Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 20, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MN | ||
Entity Registrant Name | Manning & Napier, Inc. | ||
Entity Central Index Key | 0001524223 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 15,684,573 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 45,955,125 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 59,586 | $ 78,262 |
Accounts receivable | 11,447 | 15,337 |
Investment securities | 91,190 | 70,404 |
Prepaid expenses and other assets | 5,221 | 4,870 |
Total current assets | 167,444 | 168,873 |
Property and equipment, net | 5,649 | 5,407 |
Net deferred tax assets, non-current | 20,795 | 23,298 |
Goodwill | 4,829 | 4,829 |
Other long-term assets | 3,842 | 2,773 |
Total assets | 202,559 | 205,180 |
Liabilities | ||
Accounts payable | 1,845 | 1,612 |
Accrued expenses and other liabilities | 25,126 | 32,347 |
Deferred revenue | 9,305 | 10,213 |
Total current liabilities | 36,276 | 44,172 |
Other long-term liabilities | 2,691 | 3,370 |
Amounts payable under tax receivable agreement, non-current | 17,349 | 19,278 |
Total liabilities | 56,316 | 66,820 |
Commitments and contingencies (Note 10) | ||
Shareholders’ equity | ||
Class A common stock, $0.01 par value; 300,000,000 shares authorized, 15,310,958 and 15,039,347 issued and outstanding at December 31, 2018 and December 31, 2017, respectively | 153 | 150 |
Additional paid-in capital | 198,604 | 198,641 |
Retained deficit | (38,865) | (38,424) |
Accumulated other comprehensive income | (77) | (86) |
Total shareholders’ equity | 159,815 | 160,281 |
Noncontrolling interests | (13,572) | (21,921) |
Total shareholders’ equity and noncontrolling interests | 146,243 | 138,360 |
Total liabilities, shareholders’ equity and noncontrolling interests | $ 202,559 | $ 205,180 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - Class A common stock - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 15,310,958 | 15,039,347 |
Common stock, shares outstanding | 15,310,958 | 15,039,347 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | ||
Revenues | $ 161,331 | $ 201,527 |
Expenses | ||
Compensation and related costs | 87,408 | 91,730 |
Distribution, servicing and custody expenses | 18,175 | 27,750 |
Other operating costs | 32,366 | 30,279 |
Total operating expenses | 137,949 | 149,759 |
Operating income | 23,382 | 51,768 |
Non-operating income (loss) | ||
Interest expense | (49) | (36) |
Interest and dividend income | 2,408 | 845 |
Change in liability under tax receivable agreement | 1,341 | 12,859 |
Net gains (losses) on investments | (1,450) | 2,441 |
Total non-operating income (loss) | 2,250 | 16,109 |
Income before provision for income taxes | 25,632 | 67,877 |
Provision for income taxes | 2,647 | 19,352 |
Net income attributable to controlling and noncontrolling interests | 22,985 | 48,525 |
Less: net income attributable to noncontrolling interests | 19,788 | 44,938 |
Net income attributable to Manning & Napier, Inc. | $ 3,197 | $ 3,587 |
Net income per share available to Class A common stock | ||
Basic (dollars per share) | $ 0.21 | $ 0.25 |
Earnings Per Share, Diluted | $ 0.21 | $ 0.25 |
Weighted average shares of Class A common stock outstanding | ||
Basic (in shares) | 14,623,198 | 14,164,037 |
Diluted (in shares) | 14,630,170 | 14,237,025 |
Separately managed accounts | ||
Revenues | ||
Revenues | $ 97,123 | $ 111,518 |
Mutual funds and collective investment trusts | ||
Revenues | ||
Revenues | 41,462 | 65,716 |
Distribution and shareholder servicing | ||
Revenues | ||
Revenues | 12,089 | 13,301 |
Custodial services | ||
Revenues | ||
Revenues | 7,591 | 8,162 |
Other revenue | ||
Revenues | ||
Revenues | $ 3,066 | $ 2,830 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income attributable to controlling and noncontrolling interests | $ 22,985 | $ 48,525 |
Net unrealized holding gains (losses) on investment securities, net of tax | 51 | (73) |
Reclassification adjustment for realized (gains) losses on investment securities included in net income | 42 | 0 |
Comprehensive income | 23,078 | 48,452 |
Less: Comprehensive income attributable to noncontrolling interest | 19,872 | 44,865 |
Comprehensive income attributable to Manning & Napier, Inc. | $ 3,206 | $ 3,587 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders Equity - USD ($) $ in Thousands | Total | Additional Paid-In Capital | Retained Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Class A common stockCommon Stock | Class B common stockCommon Stock |
Balance at Dec. 31, 2016 | $ 134,478 | $ 200,158 | $ (37,383) | $ (13) | $ (28,434) | $ 150 | $ 0 |
Balance, Shares at Dec. 31, 2016 | 14,982,880 | 1,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to controlling and noncontrolling interests | 48,525 | 3,587 | 44,938 | ||||
Distributions to noncontrolling interests | (32,173) | (32,173) | |||||
Net changes in unrealized investment securities gains or losses | (73) | (73) | |||||
Common stock issued under equity compensation plan, shares | 56,467 | ||||||
Common stock issued under equity compensation plan, net of forfeitures | 0 | 0 | $ 0 | ||||
Cancellation of Class B common stock, Shares | (1,000) | ||||||
Equity-based compensation | 2,305 | 408 | 1,897 | ||||
Dividends declared on Class A common stock | (4,628) | (4,628) | |||||
Shares withheld to satisfy tax withholding requirements related to restricted stock units vested | (272) | (48) | (224) | ||||
Impact of changes in ownership of Manning & Napier Group, LLC (Note 4) | (9,802) | (1,877) | (7,925) | ||||
Balance at Dec. 31, 2017 | 138,360 | 198,641 | (38,424) | (86) | (21,921) | $ 150 | $ 0 |
Balance, Shares at Dec. 31, 2017 | 15,039,347 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of change in accounting principle, net of taxes (Note 3) | 1,490 | 266 | 1,224 | ||||
Net income attributable to controlling and noncontrolling interests | 22,985 | 3,197 | 19,788 | ||||
Distributions to noncontrolling interests | (13,089) | (13,089) | |||||
Net changes in unrealized investment securities gains or losses | 51 | 9 | 42 | ||||
Common stock issued under equity compensation plan, shares | 271,611 | ||||||
Common stock issued under equity compensation plan, net of forfeitures | 0 | (3) | $ 3 | ||||
Equity-based compensation | 2,268 | 413 | 1,855 | ||||
Dividends declared on Class A common stock | (3,904) | (3,904) | |||||
Impact of changes in ownership of Manning & Napier Group, LLC (Note 4) | (1,918) | (447) | (1,471) | ||||
Balance at Dec. 31, 2018 | $ 146,243 | $ 198,604 | $ (38,865) | $ (77) | $ (13,572) | $ 153 | $ 0 |
Balance, Shares at Dec. 31, 2018 | 15,310,958 | 0 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Class A common stock | ||
Cash dividends declared per share of Class A common stock (dollars per share) | $ 0.26 | $ 0.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net income attributable to controlling and noncontrolling interests | $ 22,985 | $ 48,525 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity-based compensation | 2,268 | 2,305 |
Depreciation and amortization | 1,719 | 1,763 |
Change in amounts payable under tax receivable agreement | (1,341) | (12,859) |
Gain on sale of intangible assets | (2,626) | (1,043) |
Net (gains) losses on investment securities | 1,450 | (2,441) |
Deferred income taxes | 2,431 | 18,612 |
(Increase) decrease in operating assets and increase (decrease) in operating liabilities: | ||
Accounts receivable | 3,890 | 6,538 |
Prepaid expenses and other assets | 79 | 13 |
Other long-term assets | 15 | 0 |
Accounts payable | 233 | (441) |
Accrued expenses and other liabilities | (6,582) | (3,924) |
Deferred revenue | (908) | 3 |
Other long-term liabilities | (775) | (630) |
Net cash provided by operating activities | 22,838 | 56,421 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (1,950) | (1,352) |
Sale of investments | 6,857 | 17,314 |
Purchase of investments | (90,160) | (87,380) |
Sale of intangible assets | 2,626 | 1,043 |
Acquisitions, net of cash received | 0 | 320 |
Proceeds from maturity of investments | 61,119 | 39,496 |
Net cash (used in) provided by investing activities | (21,508) | (30,559) |
Cash flows from financing activities: | ||
Distributions to noncontrolling interests | (13,089) | (32,173) |
Dividends paid on Class A common stock | (4,878) | (6,005) |
Payment of shares withheld to satisfy withholding requirements | 0 | (272) |
Payment of capital lease obligations | (121) | (167) |
Purchase of Class A units of Manning & Napier Group, LLC | (1,918) | (9,802) |
Net cash used in financing activities | (20,006) | (48,419) |
Net decrease in cash and cash equivalents | (18,676) | (22,557) |
Cash and cash equivalents: | ||
Beginning of period | 78,262 | 100,819 |
End of period | 59,586 | 78,262 |
Supplemental disclosures: | ||
Cash paid during the period for interest | 80 | 36 |
Cash payments during the period for taxes, net of refunds | (89) | 1,058 |
Non-cash investing and financing activities: | ||
Capital expenditures in accounts payable and accruals | 266 | 238 |
Equipment acquired through capital lease obligation | 34 | 94 |
Accrued dividends | $ 306 | $ 1,203 |
Organization and Nature of the
Organization and Nature of the Business | 12 Months Ended |
Dec. 31, 2018 | |
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 as well as a variety of consultative services that complement its investment process. Founded in 1970, the Company offers U.S. and non-U.S. equity, fixed income and a range of blended asset portfolios, such as life cycle funds and actively-managed exchange-traded fund ("ETF")-based portfolios. 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, platforms, 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, 2018 . _____________________ (1) The consolidated operating subsidiaries of Manning & Napier Group include Manning & Napier Advisors, LLC ("MNA"), Perspective Partners LLC, Manning & Napier Information Services, LLC, Manning & Napier Investor Services, Inc., Exeter Trust Company and Rainier Investment Management, LLC ("Rainier"). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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"). 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. Reclassifications The Company changed the presentation of revenue within its consolidated statements of operations for the twelve months ended December 31, 2018 . Revenue, previously reported as a single line item, has been disaggregated to present revenue by the various services the Company provides. Amounts for the comparative prior periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on previously reported net income or financial position and do not represent a restatement of any previously published financial results. For periods prior to and including December 31, 2017, the Company presented "Accounts receivable - affiliated mutual funds" on its consolidated statements of financial condition. Further disclosure regarding accounts receivable from affiliated mutual funds and the components of accounts receivable as of December 31, 2018 is included in "Accounts Receivable" in Note 3 of the notes to the consolidated financial statements. Amounts for the comparative prior fiscal year periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on previously reported net income and do not represent a restatement of any previously published financial results. Principles of Consolidation As of December 31, 2018 , Manning & Napier holds an economic interest of approximately 18.2% 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 Update ("ASU") 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis , 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”). When utilizing the voting interest entity (“VOE”) model, controlling financial interest is generally defined as majority ownership of voting interests. The Company provides seed capital to its investment teams to develop new products and services for its clients. The original seed investment may be held in a separately managed account, comprised solely of the Company's investments or within a mutual fund, where the Company's investments may represent all or only a portion of the total equity invested in the mutual fund. Pursuant to U.S. GAAP, the Company evaluates its investments in mutual funds on a regular basis and consolidates such mutual funds for which it holds a controlling financial interest. When no longer deemed to hold a controlling financial interest, the Company would deconsolidate the fund and classify the remaining investment as either an equity method investment or as trading securities, as applicable. The Company serves as the investment adviser for Manning & Napier Fund, Inc. series of mutual funds (the “Fund”), Exeter Trust Company Collective Investment Trusts (“CIT”) and Rainier Multiple Investment Trust. The Fund, CIT and Rainier Multiple Investment Trust 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 VOE. The Company holds, in limited cases, direct investments in a mutual fund (which are made on the same terms as are available to other investors) and consolidates each of these entities where it has a controlling financial interest or a majority voting interest. The Company's investments in the Fund amounted to approximately $3.6 million and $2.6 million at December 31, 2018 and 2017 , respectively. As of December 31, 2017 , the Company maintained significant influence in one mutual fund, Manning & Napier Fund, Inc. Quality Equity Series, but did not maintain a controlling financial interest in the mutual fund, which was accounted for as an equity method investment. During the first quarter of 2018, the Manning & Napier Fund, Inc. Quality Equity Series liquidated and closed. 