 3,580 | |||
2016 | 3,359 | ||||
2017 | 3,140 | ||||
2018 | 3,102 | ||||
2019 | 3,058 | ||||
Thereafter | 9,439 | ||||
$ | 25,678 | ||||
Under the agreement for its primary office facilities, the Company is required to pay a minimum of approximately $2.9 million annually for the use of the facility. | |||||
As of December 31, 2014 and 2013, the Company had approximately $0.4 million and $0.6 million respectively of total capital lease obligations. | |||||
As detailed in Note 15, the Company is committed to obligations pursuant to the TRA. The timing of payments is subject to certain contingencies including Manning & Napier having sufficient taxable income to utilize all of the tax benefits defined in the TRA. |
Shareholders_Equity_and_Capita
Shareholders' Equity and Capital Structure (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Shareholders’ Equity and Capital Structure | Shareholders’ Equity and Capital Structure |
The authorized capital stock of Manning & Napier consists of 300,000,000 shares of Class A common stock, par value $0.01 per share, and 2,000 shares of Class B common stock, par value $0.01 per share, and are further described below. In addition to the Class A and Class B common stock, the Company has the authority to issue 100,000 shares of preferred stock, par value $0.01 per share. | |
Class A Common Stock | |
The holders of the Company’s Class A common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. | |
The holders of the Company’s Class A common stock are entitled to receive dividends, if declared by the Company’s board of directors, out of funds legally available therefore, subject to any statutory or contractual restrictions on the payment of dividends. | |
The holders of the Company’s Class A common stock do not have preemptive, subscription, redemption or conversion rights. | |
Class B Common Stock | |
The holder of the Company’s Class B common stock controls a majority of the vote on all matters submitted to a vote of stockholders. The number of votes for each share of Class B common stock is equal to the quotient derived by dividing the total number of issued and outstanding shares of Class B common stock into a number equal to 101% of the aggregate number of votes entitled to be cast by the holders of the Class A common stock and any other of the Company’s equity securities entitled to vote other than the holders of Class B common stock, as calculated on the record date of such vote. | |
The holder of the Company’s Class B common stock does not have any right to receive dividends or to receive a distribution upon the dissolution, liquidation or sale of all or substantially all of the Company’s assets. | |
In the event the holder of the Company’s Class B common stock transfers any shares of Class B common stock to any person or entity, such shares will be deemed automatically to convert into the same number of shares of Class A common stock. | |
Upon the earlier to occur of: (i) the death of William Manning, the holder of the Company’s Class B common stock, (ii) the date that the aggregate direct and indirect ownership of William Manning's units of Manning & Napier Group constitutes less than 25% of the total number of units of Manning & Napier Group and (iii) November 17, 2017, all outstanding shares of the Company’s Class B common stock will be automatically, without any further action on the Company’s part or the holder of the shares of the Company’s Class B common stock, canceled and will revert to the status of authorized but unissued shares of Class B common stock. | |
The holder of the Company’s Class B common stock does not have any preemptive, subscription or conversion rights. | |
Voting | |
Generally, all matters to be voted on by stockholders must be approved by a majority of the votes entitled to be cast by all shares of Class A common stock and Class B common stock, voting together as a single class. | |
Shares Eligible for Future Sale | |
Upon the completion of the initial public offering, the Company entered into an exchange agreement with M&N Group Holding and MNCC, the other direct holders of all of the units of Manning & Napier Group that are not held by the Company. As discussed in Note 4, on March 31, 2014 and May 29, 2014, the noncontrolling interests exchanged 2,098,837 and 187,848, respectively, of Class A units of Manning & Napier Group. | |
As of December 31, 2014, a total of 73,574,338 Class A units of Manning & Napier Group are held by the noncontrolling interests. Pursuant to the terms of the exchange agreement, subject to certain restrictions, 71,057,986 of such units may be exchangeable on an annual basis for shares of the Company’s Class A common stock. As of December 31, 2014 approximately 27.4 million Class A units of Manning & Napier Group are eligible for exchange, of which approximately 22.2 million are held by William Manning. | |
For any units of Manning & Napier Group exchanged, the Company will (i) pay an amount of cash equal to the number of units exchanged multiplied by the value of one share of the Company’s Class A common stock less a market discount and expected expenses, or, at the Company’s election, (ii) issue shares of the Company’s Class A common stock on a one-for-one basis, subject, in each case, to customary adjustments. As the Company receives units of Manning & Napier Group that are exchanged, the Company’s ownership of Manning & Napier Group will increase. The decision whether to pay cash or issue shares will be made by the independent members of the Company’s board of directors. |
Earnings_per_Common_Share
Earnings per Common Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings per Common Share | Earnings per Common Share | |||||||||||
Basic earnings per share (“basic EPS”) is computed by dividing net income by the weighted average number of shares outstanding for the reporting period. Diluted earnings per share (“diluted EPS”) gives effect during the reporting period to other potentially dilutive shares outstanding. The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31, 2014 | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except share data) | ||||||||||||
Net income attributable to controlling and noncontrolling interests | $ | 123,735 | $ | 76,941 | $ | 76,419 | ||||||
Less: net income attributable to noncontrolling interests | 114,418 | 74,285 | 73,950 | |||||||||
Net income attributable to Manning & Napier, Inc. | $ | 9,317 | $ | 2,656 | $ | 2,469 | ||||||
Weighted average shares of Class A common stock outstanding - basic | 13,678,494 | 13,617,823 | 13,583,873 | |||||||||
Dilutive effect from restricted stock units | 202,943 | 123,824 | — | |||||||||
Weighted average shares of Class A common stock outstanding - diluted | 13,881,437 | 13,741,647 | 13,583,873 | |||||||||
Net income available to Class A common stock per share - basic | $ | 0.68 | $ | 0.2 | $ | 0.18 | ||||||
Net income available to Class A common stock per share - diluted | $ | 0.67 | $ | 0.19 | $ | 0.18 | ||||||
The Company’s Class B common stock represent voting interests and do not participate in the earnings of the Company. Accordingly, there is no earnings per share related to the Company’s Class B common stock. | ||||||||||||
At December 31, 2014 there were 73,574,338 Class A units of Manning & Napier Group which, subject to certain restrictions, may be exchangeable for up to 71,057,986 shares of the Company’s Class A common stock. The restrictions set forth in the exchange agreement were in place at the end of the respective reporting periods. These units were not included in the calculation of diluted earnings per common share for the years ended December 31, 2014, 2013 and 2012 because the effect would have been anti-dilutive. | ||||||||||||
At December 31, 2014 the Company had outstanding under its 2011 Equity Compensation Plan 181,378 restricted stock units that have a performance condition (Note 14). These units were not included in the calculation of diluted earnings per common share for the year ended December 31, 2014 because the performance conditions were not satisfied. |
Equity_Based_Compensation
Equity Based Compensation | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Share-based Compensation [Abstract] | ||||||||
Equity Based Compensation | Equity Based Compensation | |||||||
2011 Equity Compensation Plan | ||||||||
The 2011 Equity Compensation Plan (the "2011 Plan") was adopted by the Company's board of directors and approved by the Company's stockholders prior to the consummation of the IPO. A total of 13,142,813 equity interests are authorized for issuance. The equity interests may be issued in the form of the Company's Class A common stock, restricted stock units, units of Manning & Napier Group, or certain classes of membership interests in the Company which may convert into units of Manning & Napier Group ("LTIP Units"). | ||||||||
During the twelve months ended December 31, 2014, 534,798 equity awards were issued under the 2011 Equity Compensation Plan (the "2011 Plan"). Of these awards, 56,000 related to the redemption of previously issued and outstanding Class A units of Manning & Napier Group that were granted prior to the initial public offering, which were subsequently re-issued as Class A common stock. The remaining 478,798 represent newly issued awards, consisting of 15,173 shares of Class A common stock and 463,625 restricted stock units. The Class A common stock awards vested immediately, and 282,247 of the restricted stock units will vest on the third anniversary of the grant date. The remaining 181,378 of the restricted stock units will vest over a three-year service period, subject to achievement of certain revenue objectives. As such, these awards are considered to have a performance condition and the Company will periodically assess which outcomes are probable of achievement to ensure that compensation cost recognized for these awards reflects the number of awards that are ultimately expected to vest. | ||||||||
The following table summarizes stock award activity for the year ended December 31, 2014 under the 2011 Plan: | ||||||||
Restricted | Weighted Average Grant Date Fair Value | |||||||
Stock Awards | ||||||||
Stock awards outstanding at January 1, 2014 | 416,917 | $ | 15.63 | |||||
Granted | 534,798 | $ | 15.29 | |||||
Vested | (83,926 | ) | $ | 16.64 | ||||
Forfeited | (12,780 | ) | $ | 15.6 | ||||
Stock awards outstanding at December 31, 2014 | 855,009 | $ | 15.32 | |||||
The weighted average fair value of 2011 Plan awards granted during the years ended December 31, 2014 and 2013 was $15.29 and $15.83, respectively, based on the closing sale price of Manning & Napier Inc.'s Class A common stock as reported on the New York Stock Exchange on the date of grant, and reduced by the present value of the dividends expected to be paid on the underlying shares during the requisite service period. For such awards that vest over time, recipients are not entitled to dividends declared on the underlying Class A common shares until the awards become fully vested. | ||||||||
For the years ended December 31, 2014 and 2013, the Company recorded approximately $3.1 million and $1.7 million of compensation expense, respectively, related to awards under the 2011 Plan. The aggregate intrinsic value of 2011 Plan awards that vested during the years ended December 31, 2014 and 2013 was approximately $1.4 million and $0.9 million, respectively. As of December 31, 2014, there was unrecognized compensation expense related to 2011 Plan awards of approximately $6.1 million, which the Company expects to recognize over a weighted average period of approximately 1.9 years. | ||||||||
To satisfy income tax withholding requirements in connection with the vesting of restricted stock awards during the year end December 31, 2014, the Company withheld 4,632 shares of common stock. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have been otherwise issued as a result of the vesting of the restricted stock awards. | ||||||||
2011 Reorganization-Related Transactions | ||||||||
Upon the consummation of the IPO, the Company adopted new vesting terms related to the pre-IPO ownership interests of certain employees of the Company other than William Manning. Such individuals were entitled to 15% of their pre-reorganization ownership interests upon the consummation of the IPO, with an additional 5% of such ownership interests vesting annually through 2014, provided such individuals are employees of the Company as of such date (service-based vesting). The remaining ownership interests were subject to performance-based vesting annually through 2014, to be determined by a vesting committee (performance-based vesting). In connection with the reorganization and the related amendment to the limited liability company agreement of Manning & Napier Group, these pre-IPO ownership interests were reclassified as Class A Units of Manning & Napier Group. As such, fully vested ownership interests may be exchangeable for shares of the Company’s Class A common stock (Note 12). | ||||||||
