Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 18, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | SEI INVESTMENTS COMPANY | |
Entity Central Index Key | 350,894 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SEIC | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 155,540,268 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 741,965 | $ 744,247 |
Restricted cash | 3,511 | 3,505 |
Receivables from investment products | 54,403 | 56,666 |
Receivables, net of allowance for doubtful accounts of $666 and $695 | 327,614 | 282,706 |
Securities owned | 28,945 | 21,526 |
Other current assets | 37,113 | 31,158 |
Total Current Assets | 1,193,551 | 1,139,808 |
Property and Equipment, net of accumulated depreciation of $331,138 and $309,955 | 145,865 | 146,428 |
Capitalized Software, net of accumulated amortization of $383,675 and $350,045 | 310,146 | 310,405 |
Investments Available for Sale | 84,298 | 87,983 |
Investments in Affiliated Funds, at fair value | 5,736 | 6,034 |
Investment in Unconsolidated Affiliate | 44,682 | 59,492 |
Goodwill | 64,489 | 52,990 |
Intangible Assets, net of accumulated amortization of $4,169 and $1,552 | 32,591 | 28,578 |
Deferred Contract Costs | 22,104 | 0 |
Deferred Income Taxes | 2,224 | 2,767 |
Other Assets, net | 33,642 | 18,884 |
Total Assets | 1,939,328 | 1,853,369 |
Current Liabilities: | ||
Accounts payable | 9,161 | 5,268 |
Accrued liabilities | 207,675 | 265,058 |
Deferred revenue | 5,054 | 4,723 |
Total Current Liabilities | 221,890 | 275,049 |
Borrowings Under Revolving Credit Facility | 0 | 30,000 |
Long-term Income Taxes Payable | 770 | 10,629 |
Deferred Income Taxes | 60,158 | 48,472 |
Other Long-term Liabilities | 26,000 | 12,380 |
Total Liabilities | 308,818 | 376,530 |
Commitments and Contingencies | ||
Shareholders' Equity: | ||
Common stock, $.01 par value, 750,000 shares authorized; 155,475 and 157,069 shares issued and outstanding | 1,555 | 1,571 |
Capital in excess of par value | 1,101,237 | 1,027,709 |
Retained earnings | 556,581 | 467,467 |
Accumulated other comprehensive loss, net | (28,863) | (19,908) |
Total Shareholders' Equity | 1,630,510 | 1,476,839 |
Total Liabilities and Shareholders' Equity | $ 1,939,328 | $ 1,853,369 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Receivables, allowance for doubtful accounts | $ 666 | $ 695 |
Property and Equipment, accumulated depreciation | 331,138 | 309,955 |
Capitalized software, accumulated amortization | 383,675 | 350,045 |
Intangible assets, accumulated amortization | $ 4,169 | $ 1,552 |
Stockholders' Equity: | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 155,475,000 | 157,069,000 |
Common stock, shares outstanding | 155,475,000 | 157,069,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Revenues | $ 408,682 | $ 386,018 | $ 1,219,110 | $ 1,118,333 |
Expenses: | ||||
Subadvisory, distribution and other asset management costs | 45,276 | 46,014 | 135,690 | 133,073 |
Software royalties and other information processing costs | 7,767 | 11,005 | 24,462 | 34,295 |
Compensation, benefits and other personnel | 127,480 | 118,421 | 379,132 | 336,919 |
Stock-based compensation | 5,878 | 7,088 | 16,396 | 19,527 |
Consulting, outsourcing and professional fees | 51,758 | 46,507 | 150,906 | 137,991 |
Data processing and computer related | 21,754 | 19,792 | 63,478 | 57,107 |
Facilities, supplies and other costs | 16,689 | 17,261 | 52,085 | 50,761 |
Amortization | 12,405 | 13,745 | 36,420 | 38,332 |
Depreciation | 7,255 | 6,948 | 21,515 | 20,347 |
Total expenses | 296,262 | 286,781 | 880,084 | 828,352 |
Income from operations | 112,420 | 99,237 | 339,026 | 289,981 |
Net gain (loss) from investments | 89 | 645 | (460) | 1,036 |
Interest and dividend income | 3,482 | 1,899 | 9,146 | 4,928 |
Interest expense | (122) | (345) | (511) | (571) |
Equity in earnings of unconsolidated affiliate | 41,726 | 39,333 | 123,406 | 109,213 |
Income before income taxes | 157,595 | 140,769 | 470,607 | 404,587 |
Income taxes | 29,276 | 39,030 | 80,773 | 122,342 |
Net income | $ 128,319 | $ 101,739 | $ 389,834 | $ 282,245 |
Basic earnings per common share (in USD per share) | $ 0.82 | $ 0.64 | $ 2.48 | $ 1.78 |
Shares used to compute basic earnings per share (in shares) | 156,283 | 157,902 | 157,086 | 158,439 |
Diluted earnings per common share (in USD per share) | $ 0.80 | $ 0.63 | $ 2.41 | $ 1.74 |
Shares used to compute diluted earnings per share (in shares) | 160,511 | 161,148 | 162,053 | 161,866 |
Dividends declared per common share (in USD per share) | $ 0 | $ 0 | $ 0.30 | $ 0.28 |
Asset management, administration and distribution fees | ||||
Revenues: | ||||
Revenues | $ 322,778 | $ 300,417 | $ 955,495 | $ 869,560 |
Information processing and software servicing fees | ||||
Revenues: | ||||
Revenues | $ 85,904 | $ 85,601 | $ 263,615 | $ 248,773 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 128,319 | $ 101,739 | $ 389,834 | $ 282,245 |
Other comprehensive (loss) gain, net of tax: | ||||
Foreign currency translation adjustments | (435) | 7,318 | (7,261) | 17,028 |
Unrealized (loss) gain on investments: | ||||
Unrealized (losses) gains during the period, net of income taxes of $91, $(116), $463 and $(148) | (337) | 294 | (1,662) | 435 |
Less: reclassification adjustment for losses (gains) realized in net income, net of income taxes of $(29), $(41), $(75) and $(84) | 130 | 105 | (32) | 194 |
Unrealized (loss) gain on investments: | (207) | 399 | (1,694) | 629 |
Total other comprehensive (loss) gain, net of tax | (642) | 7,717 | (8,955) | 17,657 |
Comprehensive income | $ 127,677 | $ 109,456 | $ 380,879 | $ 299,902 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) during the period, income tax | $ 91 | $ (116) | $ 463 | $ (148) |
Reclassification adjustment for losses realized in net income, income tax | $ (29) | $ (41) | $ (75) | $ (84) |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 389,834 | $ 282,245 |
Adjustments to reconcile net income to net cash provided by operating activities (See Note 1) | 28,064 | 34,142 |
Net cash provided by operating activities | 417,898 | 316,387 |
Cash flows from investing activities: | ||
Additions to property and equipment | (21,652) | (20,318) |
Additions to capitalized software | (33,371) | (48,573) |
Purchases of marketable securities | (122,259) | (50,235) |
Prepayments and maturities of marketable securities | 116,568 | 52,644 |
Cash paid for acquisition, net of cash acquired | (5,794) | (80,131) |
Other investing activities | (10,900) | (1,450) |
Net cash used in investing activities | (77,408) | (148,063) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 0 | 40,000 |
Repayments under revolving credit facility | (30,000) | 0 |
Purchase and retirement of common stock | (290,563) | (186,494) |
Proceeds from issuance of common stock | 78,667 | 41,626 |
Payment of dividends | (94,318) | (88,862) |
Net cash used in financing activities | (336,214) | (193,730) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (6,552) | 14,679 |
Net decrease in cash, cash equivalents and restricted cash | (2,276) | (10,727) |
Cash, cash equivalents and restricted cash, beginning of period | 747,752 | 699,201 |
Cash, cash equivalents and restricted cash, end of period | $ 745,476 | $ 688,474 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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 platforms 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 platforms consist of application and business process outsourcing services, professional services and transaction-based services. Revenues from investment processing platforms are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations. 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 platforms consist of outsourcing services including fund and investment accounting, administration, reconciliation, investor servicing and client reporting. Revenues from investment operations platforms 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 September 30, 2018 , the results of operations for the three and nine months ended September 30, 2018 and 2017 , and cash flows for the nine -month periods ended September 30, 2018 and 2017 . 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, 2017 . The Company adopted the requirements of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Accounting Standards Codification (ASC) 606 (ASC 606)) using the modified retrospective method during the nine months ended September 30, 2018 . As a result of the adoption of ASC 606, the Company recorded a cumulative effect adjustment of $14,402 to retained earnings as of January 1, 2018. Prior period information has not been restated (see following caption "Revenue Recognition"). The Company also adopted ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (see Note 6) and ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (Topic 230) (see following caption "Statements of Cash Flows"). All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standards. Revenue Recognition Revenue is recognized when the transfer of control of promised goods or services under the terms of a contract with customers are satisfied in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services. Certain portions of the Company’s revenues involve a third party in providing goods or services to its customers. In such circumstances, the Company must determine whether the nature of its promise to the customer is to provide the underlying goods or services (the Company is the principal in the transaction and reports the transaction gross) or to arrange for a third party to provide the underlying goods or services (the entity is the agent in the transaction and reports the transaction net). ASC 606 did not change the accounting for the majority of the Company’s revenue arrangements and did not have a material impact to the Company’s consolidated financial statements. The following is a summary of the impact from the adoption of ASC 606: • The majority of the Company’s services are bundled together, and provided and completed for the client on a monthly basis. For these revenue arrangements, the Company continues to recognize revenue on a monthly basis as the client consumes the benefits continuously over time. The timing and recognition of revenues from these arrangements did not change. • Contracts with new clients or with existing clients for new services generally include implementation fees. These fees are recognized in Information processing and software servicing fees when in connection with investment processing platforms and are recognized in Asset management, administration and distribution fees when in connection with investment operations platforms. The Company concluded that most of the current arrangements for implementation services are a distinct and separate performance obligation from the monthly recurring services. The timing and recognition of fees for most of these arrangements have not changed. However, each new revenue arrangement for implementation fees is analyzed to determine whether or not it is a distinct performance obligation. Implementation fees determined not to be a distinct performance obligation would be required to be recognized over the expected life of the client relationship along with the costs relating directly to satisfying such performance obligation. The Company will evaluate each contract in accordance with the requirements of ASC 606. • Research services provided by SIDCO, the Company’s broker-dealer subsidiary, to customers in soft-dollar arrangements were determined to be a separate performance obligation. Research services provided by a broker-dealer may be internally generated or provided by a third party and paid directly by the broker-dealer on the customer’s behalf. It was determined that SIDCO is considered an agent since it does not control the research services before they are transferred to the customer. Therefore, fees received for research services should be recorded in revenues net of amounts paid for the soft-dollar arrangement. These amounts paid by the Company were previously recorded gross as an expense and, beginning January 1, 2018, are recorded net of any revenue recognized. The amounts related to soft-dollar arrangements during the three months ended September 30, 2018 and 2017 were $3,265 and $3,297 , respectively. The amounts related to soft-dollar arrangements during the nine months ended September 30, 2018 and 2017 were $10,497 and $10,799 , respectively. • Incremental contract acquisition costs related to information processing contracts in the Private Banks segment and investment operations contracts in the Investment Managers segment will be deferred and recognized over the expected client life. These costs primarily consist of sales compensation payments to the Company's sales personnel. As a result, incremental contract acquisition costs are capitalized and subsequently amortized. The Company recorded a cumulative effect adjustment to retained earnings associated with the capitalization of contract costs. For the Company's other sales compensation payments, the Company either applies the practical expedient permitting the expensing of costs to obtain a contract when the expected amortization period is one year or less or there are no contract acquisition costs required to be deferred under the requirements of ASC 606. The Company amortizes deferred contract acquisition costs using the straight-line method. Cash and Cash Equivalents Cash and cash equivalents includes $286,824 and $401,292 at September 30, 2018 and December 31, 2017 , 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 September 30, 2018 and December 31, 2017 segregated for regulatory purposes related to trade-execution services conducted by SEI Investments (Europe) Limited. Restricted cash also includes $511 and $505 at September 30, 2018 and December 31, 2017 , 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 $33,371 and $48,573 of software development costs during the nine months ended September 