Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 0-10200 | ||
Entity Registrant Name | SEI INVESTMENTS COMPANY | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-1707341 | ||
Entity Address, Address Line One | 1 Freedom Valley Drive | ||
Entity Address, City or Town | Oaks | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19456 | ||
City Area Code | 610 | ||
Local Phone Number | 676-1000 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | SEIC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6.7 | ||
Entity Common Stock, Shares Outstanding | 138,354,051 | ||
Documents Incorporated by Reference | Portions of the following documents are incorporated by reference herein: 1. The definitive proxy statement relating to the registrant’s 2022 Annual Meeting of Shareholders, to be filed within 120 days after the end of the fiscal year covered by this annual report, is incorporated by reference in Part III hereof. | ||
Entity Central Index Key | 0000350894 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | Philadelphia, PA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 831,407 | $ 784,626 |
Restricted cash | 351 | 3,101 |
Receivables from investment products | 59,036 | 55,271 |
Receivables, net of allowance for doubtful accounts of $1,602 and $1,100 | 441,609 | 385,219 |
Securities owned | 28,267 | 34,064 |
Other current assets | 43,559 | 38,696 |
Total Current Assets | 1,404,229 | 1,300,977 |
Property and Equipment, net of accumulated depreciation of $409,248 and $378,639 | 178,869 | 189,052 |
Operating Lease Right-of-Use Assets | 33,614 | 38,397 |
Capitalized Software, net of accumulated amortization of $545,307 and $491,739 | 243,446 | 270,977 |
Available For Sale and Equity Securities | 129,541 | 105,419 |
Investments in Affiliated Funds, at fair value | 6,916 | 6,166 |
Investment in Unconsolidated Affiliate | 107,918 | 98,433 |
Goodwill | 117,232 | 64,489 |
Intangible Assets, net of accumulated amortization of $17,716 and $12,456 | 68,782 | 24,304 |
Deferred Contract Costs | 36,236 | 33,781 |
Deferred Income Taxes | 2,983 | 2,972 |
Other Assets, net | 24,936 | 32,289 |
Total Assets | 2,354,702 | 2,167,256 |
Current Liabilities: | ||
Accounts payable | 10,312 | 7,766 |
Accrued liabilities | 324,382 | 299,845 |
Current portion of long-term operating lease liabilities | 11,328 | 8,579 |
Deferred revenue | 9,721 | 1,085 |
Total Current Liabilities | 355,743 | 317,275 |
Borrowings Under Revolving Credit Facility | 40,000 | 0 |
Long-term Income Taxes Payable | 803 | 803 |
Deferred Income Taxes | 48,876 | 55,159 |
Long-term Operating Lease Liabilities | 27,639 | 34,058 |
Other Long-term Liabilities | 20,878 | 20,054 |
Total Liabilities | 493,939 | 427,349 |
Commitments and Contingencies | ||
Shareholders' Equity: | ||
Common stock, $.01 par value, 750,000 shares authorized; 138,449 and 143,396 shares issued and outstanding | 1,384 | 1,434 |
Capital in excess of par value | 1,246,608 | 1,190,001 |
Retained earnings | 632,614 | 565,270 |
Accumulated other comprehensive loss, net | (19,843) | (16,798) |
Total Shareholders' Equity | 1,860,763 | 1,739,907 |
Total Liabilities and Equity | $ 2,354,702 | $ 2,167,256 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 1,602 | $ 1,100 |
Property and Equipment, accumulated depreciation | 409,248 | 378,639 |
Capitalized software, accumulated amortization | 545,307 | 491,739 |
Intangible assets, accumulated amortization | $ 17,716 | $ 12,456 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 138,449,000 | 143,396,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Revenues | $ 1,918,309 | $ 1,684,058 | $ 1,649,885 |
Expenses: | |||
Subadvisory, distribution and other asset management costs | 218,068 | 181,618 | 181,418 |
Software royalties and other information processing costs | 27,759 | 28,937 | 29,993 |
Compensation, benefits and other personnel | 584,497 | 527,509 | 517,917 |
Stock-based compensation | 41,451 | 27,014 | 24,582 |
Consulting, outsourcing and professional fees | 223,200 | 227,916 | 194,560 |
Data processing and computer related | 107,560 | 96,328 | 88,058 |
Facilities, supplies and other costs | 69,760 | 64,915 | 72,078 |
Amortization | 59,152 | 52,975 | 51,419 |
Depreciation | 33,481 | 30,959 | 29,436 |
Total expenses | 1,364,928 | 1,238,171 | 1,189,461 |
Income from operations | 553,381 | 445,887 | 460,424 |
Net (loss) gain from investments | (366) | (286) | 3,174 |
Interest and dividend income | 3,649 | 6,568 | 16,582 |
Interest expense | (563) | (609) | (630) |
Equity in earnings of unconsolidated affiliates | 137,572 | 117,134 | 151,891 |
Income before income taxes | 693,673 | 568,694 | 631,441 |
Income taxes | 147,080 | 121,408 | 130,015 |
Net income | $ 546,593 | $ 447,286 | $ 501,426 |
Basic earnings per common share (in USD per share) | $ 3.87 | $ 3.05 | $ 3.31 |
Shares used to compute basic earnings per share | 141,216 | 146,709 | 151,540 |
Diluted earnings per common share (in USD per share) | $ 3.81 | $ 3 | $ 3.24 |
Shares used to compute diluted earnings per share | 143,312 | 149,003 | 154,901 |
Dividends declared per common share (in USD per share) | $ 0.77 | $ 0.72 | $ 0.68 |
Asset management, administration and distribution fees | |||
Revenues: | |||
Revenues | $ 1,547,016 | $ 1,345,649 | $ 1,307,044 |
Information processing and software servicing fees | |||
Revenues: | |||
Revenues | $ 371,293 | $ 338,409 | $ 342,841 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 546,593 | $ 447,286 | $ 501,426 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments | (1,432) | 5,620 | 7,618 |
Unrealized holding (loss) gain on investments: | |||
Unrealized holding (losses) gains during the period, net of income taxes of $728, $(134) and $(461) | (2,527) | 374 | 1,486 |
Less: reclassification adjustment for losses realized in net income, net of income taxes of $(246), $(190) and $(101) | 914 | 712 | 392 |
Total other comprehensive (loss) income, net of taxes | (3,045) | 6,706 | 9,496 |
Comprehensive income | $ 543,548 | $ 453,992 | $ 510,922 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gains during the period, taxes | $ 728 | $ (134) | $ (461) |
Reclassification adjustment for losses realized in net income, taxes | $ (246) | $ (190) | $ (101) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital In Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2018 | $ 1,536 | $ 1,106,641 | $ 517,970 | $ (33,000) | |
Beginning balance, shares at Dec. 31, 2018 | 153,634 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Purchase and retirement of common stock | $ (62) | (33,210) | (315,076) | ||
Purchase and retirement of common stock, shares | (6,225) | ||||
Issuance of common stock under the employee stock purchase plan | $ 1 | 4,224 | |||
Issuance of common stock under the employee stock purchase plan, shares | 93 | ||||
Issuance of common stock upon exercise of stock options | $ 22 | 56,663 | |||
Issuance of common stock upon exercise of stock options, shares | 2,243 | 2,243 | |||
Stock-based compensation | 24,582 | ||||
Net income | $ 501,426 | 501,426 | |||
Dividends declared ($0.77, $0.72 and $0.68 per share) | (102,435) | (102,435) | |||
Other comprehensive (loss) income | 9,496 | 9,496 | |||
Ending balance at Dec. 31, 2019 | $ 1,738,778 | $ 1,497 | 1,158,900 | 601,885 | (23,504) |
Ending balance, shares at Dec. 31, 2019 | 149,745 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Purchase and retirement of common stock | $ (80) | (45,309) | (379,313) | ||
Purchase and retirement of common stock, shares | (8,007) | ||||
Issuance of common stock under the employee stock purchase plan | $ 1 | 4,346 | |||
Issuance of common stock under the employee stock purchase plan, shares | 95 | ||||
Issuance of common stock upon exercise of stock options | $ 16 | 45,050 | |||
Issuance of common stock upon exercise of stock options, shares | 1,563 | 1,563 | |||
Stock-based compensation | 27,014 | ||||
Net income | $ 447,286 | 447,286 | |||
Dividends declared ($0.77, $0.72 and $0.68 per share) | (104,588) | (104,588) | |||
Other comprehensive (loss) income | 6,706 | 6,706 | |||
Ending balance at Dec. 31, 2020 | $ 1,739,907 | $ 1,434 | 1,190,001 | 565,270 | (16,798) |
Ending balance, shares at Dec. 31, 2020 | 143,396 | 143,396 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Purchase and retirement of common stock | $ (67) | (40,058) | (371,409) | ||
Purchase and retirement of common stock, shares | (6,747) | ||||
Issuance of common stock under the employee stock purchase plan | $ 0 | 4,115 | |||
Issuance of common stock under the employee stock purchase plan, shares | 81 | ||||
Issuance of common stock upon exercise of stock options | $ 17 | 51,099 | |||
Issuance of common stock upon exercise of stock options, shares | 1,719 | 1,719 | |||
Stock-based compensation | 41,451 | ||||
Net income | $ 546,593 | 546,593 | |||
Dividends declared ($0.77, $0.72 and $0.68 per share) | (107,840) | (107,840) | |||
Other comprehensive (loss) income | (3,045) | (3,045) | |||
Ending balance at Dec. 31, 2021 | $ 1,860,763 | $ 1,384 | $ 1,246,608 | $ 632,614 | $ (19,843) |
Ending balance, shares at Dec. 31, 2021 | 138,449 | 138,449 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | Jun. 02, 2021 | Dec. 08, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends declared per common share (in USD per share) | $ 0.37 | $ 0.40 | $ 0.77 | $ 0.72 | $ 0.68 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 546,593 | $ 447,286 | $ 501,426 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 33,481 | 30,959 | 29,436 |
Amortization | 59,152 | 52,975 | 51,419 |
Equity in earnings of unconsolidated affiliates | (137,572) | (117,134) | (151,891) |
Partner distributions received from unconsolidated affiliate | 131,170 | 125,534 | 148,936 |
Stock-based compensation | 41,451 | 27,014 | 24,582 |
Provision for losses on receivables | 502 | (101) | 483 |
Deferred income tax benefit | (7,831) | (1,036) | (3,414) |
Net loss (gain) from investments | 366 | 286 | (3,174) |
Change in other long-term liabilities | 824 | (420) | (163) |
Change in other assets | 68 | (1,449) | 1,791 |
Contract costs capitalized, net of amortization | (2,455) | (2,790) | (6,984) |
Other | 1,538 | 912 | 620 |
Decrease (increase) in: | |||
Receivables from investment products | (3,765) | (1,106) | (4,296) |
Receivables | (53,944) | (44,761) | (25,505) |
Other current assets | (4,202) | (6,407) | 3,334 |
Advances due from unconsolidated affiliate | (3,083) | (39,420) | (12,116) |
Increase (decrease) in: | |||
Accounts payable | 249 | 3,343 | (6,497) |
Accrued liabilities | 27,016 | 21,097 | (4,896) |
Deferred revenue | 3,543 | (6,100) | 2,031 |
Total adjustments | 86,508 | 41,396 | 43,696 |
Net cash provided by operating activities | 633,101 | 488,682 | 545,122 |
Cash flows from investing activities: | |||
Additions to property and equipment | (26,499) | (54,448) | (43,097) |
Additions to capitalized software | (26,037) | (24,119) | (34,074) |
Purchases of marketable securities | (216,260) | (143,493) | (174,997) |
Prepayments and maturities of marketable securities | 194,769 | 155,110 | 171,399 |
Sales of marketable securities | 327 | 842 | 51 |
Cash paid for acquisitions, net of cash acquired | (80,159) | 0 | 0 |
Other investing activities | (11,024) | (1,388) | 2,538 |
Net cash used in investing activities | (164,883) | (67,496) | (78,180) |
Cash flows from financing activities: | |||
Borrowings under revolving credit facility | 40,000 | 0 | 0 |
Payment of contingent consideration | (3,965) | (633) | (433) |
Purchase and retirement of common stock | (408,069) | (427,001) | (346,352) |
Proceeds from issuance of common stock | 55,231 | 49,413 | 60,910 |
Payment of dividends | (105,516) | (103,914) | (100,745) |
Net cash used in financing activities | (422,319) | (482,135) | (386,620) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,868) | 4,129 | 6,186 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 44,031 | (56,820) | 86,508 |
Cash, cash equivalents and restricted cash, beginning of year | 787,727 | 844,547 | 758,039 |
Cash, cash equivalents and restricted cash, end of year | 831,758 | 787,727 | 844,547 |
Interest paid | 554 | 612 | 493 |
Income taxes paid | 154,268 | 121,987 | 139,326 |
Non-cash operating activities | |||
Operating lease right-of-use assets and net lease liabilities recorded upon adoption of ASC 842 | 0 | 0 | 44,169 |
Non-cash investing and financing activities | |||
Acquisition of businesses in current assets, property and equipment, current liabilities and other long-term liabilities | 76,621 | 0 | 0 |
Dividends declared but not paid | $ 55,452 | $ 53,127 | $ 52,452 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 comprehensive platforms, services and infrastructure–encompassing technology, operational, and investment management services–to help wealth managers, financial advisors, investment managers, family offices, institutional and private investors create and manage wealth. Investment processing platforms provide technologies and business process outsourcing services for wealth managers and investment advisors. These solutions include investment advisory, client relationship, and other technology-enabled capabilities for the front office; administrative and investment services for the middle office; and accounting and processing services for the back office. Revenues from investment processing platforms are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations. Investment operations platforms provide business process outsourcing services for investment managers and asset owners. These platforms support a broad range of traditional and alternative investments and provide technology-enabled information analytics and investor capabilities for the front office; administrative and investment services for the middle office; and fund administration and accounting services for the back office. Revenues from investment operations platforms are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Investment management platforms provide comprehensive solutions for managing personal and institutional wealth. These platforms include goals-based investment strategies; SEI-sponsored investment products, including mutual funds, collective investment products, alternative investment portfolios and separately managed accounts (SMA); and other market-specific advice, technology and operational components. These platforms are offered to wealth managers as part of a complete goals-based investment program for their end-investors. For institutional investors, the Company provides Outsourced Chief Investment Officer (OCIO) solutions that include investment management programs, as well as advisory and administrative services. Revenues from investment management platforms are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and entities in which it holds a controlling financial interest. The Company determines whether it has a controlling financial interest either by its decision-making ability through voting interests or by the extent of the Company’s participation in the economic risks and rewards of the entity through variable interests. The Company’s principal subsidiaries are SEI Investments Distribution Co. (SIDCO), SEI Investments Management Corporation (SIMC), SEI Private Trust Company (SPTC), SEI Trust Company (STC), SEI Global Services, Inc. (SGSI) and SEI Investments (Europe) Limited (SIEL). All intercompany accounts and transactions have been eliminated. The Company accounts for investments in unconsolidated entities that are 20% to 50% owned or are 20% or less owned and have the ability to exercise significant influence over the operating and financial policies of the entity under the equity method of accounting. Under this method of accounting, the Company’s interest in the net assets of unconsolidated entities is reflected in Investment in unconsolidated affiliates on the accompanying Consolidated Balance Sheet and its interest in the earnings or losses of unconsolidated entities is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statement of Operations. Any investments in entities not consolidated or accounted for under the equity method are accounted for under the cost method of accounting. Variable Interest Entities The Company or its affiliates have created numerous investment products for its clients in various types of legal entity structures. The Company serves as the Manager, Administrator and Distributor for these investment products and may also serve as the Trustee for some of the investment products. The Company receives asset management, distribution, administration and custodial fees for these services. Clients are the equity investors and participate in proportion to their ownership percentage in the net income or loss and net capital gains or losses of the products, and, on liquidation, will participate in proportion to their ownership percentage in the remaining net assets of the products after satisfaction of outstanding liabilities. The Company has concluded that it is not the primary beneficiary of the entities and, therefore, is not required to consolidate any of the pooled investment vehicles for which it receives asset management, distribution, administration and custodial fees under the VIE model. The entities either do not meet the definition of a VIE or the Company does not hold a variable interest in the entities. The entities either qualify for the money market scope exception, or are entities in which the Company’s asset management, distribution, administration and custodial fees are commensurate with the services provided and include fair terms and conditions, or are entities that are limited partnerships which have substantive kick-out rights. The Company acts as a fiduciary and does not hold any other interests other than insignificant seed money investments in the pooled investment vehicles. For this reason, the Company also concluded that it is not required to consolidate the pooled investment vehicles under the voting interest entity 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 $45,129, $33,408 and $27,544 in fees during 2021, 2020 and 2019, respectively. Management’s Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition Revenue is recognized when the transfer of control of promised goods or services under the terms of a contract with customers are satisfied in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services. Certain portions of the Company’s revenues involve a third party in providing goods or services to its customers. In such circumstances, the Company must determine whether the nature of its promise to the customer is to provide the underlying goods or services (the Company is the principal in the transaction and reports the transaction gross) or to arrange for a third party to provide the underlying goods or services (the entity is the agent in the transaction and reports the transaction net). The Company does not disclose the value of unsatisfied performance obligations as the majority of its contracts relate to: 1) contracts with an original term of one year or less; 2) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed; and 3) contracts that are based on the value of assets under management or administration. See Note 16 for related disclosures regarding revenue recognition. Cash and Cash Equivalents The Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents include $290,256 and $347,082 at December 31, 2021 and 2020, respectively, primarily invested in SEI-sponsored open-ended money market mutual funds. The SEI-sponsored mutual funds are considered Level 1 assets. Restricted Cash Restricted cash includes $250 at December 31, 2021 and 2020 segregated for regulatory purposes related to trade-execution services conducted by SIEL. Restricted cash also includes $101 at December 31, 2021 and 2020 segregated in special reserve accounts for the benefit of SIDCO customers in accordance with certain rules established by the Securities and Exchange Commission for broker-dealers. Allowances for Doubtful Accounts The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. Concentration of Credit Risk Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash equivalents and trade receivables. Cash equivalents are principally invested in short-term money market funds or placed with major banks and high-credit qualified financial institutions. Cash deposits maintained with institutions are in excess of federally insured limits. Concentrations of credit risk with respect to the Company's receivables are limited due to the large number of clients and their dispersion across geographic areas. No single group or customer represents greater than 10% of total accounts receivable. Property and Equipment Property and Equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. Construction in progress includes the cost of construction and other direct costs attributable to the construction. When property and equipment are retired or disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives using the straight line method for financial statement purposes. No provision for depreciation is made for construction in progress until such time as the relevant assets are completed and put into service. The Company uses other depreciation methods, generally accelerated, for tax purposes where appropriate. Buildings and building improvements are depreciated over 25 to 39 years. Equipment, purchased software and furniture and fixtures have useful lives ranging from 3 to 5 years. Amortization of leasehold improvements is computed using the straight line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. Marketable Securities The classification of investments in marketable securities is determined at the time of purchase and reevaluated at each balance sheet date. Debt securities classified as available-for-sale are reported at fair value as determined by the most recently traded price of each security at the balance sheet date. Unrealized gains and losses associated with the Company's available for sale debt securities, net of income taxes, are reported as a separate component of comprehensive income. SIDCO, the Company’s broker-dealer subsidiary, reports changes in fair value of marketable securities through current period earnings due to specialized accounting practices related to investments by broker-dealers. The Company records its investments in money market funds and commercial paper classified as cash equivalents, funds sponsored by LSV and equity securities not accounted for under the equity method on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these securities are recognized in current period earnings. The specific identification method is used to compute the realized gains and losses on all of the Company’s marketable securities (See Note 5). The Company evaluates the realizable value of its available for sale debt securities on a quarterly basis. In the event that an other-than-temporary decline in fair value has occurred, the amount of the decline related to a credit loss is reported through current period earnings. Some of the factors considered in determining other-than-temporary impairment include, but are not limited to, the intent of management to sell the security, the likelihood that the Company will be required to sell the security before recovering its cost, and management’s expectation to recover the entire amortized cost basis of the security even if there is no intent to sell the security. The Company did not recognize any impairment charges related to its available for sale debt securities in 2021, 2020 or 2019. Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used by the Company to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities without adjustment. The Company’s Level 1 assets primarily include investments in mutual funds sponsored by SEI that are quoted daily. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 financial assets consist of GNMA mortgage-backed securities, Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes. The investments in GNMA mortgage-backed securities were purchased for the sole purpose of satisfying applicable regulatory requirements imposed on our wholly-owned limited purpose federal thrift subsidiary, SPTC. The investments in FHLB and other U.S. government agency short-term notes were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment by management. The Company had no Level 3 financial assets at December 31, 2021 or 2020 that were required to be measured at fair value on a recurring basis. The Company's Level 3 financial liabilities at December 31, 2021 and 2020 consist entirely of an estimated contingent consideration resulting from the Company's acquisition of Huntington Steele, LLC (See Note 14). The fair value of an asset or liability may include inputs from more than one level in the fair value hierarchy. The lowest level of significant inputs used to value the asset or liability determines which level the asset or liability is classified in its entirety. Transfers between levels of the fair value hierarchy are reported at fair value as of the beginning of the period in which the transfers occur. See Note 4 for related disclosures regarding fair value measurements. Capitalized Software Costs incurred for the development of internal use software to be offered in a hosting arrangement is capitalized during the development stage of the software application. These costs include direct external and internal costs to design the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary and post-implementation stages of the software application are expensed as incurred. Costs associated with significant enhancements to a software application are capitalized while costs incurred to maintain existing software applications are expensed as incurred. The capitalization of software development costs requires considerable judgment by management to ensure the costs incurred will result in additional functionality of the software. Amortization of capitalized software development costs begins when the product is ready for its intended use. Capitalized software development costs are amortized on a product-by-product basis using the straight-line method over the estimated economic life of the product or enhancement. The Company capitalized $26,037, $24,119 and $34,074 of software development costs during 2021, 2020 and 2019, respectively. The Company's capitalized software development costs primarily relate to the further development of the SEI Wealth Platform SM (SWP). The Company capitalized $25,938, $22,257 and $33,084 of software development costs for significant enhancements to SWP during 2021, 2020 and 2019, respectively. As of December 31, 2021, the net book value of SWP was $235,878. The net book value includes $29,253 of capitalized software development costs in-progress associated with future releases. Management continually reassesses the estimated useful life of SWP and any change in management’s estimate could result in the remaining amortization expense to be accelerated or spread out over a longer period. As of December 31, 2021, SWP has a weighted average remaining life of 10.1 years. Amortization expense for SWP was $47,769, $43,853 and $42,297 in 2021, 2020 and 2019, respectively, and is included in Amortization expense on the accompanying Consolidated Statements of Operations. The Company currently expects to recognize amortization expense related to all capitalized software development costs placed into service as of December 31, 2021 each year from 2022 through 2026 as follows: Year Expected Amortization Expense Related to Capitalized Software 2022 $ 39,084 2023 20,301 2024 20,301 2025 20,301 2026 19,294 The Company evaluates the carrying value of capitalized software development costs when circumstances indicate the carrying value may not be recoverable. The review of capitalized software development costs for impairment requires significant assumptions about operating strategies, underlying technologies utilized, and external market factors. External market factors include, but are not limited to, expected levels of competition, barriers to entry by potential competitors, stability in the target market and governmental regulations. The Company did not recognize any impairment charges related to its capitalized software development costs in 2021, 2020 or 2019. Business Combinations The Company accounts for business combinations in accordance with Accounting Standards Codification Topic 805, Business Combinations (ASC 805). ASC 805 establishes principles and requirements for recognizing the total consideration transferred, assets acquired and liabilities assumed in a business combination. ASC 805 also provides guidance for recognizing and measuring goodwill acquired in a business combination and requires the acquirer to disclose information needed to evaluate and understand the financial impact of the business combination. The Company recognizes assets and liabilities acquired at their estimated fair values. Management uses judgment to identify the acquired assets and liabilities assumed; estimate the fair value of these assets and liabilities; estimate the useful life of the assets; and assess the appropriate method for recognizing depreciation or amortization expense over the estimated useful life of the assets. In October 2021, the FASB issued Accounting Standards Update (ASU) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08). The Company elected to early adopt the amendments in ASU 2021-08 during 2021 which requires retrospective application to all business combinations where the acquisition date occurs on or after January 1, 2021. ASU 2021-08 provides an exception to fair value measurement for revenue contracts acquired in business combinations and requires the acquirer in a business combination to value contract assets and contract liabilities in accordance with FASB Topic 606 Revenue from Contracts with Customers. ASU 2021-08 also allows for two practical expedients: 1) the acquirer may reflect the aggregate effect of all contract modifications that occurred prior to acquisitions, and 2) for allocating transaction price, the acquirer may determine the standalone selling price at the acquisition instead of the contract inception date. The Company did not utilize any practical expedients in the adoption of ASU 2021-08. There was no material impact to the Company's disclosures related to its business combinations from the implementation of ASU 2021-08. Goodwill and Other Intangible Assets The Company reviews long-lived assets and identifiable definite-lived intangible assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. For purposes of recognizing and measuring an impairment loss, a long-lived asset is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent. Identifiable definite-lived intangible assets on the Company’s Consolidated Balance Sheet are amortized on a straight-line basis according to their estimated useful lives. Goodwill is not amortized but is reviewed for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Current guidance requires that a qualitative assessment be performed to assess goodwill for impairment. The fair value of each reporting unit is compared with its carrying value, including goodwill. If the fair value exceeds the carrying value, goodwill is not impaired and no further testing is performed. If the qualitative assessment indicates the carrying value exceeds the fair value, a quantitative impairment test is then utilized to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized. The Company did not recognize any impairment charges related to its goodwill or other intangible assets in 2021, 2020 or 2019. See Note 15 for related disclosures regarding goodwill and intangible assets. Contingent Consideration Liabilities The Company may be required to pay additional future consideration in connection with business acquisitions based on the attainment of specified financial measures. The Company estimates the fair value of these potential future obligations at the time a business combination is consummated and records a contingent consideration liability on the Consolidated Balance Sheets. If the expected payment amounts subsequently change, the contingent consideration liabilities are adjusted through current period earnings and included in Facilities, supplies and other costs on the accompanying Consolidated Statement of Operations. See Note 14 for related disclosures regarding contingent consideration liabilities. Income Taxes The Company applies the asset and liability approach to account for income taxes whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. See Note 11 for related disclosures regarding income taxes. Foreign Currency Translation The assets and liabilities and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. Assets and liabilities have been translated into U.S. dollars using the rates of exchange at the balance sheet dates. The results of operations have been translated into U.S. dollars at average exchange rates prevailing during the period. The resulting translation gain and loss adjustments are recorded as a separate component of comprehensive income. Transaction gains and losses from exchange rate fluctuations are included in the results of operations in the periods in which they occur. There were no material gains or losses from exchange rate fluctuations in 2021, 2020 or 2019. Earnings Per Common Share Basic earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the combination of the weighted average number of common shares outstanding and the dilutive potential common shares, such as stock options, outstanding during the period. The calculations of basic and diluted earnings per share for 2021, 2020 and 2019 are: 2021 2020 2019 Net income $ 546,593 $ 447,286 $ 501,426 Shares used to compute basic earnings per common share 141,216,000 146,709,000 151,540,000 Dilutive effect of stock options 2,096,000 2,294,000 3,361,000 Shares used to compute diluted earnings per common share 143,312,000 149,003,000 154,901,000 Basic earnings per common share $ 3.87 $ 3.05 $ 3.31 Diluted earnings per common share $ 3.81 $ 3.00 $ 3.24 Employee stock options to purchase approximately 11,755,000, 9,220,000 and 6,574,000 shares of common stock, with an average exercise price per share of $58.43, $58.12 and $55.95, were outstanding during 2021, 2020 and 2019, respectively, but not included in the computation of diluted earnings per common share because either the performance conditions have not been satisfied or the option’s exercise price was greater than the average market price of the Company’s common stock and the effect on diluted earnings per common share would have been anti-dilutive (See Note 7). Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. The amount of stock-based compensation expense that is recognized in a given period is dependent upon management’s estimate of when the vesting targets are expected to be achieved. If this estimate proves to be inaccurate, the remaining amount of stock-based compensation expense could be accelerated, spread out over a longer period, or reversed (See Note 7). Leases The Company determines if an arrangement is a lease at the inception of the contract. The Company's operating leases are included in Operating lease right-of-use (ROU) assets, Current portion of long-term operating lease liabilities, and Long-term operating lease liabilities on the accompanying Consolidated Balance Sheets. The operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit interest rate, the Company utilizes an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In determining the discount rate used in the present value calculation, the Company has elected to apply the portfolio approach for leases of equipment provided the leases commenced at or around the same time. This election allows the Company to account for leases at a portfolio level provided that the resulting accounting at this level would not differ materially from the accounting at the individual lease level. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected to account for lease and non-lease components separately. Operating lease ROU assets include all contractual lease payments and initial direct costs incurred, less any lease incentives. Facility leases generally only contain lease expense and non-component items such as taxes and pass through charges. Only the lease components are included in the ROU assets and lease liabilities. Additionally, the Company has elected not to apply the recognition requirements of ASC 842 to leases which have a lease term of less than one year at the commencement date. The majority of the Company's leases for corporate facilities and equipment contain terms for renewal and extension of the lease agreement. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company includes the lease extensions when it is reasonably certain the Company will exercise the extension. Several of the Company's leases are subject to periodic market rent review adjustments which are not tied to an index or specific interest rate. Rather, the review adjustments represent market conditions on the date of the review. The variable lease payments consist of payments beyond the initial contractual payment amounts prior to the market rent review. The Company’s lease agreements do not contain any material residual value guarantees or any material restrictive covenants. The Company does not currently have any finance leases. See Note 17 for related disclosures regarding leases. New Accounting Pronouncements |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliates | Investment in Unconsolidated Affiliates LSV Asset Management The Company has an investment in the general partnership LSV Asset Management (LSV), a registered investment advisor that provides investment advisory services primarily to institutions, including pension plans and investment companies. LSV is currently an investment sub-advisor for a limited number of SEI-sponsored mutual funds. As of December 31, 2021, the Company's total partnership interest in LSV was approximately 38.7%. On April 1, 2021, 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 slightly to approximately 38.7% from approximately 38.8%. The Company accounts for its interest in LSV using the equity method because of its less than 50% ownership. The Company’s interest in the net assets of LSV is reflected in Investment in unconsolidated affiliates on the accompanying Consolidated Balance Sheets and its interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliates on the accompanying Consolidated Statements of Operations. At December 31, 2021, the Company’s total investment in LSV was $107,918. The Company’s proportionate share in the earnings of LSV was $137,572, $117,134 and $151,891 in 2021, 2020 and 2019, respectively. The Company receives partnership distributions related to the earnings of LSV on a quarterly basis. As such, the Company considers these distribution payments as returns on investment rather than returns of the Company's original investment in LSV and has therefore classified the associated cash inflows as an operating activity on the Consolidated Statements of Cash Flows. The Company received partnership distribution payments from LSV of $131,170, $125,534 and $148,936 in 2021, 2020 and 2019, respectively. These tables contain condensed financial information of LSV: Condensed Statement of Operations Year ended December 31, 2021 2020 2019 Revenues $ 456,259 $ 391,648 $ 491,700 Net income $ 354,964 $ 301,620 $ 390,533 Condensed Balance Sheets December 31, 2021 2020 Current assets $ 171,058 $ 151,515 Non-current assets 4,792 4,296 Total assets $ 175,850 $ 155,811 Current liabilities $ 82,858 $ 77,077 Non-current liabilities 3,863 4,620 Partners’ capital 89,129 74,114 Total liabilities and partners’ capital $ 175,850 $ 155,811 |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | Composition of Certain Financial Statement Captions Receivables Receivables on the accompanying Consolidated Balance Sheets consist of: 2021 2020 Trade receivables $ 111,209 $ 99,106 Fees earned, not billed 315,255 262,167 Other receivables 16,747 25,046 443,211 386,319 Less: Allowance for doubtful accounts (1,602) (1,100) Receivables, net $ 441,609 $ 385,219 Fees earned, not billed represents receivables from contracts from customers earned but unbilled and results from timing differences between services provided and contractual billing schedules. These billing schedules generally provide for fees to be billed on a quarterly basis. In addition, certain fees earned from investment operations services are calculated based on assets under administration that have an extended valuation process. Billings to these clients occur once the asset valuation processes are completed. Property and Equipment Property and Equipment on the accompanying Consolidated Balance Sheets consists of: 2021 2020 Buildings $ 209,766 $ 206,151 Equipment 153,158 141,820 Land 24,651 24,179 Purchased software 156,387 147,838 Furniture and fixtures 21,254 21,439 Leasehold improvements 21,946 21,604 Construction in progress 955 4,660 588,117 567,691 Less: Accumulated depreciation (409,248) (378,639) Property and Equipment, net $ 178,869 $ 189,052 Depreciation expense related to property and equipment for 2021, 2020 and 2019 was $33,481, $30,959 and $29,436, respectively. Deferred Contract Costs The Company's incremental contract acquisition costs are related to information processing contracts in the Private Banks segment and investment operations contracts in the Investment Managers segment. These deferred costs primarily consist of sales compensation payments to the Company's sales personnel. The Company defers and amortizes incremental contract acquisition costs using the straight-line method over the expected client life, which ranges from 6 to 15 years. Deferred contract costs were $36,236 and $33,781 as of December 31, 2021 and 2020, respectively. The Company deferred expenses related to contract costs of $11,201, $10,284 and $11,495 during 2021, 2020 and 2019, respectively. Amortization expense related to deferred contract costs were $8,746, $7,494 and $4,511 during 2021, 2020 and 2019, respectively, and is included in Compensation, benefits and other personnel on the accompanying Consolidated Statements of Operations. There were no material impairment losses in relation to deferred contract costs during 2021, 2020 or 2019. Other Assets Other assets consist of long-term prepaid expenses, deposits, other investments at cost and various other assets. Amortization expense for certain other assets for 2021, 2020 and 2019 was $324, $230 and $230, respectively. Accrued Liabilities Accrued Liabilities on the accompanying Consolidated Balance Sheets consist of: 2021 2020 Accrued employee compensation $ 107,933 $ 95,656 Accrued employee benefits and other personnel 13,951 18,770 Accrued consulting, outsourcing and professional fees 36,411 31,907 Accrued sub-advisory, distribution and other asset management fees 58,661 49,924 Accrued dividend payable 55,452 53,127 Other accrued liabilities 51,974 50,461 Accrued liabilities $ 324,382 $ 299,845 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsThe fair value of the Company’s financial assets and liabilities, except for the Company's investment funds sponsored by LSV, is determined in accordance with the fair value hierarchy. The fair value of the Company’s Level 1 financial assets consists mainly of investments in open-ended mutual funds that are quoted daily. Level 2 financial assets consist of Government National Mortgage Association (GNMA) mortgage-backed securities held by the Company's wholly-owned limited purpose federal thrift subsidiary, SEI Private Trust Company (SPTC), Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes held by SIDCO. The financial assets held by SIDCO were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. The financial assets held by SPTC are debt securities issued by GNMA and are backed by the full faith and credit of the U.S. government. These securities were purchased for the sole purpose of satisfying applicable regulatory requirements and have maturity dates which range from 2023 to 2041. The fair value of the Company's investment funds sponsored by LSV is measured using the net asset value per share (NAV) as a practical expedient. The NAVs of the funds are calculated by the funds' independent custodian and are derived from the fair values of the underlying investments as of the reporting date. The funds allow for investor redemptions at the end of each calendar month. This investment has not been classified in the fair value hierarchy but is presented in the tables below to permit reconciliation to the amounts presented on the accompanying Consolidated Balance Sheets. The valuation of the Company's Level 2 financial assets held by SIDCO and SPTC are based upon securities pricing policies and procedures utilized by third-party pricing vendors. The Company had no Level 3 financial assets at December 31, 2021 or 2020 that were required to be measured at fair value on a recurring basis. The Company's Level 3 financial liabilities at December 31, 2021 and 2020 consist entirely of the estimated fair value of the contingent consideration resulting from an acquisition (See Note 14). The fair value of the contingent consideration was determined using a Monte-Carlo simulation model. Key assumptions for the Monte-Carlo simulation model include expected revenues, expected volatility, risk-free rate and other factors. There were no transfers of financial assets between levels within the fair value hierarchy during 2021. Valuation of GNMA and Other U.S. Government Agency Securities All of the Company's investments in GNMA, FHLB and other U.S. government agency securities are held in accounts at well-established financial institutions. The Company's selection of a financial institution for the purpose of purchasing securities considered a number of various factors including, but not limited to, securities pricing policies and procedures utilized by that financial institution. Each financial institution utilizes the services of independent pricing vendors. These vendors utilize evaluated and industry accepted pricing models that vary by asset class and incorporate available trade, bid and other market information to determine the fair value of the securities. The market inputs, listed in approximate order of priority, include: benchmark yields, reported trade, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company evaluated the information regarding the pricing methodologies and processes utilized by the independent pricing vendors during the selection process of the financial institution. The Company analyzed this information for the purpose of classifying the securities into the appropriate level within the fair value hierarchy and to ensure that each pricing model for each asset class provided the fair value of those specific securities in accordance with generally accepted accounting principles. The Company continually monitors the price of each security for any unanticipated deviations from the previously quoted price. In the event of any significant unanticipated deviations in a security's price, additional analysis is conducted. The Company's investments in GNMA, FHLB and other U.S. government agency securities have been recorded at the prices provided by the independent pricing vendor without adjustment. The fair value of certain financial assets and liabilities of the Company was determined using the following inputs: Fair Value Measurements at Reporting Date Using December 31, 2021 Quoted Prices in Significant Assets Equity securities $ 12,406 $ 12,406 $ — Available-for-sale debt securities 117,135 — 117,135 Fixed-income securities owned 28,267 — 28,267 Investment funds sponsored by LSV (1) 6,916 $ 164,724 $ 12,406 $ 145,402 Fair Value Measurements at Reporting Date Using December 31, 2020 Quoted Prices in Significant Assets Equity securities $ 12,142 $ 12,142 $ — Available-for-sale debt securities 93,277 — 93,277 Fixed-income securities owned 34,064 — 34,064 Investment funds sponsored by LSV (1) 6,166 $ 145,649 $ 12,142 $ 127,341 (1) The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the accompanying Consolidated Balance Sheets (See Note 5). |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2021 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities The Company's marketable securities include investments in money market funds and commercial paper classified as cash equivalents, available-for-sale debt securities, investments in SEI-sponsored and non-SEI-sponsored mutual funds, equities, investments in funds sponsored by LSV and securities owned by SIDCO. Cash Equivalents The Company's investments in money market funds and commercial paper classified as cash equivalents had a fair value of $422,838 and $462,624 at December 31, 2021 and 2020, respectively. There were no material unrealized or realized gains or losses from these investments during 2021 and 2020. Available For Sale and Equity Securities Available For Sale and Equity Securities on the accompanying Consolidated Balance Sheets consist of: At December 31, 2021 Cost Gross Gross Fair Available for sale debt securities $ 117,215 $ — $ (80) $ 117,135 SEI-sponsored mutual funds 6,748 463 — 7,211 Equities and other mutual funds 4,935 260 — 5,195 $ 128,898 $ 723 $ (80) $ 129,541 At December 31, 2020 Cost Gross Gross Fair Available for sale debt securities $ 91,262 $ 2,015 $ — $ 93,277 SEI-sponsored mutual funds 6,866 382 — 7,248 Equities and other mutual funds 4,421 473 — 4,894 $ 102,549 $ 2,870 $ — $ 105,419 Net unrealized holding losses at December 31, 2021 of the Company's available-for-sale debt securities were $62 (net of income tax benefit of $18) and were for a duration of less than 12 months. These unrealized losses are associated with the Company’s investments in mortgage-backed securities issued by GNMA and were caused by interest rate increases (See Note 4). The contractual cash flows of these securities are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost bases of the Company's investments. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. Net unrealized gains at December 31, 2020 of the Company's available-for-sale debt securities were $1,551 (net of income tax expense of $464). 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 losses of $1,160, $902 and $493 from available-for-sale debt securities during 2021, 2020 and 2019, respectively. There were no gross realized gains from available-for-sale debt securities during 2021, 2020 and 2019. Realized losses from available-for-sale debt securities, including amounts reclassified from accumulated comprehensive loss, are reflected in Net (loss) gain from investments on the accompanying Consolidated Statements of Operations. There were gross realized gains of $741 and gross realized losses of $72 from mutual funds and equities during 2021. In 2020, there were gross realized gains of $1,100 and gross realized losses of $250 from mutual funds and equities. In 2019, there were gross realized gains of $297 and gross realized losses of 48 from mutual funds and equities. Gains and losses from mutual funds and equities are reflected in Net (loss) gain from investments on the accompanying Consolidated Statements of Operations. Investments in Affiliated Funds The Company has an investment in funds sponsored by LSV. The Company records this investment on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these funds are recognized in Net (loss) gain from investments on the accompanying Consolidated Statements of Operations. The funds had a fair value of $6,916 and $6,166 at December 31, 2021 and 2020, respectively. The Company recognized gains of $750, $178 and $1,101 from the change in fair value of the funds during 2021, 2020 and 2019, respectively. Securities Owned The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency securities with maturity dates less than one year. These investments are reflected as Securities owned on the accompanying Consolidated Balance Sheets. Due to specialized accounting practices applicable to investments by broker-dealers, the securities are reported at fair value and changes in fair value are recorded in current period earnings. The securities had a fair value of $28,267 and $34,064 at December 31, 2021 and 2020, respectively. There were no material net gains or losses from the change in fair value of the securities during 2021, 2020 and 2019. |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2021 | |
Line of Credit Facility [Abstract] | |
Lines of Credit | Line of Credit On April 23, 2021, the Company entered into a new five-year $325,000 Credit Agreement (the Credit Facility) with Wells Fargo Bank, N.A. (Wells Fargo), and a syndicate of other lenders. The Credit Facility is scheduled to expire in April 2026, 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% to 1.00% or the London InterBank Offered Rate (LIBOR) plus a premium that can range from 1.25% to 2.00% depending on the Company’s Leverage Ratio (a ratio of consolidated indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (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%, b) the prime commercial lending rate of Wells Fargo, c) the applicable LIBOR plus 1.00%, or d) 0%. The Credit Facility includes fallback language clearly defining an alternative reference rate which provides for specified replacement rates upon a LIBOR cessation event. At the time of a LIBOR cessation event, the replacement rate, the Secured Overnight Financing Rate (SOFR), self-executes without the need for negotiations or a formal amendment process. 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% of the amount of the unused portion to 0.30%, depending on the Company’s Leverage Ratio. Certain wholly-owned subsidiaries of the Company have guaranteed the obligations of the Company under the agreement. The aggregate amount of the Credit Facility may be increased by an additional $100,000 under certain conditions set forth in the agreement. The Company may issue up to $15,000 in letters of credit under the terms of the Credit Facility. The Company pays a periodic commission fee of 1.25% plus an issuance fee of 0.20% of the aggregate face amount of the outstanding letters of credit issued under the Credit Facility. The Credit Facility contains covenants with restrictions on the ability of the Company to do transactions with affiliates other than wholly-owned subsidiaries or to incur liens or certain types of indebtedness 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. Upon the occurrence of certain financial or economic events, significant corporate events, or certain other events of default constituting an event of default under the Credit Facility, all loans outstanding may be declared immediately due and payable and all commitments under the agreement may be terminated. In November 2021, the Company borrowed $40,000 under the Credit Facility for the funding of an acquisition (See Note 14). There were no principal payments related to the Credit Facility during 2021. As of December 31, 2021, the outstanding balance of the Credit Facility was $40,000 and is included in Borrowings Under Revolving Credit Facility on the accompanying Consolidated Balance Sheet. As of December 31, 2021, the Company had outstanding letters of credit of $5,808 under the Credit Facility. These letters of credit were issued primarily for the expansion of the Company's headquarters and are scheduled to expire during 2022. The Company was in compliance with all covenants of the Credit Facility during 2021. In February 2022, the Company made a principal payment of $10,000 against the outstanding balance of the Credit Facility. The amount of the Credit Facility available for general corporate purposes as of February 17, 2022 was $289,192. The Company considers the book value of long-term debt related to the borrowing through the Credit Facility to be representative of its fair value. Prior to entering into the Credit Facility, the Company maintained a $300,000 revolving line of credit through a Credit Agreement with Wells Fargo and a syndicate of other lenders (the 2016 Credit Facility). The Company paid commitment fees based on the unused portion of the facility. The 2016 Credit Facility contained covenants that restricted 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. The Company had no borrowings through the 2016 Credit Facility at December 31, 2020. None of the covenants of the 2016 Credit Facility negatively affected the Company’s liquidity or capital resources. The Company was in compliance with all covenants of the 2016 Credit Facility during 2021 while active. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Stock-Based Compensation The Company's active equity compensation plan, the 2014 Omnibus Equity Compensation Plan (the 2014 Plan), is the successor plan to the 2007 Equity Compensation Plan (the 2007 Plan) which was merged with and into the 2014 Plan in May 2014. Outstanding grants under the 2007 Plan will continue according to the terms in effect before the plan merger, but the outstanding shares will be issued or transferred under the 2014 Plan. The 2014 Plan provides for the grant of stock options, stock units, stock awards, stock appreciation rights, dividend equivalents and other stock-based awards. Permitted grantees under the 2014 Plan include employees, non-employee directors and consultants who perform services for the Company. The plan is administered by the Compensation Committee of the Board of Directors of the Company. The Company has only non-qualified stock options outstanding under the 2014 Plan. All outstanding stock options have performance-based vesting provisions that tie the vesting of stock options to the Company’s financial performance which are established at the time of grant. The Company’s stock options vest at a rate of 50 percent when a specified financial vesting target is achieved, and the remaining 50 percent when a second, higher-specified financial vesting target is achieved. Options do not vest due to the passage of time but as a result of achievement of the financial vesting targets. Options granted in December 2017 and thereafter include a service condition which requires a minimum two The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair value of stock options on the date of grant using an option-pricing model is affected by the price of the Company’s common stock as well as other variables. These variables include expected stock price volatility over the term of the awards, actual and projected employee stock exercise behaviors, risk-free interest rate and expected dividends. The Company primarily uses historical data to estimate the variables used in the option-pricing model except expected volatility. The Company uses a combination of historical and implied volatility. The Company accounts for forfeitures as they occur. The weighted average fair value of the Company’s stock options granted during 2021, 2020 and 2019 were $14.94, $13.53 and $13.94, respectively, using the following assumptions: 2021 2020 2019 Expected term (in years) 5.60 5.79 5.53 Expected volatility 28.67 % 29.02 % 23.36 % Expected dividend yield 1.30 % 1.29 % 1.10 % Risk-free interest rate 1.37 % 0.62 % 1.80 % The Company recognized stock-based compensation expense in its Consolidated Financial Statements in 2021, 2020 and 2019 as follows: 2021 2020 2019 Stock-based compensation expense $ 41,451 $ 27,014 $ 24,582 Less: Deferred tax benefit (8,444) (5,182) (4,814) Stock-based compensation expense, net of tax $ 33,007 $ 21,832 $ 19,768 The Company revised its estimates of when some vesting targets are expected to be achieved. The change in management's estimate during 2021 resulted in an increase of $5,880 in stock-based compensation. The change in management’s estimate during 2020 resulted in a decrease of $2,659 and the change in estimate in 2019 resulted in an increase of $2,903 in stock-based compensation expense. As of December 31, 2021, there was approximately 10,446,000 unvested employee stock options with an unrecognized compensation cost of $104,770 that the Company expects will vest and be expensed through 2025 with a weighted average period of 1.9 years. This table presents certain information relating to the Company’s stock option plans for 2021, 2020 and 2019: Number of Weighted Balance as of December 31, 2018 15,813,000 $ 41.84 Granted 2,480,000 64.04 Exercised (2,243,000) 25.27 Expired or canceled (344,000) 55.07 Balance as of December 31, 2019 15,706,000 $ 47.43 Granted 4,529,000 56.54 Exercised (1,563,000) 28.83 Expired or canceled (177,000) 55.76 Balance as of December 31, 2020 18,495,000 $ 51.15 Granted 3,323,000 60.48 Exercised (1,719,000) 29.73 Expired or canceled (1,015,000) 57.92 Balance as of December 31, 2021 19,084,000 $ 54.35 Exercisable as of December 31, 2021 8,638,000 $ 48.73 Available for future grant as of December 31, 2021 12,978,000 As of December 31, 2021 and 2020, there were 8,638,000 and 6,641,000 shares exercisable, respectively. The expiration dates for options outstanding at December 31, 2021 range from October 23, 2022 to December 10, 2031 with a weighted average remaining contractual life of 6.8 years. Upon exercise of stock options, the Company will issue new shares of its common shares. The Company does not hold any shares in treasury. The total intrinsic value of options exercised during 2021 and 2020 was $55,029 and $46,426, respectively. The total options exercisable as of December 31, 2021 had an intrinsic value of $117,496. The total options outstanding as of December 31, 2021 had an intrinsic value of $149,989. The total intrinsic value for options outstanding and options exercisable is calculated as the difference between the market value of the Company’s common stock as of December 31, 2021 and the exercise price of the shares. The market value of the Company’s common stock as of December 31, 2021 was $60.94 as reported by the Nasdaq Stock Market, LLC. Employee Stock Purchase Plan The Company has an employee stock purchase plan that provides for offerings of common stock to eligible employees at a price equal to 85 percent of the fair market value of the stock at the end of the stock purchase period, as defined. The Company has reserved 15,652,000 shares for issuance under this plan. At December 31, 2021, 12,307,000 cumulative shares have been issued. There were no material costs incurred by the Company related to the employee stock purchase plan in 2021, 2020 and 2019. Common Stock Buyback The Board of Directors, under multiple authorizations, has authorized the purchase of the Company’s common stock on the open market or through private transactions. On December 10, 2021, the Company's Board of Directors approved an increase in the stock repurchase program by an additional $200,000. As of December 31, 2021, the Company had approximately $231,293 of authorization remaining for the purchase of common stock. The following table provides the total number of shares repurchased and the related total costs in 2021, 2020 and 2019: Year Total Number of Total Cost 2021 6,747,000 $ 411,534 2020 8,008,000 424,702 2019 6,225,000 348,348 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 Dividends On June 2, 2021, the Board of Directors declared a cash dividend of $0.37 per share on the Company’s common stock, which was paid on June 22, 2021, to shareholders of record on June 14, 2021. On December 10, 2021, the Board of Directors declared a cash dividend of $0.40 per share on the Company’s common stock, which was paid on January 7, 2022, to shareholders of record on December 21, 2021. The cash dividends declared in 2021, 2020 and 2019 were $107,840, $104,588 and $102,435, respectively. The Board of Directors has indicated its intention to declare future cash dividends on a semiannual basis. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) consists of net income and other gains and losses affecting shareholders’ equity that are excluded from net income. Other comprehensive income (loss) includes unrealized gains and losses on available for sale debt securities and foreign currency translation adjustments. The Company presents other comprehensive income (loss) in its Consolidated Statements of Comprehensive Income. Components of Accumulated other comprehensive income (loss), net of tax, consisted of: Foreign Currency Translation Adjustments Unrealized Accumulated Balance, January 1, 2019 $ (31,587) $ (1,413) $ (33,000) Other comprehensive income before reclassifications 7,618 1,486 9,104 Amounts reclassified from accumulated other comprehensive loss — 392 392 Net current-period other comprehensive loss 7,618 1,878 9,496 Balance, December 31, 2019 $ (23,969) $ 465 $ (23,504) Other comprehensive income before reclassifications 5,620 374 5,994 Amounts reclassified from accumulated other comprehensive loss — 712 712 Net current-period other comprehensive income 5,620 1,086 6,706 Balance, December 31, 2020 $ (18,349) $ 1,551 $ (16,798) Other comprehensive loss before reclassifications (1,432) (2,527) (3,959) Amounts reclassified from accumulated other comprehensive loss — 914 914 Net current-period other comprehensive loss (1,432) (1,613) (3,045) Balance, December 31, 2021 $ (19,781) $ (62) $ (19,843) |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanThe Company has a tax-qualified defined contribution plan (the Plan). The Plan provides retirement benefits, including provisions for early retirement and disability benefits, as well as a tax-deferred savings feature. After satisfying certain requirements, participants are vested in employer contributions at the time the contributions are made. All Company contributions are discretionary and are made from available profits. The Company contributed $14,777, $14,087 and $12,923 to the Plan in 2021, 2020 and 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company leases software, facilities, and equipment under non-cancelable operating leases, some which contain escalation clauses for increased taxes and operating expenses. The Company has entered into maintenance agreements primarily for its equipment. Rent expense, primarily related to user licenses for software, was $57,880, $41,091 and $33,600 in 2021, 2020 and 2019, respectively. The aggregate noncancellable minimum commitments at December 31, 2021 are: Year Aggregate Noncancellable Minimum Commitments 2022 $ 11,799 2023 9,628 2024 7,778 2025 5,483 2026 and thereafter 6,197 $ 40,885 In the ordinary course of business, the Company from time to time enters into contracts containing indemnification obligations of the Company. These obligations may require the Company to make payments to another party upon the occurrence of certain events including the failure by the Company to meet its performance obligations under the contract. These contractual indemnification provisions are often standard contractual terms of the nature customarily found in the type of contracts entered into by the Company. In many cases, there are no stated or notional amounts included in the indemnification provisions. There are no amounts reflected on the Consolidated Balance Sheets as of December 31, 2021 and 2020 related to these indemnifications. Stanford Trust Company Litigation This litigation is comprised of two federal class actions that are based on similar theories, the Lillie and the Adhers litigations, and five ancillary but related actions, all of which have all been dormant as the Lillie and Adhers matters were litigated. The underlying allegations in all actions relate to the purported role of SPTC in providing back-office services to Stanford Trust Company. The complaints allege that SEI and SPTC participated in some manner in the sale of “certificates of deposit” issued by Stanford International Bank so as to be a “seller” of the certificates of deposit for purposes of primary liability under the Louisiana Securities Law or so as to be secondarily liable under that statute for sales of certificates of deposit made by Stanford Trust Company. All claims in the Lillie and Adhers litigations have been dismissed by the District Court. These dismissals have been upheld on appeal by the Fifth Circuit. The plaintiffs in these actions did not seek a writ of certiorari within the time period for filing, consequently the dismissal of the claims is final and non-appealable. SEI is also named as a relief defendant in another matter, Janvey v. Alguire , where SEI is not a defendant but custodian of the assets subject to the litigation. While the Company expects all remaining ancillary litigations to be resolved in its favor as a consequence of the procedural posture of the Lillie and Adhers cl ass action litigations, the status of these actions are: • Two of the state cases pending in the District Court in Louisiana , Milford Wampold, III, et. al. v. Pershing, LLC, et. al., and Numa L. Marquette, et al. v . Pershing, LLC, et. al., were dismissed with prejudice plaintiffs’ on January 14, 2022. • The two other state cases, Farr and Rolland , are based on similar claims as in Lillie and Adhers , and plaintiffs are represented by the same counsel as in the Lillie matter. The Company is awaiting receipt of information it has requested from plaintiff’s counsel concerning individuals that opted out of the Lillie class prior to seeking dismissal of these two matters based on the Lille and Adhers precedent. The last action in federal court, Jackson , remains pending. The opt-out information the Company is gathering from plaintiff’s counsel in the Lillie matter will inform next steps in its process to dismiss this matter. To the extent that the three remaining actions are not dismissed as expected, SEI and SPTC believe that they have valid defenses to plaintiffs' claims and intend to defend the lawsuits vigorously. The Company is not reasonably able to provide an estimate of loss, if any, with respect to the foregoing lawsuits. SS&C Advent Litigation On February 28, 2020, SEI Global Services, Inc. ("SGSI"), a wholly-owned subsidiary of the Company, filed a complaint under seal in the United States District Court for the Eastern District of Pennsylvania against SS&C Advent ("Advent") and SS&C Technologies Holdings, Inc. ("SS&C") alleging that SS&C and Advent breached the terms of the contract between the parties (the “SLSA”) and asking the Court to hold SS&C and Advent to their bargained-for obligations (the "Advent Matter"). In addition to Breach of Contract, the complaint also includes counts for Declaratory Judgment, Tortious Interference with Existing and Prospective Contractual Relations, Violation of the New York General Business Law Section 349, Violations of Section 2 of the Sherman Antitrust Act, Promissory Estoppel and Breach of the Covenant of Good Faith and Fair Dealing. SGSI seeks various forms of relief, including declaratory judgment, specific performance under the SLSA, and monetary damages, including treble damages and attorney’s fees. Following various procedural actions, including an amendment of SGSI’s complaint to include additional breach of contract claims, Advent filed a motion to dismiss SGSI’s compliant. On October 23, 2020, the United States District Court for the Eastern District of Pennsylvania dismissed SEI’s federal anti-trust claim and declined to rule on the state law breach of contract or tortious on the basis that in the absence of the anti-trust claim, the court had no jurisdiction over the state law claims. SGSI has appealed the dismissal of the federal anti-trust claims to the Third Circuit Court of Appeals, which is currently pending. Upon the dismissal of the federal anti-trust claim, on October 23, 2020, each of Advent and SGSI filed competing lawsuits in New York and Pennsylvania, respectively, to litigate the remaining breach contract and tortious interference of contract claims. Additionally, SGSI made a motion for injunctive relief to ensure that Advent provided SGSI with access to the Geneva, Moxy and APX software modules as SGSI believes is required pursuant to the terms of a valid contract. Although SGSI had the right to litigate the matter in the Pennsylvania Commonwealth courts and had moved to dismiss Advent’s New York action so that the dispute could proceed in SGSI’s designated forum, critical timing imperatives related to access to the relevant software led SGSI to consent to the jurisdiction of the New York court and litigate the matter in that forum. SEI filed counterclaims in New York against Advent and SS&C that are materially the same as its affirmative claims pled in Pennsylvania. There is effectively no material difference in the claims, defenses, or burdens of proof for either of Advent, as the plaintiff, or SGSI, as defendant, in New York courts, or in Pennsylvania with the roles of plaintiff and defendant reversed. On January 13, 2021, Judge Borrok of the Supreme Court of the State of New York, New York, granted SGSI’s motion for injunctive relief and issued an Order in which he characterized the basis for Advent’s claim for breach of contract as appearing to be “pre-textual” and found that SGSI’s claims for breach of contract would likely succeed on the merits. Judge Borrok granted SGSI’s motion for injunctive