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 Investment Management: Investment management fees are computed as a percentage of assets under management ("AUM"). The Company's performance obligation is a series of services that form part of a single performance obligation satisfied over time. Separately managed accounts are paid 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 as a contract liability and recognizes it over the applicable period. When investment management fees are paid in arrears, the Company estimates revenue and records a contract asset (accrued accounts receivable) based on AUM as of the most recent month end date. Mutual funds and collective investment trust investment management revenue is calculated and earned daily based on AUM. Revenue is presented net of cash rebates and fees waived pursuant to contractual expense limitations of the funds. The Company also has agreements with third parties who provide recordkeeping and administrative services for employee benefit plans participating in the collective investment trusts. The Company is acting as an agent on behalf of the employee benefit plan sponsors, therefore, investment management revenue is recorded net of fees paid to third party service providers. Contractual obligations whereby the Company made payments during the year ended December 31, 2017 of approximately $3.4 million to certain advisory clients with the intent of providing those clients a reduced fee are presented as a reduction to revenue, in accordance with ASC 605-50, Revenue Recognition . Distribution and shareholder servicing: The Company receives distribution and servicing fees for providing services to its affiliated mutual funds. Revenue is computed and earned daily based on a percentage of AUM. The performance obligation is a series of services that form part of a single performance obligation satisfied over time. The Company has agreements with third parties who provide distribution and administrative services for its mutual funds. The agreements are evaluated to determine whether revenue should be reported gross or net of payments to third-party service providers. The Company controls the services provided and acts as a principal in the relationship. Therefore, distribution and shareholder servicing revenue is recorded gross of fees paid to third parties. Custodial services: Custodial service fees are calculated as a percentage of the client’s market value with additional fees charged for certain transactions. For the safeguarding and administrative services that are subject to a percentage of market value fee, the Company's performance obligation is a series of services that form part of a single performance obligation satisfied over time. Revenue for transactions assigned a stand-alone selling price is recognized in the period which the transaction is executed. Custodial service fees are billed monthly in arrears. The Company has agreements with third parties who provide safeguarding, recordkeeping and administrative services for their clients. The Company controls the services provided and acts as a principal in the relationship. Therefore, custodial service revenue is recorded gross of fees paid to third parties. Costs to Obtain a Contract Incremental first year commissions directly associated with new separate account and collective investment trust contracts are capitalized and amortized on a straight-line basis over the estimated customer contract period of 7 years for separate accounts and 3 years for collective investment trust contracts. Refer to Note 3 for further discussion. Advisory Agreements The Company derives significant revenue from its role as advisor to affiliated mutual funds and collective investment trusts. Fees earned for advisory related services provided were approximately $54.6 million and $81.6 million for the years ended December 31, 2018 and 2017 , respectively, which represents greater than 10% of revenue in each period. Cash and Cash Equivalents The Company generally 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 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. Investment Securities Investment securities are classified as either trading, equity method investments 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 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. At December 31, 2018 and 2017 , trading securities consist of investments held by the Company for the purpose of providing initial cash seeding for product development purposes. In addition, at December 31, 2018, trading securities consist of investments to hedge economic exposure to market movements on its deferred compensation plan. Investments classified as equity method investments represent seed investments in which the Company owns between 20 - 50% of the outstanding voting interests in the affiliated fund or when it is determined that the Company is able to exercise significant influence but not control over the investments. If the seed investment results in significant influence, but not control, the investment will be accounted for as an equity method investment. When using the equity method, the Company recognizes its share of the investee's net income or loss for the period which is recorded in net gains (losses) on investments in the consolidated statements of operations. Investment securities classified as available-for-sale consist of U.S. Treasury notes, corporate bonds and other short-term investments. 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. Accounts Receivable Accounts receivable represents the Company's unconditional rights to consideration arising from its performance under separately managed account, mutual fund and collective investment trust, distribution and shareholder servicing and custodial contracts. 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, 2018 or 2017 . Accounts receivable are stated at cost, which approximates market value due to the short-term collection of balances. The fair value of accounts receivable have been classified as Level 1 in accordance with the fair value hierarchy. 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. Internal and external costs incurred in connection with developing or obtaining software for internal use are capitalized and amortized over the estimated useful lives of the software, which range from three to five years, beginning when the software project is complete and the application is put into production. 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. Goodwill Goodwill represents the excess cost over the fair value of the identifiable net assets of acquired companies. The Company attributes all goodwill to its single reporting unit. Goodwill is tested for impairment annually during the fourth quarter or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. There were no facts or circumstances occurring during 2018 or 2017 suggesting possible impairment. Intangible Assets Amortizing identifiable intangible assets generally represent the cost of client relationships and trademarks acquired. In valuing these assets, the Company makes assumptions regarding useful lives and projected growth rates, and significant judgment is required. The Company periodically reviews its identifiable intangible assets for impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amounts of those assets exceed their respective fair values, additional impairment tests are performed to measure the amount of the impairment losses, if any. Non-amortizing intangible assets generally represent the cost of mutual fund management contracts acquired. Non-amortizing intangible assets are tested for impairment in the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate that the carrying value may not be recoverable, by comparing the fair values of the management contracts acquired to their carrying values. The Company establishes fair value for purposes of impairment test using the income approach. If the carrying value of a management contract acquired exceeds its fair value, an impairment loss is recognized equal to that excess. 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 Company recognizes this cost over the period during which an employee is required to provide service in exchange for the award, and accounts for forfeitures as they occur. See Note 13 for additional information on equity-based compensation. Deferred Compensation The Company issues deferred cash awards to certain employees which are linked in value to selected Manning & Napier series of mutual funds under its 2018 Long-Term Incentive Plan. The employees earn a return linked to the appreciation or depreciation based on these series of mutual funds. The Company currently hedges economically the exposure to market movements on its deferred compensation plan by holding investments in the Manning & Napier series of mutual funds on its balance sheet. The Company recognizes as compensation expense the value of the liability to employees, including the appreciation or depreciation of the liability, over the award's vesting period in proportion to the vested amount of the award. The Company immediately recognizes the full value of the related investment, and any subsequent appreciation or depreciation of the investment, in Net gains (losses) on investments in the consolidated statements of operations. 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. 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, 2018 and 2017 . 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, 2018 and 2017 . Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The revenue standard contains principals to determine the measurement of revenue and timing of recognition and also impacts the accounting for incremental costs to obtain a contract. The Company adopted the new standard on its effective date of January 1, 2018. Refer to Note 3 for further discussion regarding the impact of adoption of this standard. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires all equity investments to be measured at fair value with changes in the fair value recognized through net income. The guidance is effective on January 1, 2018. The Company's adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments , to clarify guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. The FASB issued the ASU with the intent of reducing diversity in practice regarding eight types of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. The Company's adoption of ASU 2016-15 on January 1, 2018 did not have a material impact on its consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is intended to increase transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use asset (as defined). In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements , which provides an optional transition method related to implementing the new lease standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company plans to adopt the new standard on January 1, 2019, using the optional transition method. The Company is currently evaluating the impact of adoption on its consolidated financial statements. The Company expects that the adoption will result in an increase in total assets and total liabilities as of January 1, 2019 and is currently assessing the expected impact, if any, to its consolidated statements of operations. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. The ASU requires goodwill impairments to be measured on the basis of the fair value of the reporting unit relative to the reporting unit's carrying amount rather than on the basis of the implied amount of goodwill relative to the goodwill balance of the reporting unit. The ASU is effective for annual and interim impairment tests for periods beginning after December 15, 2019. Early adoption is allowed for annual and interim impairment tests occurring after January 1, 2017. The Company is evaluating the effect of adopting this new accounting standard. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU requires a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate as a result of the Tax Cuts and Jobs Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate. The ASU will be effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting standard. |
Revenue, Contract Assets and Co
Revenue, Contract Assets and Contract Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Contract Assets and Contract Liabilities | Revenue, Contract Assets and Contract Liabilities Adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) On January 1, 2018, the Company adopted Topic 606 using the modified retrospective approach with the cumulative effect of initial application recognized January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company's historic accounting policies under Topic 605. The Company elected the practical expedient to adjust for active contracts that existed at the date of adoption. A reduction to opening shareholders' equity and noncontrolling interests of $1.5 million , net of taxes, as of January 1, 2018 has been recorded due to the cumulative impact of adopting Topic 606 related to the capitalization of incremental contract costs. While there were no changes in the timing of revenue recognition, upon the adoption of Topic 606, the Company changed the presentation of certain revenue related costs on a gross versus net basis. The changes did not have a significant impact to total revenue, distribution, servicing and custody expenses and other operating costs, and had no impact on net income. Changes in the presentation of revenue related costs on a gross versus net basis are summarized below: • Fees in the amount $2.6 million for the year ended December 31, 2018 due to third parties who provide record-keeping and administrative services for employee benefit plans participating in the Company's collective investment trusts are presented net as a reduction of mutual fund and collective investment trust revenue. Prior to the adoption of Topic 606 third party record-keeper fees associated with the Company's collective investment trusts were reported as distribution, servicing and custody expense. • Fees in the amount of $2.2 million for the year ended December 31, 2018 due to a third party who provides accounting and administrative services on behalf of the Company to its affiliated mutual fund are presented as other operating costs. Prior to the adoption of Topic 606, these fees were presented as a reduction of other revenue. • Fees in the amount of $0.5 million for the year ended December 31, 2018 due to a third party who provides safeguarding and administrative services on behalf of the Company are presented as distribution, servicing and custody expense. Prior to the adoption of Topic 606, these fees were presented as a reduction of custodial service revenue. Disaggregated Revenue The following table represents the Company’s separately managed account and mutual fund and collective investment trust investment management revenue by investment portfolio during the year ended December 31, 2018 : Year ended December 31, 2018 Separately managed accounts Mutual funds and collective investment trusts Total (in thousands) Blended Asset $ 71,730 $ 25,421 $ 97,151 Equity 22,804 15,987 38,791 Fixed Income 2,589 54 2,643 Total $ 97,123 $ 41,462 $ 138,585 Accounts Receivable Accounts receivable as of December 31, 2018 and December 31, 2017 consisted of the following: December 31, 2018 December 31, 2017 (in thousands) Accounts receivable - third parties $ 5,342 $ 7,278 Accounts receivable - affiliated mutual funds and collective investment trusts 6,105 8,059 Total accounts receivable $ 11,447 $ 15,337 Accounts receivable : Accounts receivable represents the Company's unconditional rights to consideration arising from its performance under separately managed account, mutual fund and collective investment trust, distribution and shareholder