Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SEIC | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 153,690,105 | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 7.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 754,525 | $ 744,247 |
Restricted cash | 3,514 | 3,505 |
Receivables from investment products | 49,869 | 56,666 |
Receivables, net of allowance for doubtful accounts of $718 and $695 | 315,336 | 282,706 |
Securities owned | 30,892 | 21,526 |
Other current assets | 36,676 | 31,158 |
Total Current Assets | 1,190,812 | 1,139,808 |
Property and Equipment, net of accumulated depreciation of $338,206 and $309,955 | 145,863 | 146,428 |
Capitalized Software, net of accumulated amortization of $395,171 and $350,045 | 309,500 | 310,405 |
Investments Available for Sale | 111,901 | 87,983 |
Investments in Affiliated Funds, at fair value | 4,887 | 6,034 |
Investment in Unconsolidated Affiliates | 52,342 | 59,492 |
Goodwill | 64,489 | 52,990 |
Intangible Assets, net of accumulated amortization of $5,090 and $1,552 | 31,670 | 28,578 |
Deferred Contract Costs | 24,007 | 0 |
Deferred Income Taxes | 2,042 | 2,767 |
Other Assets, net | 34,155 | 18,884 |
Total Assets | 1,971,668 | 1,853,369 |
Current Liabilities: | ||
Accounts payable | 10,920 | 5,268 |
Accrued liabilities | 279,634 | 265,058 |
Deferred revenue | 5,154 | 4,723 |
Total Current Liabilities | 295,708 | 275,049 |
Borrowings Under Revolving Credit Facility | 0 | 30,000 |
Long-term Income Taxes Payable | 803 | 10,629 |
Deferred Income Taxes | 57,795 | 48,472 |
Other Long-term Liabilities | 24,215 | 12,380 |
Total Liabilities | 378,521 | 376,530 |
Commitments and Contingencies | ||
Shareholders' Equity: | ||
Series Preferred stock, $.05 par value, 50 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 750,000 shares authorized; 153,634 and 157,069 shares issued and outstanding | 1,536 | 1,571 |
Capital in excess of par value | 1,106,641 | 1,027,709 |
Retained earnings | 517,970 | 467,467 |
Accumulated other comprehensive loss, net | (33,000) | (19,908) |
Total Shareholders' Equity | 1,593,147 | 1,476,839 |
Total Liabilities and Equity | $ 1,971,668 | $ 1,853,369 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 718 | $ 695 |
Property and Equipment, accumulated depreciation | 338,206 | 309,955 |
Capitalized software, accumulated amortization | 395,171 | 350,045 |
Intangible assets, accumulated amortization | $ 5,090 | $ 1,552 |
Preferred stock, par value (in USD per share) | $ 0.05 | $ 0.05 |
Preferred stock, shares authorized | 50,000 | 50,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
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 | 153,634,000 | 157,069,000 |
Common stock, shares outstanding | 153,634,000 | 157,069,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Revenues | $ 1,624,167 | $ 1,526,552 | $ 1,401,545 |
Expenses: | |||
Subadvisory, distribution and other asset management costs | 180,488 | 181,509 | 173,615 |
Software royalties and other information processing costs | 32,449 | 46,792 | 49,821 |
Compensation, benefits and other personnel | 511,258 | 458,737 | 414,622 |
Stock-based compensation | 23,805 | 36,366 | 16,017 |
Consulting, outsourcing and professional fees | 200,862 | 186,357 | 166,769 |
Data processing and computer related | 84,790 | 77,615 | 64,930 |
Facilities, supplies and other costs | 70,840 | 66,646 | 68,245 |
Amortization | 48,895 | 48,275 | 45,392 |
Depreciation | 28,792 | 27,311 | 26,440 |
Total expenses | 1,182,179 | 1,129,608 | 1,025,851 |
Income from operations | 441,988 | 396,944 | 375,694 |
Net (loss) gain from investments | (325) | 1,269 | 112 |
Interest and dividend income | 13,397 | 7,057 | 4,316 |
Interest expense | (645) | (781) | (531) |
Equity in earnings of unconsolidated affiliates | 159,791 | 152,550 | 126,103 |
Gain on sale of subsidiary | 0 | 0 | 2,791 |
Income before income taxes | 614,206 | 557,039 | 508,485 |
Income taxes | 108,338 | 152,650 | 174,668 |
Net income | $ 505,868 | $ 404,389 | $ 333,817 |
Basic earnings per common share (in USD per share) | $ 3.23 | $ 2.56 | $ 2.07 |
Shares used to compute basic earnings per share | 156,579 | 158,177 | 161,350 |
Diluted earnings per common share (in USD per share) | $ 3.14 | $ 2.49 | $ 2.03 |
Shares used to compute diluted earnings per share | 161,232 | 162,269 | 164,431 |
Dividends declared per common share (in USD per share) | $ 0.63 | $ 0.58 | $ 0.54 |
Asset management, administration and distribution fees | |||
Revenues: | |||
Revenues | $ 1,270,180 | $ 1,184,157 | $ 1,075,459 |
Information processing and software servicing fees | |||
Revenues: | |||
Revenues | $ 353,987 | $ 342,395 | $ 326,086 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 505,868 | $ 404,389 | $ 333,817 |
Other comprehensive (loss) gain, net of tax: | |||
Foreign currency translation adjustments | (12,065) | 17,597 | (12,131) |
Unrealized holding (loss) gain on investments: | |||
Unrealized holding (losses) gains during the period, net of income taxes of $285, $1 and $457 | (1,088) | 190 | (918) |
Less: reclassification adjustment for losses realized in net income, net of income taxes of $(96), $(99) and $(201) | 61 | 260 | 384 |
Total other comprehensive (loss) gain, net of taxes | (13,092) | 18,047 | (12,665) |
Comprehensive income | $ 492,776 | $ 422,436 | $ 321,152 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized holding gains (losses) during the period, income taxes | $ 285 | $ 1 | $ 457 |
Reclassification adjustment for losses realized in net income, income taxes | $ (96) | $ (99) | $ (201) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital In Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect upon adoption of ASUs | $ 0 | ||||
Cumulative effect upon adoption of ASUs | Accounting Standards Update 2014-09 | $ 0 | ||||
Cumulative effect upon adoption of ASUs | Accounting Standards Update 2016-09 | 0 | ||||
Beginning balance at Dec. 31, 2015 | $ 1,637 | 910,513 | 402,860 | $ (25,290) | |
Beginning balance, shares at Dec. 31, 2015 | 163,733 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Purchase and retirement of common stock | $ (66) | (28,306) | (266,002) | ||
Purchase and retirement of common stock, shares | (6,600) | ||||
Issuance of common stock under the employee stock purchase plan | $ 1 | 3,357 | |||
Issuance of common stock under the employee stock purchase plan, shares | 88 | ||||
Issuance of common stock upon exercise of stock options | $ 18 | 44,896 | |||
Issuance of common stock upon exercise of stock options, shares | 1,809 | 1,810 | |||
Stock-based compensation | $ (16,017) | 16,017 | |||
Tax benefit on stock options exercised | 8,984 | ||||
Net income | 333,817 | 333,817 | |||
Dividends declared ($0.63, $0.58 and $0.54 per share) | (86,657) | (86,657) | |||
Other comprehensive (loss) gain | (12,665) | (12,665) | |||
Ending balance at Dec. 31, 2016 | $ 1,303,114 | $ 1,590 | 955,461 | 384,018 | (37,955) |
Ending balance, shares at Dec. 31, 2016 | 159,031 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect upon adoption of ASUs | 2,582 | ||||
Cumulative effect upon adoption of ASUs | Accounting Standards Update 2014-09 | 0 | ||||
Cumulative effect upon adoption of ASUs | Accounting Standards Update 2016-09 | (1,669) | ||||
Purchase and retirement of common stock | $ (44) | (20,243) | (227,827) | ||
Purchase and retirement of common stock, shares | (4,403) | ||||
Issuance of common stock under the employee stock purchase plan | $ 1 | 3,280 | |||
Issuance of common stock under the employee stock purchase plan, shares | 71 | ||||
Issuance of common stock upon exercise of stock options | $ 24 | 50,263 | |||
Issuance of common stock upon exercise of stock options, shares | 2,370 | 2,370 | |||
Stock-based compensation | $ (36,366) | 36,366 | |||
Tax benefit on stock options exercised | 0 | ||||
Net income | 404,389 | 404,389 | |||
Dividends declared ($0.63, $0.58 and $0.54 per share) | (91,444) | (91,444) | |||
Other comprehensive (loss) gain | 18,047 | 18,047 | |||
Ending balance at Dec. 31, 2017 | $ 1,476,839 | $ 1,571 | 1,027,709 | 467,467 | (19,908) |
Ending balance, shares at Dec. 31, 2017 | 157,069 | 157,069 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect upon adoption of ASUs | 0 | ||||
Cumulative effect upon adoption of ASUs | Accounting Standards Update 2014-09 | 14,402 | ||||
Cumulative effect upon adoption of ASUs | Accounting Standards Update 2016-09 | 0 | ||||
Purchase and retirement of common stock | $ (67) | (32,823) | (371,867) | ||
Purchase and retirement of common stock, shares | (6,744) | ||||
Issuance of common stock under the employee stock purchase plan | $ 0 | 4,170 | |||
Issuance of common stock under the employee stock purchase plan, shares | 77 | ||||
Issuance of common stock upon exercise of stock options | $ 32 | 83,780 | |||
Issuance of common stock upon exercise of stock options, shares | 3,232 | 3,232 | |||
Stock-based compensation | $ (23,805) | 23,805 | |||
Tax benefit on stock options exercised | 0 | ||||
Net income | 505,868 | 505,868 | |||
Dividends declared ($0.63, $0.58 and $0.54 per share) | (97,900) | (97,900) | |||
Other comprehensive (loss) gain | (13,092) | (13,092) | |||
Ending balance at Dec. 31, 2018 | $ 1,593,147 | $ 1,536 | $ 1,106,641 | $ 517,970 | $ (33,000) |
Ending balance, shares at Dec. 31, 2018 | 153,634 | 153,634 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends declared per common share (in USD per share) | $ 0.63 | $ 0.58 | $ 0.54 |
Retained Earnings | |||
Dividends declared per common share (in USD per share) | $ 0.63000 | $ 0.58000 | $ 0.54000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 505,868 | $ 404,389 | $ 333,817 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 28,792 | 27,311 | 26,440 |
Amortization | 48,895 | 48,275 | 45,392 |
Equity in earnings of unconsolidated affiliates | (159,791) | (152,550) | (126,103) |
Distributions received from unconsolidated affiliate | 166,941 | 143,517 | 125,224 |
Stock-based compensation | 23,805 | 36,366 | 16,017 |
Provision for losses on receivables | 23 | 172 | (126) |
Deferred income tax expense | 5,998 | (21,046) | 4,794 |
Net loss (gain) from investments | 325 | (1,269) | (112) |
Change in long-term taxes payable | (9,826) | 10,629 | 0 |
Change in other long-term liabilities | 145 | (2,265) | 3,248 |
Change in other assets | (4,785) | (1,489) | (1,917) |
Contract costs capitalized, net | (5,366) | 0 | 0 |
Gain from sale of SEI AK | 0 | 0 | (2,791) |
Tax benefit on stock options exercised | 0 | 0 | 8,984 |
Other | (294) | (2,186) | 390 |
Change in current assets and liabilities: | |||
Decrease (increase) in Receivables from investment products | 6,797 | 5,095 | (13,663) |
Decrease (increase) in Receivables | (32,652) | (52,726) | (4,807) |
Decrease (increase) in Other current assets | (5,518) | (3,583) | (1,368) |
Increase (decrease) in Accounts payable | 5,652 | (909) | 1,455 |
Increase (decrease) in Accrued liabilities | 13,079 | 20,992 | 18,851 |
Increase (decrease) in Deferred revenue | 313 | 1,180 | 495 |
Total adjustments | 82,533 | 55,514 | 100,403 |
Net cash provided by operating activities | 588,401 | 459,903 | 434,220 |
Cash flows from investing activities: | |||
Additions to property and equipment | (29,095) | (25,525) | (31,397) |
Additions to capitalized software | (44,221) | (61,043) | (50,392) |
Purchases of marketable securities | (203,460) | (69,525) | (73,193) |
Prepayments and maturities of marketable securities | 167,876 | 65,830 | 54,141 |
Sales of marketable securities | 0 | 0 | 15,152 |
Cash paid for acquisition, net of cash acquired | (5,794) | (80,234) | 0 |
Receipt of contingent payment from sale of SEI AK | 0 | 0 | 2,791 |
Other investing activities | (8,676) | (1,805) | 1,313 |
Net cash used in investing activities | (123,370) | (172,302) | (81,585) |
Cash flows from financing activities: | |||
Repayments under revolving credit facility | (30,000) | (10,000) | 0 |
Borrowings under revolving credit facility | 0 | 40,000 | 0 |
Purchase and retirement of common stock | (407,384) | (248,339) | (292,258) |
Proceeds from issuance of common stock | 87,982 | 53,568 | 48,272 |
Payment of dividends | (94,318) | (88,862) | (84,686) |
Net cash used in financing activities | (443,720) | (253,633) | (328,672) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (11,024) | 14,583 | (9,923) |
Net increase in cash, cash equivalents and restricted cash | 10,287 | 48,551 | 14,040 |
Cash, cash equivalents and restricted cash, beginning of year | 747,752 | 699,201 | 685,161 |
Cash, cash equivalents and restricted cash, end of year | 758,039 | 747,752 | 699,201 |
Interest paid | 806 | 699 | 531 |
Income taxes paid | 110,203 | 165,049 | 157,255 |
Non-cash financing activities | |||
Dividends declared but not paid | $ 50,761 | $ 47,179 | $ 44,596 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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 other various 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 offer investment managers support for traditional investment products such as mutual funds, collective investment trusts, exchange-traded funds, and institutional and separate accounts, by providing outsourcing services including fund and investment accounting, administration, reconciliation, investor servicing and client reporting. These platforms also provide support to managers focused on alternative investments who manage hedge funds, funds of hedge funds, private equity funds and real estate funds, across registered, partnership and separate account structures domiciled in the United States and overseas. Revenues from investment operations platforms are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and entities in which it holds a controlling financial interest. The Company determines whether it has a controlling financial interest either by its decision-making ability through voting interests or by the extent of the Company’s participation in the economic risks and rewards of the entity through variable interests. The Company’s principal subsidiaries are SEI Investments Distribution Co. (SIDCO), SEI Investments Management Corporation (SIMC), SEI Private Trust Company (SPTC), SEI Trust Company (STC), SEI Global Services, Inc. (SGSI) and SEI Investments (Europe) Limited (SIEL). All intercompany accounts and transactions have been eliminated. The Company accounts for investments in unconsolidated entities that are 20 percent to 50 percent owned or are 20 percent or less owned and have the ability to exercise significant influence over the operating and financial policies of the entity under the equity method of accounting. Under this method of accounting, the Company’s interest in the net assets of unconsolidated entities is reflected in Investment in unconsolidated affiliates on the accompanying Consolidated Balance Sheet and its interest in the earnings or losses of unconsolidated entities is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statement of Operations. Any investments in entities not consolidated or accounted for under the equity method are accounted for under the cost method of accounting. Variable Interest Entities 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 $26,229 , $27,434 and $41,227 in fees during 2018 , 2017 and 2016 , respectively. Management’s Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company 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 on January 1, 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. The Company's revenues are based on contractual arrangements. 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 2018, 2017 and 2016 were $16,680 , $14,623 and $18,409 , 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 amortized using the straight-line method over the expected client life, which ranges from 6 to 15 years. 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 associated with the capitalization of contract costs of $18,641 as of January 1, 2018. 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. Cash and Cash Equivalents 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 periods were retrospectively adjusted to conform to the current period’s presentation. There was no material impact to net cash flows for 2017 or 2016 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. Cash and cash equivalents include $315,840 and $401,292 at December 31, 2018 and 2017 , respectively, primarily invested in SEI-sponsored open-ended money market mutual funds. The SEI-sponsored mutual funds are considered Level 1 assets. Restricted Cash Restricted cash includes $3,000 at December 31, 2018 and 2017 segregated for regulatory purposes related to trade-execution services conducted by SIEL. Restricted cash also includes $514 and $505 at December 31, 2018 and 2017 , respectively, segregated in special reserve accounts for the benefit of SIDCO customers in accordance with certain rules established by the Securities and Exchange Commission for broker-dealers. Allowances for Doubtful Accounts The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. Concentration of Credit Risk Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash equivalents and trade receivables. Cash equivalents are principally invested in short-term money market funds or placed with major banks and high-credit qualified financial institutions. Cash deposits maintained with institutions are in excess of federally insured limits. Concentrations of credit risk with respect to the Company's receivables are limited due to the large number of clients and their dispersion across geographic areas. No single group or customer represents greater than ten percent of total accounts receivable. Property and Equipment Property and Equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. Construction in progress includes the cost of construction and other direct costs attributable to the construction. When property and equipment are retired or disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives using the straight line method for financial statement purposes. No provision for depreciation is made for construction in progress until such time as the relevant assets are completed and put into service. The Company uses other depreciation methods, generally accelerated, for tax purposes where appropriate. Buildings and building improvements are depreciated over 25 to 39 years . Equipment, purchased software and furniture and fixtures have useful lives ranging from 3 to 5 years . Amortization of leasehold improvements is computed using the straight line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. Marketable Securities The classification of investments in marketable securities is determined at the time of purchase and reevaluated at each balance sheet date. Debt and equity securities classified as available-for-sale are reported at fair value as determined by the most recently traded price of each security at the balance sheet date. 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. Unrealized gains and losses associated with the Company's available for sale debt securities, net of income taxes, are reported as a separate component of comprehensive income. SIDCO, the Company’s broker-dealer subsidiary, reports changes in fair value of marketable securities through current period earnings due to specialized accounting practices related to investments by broker-dealers. The Company records its investments in funds sponsored by LSV on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these securities are recognized in current period earnings. The specific identification method is used to compute the realized gains and losses on all of the Company’s marketable securities (See Note 5 ). The Company evaluates the realizable value of its marketable securities on a quarterly basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. Some of the factors considered in determining other-than-temporary impairment for equity securities include, but are not limited to, significant or prolonged declines in the fair value of the investments, the Company’s ability and intent to retain the investment for a period sufficient to allow the value to recover, and the financial condition of the investment. Some of the factors considered in determining other-than-temporary impairment for debt securities include, but are not limited to, the intent of management to sell the security, the likelihood that the Company will be required to sell the security before recovering its cost, and management’s expectation to recover the entire amortized cost basis of the security even if there is no intent to sell the security. The Company did no t recognize any impairment charges related to its marketable securities in 2018 , 2017 or 2016 . Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used by the Company to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities without adjustment. The Company’s Level 1 assets primarily include investments in mutual funds sponsored by SEI that are quoted daily. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 financial assets consist of Government National Mortgage Association (GNMA) mortgage-backed securities, Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes. The investments in GNMA mortgage-backed securities were purchased for the sole purpose of satisfying applicable regulatory requirements imposed on our wholly-owned limited purpose federal thrift subsidiary, SPTC. The investments in FHLB and other U.S. government agency short-term notes were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment by management. The Company had no Level 3 financial assets at December 31, 2018 or 2017 that were required to be measured at fair value on a recurring basis. The Company's Level 3 financial liabilities at December 31, 2018 consist entirely of an estimated contingent consideration resulting from the Company's acquisition of Huntington Steele, LLC (See Note 14 ). 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. The fair value of an asset or liability may include inputs from more than one level in the fair value hierarchy. The lowest level of significant inputs used to value the asset or liability determines which level the asset or liability is classified in its entirety. Transfers between levels of the fair value hierarchy are reported at fair value as of the beginning of the period in which the transfers occur. See Note 4 for information on related disclosures regarding fair value measurements. Capitalized Software Costs incurred for the development of internal use software to be offered in a hosting arrangement is capitalized during the development stage of the software application. These costs include direct external and internal costs to design the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary and post-implementation stages of the software application are expensed as incurred. Costs associated with significant enhancements to a software application are capitalized while costs incurred to maintain existing software applications are expensed as incurred. The capitalization of software development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life. Amortization of capitalized software development costs begins when the product is ready for its intended use. Capitalized software development costs are amortized on a product-by-product basis using the straight-line method over the estimated economic life of the product or enhancement. The Company capitalized $44,221 , $61,043 and $50,392 of software development costs during 2018 , 2017 and 2016 , respectively. The Company's capitalized software development costs primarily relate to the further development of the SEI Wealth Platform SM (SWP). The Company capitalized $43,376 , $51,353 and $39,785 of software development costs for significant enhancements to SWP during 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , the net book value of SWP was $288,666 . The net book value includes $42,238 of capitalized software development costs in-progress associated with future releases. Management continually reassesses the estimated useful life of SWP and any change in management’s estimate could result in the remaining amortization expense to be accelerated or spread out over a longer period. During the fourth quarter 2017, the Company adjusted the remaining useful life of certain components and functionality of SWP that were placed into service during the past several years. The adjustment resulted in a decrease to the Company's amortization expense of $4,347 and an increase to the Company's net income of $3,156 , or $0.02 diluted earnings per share, in 2017. As of December 31, 2018, SWP has a weighted average remaining life of 8.5 years . Amortization expense for SWP was $39,917 , $46,505 and $45,047 in 2018 , 2017 and 2016 , respectively, and is included in Amortization expense on the accompanying Consolidated Statements of Operations. The Company also capitalized $845 , $9,690 and $10,607 of software development costs during 2018 , 2017 and 2016 , 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 December 31, 2018 was $20,834 . Amortization expense for the application was $5,209 during 2018 and is included in Amortization expense on the accompanying Consolidated Statements of Operations. The Company currently expects to recognize amortization expense related to all capitalized software development costs placed into service as of December 31, 2018 each year from 2019 through 2023 as follows: 2019 $ 46,608 2020 46,608 2021 46,330 2022 31,817 2023 13,145 The Company evaluates the carrying value of capitalized software development costs when circumstances indicate the carrying value may not be recoverable. The review of capitalized software development costs for impairment requires significant assumptions about operating strategies, underlying technologies utilized, and external market factors. External market factors include, but are not limited to, expected levels of competition, barriers to entry by potential competitors, stability in the target market and governmental regulations. The Company did no t recognize any impairment charges related to its capitalized software development costs in 2018 , 2017 or 2016 . Business Combinations The Company accounts for business combinations in accordance with Accounting Standards Codification Topic 805, Business Combinations (ASC 805). ASC 805 establishes principles and requirements for recognizing the total consideration transferred, assets acquired and liabilities assumed in a business combination. ASC 805 also provides guidance for recognizing and measuring goodwill acquired in a business combination and requires the acquirer to disclose information needed to evaluate and understand the financial impact of the business combination. The Company recognizes assets and liabilities acquired at their estimated fair values. Management uses judgment to identify the acquired assets and liabilities assumed; estimate the fair value of these assets and liabilities; estimate the useful life of the assets; and assess the appropriate method for recognizing depreciation or amortization expense over the estimated useful life of the assets. Goodwill and Other Intangible Assets The Company reviews long-lived assets and identifiable definite-lived intangible assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. For purposes of recognizing and measuring an impairment loss, a long-lived asset is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent. Identifiable definite-lived intangible assets on the Company’s Consolidated Balance Sheet are amortized on a straight-line basis according to their estimated useful lives. Goodwill is not amortized but is reviewed for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Current guidance require that a two-step, fair value based test be performed to assess goodwill for impairment. In the first step, the fair value of each reporting unit is compared with its carrying value, including goodwill. If the fair value exceeds the carrying value, goodwill is not impaired and no further testing is performed. The second step is performed if the carrying value exceeds the fair value. The second step requires an allocation of fair value to the individual assets and liabilities using a purchase price allocation in order to determine the implied fair value of goodwill. If the implied fair value of goodwill is less than the carrying amount, an impairment loss is recognized. The Company did no t recognize any impairment charges related to its goodwill or other intangible assets in 2018 or 2017. Income Taxes The Company applies the asset and liability approach to account for income taxes whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Foreign Currency Translation The assets and liabilities and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. Assets and liabilities have been translated into U.S. dollars using the rates of exchange at the balance sheet dates. The results of operations have been translated into U.S. dollars at average exchange rates prevailing during the period. The resulting translation gain and loss adjustments are recorded as a separate component of comprehensive income. Transaction gains and losses from exchange rate fluctuations are included in the results of operations in the periods in which they occur. There were no material gains or losses from exchange rate fluctuations in 2018 , 2017 or 2016 . Earnings Per Common Share Basic earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the combination of the weighted average number of common shares outstanding and the dilutive potential common shares, such as stock options, outstanding during the period. The calculations of basic and diluted earnings per share for 2018 , 2017 and 2016 are: 2018 2017 2016 Net income $ 505,868 $ 404,389 $ 333,817 Shares used to compute basic earnings per common share 156,579,000 158,177,000 161,350,000 Dilutive effect of stock options 4,653,000 4,092,000 3,081,000 Shares used to compute diluted earnings per common share 161,232,000 162,269,000 164,431,000 Basic earnings per common share $ 3.23 $ 2.56 $ 2.07 Diluted earnings per common share $ 3.14 $ 2.49 $ 2.03 Employee stock options to purchase approximately 6,224,000 , 5,196,000 and 10,632,000 shares of common stock, with an average exercise price per share of $53.60 , $45.49 and $35.02 , were outstanding during 2018 , 2017 and 2016 , respectively, but not included in the computation of diluted earnings per common share because either the performance conditions have not been satisfied or would have been satisfied if the reporting date was the end of the contingency period or the option’s exercise price was greater than the average market price of the Company’s common stock and the effect on diluted earnings per common share would have been anti-dilutive (See Note 7 ). Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. The amount of stock-based compensation expense that is recognized in a given period is dependent upon management’s estimate of when the vesting targets are expected to be achieved. If this estimate proves to be inaccurate, the remaining amount of stock-based compensation expense could be accelerated, spread out over a longer period, or reversed (See Note 7 ). The Company adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) during 2017. As required by ASU 2016-09, excess tax benefits recognized on stock-based compensation expense are reflected in the accompanying Consolidated Statements of Operations as a component of the provision for income taxes effective January 1, 2017 (See Note 11 ). 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 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliates | Investment in Unconsolidated Affiliates LSV Asset Management The Company has an investment in the general partnership LSV Asset Management (LSV), a registered investment advisor that provides investment advisory services primarily to institutions, including pension plans and investment companies. LSV is currently an investment sub-advisor for a limited number of SEI-sponsored mutual funds. As of December 31, 2018 , the Company's total partnership interest in LSV was approximately 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 affiliates on the accompanying Consolidated Balance Sheets and its interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statements of Operations. At December 31, 2018 , the Company’s total investment in LSV was $52,342 . The Company’s proportionate share in the earnings of LSV was $159,791 , $152,550 and $126,103 in 2018 , 2017 and 2016 , respectively. The Company receives partnership distributions related to the earnings of LSV on a quarterly basis. As such, the Company considers these distribution payments as returns on investment rather than returns of the Company's original investment in LSV and has therefore classified the associated cash inflows as an operating activity on the Consolidated Statements of Cash Flows. The Company received partnership distribution payments from LSV of $166,941 , $143,517 and $125,224 in 2018 , 2017 and 2016 , respectively. These tables contain condensed financial information of LSV: Condensed Statement of Operations Year ended December 31, 2018 2017 2016 Revenues $ 517,203 $ 491,872 $ 399,462 Net income $ 410,846 $ 392,141 $ 323,381 Condensed Balance Sheets December 31, 2018 2017 Current assets $ 138,083 $ 155,239 Non-current assets 1,165 1,407 Total assets $ 139,248 $ 156,646 Current liabilities $ 47,874 $ 46,486 Partners’ capital 91,374 110,160 Total liabilities and partners’ capital $ 139,248 $ 156,646 |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 12 Months Ended |
Dec. 31, 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: 2018 2017 Trade receivables $ 76,362 $ 76,760 Fees earned, not billed 226,001 194,331 Other receivables 13,691 12,310 316,054 283,401 Less: Allowance for doubtful accounts (718 ) (695 ) Receivables, net $ 315,336 $ 282,706 Fees earned, not billed represents receivables from contracts from customers 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 an extended valuation process. Billings to these clients occur once the asset valuation processes are completed. Property and Equipment Property and Equipment on the accompanying Consolidated Balance Sheets consists of: 2018 2017 Buildings $ 160,796 $ 153,961 Equipment 126,954 115,546 Land 10,772 10,030 Purchased software 139,245 134,610 Furniture and fixtures 18,103 18,114 Leasehold improvements 18,959 18,017 Construction in progress 9,240 6,105 484,069 456,383 Less: Accumulated depreciation (338,206 ) (309,955 ) Property and Equipment, net $ 145,863 $ 146,428 Depreciation expense related to property and equipment for 2018 , 2017 and 2016 was $28,792 , $27,311 and $26,440 , respectively. Other Assets Other assets consist of long-term prepaid expenses, deposits, other investments at cost and various other assets. Amortization expense for certain other assets for 2018 , 2017 and 2016 was $231 , $218 and $345 , respectively. Accrued Liabilities Accrued Liabilities on the accompanying Consolidated Balance Sheets consist of: 2018 2017 Accrued employee compensation $ 97,603 $ 88,960 Accrued consulting, outsourcing and professional fees 31,000 29,658 Accrued sub-advisory, distribution and other asset management fees 42,583 42,365 Accrued dividend payable 50,761 47,179 Other accrued liabilities 57,687 56,896 Accrued liabilities $ 279,634 $ 265,058 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 consists 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 Company had no Level 3 financial assets at December 31, 2018 or 2017 that were required to be measured at fair value on a recurring basis. The Company's Level 3 financial liabilities at December 31, 2018 consist entirely of the estimated contingent consideration of $12,120 resulting from an acquisition (See Note 14 ). 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 2018 . Valuation of GNMA and Other U.S. Government Agency Securities All of the Company's investments in GNMA, FHLB and other U.S. government agency securities are held in accounts at well-established financial institutions. The Company's selection of a financial institution for the purpose of purchasing securities considered a number of various factors including, but not limited to, securities pricing policies and procedures utilized by that financial institution. Each financial institution utilizes the services of independent pricing vendors. These vendors utilize evaluated and industry accepted pricing models that vary by asset class and incorporate available trade, bid and other market information to determine the fair value of the securities. The market inputs, listed in approximate order of priority, include: benchmark yields, reported trade, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company evaluated the information regarding the pricing methodologies and processes utilized by the independent pricing vendors during the selection process of the financial institution. The Company analyzed this information for the purpose of classifying the securities into the appropriate level within the fair value hierarchy and to ensure that each pricing model for each asset class provided the fair value of those specific securities in accordance with generally accepted accounting principles. The Company continually monitors the price of each security for any unanticipated deviations from the previously quoted price. In the event of any significant unanticipated deviations in a security's price, additional analysis is conducted. The Company's investments in GNMA, FHLB and other U.S. government agency securities have been recorded at the prices provided by the independent pricing vendor without adjustment. The fair value of certain financial assets and liabilities of the Company was determined using the following inputs: Fair Value Measurements at Reporting Date Using December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets Equity available-for-sale securities $ 10,218 $ 10,218 $ — Fixed-income available-for-sale securities 101,683 — 101,683 Fixed-income securities owned 30,892 — 30,892 Investment funds sponsored by LSV (1) 4,887 $ 147,680 $ 10,218 $ 132,575 Fair Value Measurements at Reporting Date Using December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets 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 (1) The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the accompanying Consolidated Balance Sheets (See Note 5 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2018 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Investments Available For Sale Investments available for sale classified as non-current assets consist of: At December 31, 2018 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 7,446 $ — $ (788 ) $ 6,658 Equities and other mutual funds 3,434 126 — 3,560 Debt securities 103,518 — (1,835 ) 101,683 $ 114,398 $ 126 $ (2,623 ) $ 111,901 At December 31, 2017 Cost 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 Net unrealized holding losses at December 31, 2018 and 2017 of the Company's available-for-sale debt securities were $1,413 (net of income tax benefit of $422 ) 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 $1,065 and gross realized losses of $1,686 from available-for-sale securities during 2018 . In 2017 , there were gross realized gains of $529 and gross realized losses of $888 from available-for-sale securities. There were gross realized gains of $284 and gross realized losses of $869 from available-for-sale securities during 2016 . Gains and losses from available-for-sale securities, including amounts reclassified from accumulated comprehensive loss, are reflected in Net (loss) gain from investments on the accompanying Consolidated Statements of Operations. Investments in Affiliated Funds The Company has an investment related to the startup of investment funds sponsored by LSV. The Company records this investment on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these funds are recognized in Net (loss) gain from investments on the accompanying Consolidated Statements of Operations. The investment primarily consists of U.S. dollar denominated funds that invest in equity securities of Canadian, Australian and Japanese companies. The underlying securities held by the funds are translated into U.S. dollars within the funds. The funds had a fair value of $4,887 and $6,034 at December 31, 2018 and 2017 , respectively. The Company recognized losses of $1,147 and gains of $1,176 and $819 from the change in fair value of the funds during 2018 , 2017 and 2016 , respectively. 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 $30,892 and $21,526 at December 31, 2018 and 2017 , respectively. There were no material net gains or losses from the change in fair value of the securities during 2018 , 2017 and 2016 |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2018 | |
Line of Credit Facility [Abstract] | |