relief, precluding Advent from: • Dishonoring their contractual obligations and commitments under the SLSA, including, denying licenses, rights, and privileges under the SLSA; • Failing to provide new license keys for the license keys due to Geneva, Moxy, and APX, and other software products licensed pursuant to the SLSA; • Denying to SEI any and all access to the Geneva, Moxy, and APX software and related modules as are reasonably necessary to provide access to such software to SGSI’s clients; and • Denying to SGSI any and all support, maintenance and technical support services for Geneva, Moxy, and APX. Judge Borrok’s ruling secured SEI’s access to the licensed products during the pendency of the breach of contract and tortious interference with contract claims. On June 15, 2021, the New York Appellate Division unanimously affirmed the lower court’s decision granting SEI injunctive relief. During the first half of 2021 the parties engaged in unsuccessful settlement negotiations that were mediated by Judge Borrok. Prior to entering into settlement negotiations, SS&C Advent had moved to dismiss all of the tort counter-claims SEI had made against SS&C Advent for damages related to SS&C Advent’s conduct. SEI opposed this motion. SS&C Advent's counter-claims were: • breach of contract, • declaratory judgment, • tortious interference with existing and prospective contractual relations, • deceptive trade practices in violation of NY Statutes, • breach of the covenant of good faith and fair dealing, and • promissory estoppel. On October 5, 2021, Judge Borrok dismissed the third claim, with respect to prospective contractual relationships only, the fourth claim, and the sixth claim. We are now engaged in discovery with respect to the remaining claims and SS&C Advent faces the prospect of money damages in connection with its conduct. On December 1, 2021, SEI filed a motion for partial summary judgment in the New York state court action. This motion applies to Count I of SS&C’s complaint (Advent’s request for a declaratory judgment that its termination of the SEI license agreements was proper); and Counts I and II of SEI’s counterclaims (SEI’s request for a declaratory judgment that Advent’s termination of the contract was improper because the licenses are perpetual unless SEI chooses to not renew them or breaches the terms). SS&C filed a memorandum in opposition to our motion on December 23, 2021. SEI filed a response to that motion on January 18, 2022. On December 7, 2021, SEI filed its appellate brief with the Third Circuit Court of Appeals. SS&C filed their appellate brief on January 7, 2022. On January 27, SEI filed its reply brief and is awaiting a ruling. On December 31, 2021, SEI received the license key for another year of access to the product. This ensures SEI access to Advent and Moxy through January 31, 2023. SEI does not believe that it will have to change providers under the current terms of the SLSA. Further, the process of litigating its rights under this contract may be a multi-year process. Consequently, SEI does not believe that the Advent Matter will create any consequence to the services SGSI provides to SEI’s clients in the near term. SEI believes that it has alternatives available to it that will enable it to continue to provide currently provided services to its clients in all material respects in the unlikely event that there ultimately is a negative outcome in the Advent Matter. SEI believes SGSI has a strong basis for proving the actions it alleges in the Advent Matter and defeating Advent’s defenses thereto, and looks forward to the opportunity to continue to assert its rights under contract and pursue relief for what SEI believes may be business tort violations. SEI expects the financial impact of litigating the Advent Matter to be immaterial. Other Matters The Company is also a party to various other actions and claims arising in the normal course of business that the Company does not believe are material. The Company believes that the ultimate resolution of these matters will not have a material adverse effect on the Company's financial position or the manner in which the Company conducts its business. Currently, the Company does not believe the amount of losses associated with these matters can be estimated. While the Company does not believe that the amount of such losses will, when liquidated or estimable, be material to its financial position, the assumptions may be incorrect and any such loss could have a material adverse effect on the Company's results of operations or the manner in which the Company conducts its business in the period(s) during which the underlying matters are resolved. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The federal and state and foreign income tax provision is summarized as follows: Year Ended December 31, 2021 2020 2019 Current Federal $ 120,939 $ 92,649 $ 100,986 State 24,492 21,479 19,902 Foreign 9,480 8,256 11,722 154,911 122,384 132,610 Deferred Federal (7,106) (701) (1,635) State (735) (275) (960) Foreign 10 — — (7,831) (976) (2,595) Total income taxes $ 147,080 $ 121,408 $ 130,015 Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ materially from the amount accrued. The examination and the resolution process may last longer than one year. The components of Income before income taxes are summarized as follows: Year Ended December 31, 2021 2020 2019 Domestic $ 641,403 $ 517,451 $ 565,842 Foreign 52,270 51,243 65,599 $ 693,673 $ 568,694 $ 631,441 The Company's foreign income is primarily earned in Canada, the Republic of Ireland and the United Kingdom. The effective income tax rate differs from the federal income tax statutory rate due to the following: Year Ended December 31, 2021 2020 2019 Statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal tax benefit 2.6 3.0 2.4 Foreign tax expense and tax rate differential (0.1) (0.4) — Tax benefit from stock option exercises (1.2) (1.1) (1.9) Research and development tax credit (1.0) (1.0) (1.1) Foreign-Derived Intangible Income Deduction (FDII) (0.2) (0.3) (0.2) Other, net 0.1 0.1 0.4 21.2 % 21.3 % 20.6 % The increase in the Company's effective rate in 2020 was primarily due to reduced tax benefits related to the lower volume of stock option exercises as compared to the prior year and an increase in the Company's state effective tax rate partially offset by a decrease in foreign tax expense mainly related to a one time change in method for the Global Intangible Low Taxed Income (GILTI). Deferred income taxes for 2021 and 2020 reflect the impact of temporary differences between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. Significant components of deferred tax assets and liabilities at December 31, 2021 and 2020 are as follows: 2021 2020 Deferred Tax Assets: Stock-based compensation expense $ 32,087 $ 26,893 Federal net operating loss carryforward 7,280 — State net operating loss carryforward 58,927 65,114 Foreign net operating loss carryforward and other 6,402 6,634 Basis differences in investments 2,590 3,965 Federal benefit of state tax deduction for uncertain tax positions 1,842 2,255 Revenue and expense recognized in different periods for financial reporting and income tax purposes 1,484 3,025 Other assets 2,656 1,584 Total deferred income tax assets 113,268 109,470 Less: Federal net operating loss valuation allowance (1,453) — Less: State net operating loss valuation allowance (56,004) (62,229) Less: Foreign net operating loss valuation allowance (6,342) (6,547) Net deferred income tax assets $ 49,469 $ 40,694 Deferred Tax Liabilities: Capitalized software currently deductible for tax purposes, net of amortization $ (57,123) $ (63,588) Difference in financial reporting and income tax depreciation methods (9,592) (11,422) Difference between book and tax basis of other assets (7,179) (5,747) Goodwill and other intangibles (11,690) (2,462) Foreign dividend withholding tax — — Capitalized contract costs (8,347) (7,762) Other liabilities (1,431) (1,900) Total deferred income tax liabilities $ (95,362) $ (92,881) Net deferred income tax liabilities $ (45,893) $ (52,187) As a result of the Company's acquisition of Novus Partners in November 2021, the Company acquired federal operating loss carryovers of $28,285 as well as research and development credit carryovers of $1,340. The Company has recorded a deferred tax asset associated with these carryovers of $7,280 and a related valuation allowance of $1,454 associated with the statutory limitations of the carryforwards. Operating loss carryovers generated after December 31, 2017 have an indefinite carryforward period, while those generated before December 31, 2017 will expire beginning in 2033 through 2037. See Note 14 for more information related to the acquisition of Novus Partners. The valuation allowances against deferred tax assets at December 31, 2021 and 2020 are related to federal and state net operating losses from certain domestic subsidiaries, foreign net operating losses from certain foreign subsidiaries and the restriction of the use of the foreign tax credits. Internal Revenue Code Section 382 places an annual limitation on the amount of operating losses and tax credits an acquiring entity can use of operating loss and tax credit carryforwards of acquired entities. Certain state and foreign tax statutes significantly limit the utilization of net operating losses for domestic and foreign subsidiaries. Furthermore, these net operating losses cannot be used to offset the net income of other subsidiaries. The Company recognizes uncertain tax positions in accordance with the applicable accounting guidance and adjusts these liabilities when management’s judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company's current estimate of the tax liabilities. The Company’s total unrecognized tax benefit, including interest and penalties, as of December 31, 2021 was $16,224, of which $14,382 would affect the effective tax rate if the Company were to recognize the tax benefit. The gross amount of uncertain tax liability of $4,253 is expected to be paid within one year is netted against the current payable account while the remaining amount of $11,972 is included in Other long-term liabilities on the accompanying Consolidated Balance Sheet. During the year ended December 31, 2021, the Company recognized $4,782 of previously unrecognized tax benefits relating to the lapse of the statute of limitation and settlements. The Company files a consolidated federal income tax return and separate income tax returns with various states. Certain subsidiaries of the Company file tax returns in foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examination for years before 2018 and is no longer subject to state, local or foreign income tax examinations by authorities for years before 2015. A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: 2021 2020 2019 Balance as of January 1 $ 15,911 $ 15,356 $ 14,367 Tax positions related to current year: Gross additions 3,672 3,352 3,054 Tax positions related to prior years: Gross additions 382 236 1,465 Settlements (678) — (145) Lapses on statute of limitations (4,401) (3,033) (3,385) Balance as of December 31 $ 14,886 $ 15,911 $ 15,356 The above reconciliation of the gross unrecognized tax benefit will differ from the amount which would affect the effective tax rate because of the recognition of the federal and state tax benefits and interest and penalties. The Company classifies all interest and penalties as income tax expense. The Company has recorded $1,338, $2,105 and $1,962 in liabilities for tax-related interest and penalties in 2021, 2020 and 2019, respectively. The Company estimates it will recognize $4,253 of unrecognized tax benefits within the next twelve months due to lapses on the statute of limitation. The Company includes its direct and indirect subsidiaries in its U.S. consolidated federal income tax return. The Company’s tax sharing allocation agreement provides that any subsidiary having taxable income will pay a tax liability equivalent to what that subsidiary would have paid if it filed a separate income tax return. If the separately calculated federal income tax provision for any subsidiary results in a tax loss, the current benefit resulting from such loss, to the extent utilizable on a separate return basis, is accrued and paid to that subsidiary. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company’s reportable business segments are: Private Banks – Provides outsourced investment processing and investment management platforms to banks and trust institutions, independent wealth advisers and financial advisors worldwide; Investment Advisors – Provides investment management and investment processing platforms to affluent investors through a network of independent registered investment advisors, financial planners and other investment professionals in the United States; Institutional Investors – Provides OCIO solutions, including investment management and administrative outsourcing platforms to retirement plan sponsors, healthcare systems, higher education and other not-for-profit organizations worldwide; Investment Managers – Provides investment operations outsourcing platforms to fund companies, banking institutions, traditional and non-traditional investment managers worldwide and family offices in the United States; and Investments in New Businesses – Focuses on providing investment management solutions to ultra-high-net-worth families residing in the United States; developing network and data protection services; modularizing larger technology platforms into stand-alone components; entering new markets; and conducting other research and development activities. In 2021, 2020 and 2019, no single customer accounted for more than 10% of revenues in any business segment. The following tables highlight certain financial information about each of the Company’s business segments for the years ended December 31, 2021, 2020 and 2019: Private Banks Investment Institutional Investment Investments Total For the Year Ended December 31, 2021 Revenues $ 493,570 $ 482,949 $ 343,805 $ 581,157 $ 16,828 $ 1,918,309 Expenses 462,796 240,334 168,070 348,655 53,219 1,273,074 Operating profit (loss) $ 30,774 $ 242,615 $ 175,735 $ 232,502 $ (36,391) $ 645,235 Private Investment Institutional Investment Investments Total For the Year Ended December 31, 2020 Revenues $ 455,393 $ 407,564 $ 317,627 $ 489,462 $ 14,012 $ 1,684,058 Expenses 446,481 205,913 149,909 308,999 52,871 1,164,173 Operating profit (loss) $ 8,912 $ 201,651 $ 167,718 $ 180,463 $ (38,859) $ 519,885 Private Investment Institutional Investment Investments Total For the Year Ended December 31, 2019 Revenues $ 470,276 $ 403,778 $ 322,062 $ 440,796 $ 12,973 $ 1,649,885 Expenses 443,136 208,508 153,937 282,024 29,660 1,117,265 Operating profit (loss) $ 27,140 $ 195,270 $ 168,125 $ 158,772 $ (16,687) $ 532,620 A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019 is as follows: Year Ended December 31, 2021 2020 2019 Total operating profit from segments above $ 645,235 $ 519,885 $ 532,620 Corporate overhead expenses (91,854) (73,998) (72,196) Income from operations $ 553,381 $ 445,887 $ 460,424 The following tables provide additional information for the years ended December 31, 2021, 2020 and 2019 pertaining to our business segments: Capital Expenditures (1) Depreciation Year Ended December 31, 2021 2020 2019 2021 2020 2019 Private Banks $ 26,472 $ 29,061 $ 33,068 $ 19,040 $ 16,206 $ 14,349 Investment Advisors 11,100 15,588 17,413 3,646 4,821 4,653 Institutional Investors 2,614 3,958 4,057 1,241 1,214 1,600 Investment Managers 10,275 25,909 18,970 8,185 7,336 7,145 Investments in New Businesses 924 1,211 1,349 351 341 383 Total from business segments $ 51,385 $ 75,727 $ 74,857 $ 32,463 $ 29,918 $ 28,130 Corporate Overhead 1,151 2,840 2,314 1,018 1,041 1,306 $ 52,536 $ 78,567 $ 77,171 $ 33,481 $ 30,959 $ 29,436 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization Year Ended December 31, 2021 2020 2019 Private Banks $ 34,159 $ 30,240 $ 29,054 Investment Advisors 11,654 10,694 10,311 Institutional Investors 2,321 1,707 1,726 Investment Managers 9,955 9,365 9,358 Investments in New Businesses 739 739 740 Total from business segments $ 58,828 $ 52,745 $ 51,189 Corporate Overhead 324 230 230 $ 59,152 $ 52,975 $ 51,419 Assets are not allocated to segments for internal reporting presentations. The following table presents revenues based on the location of the use of the products or services: For the Year Ended December 31, 2021 2020 2019 United States $ 1,629,527 $ 1,427,152 $ 1,385,744 International operations 288,782 256,906 264,141 $ 1,918,309 $ 1,684,058 $ 1,649,885 The following table presents assets based on their location: 2021 2020 United States $ 1,926,867 $ 1,772,179 International operations 427,835 395,077 $ 2,354,702 $ 2,167,256 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company, either by itself or through its wholly-owned subsidiaries, serves as the sponsor, administrator, investment advisor, distributor and shareholder servicer for SEI-sponsored investment products. These investment products are offered to clients of the Company and its subsidiaries. Fees earned by the Company for the related services are recognized pursuant to the provisions of investment advisory, fund administration, distribution, and shareholder services agreements directly with the investment products. These fees totaled $473,161, $432,806 and $449,725 in 2021, 2020 and 2019, respectively. The Company also serves as an introducing broker-dealer for securities transactions of SEI-sponsored investment products. The Company recognized $1,917, $2,159 and $632 in commissions during 2021, 2020 and 2019, respectively. Both of these fees are reflected in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Receivables from investment products on the accompanying Consolidated Balance Sheets primarily represent fees receivable for distribution, investment advisory, and administration services to various investment products sponsored by SEI. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions | Business Acquisitions Finomial On October 18, 2021, the Company acquired all ownership interests of Finomial Corporation (Finomial), an investor lifecycle management firm offering cloud-native financial technology. Under the acquisition method of accounting, the total purchase price was allocated to Finomial's net tangible and intangible assets based upon their estimated fair values as of October 18, 2021. The total purchase price for Finomial was $8,217. The Company acquired $22 in cash during the acquisition, resulting in $8,195 net cash paid for Finomial. The purchase price allocation related to the Finomial acquisition is as follows: Estimated Fair Value Estimated Useful Life Current assets, net of current liabilities $ 214 Property and equipment, net 38 Goodwill 3,825 Identifiable intangible assets: Acquired technology 3,010 10 years Client relationships 1,030 2 years Trade names 100 5 years Net cash consideration $ 8,217 The results of operations of Finomial are included in the Investment Managers segment and are reflected in the Company's Consolidated Statement of Operations since the completion of the acquisition on October 18, 2021. Any goodwill generated for income tax purposes from the acquisition is fully deductible (See Note 15). Pro forma information has not been presented because the effect of the Finomial acquisition is not material to the Company's consolidated financial results. Novus On November 12, 2021, the Company acquired all ownership interests of Novus Partners (Novus), a global portfolio intelligence platform company, to expand the Company's capabilities for clients of the Institutional Investors segment. Under the acquisition method of accounting, the total purchase price was allocated to Novus' net tangible and intangible assets based upon their estimated fair values as of November 12, 2021. The total purchase price for Novus was $72,496. The Company acquired $532 in cash during the acquisition, resulting in $71,964 net cash paid for Novus. According to the terms of the purchase agreement, a portion of the purchase price was placed into escrow to indemnify the Company of any pre-acquisition damages. As of December 31, 2021, the balance available in escrow was $4,244. The purchase price allocation related to the Novus acquisition is as follows: Estimated Fair Value Estimated Useful Life Property and equipment, net $ 220 Other assets 6,236 Goodwill 48,911 Identifiable intangible assets: Acquired technology 20,260 7 years Client relationships 6,240 2 years Trade names 1,430 20 years Current liabilities, net of current assets (4,463) Long-term liabilities (6,338) Net cash consideration $ 72,496 The results of operations of Novus are included in the Institutional Investors segment and are reflected in the Company's Consolidated Statement of Operations since the completion of the acquisition on November 12, 2021. Any goodwill generated for income tax purposes from the acquisition is not deductible (See Note 15). Pro forma information has not been presented because the effect of the Novus acquisition is not material to the Company's consolidated financial results. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of the Company's goodwill by segment are as follows: Institutional Investors Investment Managers Investments in New Businesses Total Balance, December 31, 2020 $ — $ 52,990 $ 11,499 $ 64,489 Acquisition of Finomial — 3,825 — 3,825 Acquisition of Novus 48,911 — — 48,911 Foreign currency translation adjustments — 7 — 7 Balance, December 31, 2021 $ 48,911 $ 56,822 $ 11,499 $ 117,232 In October 2021, the Company acquired all ownership interests of Finomial (See Note 14). The excess purchase price over the estimated value of the net tangible and identifiable intangible assets was allocated to goodwill. The total amount of goodwill from this transaction amounted to $3,825 and is included in the accompanying Consolidated Balance Sheet. In November 2021, the Company acquired all ownership interests of Novus (See Note 14). The excess purchase price over the estimated value of the net tangible and identifiable intangible assets was allocated to goodwill. The total amount of goodwill from this transaction amounted to $48,911 and is included in the accompanying Consolidated Balance Sheet. There was no change in the carrying amount of the Company's goodwill during 2020. The Company's intangible assets consist of: 2021 Weighted Average Estimated Useful Life 2020 Weighted Average Estimated Useful Life Acquired technology $ 47,780 8.5 years $ 13,510 10.0 years Client relationships 30,878 8.3 years 16,940 13.9 years Non-competition agreements 3,470 5.0 years 3,470 5.0 years Trade name 4,370 14.1 years 2,840 7.0 years 86,498 36,760 Less: Accumulated amortization (17,716) (12,456) Intangible assets, net $ 68,782 $ 24,304 In addition to the intangible assets acquired through the acquisitions of Finomial and Novus, during 2021, the Company also acquired intangible assets through the purchase of a technology platform providing digital collaboration tools for financial advisors and the purchase a defined contribution master trust in the United Kingdom. The Company recognized $5,260 and $3,683 of amortization expense related to intangible assets during 2021 and 2020, respectively. The Company currently expects to recognize amortization expense related to intangible assets as of December 31, 2021 each year from 2022 through 2026 as follows: Year Expected Amortization Expense Related to Intangible Assets 2022 $ 12,278 2023 11,585 2024 8,125 2025 7,906 2026 7,799 |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers The Company’s principal sources of revenues are: (1) asset management, administration and distribution fees primarily earned based upon a contractual percentage of net assets under management or administration; and (2) information processing and software servicing fees that are either recurring and primarily earned based upon the number of trust accounts being serviced or a percentage of the market value of the clients' assets processed on the Company's platforms, or non-recurring and based upon project-oriented contractual agreements related to client implementations. Disaggregation of Revenue The following tables provide additional information pertaining to our revenues disaggregated by major product line and primary geographic market based on the location of the use of the products or services for each of the Company’s business segments for 2021, 2020 and 2019: Private Banks Investment Institutional Investment Investments Total Major Product Lines: For the Year Ended December 31, 2021 Investment management fees from pooled investment products $ 134,617 $ 301,581 $ 57,716 $ 134 $ 1,330 $ 495,378 Investment management fees from investment management agreements 2,271 158,181 282,797 — 14,838 458,087 Investment operations fees 1,512 — — 538,446 — 539,958 Investment processing fees - PaaS 215,473 — — — — 215,473 Investment processing fees - SaaS 113,964 — 1,207 13,792 — 128,963 Professional services fees 22,054 — — 3,508 — 25,562 Account fees and other 3,679 23,187 2,085 25,277 660 54,888 Total revenues $ 493,570 $ 482,949 $ 343,805 $ 581,157 $ 16,828 $ 1,918,309 Primary Geographic Markets: United States $ 315,040 $ 482,949 $ 274,867 $ 539,843 $ 16,828 $ 1,629,527 United Kingdom 111,900 — 53,888 — — 165,788 Canada 48,325 — 4,396 — — 52,721 Ireland 18,305 — 10,151 41,314 — 69,770 Other — — 503 — — 503 Total revenues $ 493,570 $ 482,949 $ 343,805 $ 581,157 $ 16,828 $ 1,918,309 Private Investment Institutional Investment Investments Total Major Product Lines: For the Year Ended December 31, 2020 Investment management fees from pooled investment products $ 127,883 $ 271,627 $ 53,283 $ 637 $ 1,411 $ 454,841 Investment management fees from investment management agreements 1,470 115,887 262,709 — 12,105 392,171 Investment operations fees 1,804 — — 447,517 — 449,321 Investment processing fees - PaaS 184,711 — — — — 184,711 Investment processing fees - SaaS 113,012 — — 13,739 — 126,751 Professional services fees 21,594 — — 5,753 — 27,347 Account fees and other 4,919 20,050 1,635 21,816 496 48,916 Total revenues $ 455,393 $ 407,564 $ 317,627 $ 489,462 $ 14,012 $ 1,684,058 Primary Geographic Markets: United States $ 298,708 $ 407,564 $ 250,321 $ 456,547 $ 14,012 $ 1,427,152 United Kingdom 97,896 — 51,292 — — 149,188 Canada 41,762 — 5,610 — — 47,372 Ireland 17,027 — 9,850 32,915 — 59,792 Other — — 554 — — 554 Total revenues $ 455,393 $ 407,564 $ 317,627 $ 489,462 $ 14,012 $ 1,684,058 Private Investment Institutional Investment Investments Total Major Product Lines: For the Year Ended December 31, 2019 Investment management fees from pooled investment products $ 135,503 $ 282,253 $ 54,726 $ 766 $ 1,293 $ 474,541 Investment management fees from investment management agreements 1,616 103,428 266,323 — 11,571 382,938 Investment operations fees 1,634 — — 403,208 — 404,842 Investment processing fees - PaaS 177,046 — — — — 177,046 Investment processing fees - SaaS 132,661 — — 11,036 — 143,697 Professional services fees 15,687 — — 5,209 — 20,896 Account fees and other 6,129 18,097 1,013 20,577 109 45,925 Total revenues $ 470,276 $ 403,778 $ 322,062 $ 440,796 $ 12,973 $ 1,649,885 Primary Geographic Markets: United States $ 304,860 $ 403,778 $ 252,149 $ 411,984 $ 12,973 $ 1,385,744 United Kingdom 102,518 — 52,584 — — 155,102 Canada 43,661 — 6,889 — — 50,550 Ireland 19,237 — 9,588 28,812 — 57,637 Other — — 852 — — 852 Total revenues $ 470,276 $ 403,778 $ 322,062 $ 440,796 $ 12,973 $ 1,649,885 Investment management fees from pooled investment products - Revenues associated with clients' assets invested in Company-sponsored pooled investment products. Contractual fees are stated as a percentage of the market value of assets under management and collected on a monthly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Investment management fees from investment management agreements - Revenues based on assets of clients of the Institutional Investors segment primarily invested in Company-sponsored products. Each client is charged an investment management fee that is stated as a percentage of the market value of all assets under management. The client is billed directly on a quarterly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Revenues associated with the separately managed account program offered through registered investment advisors located throughout the United States. The contractual fee is stated as a percentage of the market value of all assets invested in the separately managed account and collected on a quarterly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Investment operations fees - Revenues earned from accounting and administrative services, distribution support services and regulatory and compliance services to investment management firms and family offices. The Company contracts directly with the investment management firm or family office. The contractual fees are stated as a percentage of net assets under administration and billed when asset valuations are finalized. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations. Investment processing fees - Platform as a Service - Revenues associated with clients that outsource their entire investment operation and back-office processing functions. Through the use of the Company's proprietary platforms, the Company assumes all back-office investment processing services including investment processing, custody and safekeeping of assets, income collections, securities settlement and other related trust activities. The contractual fee is based on a monthly fee plus additional fees determined on a per-account or per-transaction basis. Contractual fees can also be stated as a percentage of the value of assets processed on the Company's platforms each month as long as the fee is in excess of a monthly contractual minimum. The client is billed directly on a monthly basis. Revenues are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations. Investment processing fees - Software as a Service - Revenues associated with clients that outsource investment processing technology software and computer processing by accessing our proprietary software and data center remotely but retain responsibility for all investment operations, client administration and other back-office trust operations. The contractual fee is based on a monthly fee plus additional fees determined on a per-account or per-transaction basis. The client is billed directly on a monthly basis. Revenues are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations. Professional services fees - Revenues associated with the business services migration for investment processing clients of the Private Banks segment and investment operations clients of the Investment Managers segment. In addition, Professional services include other services such as business transformation consulting. Typically, fees are stated as a contractual fixed fee. The client is billed directly and fees are collected according to the terms of the agreement. Account fees and other - Revenues associated with custody account servicing, account terminations, reimbursements received for out-of-pocket expenses, and other fees for the provision of ancillary services. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LeasesThe Company has operating leases for corporate facilities and equipment. The Company's expense related to leases during 2021, 2020 and 2019 was $11,190, $9,711 and $10,159, respectively, and is included in Facilities, supplies and other costs on the accompanying Consolidated Statements of Operations. During 2021, the Company incurred variable lease costs of $2,110 included in total expense related to leases. There were no material variable lease costs during 2020 and 2019. The Company's future minimum lease payments under non-cancelable leases as of December 31, 2021 are as follows: Year Future Minimum Lease Payment 2022 $ 11,799 2023 9,628 2024 7,778 2025 5,483 2026 4,124 Thereafter 2,073 Total future minimum lease payments 40,885 Less: Imputed interest (1,918) Total $ 38,967 The following table provides supplemental Consolidated Balance Sheet information related to the Company's leases: 2021 2020 Current portion of long-term operating lease liabilities $ 11,328 $ 8,579 Long-term operating lease liabilities 27,639 34,058 Total operating lease liabilities $ 38,967 $ 42,637 Weighted average remaining lease term 4.6 years 5.5 years Weighted average discount rate 2.26 % 2.43 % The following table provides supplemental cash flow information related to the Company's leases: Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities $ 10,132 $ 10,361 $ 10,932 Right-of-use assets obtained in exchange for lease obligations $ 3,778 $ 3,272 $ 6,372 As of December 31, 2021, the Company had no material operating leases that have not yet commenced. |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts And Reserves | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | Schedule II - Valuation and Qualifying Accounts and Reserves SEI Investments Company (In thousands) and Subsidiaries Year Ended December 31, Additions Description Balance at Charged to Charged (Deductions) Balance Allowance for doubtful accounts: 2021 $ 1,100 $ 502 $ — $ — $ 1,602 2020 1,201 — — (101) 1,100 2019 718 483 — — 1,201 Deferred income tax valuation allowance: 2021 $ 68,776 $ — $ — $ (4,977) $ 63,799 2020 70,731 — — (1,955) 68,776 2019 72,316 — — (1,585) 70,731 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and entities in which it holds a controlling financial interest. The Company determines whether it has a controlling financial interest either by its decision-making ability through voting interests or by the extent of the Company’s participation in the economic risks and rewards of the entity through variable interests. The Company’s principal subsidiaries are SEI Investments Distribution Co. (SIDCO), SEI Investments Management Corporation (SIMC), SEI Private Trust Company (SPTC), SEI Trust Company (STC), SEI Global Services, Inc. (SGSI) and SEI Investments (Europe) Limited (SIEL). All intercompany accounts and transactions have been eliminated. |
Variable Interest Entities | Variable Interest Entities The Company or its affiliates have created numerous investment products for its clients in various types of legal entity structures. The Company serves as the Manager, Administrator and Distributor for these investment products and may also serve as the Trustee for some of the investment products. The Company receives asset management, distribution, administration and custodial fees for these services. Clients are the equity investors and participate in proportion to their ownership percentage in the net income or loss and net capital gains or losses of the products, and, on liquidation, will participate in proportion to their ownership percentage in the remaining net assets of the products after satisfaction of outstanding liabilities. The Company has concluded that it is not the primary beneficiary of the entities and, therefore, is not required to consolidate any of the pooled investment vehicles for which it receives asset management, distribution, administration and custodial fees under the VIE model. The entities either do not meet the definition of a VIE or the Company does not hold a variable interest in the entities. The entities either qualify for the money market scope exception, or are entities in which |
Management's Use of Estimates | Management’s Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition and Deferred Contract Costs | Revenue Recognition Revenue is recognized when the transfer of control of promised goods or services under the terms of a contract with customers are satisfied in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those promised goods or services. Certain portions of the Company’s revenues involve a third party in providing goods or services to its customers. In such circumstances, the Company must determine whether the nature of its promise to the customer is to provide the underlying goods or services (the Company is the principal in the transaction and reports the transaction gross) or to arrange for a third party to provide the underlying goods or services (the entity is the agent in the transaction and reports the transaction net). The Company does not disclose the value of unsatisfied performance obligations as the majority of its contracts relate to: 1) contracts with an original term of one year or less; 2) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed; and 3) contracts that are based on the value of assets under management or administration. See Note 16 for related disclosures regarding revenue recognition. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents include $290,256 and $347,082 at December 31, 2021 and 2020, respectively, primarily invested in SEI-sponsored open-ended money market mutual funds. The SEI-sponsored mutual funds are considered Level 1 assets. |
Restricted Cash | Restricted Cash Restricted cash includes $250 at December 31, 2021 and 2020 segregated for regulatory purposes related to trade-execution services conducted by SIEL. Restricted cash also includes $101 at December 31, 2021 and 2020 segregated in special reserve accounts for the benefit of SIDCO customers in accordance with certain rules established by the Securities and Exchange Commission for broker-dealers. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company’s estimate is based on historical collection experience and a review of the current status of trade accounts receivable. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash equivalents and trade receivables. Cash equivalents are principally invested in short-term money market funds or placed with major banks and high-credit qualified financial institutions. Cash deposits maintained with institutions are in excess of federally insured limits. Concentrations of credit risk with respect to the Company's receivables are limited due to the large number of clients and their dispersion across geographic areas. No single group or customer represents greater than 10% of total accounts receivable. |
Property and Equipment | Property and Equipment Property and Equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. Construction in progress includes the cost of construction and other direct costs attributable to the construction. When property and equipment are retired or disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives using the straight line method for financial statement purposes. No provision for depreciation is made for construction in |
Marketable Securities | Marketable Securities The classification of investments in marketable securities is determined at the time of purchase and reevaluated at each balance sheet date. Debt securities classified as available-for-sale are reported at fair value as determined by the most recently traded price of each security at the balance sheet date. Unrealized gains and losses associated with the Company's available for sale debt securities, net of income taxes, are reported as a separate component of comprehensive income. SIDCO, the Company’s broker-dealer subsidiary, reports changes in fair value of marketable securities through current period earnings due to specialized accounting practices related to investments by broker-dealers. The Company records its investments in money market funds and commercial paper classified as cash equivalents, funds sponsored by LSV and equity securities not accounted for under the equity method on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these securities are recognized in current period earnings. The specific identification method is used to compute the realized gains and losses on all of the Company’s marketable securities (See Note 5). The Company evaluates the realizable value of its available for sale debt securities on a quarterly basis. In the event that an other-than-temporary decline in fair value has occurred, the amount of the decline related to a credit loss is reported through current period earnings. Some of the factors considered in determining other-than-temporary impairment include, but are not limited to, the intent of management to sell the security, the likelihood that the Company will be required to sell the security before recovering its cost, and management’s expectation to recover the entire amortized cost basis of the security even if there is no intent to sell the security. The Company did not recognize any impairment charges related to its available for sale debt securities in 2021, 2020 or 2019. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used by the Company to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities without adjustment. The Company’s Level 1 assets primarily include investments in mutual funds sponsored by SEI that are quoted daily. Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 financial assets consist of GNMA mortgage-backed securities, Federal Home Loan Bank (FHLB) and other U.S. government agency short-term notes. The investments in GNMA mortgage-backed securities were purchased for the sole purpose of satisfying applicable regulatory requirements imposed on our wholly-owned limited purpose federal thrift subsidiary, SPTC. The investments in FHLB and other U.S. government agency short-term notes were purchased as part of a cash management program requiring only short term, top-tier investment grade government and corporate securities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment by management. The Company had no Level 3 financial assets at December 31, 2021 or 2020 that were required to be measured at fair value on a recurring basis. The Company's Level 3 financial liabilities at December 31, 2021 and 2020 consist entirely of an estimated contingent consideration resulting from the Company's acquisition of Huntington Steele, LLC (See Note 14). The fair value of an asset or liability may include inputs from more than one level in the fair value hierarchy. The lowest level of significant inputs used to value the asset or liability determines which level the asset or liability is classified in its entirety. Transfers between levels of the fair value hierarchy are reported at fair value as of the beginning of the period in which the transfers occur. See Note 4 for related disclosures regarding fair value measurements. |
Capitalized Software | Capitalized Software Costs incurred for the development of internal use software to be offered in a hosting arrangement is capitalized during the development stage of the software application. These costs include direct external and internal costs to design the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary and post-implementation stages of the software application are expensed as incurred. Costs associated with significant enhancements to a software application are capitalized while costs incurred to maintain existing software applications are expensed as incurred. The capitalization of software development costs requires considerable judgment by management to ensure the costs incurred will result in additional functionality of the software. Amortization of capitalized software development costs begins when the product is ready for its intended use. Capitalized software development costs are amortized on a product-by-product basis using the straight-line method over the estimated economic life of the product or enhancement. The Company capitalized $26,037, $24,119 and $34,074 of software development costs during 2021, 2020 and 2019, respectively. The Company's capitalized software development costs primarily relate to the further development of the SEI Wealth Platform SM (SWP). The Company capitalized $25,938, $22,257 and $33,084 of software development costs for significant enhancements to SWP during 2021, 2020 and 2019, respectively. As of December 31, 2021, the net book value of SWP was $235,878. The net book value includes $29,253 of capitalized software development costs in-progress associated with future releases. Management continually reassesses the estimated useful life of SWP and any change in management’s estimate could result in the remaining amortization expense to be accelerated or spread out over a longer period. As of December 31, 2021, SWP has a weighted average remaining life of 10.1 years. Amortization expense for SWP was $47,769, $43,853 and $42,297 in 2021, 2020 and 2019, respectively, and is included in Amortization expense on the accompanying Consolidated Statements of Operations. The Company currently expects to recognize amortization expense related to all capitalized software development costs placed into service as of December 31, 2021 each year from 2022 through 2026 as follows: Year Expected Amortization Expense Related to Capitalized Software 2022 $ 39,084 2023 20,301 2024 20,301 2025 20,301 2026 19,294 The Company evaluates the carrying value of capitalized software development costs when circumstances indicate the carrying value may not be recoverable. The review of capitalized software development costs for impairment requires significant assumptions about operating strategies, underlying technologies utilized, and external market factors. External market factors include, but are not limited to, expected levels of competition, barriers to entry by potential competitors, stability in the target market and governmental regulations. The Company did not recognize any impairment charges related to its capitalized software development costs in 2021, 2020 or 2019. |
Business Combinations, Contingent Consideration Liabilities | Business Combinations The Company accounts for business combinations in accordance with Accounting Standards Codification Topic 805, Business Combinations (ASC 805). ASC 805 establishes principles and requirements for recognizing the total consideration transferred, assets acquired and liabilities assumed in a business combination. ASC 805 also provides guidance for recognizing and measuring goodwill acquired in a business combination and requires the acquirer to disclose information needed to evaluate and understand the financial impact of the business combination. The Company recognizes assets and liabilities acquired at their estimated fair values. Management uses judgment to identify the acquired assets and liabilities assumed; estimate the fair value of these assets and liabilities; estimate the useful life of the assets; and assess the appropriate method for recognizing depreciation or amortization expense over the estimated useful life of the assets. In October 2021, the FASB issued Accounting Standards Update (ASU) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08). The Company elected to early adopt the amendments in ASU 2021-08 during 2021 which requires retrospective application to all business combinations where the acquisition date occurs on or after January 1, 2021. ASU 2021-08 provides an exception to fair value measurement for revenue contracts acquired in business combinations and requires the acquirer in a business combination to value contract assets and contract liabilities in accordance with FASB Topic 606 Revenue from Contracts with Customers. ASU 2021-08 also allows for two practical expedients: 1) the acquirer may reflect the |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company reviews long-lived assets and identifiable definite-lived intangible assets for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. For purposes of recognizing and measuring an impairment loss, a long-lived asset is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent. Identifiable definite-lived intangible assets on the Company’s Consolidated Balance Sheet are amortized on a straight-line basis according to their estimated useful lives. Goodwill is not amortized but is reviewed for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Current guidance requires that a qualitative assessment be performed to assess goodwill for impairment. The fair value of each reporting unit is compared with its carrying value, including goodwill. If the fair value exceeds the carrying value, goodwill is not impaired and no further testing is performed. If the qualitative assessment indicates the carrying value exceeds the fair value, a quantitative impairment test is then utilized to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized. The Company did not recognize any impairment charges related to its goodwill or other intangible assets in 2021, 2020 or 2019. See Note 15 for related disclosures regarding goodwill and intangible assets. |
