Business Segment Information

The Company’s reportable business segments are:

Private Banks – provides investment processing and investment management programs to banks and trust institutions, independent wealth advisers and financial advisors worldwide;

Investment Advisors – provides investment management programs to affluent investors through a network of independent registered investment advisors, financial planners and other investment professionals in the United States;

Institutional Investors – provides investment management programs to retirement plan sponsors, healthcare systems and not-for-profit organizations worldwide;

Investment Managers – provides investment operations outsourcing solutions to fund companies, banking institutions and both traditional and non-traditional investment managers worldwide; and

Investments in New Businesses – focuses on providing investment management programs to ultra-high-net-worth families residing in the United States; developing internet-based investment services and advice solutions; entering new markets; and conducting other research and development activities.

The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes. There are no inter-segment revenues for the three and six months ended June 30, 2017 and 2016. 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, 2016.

The following tables highlight certain financial information about each of the Company’s business segments for the three months ended June 30, 2017 and 2016.



	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses			Total
	For the Three Months Ended June 30, 2017
Revenues	$	116,184	$	92,746	$	78,068	$	83,616	$	1,717		$	372,331
Expenses	112,353		49,380		38,668		53,847		5,124			259,372
Operating profit (loss)	$	3,831	$	43,366	$	39,400	$	29,769	$	(3,407	)	$	112,959



	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses			Total
	For the Three Months Ended June 30, 2016
Revenues	$	114,836	$	81,883	$	74,674	$	70,938	$	1,500		$	343,831
Expenses	102,862		44,721		36,550		46,968		5,355			236,456
Operating profit (loss)	$	11,974	$	37,162	$	38,124	$	23,970	$	(3,855	)	$	107,375

A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the three months ended June 30, 2017 and 2016 is as follows:



	2017			2016
Total operating profit from segments	$	112,959		$	107,375
Corporate overhead expenses	(15,732		)	(13,852		)
Income from operations	$	97,227		$	93,523

The following tables provide additional information for the three months ended June 30, 2017 and 2016 pertaining to our business segments:



	Capital Expenditures (1)				Depreciation
	2017		2016		2017		2016
Private Banks	$	9,479	$	8,454	$	4,172	$	3,199
Investment Advisors	3,698		3,267		802		964
Institutional Investors	1,086		696		244		339
Investment Managers	8,665		1,743		1,028		1,172
Investments in New Businesses	153		121		171		547
Total from business segments	$	23,081	$	14,281	$	6,417	$	6,221
Corporate overhead	392		279		182		213
	$	23,473	$	14,560	$	6,599	$	6,434

(1) Capital expenditures include additions to property and equipment and capitalized software.



	Amortization
	2017		2016
Private Banks	$	8,876	$	7,769
Investment Advisors	2,897		2,585
Institutional Investors	426		425
Investment Managers	275		275
Investments in New Businesses	41		40
Total from business segments	$	12,515	$	11,094
Corporate overhead	50		190
	$	12,565	$	11,284

The following tables highlight certain financial information about each of the Company’s business segments for the six months ended June 30, 2017 and 2016.



	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses			Total
	For the Six Months Ended June 30, 2017
Revenues	$	228,818	$	180,984	$	155,072	$	164,103	$	3,338		$	732,315
Expenses	220,903		96,919		77,496		105,912		10,004			511,234
Operating profit (loss)	$	7,915	$	84,065	$	77,576	$	58,191	$	(6,666	)	$	221,081



	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses			Total
	For the Six Months Ended June 30, 2016
Revenues	$	228,197	$	158,562	$	147,571	$	140,856	$	2,908		$	678,094
Expenses	206,603		89,495		71,932		92,243		10,587			470,860
Operating profit (loss)	$	21,594	$	69,067	$	75,639	$	48,613	$	(7,679	)	$	207,234
Gain on sale of subsidiary	2,791		—		—		—		—			2,791
Segment profit (loss)	$	24,385	$	69,067	$	75,639	$	48,613	$	(7,679	)	$	210,025

A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the six months ended June 30, 2017 and 2016 is as follows:



	2017			2016
Total operating profit from segments	$	221,081		$	207,234
Corporate overhead expenses	(30,337		)	(26,899		)
Income from operations	$	190,744		$	180,335

The following tables provide additional information for the six months ended June 30, 2017 and 2016 pertaining to our business segments:



	Capital Expenditures (1)				Depreciation
	2017		2016		2017		2016
Private Banks	$	22,329	$	17,166	$	8,582	$	6,380
Investment Advisors	8,230		6,119		1,535		1,940
Institutional Investors	1,897		1,492		471		673
Investment Managers	10,280		3,065		1,944		2,362
Investments in New Businesses	259		215		539		1,095
Total from business segments	$	42,995	$	28,057	$	13,071	$	12,450
Corporate Overhead	544		589		328		431
	$	43,539	$	28,646	$	13,399	$	12,881

(1) Capital expenditures include additions to property and equipment and capitalized software.



	Amortization
	2017		2016
Private Banks	$	17,339	$	15,480
Investment Advisors	5,747		5,138
Institutional Investors	749		824
Investment Managers	491		541
Investments in New Businesses	160		66
Total from business segments	$	24,486	$	22,049
Corporate Overhead	101		247
	$	24,587	$	22,296