Lines of Credit | Line of Credit The Company has a five-year $300,000 Credit Agreement (the Credit Facility) with Wells Fargo Bank, National Association (Wells Fargo) and a syndicate of other lenders. The Credit Facility is scheduled to expire in June 2021, at which time any aggregate principal amount of loans outstanding becomes payable in full. Any borrowings made under the Credit Facility will accrue interest at rates that, at the Company's option, are based on a base rate (the Base Rate) plus a premium that can range from 0.25 percent to 1.00 percent or the London InterBank Offered Rate (LIBOR) plus a premium that can range from 1.25 percent to 2.00 percent depending on the Company’s Leverage Ratio (a ratio of consolidated indebtedness to consolidated EBITDA for the four preceding fiscal quarters, all as defined in the related agreement). The Base Rate is defined as the highest of a) the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 0.50 percent , b) the prime commercial lending rate of Wells Fargo, c) the applicable LIBOR plus 1.00 percent , or d) 0 percent . The Company also pays quarterly commitment fees based on the unused portion of the Credit Facility. The quarterly fees for the Credit Facility can range from 0.15 percent of the amount of the unused portion to 0.30 percent , depending on the Company’s Leverage Ratio. Certain wholly-owned subsidiaries of the Company have guaranteed the obligations of the Company under the agreement. The aggregate amount of the Credit Facility may be increased by an additional $100,000 under certain conditions set forth in the agreement. The Company may issue up to $15,000 in letters of credit under the terms of the Credit Facility. The Company pays a periodic commission fee of 1.250 percent plus a fronting fee of 0.175 percent of the aggregate face amount of the outstanding letters of credit issued under the Credit Facility. 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 the acquisition of Archway (See Note 14 ). The Company made principal payments of $30,000 and $10,000 during 2018 and 2017 , respectively, to fully repay the outstanding balance of the Credit Facility. As of December 31, 2018 , the Company had outstanding letters of credit of $13,813 under the Credit Facility. These letters of credit were issued primarily for the expansion of the Company's headquarters and are scheduled to expire in 2019. The amount of the Credit Facility that is available for general corporate purposes as of December 31, 2018 was $286,187 . The Company was in compliance with all covenants of the Credit Facility during 2018 . The Company considers the book value of long-term debt related to the borrowings through the Credit Facility to be representative of its fair value. The Company incurred $645 , $781 and $531 in interest charges and commitment fees relating to its line of credit during 2018 , 2017 and 2016 , respectively, which are reflected in Interest expense on the accompanying Consolidated Statements of Operations. The weighted average interest rate applied to the outstanding balance of the Credit Facility during 2018 was 2.93 percent |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Stock-Based Compensation The Company's active equity compensation plan, the 2014 Omnibus Equity Compensation Plan (the 2014 Plan), is the successor plan to the 2007 Equity Compensation Plan (the 2007 Plan) which was merged with and into the 2014 Plan in May 2014. The 2014 Plan provides for the grant of stock options, stock units, stock awards, stock appreciation rights, dividend equivalents and other stock-based awards. Outstanding grants under the 2007 Plan will continue according to the terms in effect before the plan merger, but the outstanding shares will be issued or transferred under the 2014 Plan. Permitted grantees under the 2014 Plan include employees, non-employee directors and consultants who perform services for the Company. The plan is administered by the Compensation Committee of the Board of Directors of the Company. The Company has only non-qualified stock options outstanding under the 2014 Plan. All outstanding stock options have performance-based vesting provisions that tie the vesting of stock options to the Company’s financial performance. The Company’s stock options vest at a rate of 50 percent when a specified diluted earnings per share target is achieved, and the remaining 50 percent when a second, higher-specified diluted earnings per share target is achieved. Options do not vest due to the passage of time but as a result of achievement of the financial vesting targets. Options granted in December 2017 and thereafter 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 exclude the impact of stock-based compensation and are established at time of grant. 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 uses the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair value of stock options on the date of grant using an option-pricing model is affected by the price of the Company’s common stock as well as other variables. These variables include expected stock price volatility over the term of the awards, actual and projected employee stock exercise behaviors, risk-free interest rate and expected dividends. The Company primarily uses historical data to estimate the variables used in the option-pricing model except expected volatility. The Company uses a combination of historical and implied volatility. The weighted average fair value of the Company’s stock options granted during 2018 , 2017 and 2016 were $13.04 , $16.78 and $12.43 , respectively, using the following assumptions: 2018 2017 2016 Expected term (in years) 6.34 6.00 6.00 Expected volatility 25.27 % 22.58 % 25.44 % Expected dividend yield 1.35 % 0.82 % 1.10 % Risk-free interest rate 2.75 % 2.29 % 2.18 % The Company recognized stock-based compensation expense in its Consolidated Financial Statements in 2018 , 2017 and 2016 as follows: 2018 2017 2016 Stock-based compensation expense $ 23,805 $ 36,366 $ 16,017 Less: Deferred tax benefit (5,078 ) (7,891 ) (5,612 ) Stock-based compensation expense, net of tax $ 18,727 $ 28,475 $ 10,405 During 2018, 2017 and 2016, the Company revised its estimates of when some vesting targets are expected to be achieved. The changes in management’s estimates during 2018 and 2017 resulted in an increase of $1,909 and $11,206 in stock-based compensation expense in 2018 and 2017, respectively. The change in management’s estimate during 2016 was not material. As of December 31, 2018 , there was approximately 6,454,000 unvested employee stock options with an unrecognized compensation cost of $68,470 that the Company expects will vest and be expensed through 2023 with a weighted average period of 2.2 years . This table presents certain information relating to the Company’s stock option plans for 2018 , 2017 and 2016 : Number of Shares Weighted Avg. Price Balance as of December 31, 2015 19,237,000 $ 28.71 Granted 2,310,000 49.57 Exercised (1,809,000 ) 24.82 Expired or canceled (1,669,000 ) 30.86 Balance as of December 31, 2016 18,069,000 $ 31.57 Granted 2,057,000 69.87 Exercised (2,370,000 ) 21.22 Expired or canceled (1,044,000 ) 33.42 Balance as of December 31, 2017 16,712,000 $ 37.63 Granted 2,468,000 49.94 Exercised (3,232,000 ) 25.93 Expired or canceled (135,000 ) 49.58 Balance as of December 31, 2018 15,813,000 $ 41.84 Exercisable as of December 31, 2018 9,359,000 $ 32.89 Available for future grant as of December 31, 2018 21,775,000 As of December 31, 2017 and 2016 , there were 10,624,000 and 6,692,000 shares exercisable, respectively. The expiration dates for options outstanding at December 31, 2018 range from December 15, 2019 to December 11, 2028 with a weighted average remaining contractual life of 6.3 years . Upon exercise of stock options, the Company will issue new shares of its common shares. The Company does not hold any shares in treasury. The total intrinsic value of options exercised during 2018 and 2017 was $139,087 and $83,628 , respectively. The total options exercisable as of December 31, 2018 had an intrinsic value of $138,706 . The total options outstanding as of December 31, 2018 had an intrinsic value of $143,939 . The total intrinsic value for options outstanding and options exercisable is calculated as the difference between the market value of the Company’s common stock as of December 31, 2018 and the exercise price of the shares. The market value of the Company’s common stock as of December 31, 2018 was $46.20 as reported by the Nasdaq Stock Market, LLC. This table summarizes information relating to all options outstanding and exercisable at December 31, 2018 : Options Outstanding at December 31, 2018 Options Exercisable at December 31, 2018 Range of Exercise Prices (Per Share) Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Life (Years) Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Life (Years) $ 14.62 - 21.05 1,996,000 $ 16.63 2.09 1,996,000 $ 16.63 2.09 22.45 - 23.86 2,379,000 23.13 3.04 2,379,000 23.13 3.04 27.03 - 40.64 3,332,000 37.10 5.54 2,390,000 35.70 5.36 45.99 - 53.16 4,268,000 49.01 9.06 908,000 49.61 8.00 53.34 - 71.12 3,838,000 62.69 8.19 1,686,000 53.36 7.02 15,813,000 9,359,000 Employee Stock Purchase Plan The Company has an employee stock purchase plan that provides for offerings of common stock to eligible employees at a price equal to 85 percent of the fair market value of the stock at the end of the stock purchase period, as defined. The Company has reserved 15,600,000 shares for issuance under this plan. At December 31, 2018 , 12,038,000 cumulative shares have been issued. There were no material costs incurred by the Company related to the employee stock purchase plan in 2018 , 2017 and 2016 . Common Stock Buyback The Board of Directors, under multiple authorizations, has authorized the purchase of the Company’s common stock on the open market or through private transactions. As of December 31, 2018 , the Company had approximately $215,879 of authorization remaining for the purchase of common stock. The following table provides the total number of shares repurchased and the related total costs in 2018 , 2017 and 2016 : Year Total Number of Shares Repurchased Total Cost 2018 6,744,000 $ 404,759 2017 4,403,000 248,114 2016 6,600,000 294,374 The Company immediately retires its common stock when purchased. Upon retirement, the Company reduces Capital in excess of par value for the average capital per share outstanding and the remainder is charged against Retained earnings. If the Company reduces its Retained earnings to zero, any subsequent purchases of common stock will be charged entirely to Capital in excess of par value. Rights Agreement The Company’s Board of Directors declared a dividend distribution pursuant to a Rights Agreement (the Rights Agreement) which became effective on January 6, 2009. The Rights Agreement was not renewed and expired on January 6, 2019. The purpose of the Rights Agreement was to deter coercive or unfair takeover tactics and to prevent a person or group from acquiring control of the Company without offering a fair price to all shareholders. Under the Rights Agreement, all common shareholders would have received one Right for each common share outstanding. Each Right entitled the registered holder to purchase from the Company a unit consisting of one twenty-thousandths of a share of Series A Junior Participating Preferred Shares, $0.05 par value per share, or a combination of securities and assets of equivalent value, at a purchase price of $150.00 per unit, subject to adjustment. Cash Dividends 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 . On December 11, 2018 , the Board of Directors declared a cash dividend of $0.33 per share on the Company’s common stock, which was paid on January 8, 2019 , to shareholders of record on December 27, 2018 . The cash dividends declared in 2018 , 2017 and 2016 were $97,900 , $91,444 and $86,657 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) consists of net income and other gains and losses affecting shareholders’ equity that are excluded from net income. Other comprehensive income (loss) includes unrealized gains and losses on available for sale securities and foreign currency translation adjustments. The Company presents other comprehensive income (loss) in its Consolidated Statements of Comprehensive Income. Components of Accumulated other comprehensive income (loss), net of tax, consisted of: Foreign Currency Translation Adjustments Unrealized Holding Gains (Losses) on Investments Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2016 $ (24,988 ) $ (302 ) $ (25,290 ) Other comprehensive loss before reclassifications (12,131 ) (918 ) (13,049 ) Amounts reclassified from accumulated other comprehensive loss — 384 384 Net current-period other comprehensive loss (12,131 ) (534 ) (12,665 ) Balance, December 31, 2016 $ (37,119 ) $ (836 ) $ (37,955 ) Other comprehensive gain before reclassifications 17,597 190 17,787 Amounts reclassified from accumulated other comprehensive loss — 260 260 Net current-period other comprehensive gain 17,597 450 18,047 Balance, December 31, 2017 $ (19,522 ) $ (386 ) $ (19,908 ) Other comprehensive loss before reclassifications (12,065 ) (1,088 ) (13,153 ) Amounts reclassified from accumulated other comprehensive loss — 61 61 Net current-period other comprehensive loss (12,065 ) (1,027 ) (13,092 ) Balance, December 31, 2018 $ (31,587 ) $ (1,413 ) $ (33,000 ) |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company has a tax-qualified defined contribution plan (the Plan). The Plan provides retirement benefits, including provisions for early retirement and disability benefits, as well as a tax-deferred savings feature. After satisfying certain requirements, participants are vested in employer contributions at the time the contributions are made. All Company contributions are discretionary and are made from available profits. The Company contributed $12,362 , $10,929 and $9,665 to the Plan in 2018 , 2017 and 2016 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company leases software, facilities, and data processing equipment under non-cancelable operating leases, some which contain escalation clauses for increased taxes and operating expenses. The Company has entered into maintenance agreements primarily for its data processing equipment. Rent expense, primarily related to user licenses for software, was $34,679 , $32,619 and $28,016 in 2018 , 2017 and 2016 , respectively. The aggregate noncancellable minimum commitments at December 31, 2018 are: 2019 $ 10,322 2020 8,476 2021 7,855 2022 7,616 2023 and thereafter 25,573 $ 59,842 Stanford Trust Company Litigation 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 remaining 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 (“ Ahders Complaint”), alleging claims essentially the same as those in Lillie . In January 2017, the Judicial Panel on Multidistrict Litigation transferred the Ahders proceeding to the Northern District of Texas and the Stanford MDL. During February 2017, SEI filed its response to the Ahders 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. In both cases, as a result of the proceedings in the Northern District of Texas, only the plaintiffs’ secondary liability claims under Section 714(B) of the Louisiana Securities Law remain. Limited discovery and motions practice have occurred, including SEI and SPTC’s filing of a dispositive summary judgment motion in the Lillie proceeding. On January 31, 2019, the Judicial Panel on Multidistrict Litigation remanded the Lillie and Ahders proceedings to the Middle District of Louisiana. No material activity has taken place since remand. Another case, 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. Two additional cases remain in the Parish of East Baton Rouge. Plaintiffs filed petitions in 2010 and have granted SEI and SPTC indefinite extensions to respond. No material activity has taken place since. In 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 subject matter jurisdiction under the federal Securities Litigation Uniform Standards Act (SLUSA). The matters were removed to the United States District Court for the Northern District of Texas and consolidated. The court then 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 matters were 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. SEI Capital Accumulation Plan Litigation On September 28, 2018, a class action complaint was filed in the United States District Court for the Eastern District of Pennsylvania by Gordon Stevens, individually and as the representative of similarly situated persons, and on behalf of the SEI Capital Accumulation Plan (the “Plan”) naming the Company and its affiliated and/or related entities SEI Investments Management Corporation, SEI Capital Accumulation Plan Design Committee, SEI Capital Accumulation Plan Investment Committee, SEI Capital Accumulation Plan Administration Committee, and John Does 1-30 as defendants (the “Stevens Complaint”). The Stevens Compliant seeks unspecified damages for defendants’ breach of fiduciary duties under ERISA with respect to selecting and monitoring the Plan’s investment options and by retaining affiliated investment products in the Plan. All parties to the matter have agreed to participate in non-binding mediation with the goal of resolving the matter in an efficient and satisfactory manner, while avoiding protracted litigation costs. The court granted a motion to stay the litigation pending the outcome of mediation, which is scheduled for May 7, 2019, in Atlanta, Georgia. While the outcome of this litigation remains uncertain, the defendants believe that they have valid defenses to plaintiffs’ claims and intend to defend the allegations contained in the Stevens Complaint vigorously. Because of uncertainty in the make-up of the purported class named in the Stevens Complaint, the specific theories of liability that may survive a motion for summary judgment or other dispositive motion, the lack of specificity or 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 matters set forth in the Stevens Complaint. Other Matters |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The federal and state and foreign income tax provision is summarized as follows: Year Ended December 31, 2018 2017 2016 Current Federal $ 82,493 $ 154,776 $ 158,411 State 13,709 11,645 10,500 Foreign 8,405 8,002 5,137 104,607 174,423 174,048 Deferred Federal 2,550 (26,350 ) 788 State 1,166 1,378 (168 ) Foreign 15 3,199 — 3,731 (21,773 ) 620 Total income taxes $ 108,338 $ 152,650 $ 174,668 Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ materially from the amount accrued. The examination and the resolution process may last longer than one year. The components of Income before income taxes are summarized as follows: Year Ended December 31, 2018 2017 2016 Domestic $ 579,622 $ 523,044 $ 481,760 Foreign 34,584 33,995 26,725 $ 614,206 $ 557,039 $ 508,485 The Company's foreign income is primarily earned in Canada and the Republic of Ireland. The effective income tax rate differs from the federal income tax statutory rate due to the following: Year Ended December 31, 2018 2017 2016 Statutory rate 21.0 % 35.0 % 35.0 % State taxes, net of federal tax benefit 1.9 1.3 1.3 Foreign tax expense and tax rate differential (0.1 ) (1.1 ) (0.8 ) Tax benefit from stock option exercises (3.8 ) (3.9 ) — Enactment of the Tax Cuts and Jobs Act: Re-measurement of deferred taxes — (4.9 ) — One-time transition tax on repatriation of foreign earnings and withholding tax (0.1 ) 2.6 — Research and development tax credit (0.8 ) (0.9 ) (0.8 ) Domestic Production Activities Deduction — (0.5 ) (0.6 ) Foreign Derived Intangible Income Deduction (0.2 ) — — Other, net (0.3 ) (0.2 ) 0.2 17.6 % 27.4 % 34.3 % The Company's effective income tax rate in 2018 included the new 21.0 percent corporate tax rate under the Tax Cut and Jobs Act (the Tax Act). The Tax Act also provided for a Foreign Derived Intangible Income (FDII) deduction. For 2018, the Company estimated a federal FDII benefit of $1,206 . The Tax Act also repealed the Section 199 Deduction for businesses that perform domestic manufacturing and certain other production activities which had an unfavorable impact on the Company's tax rate in 2018. The Company's effective income tax rate in 2017 included the adoption of ASU 2016-09 and the estimated impact of the Tax Act. As required by ASU 2016-09, the Company no longer records excess tax benefits from stock option exercises as an increase to additional paid in capital, but records such excess tax benefits as a reduction of income tax expense in the reporting period in which the exercises occur. The impact to the Company's effective tax rate in 2017 from the Tax Act was a combination of a $27,153 tax benefit from the re-measurement of the Company's estimated net deferred tax liability as of December 31, 2017 based upon the new 21.0 percent corporate tax rate offset by expense of $14,743 from the preliminary estimate of the one-time transition tax relating to the impact of the deemed repatriation and withholding tax of the Company's previously undistributed foreign earnings. The net impact to the Company's tax rate in 2017 from the Tax Act was a net tax benefit of $12,410 , or $0.08 diluted earnings per share. The favorable impact to the Company's effective income tax rate in 2018 from the Tax Act related to the finalization of the estimated one-time transition tax. This adjustment to the one-time transition tax represents what the Company believes is its final liability under the changes from 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 $8,908 from an overpayment of federal taxes against the transition tax payable during 2018. The remaining amount payable related to the transition tax of $803 is included in Long-term income taxes payable on the accompanying Consolidated Balance Sheet. Deferred income taxes for 2018 and 2017 reflect the impact of temporary differences between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. Significant components of our deferred tax assets and liabilities at December 31, 2018 and 2017 are as follows: 2018 2017 Deferred Tax Assets: Stock-based compensation expense $ 24,125 $ 24,725 Foreign and state net operating loss carryforward and FTC 74,358 71,236 Basis differences in investments 4,118 4,191 Federal benefit of state tax deduction for uncertain tax positions 1,882 1,918 Revenue and expense recognized in different periods for financial reporting and income tax purposes 1,657 2,631 Other assets 1,049 273 Total deferred income tax assets 107,189 104,974 Less: valuation allowance (72,316 ) (68,469 ) Net deferred income tax assets $ 34,873 $ 36,505 Deferred Tax Liabilities: Capitalized software currently deductible for tax purposes, net of amortization $ (71,067 ) $ (70,575 ) Difference in financial reporting and income tax depreciation methods (6,545 ) (3,182 ) Difference between book and tax basis of other assets (4,429 ) (3,549 ) Goodwill and other intangibles (1,823 ) (1,001 ) Foreign Dividend Withholding Tax (312 ) (3,199 ) Capitalized contract costs (5,490 ) — Other liabilities (960 ) (704 ) Total deferred income tax liabilities $ (90,626 ) $ (82,210 ) Net deferred income tax liabilities $ (55,753 ) $ (45,705 ) The valuation allowances against deferred tax assets at December 31, 2018 and 2017 are related to state net operating losses from certain domestic subsidiaries, foreign net operating losses from certain foreign subsidiaries and The Tax Act restriction of use of the foreign tax credit placed by The Tax Act. Certain state and foreign tax statutes significantly limit the utilization of net operating losses for domestic and foreign subsidiaries. Furthermore, these net operating losses cannot be used to offset the net income of other subsidiaries. The Company recognizes uncertain tax positions in accordance with the applicable accounting guidance and adjusts these liabilities when management’s judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities. The Company’s total unrecognized tax benefit, not including interest and penalties, as of December 31, 2018 was $14,367 , of which $13,774 would affect the effective tax rate if the Company were to recognize the tax benefit. The gross amount of uncertain tax liability of $3,131 is expected to be paid within one year is netted against the current payable account while the remaining amount of $12,525 is included in Other long-term liabilities on the accompanying Consolidated Balance Sheets. During the year ended December 31, 2018 , the Company recognized $2,621 of previously unrecognized tax benefits relating to the lapse of the statute of limitation. The Company files a consolidated federal income tax return and separate income tax returns with various states. Certain subsidiaries of the Company file tax returns in foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examination for years before 2015 and is no longer subject to state, local or foreign income tax examinations by authorities for years before 2014 . A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: 2018 2017 2016 Balance as of January 1 $ 14,480 $ 17,287 $ 14,517 Tax positions related to current year: Gross additions 2,446 3,180 3,756 Tax positions related to prior years: Gross additions 340 211 1,762 Settlements (278 ) (352 ) (378 ) Lapses on statute of limitations (2,621 ) (5,846 ) (2,370 ) Balance as of December 31 $ 14,367 $ 14,480 $ 17,287 The above reconciliation of the gross unrecognized tax benefit will differ from the amount which would affect the effective tax rate because of the recognition of the federal and state tax benefits. The Company classifies all interest and penalties as income tax expense. The Company has recorded $1,289 , $1,175 and $1,227 in liabilities for tax-related interest and penalties in 2018 , 2017 and 2016 , respectively. The Company estimates it will recognize $3,131 of unrecognized tax benefits within the next twelve months due to lapses on the statute of limitation. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 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, traditional and non-traditional investment managers worldwide and family offices in the United States; and Investments in New Businesses – focuses on providing investment management solutions 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. In 2018 , 2017 and 2016 , no single customer accounted for more than ten percent of revenues in any business segment. The following tables highlight certain financial information about each of the Company’s business segments for the years ended December 31, 2018 , 2017 and 2016 : Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2018 Revenues $ 483,097 $ 399,089 $ 333,299 $ 398,076 $ 10,606 $ 1,624,167 Expenses 457,894 212,439 163,536 259,693 22,971 1,116,533 Operating profit (loss) $ 25,203 $ 186,650 $ 169,763 $ 138,383 $ (12,365 ) $ 507,634 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2017 Revenues $ 474,272 $ 373,473 $ 322,457 $ 349,444 $ 6,906 $ 1,526,552 Expenses 455,119 201,833 161,640 226,504 20,678 1,065,774 Operating profit (loss) $ 19,153 $ 171,640 $ 160,817 $ 122,940 $ (13,772 ) $ 460,778 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2016 Revenues $ 457,886 $ 330,677 $ 312,584 $ 294,390 $ 6,008 $ 1,401,545 Expenses 421,188 180,140 153,117 191,127 20,962 966,534 Operating profit (loss) $ 36,698 $ 150,537 $ 159,467 $ 103,263 $ (14,954 ) $ 435,011 Gain on sale of subsidiary 2,791 — — — — 2,791 Total profit (loss) $ 39,489 $ 150,537 $ 159,467 $ 103,263 $ (14,954 ) $ 437,802 A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 is as follows: Year Ended December 31, 2018 2017 2016 Total operating profit from segments above $ 507,634 $ 460,778 $ 435,011 Corporate overhead expenses (65,646 ) (63,834 ) (59,317 ) Income from operations $ 441,988 $ 396,944 $ 375,694 The following tables provide additional information for the years ended December 31, 2018 , 2017 and 2016 pertaining to our business segments: Capital Expenditures (1) Depreciation Year Ended December 31, 2018 2017 2016 2018 2017 2016 Private Banks $ 36,763 $ 47,526 $ 45,940 $ 13,773 $ 16,479 $ 13,222 Investment Advisors 16,572 17,450 17,610 4,607 3,364 3,880 Institutional Investors 3,863 4,020 4,319 1,672 1,121 1,367 Investment Managers 13,639 15,863 11,209 6,988 4,698 4,877 Investments in New Businesses 972 546 726 547 826 2,197 Total from business segments $ 71,809 $ 85,405 $ 79,804 $ 27,587 $ 26,488 $ 25,543 Corporate Overhead 1,507 1,163 1,985 1,205 823 897 $ 73,316 $ 86,568 $ 81,789 $ 28,792 $ 27,311 $ 26,440 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization Year Ended December 31, 2018 2017 2016 Private Banks $ 27,312 $ 32,696 $ 31,675 Investment Advisors 9,668 10,930 10,458 Institutional Investors 1,707 1,599 1,674 Investment Managers 9,382 2,593 1,092 Investments in New Businesses 595 239 146 Total from business segments $ 48,664 $ 48,057 $ 45,045 Corporate Overhead 231 218 347 $ 48,895 $ 48,275 $ 45,392 Total Assets 2018 2017 Private Banks $ 558,451 $ 523,214 Investment Advisors 143,042 139,697 Institutional Investors 109,081 117,286 Investment Managers 318,342 278,540 Investments in New Businesses 33,142 19,269 Total from business segments $ 1,162,058 $ 1,078,006 Corporate Overhead (2) 809,610 775,363 $ 1,971,668 $ 1,853,369 (2) Unallocated assets primarily consist of cash and cash equivalents, marketable securities, and certain other shared services assets. The following table presents revenues based on the location of the use of the products or services: For the Year Ended December 31, 2018 2017 2016 United States $ 1,348,130 $ 1,298,381 $ 1,191,640 International operations 276,037 228,171 209,905 $ 1,624,167 $ 1,526,552 $ 1,401,545 The following table presents assets based on their location: 2018 2017 United States $ 1,612,202 $ 1,471,260 International operations 359,466 382,109 $ 1,971,668 $ 1,853,369 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company, either by itself or through its wholly-owned subsidiaries, serves as the sponsor, administrator, investment advisor, distributor and shareholder servicer for SEI-sponsored investment products. These investment products are offered to clients of the Company and its subsidiaries. Fees earned by the Company for the related services are recognized pursuant to the provisions of investment advisory, fund administration, distribution, and shareholder services agreements directly with the investment products. These fees totaled $462,101 , $453,438 and $431,318 in 2018 , 2017 and 2016 , respectively. The Company also serves as an introducing broker-dealer for securities transactions of SEI-sponsored investment products. The Company recognized $2,001 , $1,216 and $561 in commissions during 2018 , 2017 and 2016 , respectively. Both of these fees are reflected in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions Huntington Steele 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 . 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 for the Huntington Steele acquisition 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 are included in the Investments in New Businesses segment and are reflected in the Company's Consolidated Statement of Operations since the completion of the acquisition on April 2, 2018. Any goodwill generated for income tax purposes from the acquisition is fully deductible (See Note 15 ). Pro forma information has not been presented because the effect of the Huntington Steele acquisition is not material to the Company's consolidated financial results. Archway On July 3, 2017, the Company acquired all ownership interests of Archway Technology Partners, LLC, Archway Finance & Operations, Inc. and Keystone Capital Holdings, LLC (collectively, Archway), a provider of operating technologies and services to the family office industry, from Keystone International Holdings, Inc. With this acquisition, the Company expands its position in the single and multi-family office services market by diversifying its technology and operating solutions. Under the acquisition method of accounting, the total purchase price was allocated to Archway's net tangible and intangible assets based upon their estimated fair values as of July 3, 2017. The total purchase price for Archway was $81,635 in cash consideration with up to an additional $8,000 payable to the seller as a contingent purchase price with respect to two one-year periods ended December 31, 2017 and 2018 depending upon whether Archway achieved specified financial measures during such periods. The fair value of the contingent consideration was estimated to be $4,800 on the acquisition date. Archway did not attain the specified financial measure for the periods ended December 31, 2017 or December 31, 2018. As a result, as of December 31, 2017, the Company reversed the value allocated to the contingent consideration established at the acquisition date. Additionally, the Company recognized a liability for post-acquisition obligations to the members of Archway. The net adjustment of $3,800 was recorded as a reduction in expense and is reflected in Facilities, supplies and other costs on the accompanying Consolidated Statement of Operations in 2017. At December 31, 2018, the Company reversed the liability for the post-acquisition obligations to the members of Archway as the specified financial measure was not achieved. The Company acquired $1,401 in cash during the acquisition, resulting in $80,234 net cash paid for Archway. According to the terms of the purchase agreement, a portion of the purchase price was placed into escrow to indemnify the Company of any pre-acquisition damages. As of December 31, 2018, the balance available in escrow was $8,000 . During January 2019, the entire amount placed into escrow was released to the seller. As of January 31, 2019, the Company has no further obligation related to the acquisition of Archway. The purchase price allocation for the Archway acquisition is as follows: Estimated Fair Value Estimated Useful Life Current assets, net of current liabilities $ 2,539 Property and equipment 776 Goodwill 52,990 Identifiable intangible assets Acquired technology 13,510 10.0 years Client relationships 10,760 15.0 years Non-competition agreements 3,470 5.0 years Trade names 2,390 7.0 years Contingent consideration (4,800 ) Total purchase price allocation $ 81,635 The results of operations of Archway and any adjustments related to the acquisition are included in the Investment Managers business segment and are reflected in the Company's Consolidated Statement of Operations since the completion of the acquisition on July 3, 2017. All tangible and intangible assets resulting from the Archway transaction have been allocated to the Investment Managers business segment. Any goodwill generated for income tax purposes from the acquisition is fully deductible (See Note 15 ). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets 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, 2017 $ — $ — $ — Acquisition of Archway 52,990 — 52,990 Balance, December 31, 2017 $ 52,990 $ — $ 52,990 Acquisition of Huntington Steele — 11,499 11,499 Balance, December 31, 2018 $ 52,990 $ 11,499 $ 64,489 In April 2018, the Company acquired all ownership interests of Huntington Steele (See Note 14 ). The excess purchase price over the estimated value of the net tangible and identifiable intangible assets was allocated to goodwill. The total amount of goodwill from this transaction amounted to $11,499 and is included on the accompanying Consolidated Balance Sheet. In July 2017, the Company acquired all ownership interests of Archway (See Note 14 ). The excess purchase price over the estimated 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: December 31, 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 (5,090 ) (1,552 ) Intangible assets, net $ 31,670 $ 28,578 The Company recognized $3,538 and $1,552 of amortization expense related to intangible assets during 2018 and 2017 , respectively. The Company currently expects to recognize amortization expense related to intangible assets as of December 31, 2018 each year from 2019 through 2023 as follows: 2019 $ 3,683 2020 3,683 2021 3,683 2022 3,336 2023 2,989 |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 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 2018 : Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total Major Product Lines: For the Year Ended December 31, 2018 Investment management fees from pooled investment products $ 138,616 $ 288,030 $ 59,739 $ 928 $ 1,017 $ 488,330 Investment management fees from investment management agreements 793 94,526 271,600 331 9,457 376,707 Investment operations fees 1,517 — — 360,382 — 361,899 Investment processing fees - PaaS 182,068 — — 2,519 — 184,587 Investment processing fees - SaaS 136,222 — — 9,598 — 145,820 Professional services fees 16,643 — — 7,280 — 23,923 Account fees and other 7,238 16,533 1,960 17,038 132 42,901 Total revenues $ 483,097 $ 399,089 $ 333,299 $ 398,076 $ 10,606 $ 1,624,167 Primary Geographic Markets: United States $ 304,762 $ 399,089 $ 257,080 $ 376,593 $ 10,606 $ 1,348,130 United Kingdom 112,980 — 55,471 — — 168,451 Canada 45,941 — 8,526 — — 54,467 Ireland 19,414 — 10,419 21,483 — 51,316 Other — — 1,803 — — 1,803 Total revenues $ 483,097 $ 399,089 $ 333,299 $ 398,076 $ 10,606 $ 1,624,167 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. The Company does not disclose the value of unsatisfied performance obligations as the majority of its contracts relate to either: contracts with an original term of one year or less; contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed; or contracts that are based on the value of assets under management or administration. Deferred Contract Costs Deferred contract costs, which primarily consist of deferred sales commissions, were $24,007 as of December 31, 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 $8,122 during 2018 . Amortization expense related to deferred contract costs were $2,756 during 2018 and is included in Compensation, benefits and other personnel on the accompanying Consolidated Statements of Operations. There was no impairment loss in relation to deferred contract costs during 2018 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) For the Three Months Ended 2018 March 31 June 30 September 30 December 31 Revenues $ 405,598 $ 404,830 $ 408,682 $ 405,057 Income before income taxes $ 158,758 $ 154,254 $ 157,595 $ 143,599 Net income $ 139,838 $ 121,677 $ 128,319 $ 116,034 Basic earnings per share $ 0.89 $ 0.77 $ 0.82 $ 0.75 Diluted earnings per share $ 0.86 $ 0.75 $ 0.80 $ 0.73 Effective income tax rate 11.9 % 21.1 % 18.6 % 19.2 % For the Three Months Ended 2017 March 31 June 30 September 30 December 31(1) Revenues $ 359,984 $ 372,331 $ 386,018 $ 408,219 Income before income taxes $ 128,660 $ 135,158 $ 140,769 $ 152,452 Net income $ 88,737 $ 91,769 $ 101,739 $ 122,144 Basic earnings per share $ 0.56 $ 0.58 $ 0.64 $ 0.78 Diluted earnings per share (2) $ 0.55 $ 0.57 $ 0.63 $ 0.75 Effective income tax rate 31.0 % 32.1 % 27.7 % 19.9 % (1) During the fourth quarter 2017, the Company recognized an estimated net tax benefit of $12,410 , or $0.08 diluted earnings per share, resulting from the impacts of the enactment of the Tax Act in December 2017 (See Note 11 ). |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts And Reserves | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | Schedule II - Valuation and Qualifying Accounts and Reserves SEI Investments Company (In thousands) and Subsidiaries Year Ended December 31, Additions Description Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts (Deductions) Balance at End of Year Allowance for doubtful accounts: 2018 $ 695 $ 23 $ — $ — $ 718 2017 523 172 — — 695 2016 649 — — (126 ) 523 Deferred income tax valuation allowance: 2018 $ 68,469 $ — $ 3,847 $ — $ 72,316 2017 (1) 17,922 — 50,547 — 68,469 2016 14,548 — 3,374 — 17,922 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and entities in which it holds a controlling financial interest. The Company determines whether it has a controlling financial interest either by its decision-making ability through voting interests or by the extent of the Company’s participation in the economic risks and rewards of the entity through variable interests. The Company’s principal subsidiaries are SEI Investments Distribution Co. (SIDCO), SEI Investments Management Corporation (SIMC), SEI Private Trust Company (SPTC), SEI Trust Company (STC), SEI Global Services, Inc. (SGSI) and SEI Investments (Europe) Limited (SIEL). All intercompany accounts and transactions have been eliminated. The Company accounts for investments in unconsolidated entities that are 20 percent to 50 percent owned or are 20 percent |
Variable Interest Entities | Variable Interest Entities 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 $26,229 , $27,434 and $41,227 in fees during 2018 , 2017 and 2016 , respectively. |
Management's Use of Estimates | Management’s Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company 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 on January 1, 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. The Company's revenues are based on contractual arrangements. 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 2018, 2017 and 2016 were $16,680 , $14,623 and $18,409 , 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 amortized using the straight-line method over the expected client life, which ranges from 6 to 15 years. 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 associated with the capitalization of contract costs of $18,641 as of January 1, 2018. For the Company's other sales compensation payments, the Company either applies the practical |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. |
Allowance for Doubtful Accounts | Allowances for Doubtful AccountsThe Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. |
Concentration of Credit Risk | Concentration of Credit RiskFinancial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash equivalents and trade receivables. Cash equivalents are principally invested in short-term money market funds or placed with major banks and high-credit qualified financial institutions. Cash deposits maintained with institutions are in excess of federally insured limits. Concentrations of credit risk with respect to the Company's receivables are limited due to the large number of clients and their dispersion across geographic areas. No single group or customer represents greater than ten percent of total accounts receivable. |
