Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 20, 2017 | |
Document Information [Line Items] | ||
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-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SEIC | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 158,107,559 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 660,362 | $ 695,701 |
Restricted cash | 3,502 | 3,500 |
Receivables from investment products | 49,048 | 61,761 |
Receivables, net of allowance for doubtful accounts of $680 and $523 | 262,544 | 227,957 |
Securities owned | 21,412 | 21,339 |
Other current assets | 31,953 | 27,575 |
Total Current Assets | 1,028,821 | 1,037,833 |
Property and Equipment, net of accumulated depreciation of $298,294 and $285,322 | 145,537 | 146,190 |
Capitalized Software, net of accumulated amortization of $328,026 and $303,540 | 304,673 | 295,867 |
Investments Available for Sale | 86,085 | 84,033 |
Investments in Affiliated Funds, at fair value | 5,350 | 4,858 |
Investment in Unconsolidated Affiliate | 45,197 | 50,459 |
Deferred Income Taxes | 1,773 | 2,127 |
Other Assets, net | 16,653 | 15,456 |
Total Assets | 1,634,089 | 1,636,823 |
Current Liabilities: | ||
Accounts payable | 5,407 | 5,966 |
Accrued liabilities | 170,577 | 240,525 |
Deferred revenue | 2,809 | 2,880 |
Total Current Liabilities | 178,793 | 249,371 |
Deferred Tax Liabilities, Net | 69,419 | 69,693 |
Other Long-term Liabilities | 14,142 | 14,645 |
Total Liabilities | 262,354 | 333,709 |
Commitments and Contingencies | ||
SEI Investments shareholders' equity: | ||
Common stock, $.01 par value, 750,000 shares authorized; 157,986 and 159,031 shares issued and outstanding | 1,580 | 1,590 |
Capital in excess of par value | 988,761 | 955,461 |
Retained earnings | 409,409 | 384,018 |
Accumulated other comprehensive loss, net | (28,015) | (37,955) |
Total Shareholders' Equity | 1,371,735 | 1,303,114 |
Total Liabilities and Shareholders' Equity | $ 1,634,089 | $ 1,636,823 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Receivables, allowance for doubtful accounts | $ 680 | $ 523 |
Property and Equipment, accumulated depreciation | 298,294 | 285,322 |
Capitalized Software, accumulated amortization | $ 328,026 | $ 303,540 |
SEI Investments shareholders' equity: | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 157,986,000 | 159,031,000 |
Common stock, shares outstanding | 157,986,000 | 159,031,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Asset management, administration and distribution fees | $ 288,490 | $ 262,275 | $ 567,055 | $ 513,712 |
Information processing and software servicing fees | 77,816 | 74,992 | 152,579 | 148,391 |
Transaction-based and trade execution fees | 6,025 | 6,564 | 12,681 | 15,991 |
Total revenues | 372,331 | 343,831 | 732,315 | 678,094 |
Expenses: | ||||
Subadvisory, distribution and other asset management costs | 43,288 | 40,870 | 85,790 | 80,065 |
Software royalties and other information processing costs | 7,712 | 7,677 | 15,374 | 15,425 |
Brokerage commissions | 4,226 | 5,093 | 9,185 | 12,201 |
Compensation, benefits and other personnel | 109,555 | 102,282 | 218,498 | 204,213 |
Stock-based compensation | 6,259 | 4,189 | 12,439 | 7,978 |
Consulting, outsourcing and professional fees | 48,335 | 39,575 | 91,484 | 78,081 |
Data processing and computer related | 17,883 | 15,782 | 34,655 | 31,500 |
Facilities, supplies and other costs | 18,682 | 17,122 | 36,160 | 33,119 |
Amortization | 12,565 | 11,284 | 24,587 | 22,296 |
Depreciation | 6,599 | 6,434 | 13,399 | 12,881 |
Total expenses | 275,104 | 250,308 | 541,571 | 497,759 |
Income from operations | 97,227 | 93,523 | 190,744 | 180,335 |
Net gain from investments | 44 | 250 | 391 | 124 |
Interest and dividend income | 1,686 | 1,033 | 3,029 | 2,116 |
Interest expense | (114) | (187) | (226) | (301) |
Equity in earnings of unconsolidated affiliate | 36,315 | 30,285 | 69,880 | 59,477 |
Gain on sale of subsidiary | 0 | 0 | 0 | 2,791 |
Income before income taxes | 135,158 | 124,904 | 263,818 | 244,542 |
Income taxes | 43,389 | 43,899 | 83,312 | 86,040 |
Net income | $ 91,769 | $ 81,005 | $ 180,506 | $ 158,502 |
Basic earnings per common share | $ 0.58 | $ 0.50 | $ 1.14 | $ 0.98 |
Shares used to compute basic earnings per share | 158,325 | 161,795 | 158,708 | 162,404 |
Diluted earnings per common share | $ 0.57 | $ 0.49 | $ 1.11 | $ 0.96 |
Shares used to compute diluted earnings per share | 161,709 | 165,088 | 162,226 | 165,616 |
Dividends declared per common share | $ 0.28 | $ 0.26 | $ 0.28 | $ 0.26 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 91,769 | $ 81,005 | $ 180,506 | $ 158,502 |
Other comprehensive gain (loss), net of tax: | ||||
Foreign currency translation adjustments | 7,222 | (5,080) | 9,710 | (2,651) |
Unrealized gain (loss) on investments: | ||||
Unrealized gains during the period, net of income taxes of $(51), $(49), $(32) and $(240) | 165 | 20 | 141 | 350 |
Less: reclassification adjustment for losses (gains) realized in net income, net of income taxes of $(53), $12, $(43) and $(91) | 111 | (23) | 89 | 164 |
Unrealized gain (loss) on investments: | 276 | (3) | 230 | 514 |
Total other comprehensive gain (loss), net of tax | 7,498 | (5,083) | 9,940 | (2,137) |
Comprehensive income | $ 99,267 | $ 75,922 | $ 190,446 | $ 156,365 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized (losses) gains during the period, income tax benefit (expense) | $ (51) | $ (49) | $ (32) | $ (240) |
Reclassification adjustment for (gains) losses realized in net income, income tax expense (benefit) | $ (53) | $ 12 | $ (43) | $ (91) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 180,506 | $ 158,502 |
Adjustments to reconcile net income to net cash provided by operating activities (See Note 1) | 4,349 | 4,952 |
Net cash provided by operating activities | 184,855 | 163,454 |
Cash flows from investing activities: | ||
Additions to property and equipment | (10,247) | (9,049) |
Additions to capitalized software | (33,292) | (19,597) |
Purchases of marketable securities | (28,703) | (32,648) |
Prepayments and maturities of marketable securities | 26,811 | 26,148 |
Sales of marketable securities | 0 | 185 |
Receipt of contingent payment from sale of SEI AK | 0 | 2,791 |
Other investing activities | (1,450) | 200 |
Net cash used in investing activities | (46,881) | (31,970) |
Cash flows from financing activities: | ||
Purchase and retirement of common stock | (122,066) | (155,730) |
Proceeds from issuance of common stock | 29,127 | 26,336 |
Payment of dividends | (88,862) | (84,626) |
Net cash used in financing activities | (181,801) | (214,020) |
Effect of exchange rate changes on cash and cash equivalents | 8,488 | (2,358) |
Net decrease in cash and cash equivalents | (35,339) | (84,894) |
Cash and cash equivalents, beginning of period | 695,701 | 679,661 |
Cash and cash equivalents, end of period | $ 660,362 | $ 594,767 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
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 various other 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 which are recognized in Transaction-based and trade execution fees. 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. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain financial information and accompanying note disclosure normally included in the Company’s Annual Report on Form 10-K have been condensed or omitted. The interim financial information is unaudited but reflects all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of financial position of the Company as of June 30, 2017 , the results of operations for the three and six months ended June 30, 2017 and 2016 , and cash flows for the six -month periods ended June 30, 2017 and 2016 . These interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . There have been no significant changes in significant accounting policies during the six months ended June 30, 2017 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 with the exception of the adoption of Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). As required by ASU 2016-09, excess tax benefits recognized on stock-based compensation expense are reflected in the accompanying Consolidated Statements of Operations as a component of the provision for income taxes on a prospective basis (See Note 11). Additionally, excess tax benefits or deficiencies recognized on stock-based compensation expense are classified as an operating activity in the accompanying Consolidated Statements of Cash Flows. The Company has applied this provision retrospectively for the periods prior to the date of adoption. As a result, for the six months ended June 30, 2016 , net cash provided by operating activities increased by $4,004 with a corresponding offset to net cash used for financing activities. ASU 2016-09 also allows for the option to account for forfeitures as they occur when determining the amount of compensation cost to be recognized, rather than estimating expected forfeitures over the course of a vesting period. The Company elected to account for forfeitures as they occur. 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. No adjustments to the Company's prior period reported diluted earnings per share amounts were permitted by ASU 2016-09. The net cumulative effect to the Company from the adoption of ASU 2016-09 was an increase to paid-in capital of $2,582 , a reduction to retained earnings of $1,669 and an increase to deferred tax assets of $913 as of January 1, 2017. Cash and Cash Equivalents Cash and cash equivalents includes $230,721 and $374,760 at June 30, 2017 and December 31, 2016 , respectively, primarily invested in SEI-sponsored open-ended money market mutual funds. The SEI-sponsored mutual funds are Level 1 assets. Restricted Cash Restricted cash includes $3,000 at June 30, 2017 and December 31, 2016 segregated for regulatory purposes related to trade-execution services conducted by SEI Investments (Europe) Limited. Restricted cash also includes $502 and $500 at June 30, 2017 and December 31, 2016 , respectively, segregated in special reserve accounts for the benefit of customers of the Company’s broker-dealer subsidiary, SEI Investments Distribution Co. (SIDCO), in accordance with certain rules established by the Securities and Exchange Commission (SEC) for broker-dealers. Capitalized Software The Company capitalized $33,292 and $19,597 of software development costs during the six months ended June 30, 2017 and 2016 , respectively. The Company's software development costs primarily relate to the continued development of the SEI Wealth Platform SM (the Platform). The Company capitalized $27,994 and $16,120 of software development costs for significant enhancements to the Platform during the six months ended June 30, 2017 and 2016 , respectively. As