Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 21, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | SEI INVESTMENTS CO | |
Entity Central Index Key | 350,894 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SEIC | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 161,326,155 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 594,767 | $ 679,661 |
Restricted cash | 5,500 | 5,500 |
Receivables from investment products | 47,066 | 48,098 |
Receivables, net of allowance for doubtful accounts of $946 and $649 | 242,084 | 223,023 |
Securities owned | 21,290 | 21,235 |
Other current assets | 30,213 | 26,207 |
Total Current Assets | 940,920 | 1,003,724 |
Property and Equipment, net of accumulated depreciation of $272,292 and $259,501 | 138,696 | 143,977 |
Capitalized Software, net of accumulated amortization of $281,407 and $259,358 | 288,070 | 290,522 |
Investments Available for Sale | 88,372 | 81,294 |
Investments in Affiliated Funds, at fair value | 4,420 | 4,039 |
Investment in Unconsolidated Affiliates | 41,996 | 49,580 |
Deferred Income Taxes | 4,041 | 0 |
Other Assets, net | 13,856 | 15,492 |
Total Assets | 1,520,371 | 1,588,628 |
Current Liabilities: | ||
Accounts payable | 3,541 | 4,511 |
Accrued liabilities | 145,717 | 217,587 |
Deferred revenue | 3,479 | 2,385 |
Total Current Liabilities | 152,737 | 224,483 |
Deferred Income Taxes | 67,089 | 63,028 |
Other Long-term Liabilities | 12,262 | 11,397 |
Total Liabilities | 232,088 | 298,908 |
Commitments and Contingencies | ||
SEI Investments shareholders' equity: | ||
Common stock, $.01 par value, 750,000 shares authorized; 161,191 and 163,733 shares issued and outstanding | 1,612 | 1,637 |
Capital in excess of par value | 933,434 | 910,513 |
Retained earnings | 380,664 | 402,860 |
Accumulated other comprehensive loss, net | (27,427) | (25,290) |
Total Shareholders' Equity | 1,288,283 | 1,289,720 |
Total Liabilities and Shareholders' Equity | $ 1,520,371 | $ 1,588,628 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Receivables, allowance for doubtful accounts | $ 946 | $ 649 |
Property and Equipment, accumulated depreciation | 272,292 | 259,501 |
Capitalized Software, accumulated amortization | $ 281,407 | $ 259,358 |
SEI Investments shareholders' equity: | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 161,191,000 | 163,733,000 |
Common stock, shares outstanding | 161,191,000 | 163,733,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Asset management, administration and distribution fees | $ 262,275 | $ 256,748 | $ 513,712 | $ 503,516 |
Information processing and software servicing fees | 74,992 | 73,699 | 148,391 | 144,352 |
Transaction-based and trade execution fees | 6,564 | 7,298 | 15,991 | 15,321 |
Total revenues | 343,831 | 337,745 | 678,094 | 663,189 |
Expenses: | ||||
Subadvisory, distribution and other asset management costs | 40,870 | 40,872 | 80,065 | 79,389 |
Software royalties and other information processing costs | 7,677 | 8,057 | 15,425 | 15,566 |
Brokerage commissions | 5,093 | 5,431 | 12,201 | 11,403 |
Compensation, benefits and other personnel | 102,282 | 98,999 | 204,213 | 193,185 |
Stock-based compensation | 4,189 | 3,859 | 7,978 | 7,609 |
Consulting, outsourcing and professional fees | 39,575 | 36,969 | 78,081 | 72,597 |
Data processing and computer related | 15,782 | 14,527 | 31,500 | 27,927 |
Facilities, supplies and other costs | 17,122 | 16,659 | 33,119 | 33,718 |
Amortization | 11,284 | 10,611 | 22,296 | 20,969 |
Depreciation | 6,434 | 5,843 | 12,881 | 11,838 |
Total expenses | 250,308 | 241,827 | 497,759 | 474,201 |
Income from operations | 93,523 | 95,918 | 180,335 | 188,988 |
Net gain (loss) from investments | 250 | (38) | 124 | 212 |
Interest and dividend income | 1,033 | 755 | 2,116 | 1,724 |
Interest expense | (187) | (114) | (301) | (227) |
Equity in earnings of unconsolidated affiliates | 30,285 | 37,289 | 59,477 | 71,322 |
Gain on sale of subsidiary | 0 | 0 | 2,791 | 2,791 |
Income before income taxes | 124,904 | 133,810 | 244,542 | 264,810 |
Income taxes | 43,899 | 47,570 | 86,040 | 93,959 |
Net income | $ 81,005 | $ 86,240 | $ 158,502 | $ 170,851 |
Basic earnings per common share | $ 0.50 | $ 0.52 | $ 0.98 | $ 1.03 |
Shares used to compute basic earnings per share | 161,795 | 166,152 | 162,404 | 166,423 |
Diluted earnings per common share | $ 0.49 | $ 0.51 | $ 0.96 | $ 1 |
Shares used to compute diluted earnings per share | 165,088 | 169,973 | 165,616 | 170,338 |
Dividends declared per common share | $ 0.26 | $ 0.24 | $ 0.26 | $ 0.24 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 81,005 | $ 86,240 | $ 158,502 | $ 170,851 |
Other comprehensive (loss) gain, net of tax: | ||||
Foreign currency translation adjustments | (5,080) | 4,530 | (2,651) | (4,253) |
Unrealized (loss) gain on investments: | ||||
Unrealized gains (losses) during the period, net of income taxes of $(49), $326, $(240) and $301 | 20 | (527) | 350 | (520) |
Less: reclassification adjustment for (gains) losses realized in net income, net of income taxes of $12, $(39), $(91) and $13 | (23) | 70 | 164 | (24) |
Unrealized (loss) gain on investments: | (3) | (457) | 514 | (544) |
Total other comprehensive (loss) gain, net of tax | (5,083) | 4,073 | (2,137) | (4,797) |
Comprehensive income | $ 75,922 | $ 90,313 | $ 156,365 | $ 166,054 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) during the period, income tax (expense) benefit | $ (49) | $ 326 | $ (240) | $ 301 |
Reclassification adjustment for (gains) losses realized in net income, income tax expense (benefit) | $ 12 | $ (39) | $ (91) | $ 13 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 158,502 | $ 170,851 |
Adjustments to reconcile net income to net cash provided by operating activities (See Note 1) | 948 | (14,067) |
Net cash provided by operating activities | 159,450 | 156,784 |
Cash flows from investing activities: | ||
Additions to restricted cash | 0 | (834) |
Additions to property and equipment | (9,049) | (15,727) |
Additions to capitalized software | (19,597) | (16,069) |
Purchases of marketable securities | (32,648) | (26,854) |
Prepayments and maturities of marketable securities | 26,148 | 16,772 |
Sales of marketable securities | 185 | 6,862 |
Receipt of contingent payment from sale of SEI AK | 2,791 | 2,791 |
Other investing activities | 200 | (1,000) |
Net cash used in investing activities | (31,970) | (34,059) |
Cash flows from financing activities: | ||
Purchase and retirement of common stock | (155,730) | (133,429) |
Proceeds from issuance of common stock | 26,336 | 42,661 |
Tax benefit on stock options exercised | 4,004 | 8,233 |
Payment of dividends | (84,626) | (80,030) |
Net cash used in financing activities | (210,016) | (162,565) |
Effect of exchange rate changes on cash and cash equivalents | (2,358) | (2,765) |
Net decrease in cash and cash equivalents | (84,894) | (42,605) |
Cash and cash equivalents, beginning of period | 679,661 | 667,446 |
Cash and cash equivalents, end of period | $ 594,767 | $ 624,841 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations SEI Investments Company (the Company), a Pennsylvania corporation, provides investment processing, investment management, and investment operations solutions to financial institutions, financial advisors, institutional investors, investment managers and ultra-high-net-worth families in the United States, Canada, the United Kingdom, continental Europe and various other locations throughout the world. Investment processing solutions consist of application and business process outsourcing services, professional services and transaction-based services. Revenues from investment processing solutions are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations, except for fees earned associated with trade execution services which are recognized in Transaction-based and trade execution fees. Investment management programs consist of mutual funds, alternative investments and separate accounts. These include a series of money market, equity, fixed-income and alternative investment portfolios, primarily in the form of registered investment companies. The Company serves as the administrator and investment advisor for many of these products. Revenues from investment management programs are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Investment operations solutions offer investment managers support for traditional investment products such as mutual funds, collective investment trusts, exchange-traded funds, and institutional and separate accounts, by providing outsourcing services including fund and investment accounting, administration, reconciliation, investor servicing and client reporting. These solutions also provide support to managers focused on alternative investments who manage hedge funds, funds of hedge funds, private equity funds and real estate funds, across registered, partnership and separate account structures domiciled in the United States and overseas. Revenues from investment operations solutions are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain financial information and accompanying note disclosure normally included in the Company’s Annual Report on Form 10-K have been condensed or omitted. The interim financial information is unaudited but reflects all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of financial position of the Company as of June 30, 2016 , the results of operations for the three and six months ended June 30, 2016 and 2015 , and cash flows for the six -month periods ended June 30, 2016 and 2015 . These interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . There have been no significant changes in significant accounting policies during the six months ended June 30, 2016 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 with the exception of the adoption of Accounting Standards Update (ASU) No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis (See Note 3) and ASU No. 2015-07, Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (See Note 5). Cash and Cash Equivalents Cash and cash equivalents includes $311,152 and $448,957 at June 30, 2016 and December 31, 2015 , respectively, primarily invested in SEI-sponsored open-ended money market mutual funds. The SEI-sponsored mutual funds are Level 1 assets. Restricted Cash Restricted cash includes $5,000 at June 30, 2016 and December 31, 2015 segregated for regulatory purposes related to trade-execution services conducted by SEI Investments (Europe) Limited. Restricted cash also includes $500 at June 30, 2016 and December 31, 2015 , respectively, segregated in special reserve accounts for the benefit of customers of the Company’s broker-dealer subsidiary, SEI Investments Distribution Co. (SIDCO), in accordance with certain rules established by the Securities and Exchange Commission for broker-dealers. Capitalized Software The Company capitalized $19,597 and $16,069 of software development costs during the six months ended June 30, 2016 and 2015 , respectively. The Company's software development costs primarily relate to the continued development of the SEI Wealth Platform SM (the Platform). The Company capitalized $16,120 and $13,649 of software development costs for significant enhancements to the Platform during the six months ended June 30, 2016 and 2015 , respectively. As of June 30, 2016 , the net book value of the Platform was $279,692 . The Platform has an estimated useful life of 15 years and a weighted average remaining life of 6.0 years . Amortization expense for the Platform was $22,049 and $20,855 during the six months ended June 30, 2016 and 2015 , respectively. The Company also capitalized $3,477 and $2,420 of software development costs during the six months ended June 30, 2016 and 2015 , respectively, related to a new application for the Investment Managers segment. Earnings per Share The calculations of basic and diluted earnings per share for the three months ended June 30 , 2016 and 2015 are: For the Three Months Ended June 30, 2016 Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per common share $ 81,005 161,795,000 $ 0.50 Dilutive effect of stock options — 3,293,000 Diluted earnings per common share $ 81,005 165,088,000 $ 0.49 For the Three Months Ended June 30, 2015 Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per common share $ 86,240 166,152,000 $ 0.52 Dilutive effect of stock options — 3,821,000 Diluted earnings per common share $ 86,240 169,973,000 $ 0.51 Employee stock options to purchase 10,388,000 and 10,007,000 shares of common stock, with an average exercise price of $34.06 and $30.02 , were outstanding during the three months ended June 30 , 2016 and 2015 , respectively, but not included in the computation of diluted earnings per common share because either the performance conditions have not been satisfied or would have been satisfied if the reporting date was the end of the contingency period or the option’s exercise price was greater than the average market price of the Company’s common stock and the effect on diluted