ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Pennsylvania
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23-1707341
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1 Freedom Valley Drive, Oaks, Pennsylvania
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19456-1100
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $.01 per share
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The NASDAQ Stock Market LLC
(The NASDAQ Global Select Market®)
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Common Stock, $.01 par value
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172,642,438
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1
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The definitive proxy statement relating to the registrant’s 2013 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.
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Page
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PART I
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Item 1.
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Business.
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Item 1A.
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Risk Factors.
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Item 1B.
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Unresolved Staff Comments.
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Item 2.
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Properties.
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Item 3.
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Legal Proceedings.
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Item 4.
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Mine Safety Disclosures.
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PART II
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
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Item 6.
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Selected Financial Data.
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk.
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Item 8.
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Financial Statements and Supplementary Data.
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Item 9.
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Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.
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Item 9A.
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Controls and Procedures.
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Item 9B.
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Other Information.
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PART III
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Item 10.
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Directors, Executive Officers and Corporate Governance.
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Item 11.
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Executive Compensation.
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence.
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Item 14.
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Principal Accounting Fees and Services.
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PART IV
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Item 15.
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Exhibits, Financial Statement Schedules.
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•
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Investment processing outsourcing solutions for banks, trust companies, independent wealth advisers, and investment managers;
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•
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Investment management programs for affluent individual investors and for institutional investors, including retirement plan sponsors, and not-for-profit organizations; and
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•
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Investment operations outsourcing solutions for investment management firms, banks and investment companies that sponsor and distribute mutual funds, hedge funds, and alternative investments.
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•
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Achieve organic growth in revenue and earnings
. We seek to grow the business by providing additional services to clients, adding new clients, introducing new products, and adapting products for new markets.
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•
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Forge long-term client relationships
. We strive to achieve high levels of customer satisfaction and to forge close and long lasting client relationships. We believe these relationships enable us to market additional services, and acquire knowledge and insights that fuel the product development process.
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•
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Invest in product development
. We continually enhance products and services to keep pace with industry developments, regulatory requirements, and the emerging needs of markets and clients. We believe ongoing investments in research and development give us a competitive advantage in our markets.
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•
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Maintain financial strength
. We adopt business models that generate recurring revenues and positive cash flows. Predictable cash flows serve as a source of funds for continuing operations, investments in new products, common stock repurchases, and dividend payments.
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•
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Leverage investments across the business
. We create scalable, enterprise-wide solutions designed to serve the needs of multiple markets, potentially offering operating efficiencies that can benefit corporate profitability.
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•
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Create value for shareholders
. The objective of achieving long-term sustainable growth in revenues and earnings strongly influences the management of the business. This philosophy guides corporate management practices, strategic planning activities, and employee compensation practices.
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2012
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2011
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2010
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Private Banks
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37
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%
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37
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%
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38
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%
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Investment Advisors
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20
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%
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20
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%
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20
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%
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Institutional Investors
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23
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%
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23
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%
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23
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%
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Investment Managers
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19
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%
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19
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%
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18
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%
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Investments in New Businesses
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1
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%
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1
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%
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1
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%
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100
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%
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100
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%
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100
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%
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2012
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High
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Low
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Dividends
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||||||
First Quarter
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$
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21.58
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$
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17.00
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$
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—
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Second Quarter
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21.24
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17.03
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0.15
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Third Quarter
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22.84
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19.31
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—
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Fourth Quarter
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23.51
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20.79
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0.48
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2011
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High
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Low
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Dividends
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||||||
First Quarter
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$
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24.87
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$
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21.64
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$
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—
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Second Quarter
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24.24
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21.19
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0.12
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Third Quarter
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23.11
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14.63
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—
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Fourth Quarter
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17.52
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13.73
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0.15
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Period
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Total Number
of Shares
Purchased
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Average
Price Paid
per Share