of June 30, 2017 , the net book value of the Platform was $283,867 . The Platform has an estimated useful life of 15 years and a weighted average remaining life of 5.0 years . Amortization expense for the Platform was $24,486 and $22,049 during the six months ended June 30, 2017 and 2016 , respectively. The Company also capitalized $5,298 and $3,477 of software development costs during the six months ended June 30, 2017 and 2016 , respectively, related to an application for the Investment Managers segment. Capitalized software development costs in-progress at June 30, 2017 associated with the application were $20,806 . The application is not yet ready for use. Earnings per Share The calculations of basic and diluted earnings per share for the three and six months ended June 30, 2017 and 2016 are: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income $ 91,769 $ 81,005 $ 180,506 $ 158,502 Shares used to compute basic earnings per common share 158,325,000 161,795,000 158,708,000 162,404,000 Dilutive effect of stock options 3,384,000 3,293,000 3,518,000 3,212,000 Shares used to compute diluted earnings per common share 161,709,000 165,088,000 162,226,000 165,616,000 Basic earnings per common share $ 0.58 $ 0.50 $ 1.14 $ 0.98 Diluted earnings per common share $ 0.57 $ 0.49 $ 1.11 $ 0.96 During the three months ended June 30 , 2017 and 2016 , employee stock options to purchase 11,255,000 and 10,388,000 shares of common stock with an average exercise price of $37.68 and $34.06 , respectively, were outstanding but not included in the computation of diluted earnings per common share. During the six months ended June 30 , 2017 and 2016 , employee stock options to purchase 11,267,000 and 10,447,000 shares of common stock with an average exercise price of $37.69 and $34.05 , respectively, were outstanding but not included in the computation of diluted earnings per common share. These options for the three and six month periods were 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. Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation. Statements of Cash Flows For purposes of the Consolidated Statements of Cash Flows, the Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. The following table provides the details of the adjustments to reconcile net income to net cash provided by operating activities for the six months ended June 30 : 2017 2016 Net income $ 180,506 $ 158,502 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 13,399 12,881 Amortization 24,587 22,296 Equity in earnings of unconsolidated affiliate (69,880 ) (59,477 ) Distributions received from unconsolidated affiliate 75,142 67,061 Stock-based compensation 12,439 7,978 Provision for losses on receivables 157 297 Deferred income tax expense 918 (311 ) Gain from sale of SEI AK — (2,791 ) Net gain from investments (391 ) (124 ) Tax benefit on stock options exercised (1) — 4,004 Change in other long-term liabilities (503 ) 865 Change in other assets 122 1,084 Other 492 1,030 Change in current assets and liabilities Decrease (increase) in Receivables from investment products 12,713 1,032 Receivables (34,744 ) (19,357 ) Other current assets (4,378 ) (4,006 ) Increase (decrease) in Accounts payable (2,329 ) (970 ) Accrued liabilities (23,324 ) (27,634 ) Deferred revenue (71 ) 1,094 Total adjustments 4,349 4,952 Net cash provided by operating activities $ 184,855 $ 163,454 (1) The tax benefit on stock options exercised for the six months ended June 30, 2016 was reclassified to operating activities from financing activities upon the adoption of ASU 2016-09. New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (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 issued several amendments to the standard, including principal versus agent guidance and identifying performance obligations. ASU 2014-09 will become effective for the Company during the first quarter 2018. The Company continues to assess the impact of ASU 2014-09 on its revenue arrangements. The Company expects the adoption of ASU 2014-09 to have an impact to its business processes, financial reporting disclosures and internal controls over financial reporting (ICFR). As part of its project plan’s preliminary assessment and design implementation phases for the adoption of ASU 2014-09, the Company has adopted implementation controls that allows it to properly and timely adopt ASU 2014-09 on the effective date. The Company will make continuous updates to the quarterly and year-end disclosures, with a focus on both status and internal controls over financial reporting. The new standard will have a significant impact to the Company's financial statement disclosures, including identifying information that the Company will have to develop under the new standard. The Company’s implementation plan includes the following: • Developed a phased implementation project plan with a specific timeline and milestones; • Developed an understanding of the new standard and its requirements; • Analyzed the Company’s revenue streams; • Gathering and evaluating the required and relevant information for ASU 2014-09; and • Continue to monitor the impact of ASU 2014-09 and the various interpretations and supplemental guidance that become available. Upon its initial assessment, the Company has made the following observations: Revenue: • The Company offers many services which are bundled together, and provided and completed for the client on a monthly basis. In assessing these contracts, the Company expects to continue to recognize revenue for these types of services on a monthly basis as the client consumes the benefits continuously over time. Similarly, the Company expects that transaction-based and trade execution fees based on current period activity will not be affected by the adoption of ASU 2014-09. • The Company continues to assess the effect of the adoption of the new standard on the timing of the recognition of implementation fees, which are 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. While the Company has not made a final determination, the timing of the recognition for these revenues may change. • 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. Contract costs: • The Company is in the process of evaluating the costs of obtaining these contracts, especially for the information processing and software servicing fees revenue stream, which are affected by the standard. Sales commissions and contract costs related to fund conversions are also being evaluated. Under current guidance, contract costs are expensed at inception of an agreement but under the new standard, the costs will generally be capitalized and amortized over the period of customer life as defined in the new standard, unless a practical expedient is applied to fully expense contract costs for contracts with an amortization period of one year or less. Transition method: • The new standard provides companies with alternative methods of adoption. The Company is in the process of determining the method of adoption, which depends in part upon the completion of the evaluation of the remaining revenue arrangements. The Company expects to select the transition method by the third quarter of 2017. Upon completion of the Company’s implementation plan and evaluation of the remaining revenue contracts, the Company plans to adopt additional controls around internal controls over financial reporting and its business processes for any new revenue arrangements that the Company enters. The Company is on target to complete its assessment of ASU 2014-09 and the impact on the Company’s consolidated financial statements and related disclosures as of January 1, 2018. 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. |
Investment In Unconsolidated Af
Investment In Unconsolidated Affiliate | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment In Unconsolidated Affiliate | Investment in Unconsolidated Affiliate LSV Asset Management The Company has an investment in 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 affiliate on the accompanying Consolidated Balance Sheets and its interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliate on the accompanying Consolidated Statements of Operations. At June 30, 2017 , the Company’s total investment in LSV was $45,197 . The Company receives partnership distributions from LSV on a quarterly basis. The Company received partnership distributions from LSV of $75,142 and $67,061 in the six months ended June 30 , 2017 and 2016 , respectively. 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’s proportionate share in the earnings of LSV was $36,315 and $30,285 during the three months ended June 30 , 2017 and 2016 , respectively. During the six months ended June 30 , 2017 and 2016 , the Company's proportionate share in the earnings of LSV was $69,880 and $59,477 , respectively. These tables contain condensed financial information of LSV: Condensed Statement of Operations Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues $ 119,320 $ 95,825 $ 229,273 $ 188,478 Net income 93,372 77,790 179,587 152,247 Condensed Balance Sheets June 30, 2017 December 31, 2016 Current assets $ 128,808 $ 125,872 Non-current assets 1,683 1,927 Total assets $ 130,491 $ 127,799 Current liabilities $ 55,427 $ 39,303 Partners’ capital 75,064 88,496 Total liabilities and partners’ capital $ 130,491 $ 127,799 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, LSV Employee Group III purchased a portion of the partnership interest of three existing LSV employees for $77,700 , of which $69,930 was financed through two syndicated term loan facilities contained in a credit agreement with The PrivateBank and Trust Company. The Company provided an unsecured guaranty for $45,000 of the obligations of LSV Employee Group III to the lenders through a guaranty agreement. The lenders had the right to seek payment from the Company in the event of a default by LSV Employee Group III. LSV provided an unsecured guaranty for $24,930 of the obligations of LSV Employee Group III to the lenders through a separate guaranty agreement. The Company’s direct interest in LSV was unchanged as a result of this transaction. The Company determined that LSV Employee Group III was a variable interest entity (VIE); however, the Company was not considered the primary beneficiary because it did 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. In September 2014 and June 2017, LSV Employee Group III made the final principal payments related to the term loans guaranteed by LSV and the Company, respectively, and has no further obligation regarding the agreement. The Company has no other interests in LSV Employee Group III and, therefore, no longer considers LSV Employee Group III to be a VIE. |
Variable Interest Entities - In