earnings per common share would have been anti-dilutive. The calculations of basic and diluted earnings per share for the six months ended June 30 , 2016 and 2015 are: For the Six Months Ended June 30, 2016 Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per common share $ 158,502 162,404,000 $ 0.98 Dilutive effect of stock options — 3,212,000 Diluted earnings per common share $ 158,502 165,616,000 $ 0.96 For the Six Months Ended June 30, 2015 Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per common share $ 170,851 166,423,000 $ 1.03 Dilutive effect of stock options — 3,915,000 Diluted earnings per common share $ 170,851 170,338,000 $ 1.00 Employee stock options to purchase 10,447,000 and 10,029,000 shares of common stock, with an average exercise price of $34.05 and $30.02 , were outstanding during the six months ended June 30, 2016 and 2015 , respectively, but not included in the computation of diluted earnings per common share because either the performance conditions have not been satisfied or would have been satisfied if the reporting date was the end of the contingency period or the option’s exercise price was greater than the average market price of the Company’s common stock and the effect on diluted earnings per common share would have been anti-dilutive. Statements of Cash Flows For purposes of the Consolidated Statements of Cash Flows, the Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. The following table provides the details of the adjustments to reconcile net income to net cash provided by operating activities for the six months ended June 30 : 2016 2015 Net income $ 158,502 $ 170,851 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 12,881 11,838 Amortization 22,296 20,969 Equity in earnings of unconsolidated affiliates (59,477 ) (71,322 ) Distributions received from unconsolidated affiliate 67,061 74,847 Stock-based compensation 7,978 7,609 Provision for losses on receivables 297 (128 ) Deferred income tax expense (311 ) 482 Gain from sale of SEI AK (2,791 ) (2,791 ) Net gain from investments (124 ) (212 ) Change in other long-term liabilities 865 914 Change in other assets 1,084 (643 ) Other 1,030 (1,269 ) Change in current asset and liabilities Decrease (increase) in Receivables from investment products 1,032 1,473 Receivables (19,357 ) (21,502 ) Other current assets (4,006 ) (6,745 ) Increase (decrease) in Accounts payable (970 ) (3,813 ) Accrued liabilities (27,634 ) (27,412 ) Deferred revenue 1,094 3,638 Total adjustments 948 (14,067 ) Net cash provided by operating activities $ 159,450 $ 156,784 New Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The updated standard permits the use of either the retrospective or cumulative effect transition method. ASU 2014-09 currently becomes effective for the Company during the first quarter 2018. The Company is currently evaluating the transition method that will be elected and the effect that the updated standard will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08), that amends the principal versus agent guidance in ASU 2014-09. ASU 2016-08 clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. ASU 2016-08 also provides additional guidance about how to apply the control principle when services are provided and when goods or services are combined with other goods or services. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing (ASU 2016-10) that amends the revenue guidance in ASU 2014-09 on identifying performance obligations and accounting for licenses of intellectual property. ASU 2016-10 changed the FASB's previous proposals on renewals of right-to-use licenses and contractual restrictions. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) that will significantly change the income statement impact of equity investments held by an entity, and the recognition of changes in fair value of financial liabilities when the fair value option is elected. ASU 2016-01 becomes effective for the Company during the first quarter 2018. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02) requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The updated standard is effective for the Company beginning in the first quarter of 2019. Early adoption is permitted. The Company is currently evaluating the transition method that will be elected and the effect that the updated standard will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) requiring an entity to record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the income statement. ASU 2016-09 will also require an entity to elect an accounting policy to either estimate the number of forfeitures or account for forfeitures when they occur. ASU 2016-09 becomes effective for the Company during the first quarter 2017. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation. |
Investment In Unconsolidated Af
Investment In Unconsolidated Affiliates | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment In Unconsolidated Affiliates | Investment in Unconsolidated Affiliates LSV Asset Management The Company has an investment in LSV Asset Management (LSV), a registered investment advisor that provides investment advisory services primarily to institutions, including pension plans and investment companies. LSV is currently an investment sub-advisor for a limited number of SEI-sponsored mutual funds. The Company accounts for its interest in LSV using the equity method because of its less than 50 percent ownership. The Company’s interest in the net assets of LSV is reflected in Investment in unconsolidated affiliates on the accompanying Consolidated Balance Sheets and its interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statements of Operations. At June 30, 2016 , the Company’s total investment in LSV was $41,996 . The Company receives partnership distributions from LSV on a quarterly basis. The Company received partnership distributions from LSV of $67,061 and $74,847 in the six months ended June 30 , 2016 and 2015 , respectively. The Company’s proportionate share in the earnings of LSV was $30,285 and $38,327 during the three months ended June 30 , 2016 and 2015 , respectively. During the six months ended June 30, 2016 and 2015 , the Company’s proportionate share in the earnings of LSV was $59,477 and $72,672 , respectively. The following table contains the condensed financial operations of LSV for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues $ 95,825 $ 117,543 $ 188,478 $ 223,438 Net income 77,790 97,757 152,247 185,182 In April 2016, LSV provided an interest in the partnership to select key employees which reduced the ownership percentage of each existing partner on a pro-rata basis. As a result, the Company's total partnership interest in LSV was reduced from approximately 39.2 percent to approximately 38.9 percent . Guaranty Agreement with LSV Employee Group III In October 2012, LSV Employee Group III purchased a portion of the partnership interest of three existing LSV employees for $77,700 , of which $69,930 was financed through two syndicated term loan facilities contained in a credit agreement with The PrivateBank and Trust Company. The Company provided an unsecured guaranty for $45,000 of the obligations of LSV Employee Group III to the lenders through a guaranty agreement. The lenders have the right to seek payment from the Company in the event of a default by LSV Employee Group III. LSV agreed to provide an unsecured guaranty for $24,930 of the obligations of LSV Employee Group III to the lenders through a separate guaranty agreement. The Company’s direct interest in LSV was unchanged as a result of this transaction. The Company has determined that LSV Employee Group III is a VIE; however, the Company is not considered the primary beneficiary because it does not have the power to direct the activities that most significantly impact the economic performance of LSV Employee Group III either directly or through any financial responsibility from the guaranty. In September 2014, LSV Employee Group III made the final principal payment related to the term loan guaranteed by LSV. As of July 21, 2016 , the remaining unpaid principal balance of the term loan guaranteed by the Company was $12,700 . LSV Employee Group III has met all financial obligations to date regarding the scheduled repayment of the term loans since origination. The Company, in its capacity as guarantor, currently has no obligation of payment relating to the term loan of LSV Employee Group III and, furthermore, fully expects that LSV Employee Group III will meet all of their future obligations regarding the term loan. |
Variable Interest Entities - In
Variable Interest Entities - Investment Products | 6 Months Ended |
Jun. 30, 2016 | |
Financial Support for Nonconsolidated Legal Entity [Abstract] | |
Variable Interest Entities - Investment Products | Variable Interest Entities – Investment Products The Company or its affiliates have created numerous investment products for its clients in various types of legal entity structures. The Company serves as the Manager, Administrator and Distributor for these investment products and may also serve as the Trustee for some of the investment products. The Company receives asset management, distribution, administration and custodial fees for these services. Clients are the equity investors and participate in proportion to their ownership percentage in the net income or loss and net capital gains or losses of the products, and, on liquidation, will participate in proportion to their ownership percentage in the remaining net assets of the products after satisfaction of outstanding liabilities. The Company has adopted the amendments contained in ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis (ASU 2015-02) during the first quarter 2016. ASU 2015-02 amends the current guidance for both the VIE and the voting interest entity (VOE) consolidation models. This guidance rescinds the indefinite deferral of the VIE guidance for investment companies that permitted application of the risks and rewards based approach. The Company has concluded that it is not the primary beneficiary of the entities and; therefore, is not required to consolidate any of the pooled investment vehicles for which it receives asset management, distribution, administration and custodial fees under the VIE model. The entities either do not meet the definition of a VIE or the Company does not hold a variable interest in the entities. The entities either qualify for the money market scope exception, or are entities in which the Company’s asset management, distribution, administration and custodial fees are commensurate with the services provided and include fair terms and conditions, or are entities that are limited partnerships which have substantive kick-out rights. The Company acts as a fiduciary and does not hold any other interests other than insignificant seed money investments in the pooled investment vehicles. For this reason, the Company also concluded that it is not required to consolidate the pooled investment vehicles under the VOE model. The Company is a party to expense limitation agreements with certain SEI-sponsored money market funds subject to Rule 2a-7 of the Investment Company Act of 1940 which establish a maximum level of ordinary operating expenses incurred by the fund in any fiscal year including, but not limited to, fees of the administrator or its affiliates. Under the terms of these agreements, the Company waived $9,891 and $12,467 in fees during the three months ended June 30, 2016 and 2015 , respectively. During the six months ended June 30, 2016 and 2015 , the Company waived $22,368 and $23,186 , respectively, in fees. |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 6 Months Ended |
Jun. 30, 2016 | |
Items Included in Consolidated Statement of Financial Condition [Abstract] | |