30, 2018 and 2017 , respectively. The Company's software development costs primarily relate to the continued development of the SEI Wealth Platform SM (the Platform). The Company capitalized $32,526 and $40,604 of software development costs for significant enhancements to the Platform during the nine months ended September 30, 2018 and 2017 , respectively. As of September 30, 2018 , the net book value of the Platform was $288,010 . The net book value includes $38,552 of capitalized software development costs in-progress associated with future releases. The Platform has a weighted average remaining life of 8.4 years . Amortization expense for the Platform was $29,723 and $37,324 during the nine months ended September 30, 2018 and 2017 , respectively. The Company also capitalized $845 and $7,969 of software development costs during the nine months ended September 30, 2018 and 2017 , respectively, related to an application for the Investment Managers segment. The application was placed into service during the first quarter 2018 with an estimated useful life of 5 years . The net book value of the application at September 30, 2018 was $22,136 . Amortization expense for the application was $3,907 during the nine months ended September 30, 2018 . Earnings per Share The calculations of basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 are: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income $ 128,319 $ 101,739 $ 389,834 $ 282,245 Shares used to compute basic earnings per common share 156,283,000 157,902,000 157,086,000 158,439,000 Dilutive effect of stock options 4,228,000 3,246,000 4,967,000 3,427,000 Shares used to compute diluted earnings per common share 160,511,000 161,148,000 162,053,000 161,866,000 Basic earnings per common share $ 0.82 $ 0.64 $ 2.48 $ 1.78 Diluted earnings per common share $ 0.80 $ 0.63 $ 2.41 $ 1.74 During the three months ended September 30 , 2018 and 2017 , employee stock options to purchase 6,183,000 and 11,324,000 shares of common stock with an average exercise price of $53.38 and $37.81 , respectively, were outstanding but not included in the computation of diluted earnings per common share. During the nine months ended September 30 , 2018 and 2017 , employee stock options to purchase 6,153,000 and 11,286,000 shares of common stock with an average exercise price of $53.15 and $37.73 , respectively, were outstanding but not included in the computation of diluted earnings per common share. These options for the three and nine 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. New Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02), as amended, 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 be classified as either operating or finance leases, with the classification affecting the pattern and classification of expense recognition in the income statement. The updated standard is effective for the Company beginning in the first quarter of 2019. Early adoption is permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (i) its effective date or (ii) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company expects to adopt the new standard on January 1, 2019 and use the effective date as the date of initial application. As a result, financial information will not be updated and the disclosures required under the new standard will not be provided for periods prior to January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the package of practical expedients which permits the Company to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. As part of its project plan’s preliminary assessment and design implementation phases for the adoption of ASU 2016-02, the Company has adopted implementation controls that allow it to properly and timely adopt ASU 2016-02 on the effective date. While the Company continues to assess all of the effects of adoption, the Company believes the most significant effects relate to the recognition of right-of-use assets and lease liabilities on the balance sheet for office space and certain office equipment and providing significant new disclosures about leasing arrangements. The Company owns its corporate headquarters and leases office space in other locations. The Company has completed the process of cataloging existing lease agreements and is currently calculating the right-of-use asset and lease liability. The Company will make updates to the year-end disclosures, with a focus on both status and internal controls over financial reporting. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) which requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. ASU 2016-13 becomes effective for the Company during the first quarter of 2020. Early adoption is permitted. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (ASU 2017-04). The objective of ASU 2017-04 is to simplify the subsequent measurement of goodwill by entities performing their annual goodwill impairment tests by comparing the fair value of a reporting unit, including income tax effects from any tax-deductible goodwill, with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds fair value. ASU 2017-04 is effective for the Company beginning in the first quarter of 2020. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2017-04 on its consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07) which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. ASU 2018-07 is effective for the Company beginning in the first quarter of 2019. The Company does not believe the adoption of ASU 2018-07 will have a material impact on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13) which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for the Company beginning in the first quarter of 2020. The Company is currently evaluating the impact of adopting ASU 2018-13 on its consolidated financial statements and related disclosures. 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 Company adopted ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (Topic 230) (ASU 2016-18) on January 1, 2018 which requires that a statement of cash flows explain the change during the period for the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The prior period was retrospectively adjusted to conform to the current period’s presentation. There was no material impact to net cash flows for the nine months ended September 30, 2017 as a result of including restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the accompanying Consolidated Condensed Statement of Cash Flows in accordance with ASU 2016-18. The following table provides the details of the adjustments to reconcile net income to net cash provided by operating activities for the nine months ended September 30 : 2018 2017 Net income $ 389,834 $ 282,245 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 21,515 20,347 Amortization 36,420 38,332 Equity in earnings of unconsolidated affiliate (123,406 ) (109,213 ) Distributions received from unconsolidated affiliate 138,216 117,447 Stock-based compensation 16,396 19,527 Provision for losses on receivables (29 ) 176 Deferred income tax expense 8,378 1,143 Net loss (gain) from investments 460 (1,036 ) Change in long-term income taxes payable (9,859 ) — Change in other long-term liabilities 1,930 106 Change in other assets (4,214 ) 79 Contract costs capitalized, net of amortization (3,463 ) — Other (99 ) 1,070 Change in current assets and liabilities Decrease (increase) in Receivables from investment products 2,263 10,800 Receivables (44,878 ) (43,661 ) Other current assets (5,955 ) (2,962 ) Increase (decrease) in Accounts payable 3,893 (1,748 ) Accrued liabilities (9,717 ) (15,856 ) Deferred revenue 213 (409 ) Total adjustments 28,064 34,142 Net cash provided by operating activities $ 417,898 $ 316,387 |
Investment In Unconsolidated Af
Investment In Unconsolidated Affiliate | 9 Months Ended |
Sep. 30, 2018 | |
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 investment products. The Company's partnership interest in LSV as of September 30, 2018 was 38.9 percent . 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 September 30, 2018 , the Company’s total investment in LSV was $44,682 . The Company receives partnership distributions from LSV on a quarterly basis. The Company received partnership distributions from LSV of $138,216 and $117,447 in the nine months ended September 30 , 2018 and 2017 , 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 $41,726 and $39,333 during the three months ended September 30 , 2018 and 2017 , respectively. During the nine months ended September 30, 2018 and 2017 , the Company’s proportionate share in the earnings of LSV was $123,406 and $109,213 , respectively. These tables contain condensed financial information of LSV: Condensed Statement of Operations Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ 133,921 $ 126,723 $ 397,750 $ 355,996 Net income 107,284 101,130 317,295 280,717 Condensed Balance Sheets September 30, 2018 December 31, 2017 Current assets $ 150,183 $ 155,239 Non-current assets 1,383 1,407 Total assets $ 151,566 $ 156,646 Current liabilities $ 79,052 $ 46,486 Partners’ capital 72,514 110,160 Total liabilities and partners’ capital $ 151,566 $ 156,646 |
Variable Interest Entities - In
Variable Interest Entities - Investment Products | 9 Months Ended |
Sep. 30, 2018 | |
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 voting interest entity (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 $6,525 and $6,942 in fees during the three months ended September 30, 2018 and 2017 , respectively. During the nine months ended September 30 , 2018 and 2017 , the Company waived $19,551 and $20,620 |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 9 Months Ended |
Sep. 30, 2018 | |
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: September 30, 2018 December 31, 2017 Trade receivables $ 77,239 $ 76,760 Fees earned, not billed 240,538 194,331 Other receivables 10,503 12,310 328,280 283,401 Less: Allowance for doubtful accounts (666 ) (695 ) $ 327,614 $ 282,706 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: September 30, 2018 December 31, 2017 Buildings $ 154,723 $ 153,961 Equipment 125,867 115,546 Land 10,557 10,030 Purchased software 138,565 134,610 Furniture and fixtures 17,971 18,114 Leasehold improvements 18,816 18,017 Construction in progress 10,504 6,105 477,003 456,383 Less: Accumulated depreciation (331,138 ) (309,955 ) Property and Equipment, net $ 145,865 $ 146,428 The Company recognized $21,515 and $20,347 in depreciation expense related to property and equipment for the nine months ended September 30 , 2018 and 2017 , respectively. Accrued Liabilities Accrued liabilities on the accompanying Consolidated Balance Sheets consist of: September 30, 2018 December 31, 2017 Accrued employee compensation $ 68,371 $ 88,960 Accrued consulting, outsourcing and professional fees 28,322 29,658 Accrued sub-advisory, distribution and other asset management fees 49,452 42,365 Accrued dividend payable — 47,179 Accrued income taxes 11,164 5,583 Other accrued liabilities 50,366 51,313 Total accrued liabilities $ 207,675 $ 265,058 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
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 2021 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 for our Level 1 and Level 2 financial assets during the nine months ended September 30 , 2018 were consistent with those as described in our Annual Report on Form 10-K at December 31, 2017 . The Company had no Level 3 financial assets at September 30, 2018 or December 31, 2017 that were required to be measured at fair value on a recurring basis. The Company's Level 3 financial liabilities at September 30, 2018 consist entirely of the estimated contingent consideration of $12,120 resulting from an acquisition (See Note 13). The fair value of the contingent consideration was determined using a Monte-Carlo simulation model. Key assumptions for the Monte-Carlo simulation model include expected revenues, expected volatility, risk-free rate and correlation coefficient. The Company had no Level 3 financial liabilities as of December 31, 2017 that were required to be measured at fair value on a recurring basis. There were no transfers of financial assets between levels within the fair value hierarchy during the nine months ended September 30 , 2018 . The fair value of certain financial assets of the Company was determined using the following inputs: Fair Value Measurements at the End of the Reporting Period Using Assets September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Equity available-for-sale securities $ 11,326 $ 11,326 $ — Fixed-income available-for-sale securities 72,972 — 72,972 Fixed-income securities owned 28,945 — 28,945 Investment funds sponsored by LSV (1) 5,736 $ 118,979 $ 11,326 $ 101,917 Fair Value Measurements at the End of the Reporting Period Using Assets December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Equity available-for-sale securities $ 11,250 $ 11,250 $ — Fixed-income available-for-sale securities 76,733 — 76,733 Fixed-income securities owned 21,526 — 21,526 Investment funds sponsored by LSV (1) 6,034 $ 115,543 $ 11,250 $ 98,259 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2018 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Investments Available for Sale Investments available for sale classified as non-current assets consist of: At September 30, 2018 Cost Amount Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 7,392 $ 107 $ (304 ) $ 7,195 Equities and other mutual funds 3,479 652 — 4,131 Debt securities 75,673 — (2,701 ) 72,972 $ 86,544 $ 759 $ (3,005 ) $ 84,298 At December 31, 2017 Cost Amount Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 7,369 $ 110 $ (143 ) $ 7,336 Equities and other mutual funds 3,456 458 — 3,914 Debt securities 77,745 — (1,012 ) 76,733 $ 88,570 $ 568 $ (1,155 ) $ 87,983 The Company prospectively adopted ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) on January 1, 2018 which requires the Company to recognize all changes in fair value of available-for-sale equity securities in current period earnings. Previously, these changes in fair value were recognized as a separate component of comprehensive income. The adoption of ASU 2016-01 did not have a material impact to the Company's consolidated financial statements. Net unrealized losses at September 30, 2018 and December 31, 2017 of the Company's available-for-sale debt securities were $2,080 (net of income tax benefit of $621 ) and $779 (net of income tax benefit of $233 ), 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 $1,031 and gross realized losses of $1,520 from available-for-sale securities during the nine months ended September 30 , 2018 . There were gross realized gains of $428 and gross realized losses of $706 during the nine months ended September 30 , 2017 . Gains and losses from available-for-sale securities, including amounts reclassified from accumulated comprehensive loss, are reflected in Net gain (loss) from investments on the accompanying Consolidated Statements of Operations. Investments in Affiliated Funds The Company has an investment 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 (loss) 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 $5,736 and $6,034 at September 30, 2018 and December 31, 2017 , respectively. The Company recognized losses of $298 and gains of $880 during the nine months ended September 30, 2018 and 2017 , respectively, from the change in fair value of the funds. There were no material gains or losses during the three months ended September 30, 2018 and 2017 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 $28,945 and $21,526 at September 30, 2018 and December 31, 2017 , respectively. There were no material net gains or losses related to the securities during the three and nine months ended September 30, 2018 and 2017 |