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Total Number of
Shares Purchased as
Part of Publicly
Announced Program
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Approximate Dollar
Value of Shares that
May Yet Be
Purchased
Under the Program
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||||||
October 1 – 31, 2012
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125,000
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$
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21.89
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125,000
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$
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80,022,000
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November 1 – 30, 2012
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895,000
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21.95
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895,000
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60,373,000
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December 1 – 31, 2012
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860,000
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22.51
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860,000
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91,012,000
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Total
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1,880,000
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$
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22.21
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1,880,000
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Year Ended December 31,
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2012
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2011
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2010 (A)
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2009
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2008
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||||||||||
Revenues
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$
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992,522
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$
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929,727
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$
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900,835
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$
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1,060,548
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$
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1,247,919
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Total expenses
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780,956
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725,662
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683,302
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696,841
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751,570
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|||||
Income from operations
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211,566
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204,065
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217,533
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363,707
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496,349
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|||||
Other income (expense)
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117,930
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114,422
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152,248
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(1,389
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)
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(142,119
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)
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|||||
Income before income taxes
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329,496
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318,487
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369,781
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362,318
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354,230
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|||||
Income taxes
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121,462
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111,837
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136,461
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89,886
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86,703
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|||||
Net income
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208,034
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206,650
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233,320
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272,432
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267,527
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|||||
Less: Net income attributable to the noncontrolling interest
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(1,186
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)
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(1,691
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)
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(1,633
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)
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(98,097
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)
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(128,273
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)
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|||||
Net income attributable to SEI Investments
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206,848
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204,959
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231,687
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174,335
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139,254
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|||||
Basic earnings per common share
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$
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1.19
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$
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1.12
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$
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1.23
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$
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0.91
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$
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0.73
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Shares used to calculate basic earnings per common share
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174,295
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182,547
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188,468
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190,821
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192,057
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|||||
Diluted earnings per common share
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$
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1.18
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$
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1.11
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$
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1.22
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$
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0.91
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$
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0.71
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Shares used to calculate diluted earnings per common share
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175,872
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184,127
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190,321
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191,783
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195,233
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|||||
Cash dividends declared per common share
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$
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0.63
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$
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0.27
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$
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0.20
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$
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0.17
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$
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0.16
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Financial Position as of December 31,
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||||||||||
Cash and cash equivalents
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$
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452,247
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$
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420,986
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$
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496,292
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$
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590,877
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$
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416,643
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Total assets
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$
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1,309,824
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$
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1,294,559
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$
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1,377,223
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$
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1,533,808
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$
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1,341,715
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Long-term debt (including current portion)
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$
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—
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$
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—
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$
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95,000
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$
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253,552
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|
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$
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31,532
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SEI Investments Shareholders’ equity
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$
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1,038,180
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$
|
1,025,316
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|
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$
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1,041,570
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$
|
909,723
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$
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769,152
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(A)
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Beginning in 2010, we discontinued consolidating the accounts and operations of LSV and LSV Employee Group in our financial statements (See Note 2 to the Consolidated Financial Statements for information regarding LSV and LSV Employee Group).