Composition of Certain Financial Statement Captions | Composition of Certain Financial Statement Captions Receivables Receivables on the accompanying Consolidated Balance Sheets consist of: June 30, 2016 December 31, 2015 Trade receivables $ 58,291 $ 47,179 Fees earned, not billed 166,338 154,919 Other receivables 18,401 21,574 243,030 223,672 Less: Allowance for doubtful accounts (946 ) (649 ) $ 242,084 $ 223,023 Fees earned, not billed represents receivables earned but unbilled and results from timing differences between services provided and contractual billing schedules. These billing schedules generally provide for fees to be billed on a quarterly basis. In addition, certain fees earned from investment operations services are calculated based on assets under administration that have a prolonged valuation process which delays billings to clients. Receivables from investment products on the accompanying Consolidated Balance Sheets primarily represent fees receivable for distribution, investment advisory, and administration services to various regulated investment companies and other investment products sponsored by SEI. Property and Equipment Property and Equipment on the accompanying Consolidated Balance Sheets consists of: June 30, 2016 December 31, 2015 Buildings $ 151,642 $ 151,604 Equipment 92,608 86,941 Land 10,030 10,003 Purchased software 123,876 122,433 Furniture and fixtures 17,147 16,143 Leasehold improvements 14,910 15,393 Construction in progress 775 961 410,988 403,478 Less: Accumulated depreciation (272,292 ) (259,501 ) Property and Equipment, net $ 138,696 $ 143,977 The Company recognized $12,881 and $11,838 in depreciation expense related to property and equipment for the six months ended June 30 , 2016 and 2015 , respectively. Accrued Liabilities Accrued liabilities on the accompanying Consolidated Balance Sheets consist of: June 30, 2016 December 31, 2015 Accrued employee compensation $ 43,460 $ 74,687 Accrued consulting, outsourcing and professional fees 23,108 21,575 Accrued sub-advisory, distribution and other asset management fees 33,919 32,674 Accrued brokerage fees 9,135 9,058 Accrued dividend payable — 42,625 Other accrued liabilities 36,095 36,968 Total accrued liabilities $ 145,717 $ 217,587 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of the Company’s financial assets and liabilities, except for the Company's investment funds sponsored by LSV, is determined in accordance with the fair value hierarchy. The fair value of the Company’s Level 1 financial assets consist mainly of investments in open-ended mutual funds that are quoted daily. Level 2 financial assets consist of Government National Mortgage Association (GNMA) mortgage-backed securities held by the Company's wholly-owned limited purpose federal thrift subsidiary, SEI Private Trust Company (SPTC), Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes and investment grade commercial paper held by SIDCO. The financial assets held by SIDCO were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. The financial assets held by SPTC are debt securities issued by GNMA and are backed by the full faith and credit of the U.S. government. These securities were purchased for the sole purpose of satisfying applicable regulatory requirements and have maturity dates which range from 2020 to 2041 . The Company has retrospectively adopted ASU No. 2015-07, Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (ASU 2015-07) during the first quarter 2016 for all periods presented. The fair value of the Company's investment funds sponsored by LSV is measured using the net asset value per share (NAV) as a practical expedient. The NAVs of the funds are calculated by the funds' independent custodian and are derived from the fair values of the underlying investments as of the reporting date. The funds allow for investor redemptions at the end of each calendar month. In accordance with ASU 2015-07, this investment has not been classified in the fair value hierarchy. The valuation of the Company's Level 2 financial assets held by SIDCO and SPTC are based upon securities pricing policies and procedures utilized by third-party pricing vendors. The pricing policies and procedures applied during the six months ended June 30 , 2016 were consistent with those as described in our Annual Report on Form 10-K at December 31, 2015 . The Company had no Level 3 financial assets or liabilities at June 30, 2016 or December 31, 2015 . There were no transfers of financial assets between levels within the fair value hierarchy during the six months ended June 30 , 2016 . The fair value of certain financial assets and liabilities of the Company was determined using the following inputs: Fair Value Measurements at the End of the Reporting Period Using Assets June 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Equity available-for-sale securities $ 24,411 $ 24,411 $ — Fixed-income available-for-sale securities 63,961 — 63,961 Fixed-income securities owned 21,290 — 21,290 Investment funds sponsored by LSV (1) 4,420 $ 114,082 $ 24,411 $ 85,251 Fair Value Measurements at the End of the Reporting Period Using Assets December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Equity available-for-sale securities $ 10,657 $ 10,657 $ — Fixed-income available-for-sale securities 70,637 — 70,637 Fixed-income securities owned 21,235 — 21,235 Investment funds sponsored by LSV (1) 4,039 $ 106,568 $ 10,657 $ 91,872 (1) The fair value amount presented in this table is intended to permit reconciliation of the fair value hierarchy to the amounts presented on the accompanying Consolidated Balance Sheets. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2016 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Investments Available for Sale Investments available for sale classified as non-current assets consist of: At June 30, 2016 Cost Amount Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 22,263 $ 55 $ (923 ) $ 21,395 Equities and other mutual funds 2,964 52 — 3,016 Debt securities 62,645 1,316 — 63,961 $ 87,872 $ 1,423 $ (923 ) $ 88,372 At December 31, 2015 Cost Amount Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 8,474 $ — $ (742 ) $ 7,732 Equities and other mutual funds 2,857 68 — 2,925 Debt securities 70,308 329 — 70,637 $ 81,639 $ 397 $ (742 ) $ 81,294 Net unrealized gains (losses) at June 30, 2016 and December 31, 2015 were $212 (net of income tax expense of $288 ) and $(302) (net of income tax benefit of $43 ), respectively. These net unrealized gains and losses are reported as a separate component of Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets. There were gross realized gains of $237 and gross realized losses of $492 from available-for-sale securities during the six months ended June 30 , 2016 . There were gross realized gains of $357 and gross realized losses of $320 from available-for-sale securities during the six months ended June 30 , 2015 . Gains and losses from available-for-sale securities, including amounts reclassified from accumulated comprehensive income, are reflected in Net gain (loss) from investments on the accompanying Consolidated Statements of Operations. Investments in Affiliated Funds The Company has an investment in funds sponsored by LSV. The Company records this investment on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these funds are recognized in Net gain (loss) from investments on the accompanying Consolidated Statements of Operations. The investment primarily consists of U.S. dollar denominated funds that invest primarily in securities of Canadian, Australian and Japanese companies as well as various other global securities. The underlying securities held by the funds are translated into U.S. dollars within the funds. The funds had a fair value of $4,420 and $4,039 at June 30, 2016 and December 31, 2015 , respectively. The Company recognized gross realized gains of $237 and $381 during the three and six months ended June 30, 2016 , respectively, from the change in fair value of the funds. There were no material net gains or losses from the change in fair value of the securities during the three and six months ended June 30, 2015 . Securities Owned The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency and commercial paper securities with maturity dates less than one year. These investments are reflected as Securities owned on the accompanying Consolidated Balance Sheets. Due to specialized accounting practices applicable to investments by broker-dealers, the securities are reported at fair value and changes in fair value are recorded in current period earnings. The securities had a fair value of $21,290 and $21,235 at June 30, 2016 and December 31, 2015 , respectively. There were no material net gains or losses from the change in fair value of the securities during the three and six months ended June 30, 2016 and 2015 . |
Lines of Credit
Lines of Credit | 6 Months Ended |
Jun. 30, 2016 | |
Line of Credit Facility [Abstract] | |
Lines of Credit | Line of Credit On June 13, 2016 (the Closing Date), the Company entered into a new five -year $300,000 Credit Agreement (the Credit Facility) with Wells Fargo Bank, National Association (Wells Fargo) and a syndicate of other lenders. The Credit Facility became available on the Closing Date and replaced the former credit facility agreement (the 2012 Credit Facility), also with Wells Fargo, that was scheduled to expire in February 2017 . The Credit Facility is scheduled to expire in June 2021 , at which time any aggregate principal amount of loans outstanding becomes payable in full. Any borrowings made under the Credit Facility will accrue interest at rates that, at the Company's option, are based on a base rate (the Base Rate) plus a premium that can range from 0.25 percent to 1.00 percent or the London InterBank Offered Rate (LIBOR) plus a premium that can range from 1.25 percent to 2.00 percent depending on the Company’s Leverage Ratio (a ratio of consolidated indebtedness to consolidated EBITDA for the four preceding fiscal quarters, all as defined in the related agreement). The Base Rate is defined as the highest of a) the Federal Funds Rate , as published by the Federal Reserve Bank of New York, plus 0.50 percent , b) the prime commercial lending rate of Wells Fargo, c) the applicable LIBOR plus 1.00 percent , or d) 0 percent . The Company also pays quarterly commitment fees based on the unused portion of the Credit Facility. The quarterly fees for the Credit Facility can range from 0.15 percent of the amount of the unused portion to 0.30 percent , depending on the Company’s Leverage Ratio. Certain wholly-owned subsidiaries of the Company have guaranteed the obligations of the Company under the agreement. The aggregate amount of the Credit Facility may be increased by an additional $100,000 under certain conditions set forth in the agreement. The Credit Facility contains covenants that restrict the ability of the Company to engage in mergers, consolidations, asset sales, investments, transactions with affiliates, or to incur liens, as defined in the agreement. In the event of a default under the Credit Facility, the Company would also be restricted from paying dividends on, or repurchasing, its common stock without the approval of the lenders. None of the covenants of the Credit Facility negatively affect the Company’s liquidity or capital resources. Upon the occurrence of certain financial or economic events, significant corporate events, or certain other events of default constituting an event of default under the Credit Facility, all loans outstanding may be declared immediately due and payable and all commitments under the agreement may be terminated. The Company had no borrowings under the Credit Facility at June 30, 2016 . The Company was in compliance with all covenants of the Credit Facility and 2012 Credit Facility during the six months ended June 30, 2016 . |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Stock-Based Compensation The Company has only non-qualified stock options outstanding under its equity compensation plans. All outstanding stock options have performance-based vesting provisions specific to each option grant that tie the vesting of the applicable stock options to the Company’s financial performance. The Company’s stock options vest at a rate of 50 percent when a specified diluted earnings per share target is achieved, and the remaining 50 percent when a second, higher specified diluted earnings per share target is achieved. Options do not vest due to the passage of time but solely as a result of achievement of the financial vesting targets. The amount of stock-based compensation expense is based upon management’s estimate of when the earnings per share targets may be achieved. The Company recognized stock-based compensation expense in its Consolidated Financial Statements in the three and six months ended June 30, 2016 and 2015 , respectively, as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Stock-based compensation expense $ 4,189 $ 3,859 $ 7,978 $ 7,609 Less: Deferred tax benefit (1,469 ) (1,352 ) (2,768 ) (2,659 ) Stock-based compensation expense, net of tax $ 2,720 $ 2,507 $ 5,210 $ 4,950 As of June 30, 2016 , there was approximately $49,100 of unrecognized compensation cost remaining, adjusted for estimated forfeitures, related to unvested employee stock options that management expects will vest and is being amortized. The Company issues new common shares associated with the exercise of stock options. The total intrinsic value of options exercised during the six months ended June 30 , 2016 was $22,592 . The total options exercisable as of June 30, 2016 had an intrinsic value of $198,296 . The total intrinsic value for options exercisable is calculated as the difference between the market value of the Company’s common stock as of June 30, 2016 and the weighted average exercise price of the shares. The market value of the Company’s common stock as of June 30, 2016 was $48.11 as reported by the Nasdaq Stock Market, LLC. The weighted average exercise price of the options exercisable as of June 30, 2016 was $21.70 . Total options that were outstanding and exercisable