Property and Equipment | Property and Equipment Property and Equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. Construction in progress includes the cost of construction and other direct costs attributable to the construction. When property and equipment are retired or disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives using the straight line method for financial statement purposes. No provision for depreciation is made for construction in progress until such time as the relevant assets are completed and put into service. The Company uses other depreciation methods, generally accelerated, for tax purposes where appropriate. Buildings and building improvements are depreciated over 25 to 39 years . Equipment, purchased software and furniture and fixtures have useful lives ranging from 3 to 5 years |
Marketable Securities | Marketable Securities The classification of investments in marketable securities is determined at the time of purchase and reevaluated at each balance sheet date. Debt and equity securities classified as available-for-sale are reported at fair value as determined by the most recently traded price of each security at the balance sheet date. 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. Unrealized gains and losses associated with the Company's available for sale debt securities, net of income taxes, are reported as a separate component of comprehensive income. SIDCO, the Company’s broker-dealer subsidiary, reports changes in fair value of marketable securities through current period earnings due to specialized accounting practices related to investments by broker-dealers. The Company records its investments in funds sponsored by LSV on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these securities are recognized in current period earnings. The specific identification method is used to compute the realized gains and losses on all of the Company’s marketable securities (See Note 5 ). |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used by the Company to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities without adjustment. The Company’s Level 1 assets primarily include investments in mutual funds sponsored by SEI that are quoted daily. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 financial assets consist of Government National Mortgage Association (GNMA) mortgage-backed securities, Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes. The investments in GNMA mortgage-backed securities were purchased for the sole purpose of satisfying applicable regulatory requirements imposed on our wholly-owned limited purpose federal thrift subsidiary, SPTC. The investments in FHLB and other U.S. government agency short-term notes were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment by management. The Company had no Level 3 financial assets at December 31, 2018 or 2017 that were required to be measured at fair value on a recurring basis. The Company's Level 3 financial liabilities at December 31, 2018 consist entirely of an estimated contingent consideration resulting from the Company's acquisition of Huntington Steele, LLC (See Note 14 ). 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. |
Capitalized Software | Capitalized Software Costs incurred for the development of internal use software to be offered in a hosting arrangement is capitalized during the development stage of the software application. These costs include direct external and internal costs to design the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary and post-implementation stages of the software application are expensed as incurred. Costs associated with significant enhancements to a software application are capitalized while costs incurred to maintain existing software applications are expensed as incurred. The capitalization of software development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life. Amortization of capitalized software development costs begins when the product is ready for its intended use. Capitalized software development costs are amortized on a product-by-product basis using the straight-line method over the estimated economic life of the product or enhancement. The Company capitalized $44,221 , $61,043 and $50,392 of software development costs during 2018 , 2017 and 2016 , respectively. The Company's capitalized software development costs primarily relate to the further development of the SEI Wealth Platform SM (SWP). The Company capitalized $43,376 , $51,353 and $39,785 of software development costs for significant enhancements to SWP during 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , the net book value of SWP was $288,666 . The net book value includes $42,238 of capitalized software development costs in-progress associated with future releases. Management continually reassesses the estimated useful life of SWP and any change in management’s estimate could result in the remaining amortization expense to be accelerated or spread out over a longer period. During the fourth quarter 2017, the Company adjusted the remaining useful life of certain components and functionality of SWP that were placed into service during the past several years. The adjustment resulted in a decrease to the Company's amortization expense of $4,347 and an increase to the Company's net income of $3,156 , or $0.02 diluted earnings per share, in 2017. As of December 31, 2018, SWP has a weighted average remaining life of 8.5 years . Amortization expense for SWP was $39,917 , $46,505 and $45,047 in 2018 , 2017 and 2016 , respectively, and is included in Amortization expense on the accompanying Consolidated Statements of Operations. The Company also capitalized $845 , $9,690 and $10,607 of software development costs during 2018 , 2017 and 2016 , 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 December 31, 2018 was $20,834 . Amortization expense for the application was $5,209 during 2018 and is included in Amortization expense on the accompanying Consolidated Statements of Operations. The Company currently expects to recognize amortization expense related to all capitalized software development costs placed into service as of December 31, 2018 each year from 2019 through 2023 as follows: 2019 $ 46,608 2020 46,608 2021 46,330 2022 31,817 2023 13,145 |
Business Combinations | Business CombinationsThe Company accounts for business combinations in accordance with Accounting Standards Codification Topic 805, Business Combinations (ASC 805). ASC 805 establishes principles and requirements for recognizing the total consideration transferred, assets acquired and liabilities assumed in a business combination. ASC 805 also provides guidance for recognizing and measuring goodwill acquired in a business combination and requires the acquirer to disclose information needed to evaluate and understand the financial impact of the business combination. The Company recognizes assets and liabilities acquired at their estimated fair values. Management uses judgment to identify the acquired assets and liabilities assumed; estimate the fair value of these assets and liabilities; estimate the useful life of the assets; and assess the appropriate method for recognizing depreciation or amortization expense over the estimated useful life of the assets. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company reviews long-lived assets and identifiable definite-lived intangible assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. For purposes of recognizing and measuring an impairment loss, a long-lived asset is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent. Identifiable definite-lived intangible assets on the Company’s Consolidated Balance Sheet are amortized on a straight-line basis according to their estimated useful lives. Goodwill is not amortized but is reviewed for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Current guidance require that a two-step, fair value based test be performed to assess goodwill for impairment. In the first step, the fair value of each reporting unit is compared with its carrying value, including goodwill. If the |
Income Taxes | Income TaxesThe Company applies the asset and liability approach to account for income taxes whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ materially from the amount accrued. The examination and the resolution process may last longer than one year. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. Assets and liabilities have been translated into U.S. dollars using the rates of exchange at the balance sheet dates. The results of operations have been translated into U.S. dollars at average exchange rates prevailing during the period. The resulting translation gain and loss adjustments are recorded as a separate component of comprehensive income. |
Earnings Per Common Share | Earnings Per Common ShareBasic earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the combination of the weighted average number of common shares outstanding and the dilutive potential common shares, such as stock options, outstanding during the period. |
Stock-based Compensation | Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. The amount of stock-based compensation expense that is recognized in a given period is dependent upon management’s estimate of when the vesting targets are expected to be achieved. If this estimate proves to be inaccurate, the remaining amount of stock-based compensation expense could be accelerated, spread out over a longer period, or reversed (See Note 7 ). The Company adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) during 2017. As required by ASU 2016-09, excess tax benefits recognized on stock-based compensation expense are reflected in the accompanying Consolidated Statements of Operations as a component of the provision for income taxes effective January 1, 2017 (See Note 11 ). |
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 adopted the new standard on January 1, 2019 and used 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 elected 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. The Company did not elect the hindsight practical expedient in determining its lease terms. 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. The Company is finalizing its assessment of the adoption of ASU 2016-02. The Company expects the most significant effects will 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 finalizing the right-of-use asset and lease liability which is expected to be between $50,000 and $60,000 . 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 adoption of ASU 2018-07 will not have a material impact on the Company's 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. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities (ASU 2018-17). The new standard changes how entities evaluate decision-making fees under the variable interest entity guidance. ASU 2018-17 is effective for the Company beginning in the first quarter of 2020. The Company is currently evaluating the impact of adopting ASU 2018-17 on its consolidated financial statements and related disclosures. |
Reclassifications | ReclassificationsCertain prior year amounts have been reclassified to conform to current year presentation. |
Investments in Unconsolidated Affiliates | The Company accounts for its interest in LSV using the equity method because of its less than 50 percent |
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. |
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. |
Accumulated Other Comprehensive Income (Loss) | Other comprehensive income (loss) consists of net income and other gains and losses affecting shareholders’ equity that are excluded from net income. Other comprehensive income (loss) includes unrealized gains and losses on available for sale securities and foreign currency translation adjustments. The Company presents other comprehensive income (loss) in its Consolidated Statements of Comprehensive Income. |
Uncertain Tax Positions | The Company recognizes uncertain tax positions in accordance with the applicable accounting guidance and adjusts these liabilities when management’s judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Amortization Expense Related to the SEI Wealth Platform | The Company currently expects to recognize amortization expense related to all capitalized software development costs placed into service as of December 31, 2018 each year from 2019 through 2023 as follows: 2019 $ 46,608 2020 46,608 2021 46,330 2022 31,817 2023 13,145 |
Calculation Of Basic And Diluted Earnings Per Share | The calculations of basic and diluted earnings per share for 2018 , 2017 and 2016 are: 2018 2017 2016 Net income $ 505,868 $ 404,389 $ 333,817 Shares used to compute basic earnings per common share 156,579,000 158,177,000 161,350,000 Dilutive effect of stock options 4,653,000 4,092,000 3,081,000 Shares used to compute diluted earnings per common share 161,232,000 162,269,000 164,431,000 Basic earnings per common share $ 3.23 $ 2.56 $ 2.07 Diluted earnings per common share $ 3.14 $ 2.49 $ 2.03 |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | These tables contain condensed financial information of LSV: Condensed Statement of Operations Year ended December 31, 2018 2017 2016 Revenues $ 517,203 $ 491,872 $ 399,462 Net income $ 410,846 $ 392,141 $ 323,381 Condensed Balance Sheets December 31, 2018 2017 Current assets $ 138,083 $ 155,239 Non-current assets 1,165 1,407 Total assets $ 139,248 $ 156,646 Current liabilities $ 47,874 $ 46,486 Partners’ capital 91,374 110,160 Total liabilities and partners’ capital $ 139,248 $ 156,646 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Items Included in Consolidated Statement of Financial Condition [Abstract] | |
Receivables | Receivables on the accompanying Consolidated Balance Sheets consist of: 2018 2017 Trade receivables $ 76,362 $ 76,760 Fees earned, not billed 226,001 194,331 Other receivables 13,691 12,310 316,054 283,401 Less: Allowance for doubtful accounts (718 ) (695 ) Receivables, net $ 315,336 $ 282,706 |
Property And Equipment | Property and Equipment on the accompanying Consolidated Balance Sheets consists of: 2018 2017 Buildings $ 160,796 $ 153,961 Equipment 126,954 115,546 Land 10,772 10,030 Purchased software 139,245 134,610 Furniture and fixtures 18,103 18,114 Leasehold improvements 18,959 18,017 Construction in progress 9,240 6,105 484,069 456,383 Less: Accumulated depreciation (338,206 ) (309,955 ) Property and Equipment, net $ 145,863 $ 146,428 |
Accrued Liabilities | Accrued Liabilities on the accompanying Consolidated Balance Sheets consist of: 2018 2017 Accrued employee compensation $ 97,603 $ 88,960 Accrued consulting, outsourcing and professional fees 31,000 29,658 Accrued sub-advisory, distribution and other asset management fees 42,583 42,365 Accrued dividend payable 50,761 47,179 Other accrued liabilities 57,687 56,896 Accrued liabilities $ 279,634 $ 265,058 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Certain Financial Assets And Liabilities | The fair value of certain financial assets and liabilities of the Company was determined using the following inputs: Fair Value Measurements at Reporting Date Using December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets Equity available-for-sale securities $ 10,218 $ 10,218 $ — Fixed-income available-for-sale securities 101,683 — 101,683 Fixed-income securities owned 30,892 — 30,892 Investment funds sponsored by LSV (1) 4,887 $ 147,680 $ 10,218 $ 132,575 Fair Value Measurements at Reporting Date Using December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Assets 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 (1) The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the accompanying Consolidated Balance Sheets (See Note 5 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Marketable Securities [Abstract] | |
Investments Available For Sale | Investments available for sale classified as non-current assets consist of: At December 31, 2018 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 7,446 $ — $ (788 ) $ 6,658 Equities and other mutual funds 3,434 126 — 3,560 Debt securities 103,518 — (1,835 ) 101,683 $ 114,398 $ 126 $ (2,623 ) $ 111,901 At December 31, 2017 Cost 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) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Assumptions Used In The Weighted Average Fair Value Of The Stock Options Granted | The weighted average fair value of the Company’s stock options granted during 2018 , 2017 and 2016 were $13.04 , $16.78 and $12.43 , respectively, using the following assumptions: 2018 2017 2016 Expected term (in years) 6.34 6.00 6.00 Expected volatility 25.27 % 22.58 % 25.44 % Expected dividend yield 1.35 % 0.82 % 1.10 % Risk-free interest rate 2.75 % 2.29 % 2.18 % |
Stock-based Compensation Expense | The Company recognized stock-based compensation expense in its Consolidated Financial Statements in 2018 , 2017 and 2016 as follows: 2018 2017 2016 Stock-based compensation expense $ 23,805 $ 36,366 $ 16,017 Less: Deferred tax benefit (5,078 ) (7,891 ) (5,612 ) Stock-based compensation expense, net of tax $ 18,727 $ 28,475 $ 10,405 |
Stock Option Plans | This table presents certain information relating to the Company’s stock option plans for 2018 , 2017 and 2016 : Number of Shares Weighted Avg. Price Balance as of December 31, 2015 19,237,000 $ 28.71 Granted 2,310,000 49.57 Exercised (1,809,000 ) 24.82 Expired or canceled (1,669,000 ) 30.86 Balance as of December 31, 2016 18,069,000 $ 31.57 Granted 2,057,000 69.87 Exercised (2,370,000 ) 21.22 Expired or canceled (1,044,000 ) 33.42 Balance as of December 31, 2017 16,712,000 $ 37.63 Granted 2,468,000 49.94 Exercised (3,232,000 ) 25.93 Expired or canceled (135,000 ) 49.58 Balance as of December 31, 2018 15,813,000 $ 41.84 Exercisable as of December 31, 2018 9,359,000 $ 32.89 Available for future grant as of December 31, 2018 21,775,000 |
Stock Options Outstanding And Exercisable | This table summarizes information relating to all options outstanding and exercisable at December 31, 2018 : Options Outstanding at December 31, 2018 Options Exercisable at December 31, 2018 Range of Exercise Prices (Per Share) Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Life (Years) Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Life (Years) $ 14.62 - 21.05 1,996,000 $ 16.63 2.09 1,996,000 $ 16.63 2.09 22.45 - 23.86 2,379,000 23.13 3.04 2,379,000 23.13 3.04 27.03 - 40.64 3,332,000 37.10 5.54 2,390,000 35.70 5.36 45.99 - 53.16 4,268,000 49.01 9.06 908,000 49.61 8.00 53.34 - 71.12 3,838,000 62.69 8.19 1,686,000 53.36 7.02 15,813,000 9,359,000 |
Common Stock Buyback | The following table provides the total number of shares repurchased and the related total costs in 2018 , 2017 and 2016 : Year Total Number of Shares Repurchased Total Cost 2018 6,744,000 $ 404,759 2017 4,403,000 248,114 2016 6,600,000 294,374 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss), Net of Tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss), Net Of Tax | Components of Accumulated other comprehensive income (loss), net of tax, consisted of: Foreign Currency Translation Adjustments Unrealized Holding Gains (Losses) on Investments Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2016 $ (24,988 ) $ (302 ) $ (25,290 ) Other comprehensive loss before reclassifications (12,131 ) (918 ) (13,049 ) Amounts reclassified from accumulated other comprehensive loss — 384 384 Net current-period other comprehensive loss (12,131 ) (534 ) (12,665 ) Balance, December 31, 2016 $ (37,119 ) $ (836 ) $ (37,955 ) Other comprehensive gain before reclassifications 17,597 190 17,787 Amounts reclassified from accumulated other comprehensive loss — 260 260 Net current-period other comprehensive gain 17,597 450 18,047 Balance, December 31, 2017 $ (19,522 ) $ (386 ) $ (19,908 ) Other comprehensive loss before reclassifications (12,065 ) (1,088 ) (13,153 ) Amounts reclassified from accumulated other comprehensive loss — 61 61 Net current-period other comprehensive loss (12,065 ) (1,027 ) (13,092 ) Balance, December 31, 2018 $ (31,587 ) $ (1,413 ) $ (33,000 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Noncancellable Minimum Commitments | The aggregate noncancellable minimum commitments at December 31, 2018 are: 2019 $ 10,322 2020 8,476 2021 7,855 2022 7,616 2023 and thereafter 25,573 $ 59,842 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Federal and State and Foreign Income Tax Provision | The federal and state and foreign income tax provision is summarized as follows: Year Ended December 31, 2018 2017 2016 Current Federal $ 82,493 $ 154,776 $ 158,411 State 13,709 11,645 10,500 Foreign 8,405 8,002 5,137 104,607 174,423 174,048 Deferred Federal 2,550 (26,350 ) 788 State 1,166 1,378 (168 ) Foreign 15 3,199 — 3,731 (21,773 ) 620 Total income taxes $ 108,338 $ 152,650 $ 174,668 |
