| Business Segment Information | Note 10. Business Segment Information
The Company's reportable business segments are:
Private Banks – provides investment processing and investment management programs to banks and trust institutions worldwide, independent wealth advisers located in the United Kingdom, and financial advisors in Canada;
Investment Advisors – provides investment management programs to affluent investors through a network of independent registered investment advisors, financial planners, and other investment professionals in the United States;
Institutional Investors – provides investment management programs and administrative outsourcing solutions to retirement plan sponsors, hospitals, and not-for-profit organizations worldwide;
Investment Managers – provides investment processing, fund processing, and operational outsourcing solutions to investment managers, fund companies and banking institutions located in the United States, and to investment managers worldwide of alternative asset classes such as hedge funds, funds of hedge funds, and private equity funds across both registered and partnership structures; and
Investments in New Businesses – provides investment management programs to ultra-high-net-worth families residing in the United States through the SEI Wealth Network®.
The information in the following tables is derived from the Company's internal financial reporting used for corporate management purposes. There are no inter-segment revenues for the three and nine months ended September 30, 2011 and 2010. Management evaluates Company assets on a consolidated basis during interim periods. The accounting policies of the reportable business segments are the same as those described in Note 1 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2010.
The following tables highlight certain unaudited financial information about each of the Company's business segments for the three months ended September 30, 2011 and 2010.
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|
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Investments |
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|
|
|
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|
Private |
|
|
Investment |
|
|
Institutional |
|
|
Investment |
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|
In New |
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|
|
|
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|
Banks |
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|
Advisors |
|
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Investors |
|
|
Managers |
|
|
Businesses |
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|
Total |
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For the Three Months Ended September 30, 2011 |
|
|
Revenues |
|
$ |
87,697 |
|
|
$ |
46,798 |
|
|
$ |
52,216 |
|
|
$ |
45,585 |
|
|
$ |
931 |
|
|
$ |
233,227 |
|
|
Expenses |
|
|
85,893 |
|
|
|
28,051 |
|
|
|
25,524 |
|
|
|
29,412 |
|
|
|
2,429 |
|
|
|
171,309 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) |
|
$ |
1,804 |
|
|
$ |
18,747 |
|
|
$ |
26,692 |
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|
$ |
16,173 |
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|
$ |
(1,498 |
) |
|
$ |
61,918 |
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|
Operating margin |
|
|
2 |
% |
|
|
40 |
% |
|
|
51 |
% |
|
|
35 |
% |
|
|
N/A |
|
|
|
27 |
% |
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Investments |
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Private |
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|
Investment |
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Institutional |
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|
Investment |
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|
In New |
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|
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Banks |
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Advisors |
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Investors |
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Managers |
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|
Businesses |
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Total |
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For the Three Months Ended September 30, 2010 |
|
|
Revenues |
|
$ |
83,518 |
|
|
$ |
43,422 |
|
|
$ |
51,036 |
|
|
$ |
40,548 |
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|
$ |
989 |
|
|
$ |
219,513 |
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Expenses |
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|