Variable Interest Entities - Investment Products | 6 Months Ended |
Jun. 30, 2017 | |
Financial Support for Nonconsolidated Legal Entity [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 entities 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 entities either do not meet the definition of a VIE or the Company does not hold a variable interest in the entities. The entities either qualify for the money market scope exception, or are entities in which the Company’s asset management, distribution, administration and custodial fees are commensurate with the services provided and include fair terms and conditions, or are entities that are limited partnerships which have substantive kick-out rights. The Company acts as a fiduciary and does not hold any other interests other than insignificant seed money investments in the pooled investment vehicles. 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 $6,606 and $9,891 in fees during the three months ended June 30, 2017 and 2016 , respectively. During the six months ended June 30 , 2017 and 2016 , the Company waived $13,678 and $22,368 , respectively, in fees. |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 6 Months Ended |
Jun. 30, 2017 | |
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: June 30, 2017 December 31, 2016 Trade receivables $ 56,262 $ 48,683 Fees earned, not billed 193,943 168,971 Other receivables 13,019 10,826 263,224 228,480 Less: Allowance for doubtful accounts (680 ) (523 ) $ 262,544 $ 227,957 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. Receivables from investment products on the accompanying Consolidated Balance Sheets primarily represent fees receivable for distribution, investment advisory, and administration services to various regulated investment companies and other investment products sponsored by SEI. Property and Equipment Property and Equipment on the accompanying Consolidated Balance Sheets consists of: June 30, 2017 December 31, 2016 Buildings $ 154,007 $ 152,171 Equipment 111,363 106,759 Land 10,030 10,030 Purchased software 131,494 128,008 Furniture and fixtures 17,607 17,292 Leasehold improvements 16,700 15,175 Construction in progress 2,630 2,077 443,831 431,512 Less: Accumulated depreciation (298,294 ) (285,322 ) Property and Equipment, net $ 145,537 $ 146,190 The Company recognized $13,399 and $12,881 in depreciation expense related to property and equipment for the six months ended June 30 , 2017 and 2016 , respectively. Accrued Liabilities Accrued liabilities on the accompanying Consolidated Balance Sheets consist of: June 30, 2017 December 31, 2016 Accrued employee compensation $ 48,510 $ 79,735 Accrued consulting, outsourcing and professional fees 34,822 24,428 Accrued sub-advisory, distribution and other asset management fees 36,935 41,666 Accrued dividend payable — 44,596 Other accrued liabilities 50,310 50,100 Total accrued liabilities $ 170,577 $ 240,525 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
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 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 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. This investment has not been classified in the fair value hierarchy but is presented in the tables below to permit reconciliation to the amounts presented on the accompanying Consolidated Balance Sheets. 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 pricing policies and procedures applied during the six months ended June 30 , 2017 were consistent with those as described in our Annual Report on Form 10-K at December 31, 2016 . The Company had no Level 3 financial assets or liabilities at June 30, 2017 or December 31, 2016 . There were no transfers of financial assets between levels within the fair value hierarchy during the six months ended June 30 , 2017 . The fair value of certain financial assets and liabilities of the Company was determined using the following inputs: Fair Value Measurements at the End of the Reporting Period Using Assets June 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Equity available-for-sale securities $ 10,172 $ 10,172 $ — Fixed-income available-for-sale securities 75,913 — 75,913 Fixed-income securities owned 21,412 — 21,412 Investment funds sponsored by LSV (1) 5,350 $ 112,847 $ 10,172 $ 97,325 Fair Value Measurements at the End of the Reporting Period Using Assets December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) 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 (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 | 6 Months Ended |
Jun. 30, 2017 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Investments Available for Sale Investments available for sale classified as non-current assets consist of: At June 30, 2017 Cost Amount Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 7,330 $ 82 $ (574 ) $ 6,838 Equities and other mutual funds 3,213 121 — 3,334 Debt securities 76,372 — (459 ) 75,913 $ 86,915 $ 203 $ (1,033 ) $ 86,085 At December 31, 2016 Cost Amount 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 Net unrealized losses at June 30, 2017 and December 31, 2016 were $606 (net of income tax benefit of $224 ) and $836 (net of income tax benefit of $299 ), 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 $264 and gross realized losses of $396 from available-for-sale securities during the six months ended June 30 , 2017 . There were gross realized gains of $237 and gross realized losses of $492 from available-for-sale securities during the six months ended June 30 , 2016 . Gains and losses from available-for-sale securities, including amounts reclassified from accumulated comprehensive income, are reflected in Net gain from investments on the accompanying Consolidated Statements of Operations. Investments in Affiliated Funds The Company has an investment in 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 from investments on the accompanying Consolidated Statements of Operations. The investment primarily consists of U.S. dollar denominated funds that invest primarily in securities of Canadian, Australian and Japanese companies as well as various other global securities. The underlying securities held by the funds are translated into U.S. dollars within the funds. The funds had a fair value of $5,350 and $4,858 at June 30, 2017 and December 31, 2016 , respectively. The Company recognized gains of $194 and $492 during the three and six months ended June 30, 2017 , respectively, from the change in fair value of the funds. The Company recognized gains of $237 and $381 during the three and six months ended June 30, 2016 , respectively, from the change in fair value of the funds. Securities Owned The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency 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 $21,412 and $21,339 at June 30, 2017 and December 31, 2016 , respectively. There were no material net gains or losses from the change in fair value of the securities during the three and six months ended June 30, 2017 and 2016 . |
Line of Credit
Line of Credit | 6 Months Ended |
Jun. 30, 2017 | |
Line of Credit Facility [Abstract] | |
Lines of Credit | Line of Credit The Company has a five-year $300,000 Credit Agreement (the Credit Facility) with Wells Fargo Bank, National Association, 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 June 30, 2017 . The Company was in compliance with all covenants of the Credit Facility during the six months ended June 30, 2017 . During July 2017, the Company elected to borrow $40,000 under the Credit Facility for cash management purposes subsequent to the funding of an acquisition (See Note 14). As of July 20, 2017, the amount of the Credit Facility that is available for general corporate purposes was $260,000 . |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Stock-Based Compensation The Company has only non-qualified stock options outstanding under its equity compensation plans. All outstanding stock options have performance-based vesting provisions specific to each option grant that tie the vesting of the applicable 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. The amount of stock-based compensation expense is based upon management’s estimate of when the earnings per share targets may be achieved. The Company recognized stock-based compensation expense in its Consolidated Financial Statements in the three and six months ended June 30, 2017 and 2016 , respectively, as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Stock-based compensation expense $ 6,259 $ 4,189 $ 12,439 $ 7,978 Less: Deferred tax benefit (2,189 ) (1,469 ) (4,342 ) (2,768 ) Stock-based compensation expense, net of tax $ 4,070 $ 2,720 $ 8,097 $ 5,210 As of June 30, 2017 , there was approximately $64,208 of unrecognized compensation cost remaining related to unvested employee stock options that management expects will vest and is being amortized. The Company issues new common shares associated with the exercise of stock options. The total intrinsic value of options exercised during the six months ended June 30 , 2017 was $37,976 . The total options exercisable as of June 30, 2017 had an intrinsic value of $176,559 . The total intrinsic value for options exercisable is calculated as the difference between the market value of the Company’s common stock as of June 30, 2017 and the weighted average exercise price of the shares. The market value of the Company’s common stock as of June 30, 2017 was $53.78 as reported by the Nasdaq Stock Market, LLC. The weighted average exercise price of the options exercisable as of June 30, 2017 was $21.21 . Total options that were outstanding as of June 30, 2017 were 16,676,000 . Total options that were exercisable as of June 30, 2017 were 5,421,000 . Common Stock Buyback The Company’s Board of Directors, under multiple authorizations, has authorized the repurchase of the Company’s common stock on the open market or through private transactions. The Company purchased 2,357,000 shares at a total cost of $120,041 during the six months ended June 30 , 2017 , which reduced the total shares outstanding of common stock. The cost of stock purchases during the period includes the cost of certain transactions that settled in the following quarter. As of June 30, 2017 , the Company had approximately $98,710 of authorization remaining for the purchase of common stock under the program. 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. Cash Dividend On May 24, 2017 , the Board of Directors declared a cash dividend of $0.28 per share on the Company's common stock, which was paid on June 16, 2017 , to shareholders of record on June 7, 2017 . Cash dividends declared during the six months ended June 30 , 2017 and 2016 were $44,264 and $42,001 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss The components of Accumulated other comprehensive loss, net of tax, are as follows: Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Loss Balance, January 1, 2017 $ (37,119 ) $ (836 ) $ (37,955 ) Other comprehensive gain before reclassifications 9,710 141 9,851 Amounts reclassified from accumulated other comprehensive loss — 89 89 Net current-period other comprehensive gain 9,710 230 9,940 Balance, June 30, 2017 $ (27,409 ) $ (606 ) $ (28,015 ) |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
