Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | WESTWOOD HOLDINGS GROUP INC | ||
Entity Central Index Key | 1,165,002 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 427,426,109 | ||
Entity Common Stock, Shares Outstanding | 8,899,174 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 52,449 | $ 54,249 |
Accounts receivable | 18,429 | 21,660 |
Investments, at fair value | 65,781 | 51,324 |
Prepaid Taxes | 349 | 4,269 |
Other current assets | 2,731 | 6,612 |
Total current assets | 139,739 | 138,114 |
Long-term Investments | 5,425 | 0 |
Goodwill | 19,804 | 27,144 |
Deferred income taxes | 5,102 | 3,407 |
Intangible assets, net | 15,961 | 19,804 |
Property and equipment, net of accumulated depreciation of $6,462 and $5,673 | 4,454 | 4,190 |
Assets | 190,485 | 192,659 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 2,518 | 3,501 |
Dividends payable | 7,710 | 7,357 |
Compensation and benefits payable | 15,102 | 19,075 |
Income taxes payable | 365 | 1,598 |
Total current liabilities | 25,695 | 31,531 |
Accrued dividends | 1,576 | 1,717 |
Accrued Income Taxes, Noncurrent | 0 | 1,017 |
Deferred rent | 2,065 | 1,998 |
Total long-term liabilities | 3,641 | 4,732 |
Total liabilities | 29,336 | 36,263 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 10,182,583 and outstanding 8,904,902 shares at December 31, 2018; issued 9,980,827 and outstanding 8,899,587 shares at December 31, 2017 | 102 | 100 |
Additional paid-in capital | 194,116 | 179,241 |
Treasury stock, at cost – 1,277,681 shares at December 31, 2018; 1,081,240 shares at December 31, 2017 | (58,711) | (49,788) |
Foreign currency translation adjustment, net of tax of $(43) and $46 | (4,883) | (1,764) |
Accumulated other comprehensive loss | (4,883) | (1,764) |
Retained earnings | 30,525 | 28,607 |
Total stockholders’ equity | 161,149 | 156,396 |
Total liabilities and stockholders’ equity | $ 190,485 | $ 192,659 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 6,462 | $ 5,673 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 10,182,583 | 9,980,827 |
Common stock, shares outstanding | 8,904,902 | 8,899,587 |
Treasury stock, shares | 1,277,681 | 1,081,240 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Other Revenue, Net | $ 996,000 | $ 1,552,000 | $ 581,000 |
Total revenues | 122,300,000 | 133,785,000 | 123,021,000 |
Expenses: | |||
Employee compensation and benefits | 59,959,000 | 64,955,000 | 61,509,000 |
Sales and marketing | 1,936,000 | 2,042,000 | 1,919,000 |
Westwood mutual funds | 3,808,000 | 3,938,000 | 3,155,000 |
Information technology | 9,103,000 | 7,785,000 | 7,735,000 |
Professional services | 4,783,000 | 5,916,000 | 5,622,000 |
Litigation Settlement, Expense | 0 | 4,009,000 | 0 |
General and administrative | 9,564,000 | 9,652,000 | 9,433,000 |
Foreign Currency Transaction Gain (Loss), before Tax | (2,791,000) | 1,595,000 | (362,000) |
Total expenses | 86,362,000 | 99,892,000 | 89,011,000 |
Operating Income (Loss) | 35,938,000 | 33,893,000 | 34,010,000 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 524,000 | 0 | 0 |
Income (loss) before income taxes | 36,462,000 | 33,893,000 | 34,010,000 |
Provision for income taxes | 9,711,000 | 13,904,000 | 11,363,000 |
Net income | 26,751,000 | 19,989,000 | 22,647,000 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (3,119,000) | 2,523,000 | 401,000 |
Other comprehensive income (loss) | (3,119,000) | 2,523,000 | 401,000 |
Total comprehensive income | $ 23,632,000 | $ 22,512,000 | $ 23,048,000 |
Earnings per share: | |||
Basic (in dollars per share) | $ / shares | $ 3.20 | $ 2.45 | $ 2.84 |
Diluted (in dollars per share) | $ / shares | $ 3.13 | $ 2.38 | $ 2.77 |
Weighted average shares outstanding: | |||
Basic (in shares) | shares | 8,365,360 | 8,147,742 | 7,961,891 |
Diluted (in shares) | shares | 8,547,370 | 8,400,022 | 8,165,475 |
Asset Management [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 89,367,000 | $ 99,201,000 | $ 91,492,000 |
Investment Performance [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 2,984,000 | 1,411,000 | 635,000 |
Fiduciary and Trust [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 28,953,000 | $ 31,621,000 | $ 30,313,000 |
CONSOLIDATED STATEMENTs OF STOC
CONSOLIDATED STATEMENTs OF STOCKHOLDERS' EQUITY - USD ($) | Total | Westwood Holdings Group, Inc. Common Stock, Par | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Woodway Financial AdvisorsAdditional Paid-In Capital |
BALANCE at Dec. 31, 2015 | $ 133,967,000 | $ 94,000 | $ 143,797,000 | $ (34,910,000) | $ (4,688,000) | $ 29,674,000 | |
BALANCE, shares at Dec. 31, 2015 | 8,630,687 | ||||||
Net income | 22,647,000 | 22,647,000 | |||||
Other comprehensive income | 401,000 | 401,000 | |||||
Stock Issued During Period, Value, New Issues | $ 1,000 | ||||||
Issuance of common stock for acquisition, shares | 80,253 | ||||||
Issuance of common stock for acquisition | 3,734,000 | ||||||
Issuance of restricted stock, net of forfeitures | $ 3,000 | (3,000) | |||||
Issuance of restricted stock, net of forfeitures, shares | 296,376 | ||||||
Stock-based compensation expense | 15,954,000 | 15,954,000 | |||||
Reclassification of compensation liability to be paid in shares | 167,000 | 167,000 | $ 3,733,000 | ||||
Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation | (256,000) | (256,000) | |||||
Dividends declared ($2.07 in 2015, $1.82 per share in 2014, $1.64 per share in 2013) | (20,440,000) | (20,440,000) | |||||
Purchases of treasury stock | (6,248,000) | (6,248,000) | |||||
Purchases of treasury stock, shares | (128,026) | ||||||
Issuance of treasury stock under employee stock plans, shares | 20,375 | ||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (662,000) | 662,000 | |||||
Restricted stock returned for payment of taxes | (3,857,000) | (3,857,000) | |||||
Restricted stock returned for payment of taxes, shares | (80,963) | ||||||
BALANCE at Dec. 31, 2016 | 146,069,000 | $ 98,000 | 162,730,000 | (44,353,000) | (4,287,000) | 31,881,000 | |
BALANCE, shares at Dec. 31, 2016 | 8,810,375 | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 711,000 | (711,000) | |||||
Net income | 19,989,000 | 19,989,000 | |||||
Other comprehensive income | 2,523,000 | 2,523,000 | |||||
Issuance of restricted stock, net of forfeitures | $ 2,000 | (2,000) | |||||
Issuance of restricted stock, net of forfeitures, shares | 178,889 | ||||||
Stock-based compensation expense | 16,430,000 | 16,430,000 | |||||
Reclassification of compensation liability to be paid in shares | 591,000 | 591,000 | |||||
Dividends declared ($2.07 in 2015, $1.82 per share in 2014, $1.64 per share in 2013) | (22,552,000) | (22,552,000) | |||||
Purchases of treasury stock | (1,326,000) | (1,326,000) | |||||
Purchases of treasury stock, shares | (23,822) | ||||||
Issuance of treasury stock under employee stock plans, shares | 22,091 | ||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (1,219,000) | 1,219,000 | |||||
Restricted stock returned for payment of taxes | (5,328,000) | (5,328,000) | |||||
Restricted stock returned for payment of taxes, shares | (87,946) | ||||||
BALANCE at Dec. 31, 2017 | $ 156,396,000 | $ 100,000 | 179,241,000 | (49,788,000) | (1,764,000) | 28,607,000 | |
BALANCE, shares at Dec. 31, 2017 | 8,899,587 | 8,899,587 | |||||
Net income | $ 26,751,000 | ||||||
Other comprehensive income | (3,119,000) | ||||||
Issuance of restricted stock, net of forfeitures | $ 2,000 | (2,000) | |||||
Issuance of restricted stock, net of forfeitures, shares | 201,756 | ||||||
Stock-based compensation expense | 15,283,000 | 15,283,000 | |||||
Reclassification of compensation liability to be paid in shares | 165,000 | 165,000 | |||||
Dividends declared ($2.07 in 2015, $1.82 per share in 2014, $1.64 per share in 2013) | (24,833,000) | (24,833,000) | |||||
Purchases of treasury stock | (4,726,000) | (4,726,000) | |||||
Purchases of treasury stock, shares | (121,320) | ||||||
Issuance of treasury stock under employee stock plans, shares | 10,327 | ||||||
Issuance of treasury stock under employee stock plans | (571,000) | 571,000 | |||||
Restricted stock returned for payment of taxes | (4,768,000) | (4,768,000) | |||||
Restricted stock returned for payment of taxes, shares | (85,448) | ||||||
BALANCE at Dec. 31, 2018 | $ 161,149,000 | $ 102,000 | $ 194,116,000 | $ (58,711,000) | $ (4,883,000) | $ 30,525,000 | |
BALANCE, shares at Dec. 31, 2018 | 8,904,902 | 8,904,902 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared, per share | $ 2.76 | $ 2.54 | $ 2.33 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 26,751 | $ 19,989 | $ 22,647 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 867 | 1,044 | 969 |
Amortization of intangible assets | 1,672 | 1,872 | 1,960 |
Unrealized (gains) losses on trading investments | 737 | (617) | (510) |
Stock-based compensation expense | 15,283 | 16,430 | 15,954 |
Deferred income taxes | (1,749) | 7,542 | 149 |
Excess tax benefits from stock-based compensation | 0 | 0 | (165) |
Gain on sale of operations | (524) | 0 | 0 |
Gain on sale of operations | 0 | 0 | 269 |
Changes in operating assets and liabilities: | |||
Net (purchases) sales of investments – trading securities | (15,194) | 5,778 | 16,345 |
Accounts receivable | 2,678 | 2,161 | (3,493) |
Other current assets | 3,755 | (4,234) | 567 |
Accounts payable and accrued liabilities | (644) | 763 | (926) |
Compensation and benefits payable | (3,636) | 2,262 | (2,848) |
Income taxes payable | 1,643 | (4,816) | (3,655) |
Other liabilities | (155) | (165) | 129 |
Net cash provided by operating activities | 31,484 | 48,009 | 47,392 |
Cash flows from investing activities: | |||
Purchases of property, equipment and other | (991) | (1,167) | (1,819) |
Proceeds from Divestiture of Businesses | 10,013 | 0 | 0 |
Payments to Acquire Investments | (5,425) | 0 | 0 |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 0 | 9 |
Net cash provided by (used in) investing activities | 3,597 | (1,167) | (1,810) |
Cash flows from financing activities: | |||
Purchases of treasury stock | (4,000) | 0 | (5,634) |
Payment for Repurchases of Stock for Benefit Plan | (726) | (1,326) | (614) |
Restricted stock returned for payment of taxes | (4,768) | (5,328) | (3,857) |
Excess tax benefits from stock-based compensation | 0 | 0 | 165 |
Other Payments to Acquire Businesses | 0 | 0 | (5,562) |
Cash dividends paid | (24,621) | (21,923) | (19,442) |
Net cash used in financing activities | (34,115) | (28,577) | (34,944) |
Effect of currency rate changes on cash | (2,766) | 2,305 | 301 |
Net increase (decrease) in cash and cash equivalents | (1,800) | 20,570 | 10,939 |
Cash and cash equivalents, beginning of year | 54,249 | 33,679 | 22,740 |
Cash and cash equivalents, end of year | 52,449 | 54,249 | 33,679 |
Supplemental cash flow information: | |||
Cash paid during the year for income taxes | 9,766 | 10,770 | 14,860 |
Common stock issued for acquisition | 0 | 0 | 3,734 |
Accrued dividends | 9,286 | 9,074 | 8,446 |
Noncash Tenant Improvements | 237 | 0 | 1,236 |
Non Cash Accrued PP&E | $ 0 | $ 69 | $ 0 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS | DESCRIPTION OF THE BUSINESS: Westwood Holdings Group, Inc. (“Westwood”, “the Company”, “we”, “us” or “our”) was incorporated under the laws of the State of Delaware on December 12, 2001 . Westwood manages investment assets and provides services for its clients through its wholly-owned subsidiaries, Westwood Management Corp. and Westwood Advisors, L.L.C. (each of which is an SEC registered investment adviser and referred to hereinafter together as “Westwood Management”), Westwood Trust and Westwood International Advisors Inc. (“Westwood International Advisors”). Westwood Management and Westwood International Advisors provide investment advisory services to institutional clients, a family of mutual funds called the Westwood Funds®, other mutual funds, an Irish investment company authorized pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulation 2011 (as amended) (“the UCITS Fund”), individuals and clients of Westwood Trust. Westwood Trust provides trust and custodial services and participation in self-sponsored common trust funds (“CTFs”) to institutions and high net worth individuals. Revenue is largely dependent on the total value and composition of assets under management (“AUM”). Accordingly, fluctuations in financial markets and in the composition of AUM impact our revenues and results of operations. Westwood Management is a registered investment adviser under the Investment Advisers Act of 1940. Westwood Trust is chartered and regulated by the Texas Department of Banking. Westwood International Advisors is registered as a portfolio manager and exempt market dealer with the Ontario Securities Commission and the Autorité des marchés financiers in Québec. Divestiture of our Omaha Operations On September 6, 2017, we entered into an agreement to sell the Omaha-based component of our Wealth Management business. The sale closed on January 12, 2018. We received proceeds of $10.0 million , net of working capital requirements, and recorded a $524,000 gain on the sale, which is included as “Gain on sale of operations” on our Consolidated Statement of Comprehensive Income. The sale reduced our goodwill and intangible assets, but did not have a material impact on our Consolidated Balance Sheets. The following table presents cash proceeds received and net assets sold (in thousands): Cash Proceeds $ 10,013 Net assets sold: Accounts receivable 99 Other current assets 112 Goodwill 7,340 Intangible assets, net 2,170 Property and equipment, net 18 Accounts payable and accrued liabilities (241 ) Other liabilities (9 ) Gain on sale of operations $ 524 The component is reported within both our Advisory and Trust segments. The sale did not represent a major strategic shift in our business and did not qualify for discontinued operations reporting. |
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: Basis of Presentation and Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of Westwood and its subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. In the current year, we created a new expense item on the Consolidated Statements of Comprehensive Income for (Gain) loss on foreign currency transactions, which was previously included in "General and Administrative" expense. Prior year financial statements were reclassified to conform to this presentation. These reclassifications had no impact on net income, stockholders’ equity or cash flows as previously reported. We assess each legal entity that we manage to determine whether consolidation is appropriate at the onset of the relationship. We first determine whether the entity is a variable interest entity (“VIE”), or a voting interest entity (“VOE”), under U.S. generally accepted accounting principles (“GAAP”) and whether we have a controlling financial interest in the entity. Assessing whether or not an entity is a VOE or VIE and if it requires consolidation involves judgment and analysis. Factors considered in this assessment include, but are not limited to, the legal organization of the entity, our equity ownership and contractual involvement with the entity and any related party or de facto agent implications of our involvement with the entity. We reconsider whether entities are a VIE or VOE whenever contractual arrangements change, the entity receives additional equity or returns equity to its investors or changes in facts and circumstances occur that change the investors’ abilities to direct the activities of the entity. A VIE is an entity in which (i) the total equity investment at risk is not sufficient to enable the entity to finance its activities without subordinated financial support, (ii) the at-risk equity holders, as a group, lack the characteristics of a controlling financial interest or (iii) the entity is structured with disproportionate voting rights, and substantially all of the activities are conducted on behalf of an investor with disproportionately few voting rights. That is, the at-risk equity holders do not have the obligation to absorb significant losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity’s economic performance. An enterprise must consolidate all VIEs of which it is the primary beneficiary. We determine if a sponsored investment meets the definition of a VIE by considering whether the fund’s equity investment at risk is sufficient to finance its activities without additional subordinated financial support and whether the fund’s at-risk equity holders absorb any losses, have the right to receive residual returns and have the right to direct the activities of the entity most responsible for the entity’s economic performance. The primary beneficiary of a VIE is defined as the party that, considering the involvement of related parties and de facto agents, has (i) the power to direct the activities of the VIE that most significantly affect its economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. This evaluation is updated continuously. A VOE is an entity that is outside the scope of the guidance for VIEs. Consolidation of a VOE is required when a reporting entity owns a controlling financial interest in a VOE. Ownership of a majority of the voting interests is the usual condition for a controlling financial interest. We have evaluated (i) our advisory relationships with Westwood Investment Funds PLC (the “UCITS Fund”) and the Westwood Funds®, (ii) our relationship as sponsor of the Common Trust Funds (“CTFs”) and managing member of the private equity funds Westwood Hospitality Fund I, LLC and Westwood Technology Fund LP (collectively the “Private Equity Funds”) and (iii) the private company discussed in Note 3 “Investments” (“Private Equity”) to determine whether each of these entities is a variable interest entity (“VIE”) or voting ownership entity (“VOE”). Based on our analysis, we determined that the CTFs and Private Equity Funds were VIEs, as the at-risk equity holders do not have the ability to direct the activities that most significantly impact the entity’s economic performance, and the Company and its representatives have a majority control of the entities' respective boards of directors and can influence the respective entities' management and affairs. Prior to the sale of our Omaha-based operations, we also considered our advisory relationship with ten limited liability companies (“LLCs”) as VIEs, but as of December 31, 2018 , we no longer serve as the managing member of the funds and do not control the activities that most significantly impact the entities' economic performance. Therefore these LLCs are no longer considered VIEs. Although we have related parties on the UCITS Fund board of directors, the shareholders have rights to remove the current directors by a simple majority vote and so we determined that the UCITS Fund is not a VIE. As the Company and its representatives do not have representation on the Westwood Funds® or the Private Equity independent boards of directors, which direct the activities that most significantly impact the entities' economic performance, we determined that the Westwood Funds® and the Private Equity were not VIEs. Therefore, the UCITS Fund, Westwood Funds® and Private Equity should be analyzed under the VOE consolidation method. Based on our analysis of our investments in these entities for the periods ending December 31, 2018 and 2017 , we have not consolidated the CTFs, Private Equity Funds or LLCs under the VIE method or the UCITS Fund, Westwood Funds® or Private Equity under the VOE method, and therefore the financial results of these entities are not included in the Company’s consolidated financial results. We have included the disclosures related to VIEs and VOEs in Note 12 “Variable Interest Entities.” Use of Estimates The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of money market accounts and other short-term, highly liquid investments with maturities of three months or less, other than pooled investment vehicles that are considered investments. We maintain some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. The Company has not experienced losses on uninsured cash accounts. Accounts Receivable Accounts receivable represents balances arising from services provided to customers and are recorded on an accrual basis, net of any allowance for doubtful accounts. Accounts receivable are written off when they are determined to be uncollectible. Any allowance for doubtful accounts is estimated based on the Company’s historical amounts written off, existing conditions in the industry, and the financial stability of the customer. The majority of our accounts receivable balances consist of advisory and trust fees receivable from customers that we believe and have experienced to be fully collectible. Accordingly, our Consolidated Financial Statements do not include an allowance for bad debt nor any bad debt expense. Investments Investments measured at fair market value are classified as trading securities and are carried at quoted market values on the accompanying Consolidated Balance Sheets. Net unrealized holding gains or losses on investments classified as trading securities are reflected as a component of other revenues. We measure realized gains and losses on investments using the specific identification method. For an investment without a readily determinable fair value, the Company has elected to apply the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes. The Company will reassess whether such an investment qualifies for the measurement alternative at each reporting period. In evaluating an investment for impairment or observable price changes, we will use inputs including recent financing events, as well as other available information regarding the investee's historical and forecasted performance. Fair Value of Financial Instruments We determined the estimated fair values of our financial instruments using available information. The fair value amounts discussed in Notes 3 “Investments” and 4 “Fair Value of Financial Instruments” are not necessarily indicative of either the amounts realizable upon disposition of these instruments or of our intent or ability to dispose of these assets. The estimated fair value of cash and cash equivalents, accounts receivable, prepaid income taxes, other current assets, accounts payable and accrued liabilities, dividends payable, compensation and benefits payable and income taxes payable approximates their carrying value due to their short-term maturities. The carrying amount of investments designated as “trading” securities, primarily U.S. Government and Government agency obligations, money market funds, Westwood Funds® mutual funds, the UCITS Fund and Westwood Trust common trust fund shares, equals fair value based on prices quoted in active markets and, with respect to funds, the reported net asset value (“NAV”) of the shares held. Market values of our money market holdings generally do not fluctuate. Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying identifiable assets at the date of acquisition. Goodwill is not amortized but is tested at least annually for impairment. We test more frequently if indicators are present or changes in circumstances suggest that impairment may exist. These indicators include declines in revenues, earnings or cash flows, or the development of a material adverse change in the business climate. We assess goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. We have identified two reporting units, which are consistent with our reporting segments: Advisory and Trust. The Company is not required to calculate the fair value of a reporting unit unless we determine that it is more likely than not that its fair value is less than the carrying amount. We assess goodwill for impairment using either a qualitative or quantitative assessment. The qualitative assessment includes consideration of the current trends in the industry in which we operate, macroeconomic conditions, recent financial performance of our reporting units and a market multiple approach valuation. In performing the annual impairment test during the third quarter, or more frequently when impairment indicators exist, and after assessing the qualitative factors, we may be required to utilize the two-step approach prescribed by ASC 350, Goodwill and Other Intangible Assets. We may also elect to skip the qualitative assessment and proceed directly to the quantitative analysis. The quantitative analysis requires a comparison of each reporting unit’s carrying value to the fair value of the respective unit. If the carrying value exceeds the fair value, an impairment loss is measured by reducing the goodwill to the fair market value. The fair value of each reporting unit is estimated, entirely or predominantly, using a market multiple approach. During the third quarter of 2018 we completed our annual goodwill impairment assessment and determined that no impairment loss was required. No impairments were recorded during any of the periods presented. Our intangible assets represent the acquisition date fair value of the acquired client relationships, trade names and non-compete agreements, as well as the cost of internally-developed software, each of which is reflected net of amortization. In valuing these assets, we made significant estimates regarding their useful lives, growth rates and potential attrition. We periodically review our intangible assets for events or circumstances that would indicate impairment. See Note 5 “Goodwill and Other Intangible Assets.” Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of furniture and equipment is provided over the estimated useful lives of the assets (from 3 to 7 years ), and depreciation on leasehold improvements is provided over the lesser of the estimated useful life or lease term using the straight-line method. We capitalize leasehold improvements, furniture and fixtures, computer hardware and most office equipment purchases. Revenue Recognition Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and Trust fees are calculated based on a percentage of assets under management and the performance obligation is realized over the then-current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment. Incremental costs to obtain a contract under the new guidance is eligible to be capitalized if the cost is expected to be recovered over the service period. We incur certain incremental costs in obtaining new Trust business and continually evaluate whether costs should be capitalized and amortized over the expected period of benefit of the asset. Certain costs used to fulfill a contract such as the distribution services utilized to sell our Westwood Funds® are expensed as incurred. We have elected the practical expedient that allows an entity to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Stock-Based Compensation We have issued restricted stock to our U.S. employees and Board of Directors in accordance with our Fifth Amended and Restated Westwood Holdings Group, Inc. Stock Incentive Plan (the “Plan”). We account for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation and adopted Accounting Standards Update (“ASU”) 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting effective January 1, 2017. Under ASC 718, stock-based compensation expense reflects the fair value of stock-based awards measured at grant date and is recognized over the relevant service period. We expense the fair value of stock-based compensation awards granted to our employees and directors in our Consolidated Financial Statements on a straight-line basis over the period that services are required to be provided in exchange for the award (“requisite service period”), which is typically the period over which the award vests. Stock-based compensation is recognized only for awards that vest. We measure the fair value of compensation cost related to restricted stock awards based on the closing market price of our common stock on the grant date. For performance-based share awards, we assess actual performance versus the predetermined performance goals and record compensation expense once we conclude it is probable that we will meet the performance goals required to vest the applicable performance-based awards. The following summarizes the effects of the adoption of ASU 2016-09 on our Consolidated Financial Statements: Income Taxes - Upon adoption of this standard, all excess tax benefits and tax deficiencies, including tax benefits of dividends on share-based payment awards, are recognized as income tax expense or benefit in the Consolidated Statement of Comprehensive Income. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. As a result, the Company recognized discrete adjustments to income tax expense of $1.0 million in 2017 related to excess tax benefits, decreasing our effective tax rate for 2017 by 2.9% . Without the adjustment, our effective tax rate would have been 43.9% . The Company did not have any unrecognized excess tax benefits as of December 31, 2016 and therefore there was no cumulative-effect adjustment to retained earnings related to income taxes. The Company adopted the amendments related to the recognition of excess tax benefits and tax shortfalls prospectively, with no adjustments made to prior periods. Forfeitures - Prior to adoption, stock-based compensation expense was recognized on a straight-line basis, net of estimated forfeitures, such that expense was recognized for stock-based awards that were expected to vest. A forfeiture rate was estimated annually and revised, if necessary, in subsequent periods if actual forfeitures differed from initial estimates. Upon adoption of this standard, the Company no longer applies an estimated forfeiture rate and instead accounts for forfeitures as they occur. The Company applied the modified retrospective adoption approach, resulting in a $711,000 cumulative-effect reduction to “Retained earnings” with the offset to “Additional paid-in-capital” on January 1, 2017. Statements of Cash Flows - The Company historically accounted for excess tax benefits on the Consolidated Statements of Cash Flows as a financing activity. Upon adoption of this standard, excess tax benefits are classified along with other income tax cash flows as an operating activity. The change in cash flow classification associated with excess tax benefits was adopted prospectively, resulting in the classification of the $1.0 million excess tax benefit as an operating activity during the twelve months ended December 31, 2017. No change in classification was necessary for the presentation of restricted stock returned for payment of taxes, as the Company has historically presented such payments as a financing activity. The Company adopted this portion of the standard on a prospective basis, with no adjustments made to prior periods. Earnings Per Share - The Company uses the treasury stock method to compute diluted earnings per share, unless the effect would be anti-dilutive. Under the new standard, the Company is no longer required to estimate the tax effect of anticipated windfall benefits or shortfalls when projecting proceeds available for share repurchases in calculating dilutive shares. The Company utilized the modified retrospective adoption approach, with no adjustments made to prior periods. The Share Award Plan of Westwood Holdings Group, Inc. for Service Provided in Canada to its Subsidiaries (the “Canadian Plan”) provides compensation in the form of common stock for services performed by employees of Westwood International Advisors. We record compensation costs for these awards on a straight-line basis over the vesting period once we determine it is probable that the award will be earned. Awards expected to be settled in shares are funded into a trust pursuant to an established Canadian employee benefit plan. Generally, the Canadian trust subsequently acquires Westwood common shares in market transactions and holds such shares until the shares are vested and distributed, or forfeited. Shares held in the trust are shown on our Consolidated Balance Sheet as treasury shares. Until shares are acquired by the trust, we record compensation costs and measure the liability as a cash-based award, which is included in “Compensation and benefits payable” on our Consolidated Balance Sheets. For the years ended December 31, 2018 , 2017 and 2016 , the compensation expense recorded for these awards was $147,000 , $232,000 and $524,000 , respectively. When the number of shares related to an award is determinable, the award becomes an equity award accounted for in a manner similar to restricted stock, which is described in Note 10 “Employee Benefits.” Currency Translation and Re-measurement Assets and liabilities of Westwood International Advisors, our non-U.S. dollar functional currency subsidiary, are translated at exchange rates as of applicable reporting dates. The gains and losses resulting from translating non-U.S. dollar functional currency into U.S. dollars are recorded through other comprehensive income. Revenue and expense transactions are recorded at the rates of exchange prevailing on the dates of the transactions. Gains and losses resulting from transactions in foreign currencies are included in “(Gain) loss on foreign currency transactions” in our Consolidated Statements of Comprehensive Income. For the years ended December 31, 2018 and 2016, we recorded a gain of $2.8 million and $362,000 , respectively. For the year ended December 31, 2017, we recorded a loss of $1.6 million . Income Taxes We file a United States federal income tax return as a consolidated group for Westwood and its subsidiaries based in the United States. We file a Canadian income tax return for Westwood International Advisors. Deferred income tax assets and liabilities are determined based on temporary differences between the financial statements and income tax bases of assets and liabilities as measured at enacted income tax rates. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law. Further information on the tax impacts of the Tax Reform Act is included in Note 7 “Income Taxes.” Deferred income tax expense is generally the result of changes in deferred tax assets and liabilities. Deferred taxes relate primarily to incentive compensation and stock-based compensation expense. We record net deferred tax assets to the extent we believe such assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event we were to determine that we would not be able to realize our deferred income tax assets in the future, we would record a valuation allowance. No such valuation allowance has been recorded in our Consolidated Financial Statements. We account for uncertain tax positions by recognizing the impact of a tax position in our Consolidated Financial Statements when we believe it is more likely than not that the tax position would not be sustained upon examination by the appropriate tax authority based on the merits of the position. We include penalties and interest on income-based taxes, if any, in the “General and administrative” line on our Consolidated Statements of Comprehensive Income. See Note 7 “Income Taxes.” Business Combinations In allocating the purchase price of a business combination, the Company records all assets acquired and liabilities assumed at fair value, with the excess of the purchase price over the aggregate fair values recorded as goodwill. ASC 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values as of the date of acquisition. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and estimates made by management. The fair value assigned to identifiable intangible assets acquired is based on estimates and assumptions made by management at the time of the acquisition. The Company adjusts the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as it obtains more information as to facts and circumstances existing as of the acquisition date. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. The acquired customer accounts, trade names and non-compete agreements are subject to fair value measurements based primarily on significant inputs not observable in the market and thus represent level 3 measurements. The valuation of an acquired customer list utilizes an income approach, which provides an estimate of the fair value of an asset based on discounted cash flows and management estimates, including the estimated growth associated with existing clients, market growth and client attrition. The valuation of acquired trade names uses a relief-from-royalty method in which the fair value of the intangible asset is estimated to be the present value of royalties saved because the Company owns the intangible asset. Revenue projections and estimated useful lives are used in estimating the fair value of the trade names. The non-compete agreements are calculated using the with-or-without method, which utilizes the probability of these employees competing with the Company and revenue projections to calculate the valuation of non-compete agreements. When an acquisition includes future contingent consideration on achieving certain annualized revenue from the post-closing acquired business over a specified time period, the Company estimates the fair value of the earn-out using overall revenue growth projections combined with lost revenue projections from existing customer base, both discounted and probability-weighted. A liability is recorded for the estimated fair value of the contingent consideration on the acquisition date, and the fair value of the contingent consideration is remeasured at each subsequent reporting period, with any change in fair value recognized as income or expense within the Consolidated Statement of Comprehensive Income. Recent Accounting Pronouncements Recently Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , which resulted from a joint project by the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”). The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Retrospective application is required, with the entity either applying the change to each prior reporting period presented or applying the cumulative effect of each prior reporting period presented at the date of initial application. On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606 while prior period amounts continue to be reported in accordance with our historic accounting under Topic 605. We analyzed the revenue from prior periods and determined no material adjustments to opening retained earnings were necessary as the updated guidance is consistent with our historical revenue recognition methodology. See further discussion in Note 9 “Revenue.” In March 2018, the FASB issued ASU 2018-05, Income Taxes: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (“Tax Reform Act”). See further discussion in Note 7 “Income Taxes.” Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases at the commencement date, excluding short-term leases. Leases will be classified as either financing or operating, with classification impacting the pattern of expense recognition in the income statement. The amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We will adopt the standard as of January 1, 2019 under the modified retrospective approach, which allows for recording the cumulative effect of the adoption of the standard as an adjustment to beginning retained earnings. We will elect the package of practical expedients permitted under the transition guidance, which among other things, allows us to carry forward the historical lease classification and elect hindsight to determine certain lease terms for existing leases. We have evaluated our population of contracts subject to balance sheet recognition and estimate adoption will result in recognition of additional lease assets and net lease liabilities of approximately $9 million as of January 1, 2019 primarily related to the future minimum payments required under operating leases as disclosed in Note 14 “Commitments and Contingencies”. The insignificant difference in the additional lease assets and net lease liabilities will be recorded as an adjustment to beginning retained earnings. We do not believe the standard will materially impact our Consolidated Statements of Comprehensive Income or Consolidated Statements of Cash Flows. Beginning with our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, we will add disclosures surrounding our leases, including lease cost disaggregation, weighted average remaining lease terms and weighted average discount rate used to determine our lease assets and liabilities. We have also analyzed our current business process and internal controls and anticipate implementing new procedures to successfully adopt the standard, particularly for identification of leases and evaluation of the discount rate. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The purpose of this amendment is to simplify the accounting for share-based payments granted to nonemployees for goods and services by aligning it with the accounting used for arrangements with employees. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We do not expect the amendment to have a material impact on our Consolidated Financial Statements, and we plan to adopt the standard within the required time frame. 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 . The purpose of this amendment is to modify, remove and add certain disclosure requirements for fair value measurements. Under ASU 2018-13, entities are required to disclose the amount of total gains or losses recognized in other comprehensive income attributable to assets and liabilities categorized within Level 3 of the fair value hierarchy. The ASU also adds an incremental requirement about significant unobservable inputs for Level 3 fair value measurements. The requirement to disclose reasons for transfers between Level 1 and Level 2 was removed. Various requirements for Level 3 disclosure were also modified. The amendments in this ASU are effective for all entities for fiscal years and interim periods beginning after December 15, 2019. We do not expect the amendment to have a material impact on our Consolidated Financial Statements, and we plan to adopt this amendment within the required time frame. In August 2018, the FASB issued ASU 2018-15, Intangibles- Goodwill and Other - Internal-Use Software (Topic 350): Customer's Ac |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS: In May 2018, we entered into a strategic agreement to invest $5.0 million in an equity position of a private company and committed to purchase an additional $5.0 million of equity securities. We offered this investment opportunity to our current and prospective clients, members of our Board of Directors and employees and agreed to cover any shortfall if these parties did not invest the full $5.0 million , which led to our investing an additional $425,000 in August 2018. Our $5.4 million investment is included in “Investments” on our Consolidated Balance Sheets. This investment represents a private company without a readily determinable fair value. The Company has elected to apply the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes. As of December 31, 2018, there were no observable price changes or indicators of impairment for this investment. All other investments are carried at fair value on a recurring basis and are accounted for as trading securities. Trading securities are presented in the table below (in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2018: U.S. Government and Government agency obligations $ 48,177 $ 232 $ — $ 48,409 Money market funds 10,354 — — 10,354 Equity funds 7,344 — (326 ) 7,018 Total trading securities $ 65,875 $ 232 $ (326 ) $ 65,781 December 31, 2017: U.S. Government and Government agency obligations $ 29,367 $ 21 $ (15 ) $ 29,373 Money market funds 9,736 — — 9,736 Equity funds 11,578 657 (20 ) 12,215 Total trading securities $ 50,681 $ 678 $ (35 ) $ 51,324 The following amounts, except for income tax amounts, are included in our Consolidated Statements of Comprehensive Income under the heading “Other revenues” for the years indicated (in thousands): 2018 2017 2016 Realized gains $ 920 $ 395 $ 113 Realized losses (121 ) (96 ) (220 ) Net realized gains (losses) $ 799 $ 299 $ (107 ) Income tax expense (benefit) from gains (losses) $ 168 $ 105 $ (37 ) Interest income – trading $ 620 $ 334 $ 282 Dividend income $ 290 $ 302 $ 265 Unrealized gains/(losses) $ (737 ) $ 617 $ 510 As of December 31, 2018 and 2017 , $6.1 million and $10.7 million in corporate funds, respectively, were invested in the Westwood Funds®, Westwood Common Trust Funds and the UCITS fund, which are included in “Investments, at fair value” on our Consolidated Balance Sheets. See Note 12 “Variable Interest Entities. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS: ASC 820, Fair Value Measurements , defines fair value, establishes a framework for measuring fair value and requires additional disclosures regarding certain fair value measurements. ASC 820 establishes a three-tier hierarchy for measuring fair value, as follows: • Level 1 – quoted market prices in active markets for identical assets and liabilities • Level 2 – inputs other than quoted prices that are directly or indirectly observable • Level 3 – unobservable inputs where there is little or no market activity Our strategic investment in a private company discussed in Note 3 “Investments” is excluded from the recurring fair value table shown below, as we have elected to apply the measurement alternative for this investment. The following table summarizes the values of our assets and liabilities as of the dates indicated within the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Investments Measured at NAV (1) Total As of December 31, 2018 Investments in trading securities $ 65,781 $ — $ — $ — $ 65,781 Total assets measured at fair value $ 65,781 $ — $ — $ — $ 65,781 As of December 31, 2017 Investments in trading securities $ 48,998 $ — $ — $ 2,326 $ 51,324 Total assets measured at fair value $ 48,998 $ — $ — $ 2,326 $ 51,324 (1) Comprised of certain investments measured at fair value using NAV as a practical expedient. These investments were recategorized and are no longer included within Level 2 of the valuation hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in our Consolidated Balance Sheets. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS: Goodwill Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying identifiable assets at the date of acquisition. Changes in goodwill are as follows (in thousands): As of December 31, 2018 2017 Beginning balance $ 27,144 $ 27,144 Omaha divestiture (7,340 ) — Ending balance $ 19,804 $ 27,144 Goodwill is not amortized but is tested for impairment at least annually. We completed our annual goodwill impairment assessment during the third quarter of 2018 and determined that no impairment loss was required. No impairments were recorded during the years ended December 31, 2018 , 2017 or 2016 . Other Intangible Assets Our intangible assets represent the acquisition date fair value of acquired client relationships, trade names, non-compete agreements and internally-developed software and are reflected net of amortization. In valuing these assets, we made significant estimates regarding their useful lives, growth rates and potential attrition. The sale of the Omaha-based component of our wealth management business closed in the first quarter of 2018. The following table represents the reduction in our intangible assets related to the sale (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Sold Client relationships $ 3,965 $ (1,795 ) $ 2,170 Trade names 234 (234 ) — Non-compete agreements 24 (24 ) — $ 4,223 $ (2,053 ) $ 2,170 The following is a summary of intangible assets at December 31, 2018 and 2017 (in thousands, except years): Weighted Average Amortization Period (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount 2018 Client relationships 14.8 $ 21,431 $ (5,960 ) $ 15,471 Trade names 4.9 708 (537 ) 171 Non-compete agreements 3.0 259 (259 ) — Internally developed software 7.0 418 (99 ) 319 $ 22,816 $ (6,855 ) $ 15,961 2017 Client relationships 14.8 $ 25,396 $ (6,302 ) $ 19,094 Trade names 4.2 942 (633 ) 309 Non-compete agreements 2.9 283 (262 ) 21 Internally developed software 7.0 418 (38 ) 380 $ 27,039 $ (7,235 ) $ 19,804 Amortization expense, which is included in “General and administrative” expense on our Consolidated Statements of Comprehensive Income, was $1.7 million , $1.9 million and $2.0 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Estimated amortization expense for intangible assets over the next five years is as follows (in thousands): Estimated Amortization Expense For the year ending December 31, 2019 $ 1,651 2020 $ 1,530 2021 $ 1,419 2022 $ 1,419 2023 $ 1,400 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS: Property and Equipment The following table reflects information about our property and equipment as of December 31, 2018 and 2017 (in thousands): As of December 31, 2018 2017 Leasehold improvements $ 4,714 $ 4,170 Furniture and fixtures 2,716 2,243 Computer hardware and office equipment 2,996 2,745 Construction in progress 490 705 Accumulated depreciation (6,462 ) (5,673 ) Property and equipment, net $ 4,454 $ 4,190 Stockholders' Equity Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss were as follows (in thousands): As of December 31, 2018 2017 Foreign currency translation adjustment, net of tax of $(43) and $46 $ (4,883 ) $ (1,764 ) Accumulated other comprehensive loss $ (4,883 ) $ (1,764 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: Tax Reform Act On December 22, 2017, the Tax Reform Act was signed into law. The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates and creating a territorial tax system with a one-time mandatory deemed repatriation tax on previously deferred earnings of foreign subsidiaries. The Tax Reform Act reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. As a result of the decrease in the corporate income tax rate, we revalued our ending net deferred tax assets at December 31, 2017 and recognized an incremental $1.6 million income tax expense in 2017. We had an estimated $33 million of undistributed earnings and profits (“E&P”) in our foreign subsidiary, Westwood International Advisors, subject to the one-time mandatory deemed repatriation, for which we recognized an incremental $1.8 million income tax expense in 2017. Of this amount, we originally expected $1.1 million to be payable over eight years, of which $1.0 million was included in “Noncurrent income taxes payable” on our Consolidated Balance Sheets for the year ended December 31, 2017. The remaining $88,000 was netted in our “Prepaid income taxes” on our Consolidated Balance Sheets for the year ended December 31, 2017, as our U.S. federal tax balance was in a receivable position. In the second quarter of 2018, additional guidance on the Tax Reform Act required any 2017 federal tax overpayments be applied to mandatory repatriation liabilities before applying to 2018 estimated tax payments. Accordingly, the Company utilized the overpayment of federal estimated taxes to pay the additional U.S. federal cash taxes of $1.8 million during the year ended December 31, 2018. We completed the accounting for our 2017 U.S. corporate income tax return in the third quarter of 2018 and made no significant changes to the amounts provisionally recognized. While the Tax Reform Act provides for a territorial tax system, beginning in 2018, it includes two new U.S. tax base erosion provisions, the global intangible low-taxed income (“GILTI”) provisions and the base-erosion and anti-abuse tax (“BEAT”) provisions. The GILTI provisions require the Company to include in its U.S. income tax return any foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. We had no U.S. tax liability on GILTI for the year ended December 31, 2018. We have elected to account for GILTI tax expense in the period in which it is incurred, and therefore have not provided any deferred tax impacts of GILTI in our Consolidated Financial Statements for the years ended December 31, 2018 and 2017. The BEAT provisions in the Tax Reform Act eliminate the deduction of certain base-erosion payments made to related foreign corporations and impose a minimum tax if the re-calculated taxable income under BEAT is greater than regular taxable income. We do not expect to be subject to this tax and therefore have not included any tax impacts of BEAT in our Consolidated Financial Statements for the years ended December 31, 2018 and 2017. Income Tax Provision Income before income taxes by jurisdiction is as follows (in thousands): Years ended December 31, 2018 2017 2016 United States $ 21,250 $ 17,531 $ 21,539 Canada 15,212 16,362 12,471 Total $ 36,462 $ 33,893 $ 34,010 Income tax expense differs from the amount that would otherwise have been calculated by applying the U.S. Federal corporate tax rate of 21% to income before income taxes for the year ended December 31, 2018 and 35% to income before income taxes for the years ended December 31, 2017 and 2016. The difference between the Federal corporate tax rate and the effective tax rate is comprised of the following (in thousands): Years ended December 31, 2018 2017 2016 Income tax provision computed at US federal statutory rate $ 7,657 21.0 % $ 11,859 35.0 % $ 11,893 35.0 % Canadian rate differential 895 2.4 (1,398 ) (4.1 ) (1,050 ) (3.1 ) Change in uncertain tax positions, net of federal income taxes 19 0.1 (3 ) — 542 1.6 Global Intangible Low Taxed Income, net deductions 1,573 4.3 — — — — US Tax Credits (1,528 ) (4.2 ) — — — — State and local income taxes, net of federal income taxes 916 2.5 626 1.9 230 0.6 Rate changes — — 1,578 4.6 — — Tax on repatriation 118 0.3 1,767 5.2 — — Other, net 61 0.2 (525 ) (1.6 ) (252 ) (0.7 ) Total income tax expense $ 9,711 26.6 % $ 13,904 41.0 % $ 11,363 33.4 % Effective income tax rate 26.6 % 41.0 % 33.4 % We include penalties and interest on income-based taxes in the “General and administrative” line on our Consolidated Statements of Comprehensive Income. We recorded $140,000 , $181,000 and $101,000 of penalties and interest in 2018 , 2017 and 2016 , respectively. Income tax provision (benefit) as set forth in the Consolidated Statements of Comprehensive Income consisted of the following components (in thousands): Years ended December 31, 2018 2017 2016 Current taxes: US Federal $ 5,949 $ 1,122 $ 6,765 State and local 1,477 662 1,136 Foreign 4,034 4,578 3,313 Total current taxes 11,460 6,362 11,214 Deferred taxes: US Federal (1,853 ) 7,569 314 State and local (169 ) 22 36 Foreign 273 (49 ) (201 ) Total deferred taxes (1,749 ) 7,542 149 Total income tax expense $ 9,711 $ 13,904 $ 11,363 Deferred Income Taxes The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are presented below (in thousands): As of December 31, 2018 2017 Deferred tax assets: Share-based compensation expense $ 3,137 $ 3,851 Deferred rent 389 441 Compensation and benefits payable 2,606 719 Federal unrecognized tax benefit 51 46 Other 4 140 Total deferred tax assets 6,187 5,197 Deferred tax liabilities: Property and equipment (620 ) (586 ) Intangibles (448 ) (1,029 ) Unrealized gains on investments (17 ) (175 ) Total deferred tax liabilities (1,085 ) (1,790 ) Net deferred tax assets $ 5,102 $ 3,407 The Company is subject to taxation in the United States and various state and foreign jurisdictions. As of December 31, 2018 , the Company’s 2015, 2016 and 2017 tax years are open for examination by the Internal Revenue Service, and various state and foreign jurisdiction tax years remain open to examination. Our 2015, 2016 and 2017 tax returns are currently under audit in a state jurisdiction in which we operate. It is reasonably possible that the audits may be completed during the next twelve months, and we do not expect the result of the audits to have a material impact on our Consolidated Financial Statements. We have not provided foreign withholding taxes on the undistributed earnings of our foreign subsidiary, Westwood International Advisors. If these funds were needed for our U.S. operations, we would be required to accrue and pay incremental foreign withholding taxes to repatriate a portion of these funds. Our current intent is to permanently reinvest the funds subject to withholding taxes outside of the U.S., and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations. As of December 31, 2018 , the cumulative amount of earnings upon which foreign withholding taxes have not been provided is approximately $33 million , and the unrecognized deferred tax liability related to these earnings is approximately $1.7 million . As of December 31, 2018 and 2017 , the Company's gross liability related to uncertain tax positions was $184,000 and $160,000 , respectively. A number of years may elapse before an uncertain tax position is finally resolved. To the extent that the Company has favorable tax settlements, or determines that accrued amounts are no longer needed due to a lapse in the applicable statute of limitations or other changes in circumstances, such liabilities, as well as the related interest and penalties, would be reversed as a reduction of income tax expense, net of federal tax effects, in the period such determination is made. A reconciliation of the change in recorded uncertain tax positions during the years ended December 31, 2018 and 2017 is as follows (in thousands): Balance at January 1, 2017 $ 2,462 Additions for tax positions related to the current year 67 Reductions for tax positions related to prior years (776 ) Payments for tax positions related to prior years (1,593 ) Balance at December 31, 2017 $ 160 Additions for tax positions related to the current year 28 Reductions for tax positions related to prior years (4 ) Balance at December 31, 2018 $ 184 It is reasonably possible that the liability for uncertain tax positions could decrease by as much as $184,000 within the next twelve months as a result of settlements with certain taxing authorities that, if recognized, would decrease our provision for income taxes by $154,000 . |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS: Westwood Trust must maintain cash and investments in an amount equal to the required minimum restricted capital of $4.0 million as required by the Texas Finance Code. Restricted capital is included in Investments in the accompanying Consolidated Balance Sheets. At December 31, 2018 , Westwood Trust had approximately $18.6 million in excess of its minimum capital requirement. Westwood Trust is limited under applicable Texas law in the payment of dividends of undivided profits, which is that part of equity capital equal to the balance of net profits, income, gains and losses since formation minus subsequent distributions to stockholders and transfers to surplus or capital under share dividends or appropriate Board resolutions. At the discretion of its Board of Directors, Westwood Trust may make quarterly and special dividend payments to us out of its undivided profits. No dividend payments were made to us in 2018, 2017 or 2016. Westwood International Advisors is subject to the working capital requirements of the Ontario Securities Commission, which requires that combined cash and receivables exceed current liabilities by at least $100,000 CDN. At December 31, 2018 Westwood International Advisors had combined cash and receivables that were $51.8 million CDN (or $38.0 million in U.S. dollars using the exchange rate on December 31, 2018 ) in excess of its current liabilities, which satisfies this requirement. |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Advisory Fee Revenues Our advisory fees are generated by Westwood Management and Westwood International, which manage client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of assets under management and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on assets under management on the last day of the preceding quarter, quarterly in arrears based on assets under management on the last day of the quarter just ended or are based on a daily or monthly analysis of assets under management for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our consolidated financial statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts. Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including the UCITS Fund and collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers. Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts. Arrangements with Performance Based Obligations A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time. The revenue is based on future market performance and is subject to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied. Trust Fee Revenues Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of assets under management. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of assets under management for the quarter, or monthly, based on the month-end value of assets under management. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Consolidated Financial Statements do not contain a significant amount of deferred trust fee revenues. Revenue Disaggregated Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands): Year Ended December 31, 2018 2017 2016 Advisory Fees: Institutional $ 59,345 $ 69,029 $ 64,665 Mutual Funds 29,792 30,172 26,827 Wealth Management 230 — — Performance-based 2,984 1,411 635 Trust Fees 28,953 31,621 30,313 Other 996 1,552 581 Total revenues $ 122,300 $ 133,785 $ 123,021 We have clients in various locations around the world. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands): Year Ended December 31, 2018 Advisory Trust Performance-based Other Total Asia $ 4,305 $ — $ — $ — $ 4,305 Australia 3,783 — — — 3,783 Canada 6,605 — — 163 6,768 Europe 4,860 — — — 4,860 United States 69,814 28,953 2,984 833 102,584 Total $ 89,367 $ 28,953 $ 2,984 $ 996 $ 122,300 Year Ended December 31, 2017 Advisory Trust Performance-based Other Total Asia $ 6,312 $ — $ — $ — $ 6,312 Australia 3,334 — — — 3,334 Canada 8,737 — — 432 9,169 Europe 3,873 — — — 3,873 United States 76,945 31,621 1,411 1,120 111,097 Total $ 99,201 $ 31,621 $ 1,411 $ 1,552 $ 133,785 Year Ended December 31, 2016 Advisory Trust Performance-based Other Total Asia $ 4,872 $ — $ — $ — $ 4,872 Australia 1,758 — — — 1,758 Canada 7,528 — — 186 7,714 Europe 5,416 — — — 5,416 United States 71,918 30,313 635 395 103,261 Total $ 91,492 $ 30,313 $ 635 $ 581 $ 123,021 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS: Restricted Stock Awards We have issued restricted shares to our employees and non-employee directors. The Plan reserves shares of Westwood common stock for issuance to eligible employees, directors and consultants of Westwood or its subsidiaries in the form of restricted stock and stock options. In April 2018, stockholders approved an additional 200,000 shares to be authorized under the Plan, increasing the total number of shares issuable under the Plan (including predecessor plans to the Plan) to 4,848,100 shares. In the event of a change in control of Westwood, the Plan contains provisions providing for the acceleration of the vesting of restricted stock. At December 31, 2018 , approximately 452,000 shares remain available for issuance under the Plan. The following table presents the total stock-based compensation expense recorded and the total income tax benefit recognized for stock-based compensation arrangements for the years indicated (in thousands): For the years ended December 31, 2018 2017 2016 Service condition restricted stock expense $ 9,941 $ 10,334 $ 10,377 Performance-based restricted stock expense 4,760 5,387 4,927 Restricted stock expense under the Plan 14,701 15,721 15,304 Canadian Plan restricted stock expense 582 709 650 Total stock-based compensation expense $ 15,283 $ 16,430 $ 15,954 Total income tax benefit recognized related to stock-based compensation $ 3,592 $ 6,168 $ 4,749 Restricted Stock Under the Plan, we have granted to employees and non-employee directors restricted stock subject to service conditions and to certain key employees restricted stock subject to both service and performance conditions. We accrue dividends on unvested restricted stock, which are due and payable upon vesting of restricted stock. Accrued dividends coming due within the next twelve months are included in “Dividends payable” on the Consolidated Balance Sheets, with the remaining noncurrent portion of accrued dividends included in “Accrued dividends” on the Consolidated Balance Sheets. At December 31, 2018 , we had recorded $7.7 million and $1.6 million in Dividends payable and Accrued dividends, respectively. At December 31, 2017 , we had recorded $7.4 million and $1.7 million in Dividends payable and Accrued dividends, respectively. As of December 31, 2018 , there was approximately $19.5 million of unrecognized compensation cost for restricted stock grants under the Plan, which we expect to recognize over a weighted-average period of 1.9 years . In order to satisfy tax liabilities that employees will owe on their shares that vest, we may withhold a sufficient number of vested shares from employees on the date vesting occurs to cover minimum tax withholding requirements. We withheld 85,448 shares in 2018 for this purpose. Our two types of restricted stock grants under the Plan are discussed below. Restricted Stock Subject Only to a Service Condition For the years ended December 31, 2018 , 2017 and 2016 , we granted restricted stock to employees and non-employee directors. Employee shares generally vest over four years and Director shares vest over one year . We calculate compensation cost for restricted stock grants using the fair market value of our common stock at the date of grant, the number of shares issued and an adjustment for restrictions on dividends. This compensation cost is amortized on a straight-line basis over the applicable vesting period. The following table details the status and changes in our restricted stock grants that are subject only to a service condition for the year ended December 31, 2018 : Number of Shares Weighted Average Grant Date Fair Value Non-vested, January 1, 2018 519,375 $ 55.44 Granted 172,366 55.92 Vested (208,715 ) 53.61 Forfeited (42,953 ) 56.46 Non-vested, December 31, 2018 440,073 $ 56.40 The following table shows the weighted-average grant date fair value for shares granted and the total fair value of shares vested during the years indicated: Years ended December 31, 2018 2017 2016 Weighted-average grant date fair value $ 55.92 $ 61.20 $ 47.97 Fair value of shares vested (in thousands) $ 11,189 $ 10,764 $ 9,497 Restricted Stock Subject to Service and Performance Conditions Under the Plan, certain key employees were provided agreements for grants of restricted shares that vest over multiple year periods subject to achieving annual performance goals established by the Compensation Committee of Westwood’s Board of Directors. Each year the Compensation Committee establishes specific goals for that year’s vesting of the restricted shares. The date that the Compensation Committee establishes the annual goal is considered to be the grant date and the fair value measurement date to determine expense on the shares that are likely to vest. The final shares earned are determined when the Compensation Committee formally approves the performance-based restricted stock vesting based on the specific performance goals from the Company’s audited consolidated financial statements, and the service vesting period ranges from one to three years. If a portion of the performance-based restricted shares is not earned or does not vest, no compensation expense is recognized for that portion and any previously recognized compensation expense related to shares that are not earned or do not vest is reversed. In March 2018 , the Compensation Committee established the 2018 goal for our Chief Executive Officer and Chief Investment Officer as Income before income taxes of $20.0 million for 50% of their respective awards and an Income before income taxes target of $36.0 million (ranging from 25% of target for threshold performance of $32.0 million to 185% of target for maximum performance of $44.5 million ) for the remaining 50% of their respective awards. For certain other key employees, the Compensation Committee established the fiscal 2018 goals based on various departmental and company-wide performance goals, including Income before income taxes of at least $20.0 million . These performance grants allow the Compensation Committee to exclude certain items, including legal settlements, from the Income before income taxes target. Throughout 2018, we recorded expense related to the applicable percentage of the performance-based restricted shares expected to meet or exceed the performance goals needed to earn the shares. The following table details the status and changes in our restricted stock grants subject to service and performance conditions for the year ended December 31, 2018 : Number of Shares Weighted Average Grant Date Fair Value Non-vested, January 1, 2018 165,918 $ 55.85 Granted 88,656 51.85 Vested (98,281 ) 55.81 Forfeited — — Non-vested, December 31, 2018 156,293 $ 55.66 The following table shows the weighted-average grant date fair value for shares granted and the total fair value of shares vested during the years indicated: Years ended December 31, 2018 2017 2016 Weighted-average grant date fair value $ 51.85 $ 54.86 $ 55.90 Fair value of shares vested (in thousands) $ 5,485 $ 5,792 $ 6,209 Canadian Plan As discussed in Note 2, the Canadian Plan provides compensation in the form of common stock for services performed by employees of Westwood International Advisors. Under the Canadian Plan, no more than $10 million CDN (or $7.3 million in U.S. Dollars using the exchange rate on December 31, 2018 ) may be funded to the Plan Trustee to fund purchases of common stock with respect to awards granted under the Canadian Plan. At December 31, 2018 , approximately $2.6 million remains available for issuance under the Canadian Plan, or approximately 75,000 shares based on the closing share price of our stock of $34.00 as of the last business day of 2018 . During 2018 , the trust formed pursuant to the Canadian Plan purchased in the open market 13,031 Westwood common shares for approximately $726,000 . On December 3, 2018 , 10,327 shares vested at a total fair value of approximately $409,000 . As of December 31, 2018 , the trust holds 36,031 shares of Westwood common stock. As of December 31, 2018 , unrecognized compensation cost related to restricted stock grants under the Canadian Plan totaled $655,000 , which we expect to recognize over a weighted-average period of 1.6 years . Mutual Fund Share Incentive Awards We grant annually to certain employees mutual fund incentive awards, which are bonus awards based on our mutual funds achieving specific performance goals. Awards granted are notionally credited to a participant account maintained by us that contains a number of mutual fund shares equal to the award amount divided by the net closing value of a fund share on the date the amount is credited to the account. For awards earned prior to 2017, the award vested after approximately one year of service following the year in which the participant earned the award. Beginning in 2017, the award vests after approximately two years of service following the year in which the participant earned the award. We begin accruing a liability for mutual fund incentive awards when we believe it is probable that the award will be earned and record expense for these awards over the service period of the award, which is either two or three years. During the year in which the amount of the award is determined, we record expense based on the expected value of the award. After the award is earned, we record expense based on the value of the shares awarded and the percentage of the vesting period that has elapsed. Our liability under these awards may increase or decrease based on changes in the value of the mutual fund shares awarded, including reinvested income from the mutual funds during the vesting period. Upon vesting, participants receive the value of the mutual fund share awards adjusted for earnings or losses attributable to the underlying mutual funds. For the years ended December 31, 2018 , 2017 , and 2016 , we recorded expense of $302,000 , $1.2 million and $1.3 million , respectively, related to mutual fund share incentive awards. As of December 31, 2018 and 2017 , we had an accrued liability of $635,000 and $1.8 million , respectively, related to mutual fund incentive awards. Deferred Share Units We have a deferred share unit (“DSU”) plan for employees of Westwood International Advisors. A DSU is an award linked to the value of Westwood’s common stock and is represented by a notional credit to a participant account. The value of a DSU is initially equal to the value of a share of our common stock. For awards granted prior to 2018, DSUs vest 20% , 40% , 60% , and 80% after two, three, four and five years of service, respectively, and become fully vested after six years of service. Beginning in 2018, DSUs vest 50% , 25% and 25% after two, three and four years of service, respectively, and become fully vested after four years of service. The liability for these units is settled in cash upon termination of the participant’s service. We record expense for DSUs based on the number of units vested on a straight line basis, which may increase or decrease based on changes in the price of our common shares, and will increase for additional units received from dividends declared on our shares. As of December 31, 2018 , we had an accrued liability of $439,000 for 13,544 deferred share units related to the 2012 to 2017 awards issued from 2013 to 2018, which is based on the $34.00 per share closing price of our common stock on the last trading day of the year ended December 31, 2018 . As of December 31, 2017, we had an accrued liability of $632,000 for 10,796 deferred share units related to the 2012 to 2016 awards issued from 2013 to 2017, which was based on the $66.21 per share closing price of our common stock on the last trading day of the year ended December 31, 2017. Benefit Plans Westwood has a defined contribution and profit-sharing plan that was adopted in July 2002 and covers substantially all of our employees. Beginning with the 2017 contribution, discretionary employer profit-sharing contributions become fully vested after four years of service by the participant. Contributions prior to 2017 vest after six years of service by the participant. For U.S. employees, Westwood provides a 401(k) match of up to 6% of eligible compensation. For Westwood International Advisors employees, Westwood provides a Registered Retirement Savings Plan match of up to 6% of eligible compensation. These retirement plan matching contributions vest immediately. The following table displays our profit-sharing and retirement plan contributions for the periods presented (in thousands): Years ended December 31, 2018 2017 2016 Profit-sharing contributions $ 926 $ 1,613 $ 1,001 Retirement plan matching contributions 1,604 1,602 1,518 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: Basic earnings per common share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding. Diluted EPS is computed based on the weighted average shares of common stock outstanding plus the effect of any dilutive shares of restricted stock granted to employees and non-employee directors. There were approximately 7,300 , 6,614 and 984 anti-dilutive restricted shares as of December 31, 2018 , 2017 and 2016 , respectively. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and share amounts): Years ended December 31, 2018 2017 2016 Net income $ 26,751 $ 19,989 $ 22,647 Weighted average shares outstanding – basic 8,365,360 8,147,742 7,961,891 Dilutive potential shares from unvested restricted shares 182,010 252,280 182,979 Dilutive potential shares from contingent consideration — — 20,605 Weighted average shares outstanding – diluted 8,547,370 8,400,022 8,165,475 Earnings per share: Basic $ 3.20 $ 2.45 $ 2.84 Diluted $ 3.13 $ 2.38 $ 2.77 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES: As discussed in Note 2 “Summary of Significant Accounting Policies,” the CTFs and Private Equity Funds (together the “Westwood VIEs”) are considered VIEs, and the Westwood Funds®, UCITS Fund and Private Equity are considered VOEs (together the “Westwood VOEs”). We receive fees for managing assets in these entities commensurate with market rates. As of December 31, 2018 and 2017, we evaluated all of the Westwood VIEs and Westwood VOEs to determine whether or not we should consolidate the entities into our Consolidated Financial Statements. For the Westwood VIEs, we evaluated whether or not we qualify as the primary beneficiary based on whether we have the obligation to absorb significant losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity’s economic performance. For the Westwood VOEs, we evaluated whether or not we own a controlling financial interest in the entities. Based on our analysis, we have not consolidated the Westwood VIEs or Westwood VOEs into our Consolidated Financial Statements for the years ended December 31, 2018 or 2017 . As of December 31, 2018 and 2017 , the Company had seed investments totaling $6.1 million and $10.7 million , respectively, in the CTFs, the Westwood Funds® and the UCITS Fund. These seed investments were provided for the sole purpose of showing economic substance needed to establish the funds or sub-funds. The Company's seed investments in these funds are included in “Investments, at fair value” on our Consolidated Balance Sheets. We have not otherwise provided any financial support that we were not previously contractually obligated to provide and there are no arrangements that would require us to provide additional financial support to any of these entities. Our seed investments in the above-mentioned CTFs, Westwood Funds® and the UCITS Fund are accounted for as investments in accordance with our other investments described in Note 3 “Investments.” We recognized fee revenue from the Westwood VIEs and Westwood VOEs of approximately $46.1 million , $51.9 million and $52.2 million for the twelve months ended December 31, 2018 , 2017 and 2016 , respectively. The following table displays the assets under management, the amount of our seed investments that are included in “Investments” and “Investments, at fair value” on the Consolidated Balance Sheets, and the financial risk of loss in each vehicle (in millions): As of December 31, 2018 Assets Under Management Corporate Investment Amount at Risk VIEs/VOEs: Westwood Funds® $ 3,236 $ 6 $ 6 Common Trust Funds 1,559 — — UCITS Fund 293 — — Private Equity Funds 9 — — Private Equity — 5 5 All other assets: Wealth Management 2,475 Institutional 9,034 Total AUM $ 16,606 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS: Some of our directors, executive officers and their affiliates invest personal funds directly in trust accounts that we manage. There was approximately $84,000 and $98,000 in fees due from these accounts as of December 31, 2018 and 2017 , respectively. For the years ended December 31, 2018 , 2017 and 2016 , we recorded trust fees from these accounts of $360,000 , $375,000 , and $409,000 , respectively. The Company engages in transactions with its affiliates as part of our operations. Westwood International Advisors and Westwood Management provide investment advisory services to the UCITS Fund and the Westwood Funds®. Certain members of our management serve on the board of directors of the UCITS Fund, and we have capital invested in three of the Westwood Funds®. Under the terms of the investment advisory agreements, the Company earns fees paid by either clients of the fund or directly by the funds. The fees are based on negotiated fee schedules applied to AUM. For the years ended December 31, 2018 , 2017 and 2016 , we recorded fees from the affiliated Funds of $4.2 million , $4.0 million and $3.1 million , respectively, which are included in “Asset-based advisory fees” on our Consolidated Statement of Comprehensive Income. As of December 31, 2018 and 2017 , $295,000 and $423,000 of these fees were unpaid and included in “Accounts receivable” on our Consolidated Balance Sheets, respectively. As discussed in Note 3 “Investments,” the Company made a strategic investment in an equity position of a private company during 2018 . We previously entered into a separate agreement with this private company to implement a portfolio management product. For the years ended December 31, 2018 and 2017, we incurred approximately $1.1 million and $140,000 , respectively, in expenses to this company, which are included in “Information technology ” expenses on our Consolidated Statements of Comprehensive Income. The Company did not incur any similar expenses during the year ended December 31, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES: Leases We lease our offices under non-cancelable operating lease agreements with expiration dates that run through 2026. Rental expense for facilities and equipment leases for years ended December 31, 2018 , 2017 and 2016 aggregated approximately $2.3 million , $2.4 million and $2.4 million , respectively, and is included in general and administrative and information technology expenses in the accompanying Consolidated Statements of Comprehensive Income. At December 31, 2018 , the future contractual rental payments for noncancelable operating leases for each of the following five years and thereafter are as follows (in thousands): Year ending: 2019 $ 2,110 2020 2,131 2021 2,094 2022 1,718 2023 1,725 Thereafter 3,403 Total payments due $ 13,181 Litigation On August 3, 2012, AGF Management Limited and AGF Investments Inc. (together “AGF”) filed a lawsuit in the Ontario Superior Court of Justice against Westwood, certain Westwood employees and the executive recruiting firm of Warren International, LLC (“Warren”). The action related to the hiring of certain members of Westwood’s emerging markets investment team previously employed by AGF. On November 5, 2012, Westwood responded to AGF’s lawsuit with a counterclaim against AGF, and on November 6, 2012, AGF filed a second lawsuit against Westwood, Westwood Management and an employee of a Westwood subsidiary . On October 13, 2017, we reached a settlement with AGF that provided for the dismissal of all claims, with prejudice and without any admission of liability. We agreed to pay AGF a one-time payment of $10 million CDN, half of which was covered by our insurance. We recorded a net $4.0 million ( $5 million CDN) charge related to the settlement and associated insurance coverage, with a $4.0 million ( $5 million CDN) receivable from our insurance provider included in “Other current assets” on our Consolidated Balance Sheets at December 31, 2017. We received the insurance proceeds of $4.0 million during 2018 and had no receivable related to the settlement on our Consolidated Balance Sheets as of December 31, 2018. Our policy is to not accrue legal fees and directly related costs as part of potential loss contingencies. Our Directors & Officers insurance provider covered 50% of the defense costs related to both AGF claims, excluding Westwood’s counterclaim against AGF. We expense legal fees and directly-related costs as incurred. We received insurance proceeds of $233,000 , $276,000 and $430,000 during 2018 , 2017 and 2016 , respectively, and had no receivable at year-end. We had a receivable of $212,000 as of December 31, 2017 , which represented our then-current minimum estimate of expenses that we expected to recover under our insurance policies. This receivable is included in “Other current assets” on our Consolidated Balance Sheets. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING: We operate two segments: Advisory and Trust. These segments are managed separately based on the types of products and services offered and their related client bases. The Company’s segment information is prepared on the same basis that management uses to review the financial information for operational decision-making purposes. The Company's chief operating decision maker, our Chief Executive Officer, evaluates the performance of our segments based primarily on fee revenues and Economic Earnings. Westwood Holdings Group, Inc., the parent company of Advisory and Trust, does not have revenues and is the entity in which we record typical holding company expenses including employee compensation and benefits for holding company employees, directors’ fees and investor relations costs. All segment accounting policies are the same as those described in the summary of significant accounting policies. Intersegment balances that eliminate in consolidation have been applied to the appropriate segment. Advisory Our Advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals, the Westwood Funds®, and the UCITS Fund, as well as investment subadvisory services to mutual funds and our Trust segment. Westwood Management Corp. and Westwood International Advisors, which provide investment advisory services to clients of similar type, are included in our Advisory segment, along with Westwood Advisors, L.L.C. Trust Westwood Trust provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Trust is included in our Trust segment. (in thousands) Advisory Trust Westwood Holdings Eliminations Consolidated Year Ended December 31, 2018 Revenues: Net fee revenues from external sources $ 92,351 $ 28,953 $ — $ — $ 121,304 Net intersegment revenues 6,973 238 — (7,211 ) — Net interest and dividend revenue 708 202 — — 910 Other revenue 53 33 — — 86 Total revenues 100,085 29,426 — (7,211 ) 122,300 Expenses: Depreciation and amortization 276 1,764 499 — 2,539 Other operating expenses 48,970 25,467 16,597 (7,211 ) 83,823 Total expenses 49,246 27,231 17,096 (7,211 ) 86,362 Gain (loss) on sale of operations (1 ) (16 ) 541 — 524 Income (loss) before income taxes 50,838 2,179 (16,555 ) — 36,462 Income tax expense (benefit) 12,032 572 (2,893 ) — 9,711 Net income (loss) $ 38,806 $ 1,607 $ (13,662 ) $ — $ 26,751 Add: Restricted stock expense $ 8,673 $ 2,356 $ 4,254 $ — $ 15,283 Intangible amortization 95 1,537 40 — 1,672 Deferred taxes on goodwill — 237 — — 237 Economic Earnings (Loss) $ 47,574 $ 5,737 $ (9,368 ) $ — $ 43,943 Segment assets $ 226,270 $ 61,056 $ 17,977 $ (114,818 ) $ 190,485 Segment goodwill $ 3,403 $ 16,401 $ — $ — $ 19,804 Expenditures for long-lived assets $ 314 $ 295 $ 382 $ — $ 991 Year Ended December 31, 2017 Revenues: Net fee revenues from external sources $ 100,612 $ 31,621 $ — $ — $ 132,233 Net intersegment revenues 8,120 218 — (8,338 ) — Net interest and dividend revenue 546 90 — — 636 Other revenue 911 5 — — 916 Total revenues 110,189 31,934 — (8,338 ) 133,785 Expenses: Depreciation and amortization 548 1,900 468 — 2,916 Other operating expenses 58,950 28,580 17,784 (8,338 ) 96,976 Total expenses 59,498 30,480 18,252 (8,338 ) 99,892 Income (loss) before income taxes 50,691 1,454 (18,252 ) — 33,893 Income tax expense (benefit) 17,120 (47 ) (3,169 ) — 13,904 Net income $ 33,571 $ 1,501 $ (15,083 ) $ — $ 19,989 Add: Restricted stock expense $ 9,140 $ 2,641 $ 4,649 $ — $ 16,430 Intangible amortization 138 1,734 — — 1,872 Deferred taxes on goodwill 38 588 — — 626 Economic Earnings (Loss) $ 42,887 $ 6,464 $ (10,434 ) $ — $ 38,917 Segment assets $ 207,792 $ 69,174 $ 18,437 $ (102,744 ) $ 192,659 Segment goodwill $ 5,219 $ 21,925 $ — $ — $ 27,144 Expenditures for long-lived assets $ 151 $ 530 $ 203 $ — $ 884 (in thousands) Advisory Trust Westwood Holdings Eliminations Consolidated Year Ended December 31, 2016 Revenues: Net fee revenues from external sources $ 92,127 $ 30,313 $ — $ — $ 122,440 Net intersegment revenues 7,533 130 — (7,663 ) — Net interest and dividend revenue 534 13 — — 547 Other revenue 294 (260 ) — — 34 Total revenues 100,488 30,196 — (7,663 ) 123,021 Expenses: Depreciation and amortization 575 1,975 379 — 2,929 Other operating expenses 50,824 27,348 15,573 (7,663 ) 86,082 Total expenses 51,399 29,323 15,952 (7,663 ) 89,011 Income (loss) before income taxes 49,089 873 (15,952 ) — 34,010 Income tax expense (benefit) 16,331 426 (5,394 ) — 11,363 Net income (loss) $ 32,758 $ 447 $ (10,558 ) $ — $ 22,647 Add: Restricted stock expense $ 9,632 $ 3,026 $ 3,296 $ — $ 15,954 Intangible amortization 160 1,800 — — 1,960 Deferred taxes on goodwill 38 509 — — 547 Economic Earnings (Loss) $ 42,588 $ 5,782 $ (7,262 ) $ — $ 41,108 Segment assets $ 174,951 $ 67,330 $ 13,985 $ (76,588 ) $ 179,678 Segment goodwill $ 5,219 $ 21,925 $ — $ — $ 27,144 Expenditures for long-lived assets $ 705 $ 530 $ 584 $ — $ 1,819 We provide a performance measure that we refer to as Economic Earnings. Our management and Board of Directors review Economic Earnings to evaluate our ongoing performance, allocate resources and determine our dividend policy. We believe that this performance measure is useful for management and investors when evaluating our underlying operating and financial performance and our available resources. In calculating Economic Earnings, we add to Net income the non-cash expense associated with equity-based compensation awards of restricted stock, amortization of intangible assets and the deferred taxes related to the tax-basis amortization of goodwill. Although depreciation on property and equipment is a non-cash expense, we do not add it back when calculating Economic Earnings because depreciation charges represent a decline in the value of the related assets that will ultimately require replacement. The following table provides a reconciliation of Net income to Economic Earnings (in thousands): For the years ended December 31, 2018 2017 2016 Net Income $ 26,751 $ 19,989 $ 22,647 Add: Restricted stock expense 15,283 16,430 15,954 Add: Intangible amortization 1,672 1,872 1,960 Add: Tax benefit from goodwill amortization 237 626 547 Economic Earnings $ 43,943 $ 38,917 $ 41,108 Geographical information Refer to Note 9, “Revenue” for our revenue disaggregated by our clients' geographical location. As of December 31, (in thousands) 2018 2017 Property and equipment, net, by geographic area: U.S. $ 4,381 $ 4,107 Canada 73 83 Total Property and equipment, net $ 4,454 $ 4,190 |
Concentration
Concentration | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION | CONCENTRATION: For the years ended December 31, 2018 , 2017 and 2016 , our ten largest clients accounted for approximately 24% , 20% and 20% of our fee revenue, respectively. No single customer accounted for 10% or more of our fee revenues in any of these years. The following table presents advisory fee revenue received from our single largest client in each year (in thousands): Years ended December 31, 2018 2017 2016 Advisory fees from our largest client: Asset-based fees $ 1,868 $ 6,312 $ 4,872 Performance-based fees 2,984 — — Percent of fee revenue 4.0 % 4.8 % 4.0 % |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS: Dividends Declared On February 6, 2019 , the Board of Directors declared a quarterly cash dividend of $0.72 per share on common stock payable on April 1, 2019 to stockholders of record on March 8, 2019 . Restricted Stock Grants On February 22, 2019 , we expect to issue approximately $7.2 million of restricted stock to employees, or approximately 185,000 shares based on the closing price of our stock on February 21, 2019. The shares are subject to vesting conditions described in Note 10 “Employee Benefits” of our Consolidated Financial Statements in this Report. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (Unaudited) | QUARTERLY FINANCIAL DATA (Unaudited): The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2018 and 2017 (in thousands, except per share amounts): Quarter First Second Third Fourth 2018 Revenues $ 33,567 $ 32,760 $ 29,854 $ 26,119 Income before income taxes 10,487 10,936 7,151 7,888 Net income 7,978 7,992 5,368 5,413 Basic earnings per common share 0.96 0.95 0.64 0.65 Diluted earnings per common share 0.93 0.94 0.62 0.64 2017 Revenues $ 32,623 $ 33,756 $ 33,492 $ 33,914 Income before income taxes 7,770 10,583 5,752 9,788 Net income 6,064 6,896 4,132 2,897 Basic earnings per common share 0.75 0.84 0.51 0.35 Diluted earnings per common share 0.73 0.83 0.49 0.34 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | Basic earnings per common share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding. Diluted EPS is computed based on the weighted average shares of common stock outstanding plus the effect of any dilutive shares of restricted stock granted to employees and non-employee directors. |