as of June 30, 2016 were 17,897,000 and 7,509,000 , respectively. Common Stock Buyback The Company’s Board of Directors, under multiple authorizations, has authorized the repurchase of the Company’s common stock on the open market or through private transactions. The Company purchased 3,587,000 shares at a total cost of $154,118 during the six months ended June 30 , 2016 . The cost of stock purchases during the period includes the cost of certain transactions that settled in the following quarter. As of June 30, 2016 , the Company had approximately $159,008 of authorization remaining for the purchase of common stock under the program. The Company immediately retires its common stock when purchased. Upon retirement, the Company reduces Capital in excess of par value for the average capital per share outstanding and the remainder is charged against Retained earnings. If the Company reduces its Retained earnings to zero, any subsequent purchases of common stock will be charged entirely to Capital in excess of par value. Cash Dividend On May 25, 2016 , the Board of Directors declared a cash dividend of $0.26 per share on the Company's common stock, which was paid on June 22, 2016 , to shareholders of record on June 14, 2016 . Cash dividends declared during the six months ended June 30, 2016 and 2015 were $42,001 and $39,852 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss The components of Accumulated other comprehensive loss, net of tax, are as follows: Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Loss Balance, January 1, 2016 $ (24,988 ) $ (302 ) $ (25,290 ) Other comprehensive loss (gain) before reclassifications (2,651 ) 350 (2,301 ) Amounts reclassified from accumulated other comprehensive income — 164 164 Net current-period other comprehensive (loss) gain (2,651 ) 514 (2,137 ) Balance, June 30, 2016 $ (27,639 ) $ 212 $ (27,427 ) |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company’s reportable business segments are: Private Banks – provides investment processing and investment management programs to banks and trust institutions, independent wealth advisers and financial advisors worldwide; Investment Advisors – provides investment management programs to affluent investors through a network of independent registered investment advisors, financial planners and other investment professionals in the United States; Institutional Investors – provides investment management programs and administrative outsourcing solutions to retirement plan sponsors, hospitals and not-for-profit organizations worldwide; Investment Managers – provides investment operations outsourcing solutions to fund companies, banking institutions and both traditional and non-traditional investment managers worldwide; and Investments in New Businesses – focuses on providing investment management programs to ultra-high-net-worth families residing in the United States; developing internet-based investment services and advice solutions; entering new markets; and conducting other research and development activities. The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes. There are no inter-segment revenues for the three and six months ended June 30, 2016 and 2015 . Management evaluates Company assets on a consolidated basis during interim periods. The accounting policies of the reportable business segments are the same as those described in Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . The following tables highlight certain financial information about each of the Company’s business segments for the three months ended June 30, 2016 and 2015 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended June 30, 2016 Revenues $ 114,836 $ 81,883 $ 74,674 $ 70,938 $ 1,500 $ 343,831 Expenses 102,862 44,721 36,550 46,968 5,355 236,456 Operating profit (loss) $ 11,974 $ 37,162 $ 38,124 $ 23,970 $ (3,855 ) $ 107,375 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended June 30, 2015 Revenues $ 115,333 $ 77,753 $ 75,980 $ 67,280 $ 1,399 $ 337,745 Expenses 104,727 40,857 36,528 42,141 4,803 229,056 Operating profit (loss) $ 10,606 $ 36,896 $ 39,452 $ 25,139 $ (3,404 ) $ 108,689 A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the three months ended June 30 , 2016 and 2015 is as follows: 2016 2015 Total operating profit from segments $ 107,375 $ 108,689 Corporate overhead expenses (13,852 ) (12,771 ) Income from operations $ 93,523 $ 95,918 The following tables provide additional information for the three months ended June 30 , 2016 and 2015 pertaining to our business segments: Capital Expenditures (1) Depreciation 2016 2015 2016 2015 Private Banks $ 8,454 $ 10,108 $ 3,199 $ 2,976 Investment Advisors 3,267 2,843 964 825 Institutional Investors 696 1,068 339 298 Investment Managers 1,743 1,794 1,172 991 Investments in New Businesses 121 132 547 571 Total from business segments $ 14,281 $ 15,945 $ 6,221 $ 5,661 Corporate overhead 279 476 213 182 $ 14,560 $ 16,421 $ 6,434 $ 5,843 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization 2016 2015 Private Banks $ 7,769 $ 7,445 Investment Advisors 2,585 2,459 Institutional Investors 425 375 Investment Managers 275 250 Investments in New Businesses 40 25 Total from business segments $ 11,094 $ 10,554 Corporate overhead 190 57 $ 11,284 $ 10,611 The following tables highlight certain financial information about each of the Company’s business segments for the six months ended June 30, 2016 and 2015 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Six Months Ended June 30, 2016 Revenues $ 228,197 $ 158,562 $ 147,571 $ 140,856 $ 2,908 $ 678,094 Expenses 206,603 89,495 71,932 92,243 10,587 470,860 Operating profit (loss) $ 21,594 $ 69,067 $ 75,639 $ 48,613 $ (7,679 ) $ 207,234 Gain on sale of subsidiary 2,791 — — — — 2,791 Segment profit (loss) $ 24,385 $ 69,067 $ 75,639 $ 48,613 $ (7,679 ) $ 210,025 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Six Months Ended June 30, 2015 Revenues $ 226,546 $ 151,768 $ 149,528 $ 132,647 $ 2,700 $ 663,189 Expenses 203,983 79,916 71,739 82,764 9,669 448,071 Operating profit (loss) $ 22,563 $ 71,852 $ 77,789 $ 49,883 $ (6,969 ) $ 215,118 Gain on sale of subsidiary 2,791 — — — — 2,791 Segment profit (loss) $ 25,354 $ 71,852 $ 77,789 $ 49,883 $ (6,969 ) $ 217,909 A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the six months ended June 30, 2016 and 2015 is as follows: 2016 2015 Total operating profit from segments $ 207,234 $ 215,118 Corporate overhead expenses (26,899 ) (26,130 ) Income from operations $ 180,335 $ 188,988 The following tables provide additional information for the six months ended June 30, 2016 and 2015 pertaining to our business segments: Capital Expenditures Depreciation 2016 2015 2016 2015 Private Banks $ 17,166 $ 18,610 $ 6,380 $ 6,073 Investment Advisors 6,119 6,161 1,940 1,663 Institutional Investors 1,492 2,015 673 601 Investment Managers 3,065 3,842 2,362 1,990 Investments in New Businesses 215 283 1,095 1,134 Total from business segments $ 28,057 $ 30,911 $ 12,450 $ 11,461 Corporate Overhead 589 885 431 377 $ 28,646 $ 31,796 $ 12,881 $ 11,838 Amortization 2016 2015 Private Banks $ 15,480 $ 14,696 Investment Advisors 5,138 4,859 Institutional Investors 824 750 Investment Managers 541 500 Investments in New Businesses 66 50 Total from business segments $ 22,049 $ 20,855 Corporate Overhead 247 114 $ 22,296 $ 20,969 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The gross liability for unrecognized tax benefits at June 30, 2016 and December 31, 2015 was $15,328 and $14,517 , respectively, exclusive of interest and penalties, of which $13,674 and $12,898 would affect the effective tax rate if the Company were to recognize the tax benefit. The Company classifies interest and penalties on unrecognized tax benefits as income tax expense. As of June 30, 2016 and December 31, 2015 , the combined amount of accrued interest and penalties related to tax positions taken on tax returns was $1,437 and $1,391 , respectively. June 30, 2016 December 31, 2015 Gross liability for unrecognized tax benefits, exclusive of interest and penalties $ 15,328 $ 14,517 Interest and penalties on unrecognized benefits 1,437 1,391 Total gross uncertain tax positions $ 16,765 $ 15,908 Amount included in Current liabilities $ 4,503 $ 4,511 Amount included in Other long-term liabilities 12,262 11,397 $ 16,765 $ 15,908 The Company’s effective tax rate was 35.2 percent and 35.6 percent for the three months ended June 30 , 2016 and 2015 , respectively. For the six months ended June 30, 2016 and 2015 , the Company's tax rate was 35.2 percent and 35.5 percent , respectively. The Company files income tax returns in the United States on a consolidated basis and in many U.S. state and foreign jurisdictions. The Company is subject to examination of income tax returns by the Internal Revenue Service (IRS) and other domestic and foreign tax authorities. The Company is no longer subject to U.S. federal income tax examination for years before 2012 and is no longer subject to state, local or foreign income tax examinations by authorities for years before 2008 . The Company estimates it will recognize $4,503 of gross unrecognized tax benefits which is expected to be paid within one year due to the expiration of the statute of limitations and resolution of income tax audits and is netted against the current payable account. These unrecognized tax benefits are related to tax positions taken on certain federal, state, and foreign tax returns. However, the timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. While it is reasonably possible that some issues under examination could be resolved in the next twelve months, based upon the current facts and circumstances, the Company cannot reasonably estimate the timing of such resolution or the total range of potential changes as it relates to the current unrecognized tax benefits that are recorded as part of the Company’s financial statements. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies In the normal course of business, the Company is party to various claims and legal proceedings. SEI has been named in six lawsuits filed in Louisiana. Five lawsuits were filed in the 19th Judicial District Court for the Parish of East Baton Rouge. One of the five actions purports to set forth claims on behalf of a class and also names SPTC as a defendant. Two of the other actions also name SPTC as a defendant. All five actions name various defendants in addition to SEI, and, in all five actions, the plaintiffs purport to bring a cause of action against SEI and/or SPTC under the Louisiana Securities Act. Two of the five actions include claims for violations of the Louisiana Racketeering Act and possibly conspiracy. In addition, another group of plaintiffs filed a lawsuit in the 23rd Judicial District Court for the Parish of Ascension against SEI and SPTC and other defendants, asserting claims of negligence, breach of contract, breach of fiduciary duty, violations of the uniform fiduciaries law, negligent misrepresentation, detrimental reliance, violations of the Louisiana Securities Act and Louisiana Racketeering Act, and conspiracy. The underlying allegations in all actions relate to the purported role of SPTC in providing back-office services to Stanford Trust Company. The petitions allege that SEI and SPTC aided and abetted or otherwise participated in the sale of “certificates of deposit” issued by Stanford International Bank. The case filed in Ascension Parish was removed to federal court and transferred by the Judicial Panel on Multidistrict Litigation to the United States District Court for the Northern District of Texas. The schedule for responding to that petition has not yet been established. The plaintiffs in two of the cases filed in East Baton Rouge have granted SEI and SPTC an indefinite extension to respond to the petitions. In a third East Baton Rouge action, brought as a class action, SEI and SPTC filed exceptions, which the Court granted in part, dismissing the claims under the Louisiana Unfair Trade Practices Act. Plaintiffs then filed a motion for class certification, and SEI and SPTC also filed a motion for summary judgment. The Court deferred the motion for summary judgment, stating that the motion would not be set for hearing until after the hearing on class certification. After the Court held a hearing on class certification, it certified a class composed of persons who purchased or renewed any Stanford International Bank certificates of deposit (SIB CDs) in Louisiana between January 1, 2007 and February 13, 2009 or any person for whom the Stanford Trust Company purchased SIB CDs in Louisiana between January 1, 2007 and February 13, 2009. SEI and SPTC filed motions for appeal from the class certification judgments. On February 1, 2013, plaintiffs filed a motion for Leave to File a First Amended and Restated Class Action Petition in which they asked the Court to allow them to amend the petition and add claims against certain of SEI's insurance carriers. On February 5, 2013, the Court