Reorganization-Related Equity Compensation | ||||||||
During 2014, the Company recorded compensation expense for performance-based awards eligible to vest on December 31, 2014 under the vesting terms of ownership interests in connection with the 2011 reorganization transactions. Vesting of these performance-based awards was contingent upon the satisfaction of annual performance criteria specific to each award recipient. The determination of whether an award recipient met such performance criteria was made by a vesting committee at the end of the annual service period, and resulted in vesting of 1,603,764 of the total 4,120,116 performance-based awards eligible to vest on December 31, 2014. The remaining 2,516,352 awards were unvested as of December 31, 2014. In accordance with ASC 718, Stock Compensation, the grant date for the vested performance-based awards occurred at the end of the service period. Prior to the grant date, compensation expense for these awards was re-measured at the end of each reporting period, to the extent that service had been rendered in proportion to the total requisite service period. | ||||||||
The following table summarizes performance-based stock unit activity for the year ended December 31, 2014 specific to the 2011 reorganization transactions: | ||||||||
Performance-Based Stock Units | Weighted Average Grant Date Fair Value | |||||||
Stock unit awards outstanding at January 1, 2014 | — | $ | — | |||||
Granted | 1,641,341 | $ | 13.89 | |||||
Vested | (1,641,341 | ) | $ | 13.89 | ||||
Forfeited | — | $ | — | |||||
Stock unit awards outstanding at December 31, 2014 | — | $ | — | |||||
The following table summarizes service-based stock unit activity for the year ended December 31, 2014 specific to the 2011 reorganization transactions: | ||||||||
Service-Based Stock Units | Weighted Average Grant Date Fair Value | |||||||
Stock unit awards outstanding at January 1, 2014 | 1,458,049 | $ | 12 | |||||
Granted | — | $ | — | |||||
Vested | (1,458,049 | ) | $ | 12 | ||||
Forfeited | — | $ | — | |||||
Stock unit awards outstanding at December 31, 2014 | — | $ | — | |||||
The weighted average fair value of reorganization-related performance-based awards granted during the years ended December 31, 2014, 2013 and 2012 was $13.89, $17.65, and $12.65, respectively. The weighted average fair value of reorganization-related service-based awards granted during the years ended December 31, 2013 and 2012 was $16.54 and $13.45, respectively. The fair value of awards granted during the years ended December 31, 2014, 2013 and 2012 was determined by the closing sale price of Manning & Napier, Inc.’s Class A common stock as reported on the New York Stock Exchange on the date of grant. | ||||||||
For the year ended December 31, 2014, the Company recorded approximately $38.4 million of compensation expense related to the vesting terms of ownership interests in connection with the 2011 reorganization transactions. For the year ended December 31, 2014, approximately $15.7 million is attributable to the service-based awards. For the same period, the remaining expense of approximately $22.8 million is attributable to performance-based awards. For the year ended December 31, 2014, $22.1 million of the expense attributable to performance-based awards is related to awards that vested on December 31, 2014 under the vesting terms of ownership interests in connection with the 2011 reorganization transactions. As discussed above, this expense is based upon the closing sale price of Manning & Napier Inc.’s Class A common stock as reported on the New York Stock Exchange on December 31, 2014. | ||||||||
For the years ended December 31, 2013 and 2012, the Company recorded approximately $81.2 million and $72.3 million of compensation expense, respectively, related to the vesting terms of ownership interests in connection with the 2011 reorganization transactions. | ||||||||
The aggregate intrinsic value of service-based and performance-based stock units that vested during the year ended December 31, 2014 was approximately $21.7 million and $22.8 million, respectively. The aggregate intrinsic value of service-based and performance-based stock units that vested during the year ended December 31, 2013 was approximately $26.1 million and $61.9 million, respectively. The aggregate intrinsic value of service-based and performance-based stock units that vested during the year ended December 31, 2012 was approximately $19.3 million and $53.7 million, respectively. | ||||||||
As of December 31, 2014, there was no unrecognized compensation expense related to the vesting terms of ownership interests in connection with the 2011 reorganization transactions. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The Company is comprised of entities that have elected to be treated as either a limited liability company ("LLC"), or a “C-Corporation”. As such, the entities functioning as LLC’s are not liable for or able to benefit from U.S. federal and most state income taxes on their earnings, and earnings (losses) will be included in the personal income tax returns of each entity’s unit holders. The entities functioning as C-Corporations are liable for or able to benefit from U.S. federal, state and local income taxes on their earnings and losses, respectively. | ||||||||||||
Components of the provision for income taxes consist of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Current | ||||||||||||
Federal | $ | 6,012 | $ | 5,865 | $ | 4,472 | ||||||
State and local | 1,336 | 1,226 | 912 | |||||||||
Current tax expense | 7,348 | 7,091 | 5,384 | |||||||||
Deferred | ||||||||||||
Federal | 2,582 | 1,853 | 2,603 | |||||||||
State and local | 2,730 | 184 | 173 | |||||||||
Deferred tax expense | 5,312 | 2,037 | 2,776 | |||||||||
Provision for income tax expense | $ | 12,660 | $ | 9,128 | $ | 8,160 | ||||||
The differences between income taxes computed using the U.S. federal income tax rate and the provision for income taxes for continuing operations are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Amount computed using the statutory rate | $ | 47,738 | $ | 30,124 | $ | 29,603 | ||||||
Increase (reduction) in taxes resulting from: | ||||||||||||
State and local taxes, including settlements and adjustments, net of federal benefit | 1,093 | 1,077 | 820 | |||||||||
Impact of enacted tax law changes | 1,869 | — | — | |||||||||
Equity-based compensation | 1,931 | 3,956 | 3,494 | |||||||||
Benefit from the flow-through entities | (39,945 | ) | (25,887 | ) | (25,831 | ) | ||||||
Other, net | (26 | ) | (142 | ) | 74 | |||||||
Provision for income taxes | $ | 12,660 | $ | 9,128 | $ | 8,160 | ||||||
The provision for income taxes includes a benefit attributable to the fact that the Company’s operations include a series of flow-through entities which are generally not subject to federal and most state income taxes. Accordingly, a portion of the Company’s earnings are not subject to corporate level taxes. This favorable impact is partially offset by the impact of certain permanent items, primarily attributable to certain compensation related expenses that are not deductible for tax purposes. For the year ended December 31, 2014, the benefit is further reduced by the impact of a reduction to the Company's deferred tax asset as a result of changes in enacted tax laws which reduced tax benefits. | ||||||||||||
Deferred Tax Assets and Liabilities | ||||||||||||
As a result of Manning & Napier's purchase of Class A units of Manning & Napier Group or exchange for Class A common stock of Manning & Napier for Class A units of Manning & Napier Group and Manning & Napier Group's election under Section 754 of the Internal Revenue Code, the Company expects to benefit from depreciation and amortization deductions from an increase in tax basis of tangible and intangible assets of Manning & Napier Group. Those deductions allocated to the Company will be taken into account in reporting the Company's taxable income. | ||||||||||||
In connection with the IPO, a tax receivable agreement ("TRA") was entered into between Manning & Napier and the holders of Manning & Napier Group, pursuant to which Manning & Napier is required to pay to such holders 85% of the applicable cash savings, if any, in U.S. federal, state, local and foreign income tax that Manning & Napier actually realizes, or is deemed to realize in certain circumstances, as a result of (i) certain tax attributes of their units sold to Manning & Napier or exchanged (for shares of Class A common stock) and that are created as a result of the sales or exchanges and payments under the TRA and (ii) tax benefits related to imputed interest. | ||||||||||||
Under the TRA, Manning & Napier generally will retain the benefit of the remaining 15% of the applicable tax savings. There is a possibility that not all of the 85% of the applicable cash savings will be paid to the selling or exchanging holder of Class A units at the time described above. If it is determined that all or a portion of such applicable tax savings is in doubt, payment to such holders of Class A units will be the amount attributable to the portion of the applicable tax savings that are determined not to be in doubt and the payment of the remainder at such time as it is reasonably determined that the actual tax savings or that the amount is no longer in doubt. | ||||||||||||
At December 31, 2014 and 2013, the Company had recorded a total liability of $41.2 million and $44.0 million, respectively, representing the payments due to the selling unit holders under the TRA. Of these amounts, $2.1 million and $2.0 million were included in accrued expenses and other liabilities at December 31, 2014 and 2013, respectively. Payments are anticipated to be made annually over 15 years, commencing from the date of each event that gives rise to the TRA benefits, beginning with the date of the IPO. The timing of the payments is subject to certain contingencies including the Company having sufficient taxable income to utilize all of the tax benefits defined in the TRA. The Company recorded an adjustment of $2.0 million to the amounts payable under the TRA during the year ended December 31, 2014, driven primarily by enacted changes in tax laws. The Company made payments pursuant to the TRA of $2.0 million for each of the years ended December 31, 2014 and 2013, and payments of $0.3 million for the year ended December 31, 2012. | ||||||||||||
As discussed in Note 4, on May 29, 2014, M&N Group Holdings exchanged a total of 187,848 Class A units. The Company elected to step up its tax basis in the incremental assets acquired in accordance with Section 754 which gave rise to a deferred tax asset of approximately $1.4 million and a corresponding liability of approximately $1.2 million pursuant to the TRA. The initial estimate for the deferred tax asset, net of the liability under the TRA is recorded within paid-in capital. | ||||||||||||
Components of net deferred tax assets consist of the following: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets | ||||||||||||
Tax receivable agreement | $ | 44,995 | $ | 48,750 | ||||||||
Bonus and commissions | 1,183 | 1,334 | ||||||||||
Consulting and professional | 16 | 59 | ||||||||||
Other | 59 | — | ||||||||||
Total deferred tax assets | 46,253 | 50,143 | ||||||||||
Deferred tax liabilities | ||||||||||||
Depreciation and amortization | 132 | 161 | ||||||||||
Prepaid items | 138 | 119 | ||||||||||
Other | — | 10 | ||||||||||
Total deferred tax liabilities | 270 | 290 | ||||||||||
Net deferred tax assets | $ | 45,983 | $ | 49,853 | ||||||||
The decrease in net deferred tax assets during the year ended December 31, 2014 was attributable to amortization of the tangible and intangible assets of Manning & Napier Group and the reduction to the Company's deferred tax asset as a result of enacted changes in tax laws during 2014, which reduced expected tax benefits. | ||||||||||||
As of December 31, 2014 and 2013, the Company had no available net operating loss carryforwards for income tax purposes. | ||||||||||||
The Company has assessed the recoverability of the deferred tax assets and believes it is more likely than not that the assets will be realized. The Company has not recorded a valuation allowance as of December 31, 2014 and 2013. | ||||||||||||
Accounting for Uncertainty in Income Taxes | ||||||||||||
December 31, 2014 and 2013, the Company's liability for income taxes associated with unrecognized tax benefits was $3.2 million and $3.1 million, respectively. The increase resulted from tax positions related to the current year in the amount of less than $0.1 million. | ||||||||||||
The Company’s policy regarding interest and penalties related to uncertain tax positions is to recognize such items as a component of the provision for income taxes. The Company recorded less than $0.1 million in interest and no penalties in the consolidated statements of operations for the years ended December 31, 2014 and 2013, and no interest or penalties in the year ended December 31, 2012. | ||||||||||||