Line of Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2018 | |
Line of Credit Facility [Abstract] | |
Line 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. In July 2017, the Company borrowed $40,000 under the Credit Facility for the funding of an acquisition. In October 2017, the Company made a principal payment of $10,000 . During the nine months ended September 30, 2018 , the Company made additional principal payments of $30,000 to fully repay the remaining outstanding balance of the Credit Facility. The Company was in compliance with all covenants of the Credit Facility during the nine months ended September 30, 2018 . As of October 18, 2018 , the amount of the Credit Facility that is available for general corporate purposes was $300,000 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
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. Options granted in December 2017 include a service condition which requires a minimum two or four year waiting period from the grant date along with the attainment of the applicable financial vesting target. Earnings per share targets are established at time of grant and exclude the impact of stock-based compensation and, for earnings per share targets for the options granted in December 2017, also exclude income tax expense. The targets are measured annually on December 31. The amount of stock-based compensation expense recognized in the period is based upon management’s estimate of when the earnings per share targets may be achieved. Any change in management’s estimate could result in the remaining amount of stock-based compensation expense to be accelerated, spread out over a longer period, or reversed. This may cause volatility in the recognition of stock-based compensation expense in future periods and could materially affect the Company’s earnings. The Company recognized stock-based compensation expense in its Consolidated Financial Statements in the three and nine months ended September 30, 2018 and 2017 , respectively, as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock-based compensation expense $ 5,878 $ 7,088 $ 16,396 $ 19,527 Less: Deferred tax benefit (1,311 ) (2,517 ) (3,556 ) (6,859 ) Stock-based compensation expense, net of tax $ 4,567 $ 4,571 $ 12,840 $ 12,668 As of September 30, 2018 , there was approximately $47,131 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 nine months ended September 30 , 2018 was $123,365 . The total options exercisable as of September 30, 2018 had an intrinsic value of $247,517 . The total intrinsic value for options exercisable is calculated as the difference between the market value of the Company’s common stock as of September 30, 2018 and the weighted average exercise price of the options. The market value of the Company’s common stock as of September 30, 2018 was $61.10 as reported by the Nasdaq Stock Market, LLC. The weighted average exercise price of the options exercisable as of September 30, 2018 was $29.60 . Total options that were outstanding as of September 30, 2018 were 14,040,000 . Total options that were exercisable as of September 30, 2018 were 7,857,000 . 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 4,419,000 shares at a total cost of $289,536 during the nine months ended September 30 , 2018 , 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 September 30, 2018 , the Company had approximately $81,102 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 30, 2018 , the Board of Directors declared a cash dividend of $0.30 per share on the Company's common stock, which was paid on June 22, 2018 , to shareholders of record on June 14, 2018 . Cash dividends declared during the nine months ended September 30, 2018 and 2017 were $47,139 and $44,264 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive 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, 2018 $ (19,522 ) $ (386 ) $ (19,908 ) Other comprehensive loss before reclassifications (7,261 ) (1,662 ) (8,923 ) Amounts reclassified from accumulated other comprehensive loss — (32 ) (32 ) Net current-period other comprehensive loss (7,261 ) (1,694 ) (8,955 ) Balance, September 30, 2018 $ (26,783 ) $ (2,080 ) $ (28,863 ) |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company’s reportable business segments are: Private Banks – provides outsourced investment processing and investment management platforms to banks and trust institutions, independent wealth advisers and financial advisors worldwide; Investment Advisors – provides investment management and investment processing platforms 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 and administrative outsourcing platforms to retirement plan sponsors, healthcare systems and not-for-profit organizations worldwide; Investment Managers – provides investment operations outsourcing platforms 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 platforms; 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 nine months ended September 30, 2018 and 2017 . 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, 2017 . The following tables highlight certain financial information about each of the Company’s business segments for the three months ended September 30, 2018 and 2017 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended September 30, 2018 Revenues $ 118,449 $ 102,550 $ 83,466 $ 101,275 $ 2,942 $ 408,682 Expenses 116,471 53,287 40,497 65,296 5,769 281,320 Operating profit (loss) $ 1,978 $ 49,263 $ 42,969 $ 35,979 $ (2,827 ) $ 127,362 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended September 30, 2017 Revenues $ 118,499 $ 94,318 $ 80,411 $ 91,020 $ 1,770 $ 386,018 Expenses 115,806 50,585 40,003 59,831 5,063 271,288 Operating profit (loss) $ 2,693 $ 43,733 $ 40,408 $ 31,189 $ (3,293 ) $ 114,730 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 September 30 , 2018 and 2017 is as follows: 2018 2017 Total operating profit from segments $ 127,362 $ 114,730 Corporate overhead expenses (14,942 ) (15,493 ) Income from operations $ 112,420 $ 99,237 The following tables provide additional information for the three months ended September 30 , 2018 and 2017 pertaining to our business segments: Capital Expenditures (1) Depreciation 2018 2017 2018 2017 Private Banks $ 7,999 $ 14,671 $ 3,427 $ 4,374 Investment Advisors 3,927 5,421 1,168 759 Institutional Investors 962 1,260 410 248 Investment Managers 4,104 3,450 1,796 1,197 Investments in New Businesses 287 173 137 162 Total from business segments $ 17,279 $ 24,975 $ 6,938 $ 6,740 Corporate overhead 460 377 317 208 $ 17,739 $ 25,352 $ 7,255 $ 6,948 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization 2018 2017 Private Banks $ 6,943 $ 9,125 Investment Advisors 2,445 2,973 Institutional Investors 427 425 Investment Managers 2,346 1,132 Investments in New Businesses 186 40 Total from business segments $ 12,347 $ 13,695 Corporate overhead 58 50 $ 12,405 $ 13,745 The following tables highlight certain financial information about each of the Company’s business segments for the nine months ended September 30, 2018 and 2017 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Nine Months Ended September 30, 2018 Revenues $ 361,739 $ 301,632 $ 252,391 $ 295,696 $ 7,652 $ 1,219,110 Expenses 343,515 158,792 122,617 191,955 16,807 833,686 Operating profit (loss) $ 18,224 $ 142,840 $ 129,774 $ 103,741 $ (9,155 ) $ 385,424 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Nine Months Ended September 30, 2017 Revenues $ 347,317 $ 275,302 $ 235,483 $ 255,123 $ 5,108 $ 1,118,333 Expenses 336,709 147,504 117,499 165,743 15,067 782,522 Operating profit (loss) $ 10,608 $ 127,798 $ 117,984 $ 89,380 $ (9,959 ) $ 335,811 A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the nine months ended September 30 , 2018 and 2017 is as follows: 2018 2017 Total operating profit from segments $ 385,424 $ 335,811 Corporate overhead expenses (46,398 ) (45,830 ) Income from operations $ 339,026 $ 289,981 The following tables provide additional information for the nine months ended September 30 , 2018 and 2017 pertaining to our business segments: Capital Expenditures (1) Depreciation 2018 2017 2018 2017 Private Banks $ 27,767 $ 37,000 $ 10,069 $ 12,956 Investment Advisors 12,471 13,651 3,378 2,294 Institutional Investors 2,926 3,157 1,310 719 Investment Managers 9,994 13,730 5,411 3,141 Investments in New Businesses 731 432 442 701 Total from business segments $ 53,889 $ 67,970 $ 20,610 $ 19,811 Corporate Overhead 1,134 921 905 536 $ 55,023 $ 68,891 $ 21,515 $ 20,347 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization 2018 2017 Private Banks $ 20,317 $ 26,464 Investment Advisors 7,203 8,720 Institutional Investors 1,281 1,174 Investment Managers 7,036 1,623 Investments in New Businesses 410 200 Total from business segments $ 36,247 $ 38,181 Corporate Overhead 173 151 $ 36,420 $ 38,332 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The gross liability for unrecognized tax benefits at September 30, 2018 and December 31, 2017 was $14,342 and $14,480 , respectively, exclusive of interest and penalties, of which $13,670 and $13,737 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 September 30, 2018 and December 31, 2017 , the combined amount of accrued interest and penalties related to tax positions taken on tax returns was $1,366 and $1,175 , respectively. September 30, 2018 December 31, 2017 Gross liability for unrecognized tax benefits, exclusive of interest and penalties $ 14,342 $ 14,480 Interest and penalties on unrecognized benefits 1,366 1,175 Total gross uncertain tax positions $ 15,708 $ 15,655 Amount included in Current liabilities $ 1,398 $ 3,275 Amount included in Other long-term liabilities 14,310 12,380 $ 15,708 $ 15,655 The Company's effective income tax rate for the three and nine months ended September 30, 2018 and 2017 differs from the federal income tax statutory rate due to the following: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Statutory rate 21.0 % 35.0 % 21.0 % 35.0 % State taxes, net of federal tax benefit 2.3 1.7 2.3 1.7 Foreign tax expense and tax rate differential (0.2 ) (1.0 ) (0.2 ) (1.0 ) Tax benefit from stock option exercises (1.4 ) (4.5 ) (4.8 ) (3.9 ) Expiration of the statute of limitations (1.0 ) (2.6 ) (0.3 ) (0.9 ) Provision-to-return adjustment (2.3 ) — (0.8 ) — Other, net 0.2 (0.9 ) — (0.7 ) 18.6 % 27.7 % 17.2 % 30.2 % The decrease in the effective tax rates for the three and nine months ended September 30, 2018 was primarily due to the tax changes enacted in the 2017 Tax Cut and Jobs Act (The Tax Act). The Tax Act was enacted on December 22, 2017 and included a permanent reduction in the corporate tax rate from 35.0 percent to 21.0 percent. The Company's effective tax rates for the three and nine months ended September 30, 2018 were favorably impacted by the reduction of the estimated one-time transition tax enacted by The Tax Act and a provision-to-return adjustment on the Company's 2017 federal income tax return. These adjustments to the one-time transition tax and the Company's deferred taxes represent what the Company believes are its final liabilities under the changes enacted in The Tax Act. The Tax Act also imposed a territorial rather than worldwide system which requires a one-time transition tax on the repatriation of previously deferred foreign earnings. The Company's one-time transition tax as of the filing of the Company's 2017 Federal Tax Return was $10,711 . After the Company made a payment of $1,000 and its estimated tax payments relating to its 2017 tax liability, the IRS issued guidance informing taxpayers that they may not receive a refund or credit of any portion of properly applied 2017 tax payments unless and until the amount of payments exceeds the entire unpaid 2017 repatriation tax liability, including all amounts to be paid in installments in subsequent years. In accordance with this guidance, the Company was required to apply $8,941 from an overpayment of federal taxes against the transition tax payable during the nine months ended September 30, 2018 . The remaining amount payable related to the transition tax of $770 is included in Long-term income taxes payable on the accompanying Consolidated Balance Sheet. 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 2015 and is no longer subject to state, local or foreign income tax examinations by authorities for years before 2013 . The Company estimates it will recognize $1,398 of gross unrecognized tax benefits. This amount is expected to be paid within one year or to be removed at 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 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