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Year Ended December 31,
|
|
2012
|
|
2011
|
|
Percent
Change
|
|
2010
|
|
Percent
Change
|
||||||||
Revenues
|
|
$
|
992,522
|
|
|
$
|
929,727
|
|
|
7
|
%
|
|
$
|
900,835
|
|
|
3
|
%
|
Expenses
|
|
780,956
|
|
|
725,662
|
|
|
8
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%
|
|
683,302
|
|
|
6
|
%
|
|||
Income from operations
|
|
211,566
|
|
|
204,065
|
|
|
4
|
%
|
|
217,533
|
|
|
(6
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)%
|
|||
Net gain from investments
|
|
14,067
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|
|
3,360
|
|
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N/A
|
|
|
48,533
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|
|
(93
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)%
|
|||
Interest income, net of interest expense
|
|
5,192
|
|
|
5,244
|
|
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(1
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)%
|
|
4,848
|
|
|
8
|
%
|
|||
Other expense, net
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
(590
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)
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|
N/A
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|
|||
Equity in earnings of unconsolidated affiliates
|
|
98,671
|
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|
105,818
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|
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(7
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)%
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|
99,457
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|
|
6
|
%
|
|||
Income before income taxes
|
|
329,496
|
|
|
318,487
|
|
|
3
|
%
|
|
369,781
|
|
|
(14
|
)%
|
|||
Income taxes
|
|
121,462
|
|
|
111,837
|
|
|
9
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%
|
|
136,461
|
|
|
(18
|
)%
|
|||
Net income
|
|
208,034
|
|
|
206,650
|
|
|
1
|
%
|
|
233,320
|
|
|
(11
|
)%
|
|||
Less: Net income attributable to the noncontrolling interest
|
|
(1,186
|
)
|
|
(1,691
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)
|
|
(30
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)%
|
|
(1,633
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)
|
|
4
|
%
|
|||
Net income attributable to SEI Investments Company
|
|
$
|
206,848
|
|
|
$
|
204,959
|
|
|
1
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%
|
|
$
|
231,687
|
|
|
(12
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)%
|
Diluted earnings per common share
|
|
$
|
1.18
|
|
|
$
|
1.11
|
|
|
6
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%
|
|
$
|
1.22
|
|
|
(9
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)%
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•
|
Revenue growth in 2012 was primarily driven by higher Asset management, administration and distribution fees from improved cash flows from new and existing clients and the net market appreciation during 2012. Our average assets under management, excluding LSV, increased $13.5 billion, or 12 percent, to $130.5 billion during 2012 as compared to $117.0 billion during 2011.
|
•
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Sales of new business in our Institutional Investors and Investment Managers business segments as well as positive cash receipts from new and existing advisor relationships in our Investment Advisors business segment contributed to the increase in our revenues and profits.
|
•
|
Our investment processing fees in our Private Banks business segment increased due to new business, higher one-time project revenue and increased fees earned on our mutual fund trading solution.
|
•
|
Our proportionate share in the earnings of LSV was
$100.0 million
in
2012
as compared to
$105.8 million
in
2011
. The decrease in our earnings was primarily due to lower profits caused by increased personnel costs as well as a decrease in our ownership percentage from approximately 41.2 percent to approximately 39.8 percent beginning with the second quarter 2012. The reduction in our ownership percentage is described in greater detail under the caption "Equity in earnings of unconsolidated affiliates" later in this discussion.
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•
|
Our operating expenses related to servicing new and existing clients implemented on GWP increased during 2012 as we continue to build out the operational infrastructure. These increased operational costs, mainly related to personnel and third party service providers, primarily impacted the Private Banks business segment. The increased operational costs are primarily included in Compensation, benefits and other personnel on the accompanying Consolidated Statements of Operations.
|
•
|
Our consulting costs incurred for the development of GWP, excluding amounts capitalized, have declined during 2012 as compared to 2011. These consulting costs, which are expensed as incurred, are included in Consulting, outsourcing and professional fees on the accompanying Consolidated Statements of Operations.
|
•
|
Our operating expenses related to our hedge fund and separately managed accounts solutions of our Investment Managers business segment increased during 2012 as compared to 2011. These increased operational costs, mainly related to personnel, resulted from servicing new and existing clients and are also included in Compensation, benefits and other personnel on the accompanying Consolidated Statements of Operations.
|
•
|
Sales events, net of client losses, were significantly higher during 2012. These sales events resulted in an increase in sales compensation expense of $12.8 million when compared 2011. Also, incentive compensation expense increased in the 2012 as compared to 2011.
|
•
|
Amortization expense related to capitalized software increased to
$32.6 million
during
2012
as compared to
$26.2 million
during
2011
primarily due to continued releases of GWP. Additionally, we decided to discontinue the use of specific functionality within the platform and incurred
$2.7 million
of amortization expense related to the remaining net book value of the component during 2012. This expense was recognized in our Private Banks business segment.
