Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | SEI INVESTMENTS COMPANY | ||
Entity Central Index Key | 350,894 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SEIC | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 159,176,081 | ||
Entity Public Float | $ 6.1 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 695,701 | $ 679,661 |
Restricted cash | 3,500 | 5,500 |
Receivables from investment products | 61,761 | 48,098 |
Receivables, net of allowance for doubtful accounts of $523 and $649 | 227,957 | 223,023 |
Securities owned | 21,339 | 21,235 |
Other current assets | 27,575 | 26,207 |
Total Current Assets | 1,037,833 | 1,003,724 |
Property and Equipment, net of accumulated depreciation of $285,322 and $259,501 | 146,190 | 143,977 |
Capitalized Software, net of accumulated amortization of $303,540 and $259,358 | 295,867 | 290,522 |
Investments Available for Sale | 84,033 | 81,294 |
Investments in Affiliated Funds, at fair value | 4,858 | 4,039 |
Investment in Unconsolidated Affiliates | 50,459 | 49,580 |
Deferred Income Taxes | 2,127 | 0 |
Other Assets, net | 15,456 | 15,492 |
Total Assets | 1,636,823 | 1,588,628 |
Current Liabilities: | ||
Accounts payable | 5,966 | 4,511 |
Accrued liabilities | 240,525 | 217,587 |
Deferred revenue | 2,880 | 2,385 |
Total Current Liabilities | 249,371 | 224,483 |
Deferred Income Taxes | 69,693 | 63,028 |
Other Long-term Liabilities | 14,645 | 11,397 |
Total Liabilities | 333,709 | 298,908 |
Commitments and Contingencies | ||
SEI Investments shareholders' equity: | ||
Series Preferred stock, $.05 par value, 50 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 750,000 shares authorized; 159,031 and 163,733 shares issued and outstanding | 1,590 | 1,637 |
Capital in excess of par value | 955,461 | 910,513 |
Retained earnings | 384,018 | 402,860 |
Accumulated other comprehensive loss, net | (37,955) | (25,290) |
Total Shareholders' Equity | 1,303,114 | 1,289,720 |
Total Liabilities and Equity | $ 1,636,823 | $ 1,588,628 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Receivables, allowance for doubtful accounts | $ 523 | $ 649 |
Property and Equipment, accumulated depreciation | 285,322 | 259,501 |
Capitalized Software, accumulated amortization | $ 303,540 | $ 259,358 |
Equity: | ||
Series Preferred stock, par value | $ 0.05 | $ 0.05 |
Series Preferred stock, shares authorized | 50,000 | 50,000 |
Series Preferred stock, shares issued | 0 | 0 |
Series Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 159,031,000 | 163,733,000 |
Common stock, shares outstanding | 159,031,000 | 163,733,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Asset management, administration and distribution fees | $ 1,072,176 | $ 1,010,511 | $ 948,932 |
Information processing and software servicing fees | 300,346 | 290,893 | 285,463 |
Transaction-based and trade execution fees | 29,023 | 32,804 | 31,610 |
Total revenues | 1,401,545 | 1,334,208 | 1,266,005 |
Expenses: | |||
Subadvisory, distribution and other asset management costs | 170,961 | 160,062 | 149,791 |
Software royalties and other information processing costs | 30,323 | 31,497 | 33,522 |
Brokerage commissions | 22,152 | 24,388 | 23,002 |
Compensation, benefits and other personnel | 414,622 | 395,774 | 376,873 |
Stock-based compensation | 16,017 | 17,312 | 13,463 |
Consulting, outsourcing and professional fees | 166,769 | 146,436 | 136,818 |
Data processing and computer related | 64,930 | 58,884 | 52,512 |
Facilities, supplies and other costs | 68,245 | 74,968 | 66,113 |
Amortization | 45,392 | 42,630 | 38,679 |
Depreciation | 26,440 | 24,044 | 22,448 |
Total expenses | 1,025,851 | 975,995 | 913,221 |
Income from operations | 375,694 | 358,213 | 352,784 |
Net gain (loss) from investments | 112 | (456) | 614 |
Interest and dividend income | 4,316 | 3,358 | 3,354 |
Interest expense | (531) | (483) | (458) |
Equity in earnings of unconsolidated affiliates | 126,103 | 137,057 | 127,786 |
Gain on sale of subsidiary | 2,791 | 2,791 | 5,582 |
Income before income taxes | 508,485 | 500,480 | 489,662 |
Income taxes | 174,668 | 168,825 | 170,949 |
Net income | $ 333,817 | $ 331,655 | $ 318,713 |
Basic earnings per common share | $ 2.07 | $ 2 | $ 1.89 |
Shares used to compute basic earnings per share | 161,350 | 165,725 | 168,246 |
Diluted earnings per common share | $ 2.03 | $ 1.96 | $ 1.85 |
Shares used to compute diluted earnings per share | 164,431 | 169,598 | 172,565 |
Dividends declared per common share | $ 0.54 | $ 0.50 | $ 0.46 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 333,817 | $ 331,655 | $ 318,713 |
Other comprehensive loss, net of tax: | |||
Foreign currency translation adjustments | (12,131) | (14,900) | (10,189) |
Unrealized holding (loss) gain on investments: | |||
Unrealized holding (losses) gains during the period, net of income taxes of $457, $822 and $(592) | (918) | (1,659) | 441 |
Less: reclassification adjustment for losses (gains) realized in net income, net of income taxes of $(201), $(76) and $319 | 384 | 164 | (634) |
Total other comprehensive loss, net of taxes | (12,665) | (16,395) | (10,382) |
Comprehensive income | $ 321,152 | $ 315,260 | $ 308,331 |
Consolidated Statements Of Com6
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized holding (losses) gains during the period, income taxes | $ 457 | $ 822 | $ (592) |
Reclassification adjustment for losses (gains) realized in net income, income taxes | $ (201) | $ (76) | $ 319 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] |
Beginning balance at Dec. 31, 2013 | $ 1,692 | $ 721,219 | $ 431,604 | $ 1,487 | |
Beginning balance, shares at Dec. 31, 2013 | 169,242 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Purchase and retirement of common stock | $ (79) | (25,345) | (252,933) | ||
Purchase and retirement of common stock, shares | (7,888) | ||||
Issuance of common stock under the employee stock purchase plan | $ 1 | 2,197 | |||
Issuance of common stock under the employee stock purchase plan, shares | 73 | ||||
Issuance of common stock upon exercise of stock options | $ 53 | 102,646 | |||
Issuance of common stock upon exercise of stock options, shares | 5,261 | 5,261 | |||
Stock-based compensation | $ (13,463) | 13,463 | |||
Tax benefit on stock options exercised | 20,435 | ||||
Net income | 318,713 | 318,713 | |||
Dividends declared ($0.54, $0.50 and $0.46 per share) | (77,158) | (77,158) | |||
Other comprehensive loss | (10,382) | (10,382) | |||
Total Equity at Dec. 31, 2014 | $ 1,247,613 | $ 1,667 | 834,615 | 420,226 | (8,895) |
Ending balance, shares at Dec. 31, 2014 | 166,688 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Purchase and retirement of common stock | $ (60) | (22,984) | (266,543) | ||
Purchase and retirement of common stock, shares | (5,951) | ||||
Issuance of common stock under the employee stock purchase plan | $ 1 | 2,798 | |||
Issuance of common stock under the employee stock purchase plan, shares | 69 | ||||
Issuance of common stock upon exercise of stock options | $ 29 | 62,716 | |||
Issuance of common stock upon exercise of stock options, shares | 2,927 | 2,927 | |||
Stock-based compensation | $ (17,312) | 17,312 | |||
Tax benefit on stock options exercised | 16,056 | ||||
Net income | 331,655 | 331,655 | |||
Dividends declared ($0.54, $0.50 and $0.46 per share) | (82,478) | (82,478) | |||
Other comprehensive loss | (16,395) | (16,395) | |||
Total Equity at Dec. 31, 2015 | $ 1,289,720 | $ 1,637 | 910,513 | 402,860 | (25,290) |
Ending balance, shares at Dec. 31, 2015 | 163,733 | 163,733 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Purchase and retirement of common stock | $ (66) | (28,306) | (266,002) | ||
Purchase and retirement of common stock, shares | (6,600) | ||||
Issuance of common stock under the employee stock purchase plan | $ 1 | 3,357 | |||
Issuance of common stock under the employee stock purchase plan, shares | 88 | ||||
Issuance of common stock upon exercise of stock options | $ 18 | 44,896 | |||
Issuance of common stock upon exercise of stock options, shares | 1,809 | 1,810 | |||
Stock-based compensation | $ (16,017) | 16,017 | |||
Tax benefit on stock options exercised | 8,984 | ||||
Net income | 333,817 | 333,817 | |||
Dividends declared ($0.54, $0.50 and $0.46 per share) | (86,657) | (86,657) | |||
Other comprehensive loss | (12,665) | (12,665) | |||
Total Equity at Dec. 31, 2016 | $ 1,303,114 | $ 1,590 | $ 955,461 | $ 384,018 | $ (37,955) |
Ending balance, shares at Dec. 31, 2016 | 159,031 | 159,031 |
Consolidated Statements Of Cha8
Consolidated Statements Of Changes In Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Dividends declared per common share | $ 0.54 | $ 0.50 | $ 0.46 |
Retained Earnings [Member] | |||
Dividends declared per common share | $ 0.54000 | $ 0.5000 | $ 0.46000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 333,817 | $ 331,655 | $ 318,713 |
Depreciation | 26,440 | 24,044 | 22,448 |
Amortization | 45,392 | 42,630 | 38,679 |
Equity in earnings of unconsolidated affiliates | (126,103) | (137,057) | (127,786) |
Distributions received from unconsolidated affiliate | 125,224 | 141,767 | 137,866 |
Stock-based compensation | 16,017 | 17,312 | 13,463 |
Provision for losses on receivables | (126) | (135) | 133 |
Deferred income tax expense | 4,794 | (1,394) | (3,330) |
Gain from sale of SEI AK | (2,791) | (2,791) | (5,582) |
Net realized (gain) loss from investments | (112) | 456 | (614) |
Change in other long-term liabilities | 3,248 | 1,070 | 1,720 |
Change in other assets | (1,917) | 783 | (5,886) |
Write off of capitalized and purchased software | 0 | 6,055 | 0 |
Other | 390 | (2,440) | (2,439) |
Decrease (increase) in Receivables from investment products | (13,663) | 295 | (9,029) |
Decrease (increase) in Receivables | (4,807) | (28,469) | (7,888) |
Decrease (increase) in Other current assets | (1,368) | (8,014) | (2,027) |
Increase (decrease) in Accounts payable | 1,455 | (5,441) | (6,283) |
Increase (decrease) in Accrued liabilities | 18,851 | 10,498 | 12,873 |
Increase (decrease) in Deferred revenue | 495 | 636 | (228) |
Total adjustments | 91,419 | 59,805 | 56,090 |
Net cash provided by operating activities | 425,236 | 391,460 | 374,803 |
Cash flows from investing activities: | |||
Decrease (increase) in restricted cash | 2,000 | 301 | (301) |
Additions to property and equipment | (31,397) | (44,465) | (28,469) |
Additions to capitalized software | (50,392) | (29,416) | (34,877) |
Purchases of marketable securities | (73,193) | (52,538) | (56,754) |
Prepayments and maturities of marketable securities | 54,141 | 38,551 | 38,973 |
Sales of marketable securities | 15,152 | 7,761 | 24,461 |
Other investing activities | 1,313 | (1,000) | (2,000) |
Receipt of contingent payment from sale of SEI AK | 2,791 | 2,791 | 5,582 |
Net cash used in investing activities | (79,585) | (78,015) | (53,385) |
Cash flows from financing activities: | |||
Purchase and retirement of common stock | (292,258) | (291,374) | (275,788) |
Proceeds from issuance of common stock | 48,272 | 65,543 | 104,897 |
Tax benefit on stock options exercised | 8,984 | 16,056 | 20,435 |
Payment of dividends | (84,686) | (80,030) | (74,294) |
Net cash used in financing activities | (319,688) | (289,805) | (224,750) |
Effect of exchange rate changes on cash and cash equivalents | (9,923) | (11,425) | (7,495) |
Net increase in cash and cash equivalents | 16,040 | 12,215 | 89,173 |
Cash and cash equivalents, beginning of year | 679,661 | 667,446 | 578,273 |
Cash and cash equivalents, end of year | 695,701 | 679,661 | 667,446 |
Interest paid | 531 | 460 | 458 |
Income taxes paid | 157,255 | 159,605 | 151,250 |
Non-cash financing activities | |||
Dividends declared but not paid | $ 44,596 | $ 42,625 | $ 40,178 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations SEI Investments Company (the Company), a Pennsylvania corporation, provides investment processing, investment management, and investment operations solutions to financial institutions, financial advisors, institutional investors, investment managers and ultra-high-net-worth families in the United States, Canada, the United Kingdom, continental Europe and other various locations throughout the world. Investment processing solutions consist of application and business process outsourcing services, professional services and transaction-based services. Revenues from investment processing solutions are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations, except for fees earned associated with trade execution services. Investment management programs consist of mutual funds, alternative investments and separate accounts. These include a series of money market, equity, fixed-income and alternative investment portfolios, primarily in the form of registered investment companies. The Company serves as the administrator and investment advisor for many of these products. Revenues from investment management programs are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Investment operations solutions offer investment managers support for traditional investment products such as mutual funds, collective investment trusts, exchange-traded funds, and institutional and separate accounts, by providing outsourcing services including fund and investment accounting, administration, reconciliation, investor servicing and client reporting. These solutions also provide support to managers focused on alternative investments who manage hedge funds, funds of hedge funds, private equity funds and real estate funds, across registered, partnership and separate account structures domiciled in the United States and overseas. Revenues from investment operations solutions are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and entities in which it holds a controlling financial interest. The Company determines whether it has a controlling financial interest either by its decision-making ability through voting interests or by the extent of the Company’s participation in the economic risks and rewards of the entity through variable interests. The Company’s principal subsidiaries are SEI Investments Distribution Co. (SIDCO), SEI Investments Management Corporation (SIMC), SEI Private Trust Company (SPTC), SEI Trust Company (STC), SEI Global Services, Inc. (SGSI) and SEI Investments (Europe) Limited (SIEL). All intercompany accounts and transactions have been eliminated. The Company accounts for investments in unconsolidated entities that are 20 percent to 50 percent owned or are 20 percent or less owned and have the ability to exercise significant influence over the operating and financial policies of the entity under the equity method of accounting. Under this method of accounting, the Company’s interest in the net assets of unconsolidated entities is reflected in Investment in unconsolidated affiliates on the accompanying Consolidated Balance Sheet and its interest in the earnings or losses of unconsolidated entities is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statement of Operations. Variable Interest Entities The Company has involvement with various variable interest entities (VIE or VIEs). These VIEs consist of LSV Employee Group III, LLC (LSV Employee Group III) and investment products established for clients created in the form of various types of legal entity structures. Effective January 1, 2016, the Company adopted the amendments contained in Accounting Standards Update (ASU) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02) which amends the current guidance for both the VIE and the voting interest entity (VOE) consolidation models. This guidance rescinds the indefinite deferral of the VIE guidance for investment companies that permitted application of the risks and rewards based approach. The adoption of ASU 2015-02 did not have any affect on the consolidated financial statements and related disclosures (See Note 3). Management’s Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company’s principal sources of revenues are: (1) asset management, administration and distribution fees earned based upon a contractual percentage of net assets under management or administration; (2) information processing and software servicing fees that are either recurring and primarily earned based upon the number of trust accounts being serviced or a percentage of the total average daily market value of our clients' assets processed on our platforms, or non-recurring and based upon project-oriented contractual agreements related to client implementations; and (3) transaction-based fees for providing trade-execution services. The Company’s revenues are based on contractual arrangements. Revenues are recognized in the periods in which the related services are performed provided that persuasive evidence of an agreement exists, the fee is fixed or determinable, and collectibility is reasonably assured. Cash received by the Company in advance of the performance of services is deferred and recognized as revenue when earned. Reimbursements received for out-of-pocket expenses incurred are recorded as revenue. Certain portions of the Company’s revenues require management’s consideration of the nature of the client relationship in determining whether to recognize as revenue the gross amount billed or net amount retained after payments are made to suppliers for certain services related to the product or service offering. For the majority of our services, we are the primary obligor responsible for fulfilling the performance obligations of the contract. In addition, we retain full discretion in establishing the price charged to the customer, control the nature, type, characteristics or specifications of the performance obligations identified in the contract, and assume all credit risk associated with the client. Based on the foregoing, fees received from our clients for these services are recorded as gross revenues and vendor costs are recorded as gross expenses. However, we are also party to certain arrangements whereby we are not the primary obligor responsible for fulfilling the performance obligations of the contract. Fees received for those arrangements are reported net of costs associated with the provision of those services. Cash and Cash Equivalents The Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents include $374,760 and $448,957 at December 31, 2016 and 2015 , respectively, primarily invested in SEI-sponsored open-ended money market mutual funds. The SEI-sponsored mutual funds are considered Level 1 assets. Restricted Cash Restricted cash includes $3,000 and $5,000 at December 31, 2016 and 2015 , respectively, segregated for regulatory purposes related to trade-execution services conducted by SIEL. Restricted cash also includes $500 at December 31, 2016 and 2015 segregated in special reserve accounts for the benefit of SIDCO customers in accordance with certain rules established by the Securities and Exchange Commission for broker-dealers. Allowances for Doubtful Accounts The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. Concentration of Credit Risk Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash equivalents and trade receivables. Cash equivalents are principally invested in short-term money market funds or placed with major banks and high-credit qualified financial institutions. Cash deposits maintained with institutions are in excess of federally insured limits. Concentrations of credit risk with respect to our receivables are limited due to the large number of clients and their dispersion across geographic areas. No single group or customer represents greater than ten percent of total accounts receivable. Property and Equipment Property and Equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. Construction in progress includes the cost of construction and other direct costs attributable to the construction. When property and equipment are retired or disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives using the straight line method for financial statement purposes. No provision for depreciation is made for construction in progress until such time as the relevant assets are completed and put into service. The Company uses other depreciation methods, generally accelerated, for tax purposes where appropriate. Buildings and building improvements are depreciated over 25 to 39 years . Equipment, purchased software and furniture and fixtures have useful lives ranging from 3 to 5 years . Amortization of leasehold improvements is computed using the straight line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. Marketable Securities The classification of investments in marketable securities is determined at the time of purchase and reevaluated at each balance sheet date. Debt and equity securities classified as available-for-sale are reported at fair value as determined by the most recently traded price of each security at the balance sheet date. Unrealized gains and losses, net of income taxes, are reported as a separate component of comprehensive income. SIDCO, the Company’s broker-dealer subsidiary, reports changes in fair value of marketable securities through current period earnings due to specialized accounting practices related to investments by broker-dealers. The Company records its investments in funds sponsored by LSV on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these securities are recognized in current period earnings. The specific identification method is used to compute the realized gains and losses on all of the Company’s marketable securities (See Note 6). The Company evaluates the realizable value of its marketable securities on a quarterly basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. Some of the factors considered in determining other-than-temporary impairment for equity securities include, but are not limited to, significant or prolonged declines in the fair value of the investments, the Company’s ability and intent to retain the investment for a period sufficient to allow the value to recover, and the financial condition of the investment. Some of the factors considered in determining other-than-temporary impairment for debt securities include, but are not limited to, the intent of management to sell the security, the likelihood that the Company will be required to sell the security before recovering its cost, and management’s expectation to recover the entire amortized cost basis of the security even if there is no intent to sell the security. Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used by the Company to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities without adjustment. The Company’s Level 1 assets primarily include investments in mutual funds sponsored by SEI that are quoted daily. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 financial assets consist of Government National Mortgage Association (GNMA) mortgage-backed securities, Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes and investment grade commercial paper. The investments in GNMA mortgage-backed securities were purchased for the sole purpose of satisfying applicable regulatory requirements imposed on our wholly-owned limited purpose federal thrift subsidiary, SPTC. The investments in FHLB and other U.S. government agency short-term notes and investment grade commercial paper were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment by management. The Company had no Level 3 financial assets at December 31, 2016 or 2015 . The fair value of an asset or liability may include inputs from more than one level in the fair value hierarchy. The lowest level of significant inputs used to value the asset or liability determines which level the asset or liability is classified in its entirety. Transfers between levels of the fair value hierarchy are reported at fair value as of the beginning of the period in which the transfers occur. See Note 5 for information on related disclosures regarding fair value measurements. Capitalized Software Costs incurred for the development of internal use software to be offered in a hosting arrangement is capitalized during the development stage of the software application. These costs include direct external and internal costs to design the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary and post-implementation stages of the software application are expensed as incurred. Costs associated with significant enhancements to a software application are capitalized while costs incurred to maintain existing software applications are expensed as incurred. The capitalization of software development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life. Amortization of capitalized software development costs begins when the product is ready for its intended use. Capitalized software development costs are amortized on a product-by-product basis using the straight-line method over the estimated economic life of the product or enhancement. The Company capitalized $50,392 , $29,416 and $34,877 of software development costs during 2016 , 2015 and 2014 , respectively. The Company's capitalized software development costs primarily relate to the further development of the SEI Wealth Platform SM (the Platform). The Company capitalized $39,785 , $24,515 and $34,877 of software development costs for significant enhancements to the Platform during 2016 , 2015 and 2014 , respectively. As of December 31, 2016 , the net book value of the Platform was $280,359 . The Platform has an estimated useful life of 15 years and a weighted average remaining life of 5.5 years . Amortization expense for the Platform was $45,047 , $42,401 and $38,357 in 2016 , 2015 and 2014 , respectively, and is included in Amortization expense on the accompanying Consolidated Statements of Operations. The Company currently expects to recognize approximately $48,166 in amortization expense related to the Platform each year from 2017 through 2021. The Company also capitalized $10,607 and $4,901 of software development costs during 2016 and 2015 , respectively, related to a new application for the Investment Managers segment. Capitalized software development costs in-progress at December 31, 2016 associated with the application were $15,508 . The application is not yet ready for use. The Company evaluates the carrying value of capitalized software development costs when circumstances indicate the carrying value may not be recoverable. The review of capitalized software development costs for impairment requires significant assumptions about operating strategies, underlying technologies utilized, and external market factors. External market factors include, but are not limited to, expected levels of competition, barriers to entry by potential competitors, stability in the target market and governmental regulations. During 2015, the Company determined that specific functionality within the Platform was no longer in use and wrote off $5,533 of previously capitalized software development costs reported under the Private Banks and Investment Advisors business segments. The expense associated with the write off is included in Facilities, supplies and other costs on the accompanying Consolidated Statement of Operations. The Company did not recognize any impairment charges related to its capitalized software development costs in 2016 or 2014 . Income Taxes The Company applies the asset and liability approach to account for income taxes whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Foreign Currency Translation The assets and liabilities and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. Assets and liabilities have been translated into U.S. dollars using the rates of exchange at the balance sheet dates. The results of operations have been translated into U.S. dollars at average exchange rates prevailing during the period. The resulting translation gain and loss adjustments are recorded as a separate component of comprehensive income. Transaction gains and losses from exchange rate fluctuations are included in the results of operations in the periods in which they occur. There were no material gains or losses from exchange rate fluctuations in 2016 , 2015 or 2014 . Earnings Per Common Share Basic earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the combination of the weighted average number of common shares outstanding and the dilutive potential common shares, such as stock options, outstanding during the period. The calculations of basic and diluted earnings per share for 2016 , 2015 and 2014 are: 2016 2015 2014 Net income $ 333,817 $ 331,655 $ 318,713 Shares used to compute basic earnings per common share 161,350,000 165,725,000 168,246,000 Dilutive effect of stock options 3,081,000 3,873,000 4,319,000 Shares used to compute diluted earnings per common share 164,431,000 169,598,000 172,565,000 Basic earnings per common share $ 2.07 $ 2.00 $ 1.89 Diluted earnings per common share $ 2.03 $ 1.96 $ 1.85 Employee stock options to purchase approximately 10,632,000 , 10,730,000 and 10,166,000 shares of common stock, with an average exercise price per share of $35.02 , $33.99 and $30.00 , were outstanding during 2016 , 2015 and 2014 , respectively, but not included in the computation of diluted earnings per common share because either the performance conditions have not been satisfied or would have been satisfied if the reporting date was the end of the contingency period or the option’s exercise price was greater than the average market price of the Company’s common stock and the effect on diluted earnings per common share would have been anti-dilutive (See Note 8). Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. The Company uses historical data to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest. The amount of stock-based compensation expense that is recognized in a given period is dependent upon management’s estimate of when the vesting targets are expected to be achieved. If this estimate proves to be inaccurate, the remaining amount of stock-based compensation expense could be accelerated, spread out over a longer period, or reversed (See Note 8). New Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The updated standard permits the use of either the retrospective or cumulative effect transition method. The FASB has recently issued several amendments to the standard, including principal versus agent guidance and identifying performance obligations. ASU 2014-09 currently becomes effective for the Company during the first quarter 2018. The Company continues to assess the impact ASU 2014-09 will have on its revenue arrangements with completion, including selecting a transition method, expected by the third quarter of 2017. The majority of the Company’s services are bundled together and provided and completed for the client on a monthly basis. The Company expects revenue for these services to continue to be recognized monthly because of the continuous transfer of control to the client. Therefore, the adoption of this ASU is not expected to have a material impact on the recognition of revenue for the majority of the fees recognized for the services provided. However, the Company believes the adoption of the new standard may affect the timing of the recognition of implementation fees recognized in Information processing and software servicing fees as well as fund conversion fees and other ancillary fees recognized in Asset management, administration and distribution fees. Transaction-based and trade execution fees are based on current period activity and is not expected to be affected by the adoption of ASU 2014-09. Due to the complexity of certain of our agreements, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms, and certain aspects may vary in some instances from recognition ratably over the contract term. The new standard also modified some of the principal and agent considerations which may result in changes to gross or net treatment of revenue and expenses but would not affect final net income. The Company is also evaluating its sales commission programs. Previously, sales commission costs were expensed at inception of a sales agreement but under the new standard will generally need to be capitalized and amortized over the period of contract performance. The new standard provides companies with alternative methods of adoption and the Company is in the process of determining the method of adoption, which depends in part upon completion of the evaluation of the remaining revenue arrangements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) that will significantly change the income statement impact of equity investments held by an entity, and the recognition of changes in fair value of financial liabilities when the fair value option is elected. ASU 2016-01 becomes effective for the Company during the first quarter 2018. The Company is continuing to assess all potential impacts the updated standard will have on its consolidated financial statements and related disclosures. Management currently believes the most significant impact will be the requirement to recognize all changes in fair value of available-for-sale equity securities in current period earnings. Previously, these changes in fair value were recognized as a separate component of comprehensive income. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02) requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The updated standard is effective for the Company beginning in the first quarter of 2019. Early adoption is permitted. The Company is currently evaluating the transition method that will be elected and the effect that the updated standard will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) requiring an entity to record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the income statement when stock awards vest or are settled. In addition, ASU 2016-09 eliminates anticipated windfalls and shortfalls that were included in the calculation of assumed proceeds for computing the dilutive effect of share-based payment awards in the calculation of diluted earnings per share. Cash flows related to excess tax benefits will be recorded as an operating cash flow rather than a financing activity and an entity may elect to either estimate the number of forfeitures or account for forfeitures as they occur. ASU 2016-09 became effective for the Company during the first quarter of 2017. The Company believes the primary impact of adoption will be the requirement to recognize all tax effects related to share-based payments in the provision for income taxes in the income statement rather than paid-in capital as well as additional amendments to the accounting for income taxes. This may increase volatility of the Company’s income tax expense. In addition, the dilutive effect from stock options outstanding will increase as a result of the adoption of ASU 2016-09. No adjustment to prior period reported diluted earnings per share amounts is permitted. The Company has elected to account for forfeitures as they occur when determining the amount of compensation cost to be recognized in each period as well as retroactively reflecting all tax benefits or deficiencies from stock option exercises as an operating activity for the periods prior to the date of adoption. The amendments to accounting for income taxes and the change in the policy for accounting for forfeitures will require an adjustment to retained earnings as of January 1, 2017, where the cumulative effect of these changes are required to be recorded. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) which requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU No. 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. ASU 2016-13 becomes effective for the Company during the first quarter of 2020. Early adoption is permitted. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-17, Interests Held through Related Parties That Are under Common Control (ASU 2016-17) which amends the consolidation guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. ASU 2016-17 became effective for the Company during the first quarter of 2017. The Company does not believe the adoption of ASU 2016-17 will have a material impact on its consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18) which requires restricted cash and cash equivalents to be included with cash and cash equivalents when reconciling beginning-of-period and end-of-period amounts shown on the statement of cash flows. Under this guidance, the statement of cash flows should explain the total change in cash balances, including amounts described as restricted. ASU 2016-18 becomes effective for the Company during the first quarter of 2018. The Company is currently evaluating the guidance in ASU 2016-18 but does not believe it will have a material impact on its consolidated financial statements and related disclosures. Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation. |
Investment In Unconsolidated Af
Investment In Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment In Unconsolidated Affiliates | Investment in Unconsolidated Affiliates LSV Asset Management The Company has an investment in the general partnership LSV Asset Management (LSV), a registered investment advisor that provides investment advisory services primarily to institutions, including pension plans and investment companies. LSV is currently an investment sub-advisor for a limited number of SEI-sponsored mutual funds. The Company accounts for its interest in LSV using the equity method because of its less than 50 percent ownership. The Company’s interest in the net assets of LSV is reflected in Investment in unconsolidated affiliates on the accompanying Consolidated Balance Sheets and its interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statements of Operations. At December 31, 2016 , the Company’s total investment in LSV was $50,459 . The Company’s proportionate share in the earnings of LSV was $126,103 , $138,407 and $140,211 in 2016 , 2015 and 2014 , respectively. The Company receives partnership distributions related to the earnings of LSV on a quarterly basis. As such, the Company considers these distribution payments as returns on investment rather than returns of the Company's original investment in LSV and has therefore classified the associated cash inflows as an operating activity on the Consolidated Statements of Cash Flows. The Company received partnership distribution payments from LSV of $125,224 , $141,767 and $137,866 in 2016 , 2015 and 2014 , respectively. These tables contain condensed financial information of LSV: Condensed Statement of Operations Year ended December 31, 2016 2015 2014 Revenues $ 399,462 $ 427,653 $ 422,064 Net income $ 323,381 $ 352,845 $ 356,824 Condensed Balance Sheets December 31, 2016 2015 Current assets $ 125,872 $ 127,225 Non-current assets 1,927 2,375 Total assets $ 127,799 $ 129,600 Current liabilities $ 39,303 $ 40,876 Partners’ capital 88,496 88,724 Total liabilities and partners’ capital $ 127,799 $ 129,600 In April 2016, LSV provided an interest in the partnership to select key employees which reduced the ownership percentage of each existing partner on a pro-rata basis. As a result, the Company's total partnership interest in LSV was reduced from approximately 39.2 percent to approximately 38.9 percent . Guaranty Agreement with LSV Employee Group III In October 2012, a group of existing employees of LSV formed a new limited liability company called LSV Employee Group III and agreed to purchase a portion of the partnership interest of existing LSV employees for $77,700 , of which $69,930 was financed through syndicated term loan facilities contained in a credit agreement with The PrivateBank and Trust Company. LSV Employee Group III owns the purchased partnership interest. The Company provided an unsecured guaranty for $45,000 of the obligations of LSV Employee Group III to the lenders through a guaranty agreement. In addition, LSV agreed to provide an unsecured guaranty for the remaining $24,930 of the obligations of LSV Employee Group III to the lenders through a separate guaranty agreement. In September 2014, LSV Employee Group III made the final principal payment related to the term loan guaranteed by LSV. With regard to the loan facility guaranteed by the Company, the lenders will have the right to seek payment from the Company in the event of a default by LSV Employee Group III. The loan facility has a five year term and will be repaid from the quarterly distributions of LSV. No principal payments were made by LSV Employee Group III on the loan facility guaranteed by the Company until the separate loan facility guaranteed by LSV was fully repaid. The Company’s direct interest in LSV was unchanged as a result of this transaction. The Company has determined that LSV Employee Group III is a VIE; however, the Company is not considered the primary beneficiary because it does not have the power to direct the activities that most significantly impact the economic performance of LSV Employee Group III either directly or through any financial responsibility from the guaranty. As of January 31, 2017 , the remaining unpaid principal balances of the term loan guaranteed by the Company was $5,657 . The Company, in its capacity as guarantor, currently has no obligation of payment relating to the term loan of LSV Employee Group III and, furthermore, fully expects that LSV Employee Group III will meet all of their future obligations regarding the term loan. |
Variable Interest Entities - In
Variable Interest Entities - Investment Products | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities Disclosure [Abstract] | |
Variable Interest Entities - Investment Products | Variable Interest Entities – Investment Products The Company or its affiliates have created numerous investment products for its clients in various types of legal entity structures. The Company serves as the Manager, Administrator and Distributor for these investment products and may also serve as the Trustee for some of the investment products. The Company receives asset management, distribution, administration and custodial fees for these services. Clients are the equity investors and participate in proportion to their ownership percentage in the net income or loss and net capital gains or losses of the products, and, on liquidation, will participate in proportion to their ownership percentage in the remaining net assets of the products after satisfaction of outstanding liabilities. The Company has concluded that it is not the primary beneficiary of the investment products and; therefore, is not required to consolidate any of the pooled investment vehicles for which it receives asset management, distribution, administration and custodial fees under the VIE model. The investment products either do not meet the definition of a VIE or the Company does not hold a variable interest in the investment products. Some of the investment products qualify for the money market scope exception, are limited partnerships which have substantive kick-out rights, or are investment products in which the Company’s asset management, distribution, administration and custodial fees are commensurate with the services provided and include fair terms and conditions. The Company acts as a fiduciary and does not hold any other interests other than insignificant seed money investments. For this reason, the Company also concluded that it is not required to consolidate the pooled investment vehicles under the VOE model. The Company is a party to expense limitation agreements with certain SEI-sponsored money market funds subject to Rule 2a-7 of the Investment Company Act of 1940 which establish a maximum level of ordinary operating expenses incurred by the fund in any fiscal year including, but not limited to, fees of the administrator or its affiliates. Under the terms of these agreements, the Company waived $41,227 , $55,713 and $54,083 in fees during 2016 , 2015 and 2014 , respectively. |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 12 Months Ended |