servicing, and custodial service contracts. Accounts receivable balances do not include an allowance for doubtful accounts nor has any significant bad debt expense attributable to accounts receivable been recorded during the years ended December 31, 2018 or 2017 . Advisory and Distribution Agreements The Company earns investment advisory fees, distribution fees and administrative service fees under agreements with affiliated mutual funds and collective investment trusts. Fees earned for advisory and distribution services provided were approximately $54.6 million and $81.6 million during the years ended December 31, 2018 and 2017 , respectively, which represents greater than 10% of revenue in each period. The following provides amounts due from affiliated mutual funds and collective investment trusts reported within accounts receivable in the consolidated statement of financial condition as of December 31, 2018 and December 31, 2017 : December 31, 2018 December 31, 2017 (in thousands) Affiliated mutual funds (1) $ 4,802 $ 6,219 Affiliated collective investment trusts 1,303 1,840 Accounts receivable - affiliated mutual funds and collective investment trusts $ 6,105 $ 8,059 ________________________ (1) December 31, 2017 balance includes $0.7 million of distribution and servicing fees receivable, which in the prior fiscal period were reflected in "Accounts Receivable". This amount was reclassified to conform to the current period presentation (Note 2). Contract assets and liabilities Accrued accounts receivable : Accrued accounts receivable represents the Company's contract asset for revenue that has been recognized in advance of billing separately managed account contracts. Consideration for the period billed in arrears is dependent on the client’s AUM on a future billing date and therefore conditional as of the reporting period end. During the year ended December 31, 2018 , revenue was decreased by less than $0.1 million for changes in transaction price. Accrued accounts receivable of $0.2 million is reported within prepaid expenses and other assets in the consolidated statement of financial condition as of December 31, 2018 . Deferred revenue: Deferred revenue is recorded when consideration is received or unconditionally due in advance of providing services to the Company's customer. Revenue recognized during the year ended December 31, 2018 that was included in deferred revenue at the beginning of the period was approximately $9.9 million . Costs to obtain a contract: Incremental first year commissions directly associated with new separate account and collective investment trust contracts are capitalized and amortized straight-line over an estimated customer contract period of 7 years for separate accounts and 3 years for collective investment trust contracts. The total net asset as of December 31, 2018 was approximately $1.2 million . Amortization expense included in compensation and related costs totaled approximately $0.5 million during the year ended December 31, 2018 . An impairment loss of approximately $0.3 million was recognized during the year ended December 31, 2018 related to contract acquisition costs for client contracts that canceled during the period. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Manning & Napier holds an economic interest of approximately 18.2% 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 81.8% 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, 2018 2017 (in thousands) Income before provision for income taxes $ 25,632 $ 67,877 Less: income (loss) before provision for income taxes of Manning & Napier, Inc. (1) 1,272 12,847 Income before provision for income taxes, as adjusted 24,360 55,030 Controlling interest percentage (2) 18.2 % 17.7 % Net income attributable to controlling interest 4,432 9,750 Plus: income (loss) before provision for income taxes of Manning & Napier, Inc. (1) 1,272 12,847 Income before income taxes attributable to Manning & Napier, Inc. 5,704 22,597 Less: provision for income taxes of Manning & Napier, Inc. (3) 2,507 19,010 Net income attributable to Manning & Napier, Inc. $ 3,197 $ 3,587 __________________________ (1) Manning & Napier, Inc. incurs certain income 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 $2.6 million and $19.4 million for the years ended December 31, 2018 and 2017 , respectively. A total of 63,349,721 units of Manning & Napier Group are held by the noncontrolling interests as of December 31, 2018 . Pursuant to the terms of the exchange agreement entered into at the time of the Company's initial public offering, such units may be exchangeable for shares of the Company's Class A common stock. For any units 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 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. During the year ended December 31, 2018 , M&N Group Holdings and MNCC exchanged a total of 581,344 Class A units of Manning & Napier Group for approximately $1.9 million in cash. Subsequent to the exchange, the Class A units were retired. In addition, during the year ended December 31, 2018 , Class A common stock was issued under the 2011 Equity Compensation Plan (the "Equity Plan") for which Manning & Napier, Inc. acquired an equivalent number of Class A units of Manning & Napier Group, net of forfeitures of unvested restricted stock awards. The following provides a summary of the transactions that have impacted the Company's equity ownership interest in Manning & Napier Group during the years ended December 31, 2018 and 2017 : Manning & Napier Group Class A Units Held Manning & Napier Noncontrolling Interests Total Manning & Napier Ownership % As of January 1, 2017 13,826,575 65,784,571 79,611,146 17.4% Class A Units issued (1) 46,467 — 46,467 —% Class A Units exchanged — (1,853,506 ) (1,853,506 ) 0.4% As of December 31, 2017 13,873,042 63,931,065 77,804,107 17.8% Class A Units issued 253,694 — 253,694 0.3% Class A Units exchanged — (581,344 ) (581,344 ) 0.1% As of December 31, 2018 14,126,736 63,349,721 77,476,457 18.2% _____________________ (1) The impact of the transaction of Manning & Napier's ownership was less than 0.1% . Since the Company continues to have a controlling interest in Manning & Napier Group, the aforementioned changes in ownership of Manning & Napier Group were accounted for as equity transactions under ASC 810, Consolidation. Additional paid-in capital and noncontrolling interests in the Consolidated Statements of Financial Position are adjusted to reallocate the Company's historical equity to reflect the change in ownership of Manning & Napier Group. During the years ended December 31, 2018 and 2017 , the Company made approximately $13.1 million and $32.2 million , respectively, in distributions to noncontrolling interests. None of these distributions were payments pursuant to the tax receivable agreement (Note 14). |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investment Securities | Investment Securities The following table represents the Company’s investment securities holdings at December 31, 2018 and December 31, 2017 : December 31, 2018 Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Available-for-sale securities Fixed income securities $ 15,488 $ — $ (75 ) $ 15,413 U.S. Treasury notes 21,613 36 — 21,649 Short-term investments 45,879 — — 45,879 82,941 Trading securities Equity securities 4,683 Mutual funds 3,566 8,249 Total investment securities $ 91,190 December 31, 2017 Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Available-for-sale securities Fixed income securities $ 19,589 $ — $ (29 ) $ 19,560 U.S. Treasury notes 22,428 — (42 ) 22,386 Short-term investments 22,323 — — 22,323 64,269 Trading securities Equity securities 3,548 Mutual funds 1,409 4,957 Equity method investments Mutual funds 1,178 Total investment securities $ 70,404 Investment securities are classified as either trading, equity method investments 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 for which the Company provides advisory services. At December 31, 2018 and 2017 , trading securities consist of investments held by the Company to provide initial cash seeding for product development purposes. In addition, at December 31, 2018, trading securities consist of investments to hedge economic exposure to market movements on its deferred compensation plan. The Company recognized approximately $1.5 million of net unrealized losses and $1.8 million of net unrealized gains related to investments classified as trading securities for the years ended December 31, 2018 and 2017 , respectively. Investments classified as equity method investments represent seed investments in which the Company owns between 20% - 50% of the outstanding voting interests in the affiliated fund or when it is determined that the Company is able to exercise significant influence but not control over the investments. Investment securities classified as available-for-sale consist of U.S. Treasury notes, corporate bonds and other short-term investments to optimize cash management opportunities and for compliance with certain regulatory requirements. As of December 31, 2018 and 2017 , approximately $0.6 million of the U.S. Treasury notes is considered restricted. 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, 2018 or 2017 . The table below presents realized gains and losses on the sale of all securities for the years ended December 31, 2018 and 2017 : Year ended December 31, 2018 2017 (in thousands) Gross realized investment gains $ 401 $ 1,670 Gross realized investment losses (347 ) (1,069 ) Net realized gains (losses) $ 54 $ 601 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 : December 31, 2018 Level 1 Level 2 Level 3 Totals (in thousands) Equity securities $ 4,683 $ — $ — $ 4,683 Fixed income securities — 15,413 — 15,413 Mutual funds 3,566 — — 3,566 U.S. Treasury notes — 21,649 — 21,649 Short-term investments 43,914 1,965 — 45,879 Total assets at fair value $ 52,163 $ 39,027 $ — $ 91,190 Contingent consideration liability $ — $ — $ — $ — Total liabilities at fair value $ — $ — $ — $ — December 31, 2017 Level 1 Level 2 Level 3 Totals (in thousands) Equity securities $ 3,548 $ — $ — $ 3,548 Fixed income securities — 19,560 — 19,560 Mutual funds 2,587 — — 2,587 U.S. Treasury notes — 22,386 — 22,386 Short-term investments 22,323 — — 22,323 Total assets at fair value $ 28,458 $ 41,946 $ — $ 70,404 Contingent consideration liability $ — $ — $ — $ — Total liabilities at fair value $ — $ — $ — $ — Short-term investments consists of certificate of deposits ("CDs") that are stated at cost, which approximate fair value due to the short maturity of the investments and U.S. Treasury bills. Valuations of investments in fixed income securities and U.S. Treasury notes and bills 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. Contingent consideration was a component of the Company's purchase price of Rainier in 2016 of additional cash payments of up to $32.5 million over the period ending December 31, 2019, contingent upon Rainier’s achievement of certain financial targets. The fair value of the contingent consideration is calculated on a quarterly basis by forecasting Rainier’s adjusted earnings before interest, taxes and amortization ("EBITA") over the contingency period. There were no changes in contingent consideration liability measured at fair value using significant unobservable inputs (Level 3) for the twelve months ended December 31, 2018 . 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 Levels during the year ended December 31, 2018 or 2017 . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment as of December 31, 2018 and 2017 consisted of the following: December 31, 2018 2017 (in thousands) Furniture and fixtures $ 2,506 $ 2,519 Office equipment 4,146 4,841 Computer software 4,855 3,816 Leasehold improvements 5,469 5,607 16,976 16,783 Less: Accumulated depreciation (11,327 ) (11,376 ) Property and equipment, net $ 5,649 $ 5,407 Depreciation expense is included in other operating costs and totaled approximately $1.7 million for both years ended December 31, 2018 and 2017 . The Company has evaluated its property and equipment for impairment under the current accounting standards and has concluded that no impairment loss has occurred as of December 31, 2018 and 2017 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The carrying amount of goodwill was $4.8 million at both December 31, 2018 and 2017, and there was no accumulated impairment. There were no changes in the carrying value of goodwill during the years ended December 31, 2018 and 2017. The Company completed its goodwill impairment testing in the fourth quarter of 2018 and determined that there were no facts and circumstances occurring during 2018 suggesting possible impairment. No impairment of goodwill was recognized during the years ended December 31, 2018 and 2017 . Intangible Assets The following table reflects the components of intangible assets as of December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Intangible assets subject to amortization: Cost - Separately managed account client relationships $ 897 $ 897 Accumulated amortization - Separately managed account client relationships (897 ) (897 ) Cost - Trademark 340 340 Accumulated amortization - Trademark (190 ) (145 ) Intangible assets subject to amortization, net 150 195 Indefinite-lived intangible assets: Cost - Mutual fund and collective trust contracts 2,578 2,578 Mutual fund and collective trust contracts 2,578 2,578 Total intangible assets, net $ 2,728 $ 2,773 There were no facts or circumstances occurring during the years ended December 31, 2018 or 2017 suggesting possible impairment. Amortization expense was less than $0.1 million for both the years ended December 31, 2018 and 2017 . As of December 31, 2018 , intangible assets subject to amortization are being amortized over a weighted-average remaining life of 1.7 years . The estimated amortization expense to be recognized over the next 5 years is as follows: Year Ending December 31, Estimated Amortization Expense (in thousands) 2019 $ 45 2020 45 2021 45 2022 15 2023 — Thereafter — Total $ 150 During 2017, the Company entered into an agreement to sell certain Rainier U.S. mutual funds to a third party, with the selling price based on total assets under management on the respective transaction closing dates. During the fourth quarter of 2017, the Company sold two mutual funds for approximately $1.0 million and sold the remaining fund during the first quarter of 2018 for approximately $2.1 million . The carrying value of the intangible assets for client relationships associated with these products was zero due to an impairment loss recognized during a prior period. The Company recognized a gain of approximately $2.1 million and $1.0 million during the years ended December 31, 2018 and 2017, respectively, for the sale of these funds, as included in other operating costs in the consolidated statements of operations. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 consisted of the following: December 31, 2018 2017 (in thousands) Accrued bonuses and sales commissions $ 16,121 $ 19,153 Accrued payroll and benefits 4,087 3,877 Accrued sub-transfer agent fees 1,451 2,445 Dividends payable on Class A common stock 306 1,203 Amounts payable under tax receivable agreement 674 2,549 Other accruals and liabilities 2,487 3,120 $ 25,126 $ 32,347 During the year ended December 31, 2018 , the Company commenced a voluntary employee retirement offering (the "offering"), available to employees meeting certain age and length-of-service requirements as well as business function criteria. Employees electing to participate in the offering were subject to approval by the Company, and received enhanced separation benefits. These employees are required to render service until their agreed upon termination date (which varies from person to person) in order to receive the benefits and as such, the liability will be recognized ratably over the applicable service period. The Company estimates the total employee severance costs under the offering to be approximately $2.6 million , of which approximately $2.2 million was recognized during the year ended December 31, 2018 . Also during the year ended December 31, 2018 , the Company recognized approximately $1.5 million of severance costs as a result of involuntary workforce reductions. Employee severance costs recognized are included in compensation and related costs in the consolidated statements of operations. The following table summarizes the changes in accrued employee severance costs recognized by the Company for the year ended December 31, 2018 , as included in accrued expenses and other liabilities in the consolidated statements of financial condition: Twelve months ended December 31, 2018 (in thousands) Accrued employee severance costs as of December 31, 2017 $ 659 Employee severance costs recognized 3,694 Payment of employee severance costs (2,711 ) Accrued employee severance costs as of December 31, 2018 $ 1,642 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company may from time to time 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. Regulation As an investment adviser to a variety of investment products, the Company and its affiliated broker-dealer are subject to routine reviews and inspections by the SEC and the Financial Industry Regulatory Authority, Inc.. Additionally, the Company could be subject to non-routine reviews and inspections by the National Futures Association and U.S. Commodity Futures Trading Commission in regards to the Company’s deminimis exposure to commodity interest investments in the mutual funds and collective investment trust vehicles it operates. 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. As of December 31, 2018 and 2017 , 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. The Company also rents additional office space in various other locations throughout the United States. Total rental expense for all leases amounted to approximately $3.7 million and $4.2 million for the years ended December 31, 2018 and 2017 , respectively. As of December 31, 2018 , minimum rent payments relating to the office leases for years subsequent to 2018 , are as follows: Year Ending December 31, Minimum Payments (in thousands) 2019 $ 3,748 2020 3,780 2021 3,712 2022 3,668 2023 3,369 Thereafter 13,397 $ 31,674 Certain of the Company's operating leases have been subleased for which the Company will receive amounts totaling approximately $0.5 million over the term of such leases. As of December 31, 2018 , the Company's contractual obligation for its primary office facilities was $26.1 million , or $2.9 million annually, under an operating lease expiring on January 31, 2028. At both December 31, 2018 and 2017 , the Company had approximately $0.2 million and $0.3 million of total capital lease obligations, respectively. |
Shareholders' Equity and Capita
Shareholders' Equity and Capital Structure | 12 Months Ended |
Dec. 31, 2018 | |
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 Pursuant to the Company's Amended and Restated Certificate of Incorporation the Company's Class B common stock entitles the holder thereof to a majority of the vote on all matters submitted to a vote of stockholders. The Company's Class B common stock does not entitle the holder thereof to 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. On November 17, 2017, all outstanding shares of the Company’s Class B common stock were cancelled and reverted to the status of authorized but unissued shares of Class B common stock. The 1,000 shares of Class B common stock represented non-economic interests in the Company, were issued in connection with the Company's initial public offering on November 17, 2011, and were held by William Manning, the Company's Chairman of the Board. 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. Shares Eligible for Future Sale The Company is party to 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 of December 31, 2018 , a total of 63,349,721 Class A units of Manning & Napier Group are held by the noncontrolling interests. Pursuant to the terms of the exchange agreement entered into at the time of the Company's initial public offering, subject to certain restrictions, these units may be exchangeable on an annual basis for shares of the Company’s Class A common stock. As of December 31, 2018 , approximately 62.2 million Class A units of Manning & Napier Group are eligible for exchange, of which approximately 60.0 million are held by William Manning. In the event that William Manning maximizes his participation, certain restrictions are removed such that the total amount eligible would increase to approximately 63.3 million to allow for other owners to participate in a similar proportion. 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, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share (“basic EPS”) is computed using the two-class method to determine net income available to Class A common stock. The two-class method includes an earnings allocation formula that determines earnings per share for each participating security according to dividends declared and undistributed earnings for the period. The Company's restricted Class A common shares granted under the 2011 Equity Compensation Plan (the "Equity Plan") have non-forfeitable dividend rights during their vesting period and are therefore considered participating securities under the two-class method. Under the two-class method, the Company's net income available to Class A common stock is reduced by the earnings allocated to the unvested restricted Class A common stock. Basic EPS is calculated by dividing net income available to Class A common stock by the weighted average number of common shares outstanding during the period. Diluted earnings per share (“diluted EPS”) is computed under the more dilutive of either the treasury method or the two-class method. For the diluted calculation, the weighted average number of common shares outstanding during the period is increased by the assumed conversion into Class A common stock of the unvested equity awards and the exchangeable units of Manning & Napier Group, to the extent that such conversion would dilute 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, 2018 and 2017 under the two-class method: Year Ended December 31, 2018 2017 (in thousands, except share data) Net income attributable to controlling and noncontrolling interests $ 22,985 $ 48,525 Less: net income attributable to noncontrolling interests 19,788 44,938 Net income attributable to Manning & Napier, Inc. $ 3,197 $ 3,587 Less: allocation to participating securities 67 70 Net income available to Class A common stock $ 3,130 $ 3,517 Weighted average shares of Class A common stock outstanding - basic 14,623,198 14,164,037 Dilutive effect from unvested equity awards 6,972 72,988 Weighted average shares of Class A common stock outstanding - diluted 14,630,170 14,237,025 Net income available to Class A common stock per share - basic $ 0.21 $ 0.25 Net income available to Class A common stock per share - diluted $ 0.21 $ 0.25 For the years ended December 31, 2018 and 2017 , there were unvested equity awards of 1,602,337 and 790,000 respectively, excluded from the calculation of diluted earnings per common share because the effect would have been anti-dilutive. At December 31, 2018 and 2017 there were 63,349,721 and 63,931,065 , respectively, Class A units of Manning & Napier Group which for each period, subject to certain restrictions, may be exchangeable for up to an equivalent number of the Company’s Class A common shares. These units were not included in the calculation of diluted earnings per common share for the respective periods because the effect would have been anti-dilutive. |
Equity Based Compensation
Equity Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Equity Based Compensation | Equity Based Compensation 2011 Equity Compensation Plan The Equity 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. During the year ended December 31, 2018 , 1,309,325 equity awards were granted under the Equity Plan. The following table summarizes equity award activity for the year ended December 31, 2018 under the Company's Equity Plan: Restricted Stock Awards Weighted Average Grant Date Fair Value Stock awards outstanding at January 1, 2018 852,123 $ 12.09 Granted 1,309,325 $ 2.07 Vested (514,111 ) $ 7.70 Forfeited (45,000 ) $ 12.20 Stock awards outstanding at December 31, 2018 1,602,337 $ 5.31 The weighted average fair value of Equity Plan awards granted during the years ended December 31, 2018 and 2017 was $2.07 and $5.55 , 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, when applicable, reduced by the present value of the dividends expected to be paid on the underlying shares during the requisite service period. Restricted stock unit awards are not entitled to dividends declared on the underlying shares of Class A common stock until the awards vest. For each of the years ended December 31, 2018 and 2017 , the Company recorded approximately $2.3 million of compensation expense related to awards under the Equity Plan. The aggregate intrinsic value of awards that vested during the years ended December 31, 2018 and 2017 was approximately $1.7 million and $1.2 million , respectively. As of December 31, 2018 , there was unrecognized compensation expense related to 2011 Plan awards of approximately $5.2 million , which the Company expects to recognize over a weighted average period of approximately 2.5 years . During the year ended December 31, 2017 the Company withheld a total of 69,597 restricted shares as a result of net share settlements to satisfy employee tax withholding obligations. The Company paid approximately $0.3 million in employee tax withholding obligations related to these settlements during the year ended December 31, 2017 . These net share settlements had the effect of shares repurchased and retired by the Company, as they reduced the number of shares outstanding. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
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 LLCs 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. During 2018, the Company completed its accounting for the tax effects of the enactment of U.S. tax reform which was signed into law on December 22, 2017. As of December 31, 2017, the Company made a reasonable estimate of the tax effect of the enactment and recognized provisional tax impacts related to the revaluation of the Company's net deferred tax assets of approximately $16.5 million . As a result, the Company decreased its deferred tax asset related to the tax receivable agreement ("TRA"), resulting in a $12.9 million reduction of the liability, representing 85% of the applicable cash savings. The Company recognized no changes to the 2017 estimated provisional tax impact upon completion of its accounting in 2018. Components of the provision for income taxes consist of the following: Year Ended December 31, 2018 2017 (in thousands) Current Federal $ 69 $ 556 State and local 147 184 Current tax expense 216 740 Deferred Federal 1,339 16,137 State and local 1,092 2,475 Deferred tax expense 2,431 18,612 Provision for income tax expense $ 2,647 $ 19,352 The differences between income taxes computed using the U.S. federal income tax rate of 21% for the year ended December 31, 2018 and 34% for the year ended December 31, 2017 , and the provision for income taxes for continuing operations are as follows: Year Ended December 31, 2018 2017 (in thousands) Amount computed using the statutory rate $ 5,383 $ 23,078 Increase (reduction) in taxes resulting from: State and local taxes, including settlements and adjustments, net of federal benefit 193 408 Impact of enacted tax law changes — 16,512 Net change in state deferred tax rate 1,316 — Net adjustment to amounts payable under TRA (281 ) (4,372 ) Benefit from the flow-through entities (4,067 ) (15,163 ) Other, net 103 (1,111 ) Provision for income taxes $ 2,647 $ 19,352 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. For the year ended December 31, 2018, this favorable impact was partially offset by the $1.3 million provision recognized for the reduction in the Company's effective tax rate. For the year ended December 31, 2017, the Company recognized a $16.5 million provision for the reduction in its effective tax rate resulting from the enactment of U.S. tax reform. 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 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. 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, 2018 and 2017 , the Company had recorded a total liability of approximately $18.0 million and $21.8 million , respectively, representing the payments due to the selling unit holders under the TRA. Of these amounts, approximately $0.7 million and $2.5 million were included in accrued expenses and other liabilities at December 31, 2018 and 2017 , respectively. Payments are anticipated to be made annually commencing from the date of each event that gives rise to the TRA benefits. 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 made payments pursuant to the TRA of approximately $2.5 million and $2.4 million during the years ended December 31, 2018 and 2017 , respectively. Components of net deferred tax assets consist of the following: December 31, 2018 2017 (in thousands) Deferred tax assets Tax receivable agreement $ 19,399 $ 22,680 Bonus and commissions 408 641 Net operating loss carryforwards 1,229 — Other 190 197 Total deferred tax assets 21,226 23,518 Deferred tax liabilities Depreciation and amortization 366 131 Prepaid items 65 89 Total deferred tax liabilities 431 220 Net deferred tax assets $ 20,795 $ 23,298 As of December 31, 2018 , the Company had approximately $5.0 million net operating losses available to offset future taxable income for federal income tax purposes that may be carried forward indefinitely and approximately $2.5 million for state income tax purposes that will expire through 2038 if not utilized. 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, 2018 and 2017 . Accounting for Uncertainty in Income Taxes A reconciliation of the beginning and ending amount of the Company's liability for income taxes associated with unrecognized tax benefits is as follows: December 31, 2018 2017 (in thousands) Balance as of January 1, $ 33 $ 135 Increase related to current year tax positions — 27 Decrease related to prior year tax positions — (129 ) Balance as of December 31, $ 33 $ 33 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 penalties in the consolidated statements of operations for the years ended December 31, 2018 and 2017 . 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. 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 2015 through 2017 remain subject to examination by the respective tax authorities. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