The Company does not expect that changes in the liability for unrecognized tax benefits during the next twelve months will have a significant impact on the Company's financial position or results of operations. If the unrecognized tax benefits of $3.2 million were subsequently recognized, it would favorably affect the effective income tax rate in the period recognized. | ||||||||||||
The Company files income tax returns with Federal, state and local jurisdictions. The Company’s U.S. Federal and state tax matters for the years 2011 through 2013 remain subject to examination by the respective tax authorities. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
Transactions with noncontrolling members | |
From time to time, the Company may be asked to provide certain services, including accounting, legal and other administrative functions for the noncontrolling members of Manning & Napier Group. While immaterial, the Company has not received any reimbursement for such services. | |
The Company manages the personal funds of certain of the Company's executive officers, including William Manning. Pursuant to the respective investment management agreements, in some instances the Company waives or reduces its regular advisory fees for these accounts and personal funds utilized to incubate products. The aggregate value of the fees waived related to the Company's executive officers was approximately $0.1 million in both 2014 and 2013. | |
Affiliate transactions - Manning & Napier Fund, Inc. | |
The Company has agreements to serve as the investment manager of Manning & Napier Fund, Inc., with which certain of its officers are affiliated. Under the terms of these agreements, which are generally reviewed and continued by the board of directors of Manning & Napier Fund, Inc. annually, the Company receives a fee based on an annual percentage of the average daily net assets of each series within the Manning & Napier Funds, Inc. The Company has contractually agreed to limit its fees and reimburse expenses to limit operating expenses incurred by certain of Manning & Napier Fund, Inc. series. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan |
The Company offers the Manning & Napier Advisors, LLC 401(k) and Profit Sharing Plan (the “MNA Plan”) to all employees who meet the plan criteria. | |
With respect to the 401(k) portion of the MNA Plan, participants may voluntarily contribute up to 75% of their regular salary subject to annual limitations determined by the IRS. The Company matches an amount equivalent to 50% of a participant’s contribution, not to exceed 2% of their total compensation. Matching contributions vest to the participants after three years of service. These contributions by the Company amounted to approximately $1.0 million, $0.9 million and $0.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
With respect to the profit sharing portion of the MNA Plan, the Company may make annual profit sharing contributions, subject to certain limitations, which vest immediately to individuals who are eligible. These contributions by the Company amounted to $1.6 million, $1.5 million and $1.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) | |||||||||||||||
The following is a summary of the quarterly results of operations of the Company for the years ended December 31, 2014 and 2013. | ||||||||||||||||
2014 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
(in thousands, except share data) | ||||||||||||||||
Revenue | $ | 98,470 | $ | 103,864 | $ | 104,795 | $ | 98,336 | ||||||||
Operating income (1) | $ | 20,283 | $ | 19,187 | $ | 24,010 | $ | 71,013 | ||||||||
Net income attributable to the controlling and noncontrolling interests (1) | $ | 17,644 | $ | 17,735 | $ | 19,820 | $ | 68,536 | ||||||||
Net income attributable to Manning & Napier, Inc. | $ | 81 | $ | 699 | $ | 428 | $ | 8,109 | ||||||||
Net income available to Class A common stock - diluted | $ | 0.01 | $ | 0.05 | $ | 0.03 | $ | 0.58 | ||||||||
Weighted average shares of Class A common stock - diluted | 13,751,690 | 13,820,309 | 13,930,020 | 13,956,626 | ||||||||||||
Cash dividends declared per share of Class A common stock | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.24 | ||||||||
2013 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
(in thousands, except share data) | ||||||||||||||||
Revenue | $ | 90,256 | $ | 92,973 | $ | 94,647 | $ | 98,192 | ||||||||
Operating income (2) | $ | 18,079 | $ | 21,407 | $ | 24,547 | $ | 20,806 | ||||||||
Net income attributable to the controlling and noncontrolling interests (2) | $ | 16,392 | $ | 18,597 | $ | 22,793 | $ | 19,159 | ||||||||
Net income attributable to Manning & Napier, Inc. | $ | 344 | $ | 260 | $ | 1,314 | $ | 738 | ||||||||
Net income available to Class A common stock - diluted | $ | 0.03 | $ | 0.02 | $ | 0.1 | $ | 0.05 | ||||||||
Weighted average shares of Class A common stock - diluted | 13,583,873 | 13,718,182 | 13,690,641 | 13,729,738 | ||||||||||||
Cash dividends declared per share of Class A common stock | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.24 | ||||||||
-1 | Operating income and net income attributable to the controlling and noncontrolling interests for the first, second, third and fourth quarters of 2014 included $21.9 million, $23.3 million, $20.8 million and a credit of $27.5 million, respectively, of reorganization-related share-based compensation charges. The credit to reorganization-related share-based compensation during the fourth quarter of 2014 was due to a change in estimate regarding the vesting of performance based ownership interests eligible to vest on December 31, 2014 (Note 14). | |||||||||||||||
-2 | Operating income and net income attributable to the controlling and noncontrolling interests for the first, second, third and fourth quarters of 2013 included $21.7 million, $22.8 million, $18.2 million and $18.6 million, respectively, of reorganization-related share-based compensation charges. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Distribution and Dividend | |
On March 6, 2015, the Board of Directors approved a distribution from Manning & Napier Group to Manning & Napier and the noncontrolling interests of Manning & Napier Group. The amount of the distribution to the members of Manning & Napier Group is approximately $31.3 million, of which approximately $26.8 million is payable to the noncontrolling interests. Concurrently, the Board of Directors declared a $0.16 per share dividend to the holders of Class A common stock. The dividend is payable on May 1, 2015 to shareholders of record as of April 15, 2015. | |
Exchange of Class A units of Manning & Napier Group | |
The Company is nearing the completion of the 2015 exchange period whereby eligible Class A units of Manning & Napier Group held by M&N Group Holdings and MNCC may be tendered for exchange. In connection with the exchange, the Company will pay an amount of cash equal to the number of units exchanged multiplied by the value of one share of the Company's Class A common stock less a market discount and expected expenses, or at the Company's election issue shares of Class A common stock on a one-for-one basis. | |
Purchase of unvested Class A units of Manning & Napier Group | |
Subsequent to December 31, 2014, Manning & Napier Group entered into an agreement with M&N Group Holdings and MNCC to purchase approximately 2.5 million of Class A Units of Manning & Napier Group for approximately $1.4 million in cash. These Class A Units were originally subject to performance-based vesting criteria in connection with the 2011 reorganization transactions and did not vest during 2014 (Note 14). | |
Subsequent to the redemption, the Class A units will be retired and the Company will issue approximately 1.2 million shares of Class A restricted stock to certain of its employees. The restricted stock awards will vest over a six-year service period and will be entitled to dividends on Class A common stock during the vesting period. As a result of these transactions, the Company's ownership in Manning & Napier Group will increase. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and related rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results could differ from these estimates or assumptions. | |
Principles of Consolidation | Principles of Consolidation |
Manning & Napier holds approximately 14.5% economic interest in Manning & Napier Group, but as managing member controls all of the business and affairs of Manning & Napier Group. As a result, the Company consolidates the financial results of Manning & Napier Group and records a noncontrolling interest on its consolidated statements of financial condition with respect to the remaining economic interest in Manning & Napier Group held by M&N Group Holdings, LLC (“M&N Group Holdings”) and Manning & Napier Capital Company, LLC (“MNCC”). | |
All material intercompany transactions have been eliminated in consolidation. | |
In accordance with Accounting Standards Codification ("ASU") 2009-17, Consolidation (Topic 810) – Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, the determination of whether a company is required to consolidate an entity is based on, among other things, an entity’s purpose and design, a company’s ability to direct the activities of the entity that most significantly impact the entity’s economic performance, and whether a company is obligated to absorb losses or receive benefits that could potentially be significant to the entity. The standard also requires ongoing assessments of whether a company is the primary beneficiary of a variable interest entity (“VIE”). In January 2010, the FASB deferred portions of ASU 2009-17 that relate to certain investment companies. The Company determined that certain entities for which it is the investment manager and/or general partner, qualify for the scope deferral and will continue to be assessed for consolidation under prior accounting guidance for consolidation of VIEs. | |
The Company provides seed capital to its investment teams to develop new products and services for its clients. The original seed investment typically represents all or a majority of the equity investment in the new product. The Company evaluates its seed investments on a regular basis and consolidates such investments as required pursuant to U.S. GAAP. | |
The Company serves as the investment adviser for Manning & Napier Fund Inc. series of mutual funds (the “Fund”) and the Exeter Collective Investment Trust (“CIT”). The Fund and CIT are legal entities, the business and affairs of which are managed by their respective boards of directors. As a result, each of these entities is a voting interest entity (“VOE”). While the Company holds, in limited cases, direct investments in a fund (which are made on the same terms as are available to other investors and do not represent a majority voting interest in any fund), the Company does not have a controlling financial interest or a majority voting interest and, as such, does not consolidate these entities. | |
On May 22, 2014 the Company became the General Partner of the MN Xenon Managed Futures Fund LP ("LP Fund"). The Company has determined that the LP Fund is not a VIE as (a) the entity has enough equity to finance its activities without additional financial support and (b) the limited partners, as a group, have the ability to remove the general partner ("kick-out rights") with a majority vote of partnership percentage. Under the voting interest model, the Company does not consolidate VOEs in which the presumption of control by the general partner is overcome by kick-out rights. | |
Operating Segments | Operating Segments |
The Company operates in one segment, the investment management industry. The Company primarily provides investment management services to separately managed accounts, mutual funds and collective investment trust funds. Management assesses the financial performance of these vehicles on a combined basis. | |
Revenue | Revenue |
The majority of the Company’s revenues are based on fees charged to manage customers’ portfolios. Investment management fees are generally computed as a percentage of assets under management ("AUM") and recognized as earned. Fees for providing investment advisory services are computed and billed in accordance with the provisions of the applicable investment management agreements. For the Company’s separately managed accounts, clients either pay investment management fees in advance, typically for a semi-annual or quarterly period, or in arrears, typically for a monthly or quarterly period. When investment management fees are paid in advance, the Company defers the revenue and recognizes it over the applicable period. When investment management fees are paid in arrears, the Company estimates revenues based on AUM market values as of the most recent month end date, and adjusts to actual when billed. For mutual funds and collective investment trust vehicles, the Company’s fees are calculated and earned daily based on AUM. | |