|
•
|
We recognized gains of
$13.2 million
in
2012
and
$3.4 million
in
2011
from structured investment vehicles (SIV) securities. In November 2012, we sold our remaining SIV security, the senior notes issued by Gryphon, and recognized a gain of
$5.3 million
from the sale. We no longer own any SIV securities at December 31, 2012 (See Notes 5 and 6 to the Consolidated Financial Statements).
|
•
|
Our effective tax rates were
36.9 percent
in
2012
and
35.2 percent
in
2011
. The increase in our tax rate was due to the accrual of taxes on the cumulative undistributed earnings of SEI Asset Korea (SAK) as well as the impact of the Domestic Production Activities Deduction which benefited our tax rate in 2011 (See the caption "Income Taxes" later in this discussion for more information).
|
•
|
We continued our stock repurchase program during
2012
and purchased approximately
7,528,000
shares at an average price of
$20.62
per share for a total cost of
$155.3 million
. Our stock repurchases during 2012 significantly contributed to our growth in earnings per share.
|
•
|
Revenue growth was primarily driven by higher Asset management, administration and distribution fees across the business segments from improved capital market conditions. The majority of our asset-based revenues are based upon average assets, which increased during the year despite the sharp decline experienced during the third quarter. Our average assets under management, excluding LSV, increased $9.8 billion, or nine percent, to $117.0 billion during the year as compared to $107.2 billion during 2010.
|
•
|
New business coupled with asset funding from existing clients for our hedge fund solutions and increased accounts for our separately managed accounts solutions in our Investment Managers segment also served to drive revenue growth.
|
•
|
Revenues in our Private Banks business segment were negatively impacted by lower investment processing fees from price reductions provided to existing clients that recontracted for longer periods, lower transaction volumes and lower one-time project-related fees. Furthermore, the full impact of previously-announced client losses in the segment were reflected in 2011 as the associated recurring and one-time revenues from the client losses were recognized in the preceding year.
|
•
|
Our proportionate share in the earnings of LSV in 2011 was $105.8 million as compared to $99.5 million in 2010, an increase of six percent. The net market appreciation in LSV’s average assets under management during the first half of 2011 as well as increased performance fees resulted in an overall increase in their revenues. Although ending assets under management declined to $53.7 billion, LSV’s average assets under management increased $5.2 billion, or ten percent, to $58.5 billion during the year as compared to $53.3 billion during the prior year.
|
•
|
Our operating expenses related to servicing new and existing clients implemented on GWP has increased as we continue to build out the operational infrastructure and add new functionality to the platform. A higher portion of these costs are not capitalized. These increased operational costs primarily impacted the Private Banks and Investment Advisors business segments. The increased operational costs are included in Compensation, benefits and other personnel, Consulting, outsourcing and professional fees, and Data processing and computer related expenses on the accompanying Consolidated Statements of Operations.
|
•
|
Our operating expenses related to servicing new and existing clients of our hedge fund and separately managed accounts solutions of our Investment Managers business segment increased during the year. These increased operational costs are also included in Compensation, benefits and other personnel, Consulting, outsourcing and professional fees, and Data processing and computer related expenses on the accompanying Consolidated Statements of Operations.
|
•
|
We recognized $3.4 million in gains from SIV securities in 2011 as compared to $44.2 million in gains in 2010. Of the net gains recognized during 2011, gains of $10.6 million resulted from cash payments received from the SIV securities that had been previously written down offset by losses of $7.2 million which resulted from a decrease in fair value at December 31, 2011.
|
•
|
Stock-based compensation costs declined in 2011 and reflect the return to normal levels of expense amortization as compared to the level in 2010. Stock-based compensation costs decreased during the year due to the acceleration of stock-based compensation in 2010 due to a change in management’s estimates of the attainment of certain performance vesting targets, net of the reversal of $6.2 million in stock-based compensation costs in the third quarter 2010.
|
•
|
We continued our stock repurchase program during 2011 and purchased approximately 11,109,000 shares at an average price of $19.01 per share for a total cost of $211.2 million.