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 and funds of affiliated entities of certain of the Company's executive officers and directors. Pursuant to the respective investment management agreements, in some instances the Company waives or reduces its regular advisory fees for these accounts. The aggregate value of the fees earned was approximately $0.1 million and $0.2 million in the years ended December 31, 2018 and 2017 , respectively. The aggregate value of fees waived was less than $0.1 million and approximately $0.1 million in 2018 and 2017 , respectively. Affiliated fund transactions The Company earns investment advisory fees and administrative service fees under agreements with affiliated mutual funds and collective investment trusts. The aggregate value of revenue earned was $54.6 million and $81.6 million in the years ended December 31, 2018 and 2017 , respectively. Fees earned for administrative services provided were approximately $2.2 million for the year ended December 31, 2018 . See Note 3 for disclosure of amounts due from affiliated mutual funds and collective investment trusts. The Company incurs certain expenses on behalf of the collective investment trusts and has contractually agreed to limit its fees and reimburse expenses to limit operating expenses incurred by certain affiliated fund series. The aggregate value of fees waived and expenses reimbursed to, or incurred for, affiliated mutual funds and collective investment trusts was approximately $5.1 million and $6.5 million for the years ended December 31, 2018 and 2017 , respectively. As of December 31, 2018 , the Company has recorded a receivable of approximately $0.2 million for expenses paid on behalf of an affiliated mutual fund. These expenses are reimbursable to the Company under an agreement with the affiliated mutual fund, and are included within other long-term assets on the consolidated statements of financial condition. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [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 for both years ended December 31, 2018 and 2017 . 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 approximately $0.5 million and $1.0 million for the years ended December 31, 2018 and 2017 , respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distribution and Dividend On March 5, 2019 , 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 will be based on earnings for the quarter ended March 31, 2019, with a maximum amount of $2.0 million . Concurrently, the Board of Directors declared a $0.02 per share dividend to the holders of Class A common stock. The dividend is payable on May 1, 2019 to shareholders of record as of April 15, 2019 . Exchange of Class A units of Manning & Napier Group The Company is nearing the completion of the 2019 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 has the ability to 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. Approximately 1.3 million of eligible Class A units of Manning & Napier Group will be tendered for exchange. The Company anticipates the exchange will be finalized during the second quarter of 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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"). 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. Reclassifications The Company changed the presentation of revenue within its consolidated statements of operations for the twelve months ended December 31, 2018 . Revenue, previously reported as a single line item, has been disaggregated to present revenue by the various services the Company provides. Amounts for the comparative prior periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on previously reported net income or financial position and do not represent a restatement of any previously published financial results. For periods prior to and including December 31, 2017, the Company presented "Accounts receivable - affiliated mutual funds" on its consolidated statements of financial condition. Further disclosure regarding accounts receivable from affiliated mutual funds and the components of accounts receivable as of December 31, 2018 is included in "Accounts Receivable" in Note 3 of the notes to the consolidated financial statements. Amounts for the comparative prior fiscal year periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on previously reported net income and do not represent a restatement of any previously published financial results. |
Principles of Consolidation | Principles of Consolidation As of December 31, 2018 , Manning & Napier holds an economic interest of approximately 18.2% 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 Update ("ASU") 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis , 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”). When utilizing the voting interest entity (“VOE”) model, controlling financial interest is generally defined as majority ownership of voting interests. The Company provides seed capital to its investment teams to develop new products and services for its clients. The original seed investment may be held in a separately managed account, comprised solely of the Company's investments or within a mutual fund, where the Company's investments may represent all or only a portion of the total equity invested in the mutual fund. Pursuant to U.S. GAAP, the Company evaluates its investments in mutual funds on a regular basis and consolidates such mutual funds for which it holds a controlling financial interest. When no longer deemed to hold a controlling financial interest, the Company would deconsolidate the fund and classify the remaining investment as either an equity method investment or as trading securities, as applicable. The Company serves as the investment adviser for Manning & Napier Fund, Inc. series of mutual funds (the “Fund”), Exeter Trust Company Collective Investment Trusts (“CIT”) and Rainier Multiple Investment Trust. The Fund, CIT and Rainier Multiple Investment Trust 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 VOE. The Company holds, in limited cases, direct investments in a mutual fund (which are made on the same terms as are available to other investors) and consolidates each of these entities where it has a controlling financial interest or a majority voting interest. The Company's investments in the Fund amounted to approximately $3.6 million and $2.6 million at December 31, 2018 and 2017 , respectively. As of December 31, 2017 , the Company maintained significant influence in one mutual fund, Manning & Napier Fund, Inc. Quality Equity Series, but did not maintain a controlling financial interest in the mutual fund, which was accounted for as an equity method investment. During the first quarter of 2018, the Manning & Napier Fund, Inc. Quality Equity Series liquidated and closed. |
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 Investment Management: Investment management fees are computed as a percentage of assets under management ("AUM"). The Company's performance obligation is a series of services that form part of a single performance obligation satisfied over time. Separately managed accounts are paid 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 as a contract liability and recognizes it over the applicable period. When investment management fees are paid in arrears, the Company estimates revenue and records a contract asset (accrued accounts receivable) based on AUM as of the most recent month end date. Mutual funds and collective investment trust investment management revenue is calculated and earned daily based on AUM. Revenue is presented net of cash rebates and fees waived pursuant to contractual expense limitations of the funds. The Company also has agreements with third parties who provide recordkeeping and administrative services for employee benefit plans participating in the collective investment trusts. The Company is acting as an agent on behalf of the employee benefit plan sponsors, therefore, investment management revenue is recorded net of fees paid to third party service providers. Contractual obligations whereby the Company made payments during the year ended December 31, 2017 of approximately $3.4 million to certain advisory clients with the intent of providing those clients a reduced fee are presented as a reduction to revenue, in accordance with ASC 605-50, Revenue Recognition . Distribution and shareholder servicing: The Company receives distribution and servicing fees for providing services to its affiliated mutual funds. Revenue is computed and earned daily based on a percentage of AUM. The performance obligation is a series of services that form part of a single performance obligation satisfied over time. The Company has agreements with third parties who provide distribution and administrative services for its mutual funds. The agreements are evaluated to determine whether revenue should be reported gross or net of payments to third-party service providers. The Company controls the services provided and acts as a principal in the relationship. Therefore, distribution and shareholder servicing revenue is recorded gross of fees paid to third parties. Custodial services: Custodial service fees are calculated as a percentage of the client’s market value with additional fees charged for certain transactions. For the safeguarding and administrative services that are subject to a percentage of market value fee, the Company's performance obligation is a series of services that form part of a single performance obligation satisfied over time. Revenue for transactions assigned a stand-alone selling price is recognized in the period which the transaction is executed. Custodial service fees are billed monthly in arrears. The Company has agreements with third parties who provide safeguarding, recordkeeping and administrative services for their clients. The Company controls the services provided and acts as a principal in the relationship. Therefore, custodial service revenue is recorded gross of fees paid to third parties. Costs to Obtain a Contract Incremental first year commissions directly associated with new separate account and collective investment trust contracts are capitalized and amortized on a straight-line basis over the estimated customer contract period of 7 years for separate accounts and 3 years for collective investment trust contracts. Refer to Note 3 for further discussion. |
Advisory Agreements | Advisory Agreements The Company derives significant revenue from its role as advisor to affiliated mutual funds and collective investment trusts. Fees earned for advisory related services provided were approximately $54.6 million and $81.6 million for the years ended December 31, 2018 and 2017 , respectively, which represents greater than 10% of revenue in each period. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company generally 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 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. |
Investment Securities | Investment Securities Investment securities are classified as either trading, equity method investments 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 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. At December 31, 2018 and 2017 , trading securities consist of investments held by the Company for the purpose of providing initial cash seeding for product development purposes. In addition, at December 31, 2018, trading securities consist of investments to hedge economic exposure to market movements on its deferred compensation plan. Investments classified as equity method investments represent seed investments in which the Company owns between 20 - 50% of the outstanding voting interests in the affiliated fund or when it is determined that the Company is able to exercise significant influence but not control over the investments. If the seed investment results in significant influence, but not control, the investment will be accounted for as an equity method investment. When using the equity method, the Company recognizes its share of the investee's net income or loss for the period which is recorded in net gains (losses) on investments in the consolidated statements of operations. Investment securities classified as available-for-sale consist of U.S. Treasury notes, corporate bonds and other short-term investments. 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. |
Accounts Receivable | Accounts Receivable Accounts receivable represents the Company's unconditional rights to consideration arising from its performance under separately managed account, mutual fund and collective investment trust, distribution and shareholder servicing and custodial contracts. 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, 2018 or 2017 . Accounts receivable are stated at cost, which approximates market value due to the short-term collection of balances. The fair value of accounts receivable have been classified as Level 1 in accordance with the fair value hierarchy. |
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. Internal and external costs incurred in connection with developing or obtaining software for internal use are capitalized and amortized over the estimated useful lives of the software, which range from three to five years, beginning when the software project is complete and the application is put into production. 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. |