Components of Net Income Before Income Taxes | The components of Income before income taxes are summarized as follows: Year Ended December 31, 2018 2017 2016 Domestic $ 579,622 $ 523,044 $ 481,760 Foreign 34,584 33,995 26,725 $ 614,206 $ 557,039 $ 508,485 |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate | The effective income tax rate differs from the federal income tax statutory rate due to the following: Year Ended December 31, 2018 2017 2016 Statutory rate 21.0 % 35.0 % 35.0 % State taxes, net of federal tax benefit 1.9 1.3 1.3 Foreign tax expense and tax rate differential (0.1 ) (1.1 ) (0.8 ) Tax benefit from stock option exercises (3.8 ) (3.9 ) — Enactment of the Tax Cuts and Jobs Act: Re-measurement of deferred taxes — (4.9 ) — One-time transition tax on repatriation of foreign earnings and withholding tax (0.1 ) 2.6 — Research and development tax credit (0.8 ) (0.9 ) (0.8 ) Domestic Production Activities Deduction — (0.5 ) (0.6 ) Foreign Derived Intangible Income Deduction (0.2 ) — — Other, net (0.3 ) (0.2 ) 0.2 17.6 % 27.4 % 34.3 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities at December 31, 2018 and 2017 are as follows: 2018 2017 Deferred Tax Assets: Stock-based compensation expense $ 24,125 $ 24,725 Foreign and state net operating loss carryforward and FTC 74,358 71,236 Basis differences in investments 4,118 4,191 Federal benefit of state tax deduction for uncertain tax positions 1,882 1,918 Revenue and expense recognized in different periods for financial reporting and income tax purposes 1,657 2,631 Other assets 1,049 273 Total deferred income tax assets 107,189 104,974 Less: valuation allowance (72,316 ) (68,469 ) Net deferred income tax assets $ 34,873 $ 36,505 Deferred Tax Liabilities: Capitalized software currently deductible for tax purposes, net of amortization $ (71,067 ) $ (70,575 ) Difference in financial reporting and income tax depreciation methods (6,545 ) (3,182 ) Difference between book and tax basis of other assets (4,429 ) (3,549 ) Goodwill and other intangibles (1,823 ) (1,001 ) Foreign Dividend Withholding Tax (312 ) (3,199 ) Capitalized contract costs (5,490 ) — Other liabilities (960 ) (704 ) Total deferred income tax liabilities $ (90,626 ) $ (82,210 ) Net deferred income tax liabilities $ (55,753 ) $ (45,705 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: 2018 2017 2016 Balance as of January 1 $ 14,480 $ 17,287 $ 14,517 Tax positions related to current year: Gross additions 2,446 3,180 3,756 Tax positions related to prior years: Gross additions 340 211 1,762 Settlements (278 ) (352 ) (378 ) Lapses on statute of limitations (2,621 ) (5,846 ) (2,370 ) Balance as of December 31 $ 14,367 $ 14,480 $ 17,287 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Financial Information About Business Segments | The following tables highlight certain financial information about each of the Company’s business segments for the years ended December 31, 2018 , 2017 and 2016 : Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2018 Revenues $ 483,097 $ 399,089 $ 333,299 $ 398,076 $ 10,606 $ 1,624,167 Expenses 457,894 212,439 163,536 259,693 22,971 1,116,533 Operating profit (loss) $ 25,203 $ 186,650 $ 169,763 $ 138,383 $ (12,365 ) $ 507,634 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2017 Revenues $ 474,272 $ 373,473 $ 322,457 $ 349,444 $ 6,906 $ 1,526,552 Expenses 455,119 201,833 161,640 226,504 20,678 1,065,774 Operating profit (loss) $ 19,153 $ 171,640 $ 160,817 $ 122,940 $ (13,772 ) $ 460,778 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Year Ended December 31, 2016 Revenues $ 457,886 $ 330,677 $ 312,584 $ 294,390 $ 6,008 $ 1,401,545 Expenses 421,188 180,140 153,117 191,127 20,962 966,534 Operating profit (loss) $ 36,698 $ 150,537 $ 159,467 $ 103,263 $ (14,954 ) $ 435,011 Gain on sale of subsidiary 2,791 — — — — 2,791 Total profit (loss) $ 39,489 $ 150,537 $ 159,467 $ 103,263 $ (14,954 ) $ 437,802 |
Reconciliation Of Total Operating Profit Reported For Business Segments To Income From Operations In Consolidated Statements Of Operations | A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 is as follows: Year Ended December 31, 2018 2017 2016 Total operating profit from segments above $ 507,634 $ 460,778 $ 435,011 Corporate overhead expenses (65,646 ) (63,834 ) (59,317 ) Income from operations $ 441,988 $ 396,944 $ 375,694 |
Additional Information Pertaining To Business Segments | The following tables provide additional information for the years ended December 31, 2018 , 2017 and 2016 pertaining to our business segments: Capital Expenditures (1) Depreciation Year Ended December 31, 2018 2017 2016 2018 2017 2016 Private Banks $ 36,763 $ 47,526 $ 45,940 $ 13,773 $ 16,479 $ 13,222 Investment Advisors 16,572 17,450 17,610 4,607 3,364 3,880 Institutional Investors 3,863 4,020 4,319 1,672 1,121 1,367 Investment Managers 13,639 15,863 11,209 6,988 4,698 4,877 Investments in New Businesses 972 546 726 547 826 2,197 Total from business segments $ 71,809 $ 85,405 $ 79,804 $ 27,587 $ 26,488 $ 25,543 Corporate Overhead 1,507 1,163 1,985 1,205 823 897 $ 73,316 $ 86,568 $ 81,789 $ 28,792 $ 27,311 $ 26,440 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization Year Ended December 31, 2018 2017 2016 Private Banks $ 27,312 $ 32,696 $ 31,675 Investment Advisors 9,668 10,930 10,458 Institutional Investors 1,707 1,599 1,674 Investment Managers 9,382 2,593 1,092 Investments in New Businesses 595 239 146 Total from business segments $ 48,664 $ 48,057 $ 45,045 Corporate Overhead 231 218 347 $ 48,895 $ 48,275 $ 45,392 Total Assets 2018 2017 Private Banks $ 558,451 $ 523,214 Investment Advisors 143,042 139,697 Institutional Investors 109,081 117,286 Investment Managers 318,342 278,540 Investments in New Businesses 33,142 19,269 Total from business segments $ 1,162,058 $ 1,078,006 Corporate Overhead (2) 809,610 775,363 $ 1,971,668 $ 1,853,369 |
Revenues And Assets Based On Location | The following table presents revenues based on the location of the use of the products or services: For the Year Ended December 31, 2018 2017 2016 United States $ 1,348,130 $ 1,298,381 $ 1,191,640 International operations 276,037 228,171 209,905 $ 1,624,167 $ 1,526,552 $ 1,401,545 The following table presents assets based on their location: 2018 2017 United States $ 1,612,202 $ 1,471,260 International operations 359,466 382,109 $ 1,971,668 $ 1,853,369 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation | The purchase price allocation for the Huntington Steele acquisition 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 Estimated Fair Value Estimated Useful Life Current assets, net of current liabilities $ 2,539 Property and equipment 776 Goodwill 52,990 Identifiable intangible assets Acquired technology 13,510 10.0 years Client relationships 10,760 15.0 years Non-competition agreements 3,470 5.0 years Trade names 2,390 7.0 years Contingent consideration (4,800 ) Total purchase price allocation $ 81,635 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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, 2017 $ — $ — $ — Acquisition of Archway 52,990 — 52,990 Balance, December 31, 2017 $ 52,990 $ — $ 52,990 Acquisition of Huntington Steele — 11,499 11,499 Balance, December 31, 2018 $ 52,990 $ 11,499 $ 64,489 |
Schedule of Intangible Assets | The Company's intangible assets consist of: December 31, 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 (5,090 ) (1,552 ) Intangible assets, net $ 31,670 $ 28,578 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The Company currently expects to recognize amortization expense related to intangible assets as of December 31, 2018 each year from 2019 through 2023 as follows: 2019 $ 3,683 2020 3,683 2021 3,683 2022 3,336 2023 2,989 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 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 2018 : Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total Major Product Lines: For the Year Ended December 31, 2018 Investment management fees from pooled investment products $ 138,616 $ 288,030 $ 59,739 $ 928 $ 1,017 $ 488,330 Investment management fees from investment management agreements 793 94,526 271,600 331 9,457 376,707 Investment operations fees 1,517 — — 360,382 — 361,899 Investment processing fees - PaaS 182,068 — — 2,519 — 184,587 Investment processing fees - SaaS 136,222 — — 9,598 — 145,820 Professional services fees 16,643 — — 7,280 — 23,923 Account fees and other 7,238 16,533 1,960 17,038 132 42,901 Total revenues $ 483,097 $ 399,089 $ 333,299 $ 398,076 $ 10,606 $ 1,624,167 Primary Geographic Markets: United States $ 304,762 $ 399,089 $ 257,080 $ 376,593 $ 10,606 $ 1,348,130 United Kingdom 112,980 — 55,471 — — 168,451 Canada 45,941 — 8,526 — — 54,467 Ireland 19,414 — 10,419 21,483 — 51,316 Other — — 1,803 — — 1,803 Total revenues $ 483,097 $ 399,089 $ 333,299 $ 398,076 $ 10,606 $ 1,624,167 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data | For the Three Months Ended 2018 March 31 June 30 September 30 December 31 Revenues $ 405,598 $ 404,830 $ 408,682 $ 405,057 Income before income taxes $ 158,758 $ 154,254 $ 157,595 $ 143,599 Net income $ 139,838 $ 121,677 $ 128,319 $ 116,034 Basic earnings per share $ 0.89 $ 0.77 $ 0.82 $ 0.75 Diluted earnings per share $ 0.86 $ 0.75 $ 0.80 $ 0.73 Effective income tax rate 11.9 % 21.1 % 18.6 % 19.2 % For the Three Months Ended 2017 March 31 June 30 September 30 December 31(1) Revenues $ 359,984 $ 372,331 $ 386,018 $ 408,219 Income before income taxes $ 128,660 $ 135,158 $ 140,769 $ 152,452 Net income $ 88,737 $ 91,769 $ 101,739 $ 122,144 Basic earnings per share $ 0.56 $ 0.58 $ 0.64 $ 0.78 Diluted earnings per share (2) $ 0.55 $ 0.57 $ 0.63 $ 0.75 Effective income tax rate 31.0 % 32.1 % 27.7 % 19.9 % (1) During the fourth quarter 2017, the Company recognized an estimated net tax benefit of $12,410 , or $0.08 diluted earnings per share, resulting from the impacts of the enactment of the Tax Act in December 2017 (See Note 11 ). |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Expense related to soft dollar arrangement | $ 16,680,000 | $ 14,623,000 | $ 18,409,000 | ||||||||||
Cash and cash equivalents | $ 754,525,000 | $ 744,247,000 | 754,525,000 | 744,247,000 | |||||||||
Restricted cash | 3,514,000 | 3,505,000 | 3,514,000 | 3,505,000 | |||||||||
Impairment charges related to marketable securities | 0 | 0 | 0 | ||||||||||
Net book value of capitalized software | $ 309,500,000 | $ 310,405,000 | 309,500,000 | 310,405,000 | |||||||||
Increase in net income from change in estimate | $ 505,868,000 | $ 404,389,000 | $ 333,817,000 | ||||||||||
Increase in diluted earnings per share from change in estimate | $ 0.73 | $ 0.80 | $ 0.75 | $ 0.86 | $ 0.75 | $ 0.63 | $ 0.57 | $ 0.55 | $ 3.14 | $ 2.49 | $ 2.03 | ||
Capitalized software development costs | $ 44,221,000 | $ 61,043,000 | $ 50,392,000 | ||||||||||
Impairment charges related to capitalized software development costs | 0 | 0 | $ 0 | ||||||||||
Goodwill and intangible assets impairment | $ 0 | $ 0 | |||||||||||
Anti-dilutive employee stock options | 6,224 | 5,196 | 10,632 | ||||||||||
Anti-dilutive employee stock options, average exercise price per share | $ 53.60 | $ 45.49 | $ 35.02 | ||||||||||
SEI Wealth Platform | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Net book value of capitalized software | $ 288,666,000 | $ 288,666,000 | |||||||||||
Capitalized software development costs in progress | 42,238,000 | 42,238,000 | |||||||||||
Capitalized software development costs | 43,376,000 | $ 51,353,000 | $ 39,785,000 | ||||||||||
Amortization expense related to the SEI Wealth Platform | 39,917,000 | 46,505,000 | 45,047,000 | ||||||||||
Application for the Investment Managers segment | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Net book value of capitalized software | 20,834,000 | 20,834,000 | |||||||||||
Capitalized software development costs | $ 845,000 | 9,690,000 | 10,607,000 | ||||||||||
Estimated useful life of the SEI Wealth Platform | 5 years | ||||||||||||
Amortization expense related to the SEI Wealth Platform | $ 5,209,000 | ||||||||||||
SEI Sponsored Open Ended Money Market Mutual Funds | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Cash and cash equivalents | 315,840,000 | $ 401,292,000 | 315,840,000 | 401,292,000 | |||||||||
SEI Investments Europe Limited | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Restricted cash | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | |||||||||
SEI Investments Distribution Co | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Restricted cash | $ 514,000 | 505,000 | $ 514,000 | 505,000 | |||||||||
Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Contract acquisition costs, amortization period | 6 years | 6 years | |||||||||||
Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Ownership interest in unconsolidated affiliate | 50.00% | 50.00% | |||||||||||
Contract acquisition costs, amortization period | 15 years | 15 years | |||||||||||
Weighted Average | SEI Wealth Platform | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life of the SEI Wealth Platform | 8 years 6 months | ||||||||||||
Building and Building Improvements | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life of property and equipment | 25 years | ||||||||||||
Building and Building Improvements | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life of property and equipment | 39 years | ||||||||||||
Computer Equipment | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life of property and equipment | 3 years | ||||||||||||
Computer Equipment | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life of property and equipment | 5 years | ||||||||||||
Furniture and fixtures | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life of property and equipment | 3 years | ||||||||||||
Furniture and fixtures | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life of property and equipment | 5 years | ||||||||||||
Equity Method Investee | Minimum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Ownership interest in unconsolidated affiliate | 20.00% | 20.00% | |||||||||||
Equity Method Investee | Maximum | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Ownership interest in unconsolidated affiliate | 50.00% | 50.00% | |||||||||||
Remaining Useful Life of SEI Wealth Platform | SEI Wealth Platform | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Decrease in amortization expense from change in estimate | 4,347,000 | ||||||||||||
Increase in net income from change in estimate | $ 3,156,000 | ||||||||||||
Increase in diluted earnings per share from change in estimate | $ 0.02 | ||||||||||||
Retained Earnings | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Increase in net income from change in estimate | $ 505,868,000 | $ 404,389,000 | 333,817,000 | ||||||||||
Accounting Standards Update 2014-09 | Retained Earnings | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Cumulative effect upon adoption of ASUs | $ 14,402,000 | 14,402,000 | 0 | $ 14,402,000 | $ 0 | ||||||||
Cumulative effect adjustment, before tax | $ 18,641,000 | ||||||||||||
SEI Sponsored Open Ended Money Market Mutual Funds | |||||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||||
Fees waived according to expense limitation agreements | $ 26,229,000 | $ 27,434,000 | $ 41,227,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Expected Amortization Expenses) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Estimated amortization expense related to all capitalized software in 2019 | $ 3,683 |
Estimated amortization expense related to all capitalized software in 2020 | 3,683 |
Estimated amortization expense related to all capitalized software in 2021 | 3,683 |
Estimated amortization expense related to all capitalizes software in 2022 | 3,336 |
Estimated amortization expense related to all capitalized software in 2023 | 2,989 |
Software development | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated amortization expense related to all capitalized software in 2019 | 46,608 |
Estimated amortization expense related to all capitalized software in 2020 | 46,608 |
Estimated amortization expense related to all capitalized software in 2021 | 46,330 |
Estimated amortization expense related to all capitalizes software in 2022 | 31,817 |
Estimated amortization expense related to all capitalized software in 2023 | $ 13,145 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Calculation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 505,868 | $ 404,389 | $ 333,817 | ||||||||
Shares used to compute basic earnings per common share | 156,579 | 158,177 | 161,350 | ||||||||
Dilutive effect of stock options | 4,653 | 4,092 | 3,081 | ||||||||
Shares used to compute diluted earnings per common share | 161,232 | 162,269 | 164,431 | ||||||||
Basic earnings per common share (in USD per share) | $ 0.75 | $ 0.82 | $ 0.77 | $ 0.89 | $ 0.78 | $ 0.64 | $ 0.58 | $ 0.56 | $ 3.23 | $ 2.56 | $ 2.07 |
Diluted earnings per common share (in USD per share) | $ 0.73 | $ 0.80 | $ 0.75 | $ 0.86 | $ 0.75 | $ 0.63 | $ 0.57 | $ 0.55 | $ 3.14 | $ 2.49 | $ 2.03 |
Investment in Unconsolidated _3
Investment in Unconsolidated Affiliates (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments in and Advances to Affiliates [Line Items] | |||
Company's share in the earnings of LSV | $ 159,791 | $ 152,550 | $ 126,103 |
Distributions received from LSV | $ 166,941 | 143,517 | 125,224 |
LSV Asset Management | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership interest in LSV | 38.90% | ||
Total investment in LSV | $ 52,342 | ||
Company's share in the earnings of LSV | 159,791 | 152,550 | 126,103 |
Distributions received from LSV | $ 166,941 | $ 143,517 | $ 125,224 |
Maximum | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership interest in LSV | 50.00% |
Investment in Unconsolidated _4
Investment in Unconsolidated Affiliates (Condensed Statements of Operations of LSV) (Details) - LSV Asset Management - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenues | $ 517,203 | $ 491,872 | $ 399,462 |
Net income | $ 410,846 | $ 392,141 | $ 323,381 |
Investment in Unconsolidated _5
Investment in Unconsolidated Affiliates (Condensed Balance Sheets of LSV) (Details) - LSV Asset Management - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 138,083 | $ 155,239 |
Non-current assets | 1,165 | 1,407 |
Total assets | 139,248 | 156,646 |
Current liabilities | 47,874 | 46,486 |
Partners’ capital | 91,374 | 110,160 |
Total liabilities and partners’ capital | $ 139,248 | $ 156,646 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions (Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Items Included in Consolidated Statement of Financial Condition [Abstract] | ||
Trade receivables | $ 76,362 | $ 76,760 |
Fees earned, not billed | 226,001 | 194,331 |
Other receivables | 13,691 | 12,310 |
Gross receivables | 316,054 | 283,401 |
Less: Allowance for doubtful accounts | (718) | (695) |
Receivables, net | $ 315,336 | $ 282,706 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Captions (Property And Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | $ 484,069 | $ 456,383 | |
Less: Accumulated depreciation | (338,206) | (309,955) | |
Property and Equipment, net | 145,863 | 146,428 | |
Depreciation expense | 28,792 | 27,311 | $ 26,440 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 160,796 | 153,961 | |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 126,954 | 115,546 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 10,772 | 10,030 | |
Purchased software | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 139,245 | 134,610 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 18,103 | 18,114 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 18,959 | 18,017 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | $ 9,240 | $ 6,105 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Captions (Other Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Assets [Abstract] | |||
Amortization expense for certain other assets | $ 231 | $ 218 | $ 345 |
Composition of Certain Financ_6
Composition of Certain Financial Statement Captions (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Items Included in Consolidated Statement of Financial Condition [Abstract] | ||
Accrued employee compensation | $ 97,603 | $ 88,960 |
Accrued consulting, outsourcing and professional fees | 31,000 | 29,658 |
Accrued sub-advisory, distribution and other asset management fees | 42,583 | 42,365 |
Accrued dividend payable | 50,761 | 47,179 |
Other accrued liabilities | 57,687 | 56,896 |
Accrued liabilities | $ 279,634 | $ 265,058 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Apr. 02, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity available-for-sale securities | $ 10,218 | $ 11,250 | |
