v2.4.0.6
Business Segment Information
 6 Months Ended
Jun. 30, 2012
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information
The Company’s reportable business segments are:
Private Banks – provides investment processing and investment management programs to banks and trust institutions 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 operations 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® and conducts other research and development activities.
The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes. There are no inter-segment revenues for the three and six months ended June 30, 2012 and 2011. 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, 2011.
The following tables highlight certain unaudited financial information about each of the Company’s business segments for the three months ended June 30, 2012 and 2011.
 
 
Private
Banks
 
Investment
Advisors
 
Institutional
Investors
 
Investment
Managers
 
Investments
In New
Businesses
 
Total
 
For the Three Months Ended June 30, 2012
Revenues
$
88,303

 
$
49,375

 
$
55,895

 
$
46,713

 
$
951

 
$
241,237

Expenses
84,886

 
29,025

 
28,740

 
30,163

 
3,684

 
176,498

Operating profit (loss)
$
3,417

 
$
20,350

 
$
27,155

 
$
16,550

 
$
(2,733
)
 
$
64,739

Operating margin
4
%
 
41
%
 
49
%
 
35
%
 
N/A

 
27
%
 
 
Private
Banks
 
Investment
Advisors
 
Institutional
Investors
 
Investment
Managers
 
Investments
In New
Businesses
 
Total
 
For the Three Months Ended June 30, 2011
Revenues
$
87,873

 
$
49,768

 
$
54,731

 
$
44,452

 
$
936

 
$
237,760

Expenses
86,274

 
27,734

 
27,406

 
29,282

 
2,920

 
173,616

Operating profit (loss)
$
1,599

 
$
22,034

 
$
27,325

 
$
15,170

 
$
(1,984
)
 
$
64,144

Operating margin
2
%
 
44
%
 
50
%
 
34
%
 
N/A

 
27
%

A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of Operations for the three months ended June 30, 2012 and 2011 is as follows:
 
 
2012
 
2011
Total operating profit from segments above
$
64,739

 
$
64,144

Corporate overhead expenses
(11,080
)
 
(10,720
)
Noncontrolling interest reflected in segments
139

 
533

Income from operations
$
53,798

 
$
53,957



The following tables provide additional information for the three months ended June 30, 2012 and 2011 pertaining to our business segments:
 
 
Capital Expenditures
 
Depreciation
 
2012
 
2011
 
2012
 
2011
Private Banks
$
8,180

 
$
6,783

 
$
3,704

 
$
3,962

Investment Advisors
2,805

 
2,296

 
492

 
556

Institutional Investors
636

 
251

 
251

 
268

Investment Managers
1,110

 
89

 
492

 
435

Investments in New Businesses
148

 
92

 
490

 
29

Total from business segments
$
12,879

 
$
9,511

 
$
5,429

 
$
5,250

Corporate Overhead
286

 
(24
)
 
201

 
141

 
$
13,165

 
$
9,487

 
$
5,630

 
$
5,391

 
 
Amortization
 
2012
 
2011
Private Banks
$
4,794

 
$
4,608

Investment Advisors
1,757

 
1,551

Institutional Investors
302

 
196

Investment Managers
201

 
131

Investments in New Businesses
296

 
65

Total from business segments
$
7,350

 
$
6,551

Corporate Overhead
57

 
241

 
$
7,407

 
$
6,792


The following tables highlight certain unaudited financial information about each of the Company’s business segments for the six months ended June 30, 2012 and 2011.
 
 
Private
Banks
 
Investment
Advisors
 
Institutional
Investors
 
Investment
Managers
 
Investments
In New
Businesses
 
Total
 
For the Six Months Ended June 30, 2012
Revenues
$
176,291

 
$
98,843

 
$
109,212

 
$
92,924

 
$
1,865

 
$
479,135

Expenses
172,403

 
58,326

 
56,840

 
60,589

 
7,382

 
355,540

Operating profit (loss)
$
3,888

 
$
40,517

 
$
52,372

 
$
32,335

 
$
(5,517
)
 
$
123,595

Operating margin
2
%
 
41
%
 
48
%
 
35
%
 
N/A

 
26
%
 
 
Private
Banks
 
Investment
Advisors
 
Institutional
Investors
 
Investment
Managers
 
Investments
In New
Businesses
 
Total
 
For the Six Months Ended June 30, 2011
Revenues
$
174,582

 
$
97,876

 
$
107,916

 
$
87,893

 
$
1,986

 
$
470,253

Expenses
168,677

 
54,774

 
54,359

 
57,281

 
6,045

 
341,136

Operating profit (loss)
$
5,905

 
$
43,102

 
$
53,557

 
$
30,612

 
$
(4,059
)
 
$
129,117

Operating margin
3
%
 
44
%
 
50
%
 
35
%
 
N/A

 
27
%

A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of Operations for the six months ended June 30, 2012 and 2011 is as follows:
 
2012
 
2011
Total operating profit from segments above
$
123,595

 
$
129,117

Corporate overhead expenses
(22,162
)
 
(21,368
)
Noncontrolling interest reflected in segments
454

 
805

Income from operations
$
101,887

 
$
108,554



The following tables provide additional information for the six months ended June 30, 2012 and 2011 pertaining to our business segments:
 
Capital Expenditures
 
Depreciation
 
2012
 
2011
 
2012
 
2011
Private Banks
$
20,022

 
$
17,813

 
$
7,432

 
$
8,000

Investment Advisors
6,946

 
6,038

 
986

 
1,147

Institutional Investors
1,867

 
1,132

 
513

 
560

Investment Managers
4,163

 
1,873

 
968

 
938

Investments in New Businesses
420

 
304

 
824

 
59

Total from business segments
$
33,418

 
$
27,160

 
$
10,723

 
$
10,704

Corporate Overhead
1,140

 
350

 
339

 
298

 
$
34,558

 
$
27,510

 
$
11,062

 
$
11,002


 
Amortization
 
2012
 
2011
Private Banks
$
9,479

 
$
8,837

Investment Advisors
3,473

 
2,969

Institutional Investors
604

 
363

Investment Managers
402

 
246

Investments in New Businesses
573

 
124

Total from business segments
$
14,531

 
$
12,539

Corporate Overhead
498

 
484

 
$
15,029

 
$
13,023