|
•
|
We made principal payments of $95.0 million during 2011, including a final payment of $20.0 million in the fourth quarter, to fully repay the outstanding balance of our credit facility.
|
•
|
Our effective tax rate in 2011 declined to 35.2 percent from 37.0 percent in 2010. Our tax rate in 2011 was favorably impacted by tax planning strategies implemented during 2011.
|
Ending Asset Balances
|
|
|
||||||||||||||||
(In millions)
|
|
As of December 31,
|
||||||||||||||||
|
|
|
|
|
|
Percent
|
|
|
|
Percent
|
||||||||
|
|
2012
|
|
2011
|
|
Change
|
|
2010
|
|
Change
|
||||||||
Private Banks:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
18,862
|
|
|
$
|
16,435
|
|
|
15
|
%
|
|
$
|
13,512
|
|
|
22
|
%
|
Collective trust fund programs
|
|
11
|
|
|
450
|
|
|
(98
|
)%
|
|
626
|
|
|
(28
|
)%
|
|||
Liquidity funds
|
|
6,008
|
|
|
5,553
|
|
|
8
|
%
|
|
5,120
|
|
|
8
|
%
|
|||
Total assets under management
|
|
$
|
24,881
|
|
|
$
|
22,438
|
|
|
11
|
%
|
|
$
|
19,258
|
|
|
17
|
%
|
Client proprietary assets under administration
|
|
12,178
|
|
|
10,355
|
|
|
18
|
%
|
|
10,672
|
|
|
(3
|
)%
|
|||
Total assets
|
|
$
|
37,059
|
|
|
$
|
32,793
|
|
|
13
|
%
|
|
$
|
29,930
|
|
|
10
|
%
|
Investment Advisors:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
31,220
|
|
|
$
|
26,639
|
|
|
17
|
%
|
|
$
|
27,680
|
|
|
(4
|
)%
|
Collective trust fund programs
|
|
14
|
|
|
1,298
|
|
|
(99
|
)%
|
|
1,820
|
|
|
(29
|
)%
|
|||
Liquidity funds
|
|
2,514
|
|
|
2,505
|
|
|
—
|
%
|
|
1,641
|
|
|
53
|
%
|
|||
Total assets under management
|
|
$
|
33,748
|
|
|
$
|
30,442
|
|
|
11
|
%
|
|
$
|
31,141
|
|
|
(2
|
)%
|
Institutional Investors:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
62,160
|
|
|
$
|
49,051
|
|
|
27
|
%
|
|
$
|
48,699
|
|
|
1
|
%
|
Collective trust fund programs
|
|
102
|
|
|
492
|
|
|
(79
|
)%
|
|
623
|
|
|
(21
|
)%
|
|||
Liquidity funds
|
|
2,454
|
|
|
3,888
|
|
|
(37
|
)%
|
|
3,382
|
|
|
15
|
%
|
|||
Total assets under management
|
|
$
|
64,716
|
|
|
$
|
53,431
|
|
|
21
|
%
|
|
$
|
52,704
|
|
|
1
|
%
|
Investment Managers:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
67
|
|
|
$
|
57
|
|
|
N/A
|
|
|
$
|
1
|
|
|
N/A
|
|
Collective trust fund programs
|
|
16,197
|
|
|
11,255
|
|
|
44
|
%
|
|
8,177
|
|
|
38
|
%
|
|||
Liquidity funds
|
|
408
|
|
|
152
|
|
|
168
|
%
|
|
313
|
|
|
(51
|
)%
|
|||
Total assets under management
|
|
$
|
16,672
|
|
|
$
|
11,464
|
|
|
45
|
%
|
|
$
|
8,491
|
|
|
35
|
%
|
Client proprietary assets under administration
|
|
244,671
|
|
|
221,198
|
|
|
11
|
%
|
|
233,079
|
|
|
(5
|
)%
|
|||
Total assets
|
|
$
|
261,343
|
|
|
$
|
232,662
|
|
|
12
|
%
|
|
$
|
241,570
|
|
|
(4
|
)%
|
Investments in New Businesses:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