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 to retirement plan sponsors, healthcare systems 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. The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes. There are no inter-segment revenues for the three and six months ended June 30, 2017 and 2016 . Management evaluates Company assets on a consolidated basis during interim periods. The accounting policies of the reportable business segments are the same as those described in Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The following tables highlight certain financial information about each of the Company’s business segments for the three months ended June 30, 2017 and 2016 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended June 30, 2017 Revenues $ 116,184 $ 92,746 $ 78,068 $ 83,616 $ 1,717 $ 372,331 Expenses 112,353 49,380 38,668 53,847 5,124 259,372 Operating profit (loss) $ 3,831 $ 43,366 $ 39,400 $ 29,769 $ (3,407 ) $ 112,959 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended June 30, 2016 Revenues $ 114,836 $ 81,883 $ 74,674 $ 70,938 $ 1,500 $ 343,831 Expenses 102,862 44,721 36,550 46,968 5,355 236,456 Operating profit (loss) $ 11,974 $ 37,162 $ 38,124 $ 23,970 $ (3,855 ) $ 107,375 A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the three months ended June 30 , 2017 and 2016 is as follows: 2017 2016 Total operating profit from segments $ 112,959 $ 107,375 Corporate overhead expenses (15,732 ) (13,852 ) Income from operations $ 97,227 $ 93,523 The following tables provide additional information for the three months ended June 30 , 2017 and 2016 pertaining to our business segments: Capital Expenditures (1) Depreciation 2017 2016 2017 2016 Private Banks $ 9,479 $ 8,454 $ 4,172 $ 3,199 Investment Advisors 3,698 3,267 802 964 Institutional Investors 1,086 696 244 339 Investment Managers 8,665 1,743 1,028 1,172 Investments in New Businesses 153 121 171 547 Total from business segments $ 23,081 $ 14,281 $ 6,417 $ 6,221 Corporate overhead 392 279 182 213 $ 23,473 $ 14,560 $ 6,599 $ 6,434 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization 2017 2016 Private Banks $ 8,876 $ 7,769 Investment Advisors 2,897 2,585 Institutional Investors 426 425 Investment Managers 275 275 Investments in New Businesses 41 40 Total from business segments $ 12,515 $ 11,094 Corporate overhead 50 190 $ 12,565 $ 11,284 The following tables highlight certain financial information about each of the Company’s business segments for the six months ended June 30, 2017 and 2016 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Six Months Ended June 30, 2017 Revenues $ 228,818 $ 180,984 $ 155,072 $ 164,103 $ 3,338 $ 732,315 Expenses 220,903 96,919 77,496 105,912 10,004 511,234 Operating profit (loss) $ 7,915 $ 84,065 $ 77,576 $ 58,191 $ (6,666 ) $ 221,081 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Six Months Ended June 30, 2016 Revenues $ 228,197 $ 158,562 $ 147,571 $ 140,856 $ 2,908 $ 678,094 Expenses 206,603 89,495 71,932 92,243 10,587 470,860 Operating profit (loss) $ 21,594 $ 69,067 $ 75,639 $ 48,613 $ (7,679 ) $ 207,234 Gain on sale of subsidiary 2,791 — — — — 2,791 Segment profit (loss) $ 24,385 $ 69,067 $ 75,639 $ 48,613 $ (7,679 ) $ 210,025 A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the six months ended June 30 , 2017 and 2016 is as follows: 2017 2016 Total operating profit from segments $ 221,081 $ 207,234 Corporate overhead expenses (30,337 ) (26,899 ) Income from operations $ 190,744 $ 180,335 The following tables provide additional information for the six months ended June 30 , 2017 and 2016 pertaining to our business segments: Capital Expenditures (1) Depreciation 2017 2016 2017 2016 Private Banks $ 22,329 $ 17,166 $ 8,582 $ 6,380 Investment Advisors 8,230 6,119 1,535 1,940 Institutional Investors 1,897 1,492 471 673 Investment Managers 10,280 3,065 1,944 2,362 Investments in New Businesses 259 215 539 1,095 Total from business segments $ 42,995 $ 28,057 $ 13,071 $ 12,450 Corporate Overhead 544 589 328 431 $ 43,539 $ 28,646 $ 13,399 $ 12,881 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization 2017 2016 Private Banks $ 17,339 $ 15,480 Investment Advisors 5,747 5,138 Institutional Investors 749 824 Investment Managers 491 541 Investments in New Businesses 160 66 Total from business segments $ 24,486 $ 22,049 Corporate Overhead 101 247 $ 24,587 $ 22,296 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The gross liability for unrecognized tax benefits at June 30, 2017 and December 31, 2016 was $18,856 and $17,287 , respectively, exclusive of interest and penalties, of which $16,392 and $14,868 would affect the effective tax rate if the Company were to recognize the tax benefit. The Company classifies interest and penalties on unrecognized tax benefits as income tax expense. As of June 30, 2017 and December 31, 2016 , the combined amount of accrued interest and penalties related to tax positions taken on tax returns was $1,579 and $1,224 , respectively. June 30, 2017 December 31, 2016 Gross liability for unrecognized tax benefits, exclusive of interest and penalties $ 18,856 $ 17,287 Interest and penalties on unrecognized benefits 1,579 1,224 Total gross uncertain tax positions $ 20,435 $ 18,511 Amount included in Current liabilities $ 6,293 $ 3,866 Amount included in Other long-term liabilities 14,142 14,645 $ 20,435 $ 18,511 The Company's effective income tax rate for the three and six months ended June 30, 2017 and 2016 differs from the federal income tax statutory rate due to the following: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State taxes, net of federal tax benefit 1.7 1.4 1.7 1.4 Foreign tax expense and tax rate differential (1.0 ) (0.7 ) (1.0 ) (0.7 ) Tax benefit from stock option exercises (3.0 ) — (3.6 ) — Other, net (0.6 ) (0.5 ) (0.5 ) (0.5 ) 32.1 % 35.2 % 31.6 % 35.2 % The decrease in the tax rates for the three and six months ended June 30, 2017 was primarily due to the adoption of ASU 2016-09. Under this standard, the tax effects of stock option exercises are treated as discrete items in the reporting period in which they occur. Therefore, the tax effect of stock option exercises is not spread over the entire year through the use of the annual effective tax rate, but instead is recorded entirely in the period in which the tax deduction arose. Accordingly, the Company recorded the income tax benefit as a discrete item in income for the three and six months ended June 30, 2017. The Company's effective tax rate could fluctuate significantly on a quarterly basis due to the tax effects of stock-based compensation. The Company files income tax returns in the United States on a consolidated basis and in many U.S. state and foreign jurisdictions. The Company is subject to examination of income tax returns by the Internal Revenue Service (IRS) and other domestic and foreign tax authorities. 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 2010 . The Company estimates it will recognize $6,293 of gross unrecognized tax benefits which is expected to be paid within one year due to the expiration of the statute of limitations and resolution of income tax audits and is netted against the current payable account. These unrecognized tax benefits are related to tax positions taken on certain federal, state, and foreign tax returns. However, the timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. While it is reasonably possible that some issues under examination could be resolved in the next twelve months, based upon the current facts and circumstances, the Company cannot reasonably estimate the timing of such resolution or the total range of potential changes as it relates to the current unrecognized tax benefits that are recorded as part of the Company’s financial statements. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies 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. During February 2017, SEI filed its response to the Complaint and in March 2017 the District Court for the Northern District of Texas approved the stipulated dismissal of all claims in this complaint predicated on Section 712(D) or Section 714(A) of the Louisiana Securities Law. 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. |
Sale of SEI Asset Korea
Sale of SEI Asset Korea | 6 Months Ended |
Jun. 30, 2017 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [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 $2,791 , or $0.01 diluted earnings per share, during the six months ended June 30, 2016 representing the final annual payment under the terms of the agreement. The Company's gain from the sale of SEI AK are included in Gain on sale of subsidiary on the accompanying Consolidated Statement of Operations. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On July 3, 2017, the Company acquired all ownership interests of Archway Technology Partners, LLC, Archway Finance & Operations, Inc. and Keystone Capital Holdings, LLC (collectively, Archway), a provider of operating technologies and services to the family office industry, from Keystone International Holdings, Inc. The purchase price paid by the Company included approximately $81,532 in cash consideration, subject to adjustment and including transaction costs, with up to an additional $8,000 payable to the seller as a contingent purchase price with respect to two one-year periods ending December 31, 2017 and 2018 depending upon whether Archway achieves specified financial measures during such periods. Archway will be integrated into the Company's Investment Managers business segment. The initial purchase accounting for this transaction has not yet been completed given the short period of time between the acquisition date and the issuance of these financial statements. Subsequent to the funding of the cash consideration for the acquisition of Archway, the Company elected to borrow $40,000 under the Credit Facility for other cash management purposes (See Note 7). |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain financial information and accompanying note disclosure normally included in the Company’s Annual Report on Form 10-K have been condensed or omitted. The interim financial information is unaudited but reflects all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of financial position of the Company as of June 30, 2017 , the results of operations for the three and six months ended June 30, 2017 and 2016 , and cash flows for the six -month periods ended June 30, 2017 and 2016 . These interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . There have been no significant changes in significant accounting policies during the six months ended June 30, 2017 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 with the exception of the adoption of Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). As required by ASU 2016-09, excess tax benefits recognized on stock-based compensation expense are reflected in the accompanying Consolidated Statements of Operations as a component of the provision for income taxes on a prospective basis (See Note 11). Additionally, excess tax benefits or deficiencies recognized on stock-based compensation expense are classified as an operating activity in the accompanying Consolidated Statements of Cash Flows. The Company has applied this provision retrospectively for the periods prior to the date of adoption. As a result, for the six months ended June 30, 2016 , net cash provided by operating activities increased by $4,004 with a corresponding offset to net cash used for financing activities. ASU 2016-09 also allows for the option to account for forfeitures as they occur when determining the amount of compensation cost to be recognized, rather than estimating expected forfeitures over the course of a vesting period. The Company elected to account for forfeitures as they occur. 