Goodwill | Goodwill Goodwill represents the excess cost over the fair value of the identifiable net assets of acquired companies. The Company attributes all goodwill to its single reporting unit. Goodwill is tested for impairment annually during the fourth quarter or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. There were no facts or circumstances occurring during 2018 or 2017 suggesting possible impairment |
Intangible Assets | Intangible Assets Amortizing identifiable intangible assets generally represent the cost of client relationships and trademarks acquired. In valuing these assets, the Company makes assumptions regarding useful lives and projected growth rates, and significant judgment is required. The Company periodically reviews its identifiable intangible assets for impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amounts of those assets exceed their respective fair values, additional impairment tests are performed to measure the amount of the impairment losses, if any. Non-amortizing intangible assets generally represent the cost of mutual fund management contracts acquired. Non-amortizing intangible assets are tested for impairment in the fourth quarter of each fiscal year, or more frequently if events or circumstances indicate that the carrying value may not be recoverable, by comparing the fair values of the management contracts acquired to their carrying values. The Company establishes fair value for purposes of impairment test using the income approach. If the carrying value of a management contract acquired exceeds its fair value, an impairment loss is recognized equal to that excess. |
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 Company recognizes this cost over the period during which an employee is required to provide service in exchange for the award, and accounts for forfeitures as they occur. See Note 13 for additional information on equity-based compensation. |
Deferred Compensation | Deferred Compensation The Company issues deferred cash awards to certain employees which are linked in value to selected Manning & Napier series of mutual funds under its 2018 Long-Term Incentive Plan. The employees earn a return linked to the appreciation or depreciation based on these series of mutual funds. The Company currently hedges economically the exposure to market movements on its deferred compensation plan by holding investments in the Manning & Napier series of mutual funds on its balance sheet. The Company recognizes as compensation expense the value of the liability to employees, including the appreciation or depreciation of the liability, over the award's vesting period in proportion to the vested amount of the award. The Company immediately recognizes the full value of the related investment, and any subsequent appreciation or depreciation of the investment, in Net gains (losses) on investments in the consolidated statements of operations. |
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. |
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, 2018 and 2017 . |
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, 2018 and 2017 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The revenue standard contains principals to determine the measurement of revenue and timing of recognition and also impacts the accounting for incremental costs to obtain a contract. The Company adopted the new standard on its effective date of January 1, 2018. Refer to Note 3 for further discussion regarding the impact of adoption of this standard. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires all equity investments to be measured at fair value with changes in the fair value recognized through net income. The guidance is effective on January 1, 2018. The Company's adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments , to clarify guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. The FASB issued the ASU with the intent of reducing diversity in practice regarding eight types of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. The Company's adoption of ASU 2016-15 on January 1, 2018 did not have a material impact on its consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is intended to increase transparency and comparability among organizations by recognizing all lease transactions (with terms in excess of 12 months) on the balance sheet as a lease liability and a right-of-use asset (as defined). In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements , which provides an optional transition method related to implementing the new lease standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company plans to adopt the new standard on January 1, 2019, using the optional transition method. The Company is currently evaluating the impact of adoption on its consolidated financial statements. The Company expects that the adoption will result in an increase in total assets and total liabilities as of January 1, 2019 and is currently assessing the expected impact, if any, to its consolidated statements of operations. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. The ASU requires goodwill impairments to be measured on the basis of the fair value of the reporting unit relative to the reporting unit's carrying amount rather than on the basis of the implied amount of goodwill relative to the goodwill balance of the reporting unit. The ASU is effective for annual and interim impairment tests for periods beginning after December 15, 2019. Early adoption is allowed for annual and interim impairment tests occurring after January 1, 2017. The Company is evaluating the effect of adopting this new accounting standard. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU requires a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate as a result of the Tax Cuts and Jobs Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate. The ASU will be effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting standard. |
Revenue, Contract Assets and _2
Revenue, Contract Assets and Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table represents the Company’s separately managed account and mutual fund and collective investment trust investment management revenue by investment portfolio during the year ended December 31, 2018 : Year ended December 31, 2018 Separately managed accounts Mutual funds and collective investment trusts Total (in thousands) Blended Asset $ 71,730 $ 25,421 $ 97,151 Equity 22,804 15,987 38,791 Fixed Income 2,589 54 2,643 Total $ 97,123 $ 41,462 $ 138,585 |
Schedule of Accounts Receivable | The following provides amounts due from affiliated mutual funds and collective investment trusts reported within accounts receivable in the consolidated statement of financial condition as of December 31, 2018 and December 31, 2017 : December 31, 2018 December 31, 2017 (in thousands) Affiliated mutual funds (1) $ 4,802 $ 6,219 Affiliated collective investment trusts 1,303 1,840 Accounts receivable - affiliated mutual funds and collective investment trusts $ 6,105 $ 8,059 ________________________ (1) December 31, 2017 balance includes $0.7 million of distribution and servicing fees receivable, which in the prior fiscal period were reflected in "Accounts Receivable". This amount was reclassified to conform to the current period presentation (Note 2). Accounts receivable as of December 31, 2018 and December 31, 2017 consisted of the following: December 31, 2018 December 31, 2017 (in thousands) Accounts receivable - third parties $ 5,342 $ 7,278 Accounts receivable - affiliated mutual funds and collective investment trusts 6,105 8,059 Total accounts receivable $ 11,447 $ 15,337 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 (in thousands) Income before provision for income taxes $ 25,632 $ 67,877 Less: income (loss) before provision for income taxes of Manning & Napier, Inc. (1) 1,272 12,847 Income before provision for income taxes, as adjusted 24,360 55,030 Controlling interest percentage (2) 18.2 % 17.7 % Net income attributable to controlling interest 4,432 9,750 Plus: income (loss) before provision for income taxes of Manning & Napier, Inc. (1) 1,272 12,847 Income before income taxes attributable to Manning & Napier, Inc. 5,704 22,597 Less: provision for income taxes of Manning & Napier, Inc. (3) 2,507 19,010 Net income attributable to Manning & Napier, Inc. $ 3,197 $ 3,587 __________________________ (1) Manning & Napier, Inc. incurs certain income 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 $2.6 million and $19.4 million for the years ended December 31, 2018 and 2017 , respectively. |
Impact to the Company's ownership interest in Manning & Napier Group | The following provides a summary of the transactions that have impacted the Company's equity ownership interest in Manning & Napier Group during the years ended December 31, 2018 and 2017 : Manning & Napier Group Class A Units Held Manning & Napier Noncontrolling Interests Total Manning & Napier Ownership % As of January 1, 2017 13,826,575 65,784,571 79,611,146 17.4% Class A Units issued (1) 46,467 — 46,467 —% Class A Units exchanged — (1,853,506 ) (1,853,506 ) 0.4% As of December 31, 2017 13,873,042 63,931,065 77,804,107 17.8% Class A Units issued 253,694 — 253,694 0.3% Class A Units exchanged — (581,344 ) (581,344 ) 0.1% As of December 31, 2018 14,126,736 63,349,721 77,476,457 18.2% _____________________ (1) The impact of the transaction of Manning & Napier's ownership was less than 0.1% . |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Schedule of investment securities holdings | The following table represents the Company’s investment securities holdings at December 31, 2018 and December 31, 2017 : December 31, 2018 Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Available-for-sale securities Fixed income securities $ 15,488 $ — $ (75 ) $ 15,413 U.S. Treasury notes 21,613 36 — 21,649 Short-term investments 45,879 — — 45,879 82,941 Trading securities Equity securities 4,683 Mutual funds 3,566 8,249 Total investment securities $ 91,190 December 31, 2017 Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Available-for-sale securities Fixed income securities $ 19,589 $ — $ (29 ) $ 19,560 U.S. Treasury notes 22,428 — (42 ) 22,386 Short-term investments 22,323 — — 22,323 64,269 Trading securities Equity securities 3,548 Mutual funds 1,409 4,957 Equity method investments Mutual funds 1,178 Total investment securities $ 70,404 |
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, 2018 and 2017 : Year ended December 31, 2018 2017 (in thousands) Gross realized investment gains $ 401 $ 1,670 Gross realized investment losses (347 ) (1,069 ) Net realized gains (losses) $ 54 $ 601 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 : December 31, 2018 Level 1 Level 2 Level 3 Totals (in thousands) Equity securities $ 4,683 $ — $ — $ 4,683 Fixed income securities — 15,413 — 15,413 Mutual funds 3,566 — — 3,566 U.S. Treasury notes — 21,649 — 21,649 Short-term investments 43,914 1,965 — 45,879 Total assets at fair value $ 52,163 $ 39,027 $ — $ 91,190 Contingent consideration liability $ — $ — $ — $ — Total liabilities at fair value $ — $ — $ — $ — December 31, 2017 Level 1 Level 2 Level 3 Totals (in thousands) Equity securities $ 3,548 $ — $ — $ 3,548 Fixed income securities — 19,560 — 19,560 Mutual funds 2,587 — — 2,587 U.S. Treasury notes — 22,386 — 22,386 Short-term investments 22,323 — — 22,323 Total assets at fair value $ 28,458 $ 41,946 $ — $ 70,404 Contingent consideration liability $ — $ — $ — $ — Total liabilities at fair value $ — $ — $ — $ — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment Components | Property and equipment as of December 31, 2018 and 2017 consisted of the following: December 31, 2018 2017 (in thousands) Furniture and fixtures $ 2,506 $ 2,519 Office equipment 4,146 4,841 Computer software 4,855 3,816 Leasehold improvements 5,469 5,607 16,976 16,783 Less: Accumulated depreciation (11,327 ) (11,376 ) Property and equipment, net $ 5,649 $ 5,407 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table reflects the components of intangible assets as of December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Intangible assets subject to amortization: Cost - Separately managed account client relationships $ 897 $ 897 Accumulated amortization - Separately managed account client relationships (897 ) (897 ) Cost - Trademark 340 340 Accumulated amortization - Trademark (190 ) (145 ) Intangible assets subject to amortization, net 150 195 Indefinite-lived intangible assets: Cost - Mutual fund and collective trust contracts 2,578 2,578 Mutual fund and collective trust contracts 2,578 2,578 Total intangible assets, net $ 2,728 $ 2,773 |
Schedule of Indefinite-Lived Intangible Assets | The following table reflects the components of intangible assets as of December 31, 2018 and 2017 : December 31, 2018 2017 (in thousands) Intangible assets subject to amortization: Cost - Separately managed account client relationships $ 897 $ 897 Accumulated amortization - Separately managed account client relationships (897 ) (897 ) Cost - Trademark 340 340 Accumulated amortization - Trademark (190 ) (145 ) Intangible assets subject to amortization, net 150 195 Indefinite-lived intangible assets: Cost - Mutual fund and collective trust contracts 2,578 2,578 Mutual fund and collective trust contracts 2,578 2,578 Total intangible assets, net $ 2,728 $ 2,773 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated amortization expense to be recognized over the next 5 years is as follows: Year Ending December 31, Estimated Amortization Expense (in thousands) 2019 $ 45 2020 45 2021 45 2022 15 2023 — Thereafter — Total $ 150 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accrued expenses and other liabilities | The following table summarizes the changes in accrued employee severance costs recognized by the Company for the year ended December 31, 2018 , as included in accrued expenses and other liabilities in the consolidated statements of financial condition: Twelve months ended December 31, 2018 (in thousands) Accrued employee severance costs as of December 31, 2017 $ 659 Employee severance costs recognized 3,694 Payment of employee severance costs (2,711 ) Accrued employee severance costs as of December 31, 2018 $ 1,642 Accrued expenses and other liabilities as of December 31, 2018 and 2017 consisted of the following: December 31, 2018 2017 (in thousands) Accrued bonuses and sales commissions $ 16,121 $ 19,153 Accrued payroll and benefits 4,087 3,877 Accrued sub-transfer agent fees 1,451 2,445 Dividends payable on Class A common stock 306 1,203 Amounts payable under tax receivable agreement 674 2,549 Other accruals and liabilities 2,487 3,120 $ 25,126 $ 32,347 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum rent payments relating to the office leases for subsequent years | As of December 31, 2018 , minimum rent payments relating to the office leases for years subsequent to 2018 , are as follows: Year Ending December 31, Minimum Payments (in thousands) 2019 $ 3,748 2020 3,780 2021 3,712 2022 3,668 2023 3,369 Thereafter 13,397 $ 31,674 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 under the two-class method: Year Ended December 31, 2018 2017 (in thousands, except share data) Net income attributable to controlling and noncontrolling interests $ 22,985 $ 48,525 Less: net income attributable to noncontrolling interests 19,788 44,938 Net income attributable to Manning & Napier, Inc. $ 3,197 $ 3,587 Less: allocation to participating securities 67 70 Net income available to Class A common stock $ 3,130 $ 3,517 Weighted average shares of Class A common stock outstanding - basic 14,623,198 14,164,037 Dilutive effect from unvested equity awards 6,972 72,988 Weighted average shares of Class A common stock outstanding - diluted 14,630,170 14,237,025 Net income available to Class A common stock per share - basic $ 0.21 $ 0.25 Net income available to Class A common stock per share - diluted $ 0.21 $ 0.25 |