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. |
Business Acquisition
Business Acquisition | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Acquisition | Business Acquisition On April 2, 2018 , the Company acquired all ownership interests of Huntington Steele, LLC (Huntington Steele), a registered investment advisor based in Seattle, Washington servicing the ultra-high-net-worth market, to enhance the Company's business development and research efforts in an additional geographic region. Under the acquisition method of accounting, the total purchase price was allocated to Huntington Steele's net tangible and intangible assets based upon their estimated fair values as of April 2, 2018 based on management’s best estimates and assumptions as of the reporting date and are considered preliminary pending finalization of valuation analyses pertaining to the intangible assets acquired and the contingent consideration. The total purchase price for Huntington Steele was $17,914 , which includes $5,794 in cash consideration, net of $125 in cash acquired, and a contingent purchase price of $12,120 . The contingent purchase price consists of amounts payable to the sellers upon the attainment of specified financial measures determined at various intervals over the next five years. The current portion of the contingent purchase price of $430 is included in Accrued liabilities on the accompanying Balance Sheet. The long-term portion of the contingent consideration of $11,690 is included in Other long-term liabilities on the accompanying Balance Sheet. The purchase price allocation is as follows: Estimated Fair Value Estimated Useful Life Cash $ 125 Goodwill 11,499 Identifiable intangible assets Client relationships 6,180 12.0 years Trade names 450 7.0 years Other assets 15 Current liabilities (230 ) Contingent consideration (12,120 ) Net cash consideration $ 5,794 The results of operations of Huntington Steele, as well as all tangible and intangible assets resulting from the transaction, are included in the Investments in New Businesses segment. Any goodwill generated from the acquisition is fully deductible for income tax purposes. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of the Company's goodwill by segment are as follows: Investment Managers Investments In New Businesses Total Balance, January 1, 2018 $ 52,990 $ — $ 52,990 Business acquisition — 11,499 11,499 Balance, September 30, 2018 $ 52,990 $ 11,499 $ 64,489 On April 2, 2018, the Company acquired all ownership interests of Huntington Steele (See Note 13). The excess purchase price over the value of the identifiable intangible assets was preliminarily allocated to goodwill and is included on the accompanying Consolidated Balance Sheet. In July 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. The total purchase price was allocated to Archway’s net tangible and intangible assets based upon their estimated fair values at the date of purchase. The excess purchase price over the value of the net tangible and identifiable intangible assets was recorded as goodwill. The total amount of goodwill from this transaction amounted to $52,990 and is included on the accompanying Consolidated Balance Sheets. The Company's intangible assets consist of: September 30, 2018 Weighted Average Estimated Useful Life December 31, 2017 Weighted Average Estimated Useful Life Acquired technology $ 13,510 10.0 years $ 13,510 10.0 years Client relationships 16,940 13.9 years 10,760 15.0 years Non-competition agreements 3,470 5.0 years 3,470 5.0 years Trade name 2,840 7.0 years 2,390 7.0 years 36,760 30,130 Less: Accumulated amortization (4,169 ) (1,552 ) Intangible assets, net $ 32,591 $ 28,578 The Company recognized $2,617 and $857 of amortization expense related to intangible assets during the nine months ended September 30, 2018 and 2017 |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers The Company’s principal sources of revenues are: (1) asset management, administration and distribution fees primarily earned based upon a contractual percentage of net assets under management or administration; and (2) information processing and software servicing fees that are either recurring and primarily earned based upon the number of trust accounts being serviced or a percentage of the total average daily market value of the clients' assets processed on the Company's platforms, or non-recurring and based upon project-oriented contractual agreements related to client implementations. Disaggregation of Revenue The following tables provide additional information pertaining to our revenues disaggregated by major product line and primary geographic market based on the location of the use of the products or services for each of the Company’s business segments for the three and nine months ended September 30, 2018 : Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total Major Product Lines: For the Three Months Ended September 30, 2018 Investment management fees from pooled investment products $ 34,897 $ 73,663 $ 14,614 $ 206 $ 267 $ 123,647 Investment management fees from investment management agreements 197 24,525 68,318 79 2,641 95,760 Investment operations fees 381 — — 92,185 — 92,566 Investment processing fees - PaaS 44,836 — — 624 — 45,460 Investment processing fees - SaaS 32,925 — — 2,417 — 35,342 Professional services fees 3,408 — — 1,792 — 5,200 Account fees and other 1,805 4,362 534 3,972 34 10,707 Total revenues $ 118,449 $ 102,550 $ 83,466 $ 101,275 $ 2,942 $ 408,682 Primary Geographic Markets: United States $ 73,188 $ 102,550 $ 64,601 $ 95,132 $ 2,942 $ 338,413 United Kingdom 28,647 — 13,817 — — 42,464 Canada 11,730 — 1,895 — — 13,625 Ireland 4,884 — 2,828 6,143 — 13,855 Other — — 325 — — 325 Total revenues $ 118,449 $ 102,550 $ 83,466 $ 101,275 $ 2,942 $ 408,682 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total Major Product Lines: For the Nine Months Ended September 30, 2018 Investment management fees from pooled investment products $ 105,251 $ 218,562 $ 45,819 $ 445 $ 729 $ 370,806 Investment management fees from investment management agreements 609 70,678 205,202 242 6,824 283,555 Investment operations fees 1,138 — — 267,951 — 269,089 Investment processing fees - PaaS 133,336 — — 1,749 — 135,085 Investment processing fees - SaaS 102,980 — — 7,152 — 110,132 Professional services fees 13,022 — — 5,660 — 18,682 Account fees and other 5,403 12,392 1,370 12,497 99 31,761 Total revenues $ 361,739 $ 301,632 $ 252,391 $ 295,696 $ 7,652 $ 1,219,110 Primary Geographic Markets: United States $ 226,990 $ 301,632 $ 193,417 $ 279,736 $ 7,652 $ 1,009,427 United Kingdom 85,177 — 42,498 — — 127,675 Canada 34,847 — 6,700 — — 41,547 Ireland 14,725 — 8,282 15,960 — 38,967 Other — — 1,494 — — 1,494 Total revenues $ 361,739 $ 301,632 $ 252,391 $ 295,696 $ 7,652 $ 1,219,110 Investment management fees from pooled investment products - Revenues associated with clients' assets invested in Company-sponsored pooled investment products. Contractual fees are stated as a percentage of the average market value of assets under management and collected on a monthly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Investment management fees from investment management agreements - Revenues based on assets of clients of the Institutional Investors segment primarily invested in Company-sponsored products. Each client is charged an investment management fee that is stated as a percentage of the average market value of all assets under management. The client is billed directly on a quarterly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Revenues associated with the separately managed account program offered through registered investment advisors located throughout the United States. The contractual fee is stated as a percentage of the average market value of all assets invested in the separately managed account and collected on a quarterly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Investment operations fees - Revenues earned from accounting and administrative services, distribution support services and regulatory and compliance services to investment management firms and family offices. The Company contracts directly with the investment management firm or family office. The contractual fees are stated as a percentage of net assets under administration and billed when asset valuations are finalized. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Investment processing fees - Software as a Service - Revenues associated with clients that outsource investment processing technology software and computer processing by accessing our proprietary software and data center remotely but retain responsibility for all investment operations, client administration and other back-office trust operations. The contractual fee is based on a monthly fee plus additional fees determined on a per-account or per-transaction basis. The client is billed directly on a monthly basis. Revenues are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations. Investment processing fees - Platform as a Service - Revenues associated with clients that outsource their entire investment operation and back-office processing functions. Through the use of the Company's proprietary platforms, the Company assumes all back-office investment processing services including investment processing, custody and safekeeping of assets, income collections, securities settlement and other related trust activities. The contractual fee is based on a monthly fee plus additional fees determined on a per-account or per-transaction basis. Contractual fees can also be stated as a percentage of the value of assets processed on the Company's platforms each month as long as the fee is in excess of a monthly contractual minimum. The client is billed directly on a monthly basis. Revenues are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations. Professional services fees - Revenues associated with the business services migration for investment processing clients of the Private Banks segment and investment operations clients of the Investment Managers segment. In addition, Professional services include other services such as business transformation consulting. Typically, fees are stated as a contractual fixed fee. The client is billed directly and fees are collected according to the terms of the agreement. Other - Revenues associated with custody account servicing, account terminations, reimbursements received for out-of-pocket expenses, and other fees for the provision of ancillary services. Revenue is recognized by the Company when the performance obligations are satisfied and transfer of control to the client is completed. The majority of the Company’s performance obligations are satisfied and control is transferred to the client continuously. Therefore, revenue is recognized on a monthly basis. The amount of revenue recognized reflects the amount of consideration expected to be received by the Company in exchange for satisfied performance obligations. Deferred Contract Costs Deferred contract costs, which primarily consist of deferred sales commissions, were $22,104 as of September 30, 2018 . The Company recorded a cumulative effect adjustment on January 1, 2018 of $18,641 associated with the capitalization of contract costs upon the adoption of ASC 606 (See Note 1). The Company deferred expenses related to contract costs of $1,400 and $5,483 during the three and nine months ended September 30, 2018 , respectively. Amortization expense related to deferred contract costs were $819 and $2,020 during the three and nine months ended September 30, 2018 , respectively. There was no impairment loss in relation to deferred contract costs during the nine months ended September 30, 2018 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 , the results of operations for the three and nine months ended September 30, 2018 and 2017 , and cash flows for the nine -month periods ended September 30, 2018 and 2017 . 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, 2017 . The Company adopted the requirements of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Accounting Standards Codification (ASC) 606 (ASC 606)) using the modified retrospective method during the nine months ended September 30, 2018 . As a result of the adoption of ASC 606, the Company recorded a cumulative effect adjustment of $14,402 to retained earnings as of January 1, 2018. Prior period information has not been restated (see following caption "Revenue Recognition"). The Company also adopted ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (see Note 6) and ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (Topic 230) (see following caption "Statements of Cash Flows"). All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standards. |