Certain investment advisory contracts provide for a performance-based fee, in addition to a base investment management fee, which is calculated as a percentage of cumulative profits over and above the aggregate of previous period cumulative profits. Performance-based fees are recorded as a component of revenue at the end of each contract’s measurement period, when all contingencies are resolved, typically on a quarterly basis. For the year ended December 31, 2014 the Company recognized less than $0.1 million in performance fee income. | |
The Company has agreements with third parties who provide distribution and administrative services for its mutual funds, collective investment trusts and certain separately managed accounts. Third party agreements are evaluated against Financial Accounting Standards Board ("FASB") ASC 605-45 Revenue Recognition - Principal Agent Considerations to determine whether revenue should be reported gross or net of payments to third-party service providers. In management's judgment there are various indicators that support gross revenue reporting, the most notable being the Company acts as primary obligor and therefore principal service provider. Based on this evaluation, investment management service revenue is recorded gross of distribution and administrative fees paid to third parties. | |
Advisory Agreements | Advisory Agreements |
The Company derives significant revenue from its role as advisor to the Fund and the CIT. | |
Investments in the Fund amounted to approximately $0.2 million and $1.7 million at December 31, 2014 and 2013, respectively. | |
Fees earned for advisory related services provided to the Fund and CIT investment vehicles were approximately $215.5 million, $196.9 million and $173.4 million for the years ended December 31, 2014, 2013 and 2012, respectively, which represents greater than 10% of revenue in each period. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents are primarily held in operating accounts at major financial institutions and also in money market mutual securities. Cash equivalents are stated at cost, which approximates market value due to the short-term maturity of these investments. The fair value of cash equivalents have been classified as Level 1 in accordance with the fair value hierarchy. | |
Due From Broker | Due from broker |
The Company conducts business with brokers for certain of its investment activities. The due from broker balance on the consolidated statements of financial condition represents cash held by brokers as collateral for managed futures and cash at brokers as collateral for securities sold, not yet purchased. | |
Investment Securities | Investment Securities |
Investment securities are classified as either trading or available-for-sale and are carried at fair value. Fair value is determined based on quoted market prices in active markets for identical or similar instruments. | |
Investment securities classified as trading consist of equity securities, fixed income securities, and investments in mutual funds and hedge funds for which the Company provides advisory services. Realized and unrealized gains and losses on trading securities are recorded in net gains (losses) on investments in the consolidated statements of operations. Realized gains and losses on sales of trading securities are computed on a specific identification basis. At December 31, 2014 and 2013, trading securities consist solely of investments held by the Company for the purpose of providing initial cash seeding for product development purposes. | |
Investment securities classified as available-for-sale consist of U.S. Treasury notes. Unrealized gains and losses on available-for-sale securities are excluded from earnings and are reported, net of deferred income tax, as a separate component of accumulated other comprehensive income in stockholders’ equity until realized. The Company periodically reviews each individual security position that has an unrealized loss, or impairment, to determine if that impairment is other-than-temporary. If impairment is determined to be other-than-temporary, the carrying value of the security will be written down to fair value and the loss will be recognized in earnings. Realized gains and losses on sales of available-for-sale securities are computed on a specific identification basis and are recorded in net gains (losses) on investments in the consolidated statements of operations. | |
Securities sold, not yet purchased are recorded on the trade date, are stated at fair value and represent obligations of the Company to purchase the securities at prevailing market rates. Therefore, the future satisfaction of such obligations may be for an amount greater or less than the amounts recorded on the consolidated statements of financial condition. The ultimate gains or losses recognized are dependent upon the prices at which these securities are purchased to settle the obligations under the sales commitments. Realized gains and losses from covers of securities sold, not yet purchased transactions are included in net gains (losses) from investments on the consolidated statements of operations. Securities sold, not yet purchased are included in accrued expenses and other liabilities in the consolidated statements of financial condition, with any unrealized gains or losses reported in current period earnings in net gains (losses) on investments on the consolidated statements of operations. | |
Accounts Receivable | Accounts Receivable |
Accounts receivable includes investment management and custodial fees receivable from clients. The Company’s accounts receivable balances do not include any significant allowance for doubtful accounts nor has any significant bad debt expense attributable to accounts receivable been recorded for the years ended December 31, 2014, 2013 or 2012. | |
Property and Equipment | Property and Equipment |
Property and equipment are recorded at cost, less accumulated depreciation. Property and equipment are depreciated on a straight-line basis over the applicable life of the asset class. Depreciation is calculated for computer software, office equipment, and furniture and fixtures using useful lives of 3, 5, and 7 years, respectively. Leasehold improvements are depreciated over the shorter of the estimated useful life of the asset or the remaining expected lease term. Gains or losses upon sale or other disposition of fixed assets, are included in the consolidated statements of operations. | |
Leases | Leases |
Rent under non-cancelable operating leases with scheduled rent increases is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. Allowances and other lease incentives provided by the Company’s landlords are amortized on a straight-line basis as a reduction of rent expense. The difference between straight-line rent expense and rent paid and the unamortized deferred lease costs and build-out allowances are recorded as deferred rent liability in the consolidated statements of financial condition. | |
Equity-Based Compensation | Equity-Based Compensation |
The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized over the period during which an employee is required to provide service in exchange for the award. The Company estimates an expected forfeiture rate, and only recognizes expense for those awards expected to vest. If the actual forfeiture rate is materially different from that estimated, the equity-based compensation expense could be significantly different from the amount initially recorded in the current period. See Note 14 for additional information on equity-based compensation. | |
Income Taxes | Income Taxes |
The Company records a tax provision for the anticipated tax consequences of the reported results of operations. The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company records a valuation allowance, if necessary, to reduce deferred tax assets to the amount that is believed more likely than not to be realized. | |
The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | |
Goodwill | Goodwill |
The Company reviews the carrying value of goodwill at least annually and whenever changes in circumstances indicate that its carrying amount may not be recoverable. If the carrying amount of goodwill exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. No impairment was recognized for the year ended December 31, 2014. | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) |
Comprehensive income is a measure of income which includes net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of the change in unrealized gains and losses on available-for-sale investments. The changes in the balances of components comprising other comprehensive income (loss) are presented in the accompanying consolidated statements of comprehensive income for the years ended December 31, 2014, 2013 and 2012. | |
Loss Contingencies | Loss Contingencies |
The Company accrues for estimated costs, including legal costs related to existing lawsuits, claims and proceedings when it is probable that a liability has been incurred and the costs can be reasonably estimated. Potential loss contingencies and related accruals are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information pertinent to a particular matter. Significant differences could exist between the actual cost required to investigate, litigate and/or settle a claim or the ultimate outcome of a suit and management’s estimate. These differences could have a material impact on the Company’s consolidated financial statements. No loss accruals were recorded as of December 31, 2014, 2013 and 2012. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis. The ASU modifies existing consolidation guidance for determining whether certain legal entities should be consolidated. The new guidance will be effective on January 1, 2016, and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the potential impact on its consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes existing accounting standards for revenue recognition and creates a single framework. The new guidance will be effective on January 1, 2017 and requires either a retrospective or a modified retrospective approach to adoption. Early application is prohibited. The Company is currently evaluating its transition method and the potential impact on its consolidated financial statements. |
Noncontrolling_Interests_Table
Noncontrolling Interests (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||
Reconciliation from Income Before Provision for Income Taxes to Net Income Attributable to Manning & Napier, Inc. | The following provides a reconciliation from “Income before provision for income taxes” to “Net income attributable to Manning & Napier, Inc.”: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Income before provision for income taxes | $ | 136,395 | $ | 86,069 | $ | 84,579 | ||||||
Less: gain (loss) before provision for income taxes of Manning & Napier, Inc. (a) | 1,999 | (937 | ) | (1,773 | ) | |||||||
Income before provision for income taxes, as adjusted | 134,396 | 87,006 | 86,352 | |||||||||
Controlling interest percentage (b) | 14.3 | % | 13.9 | % | 13.8 | % | ||||||
Net income attributable to controlling interest | 19,280 | 12,103 | 11,929 | |||||||||
Plus: gain (loss) before provision for income taxes of Manning & Napier, Inc. (a) | 1,999 | (937 | ) | (1,773 | ) | |||||||
Income before income taxes attributable to Manning & Napier, Inc. | 21,279 | 11,166 | 10,156 | |||||||||
Less: provision for income taxes of Manning & Napier, Inc. (c) | 11,962 | 8,510 | 7,687 | |||||||||
Net income attributable to Manning & Napier, Inc. | $ | 9,317 | $ | 2,656 | $ | 2,469 | ||||||
__________________________ | ||||||||||||
a) | Manning & Napier, Inc. incurs certain gains or expenses that are only attributable to it and are therefore excluded from the net income attributable to noncontrolling interests. | |||||||||||
b) | Income before provision for income taxes is allocated to the controlling interest based on the percentage of units of Manning & Napier Group held by Manning & Napier, Inc. The amount represents the Company's weighted ownership of Manning & Napier Group for the respective periods. | |||||||||||
c) | The consolidated provision for income taxes is equal to the sum of (i) the provision for income taxes for entities other than Manning & Napier, Inc. and (ii) the provision for income taxes of Manning & Napier, Inc. which includes all U.S. federal and state income taxes. The consolidated provision for income taxes totaled approximately $12.7 million, $9.1 million and $8.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Investments [Abstract] | ||||||||||||||||
Schedule of investment securities holdings | The following table represents the Company’s investment securities holdings at December 31, 2014 and December 31, 2013: | |||||||||||||||