Income Taxes | Income TaxesThe Company applies the asset and liability approach to account for income taxes whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ materially from the amount accrued. The examination and the resolution process may last longer than one year. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. Assets and liabilities have been translated into U.S. dollars using the rates of exchange at the balance sheet dates. The results of operations have been translated into U.S. dollars at average exchange rates prevailing during the period. The resulting translation gain and loss adjustments are recorded as a separate component of comprehensive income. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the combination of the weighted average number of common shares outstanding and the dilutive potential common shares, such as stock options, outstanding during the period. |
Stock-based Compensation | Stock-Based CompensationStock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. The amount of stock-based compensation expense that is recognized in a given period is dependent upon management’s estimate of when the vesting targets are expected to be achieved. If this estimate proves to be inaccurate, the remaining amount of stock-based compensation expense could be accelerated, spread out over a longer period, or reversed |
Leases | Leases The Company determines if an arrangement is a lease at the inception of the contract. The Company's operating leases are included in Operating lease right-of-use (ROU) assets, Current portion of long-term operating lease liabilities, and Long-term operating lease liabilities on the accompanying Consolidated Balance Sheets. The operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit interest rate, the Company utilizes an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In determining the discount rate used in the present value calculation, the Company has elected to apply the portfolio approach for leases of equipment provided the leases commenced at or around the same time. This election allows the Company to account for leases at a portfolio level provided that the resulting accounting at this level would not differ materially from the accounting at the individual lease level. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected to account for lease and non-lease components separately. Operating lease ROU assets include all contractual lease payments and initial direct costs incurred, less any lease incentives. Facility leases generally only contain lease expense and non-component items such as taxes and pass through charges. Only the lease components are included in the ROU assets and lease liabilities. Additionally, the Company has elected not to apply the recognition requirements of ASC 842 to leases which have a lease term of less than one year at the commencement date. |
New Accounting Pronouncements | New Accounting PronouncementsIn July 2021, the FASB issued ASU 2021-05, Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments (ASU 2021-05) which requires a lessor to classify a lease with entirely or partially variable payments that do not depend on an index or rate as an operating lease if a different classification would result in a commencement date selling loss (Day 1 loss). ASU 2021-05 is effective for the Company beginning in the first quarter of 2022. The Company does not believe the adoption of ASU 2021-05 will have a material impact on its consolidated financial statements and related disclosures. |
Investments in Unconsolidated Affiliates | The Company accounts for its interest in LSV using the equity method because of its less than 50% 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. |
Investments in Affiliated Funds | The fair value of the Company's investment funds sponsored by LSV is measured using the net asset value per share (NAV) as a practical expedient. The NAVs of the funds are calculated by the funds' independent custodian and are derived from the fair values of the underlying investments as of the reporting date. The funds allow for investor redemptions at the end of each calendar month. |
Securities Owned | The Company’s broker-dealer subsidiary, SIDCO, has investments in U.S. government agency securities with maturity dates less than one year. These investments are reflected as Securities owned on the accompanying Consolidated Balance Sheets. Due to specialized accounting practices applicable to investments by broker-dealers, the securities are reported at fair value and changes in fair value are recorded in current period earnings. |
Accumulated Other Comprehensive Income (Loss) | Other comprehensive income (loss) consists of net income and other gains and losses affecting shareholders’ equity that are excluded from net income. Other comprehensive income (loss) includes unrealized gains and losses on available for sale debt securities and foreign currency translation adjustments. The Company presents other comprehensive income (loss) in its Consolidated Statements of Comprehensive Income. |
Uncertain Tax Positions | The Company recognizes uncertain tax positions in accordance with the applicable accounting guidance and adjusts these liabilities when management’s judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company's current estimate of the tax liabilities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Amortization Expense Related to the SEI Wealth Platform | The Company currently expects to recognize amortization expense related to all capitalized software development costs placed into service as of December 31, 2021 each year from 2022 through 2026 as follows: Year Expected Amortization Expense Related to Capitalized Software 2022 $ 39,084 2023 20,301 2024 20,301 2025 20,301 2026 19,294 |
Schedule of Calculation of Basic and Diluted Earnings Per Share | The calculations of basic and diluted earnings per share for 2021, 2020 and 2019 are: 2021 2020 2019 Net income $ 546,593 $ 447,286 $ 501,426 Shares used to compute basic earnings per common share 141,216,000 146,709,000 151,540,000 Dilutive effect of stock options 2,096,000 2,294,000 3,361,000 Shares used to compute diluted earnings per common share 143,312,000 149,003,000 154,901,000 Basic earnings per common share $ 3.87 $ 3.05 $ 3.31 Diluted earnings per common share $ 3.81 $ 3.00 $ 3.24 |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | These tables contain condensed financial information of LSV: Condensed Statement of Operations Year ended December 31, 2021 2020 2019 Revenues $ 456,259 $ 391,648 $ 491,700 Net income $ 354,964 $ 301,620 $ 390,533 Condensed Balance Sheets December 31, 2021 2020 Current assets $ 171,058 $ 151,515 Non-current assets 4,792 4,296 Total assets $ 175,850 $ 155,811 Current liabilities $ 82,858 $ 77,077 Non-current liabilities 3,863 4,620 Partners’ capital 89,129 74,114 Total liabilities and partners’ capital $ 175,850 $ 155,811 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Receivables | Receivables on the accompanying Consolidated Balance Sheets consist of: 2021 2020 Trade receivables $ 111,209 $ 99,106 Fees earned, not billed 315,255 262,167 Other receivables 16,747 25,046 443,211 386,319 Less: Allowance for doubtful accounts (1,602) (1,100) Receivables, net $ 441,609 $ 385,219 |
Schedule of Property and Equipment | Property and Equipment on the accompanying Consolidated Balance Sheets consists of: 2021 2020 Buildings $ 209,766 $ 206,151 Equipment 153,158 141,820 Land 24,651 24,179 Purchased software 156,387 147,838 Furniture and fixtures 21,254 21,439 Leasehold improvements 21,946 21,604 Construction in progress 955 4,660 588,117 567,691 Less: Accumulated depreciation (409,248) (378,639) Property and Equipment, net $ 178,869 $ 189,052 |
Schedule of Accrued Liabilities | Accrued Liabilities on the accompanying Consolidated Balance Sheets consist of: 2021 2020 Accrued employee compensation $ 107,933 $ 95,656 Accrued employee benefits and other personnel 13,951 18,770 Accrued consulting, outsourcing and professional fees 36,411 31,907 Accrued sub-advisory, distribution and other asset management fees 58,661 49,924 Accrued dividend payable 55,452 53,127 Other accrued liabilities 51,974 50,461 Accrued liabilities $ 324,382 $ 299,845 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Certain Financial Assets and Liabilities | The fair value of certain financial assets and liabilities of the Company was determined using the following inputs: Fair Value Measurements at Reporting Date Using December 31, 2021 Quoted Prices in Significant Assets Equity securities $ 12,406 $ 12,406 $ — Available-for-sale debt securities 117,135 — 117,135 Fixed-income securities owned 28,267 — 28,267 Investment funds sponsored by LSV (1) 6,916 $ 164,724 $ 12,406 $ 145,402 Fair Value Measurements at Reporting Date Using December 31, 2020 Quoted Prices in Significant Assets Equity securities $ 12,142 $ 12,142 $ — Available-for-sale debt securities 93,277 — 93,277 Fixed-income securities owned 34,064 — 34,064 Investment funds sponsored by LSV (1) 6,166 $ 145,649 $ 12,142 $ 127,341 (1) The fair value amounts presented in the tables above are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the accompanying Consolidated Balance Sheets (See Note 5). |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Marketable Securities [Abstract] | |
Schedule of Available For Sale and Equity Securities | Available For Sale and Equity Securities on the accompanying Consolidated Balance Sheets consist of: At December 31, 2021 Cost Gross Gross Fair Available for sale debt securities $ 117,215 $ — $ (80) $ 117,135 SEI-sponsored mutual funds 6,748 463 — 7,211 Equities and other mutual funds 4,935 260 — 5,195 $ 128,898 $ 723 $ (80) $ 129,541 At December 31, 2020 Cost Gross Gross Fair Available for sale debt securities $ 91,262 $ 2,015 $ — $ 93,277 SEI-sponsored mutual funds 6,866 382 — 7,248 Equities and other mutual funds 4,421 473 — 4,894 $ 102,549 $ 2,870 $ — $ 105,419 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Assumptions Used in the Weighted Average Fair Value of the Stock Options Granted | The weighted average fair value of the Company’s stock options granted during 2021, 2020 and 2019 were $14.94, $13.53 and $13.94, respectively, using the following assumptions: 2021 2020 2019 Expected term (in years) 5.60 5.79 5.53 Expected volatility 28.67 % 29.02 % 23.36 % Expected dividend yield 1.30 % 1.29 % 1.10 % Risk-free interest rate 1.37 % 0.62 % 1.80 % |
Schedule of Stock-based Compensation Expense | The Company recognized stock-based compensation expense in its Consolidated Financial Statements in 2021, 2020 and 2019 as follows: 2021 2020 2019 Stock-based compensation expense $ 41,451 $ 27,014 $ 24,582 Less: Deferred tax benefit (8,444) (5,182) (4,814) Stock-based compensation expense, net of tax $ 33,007 $ 21,832 $ 19,768 |
Schedule of Stock Option Plans | This table presents certain information relating to the Company’s stock option plans for 2021, 2020 and 2019: Number of Weighted Balance as of December 31, 2018 15,813,000 $ 41.84 Granted 2,480,000 64.04 Exercised (2,243,000) 25.27 Expired or canceled (344,000) 55.07 Balance as of December 31, 2019 15,706,000 $ 47.43 Granted 4,529,000 56.54 Exercised (1,563,000) 28.83 Expired or canceled (177,000) 55.76 Balance as of December 31, 2020 18,495,000 $ 51.15 Granted 3,323,000 60.48 Exercised (1,719,000) 29.73 Expired or canceled (1,015,000) 57.92 Balance as of December 31, 2021 19,084,000 $ 54.35 Exercisable as of December 31, 2021 8,638,000 $ 48.73 Available for future grant as of December 31, 2021 12,978,000 |
Schedule of Common Stock Buyback | The following table provides the total number of shares repurchased and the related total costs in 2021, 2020 and 2019: Year Total Number of Total Cost 2021 6,747,000 $ 411,534 2020 8,008,000 424,702 2019 6,225,000 348,348 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax | Components of Accumulated other comprehensive income (loss), net of tax, consisted of: Foreign Currency Translation Adjustments Unrealized Accumulated Balance, January 1, 2019 $ (31,587) $ (1,413) $ (33,000) Other comprehensive income before reclassifications 7,618 1,486 9,104 Amounts reclassified from accumulated other comprehensive loss — 392 392 Net current-period other comprehensive loss 7,618 1,878 9,496 Balance, December 31, 2019 $ (23,969) $ 465 $ (23,504) Other comprehensive income before reclassifications 5,620 374 5,994 Amounts reclassified from accumulated other comprehensive loss — 712 712 Net current-period other comprehensive income 5,620 1,086 6,706 Balance, December 31, 2020 $ (18,349) $ 1,551 $ (16,798) Other comprehensive loss before reclassifications (1,432) (2,527) (3,959) Amounts reclassified from accumulated other comprehensive loss — 914 914 Net current-period other comprehensive loss (1,432) (1,613) (3,045) Balance, December 31, 2021 $ (19,781) $ (62) $ (19,843) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Aggregate Noncancelable Minimum Commitments | The aggregate noncancellable minimum commitments at December 31, 2021 are: Year Aggregate Noncancellable Minimum Commitments 2022 $ 11,799 2023 9,628 2024 7,778 2025 5,483 2026 and thereafter 6,197 $ 40,885 The Company's future minimum lease payments under non-cancelable leases as of December 31, 2021 are as follows: Year Future Minimum Lease Payment 2022 $ 11,799 2023 9,628 2024 7,778 2025 5,483 2026 4,124 Thereafter 2,073 Total future minimum lease payments 40,885 Less: Imputed interest (1,918) Total $ 38,967 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Federal and State and Foreign Income Tax Provision | The federal and state and foreign income tax provision is summarized as follows: Year Ended December 31, 2021 2020 2019 Current Federal $ 120,939 $ 92,649 $ 100,986 State 24,492 21,479 19,902 Foreign 9,480 8,256 11,722 154,911 122,384 132,610 Deferred Federal (7,106) (701) (1,635) State (735) (275) (960) Foreign 10 — — (7,831) (976) (2,595) Total income taxes $ 147,080 $ 121,408 $ 130,015 |
Schedule of Components of Net Income Before Income Taxes | The components of Income before income taxes are summarized as follows: Year Ended December 31, 2021 2020 2019 Domestic $ 641,403 $ 517,451 $ 565,842 Foreign 52,270 51,243 65,599 $ 693,673 $ 568,694 $ 631,441 |
Schedule of Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate | The effective income tax rate differs from the federal income tax statutory rate due to the following: Year Ended December 31, 2021 2020 2019 Statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal tax benefit 2.6 3.0 2.4 Foreign tax expense and tax rate differential (0.1) (0.4) — Tax benefit from stock option exercises (1.2) (1.1) (1.9) Research and development tax credit (1.0) (1.0) (1.1) Foreign-Derived Intangible Income Deduction (FDII) (0.2) (0.3) (0.2) Other, net 0.1 0.1 0.4 21.2 % 21.3 % 20.6 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities at December 31, 2021 and 2020 are as follows: 2021 2020 Deferred Tax Assets: Stock-based compensation expense $ 32,087 $ 26,893 Federal net operating loss carryforward 7,280 — State net operating loss carryforward 58,927 65,114 Foreign net operating loss carryforward and other 6,402 6,634 Basis differences in investments 2,590 3,965 Federal benefit of state tax deduction for uncertain tax positions 1,842 2,255 Revenue and expense recognized in different periods for financial reporting and income tax purposes 1,484 3,025 Other assets 2,656 1,584 Total deferred income tax assets 113,268 109,470 Less: Federal net operating loss valuation allowance (1,453) — Less: State net operating loss valuation allowance (56,004) (62,229) Less: Foreign net operating loss valuation allowance (6,342) (6,547) Net deferred income tax assets $ 49,469 $ 40,694 Deferred Tax Liabilities: Capitalized software currently deductible for tax purposes, net of amortization $ (57,123) $ (63,588) Difference in financial reporting and income tax depreciation methods (9,592) (11,422) Difference between book and tax basis of other assets (7,179) (5,747) Goodwill and other intangibles (11,690) (2,462) Foreign dividend withholding tax — — Capitalized contract costs (8,347) (7,762) Other liabilities (1,431) (1,900) Total deferred income tax liabilities $ (95,362) $ (92,881) Net deferred income tax liabilities $ (45,893) $ (52,187) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: 2021 2020 2019 Balance as of January 1 $ 15,911 $ 15,356 $ 14,367 Tax positions related to current year: Gross additions 3,672 3,352 3,054 Tax positions related to prior years: Gross additions 382 236 1,465 Settlements (678) — (145) Lapses on statute of limitations (4,401) (3,033) (3,385) Balance as of December 31 $ 14,886 $ 15,911 $ 15,356 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information about Business Segments | The following tables highlight certain financial information about each of the Company’s business segments for the years ended December 31, 2021, 2020 and 2019: Private Banks Investment Institutional Investment Investments Total For the Year Ended December 31, 2021 Revenues $ 493,570 $ 482,949 $ 343,805 $ 581,157 $ 16,828 $ 1,918,309 Expenses 462,796 240,334 168,070 348,655 53,219 1,273,074 Operating profit (loss) $ 30,774 $ 242,615 $ 175,735 $ 232,502 $ (36,391) $ 645,235 Private Investment Institutional Investment Investments Total For the Year Ended December 31, 2020 Revenues $ 455,393 $ 407,564 $ 317,627 $ 489,462 $ 14,012 $ 1,684,058 Expenses 446,481 205,913 149,909 308,999 52,871 1,164,173 Operating profit (loss) $ 8,912 $ 201,651 $ 167,718 $ 180,463 $ (38,859) $ 519,885 Private Investment Institutional Investment Investments Total For the Year Ended December 31, 2019 Revenues $ 470,276 $ 403,778 $ 322,062 $ 440,796 $ 12,973 $ 1,649,885 Expenses 443,136 208,508 153,937 282,024 29,660 1,117,265 Operating profit (loss) $ 27,140 $ 195,270 $ 168,125 $ 158,772 $ (16,687) $ 532,620 |
Schedule of Reconciliation of Total Operating Profit Reported for Business Segments to Income from Operations in Consolidated Statements of Operations | A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019 is as follows: Year Ended December 31, 2021 2020 2019 Total operating profit from segments above $ 645,235 $ 519,885 $ 532,620 Corporate overhead expenses (91,854) (73,998) (72,196) Income from operations $ 553,381 $ 445,887 $ 460,424 |
Schedule of Additional Information Pertaining to Business Segments | The following tables provide additional information for the years ended December 31, 2021, 2020 and 2019 pertaining to our business segments: Capital Expenditures (1) Depreciation Year Ended December 31, 2021 2020 2019 2021 2020 2019 Private Banks $ 26,472 $ 29,061 $ 33,068 $ 19,040 $ 16,206 $ 14,349 Investment Advisors 11,100 15,588 17,413 3,646 4,821 4,653 Institutional Investors 2,614 3,958 4,057 1,241 1,214 1,600 Investment Managers 10,275 25,909 18,970 8,185 7,336 7,145 Investments in New Businesses 924 1,211 1,349 351 341 383 Total from business segments $ 51,385 $ 75,727 $ 74,857 $ 32,463 $ 29,918 $ 28,130 Corporate Overhead 1,151 2,840 2,314 1,018 1,041 1,306 $ 52,536 $ 78,567 $ 77,171 $ 33,481 $ 30,959 $ 29,436 (1) Capital expenditures include additions to property and equipment and capitalized software. Amortization Year Ended December 31, 2021 2020 2019 Private Banks $ 34,159 $ 30,240 $ 29,054 Investment Advisors 11,654 10,694 10,311 Institutional Investors 2,321 1,707 1,726 Investment Managers 9,955 9,365 9,358 Investments in New Businesses 739 739 740 Total from business segments $ 58,828 $ 52,745 $ 51,189 Corporate Overhead 324 230 230 $ 59,152 $ 52,975 $ 51,419 |
Schedule of Revenues and Assets Based on Location | The following table presents revenues based on the location of the use of the products or services: For the Year Ended December 31, 2021 2020 2019 United States $ 1,629,527 $ 1,427,152 $ 1,385,744 International operations 288,782 256,906 264,141 $ 1,918,309 $ 1,684,058 $ 1,649,885 The following table presents assets based on their location: 2021 2020 United States $ 1,926,867 $ 1,772,179 International operations 427,835 395,077 $ 2,354,702 $ 2,167,256 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price allocation related to the Finomial acquisition is as follows: Estimated Fair Value Estimated Useful Life Current assets, net of current liabilities $ 214 Property and equipment, net 38 Goodwill 3,825 Identifiable intangible assets: Acquired technology 3,010 10 years Client relationships 1,030 2 years Trade names 100 5 years Net cash consideration $ 8,217 The purchase price allocation related to the Novus acquisition is as follows: Estimated Fair Value Estimated Useful Life Property and equipment, net $ 220 Other assets 6,236 Goodwill 48,911 Identifiable intangible assets: Acquired technology 20,260 7 years Client relationships 6,240 2 years Trade names 1,430 20 years Current liabilities, net of current assets (4,463) Long-term liabilities (6,338) Net cash consideration $ 72,496 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of the Company's goodwill by segment are as follows: Institutional Investors Investment Managers Investments in New Businesses Total Balance, December 31, 2020 $ — $ 52,990 $ 11,499 $ 64,489 Acquisition of Finomial — 3,825 — 3,825 Acquisition of Novus 48,911 — — 48,911 Foreign currency translation adjustments — 7 — 7 Balance, December 31, 2021 $ 48,911 $ 56,822 $ 11,499 $ 117,232 |
Schedule of Intangible Assets | The Company's intangible assets consist of: 2021 Weighted Average Estimated Useful Life 2020 Weighted Average Estimated Useful Life Acquired technology $ 47,780 8.5 years $ 13,510 10.0 years Client relationships 30,878 8.3 years 16,940 13.9 years Non-competition agreements 3,470 5.0 years 3,470 5.0 years Trade name 4,370 14.1 years 2,840 7.0 years 86,498 36,760 Less: Accumulated amortization (17,716) (12,456) Intangible assets, net $ 68,782 $ 24,304 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The Company currently expects to recognize amortization expense related to intangible assets as of December 31, 2021 each year from 2022 through 2026 as follows: Year Expected Amortization Expense Related to Intangible Assets 2022 $ 12,278 2023 11,585 2024 8,125 2025 7,906 2026 7,799 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables provide additional information pertaining to our revenues disaggregated by major product line and primary geographic market based on the location of the use of the products or services for each of the Company’s business segments for 2021, 2020 and 2019: Private Banks Investment Institutional Investment Investments Total Major Product Lines: For the Year Ended December 31, 2021 Investment management fees from pooled investment products $ 134,617 $ 301,581 $ 57,716 $ 134 $ 1,330 $ 495,378 Investment management fees from investment management agreements 2,271 158,181 282,797 — 14,838 458,087 Investment operations fees 1,512 — — 538,446 — 539,958 Investment processing fees - PaaS 215,473 — — — — 215,473 Investment processing fees - SaaS 113,964 — 1,207 13,792 — 128,963 Professional services fees 22,054 — — 3,508 — 25,562 Account fees and other 3,679 23,187 2,085 25,277 660 54,888 Total revenues $ 493,570 $ 482,949 $ 343,805 $ 581,157 $ 16,828 $ 1,918,309 Primary Geographic Markets: United States $ 315,040 $ 482,949 $ 274,867 $ 539,843 $ 16,828 $ 1,629,527 United Kingdom 111,900 — 53,888 — — 165,788 Canada 48,325 — 4,396 — — 52,721 Ireland 18,305 — 10,151 41,314 — 69,770 Other — — 503 — — 503 Total revenues $ 493,570 $ 482,949 $ 343,805 $ 581,157 $ 16,828 $ 1,918,309 Private Investment Institutional Investment Investments Total Major Product Lines: For the Year Ended December 31, 2020 Investment management fees from pooled investment products $ 127,883 $ 271,627 $ 53,283 $ 637 $ 1,411 $ 454,841 Investment management fees from investment management agreements 1,470 115,887 262,709 — 12,105 392,171 Investment operations fees 1,804 — — 447,517 — 449,321 Investment processing fees - PaaS 184,711 — — — — 184,711 Investment processing fees - SaaS 113,012 — — 13,739 — 126,751 Professional services fees 21,594 — — 5,753 — 27,347 Account fees and other 4,919 20,050 1,635 21,816 496 48,916 Total revenues $ 455,393 $ 407,564 $ 317,627 $ 489,462 $ 14,012 $ 1,684,058 Primary Geographic Markets: United States $ 298,708 $ 407,564 $ 250,321 $ 456,547 $ 14,012 $ 1,427,152 United Kingdom 97,896 — 51,292 — — 149,188 Canada 41,762 — 5,610 — — 47,372 Ireland 17,027 — 9,850 32,915 — 59,792 Other — — 554 — — 554 Total revenues $ 455,393 $ 407,564 $ 317,627 $ 489,462 $ 14,012 $ 1,684,058 Private Investment Institutional Investment Investments Total Major Product Lines: For the Year Ended December 31, 2019 Investment management fees from pooled investment products $ 135,503 $ 282,253 $ 54,726 $ 766 $ 1,293 $ 474,541 Investment management fees from investment management agreements 1,616 103,428 266,323 — 11,571 382,938 Investment operations fees 1,634 — — 403,208 — 404,842 Investment processing fees - PaaS 177,046 — — — — 177,046 Investment processing fees - SaaS 132,661 — — 11,036 — 143,697 Professional services fees 15,687 — — 5,209 — 20,896 Account fees and other 6,129 18,097 1,013 20,577 109 45,925 Total revenues $ 470,276 $ 403,778 $ 322,062 $ 440,796 $ 12,973 $ 1,649,885 Primary Geographic Markets: United States $ 304,860 $ 403,778 $ 252,149 $ 411,984 $ 12,973 $ 1,385,744 United Kingdom 102,518 — 52,584 — — 155,102 Canada 43,661 — 6,889 — — 50,550 Ireland 19,237 — 9,588 28,812 — 57,637 Other — — 852 — — 852 Total revenues $ 470,276 $ 403,778 $ 322,062 $ 440,796 $ 12,973 $ 1,649,885 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Aggregate Noncancelable Minimum Commitments | The aggregate noncancellable minimum commitments at December 31, 2021 are: Year Aggregate Noncancellable Minimum Commitments 2022 $ 11,799 2023 9,628 2024 7,778 2025 5,483 2026 and thereafter 6,197 $ 40,885 The Company's future minimum lease payments under non-cancelable leases as of December 31, 2021 are as follows: Year Future Minimum Lease Payment 2022 $ 11,799 2023 9,628 2024 7,778 2025 5,483 2026 4,124 Thereafter 2,073 Total future minimum lease payments 40,885 Less: Imputed interest (1,918) Total $ 38,967 |