granted two of the motions for appeal and the motion for leave to amend. On February 28, 2013, SEI responded to the First Amended and Restated Class Action Petition by seeking dismissal of the action. On March 11, 2013, the newly-added insurance carrier defendants removed the case to the Middle District of Louisiana. SEI notified the Judicial Panel on Multidistrict Litigation (MDL) of this case as a potential tag-along action. Plaintiffs filed a motion to remand the action to state court. On March 25, 2013, SEI filed a motion requesting that the federal court decline to adopt the state court's order regarding class certification, which the court dismissed without prejudice to renew upon a determination of the jurisdictional issue. On August 7, 2013, the MDL Panel transferred the matter against SEI to the Northern District of Texas. On October 1, 2014, SEI filed a renewed motion to dismiss in the Northern District of Texas, and on October 6, 2014, the District Court denied plaintiffs’ motion to remand. On June 17, 2015, the Court denied the motion to dismiss, and on June 24, 2015 set a briefing schedule for SEI and SPTC’s motion challenging the Louisiana court’s decision to certify a class, which motion was filed on July 15, 2015. SEI and SPTC filed their answer on July 1, 2015, and this case is now pending in the Northern District of Texas. On July 15, 2015, SEI and SPTC also filed motions seeking reconsideration of the District Court’s June 17 denial of the motion to dismiss or, in the alternative, seeking leave to pursue an interlocutory appeal of certain elements of the denial, as well as a motion seeking partial judgment on the pleadings pursuant to Federal Rule of Civil Procedure 12(c) with respect to claims brought under Section 712(D) of the Louisiana Securities Law. On September 22, 2015, the District Court granted SEI and SPTC’s motion for reconsideration of the June 17 denial of the motion to dismiss and dismissed plaintiffs’ claims under Section 714(A) of the Louisiana Securities Law, but declined to dismiss, or certify for interlocutory appeal, plaintiffs’ claims under Section 714(B) of the Louisiana Securities Law. On November 4, 2015, the District Court granted SEI and SPTC's motion to dismiss plaintiffs' claims under Section 712(D) of the Louisiana Securities Law. Consequently, the only claims of plaintiffs still pending before the District Court are plaintiffs' claims for secondary liability against SEI and SPTC under Section 714(B) of the Louisiana Securities Law. On May 2, 2016, the District Court certified the class as being "all persons for whom Stanford Trust Company purchased or renewed Stanford Investment Bank Limited certificates of deposit in Louisiana between January 1, 2007 and February 13, 2009". SEI has asked the Court to clarify the class definition because the one remaining claim in the action - secondary liability under the Louisiana Securities Law -requires proof that Stanford Trust Company sold or offered to sell securities. In the two other cases filed in East Baton Rouge, brought by the same counsel who filed the class action, virtually all of the litigation to date has involved motions practice and appellate litigation regarding the existence of federal subjection matter jurisdiction under the federal Securities Litigation Uniform Standards Act (SLUSA). After the matter was removed to the United States District Court for the Northern District of Texas, that court dismissed the action under SLUSA. The Court of Appeals for the Fifth Circuit reversed that order, and the Supreme Court of the United States affirmed the Court of Appeals judgment on February 26, 2014. The matter was remanded to state court and no material activity has taken place since that date. While the outcome of this litigation is uncertain given its early phase, SEI and SPTC believe that they have valid defenses to plaintiffs' claims and intend to defend the lawsuits vigorously. Because of the uncertainty of the make-up of the classes, the specific theories of liability that may survive a motion for summary judgment or other dispositive motion, the lack of discovery regarding damages, causation, mitigation and other aspects that may ultimately bear upon loss, the Company is not reasonably able to provide an estimate of loss, if any, with respect to the foregoing lawsuits. A lawsuit entitled Steven Curd and Rebel Curd v. SEI Investments Management Corporation was filed against SIMC in the United States District Court for the Eastern District of Pennsylvania on December 11, 2013. On August 28, 2014, the Court granted SIMC’s motion to dismiss the initial complaint in the lawsuit, but also granted plaintiffs leave to amend the complaint. On October 2, 2014, plaintiffs filed an amended complaint. In the amended complaint, SEI Investments Global Funds Services (SGFS) was added as a defendant. The plaintiffs bring the case as a shareholder derivative action against SIMC and SGFS on behalf of certain SEI funds. The claims are based on Section 36(b) of the Investment Company Act of 1940, as amended, which allows shareholders of a mutual fund to sue the investment adviser of the fund or its affiliates for an alleged breach of fiduciary duty with respect to compensation received by the adviser or its affiliates. The plaintiffs have brought the suit against SIMC and SGFS with respect to five specific SEI Funds: the High Yield Bond, Tax-Managed Large Cap, and Tax-Managed Small/Mid Cap Funds, each of which is a series of the SEI Institutional Managed Trust, the Intermediate Term Municipal Fund, which is a series of the SEI Tax Exempt Trust, and the International Equity Fund, which is a series of the SEI Institutional International Trust (the SEI Funds). The plaintiffs seek: (1) damages for the SEI Funds in the amount of the alleged “excessive” fees earned by SIMC and SGFS beginning from the one year period prior to the filing of the lawsuit, plus interest, costs, and fees; (2) orders declaring that SIMC and SGFS allegedly violated Section 36(b) and enjoining SIMC and SGFS from further alleged violations; and (3) rescission of SIMC’s and SGFS’s contracts with the funds, and restitution of all allegedly excessive fees paid beginning from the one year period prior to the filing of the lawsuit, plus interest, costs, and fees. On November 24, 2014, SIMC and SGFS filed a motion to dismiss the amended complaint. On July 13, 2015, the Court denied the motion to dismiss with respect to SIMC, and granted the motion to dismiss with respect to SGFS. On September 18, 2015, plaintiffs filed a second amended complaint reinstating SGFS as a defendant in the case. The parties are currently engaged in discovery, which is expected to be completed in early 2017. While the outcome of this litigation is uncertain given its early phase, SIMC and SGFS believe that they have valid defenses to plaintiffs' claims and intend to defend the lawsuit vigorously, and SIMC and SGFS are not reasonably able to provide an estimate of the ultimate loss, if any, with respect to this lawsuit. On November 26, 2014, a Writ of Summons was issued to two of our subsidiaries, SEI Investments - Global Fund Services Limited (GFSL) and SEI Investments - Trustee & Custodial Services (Ireland) Limited (T&C), to appear before the Court of First Instance Antwerp, Belgium. The plaintiffs in this case allege that through their initial investments in collective investment funds domiciled in Netherlands and subsequent transfer of claim rights to a Belgium domiciled partnership, they are beneficial owners of a portfolio of life settlement policies (the Portfolio) which lapsed due to a failure to make premium payments. The plaintiffs seek to recover jointly and severally from nine defendants including GFSL and T&C, damages of approximately $84 million. GFSL and T&C’s involvement in the litigation appears to arise out of their historical provision of administration and custody services, respectively, to the Strategic Life Settlement Fund PLC, who, together with its managers, appear to be the principal defendants in this claim. On December 4, 2015, the Belgium Court dismissed plaintiff's claims for a lack of jurisdiction. On December 22, 2015, the plaintiffs appealed the dismissal. While the outcome of this action is uncertain given its early phase and the lack of specific theories of liability asserted against GFSL and T&C, each of GFSL and T&C believe that they have valid defenses to plaintiffs’ claims and intend to defend the lawsuit vigorously, and GFSL and T&C are not reasonably able to provide an estimate of the ultimate loss, if any, with respect to this lawsuit. |
Sale of SEI Asset Korea
Sale of SEI Asset Korea | 6 Months Ended |
Jun. 30, 2016 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Sale of SEI Asset Korea | Sale of SEI Asset Korea On July 31, 2012, the Company, MetLife International Holdings, Inc. (MetLife) and International Finance Corporation (IFC) entered into a definitive agreement with Baring Asset Management Limited (Barings) to sell all ownership interest in SEI Asset Korea (SEI AK). SEI AK was located in South Korea and provided domestic equity and fixed-income investment management services to financial institutions and pension funds. On March 28, 2013 , all conditions subject to closing the transaction were satisfied and all ownership interests in SEI AK were transferred to Barings. Under the terms of the agreement, a portion of the purchase price was paid upon closing with up to an additional $11,220 payable to the Company as a contingent purchase price with respect to three one-year periods ending on December 31, 2013, 2014, and 2015 depending upon whether SEI AK achieves specified revenue measures during such periods. The Company recognized pre-tax gains of $2,791 , or $0.01 diluted earnings per share, during the six months ended June 30, 2016 and 2015 representing the final annual payments under the terms of the agreement. The Company's gains from the sale of SEI AK are included in Gain on sale of subsidiary on the accompanying Consolidated Statement of Operations. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain financial information and accompanying note disclosure normally included in the Company’s Annual Report on Form 10-K have been condensed or omitted. The interim financial information is unaudited but reflects all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of financial position of the Company as of June 30, 2016 , the results of operations for the three and six months ended June 30, 2016 and 2015 , and cash flows for the six -month periods ended June 30, 2016 and 2015 . These interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . There have been no significant changes in significant accounting policies during the six months ended June 30, 2016 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 with the exception of the adoption of Accounting Standards Update (ASU) No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis (See Note 3) and ASU No. 2015-07, Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (See Note 5). |
Cash and Cash Equivalents | Statements of Cash Flows For purposes of the Consolidated Statements of Cash Flows, the Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. |
New Accounting Pronouncements | New Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The updated standard permits the use of either the retrospective or cumulative effect transition method. ASU 2014-09 currently becomes effective for the Company during the first quarter 2018. The Company is currently evaluating the transition method that will be elected and the effect that the updated standard will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08), that amends the principal versus agent guidance in ASU 2014-09. ASU 2016-08 clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. ASU 2016-08 also provides additional guidance about how to apply the control principle when services are provided and when goods or services are combined with other goods or services. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing (ASU 2016-10) that amends the revenue guidance in ASU 2014-09 on identifying performance obligations and accounting for licenses of intellectual property. ASU 2016-10 changed the FASB's previous proposals on renewals of right-to-use licenses and contractual restrictions. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) that will significantly change the income statement impact of equity investments held by an entity, and the recognition of changes in fair value of financial liabilities when the fair value option is elected. ASU 2016-01 becomes effective for the Company during the first quarter 2018. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02) requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The updated standard is effective for the Company beginning in the first quarter of 2019. Early adoption is permitted. The Company is currently evaluating the transition method that will be elected and the effect that the updated standard will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) requiring an entity to record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the income statement. ASU 2016-09 will also require an entity to elect an accounting policy to either estimate the number of forfeitures or account for forfeitures when they occur. ASU 2016-09 becomes effective for the Company during the first quarter 2017. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation. |