31-Dec-14 | ||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||
Gains | Losses | Value | ||||||||||||||
(in thousands) | ||||||||||||||||
Available-for-sale securities | ||||||||||||||||
U.S. Treasury notes (0.25%, 10/31/2015) | $ | 2,107 | $ | — | $ | — | $ | 2,107 | ||||||||
Trading securities | ||||||||||||||||
Equity securities | 12,048 | |||||||||||||||
Fixed income securities | 9,366 | |||||||||||||||
Mutual funds | 168 | |||||||||||||||
Hedge funds | 3,226 | |||||||||||||||
24,808 | ||||||||||||||||
Total investment securities | $ | 26,915 | ||||||||||||||
31-Dec-13 | ||||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||||
Gains | Losses | Value | ||||||||||||||
(in thousands) | ||||||||||||||||
Available-for-sale securities | ||||||||||||||||
U.S. treasury note (0.25%, 8/31/2014) | $ | 505 | $ | — | $ | — | $ | 505 | ||||||||
U.S. treasury note (1.75%, 1/31/2014) | 102 | — | — | 102 | ||||||||||||
607 | — | — | 607 | |||||||||||||
Trading securities | ||||||||||||||||
Equity securities | 11,961 | |||||||||||||||
Fixed income securities | 7,085 | |||||||||||||||
Mutual funds | 1,668 | |||||||||||||||
20,714 | ||||||||||||||||
Total investment securities | $ | 21,321 | ||||||||||||||
Realized gains and losses on the sale of securities | The table below presents realized gains and losses on the sale of all securities for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | ||||||||||||||||
Gross realized investment gains | $ | 1,425 | $ | 990 | $ | 718 | ||||||||||
Gross realized investment losses | (415 | ) | (885 | ) | (350 | ) | ||||||||||
Net realized gains | $ | 1,010 | $ | 105 | $ | 368 | ||||||||||
Derivative_Instrument_Tables
Derivative Instrument (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Derivative Instruments | The following tables present the notional value and fair value as of December 31, 2014 and 2013 for derivative instruments not designated as hedging instruments: | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Notional Value | Asset Derivative | Liability Derivative | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Interest rate futures | $ | 106,932 | $ | 162 | $ | (60 | ) | ||||||||||||||||||
Index futures | 2,032 | 51 | (16 | ) | |||||||||||||||||||||
Commodity futures | 3,506 | 41 | (76 | ) | |||||||||||||||||||||
Currency futures | 10,017 | 162 | (17 | ) | |||||||||||||||||||||
Total derivatives | $ | 122,487 | $ | 416 | $ | (169 | ) | ||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Notional Value | Asset Derivative | Liability Derivative | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Interest rate futures | $ | 123,164 | $ | 217 | $ | (66 | ) | ||||||||||||||||||
Total derivatives | $ | 123,164 | $ | 217 | $ | (66 | ) | ||||||||||||||||||
Schedule of Derivative Instruments Gains and Losses | The following table presents the gains (losses) recognized in net gains (losses) on investments in the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Interest rate futures | $ | (555 | ) | $ | 38 | $ | — | ||||||||||||||||||
Index futures | (63 | ) | — | — | |||||||||||||||||||||
Commodity futures | (119 | ) | — | — | |||||||||||||||||||||
Currency futures | 143 | — | — | ||||||||||||||||||||||
Balance as of end of period | $ | (594 | ) | $ | 38 | $ | — | ||||||||||||||||||
Offsetting of Interest Rate Futures | The following table presents the offsetting of managed futures as of December 31, 2014 and 2013: | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets Presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Pledged | Net Amount | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
December 31, 2014 | $ | (169 | ) | $ | 416 | $ | 247 | $ | — | $ | — | $ | 247 | ||||||||||||
December 31, 2013 | $ | (66 | ) | $ | 217 | $ | 151 | $ | — | $ | — | $ | 151 | ||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Hierarchy of Inputs Used to Derive the Fair Value of Company's Assets | The following provides the hierarchy of inputs used to derive the fair value of the Company’s assets as of December 31, 2014 and 2013: | |||||||||||||||
31-Dec-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Totals | |||||||||||||
(in thousands) | ||||||||||||||||
Equity securities | $ | 12,048 | $ | — | $ | — | $ | 12,048 | ||||||||
Fixed income securities | 1,154 | 8,212 | — | 9,366 | ||||||||||||
Mutual funds | 168 | — | — | 168 | ||||||||||||
Hedge funds | — | 3,226 | — | 3,226 | ||||||||||||
U.S. Treasury notes | — | 2,107 | — | 2,107 | ||||||||||||
Derivatives | 416 | — | — | 416 | ||||||||||||
Total assets at fair value | $ | 13,786 | $ | 13,545 | $ | — | $ | 27,331 | ||||||||
Equity securities sold, not yet purchased | $ | 964 | $ | — | $ | — | $ | 964 | ||||||||
Derivatives | 169 | — | — | 169 | ||||||||||||
Total liabilities at fair value | $ | 1,133 | $ | — | $ | — | $ | 1,133 | ||||||||
31-Dec-13 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Totals | |||||||||||||
(in thousands) | ||||||||||||||||
Equity securities | $ | 11,961 | $ | — | $ | — | $ | 11,961 | ||||||||
Fixed income securities | 1,220 | 5,865 | — | 7,085 | ||||||||||||
Mutual funds | 1,668 | — | — | 1,668 | ||||||||||||
U.S. Treasury notes | — | 607 | — | 607 | ||||||||||||
Derivatives | 217 | — | — | 217 | ||||||||||||
Total assets at fair value | $ | 15,066 | $ | 6,472 | $ | — | $ | 21,538 | ||||||||
Securities sold, not yet purchased | $ | 777 | $ | — | $ | — | $ | 777 | ||||||||
Derivatives | 66 | — | — | 66 | ||||||||||||
Total liabilities at fair value | $ | 843 | $ | — | $ | — | $ | 843 | ||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment Components | Property and equipment as of December 31, 2014 and 2013 consisted of the following: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Furniture and fixtures | $ | 1,980 | $ | 1,494 | ||||
Office equipment | 5,002 | 4,301 | ||||||
Computer software | 2,928 | 2,175 | ||||||
Leasehold improvements | 4,985 | 3,351 | ||||||
14,895 | 11,321 | |||||||
Less: Accumulated depreciation | (7,439 | ) | (5,897 | ) | ||||
Property and equipment, net | $ | 7,456 | $ | 5,424 | ||||
Accrued_Expenses_and_Other_Lia1
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounts Payable and Accrued Liabilities [Abstract] | ||||||||
Accrued expenses and other liabilities | Accrued expenses and other liabilities as of December 31, 2014 and 2013 consisted of the following: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Accrued bonuses and sales commissions | $ | 28,801 | $ | 28,305 | ||||
Accrued payroll and benefits | 3,424 | 2,970 | ||||||
Accrued sub-transfer agent fees | 8,108 | 8,081 | ||||||
Dividends payable | 3,291 | 3,272 | ||||||
Amounts payable under tax receivable agreement | 2,100 | 1,955 | ||||||
Securities sold, not yet purchased | 964 | 777 | ||||||
Other accruals and liabilities | 4,091 | 4,453 | ||||||
$ | 50,779 | $ | 49,813 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of minimum rent payments relating to the office leases for subsequent years | Minimum rent payments relating to the office leases for years subsequent to 2014, are as follows: | ||||
Year Ending December 31, | Minimum Payments | ||||
(in thousands) | |||||
2015 | $ | 3,580 | |||
2016 | 3,359 | ||||
2017 | 3,140 | ||||
2018 | 3,102 | ||||
2019 | 3,058 | ||||
Thereafter | 9,439 | ||||
$ | 25,678 | ||||
Earnings_per_Common_Share_Tabl
Earnings per Common Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Calculation of Basic and Diluted Earnings Per Share | The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations for the years ended December 31, 2014, 2013 and 2012: | |||||||||||
Year Ended December 31, 2014 | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except share data) | ||||||||||||
Net income attributable to controlling and noncontrolling interests | $ | 123,735 | $ | 76,941 | $ | 76,419 | ||||||
Less: net income attributable to noncontrolling interests | 114,418 | 74,285 | 73,950 | |||||||||
Net income attributable to Manning & Napier, Inc. | $ | 9,317 | $ | 2,656 | $ | 2,469 | ||||||
Weighted average shares of Class A common stock outstanding - basic | 13,678,494 | 13,617,823 | 13,583,873 | |||||||||
Dilutive effect from restricted stock units | 202,943 | 123,824 | — | |||||||||
Weighted average shares of Class A common stock outstanding - diluted | 13,881,437 | 13,741,647 | 13,583,873 | |||||||||
Net income available to Class A common stock per share - basic | $ | 0.68 | $ | 0.2 | $ | 0.18 | ||||||
Net income available to Class A common stock per share - diluted | $ | 0.67 | $ | 0.19 | $ | 0.18 | ||||||
Equity_Based_Compensation_Tabl
Equity Based Compensation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Share-based Compensation [Abstract] | ||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table summarizes stock award activity for the year ended December 31, 2014 under the 2011 Plan: | |||||||
Restricted | Weighted Average Grant Date Fair Value | |||||||
Stock Awards | ||||||||
Stock awards outstanding at January 1, 2014 | 416,917 | $ | 15.63 | |||||
Granted | 534,798 | $ | 15.29 | |||||
Vested | (83,926 | ) | $ | 16.64 | ||||
Forfeited | (12,780 | ) | $ | 15.6 | ||||
Stock awards outstanding at December 31, 2014 | 855,009 | $ | 15.32 | |||||
Summarized Reorganization-related Performance-Based Stock Units | The following table summarizes performance-based stock unit activity for the year ended December 31, 2014 specific to the 2011 reorganization transactions: | |||||||
Performance-Based Stock Units | Weighted Average Grant Date Fair Value | |||||||
Stock unit awards outstanding at January 1, 2014 | — | $ | — | |||||
Granted | 1,641,341 | $ | 13.89 | |||||
Vested | (1,641,341 | ) | $ | 13.89 | ||||
Forfeited | — | $ | — | |||||
Stock unit awards outstanding at December 31, 2014 | — | $ | — | |||||
Summarized Reorganization-Related Service-Based Stock Units | The following table summarizes service-based stock unit activity for the year ended December 31, 2014 specific to the 2011 reorganization transactions: | |||||||
Service-Based Stock Units | Weighted Average Grant Date Fair Value | |||||||
Stock unit awards outstanding at January 1, 2014 | 1,458,049 | $ | 12 | |||||
Granted | — | $ | — | |||||
Vested | (1,458,049 | ) | $ | 12 | ||||
Forfeited | — | $ | — | |||||
Stock unit awards outstanding at December 31, 2014 | — | $ | — | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Components of the provision for income taxes | Components of the provision for income taxes consist of the following: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Current | ||||||||||||
Federal | $ | 6,012 | $ | 5,865 | $ | 4,472 | ||||||
State and local | 1,336 | 1,226 | 912 | |||||||||
Current tax expense | 7,348 | 7,091 | 5,384 | |||||||||
Deferred | ||||||||||||
Federal | 2,582 | 1,853 | 2,603 | |||||||||
State and local | 2,730 | 184 | 173 | |||||||||
Deferred tax expense | 5,312 | 2,037 | 2,776 | |||||||||
Provision for income tax expense | $ | 12,660 | $ | 9,128 | $ | 8,160 | ||||||
Differences between income taxes computed using the U.S. federal income tax rate and the provision for income taxes for continuing operations | The differences between income taxes computed using the U.S. federal income tax rate and the provision for income taxes for continuing operations are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Amount computed using the statutory rate | $ | 47,738 | $ | 30,124 | $ | 29,603 | ||||||
Increase (reduction) in taxes resulting from: | ||||||||||||
State and local taxes, including settlements and adjustments, net of federal benefit | 1,093 | 1,077 | 820 | |||||||||
Impact of enacted tax law changes | 1,869 | — | — | |||||||||
Equity-based compensation | 1,931 | 3,956 | 3,494 | |||||||||
Benefit from the flow-through entities | (39,945 | ) | (25,887 | ) | (25,831 | ) | ||||||
Other, net | (26 | ) | (142 | ) | 74 | |||||||
Provision for income taxes | $ | 12,660 | $ | 9,128 | $ | 8,160 | ||||||
Schedule of deferred tax assets and liabilities | Components of net deferred tax assets consist of the following: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets | ||||||||||||
Tax receivable agreement | $ | 44,995 | $ | 48,750 | ||||||||
Bonus and commissions | 1,183 | 1,334 | ||||||||||
Consulting and professional | 16 | 59 | ||||||||||
Other | 59 | — | ||||||||||
Total deferred tax assets | 46,253 | 50,143 | ||||||||||
Deferred tax liabilities | ||||||||||||
Depreciation and amortization | 132 | 161 | ||||||||||
Prepaid items | 138 | 119 | ||||||||||
Other | — | 10 | ||||||||||
Total deferred tax liabilities | 270 | 290 | ||||||||||
Net deferred tax assets | $ | 45,983 | $ | 49,853 | ||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Summary of quarterly results of operations | The following is a summary of the quarterly results of operations of the Company for the years ended December 31, 2014 and 2013. | |||||||||||||||
2014 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