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. No adjustments to the Company's prior period reported diluted earnings per share amounts were permitted by ASU 2016-09. The net cumulative effect to the Company from the adoption of ASU 2016-09 was an increase to paid-in capital of $2,582 , a reduction to retained earnings of $1,669 and an increase to deferred tax assets of $913 as of January 1, 2017. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation. |
Cash and Cash Equivalents | Statements of Cash Flows For purposes of the Consolidated Statements of Cash Flows, the Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (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 issued several amendments to the standard, including principal versus agent guidance and identifying performance obligations. ASU 2014-09 will become effective for the Company during the first quarter 2018. The Company continues to assess the impact of ASU 2014-09 on its revenue arrangements. The Company expects the adoption of ASU 2014-09 to have an impact to its business processes, financial reporting disclosures and internal controls over financial reporting (ICFR). As part of its project plan’s preliminary assessment and design implementation phases for the adoption of ASU 2014-09, the Company has adopted implementation controls that allows it to properly and timely adopt ASU 2014-09 on the effective date. The Company will make continuous updates to the quarterly and year-end disclosures, with a focus on both status and internal controls over financial reporting. The new standard will have a significant impact to the Company's financial statement disclosures, including identifying information that the Company will have to develop under the new standard. The Company’s implementation plan includes the following: • Developed a phased implementation project plan with a specific timeline and milestones; • Developed an understanding of the new standard and its requirements; • Analyzed the Company’s revenue streams; • Gathering and evaluating the required and relevant information for ASU 2014-09; and • Continue to monitor the impact of ASU 2014-09 and the various interpretations and supplemental guidance that become available. Upon its initial assessment, the Company has made the following observations: Revenue: • The Company offers many services which are bundled together, and provided and completed for the client on a monthly basis. In assessing these contracts, the Company expects to continue to recognize revenue for these types of services on a monthly basis as the client consumes the benefits continuously over time. Similarly, the Company expects that transaction-based and trade execution fees based on current period activity will not be affected by the adoption of ASU 2014-09. • The Company continues to assess the effect of the adoption of the new standard on the timing of the recognition of implementation fees, which are 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. While the Company has not made a final determination, the timing of the recognition for these revenues may change. • 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. Contract costs: • The Company is in the process of evaluating the costs of obtaining these contracts, especially for the information processing and software servicing fees revenue stream, which are affected by the standard. Sales commissions and contract costs related to fund conversions are also being evaluated. Under current guidance, contract costs are expensed at inception of an agreement but under the new standard, the costs will generally be capitalized and amortized over the period of customer life as defined in the new standard, unless a practical expedient is applied to fully expense contract costs for contracts with an amortization period of one year or less. Transition method: • The new standard provides companies with alternative methods of adoption. The Company is in the process of determining the method of adoption, which depends in part upon the completion of the evaluation of the remaining revenue arrangements. The Company expects to select the transition method by the third quarter of 2017. Upon completion of the Company’s implementation plan and evaluation of the remaining revenue contracts, the Company plans to adopt additional controls around internal controls over financial reporting and its business processes for any new revenue arrangements that the Company enters. The Company is on target to complete its assessment of ASU 2014-09 and the impact on the Company’s consolidated financial statements and related disclosures as of January 1, 2018. 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. |
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 affiliate on the accompanying Consolidated Balance Sheets and its interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliate on the accompanying Consolidated Statements of Operations. |
Variable Interest Entities | The Company has concluded that it is not the primary beneficiary of the entities 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 entities either do not meet the definition of a VIE or the Company does not hold a variable interest in the entities. The entities either qualify for the money market scope exception, or are entities in which the Company’s asset management, distribution, administration and custodial fees are commensurate with the services provided and include fair terms and conditions, or are entities that are limited partnerships which have substantive kick-out rights. The Company acts as a fiduciary and does not hold any other interests other than insignificant seed money investments in the pooled investment vehicles. For this reason, the Company also concluded that it is not required to consolidate the pooled investment vehicles under the VOE model. |
Fair Value of Financial Instruments | 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 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 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. This investment has not been classified in the fair value hierarchy but is presented in the tables below to permit reconciliation to the amounts presented on the accompanying Consolidated Balance Sheets. 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 pricing policies and procedures applied during the six months ended June 30 , 2017 were consistent with those as described in our Annual Report on Form 10-K at December 31, 2016 . |
Investments in Affiliated Funds | 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. This investment has not been classified in the fair value hierarchy but is presented in the tables below to permit reconciliation to the amounts presented on the accompanying Consolidated Balance Sheets. |
Available-for-sale Securities | These net unrealized losses are reported as a separate component of Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets. |
Securities Owned | The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency 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. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Calculation Of Basic And Diluted Earnings Per Share | The calculations of basic and diluted earnings per share for the three and six months ended June 30, 2017 and 2016 are: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income $ 91,769 $ 81,005 $ 180,506 $ 158,502 Shares used to compute basic earnings per common share 158,325,000 161,795,000 158,708,000 162,404,000 Dilutive effect of stock options 3,384,000 3,293,000 3,518,000 3,212,000 Shares used to compute diluted earnings per common share 161,709,000 165,088,000 162,226,000 165,616,000 Basic earnings per common share $ 0.58 $ 0.50 $ 1.14 $ 0.98 Diluted earnings per common share $ 0.57 $ 0.49 $ 1.11 $ 0.96 |
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities | The following table provides the details of the adjustments to reconcile net income to net cash provided by operating activities for the six months ended June 30 : 2017 2016 Net income $ 180,506 $ 158,502 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 13,399 12,881 Amortization 24,587 22,296 Equity in earnings of unconsolidated affiliate (69,880 ) (59,477 ) Distributions received from unconsolidated affiliate 75,142 67,061 Stock-based compensation 12,439 7,978 Provision for losses on receivables 157 297 Deferred income tax expense 918 (311 ) Gain from sale of SEI AK — (2,791 ) Net gain from investments (391 ) (124 ) Tax benefit on stock options exercised (1) — 4,004 Change in other long-term liabilities (503 ) 865 Change in other assets 122 1,084 Other 492 1,030 Change in current assets and liabilities Decrease (increase) in Receivables from investment products 12,713 1,032 Receivables (34,744 ) (19,357 ) Other current assets (4,378 ) (4,006 ) Increase (decrease) in Accounts payable (2,329 ) (970 ) Accrued liabilities (23,324 ) (27,634 ) Deferred revenue (71 ) 1,094 Total adjustments 4,349 4,952 Net cash provided by operating activities $ 184,855 $ 163,454 (1) The tax benefit on stock options exercised for the six months ended June 30, 2016 was reclassified to operating activities from financing activities upon the adoption of ASU 2016-09. |
Investment In Unconsolidated 24