73,463 |
|
|
|
26,426 |
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|
|
25,940 |
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|
|
25,763 |
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|
|
4,080 |
|
|
|
155,672 |
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|
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|
|
|
|
|
|
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Operating profit (loss) |
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$ |
10,055 |
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|
$ |
16,996 |
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|
$ |
25,096 |
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|
$ |
14,785 |
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|
$ |
(3,091 |
) |
|
$ |
63,841 |
|
|
Operating margin |
|
|
12 |
% |
|
|
39 |
% |
|
|
49 |
% |
|
|
36 |
% |
|
|
N/A |
|
|
|
29 |
% |
A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the three months ended September 30, 2011 and 2010 is as follows:
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2011 |
|
|
2010 |
|
|
Total operating profit from segments above |
|
$ |
61,918 |
|
|
$ |
63,841 |
|
|
Corporate overhead expenses |
|
|
(11,155 |
) |
|
|
(8,981 |
) |
|
Noncontrolling interest reflected in segments |
|
|
373 |
|
|
|
279 |
|
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|
|
|
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Income from operations |
|
$ |
51,136 |
|
|
$ |
55,139 |
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|
|
|
|
|
|
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|
The following tables provide additional information for the three months ended September 30, 2011 and 2010 pertaining to the Company's business segments:
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Capital Expenditures |
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Depreciation |
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2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
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Private Banks |
|
$ |
9,219 |
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|
$ |
8,452 |
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|
$ |
3,913 |
|
|
$ |
4,044 |
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Investment Advisors |
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|
3,146 |
|
|
|
2,976 |
|
|
|
552 |
|
|
|
602 |
|
|
Institutional Investors |
|
|
508 |
|
|
|
615 |
|
|
|
276 |
|
|
|
297 |
|
|
Investment Managers |
|
|
671 |
|
|
|
770 |
|
|
|
441 |
|
|
|
467 |
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|
Investments in New Businesses |
|
|
146 |
|
|
|
147 |
|
|
|
24 |
|
|
|
36 |
|
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|
|
|
|
|
|
|
|
|
|
|
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|
|
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Total from business segments |
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$ |
13,690 |
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|
$ |
12,960 |
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|
$ |
5,206 |
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|
$ |
5,446 |
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Corporate Overhead |
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|
100 |
|
|
|
151 |
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|
|
140 |
|
|
|
156 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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$ |
13,790 |
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|
$ |
13,111 |
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|
$ |
5,346 |
|
|
$ |
5,602 |
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Amortization |
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2011 |
|
|
2010 |
|
|
Private Banks |
|
$ |
4,762 |
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|
$ |
3,767 |
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|
Investment Advisors |
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|
1,604 |
|
|
|
1,362 |
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Institutional Investors |
|
|
200 |
|
|
|
305 |
|
|
Investment Managers |
|
|
133 |
|
|
|
204 |
|
|
Investments in New Businesses |
|
|
67 |
|
|
|
117 |
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|
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|
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Total from business segments |
|
$ |
6,766 |
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|
$ |
5,755 |
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Corporate Overhead |