Principles of consolidation | Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of Westwood and its subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. In the current year, we created a new expense item on the Consolidated Statements of Comprehensive Income for (Gain) loss on foreign currency transactions, which was previously included in "General and Administrative" expense. Prior year financial statements were reclassified to conform to this presentation. These reclassifications had no impact on net income, stockholders’ equity or cash flows as previously reported. We assess each legal entity that we manage to determine whether consolidation is appropriate at the onset of the relationship. We first determine whether the entity is a variable interest entity (“VIE”), or a voting interest entity (“VOE”), under U.S. generally accepted accounting principles (“GAAP”) and whether we have a controlling financial interest in the entity. Assessing whether or not an entity is a VOE or VIE and if it requires consolidation involves judgment and analysis. Factors considered in this assessment include, but are not limited to, the legal organization of the entity, our equity ownership and contractual involvement with the entity and any related party or de facto agent implications of our involvement with the entity. We reconsider whether entities are a VIE or VOE whenever contractual arrangements change, the entity receives additional equity or returns equity to its investors or changes in facts and circumstances occur that change the investors’ abilities to direct the activities of the entity. A VIE is an entity in which (i) the total equity investment at risk is not sufficient to enable the entity to finance its activities without subordinated financial support, (ii) the at-risk equity holders, as a group, lack the characteristics of a controlling financial interest or (iii) the entity is structured with disproportionate voting rights, and substantially all of the activities are conducted on behalf of an investor with disproportionately few voting rights. That is, the at-risk equity holders do not have the obligation to absorb significant losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity’s economic performance. An enterprise must consolidate all VIEs of which it is the primary beneficiary. We determine if a sponsored investment meets the definition of a VIE by considering whether the fund’s equity investment at risk is sufficient to finance its activities without additional subordinated financial support and whether the fund’s at-risk equity holders absorb any losses, have the right to receive residual returns and have the right to direct the activities of the entity most responsible for the entity’s economic performance. The primary beneficiary of a VIE is defined as the party that, considering the involvement of related parties and de facto agents, has (i) the power to direct the activities of the VIE that most significantly affect its economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. This evaluation is updated continuously. A VOE is an entity that is outside the scope of the guidance for VIEs. Consolidation of a VOE is required when a reporting entity owns a controlling financial interest in a VOE. Ownership of a majority of the voting interests is the usual condition for a controlling financial interest. We have evaluated (i) our advisory relationships with Westwood Investment Funds PLC (the “UCITS Fund”) and the Westwood Funds®, (ii) our relationship as sponsor of the Common Trust Funds (“CTFs”) and managing member of the private equity funds Westwood Hospitality Fund I, LLC and Westwood Technology Fund LP (collectively the “Private Equity Funds”) and (iii) the private company discussed in Note 3 “Investments” (“Private Equity”) to determine whether each of these entities is a variable interest entity (“VIE”) or voting ownership entity (“VOE”). Based on our analysis, we determined that the CTFs and Private Equity Funds were VIEs, as the at-risk equity holders do not have the ability to direct the activities that most significantly impact the entity’s economic performance, and the Company and its representatives have a majority control of the entities' respective boards of directors and can influence the respective entities' management and affairs. Prior to the sale of our Omaha-based operations, we also considered our advisory relationship with ten limited liability companies (“LLCs”) as VIEs, but as of December 31, 2018 , we no longer serve as the managing member of the funds and do not control the activities that most significantly impact the entities' economic performance. Therefore these LLCs are no longer considered VIEs. Although we have related parties on the UCITS Fund board of directors, the shareholders have rights to remove the current directors by a simple majority vote and so we determined that the UCITS Fund is not a VIE. As the Company and its representatives do not have representation on the Westwood Funds® or the Private Equity independent boards of directors, which direct the activities that most significantly impact the entities' economic performance, we determined that the Westwood Funds® and the Private Equity were not VIEs. Therefore, the UCITS Fund, Westwood Funds® and Private Equity should be analyzed under the VOE consolidation method. Based on our analysis of our investments in these entities for the periods ending December 31, 2018 and 2017 , we have not consolidated the CTFs, Private Equity Funds or LLCs under the VIE method or the UCITS Fund, Westwood Funds® or Private Equity under the VOE method, and therefore the financial results of these entities are not included in the Company’s consolidated financial results. We have included the disclosures related to VIEs and VOEs in Note 12 “Variable Interest Entities.” |
Use of Estimates | Use of Estimates The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of money market accounts and other short-term, highly liquid investments with maturities of three months or less, other than pooled investment vehicles that are considered investments. We maintain some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. The Company has not experienced losses on uninsured cash accounts. |
Accounts Receivable | Accounts Receivable Accounts receivable represents balances arising from services provided to customers and are recorded on an accrual basis, net of any allowance for doubtful accounts. Accounts receivable are written off when they are determined to be uncollectible. Any allowance for doubtful accounts is estimated based on the Company’s historical amounts written off, existing conditions in the industry, and the financial stability of the customer. The majority of our accounts receivable balances consist of advisory and trust fees receivable from customers that we believe and have experienced to be fully collectible. Accordingly, our Consolidated Financial Statements do not include an allowance for bad debt nor any bad debt expense. |
Investments | Investments Investments measured at fair market value are classified as trading securities and are carried at quoted market values on the accompanying Consolidated Balance Sheets. Net unrealized holding gains or losses on investments classified as trading securities are reflected as a component of other revenues. We measure realized gains and losses on investments using the specific identification method. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We determined the estimated fair values of our financial instruments using available information. The fair value amounts discussed in Notes 3 “Investments” and 4 “Fair Value of Financial Instruments” are not necessarily indicative of either the amounts realizable upon disposition of these instruments or of our intent or ability to dispose of these assets. The estimated fair value of cash and cash equivalents, accounts receivable, prepaid income taxes, other current assets, accounts payable and accrued liabilities, dividends payable, compensation and benefits payable and income taxes payable approximates their carrying value due to their short-term maturities. The carrying amount of investments designated as “trading” securities, primarily U.S. Government and Government agency obligations, money market funds, Westwood Funds® mutual funds, the UCITS Fund and Westwood Trust common trust fund shares, equals fair value based on prices quoted in active markets and, with respect to funds, the reported net asset value (“NAV”) of the shares held. Market values of our money market holdings generally do not fluctuate. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying identifiable assets at the date of acquisition. Goodwill is not amortized but is tested at least annually for impairment. We test more frequently if indicators are present or changes in circumstances suggest that impairment may exist. These indicators include declines in revenues, earnings or cash flows, or the development of a material adverse change in the business climate. We assess goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. We have identified two reporting units, which are consistent with our reporting segments: Advisory and Trust. The Company is not required to calculate the fair value of a reporting unit unless we determine that it is more likely than not that its fair value is less than the carrying amount. We assess goodwill for impairment using either a qualitative or quantitative assessment. The qualitative assessment includes consideration of the current trends in the industry in which we operate, macroeconomic conditions, recent financial performance of our reporting units and a market multiple approach valuation. In performing the annual impairment test during the third quarter, or more frequently when impairment indicators exist, and after assessing the qualitative factors, we may be required to utilize the two-step approach prescribed by ASC 350, Goodwill and Other Intangible Assets. We may also elect to skip the qualitative assessment and proceed directly to the quantitative analysis. The quantitative analysis requires a comparison of each reporting unit’s carrying value to the fair value of the respective unit. If the carrying value exceeds the fair value, an impairment loss is measured by reducing the goodwill to the fair market value. The fair value of each reporting unit is estimated, entirely or predominantly, using a market multiple approach. During the third quarter of 2018 we completed our annual goodwill impairment assessment and determined that no impairment loss was required. No impairments were recorded during any of the periods presented. Our intangible assets represent the acquisition date fair value of the acquired client relationships, trade names and non-compete agreements, as well as the cost of internally-developed software, each of which is reflected net of amortization. In valuing these assets, we made significant estimates regarding their useful lives, growth rates and potential attrition. We periodically review our intangible assets for events or circumstances that would indicate impairment. See Note 5 “Goodwill and Other Intangible Assets. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of furniture and equipment is provided over the estimated useful lives of the assets (from 3 to 7 years ), and depreciation on leasehold improvements is provided over the lesser of the estimated useful life or lease term using the straight-line method. We capitalize leasehold improvements, furniture and fixtures, computer hardware and most office equipment purchases. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and Trust fees are calculated based on a percentage of assets under management and the performance obligation is realized over the then-current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment. Incremental costs to obtain a contract under the new guidance is eligible to be capitalized if the cost is expected to be recovered over the service period. We incur certain incremental costs in obtaining new Trust business and continually evaluate whether costs should be capitalized and amortized over the expected period of benefit of the asset. Certain costs used to fulfill a contract such as the distribution services utilized to sell our Westwood Funds® are expensed as incurred. We have elected the practical expedient that allows an entity to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. |
Stock Based Compensation | Stock-Based Compensation We have issued restricted stock to our U.S. employees and Board of Directors in accordance with our Fifth Amended and Restated Westwood Holdings Group, Inc. Stock Incentive Plan (the “Plan”). We account for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation and adopted Accounting Standards Update (“ASU”) 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting effective January 1, 2017. Under ASC 718, stock-based compensation expense reflects the fair value of stock-based awards measured at grant date and is recognized over the relevant service period. We expense the fair value of stock-based compensation awards granted to our employees and directors in our Consolidated Financial Statements on a straight-line basis over the period that services are required to be provided in exchange for the award (“requisite service period”), which is typically the period over which the award vests. Stock-based compensation is recognized only for awards that vest. We measure the fair value of compensation cost related to restricted stock awards based on the closing market price of our common stock on the grant date. For performance-based share awards, we assess actual performance versus the predetermined performance goals and record compensation expense once we conclude it is probable that we will meet the performance goals required to vest the applicable performance-based awards. The following summarizes the effects of the adoption of ASU 2016-09 on our Consolidated Financial Statements: Income Taxes - Upon adoption of this standard, all excess tax benefits and tax deficiencies, including tax benefits of dividends on share-based payment awards, are recognized as income tax expense or benefit in the Consolidated Statement of Comprehensive Income. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. As a result, the Company recognized discrete adjustments to income tax expense of $1.0 million in 2017 related to excess tax benefits, decreasing our effective tax rate for 2017 by 2.9% . Without the adjustment, our effective tax rate would have been 43.9% . The Company did not have any unrecognized excess tax benefits as of December 31, 2016 and therefore there was no cumulative-effect adjustment to retained earnings related to income taxes. The Company adopted the amendments related to the recognition of excess tax benefits and tax shortfalls prospectively, with no adjustments made to prior periods. Forfeitures - Prior to adoption, stock-based compensation expense was recognized on a straight-line basis, net of estimated forfeitures, such that expense was recognized for stock-based awards that were expected to vest. A forfeiture rate was estimated annually and revised, if necessary, in subsequent periods if actual forfeitures differed from initial estimates. Upon adoption of this standard, the Company no longer applies an estimated forfeiture rate and instead accounts for forfeitures as they occur. The Company applied the modified retrospective adoption approach, resulting in a $711,000 cumulative-effect reduction to “Retained earnings” with the offset to “Additional paid-in-capital” on January 1, 2017. Statements of Cash Flows - The Company historically accounted for excess tax benefits on the Consolidated Statements of Cash Flows as a financing activity. Upon adoption of this standard, excess tax benefits are classified along with other income tax cash flows as an operating activity. The change in cash flow classification associated with excess tax benefits was adopted prospectively, resulting in the classification of the $1.0 million excess tax benefit as an operating activity during the twelve months ended December 31, 2017. No change in classification was necessary for the presentation of restricted stock returned for payment of taxes, as the Company has historically presented such payments as a financing activity. The Company adopted this portion of the standard on a prospective basis, with no adjustments made to prior periods. Earnings Per Share - The Company uses the treasury stock method to compute diluted earnings per share, unless the effect would be anti-dilutive. Under the new standard, the Company is no longer required to estimate the tax effect of anticipated windfall benefits or shortfalls when projecting proceeds available for share repurchases in calculating dilutive shares. The Company utilized the modified retrospective adoption approach, with no adjustments made to prior periods. The Share Award Plan of Westwood Holdings Group, Inc. for Service Provided in Canada to its Subsidiaries (the “Canadian Plan”) provides compensation in the form of common stock for services performed by employees of Westwood International Advisors. We record compensation costs for these awards on a straight-line basis over the vesting period once we determine it is probable that the award will be earned. Awards expected to be settled in shares are funded into a trust pursuant to an established Canadian employee benefit plan. Generally, the Canadian trust subsequently acquires Westwood common shares in market transactions and holds such shares until the shares are vested and distributed, or forfeited. Shares held in the trust are shown on our Consolidated Balance Sheet as treasury shares. Until shares are acquired by the trust, we record compensation costs and measure the liability as a cash-based award, which is included in “Compensation and benefits payable” on our Consolidated Balance Sheets. For the years ended December 31, 2018 , 2017 and 2016 , the compensation expense recorded for these awards was $147,000 , $232,000 and $524,000 , respectively. When the number of shares related to an award is determinable, the award becomes an equity award accounted for in a manner similar to restricted stock, which is described in Note 10 “Employee Benefits.” |
Currency Translation | Currency Translation and Re-measurement Assets and liabilities of Westwood International Advisors, our non-U.S. dollar functional currency subsidiary, are translated at exchange rates as of applicable reporting dates. The gains and losses resulting from translating non-U.S. dollar functional currency into U.S. dollars are recorded through other comprehensive income. Revenue and expense transactions are recorded at the rates of exchange prevailing on the dates of the transactions. Gains and losses resulting from transactions in foreign currencies are included in “(Gain) loss on foreign currency transactions” in our Consolidated Statements of Comprehensive Income. For the years ended December 31, 2018 and 2016, we recorded a gain of $2.8 million and $362,000 , respectively. For the year ended December 31, 2017, we recorded a loss of $1.6 million . |
Income Taxes | Income Taxes We file a United States federal income tax return as a consolidated group for Westwood and its subsidiaries based in the United States. We file a Canadian income tax return for Westwood International Advisors. Deferred income tax assets and liabilities are determined based on temporary differences between the financial statements and income tax bases of assets and liabilities as measured at enacted income tax rates. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law. Further information on the tax impacts of the Tax Reform Act is included in Note 7 “Income Taxes.” Deferred income tax expense is generally the result of changes in deferred tax assets and liabilities. Deferred taxes relate primarily to incentive compensation and stock-based compensation expense. We record net deferred tax assets to the extent we believe such assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event we were to determine that we would not be able to realize our deferred income tax assets in the future, we would record a valuation allowance. No such valuation allowance has been recorded in our Consolidated Financial Statements. We account for uncertain tax positions by recognizing the impact of a tax position in our Consolidated Financial Statements when we believe it is more likely than not that the tax position would not be sustained upon examination by the appropriate tax authority based on the merits of the position. We include penalties and interest on income-based taxes, if any, in the “General and administrative” line on our Consolidated Statements of Comprehensive Income. See Note 7 “Income Taxes.” |
Business Combinations | Business Combinations In allocating the purchase price of a business combination, the Company records all assets acquired and liabilities assumed at fair value, with the excess of the purchase price over the aggregate fair values recorded as goodwill. ASC 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The purchase price of an acquisition is allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values as of the date of acquisition. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets acquired and liabilities assumed, such excess is allocated to goodwill. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices and estimates made by management. The fair value assigned to identifiable intangible assets acquired is based on estimates and assumptions made by management at the time of the acquisition. The Company adjusts the preliminary purchase price allocation, as necessary, during the measurement period of up to one year after the acquisition closing date as it obtains more information as to facts and circumstances existing as of the acquisition date. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. The acquired customer accounts, trade names and non-compete agreements are subject to fair value measurements based primarily on significant inputs not observable in the market and thus represent level 3 measurements. The valuation of an acquired customer list utilizes an income approach, which provides an estimate of the fair value of an asset based on discounted cash flows and management estimates, including the estimated growth associated with existing clients, market growth and client attrition. The valuation of acquired trade names uses a relief-from-royalty method in which the fair value of the intangible asset is estimated to be the present value of royalties saved because the Company owns the intangible asset. Revenue projections and estimated useful lives are used in estimating the fair value of the trade names. The non-compete agreements are calculated using the with-or-without method, which utilizes the probability of these employees competing with the Company and revenue projections to calculate the valuation of non-compete agreements. When an acquisition includes future contingent consideration on achieving certain annualized revenue from the post-closing acquired business over a specified time period, the Company estimates the fair value of the earn-out using overall revenue growth projections combined with lost revenue projections from existing customer base, both discounted and probability-weighted. A liability is recorded for the estimated fair value of the contingent consideration on the acquisition date, and the fair value of the contingent consideration is remeasured at each subsequent reporting period, with any change in fair value recognized as income or expense within the Consolidated Statement of Comprehensive Income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , which resulted from a joint project by the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”). The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Retrospective application is required, with the entity either applying the change to each prior reporting period presented or applying the cumulative effect of each prior reporting period presented at the date of initial application. On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606 while prior period amounts continue to be reported in accordance with our historic accounting under Topic 605. We analyzed the revenue from prior periods and determined no material adjustments to opening retained earnings were necessary as the updated guidance is consistent with our historical revenue recognition methodology. See further discussion in Note 9 “Revenue.” In March 2018, the FASB issued ASU 2018-05, Income Taxes: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (“Tax Reform Act”). See further discussion in Note 7 “Income Taxes.” Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases . ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases at the commencement date, excluding short-term leases. Leases will be classified as either financing or operating, with classification impacting the pattern of expense recognition in the income statement. The amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We will adopt the standard as of January 1, 2019 under the modified retrospective approach, which allows for recording the cumulative effect of the adoption of the standard as an adjustment to beginning retained earnings. We will elect the package of practical expedients permitted under the transition guidance, which among other things, allows us to carry forward the historical lease classification and elect hindsight to determine certain lease terms for existing leases. We have evaluated our population of contracts subject to balance sheet recognition and estimate adoption will result in recognition of additional lease assets and net lease liabilities of approximately $9 million as of January 1, 2019 primarily related to the future minimum payments required under operating leases as disclosed in Note 14 “Commitments and Contingencies”. The insignificant difference in the additional lease assets and net lease liabilities will be recorded as an adjustment to beginning retained earnings. We do not believe the standard will materially impact our Consolidated Statements of Comprehensive Income or Consolidated Statements of Cash Flows. Beginning with our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, we will add disclosures surrounding our leases, including lease cost disaggregation, weighted average remaining lease terms and weighted average discount rate used to determine our lease assets and liabilities. We have also analyzed our current business process and internal controls and anticipate implementing new procedures to successfully adopt the standard, particularly for identification of leases and evaluation of the discount rate. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The purpose of this amendment is to simplify the accounting for share-based payments granted to nonemployees for goods and services by aligning it with the accounting used for arrangements with employees. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. We do not expect the amendment to have a material impact on our Consolidated Financial Statements, and we plan to adopt the standard within the required time frame. 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 . The purpose of this amendment is to modify, remove and add certain disclosure requirements for fair value measurements. Under ASU 2018-13, entities are required to disclose the amount of total gains or losses recognized in other comprehensive income attributable to assets and liabilities categorized within Level 3 of the fair value hierarchy. The ASU also adds an incremental requirement about significant unobservable inputs for Level 3 fair value measurements. The requirement to disclose reasons for transfers between Level 1 and Level 2 was removed. Various requirements for Level 3 disclosure were also modified. The amendments in this ASU are effective for all entities for fiscal years and interim periods beginning after December 15, 2019. We do not expect the amendment to have a material impact on our Consolidated Financial Statements, and we plan to adopt this amendment within the required time frame. In August 2018, the FASB issued ASU 2018-15, Intangibles- Goodwill and Other - Internal-Use Software (Topic 350): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The purpose of this amendment is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in this update are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We do not expect the amendment to have a material impact on our Consolidated Financial Statements, and we plan to adopt the standard within the required time frame. |
Revenue (Policies)
Revenue (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and Trust fees are calculated based on a percentage of assets under management and the performance obligation is realized over the then-current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment. Incremental costs to obtain a contract under the new guidance is eligible to be capitalized if the cost is expected to be recovered over the service period. We incur certain incremental costs in obtaining new Trust business and continually evaluate whether costs should be capitalized and amortized over the expected period of benefit of the asset. Certain costs used to fulfill a contract such as the distribution services utilized to sell our Westwood Funds® are expensed as incurred. We have elected the practical expedient that allows an entity to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. |
Description of the Business Div
Description of the Business Divestiture of Omaha Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Divestiture of our Omaha Operations On September 6, 2017, we entered into an agreement to sell the Omaha-based component of our Wealth Management business. The sale closed on January 12, 2018. We received proceeds of $10.0 million , net of working capital requirements, and recorded a $524,000 gain on the sale, which is included as “Gain on sale of operations” on our Consolidated Statement of Comprehensive Income. The sale reduced our goodwill and intangible assets, but did not have a material impact on our Consolidated Balance Sheets. The following table presents cash proceeds received and net assets sold (in thousands): Cash Proceeds $ 10,013 Net assets sold: Accounts receivable 99 Other current assets 112 Goodwill 7,340 Intangible assets, net 2,170 Property and equipment, net 18 Accounts payable and accrued liabilities (241 ) Other liabilities (9 ) Gain on sale of operations $ 524 The component is reported within both our Advisory and Trust segments. The sale did not represent a major strategic shift in our business and did not qualify for discontinued operations reporting. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Balances | All other investments are carried at fair value on a recurring basis and are accounted for as trading securities. Trading securities are presented in the table below (in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2018: U.S. Government and Government agency obligations $ 48,177 $ 232 $ — $ 48,409 Money market funds 10,354 — — 10,354 Equity funds 7,344 — (326 ) 7,018 Total trading securities $ 65,875 $ 232 $ (326 ) $ 65,781 December 31, 2017: U.S. Government and Government agency obligations $ 29,367 $ 21 $ (15 ) $ 29,373 Money market funds 9,736 — — 9,736 Equity funds 11,578 657 (20 ) 12,215 Total trading securities $ 50,681 $ 678 $ (35 ) $ 51,324 |
Other Revenue | The following amounts, except for income tax amounts, are included in our Consolidated Statements of Comprehensive Income under the heading “Other revenues” for the years indicated (in thousands): 2018 2017 2016 Realized gains $ 920 $ 395 $ 113 Realized losses (121 ) (96 ) (220 ) Net realized gains (losses) $ 799 $ 299 $ (107 ) Income tax expense (benefit) from gains (losses) $ 168 $ 105 $ (37 ) Interest income – trading $ 620 $ 334 $ 282 Dividend income $ 290 $ 302 $ 265 Unrealized gains/(losses) $ (737 ) $ 617 $ 510 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Values of Assets Within Fair Value Hierarchy | The following table summarizes the values of our assets and liabilities as of the dates indicated within the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Investments Measured at NAV (1) Total As of December 31, 2018 Investments in trading securities $ 65,781 $ — $ — $ — $ 65,781 Total assets measured at fair value $ 65,781 $ — $ — $ — $ 65,781 As of December 31, 2017 Investments in trading securities $ 48,998 $ — $ — $ 2,326 $ 51,324 Total assets measured at fair value $ 48,998 $ — $ — $ 2,326 $ 51,324 (1) Comprised of certain investments measured at fair value using NAV as a practical expedient. These investments were recategorized and are no longer included within Level 2 of the valuation hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in our Consolidated Balance Sheets. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Changes in Goodwill | Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying identifiable assets at the date of acquisition. Changes in goodwill are as follows (in thousands): As of December 31, 2018 2017 Beginning balance $ 27,144 $ 27,144 Omaha divestiture (7,340 ) — Ending balance $ 19,804 $ 27,144 | ||
Summary of Intangible Assets | The following is a summary of intangible assets at December 31, 2018 and 2017 (in thousands, except years): Weighted Average Amortization Period (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount 2018 Client relationships 14.8 $ 21,431 $ (5,960 ) $ 15,471 Trade names 4.9 708 (537 ) 171 Non-compete agreements 3.0 259 (259 ) — Internally developed software 7.0 418 (99 ) 319 $ 22,816 $ (6,855 ) $ 15,961 2017 Client relationships 14.8 $ 25,396 $ (6,302 ) $ 19,094 Trade names 4.2 942 (633 ) 309 Non-compete agreements 2.9 283 (262 ) 21 Internally developed software 7.0 418 (38 ) 380 $ 27,039 $ (7,235 ) $ 19,804 | ||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Finite-Lived Intangible Assets Disposed [Table Text Block] | The sale of the Omaha-based component of our wealth management business closed in the first quarter of 2018. The following table represents the reduction in our intangible assets related to the sale (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Sold Client relationships $ 3,965 $ (1,795 ) $ 2,170 Trade names 234 (234 ) — Non-compete agreements 24 (24 ) — $ 4,223 $ (2,053 ) $ 2,170 | ||
Amortization expense | $ 1,672,000 | $ 1,872,000 | $ 1,960,000 |
Estimated Amortization Expense for Intangible Assets over the Next Five Years | Estimated amortization expense for intangible assets over the next five years is as follows (in thousands): Estimated Amortization Expense For the year ending December 31, 2019 $ 1,651 2020 $ 1,530 2021 $ 1,419 2022 $ 1,419 2023 $ 1,400 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property and Equipment | The following table reflects information about our property and equipment as of December 31, 2018 and 2017 (in thousands): As of December 31, 2018 2017 Leasehold improvements $ 4,714 $ 4,170 Furniture and fixtures 2,716 2,243 Computer hardware and office equipment 2,996 2,745 Construction in progress 490 705 Accumulated depreciation (6,462 ) (5,673 ) Property and equipment, net $ 4,454 $ 4,190 |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss were as follows (in thousands): As of December 31, 2018 2017 Foreign currency translation adjustment, net of tax of $(43) and $46 $ (4,883 ) $ (1,764 ) Accumulated other comprehensive loss $ (4,883 ) $ (1,764 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Taxes by Jurisdiction | Income before income taxes by jurisdiction is as follows (in thousands): Years ended December 31, 2018 2017 2016 United States $ 21,250 $ 17,531 $ 21,539 Canada 15,212 16,362 12,471 Total $ 36,462 $ 33,893 $ 34,010 |
Difference between the Federal Corporate Tax Rate and the Effective Tax Rate | The difference between the Federal corporate tax rate and the effective tax rate is comprised of the following (in thousands): Years ended December 31, 2018 2017 2016 Income tax provision computed at US federal statutory rate $ 7,657 21.0 % $ 11,859 35.0 % $ 11,893 35.0 % Canadian rate differential 895 2.4 (1,398 ) (4.1 ) (1,050 ) (3.1 ) Change in uncertain tax positions, net of federal income taxes 19 0.1 (3 ) — 542 1.6 Global Intangible Low Taxed Income, net deductions 1,573 4.3 — — — — US Tax Credits (1,528 ) (4.2 ) — — — — State and local income taxes, net of federal income taxes 916 2.5 626 1.9 230 0.6 Rate changes — — 1,578 4.6 — — Tax on repatriation 118 0.3 1,767 5.2 — — Other, net 61 0.2 (525 ) (1.6 ) (252 ) (0.7 ) Total income tax expense $ 9,711 26.6 % $ 13,904 41.0 % $ 11,363 33.4 % Effective income tax rate 26.6 % 41.0 % 33.4 % |
Income Tax Provision (Benefit) as Set Forth in the Consolidated Statements of Income | Income tax provision (benefit) as set forth in the Consolidated Statements of Comprehensive Income consisted of the following components (in thousands): Years ended December 31, 2018 2017 2016 Current taxes: US Federal $ 5,949 $ 1,122 $ 6,765 State and local 1,477 662 1,136 Foreign 4,034 4,578 3,313 Total current taxes 11,460 6,362 11,214 Deferred taxes: US Federal (1,853 ) 7,569 314 State and local (169 ) 22 36 Foreign 273 (49 ) (201 ) Total deferred taxes (1,749 ) 7,542 149 Total income tax expense $ 9,711 $ 13,904 $ 11,363 |
Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are presented below (in thousands): As of December 31, 2018 2017 Deferred tax assets: Share-based compensation expense $ 3,137 $ 3,851 Deferred rent 389 441 Compensation and benefits payable 2,606 719 Federal unrecognized tax benefit 51 46 Other 4 140 Total deferred tax assets 6,187 5,197 Deferred tax liabilities: Property and equipment (620 ) (586 ) Intangibles (448 ) (1,029 ) Unrealized gains on investments (17 ) (175 ) Total deferred tax liabilities (1,085 ) (1,790 ) Net deferred tax assets $ 5,102 $ 3,407 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the change in recorded uncertain tax positions during the years ended December 31, 2018 and 2017 is as follows (in thousands): Balance at January 1, 2017 $ 2,462 Additions for tax positions related to the current year 67 Reductions for tax positions related to prior years (776 ) Payments for tax positions related to prior years (1,593 ) Balance at December 31, 2017 $ 160 Additions for tax positions related to the current year 28 Reductions for tax positions related to prior years (4 ) Balance at December 31, 2018 $ 184 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands): Year Ended December 31, 2018 2017 2016 Advisory Fees: Institutional $ 59,345 $ 69,029 $ 64,665 Mutual Funds 29,792 30,172 26,827 Wealth Management 230 — — Performance-based 2,984 1,411 635 Trust Fees 28,953 31,621 30,313 Other 996 1,552 581 Total revenues $ 122,300 $ 133,785 $ 123,021 |
Revenue Disaggregation by Geographic Location [Table Text Block] | We have clients in various locations around the world. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands): Year Ended December 31, 2018 Advisory Trust Performance-based Other Total Asia $ 4,305 $ — $ — $ — $ 4,305 Australia 3,783 — — — 3,783 Canada 6,605 — — 163 6,768 Europe 4,860 — — — 4,860 United States 69,814 28,953 2,984 833 102,584 Total $ 89,367 $ 28,953 $ 2,984 $ 996 $ 122,300 Year Ended December 31, 2017 Advisory Trust Performance-based Other Total Asia $ 6,312 $ — $ — $ — $ 6,312 Australia 3,334 — — — 3,334 Canada 8,737 — — 432 9,169 Europe 3,873 — — — 3,873 United States 76,945 31,621 1,411 1,120 111,097 Total $ 99,201 $ 31,621 $ 1,411 $ 1,552 $ 133,785 Year Ended December 31, 2016 Advisory Trust Performance-based Other Total Asia $ 4,872 $ — $ — $ — $ 4,872 Australia 1,758 — — — 1,758 Canada 7,528 — — 186 7,714 Europe 5,416 — — — 5,416 United States 71,918 30,313 635 395 103,261 Total $ 91,492 $ 30,313 $ 635 $ 581 $ 123,021 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Expense Recorded for Stock Based Compensation | The following table presents the total stock-based compensation expense recorded and the total income tax benefit recognized for stock-based compensation arrangements for the years indicated (in thousands): For the years ended December 31, 2018 2017 2016 Service condition restricted stock expense $ 9,941 $ 10,334 $ 10,377 Performance-based restricted stock expense 4,760 5,387 4,927 Restricted stock expense under the Plan 14,701 15,721 15,304 Canadian Plan restricted stock expense 582 709 650 Total stock-based compensation expense $ 15,283 $ 16,430 $ 15,954 Total income tax benefit recognized related to stock-based compensation $ 3,592 $ 6,168 $ 4,749 |
Profit Sharing and 401(k) Contributions for the Periods | The following table displays our profit-sharing and retirement plan contributions for the periods presented (in thousands): Years ended December 31, 2018 2017 2016 Profit-sharing contributions $ 926 $ 1,613 $ 1,001 Retirement plan matching contributions 1,604 1,602 1,518 |
Restricted Stock Subject Only to a Service Condition | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Status and Changes in Restricted Stock Grants that Subject to Service Condition | The following table details the status and changes in our restricted stock grants that are subject only to a service condition for the year ended December 31, 2018 : Number of Shares Weighted Average Grant Date Fair Value Non-vested, January 1, 2018 519,375 $ 55.44 Granted 172,366 55.92 Vested (208,715 ) 53.61 Forfeited (42,953 ) 56.46 Non-vested, December 31, 2018 440,073 $ 56.40 |
Weighted-Average Grant Date Fair Value for Shares Granted and the Total Fair Value of Shares Vested | The following table shows the weighted-average grant date fair value for shares granted and the total fair value of shares vested during the years indicated: Years ended December 31, 2018 2017 2016 Weighted-average grant date fair value $ 55.92 $ 61.20 $ 47.97 Fair value of shares vested (in thousands) $ 11,189 $ 10,764 $ 9,497 |
Restricted Shares Subject to Service and Performance Conditions | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Status and Changes in Restricted Stock Grants that Subject to Service Condition | The following table details the status and changes in our restricted stock grants subject to service and performance conditions for the year ended December 31, 2018 : Number of Shares Weighted Average Grant Date Fair Value Non-vested, January 1, 2018 165,918 $ 55.85 Granted 88,656 51.85 Vested (98,281 ) 55.81 Forfeited — — Non-vested, December 31, 2018 156,293 $ 55.66 |
Weighted-Average Grant Date Fair Value for Shares Granted and the Total Fair Value of Shares Vested | The following table shows the weighted-average grant date fair value for shares granted and the total fair value of shares vested during the years indicated: Years ended December 31, 2018 2017 2016 Weighted-average grant date fair value $ 51.85 $ 54.86 $ 55.90 Fair value of shares vested (in thousands) $ 5,485 $ 5,792 $ 6,209 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Shares | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and share amounts): Years ended December 31, 2018 2017 2016 Net income $ 26,751 $ 19,989 $ 22,647 Weighted average shares outstanding – basic 8,365,360 8,147,742 7,961,891 Dilutive potential shares from unvested restricted shares 182,010 252,280 182,979 Dilutive potential shares from contingent consideration — — 20,605 Weighted average shares outstanding – diluted 8,547,370 8,400,022 8,165,475 Earnings per share: Basic $ 3.20 $ 2.45 $ 2.84 Diluted $ 3.13 $ 2.38 $ 2.77 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | The following table displays the assets under management, the amount of our seed investments that are included in “Investments” and “Investments, at fair value” on the Consolidated Balance Sheets, and the financial risk of loss in each vehicle (in millions): As of December 31, 2018 Assets Under Management Corporate Investment Amount at Risk VIEs/VOEs: Westwood Funds® $ 3,236 $ 6 $ 6 Common Trust Funds 1,559 — — UCITS Fund 293 — — Private Equity Funds 9 — — Private Equity — 5 5 All other assets: Wealth Management 2,475 Institutional 9,034 Total AUM $ 16,606 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Contractual Rental Payments for Non-Cancelable Operating Leases | At December 31, 2018 , the future contractual rental payments for noncancelable operating leases for each of the following five years and thereafter are as follows (in thousands): Year ending: 2019 $ 2,110 2020 2,131 2021 2,094 2022 1,718 2023 1,725 Thereafter 3,403 Total payments due $ 13,181 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Intersegment Balances | (in thousands) Advisory Trust Westwood Holdings Eliminations Consolidated Year Ended December 31, 2018 Revenues: Net fee revenues from external sources $ 92,351 $ 28,953 $ — $ — $ 121,304 Net intersegment revenues 6,973 238 — (7,211 ) — Net interest and dividend revenue 708 202 — — 910 Other revenue 53 33 — — 86 Total revenues 100,085 29,426 — (7,211 ) 122,300 Expenses: Depreciation and amortization 276 1,764 499 — 2,539 Other operating expenses 48,970 25,467 16,597 (7,211 ) 83,823 Total expenses 49,246 27,231 17,096 (7,211 ) 86,362 Gain (loss) on sale of operations (1 ) (16 ) 541 — 524 Income (loss) before income taxes 50,838 2,179 (16,555 ) — 36,462 Income tax expense (benefit) 12,032 572 (2,893 ) — 9,711 Net income (loss) $ 38,806 $ 1,607 $ (13,662 ) $ — $ 26,751 Add: Restricted stock expense $ 8,673 $ 2,356 $ 4,254 $ — $ 15,283 Intangible amortization 95 1,537 40 — 1,672 Deferred taxes on goodwill — 237 — — 237 Economic Earnings (Loss) $ 47,574 $ 5,737 $ (9,368 ) $ — $ 43,943 Segment assets $ 226,270 $ 61,056 $ 17,977 $ (114,818 ) $ 190,485 Segment goodwill $ 3,403 $ 16,401 $ — $ — $ 19,804 Expenditures for long-lived assets $ 314 $ 295 $ 382 $ — $ 991 Year Ended December 31, 2017 Revenues: Net fee revenues from external sources $ 100,612 $ 31,621 $ — $ — $ 132,233 Net intersegment revenues 8,120 218 — (8,338 ) — Net interest and dividend revenue 546 90 — — 636 Other revenue 911 5 — — 916 Total revenues 110,189 31,934 — (8,338 ) 133,785 Expenses: Depreciation and amortization 548 1,900 468 — 2,916 Other operating expenses 58,950 28,580 17,784 (8,338 ) 96,976 Total expenses 59,498 30,480 18,252 (8,338 ) 99,892 Income (loss) before income taxes 50,691 1,454 (18,252 ) — 33,893 Income tax expense (benefit) 17,120 (47 ) (3,169 ) — 13,904 Net income $ 33,571 $ 1,501 $ (15,083 ) $ — $ 19,989 Add: Restricted stock expense $ 9,140 $ 2,641 $ 4,649 $ — $ 16,430 Intangible amortization 138 1,734 — — 1,872 Deferred taxes on goodwill 38 588 — — 626 Economic Earnings (Loss) $ 42,887 $ 6,464 $ (10,434 ) $ — $ 38,917 Segment assets $ 207,792 $ 69,174 $ 18,437 $ (102,744 ) $ 192,659 Segment goodwill $ 5,219 $ 21,925 $ — $ — $ 27,144 Expenditures for long-lived assets $ 151 $ 530 $ 203 $ — $ 884 (in thousands) Advisory Trust Westwood Holdings Eliminations Consolidated Year Ended December 31, 2016 Revenues: Net fee revenues from external sources $ 92,127 $ 30,313 $ — $ — $ 122,440 Net intersegment revenues 7,533 130 — (7,663 ) — Net interest and dividend revenue 534 13 — — 547 Other revenue 294 (260 ) — — 34 Total revenues 100,488 30,196 — (7,663 ) 123,021 Expenses: Depreciation and amortization 575 1,975 379 — 2,929 Other operating expenses 50,824 27,348 15,573 (7,663 ) 86,082 Total expenses 51,399 29,323 15,952 (7,663 ) 89,011 Income (loss) before income taxes 49,089 873 (15,952 ) — 34,010 Income tax expense (benefit) 16,331 426 (5,394 ) — 11,363 Net income (loss) $ 32,758 $ 447 $ (10,558 ) $ — $ 22,647 Add: Restricted stock expense $ 9,632 $ 3,026 $ 3,296 $ — $ 15,954 Intangible amortization 160 1,800 — — 1,960 Deferred taxes on goodwill 38 509 — — 547 Economic Earnings (Loss) $ 42,588 $ 5,782 $ (7,262 ) $ — $ 41,108 Segment assets $ 174,951 $ 67,330 $ 13,985 $ (76,588 ) $ 179,678 Segment goodwill $ 5,219 $ 21,925 $ — $ — $ 27,144 Expenditures for long-lived assets $ 705 $ 530 $ 584 $ — $ 1,819 |
Schedule of Economic Earnings | The following table provides a reconciliation of Net income to Economic Earnings (in thousands): For the years ended December 31, 2018 2017 2016 Net Income $ 26,751 $ 19,989 $ 22,647 Add: Restricted stock expense 15,283 16,430 15,954 Add: Intangible amortization 1,672 1,872 1,960 Add: Tax benefit from goodwill amortization 237 626 547 Economic Earnings $ 43,943 $ 38,917 $ 41,108 |