Fixed income available-for-sale securities | 101,683 | 76,733 | |
Fixed income securities owned | 30,892 | 21,526 | |
Investment funds sponsored by LSV | 4,887 | 6,034 | |
Assets, fair value | 147,680 | 115,543 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity available-for-sale securities | 10,218 | 11,250 | |
Fixed income available-for-sale securities | 0 | 0 | |
Fixed income securities owned | 0 | 0 | |
Assets, fair value | 10,218 | 11,250 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity available-for-sale securities | 0 | 0 | |
Fixed income available-for-sale securities | 101,683 | 76,733 | |
Fixed income securities owned | 30,892 | 21,526 | |
Assets, fair value | $ 132,575 | $ 98,259 | |
Huntington Steele, LLC | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent purchase price | $ 12,120 | ||
Huntington Steele, LLC | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent purchase price | $ 12,120 |
Marketable Securities (Investme
Marketable Securities (Investments Available For Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Equity Securities: | ||
Fair Value | $ 10,218 | $ 11,250 |
Debt Securities: | ||
Fair Value | 101,683 | 76,733 |
Cost Amount | 114,398 | 88,570 |
Gross Unrealized Gains | 126 | 568 |
Gross Unrealized (Losses) | (2,623) | (1,155) |
Fair Value | 111,901 | 87,983 |
SEI-sponsored mutual funds | ||
Equity Securities: | ||
Cost Amount | 7,446 | 7,369 |
Gross Unrealized Gains | 0 | 110 |
Gross Unrealized (Losses) | (788) | (143) |
Fair Value | 6,658 | 7,336 |
Equities and other mutual funds | ||
Equity Securities: | ||
Cost Amount | 3,434 | 3,456 |
Gross Unrealized Gains | 126 | 458 |
Gross Unrealized (Losses) | 0 | 0 |
Fair Value | 3,560 | 3,914 |
Debt securities | ||
Debt Securities: | ||
Cost Amount | 103,518 | 77,745 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | (1,835) | (1,012) |
Fair Value | $ 101,683 | $ 76,733 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investments [Line Items] | |||
Net unrealized holding losses | $ 1,413 | $ 779 | |
Net unrealized holding losses, income tax benefit | 422 | 233 | |
Gross realized gains from available-for-sale securities | 1,065 | 529 | $ 284 |
Gross realized losses from available-for-sale securities | 1,686 | 888 | 869 |
Investment funds sponsored by LSV | 4,887 | 6,034 | |
Securities owned | 30,892 | 21,526 | |
Investment funds sponsored by LSV | |||
Schedule of Investments [Line Items] | |||
Investment funds sponsored by LSV | 4,887 | 6,034 | |
Change in fair value of investment funds sponsored by LSV | $ (1,147) | $ 1,176 | $ 819 |
Line of Credit (Details)
Line of Credit (Details) - USD ($) | Jun. 13, 2016 | Jul. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | |||||
Credit facility principal payment | $ 30,000,000 | $ 10,000,000 | $ 0 | ||
Letters of credit outstanding amount | 13,813,000 | ||||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, term | 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 | 30,000,000 | 10,000,000 | |||
Credit facility remaining borrowing capacity | 286,187,000 | ||||
Credit facility commitment fees | 645,000 | $ 781,000 | $ 531,000 | ||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 1.00% | ||||
Revolving Credit Facility | Federal Funds Rate | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 0.50% | ||||
Letter of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 15,000,000 | ||||
Credit facility, commitment fee percentage | 1.25% | ||||
Credit facility, fronting fee percentage | 0.175% | ||||
Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility commitment fee per annum on daily unused portion (as a percent) | 0.15% | ||||
Minimum | Revolving Credit Facility | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 0.25% | ||||
Minimum | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 1.25% | ||||
Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility commitment fee per annum on daily unused portion (as a percent) | 0.30% | ||||
Maximum | Revolving Credit Facility | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 1.00% | ||||
Maximum | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility variable interest rate basis spread (as a percent) | 2.00% | ||||
Weighted Average | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility interest rate during the period | 2.93% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | Jan. 08, 2019$ / shares | Dec. 11, 2018$ / shares | Jun. 22, 2018$ / shares | May 30, 2018$ / shares | Dec. 31, 2018USD ($)right / shares$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average fair value of stock options granted | $ / shares | $ 13.04 | $ 16.78 | $ 12.43 | ||||
Increase in stock-based compensation from change in management estimate | $ | $ 1,909 | $ 11,206 | |||||
Unvested employee stock options outstanding | shares | 6,454,000 | ||||||
Unrecognized compensation cost from employee stock options | $ | $ 68,470 | ||||||
Weighted average period for recognition of unrecognized compensation cost | 2 years 2 months 13 days | ||||||
Total options that were exercisable (in shares) | shares | 9,359,000 | 10,624,000 | 6,692,000 | ||||
Options outstanding weighted average remaining contractual life, years | 6 years 3 months 26 days | ||||||
Total intrinsic value of options exercised | $ | $ 139,087 | $ 83,628 | |||||
Aggregate intrinsic value of options exercisable | $ | 138,706 | ||||||
Total intrinsic value of options outstanding | $ | $ 143,939 | ||||||
Share price of SEI common stock (in USD per share) | $ / shares | $ 46.20 | ||||||
Rights received by common shareholder for each common share outstanding, rights | right / shares | 1 | ||||||
Series A Junior Participating Preferred stock, par value (in USD per share) | $ / shares | $ 0.05 | $ 0.05 | |||||
Securities and assets of equivalent value, purchase price (in USD per unit) | $ / shares | $ 150 | ||||||
Number of days, rights become exercisable following public announcement | 10 days | ||||||
Dividends declared per common share (in USD per share) | $ / shares | $ 0.33 | $ 0.30 | $ 0.63 | $ 0.58 | $ 0.54 | ||
Dividends paid per common share (in USD per share) | $ / shares | $ 0.30 | ||||||
Dividends declared | $ | $ 97,900 | $ 91,444 | $ 86,657 | ||||
Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividends paid per common share (in USD per share) | $ / shares | $ 0.33 | ||||||
Common Stock Buyback | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Remaining stock repurchase authorization amount | $ | $ 215,879 | ||||||
2014 Equity Compensation Plan | Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rate | 50.00% | ||||||
2014 Equity Compensation Plan | Tranche Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rate | 50.00% | ||||||
Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee stock purchase plan, employee eligible percentage on offerings of common stock | 85.00% | ||||||
Shares reserved under the plan | shares | 15,600,000 | ||||||
Issuance of common stock under the employee stock purchase plan, shares | shares | 12,038,000 |
Shareholders' Equity (Assumptio
Shareholders' Equity (Assumptions Used In The Weighted Average Fair Value Of Stock Options Granted) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |||
Expected term (in years) | 6 years 4 months 2 days | 6 years | 6 years |
Expected volatility | 25.27% | 22.58% | 25.44% |
Expected dividend yield | 1.35% | 0.82% | 1.10% |
Risk-free interest rate | 2.75% | 2.29% | 2.18% |
Shareholders' Equity (Stock-Bas
Shareholders' Equity (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |||
Stock-based compensation expense | $ 23,805 | $ 36,366 | $ 16,017 |
Less: Deferred tax benefit | (5,078) | (7,891) | (5,612) |
Stock-based compensation expense, net of tax | $ 18,727 | $ 28,475 | $ 10,405 |
Shareholders' Equity (Stock Opt
Shareholders' Equity (Stock Option Plans) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Beginning balance (in shares) | 16,712,000 | 18,069,000 | 19,237,000 |
Granted (in shares) | 2,468,000 | 2,057,000 | 2,310,000 |
Exercised (in shares) | (3,232,000) | (2,370,000) | (1,809,000) |
Expired or canceled (in shares) | (135,000) | (1,044,000) | (1,669,000) |
Ending balance (in shares) | 15,813,000 | 16,712,000 | 18,069,000 |
Weighted Avg. Price | |||
Beginning balance (in USD per share) | $ 37.63 | $ 31.57 | $ 28.71 |
Granted, weighted avg. price (in USD per share) | 49.94 | 69.87 | 49.57 |
Exercised, weighted avg. price (in USD per share) | 25.93 | 21.22 | 24.82 |
Expired or canceled, weighted avg. price (in USD per share) | 49.58 | 33.42 | 30.86 |
Ending balance (in USD per share) | $ 41.84 | $ 37.63 | $ 31.57 |
Total options that were exercisable (in shares) | 9,359,000 | 10,624,000 | 6,692,000 |
Exercisable shares, weighted avg. price (in USD per share) | $ 32.89 | ||
Available for future grant as of December 31, 2018 (in shares) | 21,775,000 |
Shareholders' Equity (Stock O_2
Shareholders' Equity (Stock Options Outstanding And Exercisable) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number of options outstanding (in shares) | 15,813,000 | 16,712,000 | 18,069,000 | 19,237,000 |
Options outstanding, weighted average exercise price (in USD per share) | $ 41.84 | $ 37.63 | $ 31.57 | $ 28.71 |
Options outstanding weighted average remaining contractual life, years | 6 years 3 months 26 days | |||
Number of options exercisable (in shares) | 9,359,000 | 10,624,000 | 6,692,000 | |
Exercisable shares, weighted avg. price (in USD per share) | $ 32.89 | |||
Exercise Price $14.62-21.05 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Lower range | 14.62 | |||
Upper range | $ 21.05 | |||
Number of options outstanding (in shares) | 1,996,000 | |||
Options outstanding, weighted average exercise price (in USD per share) | $ 16.63 | |||
Options outstanding weighted average remaining contractual life, years | 2 years 32 days | |||
Number of options exercisable (in shares) | 1,996,000 | |||
Exercisable shares, weighted avg. price (in USD per share) | $ 16.63 | |||
Options exercisable, weighted average remaining contractual life, years | 2 years 32 days | |||
Exercise Price $22.45-23.86 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Lower range | $ 22.45 | |||
Upper range | $ 23.86 | |||
Number of options outstanding (in shares) | 2,379,000 | |||
Options outstanding, weighted average exercise price (in USD per share) | $ 23.13 | |||
Options outstanding weighted average remaining contractual life, years | 3 years 15 days | |||
Number of options exercisable (in shares) | 2,379,000 | |||
Exercisable shares, weighted avg. price (in USD per share) | $ 23.13 | |||
Options exercisable, weighted average remaining contractual life, years | 3 years 15 days | |||
Exercise Price $27.03-40.64 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Lower range | $ 27.03 | |||
Upper range | $ 40.64 | |||
Number of options outstanding (in shares) | 3,332,000 | |||
Options outstanding, weighted average exercise price (in USD per share) | $ 37.10 | |||
Options outstanding weighted average remaining contractual life, years | 5 years 6 months 15 days | |||
Number of options exercisable (in shares) | 2,390,000 | |||
Exercisable shares, weighted avg. price (in USD per share) | $ 35.70 | |||
Options exercisable, weighted average remaining contractual life, years | 5 years 4 months 10 days | |||
Exercise Price $45.99-53.16 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Lower range | $ 45.99 | |||
Upper range | $ 53.16 | |||
Number of options outstanding (in shares) | 4,268,000 | |||
Options outstanding, weighted average exercise price (in USD per share) | $ 49.01 | |||
Options outstanding weighted average remaining contractual life, years | 9 years 23 days | |||
Number of options exercisable (in shares) | 908,000 | |||
Exercisable shares, weighted avg. price (in USD per share) | $ 49.61 | |||
Options exercisable, weighted average remaining contractual life, years | 8 years | |||
Exercise Price $53.34-71.12 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Lower range | $ 53.34 | |||
Upper range | $ 71.12 | |||
Number of options outstanding (in shares) | 3,838,000 | |||
Options outstanding, weighted average exercise price (in USD per share) | $ 62.69 | |||
Options outstanding weighted average remaining contractual life, years | 8 years 1 month 40 days | |||
Number of options exercisable (in shares) | 1,686,000 | |||
Exercisable shares, weighted avg. price (in USD per share) | $ 53.36 | |||
Options exercisable, weighted average remaining contractual life, years | 7 years 7 days |
Shareholders' Equity (Common St
Shareholders' Equity (Common Stock Buyback) (Details) - Common Stock Buyback - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased and retired during period | 6,744 | 4,403 | 6,600 |
Value of shares repurchased during period | $ 404,759 | $ 248,114 | $ 294,374 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,476,839 | $ 1,303,114 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other comprehensive gain(loss) before reclassifications | (13,153) | 17,787 | $ (13,049) |
Amounts reclassified from accumulated other comprehensive loss | 61 | 260 | 384 |
Net current-period other comprehensive loss | (13,092) | 18,047 | (12,665) |
Ending balance | 1,593,147 | 1,476,839 | 1,303,114 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (19,522) | (37,119) | (24,988) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other comprehensive gain(loss) before reclassifications | (12,065) | 17,597 | (12,131) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Net current-period other comprehensive loss | (12,065) | 17,597 | (12,131) |
Ending balance | (31,587) | (19,522) | (37,119) |
Unrealized Holding Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (386) | (836) | (302) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other comprehensive gain(loss) before reclassifications | (1,088) | 190 | (918) |
Amounts reclassified from accumulated other comprehensive loss | 61 | 260 | 384 |
Net current-period other comprehensive loss | (1,027) | 450 | (534) |
Ending balance | (1,413) | (386) | (836) |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (19,908) | (37,955) | (25,290) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Ending balance | $ (33,000) | $ (19,908) | $ (37,955) |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan, cost recognized | $ 12,362 | $ 10,929 | $ 9,665 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Lawsuit | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ | $ 34,679 | $ 32,619 | $ 28,016 |
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 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule Of Noncancellable Minimum Commitments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum operating lease payments due in 2019 | $ 10,322 |
Future minimum operating lease payments due in 2020 | 8,476 |
Future minimum operating lease payments due in 2021 | 7,855 |
Future minimum operating lease payments due in 2022 | 7,616 |
Future minimum operating lease payments due in 2023 and thereafter | 25,573 |
Operating leases, future minimum payments due | $ 59,842 |
Income Taxes (Schedule Of Feder
Income Taxes (Schedule Of Federal And State And Foreign Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||
Federal | $ 82,493 | $ 154,776 | $ 158,411 |
State | 13,709 | 11,645 | 10,500 |
Foreign | 8,405 | 8,002 | 5,137 |
Current federal, state and foreign income tax | 104,607 | 174,423 | 174,048 |
Deferred | |||
Federal | 2,550 | (26,350) | 788 |
State | 1,166 | 1,378 | (168) |
Foreign | 15 | 3,199 | 0 |
Deferred income tax expense (benefit) | 3,731 | (21,773) | 620 |
Total income taxes | $ 108,338 | $ 152,650 | $ 174,668 |
Income Taxes (Components Of Net
Income Taxes (Components Of Net Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 579,622 | $ 523,044 | $ 481,760 | ||||||||
Foreign | 34,584 | 33,995 | 26,725 | ||||||||
Income before income taxes | $ 143,599 | $ 157,595 | $ 154,254 | $ 158,758 | $ 152,452 | $ 140,769 | $ 135,158 | $ 128,660 | $ 614,206 | $ 557,039 | $ 508,485 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate) (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||
Statutory rate | 21.00% | 35.00% | 35.00% | ||||||||
State taxes, net of federal tax benefit | 1.90% | 1.30% | 1.30% | ||||||||
Foreign tax expense and tax rate differential | (0.10%) | (1.10%) | (0.80%) | ||||||||
Tax benefit from stock option exercises | (3.80%) | (3.90%) | 0.00% | ||||||||
Enactment of the Tax Cuts and Jobs Act: | |||||||||||
Re-measurement of deferred taxes | 0.00% | (4.90%) | 0.00% | ||||||||
One-time transition tax on repatriation of foreign earnings and withholding tax | (0.10%) | 2.60% | 0.00% | ||||||||
Research and development tax credit | (0.80%) | (0.90%) | (0.80%) | ||||||||
Domestic Production Activities Deduction | 0.00% | (0.50%) | (0.60%) | ||||||||
Foreign Derived Intangible Income Deduction | (0.20%) | 0.00% | 0.00% | ||||||||
Other, net | (0.30%) | (0.20%) | 0.20% | ||||||||
Effective income tax rate | 19.20% | 18.60% | 21.10% | 11.90% | 19.90% | 27.70% | 32.10% | 31.00% | 17.60% | 27.40% | 34.30% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Foreign derived intangible income deduction benefit provided by the Tax Act | $ 1,206 | ||||
Foreign withholding tax included in Deferred income taxes | $ 3,199 | 312 | $ 3,199 | ||
Tax benefit from remeasurement of estimated net deferred tax liability | 27,153 | ||||
Tax expense (benefit) from preliminary estimate of one-time transition tax and withholding tax | 14,743 | ||||
Net tax benefit from enactment of the Tax Act | $ 12,410 | ||||
Net tax benefit from enactment of the Tax Act, per diluted share | $ 0.08 | ||||
One-time transition tax on repatriation of previously deferred foreign earnings | 10,711 | ||||
Payment of transition tax | 1,000 | ||||
Overpayment of federal taxes against the transition tax payable | 8,908 | ||||
Transition tax, noncurrent | 803 | ||||
Unrecognized tax benefit, excluding interest and penalties | $ 14,480 | 14,367 | 14,480 | $ 17,287 | $ 14,517 |
Unrecognized tax benefits that would affect effective tax rate | 13,774 | ||||
Amount of previously unrecognized tax benefits recognized | 2,621 | ||||
Liabilities for tax-related interest and penalties | 1,289 | $ 1,175 | $ 1,227 | ||
Current liabilities | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Amount of uncertain tax liability expected to be paid within one year | 3,131 | ||||
Other long-term liabilities | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Amount of uncertain tax liability included in Other long-term liabilities | 12,525 | ||||
Settlement and Lapse of Statute | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Unrecognized tax benefits within the next 12 months | $ 3,131 |
Income Taxes Income Taxes (Sche
Income Taxes Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets: | ||
Stock-based compensation expense | $ 24,125 | $ 24,725 |
Foreign and state net operating loss carryforward and FTC | 74,358 | 71,236 |
Basis differences in investments | 4,118 | 4,191 |
Federal benefit of state tax deduction for uncertain tax positions | 1,882 | 1,918 |
Revenue and expense recognized in different periods for financial reporting and income tax purposes | 1,657 | 2,631 |
Other assets | 1,049 | 273 |
Total deferred income tax assets | 107,189 | 104,974 |
Less: valuation allowance | (72,316) | (68,469) |
Net deferred income tax assets | 34,873 | 36,505 |
Deferred Tax Liabilities: | ||
Capitalized software currently deductible for tax purposes, net of amortization | (71,067) | (70,575) |
Difference in financial reporting and income tax depreciation methods | (6,545) | (3,182) |
Difference between book and tax basis of other assets | (4,429) | (3,549) |
Goodwill and other intangibles | (1,823) | (1,001) |
Foreign Dividend Withholding Tax | (312) | (3,199) |
Capitalized contract costs | (5,490) | 0 |
Other liabilities | (960) | (704) |
Total deferred income tax liabilities | (90,626) | (82,210) |
Net deferred income tax liabilities | $ (55,753) | $ (45,705) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 14,480 | $ 17,287 | $ 14,517 |
Tax positions related to current year: | |||
Gross additions | 2,446 | 3,180 | 3,756 |
Tax positions related to prior years: | |||
Gross additions | 340 | 211 | 1,762 |
Settlements | (278) | (352) | (378) |
Lapses on statute of limitations | (2,621) | (5,846) | (2,370) |
Ending balance | $ 14,367 | $ 14,480 | $ 17,287 |
Business Segment Information (S
Business Segment Information (Schedule Of Financial Information About Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 405,057 | $ 408,682 | $ 404,830 | $ 405,598 | $ 408,219 | $ 386,018 | $ 372,331 | $ 359,984 | $ 1,624,167 | $ 1,526,552 | $ 1,401,545 |
Expenses | 1,116,533 | 1,065,774 | 966,534 | ||||||||
Operating profit (loss) | 507,634 | 460,778 | 435,011 | ||||||||
Gain on sale of subsidiary | 2,791 | ||||||||||
Total profit (loss) | 437,802 | ||||||||||