Schedule of Supplemental Consolidated Balance Sheet Information Related to Operating Leases | The following table provides supplemental Consolidated Balance Sheet information related to the Company's leases: 2021 2020 Current portion of long-term operating lease liabilities $ 11,328 $ 8,579 Long-term operating lease liabilities 27,639 34,058 Total operating lease liabilities $ 38,967 $ 42,637 Weighted average remaining lease term 4.6 years 5.5 years Weighted average discount rate 2.26 % 2.43 % |
Schedule of Supplemental Cash Flow Information Related to Operating Leases | The following table provides supplemental cash flow information related to the Company's leases: Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities $ 10,132 $ 10,361 $ 10,932 Right-of-use assets obtained in exchange for lease obligations $ 3,778 $ 3,272 $ 6,372 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 831,407,000 | $ 784,626,000 | |
Restricted cash | 351,000 | 3,101,000 | |
Impairment charges related to marketable securities | 0 | 0 | $ 0 |
Capitalized software development costs | 26,037,000 | 24,119,000 | 34,074,000 |
Net book value of capitalized software | 243,446,000 | 270,977,000 | |
Impairment charges related to capitalized software development costs | 0 | 0 | 0 |
Goodwill and intangible assets impairment | $ 0 | $ 0 | $ 0 |
Anti-dilutive employee stock options (in shares) | 11,755 | 9,220 | 6,574 |
Anti-dilutive employee stock options, average exercise price per share | $ 58.43 | $ 58.12 | $ 55.95 |
SEI Wealth Platform | |||
Summary of Significant Accounting Policies [Line Items] | |||
Capitalized software development costs | $ 25,938,000 | $ 22,257,000 | $ 33,084,000 |
Net book value of capitalized software | 235,878,000 | ||
Capitalized software development costs in progress | 29,253,000 | ||
Amortization expense related to the SEI Wealth Platform | $ 47,769,000 | 43,853,000 | 42,297,000 |
Weighted Average | SEI Wealth Platform | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life of the SEI Wealth Platform | 10 years 1 month 6 days | ||
Building and Building Improvements | Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 25 years | ||
Building and Building Improvements | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 39 years | ||
Computer Equipment | Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 3 years | ||
Computer Equipment | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 5 years | ||
SEI Sponsored Open Ended Money Market Mutual Funds | |||
Summary of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 290,256,000 | 347,082,000 | |
SEI Investments Europe Limited | |||
Summary of Significant Accounting Policies [Line Items] | |||
Restricted cash | 250,000 | 250,000 | |
SEI Investments Distribution Co | |||
Summary of Significant Accounting Policies [Line Items] | |||
Restricted cash | 101,000 | 101,000 | |
SEI Sponsored Open Ended Money Market Mutual Funds | |||
Summary of Significant Accounting Policies [Line Items] | |||
Fees waived according to expense limitation agreements | $ 45,129,000 | $ 33,408,000 | $ 27,544,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Expected Amortization Expenses) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Expected Amortization Expense Related to Capitalized Software | |
2022 | $ 12,278 |
2023 | 11,585 |
2024 | 8,125 |
2025 | 7,906 |
2026 | 7,799 |
Software development | |
Expected Amortization Expense Related to Capitalized Software | |
2022 | 39,084 |
2023 | 20,301 |
2024 | 20,301 |
2025 | 20,301 |
2026 | $ 19,294 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Calculation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income | $ 546,593 | $ 447,286 | $ 501,426 |
Shares used to compute basic earnings per common share (in shares) | 141,216 | 146,709 | 151,540 |
Dilutive effect of stock options (in shares) | 2,096 | 2,294 | 3,361 |
Shares used to compute diluted earnings per common share (in shares) | 143,312 | 149,003 | 154,901 |
Basic earnings per common share (in USD per share) | $ 3.87 | $ 3.05 | $ 3.31 |
Diluted earnings per common share (in USD per share) | $ 3.81 | $ 3 | $ 3.24 |
Investment in Unconsolidated _3
Investment in Unconsolidated Affiliates (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 01, 2021 | Mar. 31, 2021 | |
Investments in and Advances to Affiliates [Line Items] | |||||
Company's share in the earnings of LSV | $ 137,572 | $ 117,134 | $ 151,891 | ||
Distributions received from LSV | 131,170 | 125,534 | 148,936 | ||
LSV Asset Management | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Ownership interest in LSV | 38.70% | 38.80% | |||
Total investment in LSV | 107,918 | ||||
Company's share in the earnings of LSV | 137,572 | 117,134 | 151,891 | ||
Distributions received from LSV | $ 131,170 | $ 125,534 | $ 148,936 |
Investment in Unconsolidated _4
Investment in Unconsolidated Affiliates (Condensed Statements of Operations of LSV) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenues | $ 1,918,309 | $ 1,684,058 | $ 1,649,885 |
LSV Asset Management | Equity Method Investment, Nonconsolidated Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 456,259 | 391,648 | 491,700 |
Net income | $ 354,964 | $ 301,620 | $ 390,533 |
Investment in Unconsolidated _5
Investment in Unconsolidated Affiliates (Condensed Balance Sheets of LSV) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 1,404,229 | $ 1,300,977 |
Total Assets | 2,354,702 | 2,167,256 |
Current liabilities | 355,743 | 317,275 |
Total Liabilities and Equity | 2,354,702 | 2,167,256 |
LSV Asset Management | Equity Method Investment, Nonconsolidated Investee | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 171,058 | 151,515 |
Non-current assets | 4,792 | 4,296 |
Total Assets | 175,850 | 155,811 |
Current liabilities | 82,858 | 77,077 |
Non-current liabilities | 3,863 | 4,620 |
Partners’ capital | 89,129 | 74,114 |
Total Liabilities and Equity | $ 175,850 | $ 155,811 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions (Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Trade receivables | $ 111,209 | $ 99,106 |
Fees earned, not billed | 315,255 | 262,167 |
Other receivables | 16,747 | 25,046 |
Gross receivables | 443,211 | 386,319 |
Less: Allowance for doubtful accounts | (1,602) | (1,100) |
Receivables, net | $ 441,609 | $ 385,219 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Captions (Property And Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | $ 588,117 | $ 567,691 | |
Less: Accumulated depreciation | (409,248) | (378,639) | |
Property and Equipment, net | 178,869 | 189,052 | |
Depreciation expense | 33,481 | 30,959 | $ 29,436 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 209,766 | 206,151 | |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 153,158 | 141,820 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 24,651 | 24,179 | |
Purchased software | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 156,387 | 147,838 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 21,254 | 21,439 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | 21,946 | 21,604 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and Equipment, gross | $ 955 | $ 4,660 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Captions Composition of Certain Financial Statement Captions (Deferred Contract Costs) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capitalized Contract Cost [Line Items] | |||
Deferred contract costs | $ 36,236,000 | $ 33,781,000 | |
Capitalized contract cost, amount capitalized during period | 11,201,000 | 10,284,000 | $ 11,495,000 |
Amortization of deferred contract costs | 8,746,000 | 7,494,000 | 4,511,000 |
Capitalized contract cost impairment | $ 0 | $ 0 | $ 0 |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Deferred contract acquisition costs, amortization period | 6 years | ||
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Deferred contract acquisition costs, amortization period | 15 years |
Composition of Certain Financ_6
Composition of Certain Financial Statement Captions (Other Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Amortization expense for certain other assets | $ 324 | $ 230 | $ 230 |
Composition of Certain Financ_7
Composition of Certain Financial Statement Captions (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued employee compensation | $ 107,933 | $ 95,656 |
Accrued employee benefits and other personnel | 13,951 | 18,770 |
Accrued consulting, outsourcing and professional fees | 36,411 | 31,907 |
Accrued sub-advisory, distribution and other asset management fees | 58,661 | 49,924 |
Accrued dividend payable | 55,452 | 53,127 |
Other accrued liabilities | 51,974 | 50,461 |
Accrued liabilities | $ 324,382 | $ 299,845 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed-income securities owned | $ 28,267 | $ 34,064 |
Assets, fair value | 164,724 | 145,649 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed-income securities owned | 0 | 0 |
Assets, fair value | 12,406 | 12,142 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed-income securities owned | 28,267 | 34,064 |
Assets, fair value | 145,402 | 127,341 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt and equity securities | 12,406 | 12,142 |
Equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt and equity securities | 12,406 | 12,142 |
Equity securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt and equity securities | 0 | 0 |
Available-for-sale debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt and equity securities | 117,135 | 93,277 |
Available-for-sale debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt and equity securities | 0 | 0 |
Available-for-sale debt securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt and equity securities | 117,135 | 93,277 |
Investment Funds Sponsored by LSV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment funds sponsored by LSV | $ 6,916 | $ 6,166 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investments [Line Items] | |||
Cash equivalents fair value | $ 422,838 | $ 462,624 | |
Net unrealized holding gain (loss) | (62) | 1,551 | |
Net unrealized holding gains (losses), income tax expense (benefit) | (18) | 464 | |
Equity securities, gross realized gains | 741 | 1,100 | $ 297 |
Equity securities, gross realized losses | 72 | 250 | 48 |
Investment funds sponsored by LSV | 107,918 | 98,433 | |
Securities owned | 28,267 | 34,064 | |
Available for sale debt securities | |||
Schedule of Investments [Line Items] | |||
Available-for-sale securities, gross realized losses | 1,160 | 902 | 493 |
Available-for-sale securities, gross realized gains | 0 | 0 | |
Investment funds sponsored by LSV | |||
Schedule of Investments [Line Items] | |||
Investment funds sponsored by LSV | 6,916 | 6,166 | |
Gains (losses) from the change in fair value of the funds | $ 750 | $ 178 | $ 1,101 |
Marketable Securities (Investme
Marketable Securities (Investments Available For Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Available For Sale and Equity Securities, Cost | $ 128,898 | $ 102,549 |
Available For Sale and Equity Securities, Gross Unrealized Gains | 723 | 2,870 |
Available For Sale and Equity Securities, Gross Unrealized (Losses) | (80) | 0 |
Available For Sale and Equity Securities, Fair Value | 129,541 | 105,419 |
Available for sale debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale debt securities, Cost | 117,215 | 91,262 |
Available for sale debt securities, Gross Unrealized Gains | 0 | 2,015 |
Available for sale debt securities, Gross Unrealized (Losses) | (80) | 0 |
Available for sale debt securities, Fair Value | 117,135 | 93,277 |
SEI-sponsored mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, FV-NI, Cost | 6,748 | 6,866 |
Equity securities, FV-NI, Gross Unrealized Gains | 463 | 382 |
Equity securities, FV-NI, Gross Unrealized (Losses) | 0 | 0 |
Equity securities, FV-NI, Fair Value | 7,211 | 7,248 |
Equities and other mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, FV-NI, Cost | 4,935 | 4,421 |
Equity securities, FV-NI, Gross Unrealized Gains | 260 | 473 |
Equity securities, FV-NI, Gross Unrealized (Losses) | 0 | 0 |
Equity securities, FV-NI, Fair Value | $ 5,195 | $ 4,894 |
Line of Credit (Details)
Line of Credit (Details) | Apr. 23, 2021USD ($)fiscalQuarter | Feb. 22, 2022USD ($) | Nov. 30, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 17, 2022USD ($) |
Line of Credit Facility [Line Items] | |||||||
Credit facility amount outstanding | $ 40,000,000 | $ 0 | |||||
2021 Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt interest rate accrual term, number of preceding fiscal quarters | fiscalQuarter | 4 | ||||||
Credit facility principal payment | 0 | ||||||
Letters of credit outstanding amount | 5,808,000 | ||||||
Line of Credit | 2021 Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, term | 5 years | ||||||
Credit facility maximum borrowing capacity | $ 325,000,000 | ||||||
Credit facility stated percentage | 0.00% | ||||||
Credit facility accordion feature, increase limit | $ 100,000,000 | ||||||
Credit facility borrowings | $ 40,000,000 | ||||||
Credit facility amount outstanding | 40,000,000 | ||||||
Credit facility commitment fees | $ 563,000 | $ 609,000 | $ 630,000 | ||||
Weighted average interest rate | 1.40% | ||||||
Line of Credit | 2021 Credit Facility | Subsequent Event | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility principal payment | $ 10,000,000 | ||||||
Credit facility remaining borrowing capacity | $ 289,192,000 | ||||||
Line of Credit | London Interbank Offered Rate (LIBOR) | 2021 Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility variable interest rate basis spread (as a percent) | 1.00% | ||||||
Line of Credit | Federal Funds Rate | 2021 Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility variable interest rate basis spread (as a percent) | 0.50% | ||||||
Line of Credit | Minimum | 2021 Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility commitment fee per annum on daily unused portion (as a percent) | 0.15% | ||||||
Line of Credit | Minimum | Base Rate | 2021 Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility variable interest rate basis spread (as a percent) | 0.25% | ||||||
Line of Credit | Minimum | London Interbank Offered Rate (LIBOR) | 2021 Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility variable interest rate basis spread (as a percent) | 1.25% | ||||||
Line of Credit | Maximum | 2021 Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility commitment fee per annum on daily unused portion (as a percent) | 0.30% | ||||||
Line of Credit | Maximum | Base Rate | 2021 Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility variable interest rate basis spread (as a percent) | 1.00% | ||||||
Line of Credit | Maximum | London Interbank Offered Rate (LIBOR) | 2021 Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility variable interest rate basis spread (as a percent) | 2.00% | ||||||
Letter of Credit | 2021 Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 15,000,000 | ||||||
Credit facility, commitment fee percentage | 1.25% | ||||||
Credit facility, fronting fee percentage | 0.20% | ||||||
Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 300,000,000 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) | Jun. 02, 2021 | Dec. 08, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 10, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average fair value of stock options granted (in USD per share) | $ 14.94 | $ 13.53 | $ 13.94 | |||
Increase (decrease) in stock-based compensation from change in management's estimate | $ 5,880,000 | $ (2,659,000) | $ 2,903,000 | |||
Unvested employee stock options outstanding (in shares) | 10,446,000 | |||||
Unrecognized compensation cost from employee stock options | $ 104,770,000 | |||||
Weighted average period for recognition of unrecognized compensation cost | 1 year 10 months 24 days | |||||
Total options that were exercisable (in shares) | 8,638,000 | 6,641,000 | ||||
Options outstanding weighted average remaining contractual life, years | 6 years 9 months 18 days | |||||
Total intrinsic value of options exercised | $ 55,029,000 | $ 46,426,000 | ||||
Aggregate intrinsic value of options exercisable | 117,496,000 | |||||
Total intrinsic value of options outstanding | $ 149,989,000 | |||||
Share price of SEI common stock (in USD per share) | $ 60.94 | |||||
Dividends declared per common share (in USD per share) | $ 0.37 | $ 0.40 | $ 0.77 | $ 0.72 | $ 0.68 | |
Dividends declared | $ 107,840,000 | $ 104,588,000 | $ 102,435,000 | |||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award waiting period | 2 years | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award waiting period | 4 years | |||||
Common Stock Buyback | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Increase in the stock repurchase program | $ 200,000,000 | |||||
Remaining stock repurchase authorization amount | $ 231,293,000 | |||||
2014 Equity Compensation Plan | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rate | 50.00% | |||||
2014 Equity Compensation Plan | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rate | 50.00% | |||||
Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee stock purchase plan, employee eligible percentage on offerings of common stock | 85.00% | |||||
Shares reserved under the plan | 15,652,000 | |||||
Issuance of common stock under the employee stock purchase plan, shares | 12,307,000 | |||||
Employee stock purchase plan | $ 0 | $ 0 | $ 0 |
Shareholders' Equity (Assumptio
Shareholders' Equity (Assumptions Used In The Weighted Average Fair Value Of Stock Options Granted) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Expected term (in years) | 5 years 7 months 6 days | 5 years 9 months 14 days | 5 years 6 months 10 days |
Expected volatility | 28.67% | 29.02% | 23.36% |
Expected dividend yield | 1.30% | 1.29% | 1.10% |
Risk-free interest rate | 1.37% | 0.62% | 1.80% |
Shareholders' Equity (Stock-Bas
Shareholders' Equity (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Stock-based compensation expense | $ 41,451 | $ 27,014 | $ 24,582 |
Less: Deferred tax benefit | (8,444) | (5,182) | (4,814) |
Stock-based compensation expense, net of tax | $ 33,007 | $ 21,832 | $ 19,768 |
Shareholders' Equity (Stock Opt
Shareholders' Equity (Stock Option Plans) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Beginning balance (in shares) | 18,495 | 15,706 | 15,813 |
Granted (in shares) | 3,323 | 4,529 | 2,480 |
Exercised (in shares) | (1,719) | (1,563) | (2,243) |
Expired or canceled (in shares) | (1,015) | (177) | (344) |
Ending balance (in shares) | 19,084 | 18,495 | 15,706 |
Weighted Average Price | |||
Beginning balance (in USD per share) | $ 51.15 | $ 47.43 | $ 41.84 |
Granted (in USD per share) | 60.48 | 56.54 | 64.04 |
Exercised (in USD per share) | 29.73 | 28.83 | 25.27 |
Expired or canceled (in USD per share) | 57.92 | 55.76 | 55.07 |
Ending balance (in USD per share) | $ 54.35 | $ 51.15 | $ 47.43 |
Total options that were exercisable (in shares) | 8,638 | 6,641 | |
Exercisable shares, weighted avg. price (in USD per share) | $ 48.73 | ||
Available for future grant as of December 31, 2018 (in shares) | 12,978 |
Shareholders' Equity (Common St
Shareholders' Equity (Common Stock Buyback) (Details) - Common Stock Buyback - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Repurchased | 6,747 | 8,008 | 6,225 |
Total Cost | $ 411,534 | $ 424,702 | $ 348,348 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,739,907 | $ 1,738,778 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other comprehensive income (loss) before reclassifications | (3,959) | 5,994 | $ 9,104 |
Amounts reclassified from accumulated other comprehensive loss | 914 | 712 | 392 |
Total other comprehensive (loss) income, net of taxes | (3,045) | 6,706 | 9,496 |
Ending balance | 1,860,763 | 1,739,907 | 1,738,778 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (18,349) | (23,969) | (31,587) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other comprehensive income (loss) before reclassifications | (1,432) | 5,620 | 7,618 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Total other comprehensive (loss) income, net of taxes | (1,432) | 5,620 | 7,618 |
Ending balance | (19,781) | (18,349) | (23,969) |
Unrealized Holding Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 1,551 | 465 | (1,413) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Other comprehensive income (loss) before reclassifications | (2,527) | 374 | 1,486 |
Amounts reclassified from accumulated other comprehensive loss | 914 | 712 | 392 |
Total other comprehensive (loss) income, net of taxes | (1,613) | 1,086 | 1,878 |
Ending balance | (62) | 1,551 | 465 |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (16,798) | (23,504) | (33,000) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
Total other comprehensive (loss) income, net of taxes | (3,045) | 6,706 | 9,496 |
Ending balance | $ (19,843) | $ (16,798) | $ (23,504) |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan, cost recognized | $ 14,777 | $ 14,087 | $ 12,923 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Jan. 14, 2022lawsuit | Dec. 31, 2021USD ($)lawsuit | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Loss Contingencies [Line Items] | ||||
Rent expense | $ | $ 11,190 | $ 9,711 | $ 10,159 | |
Sandford Trust Company Litigation, Federal Class Actions | ||||
Loss Contingencies [Line Items] | ||||
Number of dismissed actions | 2 | |||
Stanford Trust Company Litigation, Ancillary Actions | ||||
Loss Contingencies [Line Items] | ||||
Number of actions filed | 5 | |||
Number of pending actions | 3 | |||
Stanford Trust Company Litigation, Ancillary Actions | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Number of dismissed actions | 2 | |||
Stanford Trust Company Litigation, Farr and Rolland | ||||
Loss Contingencies [Line Items] | ||||
Number of pending actions | 2 | |||
User licenses for software | ||||
Loss Contingencies [Line Items] | ||||
Rent expense | $ | $ 57,880 | $ 41,091 | $ 33,600 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule Of Noncancellable Minimum Commitments) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Aggregate Noncancellable Minimum Commitments | |
2022 | $ 11,799 |
2023 | 9,628 |
2024 | 7,778 |
2025 | 5,483 |
2026 and thereafter | 6,197 |
Total future minimum lease payments | $ 40,885 |
Income Taxes (Schedule of Feder
Income Taxes (Schedule of Federal and State and Foreign Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Federal | $ 120,939 | $ 92,649 | $ 100,986 |
State | 24,492 | 21,479 | 19,902 |
Foreign | 9,480 | 8,256 | 11,722 |
Current federal, state and foreign income tax | 154,911 | 122,384 | 132,610 |
Deferred | |||
Federal | (7,106) | (701) | (1,635) |
State | (735) | (275) | (960) |
Foreign | 10 | 0 | 0 |
Deferred income tax expense (benefit) | (7,831) | (976) | (2,595) |
Total income taxes | $ 147,080 | $ 121,408 | $ 130,015 |
Income Taxes (Components of Net