Equity Method Investments | The Company accounts for its interest in LSV using the equity method because of its less than 50 percent ownership. The Company’s interest in the net assets of LSV is reflected in Investment in unconsolidated affiliates on the accompanying Consolidated Balance Sheets and its interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statements of Operations. |
Variable Interest Entities | The Company has adopted the amendments contained in ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis (ASU 2015-02) during the first quarter 2016. ASU 2015-02 amends the current guidance for both the VIE and the voting interest entity (VOE) consolidation models. This guidance rescinds the indefinite deferral of the VIE guidance for investment companies that permitted application of the risks and rewards based approach. The Company has concluded that it is not the primary beneficiary of the entities and; therefore, is not required to consolidate any of the pooled investment vehicles for which it receives asset management, distribution, administration and custodial fees under the VIE model. The entities either do not meet the definition of a VIE or the Company does not hold a variable interest in the entities. The entities either qualify for the money market scope exception, or are entities in which the Company’s asset management, distribution, administration and custodial fees are commensurate with the services provided and include fair terms and conditions, or are entities that are limited partnerships which have substantive kick-out rights. The Company acts as a fiduciary and does not hold any other interests other than insignificant seed money investments in the pooled investment vehicles. For this reason, the Company also concluded that it is not required to consolidate the pooled investment vehicles under the VOE model. |
Fair Value of Financial Instruments | The fair value of the Company’s financial assets and liabilities, except for the Company's investment funds sponsored by LSV, is determined in accordance with the fair value hierarchy. The fair value of the Company’s Level 1 financial assets consist mainly of investments in open-ended mutual funds that are quoted daily. Level 2 financial assets consist of Government National Mortgage Association (GNMA) mortgage-backed securities held by the Company's wholly-owned limited purpose federal thrift subsidiary, SEI Private Trust Company (SPTC), Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes and investment grade commercial paper held by SIDCO. The financial assets held by SIDCO were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. The financial assets held by SPTC are debt securities issued by GNMA and are backed by the full faith and credit of the U.S. government. These securities were purchased for the sole purpose of satisfying applicable regulatory requirements and have maturity dates which range from 2020 to 2041 . The Company has retrospectively adopted ASU No. 2015-07, Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (ASU 2015-07) during the first quarter 2016 for all periods presented. The fair value of the Company's investment funds sponsored by LSV is measured using the net asset value per share (NAV) as a practical expedient. The NAVs of the funds are calculated by the funds' independent custodian and are derived from the fair values of the underlying investments as of the reporting date. The funds allow for investor redemptions at the end of each calendar month. In accordance with ASU 2015-07, this investment has not been classified in the fair value hierarchy. The valuation of the Company's Level 2 financial assets held by SIDCO and SPTC are based upon securities pricing policies and procedures utilized by third-party pricing vendors. The pricing policies and procedures applied during the six months ended June 30 , 2016 were consistent with those as described in our Annual Report on Form 10-K at December 31, 2015 . |
Available-for-sale Securities | These net unrealized gains and losses are reported as a separate component of Accumulated other comprehensive loss on the accompanying Consolidated Balance Sheets. |
Investments in Affiliated Funds | The fair value of the Company's investment funds sponsored by LSV is measured using the net asset value per share (NAV) as a practical expedient. The NAVs of the funds are calculated by the funds' independent custodian and are derived from the fair values of the underlying investments as of the reporting date. The funds allow for investor redemptions at the end of each calendar month. In accordance with ASU 2015-07, this investment has not been classified in the fair value hierarchy. |
Securities Owned | The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency and commercial paper securities with maturity dates less than one year. These investments are reflected as Securities owned on the accompanying Consolidated Balance Sheets. Due to specialized accounting practices applicable to investments by broker-dealers, the securities are reported at fair value and changes in fair value are recorded in current period earnings. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Calculation Of Basic And Diluted Earnings Per Share | The calculations of basic and diluted earnings per share for the three months ended June 30 , 2016 and 2015 are: For the Three Months Ended June 30, 2016 Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per common share $ 81,005 161,795,000 $ 0.50 Dilutive effect of stock options — 3,293,000 Diluted earnings per common share $ 81,005 165,088,000 $ 0.49 For the Three Months Ended June 30, 2015 Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per common share $ 86,240 166,152,000 $ 0.52 Dilutive effect of stock options — 3,821,000 Diluted earnings per common share $ 86,240 169,973,000 $ 0.51 For the Six Months Ended June 30, 2016 Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per common share $ 158,502 162,404,000 $ 0.98 Dilutive effect of stock options — 3,212,000 Diluted earnings per common share $ 158,502 165,616,000 $ 0.96 For the Six Months Ended June 30, 2015 Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per common share $ 170,851 166,423,000 $ 1.03 Dilutive effect of stock options — 3,915,000 Diluted earnings per common share $ 170,851 170,338,000 $ 1.00 |
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities | The following table provides the details of the adjustments to reconcile net income to net cash provided by operating activities for the six months ended June 30 : 2016 2015 Net income $ 158,502 $ 170,851 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 12,881 11,838 Amortization 22,296 20,969 Equity in earnings of unconsolidated affiliates (59,477 ) (71,322 ) Distributions received from unconsolidated affiliate 67,061 74,847 Stock-based compensation 7,978 7,609 Provision for losses on receivables 297 (128 ) Deferred income tax expense (311 ) 482 Gain from sale of SEI AK (2,791 ) (2,791 ) Net gain from investments (124 ) (212 ) Change in other long-term liabilities 865 914 Change in other assets 1,084 (643 ) Other 1,030 (1,269 ) Change in current asset and liabilities Decrease (increase) in Receivables from investment products 1,032 1,473 Receivables (19,357 ) (21,502 ) Other current assets (4,006 ) (6,745 ) Increase (decrease) in Accounts payable (970 ) (3,813 ) Accrued liabilities (27,634 ) (27,412 ) Deferred revenue 1,094 3,638 Total adjustments 948 (14,067 ) Net cash provided by operating activities $ 159,450 $ 156,784 |
Investment In Unconsolidated 23
Investment In Unconsolidated Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Condensed Statement of Operations of LSV | The following table contains the condensed financial operations of LSV for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Revenues $ 95,825 $ 117,543 $ 188,478 $ 223,438 Net income 77,790 97,757 152,247 185,182 |
Composition of Certain Financ24
Composition of Certain Financial Statement Captions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Items Included in Consolidated Statement of Financial Condition [Abstract] | |
Receivables | Receivables on the accompanying Consolidated Balance Sheets consist of: June 30, 2016 December 31, 2015 Trade receivables $ 58,291 $ 47,179 Fees earned, not billed 166,338 154,919 Other receivables 18,401 21,574 243,030 223,672 Less: Allowance for doubtful accounts (946 ) (649 ) $ 242,084 $ 223,023 |
Property And Equipment | Property and Equipment on the accompanying Consolidated Balance Sheets consists of: June 30, 2016 December 31, 2015 Buildings $ 151,642 $ 151,604 Equipment 92,608 86,941 Land 10,030 10,003 Purchased software 123,876 122,433 Furniture and fixtures 17,147 16,143 Leasehold improvements 14,910 15,393 Construction in progress 775 961 410,988 403,478 Less: Accumulated depreciation (272,292 ) (259,501 ) Property and Equipment, net $ 138,696 $ 143,977 |
Accrued Liabilities | Accrued liabilities on the accompanying Consolidated Balance Sheets consist of: June 30, 2016 December 31, 2015 Accrued employee compensation $ 43,460 $ 74,687 Accrued consulting, outsourcing and professional fees 23,108 21,575 Accrued sub-advisory, distribution and other asset management fees 33,919 32,674 Accrued brokerage fees 9,135 9,058 Accrued dividend payable — 42,625 Other accrued liabilities 36,095 36,968 Total accrued liabilities $ 145,717 $ 217,587 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Certain Financial Assets And Liabilities | The fair value of certain financial assets and liabilities of the Company was determined using the following inputs: Fair Value Measurements at the End of the Reporting Period Using Assets June 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Equity available-for-sale securities $ 24,411 $ 24,411 $ — Fixed-income available-for-sale securities 63,961 — 63,961 Fixed-income securities owned 21,290 — 21,290 Investment funds sponsored by LSV (1) 4,420 $ 114,082 $ 24,411 $ 85,251 Fair Value Measurements at the End of the Reporting Period Using Assets December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Equity available-for-sale securities $ 10,657 $ 10,657 $ — Fixed-income available-for-sale securities 70,637 — 70,637 Fixed-income securities owned 21,235 — 21,235 Investment funds sponsored by LSV (1) 4,039 $ 106,568 $ 10,657 $ 91,872 (1) The fair value amount presented in this table is intended to permit reconciliation of the fair value hierarchy to the amounts presented on the accompanying Consolidated Balance Sheets. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Marketable Securities [Abstract] | |
Investments Available For Sale | Investments available for sale classified as non-current assets consist of: At June 30, 2016 Cost Amount Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 22,263 $ 55 $ (923 ) $ 21,395 Equities and other mutual funds 2,964 52 — 3,016 Debt securities 62,645 1,316 — 63,961 $ 87,872 $ 1,423 $ (923 ) $ 88,372 At December 31, 2015 Cost Amount Gross Unrealized Gains Gross Unrealized (Losses) Fair Value SEI-sponsored mutual funds $ 8,474 $ — $ (742 ) $ 7,732 Equities and other mutual funds 2,857 68 — 2,925 Debt securities 70,308 329 — 70,637 $ 81,639 $ 397 $ (742 ) $ 81,294 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | The Company recognized stock-based compensation expense in its Consolidated Financial Statements in the three and six months ended June 30, 2016 and 2015 , respectively, as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Stock-based compensation expense $ 4,189 $ 3,859 $ 7,978 $ 7,609 Less: Deferred tax benefit (1,469 ) (1,352 ) (2,768 ) (2,659 ) Stock-based compensation expense, net of tax $ 2,720 $ 2,507 $ 5,210 $ 4,950 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss), Net Of Tax | The components of Accumulated other comprehensive loss, net of tax, are as follows: Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Loss Balance, January 1, 2016 $ (24,988 ) $ (302 ) $ (25,290 ) Other comprehensive loss (gain) before reclassifications (2,651 ) 350 (2,301 ) Amounts reclassified from accumulated other comprehensive income — 164 164 Net current-period other comprehensive (loss) gain (2,651 ) 514 (2,137 ) Balance, June 30, 2016 $ (27,639 ) $ 212 $ (27,427 ) |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |
Schedule Of Financial Information About Business Segments | The following tables highlight certain financial information about each of the Company’s business segments for the three months ended June 30, 2016 and 2015 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended June 30, 2016 Revenues $ 114,836 $ 81,883 $ 74,674 $ 70,938 $ 1,500 $ 343,831 Expenses 102,862 44,721 36,550 46,968 5,355 236,456 Operating profit (loss) $ 11,974 $ 37,162 $ 38,124 $ 23,970 $ (3,855 ) $ 107,375 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Three Months Ended June 30, 2015 Revenues $ 115,333 $ 77,753 $ 75,980 $ 67,280 $ 1,399 $ 337,745 Expenses 104,727 40,857 36,528 42,141 4,803 229,056 Operating profit (loss) $ 10,606 $ 36,896 $ 39,452 $ 25,139 $ (3,404 ) $ 108,689 The following tables highlight certain financial information about each of the Company’s business segments for the six months ended June 30, 2016 and 2015 . Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Six Months Ended June 30, 2016 Revenues $ 228,197 $ 158,562 $ 147,571 $ 140,856 $ 2,908 $ 678,094 Expenses 206,603 89,495 71,932 92,243 10,587 470,860 Operating profit (loss) $ 21,594 $ 69,067 $ 75,639 $ 48,613 $ (7,679 ) $ 207,234 Gain on sale of subsidiary 2,791 — — — — 2,791 Segment profit (loss) $ 24,385 $ 69,067 $ 75,639 $ 48,613 $ (7,679 ) $ 210,025 Private Banks Investment Advisors Institutional Investors Investment Managers Investments In New Businesses Total For the Six Months Ended June 30, 2015 Revenues $ 226,546 $ 151,768 $ 149,528 $ 132,647 $ 2,700 $ 663,189 Expenses 203,983 79,916 71,739 82,764 9,669 448,071 Operating profit (loss) $ 22,563 $ 71,852 $ 77,789 $ 49,883 $ (6,969 ) $ 215,118 Gain on sale of subsidiary 2,791 — — — — 2,791 Segment profit (loss) $ 25,354 $ 71,852 $ 77,789 $ 49,883 $ (6,969 ) $ 217,909 |
Reconciliation Of Total Operating Profit Reported For Business Segments To Income From Operations In Consolidated Statements Of Operations | A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the three months ended June 30 , 2016 and 2015 is as follows: 2016 2015 Total operating profit from segments $ 107,375 $ 108,689 Corporate overhead expenses (13,852 ) (12,771 ) Income from operations $ 93,523 $ 95,918 A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the six months ended June 30, 2016 and 2015 is as follows: 2016 2015 Total operating profit from segments $ 207,234 $ 215,118 Corporate overhead expenses (26,899 ) (26,130 ) Income from operations $ 180,335 $ 188,988 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | The following tables provide additional information for the three months ended June 30 , 2016 and 2015 pertaining to our business segments: Capital Expenditures (1) Depreciation 2016 2015 2016 2015 Private Banks $ 8,454 $ 10,108 $ 3,199 $ 2,976 Investment Advisors 3,267 2,843 964 825 Institutional Investors 696 1,068 339 298 Investment Managers 1,743 1,794 1,172 991 Investments in New Businesses 121 132 547 571 Total from business segments $ 14,281 $ 15,945 $ 6,221 $ 5,661 Corporate overhead 279 476 213 182 $ 14,560 $ 16,421 $ 6,434 $ 5,843 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization 2016 2015 Private Banks $ 7,769 $ 7,445 Investment Advisors 2,585 2,459 Institutional Investors 425 375 Investment Managers 275 250 Investments in New Businesses 40 25 Total from business segments $ 11,094 $ 10,554 Corporate overhead 190 57 $ 11,284 $ 10,611 The following tables provide additional information for the six months ended June 30, 2016 and 2015 pertaining to our business segments: Capital Expenditures Depreciation 2016 2015 2016 2015 Private Banks $ 17,166 $ 18,610 $ 6,380 $ 6,073 Investment Advisors 6,119 6,161 1,940 1,663 Institutional Investors 1,492 2,015 673 601 Investment Managers 3,065 3,842 2,362 1,990 Investments in New Businesses 215 283 1,095 1,134 Total from business segments $ 28,057 $ 30,911 $ 12,450 $ 11,461 Corporate Overhead 589 885 431 377 $ 28,646 $ 31,796 $ 12,881 $ 11,838 Amortization 2016 2015 Private Banks $ 15,480 $ 14,696 Investment Advisors 5,138 4,859 Institutional Investors 824 750 Investment Managers 541 500 Investments in New Businesses 66 50 Total from business segments $ 22,049 $ 20,855 Corporate Overhead 247 114 $ 22,296 $ 20,969 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Interest And Penalties | June 30, 2016 December 31, 2015 Gross liability for unrecognized tax benefits, exclusive of interest and penalties $ 15,328 $ 14,517 Interest and penalties on unrecognized benefits 1,437 1,391 Total gross uncertain tax positions $ 16,765 $ 15,908 Amount included in Current liabilities $ 4,503 $ 4,511 Amount included in Other long-term liabilities 12,262 11,397 $ 16,765 $ 15,908 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash and cash equivalents invested in SEI-sponsored money market funds | $ 594,767 | $ 624,841 | $ 594,767 | $ 624,841 | $ 679,661 | $ 667,446 |
Restricted cash | 5,500 | 5,500 | 5,500 | |||
Capitalized software development costs | 19,597 | $ 16,069 | ||||
Net book value of SEI Wealth Platform | $ 288,070 | $ 288,070 | 290,522 | |||
Anti-dilutive employee stock options | 10,388 | 10,007 | 10,447 | 10,029 | ||
Antidilutive securities excluded from computation of net income, per outstanding unit, amount | $ 34.06 | $ 30.02 | $ 34.05 | $ 30.02 | ||
SEI Investments Distribution Co. (SIDCO) [Member] | ||||||
Restricted cash | $ 500 | $ 500 | 500 | |||
SEI Investments (Europe) Limited [Member] | ||||||
Restricted cash | 5,000 | 5,000 | 5,000 | |||
SEI-Sponsored Open-Ended Money Market Mutual Funds [Member] | ||||||
Cash and cash equivalents invested in SEI-sponsored money market funds | 311,152 | 311,152 | $ 448,957 | |||
SEI Wealth Platform [Member] | ||||||
Capitalized software development costs | 16,120 | $ 13,649 | ||||
Net book value of SEI Wealth Platform | $ 279,692 | 279,692 | ||||
Estimated useful life of the SEI Wealth Platform | 15 years | |||||
Amortization expense related to the SEI Wealth Platform | 22,049 | 20,855 | ||||
New application for Investment Managers segment [Member] | ||||||
Capitalized software development costs | $ 3,477 | $ 2,420 | ||||
Weighted Average [Member] | SEI Wealth Platform [Member] | ||||||
Estimated useful life of the SEI Wealth Platform | 6 years |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Calculation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accounting Policies [Abstract] | ||||
Basic earnings per common share, Income (Numerator) | $ 81,005 | $ 86,240 | $ 158,502 | $ 170,851 |
Shares used to compute basic earnings per share | 161,795 | 166,152 | 162,404 | 166,423 |
Basic earnings per common share | $ 0.50 | $ 0.52 | $ 0.98 | $ 1.03 |
Dilutive effect of stock options, income | $ 0 | $ 0 | $ 0 | $ 0 |
Dilutive effect of stock options, shares | 3,293 | 3,821 | 3,212 | 3,915 |
Diluted earnings per common share, Income (Numerator) | $ 81,005 | $ 86,240 | $ 158,502 | $ 170,851 |
Shares used to compute diluted earnings per share | 165,088 | 169,973 | 165,616 | 170,338 |
Diluted earnings per common share | $ 0.49 | $ 0.51 | $ 0.96 | $ 1 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accounting Policies [Abstract] | ||||
Net income | $ 81,005 | $ 86,240 | $ 158,502 | $ 170,851 |
Depreciation | 6,434 | 5,843 | 12,881 | 11,838 |
Amortization | 11,284 | 10,611 | 22,296 | 20,969 |
Equity in earnings of unconsolidated affiliates | (30,285) | (37,289) | (59,477) | (71,322) |
Distributions received from unconsolidated affiliate | 67,061 | 74,847 | ||
Stock-based compensation | 4,189 | 3,859 | 7,978 | 7,609 |
Provision for losses on receivables | 297 | (128) | ||
Deferred income tax expense | (311) | 482 | ||
Gain on sale of SEI AK | $ 0 | $ 0 | (2,791) | (2,791) |
Net loss (gain) from investments | (124) | (212) | ||
Change in other long-term liabilities | 865 | 914 | ||
Change in other assets | 1,084 | (643) | ||
Other | 1,030 | (1,269) | ||
Decrease (increase) in Receivables from investment products | 1,032 | 1,473 | ||
Decrease (increase) in Receivables | (19,357) | (21,502) | ||
Decrease (increase) in Other current assets | (4,006) | (6,745) | ||
Increase (decrease) in Accounts payable | (970) | (3,813) | ||
Increase (decrease) in Accrued liabilities | (27,634) | (27,412) | ||
Increase (decrease) in Deferred revenue | 1,094 | 3,638 | ||
Total adjustments | 948 | (14,067) | ||
Net cash provided by operating activities | $ 159,450 | $ 156,784 |
Investment In Unconsolidated 34
Investment In Unconsolidated Affiliates (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jul. 21, 2016 | Apr. 30, 2016 | Mar. 31, 2016 | Oct. 31, 2012 | |
Investments in and Advances to Affiliates [Line Items] | ||||||||
Distributions received from unconsolidated affiliate | $ 67,061 | $ 74,847 | ||||||
Company's share in the earnings of equity method investee | $ 30,285 | $ 37,289 | 59,477 | 71,322 | ||||
LSV Employee Group III [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Purchase of partnership interest value | $ 77,700 | |||||||
Amount of purchase price financed through term loans | 69,930 | |||||||
Financial Guarantee [Member] | L S V Asset Management [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Amount of guarantor's obligation, maximum exposure | 24,930 | |||||||
Financial Guarantee [Member] | LSV Employee Group III [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Amount of guarantor's obligation, maximum exposure | $ 45,000 | |||||||
Financial Guarantee [Member] | LSV Employee Group III [Member] | Subsequent Event [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Amount of guarantor's obligation, maximum exposure | $ 12,700 | |||||||
Amount of guarantor's obligation, current carrying value | $ 0 | |||||||
L S V Asset Management [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Equity method investment, ownership percentage | 38.90% | 39.20% | ||||||
Total investment in equity method investee | 41,996 | 41,996 | ||||||
Distributions received from unconsolidated affiliate | 67,061 | 74,847 | ||||||
Company's share in the earnings of equity method investee | $ 30,285 | $ 38,327 | $ 59,477 | $ 72,672 | ||||
Maximum [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% |
Investment In Unconsolidated 35
Investment In Unconsolidated Affiliates (Condensed Statement Of Operations Of LSV) (Details) - L S V Asset Management [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenue of LSV Asset Management | $ 95,825 | $ 117,543 | $ 188,478 | $ 223,438 |
Net income of LSV Asset Management | $ 77,790 | $ 97,757 | $ 152,247 | $ 185,182 |
Variable Interest Entities - 36
Variable Interest Entities - Investment Products (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
SEI-Sponsored Open-Ended Money Market Mutual Funds [Member] | ||||
Financial Support for Nonconsolidated Legal Entity [Line Items] | ||||
Fees waived according to expense lmitation agreements | $ 9,891 | $ 12,467 | $ 22,368 | $ 23,186 |
Composition of Certain Financ37
Composition of Certain Financial Statement Captions (Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Items Included in Consolidated Statement of Financial Condition [Abstract] | ||
Trade receivables | $ 58,291 | $ 47,179 |
Fees earned, not billed | 166,338 | 154,919 |
Other receivables | 18,401 | 21,574 |
Receivables, Gross, Current | 243,030 | 223,672 |
Less: Allowance for doubtful accounts | (946) | (649) |
Receivables, net | $ 242,084 | $ 223,023 |
Composition of Certain Financ38
Composition of Certain Financial Statement Captions (Property And Equipment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment, gross | $ 410,988 | $ 410,988 | $ 403,478 | ||
Less: Accumulated depreciation | (272,292) | (272,292) | (259,501) | ||
Property and Equipment, net | 138,696 | 138,696 | 143,977 | ||
Depreciation expense | 6,434 | $ 5,843 | 12,881 | $ 11,838 | |
Building [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment, gross | 151,642 | 151,642 | 151,604 | ||
Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment, gross | 92,608 | 92,608 | 86,941 | ||
Land [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment, gross | 10,030 | 10,030 | 10,003 | ||
Purchased Software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment, gross | 123,876 | 123,876 | 122,433 | ||
Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment, gross | 17,147 | 17,147 | 16,143 | ||
Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment, gross | 14,910 | 14,910 | 15,393 | ||
Construction in Progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and Equipment, gross | $ 775 | $ 775 | $ 961 |
Composition of Certain Financ39
Composition of Certain Financial Statement Captions (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Items Included in Consolidated Statement of Financial Condition [Abstract] | ||
Accrued employee compensation | $ 43,460 | $ 74,687 |
Accrued consulting, outsourcing and professional fees | 23,108 | 21,575 |
Accrued sub-advisory, distribution and other asset management fees | 33,919 | 32,674 |
Accrued brokerage fees | 9,135 | 9,058 |
Accrued dividend payable | 0 | 42,625 |
Other accrued liabilities | 36,095 | 36,968 |