Dec. 31, 2016 | |
Items Included in Consolidated Statement of Financial Condition [Abstract] | |
Composition of Certain Financial Statement Captions | Composition of Certain Financial Statement Captions Receivables Receivables on the accompanying Consolidated Balance Sheets consist of: 2016 2015 Trade receivables $ 48,683 $ 47,179 Fees earned, not billed 168,971 154,919 Other receivables 10,826 21,574 228,480 223,672 Less: Allowance for doubtful accounts (523 ) (649 ) Receivables, net $ 227,957 $ 223,023 Fees earned, not billed represents receivables earned but unbilled and results from timing differences between services provided and contractual billing schedules. These billing schedules generally provide for fees to be billed on a quarterly basis. In addition, certain fees earned from investment operations services are calculated based on assets under administration that have a prolonged valuation process which delays billings to clients. Property and Equipment Property and Equipment on the accompanying Consolidated Balance Sheets consists of: 2016 2015 Buildings $ 152,171 $ 151,604 Equipment 106,759 86,941 Land 10,030 10,003 Purchased software 128,008 122,433 Furniture and fixtures 17,292 16,143 Leasehold improvements 15,175 15,393 Construction in progress 2,077 961 431,512 403,478 Less: Accumulated depreciation (285,322 ) (259,501 ) Property and Equipment, net $ 146,190 $ 143,977 Depreciation expense related to property and equipment for 2016 , 2015 and 2014 was $26,440 , $24,044 and $22,448 , respectively. During 2015, the Company determined that certain purchased software related to the SEI Wealth Platform is no longer in use and wrote off $522 of the software classified as Purchased software reported under the Private Banks business segment. The expense associated with the write off of the software is included in Facilities, supplies and other costs on the accompanying Consolidated Statement of Operations. Other Assets Other assets consist of long-term prepaid expenses, deposits, other investments at cost and various other assets. Amortization expense for certain other assets for 2016 , 2015 and 2014 was $345 , $229 and $227 , respectively. Accrued Liabilities Accrued Liabilities on the accompanying Consolidated Balance Sheets consist of: 2016 2015 Accrued employee compensation $ 79,735 $ 74,687 Accrued consulting, outsourcing and professional fees 24,428 21,575 Accrued sub-advisory, distribution and other asset management fees 41,666 32,674 Accrued dividend payable 44,596 42,625 Other accrued liabilities 50,100 46,026 Accrued liabilities $ 240,525 $ 217,587 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of the Company’s financial assets and liabilities, except for the Company's investment funds sponsored by LSV, is determined in accordance with the fair value hierarchy. The fair value of the Company’s Level 1 financial assets consist mainly of investments in open-ended mutual funds that are quoted daily. Level 2 financial assets consist of Government National Mortgage Association (GNMA) mortgage-backed securities held by the Company's wholly-owned limited purpose federal thrift subsidiary, SEI Private Trust Company (SPTC), Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes and investment grade commercial paper held by SIDCO. The financial assets held by SIDCO were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. The financial assets held by SPTC are debt securities issued by GNMA and are backed by the full faith and credit of the U.S. government. These securities were purchased for the sole purpose of satisfying applicable regulatory requirements and have maturity dates which range from 2020 to 2041 . The Company has retrospectively adopted ASU No. 2015-07, Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (ASU 2015-07) during 2016 for all periods presented. The fair value of the Company's investment funds sponsored by LSV is measured using the net asset value per share (NAV) as a practical expedient. The NAVs of the funds are calculated by the funds' independent custodian and are derived from the fair values of the underlying investments as of the reporting date. The funds allow for investor redemptions at the end of each calendar month. In accordance with ASU 2015-07, this investment has not been classified in the fair value hierarchy. The valuation of the Company's Level 2 financial assets held by SIDCO and SPTC are based upon securities pricing policies and procedures utilized by third-party pricing vendors. The Company had no Level 3 financial assets or liabilities at December 31, 2016 or 2015 . There were no transfers of financial assets between levels within the fair value hierarchy during 2016 . Valuation of GNMA, Other U.S. Government Agency Securities and Investment Grade Commercial Paper All of the Company's investments in GNMA, FHLB and other U.S. government agency securities and investment grade commercial paper are held in accounts at well-established financial institutions. The Company's selection of a financial institution for the purpose of purchasing securities considered a number of various factors including, but not limited to, securities pricing policies and procedures utilized by that financial institution. Each financial institution utilizes the services of independent pricing vendors. These vendors utilize evaluated and industry accepted pricing models that vary by asset class and incorporate available trade, bid and other market information to determine the fair value of the securities. The market inputs, listed in approximate order of priority, include: benchmark yields, reported trade, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company evaluated the information regarding the pricing methodologies and processes utilized by the independent pricing vendors during the selection process of the financial institution. The Company analyzed this information for the purpose of classifying the securities into the appropriate level within the fair value hierarchy and to ensure that each pricing model for each asset class provided the fair value of those specific securities in accordance with generally accepted accounting principles. The Company continually monitors the price of each security for any unanticipated deviations from the previously quoted price or deviations from anticipated changes in a security's price based upon an assessment of market factors and other factors relative to a specific issue expected to affect a security's price. In the event of any unanticipated deviations in a security's price, additional analysis is conducted which may include the comparison of the security's price as determined by other independent pricing vendors. The Company's investments in GNMA, FHLB and other U.S. government agency securities and investment grade commercial paper have been recorded at the prices provided by the independent pricing vendor without adjustment. The fair value of certain financial assets and liabilities of the Company was determined using the following inputs: Fair Value Measurements at Reporting Date Using December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets Equity available-for-sale securities $ 9,581 $ 9,581 $ — Fixed-income available-for-sale securities 74,452 — 74,452 Fixed-income securities owned 21,339 — 21,339 Investment funds sponsored by LSV (1) 4,858 $ 110,230 $ 9,581 $ 95,791 Fair Value Measurements at Reporting Date Using December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets Equity available-for-sale securities $ 10,657 $ 10,657 $ — Fixed-income available-for-sale securities 70,637 — 70,637 Fixed-income securities owned 21,235 — 21,235 Investment funds sponsored by LSV (1) 4,039 $ 106,568 $ 10,657 $ 91,872 (1) The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the accompanying Consolidated Balance Sheets (See Note 6). |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Investments Available For Sale Investments available for sale classified as non-current assets consist of: At December 31, 2016 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 7,357 $ 24 $ (996 ) $ 6,385 Equities and other mutual funds 2,968 228 — 3,196 Debt securities 74,843 — (391 ) 74,452 $ 85,168 $ 252 $ (1,387 ) $ 84,033 At December 31, 2015 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 8,474 $ — $ (742 ) $ 7,732 Equities and other mutual funds 2,857 68 — 2,925 Debt securities 70,308 329 — 70,637 $ 81,639 $ 397 $ (742 ) $ 81,294 Net unrealized holding losses at December 31, 2016 and 2015 were $836 (net of income tax benefit of $299 ) and $302 (net of income tax benefit of $43 ), respectively. These net unrealized losses are reported as a separate component of Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets. There were gross realized gains of $284 and gross realized losses of $869 from available-for-sale securities during 2016 . In 2015 , there were gross realized gains of $489 and gross realized losses of $729 from available-for-sale securities. There were gross realized gains of $1,401 and gross realized losses of $448 from available-for-sale securities during 2014 . Gains and losses from available-for-sale securities, including amounts reclassified from accumulated comprehensive income (loss), are reflected in Net gain (loss) from investments on the accompanying Consolidated Statements of Operations. Investments in Affiliated Funds The Company has an investment related to the startup of investment funds sponsored by LSV. The Company records this investment on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these funds are recognized in Net gain (loss) from investments on the accompanying Consolidated Statements of Operations. The investment primarily consists of U.S. dollar denominated funds that invests in equity securities of Canadian, Australian and Japanese companies. The underlying securities held by the funds are translated into U.S. dollars within the funds. The funds had a fair value of $4,858 and $4,039 at December 31, 2016 and 2015 , respectively. The Company recognized gains of $819 and losses of $389 and $326 from the change in fair value of the funds during 2016 , 2015 and 2014 , respectively. Securities Owned The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency and commercial paper securities with maturity dates less than one year. These investments are reflected as Securities owned on the accompanying Consolidated Balance Sheets. Due to specialized accounting practices applicable to investments by broker-dealers, the securities are reported at fair value and changes in fair value are recorded in current period earnings. The securities had a fair value of $21,339 and $21,235 at December 31, 2016 and 2015 , respectively. There were no material net gains or losses from the change in fair value of the securities during 2016 , 2015 and 2014 . |
Lines Of Credit
Lines Of Credit | 12 Months Ended |
Dec. 31, 2016 | |
Line of Credit Facility [Abstract] | |
Lines Of Credit | Lines of Credit On June 13, 2016 (the Closing Date), the Company entered into a new five-year $300,000 Credit Agreement (the Credit Facility) with Wells Fargo Bank, National Association (Wells Fargo) and a syndicate of other lenders. The Credit Facility is scheduled to expire in June 2021, at which time any aggregate principal amount of loans outstanding becomes payable in full. Any borrowings made under the Credit Facility will accrue interest at rates that, at the Company's option, are based on a base rate (the Base Rate) plus a premium that can range from 0.25 percent to 1.00 percent or the London InterBank Offered Rate (LIBOR) plus a premium that can range from 1.25 percent to 2.00 percent depending on the Company’s Leverage Ratio (a ratio of consolidated indebtedness to consolidated EBITDA for the four preceding fiscal quarters, all as defined in the related agreement). The Base Rate is defined as the highest of a) the Federal Funds Rate , as published by the Federal Reserve Bank of New York, plus 0.50 percent , b) the prime commercial lending rate of Wells Fargo, c) the applicable LIBOR plus 1.00 percent , or d) 0 percent . The Company also pays quarterly commitment fees based on the unused portion of the Credit Facility. The quarterly fees for the Credit Facility can range from 0.15 percent of the amount of the unused portion to 0.30 percent , depending on the Company’s Leverage Ratio. Certain wholly-owned subsidiaries of the Company have guaranteed the obligations of the Company under the agreement. The aggregate amount of the Credit Facility may be increased by an additional $100,000 under certain conditions set forth in the agreement. The Credit Facility contains covenants that restrict the ability of the Company to engage in mergers, consolidations, asset sales, investments, transactions with affiliates, or to incur liens, as defined in the agreement. In the event of a default under the Credit Facility, the Company would also be restricted from paying dividends on, or repurchasing, its common stock without the approval of the lenders. None of the covenants of the Credit Facility negatively affect the Company’s liquidity or capital resources. Upon the occurrence of certain financial or economic events, significant corporate events, or certain other events of default constituting an event of default under the Credit Facility, all loans outstanding may be declared immediately due and payable and all commitments under the agreement may be terminated. The Company had no borrowings under the Credit Facility at December 31, 2016 . The Company was in compliance with all covenants of the Credit Facility during 2016. Prior to entering into the Credit Facility, the Company maintained a $300,000 revolving line of credit through a Credit Agreement with Wells Fargo Bank, National Association, and a syndicate of other lenders (the 2012 Credit Facility). There was a commitment fee equal to 0.15 percent per annum on the daily unused portion of the facility charged to the Company. The 2012 Credit Facility contained covenants that restricted the ability of the Company to engage in mergers, consolidations, asset sales, investments, transactions with affiliates, or to incur liens, as defined in the agreement. The Company had no borrowings through the 2012 Credit Facility at December 31, 2015. None of the covenants of the 2012 Credit Facility negatively affected the Company’s liquidity or capital resources. The Company was in compliance with all covenants of the 2012 Credit Facility during 2016 while active. The Company incurred $531 , $483 and $458 in commitment fees relating to all lines of credit during 2016 , 2015 and 2014 , respectively, which are reflected in Interest expense on the accompanying Consolidated Statements of Operations. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Stock-Based Compensation The Company's active equity compensation plan, the 2014 Omnibus Equity Compensation Plan (the 2014 Plan), is the successor plan to the 2007 Equity Compensation Plan (the 2007 Plan) which was merged with and into the 2014 Plan in May 2014. The 2014 Plan provides for the grant of stock options, stock units, stock awards, stock appreciation rights, dividend equivalents and other stock-based awards. Outstanding grants under the 2007 Plan will continue according to the terms in effect before the plan merger, but the outstanding shares will be issued or transferred under the 2014 Plan. Permitted grantees under the 2014 Plan include employees, non-employee directors and consultants who perform services for the Company. The plan is administered by the Compensation Committee of the Board of Directors of the Company. The Company has only non-qualified stock options outstanding under the 2014 Plan. All outstanding stock options have performance-based vesting provisions that tie the vesting of stock options to the Company’s financial performance. The Company’s stock options vest at a rate of 50 percent when a specified diluted earnings per share target is achieved, and the remaining 50 percent when a second, higher-specified diluted earnings per share target is achieved. Options do not vest due to the passage of time but solely as a result of achievement of the financial vesting targets. Earnings per share targets are calculated exclusive of stock-based compensation expense, net of tax. The diluted earnings per share targets are established at time of grant and are measured annually on December 31. The amount of stock-based compensation expense is based upon management’s estimate of when the earnings per share targets may be achieved. If management’s estimate of the attainment of the earnings per share targets proves to be inaccurate, the remaining amount of stock-based compensation expense could be accelerated, spread out over a longer period, or reversed. This may cause volatility in the recognition of stock-based compensation expense in future periods and could materially affect the Company’s net income and net income per share. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair value of stock options on the date of grant using an option-pricing model is affected by the price of the Company’s common stock as well as other variables. These variables include expected stock price volatility over the term of the awards, actual and projected employee stock exercise behaviors, risk-free interest rate and expected dividends. The Company primarily uses historical data to estimate the variables used in the option-pricing model except expected volatility. The Company uses a combination of historical and implied volatility. The Company estimates forfeitures at the time of grant and may revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest. Stock-based compensation is amortized over the requisite service periods of the awards, which are generally the vesting periods. The weighted average fair value of the Company’s stock options granted during 2016 , 2015 and 2014 were $12.43 , $12.16 and $10.88 , respectively, using the following assumptions: 2016 2015 2014 Expected term (in years) 6.00 5.58 6.79 Expected volatility 25.44 % 23.86 % 26.98 % Expected dividend yield 1.10 % 1.00 % 1.15 % Risk-free interest rate 2.18 % 1.90 % 2.04 % The Company recognized stock-based compensation expense in its Consolidated Financial Statements in 2016 , 2015 and 2014 as follows: 2016 2015 2014 Stock-based compensation expense $ 16,017 $ 17,312 $ 13,463 Less: Deferred tax benefit (5,612 ) (6,107 ) (4,704 ) Stock-based compensation expense, net of tax $ 10,405 $ 11,205 $ 8,759 During 2016 and 2015, the Company revised its estimate of when some vesting targets were expected to be achieved. These changes in management’s estimate of stock-based compensation expense were not material in 2016 or 2015. As of December 31, 2016 , there was approximately 11,377,000 unvested employee stock options with an unrecognized compensation cost of $77,005 that the Company expects will vest and be expensed through 2022 with a weighted average period of 2.3 years . This table presents certain information relating to the Company’s stock option plans for 2016 , 2015 and 2014 : Number of Shares Weighted Avg. Price Balance as of December 31, 2013 23,637,000 $ 22.58 Granted 2,293,000 40.05 Exercised (5,261,000 ) 19.52 Expired or canceled (208,000 ) 28.83 Balance as of December 31, 2014 20,461,000 $ 25.26 Granted 2,005,000 53.34 Exercised (2,927,000 ) 21.44 Expired or canceled (302,000 ) 28.97 Balance as of December 31, 2015 19,237,000 $ 28.71 Granted 2,310,000 49.57 Exercised (1,809,000 ) 24.82 Expired or canceled (1,669,000 ) 30.86 Balance as of December 31, 2016 18,069,000 $ 31.57 Exercisable as of December 31, 2016 6,692,000 $ 21.28 Available for future grant as of December 31, 2016 25,156,000 As of December 31, 2015 and 2014 , there were 8,508,000 and 10,295,000 shares exercisable, respectively. The expiration dates for options outstanding at December 31, 2016 range from January 31, 2017 to December 13, 2026 with a weighted average remaining contractual life of 5.9 years . Upon exercise of stock options, the Company will issue new shares of its common shares. The Company does not hold any shares in treasury. The total intrinsic value of options exercised during 2016 and 2015 was $41,607 and $76,676 , respectively. The total options exercisable as of December 31, 2016 had an intrinsic value of $187,909 . The total options outstanding as of December 31, 2016 had an intrinsic value of $321,528 . The total intrinsic value for options outstanding and options exercisable is calculated as the difference between the market value of the Company’s common stock as of December 31, 2016 and the exercise price of the shares. The market value of the Company’s common stock as of December 30, 2016 was $49.36 as reported by the Nasdaq Stock Market, LLC. This table summarizes information relating to all options outstanding and exercisable at December 31, 2016 : Options Outstanding at December 31, 2016 Options Exercisable at December 31, 2016 Range of Exercise Prices (Per Share) Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Life (Years) Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Life (Years) $ 14.62 - 15.77 3,021,000 $ 15.27 3.70 1,980,000 $ 15.01 3.02 17.65 - 21.05 1,854,000 17.67 3.02 1,846,000 17.65 3.00 22.45 - 23.86 3,712,000 23.20 4.93 1,513,000 23.20 4.93 27.03 - 39.15 3,321,000 33.18 4.73 1,353,000 33.26 5.19 40.64 - 53.34 6,161,000 47.91 9.06 — — — 18,069,000 6,692,000 Employee Stock Purchase Plan The Company has an employee stock purchase plan that provides for offerings of common stock to eligible employees at a price equal to 85 percent of the fair market value of the stock at the end of the stock purchase period, as defined. The Company has reserved 15,600,000 shares for issuance under this plan. At December 31, 2016 , 11,891,000 cumulative shares have been issued. There were no material costs incurred by the Company related to the employee stock purchase plan in 2016 , 2015 and 2014 . Common Stock Buyback The Board of Directors, under multiple authorizations, has authorized the purchase of the Company’s common stock on the open market or through private transactions. As of December 31, 2016 , the Company had approximately $218,752 of authorization remaining for the purchase of common stock. The following table provides the total number of shares repurchased and the related total costs in 2016 , 2015 and 2014 : Year Total Number of Shares Repurchased Total Cost 2016 6,600,000 $ 294,374 2015 5,951,000 289,587 2014 7,888,000 278,357 The Company immediately retires its common stock when purchased. Upon retirement, the Company reduces Capital in excess of par value for the average capital per share outstanding and the remainder is charged against Retained earnings. If the Company reduces its Retained earnings to zero, any subsequent purchases of common stock will be charged entirely to Capital in excess of par value. Rights Agreement In December 2008, the Company’s Board of Directors declared a dividend distribution pursuant to a Rights Agreement (the Rights Agreement) which became effective on January 6, 2009. The purpose of the Rights Agreement is to deter coercive or unfair takeover tactics and to prevent a person or group (an Acquiring Person) from acquiring control of the Company without offering a fair price to all shareholders. Under the Rights Agreement, all common shareholders receive one Right for each common share outstanding. Each Right entitles the registered holder to purchase from the Company a unit consisting of one twenty-thousandths of a share of Series A Junior Participating Preferred Shares, $0.05 par value per share, or a combination of securities and assets of equivalent value, at a purchase price of $150.00 per unit, subject to adjustment. The Rights will become exercisable and trade separately from the common stock ten days following a public announcement that an Acquiring Person has beneficial ownership of more than 20 percent of the outstanding common stock of the Company or the commencement of a tender or exchange offer that would result in an Acquiring Person owning 20 percent or more of the outstanding common stock of the Company. Upon exercise, holders, other than an Acquiring Person, will have the right to purchase the common stock of the Company equal to twice the value of the exercise price of the Rights. In lieu of requiring payment of the purchase price upon exercise of the Rights following certain events, the Company may permit the holders simply to surrender the Rights, in which event they will be entitled to receive common shares and other property, as the case may be, with a value of 50 percent of what could be purchased by payment of the full purchase price. The Rights, which do not have voting rights, will expire on January 6, 2019, and may be redeemed by the Company any time until ten days following the announcement of an Acquiring Person at a price of $0.01 per Right. Cash Dividends On May 25, 2016 , the Board of Directors declared a cash dividend of $0.26 per share on the Company’s common stock, which was paid on June 22, 2016 , to shareholders of record on June 14, 2016 . On December 13, 2016 , the Board of Directors declared a cash dividend of $0.28 per share on the Company’s common stock, which was paid on January 6, 2017 , to shareholders of record on December 27, 2016 . The cash dividends declared in 2016 , 2015 and 2014 were $86,657 , $82,478 and $77,158 , respectively. The Board of Directors has indicated its intention to declare future cash dividends on a semiannual basis. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) consists of net income and other gains and losses affecting shareholders’ equity that are excluded from net income. Other comprehensive income (loss) includes unrealized gains and losses on available for sale securities and foreign currency translation adjustments. The Company presents other comprehensive income (loss) in its Consolidated Statements of Comprehensive Income. Components of Accumulated other comprehensive income (loss), net of tax, consisted of: Foreign Currency Translation Adjustments Unrealized Holding Gains (Losses) on Investments Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2014 $ 101 $ 1,386 $ 1,487 Other comprehensive loss before reclassifications (10,189 ) 441 (9,748 ) Amounts reclassified from accumulated other comprehensive income — (634 ) (634 ) Net current-period other comprehensive loss (10,189 ) (193 ) (10,382 ) Balance, December 31, 2014 $ (10,088 ) $ 1,193 $ (8,895 ) Other comprehensive loss before reclassifications (14,900 ) (1,659 ) (16,559 ) Amounts reclassified from accumulated other comprehensive loss — 164 164 Net current-period other comprehensive loss (14,900 ) (1,495 ) (16,395 ) Balance, December 31, 2015 $ (24,988 ) $ (302 ) $ (25,290 ) Other comprehensive loss before reclassifications (12,131 ) (918 ) (13,049 ) Amounts reclassified from accumulated other comprehensive loss — 384 384 Net current-period other comprehensive loss (12,131 ) (534 ) (12,665 ) Balance, December 31, 2016 $ (37,119 ) $ (836 ) $ (37,955 ) |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company has a tax-qualified defined contribution plan (the Plan). The Plan provides retirement benefits, including provisions for early retirement and disability benefits, as well as a tax-deferred savings feature. After satisfying certain requirements, participants are vested in employer contributions at the time the contributions are made. All Company contributions are discretionary and are made from available profits. The Company contributed $9,665 , $9,162 and $6,157 to the Plan in 2016 , 2015 and 2014 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company leases software, facilities, and data processing equipment under non-cancelable operating leases, some which contain escalation clauses for increased taxes and operating expenses. The Company has entered into maintenance agreements primarily for its data processing equipment. Rent expense, primarily related to user licenses for software, was $28,016 , $25,074 and $23,011 in 2016 , 2015 and 2014 , respectively. The aggregate noncancellable minimum commitments at December 31, 2016 are: 2017 $ 5,958 2018 6,406 2019 6,715 2020 5,127 2021 and thereafter 26,821 $ 51,027 In the ordinary course of business, the Company from time to time enters into contracts containing indemnification obligations of the Company. These obligations may require the Company to make payments to another party upon the occurrence of certain events including the failure by the Company to meet its performance obligations under the contract. These contractual indemnification provisions are often standard contractual terms of the nature customarily found in the type of contracts entered into by the Company. In many cases, there are no stated or notional amounts included in the indemnification provisions. There are no amounts reflected on the Consolidated Balance Sheets as of December 31, 2016 and 2015 related to these indemnifications. In the normal course of business, the Company is party to various claims and legal proceedings. SEI has been named in seven lawsuits filed in Louisiana courts; four of the cases also name SPTC as a defendant. The underlying allegations in all actions relate to the purported role of SPTC in providing back-office services to Stanford Trust Company. The complaints allege that SEI and SPTC participated in some manner in the sale of “certificates of deposit” issued by Stanford International Bank so as to be a “seller” of the certificates of deposit for purposes of primary liability under the Louisiana Securities Law or so as to be secondarily liable under that statute for sales of certificates of deposit made by Stanford Trust Company. Two of the actions also include claims for violations of the Louisiana Racketeering Act and possibly conspiracy, and a third also asserts claims of negligence, breach of contract, breach of fiduciary duty, violations of the uniform fiduciaries law, negligent misrepresentation, detrimental reliance, violations of the Louisiana Racketeering Act, and conspiracy. The procedural status of the seven cases varies. The Lillie case, filed originally in the 19th Judicial District Court for the Parish of East Baton Rouge, was brought as a class action and is procedurally the most advanced of the cases. SEI and SPTC filed exceptions, which the Court granted in part, dismissing claims under the Louisiana Unfair Trade Practices Act and permitting the claims under the Louisiana Securities Law to go forward. On March 11, 2013, newly-added insurance carrier defendants removed the case to the United States District Court for the Middle District of Louisiana. On August 7, 2013, the Judicial Panel on Multidistrict Litigation transferred the matter to the Northern District of Texas where MDL 2099, In re: Stanford Entities Securities Litigation (“the Stanford MDL”), is pending. On September 22, 2015, the District Court on the motion of SEI and SPTC dismissed plaintiffs’ claims for primary liability under Section 714(A) of the Louisiana Securities Law, but declined to dismiss plaintiffs’ claims for secondary liability under Section 714(B) of the Louisiana Securities Law based on the allegations pled by plaintiffs. On November 4, 2015, the District Court granted SEI and SPTC's motion to dismiss plaintiffs' claims under Section 712(D) of the Louisiana Securities Law. Consequently, the only claims of plaintiffs still pending before the District Court in Lillie are plaintiffs' claims for secondary liability against SEI and SPTC under Section 714(B) of the Louisiana Securities Law. On May 2, 2016, the District Court certified the class as being "all persons for whom Stanford Trust Company purchased or renewed Stanford Investment Bank Limited certificates of deposit in Louisiana between January 1, 2007 and February 13, 2009". Notice of the pendency of the class action was mailed to potential class members on October 4, 2016. On December 1, 2016, a group of plaintiffs who opted out of the Lillie class filed a complaint against SEI and SPTC in the United States District Court in the Middle District of Louisiana, alleging claims essentially the same as those in Lillie . In January 2017, the Judicial Panel on Multidistrict Litigation transferred the proceeding to the Northern District of Texas and the Stanford MDL. SEI’s response to the Complaint is expected to be filed during the first quarter of 2017. Another one of the cases, filed in the 23rd Judicial District Court for the Parish of Ascension, also was removed to federal court and transferred by the Judicial Panel on Multidistrict Litigation to the Northern District of Texas and the Stanford MDL. The schedule for responding to that Complaint has not yet been established. The plaintiffs in two of the cases remaining in the Parish of East Baton Rouge have granted SEI and SPTC indefinite extensions to respond to the petitions. In the two additional cases, filed in East Baton Rouge and brought by the same counsel who filed the Lillie action, virtually all of the litigation to date has involved motions practice and appellate litigation regarding the existence of federal subjection matter jurisdiction under the federal Securities Litigation Uniform Standards Act (SLUSA). After the matter was removed to the United States District Court for the Northern District of Texas, that court dismissed the action under SLUSA. The Court of Appeals for the Fifth Circuit reversed that order, and the Supreme Court of the United States affirmed the Court of Appeals judgment on February 26, 2014. The matter was remanded to state court and no material activity has taken place since that date. While the outcome of this litigation remains uncertain, SEI and SPTC believe that they have valid defenses to plaintiffs' claims and intend to defend the lawsuits vigorously. Because of uncertainty in the make-up of the Lillie class, the specific theories of liability that may survive a motion for summary judgment or other dispositive motion, the relative lack of discovery regarding damages, causation, mitigation and other aspects that may ultimately bear upon loss, the Company is not reasonably able to provide an estimate of loss, if any, with respect to the foregoing lawsuits. On November 26, 2014, a Writ of Summons was issued to two of our subsidiaries, SEI Investments - Global Fund Services Limited (GFSL) and SEI Investments - Depositary & Custodial Services (Ireland) Limited (D&C), to appear before the Court of First Instance Antwerp, Belgium. The plaintiffs in this case allege that through their initial investments in collective investment funds domiciled in Netherlands and subsequent transfer of claim rights to a Belgium domiciled partnership, they are beneficial owners of a portfolio of life settlement policies (the Portfolio) which lapsed due to a failure to make premium payments. The plaintiffs seek to recover jointly and severally from nine defendants including GFSL and D&C, damages of approximately $84 million. GFSL and D&C’s involvement in the litigation appears to arise out of their historical provision of administration and custody services, respectively, to the Strategic Life Settlement Fund PLC, who, together with its managers, appear to be the principal defendants in this claim. On December 4, 2015, the Belgium Court dismissed plaintiff's claims for a lack of jurisdiction. On December 22, 2015, the plaintiffs appealed the dismissal. The appeal is still pending. While the outcome of this action is uncertain given its early phase and the lack of specific theories of liability asserted against GFSL and D&C, each of GFSL and D&C believe that they have valid defenses to plaintiffs’ claims and intend to defend the lawsuit vigorously, and GFSL and D&C are not reasonably able to provide an estimate of the ultimate loss, if any, with respect to this lawsuit. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The federal and state and foreign income tax provision is summarized as follows: Year Ended December 31, 2016 2015 2014 Current Federal $ 158,411 $ 159,774 $ 155,273 State 10,500 7,756 8,744 Foreign 5,137 5,224 5,254 174,048 172,754 169,271 Deferred Federal 788 (5,343 ) 1,667 State (168 ) 1,414 11 620 (3,929 ) 1,678 Total income taxes $ 174,668 $ 168,825 $ 170,949 Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ materially from the amount accrued. The examination and the resolution process may last longer than one year. The components of Income before income taxes are summarized as follows: Year Ended December 31, 2016 2015 2014 Domestic $ 481,760 $ 472,384 $ 475,175 Foreign 26,725 28,096 14,487 $ 508,485 $ 500,480 $ 489,662 The effective income tax rate differs from the federal income tax statutory rate due to the following: Year Ended December 31, 2016 2015 2014 Statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal tax benefit 1.3 1.6 1.2 Foreign tax expense and tax rate differential (0.8 ) (1.2 ) (0.7 ) Research and development tax credit (0.8 ) (0.6 ) (0.4 ) Domestic Production Activities Deduction (0.6 ) (0.6 ) (0.4 ) Net change in uncertain tax positions — — 0.3 Settlement of state tax petition — (0.8 ) — Other, net 0.2 0.3 (0.1 ) 34.3 % 33.7 % 34.9 % The decrease in the Company's effective income tax rate in 2015 was primarily due to a one-time reduction resulting from a favorable settlement of a tax petition filed with the State of Pennsylvania relating to the apportionment methodology of net income for prior years. Undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $106,122 at December 31, 2016 . Those earnings are considered to be indefinitely reinvested and, accordingly, no U.S. federal and state income taxes have been provided thereon. Upon distribution of those earnings, in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes, subject to an adjustment for foreign tax credits, and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable because of the complexities associated with its hypothetical calculation, including the availability, or lack thereof, of foreign tax credits to reduce a portion of the U.S. liability. Deferred income taxes for 2016 , 2015 and 2014 reflect the impact of temporary differences between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. Significant components of our deferred tax assets and liabilities at December 31, 2016 and 2015 are as follows: Year Ended December 31, 2016 2015 Deferred Tax Assets: Stock-based compensation expense $ 33,459 $ 34,739 Foreign and state net operating loss carryforward 20,049 19,580 Basis differences in investments 6,165 6,439 Federal benefit of state tax deduction for uncertain tax positions 3,647 3,014 Revenue and expense recognized in different periods for financial reporting and income tax purposes 5,022 4,675 Other assets 813 1,793 Total deferred income tax assets 69,155 70,240 Less: valuation allowance (17,922 ) (14,548 ) Net deferred income tax assets $ 51,233 $ 55,692 Deferred Tax Liabilities: Capitalized software currently deductible for tax purposes, net of amortization $ (107,897 ) $ (111,174 ) Difference in financial reporting and income tax depreciation methods (5,190 ) (2,695 ) Difference between book and tax basis of other assets (4,597 ) (4,294 ) Other liabilities (1,115 ) (557 ) Total deferred income tax liabilities $ (118,799 ) $ (118,720 ) Net deferred income tax liabilities $ (67,566 ) $ (63,028 ) The valuation allowances against deferred tax assets at December 31, 2016 and 2015 are related to state net operating losses from certain domestic subsidiaries as well as foreign net operating losses from certain foreign subsidiaries. Certain state and foreign tax statutes significantly limit the utilization of net operating losses for domestic and foreign subsidiaries. Furthermore, these net operating losses cannot be used to offset the net income of other subsidiaries. The Company recognizes uncertain tax positions in accordance with the applicable accounting guidance and adjusts these liabilities when management’s judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities. The Company’s total unrecognized tax benefit, not including interest and penalties, as of December 31, 2016 was $17,287 , of which $14,868 would affect the effective tax rate if the Company were to recognize the tax benefit. The gross amount of uncertain tax liability of $3,866 which is expected to be paid within one year is netted against the current payable account while the remaining amount of $14,645 is included in Other long-term liabilities on the accompanying Consolidated Balance Sheets. During the year ended December 31, 2016 , the Company recognized $2,370 of previously unrecognized tax benefits relating to the lapse of the statute of limitation. The Company files a consolidated federal income tax return and separate income tax returns with various states. Certain subsidiaries of the Company file tax returns in foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examination for years before 2013 and is no longer subject to state, local or foreign income tax examinations by authorities for years before 2009. A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: 2016 2015 2014 Balance as of January 1 $ 14,517 $ 14,018 $ 12,028 Tax positions related to current year: Gross additions 3,756 1,954 1,957 Tax positions related to prior years: Gross additions 1,762 297 1,369 Settlements (378 ) — — Lapses on statute of limitations (2,370 ) (1,752 ) (1,336 ) Balance as of December 31 $ 17,287 $ 14,517 $ 14,018 The above reconciliation of the gross unrecognized tax benefit will differ from the amount which would affect the effective tax rate because of the recognition of the federal and state tax benefits. The Company classifies all interest and penalties as income tax expense. The Company has recorded $1,227 , $1,391 and $1,066 in liabilities for tax-related interest and penalties in 2016 , 2015 and 2014 , respectively. The Company estimates it will recognize $3,866 of unrecognized tax benefits within the next twelve months due to lapses on the statute of limitation. The Company includes its direct and indirect subsidiaries in its U.S. consolidated federal income tax return. The Company’s tax sharing allocation agreement provides that any subsidiary having taxable income will pay a tax liability equivalent to what that subsidiary would have paid if it filed a separate income tax return. If the separately calculated federal income tax provision for any subsidiary results in a tax loss, the current benefit resulting from such loss, to the extent utilizable on a separate return basis, is accrued and paid to that subsidiary. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company’s reportable business segments are: Private Banks – provides investment processing and investment management programs to banks and trust institutions, independent wealth advisers and financial advisors worldwide; Investment Advisors – provides investment management programs to affluent investors through a network of independent registered investment advisors, financial planners and other investment professionals in the United States; Institutional Investors – provides investment management programs and administrative outsourcing solutions to retirement plan sponsors, hospitals and not-for-profit organizations worldwide; Investment Managers – provides investment operations outsourcing solutions to fund companies, banking institutions and both traditional and non-traditional investment managers worldwide; and Investments in New Businesses – focuses on providing investment management programs to ultra-high-net-worth families residing in the United States; developing internet-based investment services and advice solutions; entering new markets; and conducting other research and development activities. In 2016 , 2015 and 2014 , no single customer accounted for more than ten percent of revenues in any business segment. The following tables highlight certain financial information about each of the Company’s business segments for the years ended December 31, 2016 , 2015 and 2014 : Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2016 Revenues $ 457,886 $ 330,677 $ 312,584 $ 294,390 $ 6,008 $ 1,401,545 Expenses 421,188 180,140 153,117 191,127 20,962 966,534 Operating profit (loss) $ 36,698 $ 150,537 $ 159,467 $ 103,263 $ (14,954 ) $ 435,011 Gain on sale of subsidiary 2,791 — — — — 2,791 Total profit (loss) $ 39,489 $ 150,537 $ 159,467 $ 103,263 $ (14,954 ) $ 437,802 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2015 Revenues $ 456,516 $ 306,620 $ 297,568 $ 267,963 $ 5,541 $ 1,334,208 Expenses 410,975 171,968 145,851 172,094 20,656 921,544 Operating profit (loss) $ 45,541 $ 134,652 $ 151,717 $ 95,869 $ (15,115 ) $ 412,664 Gain on sale of subsidiary 2,791 — — — — 2,791 Total profit (loss) $ 48,332 $ 134,652 $ 151,717 $ 95,869 $ (15,115 ) $ 415,455 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2014 Revenues $ 441,467 $ 283,811 $ 284,677 $ 251,310 $ 4,740 $ 1,266,005 Expenses 399,620 146,500 140,659 159,176 18,377 864,332 Operating profit (loss) $ 41,847 $ 137,311 $ 144,018 $ 92,134 $ (13,637 ) $ 401,673 Gain on sale of subsidiary 5,582 — — — — 5,582 Total profit (loss) $ 47,429 $ 137,311 $ 144,018 $ 92,134 $ (13,637 ) $ 407,255 A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of Operations for the years ended December 31, 2016 , 2015 and 2014 is as follows: Year Ended December 31, 2016 2015 2014 Total operating profit from segments above $ 435,011 $ 412,664 $ 401,673 Corporate overhead expenses (59,317 ) (54,451 ) (48,889 ) Income from operations $ 375,694 $ 358,213 $ 352,784 The following tables provide additional information for the years ended December 31, 2016 , 2015 and 2014 pertaining to our business segments: Capital Expenditures (1) Depreciation Year Ended December 31, 2016 2015 2014 2016 2015 2014 Private Banks $ 45,940 $ 41,972 $ 30,883 $ 13,222 $ 12,348 $ 13,393 Investment Advisors 17,610 13,206 13,783 3,880 3,410 2,507 Institutional Investors 4,319 5,301 4,575 1,367 1,200 1,041 Investment Managers 11,209 10,119 9,505 4,877 4,040 2,917 Investments in New Businesses 726 736 2,547 2,197 2,278 1,983 Total from business segments $ 79,804 $ 71,334 $ 61,293 $ 25,543 $ 23,276 $ 21,841 Corporate Overhead 1,985 2,547 2,053 897 768 607 $ 81,789 $ 73,881 $ 63,346 $ 26,440 $ 24,044 $ 22,448 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization Year Ended December 31, 2016 2015 2014 Private Banks $ 31,675 $ 29,819 $ 24,993 Investment Advisors 10,458 9,880 9,228 Institutional Investors 1,674 1,558 1,430 Investment Managers 1,092 1,029 954 Investments in New Businesses 146 116 1,846 Total from business segments $ 45,045 $ 42,402 $ 38,451 Corporate Overhead 347 228 228 $ 45,392 $ 42,630 $ 38,679 Total Assets 2016 2015 Private Banks $ 471,435 $ 451,079 Investment Advisors 160,717 138,459 Institutional Investors 109,879 105,443 Investment Managers 158,621 154,432 Investments in New Businesses 4,910 5,355 Total from business segments $ 905,562 $ 854,768 Corporate Overhead (2) 731,261 733,860 $ 1,636,823 $ 1,588,628 (2) Unallocated assets primarily consist of cash and cash equivalents, marketable securities, and certain other shared services assets. The following table presents revenues based on the location of the use of the products or services: For the Year Ended December 31, 2016 2015 2014 United States $ 1,191,640 $ 1,123,165 $ 1,063,223 International operations 209,905 211,043 202,782 $ 1,401,545 $ 1,334,208 $ 1,266,005 The following table presents assets based on their location: 2016 2015 United States $ 1,317,235 $ 1,330,738 International operations 319,588 257,890 $ 1,636,823 $ 1,588,628 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company, either by itself or through its wholly-owned subsidiaries, serves as the sponsor, administrator, investment advisor, distributor and shareholder servicer for SEI-sponsored investment products. These investment products are offered to clients of the Company and its subsidiaries. Fees earned by the Company for the related services are recognized pursuant to the provisions of investment advisory, fund administration, distribution, and shareholder services agreements directly with the investment products. These fees totaled $431,318 , $426,301 and $411,206 in 2016 , 2015 and 2014 , respectively, and are reflected in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. The Company also serves as an introducing broker-dealer for securities transactions of SEI-sponsored investment products. The Company recognized $561 , $365 and $2,332 in commissions during 2016 , 2015 and 2014 , respectively. These fees are reflected in Transaction-based and trade execution fees on the accompanying Consolidated Statements of Operations. Receivables from investment products on the accompanying Consolidated Balance Sheets primarily represent fees receivable for distribution, investment advisory, and administration services to various investment products sponsored by SEI. |
Sale of SEI Asset Korea
Sale of SEI Asset Korea | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of SEI Asset Korea | Sale of SEI Asset Korea On July 31, 2012, the Company, MetLife International Holdings, Inc. (MetLife) and International Finance Corporation (IFC) entered into a definitive agreement with Baring Asset Management Limited (Barings) to sell all ownership interest in SEI Asset Korea (SEI AK). SEI AK was located in South Korea and provided domestic equity and fixed-income investment management services to financial institutions and pension funds. On March 28, 2013, all conditions subject to closing the transaction were satisfied and all ownership interests in SEI AK were transferred to Barings. Under the terms of the agreement, a portion of the purchase price was paid upon closing with up to an additional $11,220 payable to the Company as a contingent purchase price with respect to three one-year periods ending on December 31, 2013, 2014 and 2015 depending upon whether SEI AK achieves specified revenue measures during such periods. The Company recognized a pre-tax gain of $5,582 , or $0.02 diluted earnings per share, during 2014 and a pre-tax gain of $2,791 , or $0.01 diluted earnings per share, during 2015 and 2016. The Company's gains from the sale of SEI AK are included in Gain on sale of subsidiary on the accompanying Consolidated Statement of Operations. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (Unaudited) For the Three Months Ended 2016 March 31 June 30 September 30 December 31(1) Revenues $ 334,263 $ 343,831 $ 354,641 $ 368,810 Income before income taxes $ 119,638 $ 124,904 $ 130,890 $ 133,053 Net income $ 77,497 $ 81,005 $ 86,704 $ 88,611 Basic earnings per share $ 0.48 $ 0.50 $ 0.54 $ 0.55 Diluted earnings per share (2) $ 0.47 $ 0.49 $ 0.53 $ 0.55 Effective income tax rate 35.2 % 35.2 % 33.8 % 33.4 % (1) During the fourth quarter 2016, the Company recognized a performance fee of $12,286 and a corresponding sub-advisory expense of $6,143 associated with an SEI-sponsored investment product. These items resulted in an after-tax net profit of $4,091 , or $0.03 diluted earnings per share. (2) The sum of the individual quarterly earnings per share amounts may not agree with the annual earnings per share amount as each quarterly computation is based on the weighted average number of shares outstanding during that period. For the Three Months Ended 2015 March 31 June 30 September 30 December 31 Revenues $ 325,444 $ 337,745 $ 335,622 $ 335,397 Income before income taxes $ 131,000 $ 133,810 $ 120,588 $ 115,082 Net income $ 84,611 $ 86,240 $ 79,425 $ 81,379 Basic earnings per share $ 0.51 $ 0.52 $ 0.48 $ 0.49 Diluted earnings per share $ 0.50 $ 0.51 $ 0.47 $ 0.48 Effective income tax rate 35.4 % 35.6 % 34.1 % 29.3 % |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts And Reserves | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | Year Ended December 31, Additions Description Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts (Deductions) Balance at End of Year Allowance for doubtful accounts: 2016 $ 649 $ — $ — $ (126 ) $ 523 2015 784 — — (135 ) 649 2014 651 133 — — 784 Deferred income tax valuation allowance: 2016 $ 14,548 $ — $ 3,374 $ — $ 17,922 2015 16,509 (1,142 ) (819 ) — 14,548 2014 14,738 — 1,771 — 16,509 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and entities in which it holds a controlling financial interest. The Company determines whether it has a controlling financial interest either by its decision-making ability through voting interests or by the extent of the Company’s participation in the economic risks and rewards of the entity through variable interests. The Company’s principal subsidiaries are SEI Investments Distribution Co. (SIDCO), SEI Investments Management Corporation (SIMC), SEI Private Trust Company (SPTC), SEI Trust Company (STC), SEI Global Services, Inc. (SGSI) and SEI Investments (Europe) Limited (SIEL). All intercompany accounts and transactions have been eliminated. The Company accounts for investments in unconsolidated entities that are 20 percent to 50 percent owned or are 20 percent or less owned and have the ability to exercise significant influence over the operating and financial policies of the entity under the equity method of accounting. Under this method of accounting, the Company’s interest in the net assets of unconsolidated entities is reflected in Investment in unconsolidated affiliates on the accompanying Consolidated Balance Sheet and its interest in the earnings or losses of unconsolidated entities is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statement of Operations. |
Variable Interest Entities | Variable Interest Entities The Company has involvement with various variable interest entities (VIE or VIEs). These VIEs consist of LSV Employee Group III, LLC (LSV Employee Group III) and investment products established for clients created in the form of various types of legal entity structures. Effective January 1, 2016, the Company adopted the amendments contained in Accounting Standards Update (ASU) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02) which amends the current guidance for both the VIE and the voting interest entity (VOE) consolidation models. This guidance rescinds the indefinite deferral of the VIE guidance for investment companies that permitted application of the risks and rewards based approach. The adoption of ASU 2015-02 did not have any affect on the consolidated financial statements and related disclosures (See Note 3). |
Management's Use of Estimates | Management’s Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company’s principal sources of revenues are: (1) asset management, administration and distribution fees earned based upon a contractual percentage of net assets under management or administration; (2) information processing and software servicing fees that are either recurring and primarily earned based upon the number of trust accounts being serviced or a percentage of the total average daily market value of our clients' assets processed on our platforms, or non-recurring and based upon project-oriented contractual agreements related to client implementations; and (3) transaction-based fees for providing trade-execution services. The Company’s revenues are based on contractual arrangements. Revenues are recognized in the periods in which the related services are performed provided that persuasive evidence of an agreement exists, the fee is fixed or determinable, and collectibility is reasonably assured. Cash received by the Company in advance of the performance of services is deferred and recognized as revenue when earned. Reimbursements received for out-of-pocket expenses incurred are recorded as revenue. Certain portions of the Company’s revenues require management’s consideration of the nature of the client relationship in determining whether to recognize as revenue the gross amount billed or net amount retained after payments are made to suppliers for certain services related to the product or service offering. For the majority of our services, we are the primary obligor responsible for fulfilling the performance obligations of the contract. In addition, we retain full discretion in establishing the price charged to the customer, control the nature, type, characteristics or specifications of the performance obligations identified in the contract, and assume all credit risk associated with the client. Based on the foregoing, fees received from our clients for these services are recorded as gross revenues and vendor costs are recorded as gross expenses. However, we are also party to certain arrangements whereby we are not the primary obligor responsible for fulfilling the performance obligations of the contract. Fees received for those arrangements are reported net of costs associated with the provision of those services. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. |
Allowance for Doubtful Accounts | Allowances for Doubtful Accounts The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash equivalents and trade receivables. Cash equivalents are principally invested in short-term money market funds or placed with major banks and high-credit qualified financial institutions. Cash deposits maintained with institutions are in excess of federally insured limits. Concentrations of credit risk with respect to our receivables are limited due to the large number of clients and their dispersion across geographic areas. No single group or customer represents greater than ten percent of total accounts receivable. |
Property and Equipment | Property and Equipment Property and Equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. Construction in progress includes the cost of construction and other direct costs attributable to the construction. When property and equipment are retired or disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives using the straight line method for financial statement purposes. No provision for depreciation is made for construction in progress until such time as the relevant assets are completed and put into service. The Company uses other depreciation methods, generally accelerated, for tax purposes where appropriate. Buildings and building improvements are depreciated over 25 to 39 years . Equipment, purchased software and furniture and fixtures have useful lives ranging from 3 to 5 years . Amortization of leasehold improvements is computed using the straight line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. |
Marketable Securities | Marketable Securities The classification of investments in marketable securities is determined at the time of purchase and reevaluated at each balance sheet date. Debt and equity securities classified as available-for-sale are reported at fair value as determined by the most recently traded price of each security at the balance sheet date. Unrealized gains and losses, net of income taxes, are reported as a separate component of comprehensive income. SIDCO, the Company’s broker-dealer subsidiary, reports changes in fair value of marketable securities through current period earnings due to specialized accounting practices related to investments by broker-dealers. The Company records its investments in funds sponsored by LSV on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these securities are recognized in current period earnings. The specific identification method is used to compute the realized gains and losses on all of the Company’s marketable securities (See Note 6). The Company evaluates the realizable value of its marketable securities on a quarterly basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. Some of the factors considered in determining other-than-temporary impairment for equity securities include, but are not limited to, significant or prolonged declines in the fair value of the investments, the Company’s ability and intent to retain the investment for a period sufficient to allow the value to recover, and the financial condition of the investment. Some of the factors considered in determining other-than-temporary impairment for debt securities include, but are not limited to, the intent of management to sell the security, the likelihood that the Company will be required to sell the security before recovering its cost, and management’s expectation to recover the entire amortized cost basis of the security even if there is no intent to sell the security. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used by the Company to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities without adjustment. The Company’s Level 1 assets primarily include investments in mutual funds sponsored by SEI that are quoted daily. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 financial assets consist of Government National Mortgage Association (GNMA) mortgage-backed securities, Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes and investment grade commercial paper. The investments in GNMA mortgage-backed securities were purchased for the sole purpose of satisfying applicable regulatory requirements imposed on our wholly-owned limited purpose federal thrift subsidiary, SPTC. The investments in FHLB and other U.S. government agency short-term notes and investment grade commercial paper were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment by management. The Company had no Level 3 financial assets at December 31, 2016 or 2015 . The fair value of an asset or liability may include inputs from more than one level in the fair value hierarchy. The lowest level of significant inputs used to value the asset or liability determines which level the asset or liability is classified in its entirety. Transfers between levels of the fair value hierarchy are reported at fair value as of the beginning of the period in which the transfers occur. |
Capitalized Software | Capitalized Software Costs incurred for the development of internal use software to be offered in a hosting arrangement is capitalized during the development stage of the software application. These costs include direct external and internal costs to design the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary and post-implementation stages of the software application are expensed as incurred. Costs associated with significant enhancements to a software application are capitalized while costs incurred to maintain existing software applications are expensed as incurred. The capitalization of software development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life. Amortization of capitalized software development costs begins when the product is ready for its intended use. Capitalized software development costs are amortized on a product-by-product basis using the straight-line method over the estimated economic life of the product or enhancement. The Company capitalized $50,392 , $29,416 and $34,877 of software development costs during 2016 , 2015 and 2014 , respectively. The Company's capitalized software development costs primarily relate to the further development of the SEI Wealth Platform SM (the Platform). The Company capitalized $39,785 , $24,515 and $34,877 of software development costs for significant enhancements to the Platform during 2016 , 2015 and 2014 , respectively. As of December 31, 2016 , the net book value of the Platform was $280,359 . The Platform has an estimated useful life of 15 years and a weighted average remaining life of 5.5 years . Amortization expense for the Platform was $45,047 , $42,401 and $38,357 in 2016 , 2015 and 2014 , respectively, and is included in Amortization expense on the accompanying Consolidated Statements of Operations. The Company currently expects to recognize approximately $48,166 in amortization expense related to the Platform each year from 2017 through 2021. The Company also capitalized $10,607 and $4,901 of software development costs during 2016 and 2015 , respectively, related to a new application for the Investment Managers segment. Capitalized software development costs in-progress at December 31, 2016 associated with the application were $15,508 . The application is not yet ready for use. The Company evaluates the carrying value of capitalized software development costs when circumstances indicate the carrying value may not be recoverable. The review of capitalized software development costs for impairment requires significant assumptions about operating strategies, underlying technologies utilized, and external market factors. External market factors include, but are not limited to, expected levels of competition, barriers to entry by potential competitors, stability in the target market and governmental regulations. |