(in thousands, except share data) | ||||||||||||||||
Revenue | $ | 98,470 | $ | 103,864 | $ | 104,795 | $ | 98,336 | ||||||||
Operating income (1) | $ | 20,283 | $ | 19,187 | $ | 24,010 | $ | 71,013 | ||||||||
Net income attributable to the controlling and noncontrolling interests (1) | $ | 17,644 | $ | 17,735 | $ | 19,820 | $ | 68,536 | ||||||||
Net income attributable to Manning & Napier, Inc. | $ | 81 | $ | 699 | $ | 428 | $ | 8,109 | ||||||||
Net income available to Class A common stock - diluted | $ | 0.01 | $ | 0.05 | $ | 0.03 | $ | 0.58 | ||||||||
Weighted average shares of Class A common stock - diluted | 13,751,690 | 13,820,309 | 13,930,020 | 13,956,626 | ||||||||||||
Cash dividends declared per share of Class A common stock | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.24 | ||||||||
2013 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
(in thousands, except share data) | ||||||||||||||||
Revenue | $ | 90,256 | $ | 92,973 | $ | 94,647 | $ | 98,192 | ||||||||
Operating income (2) | $ | 18,079 | $ | 21,407 | $ | 24,547 | $ | 20,806 | ||||||||
Net income attributable to the controlling and noncontrolling interests (2) | $ | 16,392 | $ | 18,597 | $ | 22,793 | $ | 19,159 | ||||||||
Net income attributable to Manning & Napier, Inc. | $ | 344 | $ | 260 | $ | 1,314 | $ | 738 | ||||||||
Net income available to Class A common stock - diluted | $ | 0.03 | $ | 0.02 | $ | 0.1 | $ | 0.05 | ||||||||
Weighted average shares of Class A common stock - diluted | 13,583,873 | 13,718,182 | 13,690,641 | 13,729,738 | ||||||||||||
Cash dividends declared per share of Class A common stock | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.24 | ||||||||
-1 | Operating income and net income attributable to the controlling and noncontrolling interests for the first, second, third and fourth quarters of 2014 included $21.9 million, $23.3 million, $20.8 million and a credit of $27.5 million, respectively, of reorganization-related share-based compensation charges. The credit to reorganization-related share-based compensation during the fourth quarter of 2014 was due to a change in estimate regarding the vesting of performance based ownership interests eligible to vest on December 31, 2014 (Note 14). | |||||||||||||||
-2 | Operating income and net income attributable to the controlling and noncontrolling interests for the first, second, third and fourth quarters of 2013 included $21.7 million, $22.8 million, $18.2 million and $18.6 million, respectively, of reorganization-related share-based compensation charges |
Organization_and_Nature_of_the1
Organization and Nature of the Business (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Class A common Stock of Public Investors | 100.00% |
Class B common Stock of William Manning | 100.00% |
Voting Rights held by public | 49.80% |
Percentage of voting rights held by majority shareholder | 50.20% |
Percentage of economic rights held by public | 100.00% |
Percentage Of Economic Rights Held By Controlling Shareholder | 0.00% |
Outside ownership interest in limited liability and limited partnership companies | 1.20% |
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 14.50% |
Majority Outside Ownership Interest in limited liability and limited partnership companies | 84.30% |
Outside Voting Rights in Limited Liability Company LLC or Limited Partnership companies | 1.20% |
Managing Member or General Partner Voting Rights In Limited Liability Company LLC or Limited Partnership | 14.50% |
Majority Outside Voting Rights in Limited Liability Company LLC or Limited Partnership companies | 84.30% |
Outside Economic Rights in Limited Liability Company LLC or Limited Partnership companies | 1.20% |
Managing Member or General Partner Economic Rights of Limited Liability Company LLC or Limited | 14.50% |
Majority Outside Economic Rights in Limited Liability Company LLC Or Limited Partnership Companies | 84.30% |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Number of segments | 1 | ||
Performance fees | $100,000 | ||
Investments in the funds | 24,808,000 | 20,714,000 | |
Goodwill impairment loss | 0 | ||
Computer software | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Property and Equipment useful lives (years) | 3 years | ||
Office equipment | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Property and Equipment useful lives (years) | 5 years | ||
Furniture and fixtures | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Property and Equipment useful lives (years) | 7 years | ||
Mutual Funds | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Investment Advisory Fees | 215,500,000 | 196,900,000 | 173,400,000 |
Mutual Funds | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Investments in the funds | 168,000 | 1,668,000 | |
Mutual Funds | Manning & Napier Fund | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Investments in the funds | $168,000 | $1,668,000 | |
Manning & Napier Group, LLC | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of economic interest in Manning & Napier Group held by Manning & Napier, Inc (percent) | 14.50% |
Acquisitions_Details
Acquisitions (Details) (Xenon LLC, USD $) | 22-May-14 |
In Millions, unless otherwise specified | |
Xenon LLC | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $0.80 |
Goodwill | $0.90 |
Noncontrolling_Interests_Recon
Noncontrolling Interests (Reconciliation of Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Noncontrolling Interest [Abstract] | |||||||||||||||
Income before provision for income taxes | $136,395 | $86,069 | $84,579 | ||||||||||||
Less: loss before provision for income taxes of Manning & Napier, Inc. | 1,999 | [1] | -937 | [1] | -1,773 | [1] | |||||||||
Income before provision for income taxes, as adjusted | 134,396 | 87,006 | 86,352 | ||||||||||||
Controlling interest percentage | 14.30% | [2] | 13.90% | [2] | 13.80% | [2] | |||||||||
Net income attributable to controlling interest | 19,280 | 12,103 | 11,929 | ||||||||||||
Plus: loss before provision for income taxes of Manning & Napier, Inc. | 1,999 | [1] | -937 | [1] | -1,773 | [1] | |||||||||
Income before income taxes attributable to Manning & Napier, Inc. | 21,279 | 11,166 | 10,156 | ||||||||||||
Less: provision (benefit) for income taxes of Manning & Napier, Inc. | 11,962 | [3] | 8,510 | [3] | 7,687 | [3] | |||||||||
Net income attributable to Manning & Napier, Inc. | 8,109 | 428 | 699 | 81 | 738 | [4] | 1,314 | 260 | 344 | 9,317 | 2,656 | 2,469 | |||
Provision for income taxes | $12,660 | $9,128 | $8,160 | ||||||||||||
[1] | Manning & Napier, Inc. incurs certain gains or expenses that are only attributable to it and are therefore excluded from the net income attributable to noncontrolling interests. | ||||||||||||||
[2] | Income before provision for income taxes is allocated to the controlling interest based on the percentage of units of Manning & Napier Group held by Manning & Napier, Inc. The amount represents the Company's weighted ownership of Manning & Napier Group for the respective periods. | ||||||||||||||
[3] | The consolidated provision for income taxes is equal to the sum of (i) the provision for income taxes for entities other than Manning & Napier, Inc. and (ii) the provision for income taxes of Manning & Napier, Inc. which includes all U.S. federal and state income taxes. The consolidated provision for income taxes totaled approximately $12.7 million, $9.1 million and $8.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
[4] | Operating income and net income attributable to the controlling and noncontrolling interests for the first, second, third and fourth quarters of 2013 included $21.7 million, $22.8 million, $18.2 million and $18.6 million, respectively, of reorganization-related share-based compensation charges. |
Noncontrolling_Interests_Textu
Noncontrolling Interests (Textual) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 29-May-14 | Mar. 31, 2014 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Deferred Tax Assets, Tax Receivable Agreements | 1,400,000 | ||||
Number of Class A common stock shares upon conversion of Class A Units (shares) | 73,574,338 | ||||
Payments due to selling unit holders | 41,200,000 | 44,000,000 | 1,200,000 | ||
Amounts payable under tax receivable agreement | 2,100,000 | 1,955,000 | |||
Period of payments for TRA benefits | 15 years | ||||
Payment pursuant to the TRA | 2,000,000 | 2,000,000 | 300,000 | ||
Decrease from distributions to noncontrolling interest holders | 120,241,000 | 120,852,000 | 108,059,000 | ||
Manning & Napier Group, LLC | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Percentage of economic interest in Manning & Napier Group held by Manning & Napier, Inc (percent) | 14.50% | ||||
Percentage of cash savings payable under tax receivable agreement (percent) | 85.00% | ||||
Percentage of cash savings receivable under tax receivable agreement | 15.00% | ||||
Class A common stock | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Conversion of stock, shares issued | 56,000 | ||||
Manning & Napier Group Holding, LLC | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Limited Liability Company LLC or Limited Partnership LP Remaining Ownership Interest | 85.50% | ||||
Manning & Napier Group, LLC | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Percentage of economic interest in Manning & Napier Group held by Manning & Napier, Inc (percent) | 14.50% | ||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Shares | 187,848 | 2,098,837 | |||
Payments to Acquire Additional Interest in Subsidiaries | 2,100,000 | $30,300,000 | |||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Remaining Shares | 131,848 | ||||
Capital Unit, Class A | Class A common stock | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 71,057,986 |
Investment_Securities_Companys
Investment Securities (Company's Investment Securities Holdings) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Investment Holdings [Line Items] | ||
Available-for-sale securities, Cost | $607 | |
Available-for-sale Debt Securities, unrealized gains | 0 | |
Available-for-sale Debt Securities, unrealized losses | 0 | |
Available-for-sale securities, at fair value | 607 | |
Trading Securities, Fair Value | 24,808 | 20,714 |
Total investment securities | 26,915 | 21,321 |
US Treasury Note (0.25%, 10/31/2015) | ||
Investment Holdings [Line Items] | ||
Available-for-sale securities, interest rate (percent) | 0.25% | |
Available-for-sale securities, Cost | 2,107 | |
Available-for-sale Debt Securities, unrealized gains | 0 | |
Available-for-sale Debt Securities, unrealized losses | 0 | |
Available-for-sale securities, at fair value | 2,107 | |
US treasury note (0.25%, 8/31/2014) | ||
Investment Holdings [Line Items] | ||
Available-for-sale securities, interest rate (percent) | 0.25% | |
Available-for-sale securities, Cost | 505 | |
Available-for-sale Debt Securities, unrealized gains | 0 | |
Available-for-sale Debt Securities, unrealized losses | 0 | |
Available-for-sale securities, at fair value | 505 | |
US Treasury Note (1.75%, 1/31/2014 | ||
Investment Holdings [Line Items] | ||
Available-for-sale securities, interest rate (percent) | 1.75% | |
Available-for-sale securities, Cost | 102 | |
Available-for-sale Debt Securities, unrealized gains | 0 | |
Available-for-sale Debt Securities, unrealized losses | 0 | |
Available-for-sale securities, at fair value | 102 | |
Equity securities | ||
Investment Holdings [Line Items] | ||
Trading Securities, Fair Value | 12,048 | 11,961 |
Fixed income securities | ||
Investment Holdings [Line Items] | ||
Trading Securities, Fair Value | 9,366 | 7,085 |
Mutual Funds | ||
Investment Holdings [Line Items] | ||
Trading Securities, Fair Value | 168 | 1,668 |
Hedge Funds | ||
Investment Holdings [Line Items] | ||
Trading Securities, Fair Value | 3,226 | |
Manning & Napier Fund | Mutual Funds | ||
Investment Holdings [Line Items] | ||
Trading Securities, Fair Value | 168 | 1,668 |
Manning & Napier Fund | Hedge Funds | ||
Investment Holdings [Line Items] | ||
Trading Securities, Fair Value | $3,226 |
Investment_Securities_Textual_
Investment Securities (Textual) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investments [Abstract] | |||
Recognized net unrealized gain (losses) on trading securities | ($1,300,000) | ||
Unrealized loss on trading securities, less than amount | 900,000 | ||
Unrealized holding gain on trading securities, less than amount | 100,000 | ||
Restricted Securities | 600,000 | 600,000 | |
Other than temporary impairment losses recognized | 0 | 0 | 0 |
Gross realized investment gains | 1,425,000 | 990,000 | 718,000 |
Gross realized investment losses | -415,000 | -885,000 | -350,000 |
Net realized gains | $1,010,000 | $105,000 | $368,000 |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Future | ||
Derivative [Line Items] | ||
Fair Value, Asset Derivative | $416,000 | |
Fair Value, Liability Derivative | -169,000 | |
Interest Rate Contract | Future | ||
Derivative [Line Items] | ||
Fair Value, Asset Derivative | 217,000 | |