Revenue Recognition | Revenue Recognition Revenue is recognized when the transfer of control of promised goods or services under the terms of a contract with customers are satisfied in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services. Certain portions of the Company’s revenues involve a third party in providing goods or services to its customers. In such circumstances, the Company must determine whether the nature of its promise to the customer is to provide the underlying goods or services (the Company is the principal in the transaction and reports the transaction gross) or to arrange for a third party to provide the underlying goods or services (the entity is the agent in the transaction and reports the transaction net). ASC 606 did not change the accounting for the majority of the Company’s revenue arrangements and did not have a material impact to the Company’s consolidated financial statements. The following is a summary of the impact from the adoption of ASC 606: • The majority of the Company’s services are bundled together, and provided and completed for the client on a monthly basis. For these revenue arrangements, the Company continues to recognize revenue on a monthly basis as the client consumes the benefits continuously over time. The timing and recognition of revenues from these arrangements did not change. • Contracts with new clients or with existing clients for new services generally include implementation fees. These fees are recognized in Information processing and software servicing fees when in connection with investment processing platforms and are recognized in Asset management, administration and distribution fees when in connection with investment operations platforms. The Company concluded that most of the current arrangements for implementation services are a distinct and separate performance obligation from the monthly recurring services. The timing and recognition of fees for most of these arrangements have not changed. However, each new revenue arrangement for implementation fees is analyzed to determine whether or not it is a distinct performance obligation. Implementation fees determined not to be a distinct performance obligation would be required to be recognized over the expected life of the client relationship along with the costs relating directly to satisfying such performance obligation. The Company will evaluate each contract in accordance with the requirements of ASC 606. • Research services provided by SIDCO, the Company’s broker-dealer subsidiary, to customers in soft-dollar arrangements were determined to be a separate performance obligation. Research services provided by a broker-dealer may be internally generated or provided by a third party and paid directly by the broker-dealer on the customer’s behalf. It was determined that SIDCO is considered an agent since it does not control the research services before they are transferred to the customer. Therefore, fees received for research services should be recorded in revenues net of amounts paid for the soft-dollar arrangement. These amounts paid by the Company were previously recorded gross as an expense and, beginning January 1, 2018, are recorded net of any revenue recognized. The amounts related to soft-dollar arrangements during the three months ended September 30, 2018 and 2017 were $3,265 and $3,297 , respectively. The amounts related to soft-dollar arrangements during the nine months ended September 30, 2018 and 2017 were $10,497 and $10,799 , respectively. • |
Cash and Cash Equivalents | 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.Cash and Cash Equivalents Cash and cash equivalents includes $286,824 and $401,292 at September 30, 2018 and December 31, 2017 |
Restricted Cash | Restricted Cash Restricted cash includes $3,000 at September 30, 2018 and December 31, 2017 segregated for regulatory purposes related to trade-execution services conducted by SEI Investments (Europe) Limited. Restricted cash also includes $511 and $505 at September 30, 2018 and December 31, 2017 |
Reclassifications | ReclassificationsCertain prior year amounts have been reclassified to conform to current year presentation. |
New Accounting Pronouncements | New Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02), as amended, 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 be classified as either operating or finance leases, with the classification affecting the pattern and classification of expense recognition in the income statement. The updated standard is effective for the Company beginning in the first quarter of 2019. Early adoption is permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (i) its effective date or (ii) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company expects to adopt the new standard on January 1, 2019 and use the effective date as the date of initial application. As a result, financial information will not be updated and the disclosures required under the new standard will not be provided for periods prior to January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company expects to elect the package of practical expedients which permits the Company to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. As part of its project plan’s preliminary assessment and design implementation phases for the adoption of ASU 2016-02, the Company has adopted implementation controls that allow it to properly and timely adopt ASU 2016-02 on the effective date. While the Company continues to assess all of the effects of adoption, the Company believes the most significant effects relate to the recognition of right-of-use assets and lease liabilities on the balance sheet for office space and certain office equipment and providing significant new disclosures about leasing arrangements. The Company owns its corporate headquarters and leases office space in other locations. The Company has completed the process of cataloging existing lease agreements and is currently calculating the right-of-use asset and lease liability. The Company will make updates to the year-end disclosures, with a focus on both status and internal controls over financial reporting. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) which requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. ASU 2016-13 limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. ASU 2016-13 becomes effective for the Company during the first quarter of 2020. Early adoption is permitted. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (ASU 2017-04). The objective of ASU 2017-04 is to simplify the subsequent measurement of goodwill by entities performing their annual goodwill impairment tests by comparing the fair value of a reporting unit, including income tax effects from any tax-deductible goodwill, with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds fair value. ASU 2017-04 is effective for the Company beginning in the first quarter of 2020. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2017-04 on its consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07) which simplifies the accounting for nonemployee share-based payment transactions. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. ASU 2018-07 is effective for the Company beginning in the first quarter of 2019. The Company does not believe the adoption of ASU 2018-07 will have a material impact 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 voting interest entity (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 2021 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 for our Level 1 and Level 2 financial assets during the nine months ended September 30 , 2018 were consistent with those as described in our Annual Report on Form 10-K at December 31, 2017 . The Company had no Level 3 financial assets at September 30, 2018 or December 31, 2017 |
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 Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Calculation Of Basic And Diluted Earnings Per Share | The calculations of basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 are: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income $ 128,319 $ 101,739 $ 389,834 $ 282,245 Shares used to compute basic earnings per common share 156,283,000 157,902,000 157,086,000 158,439,000 Dilutive effect of stock options 4,228,000 3,246,000 4,967,000 3,427,000 Shares used to compute diluted earnings per common share 160,511,000 161,148,000 162,053,000 161,866,000 Basic earnings per common share $ 0.82 $ 0.64 $ 2.48 $ 1.78 Diluted earnings per common share $ 0.80 $ 0.63 $ 2.41 $ 1.74 |
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 nine months ended September 30 : 2018 2017 Net income $ 389,834 $ 282,245 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 21,515 20,347 Amortization 36,420 38,332 Equity in earnings of unconsolidated affiliate (123,406 ) (109,213 ) Distributions received from unconsolidated affiliate 138,216 117,447 Stock-based compensation 16,396 19,527 Provision for losses on receivables (29 ) 176 Deferred income tax expense 8,378 1,143 Net loss (gain) from investments 460 (1,036 ) Change in long-term income taxes payable (9,859 ) — Change in other long-term liabilities 1,930 106 Change in other assets (4,214 ) 79 Contract costs capitalized, net of amortization (3,463 ) — Other (99 ) 1,070 Change in current assets and liabilities Decrease (increase) in Receivables from investment products 2,263 10,800 Receivables (44,878 ) (43,661 ) Other current assets (5,955 ) (2,962 ) Increase (decrease) in Accounts payable 3,893 (1,748 ) Accrued liabilities (9,717 ) (15,856 ) Deferred revenue 213 (409 ) Total adjustments 28,064 34,142 Net cash provided by operating activities $ 417,898 $ 316,387 |
Investment In Unconsolidated _2
Investment In Unconsolidated Affiliate (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ 133,921 $ 126,723 $ 397,750 $ 355,996 Net income 107,284 101,130 317,295 280,717 Condensed Balance Sheets September 30, 2018 December 31, 2017 Current assets $ 150,183 $ 155,239 Non-current assets 1,383 1,407 Total assets $ 151,566 $ 156,646 Current liabilities $ 79,052 $ 46,486 Partners’ capital 72,514 110,160 Total liabilities and partners’ capital $ 151,566 $ 156,646 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Items Included in Consolidated Statement of Financial Condition [Abstract] | |
Receivables | Receivables on the accompanying Consolidated Balance Sheets consist of: September 30, 2018 December 31, 2017 Trade receivables $ 77,239 $ 76,760 Fees earned, not billed 240,538 194,331 Other receivables 10,503 12,310 328,280 283,401 Less: Allowance for doubtful accounts (666 ) (695 ) $ 327,614 $ 282,706 |
Property And Equipment | Property and Equipment on the accompanying Consolidated Balance Sheets consists of: September 30, 2018 December 31, 2017 Buildings $ 154,723 $ 153,961 Equipment 125,867 115,546 Land 10,557 10,030 Purchased software 138,565 134,610 Furniture and fixtures 17,971 18,114 Leasehold improvements 18,816 18,017 Construction in progress 10,504 6,105 477,003 456,383 Less: Accumulated depreciation (331,138 ) (309,955 ) Property and Equipment, net $ 145,865 $ 146,428 |
Accrued Liabilities | Accrued liabilities on the accompanying Consolidated Balance Sheets consist of: September 30, 2018 December 31, 2017 Accrued employee compensation $ 68,371 $ 88,960 Accrued consulting, outsourcing and professional fees 28,322 29,658 Accrued sub-advisory, distribution and other asset management fees 49,452 42,365 Accrued dividend payable — 47,179 Accrued income taxes 11,164 5,583 Other accrued liabilities 50,366 51,313 Total accrued liabilities $ 207,675 $ 265,058 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Certain Financial Assets And Liabilities | The fair value of certain financial assets of the Company was determined using the following inputs: Fair Value Measurements at the End of the Reporting Period Using Assets September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Equity available-for-sale securities $ 11,326 $ 11,326 $ — Fixed-income available-for-sale securities 72,972 — 72,972 Fixed-income securities owned 28,945 — 28,945 Investment funds sponsored by LSV (1) 5,736 $ 118,979 $ 11,326 $ 101,917 Fair Value Measurements at the End of the Reporting Period Using Assets December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Equity available-for-sale securities $ 11,250 $ 11,250 $ — Fixed-income available-for-sale securities 76,733 — 76,733 Fixed-income securities owned 21,526 — 21,526 Investment funds sponsored by LSV (1) 6,034 $ 115,543 $ 11,250 $ 98,259 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Marketable Securities [Abstract] | |
Investments Available For Sale | Investments available for sale classified as non-current assets consist of: At September 30, 2018 Cost Amount Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 7,392 $ 107 $ (304 ) $ 7,195 Equities and other mutual funds 3,479 652 — 4,131 Debt securities 75,673 — (2,701 ) 72,972 $ 86,544 $ 759 $ (3,005 ) $ 84,298 At December 31, 2017 Cost Amount Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 7,369 $ 110 $ (143 ) $ 7,336 Equities and other mutual funds 3,456 458 — 3,914 Debt securities 77,745 — (1,012 ) 76,733 $ 88,570 $ 568 $ (1,155 ) $ 87,983 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The Company recognized stock-based compensation expense in its Consolidated Financial Statements in the three and nine months ended September 30, 2018 and 2017 , respectively, as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock-based compensation expense $ 5,878 $ 7,088 $ 16,396 $ 19,527 Less: Deferred tax benefit (1,311 ) (2,517 ) (3,556 ) (6,859 ) Stock-based compensation expense, net of tax $ 4,567 $ 4,571 $ 12,840 $ 12,668 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 $ (19,522 ) $ (386 ) $ (19,908 ) Other comprehensive loss before reclassifications (7,261 ) (1,662 ) (8,923 ) Amounts reclassified from accumulated other comprehensive loss — (32 ) (32 ) Net current-period other comprehensive loss (7,261 ) (1,694 ) (8,955 ) Balance, September 30, 2018 $ (26,783 ) $ (2,080 ) $ (28,863 ) |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
