| Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Critical Accounting Policies The Company's critical accounting policies and estimates are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2019 . The Company believes that the disclosures herein are adequate so that the information presented is not misleading; however, these financial statements should be read in conjunction with the financial statements and the notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 . The financial data for the interim periods may not necessarily be indicative of results for future interim periods or for the full year. Basis of Presentation The accompanying unaudited 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 (“SEC”) for interim financial reporting and include all adjustments, consisting only of normal recurring adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim period. 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. Summary of Presentation Changes As of January 1, 2020, the Company revised its presentation of investment management revenue within its consolidated statements of operations. Investment management revenue, previously presented by investment vehicle, has been disaggregated to present investment management revenue by sales channel. Concurrently, the Company revised the presentation of assets under management ("AUM") activity previously reported by investment vehicle to present this activity by sales channel. 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 and do not represent a restatement of any previously published financial results. Revision of Previously Reported Consolidated Statements of Operations In the quarter ended September 30, 2020, the Company revised its sales channel classification of certain 2020 and 2019 investment management revenues to properly present these revenues as either wealth management or institutional and intermediary investment management revenues, in accordance with the "Summary of Presentation Changes" discussed above. The Company assessed the materiality of this item on its quarterly reports on Form 10-Q for the periods ended March 31, 2020 and June 30, 2020, and concluded that the reclassification was not material to any such periods. The reclassification has no impact on total revenue, operating income, or net income. The impact to the classification of total investment management revenues between sales channels and among investment portfolios is illustrated below: Three Months Ended March 31, 2019 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in thousands) Wealth Management Revenue, as previously reported $ 16,469 $ 16,209 $ 32,678 Adjustments (1,996 ) (1,950 ) (3,946 ) Wealth Management Revenue, as revised $ 14,473 $ 14,259 $ 28,732 Institutional and Intermediary Revenue, as previously reported $ 13,234 $ 12,932 $ 26,166 Adjustments 1,996 1,950 3,946 Institutional and Intermediary Revenue, as revised $ 15,230 $ 14,882 $ 30,112 Three Months Ended March 31, 2020 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in thousands) Wealth Management Revenue, as previously reported $ 14,300 $ 13,740 $ 28,040 Adjustments (280 ) (169 ) (449 ) Wealth Management Revenue, as revised $ 14,020 $ 13,571 $ 27,591 Institutional and Intermediary Revenue, as previously reported $ 12,131 $ 12,142 $ 24,273 Adjustments 280 169 449 Institutional and Intermediary Revenue, as revised $ 12,411 $ 12,311 $ 24,722 Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 (in thousands) Wealth Management Institutional and Intermediary Total Wealth Management Institutional and Intermediary Total Blended Asset, as previously reported 11,942 8,186 20,128 13,498 7,828 21,326 Adjustments — — — (1,084 ) 1,084 — Blended Asset, as revised 11,942 8,186 20,128 12,414 8,912 21,326 Equity, as previously reported 2,165 3,619 5,784 2,761 4,957 7,718 Adjustments (280 ) 280 — (916 ) 916 — Equity, as revised 1,885 3,899 5,784 1,845 5,873 7,718 Fixed Income, as previously reported 193 326 519 210 449 659 Adjustments — — — 4 (4 ) — Fixed Income, as revised 193 326 519 214 445 659 Total, as previously reported 14,300 12,131 26,431 16,469 13,234 29,703 Adjustments (280 ) 280 — (1,996 ) 1,996 — Total, as revised 14,020 12,411 26,431 14,473 15,230 29,703 Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 (in thousands) Wealth Management Institutional and Intermediary Total Wealth Management Institutional and Intermediary Total Blended Asset, as previously reported 12,148 7,486 19,634 13,186 7,607 20,793 Adjustments (164 ) 164 — (932 ) 932 — Blended Asset, as revised 11,984 7,650 19,634 12,254 8,539 20,793 Equity, as previously reported 1,470 4,345 5,815 2,819 4,894 7,713 Adjustments (5 ) 5 — (1,026 ) 1,026 — Equity, as revised 1,465 4,350 5,815 1,793 5,920 7,713 Fixed Income, as previously reported 122 311 433 204 431 635 Adjustments — — — 8 (8 ) — Fixed Income, as revised 122 311 433 212 423 635 Total, as previously reported 13,740 12,142 25,882 16,209 12,932 29,141 Adjustments (169 ) 169 — (1,950 ) 1,950 — Total, as revised 13,571 12,311 25,882 14,259 14,882 29,141 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 (in thousands) Wealth Management Institutional and Intermediary Total Wealth Management Institutional and Intermediary Total Blended Asset, as previously reported 24,090 15,672 39,762 26,684 15,435 42,119 Adjustments (164 ) 164 — (2,016 ) 2,016 — Blended Asset, as revised 23,926 15,836 39,762 24,668 17,451 42,119 Equity, as previously reported 3,635 7,964 11,599 5,580 9,851 15,431 Adjustments (285 ) 285 — (1,942 ) 1,942 — Equity, as revised 3,350 8,249 11,599 3,638 11,793 15,431 Fixed Income, as previously reported 315 637 952 414 880 1,294 Adjustments — — — 12 (12 ) — Fixed Income, as revised 315 637 952 426 868 1,294 Total, as previously reported 28,040 24,273 52,313 32,678 26,166 58,844 Adjustments (449 ) 449 — (3,946 ) 3,946 — Total, as revised 27,591 24,722 52,313 28,732 30,112 58,844 Principles of Consolidation The Company consolidates all majority-owned subsidiaries. In addition, as of September 30, 2020 , Manning & Napier holds an economic interest of approximately 88.2% in Manning & Napier Group and, 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 Manning & Napier Group Holdings and 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 strategies 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 investment 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, equity investments, at fair value, or as trading securities, as applicable. As of September 30, 2020 and December 31, 2019 , the Company did not have investments classified as an equity method investment. 