Property and Equipment, Net by Geographic Area | As of December 31, (in thousands) 2018 2017 Property and equipment, net, by geographic area: U.S. $ 4,381 $ 4,107 Canada 73 83 Total Property and equipment, net $ 4,454 $ 4,190 |
Concentration (Tables)
Concentration (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration | Years ended December 31, 2018 2017 2016 Advisory fees from our largest client: Asset-based fees $ 1,868 $ 6,312 $ 4,872 Performance-based fees 2,984 — — Percent of fee revenue 4.0 % 4.8 % 4.0 % |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2018 and 2017 (in thousands, except per share amounts): Quarter First Second Third Fourth 2018 Revenues $ 33,567 $ 32,760 $ 29,854 $ 26,119 Income before income taxes 10,487 10,936 7,151 7,888 Net income 7,978 7,992 5,368 5,413 Basic earnings per common share 0.96 0.95 0.64 0.65 Diluted earnings per common share 0.93 0.94 0.62 0.64 2017 Revenues $ 32,623 $ 33,756 $ 33,492 $ 33,914 Income before income taxes 7,770 10,583 5,752 9,788 Net income 6,064 6,896 4,132 2,897 Basic earnings per common share 0.75 0.84 0.51 0.35 Diluted earnings per common share 0.73 0.83 0.49 0.34 |
Description of the Business (De
Description of the Business (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Proceeds from Divestiture of Businesses | $ 10,013,000 | $ 0 | $ 0 |
Date of incorporation | Dec. 12, 2001 | ||
Common stock issued for acquisition | $ 0 | 0 | 3,734,000 |
Accounts receivable | 18,429,000 | 21,660,000 | |
Other current assets | 2,731,000 | 6,612,000 | |
Goodwill | 19,804,000 | 27,144,000 | 27,144,000 |
Intangible assets, net | 15,961,000 | 19,804,000 | |
Property and equipment, net of accumulated depreciation of $6,462 and $5,673 | 4,454,000 | 4,190,000 | |
Accounts Payable and Accrued Liabilities, Current | (2,518,000) | (3,501,000) | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 524,000 | $ 0 | $ 0 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||
Business Acquisition [Line Items] | |||
Proceeds from Divestiture of Businesses | 10,013,000 | ||
Accounts receivable | 99,000 | ||
Other current assets | 112,000 | ||
Goodwill | 7,340,000 | ||
Intangible assets, net | 2,170,000 | ||
Property and equipment, net of accumulated depreciation of $6,462 and $5,673 | 18,000 | ||
Accounts Payable and Accrued Liabilities, Current | (241,000) | ||
Other Liabilities, Noncurrent | (9,000) | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 524,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018USD ($)reporting_units | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | |||
Provision for income taxes | $ 9,711,000 | $ 13,904,000 | $ 11,363,000 |
Foreign Currency Transaction Gain (Loss), before Tax | $ (2,791,000) | 1,595,000 | (362,000) |
Number of reporting units | reporting_units | 2 | ||
Goodwill impairment loss | $ 0 | 0 | 0 |
Valuation allowance | 0 | ||
Uncertain tax position | 184,000 | 160,000 | $ 2,462,000 |
Unrecognized tax benefits | $ 51,000 | $ 46,000 | |
Effective Income Tax Rate Reconciliation, Percent | 26.60% | 41.00% | 33.40% |
Furniture and fixtures | Minimum [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 3 years | ||
Furniture and fixtures | Maximum [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 7 years | ||
Leasehold improvements | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | lesser of the estimated useful life or lease term | ||
Westwood International Advisors Inc | Canadian Plan | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Compensation expense recorded | $ 147,000 | $ 232,000 | $ 524,000 |
Retained Earnings | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (711,000) | ||
Adoption of ASU 2016-09 [Member] | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Provision for income taxes | $ 1,000,000 | ||
Effective Income Tax Rate Reconciliation, Percent | 2.90% | ||
Tax rate excluding ASU 2016-09 adoption | 43.90% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies New Accounting Pronouncements or Change in Accounting Principle (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated lease asset and net lease liability for ASU 2016-02 | $ 9,000 | ||
Provision for income taxes | $ 9,711 | $ 13,904 | $ 11,363 |
Effective Income Tax Rate Reconciliation, Percent | 26.60% | 41.00% | 33.40% |
Investments (Trading Securities
Investments (Trading Securities FV) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investment balances | ||
Cost | $ 65,875 | $ 50,681 |
Gross Unrealized Gains | 232 | 678 |
Gross Unrealized Losses | (326) | (35) |
Investments in trading securities | 65,781 | 51,324 |
U.S. Government and Government agency obligations | ||
Investment balances | ||
Cost | 48,177 | 29,367 |
Gross Unrealized Gains | 232 | 21 |
Gross Unrealized Losses | 0 | (15) |
Investments in trading securities | 48,409 | 29,373 |
Money market funds | ||
Investment balances | ||
Cost | 10,354 | 9,736 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Investments in trading securities | 10,354 | 9,736 |
Equity funds | ||
Investment balances | ||
Cost | 7,344 | 11,578 |
Gross Unrealized Gains | 0 | 657 |
Gross Unrealized Losses | (326) | (20) |
Investments in trading securities | $ 7,018 | $ 12,215 |
Investments (Other Revenue) (De
Investments (Other Revenue) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gains | $ 920 | $ 395 | $ 113 |
Realized losses | (121) | (96) | (220) |
Net realized gains (losses) | 799 | 299 | (107) |
Income tax expense (benefit) from gains (losses) | 168 | 105 | (37) |
Interest income – trading | 620 | 334 | 282 |
Dividend income | 290 | 302 | 265 |
Unrealized gains/(losses) | $ (737) | $ 617 | $ 510 |
Investments (Details Textual)
Investments (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Investments [Line Items] | ||
Corporate Investment | $ 65,781 | $ 51,324 |
UCITS Fund | ||
Schedule Of Investments [Line Items] | ||
Corporate Investment | $ 0 |
Investments Private Equity Inve
Investments Private Equity Investment (Details 2) - USD ($) | Dec. 31, 2018 | Aug. 31, 2018 | May 31, 2018 | Dec. 31, 2017 |
Investments, All Other Investments [Abstract] | ||||
Long-term Investments | $ 5,425,000 | $ 5,000,000 | $ 0 | |
Private Equity Investment Commitment | $ 5,000,000 | |||
Private Equity Investment Purchase | $ 425,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Levels) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments in securities: | ||
Investments in trading securities | $ 65,781 | $ 51,324 |
Total assets measured at fair value | 65,781 | 51,324 |
Level 1 | ||
Investments in securities: | ||
Investments in trading securities | 65,781 | 48,998 |
Total assets measured at fair value | 65,781 | 48,998 |
Level 2 | ||
Investments in securities: | ||
Investments in trading securities | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Level 3 | ||
Investments in securities: | ||
Investments in trading securities | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Inputs, Net Asset Value [Member] | ||
Investments in securities: | ||
Investments in trading securities | 0 | 2,326 |
Total assets measured at fair value | $ 0 | $ 2,326 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in goodwill | ||
Beginning balance | $ 27,144 | $ 27,144 |
Goodwill, Written off Related to Sale of Business Unit | (7,340) | 0 |
Ending balance | $ 19,804 | $ 27,144 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 1,672 | $ 1,872 | $ 1,960 |
Summary of intangible assets | |||
Gross Carrying Amount | 22,816 | 27,039 | |
Accumulated Amortization | (6,855) | (7,235) | |
Net Carrying Amount | $ 15,961 | $ 19,804 | |
Customer Relationships [Member] | |||
Summary of intangible assets | |||
Weighted Average Amortization Period (years) | 14 years 9 months 18 days | 14 years 9 months 18 days | |
Gross Carrying Amount | $ 21,431 | $ 25,396 | |
Accumulated Amortization | (5,960) | (6,302) | |
Net Carrying Amount | $ 15,471 | $ 19,094 | |
Trade Names [Member] | |||
Summary of intangible assets | |||
Weighted Average Amortization Period (years) | 4 years 10 months 15 days | 4 years 2 months 12 days | |
Gross Carrying Amount | $ 708 | $ 942 | |
Accumulated Amortization | (537) | (633) | |
Net Carrying Amount | $ 171 | $ 309 | |
Noncompete Agreements [Member] | |||
Summary of intangible assets | |||
Weighted Average Amortization Period (years) | 3 years | 2 years 10 months 24 days | |
Gross Carrying Amount | $ 259 | $ 283 | |
Accumulated Amortization | (259) | (262) | |
Net Carrying Amount | $ 0 | $ 21 | |
Internally developed software | |||
Summary of intangible assets | |||
Weighted Average Amortization Period (years) | 7 years | 7 years | |
Gross Carrying Amount | $ 418 | $ 418 | |
Accumulated Amortization | (99) | (38) | |
Net Carrying Amount | 319 | 380 | |
General and Administrative Expense [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 1,700 | $ 1,900 | $ 2,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Estimated Amortization) (Details 2) $ in Thousands | Dec. 31, 2018USD ($) |
Estimated amortization expense for intangible assets for the next five years | |
2,019 | $ 1,651 |
2,020 | 1,530 |
2,021 | 1,419 |
2,022 | 1,419 |
2,023 | $ 1,400 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets Intangible Assets disposed (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets Disposed [Line Items] | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 2,053 |
Finite-Lived Intangible Assets, Net | 2,170 |
Finite-Lived Intangible Assets Sold, Gross | 4,223 |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets Disposed [Line Items] | |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,795 |
Finite-Lived Intangible Assets, Net | 2,170 |
Finite-Lived Intangible Assets Sold, Gross | 3,965 |
Trade Names [Member] | |
Finite-Lived Intangible Assets Disposed [Line Items] | |
Finite-Lived Intangible Assets, Accumulated Amortization | 234 |
Finite-Lived Intangible Assets, Net | 0 |
Finite-Lived Intangible Assets Sold, Gross | 234 |
Noncompete Agreements [Member] | |
Finite-Lived Intangible Assets Disposed [Line Items] | |
Finite-Lived Intangible Assets, Accumulated Amortization | 24 |
Finite-Lived Intangible Assets, Net | 0 |
Finite-Lived Intangible Assets Sold, Gross | $ 24 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property and equipment | ||
Accumulated depreciation | $ (6,462) | $ (5,673) |
Net property and equipment | 4,454 | 4,190 |
Leasehold improvements | ||
Property and equipment | ||
Property and equipment cost | 4,714 | 4,170 |
Furniture and fixtures | ||
Property and equipment | ||
Property and equipment cost | 2,716 | 2,243 |
Computer hardware and office equipment | ||
Property and equipment | ||
Property and equipment cost | 2,996 | 2,745 |
Construction in progress | ||
Property and equipment | ||
Property and equipment cost | $ 490 | $ 705 |
Balance Sheet Components (Det_2
Balance Sheet Components (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Components of accumulated other comprehensive loss | ||
Foreign currency translation adjustment, net of tax of $(43) and $46 | $ (4,883) | $ (1,764) |
Accumulated other comprehensive loss | (4,883) | (1,764) |
Foreign currency translation adjustment, tax | $ (43) | $ 46 |
Income Taxes (by jurisdiction)
Income Taxes (by jurisdiction) (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 (loss) before income taxes by jurisdiction | |||||||||||
United States | $ 21,250 | $ 17,531 | $ 21,539 | ||||||||
Canada | 15,212 | 16,362 | 12,471 | ||||||||
Income (loss) before income taxes | $ 7,888 | $ 7,151 | $ 10,936 | $ 10,487 | $ 9,788 | $ 5,752 | $ 10,583 | $ 7,770 | $ 36,462 | $ 33,893 | $ 34,010 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Tax Reform [Line Items] | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 1,600,000 | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 0 | 1,578,000 | $ 0 |
Prepaid Taxes | $ 349,000 | 4,269,000 | |
Repatriation Earnings and Profits | $ 33,000,000 | ||
U.S. Federal corporate tax rate | 21.00% | 35.00% | 35.00% |
Penalties and interest | $ 140,000 | $ 181,000 | $ 101,000 |
Foreign Earnings Repatriated | 33,000,000 | ||
Unrecognized deferred tax liability | 1,700,000 | ||
Uncertain tax position | 184,000 | 160,000 | 2,462,000 |
Reasonably possible maximum decrease in uncertain tax position | 184,000 | ||
Decrease in income tax provision | 154,000 | ||
Additions for tax positions related to the current year | 28,000 | 67,000 | |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 118,000 | 1,767,000 | $ 0 |
Taxes Payable | 1,100,000 | ||
Accrued Income Taxes, Noncurrent | $ 0 | 1,017,000 | |
Tax Year 2017 [Member] | |||
Tax Reform [Line Items] | |||
Prepaid Taxes | $ 88,000 |
Income Taxes (Effective tax rat
Income Taxes (Effective tax rate reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Difference between the Federal corporate tax rate and the effective tax rate | |||
Income tax provision computed at US federal statutory rate | $ 7,657 | $ 11,859 | $ 11,893 |
Canadian rate differential | 895 | (1,398) | (1,050) |
Change in uncertain tax positions, net of federal income taxes | 19 | (3) | 542 |
State and local income taxes, net of federal income taxes | 916 | 626 | 230 |
Other, net | 61 | (525) | (252) |
Income tax expense (benefit) | $ 9,711 | $ 13,904 | $ 11,363 |
Income tax provision computed at US federal statutory rate, effective tax rate | 21.00% | 35.00% | 35.00% |
Canadian rate differential, effective tax rate | 2.40% | (4.10%) | (3.10%) |
Change in uncertain tax positions, net of federal income taxes, effective tax rate | 0.10% | 0.00% | 1.60% |
Global Intangible Low Taxed Income, Net Deductions | $ 1,573 | $ 0 | $ 0 |
Global Intangible Low Taxed Income, Percent | 4.30% | 0.00% | |
State and local income taxes, net of federal income taxes, effective tax rate | 2.50% | 1.90% | 0.60% |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | $ (1,528) | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | (4.20%) | (0.00%) | (0.00%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 0 | $ 1,578 | $ 0 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | 4.60% | |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 118 | $ 1,767 | $ 0 |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 0.30% | 5.20% | |
Other, net, effective tax rate | 0.20% | (1.60%) | (0.70%) |
Effective income tax rate | 26.60% | 41.00% | 33.40% |
Income Taxes (Provision Compone
Income Taxes (Provision Components) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current taxes: | |||
US Federal | $ 5,949 | $ 1,122 | $ 6,765 |
State and local | 1,477 | 662 | 1,136 |
Foreign | 4,034 | 4,578 | 3,313 |
Total current taxes | 11,460 | 6,362 | 11,214 |
Deferred taxes: | |||
US Federal | (1,853) | 7,569 | 314 |
State and local | (169) | 22 | 36 |
Foreign | 273 | (49) | (201) |
Total deferred taxes | (1,749) | 7,542 | 149 |
Income tax expense (benefit) | $ 9,711 | $ 13,904 | $ 11,363 |
Income Taxes (Deferred Taxes) (
Income Taxes (Deferred Taxes) (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Share-based compensation expense | $ 3,137 | $ 3,851 |
Deferred rent | 389 | 441 |
Compensation and benefits payable | 2,606 | 719 |
Federal unrecognized tax benefit | 51 | 46 |
Other | 4 | 140 |
Total deferred tax assets | 6,187 | 5,197 |
Deferred tax liabilities: | ||
Property and equipment | (620) | (586) |
Intangibles | (448) | (1,029) |
Unrealized gains on investments | (17) | (175) |
Total deferred tax liabilities | (1,085) | (1,790) |
Net deferred tax assets | $ 5,102 | $ 3,407 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Tax Credits used to pay Federal cash taxes | $ 1,800 | |
Net deferred tax assets and liabilities are reflected on our balance sheet | ||
Net deferred tax assets | $ 5,102 | $ 3,407 |
Income Taxes Income Taxes (Unce
Income Taxes Income Taxes (Uncertain Tax Positions) (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1, 2017 | $ 160,000 | $ 2,462,000 |
Additions for tax positions related to the current year | 28,000 | 67,000 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 1,593,000 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (4,000) | (776,000) |
Balance at December 31, 2017 | $ 184,000 | $ 160,000 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Details) - Dec. 31, 2018 $ in Millions | USD ($) | CAD ($) |
Banking and Thrift [Abstract] | ||
Minimum capital requirement | $ 4 | |
Excess from Minimum capital requirement | 18.6 | |
Required combined cash and receivables | $ 100,000 | |
Combined cash and receivables | $ 38 | $ 51,800,000 |
Revenue Revenue Disaggregated (
Revenue Revenue Disaggregated (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue from Contract with Customer [Text Block] | Advisory Fee Revenues Our advisory fees are generated by Westwood Management and Westwood International, which manage client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of assets under management and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on assets under management on the last day of the preceding quarter, quarterly in arrears based on assets under management on the last day of the quarter just ended or are based on a daily or monthly analysis of assets under management for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our consolidated financial statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts. Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including the UCITS Fund and collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers. Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts. Arrangements with Performance Based Obligations A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time. The revenue is based on future market performance and is subject to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied. Trust Fee Revenues Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of assets under management. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of assets under management for the quarter, or monthly, based on the month-end value of assets under management. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Consolidated Financial Statements do not contain a significant amount of deferred trust fee revenues. Revenue Disaggregated Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands): Year Ended December 31, 2018 2017 2016 Advisory Fees: Institutional $ 59,345 $ 69,029 $ 64,665 Mutual Funds 29,792 30,172 26,827 Wealth Management 230 — — Performance-based 2,984 1,411 635 Trust Fees 28,953 31,621 30,313 Other 996 1,552 581 Total revenues $ 122,300 $ 133,785 $ 123,021 We have clients in various locations around the world. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands): Year Ended December 31, 2018 Advisory Trust Performance-based Other Total Asia $ 4,305 $ — $ — $ — $ 4,305 Australia 3,783 — — — 3,783 Canada 6,605 — — 163 6,768 Europe 4,860 — — — 4,860 United States 69,814 28,953 2,984 833 102,584 Total $ 89,367 $ 28,953 $ 2,984 $ 996 $ 122,300 Year Ended December 31, 2017 Advisory Trust Performance-based Other Total Asia $ 6,312 $ — $ — $ — $ 6,312 Australia 3,334 — — — 3,334 Canada 8,737 — — 432 9,169 Europe 3,873 — — — 3,873 United States 76,945 31,621 1,411 1,120 111,097 Total $ 99,201 $ 31,621 $ 1,411 $ 1,552 $ 133,785 Year Ended December 31, 2016 Advisory Trust Performance-based Other Total Asia $ 4,872 $ — $ — $ — $ 4,872 Australia 1,758 — — — 1,758 Canada 7,528 — — 186 7,714 Europe 5,416 — — — 5,416 United States 71,918 30,313 635 395 103,261 Total $ 91,492 $ 30,313 $ 635 $ 581 $ 123,021 | ||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (122,300) | $ (133,785) | $ (123,021) |
UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (102,584) | (111,097) | (103,261) |
Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (4,860) | (3,873) | (5,416) |
CANADA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (6,768) | (9,169) | (7,714) |
AUSTRALIA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (3,783) | (3,334) | (1,758) |
Asia [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (4,305) | (6,312) | (4,872) |
Other Revenue Misc Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (996) | (1,552) | (581) |
Other Revenue Misc Services [Member] | UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (833) | (1,120) | (395) |
Other Revenue Misc Services [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Other Revenue Misc Services [Member] | CANADA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (163) | (432) | (186) |
Other Revenue Misc Services [Member] | AUSTRALIA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Other Revenue Misc Services [Member] | Asia [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
performance fee [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (2,984) | (1,411) | (635) |
performance fee [Member] | UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (2,984) | (1,411) | (635) |
performance fee [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
performance fee [Member] | CANADA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
performance fee [Member] | AUSTRALIA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
performance fee [Member] | Asia [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Trust Fee [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (28,953) | (31,621) | (30,313) |
Trust Fee [Member] | UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (28,953) | (31,621) | (30,313) |
Trust Fee [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Trust Fee [Member] | CANADA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Trust Fee [Member] | AUSTRALIA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Trust Fee [Member] | Asia [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Investment Advisory Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (89,367) | (99,201) | (91,492) |
Investment Advisory Services [Member] | UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (69,814) | (76,945) | (71,918) |
Investment Advisory Services [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (4,860) | (3,873) | (5,416) |
Investment Advisory Services [Member] | CANADA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (6,605) | (8,737) | (7,528) |
Investment Advisory Services [Member] | AUSTRALIA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (3,783) | (3,334) | (1,758) |
Investment Advisory Services [Member] | Asia [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (4,305) | (6,312) | (4,872) |
Advisory [Member] | Other Revenue Misc Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (996) | (1,552) | (581) |
Advisory [Member] | performance fee [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (2,984) | (1,411) | (635) |
Advisory [Member] | Investment Advisory Services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (59,345) | (69,029) | (64,665) |
Advisory [Member] | Mutual Fund Advisory [Member] [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (29,792) | (30,172) | (26,827) |
Advisory [Member] | Private Wealth Advisory [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (230) | 0 | 0 |
Trust [Member] | Trust Fee [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (28,953) | $ (31,621) | $ (30,313) |
Employee Benefits (Details Text
Employee Benefits (Details Textual) $ / shares in Units, $ in Millions | Apr. 26, 2018shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017CAD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2018CAD ($)shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Amount of shares purchased in the open market | $ 4,000,000 | $ 0 | $ 5,634,000 | |||