|
|
242 |
|
|
|
243 |
|
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|
|
|
|
|
|
|
|
| |
|
$ |
7,008 |
|
|
$ |
5,998 |
|
| |
|
|
|
|
|
|
|
|
The following tables highlight certain unaudited financial information about each of the Company's business segments for the nine months ended September 30, 2011 and 2010.
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| |
|
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|
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|
|
|
|
|
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Investments |
|
|
|
|
| |
|
Private |
|
|
Investment |
|
|
Institutional |
|
|
Investment |
|
|
In New |
|
|
|
|
| |
|
Banks |
|
|
Advisors |
|
|
Investors |
|
|
Managers |
|
|
Businesses |
|
|
Total |
|
| |
|
For the Nine Months Ended September 30, 2011 |
|
|
Revenues |
|
$ |
262,279 |
|
|
$ |
144,674 |
|
|
$ |
160,132 |
|
|
$ |
133,478 |
|
|
$ |
2,917 |
|
|
$ |
703,480 |
|
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Expenses |
|
|
254,570 |
|
|
|
82,825 |
|
|
|
79,883 |
|
|
|
86,693 |
|
|
|
8,474 |
|
|
|
512,445 |
|
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|
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|
|
|
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|
|
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|
|
|
|
|
|
|
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Operating profit (loss) |
|
$ |
7,709 |
|
|
$ |
61,849 |
|
|
$ |
80,249 |
|
|
$ |
46,785 |
|
|
$ |
(5,557 |
) |
|
$ |
191,035 |
|
|
Operating margin |
|
|
3 |
% |
|
|
43 |
% |
|
|
50 |
% |
|
|
35 |
% |
|
|
N/A |
|
|
|
27 |
% |
| |
|
|
|
|
|
|
|
|
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Investments |
|
|
|
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| |
|
Private |
|
|
Investment |
|
|
Institutional |
|
|
Investment |
|
|
In New |
|
|
|
|
| |
|
Banks |
|
|
Advisors |
|
|
Investors |
|
|
Managers |
|
|
Businesses |
|
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Total |
|
| |
|
For the Nine Months Ended September 30, 2010 |
|
|
Revenues |
|
$ |
260,730 |
|
|
$ |
135,283 |
|
|
$ |
152,821 |
|
|
$ |
117,598 |
|
|
$ |
3,004 |
|
|
$ |
669,436 |
|
|
Expenses |
|
|
229,674 |
|
|
|
82,129 |
|
|
|
78,896 |
|
|
|
75,918 |
|
|
|
9,480 |
|
|
|
476,097 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) |
|
$ |
31,056 |
|
|
$ |
53,154 |
|
|
$ |
73,925 |
|
|
$ |
41,680 |
|
|
$ |
(6,476 |
) |
|
$ |
193,339 |
|
|
Operating margin |
|
|
12 |
% |
|
|
39 |
% |
|
|
48 |
% |
|
|
35 |
% |
|
|
N/A |
|
|
|
29 |
% |
A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the nine months ended September 30, 2011 and 2010 is as follows:
| |
|
|
|
|
|
|
|
|
| |
|
2011 |
|
|
2010 |
|
|
Total operating profit from segments above |
|
$ |
191,035 |
|
|
$ |
193,339 |
|
|
Corporate overhead expenses |
|
|
(32,523 |
) |
|
|
(28,639 |
) |
|
Noncontrolling interest reflected in segments |
|
|
1,178 |
|
|
|
956 |
|
| |
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
159,690 |
|
|
$ |
165,656 |
|
| |
|
|
|
|
|
|
|
|
The following tables provide additional information for the nine months ended September 30, 2011 and 2010 pertaining to the Company's business segments:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Capital Expenditures |
|
|
Depreciation |
|
| |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
|
Private Banks |
|
$ |
27,032 |
|
|
$ |
27,119 |
|
|
$ |
11,913 |
|
|
$ |
11,796 |
|
|
Investment Advisors |
|
|
9,184 |
|
|
|
9,752 |
|
|
|
1,699 |
|
|
|
1,758 |
|
|
Institutional Investors |
|
|
1,640 |
|
|
|
2,476 |
|
|
|
836 |
|
|
|
864 |
|
|
Investment Managers |
|
|
2,544 |
|
|
|
4,090 |
|
|
|
1,379 |
|
|
|
1,410 |
|
|
Investments in New Businesses |
|
|
450 |
|
|
|
552 |
|
|
|
83 |
|
|
|
109 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from business segments |
|
$ |
40,850 |
|
|
$ |
43,989 |
|
|
$ |
15,910 |
|
|
$ |
15,937 |
|
|
Corporate Overhead |
|
|
450 |
|
|
|
1,003 |
|
|
|
438 |
|
|
|
455 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ |
41,300 |
|
|
$ |
44,992 |
|
|
$ |
16,348 |
|
|
$ |
16,392 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
Amortization |
|
| |
|
2011 |
|
|
2010 |
|
|
Private Banks |
|
$ |
13,599 |
|
|
$ |
11,233 |
|
|
Investment Advisors |
|
|
4,573 |
|
|
|
4,066 |
|
|
Institutional Investors |
|
|
563 |
|
|
|
910 |
|
|
Investment Managers |
|
|
379 |
|
|
|
615 |
|
|
Investments in New Businesses |
|
|
191 |
|
|
|
342 |
|
| |
|
|
|
|
|
|
|
|
|
Total from business segments |
|
$ |
19,305 |
|
|
$ |
17,166 |
|
|
Corporate Overhead |
|
|
726 |
|
|
|
729 |
|
| |
|
|
|
|
|
|
|
|
| |
|
$ |
20,031 |
|
|
$ |
17,895 |
|
| |
|
|
|
|
|
|
| |