Income Taxes | Income Taxes The Company applies the asset and liability approach to account for income taxes whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. Assets and liabilities have been translated into U.S. dollars using the rates of exchange at the balance sheet dates. The results of operations have been translated into U.S. dollars at average exchange rates prevailing during the period. The resulting translation gain and loss adjustments are recorded as a separate component of comprehensive income. Transaction gains and losses from exchange rate fluctuations are included in the results of operations in the periods in which they occur. |
Earnings Per Share | Earnings Per Common Share Basic earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the combination of the weighted average number of common shares outstanding and the dilutive potential common shares, such as stock options, outstanding during the period. |
Stock-based Compensation | Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. The Company uses historical data to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest. The amount of stock-based compensation expense that is recognized in a given period is dependent upon management’s estimate of when the vesting targets are expected to be achieved. If this estimate proves to be inaccurate, the remaining amount of stock-based compensation expense could be accelerated, spread out over a longer period, or reversed |
New Accounting Pronouncements | New Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The updated standard permits the use of either the retrospective or cumulative effect transition method. The FASB has recently issued several amendments to the standard, including principal versus agent guidance and identifying performance obligations. ASU 2014-09 currently becomes effective for the Company during the first quarter 2018. The Company continues to assess the impact ASU 2014-09 will have on its revenue arrangements with completion, including selecting a transition method, expected by the third quarter of 2017. The majority of the Company’s services are bundled together and provided and completed for the client on a monthly basis. The Company expects revenue for these services to continue to be recognized monthly because of the continuous transfer of control to the client. Therefore, the adoption of this ASU is not expected to have a material impact on the recognition of revenue for the majority of the fees recognized for the services provided. However, the Company believes the adoption of the new standard may affect the timing of the recognition of implementation fees recognized in Information processing and software servicing fees as well as fund conversion fees and other ancillary fees recognized in Asset management, administration and distribution fees. Transaction-based and trade execution fees are based on current period activity and is not expected to be affected by the adoption of ASU 2014-09. Due to the complexity of certain of our agreements, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms, and certain aspects may vary in some instances from recognition ratably over the contract term. The new standard also modified some of the principal and agent considerations which may result in changes to gross or net treatment of revenue and expenses but would not affect final net income. The Company is also evaluating its sales commission programs. Previously, sales commission costs were expensed at inception of a sales agreement but under the new standard will generally need to be capitalized and amortized over the period of contract performance. The new standard provides companies with alternative methods of adoption and the Company is in the process of determining the method of adoption, which depends in part upon completion of the evaluation of the remaining revenue arrangements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) that will significantly change the income statement impact of equity investments held by an entity, and the recognition of changes in fair value of financial liabilities when the fair value option is elected. ASU 2016-01 becomes effective for the Company during the first quarter 2018. The Company is continuing to assess all potential impacts the updated standard will have on its consolidated financial statements and related disclosures. Management currently believes the most significant impact will be the requirement to recognize all changes in fair value of available-for-sale equity securities in current period earnings. Previously, these changes in fair value were recognized as a separate component of comprehensive income. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02) requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The updated standard is effective for the Company beginning in the first quarter of 2019. Early adoption is permitted. The Company is currently evaluating the transition method that will be elected and the effect that the updated standard will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) requiring an entity to record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the income statement when stock awards vest or are settled. In addition, ASU 2016-09 eliminates anticipated windfalls and shortfalls that were included in the calculation of assumed proceeds for computing the dilutive effect of share-based payment awards in the calculation of diluted earnings per share. Cash flows related to excess tax benefits will be recorded as an operating cash flow rather than a financing activity and an entity may elect to either estimate the number of forfeitures or account for forfeitures as they occur. ASU 2016-09 became effective for the Company during the first quarter of 2017. The Company believes the primary impact of adoption will be the requirement to recognize all tax effects related to share-based payments in the provision for income taxes in the income statement rather than paid-in capital as well as additional amendments to the accounting for income taxes. This may increase volatility of the Company’s income tax expense. In addition, the dilutive effect from stock options outstanding will increase as a result of the adoption of ASU 2016-09. No adjustment to prior period reported diluted earnings per share amounts is permitted. The Company has elected to account for forfeitures as they occur when determining the amount of compensation cost to be recognized in each period as well as retroactively reflecting all tax benefits or deficiencies from stock option exercises as an operating activity for the periods prior to the date of adoption. The amendments to accounting for income taxes and the change in the policy for accounting for forfeitures will require an adjustment to retained earnings as of January 1, 2017, where the cumulative effect of these changes are required to be recorded. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) which requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU No. 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. ASU 2016-13 becomes effective for the Company during the first quarter of 2020. Early adoption is permitted. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-17, Interests Held through Related Parties That Are under Common Control (ASU 2016-17) which amends the consolidation guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. ASU 2016-17 became effective for the Company during the first quarter of 2017. The Company does not believe the adoption of ASU 2016-17 will have a material impact on its consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18) which requires restricted cash and cash equivalents to be included with cash and cash equivalents when reconciling beginning-of-period and end-of-period amounts shown on the statement of cash flows. Under this guidance, the statement of cash flows should explain the total change in cash balances, including amounts described as restricted. ASU 2016-18 becomes effective for the Company during the first quarter of 2018. The Company is currently evaluating the guidance in ASU 2016-18 but does not believe it will have a material impact on its consolidated financial statements and related disclosures. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation. |
Investments in Equity Method Investments | The Company accounts for its interest in LSV using the equity method because of its less than 50 percent ownership. The Company’s interest in the net assets of LSV is reflected in Investment in unconsolidated affiliates on the accompanying Consolidated Balance Sheets and its interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statements of Operations. |
Investments in Affiliated Funds | The Company has retrospectively adopted ASU No. 2015-07, Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (ASU 2015-07) during 2016 for all periods presented. The fair value of the Company's investment funds sponsored by LSV is measured using the net asset value per share (NAV) as a practical expedient. The NAVs of the funds are calculated by the funds' independent custodian and are derived from the fair values of the underlying investments as of the reporting date. The funds allow for investor redemptions at the end of each calendar month. In accordance with ASU 2015-07, this investment has not been classified in the fair value hierarchy. |
Securities Owned | The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency and commercial paper securities with maturity dates less than one year. These investments are reflected as Securities owned on the accompanying Consolidated Balance Sheets. Due to specialized accounting practices applicable to investments by broker-dealers, the securities are reported at fair value and changes in fair value are recorded in current period earnings. |
Accumulated Other Comprehensive Income (Loss) | Other comprehensive income (loss) consists of net income and other gains and losses affecting shareholders’ equity that are excluded from net income. Other comprehensive income (loss) includes unrealized gains and losses on available for sale securities and foreign currency translation adjustments. The Company presents other comprehensive income (loss) in its Consolidated Statements of Comprehensive Income. |
Unremitted Earnings in Foreign Investment | Those earnings are considered to be indefinitely reinvested and, accordingly, no U.S. federal and state income taxes have been provided thereon. Upon distribution of those earnings, in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes, subject to an adjustment for foreign tax credits, and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable because of the complexities associated with its hypothetical calculation, including the availability, or lack thereof, of foreign tax credits to reduce a portion of the U.S. liability. |
Uncertain Tax Positions | The Company recognizes uncertain tax positions in accordance with the applicable accounting guidance and adjusts these liabilities when management’s judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Calculation Of Basic And Diluted Earnings Per Share | The calculations of basic and diluted earnings per share for 2016 , 2015 and 2014 are: 2016 2015 2014 Net income $ 333,817 $ 331,655 $ 318,713 Shares used to compute basic earnings per common share 161,350,000 165,725,000 168,246,000 Dilutive effect of stock options 3,081,000 3,873,000 4,319,000 Shares used to compute diluted earnings per common share 164,431,000 169,598,000 172,565,000 Basic earnings per common share $ 2.07 $ 2.00 $ 1.89 Diluted earnings per common share $ 2.03 $ 1.96 $ 1.85 |
Investment In Unconsolidated 29
Investment In Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | These tables contain condensed financial information of LSV: Condensed Statement of Operations Year ended December 31, 2016 2015 2014 Revenues $ 399,462 $ 427,653 $ 422,064 Net income $ 323,381 $ 352,845 $ 356,824 Condensed Balance Sheets December 31, 2016 2015 Current assets $ 125,872 $ 127,225 Non-current assets 1,927 2,375 Total assets $ 127,799 $ 129,600 Current liabilities $ 39,303 $ 40,876 Partners’ capital 88,496 88,724 Total liabilities and partners’ capital $ 127,799 $ 129,600 |
Composition of Certain Financ30
Composition of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Items Included in Consolidated Statement of Financial Condition [Abstract] | |
Receivables | Receivables on the accompanying Consolidated Balance Sheets consist of: 2016 2015 Trade receivables $ 48,683 $ 47,179 Fees earned, not billed 168,971 154,919 Other receivables 10,826 21,574 228,480 223,672 Less: Allowance for doubtful accounts (523 ) (649 ) Receivables, net $ 227,957 $ 223,023 |
Property And Equipment | Property and Equipment on the accompanying Consolidated Balance Sheets consists of: 2016 2015 Buildings $ 152,171 $ 151,604 Equipment 106,759 86,941 Land 10,030 10,003 Purchased software 128,008 122,433 Furniture and fixtures 17,292 16,143 Leasehold improvements 15,175 15,393 Construction in progress 2,077 961 431,512 403,478 Less: Accumulated depreciation (285,322 ) (259,501 ) Property and Equipment, net $ 146,190 $ 143,977 |
Accrued Liabilities | Accrued Liabilities on the accompanying Consolidated Balance Sheets consist of: 2016 2015 Accrued employee compensation $ 79,735 $ 74,687 Accrued consulting, outsourcing and professional fees 24,428 21,575 Accrued sub-advisory, distribution and other asset management fees 41,666 32,674 Accrued dividend payable 44,596 42,625 Other accrued liabilities 50,100 46,026 Accrued liabilities $ 240,525 $ 217,587 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Certain Financial Assets And Liabilities | The fair value of certain financial assets and liabilities of the Company was determined using the following inputs: Fair Value Measurements at Reporting Date Using December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets Equity available-for-sale securities $ 9,581 $ 9,581 $ — Fixed-income available-for-sale securities 74,452 — 74,452 Fixed-income securities owned 21,339 — 21,339 Investment funds sponsored by LSV (1) 4,858 $ 110,230 $ 9,581 $ 95,791 Fair Value Measurements at Reporting Date Using December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets Equity available-for-sale securities $ 10,657 $ 10,657 $ — Fixed-income available-for-sale securities 70,637 — 70,637 Fixed-income securities owned 21,235 — 21,235 Investment funds sponsored by LSV (1) 4,039 $ 106,568 $ 10,657 $ 91,872 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities [Abstract] | |
Investments Available For Sale | Investments available for sale classified as non-current assets consist of: At December 31, 2016 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 7,357 $ 24 $ (996 ) $ 6,385 Equities and other mutual funds 2,968 228 — 3,196 Debt securities 74,843 — (391 ) 74,452 $ 85,168 $ 252 $ (1,387 ) $ 84,033 At December 31, 2015 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 8,474 $ — $ (742 ) $ 7,732 Equities and other mutual funds 2,857 68 — 2,925 Debt securities 70,308 329 — 70,637 $ 81,639 $ 397 $ (742 ) $ 81,294 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Assumptions Used In The Weighted Average Fair Value Of The Stock Options Granted | The weighted average fair value of the Company’s stock options granted during 2016 , 2015 and 2014 were $12.43 , $12.16 and $10.88 , respectively, using the following assumptions: 2016 2015 2014 Expected term (in years) 6.00 5.58 6.79 Expected volatility 25.44 % 23.86 % 26.98 % Expected dividend yield 1.10 % 1.00 % 1.15 % Risk-free interest rate 2.18 % 1.90 % 2.04 % |
Stock-based Compensation Expense | The Company recognized stock-based compensation expense in its Consolidated Financial Statements in 2016 , 2015 and 2014 as follows: 2016 2015 2014 Stock-based compensation expense $ 16,017 $ 17,312 $ 13,463 Less: Deferred tax benefit (5,612 ) (6,107 ) (4,704 ) Stock-based compensation expense, net of tax $ 10,405 $ 11,205 $ 8,759 |
Stock Option Plans | This table presents certain information relating to the Company’s stock option plans for 2016 , 2015 and 2014 : Number of Shares Weighted Avg. Price Balance as of December 31, 2013 23,637,000 $ 22.58 Granted 2,293,000 40.05 Exercised (5,261,000 ) 19.52 Expired or canceled (208,000 ) 28.83 Balance as of December 31, 2014 20,461,000 $ 25.26 Granted 2,005,000 53.34 Exercised (2,927,000 ) 21.44 Expired or canceled (302,000 ) 28.97 Balance as of December 31, 2015 19,237,000 $ 28.71 Granted 2,310,000 49.57 Exercised (1,809,000 ) 24.82 Expired or canceled (1,669,000 ) 30.86 Balance as of December 31, 2016 18,069,000 $ 31.57 Exercisable as of December 31, 2016 6,692,000 $ 21.28 Available for future grant as of December 31, 2016 25,156,000 |
Stock Options Outstanding And Exercisable | This table summarizes information relating to all options outstanding and exercisable at December 31, 2016 : Options Outstanding at December 31, 2016 Options Exercisable at December 31, 2016 Range of Exercise Prices (Per Share) Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Life (Years) Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Life (Years) $ 14.62 - 15.77 3,021,000 $ 15.27 3.70 1,980,000 $ 15.01 3.02 17.65 - 21.05 1,854,000 17.67 3.02 1,846,000 17.65 3.00 22.45 - 23.86 3,712,000 23.20 4.93 1,513,000 23.20 4.93 27.03 - 39.15 3,321,000 33.18 4.73 1,353,000 33.26 5.19 40.64 - 53.34 6,161,000 47.91 9.06 — — — 18,069,000 6,692,000 |
Common Stock Buyback | The following table provides the total number of shares repurchased and the related total costs in 2016 , 2015 and 2014 : Year Total Number of Shares Repurchased Total Cost 2016 6,600,000 $ 294,374 2015 5,951,000 289,587 2014 7,888,000 278,357 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Loss), Net of Tax (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss), Net Of Tax | Components of Accumulated other comprehensive income (loss), net of tax, consisted of: Foreign Currency Translation Adjustments Unrealized Holding Gains (Losses) on Investments Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2014 $ 101 $ 1,386 $ 1,487 Other comprehensive loss before reclassifications (10,189 ) 441 (9,748 ) Amounts reclassified from accumulated other comprehensive income — (634 ) (634 ) Net current-period other comprehensive loss (10,189 ) (193 ) (10,382 ) Balance, December 31, 2014 $ (10,088 ) $ 1,193 $ (8,895 ) Other comprehensive loss before reclassifications (14,900 ) (1,659 ) (16,559 ) Amounts reclassified from accumulated other comprehensive loss — 164 164 Net current-period other comprehensive loss (14,900 ) (1,495 ) (16,395 ) Balance, December 31, 2015 $ (24,988 ) $ (302 ) $ (25,290 ) Other comprehensive loss before reclassifications (12,131 ) (918 ) (13,049 ) Amounts reclassified from accumulated other comprehensive loss — 384 384 Net current-period other comprehensive loss (12,131 ) (534 ) (12,665 ) Balance, December 31, 2016 $ (37,119 ) $ (836 ) $ (37,955 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Noncancellable Minimum Commitments | The aggregate noncancellable minimum commitments at December 31, 2016 are: 2017 $ 5,958 2018 6,406 2019 6,715 2020 5,127 2021 and thereafter 26,821 $ 51,027 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Federal and State and Foreign Income Tax Provision | The federal and state and foreign income tax provision is summarized as follows: Year Ended December 31, 2016 2015 2014 Current Federal $ 158,411 $ 159,774 $ 155,273 State 10,500 7,756 8,744 Foreign 5,137 5,224 5,254 174,048 172,754 169,271 Deferred Federal 788 (5,343 ) 1,667 State (168 ) 1,414 11 620 (3,929 ) 1,678 Total income taxes $ 174,668 $ 168,825 $ 170,949 |