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 September 30, 2018 and 2017 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended September 30, 2018 Revenues $ 118,449 $ 102,550 $ 83,466 $ 101,275 $ 2,942 $ 408,682 Expenses 116,471 53,287 40,497 65,296 5,769 281,320 Operating profit (loss) $ 1,978 $ 49,263 $ 42,969 $ 35,979 $ (2,827 ) $ 127,362 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended September 30, 2017 Revenues $ 118,499 $ 94,318 $ 80,411 $ 91,020 $ 1,770 $ 386,018 Expenses 115,806 50,585 40,003 59,831 5,063 271,288 Operating profit (loss) $ 2,693 $ 43,733 $ 40,408 $ 31,189 $ (3,293 ) $ 114,730 nine months ended September 30, 2018 and 2017 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Nine Months Ended September 30, 2018 Revenues $ 361,739 $ 301,632 $ 252,391 $ 295,696 $ 7,652 $ 1,219,110 Expenses 343,515 158,792 122,617 191,955 16,807 833,686 Operating profit (loss) $ 18,224 $ 142,840 $ 129,774 $ 103,741 $ (9,155 ) $ 385,424 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Nine Months Ended September 30, 2017 Revenues $ 347,317 $ 275,302 $ 235,483 $ 255,123 $ 5,108 $ 1,118,333 Expenses 336,709 147,504 117,499 165,743 15,067 782,522 Operating profit (loss) $ 10,608 $ 127,798 $ 117,984 $ 89,380 $ (9,959 ) $ 335,811 |
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 nine months ended September 30 , 2018 and 2017 is as follows: 2018 2017 Total operating profit from segments $ 385,424 $ 335,811 Corporate overhead expenses (46,398 ) (45,830 ) Income from operations $ 339,026 $ 289,981 three months ended September 30 , 2018 and 2017 is as follows: 2018 2017 Total operating profit from segments $ 127,362 $ 114,730 Corporate overhead expenses (14,942 ) (15,493 ) Income from operations $ 112,420 $ 99,237 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | The following tables provide additional information for the nine months ended September 30 , 2018 and 2017 pertaining to our business segments: Capital Expenditures (1) Depreciation 2018 2017 2018 2017 Private Banks $ 27,767 $ 37,000 $ 10,069 $ 12,956 Investment Advisors 12,471 13,651 3,378 2,294 Institutional Investors 2,926 3,157 1,310 719 Investment Managers 9,994 13,730 5,411 3,141 Investments in New Businesses 731 432 442 701 Total from business segments $ 53,889 $ 67,970 $ 20,610 $ 19,811 Corporate Overhead 1,134 921 905 536 $ 55,023 $ 68,891 $ 21,515 $ 20,347 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization 2018 2017 Private Banks $ 20,317 $ 26,464 Investment Advisors 7,203 8,720 Institutional Investors 1,281 1,174 Investment Managers 7,036 1,623 Investments in New Businesses 410 200 Total from business segments $ 36,247 $ 38,181 Corporate Overhead 173 151 $ 36,420 $ 38,332 three months ended September 30 , 2018 and 2017 pertaining to our business segments: Capital Expenditures (1) Depreciation 2018 2017 2018 2017 Private Banks $ 7,999 $ 14,671 $ 3,427 $ 4,374 Investment Advisors 3,927 5,421 1,168 759 Institutional Investors 962 1,260 410 248 Investment Managers 4,104 3,450 1,796 1,197 Investments in New Businesses 287 173 137 162 Total from business segments $ 17,279 $ 24,975 $ 6,938 $ 6,740 Corporate overhead 460 377 317 208 $ 17,739 $ 25,352 $ 7,255 $ 6,948 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization 2018 2017 Private Banks $ 6,943 $ 9,125 Investment Advisors 2,445 2,973 Institutional Investors 427 425 Investment Managers 2,346 1,132 Investments in New Businesses 186 40 Total from business segments $ 12,347 $ 13,695 Corporate overhead 58 50 $ 12,405 $ 13,745 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Interest And Penalties | September 30, 2018 December 31, 2017 Gross liability for unrecognized tax benefits, exclusive of interest and penalties $ 14,342 $ 14,480 Interest and penalties on unrecognized benefits 1,366 1,175 Total gross uncertain tax positions $ 15,708 $ 15,655 Amount included in Current liabilities $ 1,398 $ 3,275 Amount included in Other long-term liabilities 14,310 12,380 $ 15,708 $ 15,655 |
Schedule of Effective Income Tax Rate Reconciliation | The Company's effective income tax rate for the three and nine months ended September 30, 2018 and 2017 differs from the federal income tax statutory rate due to the following: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Statutory rate 21.0 % 35.0 % 21.0 % 35.0 % State taxes, net of federal tax benefit 2.3 1.7 2.3 1.7 Foreign tax expense and tax rate differential (0.2 ) (1.0 ) (0.2 ) (1.0 ) Tax benefit from stock option exercises (1.4 ) (4.5 ) (4.8 ) (3.9 ) Expiration of the statute of limitations (1.0 ) (2.6 ) (0.3 ) (0.9 ) Provision-to-return adjustment (2.3 ) — (0.8 ) — Other, net 0.2 (0.9 ) — (0.7 ) 18.6 % 27.7 % 17.2 % 30.2 % |
Business Acquisition (Tables)
Business Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The purchase price allocation is as follows: Estimated Fair Value Estimated Useful Life Cash $ 125 Goodwill 11,499 Identifiable intangible assets Client relationships 6,180 12.0 years Trade names 450 7.0 years Other assets 15 Current liabilities (230 ) Contingent consideration (12,120 ) Net cash consideration $ 5,794 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of the Company's goodwill by segment are as follows: Investment Managers Investments In New Businesses Total Balance, January 1, 2018 $ 52,990 $ — $ 52,990 Business acquisition — 11,499 11,499 Balance, September 30, 2018 $ 52,990 $ 11,499 $ 64,489 |
Schedule of Intangible Assets | The Company's intangible assets consist of: September 30, 2018 Weighted Average Estimated Useful Life December 31, 2017 Weighted Average Estimated Useful Life Acquired technology $ 13,510 10.0 years $ 13,510 10.0 years Client relationships 16,940 13.9 years 10,760 15.0 years Non-competition agreements 3,470 5.0 years 3,470 5.0 years Trade name 2,840 7.0 years 2,390 7.0 years 36,760 30,130 Less: Accumulated amortization (4,169 ) (1,552 ) Intangible assets, net $ 32,591 $ 28,578 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables provide additional information pertaining to our revenues disaggregated by major product line and primary geographic market based on the location of the use of the products or services for each of the Company’s business segments for the three and nine months ended September 30, 2018 : Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total Major Product Lines: For the Three Months Ended September 30, 2018 Investment management fees from pooled investment products $ 34,897 $ 73,663 $ 14,614 $ 206 $ 267 $ 123,647 Investment management fees from investment management agreements 197 24,525 68,318 79 2,641 95,760 Investment operations fees 381 — — 92,185 — 92,566 Investment processing fees - PaaS 44,836 — — 624 — 45,460 Investment processing fees - SaaS 32,925 — — 2,417 — 35,342 Professional services fees 3,408 — — 1,792 — 5,200 Account fees and other 1,805 4,362 534 3,972 34 10,707 Total revenues $ 118,449 $ 102,550 $ 83,466 $ 101,275 $ 2,942 $ 408,682 Primary Geographic Markets: United States $ 73,188 $ 102,550 $ 64,601 $ 95,132 $ 2,942 $ 338,413 United Kingdom 28,647 — 13,817 — — 42,464 Canada 11,730 — 1,895 — — 13,625 Ireland 4,884 — 2,828 6,143 — 13,855 Other — — 325 — — 325 Total revenues $ 118,449 $ 102,550 $ 83,466 $ 101,275 $ 2,942 $ 408,682 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total Major Product Lines: For the Nine Months Ended September 30, 2018 Investment management fees from pooled investment products $ 105,251 $ 218,562 $ 45,819 $ 445 $ 729 $ 370,806 Investment management fees from investment management agreements 609 70,678 205,202 242 6,824 283,555 Investment operations fees 1,138 — — 267,951 — 269,089 Investment processing fees - PaaS 133,336 — — 1,749 — 135,085 Investment processing fees - SaaS 102,980 — — 7,152 — 110,132 Professional services fees 13,022 — — 5,660 — 18,682 Account fees and other 5,403 12,392 1,370 12,497 99 31,761 Total revenues $ 361,739 $ 301,632 $ 252,391 $ 295,696 $ 7,652 $ 1,219,110 Primary Geographic Markets: United States $ 226,990 $ 301,632 $ 193,417 $ 279,736 $ 7,652 $ 1,009,427 United Kingdom 85,177 — 42,498 — — 127,675 Canada 34,847 — 6,700 — — 41,547 Ireland 14,725 — 8,282 15,960 — 38,967 Other — — 1,494 — — 1,494 Total revenues $ 361,739 $ 301,632 $ 252,391 $ 295,696 $ 7,652 $ 1,219,110 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (New Accounting Pronouncements and Changes in Accounting Principle) (Details) $ in Thousands | Jan. 01, 2018USD ($) |
Accounting Standards Update 2014-09 | Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Net cumulative effect adjustment | $ 14,402 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Expense related to soft dollar arrangement | $ 3,265 | $ 3,297 | $ 10,497 | $ 10,799 | |
Cash and cash equivalents invested in SEI-sponsored money market funds | 741,965 | 741,965 | $ 744,247 | ||
Restricted cash | 3,511 | 3,511 | 3,505 | ||
Capitalized software development costs | 33,371 | $ 48,573 | |||
Net book value of capitalized software | $ 310,146 | $ 310,146 | 310,405 | ||
Anti-dilutive employee stock options (in shares) | 6,183 | 11,324 | 6,153 | 11,286 | |
Anti-dilutive employee stock options (in USD per share) | $ 53.38 | $ 37.81 | $ 53.15 | $ 37.73 | |
SEI Wealth Platform | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Capitalized software development costs | $ 32,526 | $ 40,604 | |||
Net book value of capitalized software | $ 288,010 | 288,010 | |||
Capitalized software in progress | 38,552 | 38,552 | |||
Amortization expense of capitalized software | $ 29,723 | 37,324 | |||
SEI Wealth Platform | Weighted Average | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Weighted Average Estimated Useful Life | 8 years 4 months 24 days | ||||
Application for Investment Managers segment [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Capitalized software development costs | $ 845 | $ 7,969 | |||
Net book value of capitalized software | 22,136 | $ 22,136 | |||
Weighted Average Estimated Useful Life | 5 years | ||||
Amortization expense of capitalized software | $ 3,907 | ||||
SEI Investments (Europe) Limited | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 3,000 | 3,000 | 3,000 | ||
SEI Investments Distribution Co. (SIDCO) | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 511 | 511 | 505 | ||
SEI-Sponsored Open-Ended Money Market Mutual Funds | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalents invested in SEI-sponsored money market funds | $ 286,824 | $ 286,824 | $ 401,292 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accounting Policies [Abstract] | ||||
Net income | $ 128,319 | $ 101,739 | $ 389,834 | $ 282,245 |
Shares used to compute basic earnings per common share (in shares) | 156,283 | 157,902 | 157,086 | 158,439 |
Dilutive effect of stock options (in shares) | 4,228 | 3,246 | 4,967 | 3,427 |
Shares used to compute diluted earnings per common share (in shares) | 160,511 | 161,148 | 162,053 | 161,866 |
Basic earnings per common share (in USD per share) | $ 0.82 | $ 0.64 | $ 2.48 | $ 1.78 |
Diluted earnings per common share (in USD per share) | $ 0.80 | $ 0.63 | $ 2.41 | $ 1.74 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Net Cash Provided by Operating Activities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accounting Policies [Abstract] | ||||
Net income | $ 128,319 | $ 101,739 | $ 389,834 | $ 282,245 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 7,255 | 6,948 | 21,515 | 20,347 |
Amortization | 12,405 | 13,745 | 36,420 | 38,332 |
Equity in earnings of unconsolidated affiliate | (41,726) | (39,333) | (123,406) | (109,213) |
Distributions received from unconsolidated affiliate | 138,216 | 117,447 | ||
Stock-based compensation | $ 5,878 | $ 7,088 | 16,396 | 19,527 |
Provision for losses on receivables | (29) | 176 | ||
Deferred income tax expense | 8,378 | 1,143 | ||
Net loss (gain) from investments | 460 | (1,036) | ||
Change in long-term income taxes payable | (9,859) | 0 | ||
Change in other long-term liabilities | 1,930 | 106 | ||
Change in other assets | (4,214) | 79 | ||
Contract costs capitalized, net of amortization | (3,463) | 0 | ||
Other | (99) | 1,070 | ||
Decrease (increase) in | ||||
Receivables from investment products | 2,263 | 10,800 | ||
Receivables | (44,878) | (43,661) | ||
Other current assets | (5,955) | (2,962) | ||
Increase (decrease) in | ||||
Accounts payable | 3,893 | (1,748) | ||
Accrued liabilities | (9,717) | (15,856) | ||
Deferred revenue | 213 | (409) | ||
Total adjustments | 28,064 | 34,142 | ||
Net cash provided by operating activities | $ 417,898 | $ 316,387 |
Investment In Unconsolidated _3
Investment In Unconsolidated Affiliate (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments in and Advances to Affiliates [Line Items] | ||||
Distributions received from unconsolidated affiliate | $ 138,216 | $ 117,447 | ||
Company's share in the earnings of equity method investee | $ 41,726 | $ 39,333 | $ 123,406 | 109,213 |
LSV Asset Management | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Equity method investment, ownership percentage | 38.90% | 38.90% | ||
Total investment in equity method investee | $ 44,682 | $ 44,682 | ||
Distributions received from unconsolidated affiliate | 138,216 | 117,447 | ||
Company's share in the earnings of equity method investee | $ 41,726 | $ 39,333 | $ 123,406 | $ 109,213 |
Investment In Unconsolidated _4
Investment In Unconsolidated Affiliate (Statement of Operations) (Details) - LSV Asset Management - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 133,921 | $ 126,723 | $ 397,750 | $ 355,996 |
Net income | $ 107,284 | $ 101,130 | $ 317,295 | $ 280,717 |
Investment in Unconsolidated _5
Investment in Unconsolidated Affiliate (Balance Sheets) (Details) - LSV Asset Management - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 150,183 | $ 155,239 |
Non-current assets | 1,383 | 1,407 |
Total assets | 151,566 | 156,646 |
Current liabilities | 79,052 | 46,486 |
Partners’ capital | 72,514 | 110,160 |
Total liabilities and partners’ capital | $ 151,566 | $ 156,646 |
Variable Interest Entities - _2
Variable Interest Entities - Investment Products (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
SEI-Sponsored Open-Ended Money Market Mutual Funds | ||||
Financial Support for Nonconsolidated Legal Entity [Line Items] | ||||
Fees waived according to expense limitation agreements | $ 6,525 | $ 6,942 | $ 19,551 | $ 20,620 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions (Receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Items Included in Consolidated Statement of Financial Condition [Abstract] | ||
Trade receivables | $ 77,239 | $ 76,760 |