Income Taxes (Components of Net Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 641,403 | $ 517,451 | $ 565,842 |
Foreign | 52,270 | 51,243 | 65,599 |
Income before income taxes | $ 693,673 | $ 568,694 | $ 631,441 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 21.00% |
State taxes, net of federal tax benefit | 2.60% | 3.00% | 2.40% |
Foreign tax expense and tax rate differential | (0.10%) | (0.40%) | 0.00% |
Tax benefit from stock option exercises | (1.20%) | (1.10%) | (1.90%) |
Research and development tax credit | (1.00%) | (1.00%) | (1.10%) |
Foreign-Derived Intangible Income Deduction (FDII) | (0.20%) | (0.30%) | (0.20%) |
Other, net | 0.10% | 0.10% | 0.40% |
Effective income tax rate | 21.20% | 21.30% | 20.60% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Tax Assets: | ||
Stock-based compensation expense | $ 32,087 | $ 26,893 |
Federal net operating loss carryforward | 7,280 | 0 |
State net operating loss carryforward | 58,927 | 65,114 |
Foreign net operating loss carryforward and other | 6,402 | 6,634 |
Basis differences in investments | 2,590 | 3,965 |
Federal benefit of state tax deduction for uncertain tax positions | 1,842 | 2,255 |
Revenue and expense recognized in different periods for financial reporting and income tax purposes | 1,484 | 3,025 |
Other assets | 2,656 | 1,584 |
Total deferred income tax assets | 113,268 | 109,470 |
Operating Loss Carryforwards [Line Items] | ||
Net deferred income tax assets | 49,469 | 40,694 |
Deferred Tax Liabilities: | ||
Capitalized software currently deductible for tax purposes, net of amortization | (57,123) | (63,588) |
Difference in financial reporting and income tax depreciation methods | (9,592) | (11,422) |
Difference between book and tax basis of other assets | (7,179) | (5,747) |
Goodwill and other intangibles | (11,690) | (2,462) |
Foreign dividend withholding tax | 0 | 0 |
Capitalized contract costs | (8,347) | (7,762) |
Other liabilities | (1,431) | (1,900) |
Total deferred income tax liabilities | (95,362) | (92,881) |
Net deferred income tax liabilities | (45,893) | (52,187) |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Less: Net operating loss valuation allowance | (1,453) | 0 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Less: Net operating loss valuation allowance | (56,004) | (62,229) |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Less: Net operating loss valuation allowance | $ (6,342) | $ (6,547) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2021 | Nov. 29, 2021 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Unrecognized tax benefit, including interest and penalties | $ 16,224 | ||||
Unrecognized tax benefits that would affect effective tax rate | 14,382 | ||||
Amount of uncertain tax liability expected to be paid within one year | 4,253 | ||||
Amount of uncertain tax liability included in Other long-term liabilities | 11,972 | ||||
Unrecognized tax benefits related to lapse of statute of limitations, previously unrecognized | 4,782 | ||||
Liabilities for tax-related interest and penalties | 1,338 | $ 2,105 | $ 1,962 | ||
Novus Partners | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Deferred tax asset carryovers | $ 7,280 | ||||
Valuation allowance | 1,454 | ||||
Novus Partners | Federal | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Operating loss carryovers | $ 28,285 | ||||
Research And Development Tax Credit Carryforward | Novus Partners | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Tax credit carryovers | $ 1,340 | ||||
Settlement and Lapse of Statute | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Unrecognized tax benefits expected to be recognized within the next 12 months | $ 4,253 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 15,911 | $ 15,356 | $ 14,367 |
Tax positions related to current year: | |||
Gross additions | 3,672 | 3,352 | 3,054 |
Tax positions related to prior years: | |||
Gross additions | 382 | 236 | 1,465 |
Settlements | (678) | 0 | (145) |
Lapses on statute of limitations | (4,401) | (3,033) | (3,385) |
Ending balance | $ 14,886 | $ 15,911 | $ 15,356 |
Business Segment Information (S
Business Segment Information (Schedule of Financial Information about Business Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,918,309 | $ 1,684,058 | $ 1,649,885 |
Expenses | 1,273,074 | 1,164,173 | 1,117,265 |
Operating profit (loss) | 645,235 | 519,885 | 532,620 |
Private Banks | |||
Segment Reporting Information [Line Items] | |||
Revenues | 493,570 | 455,393 | 470,276 |
Expenses | 462,796 | 446,481 | 443,136 |
Operating profit (loss) | 30,774 | 8,912 | 27,140 |
Investment Advisors | |||
Segment Reporting Information [Line Items] | |||
Revenues | 482,949 | 407,564 | 403,778 |
Expenses | 240,334 | 205,913 | 208,508 |
Operating profit (loss) | 242,615 | 201,651 | 195,270 |
Institutional Investors | |||
Segment Reporting Information [Line Items] | |||
Revenues | 343,805 | 317,627 | 322,062 |
Expenses | 168,070 | 149,909 | 153,937 |
Operating profit (loss) | 175,735 | 167,718 | 168,125 |
Investment Managers | |||
Segment Reporting Information [Line Items] | |||
Revenues | 581,157 | 489,462 | 440,796 |
Expenses | 348,655 | 308,999 | 282,024 |
Operating profit (loss) | 232,502 | 180,463 | 158,772 |
Investments In New Businesses | |||
Segment Reporting Information [Line Items] | |||
Revenues | 16,828 | 14,012 | 12,973 |
Expenses | 53,219 | 52,871 | 29,660 |
Operating profit (loss) | $ (36,391) | $ (38,859) | $ (16,687) |
Business Segment Information (R
Business Segment Information (Reconciliation of Total Operating Profit Reported for Business Segments to Income from Operations in Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | |||
Total operating profit from segments above | $ 645,235 | $ 519,885 | $ 532,620 |
Corporate overhead expenses | (91,854) | (73,998) | (72,196) |
Income from operations | $ 553,381 | $ 445,887 | $ 460,424 |
Business Segment Information _2
Business Segment Information (Schedule Of Additional Information Pertaining To Business Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 52,536 | $ 78,567 | $ 77,171 |
Depreciation | 33,481 | 30,959 | 29,436 |
Amortization | 59,152 | 52,975 | 51,419 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 51,385 | 75,727 | 74,857 |
Depreciation | 32,463 | 29,918 | 28,130 |
Amortization | 58,828 | 52,745 | 51,189 |
Operating Segments | Private Banks | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 26,472 | 29,061 | 33,068 |
Depreciation | 19,040 | 16,206 | 14,349 |
Amortization | 34,159 | 30,240 | 29,054 |
Operating Segments | Investment Advisors | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 11,100 | 15,588 | 17,413 |
Depreciation | 3,646 | 4,821 | 4,653 |
Amortization | 11,654 | 10,694 | 10,311 |
Operating Segments | Institutional Investors | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 2,614 | 3,958 | 4,057 |
Depreciation | 1,241 | 1,214 | 1,600 |
Amortization | 2,321 | 1,707 | 1,726 |
Operating Segments | Investment Managers | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 10,275 | 25,909 | 18,970 |
Depreciation | 8,185 | 7,336 | 7,145 |
Amortization | 9,955 | 9,365 | 9,358 |
Operating Segments | Investments In New Businesses | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 924 | 1,211 | 1,349 |
Depreciation | 351 | 341 | 383 |
Amortization | 739 | 739 | 740 |
Corporate Overhead | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 1,151 | 2,840 | 2,314 |
Depreciation | 1,018 | 1,041 | 1,306 |
Amortization | $ 324 | $ 230 | $ 230 |
Business Segment Information _3
Business Segment Information (Schedule of Revenues And Assets Based On Location) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 1,918,309 | $ 1,684,058 | $ 1,649,885 |
Assets | 2,354,702 | 2,167,256 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,629,527 | 1,427,152 | 1,385,744 |
Assets | 1,926,867 | 1,772,179 | |
International operations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 288,782 | 256,906 | $ 264,141 |
Assets | $ 427,835 | $ 395,077 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Asset management, administration and distribution fees | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 473,161 | $ 432,806 | $ 449,725 |
Transaction-based and trade execution fees | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 1,917 | $ 2,159 | $ 632 |
Business Acquisitions (Addition
Business Acquisitions (Additional Information) (Details) - USD ($) $ in Thousands | Nov. 12, 2021 | Oct. 18, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 80,159 | $ 0 | $ 0 | ||
Payment for contingent consideration liability | 3,965 | 633 | 433 | ||
Remaining contingent consideration resulting in loss | 1,274 | 893 | |||
Finomial | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Total purchase price | $ 8,217 | ||||
Cash acquired during the acquisition | 22 | ||||
Payments to acquire business, net of cash acquired | $ 8,195 | ||||
Novus Partners | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Total purchase price | $ 72,496 | ||||
Cash acquired during the acquisition | 532 | ||||
Payments to acquire business, net of cash acquired | $ 71,964 | ||||
Escrow available | 4,244 | ||||
Huntington Steele, LLC | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Payment for contingent consideration liability | $ 3,965 | $ 633 | |||
Current portion of the contingent consideration | 918 | ||||
Long-term portion of the contingent consideration | $ 8,906 |
Business Acquisitions (Purchase
Business Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Nov. 12, 2021 | Oct. 18, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Goodwill | $ 117,232 | $ 64,489 | ||
Finomial | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Current assets, net of current liabilities | $ 214 | |||
Property and equipment, net | 38 | |||
Goodwill | 3,825 | |||
Net cash consideration | 8,217 | |||
Finomial | Acquired technology | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Identifiable intangible assets | $ 3,010 | |||
Estimated Useful Life | 10 years | |||
Finomial | Client relationships | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Identifiable intangible assets | $ 1,030 | |||
Estimated Useful Life | 2 years | |||
Finomial | Trade names | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Identifiable intangible assets | $ 100 | |||
Estimated Useful Life | 5 years | |||
Novus Partners | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Property and equipment, net | $ 220 | |||
Other assets | 6,236 | |||
Goodwill | 48,911 | |||
Current liabilities, net of current assets | (4,463) | |||
Long-term liabilities | (6,338) | |||
Net cash consideration | 72,496 | |||
Novus Partners | Acquired technology | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Identifiable intangible assets | $ 20,260 | |||
Estimated Useful Life | 7 years | |||
Novus Partners | Client relationships | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Identifiable intangible assets | $ 6,240 | |||
Estimated Useful Life | 2 years | |||
Novus Partners | Trade names | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Identifiable intangible assets | $ 1,430 | |||
Estimated Useful Life | 20 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 64,489 |
Foreign currency translation adjustments | 7 |
Ending balance | 117,232 |
Finomial | |
Goodwill [Roll Forward] | |
Business acquisition | 3,825 |
Novus Partners | |
Goodwill [Roll Forward] | |
Business acquisition | 48,911 |
Institutional Investors | |
Goodwill [Roll Forward] | |
Beginning balance | 0 |
Foreign currency translation adjustments | 0 |
Ending balance | 48,911 |
Institutional Investors | Finomial | |
Goodwill [Roll Forward] | |
Business acquisition | 0 |
Institutional Investors | Novus Partners | |
Goodwill [Roll Forward] | |
Business acquisition | 48,911 |
Investment Managers | |
Goodwill [Roll Forward] | |
Beginning balance | 52,990 |
Foreign currency translation adjustments | 7 |
Ending balance | 56,822 |
Investment Managers | Finomial | |
Goodwill [Roll Forward] | |
Business acquisition | 3,825 |
Investment Managers | Novus Partners | |
Goodwill [Roll Forward] | |
Business acquisition | 0 |
Investments In New Businesses | |
Goodwill [Roll Forward] | |
Beginning balance | 11,499 |
Foreign currency translation adjustments | 0 |
Ending balance | 11,499 |
Investments In New Businesses | Finomial | |
Goodwill [Roll Forward] | |
Business acquisition | 0 |
Investments In New Businesses | Novus Partners | |
Goodwill [Roll Forward] | |
Business acquisition | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill change during period | $ 0 | |
Amortization of intangible assets | $ 5,260,000 | $ 3,683,000 |
Finomial | ||
Goodwill [Line Items] | ||
Goodwill, acquired | 3,825,000 | |
Finomial | Investment Managers | ||
Goodwill [Line Items] | ||
Goodwill, acquired | 3,825,000 | |
Finomial | Institutional Investors | ||
Goodwill [Line Items] | ||
Goodwill, acquired | 0 | |
Novus Partners | ||
Goodwill [Line Items] | ||
Goodwill, acquired | 48,911,000 | |
Novus Partners | Investment Managers | ||
Goodwill [Line Items] | ||
Goodwill, acquired | 0 | |
Novus Partners | Institutional Investors | ||
Goodwill [Line Items] | ||
Goodwill, acquired | $ 48,911,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 86,498 | $ 36,760 |
Less: Accumulated amortization | (17,716) | (12,456) |
Intangible assets, net | 68,782 | 24,304 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 47,780 | $ 13,510 |
Weighted Average Estimated Useful Life | 8 years 6 months | 10 years |
Client relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 30,878 | $ 16,940 |
Weighted Average Estimated Useful Life | 8 years 3 months 18 days | 13 years 10 months 24 days |
Non-competition agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 3,470 | $ 3,470 |
Weighted Average Estimated Useful Life | 5 years | 5 years |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 4,370 | $ 2,840 |
Weighted Average Estimated Useful Life | 14 years 1 month 6 days | 7 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Future Amortization Expenses) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Expected Amortization Expense Related to Intangible Assets | |
2022 | $ 12,278 |
2023 | 11,585 |
2024 | 8,125 |
2025 | 7,906 |
2026 | $ 7,799 |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,918,309 | $ 1,684,058 | $ 1,649,885 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,629,527 | 1,427,152 | 1,385,744 |
United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 165,788 | 149,188 | 155,102 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 52,721 | 47,372 | 50,550 |
Ireland | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 69,770 | 59,792 | 57,637 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 503 | 554 | 852 |
Investment management fees from pooled investment products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 495,378 | 454,841 | 474,541 |
Investment management fees from investment management agreements | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 458,087 | 392,171 | 382,938 |
Investment operations fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 539,958 | 449,321 | 404,842 |
Investment processing fees - PaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 215,473 | 184,711 | 177,046 |
Investment processing fees - SaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 128,963 | 126,751 | 143,697 |
Professional services fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 25,562 | 27,347 | 20,896 |
Account fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 54,888 | 48,916 | 45,925 |
Private Banks | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 493,570 | 455,393 | 470,276 |
Private Banks | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 315,040 | 298,708 | 304,860 |
Private Banks | United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 111,900 | 97,896 | 102,518 |
Private Banks | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 48,325 | 41,762 | 43,661 |
Private Banks | Ireland | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 18,305 | 17,027 | 19,237 |
Private Banks | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Private Banks | Investment management fees from pooled investment products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 134,617 | 127,883 | 135,503 |
Private Banks | Investment management fees from investment management agreements | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,271 | 1,470 | 1,616 |
Private Banks | Investment operations fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,512 | 1,804 | 1,634 |
Private Banks | Investment processing fees - PaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 215,473 | 184,711 | 177,046 |
Private Banks | Investment processing fees - SaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 113,964 | 113,012 | 132,661 |
Private Banks | Professional services fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 22,054 | 21,594 | 15,687 |
Private Banks | Account fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,679 | 4,919 | 6,129 |
Investment Advisors | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 482,949 | 407,564 | 403,778 |
Investment Advisors | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 482,949 | 407,564 | 403,778 |
Investment Advisors | United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Advisors | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Advisors | Ireland | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Advisors | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Advisors | Investment management fees from pooled investment products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 301,581 | 271,627 | 282,253 |
Investment Advisors | Investment management fees from investment management agreements | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 158,181 | 115,887 | 103,428 |
Investment Advisors | Investment operations fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Advisors | Investment processing fees - PaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Advisors | Investment processing fees - SaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Advisors | Professional services fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Advisors | Account fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 23,187 | 20,050 | 18,097 |
Institutional Investors | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 343,805 | 317,627 | 322,062 |
Institutional Investors | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 274,867 | 250,321 | 252,149 |
Institutional Investors | United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 53,888 | 51,292 | 52,584 |
Institutional Investors | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,396 | 5,610 | 6,889 |
Institutional Investors | Ireland | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 10,151 | 9,850 | 9,588 |
Institutional Investors | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 503 | 554 | 852 |
Institutional Investors | Investment management fees from pooled investment products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 57,716 | 53,283 | 54,726 |
Institutional Investors | Investment management fees from investment management agreements | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 282,797 | 262,709 | 266,323 |
Institutional Investors | Investment operations fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Institutional Investors | Investment processing fees - PaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Institutional Investors | Investment processing fees - SaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,207 | 0 | 0 |
Institutional Investors | Professional services fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Institutional Investors | Account fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,085 | 1,635 | 1,013 |
Investment Managers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 581,157 | 489,462 | 440,796 |
Investment Managers | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 539,843 | 456,547 | 411,984 |
Investment Managers | United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Managers | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Managers | Ireland | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 41,314 | 32,915 | 28,812 |
Investment Managers | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Managers | Investment management fees from pooled investment products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 134 | 637 | 766 |
Investment Managers | Investment management fees from investment management agreements | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Managers | Investment operations fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 538,446 | 447,517 | 403,208 |
Investment Managers | Investment processing fees - PaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investment Managers | Investment processing fees - SaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 13,792 | 13,739 | 11,036 |
Investment Managers | Professional services fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,508 | 5,753 | 5,209 |
Investment Managers | Account fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 25,277 | 21,816 | 20,577 |
Investments In New Businesses | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 16,828 | 14,012 | 12,973 |
Investments In New Businesses | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 16,828 | 14,012 | 12,973 |
Investments In New Businesses | United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investments In New Businesses | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investments In New Businesses | Ireland | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investments In New Businesses | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investments In New Businesses | Investment management fees from pooled investment products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,330 | 1,411 | 1,293 |
Investments In New Businesses | Investment management fees from investment management agreements | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 14,838 | 12,105 | 11,571 |
Investments In New Businesses | Investment operations fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investments In New Businesses | Investment processing fees - PaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investments In New Businesses | Investment processing fees - SaaS | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investments In New Businesses | Professional services fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Investments In New Businesses | Account fees and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 660 | $ 496 | $ 109 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating leases expense | $ 11,190 | $ 9,711 | $ 10,159 |
Variable lease, cost | $ 2,110 | $ 0 | $ 0 |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 11,799 | |
2023 | 9,628 | |
2024 | 7,778 | |
2025 | 5,483 | |
2026 | 4,124 | |
Thereafter | 2,073 | |
Total future minimum lease payments | 40,885 | |
Less: Imputed interest | (1,918) | |
Total | $ 38,967 | $ 42,637 |
Leases (Supplemental Consolidat
Leases (Supplemental Consolidated Balance Sheet Information Related to Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Current portion of long-term operating lease liabilities | $ 11,328 | $ 8,579 |
Long-term operating lease liabilities | 27,639 | 34,058 |
Total operating lease liabilities | $ 38,967 | $ 42,637 |
Weighted average remaining lease term | 4 years 7 months 6 days | 5 years 6 months |
Weighted average discount rate | 2.26% | 2.43% |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related to Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 10,132 | $ 10,361 | $ 10,932 |
Right-of-use assets obtained in exchange for lease obligations | $ 3,778 | $ 3,272 | $ 6,372 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 1,100 | $ 1,201 | $ 718 |
Additions, Charged to Costs and Expenses | 502 | 0 | 483 |
Additions, Charged to Other Accounts | 0 | 0 | 0 |
(Deductions) | 0 | (101) | 0 |
Balance at End of Year | 1,602 | 1,100 | 1,201 |
Deferred income tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 68,776 | 70,731 | 72,316 |
Additions, Charged to Costs and Expenses | 0 | 0 | 0 |
Additions, Charged to Other Accounts | 0 | 0 | 0 |
(Deductions) | (4,977) | (1,955) | (1,585) |
Balance at End of Year | $ 63,799 | $ 68,776 | $ 70,731 |