Components of Net Income Before Income Taxes | The components of Income before income taxes are summarized as follows: Year Ended December 31, 2016 2015 2014 Domestic $ 481,760 $ 472,384 $ 475,175 Foreign 26,725 28,096 14,487 $ 508,485 $ 500,480 $ 489,662 |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate | The effective income tax rate differs from the federal income tax statutory rate due to the following: Year Ended December 31, 2016 2015 2014 Statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal tax benefit 1.3 1.6 1.2 Foreign tax expense and tax rate differential (0.8 ) (1.2 ) (0.7 ) Research and development tax credit (0.8 ) (0.6 ) (0.4 ) Domestic Production Activities Deduction (0.6 ) (0.6 ) (0.4 ) Net change in uncertain tax positions — — 0.3 Settlement of state tax petition — (0.8 ) — Other, net 0.2 0.3 (0.1 ) 34.3 % 33.7 % 34.9 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities at December 31, 2016 and 2015 are as follows: Year Ended December 31, 2016 2015 Deferred Tax Assets: Stock-based compensation expense $ 33,459 $ 34,739 Foreign and state net operating loss carryforward 20,049 19,580 Basis differences in investments 6,165 6,439 Federal benefit of state tax deduction for uncertain tax positions 3,647 3,014 Revenue and expense recognized in different periods for financial reporting and income tax purposes 5,022 4,675 Other assets 813 1,793 Total deferred income tax assets 69,155 70,240 Less: valuation allowance (17,922 ) (14,548 ) Net deferred income tax assets $ 51,233 $ 55,692 Deferred Tax Liabilities: Capitalized software currently deductible for tax purposes, net of amortization $ (107,897 ) $ (111,174 ) Difference in financial reporting and income tax depreciation methods (5,190 ) (2,695 ) Difference between book and tax basis of other assets (4,597 ) (4,294 ) Other liabilities (1,115 ) (557 ) Total deferred income tax liabilities $ (118,799 ) $ (118,720 ) Net deferred income tax liabilities $ (67,566 ) $ (63,028 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: 2016 2015 2014 Balance as of January 1 $ 14,517 $ 14,018 $ 12,028 Tax positions related to current year: Gross additions 3,756 1,954 1,957 Tax positions related to prior years: Gross additions 1,762 297 1,369 Settlements (378 ) — — Lapses on statute of limitations (2,370 ) (1,752 ) (1,336 ) Balance as of December 31 $ 17,287 $ 14,517 $ 14,018 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Financial Information About Business Segments | The following tables highlight certain financial information about each of the Company’s business segments for the years ended December 31, 2016 , 2015 and 2014 : Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2016 Revenues $ 457,886 $ 330,677 $ 312,584 $ 294,390 $ 6,008 $ 1,401,545 Expenses 421,188 180,140 153,117 191,127 20,962 966,534 Operating profit (loss) $ 36,698 $ 150,537 $ 159,467 $ 103,263 $ (14,954 ) $ 435,011 Gain on sale of subsidiary 2,791 — — — — 2,791 Total profit (loss) $ 39,489 $ 150,537 $ 159,467 $ 103,263 $ (14,954 ) $ 437,802 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2015 Revenues $ 456,516 $ 306,620 $ 297,568 $ 267,963 $ 5,541 $ 1,334,208 Expenses 410,975 171,968 145,851 172,094 20,656 921,544 Operating profit (loss) $ 45,541 $ 134,652 $ 151,717 $ 95,869 $ (15,115 ) $ 412,664 Gain on sale of subsidiary 2,791 — — — — 2,791 Total profit (loss) $ 48,332 $ 134,652 $ 151,717 $ 95,869 $ (15,115 ) $ 415,455 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2014 Revenues $ 441,467 $ 283,811 $ 284,677 $ 251,310 $ 4,740 $ 1,266,005 Expenses 399,620 146,500 140,659 159,176 18,377 864,332 Operating profit (loss) $ 41,847 $ 137,311 $ 144,018 $ 92,134 $ (13,637 ) $ 401,673 Gain on sale of subsidiary 5,582 — — — — 5,582 Total profit (loss) $ 47,429 $ 137,311 $ 144,018 $ 92,134 $ (13,637 ) $ 407,255 |
Reconciliation Of Total Operating Profit Reported For Business Segments To Income From Operations In Consolidated Statements Of Operations | A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of Operations for the years ended December 31, 2016 , 2015 and 2014 is as follows: Year Ended December 31, 2016 2015 2014 Total operating profit from segments above $ 435,011 $ 412,664 $ 401,673 Corporate overhead expenses (59,317 ) (54,451 ) (48,889 ) Income from operations $ 375,694 $ 358,213 $ 352,784 |
Additional Information Pertaining To Business Segments | The following tables provide additional information for the years ended December 31, 2016 , 2015 and 2014 pertaining to our business segments: Capital Expenditures (1) Depreciation Year Ended December 31, 2016 2015 2014 2016 2015 2014 Private Banks $ 45,940 $ 41,972 $ 30,883 $ 13,222 $ 12,348 $ 13,393 Investment Advisors 17,610 13,206 13,783 3,880 3,410 2,507 Institutional Investors 4,319 5,301 4,575 1,367 1,200 1,041 Investment Managers 11,209 10,119 9,505 4,877 4,040 2,917 Investments in New Businesses 726 736 2,547 2,197 2,278 1,983 Total from business segments $ 79,804 $ 71,334 $ 61,293 $ 25,543 $ 23,276 $ 21,841 Corporate Overhead 1,985 2,547 2,053 897 768 607 $ 81,789 $ 73,881 $ 63,346 $ 26,440 $ 24,044 $ 22,448 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization Year Ended December 31, 2016 2015 2014 Private Banks $ 31,675 $ 29,819 $ 24,993 Investment Advisors 10,458 9,880 9,228 Institutional Investors 1,674 1,558 1,430 Investment Managers 1,092 1,029 954 Investments in New Businesses 146 116 1,846 Total from business segments $ 45,045 $ 42,402 $ 38,451 Corporate Overhead 347 228 228 $ 45,392 $ 42,630 $ 38,679 Total Assets 2016 2015 Private Banks $ 471,435 $ 451,079 Investment Advisors 160,717 138,459 Institutional Investors 109,879 105,443 Investment Managers 158,621 154,432 Investments in New Businesses 4,910 5,355 Total from business segments $ 905,562 $ 854,768 Corporate Overhead (2) 731,261 733,860 $ 1,636,823 $ 1,588,628 (2) Unallocated assets primarily consist of cash and cash equivalents, marketable securities, and certain other shared services assets. |
Revenues And Assets Based On Location | The following table presents revenues based on the location of the use of the products or services: For the Year Ended December 31, 2016 2015 2014 United States $ 1,191,640 $ 1,123,165 $ 1,063,223 International operations 209,905 211,043 202,782 $ 1,401,545 $ 1,334,208 $ 1,266,005 The following table presents assets based on their location: 2016 2015 United States $ 1,317,235 $ 1,330,738 International operations 319,588 257,890 $ 1,636,823 $ 1,588,628 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | Quarterly Financial Data (Unaudited) For the Three Months Ended 2016 March 31 June 30 September 30 December 31(1) Revenues $ 334,263 $ 343,831 $ 354,641 $ 368,810 Income before income taxes $ 119,638 $ 124,904 $ 130,890 $ 133,053 Net income $ 77,497 $ 81,005 $ 86,704 $ 88,611 Basic earnings per share $ 0.48 $ 0.50 $ 0.54 $ 0.55 Diluted earnings per share (2) $ 0.47 $ 0.49 $ 0.53 $ 0.55 Effective income tax rate 35.2 % 35.2 % 33.8 % 33.4 % (1) During the fourth quarter 2016, the Company recognized a performance fee of $12,286 and a corresponding sub-advisory expense of $6,143 associated with an SEI-sponsored investment product. These items resulted in an after-tax net profit of $4,091 , or $0.03 diluted earnings per share. (2) The sum of the individual quarterly earnings per share amounts may not agree with the annual earnings per share amount as each quarterly computation is based on the weighted average number of shares outstanding during that period. For the Three Months Ended 2015 March 31 June 30 September 30 December 31 Revenues $ 325,444 $ 337,745 $ 335,622 $ 335,397 Income before income taxes $ 131,000 $ 133,810 $ 120,588 $ 115,082 Net income $ 84,611 $ 86,240 $ 79,425 $ 81,379 Basic earnings per share $ 0.51 $ 0.52 $ 0.48 $ 0.49 Diluted earnings per share $ 0.50 $ 0.51 $ 0.47 $ 0.48 Effective income tax rate 35.4 % 35.6 % 34.1 % 29.3 % |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $ 695,701 | $ 679,661 | $ 695,701 | $ 679,661 | $ 667,446 | $ 578,273 |
Restricted cash | 3,500 | 5,500 | 3,500 | 5,500 | ||
Capitalized software development costs | 50,392 | 29,416 | $ 34,877 | |||
Net book value of capitalized software | 295,867 | $ 290,522 | $ 295,867 | $ 290,522 | ||
Anti-dilutive employee stock options | 10,632 | 10,730 | 10,166 | |||
Anti-dilutive employee stock options, average exercise price per share | $ 35.02 | $ 33.99 | $ 30 | |||
SEI Wealth Platform [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Capitalized software development costs | $ 39,785 | $ 24,515 | $ 34,877 | |||
Net book value of capitalized software | $ 280,359 | 280,359 | ||||
Estimated useful life of the SEI Wealth Platform | 15 years | |||||
Amortization expense related to the SEI Wealth Platform | 45,047 | 42,401 | $ 38,357 | |||
Estimated amortization expense related to the SEI Wealth Platform in 2017 | $ 48,166 | 48,166 | ||||
Estimated amortization expense related to the SEI Wealth Platform in 2018 | 48,166 | 48,166 | ||||
Estimated amortization expense related to the SEI Wealth Platform in 2019 | 48,166 | 48,166 | ||||
Estimated amortization expense related to the SEI Wealth Platform in 2020 | 48,166 | 48,166 | ||||
Estimated amortization expense related to the SEI Wealth Platform in 2021 | 48,166 | 48,166 | ||||
Income statement classification for capitalized software write off related to the SEI Wealth Platform | Facilities, supplies and other costs | |||||
Technological capabilities for Investment Managers segment [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Capitalized software development costs | 10,607 | 4,901 | ||||
Net book value of capitalized software | 15,508 | 15,508 | ||||
SEI Sponsored Open Ended Money Market Mutual Funds [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | 374,760 | $ 448,957 | 374,760 | 448,957 | ||
SEI Investments Europe Limited [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Restricted cash | 3,000 | 5,000 | 3,000 | 5,000 | ||
SEI Investments Distribution Co [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Restricted cash | $ 500 | 500 | $ 500 | $ 500 | ||
Maximum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Ownership interest in unconsolidated affiliate | 50.00% | 50.00% | ||||
Weighted Average [Member] | SEI Wealth Platform [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of the SEI Wealth Platform | 5 years 5 months 27 days | |||||
Building and Building Improvements [Member] | Minimum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of property and equipment | 25 years | |||||
Building and Building Improvements [Member] | Maximum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of property and equipment | 39 years | |||||
Computer Equipment [Member] | Minimum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of property and equipment | 3 years | |||||
Computer Equipment [Member] | Maximum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of property and equipment | 5 years | |||||
Furniture and Fixtures [Member] | Minimum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of property and equipment | 3 years | |||||
Furniture and Fixtures [Member] | Maximum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of property and equipment | 5 years | |||||
Equity Method Investee [Member] | Minimum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Ownership interest in unconsolidated affiliate | 20.00% | 20.00% | ||||
Equity Method Investee [Member] | Maximum [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Ownership interest in unconsolidated affiliate | 50.00% | 50.00% | ||||
Capitalized software [Member] | SEI Wealth Platform [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Loss on write off of capitalized software related to the SEI Wealth Platform | $ 5,533 | |||||
Private Banks [Member] | SEI Wealth Platform [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Segment classification for capitalized software write off related to the SEI Wealth Platform | Private Banks | |||||
Investment Advisors [Member] | SEI Wealth Platform [Member] | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Segment classification for capitalized software write off related to the SEI Wealth Platform | Investment Advisors |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Calculation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 333,817 | $ 331,655 | $ 318,713 | ||||||||
Shares used to compute basic earnings per common share | 161,350 | 165,725 | 168,246 | ||||||||
Dilutive effect of stock options | 3,081 | 3,873 | 4,319 | ||||||||
Shares used to compute diluted earnings per common share | 164,431 | 169,598 | 172,565 | ||||||||
Basic earnings per common share | $ 0.55 | $ 0.54 | $ 0.50 | $ 0.48 | $ 0.49 | $ 0.48 | $ 0.52 | $ 0.51 | $ 2.07 | $ 2 | $ 1.89 |
Diluted earnings per common share | $ 0.55 | $ 0.53 | $ 0.49 | $ 0.47 | $ 0.48 | $ 0.47 | $ 0.51 | $ 0.50 | $ 2.03 | $ 1.96 | $ 1.85 |
Investment In Unconsolidated 41
Investment In Unconsolidated Affiliates (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2017 | Oct. 31, 2012 | |
Investments in and Advances to Affiliates [Line Items] | |||||
Company's share in the earnings of LSV | $ 126,103 | $ 137,057 | $ 127,786 | ||
Distributions received from LSV | $ 125,224 | $ 141,767 | 137,866 | ||
LSV Employee Group III [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Purchase price of partnership interest in LSV | $ 77,700 | ||||
Loans payable by LSV Employee Group III | 69,930 | ||||
Financial Guarantee [Member] | LSV Asset Management [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Maximum exposure from guaranty of LSV Employee Group III obligations | 24,930 | ||||
Financial Guarantee [Member] | LSV Employee Group III [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Maximum exposure from guaranty of LSV Employee Group III obligations | $ 45,000 | ||||
Financial Guarantee [Member] | LSV Employee Group III [Member] | Subsequent Event [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Maximum exposure from guaranty of LSV Employee Group III obligations | $ 5,657 | ||||
Current carrying value of guaranty of LSV Employee Group III obligations | $ 0 | ||||
LSV Asset Management [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Ownership interest in LSV | 38.90% | 39.20% | |||
Total investment in LSV | $ 50,459 | ||||
Company's share in the earnings of LSV | 126,103 | $ 138,407 | 140,211 | ||
Distributions received from LSV | $ 125,224 | $ 141,767 | $ 137,866 | ||
Maximum [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Ownership interest in LSV | 50.00% |
Investment In Unconsolidated 42
Investment In Unconsolidated Affiliates (Condensed Statements of Operations of LSV) (Details) - LSV Asset Management [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenues | $ 399,462 | $ 427,653 | $ 422,064 |
Net income | $ 323,381 | $ 352,845 | $ 356,824 |
Investment In Unconsolidated 43
Investment In Unconsolidated Affiliates (Condensed Balance Sheets of LSV) (Details) - LSV Asset Management [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 125,872 | $ 127,225 |
Non-current assets | 1,927 | 2,375 |
Total assets | 127,799 | 129,600 |
Current liabilities | 39,303 | 40,876 |
Partners’ capital | 88,496 | 88,724 |
Total liabilities and partners’ capital | $ 127,799 | $ 129,600 |
Variable Interest Entities - 44
Variable Interest Entities - Investment Products (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SEI Sponsored Open Ended Money Market Mutual Funds [Member] | |||
Financial Support for Nonconsolidated Legal Entity [Line Items] | |||
Fees waived according to expense limitation agreements | $ 41,227 | $ 55,713 | $ 54,083 |
Composition of Certain Financ45
Composition of Certain Financial Statement Captions (Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Items Included in Consolidated Statement of Financial Condition [Abstract] | ||
Trade receivables | $ 48,683 | $ 47,179 |
Fees earned, not billed | 168,971 | 154,919 |
Other receivables | 10,826 | 21,574 |
Gross receivables | 228,480 | 223,672 |
Less: Allowance for doubtful accounts | (523) | (649) |
Receivables, net | $ 227,957 | $ 223,023 |
Composition of Certain Financ46
Composition of Certain Financial Statement Captions (Property And Equipment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | $ 403,478 | $ 431,512 | $ 403,478 | |
Less: Accumulated depreciation | (259,501) | (285,322) | (259,501) | |
Property and Equipment, net | 143,977 | 146,190 | 143,977 | |
Depreciation expense | 26,440 | 24,044 | $ 22,448 | |
Loss on write off of purchased software related to the SEI Wealth Platform | 0 | (6,055) | $ 0 | |
Buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | 151,604 | 152,171 | 151,604 | |
Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | 86,941 | 106,759 | 86,941 | |
Land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | 10,003 | 10,030 | 10,003 | |
Purchased software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | 122,433 | 128,008 | 122,433 | |
Furniture and fixtures [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | 16,143 | 17,292 | 16,143 | |
Leasehold improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | 15,393 | 15,175 | 15,393 | |
Construction in progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, gross | $ 961 | $ 2,077 | $ 961 | |
SEI Wealth Platform [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Income statement classification for purchased software write off related to the SEI Wealth Platform | Facilities, supplies and other costs | |||
SEI Wealth Platform [Member] | Property, Plant and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Loss on write off of purchased software related to the SEI Wealth Platform | $ 522 | |||
Private Banks [Member] | SEI Wealth Platform [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Segment classification for purchased software write off related to the SEI Wealth Platform | Private Banks |
Composition of Certain Financ47
Composition of Certain Financial Statement Captions (Other Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Assets [Abstract] | |||
Amortization expense for certain other assets | $ 345 | $ 229 | $ 227 |
Composition of Certain Financ48
Composition of Certain Financial Statement Captions (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Items Included in Consolidated Statement of Financial Condition [Abstract] | ||
Accrued employee compensation | $ 79,735 | $ 74,687 |
Accrued consulting, outsourcing and professional fees | 24,428 | 21,575 |
Accrued sub-advisory, distribution and other asset management fees | 41,666 | 32,674 |
Accrued dividend payable | 44,596 | 42,625 |
Other accrued liabilities | 50,100 | 46,026 |
Total accrued liabilities | $ 240,525 | $ 217,587 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Of Certain Financial Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity available-for-sale securities | $ 9,581 | $ 10,657 |
Fixed income available-for-sale securities | 74,452 | 70,637 |
Fixed income securities owned | 21,339 | 21,235 |
Investment funds sponsored by LSV | 4,858 | 4,039 |
Assets, fair value | 110,230 | 106,568 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity available-for-sale securities | 9,581 | 10,657 |
Fixed income available-for-sale securities | 0 | 0 |
Fixed income securities owned | 0 | 0 |
Assets, fair value | 9,581 | 10,657 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity available-for-sale securities | 0 | 0 |
Fixed income available-for-sale securities | 74,452 | 70,637 |
Fixed income securities owned | 21,339 | 21,235 |
Assets, fair value | $ 95,791 | $ 91,872 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Investments [Line Items] | |||
Net unrealized holding losses | $ 836 | $ 302 | |
Income tax benefit from unrealized holding losses during the period | 299 | 43 | |
Gross realized gains from available-for-sale securities | 284 | 489 | $ 1,401 |
Gross realized losses from available-for-sale securities | 869 | 729 | 448 |
Investment funds sponsored by LSV | 4,858 | 4,039 | |
Securities owned | 21,339 | 21,235 | |
Investment funds sponsored by LSV [Member] | |||
Schedule of Investments [Line Items] | |||
Investment funds sponsored by LSV | 4,858 | 4,039 | |
Change in fair value of investment funds sponsored by LSV | $ 819 | $ (389) | $ (326) |
Marketable Securities (Investme
Marketable Securities (Investments Available For Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment Available for Sale, Cost Amount | $ 85,168 | $ 81,639 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 252 | 397 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (1,387) | (742) |
Available-for-sale Securities | 84,033 | 81,294 |
SEI-sponsored mutual funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment Available for Sale, Cost Amount | 7,357 | 8,474 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 24 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (996) | (742) |
Available-for-sale Securities | 6,385 | 7,732 |
Equities and other mutual funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment Available for Sale, Cost Amount | 2,968 | 2,857 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 228 | 68 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Available-for-sale Securities | 3,196 | 2,925 |
Debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment Available for Sale, Cost Amount | 74,843 | 70,308 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 329 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (391) | 0 |
Available-for-sale Securities | $ 74,452 | $ 70,637 |
Lines Of Credit (Details)
Lines Of Credit (Details) - Revolving Credit Facility [Member] - USD ($) $ in Thousands | Jun. 13, 2016 | Feb. 02, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | |||||
Commitment fees related to credit facility | $ 531 | $ 483 | $ 458 | ||
London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 1.00% | ||||
2016 Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 300,000 | ||||
Credit facility stated percentage | 0.00% | ||||
Credit facilty accordian feature, increase limit | $ 100,000 | ||||
2016 Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility description of variable rate basis | London InterBank Offered Rate | ||||
2016 Credit Facility [Member] | Federal Funds Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 0.50% | ||||
Credit facility description of variable rate basis | Federal Funds Rate | ||||
2012 Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 300,000 | ||||
Credit facility commitment fee per annum on daily unused portion (as a percent) | 0.15% | ||||
Minimum [Member] | 2016 Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility commitment fee per annum on daily unused portion (as a percent) | 0.15% | ||||
Minimum [Member] | 2016 Credit Facility [Member] | Base Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 0.25% | ||||
Minimum [Member] | 2016 Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 1.25% | ||||
Maximum [Member] | 2016 Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility commitment fee per annum on daily unused portion (as a percent) | 0.30% | ||||
Maximum [Member] | 2016 Credit Facility [Member] | Base Rate [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 1.00% | ||||