Fees earned, not billed | 240,538 | 194,331 |
Other receivables | 10,503 | 12,310 |
Receivables, Gross, Current | 328,280 | 283,401 |
Less: Allowance for doubtful accounts | (666) | (695) |
Receivables, net | $ 327,614 | $ 282,706 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Captions (Property And Equipment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | $ 477,003 | $ 477,003 | $ 456,383 | ||
Less: Accumulated depreciation | (331,138) | (331,138) | (309,955) | ||
Property and Equipment, net | 145,865 | 145,865 | 146,428 | ||
Depreciation expense | 7,255 | $ 6,948 | 21,515 | $ 20,347 | |
Buildings | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 154,723 | 154,723 | 153,961 | ||
Equipment | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 125,867 | 125,867 | 115,546 | ||
Land | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 10,557 | 10,557 | 10,030 | ||
Purchased software | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 138,565 | 138,565 | 134,610 | ||
Furniture and fixtures | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 17,971 | 17,971 | 18,114 | ||
Leasehold improvements | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | 18,816 | 18,816 | 18,017 | ||
Construction in progress | |||||
Property and Equipment [Line Items] | |||||
Property and Equipment, gross | $ 10,504 | $ 10,504 | $ 6,105 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Captions (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Items Included in Consolidated Statement of Financial Condition [Abstract] | ||
Accrued employee compensation | $ 68,371 | $ 88,960 |
Accrued consulting, outsourcing and professional fees | 28,322 | 29,658 |
Accrued sub-advisory, distribution and other asset management fees | 49,452 | 42,365 |
Accrued dividend payable | 0 | 47,179 |
Accrued income taxes | 11,164 | 5,583 |
Other accrued liabilities | 50,366 | 51,313 |
Total accrued liabilities | $ 207,675 | $ 265,058 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Apr. 02, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity available-for-sale securities | $ 11,326 | $ 11,250 | |
Fixed-income available-for-sale securities | 72,972 | 76,733 | |
Fixed-income securities owned | 28,945 | 21,526 | |
Investment funds sponsored by LSV | 5,736 | 6,034 | |
Assets, fair value | 118,979 | 115,543 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity available-for-sale securities | 11,326 | 11,250 | |
Fixed-income available-for-sale securities | 0 | 0 | |
Fixed-income securities owned | 0 | 0 | |
Assets, fair value | 11,326 | 11,250 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity available-for-sale securities | 0 | 0 | |
Fixed-income available-for-sale securities | 72,972 | 76,733 | |
Fixed-income securities owned | 28,945 | 21,526 | |
Assets, fair value | $ 101,917 | $ 98,259 | |
Huntington Steele, LLC | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Contingent purchase price | $ 12,120 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule of Investments [Line Items] | |||
Net unrealized losses | $ 2,080 | $ 779 | |
Unrealized losses during the period, income tax benefit | 621 | 233 | |
Available-for-sale securities, gross realized gains | 1,031 | ||
Available-for-sale securities, gross realized losses | 1,520 | ||
Available-for-sale securities, gross realized gains | $ 428 | ||
Available-for-sale securities, gross realized losses | 706 | ||
Investments in Affiliated Funds, at fair value | 5,736 | 6,034 | |
Securities owned | 28,945 | 21,526 | |
Investment Funds Sponsored by LSV | |||
Schedule of Investments [Line Items] | |||
Investments in Affiliated Funds, at fair value | 5,736 | $ 6,034 | |
Gains (losses) from investment funds sponsored by LSV | $ (298) | $ 880 |
Marketable Securities (Investme
Marketable Securities (Investments Available For Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Equity Securities: | ||
Fair Value | $ 11,326 | $ 11,250 |
Debt Securities: | ||
Fair Value | 72,972 | 76,733 |
Cost Amount | 86,544 | 88,570 |
Gross Unrealized Gains | 759 | 568 |
Gross Unrealized (Losses) | (3,005) | (1,155) |
Fair Value | 84,298 | 87,983 |
SEI-sponsored mutual funds | ||
Equity Securities: | ||
Cost Amount | 7,392 | 7,369 |
Gross Unrealized Gains | 107 | 110 |
Gross Unrealized (Losses) | (304) | (143) |
Fair Value | 7,195 | 7,336 |
Equities and other mutual funds | ||
Equity Securities: | ||
Cost Amount | 3,479 | 3,456 |
Gross Unrealized Gains | 652 | 458 |
Gross Unrealized (Losses) | 0 | 0 |
Fair Value | 4,131 | 3,914 |
Debt securities | ||
Debt Securities: | ||
Cost Amount | 75,673 | 77,745 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | (2,701) | (1,012) |
Fair Value | $ 72,972 | $ 76,733 |
Line of Credit (Details)
Line of Credit (Details) - USD ($) | Jun. 13, 2016 | Oct. 31, 2017 | Jul. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Oct. 18, 2018 |
Line of Credit Facility [Line Items] | ||||||
Credit facility principal payment | $ 30,000,000 | $ 0 | ||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility term of agreement | 5 years | |||||
Credit facility maximum borrowing capacity | $ 300,000,000 | |||||
Credit facility stated percentage | 0.00% | |||||
Credit facility accordion feature, increase limit | $ 100,000,000 | |||||
Credit facility borrowings | $ 40,000,000 | |||||
Credit facility principal payment | $ 10,000,000 | $ 30,000,000 | ||||
Revolving Credit Facility | Subsequent Event | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility remaining borrowing capacity | $ 300,000,000 | |||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility variable interest rate basis spread | 1.00% | |||||
Revolving Credit Facility | Federal Funds Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility variable interest rate basis spread | 0.50% | |||||
Revolving Credit Facility | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility commitment fee per annum on daily unused portion | 0.15% | |||||
Revolving Credit Facility | Minimum | Lender's Base Rate Plus Market Spread | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility variable interest rate basis spread | 0.25% | |||||
Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility variable interest rate basis spread | 1.25% | |||||
Revolving Credit Facility | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility commitment fee per annum on daily unused portion | 0.30% | |||||
Revolving Credit Facility | Maximum | Lender's Base Rate Plus Market Spread | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility variable interest rate basis spread | 1.00% | |||||
Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility variable interest rate basis spread | 2.00% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | May 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 47,131 | $ 47,131 | |||
Total intrinsic value of options exercised | 123,365 | ||||
Aggregate intrinsic value of options exercisable | $ 247,517 | $ 247,517 | |||
Market value of Company's common stock (in USD per share) | $ 61.10 | $ 61.10 | |||
Weighted average exercise price per share (in USD per share) | $ 29.60 | $ 29.60 | |||
Total options outstanding (in shares) | 14,040 | 14,040 | |||
Total options exercisable (in shares) | 7,857 | 7,857 | |||
Cash dividend declared (in USD per share) | $ 0.30 | $ 0 | $ 0 | $ 0.30 | $ 0.28 |
Cash dividends declared | $ 47,139 | $ 44,264 | |||
Common Stock Buyback | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares purchased and retired (in shares) | 4,419 | ||||
Company purchased, cost | $ 289,536 | ||||
Remaining stock repurchase authorization amount | $ 81,102 | $ 81,102 | |||
2014 Plan | Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rate | 50.00% | ||||
2014 Plan | Tranche Two | |||||
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | ||||
Stock-based compensation expense | $ 5,878 | $ 7,088 | $ 16,396 | $ 19,527 |
Less: Deferred tax benefit | (1,311) | (2,517) | (3,556) | (6,859) |
Stock-based compensation expense, net of tax | $ 4,567 | $ 4,571 | $ 12,840 | $ 12,668 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 1,476,839 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive loss before reclassifications | (8,923) |
Amounts reclassified from accumulated other comprehensive loss | (32) |
Net current-period other comprehensive loss | (8,955) |
Ending balance | 1,630,510 |
Foreign Currency Translation Adjustments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (19,522) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive loss before reclassifications | (7,261) |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current-period other comprehensive loss | (7,261) |
Ending balance | (26,783) |
Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (386) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive loss before reclassifications | (1,662) |
Amounts reclassified from accumulated other comprehensive loss | (32) |
Net current-period other comprehensive loss | (1,694) |
Ending balance | (2,080) |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (19,908) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Ending balance | $ (28,863) |
Business Segment Information (S
Business Segment Information (Schedule of Financial Information About Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 408,682 | $ 386,018 | $ 1,219,110 | $ 1,118,333 |
Expenses | 281,320 | 271,288 | 833,686 | 782,522 |
Operating profit (loss) | 127,362 | 114,730 | 385,424 | 335,811 |
Private Banks | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 118,449 | 118,499 | 361,739 | 347,317 |
Expenses | 116,471 | 115,806 | 343,515 | 336,709 |
Operating profit (loss) | 1,978 | 2,693 | 18,224 | 10,608 |
Investment Advisors | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 102,550 | 94,318 | 301,632 | 275,302 |
Expenses | 53,287 | 50,585 | 158,792 | 147,504 |
Operating profit (loss) | 49,263 | 43,733 | 142,840 | 127,798 |
Institutional Investors | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 83,466 | 80,411 | 252,391 | 235,483 |
Expenses | 40,497 | 40,003 | 122,617 | 117,499 |
Operating profit (loss) | 42,969 | 40,408 | 129,774 | 117,984 |
Investment Managers | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 101,275 | 91,020 | 295,696 | 255,123 |
Expenses | 65,296 | 59,831 | 191,955 | 165,743 |
Operating profit (loss) | 35,979 | 31,189 | 103,741 | 89,380 |
Investments In New Businesses | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,942 | 1,770 | 7,652 | 5,108 |
Expenses | 5,769 | 5,063 | 16,807 | 15,067 |
Operating profit (loss) | $ (2,827) | $ (3,293) | $ (9,155) | $ (9,959) |
Business Segment Information (R
Business Segment Information (Reconciliation of Total Operating Profit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total operating profit from segments | $ 127,362 | $ 114,730 | $ 385,424 | $ 335,811 |
Income from operations | 112,420 | 99,237 | 339,026 | 289,981 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total operating profit from segments | 127,362 | 114,730 | 385,424 | 335,811 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Corporate overhead expenses | $ (14,942) | $ (15,493) | $ (46,398) | $ (45,830) |
Business Segment Information _2
Business Segment Information (Schedule Of Additional Information Pertaining To Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | $ 17,739 | $ 25,352 | $ 55,023 | $ 68,891 |
Depreciation | 7,255 | 6,948 | 21,515 | 20,347 |
Amortization | 12,405 | 13,745 | 36,420 | 38,332 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 17,279 | 24,975 | 53,889 | 67,970 |
Depreciation | 6,938 | 6,740 | 20,610 | 19,811 |
Amortization | 12,347 | 13,695 | 36,247 | 38,181 |
Operating Segments | Private Banks | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 7,999 | 14,671 | 27,767 | 37,000 |
Depreciation | 3,427 | 4,374 | 10,069 | 12,956 |
Amortization | 6,943 | 9,125 | 20,317 | 26,464 |
Operating Segments | Investment Advisors | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 3,927 | 5,421 | 12,471 | 13,651 |
Depreciation | 1,168 | 759 | 3,378 | 2,294 |
Amortization | 2,445 | 2,973 | 7,203 | 8,720 |
Operating Segments | Institutional Investors | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 962 | 1,260 | 2,926 | 3,157 |
Depreciation | 410 | 248 | 1,310 | 719 |
Amortization | 427 | 425 | 1,281 | 1,174 |
Operating Segments | Investment Managers | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 4,104 | 3,450 | 9,994 | 13,730 |
Depreciation | 1,796 | 1,197 | 5,411 | 3,141 |
Amortization | 2,346 | 1,132 | 7,036 | 1,623 |
Operating Segments | Investments In New Businesses | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 287 | 173 | 731 | 432 |
Depreciation | 137 | 162 | 442 | 701 |
Amortization | 186 | 40 | 410 | 200 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 460 | 377 | 1,134 | 921 |
Depreciation | 317 | 208 | 905 | 536 |
Amortization | $ 58 | $ 50 | $ 173 | $ 151 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | ||
Gross liability for unrecognized tax benefits, exclusive of interest and penalties | $ 14,342 | $ 14,480 |
Unrecognized tax benefits that would affect effective tax rate | 13,670 | 13,737 |
Interest and penalties on unrecognized benefits | 1,366 | $ 1,175 |
Estimated one-time transition tax | 10,711 | |
Payment of transition tax | 1,000 | |
Overpayment of federal taxes | 8,941 | |
Transition tax, noncurrent | 770 | |
Settlement and Lapse of Statute | ||
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits within the next twelve months | $ 1,398 |
Income Taxes (Interest And Pena
Income Taxes (Interest And Penalties) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Gross liability for unrecognized tax benefits, exclusive of interest and penalties | $ 14,342 | $ 14,480 |
Interest and penalties on unrecognized benefits | 1,366 | 1,175 |
Total gross uncertain tax positions | 15,708 | 15,655 |
Amount included in Current liabilities | 1,398 | 3,275 |
Amount included in Other long-term liabilities | $ 14,310 | $ 12,380 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate [Abstract] | ||||