513
|
|
|
$
|
515
|
|
|
—
|
%
|
|
$
|
569
|
|
|
(9
|
)%
|
Liquidity funds
|
|
43
|
|
|
37
|
|
|
16
|
%
|
|
65
|
|
|
(43
|
)%
|
|||
Total assets under management
|
|
$
|
556
|
|
|
$
|
552
|
|
|
1
|
%
|
|
$
|
634
|
|
|
(13
|
)%
|
LSV:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
60,947
|
|
|
$
|
53,712
|
|
|
13
|
%
|
|
$
|
60,058
|
|
|
(11
|
)%
|
Total:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
173,769
|
|
|
$
|
146,409
|
|
|
19
|
%
|
|
$
|
150,519
|
|
|
(3
|
)%
|
Collective trust fund programs
|
|
16,324
|
|
|
13,495
|
|
|
21
|
%
|
|
11,246
|
|
|
20
|
%
|
|||
Liquidity funds
|
|
11,427
|
|
|
12,135
|
|
|
(6
|
)%
|
|
10,521
|
|
|
15
|
%
|
|||
Total assets under management
|
|
$
|
201,520
|
|
|
$
|
172,039
|
|
|
17
|
%
|
|
$
|
172,286
|
|
|
—
|
%
|
Client proprietary assets under administration
|
|
256,849
|
|
|
231,553
|
|
|
11
|
%
|
|
243,751
|
|
|
(5
|
)%
|
|||
Total assets under management and administration
|
|
$
|
458,369
|
|
|
$
|
403,592
|
|
|
14
|
%
|
|
$
|
416,037
|
|
|
(3
|
)%
|
Average Asset Balances
|
|
|
||||||||||||||||
(In millions)
|
|
For the Year Ended December 31,
|
||||||||||||||||
|
|
|
|
|
|
Percent
|
|
|
|
Percent
|
||||||||
|
|
2012
|
|
2011
|
|
Change
|
|
2010
|
|
Change
|
||||||||
Private Banks:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
17,434
|
|
|
$
|
15,891
|
|
|
10
|
%
|
|
$
|
12,579
|
|
|
26
|
%
|
Collective trust fund programs
|
|
282
|
|
|
526
|
|
|
(46
|
)%
|
|
772
|
|
|
(32
|
)%
|
|||
Liquidity funds
|
|
5,332
|
|
|
5,145
|
|
|
4
|
%
|
|
5,247
|
|
|
(2
|
)%
|
|||
Total assets under management
|
|
$
|
23,048
|
|
|
$
|
21,562
|
|
|
7
|
%
|
|
$
|
18,598
|
|
|
16
|
%
|
Client proprietary assets under administration
|
|
10,873
|
|
|
10,672
|
|
|
2
|
%
|
|
10,907
|
|
|
(2
|
)%
|
|||
Total assets
|
|
$
|
33,921
|
|
|
$
|
32,234
|
|
|
5
|
%
|
|
$
|
29,505
|
|
|
9
|
%
|
Investment Advisors:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
29,611
|
|
|
$
|
27,274
|
|
|
9
|
%
|
|
$
|
25,832
|
|
|
6
|
%
|
Collective trust fund programs
|
|
728
|
|
|
1,497
|
|
|
(51
|
)%
|
|
2,118
|
|
|
(29
|
)%
|
|||
Liquidity funds
|
|
1,970
|
|
|
1,970
|
|
|
—
|
%
|
|
1,986
|
|
|
(1
|
)%
|
|||
Total assets under management
|
|
$
|
32,309
|
|
|
$
|
30,741
|
|
|
5
|
%
|
|
$
|
29,936
|
|
|
3
|
%
|
Institutional Investors:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
56,584
|
|
|
$
|
49,895
|
|
|
13
|
%
|
|
$
|
45,926
|
|
|
9
|
%
|
Collective trust fund programs
|
|
312
|
|
|
542
|
|
|
(42
|
)%
|
|
649
|
|
|
(16
|
)%
|
|||
Liquidity funds
|
|
3,415
|
|
|
3,453
|
|
|
(1
|
)%
|
|
3,358
|
|
|
3
|
%
|
|||
Total assets under management
|
|
$
|
60,311
|
|
|
$
|
53,890
|
|
|
12
|
%
|
|
$
|
49,933
|
|
|
8
|
%
|