Dividends payable | 7,710,000 | 7,357,000 | ||||
Accrued dividends | 1,576,000 | 1,717,000 | ||||
Accrued liability | 635,000 | $ 1,800,000 | ||||
Vesting period | 6 years | 6 years | ||||
Litigation Settlement, Expense | $ 0 | $ 4,009,000 | $ 5 | 0 | ||
Deferred Compensation Share Based Payments | Share-based Compensation Award, Tranche One | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of deferred share units vesting | 50.00% | 20.00% | 20.00% | |||
Deferred Compensation Share Based Payments | Share-based Compensation Award, Tranche Two | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of deferred share units vesting | 25.00% | 40.00% | 40.00% | |||
Deferred Compensation Share Based Payments | Share-based Compensation Award, Tranche Three | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of deferred share units vesting | 25.00% | 60.00% | 60.00% | |||
Deferred Compensation Share Based Payments | Share Based Compensation Award Tranche Four | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of deferred share units vesting | 80.00% | 80.00% | ||||
Restricted Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Total number of shares that may be issued under the stock based compensation Plan (including predecessor plans to the Plan) | shares | 4,848,100 | 4,848,100 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | shares | 200,000 | |||||
Shares remain available for issuance | shares | 452,000 | 452,000 | ||||
Vested, shares | shares | 208,715 | |||||
Remaining unrecognized compensation cost | $ 19,500,000 | |||||
Remaining unrecognized compensation cost recognized over a remaining weighted average period | 1 year 11 months | |||||
Number of vested shares from employees on the date vesting | shares | 85,448 | |||||
Nonvested restricted shares (in shares) | shares | 440,073 | 519,375 | 440,073 | |||
Restricted Stock | Employee | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted shares granted to employees vesting period | 4 years | |||||
Restricted Stock | Director | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted shares granted to employees vesting period | 1 year | |||||
Canadian Plan | Westwood International Advisors Inc | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares remain available for issuance | shares | 75,000 | 75,000 | ||||
Fund purchases of common stock | $ 7,300,000 | $ 10 | ||||
Purchases of common stock with respect to awards granted | $ 2,600,000 | |||||
Share price | $ / shares | $ 34 | $ 66.21 | ||||
Number of shares purchased in the open market | shares | 13,031 | |||||
Vested, shares | shares | 10,327 | |||||
Fair value of vested shares | $ 409,000 | |||||
Treasury Stock, Common, Shares | shares | 36,031 | 36,031 | ||||
Purchase of treasury stock, shares | shares | 726,000 | |||||
Remaining unrecognized compensation cost | $ 655,000 | |||||
Remaining unrecognized compensation cost recognized over a remaining weighted average period | 1 year 7 months | |||||
Compensation expense recorded | $ 147,000 | $ 232,000 | 524,000 | |||
Performance Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Adjusted pre-tax income | 20,000,000 | |||||
Share Pretax Income Goal Sliding Scale Award | $ 36,000,000 | |||||
Deferred Compensation Share Based Payments | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted shares granted to employees vesting period | 4 years | 6 years | 6 years | |||
Accrued liability | $ 439,000 | $ 632,000 | ||||
Deferred share units, issued and outstanding | shares | 13,544 | 10,796 | 10,796 | |||
Minimum [Member] | Performance Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Adjusted pre-tax income | $ 20,000,000 | |||||
Share Pretax Income Goal Sliding Scale Award | $ 32,000,000 | |||||
Percentage of Pretax income Goal Earned | 25.00% | |||||
Maximum [Member] | Performance Shares | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share Pretax Income Goal Sliding Scale Award | $ 44,500,000 | |||||
Percentage of Pretax income Goal Earned | 0.00% | |||||
Mutual Fund [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Mutual fund vesting period | 2 years | 1 year | 1 year | |||
Service period of mutual fund share incentive award | 3 years | |||||
Compensation expense recorded | $ 302,000 | $ 1,200,000 | $ 1,300,000 | |||
Mutual Fund [Member] | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Service period of mutual fund share incentive award | 2 years | |||||
Benefit Plans [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Percentage of compensation | 6.00% |
Employee Benefits (Stock Comp E
Employee Benefits (Stock Comp Expense Summary table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 15,283 | $ 16,430 | $ 15,954 |
Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total income tax benefit recognized related to stock-based compensation | 3,592 | 6,168 | 4,749 |
Restricted Stock | Service condition restricted stock expense | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Add: Restricted stock expense | 9,941 | 10,334 | 10,377 |
Restricted Stock | Performance-based restricted stock expense | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Add: Restricted stock expense | 4,760 | 5,387 | 4,927 |
Restricted Stock | Restricted stock expense under the Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Add: Restricted stock expense | 14,701 | 15,721 | 15,304 |
Restricted Stock | Canadian Plan restricted stock expense | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Add: Restricted stock expense | $ 582 | $ 709 | $ 650 |
Employee Benefits (Details 1)
Employee Benefits (Details 1) - Restricted Shares Subject Only to a Service Condition | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Restricted shares subject only to a service condition: | |
Non-vested, January 1, 2015 (in shares) | shares | 519,375 |
Granted (in shares) | shares | 172,366 |
Vested (in shares) | shares | (208,715) |
Forfeited (in shares) | shares | (42,953) |
Non-vested, December 31, 2015 (in shares) | shares | 440,073 |
Non-vested, January 1, 2015 (in dollars per share) | $ / shares | $ 55.44 |
Granted (in dollars per share) | $ / shares | 55.92 |
Vested (in dollars per share) | $ / shares | 53.61 |
Forfeited (in dollars per share) | $ / shares | 56.46 |
Non-vested, December 31, 2015 (in dollars per share) | $ / shares | $ 56.40 |
Employee Benefits (Service Gran
Employee Benefits (Service Grants and Vests) (Details) - Service condition restricted stock expense - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted-average grant date fair value for shares granted and the total fair value of shares vested | |||
Weighted-average grant date fair value (in dollars per share) | $ 55.92 | $ 61.20 | $ 47.97 |
Fair value of shares vested (in thousands) | $ 11,189 | $ 10,764 | $ 9,497 |
Employee Benefits (Performance
Employee Benefits (Performance Grants and Vests) (Details) - Restricted Shares Subject to Service and Performance Conditions - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 156,293 | 165,918 | |
Vested (in dollars per share) | $ 55.81 | ||
Weighted-average grant date fair value for shares granted and the total fair value of shares vested | |||
Weighted-average grant date fair value (in dollars per share) | $ 51.85 | $ 54.86 | $ 55.90 |
Fair value of shares vested (in thousands) | $ 5,485 | $ 5,792 | $ 6,209 |
Vested, shares | 98,281 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 55.66 | $ 55.85 | |
Granted (in shares) | 88,656 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | ||
Forfeited (in dollars per share) | $ 0 |
Employee Benefits (Profit Shari
Employee Benefits (Profit Sharing and 401k) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit sharing and 401(k) contributions for the periods | |||
Profit-sharing contributions | $ 926 | $ 1,613 | $ 1,001 |
Retirement plan matching contributions | $ 1,604 | $ 1,602 | $ 1,518 |
Earnings Per Share (Anti-diluti
Earnings Per Share (Anti-dilutive Shares) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive restricted shares or options | 7,300 | 6,614 | 984 |
Earnings Per Share (Computaton
Earnings Per Share (Computaton of Basic and Diluted EPS) (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 | |
Computation of Basic and Diluted Shares | |||||||||||
Net income | $ 5,413 | $ 5,368 | $ 7,992 | $ 7,978 | $ 2,897 | $ 4,132 | $ 6,896 | $ 6,064 | $ 26,751 | $ 19,989 | $ 22,647 |
Weighted average shares outstanding – basic (in shares) | 8,365,360 | 8,147,742 | 7,961,891 | ||||||||
Dilutive potential shares from unvested restricted shares (in shares) | 182,010 | 252,280 | 182,979 | ||||||||
Dilutive potential shares from contingent consideration (in shares) | 0 | 0 | 20,605 | ||||||||
Weighted average shares outstanding – diluted (in shares) | 8,547,370 | 8,400,022 | 8,165,475 | ||||||||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.65 | $ 0.64 | $ 0.95 | $ 0.96 | $ 0.35 | $ 0.51 | $ 0.84 | $ 0.75 | $ 3.20 | $ 2.45 | $ 2.84 |
Diluted (in dollars per share) | $ 0.64 | $ 0.62 | $ 0.94 | $ 0.93 | $ 0.34 | $ 0.49 | $ 0.83 | $ 0.73 | $ 3.13 | $ 2.38 | $ 2.77 |
Variable Interest Entities (Det
Variable Interest Entities (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Investments in trading securities | $ 65,781 | $ 51,324 | |
Fee revenues from Westwood VIEs | 46,100 | 51,900 | $ 52,200 |
Variable Interest Entity [Member] | |||
Variable Interest Entity [Line Items] | |||
Investments in trading securities | 6,100 | $ 10,700 | |
Common Trust Funds | |||
Variable Interest Entity [Line Items] | |||
Investments in trading securities | 0 | ||
UCITS Fund | |||
Variable Interest Entity [Line Items] | |||
Investments in trading securities | $ 0 |
Variable Interest Entities (D_2
Variable Interest Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entities | ||
Assets Under Management | $ 16,606,000 | |
Corporate Investment | 65,781 | $ 51,324 |
Westwood Funds | ||
Variable Interest Entities | ||
Assets Under Management | 3,236,000 | |
Corporate Investment | 6,000 | |
Amount at Risk | 6,000 | |
Common Trust Funds | ||
Variable Interest Entities | ||
Assets Under Management | 1,559,000 | |
Corporate Investment | 0 | |
Amount at Risk | 0 | |
UCITS Fund | ||
Variable Interest Entities | ||
Assets Under Management | 293,000 | |
Corporate Investment | 0 | |
Amount at Risk | 0 | |
Westwood Hospitality Fund I LLC [Member] | ||
Variable Interest Entities | ||
Assets Under Management | 9,000 | |
Corporate Investment | 0 | |
Amount at Risk | 0 | |
Private Equity Investments [Member] | ||
Variable Interest Entities | ||
Assets Under Management | 0 | |
Corporate Investment | 5,000 | |
Amount at Risk | 5,000 | |
Private Wealth | ||
Variable Interest Entities | ||
Assets Under Management | 2,475,000 | |
Institutional | ||
Variable Interest Entities | ||
Assets Under Management | $ 9,034,000 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
UCITS Fund | |||
Related Party Transaction [Line Items] | |||
Fees earned from related party | $ 4,200,000 | $ 4,000,000 | $ 3,100,000 |
Fees unpaid from related party | 295,000 | 423,000 | |
Private Equity Investments [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Purchases from Related Party | 1,100,000 | 140,000 | |
Trust | |||
Related Party Transaction [Line Items] | |||
Due from related party | 84,000 | 98,000 | |
Fees earned from related party | $ 360,000 | $ 375,000 | $ 409,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Textual) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017CAD ($) | |
Loss Contingencies [Line Items] | |||||
Rental expense for facilities and equipment leases | $ 2,300,000 | $ 2,400,000 | $ 2,400,000 | ||
Litigation Settlement, Amount Awarded to Other Party | $ 10 | ||||
Litigation Settlement, Expense | $ 0 | 4,009,000 | $ 5 | 0 | |
Percentage of defense costs which will be covered by insurance | 50.00% | ||||
Insurance proceeds | $ 233,000 | 276,000 | $ 430,000 | ||
Loss contingency, receivable | 212,000 | ||||
First Lawsuit By A G F | |||||
Loss Contingencies [Line Items] | |||||
Lawsuit filing date | On August 3, 2012, AGF Management Limited and AGF Investments Inc. (together “AGF”) filed a lawsuit in the Ontario Superior Court of Justice against Westwood, certain Westwood employees and the executive recruiting firm of Warren International, LLC (“Warren”). | ||||
Second Lawsuit by AGF | |||||
Loss Contingencies [Line Items] | |||||
Lawsuit filing date | November 6, 2012, AGF filed a second lawsuit against Westwood, Westwood Management and an employee of a Westwood subsidiary | ||||
Insurance Settlement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Insurance proceeds | $ 4,000,000 | ||||
Loss contingency, receivable | $ 4,000,000 | $ 5 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) $ in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Litigation Settlement, Expense | $ 0 | $ 4,009 | $ 5 | $ 0 |
Future contractual rental payments for non-cancelable operating leases | ||||
2,019 | 2,110 | |||
2,020 | 2,131 | |||
2,021 | 2,094 | |||
2,022 | 1,718 | |||
2,023 | 1,725 | |||
Thereafter | 3,403 | |||
Total payments due | $ 13,181 |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 12 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Reporting (Details)
Segment Reporting (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 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue From External Sources | $ 121,304,000 | $ 132,233,000 | $ 122,440,000 | ||||||||
Net intersegment revenues | 0 | 0 | 0 | ||||||||
Net interest and dividend revenue | 910,000 | 636,000 | 547,000 | ||||||||
Other revenue | 86,000 | 916,000 | 34,000 | ||||||||
Total revenues | $ 26,119,000 | $ 29,854,000 | $ 32,760,000 | $ 33,567,000 | $ 33,914,000 | $ 33,492,000 | $ 33,756,000 | $ 32,623,000 | 122,300,000 | 133,785,000 | 123,021,000 |
Expenses: | |||||||||||
Depreciation and amortization | 2,539,000 | 2,916,000 | 2,929,000 | ||||||||
Other operating expenses | 83,823,000 | 96,976,000 | 86,082,000 | ||||||||
Total expenses | 86,362,000 | 99,892,000 | 89,011,000 | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 524,000 | 0 | 0 | ||||||||
Income (loss) before income taxes | 7,888,000 | 7,151,000 | 10,936,000 | 10,487,000 | 9,788,000 | 5,752,000 | 10,583,000 | 7,770,000 | 36,462,000 | 33,893,000 | 34,010,000 |
Income tax expense (benefit) | 9,711,000 | 13,904,000 | 11,363,000 | ||||||||
Net income | 5,413,000 | $ 5,368,000 | $ 7,992,000 | $ 7,978,000 | 2,897,000 | $ 4,132,000 | $ 6,896,000 | $ 6,064,000 | 26,751,000 | 19,989,000 | 22,647,000 |
Restricted stock expense | 15,283,000 | 16,430,000 | 15,954,000 | ||||||||
Amortization of intangible assets | 1,672,000 | 1,872,000 | 1,960,000 | ||||||||
Deferred taxes on goodwill | 237,000 | 626,000 | 547,000 | ||||||||
Economic Earnings (Loss) | 43,943,000 | 38,917,000 | 41,108,000 | ||||||||
Assets | 190,485,000 | 192,659,000 | 190,485,000 | 192,659,000 | 179,678,000 | ||||||
Segment goodwill | 19,804,000 | 27,144,000 | 19,804,000 | 27,144,000 | 27,144,000 | ||||||
Expenditures for long-lived assets | 991,000 | 884,000 | 1,819,000 | ||||||||
Operating Segments | Advisory [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue From External Sources | 92,351,000 | 100,612,000 | 92,127,000 | ||||||||
Net intersegment revenues | 6,973,000 | 8,120,000 | 7,533,000 | ||||||||
Net interest and dividend revenue | 708,000 | 546,000 | 534,000 | ||||||||
Other revenue | 53,000 | 911,000 | 294,000 | ||||||||
Total revenues | 100,085,000 | 110,189,000 | 100,488,000 | ||||||||
Expenses: | |||||||||||
Depreciation and amortization | 276,000 | 548,000 | 575,000 | ||||||||
Other operating expenses | 48,970,000 | 58,950,000 | 50,824,000 | ||||||||
Total expenses | 49,246,000 | 59,498,000 | 51,399,000 | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (1,000) | ||||||||||
Income (loss) before income taxes | 50,838,000 | 50,691,000 | 49,089,000 | ||||||||
Income tax expense (benefit) | 12,032,000 | 17,120,000 | 16,331,000 | ||||||||
Net income | 38,806,000 | 33,571,000 | 32,758,000 | ||||||||
Restricted stock expense | 8,673,000 | 9,140,000 | 9,632,000 | ||||||||
Amortization of intangible assets | 95,000 | 138,000 | 160,000 | ||||||||
Deferred taxes on goodwill | 0 | 38,000 | 38,000 | ||||||||
Economic Earnings (Loss) | 47,574,000 | 42,887,000 | 42,588,000 | ||||||||
Assets | 226,270,000 | 207,792,000 | 226,270,000 | 207,792,000 | 174,951,000 | ||||||
Segment goodwill | 3,403,000 | 5,219,000 | 3,403,000 | 5,219,000 | 5,219,000 | ||||||
Expenditures for long-lived assets | 314,000 | 151,000 | 705,000 | ||||||||
Operating Segments | Trust [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue From External Sources | 28,953,000 | 31,621,000 | 30,313,000 | ||||||||
Net intersegment revenues | 238,000 | 218,000 | 130,000 | ||||||||
Net interest and dividend revenue | 202,000 | 90,000 | 13,000 | ||||||||
Other revenue | 33,000 | 5,000 | (260,000) | ||||||||
Total revenues | 29,426,000 | 31,934,000 | 30,196,000 | ||||||||
Expenses: | |||||||||||
Depreciation and amortization | 1,764,000 | 1,900,000 | 1,975,000 | ||||||||
Other operating expenses | 25,467,000 | 28,580,000 | 27,348,000 | ||||||||
Total expenses | 27,231,000 | 30,480,000 | 29,323,000 | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (16,000) | ||||||||||
Income (loss) before income taxes | 2,179,000 | 1,454,000 | 873,000 | ||||||||
Income tax expense (benefit) | 572,000 | (47,000) | 426,000 | ||||||||
Net income | 1,607,000 | 1,501,000 | 447,000 | ||||||||
Restricted stock expense | 2,356,000 | 2,641,000 | 3,026,000 | ||||||||
Amortization of intangible assets | 1,537,000 | 1,734,000 | 1,800,000 | ||||||||
Deferred taxes on goodwill | 237,000 | 588,000 | 509,000 | ||||||||
Economic Earnings (Loss) | 5,737,000 | 6,464,000 | 5,782,000 | ||||||||
Assets | 61,056,000 | 69,174,000 | 61,056,000 | 69,174,000 | 67,330,000 | ||||||
Segment goodwill | 16,401,000 | 21,925,000 | 16,401,000 | 21,925,000 | 21,925,000 | ||||||
Expenditures for long-lived assets | 295,000 | 530,000 | 530,000 | ||||||||
Westwood Holdings | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue From External Sources | 0 | 0 | 0 | ||||||||
Net intersegment revenues | 0 | 0 | 0 | ||||||||
Net interest and dividend revenue | 0 | 0 | 0 | ||||||||
Other revenue | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Expenses: | |||||||||||
Depreciation and amortization | 499,000 | 468,000 | 379,000 | ||||||||
Other operating expenses | 16,597,000 | 17,784,000 | 15,573,000 | ||||||||
Total expenses | 17,096,000 | 18,252,000 | 15,952,000 | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 541,000 | ||||||||||
Income (loss) before income taxes | (16,555,000) | (18,252,000) | (15,952,000) | ||||||||
Income tax expense (benefit) | (2,893,000) | (3,169,000) | (5,394,000) | ||||||||
Net income | (13,662,000) | (15,083,000) | (10,558,000) | ||||||||
Restricted stock expense | 4,254,000 | 4,649,000 | 3,296,000 | ||||||||
Amortization of intangible assets | 40,000 | 0 | 0 | ||||||||
Deferred taxes on goodwill | 0 | 0 | 0 | ||||||||
Economic Earnings (Loss) | (9,368,000) | (10,434,000) | (7,262,000) | ||||||||
Assets | 17,977,000 | 18,437,000 | 17,977,000 | 18,437,000 | 13,985,000 | ||||||
Segment goodwill | 0 | 0 | 0 | 0 | 0 | ||||||
Expenditures for long-lived assets | 382,000 | 203,000 | 584,000 | ||||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue From External Sources | 0 | 0 | 0 | ||||||||
Net intersegment revenues | (7,211,000) | (8,338,000) | (7,663,000) | ||||||||
Net interest and dividend revenue | 0 | 0 | 0 | ||||||||
Other revenue | 0 | 0 | 0 | ||||||||
Total revenues | (7,211,000) | (8,338,000) | (7,663,000) | ||||||||
Expenses: | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other operating expenses | (7,211,000) | (8,338,000) | (7,663,000) | ||||||||
Total expenses | (7,211,000) | (8,338,000) | (7,663,000) | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | ||||||||||
Income (loss) before income taxes | 0 | 0 | 0 | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Net income | 0 | 0 | 0 | ||||||||
Restricted stock expense | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Deferred taxes on goodwill | 0 | 0 | 0 | ||||||||
Economic Earnings (Loss) | 0 | 0 | 0 | ||||||||
Assets | (114,818,000) | (102,744,000) | (114,818,000) | (102,744,000) | (76,588,000) | ||||||
Segment goodwill | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Expenditures for long-lived assets | $ 0 | $ 0 | $ 0 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Net Income to Economic Earnings (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 [Abstract] | |||||||||||
Net income | $ 5,413 | $ 5,368 | $ 7,992 | $ 7,978 | $ 2,897 | $ 4,132 | $ 6,896 | $ 6,064 | $ 26,751 | $ 19,989 | $ 22,647 |
Restricted stock expense | 15,283 | 16,430 | 15,954 | ||||||||
Amortization of intangible assets | 1,672 | 1,872 | 1,960 | ||||||||
Add: Tax benefit from goodwill amortization | 237 | 626 | 547 | ||||||||
Economic Earnings (Loss) | $ 43,943 | $ 38,917 | $ 41,108 |
Segment Reporting - Property an
Segment Reporting - Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Net property and equipment | $ 4,454 | $ 4,190 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Net property and equipment | 4,381 | 4,107 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Net property and equipment | $ 73 | $ 83 |
Concentration (Details Textual)
Concentration (Details Textual) - Sales Revenue, Net - Customer Concentration Risk - Customers | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Number of largest clients | 10 | 10 | 10 |
Revenue accounted by major clients | 24.00% | 20.00% | 20.00% |
Concentration (Details)
Concentration (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 122,300 | $ 133,785 | $ 123,021 |
Sales Revenue, Net | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Revenue accounted by major clients | 24.00% | 20.00% | 20.00% |
Westwood Management | Sales Revenue, Net | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Revenue accounted by major clients | 4.00% | 4.80% | 4.00% |
Asset Management [Member] | Sales Revenue, Net | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,868 | $ 6,312 | $ 4,872 |
Investment Performance [Member] | Sales Revenue, Net | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,984 | $ 0 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | Feb. 22, 2019 | Feb. 06, 2019 |
Subsequent Event [Line Items] | ||
Dividends declared per share | $ 0.72 | |
Restricted Stock | ||
Subsequent Event [Line Items] | ||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 7.2 | |
Restricted stock issued | 185,000 |
Quarterly Financial Data (Detai
Quarterly Financial Data (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 Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 26,119 | $ 29,854 | $ 32,760 | $ 33,567 | $ 33,914 | $ 33,492 | $ 33,756 | $ 32,623 | $ 122,300 | $ 133,785 | $ 123,021 |
Income (loss) before income taxes | 7,888 | 7,151 | 10,936 | 10,487 | 9,788 | 5,752 | 10,583 | 7,770 | 36,462 | 33,893 | 34,010 |
Net income | $ 5,413 | $ 5,368 | $ 7,992 | $ 7,978 | $ 2,897 | $ 4,132 | $ 6,896 | $ 6,064 | $ 26,751 | $ 19,989 | $ 22,647 |
Basic earnings per common share (in dollars per share) | $ 0.65 | $ 0.64 | $ 0.95 | $ 0.96 | $ 0.35 | $ 0.51 | $ 0.84 | $ 0.75 | $ 3.20 | $ 2.45 | $ 2.84 |
Diluted earnings per common share (in dollars per share) | $ 0.64 | $ 0.62 | $ 0.94 | $ 0.93 | $ 0.34 | $ 0.49 | $ 0.83 | $ 0.73 | $ 3.13 | $ 2.38 | $ 2.77 |