Equity Based Compensation (Tabl
Equity Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Schedule of Share-based Compensation, Equity Award Activity [Table Text Block] | The following table summarizes equity award activity for the year ended December 31, 2018 under the Company's Equity Plan: Restricted Stock Awards Weighted Average Grant Date Fair Value Stock awards outstanding at January 1, 2018 852,123 $ 12.09 Granted 1,309,325 $ 2.07 Vested (514,111 ) $ 7.70 Forfeited (45,000 ) $ 12.20 Stock awards outstanding at December 31, 2018 1,602,337 $ 5.31 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 (in thousands) Current Federal $ 69 $ 556 State and local 147 184 Current tax expense 216 740 Deferred Federal 1,339 16,137 State and local 1,092 2,475 Deferred tax expense 2,431 18,612 Provision for income tax expense $ 2,647 $ 19,352 |
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 of 21% for the year ended December 31, 2018 and 34% for the year ended December 31, 2017 , and the provision for income taxes for continuing operations are as follows: Year Ended December 31, 2018 2017 (in thousands) Amount computed using the statutory rate $ 5,383 $ 23,078 Increase (reduction) in taxes resulting from: State and local taxes, including settlements and adjustments, net of federal benefit 193 408 Impact of enacted tax law changes — 16,512 Net change in state deferred tax rate 1,316 — Net adjustment to amounts payable under TRA (281 ) (4,372 ) Benefit from the flow-through entities (4,067 ) (15,163 ) Other, net 103 (1,111 ) Provision for income taxes $ 2,647 $ 19,352 |
Schedule of deferred tax assets and liabilities | Components of net deferred tax assets consist of the following: December 31, 2018 2017 (in thousands) Deferred tax assets Tax receivable agreement $ 19,399 $ 22,680 Bonus and commissions 408 641 Net operating loss carryforwards 1,229 — Other 190 197 Total deferred tax assets 21,226 23,518 Deferred tax liabilities Depreciation and amortization 366 131 Prepaid items 65 89 Total deferred tax liabilities 431 220 Net deferred tax assets $ 20,795 $ 23,298 |
Summary of the Company's liability for income taxes associated with unrecognized tax benefits | A reconciliation of the beginning and ending amount of the Company's liability for income taxes associated with unrecognized tax benefits is as follows: December 31, 2018 2017 (in thousands) Balance as of January 1, $ 33 $ 135 Increase related to current year tax positions — 27 Decrease related to prior year tax positions — (129 ) Balance as of December 31, $ 33 $ 33 |
Organization and Nature of th_2
Organization and Nature of the Business (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Outside ownership interest in limited liability and limited partnership companies | 1.00% |
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 18.20% |
Majority Outside Ownership Interest in limited liability and limited partnership companies | 80.80% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Fees and Commissions | $ 3,000 | |
Deferred Tax Assets, Net, Total | $ 20,795 | 23,298 |
Number of segments | Segment | 1 | |
Amortization period for first year commissions directly associated with new separate account | 7 years | |
Amortization period for first year commissions directly associated with CIT investment management contracts | 3 years | |
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 | |
Managed Mutual Funds and Managed Mutual Consolidated Funds [Member] | Manning & Napier Fund | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Trading Securities, Other | $ 3,600 | 2,600 |
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) | 18.20% | |
Minimum | Computer software | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Property and Equipment useful lives (years) | 3 years | |
Maximum | Computer software | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Property and Equipment useful lives (years) | 5 years | |
Accounts receivable - affiliated mutual funds and collective investment trusts [Member] | Affiliated entity [Member] | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Revenue from Related Parties | $ 54,600 | $ 81,600 |
Revenue, Contract Assets and _3
Revenue, Contract Assets and Contract Liabilities (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of change in accounting principle, net of taxes (Note 3) | $ 1,490 | |
Revenues | $ 161,331 | 201,527 |
Contract with Customer, Asset, Cumulative Catch-up Adjustment to Revenue, Change in Estimate of Transaction Price | 100 | |
Accrued Accounts Receivable | 200 | |
Contract with Customer, Liability, Revenue Recognized | 9,900 | |
Capitalized Contract Cost, Net | 1,200 | |
Capitalized Contract Cost, Amortization | 500 | |
Capitalized Contract Cost, Impairment Loss | 300 | |
Record-Keeping And Administrative Services [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Service Fees Due To Third Party | 2,600 | |
Accounting And Administrative Services To Affiliated Mutual Fund [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Service Fees Due To Third Party | 2,200 | |
Safeguarding And Administrative Services [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Service Fees Due To Third Party | 500 | |
Advisory Related Services [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Revenues | 54,600 | 81,600 |
Separately managed accounts | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Revenues | $ 97,123 | $ 111,518 |
Customer Contract Period | 7 years | |
Collective Investment Trust Contracts [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Customer Contract Period | 3 years |
Revenue, Contract Assets and _4
Revenue, Contract Assets and Contract Liabilities (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 161,331 | $ 201,527 |
Separately managed accounts | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 97,123 | 111,518 |
Separately managed accounts | Blended Asset [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 71,730 | |
Separately managed accounts | Equity Funds [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 22,804 | |
Separately managed accounts | Fixed Income Investments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,589 | |
Mutual funds and collective investment trusts | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 41,462 | $ 65,716 |
Mutual funds and collective investment trusts | Blended Asset [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 25,421 | |
Mutual funds and collective investment trusts | Equity Funds [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 15,987 | |
Mutual funds and collective investment trusts | Fixed Income Investments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 54 | |
Management Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 138,585 | |
Management Fees | Blended Asset [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 97,151 | |
Management Fees | Equity Funds [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 38,791 | |
Management Fees | Fixed Income Investments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,643 |
Revenue, Contract Assets and _5
Revenue, Contract Assets and Contract Liabilities (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disaggregation of Revenue [Line Items] | ||
Accounts receivable | $ 11,447 | $ 15,337 |
Affiliated Mutual Funds [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable | 4,802 | 6,219 |
Accounts receivable - third parties | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable | 5,342 | 7,278 |
Accounts receivable - affiliated mutual funds and collective investment trusts | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable | 6,105 | 8,059 |
Affiliated Collective Investment Trusts | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable | $ 1,303 | 1,840 |
Distribution and servicing fee receivable [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable | $ 700 |
Noncontrolling Interests (Textu
Noncontrolling Interests (Textual) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Payments to Acquire Interest in Subsidiaries and Affiliates | $ 1,918 | $ 9,802 | |
Decrease from distributions to noncontrolling interest holders | $ (13,089) | $ (32,173) | |
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) | 18.20% | ||
Payments to Acquire Interest in Subsidiaries and Affiliates | $ 1,900 | ||
Manning & Napier Group, LLC | Class A Units | |||
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) | 18.20% | 17.80% | 17.40% |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Shares | 581,344 | 1,853,506 | |
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 | 81.80% | ||
Capital Unit, Class A | Class A Units | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Number of Common Units Available for Conversion | 63,349,721 | 63,931,065 |
Noncontrolling Interests (Recon
Noncontrolling Interests (Reconciliation of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | ||
Income before provision for income taxes | $ 25,632 | $ 67,877 |
Less: loss before provision for income taxes of Manning & Napier, Inc. | 1,272 | 12,847 |
Income before provision for income taxes, as adjusted | $ 24,360 | $ 55,030 |
Controlling interest percentage | 18.20% | 17.70% |
Net income attributable to controlling interest | $ 4,432 | $ 9,750 |
Plus: (loss) gain before provision for income taxes of Manning & Napier, Inc. | 1,272 | 12,847 |
Income before income taxes attributable to Manning & Napier, Inc. | 5,704 | 22,597 |
Less: provision (benefit) for income taxes of Manning & Napier, Inc. | 2,507 | 19,010 |
Net income attributable to Manning & Napier, Inc. | 3,197 | 3,587 |
Provision for income taxes | $ 2,647 | $ 19,352 |
(Summary of Equity Ownership In
(Summary of Equity Ownership Interest) (Details) - Manning & Napier Group, LLC - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Noncontrolling Interest, Ownership Percentage [Roll Forward] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 18.20% | |
Noncontrolling Interest, Ownership Percentage by Parent | ||
Class A Units | ||
Noncontrolling Interest, Shared Held by Parent [Roll Forward] | ||
Noncontrolling Interest, Shares Held by Parent | 13,873,042 | 13,826,575 |
Noncontrolling Interest, Shares Held by Parent, Issued | 253,694 | 46,467 |
Noncontrolling Interest, Shares Held by Parent, Exchanged | 0 | 0 |
Noncontrolling Interest, Shares Held by Parent | 14,126,736 | 13,873,042 |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners [Roll Forward] | ||
Noncontrolling Interest, Shared Held by Noncontrolling Owners | 63,931,065 | 65,784,571 |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Shares | (581,344) | (1,853,506) |
Noncontrolling Interest, Shared Held by Noncontrolling Owners | 63,349,721 | 63,931,065 |
Noncontrolling Interest, Shares Total [Roll Forward] | ||
Noncontrolling Interest, Shares, Total | 77,804,107 | 79,611,146 |
Noncontrolling Interest, Shares Total, Issued | 253,694 | 46,467 |
Noncontrolling Interest, Shares Total, Exchanged | (581,344) | (1,853,506) |
Noncontrolling Interest, Shares, Total | 77,476,457 | 77,804,107 |
Noncontrolling Interest, Ownership Percentage [Roll Forward] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 18.20% | 17.80% |
Noncontrolling Interest, Ownership Percentage by Parent, Issued | 0.30% | 0.00% |
Noncontrolling Interest, Ownership Percentage by Parent, Exchanged | 0.10% | 0.40% |
Noncontrolling Interest, Ownership Percentage by Parent | 17.80% | 17.40% |
Class A Units | Maximum | ||
Noncontrolling Interest, Ownership Percentage [Roll Forward] | ||
Noncontrolling Interest, Ownership Percentage by Parent, Issued | 0.10% |
Investment Securities (Company'
Investment Securities (Company's Investment Securities Holdings) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment Holdings [Line Items] | ||
Available-for-sale securities, at fair value | $ 82,941 | $ 64,269 |
Trading securities, at fair value | 8,249 | 4,957 |
Equity method investments | 1,178 | |
Total assets at fair value | 91,190 | 70,404 |
Fixed income securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale securities, Cost | 15,488 | 19,589 |
Available-for-sale Debt Securities, unrealized gains | 0 | 0 |
Available-for-sale Debt Securities, unrealized losses | (75) | (29) |
Available-for-sale securities, at fair value | 15,413 | 19,560 |
U.S. Treasury notes | ||
Investment Holdings [Line Items] | ||
Available-for-sale securities, Cost | 21,613 | 22,428 |
Available-for-sale Debt Securities, unrealized gains | 36 | 0 |
Available-for-sale Debt Securities, unrealized losses | 0 | (42) |
Available-for-sale securities, at fair value | 21,649 | 22,386 |
Short-term investments | ||
Investment Holdings [Line Items] | ||
Available-for-sale securities, Cost | 45,879 | 22,323 |
Available-for-sale Debt Securities, unrealized gains | 0 | 0 |
Available-for-sale Debt Securities, unrealized losses | 0 | |
Available-for-sale securities, at fair value | 45,879 | 22,323 |
Equity securities | ||
Investment Holdings [Line Items] | ||
Trading securities, at fair value | 4,683 | 3,548 |
Mutual funds | ||
Investment Holdings [Line Items] | ||
Trading securities, at fair value | 3,566 | 2,587 |
Manning & Napier Fund | Mutual funds | ||
Investment Holdings [Line Items] | ||
Trading securities, at fair value | $ 3,566 | $ 1,409 |
Investment Securities (Textual)
Investment Securities (Textual) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments [Abstract] | ||
Recognized net unrealized gain (losses) on trading securities | $ (1,500,000) | $ 1,800,000 |
Restricted Securities | 600,000 | 600,000 |
Other than temporary impairment losses recognized | 0 | 0 |
Gross realized investment gains | 401,000 | 1,670,000 |