Fair Value, Liability Derivative | -66,000 | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 122,487,000 | 123,164,000 |
Fair Value, Asset Derivative | 416,000 | 217,000 |
Fair Value, Liability Derivative | -169,000 | -66,000 |
Not Designated as Hedging Instrument | Future | ||
Derivative [Line Items] | ||
Derivative, Weighted Average Volume | 128,600,000 | |
Not Designated as Hedging Instrument | Interest Rate Contract | Future | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 106,932,000 | 123,164,000 |
Fair Value, Asset Derivative | 162,000 | 217,000 |
Fair Value, Liability Derivative | -60,000 | -66,000 |
Not Designated as Hedging Instrument | Index Future Contract | Future | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 2,032,000 | |
Fair Value, Asset Derivative | 51,000 | |
Fair Value, Liability Derivative | -16,000 | |
Not Designated as Hedging Instrument | Commodity Contract | Future | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 3,506,000 | |
Fair Value, Asset Derivative | 41,000 | |
Fair Value, Liability Derivative | -76,000 | |
Not Designated as Hedging Instrument | Currency Futures | Future | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 10,017,000 | |
Fair Value, Asset Derivative | 162,000 | |
Fair Value, Liability Derivative | ($17,000) |
Derivative_Instruments_Gains_a
Derivative Instruments- Gains and Losses (Details) (Not Designated as Hedging Instrument, Net Capital Gains (Losses) on Investments, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | ($594) | $38 | $0 |
Future | Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | -555 | 38 | 0 |
Future | Index Future Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | -63 | 0 | 0 |
Future | Commodity Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | -119 | 0 | 0 |
Future | Currency Futures | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $143 | $0 | $0 |
Derivative_Instrument_Derivati
Derivative Instrument Derivative Instrument - Offsetting (Details) (Future, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | ($169) | |
Gross Amounts Offset in the Statement of Financial Position | 416 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 247 | |
Financial Instruments | 0 | |
Cash Collateral Pledged | 0 | |
Net Amount | 247 | |
Interest Rate Contract | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | -66 | |
Gross Amounts Offset in the Statement of Financial Position | 217 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 151 | |
Financial Instruments | 0 | |
Cash Collateral Pledged | 0 | |
Net Amount | $151 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | $24,808 | $20,714 |
Available-for-sale securities, at fair value | 607 | |
Derivative Assets | 416 | |
Total assets at fair value | 27,331 | 21,538 |
Equity securities sold, not yet purchased | 964 | 777 |
Derivatives | 169 | 66 |
Total liabilities at fair value | 1,133 | 843 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 12,048 | 11,961 |
Fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 9,366 | 7,085 |
Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 168 | 1,668 |
Hedge Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 3,226 | |
U.S. Treasury Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 2,107 | 607 |
Derivative Assets | 217 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 416 | |
Total assets at fair value | 13,786 | 15,066 |
Equity securities sold, not yet purchased | 964 | 777 |
Derivatives | 169 | 66 |
Total liabilities at fair value | 1,133 | 843 |
Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 12,048 | 11,961 |
Level 1 | Fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 1,154 | 1,220 |
Level 1 | Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 168 | 1,668 |
Level 1 | Hedge Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 0 | |
Level 1 | U.S. Treasury Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Derivative Assets | 217 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 0 | |
Total assets at fair value | 13,545 | 6,472 |
Equity securities sold, not yet purchased | 0 | 0 |
Derivatives | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 0 | 0 |
Level 2 | Fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 8,212 | 5,865 |
Level 2 | Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 0 | 0 |
Level 2 | Hedge Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 3,226 | |
Level 2 | U.S. Treasury Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 2,107 | 607 |
Derivative Assets | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 0 | |
Total assets at fair value | 0 | 0 |
Equity securities sold, not yet purchased | 0 | 0 |
Derivatives | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 0 | 0 |
Level 3 | Fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 0 | 0 |
Level 3 | Mutual Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 0 | 0 |
Level 3 | Hedge Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 0 | |
Level 3 | U.S. Treasury Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Derivative Assets | $0 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $14,895 | $11,321 |
Less: Accumulated depreciation | -7,439 | -5,897 |
Property and equipment, net | 7,456 | 5,424 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,980 | 1,494 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,002 | 4,301 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,928 | 2,175 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $4,985 | $3,351 |
Property_and_Equipment_Depreci
Property and Equipment Depreciation Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $2.20 | $1.90 | $1.70 |
Accrued_Expenses_and_Other_Lia2
Accrued Expenses and Other Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accrued bonuses and sales commissions | $28,801 | $28,305 |
Accrued payroll and benefits | 3,424 | 2,970 |
Accrued sub-transfer agent fees | 8,108 | 8,081 |
Dividends payable | 3,291 | 3,272 |
Amounts payable under tax receivable agreement | 2,100 | 1,955 |
Securities sold, not yet purchased | 964 | 777 |
Other accruals and liabilities | 4,091 | 4,453 |
Total accrued expenses and other liabilities | $50,779 | $49,813 |
Line_of_Credit_Details
Line of Credit (Details) (Revolving Credit Facility, USD $) | 0 Months Ended |
Feb. 13, 2013 | |
Debt Instrument [Line Items] | |
Revolving line of credit, maximum borrowing capacity | 10,000,000 |
Default interest rate, spread above stated interest rate (percent) | 5.00% |
LIBOR | |
Debt Instrument [Line Items] | |
Interest rate description | LIBOR |
Basis spread on variable rate (percent) | 1.50% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitment And Contingencies [Line Items] | |||
Operating lease rent expense | $3,600,000 | $3,600,000 | $3,600,000 |
Capital lease obligations | 400,000 | 600,000 | |
Future Minimum Operating Lease Payments Due | |||
2015 | 3,580,000 | ||
2016 | 3,359,000 | ||
2017 | 3,140,000 | ||
2018 | 3,102,000 | ||
2019 | 3,058,000 | ||
Thereafter | 9,439,000 | ||
Total operating leases, future minimum payments due | 25,678,000 | ||
Office Facilities | |||
Future Minimum Operating Lease Payments Due | |||
Total operating leases, future minimum payments due | $2,900,000 |
Shareholders_Equity_and_Capita1
Shareholders' Equity and Capital Structure (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | 29-May-14 | Mar. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 100,000 | |||
Preferred stock, par value (dollars per share) | $0.01 | |||
Number of Class A common stock shares upon conversion of Class A Units (shares) | 73,574,338 | |||
Class A common stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (shares) | 300,000,000 | 300,000,000 | ||
Common stock, par value (dollars per share) | $0.01 | $0.01 | ||
Class B common stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (shares) | 2,000 | 2,000 | ||
Common stock, par value (dollars per share) | $0.01 | $0.01 | ||
Common stock, stock voting conversion ratio (percent) | 101.00% | |||
Manning & Napier Group Holding, LLC | Class A common stock | ||||
Class of Stock [Line Items] | ||||
Conversion of Stock, Eligible for Exchange | 27,400,000 | |||
Manning & Napier Group Holding, LLC | Class B common stock | ||||
Class of Stock [Line Items] | ||||
Common stock, cancellation requirements, minimum ownership percentage | 25.00% | |||
Manning & Napier Group, LLC | ||||
Class of Stock [Line Items] | ||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Shares | 187,848 | 2,098,837 | ||
William Manning | Manning & Napier Group Holding, LLC | Class A common stock | ||||
Class of Stock [Line Items] | ||||
Conversion of Stock, Eligible for Exchange | 22,200,000 | |||
Capital Unit, Class A | Manning & Napier Group, LLC | Class A Units | ||||
Class of Stock [Line Items] | ||||
Number of Common Units Available for Conversion | 73,574,338 | |||
Capital Unit, Class A | Class A common stock | ||||
Class of Stock [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 71,057,986 |
Earnings_per_Common_Share_Deta
Earnings per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||
Net income attributable to controlling and noncontrolling interests | $68,536 | [1] | $19,820 | [1] | $17,735 | [1] | $17,644 | [1] | $19,159 | [2] | $22,793 | [2] | $18,597 | [2] | $16,392 | [2] | $123,735 | $76,941 | $76,419 |
Less: net income attributable to noncontrolling interests | 114,418 | 74,285 | 73,950 | ||||||||||||||||
Net income attributable to Manning & Napier, Inc. | $8,109 | $428 | $699 | $81 | $738 | [2] | $1,314 | $260 | $344 | $9,317 | $2,656 | $2,469 | |||||||
Weighted average shares of Class A common stock outstanding - basic | 13,678,494 | 13,617,823 | 13,583,873 | ||||||||||||||||
Dilutive effect from restricted stock units | 202,943 | 123,824 | 0 | ||||||||||||||||
Weighted average shares of Class A common stock outstanding - diluted | 13,881,437 | 13,741,647 | 13,583,873 | ||||||||||||||||
Net income available to Class A common stock per share - basic | $0.68 | $0.20 | $0.18 | ||||||||||||||||
Net income available to Class A common stock per share - diluted | $0.58 | $0.03 | $0.05 | $0.01 | $0.05 | [2] | $0.10 | $0.02 | $0.03 | $0.67 | $0.19 | $0.18 | |||||||
Capital Unit, Class A | Class A common stock | |||||||||||||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 71,057,986 | ||||||||||||||||||
Capital Unit, Class A | Class A Units | Manning & Napier Group, LLC | |||||||||||||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||
Number of Common Units Available for Conversion | 73,574,338 | 73,574,338 | |||||||||||||||||
Equity Compensation Plan 2011 | |||||||||||||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||
Granted (shares) | 478,798 | ||||||||||||||||||
Equity Compensation Plan 2011 | Class A common stock | |||||||||||||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||
Granted (shares) | 15,173 | ||||||||||||||||||
Equity Compensation Plan 2011 | Capital Unit, Class A | |||||||||||||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||
Granted (shares) | 56,000 | ||||||||||||||||||
Equity Compensation Plan 2011 | Restricted Stock Units (RSUs) | |||||||||||||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||
Granted (shares) | 463,625 | ||||||||||||||||||
Equity Compensation Plan 2011 | Restricted Stock Units (RSUs) | Share-based Compensation Award, Tranche Two [Member] | |||||||||||||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||
Granted (shares) | 181,378 | ||||||||||||||||||
Equity Compensation Plan 2011 | Restricted Stock Units (RSUs) | Share-based Compensation Award, Tranche Two [Member] | Performance Based Stock Units | Class A common stock | |||||||||||||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 181,378 | ||||||||||||||||||
[1] | Operating income and net income attributable to the controlling and noncontrolling interests for the first, second, third and fourth quarters of 2014 included $21.9 million, $23.3 million, $20.8 million and a credit of $27.5 million, respectively, of reorganization-related share-based compensation charges | ||||||||||||||||||
[2] | Operating income and net income attributable to the controlling and noncontrolling interests for the first, second, third and fourth quarters of 2013 included $21.7 million, $22.8 million, $18.2 million and $18.6 million, respectively, of reorganization-related share-based compensation charges. |
Equity_Based_Compensation_Addi
Equity Based Compensation (Additional Information) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares withheld to satisfy income tax withholding requirements | 4,632 | |||
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 534,798 | |||
Granted, weighted average grant date fair value (dollars per share) | $15.29 | $15.83 | ||
Service Based Stock Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 0 | |||
Granted, weighted average grant date fair value (dollars per share) | $0 | $16.54 | $13.45 | |
Compensation expense related to the vesting terms of ownership interests | $15,700,000 | |||