Investment Managers:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
63
|
|
|
$
|
39
|
|
|
62
|
%
|
|
$
|
2
|
|
|
N/A
|
|
Collective trust fund programs
|
|
13,873
|
|
|
9,978
|
|
|
39
|
%
|
|
7,687
|
|
|
30
|
%
|
|||
Liquidity funds
|
|
276
|
|
|
199
|
|
|
39
|
%
|
|
467
|
|
|
(57
|
)%
|
|||
Total assets under management
|
|
$
|
14,212
|
|
|
$
|
10,216
|
|
|
39
|
%
|
|
$
|
8,156
|
|
|
25
|
%
|
Client proprietary assets under administration
|
|
233,024
|
|
|
235,096
|
|
|
(1
|
)%
|
|
225,045
|
|
|
4
|
%
|
|||
Total assets
|
|
$
|
247,236
|
|
|
$
|
245,312
|
|
|
1
|
%
|
|
$
|
233,201
|
|
|
5
|
%
|
Investments in New Businesses:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
537
|
|
|
$
|
545
|
|
|
(1
|
)%
|
|
$
|
520
|
|
|
5
|
%
|
Liquidity funds
|
|
35
|
|
|
47
|
|
|
(26
|
)%
|
|
73
|
|
|
(36
|
)%
|
|||
Total assets under management
|
|
$
|
572
|
|
|
$
|
592
|
|
|
(3
|
)%
|
|
$
|
593
|
|
|
—
|
%
|
LSV:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
57,935
|
|
|
$
|
58,478
|
|
|
(1
|
)%
|
|
$
|
53,345
|
|
|
10
|
%
|
Total:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and fixed-income programs
|
|
$
|
162,164
|
|
|
$
|
152,122
|
|
|
7
|
%
|
|
$
|
138,204
|
|
|
10
|
%
|
Collective trust fund programs
|
|
15,195
|
|
|
12,543
|
|
|
21
|
%
|
|
11,226
|
|
|
12
|
%
|
|||
Liquidity funds
|
|
11,028
|
|
|
10,814
|
|
|
2
|
%
|
|
11,131
|
|
|
(3
|
)%
|
|||
Total assets under management
|
|
$
|
188,387
|
|
|
$
|
175,479
|
|
|
7
|
%
|
|
$
|
160,561
|
|
|
9
|
%
|
Client proprietary assets under administration
|
|
243,897
|
|
|
245,768
|
|
|
(1
|
)%
|
|
235,952
|
|
|
4
|
%
|
|||
Total assets under management and administration
|
|
$
|
432,284
|
|
|
$
|
421,247
|
|
|
3
|
%
|
|
$
|
396,513
|
|
|
6
|
%
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
Percent
Change
|
|
2010
|
|
Percent
Change
|
||||||||
Private Banks:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
$
|
364,788
|
|
|
$
|
348,122
|
|
|
5
|
%
|
|
$
|
346,668
|
|
|
—
|
%
|
Expenses
|
|
357,001
|
|
|
339,339
|
|
|
5
|
%
|
|
310,633
|
|
|
9
|
%
|
|||
Operating Profit
|
|
$
|
7,787
|
|
|
$
|
8,783
|
|
|
(11
|
)%
|
|
$
|
36,035
|
|
|
(76
|
)%
|
Operating Margin
|
|
2
|
%
|
|
3
|
%
|
|
|
|
10
|
%
|
|
|
|||||
Investment Advisors:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
202,703
|
|
|
189,780
|
|
|
7
|
%
|
|
183,378
|
|
|
3
|
%
|
|||
Expenses
|
|
120,146
|
|
|
110,438
|
|
|
9
|
%
|
|
110,388
|
|
|
—
|
%
|
|||
Operating Profit
|
|
$
|
82,557
|
|
|
$
|
79,342
|
|
|
4
|
%
|
|
$
|
72,990
|
|
|
9
|
%
|
Operating Margin
|
|
41
|
%
|
|
42
|
%
|
|
|
|
40
|
%
|
|
|
|||||
Institutional Investors:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
227,889
|
|
|
210,027
|
|
|
9
|
%
|
|
206,531
|
|
|
2
|
%
|
|||
Expenses
|
|
116,546
|
|
|