Gross realized investment losses | (347,000) | (1,069,000) |
Net realized gains (losses) | $ 54,000 | $ 601,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value of Company's Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | $ 8,249 | $ 4,957 |
Available-for-sale securities, at fair value | 82,941 | 64,269 |
Total assets at fair value | 91,190 | 70,404 |
Contingent consideration liability | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 4,683 | 3,548 |
Fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 15,413 | 19,560 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 3,566 | 2,587 |
U.S. Treasury notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 21,649 | 22,386 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 45,879 | 22,323 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 52,163 | 28,458 |
Contingent consideration liability | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 4,683 | 3,548 |
Level 1 | Fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | 0 |
Level 1 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities, at fair value | 3,566 | 2,587 |
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 |
Level 1 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 43,914 | 22,323 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 39,027 | 41,946 |
Contingent consideration liability | 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] | ||
Available-for-sale securities, at fair value | 15,413 | 19,560 |
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 | U.S. Treasury notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 21,649 | 22,386 |
Level 2 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 1,965 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Contingent consideration liability | 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] | ||
Available-for-sale 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 | 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 |
Level 3 | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, at fair value | 0 | $ 0 |
Maximum | Rainier Investment Management, LLC | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | $ 32,500 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 16,976 | $ 16,783 |
Less: Accumulated depreciation | (11,327) | (11,376) |
Property and equipment, net | 5,649 | 5,407 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,506 | 2,519 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,146 | 4,841 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,855 | 3,816 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,469 | $ 5,607 |
Property and Equipment Deprecia
Property and Equipment Depreciation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 1.7 | $ 1.7 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 4,829,000 | $ 4,829,000 |
Goodwill impairment loss | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Total | $ 195 | $ 150 | $ 195 | |
Intangible Assets, Net (Excluding Goodwill) | 2,773 | 2,728 | 2,773 | |
Sale of intangible assets | 2,626 | 1,043 | ||
Gain on sale of intangible assets | 2,626 | 1,043 | ||
Customer Relationships for Separately Managed Accounts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 897 | 897 | 897 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (897) | (897) | (897) | |
Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 340 | 340 | 340 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (145) | (190) | (145) | |
Mutual fund and collective trust contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived Intangible Assets, Gross | 2,578 | 2,578 | 2,578 | |
Rainier Investment Management, LLC | Mutual funds | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Sale of intangible assets | $ 2,100 | $ 1,000 | ||
Gain on sale of intangible assets | $ 2,100 | $ 1,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets Amortization Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 100 | |
Finite-Lived Intangible Asset, Useful Life | 1 year 8 months 12 days | |
2019 | $ 45 | |
2020 | 45 | |
2021 | 45 | |
2022 | 15 | |
2023 | 0 | |
Thereafter | 0 | |
Total | $ 150 | $ 195 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accrued bonus and sales commissions | $ 16,121 | $ 19,153 |
Accrued payroll and benefits | 4,087 | 3,877 |
Accrued sub-transfer agent fees | 1,451 | 2,445 |
Dividends payable | 306 | 1,203 |
Amounts payable under tax receivable agreement, current | 674 | 2,549 |
Other accruals and liabilities | 2,487 | 3,120 |
Accrued expenses and other liabilities | 25,126 | $ 32,347 |
Movement In Accrued Employee Severance Costs [Roll Forward] | ||
Accrued employee severance costs as of December 31, 2017 | 659 | |
Employee severance costs recognized | 3,694 | |
Payment of employee severance costs | (2,711) | |
Accrued employee severance costs as of December 31, 2018 | 1,642 | |
Supplemental Employee Retirement Plan | Voluntary Employee Retirement Offering | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Estimated costs and benefits to be recorded | 2,600 | |
Severance costs | 2,200 | |
Involuntary Workforce Reduction | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Severance costs | $ 1,500 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitment And Contingencies [Line Items] | ||
Operating lease rent expense | $ 3,700 | $ 4,200 |
Future Minimum Operating Lease Payments Due | ||
2019 | 3,748 | |
2020 | 3,780 | |
2021 | 3,712 | |
2022 | 3,668 | |
2023 | 3,369 | |
Thereafter | 13,397 | |
Total operating leases, future minimum payments due | 31,674 | |
Sublease income | 500 | |
Contractual obligation under operating lease | 31,674 | |
Capital lease obligations | 200 | $ 300 |
Office Facilities | ||
Future Minimum Operating Lease Payments Due | ||
Total operating leases, future minimum payments due | 26,100 | |
Contractual obligation under operating lease | 26,100 | |
Annual contractual obligation under operating lease | $ 2,900 |
Shareholders' Equity and Capi_2
Shareholders' Equity and Capital Structure (Details) - $ / shares | Nov. 17, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 100,000 | ||
Preferred stock, par value (dollars per share) | $ 0.01 | ||
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 | ||
Common stock, par value (dollars per share) | $ 0.01 | ||
Manning & Napier Group Holding, LLC | Class A Units | |||
Class of Stock [Line Items] | |||
Conversion of Stock, Eligible for Exchange | 62,200,000 | ||
Manning & Napier Group, LLC | Class A Units | |||
Class of Stock [Line Items] | |||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Shares | 581,344 | 1,853,506 | |
William Manning | Manning & Napier Group Holding, LLC | Class A Units | |||
Class of Stock [Line Items] | |||
Conversion of Stock, Eligible for Exchange | 60,000,000 | ||
Capital Unit, Class A | Class A Units | |||
Class of Stock [Line Items] | |||
Number of Common Units Available for Conversion | 63,349,721 | 63,931,065 | |
Maximum | Manning & Napier Group Holding, LLC | Class A Units | |||
Class of Stock [Line Items] | |||
Conversion of Stock, Eligible for Exchange | 63,300,000 | ||
Common Stock | Class B common stock | |||
Class of Stock [Line Items] | |||
Cancellation of Class B common stock, Shares | 1,000 | 1,000 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Line Items] | ||
Net income attributable to controlling and noncontrolling interests | $ 22,985 | $ 48,525 |
Less: net income attributable to noncontrolling interests | 19,788 | 44,938 |
Net income attributable to Manning & Napier, Inc. | 3,197 | 3,587 |
Less: allocation to participating securities | 67 | 70 |
Net income available to Class A common stock | $ 3,130 | $ 3,517 |
Weighted average shares of Class A common stock outstanding - basic | 14,623,198 | 14,164,037 |
Dilutive effect from unvested equity awards | 6,972 | 72,988 |
Weighted average shares of Class A common stock outstanding - diluted | 14,630,170 | 14,237,025 |
Net income available to Class A common stock per share - basic | $ 0.21 | $ 0.25 |
Net income available to Class A common stock per share - diluted | $ 0.21 | $ 0.25 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,602,337 | 790,000 |
Capital Unit, Class A | Class A Units | ||
Earnings Per Share [Line Items] | ||
Number of Common Units Available for Conversion | 63,349,721 | 63,931,065 |
Equity Based Compensation (Addi
Equity Based Compensation (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (shares) | 1,309,325 | |
Granted, weighted average grant date fair value (dollars per share) | $ 2.07 | $ 5.55 |
Shares Paid for Tax Withholding for Share Based Compensation | 69,597 | |
Payments Related to Tax Withholding for Share-based Compensation | $ 0 | $ 272 |
Equity Compensation Plan 2011 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized | 13,142,813 | |
Compensation expense related to the vesting terms of ownership interests | $ 2,300 | 2,300 |
The aggregate intrinsic value of stock units that vested | 1,700 | $ 1,200 |
Unrecognized compensation expense related to unvested awards | $ 5,200 | |
Weighted average period of unrecognized compensation expense (years) | 2 years 6 months |
Equity Based Compensation (Rest
Equity Based Compensation (Restricted Stock Awards) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Units | ||
Stock unit awards, beginning balance (shares) | 852,123 | |
Granted (shares) | 1,309,325 | |
Vested (shares) | (514,111) | |
Forfeited (shares) | (45,000) | |
Stock unit awards, ending balance (shares) | 1,602,337 | 852,123 |
Weighted Average Grant Date Fair Value | ||
Stock unit awards, beginning balance, weighted average grant date fair value (dollars per share) | $ 12.09 | |
Granted, weighted average grant date fair value (dollars per share) | 2.07 | $ 5.55 |
Vested, weighted average grant date fair value (dollars per share) | 7.70 | |
Forfeited, weighted average grant date fair value (dollars per share) | 12.20 | |
Stock unit awards, ending balance, weighted average grant date fair value (dollars per share) | $ 5.31 | $ 12.09 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||
Impact of enacted tax law changes | $ 0 | $ 16,512 |
Change in amounts payable under tax receivable agreement | $ (1,341) | $ (12,859) |
Percentage of cash savings payable under tax receivable agreement (percent) | 85.00% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 34.00% |
Payments due to selling unit holders | $ 18,000 | $ 21,800 |
Amounts payable under tax receivable agreement, current | 674 | 2,549 |
Payments Pursuant To Tax Receivable Agreement | 2,500 | 2,400 |
Interest expense (less than) | $ 100 | $ 100 |
Manning & Napier Group, LLC | ||
Income Tax Disclosure [Line Items] | ||
Percentage of cash savings payable under tax receivable agreement (percent) | 85.00% | |
Percentage of cash savings receivable under tax receivable agreement | 15.00% | |
Federal | ||
Income Tax Disclosure [Line Items] | ||
Operating Loss Carryforwards | $ 5,000 | |
State | ||
Income Tax Disclosure [Line Items] | ||
Operating Loss Carryforwards | $ 2,500 |
Income Taxes (Components of the
Income Taxes (Components of the Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current | ||
Federal | $ 69 | $ 556 |
State and local | 147 | 184 |
Current tax expense | 216 | 740 |
Deferred | ||
Federal | 1,339 | 16,137 |
State and local | 1,092 | 2,475 |
Deferred tax expense (benefit) | 2,431 | 18,612 |
Provision for income taxes | $ 2,647 | $ 19,352 |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Amount computed using the statutory rate | $ 5,383 | $ 23,078 |
State and local taxes, including settlements and adjustments, net of federal benefit | 193 | 408 |
Impact of enacted tax law changes | 0 | 16,512 |
Net change in state deferred tax rate | 1,316 | 0 |
Net adjustment to amounts payable under TRA | (281) | (4,372) |
Benefit from the flow-through entities | (4,067) | (15,163) |
Other, net | 103 | (1,111) |
Provision for income taxes | $ 2,647 | $ 19,352 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Tax receivable agreement | $ 19,399 | $ 22,680 |
Bonus and commissions | 408 | 641 |
Deferred Tax Assets, Operating Loss Carryforwards | 1,229 | 0 |
Other | 190 | 197 |
Total deferred tax assets | 21,226 | 23,518 |
Deferred tax liabilities | ||
Depreciation and amortization | 366 | 131 |
Prepaid items | 65 | 89 |
Total deferred tax liabilities | 431 | 220 |
Net deferred tax assets | $ 20,795 | $ 23,298 |
Income Taxes (Accounting for Un
Income Taxes (Accounting for Uncertainty in Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance as of January 1, | $ 33 | $ 135 |
Increase related to current year tax positions | 0 | 27 |
Decrease related to prior year tax positions | 0 | (129) |
Balance as of December 31, | $ 33 | $ 33 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting And Administrative Services To Affiliated Mutual Fund [Member] | ||
Related Party Transactions [Line Items] | ||
Service Fees Due To Third Party | $ 2.2 | |
Executive Officer | ||
Related Party Transactions [Line Items] | ||
Revenue from Related Parties | 0.1 | $ 0.2 |
Advisory Fees Waived | 0.1 | 0.1 |
Accounts receivable - affiliated mutual funds and collective investment trusts | ||
Related Party Transactions [Line Items] | ||
Accounts receivable—affiliated mutual funds | 0.2 | |
Accounts receivable - affiliated mutual funds and collective investment trusts | Affiliated entity | ||
Related Party Transactions [Line Items] | ||
Revenue from Related Parties | 54.6 | 81.6 |
Affiliated Collective Investment Trusts | ||
Related Party Transactions [Line Items] | ||
Advisory Fees Waived | $ 5.1 | $ 6.5 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [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 | $ 1 |
Profit Sharing Plan contribution amount | $ 0.5 | $ 1 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | Mar. 05, 2019USD ($)$ / shares | Jun. 30, 2019shares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares |
Subsequent Event [Line Items] | ||||
Conversion ratio | 1 | |||
Class A common stock | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared per share of Class A common stock (dollars per share) | $ / shares | $ 0.26 | $ 0.32 | ||
Subsequent Event | Class A common stock | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared per share of Class A common stock (dollars per share) | $ / shares | $ 0.02 | |||
Manning & Napier Group, LLC | Class A Units | ||||
Subsequent Event [Line Items] | ||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Shares | shares | 581,344 | 1,853,506 | ||
Manning & Napier Group, LLC | Subsequent Event | Class A Units | ||||
Subsequent Event [Line Items] | ||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Shares | shares | 1,300,000 | |||
Maximum | Manning & Napier Group, LLC | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Dividends Payable | $ | $ 2 |