Total accrued liabilities | $ 145,717 | $ 217,587 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Of Certain Financial Assets And Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity available-for-sale securities | $ 24,411 | $ 10,657 |
Fixed income available-for-sale securities | 63,961 | 70,637 |
Fixed income securities owned | 21,290 | 21,235 |
Investment funds sponsored by LSV | 4,420 | 4,039 |
Assets, fair value | 114,082 | 106,568 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity available-for-sale securities | 24,411 | 10,657 |
Fixed income available-for-sale securities | 0 | 0 |
Fixed income securities owned | 0 | 0 |
Assets, fair value | 24,411 | 10,657 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity available-for-sale securities | 0 | 0 |
Fixed income available-for-sale securities | 63,961 | 70,637 |
Fixed income securities owned | 21,290 | 21,235 |
Assets, fair value | $ 85,251 | $ 91,872 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Schedule of Investments [Line Items] | ||||
Net unrealized gains (losses) | $ 212 | $ 212 | $ (302) | |
Unrealized gains (losses) during the period, income tax expense (benefit) | 288 | 288 | (43) | |
Available-for-sale securities, gross realized gains | 237 | $ 357 | ||
Available-for-sale securities, gross realized losses | 492 | $ 320 | ||
Investment funds sponsored by LSV | 4,420 | 4,420 | 4,039 | |
Securities owned | 21,290 | 21,290 | 21,235 | |
Private Equity Funds, Foreign [Member] | ||||
Schedule of Investments [Line Items] | ||||
Investment funds sponsored by LSV | 4,420 | 4,420 | $ 4,039 | |
Realized gains (losses) from investment funds sponsored by LSV | $ 237 | $ 381 |
Marketable Securities (Investme
Marketable Securities (Investments Available For Sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 87,872 | $ 81,639 |
Available-for-sale securities, accumulated gross unrealized gain, before tax | 1,423 | 397 |
Available-for-sale securities, accumulated gross unrealized loss, before tax | (923) | (742) |
Available-for-sale securities, fair value | 88,372 | 81,294 |
SEI-Sponsored Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 22,263 | 8,474 |
Available-for-sale securities, accumulated gross unrealized gain, before tax | 55 | 0 |
Available-for-sale securities, accumulated gross unrealized loss, before tax | (923) | (742) |
Available-for-sale securities, fair value | 21,395 | 7,732 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 2,964 | 2,857 |
Available-for-sale securities, accumulated gross unrealized gain, before tax | 52 | 68 |
Available-for-sale securities, accumulated gross unrealized loss, before tax | 0 | 0 |
Available-for-sale securities, fair value | 3,016 | 2,925 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 62,645 | 70,308 |
Available-for-sale securities, accumulated gross unrealized gain, before tax | 1,316 | 329 |
Available-for-sale securities, accumulated gross unrealized loss, before tax | 0 | 0 |
Available-for-sale securities, fair value | $ 63,961 | $ 70,637 |
Lines of Credit (Details)
Lines of Credit (Details) - Line of Credit [Member] - USD ($) | Jun. 13, 2016 | Jun. 30, 2016 |
Line of Credit Facility [Line Items] | ||
Credit facility term | 5 years | |
Credit facility maximum borrowing capacity | $ 300,000,000 | |
Credit facility expiration date | Jun. 12, 2021 | |
Credit facility stated percentage | 0.00% | |
Credit facility accordion feature, increase limit | $ 100,000,000 | |
Borrowings outstanding | $ 0 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility variable interest rate basis spread (as a percent) | 1.00% | |
Credit facility description of variable rate basis | London InterBank Offered Rate | |
Federal Funds Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility variable interest rate basis spread (as a percent) | 0.50% | |
Credit facility description of variable rate basis | Federal Funds Rate | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility commitment fee per annum on daily unused portion (as a percent) | 0.15% | |
Minimum [Member] | Lender's Base Rate Plus Market Spread [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility variable interest rate basis spread (as a percent) | 0.25% | |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility variable interest rate basis spread (as a percent) | 1.25% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility commitment fee per annum on daily unused portion (as a percent) | 0.30% | |
Maximum [Member] | Lender's Base Rate Plus Market Spread [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility variable interest rate basis spread (as a percent) | 1.00% | |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility variable interest rate basis spread (as a percent) | 2.00% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jun. 22, 2016 | May 25, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ 49,100 | $ 49,100 | ||||
Total intrinsic value of options exercised | 22,592 | |||||
Aggregate intrinsic value of options exercisable | $ 198,296 | $ 198,296 | ||||
Market value of Company's common stock | $ 48.11 | $ 48.11 | ||||
Weighted average exercise price per share | $ 21.70 | $ 21.70 | ||||
Total options that were outstanding | 17,897 | 17,897 | ||||
Total options that were exercisable | 7,509 | 7,509 | ||||
Dividends declared per common share | $ 0.26 | $ 0.26 | $ 0.24 | $ 0.26 | $ 0.24 | |
Cash dividends declared on the Company's common stock | $ 42,001 | $ 39,852 | ||||
Cash dividends paid per common share | $ 0.26 | |||||
Common Stock Buyback [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares purchased and retired | 3,587 | |||||
Company purchased, cost | $ 154,118 | |||||
Remaining stock repurchase authorization amount | $ 159,008 | $ 159,008 | ||||
2014 Plan [Member] | Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rate | 50.00% | |||||
2014 Plan [Member] | Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rate | 50.00% |
Shareholders' Equity (Stock-Bas
Shareholders' Equity (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | ||||
Stock-based compensation expense | $ 4,189 | $ 3,859 | $ 7,978 | $ 7,609 |
Less: Deferred tax benefit | (1,469) | (1,352) | (2,768) | (2,659) |
Stock-based compensation expense, net of tax | $ 2,720 | $ 2,507 | $ 5,210 | $ 4,950 |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ (25,290) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive loss (gain) before reclassifications | (2,301) |
Amounts reclassified from accumulated other comprehensive income | 164 |
Net current-period other comprehensive (loss) gain | (2,137) |
Ending balance | (27,427) |
Accumulated Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (24,988) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive loss (gain) before reclassifications | (2,651) |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current-period other comprehensive (loss) gain | (2,651) |
Ending balance | (27,639) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (302) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |
Other comprehensive loss (gain) before reclassifications | 350 |
Amounts reclassified from accumulated other comprehensive income | 164 |
Net current-period other comprehensive (loss) gain | 514 |
Ending balance | $ 212 |
Business Segment Information (S
Business Segment Information (Schedule Of Financial Information About Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 343,831 | $ 337,745 | $ 678,094 | $ 663,189 |
Expenses | 236,456 | 229,056 | 470,860 | 448,071 |
Operating profit (loss) | 107,375 | 108,689 | 207,234 | 215,118 |
Gain on sale of subsidiary | 0 | 0 | 2,791 | 2,791 |
Segment profit (loss) | 210,025 | 217,909 | ||
Private Banks [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 114,836 | 115,333 | 228,197 | 226,546 |
Expenses | 102,862 | 104,727 | 206,603 | 203,983 |
Operating profit (loss) | 11,974 | 10,606 | 21,594 | 22,563 |
Gain on sale of subsidiary | 0 | 0 | 2,791 | 2,791 |
Segment profit (loss) | 24,385 | 25,354 | ||
Investment Advisors [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 81,883 | 77,753 | 158,562 | 151,768 |
Expenses | 44,721 | 40,857 | 89,495 | 79,916 |
Operating profit (loss) | 37,162 | 36,896 | 69,067 | 71,852 |
Gain on sale of subsidiary | 0 | 0 | 0 | 0 |
Segment profit (loss) | 69,067 | 71,852 | ||
Institutional Investors [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 74,674 | 75,980 | 147,571 | 149,528 |
Expenses | 36,550 | 36,528 | 71,932 | 71,739 |
Operating profit (loss) | 38,124 | 39,452 | 75,639 | 77,789 |
Gain on sale of subsidiary | 0 | 0 | 0 | 0 |
Segment profit (loss) | 75,639 | 77,789 | ||
Investment Managers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 70,938 | 67,280 | 140,856 | 132,647 |
Expenses | 46,968 | 42,141 | 92,243 | 82,764 |
Operating profit (loss) | 23,970 | 25,139 | 48,613 | 49,883 |
Gain on sale of subsidiary | 0 | 0 | 0 | 0 |
Segment profit (loss) | 48,613 | 49,883 | ||
Investments In New Businesses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,500 | 1,399 | 2,908 | 2,700 |
Expenses | 5,355 | 4,803 | 10,587 | 9,669 |
Operating profit (loss) | (3,855) | (3,404) | (7,679) | (6,969) |
Gain on sale of subsidiary | $ 0 | $ 0 | 0 | 0 |
Segment profit (loss) | $ (7,679) | $ (6,969) |
Business Segment Information (R
Business Segment Information (Reconciliation Of Total Operating Profit Reported For Business Segments To Income From Operations In Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total operating profit from segments above | $ 107,375 | $ 108,689 | $ 207,234 | $ 215,118 |
Income from operations | 93,523 | 95,918 | 180,335 | 188,988 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating profit from segments above | 107,375 | 108,689 | 207,234 | 215,118 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Corporate overhead expenses | $ (13,852) | $ (12,771) | $ (26,899) | $ (26,130) |
Business Segment Information 49
Business Segment Information (Schedule Of Additional Information Pertaining To Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | $ 14,560 | $ 16,421 | $ 28,646 | $ 31,796 |
Depreciation | 6,434 | 5,843 | 12,881 | 11,838 |
Amortization | 11,284 | 10,611 | 22,296 | 20,969 |
Private Banks [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 8,454 | 10,108 | 17,166 | 18,610 |
Depreciation | 3,199 | 2,976 | 6,380 | 6,073 |
Amortization | 7,769 | 7,445 | 15,480 | 14,696 |
Investment Advisors [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 3,267 | 2,843 | 6,119 | 6,161 |
Depreciation | 964 | 825 | 1,940 | 1,663 |
Amortization | 2,585 | 2,459 | 5,138 | 4,859 |
Institutional Investors [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 696 | 1,068 | 1,492 | 2,015 |
Depreciation | 339 | 298 | 673 | 601 |
Amortization | 425 | 375 | 824 | 750 |
Investment Managers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 1,743 | 1,794 | 3,065 | 3,842 |
Depreciation | 1,172 | 991 | 2,362 | 1,990 |
Amortization | 275 | 250 | 541 | 500 |
Investments In New Businesses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 121 | 132 | 215 | 283 |
Depreciation | 547 | 571 | 1,095 | 1,134 |
Amortization | 40 | 25 | 66 | 50 |
Total From Business Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 14,281 | 15,945 | 28,057 | 30,911 |
Depreciation | 6,221 | 5,661 | 12,450 | 11,461 |
Amortization | 11,094 | 10,554 | 22,049 | 20,855 |
Corporate Overhead [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 279 | 476 | 589 | 885 |
Depreciation | 213 | 182 | 431 | 377 |
Amortization | $ 190 | $ 57 | $ 247 | $ 114 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||||
Gross liability for unrecognized tax benefits, exclusive of interest and penalties | $ 15,328 | $ 15,328 | $ 14,517 | ||
Unrecognized tax benefits that would affect effective tax rate | 13,674 | 13,674 | 12,898 | ||
Interest and penalties on unrecognized benefits | $ 1,437 | $ 1,437 | $ 1,391 | ||
Effective tax rates | 35.20% | 35.60% | 35.20% | 35.50% | |
Settlement and Lapse of Statute [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Unrecognized tax benefits within the next twelve months | $ 4,503 | $ 4,503 |
Income Taxes (Interest And Pena
Income Taxes (Interest And Penalties) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Income Tax Contingency [Line Items] | ||
Gross liability for unrecognized tax benefits, exclusive of interest and penalties | $ 15,328 | $ 14,517 |
Interest and penalties on unrecognized benefits | 1,437 | 1,391 |
Gross uncertain tax positions | 16,765 | 15,908 |
Amount included in Current liabilities | 4,503 | 4,511 |
Amount included in Other long-term liabilities | $ 12,262 | $ 11,397 |
Sale of SEI Asset Korea (Narrat
Sale of SEI Asset Korea (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 28, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale of subsidiary | $ 0 | $ 0 | $ 2,791 | $ 2,791 | |
SEI Asset Korea Co., Ltd. [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Contingent purchase price from sale of SEI AK | $ 11,220 | ||||
Gain on sale of subsidiary | $ 2,791 | $ 2,791 | |||
Gain on sale of subsidiary, diluted earnings per share impact, net | $ 0.01 | $ 0.01 |