Aggregate intrinsic value of shares vested | 21,700,000 | 26,100,000 | 19,300,000 | |
Reorganization Related | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense related to the vesting terms of ownership interests | 38,400,000 | 81,200,000 | 72,300,000 | |
Additional ownership percentage (percent) | 5.00% | |||
Pre Reorganization Related | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Ownership percentage (percent) | 15.00% | |||
Performance Based Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 1,641,341 | |||
Granted, weighted average grant date fair value (dollars per share) | $13.89 | $17.65 | $12.65 | |
Compensation expense related to the vesting terms of ownership interests | 22,800,000 | |||
Pre-IPO interest organization options vested (in shares) | 1,603,764 | |||
Pre-IPO interest organization options eligible to vest (in shares) | 4,120,116 | |||
Pre-IPO interest organization options unvested (shares) | 2,516,352 | |||
Expense attributable to performance-based awards eligible to vest | 22,100,000 | |||
Aggregate intrinsic value of shares vested | 22,800,000 | 61,900,000 | 53,700,000 | |
Equity Compensation Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized | 13,142,813 | |||
Granted (shares) | 478,798 | |||
Compensation expense related to the vesting terms of ownership interests | 3,100,000 | 1,700,000 | ||
The aggregate intrinsic value of stock units that vested | 1,400,000 | 900,000 | ||
Unrecognized compensation expense related to unvested awards | 6,100,000 | |||
Weighted average period of unrecognized compensation expense (years) | 1 year 11 months | |||
Equity Compensation Plan 2011 | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 534,798 | |||
Equity Compensation Plan 2011 | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 463,625 | |||
Equity Compensation Plan 2011 | Class A common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 15,173 | |||
Reorganization Equity Compensation Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense related to unvested awards | $0 | |||
Capital Unit, Class A | Equity Compensation Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 56,000 | |||
Vesting on Third Anniversary of Grant Date | Equity Compensation Plan 2011 | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 282,247 | |||
Share-based Compensation Award, Tranche Two [Member] | Equity Compensation Plan 2011 | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 181,378 | |||
Award vesting period | 3 years |
Equity_Based_Compensation_Rest
Equity Based Compensation (Restricted Stock Awards) (Details) (Restricted Stock Awards, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock Awards | ||
Stock Units | ||
Stock unit awards, beginning balance (shares) | 416,917 | |
Granted (shares) | 534,798 | |
Vested (shares) | -83,926 | |
Forfeited (shares) | -12,780 | |
Stock unit awards, ending balance (shares) | 855,009 | 416,917 |
Weighted Average Grant Date Fair Value | ||
Stock unit awards, beginning balance, weighted average grant date fair value (dollars per share) | $15.63 | |
Granted, weighted average grant date fair value (dollars per share) | $15.29 | $15.83 |
Vested, weighted average grant date fair value (dollars per share) | $16.64 | |
Forfeited, weighted average grant date fair value (dollars per share) | $15.60 | |
Stock unit awards, ending balance, weighted average grant date fair value (dollars per share) | $15.32 | $15.63 |
Equity_Based_Compensation_Summ
Equity Based Compensation (Summarized Reorganization-Related Performance-Based Stock Units) (Details) (Performance Based Stock Units, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Performance Based Stock Units | |||
Stock Units | |||
Granted (shares) | 1,641,341 | ||
Vested (shares) | -1,641,341 | ||
Forfeited (shares) | 0 | ||
Stock unit awards, ending balance (shares) | 0 | 0 | |
Weighted Average Grant Date Fair Value | |||
Stock unit awards, beginning balance, weighted average grant date fair value (dollars per share) | $0 | ||
Granted, weighted average grant date fair value (dollars per share) | $13.89 | $17.65 | $12.65 |
Vested, weighted average grant date fair value (dollars per share) | $13.89 | ||
Forfeited, weighted average grant date fair value (dollars per share) | $0 | ||
Stock unit awards, ending balance, weighted average grant date fair value (dollars per share) | $0 | $0 |
Equity_Based_Compensation_Summ1
Equity Based Compensation (Summarized Reorganization-Related Service-Based Stock Units) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Performance Based Stock Units | |||
Stock Units | |||
Stock unit awards, beginning balance (shares) | 0 | ||
Granted (shares) | 1,641,341 | ||
Vested (shares) | -1,641,341 | ||
Forfeited (shares) | 0 | ||
Stock unit awards, ending balance (shares) | 0 | 0 | |
Weighted Average Grant Date Fair Value | |||
Stock unit awards, beginning balance, weighted average grant date fair value (dollars per share) | $0 | ||
Granted, weighted average grant date fair value (dollars per share) | $13.89 | $17.65 | $12.65 |
Vested, weighted average grant date fair value (dollars per share) | $13.89 | ||
Forfeited, weighted average grant date fair value (dollars per share) | $0 | ||
Stock unit awards, ending balance, weighted average grant date fair value (dollars per share) | $0 | $0 | |
Service Based Stock Unit | |||
Stock Units | |||
Stock unit awards, beginning balance (shares) | 1,458,049 | ||
Granted (shares) | 0 | ||
Vested (shares) | -1,458,049 | ||
Forfeited (shares) | 0 | ||
Stock unit awards, ending balance (shares) | 0 | 1,458,049 | |
Weighted Average Grant Date Fair Value | |||
Stock unit awards, beginning balance, weighted average grant date fair value (dollars per share) | $12 | ||
Granted, weighted average grant date fair value (dollars per share) | $0 | $16.54 | $13.45 |
Vested, weighted average grant date fair value (dollars per share) | $12 | ||
Forfeited, weighted average grant date fair value (dollars per share) | $0 | ||
Stock unit awards, ending balance, weighted average grant date fair value (dollars per share) | $0 | $12 |
Income_Taxes_Components_of_the
Income Taxes (Components of the Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||
Federal | $6,012 | $5,865 | $4,472 |
State and local | 1,336 | 1,226 | 912 |
Current tax expense | 7,348 | 7,091 | 5,384 |
Deferred | |||
Federal | 2,582 | 1,853 | 2,603 |
State and local | 2,730 | 184 | 173 |
Deferred tax expense | 5,312 | 2,037 | 2,776 |
Provision for income taxes | $12,660 | $9,128 | $8,160 |
Income_Taxes_Effective_Tax_Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Amount computed using the statutory rate | $47,738 | $30,124 | $29,603 |
State and local taxes, including settlements and adjustments, net of federal benefit | 1,093 | 1,077 | 820 |
Impact of enacted tax law changes | 1,869 | 0 | 0 |
Equity-based compensation | 1,931 | 3,956 | 3,494 |
Benefit from the flow-through entities | -39,945 | -25,887 | -25,831 |
Other, net | -26 | -142 | 74 |
Provision for income taxes | $12,660 | $9,128 | $8,160 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred tax assets | ||
Tax receivable agreement | 44,995,000 | $48,750,000 |
Bonus and commissions | 1,183,000 | 1,334,000 |
Consulting and professional | 16,000 | 59,000 |
Other | 59,000 | 0 |
Total Deferred Tax Assets, Gross | 46,253,000 | 50,143,000 |
Deferred tax liabilities | ||
Depreciation and amortization | 132,000 | 161,000 |
Prepaid items | 138,000 | 119,000 |
Other | 0 | 10,000 |
Total Deferred Tax Liabilities | 270,000 | 290,000 |
Net deferred tax assets | 45,983,000 | 49,853,000 |
Operating loss carryforwards | 0 | $0 |
Manning & Napier Group, LLC | ||
Deferred tax liabilities | ||
Percentage of cash savings payable under tax receivable agreement (percent) | 85.00% | |
Percentage of cash savings receivable under tax receivable agreement | 15.00% |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 29-May-14 | Mar. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||||
Payments due to selling unit holders | $41,200,000 | $44,000,000 | 1,200,000 | ||
Amounts payable under tax receivable agreement | 2,100,000 | 1,955,000 | |||
Period of payments for TRA benefits | 15 years | ||||
Change in amounts payable under tax receivable agreement | -2,014,000 | 110,000 | 24,000 | ||
Payment pursuant to the TRA | 2,000,000 | 2,000,000 | 300,000 | ||
Deferred Tax Assets, Tax Receivable Agreements | 1,400,000 | ||||
Unrecognized tax benefits | 3,200,000 | 3,100,000 | |||
Unrecognized tax benefits, increase resulting from current period tax positions | 100,000 | ||||
Interest expense | 100,000 | ||||
Penalties expense | 0 | ||||
Interest and penalties expense | $0 | $0 | |||
Manning & Napier Group, LLC | |||||
Income Tax Disclosure [Line Items] | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Shares | 187,848 | 2,098,837 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Executive Officer, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Executive Officer | ||
Related Party Transactions [Line Items] | ||
Advisory Fees Waived | $0.10 | $0.10 |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Maximum annual 401(k) contribution per employee (percent) | 75.00% | ||
401(k) employer matching contribution (percent) | 50.00% | ||
401(k) employer matching contribution, maximum employee compensation (percent) | 2.00% | ||
401(k) Plan vesting period (years) | 3 years | ||
401(k) Plan employer contribution amount | $1 | $0.90 | $0.70 |
Profit Sharing Plan contribution amount | $1.60 | $1.50 | $1.30 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenue | $98,336 | $104,795 | $103,864 | $98,470 | $98,192 | $94,647 | $92,973 | $90,256 | $405,465 | $376,068 | $339,055 | ||||||||
Operating income (loss) | 71,013 | [1] | 24,010 | [1] | 19,187 | [1] | 20,283 | [1] | 20,806 | [2] | 24,547 | [2] | 21,407 | [2] | 18,079 | [2] | 134,493 | 84,839 | 84,144 |
Net income attributable to controlling and noncontrolling interests | 68,536 | [1] | 19,820 | [1] | 17,735 | [1] | 17,644 | [1] | 19,159 | [2] | 22,793 | [2] | 18,597 | [2] | 16,392 | [2] | 123,735 | 76,941 | 76,419 |
Net income attributable to Manning & Napier, Inc. | 8,109 | 428 | 699 | 81 | 738 | [2] | 1,314 | 260 | 344 | 9,317 | 2,656 | 2,469 | |||||||
Net income available to Class A common stock per share - diluted | $0.58 | $0.03 | $0.05 | $0.01 | $0.05 | [2] | $0.10 | $0.02 | $0.03 | $0.67 | $0.19 | $0.18 | |||||||
Weighted average shares of Class A common stock - diluted (shares) | 13,956,626 | 13,930,020 | 13,820,309 | 13,751,690 | 13,729,738 | [2] | 13,690,641 | 13,718,182 | 13,583,873 | ||||||||||
Cash dividends declared per share of Class A common stock (dollars per share) | $0.24 | $0.16 | $0.16 | $0.16 | $0.24 | $0.16 | $0.16 | $0.16 | |||||||||||
Non-cash equity-based compensation charges | ($27,500) | $20,800 | $23,300 | $21,900 | $18,600 | $18,200 | $22,800 | $21,700 | $41,534 | $82,920 | $72,274 | ||||||||
[1] | Operating income and net income attributable to the controlling and noncontrolling interests for the first, second, third and fourth quarters of 2014 included $21.9 million, $23.3 million, $20.8 million and a credit of $27.5 million, respectively, of reorganization-related share-based compensation charges | ||||||||||||||||||
[2] | Operating income and net income attributable to the controlling and noncontrolling interests for the first, second, third and fourth quarters of 2013 included $21.7 million, $22.8 million, $18.2 million and $18.6 million, respectively, of reorganization-related share-based compensation charges. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 06, 2015 | Mar. 16, 2015 |
Subsequent Event [Line Items] | |||||||||||||
Amount approved for distribution to members of Manning & Napier Group | $120,241,000 | $120,852,000 | $108,059,000 | ||||||||||
Cash dividends declared per share of Class A common stock (dollars per share) | $0.24 | $0.16 | $0.16 | $0.16 | $0.24 | $0.16 | $0.16 | $0.16 | |||||
Class A common stock | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Cash dividends declared per share of Class A common stock (dollars per share) | $0.72 | $0.72 | $0.64 | ||||||||||
Subsequent Event | Class A common stock | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Payments to noncontrolling interests | 31,300,000 | ||||||||||||
Amount approved for distribution to members of Manning & Napier Group | 26,800,000 | ||||||||||||
Cash dividends declared per share of Class A common stock (dollars per share) | $0.16 | ||||||||||||
Restricted Stock [Member] | Subsequent Event | Class A Units | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Potential number shares authorized after redemption | 1.2 | ||||||||||||
Award vesting period | 6 years | ||||||||||||
Manning & Napier Group [Member] | Subsequent Event | Class A Units | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock repurchased and retired during the period (shares) | 2.5 | ||||||||||||
Stock repurchased and retired during the period | 1,400,000 |