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 $1.7 million as of September 30, 2020 and $3.2 million as of December 31, 2019 . As of September 30, 2020 and December 31, 2019 , the Company did not have a controlling financial interest in any mutual fund. Revenue Investment Management: Investment management fees are computed as a percentage of 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. 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 in 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. 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 has been classified as Level 1 in accordance with the fair value hierarchy. Investment Securities Investment securities are classified as either equity investments, 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 equity investments, at fair value consist of equity securities and investments in mutual funds for which the Company provides advisory services. Realized and unrealized gains and losses on equity investments, at fair value or trading securities, as applicable, are recorded in net gains (losses) on investments in the consolidated statements of operations. At September 30, 2020 , equity investments, at fair value consist of investments held by the Company to provide initial cash seeding for product development purposes and investments to hedge economic exposure to market movements on its deferred compensation plan. 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 shareholders’ 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. Property and Equipment Property and equipment is presented net of accumulated depreciation of approximately $12.3 million and $11.4 million as of September 30, 2020 and December 31, 2019 , respectively. Goodwill and Intangible Assets Goodwill represents the excess cost over the fair value of the identifiable net assets of acquired companies. Identifiable intangible assets generally represent the cost of client relationships and investment management agreements acquired as well as trademarks. Goodwill and indefinite-lived assets are tested for impairment annually or more frequently if events or circumstances indicate that the carrying value may not be recoverable. Intangible assets subject to amortization are tested for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. Goodwill and intangible assets require significant management estimate and judgment, including the valuation and expected life determination in connection with the initial purchase price allocation and the ongoing evaluation for impairment. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued expenses and other liabilities and operating lease liabilities, non-current on its consolidated statements of financial condition. Finance leases are included in other long-term assets, accrued expenses and other liabilities, and other long-term liabilities on its consolidated statements of financial condition. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate, for each identified lease, is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. The operating lease ROU asset is reduced for any lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are combined for all classes of underlying assets. Impairment of Long-Lived Assets The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. During the nine months ended September 30, 2020, a downturn in the commercial real estate market indicated that an asset group, including previously vacated office space, may not be recoverable. The Company assessed recoverability of the asset group by comparing the undiscounted future net cash flows expected to result from the asset group to its carrying value. The carrying value exceeded the undiscounted future net cash flows of the asset, and an impairment loss of approximately $0.7 million was recognized during the nine months ended September 30, 2020 as the difference between the net book value and the fair value of the asset group. Operating Segments The Company operates in one segment, the investment management industry. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract . The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements that currently exist in U.S. GAAP for capitalizing implementation costs incurred to develop or obtain internal-use software. Under the new standard, implementation costs are deferred and presented in the same financial statement caption on the consolidated statements of financial condition as a prepayment of related arrangement fees. The deferred costs are recognized over the term of the arrangement in the same financial statement caption in the consolidated statements of operations as the related fees of the arrangement. The Company adopted the provisions of this guidance using the prospective adoption approach, which does not require the restatement of prior years. The adoption of this ASU did not have a material impact on the Company's statement of operations as requirements under the standard are generally consistent with its previous accounting for cloud computing arrangements, with the primary difference being the classification of certain information in its statements of financial condition and related disclosures. As of September 30, 2020 , the Company had a total of approximately $4.1 million of capitalized implementation costs for hosting arrangements within prepaid expenses and other assets on its statements of financial condition, with no amounts in accumulated amortization and no amortization expense recognized during the nine months ended September 30, 2020. At December 31, 2019, approximately $0.4 million of these costs were capitalized within property and equipment, net. The hosting arrangements that are service contracts include internal and external costs related to various technology additions in support of the Company's business. Amortization costs are recorded on a straight-line basis over the term of the hosting arrangement agreement. 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 adoption of this ASU did not have a material impact on the Company's consolidated financial statements. |