Maximum [Member] | 2016 Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 2.00% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | Jan. 06, 2017$ / shares | Dec. 13, 2016$ / shares | Jun. 22, 2016$ / shares | May 25, 2016$ / shares | Dec. 31, 2016USD ($)right / shares$ / right$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average fair value of stock options granted | $ 12.43 | $ 12.16 | $ 10.88 | ||||
Unvested employee stock options outstanding | shares | 11,377,000 | ||||||
Unrecognized compensation cost from employee stock options | $ | $ 77,005 | ||||||
Weighted average period for recognition of unrecognized compensation cost | 2 years 3 months 26 days | ||||||
Total options that were exercisable | shares | 6,692,000 | 8,508,000 | 10,295,000 | ||||
Options outstanding weighted average remaining contractual life, years | 5 years 10 months 24 days | ||||||
Total intrinsic value of options exercised | $ | $ 41,607 | $ 76,676 | |||||
Aggregate intrinsic value of options exercisable | $ | 187,909 | ||||||
Total intrinsic value of options outstanding | $ | $ 321,528 | ||||||
Share price of SEI common stock | $ 49.36 | ||||||
Rights received by common shareholder for each common share outstanding, rights | right / shares | 1 | ||||||
Series A Junior Participating Preferred stock, par value | $ 0.05 | $ 0.05 | |||||
Securities and assets of equivalent value, purchase price, per unit | $ 150 | ||||||
Number of days, rights become exercisable following public announcement | 10 days | ||||||
Acquiring person, beneficial ownership of the outstanding common stock, minimum percentage | 20.00% | ||||||
Common shares received by holders upon surrender of rights, percentage | 50.00% | ||||||
Rights non-voting, redeemable days | 10 days | ||||||
Right redeemable price, per right | $ / right | 0.01 | ||||||
Dividends declared per common share | $ 0.28 | $ 0.26 | $ 0.54 | $ 0.50 | $ 0.46 | ||
Dividends paid per common share | $ 0.26 | ||||||
Dividends declared | $ | $ 86,657 | $ 82,478 | $ 77,158 | ||||
Subsequent Event [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividends paid per common share | $ 0.28 | ||||||
Common Stock Buyback [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Remaining stock repurchase authorization amount | $ | $ 218,752 | ||||||
Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration date for options outstanding | Jan. 31, 2017 | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration date for options outstanding | Dec. 13, 2026 | ||||||
2014 Equity Compensation Plan [Member] | Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rate | 50.00% | ||||||
2014 Equity Compensation Plan [Member] | Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rate | 50.00% | ||||||
Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee stock purchase plan, employee eligible percentage on offerings of common stock | 85.00% | ||||||
Shares reserved under the plan | shares | 15,600,000 | ||||||
Issuance of common stock under the employee stock purchase plan, shares | shares | 11,891,000 |
Shareholders' Equity (Assumptio
Shareholders' Equity (Assumptions Used In The Weighted Average Fair Value Of Stock Options Granted) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected term | 6 years | 5 years 6 months 29 days | 6 years 9 months 15 days |
Expected volatility | 25.44% | 23.86% | 26.98% |
Expected dividend yield | 1.10% | 1.00% | 1.15% |
Risk-free interest rate | 2.18% | 1.90% | 2.04% |
Shareholders' Equity (Stock-Bas
Shareholders' Equity (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |||
Stock-based compensation expense | $ 16,017 | $ 17,312 | $ 13,463 |
Less: Deferred tax benefit | (5,612) | (6,107) | (4,704) |
Stock-based compensation expense, net of tax | $ 10,405 | $ 11,205 | $ 8,759 |
Shareholders' Equity (Stock Opt
Shareholders' Equity (Stock Option Plans) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Balance | 19,237 | 20,461 | 23,637 |
Balance, weighted avg. price | $ 28.71 | $ 25.26 | $ 22.58 |
Granted | 2,310 | 2,005 | 2,293 |
Granted, weighted avg. price | $ 49.57 | $ 53.34 | $ 40.05 |
Exercised | (1,809) | (2,927) | (5,261) |
Exercised, weighted avg. price | $ 24.82 | $ 21.44 | $ 19.52 |
Expired or canceled | (1,669) | (302) | (208) |
Expired or canceled, weighted avg. price | $ 30.86 | $ 28.97 | $ 28.83 |
Balance | 18,069 | 19,237 | 20,461 |
Balance, weighted avg. price | $ 31.57 | $ 28.71 | $ 25.26 |
Total options that were exercisable | 6,692 | 8,508 | 10,295 |
Exercisable shares, weighted avg. price | $ 21.28 | ||
Available for future grant as of December 31, 2016 | 25,156 |
Shareholders' Equity (Stock O57
Shareholders' Equity (Stock Options Outstanding And Exercisable) (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number of Shares | 18,069 | 19,237 | 20,461 | 23,637 |
Weighted Average Exercise Price (Per Share) | $ 31.57 | $ 28.71 | $ 25.26 | $ 22.58 |
Weighted Average Remaining Contractual Life (Years) | 5 years 10 months 24 days | |||
Number of Shares | 6,692 | 8,508 | 10,295 | |
Weighted Average Exercise Price (Per Share) | $ 21.28 | |||
Exercise Price $14.62-15.77 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Lower range | 14.62 | |||
Upper range | $ 15.77 | |||
Number of Shares | 3,021 | |||
Weighted Average Exercise Price (Per Share) | $ 15.27 | |||
Weighted Average Remaining Contractual Life (Years) | 3 years 8 months 12 days | |||
Number of Shares | 1,980 | |||
Weighted Average Exercise Price (Per Share) | $ 15.01 | |||
Weighted Average Remaining Contractual Life (Years) | 3 years 7 days | |||
Exercise Price $17.65-21.05 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Lower range | $ 17.65 | |||
Upper range | $ 21.05 | |||
Number of Shares | 1,854 | |||
Weighted Average Exercise Price (Per Share) | $ 17.67 | |||
Weighted Average Remaining Contractual Life (Years) | 3 years 7 days | |||
Number of Shares | 1,846 | |||
Weighted Average Exercise Price (Per Share) | $ 17.65 | |||
Weighted Average Remaining Contractual Life (Years) | 3 years | |||
Exercise Price $22.45-23.86 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Lower range | $ 22.45 | |||
Upper range | $ 23.86 | |||
Number of Shares | 3,712 | |||
Weighted Average Exercise Price (Per Share) | $ 23.20 | |||
Weighted Average Remaining Contractual Life (Years) | 4 years 11 months 5 days | |||
Number of Shares | 1,513 | |||
Weighted Average Exercise Price (Per Share) | $ 23.20 | |||
Weighted Average Remaining Contractual Life (Years) | 4 years 11 months 5 days | |||
Exercise Price $27.03-39.15 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Lower range | $ 27.03 | |||
Upper range | $ 39.15 | |||
Number of Shares | 3,321 | |||
Weighted Average Exercise Price (Per Share) | $ 33.18 | |||
Weighted Average Remaining Contractual Life (Years) | 4 years 8 months 23 days | |||
Number of Shares | 1,353 | |||
Weighted Average Exercise Price (Per Share) | $ 33.26 | |||
Weighted Average Remaining Contractual Life (Years) | 5 years 2 months 9 days | |||
Exercise Price $40.64-53.34 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Lower range | $ 40.64 | |||
Upper range | $ 53.34 | |||
Number of Shares | 6,161 | |||
Weighted Average Exercise Price (Per Share) | $ 47.91 | |||
Weighted Average Remaining Contractual Life (Years) | 9 years 22 days | |||
Number of Shares | 0 | |||
Weighted Average Exercise Price (Per Share) | $ 0 |
Shareholders' Equity (Common St
Shareholders' Equity (Common Stock Buyback) (Details) - Common Stock Buyback [Member] - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased and retired during period | 6,600 | 5,951 | 7,888 |
Value of shares repurchased during period | $ 294,374 | $ 289,587 | $ 278,357 |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ (25,290) | $ (8,895) | $ 1,487 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other comprehensive loss before reclassifications | (13,049) | (16,559) | (9,748) |
Amounts reclassified from accumulated other comprehensive (income) loss | 384 | 164 | (634) |
Net current-period other comprehensive loss | (12,665) | (16,395) | (10,382) |
Ending Balance | (37,955) | (25,290) | (8,895) |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (24,988) | (10,088) | 101 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other comprehensive loss before reclassifications | (12,131) | (14,900) | (10,189) |
Amounts reclassified from accumulated other comprehensive (income) loss | 0 | 0 | 0 |
Net current-period other comprehensive loss | (12,131) | (14,900) | (10,189) |
Ending Balance | (37,119) | (24,988) | (10,088) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (302) | 1,193 | 1,386 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other comprehensive loss before reclassifications | (918) | (1,659) | 441 |
Amounts reclassified from accumulated other comprehensive (income) loss | 384 | 164 | (634) |
Net current-period other comprehensive loss | (534) | (1,495) | (193) |
Ending Balance | $ (836) | $ (302) | $ 1,193 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined contribution plan, cost recognized | $ 9,665 | $ 9,162 | $ 6,157 |
Commitments and Contingencies61
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent Expense | $ 28,016 | $ 25,074 | $ 23,011 |
Commitments and Contingencies62
Commitments and Contingencies (Schedule Of Noncancellable Minimum Commitments) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum operating lease payments due in 2017 | $ 5,958 |
Future minimum operating lease payments due in 2018 | 6,406 |
Future minimum operating lease payments due in 2019 | 6,715 |
Future minimum operating lease payments due in 2020 | 5,127 |
Future minimum operating lease payments due in 2021 and thereafter | 26,821 |
Operating leases, future minimum payments due | $ 51,027 |
Income Taxes (Schedule Of Feder
Income Taxes (Schedule Of Federal And State And Foreign Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal, current | $ 158,411 | $ 159,774 | $ 155,273 |
State, current | 10,500 | 7,756 | 8,744 |
Foreign, current | 5,137 | 5,224 | 5,254 |
Current federal, state and foreign income tax | 174,048 | 172,754 | 169,271 |
Federal, deferred | 788 | (5,343) | 1,667 |
State, deferred | (168) | 1,414 | 11 |
Deferred income tax expense (benefit) | 620 | (3,929) | 1,678 |
Total income taxes | $ 174,668 | $ 168,825 | $ 170,949 |
Income Taxes (Components Of Net
Income Taxes (Components Of Net Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 481,760 | $ 472,384 | $ 475,175 |
Foreign | 26,725 | 28,096 | 14,487 |
Income before income taxes | $ 508,485 | $ 500,480 | $ 489,662 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate) (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||
Statutory rate | 35.00% | 35.00% | 35.00% | ||||||||
State taxes, net of federal tax benefit | 1.30% | 1.60% | 1.20% | ||||||||
Foreign tax expense and tax rate differential | (0.80%) | (1.20%) | (0.70%) | ||||||||
Research and development tax credit | (0.80%) | (0.60%) | (0.40%) | ||||||||
Domestic Production Activities Deduction | (0.60%) | (0.60%) | (0.40%) | ||||||||
Net change in uncertain tax positions | 0.00% | 0.00% | 0.30% | ||||||||
Settlement of state tax petition | 0.00% | (0.80%) | 0.00% | ||||||||
Other, net | 0.20% | 0.30% | (0.10%) | ||||||||
Effective income tax rate | 33.40% | 33.80% | 35.20% | 35.20% | 29.30% | 34.10% | 35.60% | 35.40% | 34.30% | 33.70% | 34.90% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Undistributed earnings of foreign subsidiaries | $ 106,122 | |||
Unrecognized tax benefit, excluding interest and penalties | 17,287 | $ 14,517 | $ 14,018 | $ 12,028 |
Unrecognized tax benefits that would affect effective tax rate | 14,868 | |||
Amount of uncertain tax liability included in Other long-term liabilities | 14,645 | 11,397 | ||
Amount of previously unrecognized tax benefits recognized | 2,370 | |||
Liabilities for tax-related interest and penalties | 1,227 | $ 1,391 | $ 1,066 | |
Current liabilities [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Amount of uncertain tax liability expected to be paid within one year | 3,866 | |||
Other long-term liabilities [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Amount of uncertain tax liability included in Other long-term liabilities | 14,645 | |||
Settlement and Lapse of Statute [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Unrecognized tax benefits within the next 12 months | $ 3,866 |
Income Taxes Income Taxes (Sche
Income Taxes Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Deferred Tax Assets And Liabilities [Abstract] | ||
Stock-based compensation expense | $ 33,459 | $ 34,739 |
Foreign and state net operating loss carryforward | 20,049 | 19,580 |
Basis differences in investments | 6,165 | 6,439 |
Federal benefit of state tax deduction for uncertain tax positions | 3,647 | 3,014 |
Revenue and expense recognized in different periods for financial reporting and income tax purposes | 5,022 | 4,675 |
Other assets | 813 | 1,793 |
Total deferred income tax assets | 69,155 | 70,240 |
Less: valuation allowance | 17,922 | 14,548 |
Net deferred income tax assets | 51,233 | 55,692 |
Capitalized software currently deductible for tax purposes, net of amortization | 107,897 | 111,174 |
Difference in financial reporting and income tax depreciation methods | 5,190 | 2,695 |
Difference between book and tax basis of other assets | (4,597) | (4,294) |
Other liabilities | (1,115) | (557) |
Total deferred income tax liabilities | (118,799) | (118,720) |
Net deferred income tax liabilities | $ (67,566) | $ (63,028) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 14,517 | $ 14,018 | $ 12,028 |
Gross additions, current year | 3,756 | 1,954 | 1,957 |
Gross additions, prior year | 1,762 | 297 | 1,369 |
Settlements | (378) | 0 | 0 |
Lapses on statute of limitations | (2,370) | (1,752) | (1,336) |
Ending balance | $ 17,287 | $ 14,517 | $ 14,018 |
Business Segment Information (S
Business Segment Information (Schedule Of Financial Information About Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 368,810 | $ 354,641 | $ 343,831 | $ 334,263 | $ 335,397 | $ 335,622 | $ 337,745 | $ 325,444 | $ 1,401,545 | $ 1,334,208 | $ 1,266,005 |
Expenses | 966,534 | 921,544 | 864,332 | ||||||||
Operating profit (loss) | 435,011 | 412,664 | 401,673 | ||||||||
Gain on sale of subsidiary | 2,791 | 2,791 | 5,582 | ||||||||
Total profit (loss) | 437,802 | 415,455 | 407,255 | ||||||||
Private Banks [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 457,886 | 456,516 | 441,467 | ||||||||
Expenses | 421,188 | 410,975 | 399,620 | ||||||||
Operating profit (loss) | 36,698 | 45,541 | 41,847 | ||||||||
Gain on sale of subsidiary | 2,791 | 2,791 | 5,582 | ||||||||
Total profit (loss) | 39,489 | 48,332 | 47,429 | ||||||||
Investment Advisors [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 330,677 | 306,620 | 283,811 | ||||||||
Expenses | 180,140 | 171,968 | 146,500 | ||||||||
Operating profit (loss) | 150,537 | 134,652 | 137,311 | ||||||||
Gain on sale of subsidiary | 0 | 0 | 0 | ||||||||
Total profit (loss) | 150,537 | 134,652 | 137,311 | ||||||||
Institutional Investors [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 312,584 | 297,568 | 284,677 | ||||||||
Expenses | 153,117 | 145,851 | 140,659 | ||||||||
Operating profit (loss) | 159,467 | 151,717 | 144,018 | ||||||||
Gain on sale of subsidiary | 0 | 0 | 0 | ||||||||
Total profit (loss) | 159,467 | 151,717 | 144,018 | ||||||||
Investment Managers [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 294,390 | 267,963 | 251,310 | ||||||||
Expenses | 191,127 | 172,094 | 159,176 | ||||||||
Operating profit (loss) | 103,263 | 95,869 | 92,134 | ||||||||
Gain on sale of subsidiary | 0 | 0 | 0 | ||||||||
Total profit (loss) | 103,263 | 95,869 | 92,134 | ||||||||
Investments In New Businesses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 6,008 | 5,541 | 4,740 | ||||||||
Expenses | 20,962 | 20,656 | 18,377 | ||||||||
Operating profit (loss) | (14,954) | (15,115) | (13,637) | ||||||||
Gain on sale of subsidiary | 0 | 0 | 0 | ||||||||
Total profit (loss) | $ (14,954) | $ (15,115) | $ (13,637) |
Business Segment Information (R
Business Segment Information (Reconciliation Of Total Operating Profit Reported For Business Segments To Income From Operations In Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Total operating profit from segments above | $ 435,011 | $ 412,664 | $ 401,673 |
Income from operations | 375,694 | 358,213 | 352,784 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total operating profit from segments above | 435,011 | 412,664 | 401,673 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Corporate overhead expenses | $ (59,317) | $ (54,451) | $ (48,889) |
Business Segment Information 71
Business Segment Information (Schedule Of Additional Information Pertaining To Business Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 81,789 | $ 73,881 | $ 63,346 |
Depreciation | 26,440 | 24,044 | 22,448 |
Amortization | 45,392 | 42,630 | 38,679 |
Assets | 1,636,823 | 1,588,628 | |
Private Banks [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 45,940 | 41,972 | 30,883 |
Depreciation | 13,222 | 12,348 | 13,393 |
Amortization | 31,675 | 29,819 | 24,993 |
Assets | 471,435 | 451,079 | |
Investment Advisors [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 17,610 | 13,206 | 13,783 |
Depreciation | 3,880 | 3,410 | 2,507 |
Amortization | 10,458 | 9,880 | 9,228 |
Assets | 160,717 | 138,459 | |
Institutional Investors [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 4,319 | 5,301 | 4,575 |
Depreciation | 1,367 | 1,200 | 1,041 |
Amortization | 1,674 | 1,558 | 1,430 |
Assets | 109,879 | 105,443 | |
Investment Managers [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 11,209 | 10,119 | 9,505 |
Depreciation | 4,877 | 4,040 | 2,917 |
Amortization | 1,092 | 1,029 | 954 |
Assets | 158,621 | 154,432 | |
Investments In New Businesses [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 726 | 736 | 2,547 |
Depreciation | 2,197 | 2,278 | 1,983 |
Amortization | 146 | 116 | 1,846 |
Assets | 4,910 | 5,355 | |
Total From Business Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 79,804 | 71,334 | 61,293 |
Depreciation | 25,543 | 23,276 | 21,841 |
Amortization | 45,045 | 42,402 | 38,451 |
Assets | 905,562 | 854,768 | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 1,985 | 2,547 | 2,053 |
Depreciation | 897 | 768 | 607 |
Amortization | 347 | 228 | $ 228 |
Assets | $ 731,261 | $ 733,860 |
Business Segment Information 72
Business Segment Information (Schedule of Revenues And Assets Based On Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 368,810 | $ 354,641 | $ 343,831 | $ 334,263 | $ 335,397 | $ 335,622 | $ 337,745 | $ 325,444 | $ 1,401,545 | $ 1,334,208 | $ 1,266,005 |
Assets | 1,636,823 | 1,588,628 | 1,636,823 | 1,588,628 | |||||||
United States [Member] | |||||||||||
Revenues | 1,191,640 | 1,123,165 | 1,063,223 | ||||||||
Assets | 1,317,235 | 1,330,738 | 1,317,235 | 1,330,738 | |||||||
International Operations [Member] | |||||||||||
Revenues | 209,905 | 211,043 | $ 202,782 | ||||||||
Assets | $ 319,588 | $ 257,890 | $ 319,588 | $ 257,890 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Asset management, administration and distribution fees [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 431,318 | $ 426,301 | $ 411,206 |
Transaction-based and trade execution fees [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 561 | $ 365 | $ 2,332 |
Sale of SEI Asset Korea (Detail
Sale of SEI Asset Korea (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 28, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of subsidiary | $ 2,791 | $ 2,791 | $ 5,582 | |
SEI Asset Korea Co., Ltd. [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Contingent purchase price from sale of SEI AK | $ 11,220 | |||
Gain on sale of subsidiary | $ 2,791 | |||
Gain on sale of subsidiary, diluted earnings per share impact, net | $ 0.01 | $ 0.01 | $ 0.02 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $ 368,810 | $ 354,641 | $ 343,831 | $ 334,263 | $ 335,397 | $ 335,622 | $ 337,745 | $ 325,444 | $ 1,401,545 | $ 1,334,208 | $ 1,266,005 |
Income before income taxes | 133,053 | 130,890 | 124,904 | 119,638 | 115,082 | 120,588 | 133,810 | 131,000 | $ 508,485 | $ 500,480 | $ 489,662 |
Net income | $ 88,611 | $ 86,704 | $ 81,005 | $ 77,497 | $ 81,379 | $ 79,425 | $ 86,240 | $ 84,611 | |||
Basic earnings per common share | $ 0.55 | $ 0.54 | $ 0.50 | $ 0.48 | $ 0.49 | $ 0.48 | $ 0.52 | $ 0.51 | $ 2.07 | $ 2 | $ 1.89 |
Diluted earnings per common share | $ 0.55 | $ 0.53 | $ 0.49 | $ 0.47 | $ 0.48 | $ 0.47 | $ 0.51 | $ 0.50 | $ 2.03 | $ 1.96 | $ 1.85 |
Effective income tax rate | 33.40% | 33.80% | 35.20% | 35.20% | 29.30% | 34.10% | 35.60% | 35.40% | 34.30% | 33.70% | 34.90% |
Extraordinary Item [Member] | |||||||||||
Extraordinary Item [Line Items] | |||||||||||
Performance fee associated with SEI-sponsored investment product | $ 12,286 | ||||||||||
Sub-advisory expense associated with SEI-sponsored investment product | 6,143 | ||||||||||
Profit from extraordinary item, net of tax | $ 4,091 | ||||||||||
Profit from extraordinary item, net of tax, per diluted share | $ 0.03 |
Schedule II - Valuation And Q76
Schedule II - Valuation And Qualifying Accounts And Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance For Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 649 | $ 784 | $ 651 |
Additions, Charged to Costs and Expenses | 0 | 0 | 133 |
Additions, Charged to Other Accounts | 0 | 0 | 0 |
(Deductions) | (126) | (135) | 0 |
Balance at End of Year | 523 | 649 | 784 |
Deferred Income Tax Valuation Allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 14,548 | 16,509 | 14,738 |
Additions, Charged to Costs and Expenses | 0 | (1,142) | 0 |
Additions, Charged to Other Accounts | 3,374 | (819) | 1,771 |
(Deductions) | 0 | 0 | 0 |
Balance at End of Year | $ 17,922 | $ 14,548 | $ 16,509 |