Investment In Unconsolidated Affiliate (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Condensed financial information of LSV | These tables contain condensed financial information of LSV: Condensed Statement of Operations Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues $ 119,320 $ 95,825 $ 229,273 $ 188,478 Net income 93,372 77,790 179,587 152,247 Condensed Balance Sheets June 30, 2017 December 31, 2016 Current assets $ 128,808 $ 125,872 Non-current assets 1,683 1,927 Total assets $ 130,491 $ 127,799 Current liabilities $ 55,427 $ 39,303 Partners’ capital 75,064 88,496 Total liabilities and partners’ capital $ 130,491 $ 127,799 |
Composition of Certain Financ25
Composition of Certain Financial Statement Captions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Items Included in Consolidated Statement of Financial Condition [Abstract] | |
Receivables | Receivables on the accompanying Consolidated Balance Sheets consist of: June 30, 2017 December 31, 2016 Trade receivables $ 56,262 $ 48,683 Fees earned, not billed 193,943 168,971 Other receivables 13,019 10,826 263,224 228,480 Less: Allowance for doubtful accounts (680 ) (523 ) $ 262,544 $ 227,957 |
Property And Equipment | Property and Equipment on the accompanying Consolidated Balance Sheets consists of: June 30, 2017 December 31, 2016 Buildings $ 154,007 $ 152,171 Equipment 111,363 106,759 Land 10,030 10,030 Purchased software 131,494 128,008 Furniture and fixtures 17,607 17,292 Leasehold improvements 16,700 15,175 Construction in progress 2,630 2,077 443,831 431,512 Less: Accumulated depreciation (298,294 ) (285,322 ) Property and Equipment, net $ 145,537 $ 146,190 |
Accrued Liabilities | Accrued liabilities on the accompanying Consolidated Balance Sheets consist of: June 30, 2017 December 31, 2016 Accrued employee compensation $ 48,510 $ 79,735 Accrued consulting, outsourcing and professional fees 34,822 24,428 Accrued sub-advisory, distribution and other asset management fees 36,935 41,666 Accrued dividend payable — 44,596 Other accrued liabilities 50,310 50,100 Total accrued liabilities $ 170,577 $ 240,525 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 the End of the Reporting Period Using Assets June 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Equity available-for-sale securities $ 10,172 $ 10,172 $ — Fixed-income available-for-sale securities 75,913 — 75,913 Fixed-income securities owned 21,412 — 21,412 Investment funds sponsored by LSV (1) 5,350 $ 112,847 $ 10,172 $ 97,325 Fair Value Measurements at the End of the Reporting Period Using Assets December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) 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 (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 (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Marketable Securities [Abstract] | |
Investments Available For Sale | Investments available for sale classified as non-current assets consist of: At June 30, 2017 Cost Amount Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 7,330 $ 82 $ (574 ) $ 6,838 Equities and other mutual funds 3,213 121 — 3,334 Debt securities 76,372 — (459 ) 75,913 $ 86,915 $ 203 $ (1,033 ) $ 86,085 At December 31, 2016 Cost Amount 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 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | The Company recognized stock-based compensation expense in its Consolidated Financial Statements in the three and six months ended June 30, 2017 and 2016 , respectively, as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Stock-based compensation expense $ 6,259 $ 4,189 $ 12,439 $ 7,978 Less: Deferred tax benefit (2,189 ) (1,469 ) (4,342 ) (2,768 ) Stock-based compensation expense, net of tax $ 4,070 $ 2,720 $ 8,097 $ 5,210 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss), Net Of Tax | The components of Accumulated other comprehensive loss, net of tax, are as follows: Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Loss Balance, January 1, 2017 $ (37,119 ) $ (836 ) $ (37,955 ) Other comprehensive gain before reclassifications 9,710 141 9,851 Amounts reclassified from accumulated other comprehensive loss — 89 89 Net current-period other comprehensive gain 9,710 230 9,940 Balance, June 30, 2017 $ (27,409 ) $ (606 ) $ (28,015 ) |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |
Schedule Of Financial Information About Business Segments | The following tables highlight certain financial information about each of the Company’s business segments for the three months ended June 30, 2017 and 2016 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended June 30, 2017 Revenues $ 116,184 $ 92,746 $ 78,068 $ 83,616 $ 1,717 $ 372,331 Expenses 112,353 49,380 38,668 53,847 5,124 259,372 Operating profit (loss) $ 3,831 $ 43,366 $ 39,400 $ 29,769 $ (3,407 ) $ 112,959 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended June 30, 2016 Revenues $ 114,836 $ 81,883 $ 74,674 $ 70,938 $ 1,500 $ 343,831 Expenses 102,862 44,721 36,550 46,968 5,355 236,456 Operating profit (loss) $ 11,974 $ 37,162 $ 38,124 $ 23,970 $ (3,855 ) $ 107,375 The following tables highlight certain financial information about each of the Company’s business segments for the six months ended June 30, 2017 and 2016 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Six Months Ended June 30, 2017 Revenues $ 228,818 $ 180,984 $ 155,072 $ 164,103 $ 3,338 $ 732,315 Expenses 220,903 96,919 77,496 105,912 10,004 511,234 Operating profit (loss) $ 7,915 $ 84,065 $ 77,576 $ 58,191 $ (6,666 ) $ 221,081 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Six Months Ended June 30, 2016 Revenues $ 228,197 $ 158,562 $ 147,571 $ 140,856 $ 2,908 $ 678,094 Expenses 206,603 89,495 71,932 92,243 10,587 470,860 Operating profit (loss) $ 21,594 $ 69,067 $ 75,639 $ 48,613 $ (7,679 ) $ 207,234 Gain on sale of subsidiary 2,791 — — — — 2,791 Segment profit (loss) $ 24,385 $ 69,067 $ 75,639 $ 48,613 $ (7,679 ) $ 210,025 |
Reconciliation Of Total Operating Profit Reported For Business Segments To Income From Operations In Consolidated Statements Of Operations | A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the six months ended June 30 , 2017 and 2016 is as follows: 2017 2016 Total operating profit from segments $ 221,081 $ 207,234 Corporate overhead expenses (30,337 ) (26,899 ) Income from operations $ 190,744 $ 180,335 A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the three months ended June 30 , 2017 and 2016 is as follows: 2017 2016 Total operating profit from segments $ 112,959 $ 107,375 Corporate overhead expenses (15,732 ) (13,852 ) Income from operations $ 97,227 $ 93,523 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | The following tables provide additional information for the six months ended June 30 , 2017 and 2016 pertaining to our business segments: Capital Expenditures (1) Depreciation 2017 2016 2017 2016 Private Banks $ 22,329 $ 17,166 $ 8,582 $ 6,380 Investment Advisors 8,230 6,119 1,535 1,940 Institutional Investors 1,897 1,492 471 673 Investment Managers 10,280 3,065 1,944 2,362 Investments in New Businesses 259 215 539 1,095 Total from business segments $ 42,995 $ 28,057 $ 13,071 $ 12,450 Corporate Overhead 544 589 328 431 $ 43,539 $ 28,646 $ 13,399 $ 12,881 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization 2017 2016 Private Banks $ 17,339 $ 15,480 Investment Advisors 5,747 5,138 Institutional Investors 749 824 Investment Managers 491 541 Investments in New Businesses 160 66 Total from business segments $ 24,486 $ 22,049 Corporate Overhead 101 247 $ 24,587 $ 22,296 The following tables provide additional information for the three months ended June 30 , 2017 and 2016 pertaining to our business segments: Capital Expenditures (1) Depreciation 2017 2016 2017 2016 Private Banks $ 9,479 $ 8,454 $ 4,172 $ 3,199 Investment Advisors 3,698 3,267 802 964 Institutional Investors 1,086 696 244 339 Investment Managers 8,665 1,743 1,028 1,172 Investments in New Businesses 153 121 171 547 Total from business segments $ 23,081 $ 14,281 $ 6,417 $ 6,221 Corporate overhead 392 279 182 213 $ 23,473 $ 14,560 $ 6,599 $ 6,434 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization 2017 2016 Private Banks $ 8,876 $ 7,769 Investment Advisors 2,897 2,585 Institutional Investors 426 425 Investment Managers 275 275 Investments in New Businesses 41 40 Total from business segments $ 12,515 $ 11,094 Corporate overhead 50 190 $ 12,565 $ 11,284 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Interest And Penalties | June 30, 2017 December 31, 2016 Gross liability for unrecognized tax benefits, exclusive of interest and penalties $ 18,856 $ 17,287 Interest and penalties on unrecognized benefits 1,579 1,224 Total gross uncertain tax positions $ 20,435 $ 18,511 Amount included in Current liabilities $ 6,293 $ 3,866 Amount included in Other long-term liabilities 14,142 14,645 $ 20,435 $ 18,511 |
Schedule of Effective Income Tax Rate Reconciliation | The Company's effective income tax rate for the three and six months ended June 30, 2017 and 2016 differs from the federal income tax statutory rate due to the following: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Statutory rate 35.0 % 35.0 % 35.0 % 35.0 % State taxes, net of federal tax benefit 1.7 1.4 1.7 1.4 Foreign tax expense and tax rate differential (1.0 ) (0.7 ) (1.0 ) (0.7 ) Tax benefit from stock option exercises (3.0 ) — (3.6 ) — Other, net (0.6 ) (0.5 ) (0.5 ) (0.5 ) 32.1 % 35.2 % 31.6 % 35.2 % |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (New Accounting Pronouncements and Changes in Accounting Principle) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jan. 01, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase to net cash provided by operating activities | $ 184,855 | $ 163,454 | |
Corresponding offset to net cash used for financing activities | $ 181,801 | 214,020 | |
Accounting Standards Update 2016-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase to net cash provided by operating activities | 4,004 | ||
Corresponding offset to net cash used for financing activities | $ 4,004 | ||
Increase to deferred tax assets | $ 913 | ||
Accounting Standards Update 2016-09 [Member] | Paid-in Capital [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cumulative effect adjustment | 2,582 | ||
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cumulative effect adjustment | $ 1,669 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash and cash equivalents invested in SEI-sponsored money market funds | $ 660,362 | $ 594,767 | $ 660,362 | $ 594,767 | $ 695,701 | $ 679,661 |
Restricted cash | 3,502 | 3,502 | 3,500 | |||
Capitalized software development costs | 33,292 | $ 19,597 | ||||
Net book value of capitalized software | $ 304,673 | $ 304,673 | 295,867 | |||