Statutory rate | 21.00% | 35.00% | 21.00% | 35.00% |
State taxes, net of federal tax benefit | 2.30% | 1.70% | 2.30% | 1.70% |
Foreign tax expense and tax rate differential | (0.20%) | (1.00%) | (0.20%) | (1.00%) |
Tax benefit from stock option exercises | (1.40%) | (4.50%) | (4.80%) | (3.90%) |
Expiration of the statute of limitations | (1.00%) | (2.60%) | (0.30%) | (0.90%) |
Provision-to-return adjustment | (2.30%) | 0.00% | (0.80%) | 0.00% |
Other, net | 0.20% | (0.90%) | 0.00% | (0.70%) |
Effective income tax rate | 18.60% | 27.70% | 17.20% | 30.20% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Sep. 30, 2018Lawsuit |
Loss Contingencies [Line Items] | |
Number of lawsuits filed | 7 |
Cases with SPTC as Defendant | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed | 4 |
Claims for Violations of Louisiana Racketeering Act | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed | 2 |
Cases Remaining in Parish Of East Baton Rouge Granted Indefinite Extensions to Respond | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed | 2 |
Cases Filed in East Baton Rouge | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed | 2 |
Business Acquisition (Narrative
Business Acquisition (Narrative) (Details) - USD ($) $ in Thousands | Apr. 02, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Business Acquisition [Line Items] | |||
Net cash consideration | $ 5,794 | $ 80,131 | |
Amortization expense | $ 2,617 | $ 857 | |
Huntington Steele, LLC | |||
Business Acquisition [Line Items] | |||
Contingent liability, recognition period | 5 years | ||
Total purchase price | $ 17,914 | ||
Net cash consideration | 5,794 | ||
Cash acquired from acquisition | 125 | ||
Contingent purchase price | 12,120 | ||
Accrued liabilities | Huntington Steele, LLC | |||
Business Acquisition [Line Items] | |||
Contingent purchase price, current | 430 | ||
Other long-term liabilities | Huntington Steele, LLC | |||
Business Acquisition [Line Items] | |||
Contingent purchase price, noncurrent | $ 11,690 |
Business Acquisition (Purchase
Business Acquisition (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Apr. 02, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 64,489 | $ 52,990 | ||
Net cash consideration | $ 5,794 | $ 80,131 | ||
Huntington Steele, LLC | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 125 | |||
Goodwill | 11,499 | |||
Other assets | 15 | |||
Current liabilities | (230) | |||
Contingent consideration | (12,120) | |||
Net cash consideration | 5,794 | |||
Huntington Steele, LLC | Client relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 6,180 | |||
Estimated Useful Life | 12 years | |||
Huntington Steele, LLC | Trade names | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets | $ 450 | |||
Estimated Useful Life | 7 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jul. 03, 2017 | |
Goodwill [Line Items] | ||||
Goodwill | $ 64,489 | $ 52,990 | ||
Amortization expense | $ 2,617 | $ 857 | ||
Archway | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 52,990 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance, January 1, 2018 | $ 52,990 |
Business acquisition | 11,499 |
Balance, September 30, 2018 | 64,489 |
Investment Managers | |
Goodwill [Roll Forward] | |
Balance, January 1, 2018 | 52,990 |
Business acquisition | 0 |
Balance, September 30, 2018 | 52,990 |
Investments In New Businesses | |
Goodwill [Roll Forward] | |
Balance, January 1, 2018 | 0 |
Business acquisition | 11,499 |
Balance, September 30, 2018 | $ 11,499 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 36,760 | $ 30,130 |
Less: Accumulated amortization | (4,169) | (1,552) |
Intangible assets, net | 32,591 | 28,578 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 13,510 | $ 13,510 |
Weighted Average Estimated Useful Life | 10 years | 10 years |
Client relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 16,940 | $ 10,760 |
Weighted Average Estimated Useful Life | 13 years 10 months 13 days | 15 years |
Non-competition agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 3,470 | $ 3,470 |
Weighted Average Estimated Useful Life | 5 years | 5 years |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 2,840 | $ 2,390 |
Weighted Average Estimated Useful Life | 7 years | 7 years |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||||
Revenues | $ 408,682,000 | $ 386,018,000 | $ 1,219,110,000 | $ 1,118,333,000 | ||
Deferred contract costs | 22,104,000 | 22,104,000 | $ 0 | |||
Capitalized contract cost, amount capitalized during period | 1,400,000 | 5,483,000 | ||||
Amortization of deferred contract costs | 819,000 | 2,020,000 | ||||
Capitalized contract cost impairment | 0 | |||||
United States | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 338,413,000 | 1,009,427,000 | ||||
United Kingdom | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 42,464,000 | 127,675,000 | ||||
Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 13,625,000 | 41,547,000 | ||||
Ireland | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 13,855,000 | 38,967,000 | ||||
Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 325,000 | 1,494,000 | ||||
Investment management fees from pooled investment products | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 123,647,000 | 370,806,000 | ||||
Investment management fees from investment management agreements | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 95,760,000 | 283,555,000 | ||||
Investment operations fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 92,566,000 | 269,089,000 | ||||
Investment processing fees - PaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 45,460,000 | 135,085,000 | ||||
Investment processing fees - SaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 35,342,000 | 110,132,000 | ||||
Professional services fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 5,200,000 | 18,682,000 | ||||
Account fees and other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 10,707,000 | 31,761,000 | ||||
Private Banks | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 118,449,000 | 118,499,000 | 361,739,000 | 347,317,000 | ||
Private Banks | United States | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 73,188,000 | 226,990,000 | ||||
Private Banks | United Kingdom | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 28,647,000 | 85,177,000 | ||||
Private Banks | Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 11,730,000 | 34,847,000 | ||||
Private Banks | Ireland | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 4,884,000 | 14,725,000 | ||||
Private Banks | Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Private Banks | Investment management fees from pooled investment products | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 34,897,000 | 105,251,000 | ||||
Private Banks | Investment management fees from investment management agreements | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 197,000 | 609,000 | ||||
Private Banks | Investment operations fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 381,000 | 1,138,000 | ||||
Private Banks | Investment processing fees - PaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 44,836,000 | 133,336,000 | ||||
Private Banks | Investment processing fees - SaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 32,925,000 | 102,980,000 | ||||
Private Banks | Professional services fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 3,408,000 | 13,022,000 | ||||
Private Banks | Account fees and other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,805,000 | 5,403,000 | ||||
Investment Advisors | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 102,550,000 | 94,318,000 | 301,632,000 | 275,302,000 | ||
Investment Advisors | United States | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 102,550,000 | 301,632,000 | ||||
Investment Advisors | United Kingdom | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investment Advisors | Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investment Advisors | Ireland | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investment Advisors | Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investment Advisors | Investment management fees from pooled investment products | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 73,663,000 | 218,562,000 | ||||
Investment Advisors | Investment management fees from investment management agreements | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 24,525,000 | 70,678,000 | ||||
Investment Advisors | Investment operations fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investment Advisors | Investment processing fees - PaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investment Advisors | Investment processing fees - SaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investment Advisors | Professional services fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investment Advisors | Account fees and other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 4,362,000 | 12,392,000 | ||||
Institutional Investors | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 83,466,000 | 80,411,000 | 252,391,000 | 235,483,000 | ||
Institutional Investors | United States | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 64,601,000 | 193,417,000 | ||||
Institutional Investors | United Kingdom | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 13,817,000 | 42,498,000 | ||||
Institutional Investors | Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,895,000 | 6,700,000 | ||||
Institutional Investors | Ireland | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 2,828,000 | 8,282,000 | ||||
Institutional Investors | Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 325,000 | 1,494,000 | ||||
Institutional Investors | Investment management fees from pooled investment products | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 14,614,000 | 45,819,000 | ||||
Institutional Investors | Investment management fees from investment management agreements | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 68,318,000 | 205,202,000 | ||||
Institutional Investors | Investment operations fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Institutional Investors | Investment processing fees - PaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Institutional Investors | Investment processing fees - SaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Institutional Investors | Professional services fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Institutional Investors | Account fees and other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 534,000 | 1,370,000 | ||||
Investment Managers | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 101,275,000 | 91,020,000 | 295,696,000 | 255,123,000 | ||
Investment Managers | United States | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 95,132,000 | 279,736,000 | ||||
Investment Managers | United Kingdom | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investment Managers | Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investment Managers | Ireland | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 6,143,000 | 15,960,000 | ||||
Investment Managers | Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investment Managers | Investment management fees from pooled investment products | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 206,000 | 445,000 | ||||
Investment Managers | Investment management fees from investment management agreements | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 79,000 | 242,000 | ||||
Investment Managers | Investment operations fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 92,185,000 | 267,951,000 | ||||
Investment Managers | Investment processing fees - PaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 624,000 | 1,749,000 | ||||
Investment Managers | Investment processing fees - SaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 2,417,000 | 7,152,000 | ||||
Investment Managers | Professional services fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 1,792,000 | 5,660,000 | ||||
Investment Managers | Account fees and other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 3,972,000 | 12,497,000 | ||||
Investments In New Businesses | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 2,942,000 | $ 1,770,000 | 7,652,000 | $ 5,108,000 | ||
Investments In New Businesses | United States | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 2,942,000 | 7,652,000 | ||||
Investments In New Businesses | United Kingdom | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investments In New Businesses | Canada | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investments In New Businesses | Ireland | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investments In New Businesses | Other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investments In New Businesses | Investment management fees from pooled investment products | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 267,000 | 729,000 | ||||
Investments In New Businesses | Investment management fees from investment management agreements | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 2,641,000 | 6,824,000 | ||||
Investments In New Businesses | Investment operations fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investments In New Businesses | Investment processing fees - PaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investments In New Businesses | Investment processing fees - SaaS | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investments In New Businesses | Professional services fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 0 | 0 | ||||
Investments In New Businesses | Account fees and other | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | $ 34,000 | $ 99,000 | ||||
Retained Earnings | Accounting Standards Update 2014-09 | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Cumulative effect adjustment, before tax | $ 18,641,000 |