Private Banks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 483,097 | 474,272 | 457,886 | ||||||||
Expenses | 457,894 | 455,119 | 421,188 | ||||||||
Operating profit (loss) | 25,203 | 19,153 | 36,698 | ||||||||
Gain on sale of subsidiary | 2,791 | ||||||||||
Total profit (loss) | 39,489 | ||||||||||
Investment Advisors | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 399,089 | 373,473 | 330,677 | ||||||||
Expenses | 212,439 | 201,833 | 180,140 | ||||||||
Operating profit (loss) | 186,650 | 171,640 | 150,537 | ||||||||
Gain on sale of subsidiary | 0 | ||||||||||
Total profit (loss) | 150,537 | ||||||||||
Institutional Investors | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 333,299 | 322,457 | 312,584 | ||||||||
Expenses | 163,536 | 161,640 | 153,117 | ||||||||
Operating profit (loss) | 169,763 | 160,817 | 159,467 | ||||||||
Gain on sale of subsidiary | 0 | ||||||||||
Total profit (loss) | 159,467 | ||||||||||
Investment Managers | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 398,076 | 349,444 | 294,390 | ||||||||
Expenses | 259,693 | 226,504 | 191,127 | ||||||||
Operating profit (loss) | 138,383 | 122,940 | 103,263 | ||||||||
Gain on sale of subsidiary | 0 | ||||||||||
Total profit (loss) | 103,263 | ||||||||||
Investments In New Businesses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 10,606 | 6,906 | 6,008 | ||||||||
Expenses | 22,971 | 20,678 | 20,962 | ||||||||
Operating profit (loss) | $ (12,365) | $ (13,772) | (14,954) | ||||||||
Gain on sale of subsidiary | 0 | ||||||||||
Total profit (loss) | $ (14,954) |
Business Segment Information (R
Business Segment Information (Reconciliation Of Total Operating Profit Reported For Business Segments To Income From Operations In Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total operating profit from segments above | $ 507,634 | $ 460,778 | $ 435,011 |
Income from operations | 441,988 | 396,944 | 375,694 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total operating profit from segments above | 507,634 | 460,778 | 435,011 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Corporate overhead expenses | $ (65,646) | $ (63,834) | $ (59,317) |
Business Segment Information _2
Business Segment Information (Schedule Of Additional Information Pertaining To Business Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 73,316 | $ 86,568 | $ 81,789 |
Depreciation | 28,792 | 27,311 | 26,440 |
Amortization | 48,895 | 48,275 | 45,392 |
Assets | 1,971,668 | 1,853,369 | |
Private Banks | |||
Segment Reporting Information [Line Items] | |||
Assets | 558,451 | 523,214 | |
Investment Advisors | |||
Segment Reporting Information [Line Items] | |||
Assets | 143,042 | 139,697 | |
Institutional Investors | |||
Segment Reporting Information [Line Items] | |||
Assets | 109,081 | 117,286 | |
Investment Managers | |||
Segment Reporting Information [Line Items] | |||
Assets | 318,342 | 278,540 | |
Investments In New Businesses | |||
Segment Reporting Information [Line Items] | |||
Assets | 33,142 | 19,269 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 71,809 | 85,405 | 79,804 |
Depreciation | 27,587 | 26,488 | 25,543 |
Amortization | 48,664 | 48,057 | 45,045 |
Assets | 1,162,058 | 1,078,006 | |
Operating Segments | Private Banks | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 36,763 | 47,526 | 45,940 |
Depreciation | 13,773 | 16,479 | 13,222 |
Amortization | 27,312 | 32,696 | 31,675 |
Operating Segments | Investment Advisors | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 16,572 | 17,450 | 17,610 |
Depreciation | 4,607 | 3,364 | 3,880 |
Amortization | 9,668 | 10,930 | 10,458 |
Operating Segments | Institutional Investors | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 3,863 | 4,020 | 4,319 |
Depreciation | 1,672 | 1,121 | 1,367 |
Amortization | 1,707 | 1,599 | 1,674 |
Operating Segments | Investment Managers | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 13,639 | 15,863 | 11,209 |
Depreciation | 6,988 | 4,698 | 4,877 |
Amortization | 9,382 | 2,593 | 1,092 |
Operating Segments | Investments In New Businesses | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 972 | 546 | 726 |
Depreciation | 547 | 826 | 2,197 |
Amortization | 595 | 239 | 146 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 1,507 | 1,163 | 1,985 |
Depreciation | 1,205 | 823 | 897 |
Amortization | 231 | 218 | $ 347 |
Assets | $ 809,610 | $ 775,363 |
Business Segment Information _3
Business Segment Information (Schedule of Revenues And Assets Based On Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 405,057 | $ 408,682 | $ 404,830 | $ 405,598 | $ 408,219 | $ 386,018 | $ 372,331 | $ 359,984 | $ 1,624,167 | $ 1,526,552 | $ 1,401,545 |
Assets | 1,971,668 | 1,853,369 | 1,971,668 | 1,853,369 | |||||||
United States | |||||||||||
Revenues | 1,348,130 | 1,298,381 | 1,191,640 | ||||||||
Assets | 1,612,202 | 1,471,260 | 1,612,202 | 1,471,260 | |||||||
International operations | |||||||||||
Revenues | 276,037 | 228,171 | $ 209,905 | ||||||||
Assets | $ 359,466 | $ 382,109 | $ 359,466 | $ 382,109 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Asset management, administration and distribution fees | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 462,101 | $ 453,438 | $ 431,318 |
Transaction-based and trade execution fees | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 2,001 | $ 1,216 | $ 561 |
Business Acquisitions (Narrativ
Business Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Apr. 02, 2018 | Jul. 03, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Net cash consideration | $ 5,794 | $ 80,234 | $ 0 | ||
Huntington Steele, LLC | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 17,914 | ||||
Net cash consideration | 5,794 | ||||
Cash acquired from acquisition | 125 | ||||
Contingent purchase price | $ 12,120 | ||||
Contingent liability, recognition period | 5 years | ||||
Cash acquired during transaction | $ 125 | ||||
Archway | |||||
Business Acquisition [Line Items] | |||||
Net cash consideration | $ 80,234 | ||||
Contingent purchase price | 4,800 | ||||
Total purchase price allocation | 81,635 | ||||
Maximum contingent purchase price | 8,000 | ||||
Net adjustment to contingent consideration | 3,800 | ||||
Cash acquired during transaction | $ 1,401 | ||||
Escrow account balance | $ 8,000 | ||||
Other long-term liabilities | Huntington Steele, LLC | |||||
Business Acquisition [Line Items] | |||||
Contingent purchase price, noncurrent | 11,690 | ||||
Accrued liabilities | Huntington Steele, LLC | |||||
Business Acquisition [Line Items] | |||||
Contingent purchase price, current | $ 430 |
Business Acquisitions (Purchase
Business Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Apr. 02, 2018 | Jul. 03, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 64,489 | $ 52,990 | $ 0 | ||
Net cash consideration | $ 5,794 | $ 80,234 | $ 0 | ||
Archway | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 1,401 | ||||
Goodwill | 52,990 | ||||
Current assets, net | 2,539 | ||||
Property and equipment | 776 | ||||
Contingent consideration | (4,800) | ||||
Net cash consideration | 80,234 | ||||
Total purchase price allocation | 81,635 | ||||
Archway | Acquired technology | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 13,510 | ||||
Weighted average useful life of acquired intangible assets | 10 years | ||||
Archway | Client relationships | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 10,760 | ||||
Weighted average useful life of acquired intangible assets | 15 years | ||||
Archway | Non-competition agreements | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 3,470 | ||||
Weighted average useful life of acquired intangible assets | 5 years | ||||
Archway | Trade names | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 2,390 | ||||
Weighted average useful life of acquired intangible assets | 7 years | ||||
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 | ||||
Weighted average useful life of acquired intangible assets | 12 years | ||||
Huntington Steele, LLC | Trade names | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 450 | ||||
Weighted average useful life of acquired intangible assets | 7 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Apr. 02, 2018 | Jul. 03, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||||
Goodwill | $ 64,489 | $ 52,990 | $ 0 | ||
Amortization of intangible assets | $ 3,538 | $ 1,552 | |||
Huntington Steele, LLC | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 11,499 | ||||
Archway | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 52,990 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 52,990 | $ 0 |
Business acquisition | 11,499 | 52,990 |
Ending balance | 64,489 | 52,990 |
Investment Managers | ||
Goodwill [Roll Forward] | ||
Beginning balance | 52,990 | 0 |
Business acquisition | 0 | 52,990 |
Ending balance | 52,990 | 52,990 |
Investments In New Businesses | ||
Goodwill [Roll Forward] | ||
Beginning balance | 0 | 0 |
Business acquisition | 11,499 | 0 |
Ending balance | $ 11,499 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 36,760 | $ 30,130 |
Less: Accumulated amortization | (5,090) | (1,552) |
Intangible assets, net | 31,670 | 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 11 months | 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 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Future Amortization Expenses) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated amortization expense in 2019 | $ 3,683 |
Estimated amortization expense in 2020 | 3,683 |
Estimated amortization expense in 2021 | 3,683 |
Estimated amortization expense in 2022 | 3,336 |
Estimated amortization expense in 2023 | $ 2,989 |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | $ 405,057,000 | $ 408,682,000 | $ 404,830,000 | $ 405,598,000 | $ 408,219,000 | $ 386,018,000 | $ 372,331,000 | $ 359,984,000 | $ 1,624,167,000 | $ 1,526,552,000 | $ 1,401,545,000 | |
Deferred contract costs | $ 24,007,000 | $ 0 | 24,007,000 | 0 | ||||||||
Capitalized contract cost, amount capitalized during period | 8,122,000 | |||||||||||
Amortization of deferred contract costs | 2,756,000 | |||||||||||
Capitalized contract cost impairment | 0 | |||||||||||
United States | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 1,348,130,000 | 1,298,381,000 | 1,191,640,000 | |||||||||
United Kingdom | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 168,451,000 | |||||||||||
Canada | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 54,467,000 | |||||||||||
Ireland | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 51,316,000 | |||||||||||
Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 1,803,000 | |||||||||||
Investment management fees from pooled investment products | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 488,330,000 | |||||||||||
Investment management fees from investment management agreements | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 376,707,000 | |||||||||||
Investment operations fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 361,899,000 | |||||||||||
Investment processing fees - PaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 184,587,000 | |||||||||||
Investment processing fees - SaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 145,820,000 | |||||||||||
Professional services fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 23,923,000 | |||||||||||
Account fees and other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 42,901,000 | |||||||||||
Private Banks | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 483,097,000 | 474,272,000 | 457,886,000 | |||||||||
Private Banks | United States | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 304,762,000 | |||||||||||
Private Banks | United Kingdom | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 112,980,000 | |||||||||||
Private Banks | Canada | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 45,941,000 | |||||||||||
Private Banks | Ireland | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 19,414,000 | |||||||||||
Private Banks | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Private Banks | Investment management fees from pooled investment products | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 138,616,000 | |||||||||||
Private Banks | Investment management fees from investment management agreements | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 793,000 | |||||||||||
Private Banks | Investment operations fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 1,517,000 | |||||||||||
Private Banks | Investment processing fees - PaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 182,068,000 | |||||||||||
Private Banks | Investment processing fees - SaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 136,222,000 | |||||||||||
Private Banks | Professional services fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 16,643,000 | |||||||||||
Private Banks | Account fees and other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 7,238,000 | |||||||||||
Investment Advisors | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 399,089,000 | 373,473,000 | 330,677,000 | |||||||||
Investment Advisors | United States | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 399,089,000 | |||||||||||
Investment Advisors | United Kingdom | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investment Advisors | Canada | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investment Advisors | Ireland | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investment Advisors | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investment Advisors | Investment management fees from pooled investment products | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 288,030,000 | |||||||||||
Investment Advisors | Investment management fees from investment management agreements | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 94,526,000 | |||||||||||
Investment Advisors | Investment operations fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investment Advisors | Investment processing fees - PaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investment Advisors | Investment processing fees - SaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investment Advisors | Professional services fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investment Advisors | Account fees and other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 16,533,000 | |||||||||||
Institutional Investors | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 333,299,000 | 322,457,000 | 312,584,000 | |||||||||
Institutional Investors | United States | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 257,080,000 | |||||||||||
Institutional Investors | United Kingdom | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 55,471,000 | |||||||||||
Institutional Investors | Canada | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 8,526,000 | |||||||||||
Institutional Investors | Ireland | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 10,419,000 | |||||||||||
Institutional Investors | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 1,803,000 | |||||||||||
Institutional Investors | Investment management fees from pooled investment products | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 59,739,000 | |||||||||||
Institutional Investors | Investment management fees from investment management agreements | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 271,600,000 | |||||||||||
Institutional Investors | Investment operations fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Institutional Investors | Investment processing fees - PaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Institutional Investors | Investment processing fees - SaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Institutional Investors | Professional services fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Institutional Investors | Account fees and other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 1,960,000 | |||||||||||
Investment Managers | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 398,076,000 | 349,444,000 | 294,390,000 | |||||||||
Investment Managers | United States | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 376,593,000 | |||||||||||
Investment Managers | United Kingdom | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investment Managers | Canada | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investment Managers | Ireland | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 21,483,000 | |||||||||||
Investment Managers | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investment Managers | Investment management fees from pooled investment products | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 928,000 | |||||||||||
Investment Managers | Investment management fees from investment management agreements | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 331,000 | |||||||||||
Investment Managers | Investment operations fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 360,382,000 | |||||||||||
Investment Managers | Investment processing fees - PaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 2,519,000 | |||||||||||
Investment Managers | Investment processing fees - SaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 9,598,000 | |||||||||||
Investment Managers | Professional services fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 7,280,000 | |||||||||||
Investment Managers | Account fees and other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 17,038,000 | |||||||||||
Investments In New Businesses | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 10,606,000 | $ 6,906,000 | $ 6,008,000 | |||||||||
Investments In New Businesses | United States | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 10,606,000 | |||||||||||
Investments In New Businesses | United Kingdom | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investments In New Businesses | Canada | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investments In New Businesses | Ireland | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investments In New Businesses | Other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investments In New Businesses | Investment management fees from pooled investment products | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 1,017,000 | |||||||||||
Investments In New Businesses | Investment management fees from investment management agreements | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 9,457,000 | |||||||||||
Investments In New Businesses | Investment operations fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investments In New Businesses | Investment processing fees - PaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investments In New Businesses | Investment processing fees - SaaS | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investments In New Businesses | Professional services fees | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | 0 | |||||||||||
Investments In New Businesses | Account fees and other | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenues | $ 132,000 | |||||||||||
Retained Earnings | Accounting Standards Update 2014-09 | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Cumulative effect adjustment, before tax | $ 18,641,000 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenues | $ 405,057 | $ 408,682 | $ 404,830 | $ 405,598 | $ 408,219 | $ 386,018 | $ 372,331 | $ 359,984 | $ 1,624,167 | $ 1,526,552 | $ 1,401,545 |
Income before income taxes | 143,599 | 157,595 | 154,254 | 158,758 | 152,452 | 140,769 | 135,158 | 128,660 | $ 614,206 | $ 557,039 | $ 508,485 |
Net income | $ 116,034 | $ 128,319 | $ 121,677 | $ 139,838 | $ 122,144 | $ 101,739 | $ 91,769 | $ 88,737 | |||
Basic earnings per common share (in USD per share) | $ 0.75 | $ 0.82 | $ 0.77 | $ 0.89 | $ 0.78 | $ 0.64 | $ 0.58 | $ 0.56 | $ 3.23 | $ 2.56 | $ 2.07 |
Diluted earnings per common share (in USD per share) | $ 0.73 | $ 0.80 | $ 0.75 | $ 0.86 | $ 0.75 | $ 0.63 | $ 0.57 | $ 0.55 | $ 3.14 | $ 2.49 | $ 2.03 |
Effective income tax rate | 19.20% | 18.60% | 21.10% | 11.90% | 19.90% | 27.70% | 32.10% | 31.00% | 17.60% | 27.40% | 34.30% |
Net tax benefit from enactment of the Tax Act | $ 12,410 | ||||||||||
Net tax benefit from enactment of the Tax Act, per diluted share | $ 0.08 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 695 | $ 523 | $ 649 |
Additions, Charged to Costs and Expenses | 23 | 172 | 0 |
Additions, Charged to Other Accounts | 0 | 0 | 0 |
(Deductions) | 0 | 0 | (126) |
Balance at End of Year | 718 | 695 | 523 |
Deferred income tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 68,469 | 17,922 | 14,548 |
Additions, Charged to Costs and Expenses | 0 | 0 | 0 |
Additions, Charged to Other Accounts | 3,847 | 50,547 | 3,374 |
(Deductions) | 0 | 0 | 0 |
Balance at End of Year | $ 72,316 | $ 68,469 | $ 17,922 |