Anti-dilutive employee stock options | 11,255 | 10,388 | 11,267 | 10,447 | ||
Anti-dilutive employee stock options, per share | $ 37.68 | $ 34.06 | $ 37.69 | $ 34.05 | ||
SEI Wealth Platform [Member] | ||||||
Capitalized software development costs | $ 27,994 | $ 16,120 | ||||
Net book value of capitalized software | $ 283,867 | 283,867 | ||||
Estimated useful life of the SEI Wealth Platform | 15 years | |||||
Amortization expense related to the SEI Wealth Platform | 24,486 | 22,049 | ||||
SEI Wealth Platform [Member] | Weighted Average [Member] | ||||||
Estimated useful life of the SEI Wealth Platform | 5 years | |||||
Application for Investment Managers segment [Member] | ||||||
Capitalized software development costs | 5,298 | $ 3,477 | ||||
Net book value of capitalized software | $ 20,806 | 20,806 | ||||
SEI Investments (Europe) Limited [Member] | ||||||
Restricted cash | 3,000 | 3,000 | 3,000 | |||
SEI Investments Distribution Co. (SIDCO) [Member] | ||||||
Restricted cash | 502 | 502 | 500 | |||
SEI-Sponsored Open-Ended Money Market Mutual Funds [Member] | ||||||
Cash and cash equivalents invested in SEI-sponsored money market funds | $ 230,721 | $ 230,721 | $ 374,760 |
Summary of Significant Accoun34
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | ||||
Net income | $ 91,769 | $ 81,005 | $ 180,506 | $ 158,502 |
Shares used to compute basic earnings per common share | 158,325 | 161,795 | 158,708 | 162,404 |
Dilutive effect of stock options | 3,384 | 3,293 | 3,518 | 3,212 |
Shares used to compute diluted earnings per common share | 161,709 | 165,088 | 162,226 | 165,616 |
Basic earnings per common share | $ 0.58 | $ 0.50 | $ 1.14 | $ 0.98 |
Diluted earnings per common share | $ 0.57 | $ 0.49 | $ 1.11 | $ 0.96 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | ||||
Net income | $ 91,769 | $ 81,005 | $ 180,506 | $ 158,502 |
Depreciation | 6,599 | 6,434 | 13,399 | 12,881 |
Amortization | 12,565 | 11,284 | 24,587 | 22,296 |
Equity in earnings of unconsolidated affiliate | (36,315) | (30,285) | (69,880) | (59,477) |
Distributions received from unconsolidated affiliate | 75,142 | 67,061 | ||
Stock-based compensation | 6,259 | 4,189 | 12,439 | 7,978 |
Provision for losses on receivables | 157 | 297 | ||
Deferred income tax expense | 918 | (311) | ||
Gain from sale of SEI AK | $ 0 | $ 0 | 0 | (2,791) |
Net gain from investments | (391) | (124) | ||
Tax benefit on stock options exercised (1) | 0 | 4,004 | ||
Change in other long-term liabilities | (503) | 865 | ||
Change in other assets | 122 | 1,084 | ||
Other | 492 | 1,030 | ||
Decrease (increase) in Receivables from investment products | 12,713 | 1,032 | ||
Decrease (increase) in Receivables | (34,744) | (19,357) | ||
Decrease (increase) in Other current assets | (4,378) | (4,006) | ||
Increase (decrease) in Accounts payable | (2,329) | (970) | ||
Increase (decrease) in Accrued liabilities | (23,324) | (27,634) | ||
Increase (decrease) in Deferred revenue | (71) | 1,094 | ||
Total adjustments | 4,349 | 4,952 | ||
Net cash provided by operating activities | $ 184,855 | $ 163,454 |
Investment In Unconsolidated 36
Investment In Unconsolidated Affiliate (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Apr. 30, 2016 | Mar. 31, 2016 | Oct. 31, 2012 | |
Investments in and Advances to Affiliates [Line Items] | |||||||
Distributions received from unconsolidated affiliate | $ 75,142 | $ 67,061 | |||||
Company's share in the earnings of equity method investee | $ 36,315 | $ 30,285 | 69,880 | 59,477 | |||
LSV Employee Group III [Member] | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Purchase of partnership interest value | $ 77,700 | ||||||
Amount of purchase price financed through term loans | 69,930 | ||||||
LSV Employee Group III [Member] | Financial Guarantee [Member] | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Amount of guarantor's obligation, maximum exposure | 45,000 | ||||||
L S V Asset Management [Member] | Financial Guarantee [Member] | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Amount of guarantor's obligation, maximum exposure | $ 24,930 | ||||||
L S V Asset Management [Member] | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity method investment, ownership percentage | 38.90% | 39.20% | |||||
Total investment in equity method investee | 45,197 | 45,197 | |||||
Distributions received from unconsolidated affiliate | 75,142 | 67,061 | |||||
Company's share in the earnings of equity method investee | $ 36,315 | $ 30,285 | $ 69,880 | $ 59,477 | |||
Maximum [Member] | |||||||
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity method investment, ownership percentage | 50.00% | 50.00% |
Investment In Unconsolidated 37
Investment In Unconsolidated Affiliate (Condensed Statement Of Operations Of LSV) (Details) - L S V Asset Management [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenue of LSV Asset Management | $ 119,320 | $ 95,825 | $ 229,273 | $ 188,478 |
Net income of LSV Asset Management | $ 93,372 | $ 77,790 | $ 179,587 | $ 152,247 |
Investment in Unconsolidated 38
Investment in Unconsolidated Affiliate (Condensed Balance Sheets Of LSV) (Details) - L S V Asset Management [Member] - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 128,808 | $ 125,872 |
Non-current assets | 1,683 | 1,927 |
Total assets | 130,491 | 127,799 |
Current liabilities | 55,427 | 39,303 |
Partners’ capital | 75,064 | 88,496 |
Total liabilities and partners’ capital | $ 130,491 | $ 127,799 |
Variable Interest Entities - 39
Variable Interest Entities - Investment Products (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
SEI-Sponsored Open-Ended Money Market Mutual Funds [Member] | ||||
Financial Support for Nonconsolidated Legal Entity [Line Items] | ||||
Fees waived according to expense limitation agreements | $ 6,606 | $ 9,891 | $ 13,678 | $ 22,368 |
Composition of Certain Financ40
Composition of Certain Financial Statement Captions (Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Items Included in Consolidated Statement of Financial Condition [Abstract] | ||
Trade receivables | $ 56,262 | $ 48,683 |
Fees earned, not billed | 193,943 | 168,971 |
Other receivables | 13,019 | 10,826 |
Receivables, Gross, Current | 263,224 | 228,480 |
Less: Allowance for doubtful accounts | (680) | (523) |
Receivables, net | $ 262,544 | $ 227,957 |
Composition of Certain Financ41
Composition of Certain Financial Statement Captions (Property And Equipment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | $ 443,831 | $ 443,831 | $ 431,512 | ||
Less: Accumulated depreciation | (298,294) | (298,294) | (285,322) | ||
Property and Equipment, net | 145,537 | 145,537 | 146,190 | ||
Depreciation expense | 6,599 | $ 6,434 | 13,399 | $ 12,881 | |
Building [Member] | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 154,007 | 154,007 | 152,171 | ||
Equipment [Member] | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 111,363 | 111,363 | 106,759 | ||
Land [Member] | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 10,030 | 10,030 | 10,030 | ||
Purchased Software [Member] | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 131,494 | 131,494 | 128,008 | ||
Furniture and Fixtures [Member] | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 17,607 | 17,607 | 17,292 | ||
Leasehold Improvements [Member] | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 16,700 | 16,700 | 15,175 | ||
Construction in Progress [Member] | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | $ 2,630 | $ 2,630 | $ 2,077 |
Composition of Certain Financ42
Composition of Certain Financial Statement Captions (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Items Included in Consolidated Statement of Financial Condition [Abstract] | ||
Accrued employee compensation | $ 48,510 | $ 79,735 |
Accrued consulting, outsourcing and professional fees | 34,822 | 24,428 |
Accrued sub-advisory, distribution and other asset management fees | 36,935 | 41,666 |
Accrued dividend payable | 0 | 44,596 |
Other accrued liabilities | 50,310 | 50,100 |
Total accrued liabilities | $ 170,577 | $ 240,525 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Of Certain Financial Assets And Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity available-for-sale securities | $ 10,172 | $ 9,581 |
Fixed-income available-for-sale securities | 75,913 | 74,452 |
Fixed-income securities owned | 21,412 | 21,339 |
Investment funds sponsored by LSV | 5,350 | 4,858 |
Assets, fair value | 112,847 | 110,230 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity available-for-sale securities | 10,172 | 9,581 |
Fixed-income available-for-sale securities | 0 | 0 |
Fixed-income securities owned | 0 | 0 |
Assets, fair value | 10,172 | 9,581 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity available-for-sale securities | 0 | 0 |
Fixed-income available-for-sale securities | 75,913 | 74,452 |
Fixed-income securities owned | 21,412 | 21,339 |
Assets, fair value | $ 97,325 | $ 95,791 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Schedule of Investments [Line Items] | |||||
Net unrealized losses | $ (606) | $ (606) | $ (836) | ||
Unrealized losses during the period, income tax benefit | (224) | (224) | (299) | ||
Available-for-sale securities, gross realized gains | 264 | $ 237 | |||
Available-for-sale securities, gross realized losses | 396 | 492 | |||
Fair value of investment funds sponsored by LSV | 5,350 | 5,350 | 4,858 | ||
Securities owned | 21,412 | 21,412 | 21,339 | ||
Investment Funds Sponsored by LSV [Member] | |||||
Schedule of Investments [Line Items] | |||||
Fair value of investment funds sponsored by LSV | 5,350 | 5,350 | $ 4,858 | ||
Gains from investment funds sponsored by LSV | $ 194 | $ 237 | $ 492 | $ 381 |
Marketable Securities (Investme
Marketable Securities (Investments Available For Sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 86,915 | $ 85,168 |
Available-for-sale securities, accumulated gross unrealized gain, before tax | 203 | 252 |
Available-for-sale securities, accumulated gross unrealized loss, before tax | (1,033) | (1,387) |
Available-for-sale securities, fair value | 86,085 | 84,033 |
SEI-Sponsored Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 7,330 | 7,357 |
Available-for-sale securities, accumulated gross unrealized gain, before tax | 82 | 24 |
Available-for-sale securities, accumulated gross unrealized loss, before tax | (574) | (996) |
Available-for-sale securities, fair value | 6,838 | 6,385 |
Equities and Other Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 3,213 | 2,968 |
Available-for-sale securities, accumulated gross unrealized gain, before tax | 121 | 228 |
Available-for-sale securities, accumulated gross unrealized loss, before tax | 0 | 0 |
Available-for-sale securities, fair value | 3,334 | 3,196 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 76,372 | 74,843 |
