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Business Segment Information | 9 Months Ended
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Sep. 30, 2019
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 investment management and administrative outsourcing platforms to retirement plan sponsors, healthcare systems and 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 internet-based investment services and advice platforms; 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 nine months ended September 30, 2019 and 2018. 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, 2018. The following tables highlight certain financial information about each of the Company’s business segments for the three months ended September 30, 2019 and 2018:
| Private Banks |  | Investment Advisors |  | Institutional Investors |  | Investment Managers |  | Investments In New Businesses |  | Total
| For the Three Months Ended September 30, 2019
Revenues | $ | 117,250 |  |  | $ | 103,033 |  |  | $ | 80,337 |  |  | $ | 112,186 |  |  | $ | 3,448 |  |  | $ | 416,254 |
Expenses | 110,788 |  |  | 51,509 |  |  | 37,268 |  |  | 71,889 |  |  | 7,926 |  |  | 279,380 |
Operating profit (loss) | $ | 6,462 |  |  | $ | 51,524 |  |  | $ | 43,069 |  |  | $ | 40,297 |  |  | $ | (4,478 | ) |  | $ | 136,874 |
| Private Banks |  | Investment Advisors |  | Institutional Investors |  | Investment Managers |  | Investments In New Businesses |  | Total
| For the Three Months Ended September 30, 2018
Revenues | $ | 118,449 |  |  | $ | 102,550 |  |  | $ | 83,466 |  |  | $ | 101,275 |  |  | $ | 2,942 |  |  | $ | 408,682 |
Expenses | 116,471 |  |  | 53,287 |  |  | 40,497 |  |  | 65,296 |  |  | 5,769 |  |  | 281,320 |
Operating profit (loss) | $ | 1,978 |  |  | $ | 49,263 |  |  | $ | 42,969 |  |  | $ | 35,979 |  |  | $ | (2,827 | ) |  | $ | 127,362 |
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, 2019 and 2018 is as follows:
| 2019 |  | 2018
Total operating profit from segments | $ | 136,874 |  |  | $ | 127,362 |
Corporate overhead expenses | (16,237 | ) |  | (14,942 | )
Income from operations | $ | 120,637 |  |  | $ | 112,420 |
The following tables provide additional information for the three months ended September 30, 2019 and 2018 pertaining to our business segments:
| Capital Expenditures (1) |  | Depreciation
| 2019 |  | 2018 |  | 2019 |  | 2018
Private Banks | $ | 8,018 |  |  | $ | 7,999 |  |  | $ | 3,640 |  |  | $ | 3,427 |
Investment Advisors | 4,468 |  |  | 3,927 |  |  | 1,162 |  |  | 1,168 |
Institutional Investors | 1,070 |  |  | 962 |  |  | 393 |  |  | 410 |
Investment Managers | 5,311 |  |  | 4,104 |  |  | 1,793 |  |  | 1,796 |
Investments in New Businesses | 379 |  |  | 287 |  |  | 101 |  |  | 137 |
Total from business segments | $ | 19,246 |  |  | $ | 17,279 |  |  | $ | 7,089 |  |  | $ | 6,938 |
Corporate overhead | 663 |  |  | 460 |  |  | 320 |  |  | 317 |
| $ | 19,909 |  |  | $ | 17,739 |  |  | $ | 7,409 |  |  | $ | 7,255 |
(1) Capital expenditures include additions to property and equipment and capitalized software.
| Amortization
| 2019 |  | 2018
Private Banks | $ | 7,322 |  |  | $ | 6,943 |
Investment Advisors | 2,609 |  |  | 2,445 |
Institutional Investors | 440 |  |  | 427 |
Investment Managers | 2,334 |  |  | 2,346 |
Investments in New Businesses | 185 |  |  | 186 |
Total from business segments | $ | 12,890 |  |  | $ | 12,347 |
Corporate overhead | 57 |  |  | 58 |
| $ | 12,947 |  |  | $ | 12,405 |
The following tables highlight certain financial information about each of the Company’s business segments for the nine months ended September 30, 2019 and 2018:
| Private Banks |  | Investment Advisors |  | Institutional Investors |  | Investment Managers |  | Investments In New Businesses |  | Total
| For the Nine Months Ended September 30, 2019
Revenues | $ | 351,601 |  |  | $ | 297,916 |  |  | $ | 241,559 |  |  | $ | 326,037 |  |  | $ | 9,547 |  |  | $ | 1,226,660 |
Expenses | 329,540 |  |  | 154,569 |  |  | 115,383 |  |  | 209,326 |  |  | 20,663 |  |  | 829,481 |
Operating profit (loss) | $ | 22,061 |  |  | $ | 143,347 |  |  | $ | 126,176 |  |  | $ | 116,711 |  |  | $ | (11,116 | ) |  | $ | 397,179 |
| Private Banks |  | Investment Advisors |  | Institutional Investors |  | Investment Managers |  | Investments In New Businesses |  | Total
| For the Nine Months Ended September 30, 2018
Revenues | $ | 361,739 |  |  | $ | 301,632 |  |  | $ | 252,391 |  |  | $ | 295,696 |  |  | $ | 7,652 |  |  | $ | 1,219,110 |
Expenses | 343,515 |  |  | 158,792 |  |  | 122,617 |  |  | 191,955 |  |  | 16,807 |  |  | 833,686 |
Operating profit (loss) | $ | 18,224 |  |  | $ | 142,840 |  |  | $ | 129,774 |  |  | $ | 103,741 |  |  | $ | (9,155 | ) |  | $ | 385,424 |
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, 2019 and 2018 is as follows:
| 2019 |  | 2018
Total operating profit from segments | $ | 397,179 |  |  | $ | 385,424 |
Corporate overhead expenses | (52,845 | ) |  | (46,398 | )
Income from operations | $ | 344,334 |  |  | $ | 339,026 |
The following tables provide additional information for the nine months ended September 30, 2019 and 2018 pertaining to our business segments:
| Capital Expenditures (1) |  | Depreciation
| 2019 |  | 2018 |  | 2019 |  | 2018
Private Banks | $ | 25,240 |  |  | $ | 27,767 |  |  | $ | 10,774 |  |  | $ | 10,069 |
Investment Advisors | 12,973 |  |  | 12,471 |  |  | 3,506 |  |  | 3,378 |
Institutional Investors | 2,990 |  |  | 2,926 |  |  | 1,212 |  |  | 1,310 |
Investment Managers | 13,535 |  |  | 9,994 |  |  | 5,384 |  |  | 5,411 |
Investments in New Businesses | 964 |  |  | 731 |  |  | 302 |  |  | 442 |
Total from business segments | $ | 55,702 |  |  | $ | 53,889 |  |  | $ | 21,178 |  |  | $ | 20,610 |
Corporate Overhead | 1,634 |  |  | 1,134 |  |  | 984 |  |  | 905 |
| $ | 57,336 |  |  | $ | 55,023 |  |  | $ | 22,162 |  |  | $ | 21,515 |
(1) Capital expenditures include additions to property and equipment and capitalized software.
| Amortization
| 2019 |  | 2018
Private Banks | $ | 21,680 |  |  | $ | 20,317 |
Investment Advisors | 7,682 |  |  | 7,203 |
Institutional Investors | 1,300 |  |  | 1,281 |
Investment Managers | 7,019 |  |  | 7,036 |
Investments in New Businesses | 555 |  |  | 410 |
Total from business segments | $ | 38,236 |  |  | $ | 36,247 |
Corporate Overhead | 171 |  |  | 173 |
| $ | 38,407 |  |  | $ | 36,420 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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