Available-for-sale securities, accumulated gross unrealized gain, before tax | 0 | 0 |
Available-for-sale securities, accumulated gross unrealized loss, before tax | (459) | (391) |
Available-for-sale securities, fair value | $ 75,913 | $ 74,452 |
Line of Credit (Details)
Line of Credit (Details) - Revolving Credit Facility [Member] - USD ($) | Jul. 07, 2017 | Jun. 13, 2016 | Jul. 20, 2017 | Jun. 30, 2017 |
Line of Credit Facility [Line Items] | ||||
Credit facility term of agreement | 5 years | |||
Credit facility maximum borrowing capacity | $ 300,000,000 | |||
Credit facility scheduled expiration date | Jun. 12, 2021 | |||
Credit facility stated percentage | 0.00% | |||
Credit facility accordion feature, increase limit | $ 100,000,000 | |||
Credit facility amount outstanding at reporting date | $ 0 | |||
Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility borrowings | $ 40,000,000 | |||
Credit facility remaining borrowing capacity | $ 260,000,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility variable interest rate basis spread (as a percent) | 1.00% | |||
Credit facility description of variable rate basis | London InterBank Offered Rate | |||
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 | |||
Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility commitment fee per annum on daily unused portion (as a percent) | 0.15% | |||
Minimum [Member] | Lender's Base Rate Plus Market Spread [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility variable interest rate basis spread (as a percent) | 0.25% | |||
Minimum [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] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility commitment fee per annum on daily unused portion (as a percent) | 0.30% | |||
Maximum [Member] | Lender's Base Rate Plus Market Spread [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility variable interest rate basis spread (as a percent) | 1.00% | |||
Maximum [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) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jun. 16, 2017 | May 24, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ 64,208 | $ 64,208 | ||||
Total intrinsic value of options exercised | 37,976 | |||||
Aggregate intrinsic value of options exercisable | $ 176,559 | $ 176,559 | ||||
Market value of Company's common stock | $ 53.78 | $ 53.78 | ||||
Weighted average exercise price per share | $ 21.21 | $ 21.21 | ||||
Total options outstanding | 16,676 | 16,676 | ||||
Total options exercisable | 5,421 | 5,421 | ||||
Dividends declared per common share | $ 0.28 | $ 0.28 | $ 0.26 | $ 0.28 | $ 0.26 | |
Cash dividends paid per common share | $ 0.28 | |||||
Cash dividends declared on the Company's common stock | $ 44,264 | $ 42,001 | ||||
Common Stock Buyback [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares purchased and retired | 2,357 | |||||
Company purchased, cost | $ 120,041 | |||||
Remaining stock repurchase authorization amount | $ 98,710 | $ 98,710 | ||||
2014 Plan [Member] | Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rate | 50.00% | |||||
2014 Plan [Member] | Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rate | 50.00% |
Shareholders' Equity (Stock-Bas
Shareholders' Equity (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | ||||
Stock-based compensation expense | $ 6,259 | $ 4,189 | $ 12,439 | $ 7,978 |
Less: Deferred tax benefit | (2,189) | (1,469) | (4,342) | (2,768) |
Stock-based compensation expense, net of tax | $ 4,070 | $ 2,720 | $ 8,097 | $ 5,210 |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ (37,955) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive gain before reclassifications | 9,851 |
Amounts reclassified from accumulated other comprehensive loss | 89 |
Net current-period other comprehensive gain | 9,940 |
Ending balance | (28,015) |
Accumulated Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (37,119) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive gain before reclassifications | 9,710 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current-period other comprehensive gain | 9,710 |
Ending balance | (27,409) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (836) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive gain before reclassifications | 141 |
Amounts reclassified from accumulated other comprehensive loss | 89 |
Net current-period other comprehensive gain | 230 |
Ending balance | $ (606) |
Business Segment Information (S
Business Segment Information (Schedule Of Financial Information About Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 372,331 | $ 343,831 | $ 732,315 | $ 678,094 |
Expenses | 259,372 | 236,456 | 511,234 | 470,860 |
Operating profit (loss) | 112,959 | 107,375 | 221,081 | 207,234 |
Gain on sale of subsidiary | 0 | 0 | 0 | 2,791 |
Segment profit (loss) | 112,959 | 107,375 | 221,081 | 210,025 |
Private Banks [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 116,184 | 114,836 | 228,818 | 228,197 |
Expenses | 112,353 | 102,862 | 220,903 | 206,603 |
Operating profit (loss) | 3,831 | 11,974 | 7,915 | 21,594 |
Gain on sale of subsidiary | 0 | 0 | 0 | 2,791 |
Segment profit (loss) | 3,831 | 11,974 | 7,915 | 24,385 |
Investment Advisors [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 92,746 | 81,883 | 180,984 | 158,562 |
Expenses | 49,380 | 44,721 | 96,919 | 89,495 |
Operating profit (loss) | 43,366 | 37,162 | 84,065 | 69,067 |
Gain on sale of subsidiary | 0 | 0 | 0 | 0 |
Segment profit (loss) | 43,366 | 37,162 | 84,065 | 69,067 |
Institutional Investors [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 78,068 | 74,674 | 155,072 | 147,571 |
Expenses | 38,668 | 36,550 | 77,496 | 71,932 |
Operating profit (loss) | 39,400 | 38,124 | 77,576 | 75,639 |
Gain on sale of subsidiary | 0 | 0 | 0 | 0 |
Segment profit (loss) | 39,400 | 38,124 | 77,576 | 75,639 |
Investment Managers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 83,616 | 70,938 | 164,103 | 140,856 |
Expenses | 53,847 | 46,968 | 105,912 | 92,243 |
Operating profit (loss) | 29,769 | 23,970 | 58,191 | 48,613 |
Gain on sale of subsidiary | 0 | 0 | 0 | 0 |
Segment profit (loss) | 29,769 | 23,970 | 58,191 | 48,613 |
Investments In New Businesses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,717 | 1,500 | 3,338 | 2,908 |
Expenses | 5,124 | 5,355 | 10,004 | 10,587 |
Operating profit (loss) | (3,407) | (3,855) | (6,666) | (7,679) |
Gain on sale of subsidiary | 0 | 0 | 0 | 0 |
Segment profit (loss) | $ (3,407) | $ (3,855) | $ (6,666) | $ (7,679) |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total operating profit from segments above | $ 112,959 | $ 107,375 | $ 221,081 | $ 207,234 |
Income from operations | 97,227 | 93,523 | 190,744 | 180,335 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating profit from segments above | 112,959 | 107,375 | 221,081 | 207,234 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Corporate overhead expenses | $ (15,732) | $ (13,852) | $ (30,337) | $ (26,899) |
Business Segment Information 52
Business Segment Information (Schedule Of Additional Information Pertaining To Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | $ 23,473 | $ 14,560 | $ 43,539 | $ 28,646 |
Depreciation | 6,599 | 6,434 | 13,399 | 12,881 |
Amortization | 12,565 | 11,284 | 24,587 | 22,296 |
Private Banks [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 9,479 | 8,454 | 22,329 | 17,166 |
Depreciation | 4,172 | 3,199 | 8,582 | 6,380 |
Amortization | 8,876 | 7,769 | 17,339 | 15,480 |
Investment Advisors [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 3,698 | 3,267 | 8,230 | 6,119 |
Depreciation | 802 | 964 | 1,535 | 1,940 |
Amortization | 2,897 | 2,585 | 5,747 | 5,138 |
Institutional Investors [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 1,086 | 696 | 1,897 | 1,492 |
Depreciation | 244 | 339 | 471 | 673 |
Amortization | 426 | 425 | 749 | 824 |
Investment Managers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 8,665 | 1,743 | 10,280 | 3,065 |
Depreciation | 1,028 | 1,172 | 1,944 | 2,362 |
Amortization | 275 | 275 | 491 | 541 |
Investments In New Businesses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 153 | 121 | 259 | 215 |
Depreciation | 171 | 547 | 539 | 1,095 |
Amortization | 41 | 40 | 160 | 66 |
Total From Business Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 23,081 | 14,281 | 42,995 | 28,057 |
Depreciation | 6,417 | 6,221 | 13,071 | 12,450 |
Amortization | 12,515 | 11,094 | 24,486 | 22,049 |
Corporate Overhead [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 392 | 279 | 544 | 589 |
Depreciation | 182 | 213 | 328 | 431 |
Amortization | $ 50 | $ 190 | $ 101 | $ 247 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Income Tax Contingency [Line Items] | ||
Gross liability for unrecognized tax benefits, exclusive of interest and penalties | $ 18,856 | $ 17,287 |
Unrecognized tax benefits that would affect effective tax rate | 16,392 | 14,868 |
Interest and penalties on unrecognized benefits | 1,579 | $ 1,224 |
Settlement and Lapse of Statute [Member] | ||
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits within the next twelve months | $ 6,293 |
Income Taxes (Interest And Pena
Income Taxes (Interest And Penalties) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Income Tax Contingency [Line Items] | ||
Gross liability for unrecognized tax benefits, exclusive of interest and penalties | $ 18,856 | $ 17,287 |
Interest and penalties on unrecognized benefits | 1,579 | 1,224 |
Gross uncertain tax positions | 20,435 | 18,511 |
Amount included in Current liabilities | 6,293 | 3,866 |
Amount included in Other long-term liabilities | $ 14,142 | $ 14,645 |
Income Taxes Income Taxes (Effe
Income Taxes Income Taxes (Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate [Abstract] | ||||
Statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
State taxes, net of federal tax benefit | 1.70% | 1.40% | 1.70% | 1.40% |
Foreign tax expense and tax rate differential | (1.00%) | (0.70%) | (1.00%) | (0.70%) |
Tax benefit from stock option exercises | (3.00%) | 0.00% | (3.60%) | 0.00% |
Other, net | (0.60%) | (0.50%) | (0.50%) | (0.50%) |
Effective income tax rate | 32.10% | 35.20% | 31.60% | 35.20% |
Sale of SEI Asset Korea (Narrat
Sale of SEI Asset Korea (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 28, 2013 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale of subsidiary | $ 0 | $ 0 | $ 0 | $ 2,791 | |
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 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event [Member] - Archway [Member] - USD ($) $ in Thousands | Jul. 07, 2017 | Jul. 03, 2017 |
Business Acquisition [Line Items] | ||
Cash consideration transferred | $ 81,532 | |
Maximum contingent purchase price payable by the Company | $ 8,000 | |
Borrowings under Credit facility | $ 40,000 |