106,585
|
|
|
9
|
%
|
|
106,934
|
|
|
—
|
%
|
|||
Operating Profit
|
|
$
|
111,343
|
|
|
$
|
103,442
|
|
|
8
|
%
|
|
$
|
99,597
|
|
|
4
|
%
|
Operating Margin
|
|
49
|
%
|
|
49
|
%
|
|
|
|
48
|
%
|
|
|
|||||
Investment Managers:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
193,484
|
|
|
177,975
|
|
|
9
|
%
|
|
160,159
|
|
|
11
|
%
|
|||
Expenses
|
|
127,525
|
|
|
115,963
|
|
|
10
|
%
|
|
103,421
|
|
|
12
|
%
|
|||
Operating Profit
|
|
$
|
65,959
|
|
|
$
|
62,012
|
|
|
6
|
%
|
|
$
|
56,738
|
|
|
9
|
%
|
Operating Margin
|
|
34
|
%
|
|
35
|
%
|
|
|
|
35
|
%
|
|
|
|||||
Investments in New Businesses:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
3,658
|
|
|
3,823
|
|
|
(4
|
)%
|
|
4,099
|
|
|
(7
|
)%
|
|||
Expenses
|
|
14,954
|
|
|
11,559
|
|
|
29
|
%
|
|
12,676
|
|
|
(9
|
)%
|
|||
Operating Loss
|
|
$
|
(11,296
|
)
|
|
$
|
(7,736
|
)
|
|
N/A
|
|
|
$
|
(8,577
|
)
|
|
N/A
|
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
Percent
Change
|
|
2010
|
|
Percent
Change
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investment processing and software servicing fees
|
|
$
|
233,790
|
|
|
$
|
220,684
|
|
|
6
|
%
|
|
$
|
229,247
|
|
|
(4
|
)%
|
Asset management, administration & distribution fees
|
|
103,712
|
|
|
96,531
|
|
|
7
|
%
|
|
87,288
|
|
|
11
|
%
|
|||
Transaction-based and trade execution fees
|
|
27,286
|
|
|
30,907
|
|
|
(12
|
)%
|
|
30,133
|
|
|
3
|
%
|
|||
Total revenues
|
|
$
|
364,788
|
|
|
$
|
348,122
|
|
|
5
|
%
|
|
$
|
346,668
|
|
|
—
|
%
|
•
|
Increased recurring investment processing fees from new investment processing clients;
|
•
|
Increased one-time project revenue from new and existing bank clients;
|
•
|
Increased fees earned on our mutual fund trading solution due to an increase in assets processed on the system from new and existing clients;
|
•
|
Increased investment management fees from existing international clients due to higher average assets under management from improved capital markets; partially offset by
|
•
|
Lower recurring investment processing fees due to price reductions provided to existing clients that recontracted for longer periods and client losses; as well as
|
•
|
Decreased transaction-based fees due to lower trading volumes across the majority of our bank clients.
|
•
|
Increased investment management fees from existing international clients due to higher average assets under management from improved capital markets in late 2010 into the first half of 2011, positive cash flows and favorable exchange rates; and
|
•
|
Increased net investment processing fees from new clients implemented onto GWP; partially offset by
|
•
|
Lower recurring investment processing fees due to price reductions provided to existing clients that recontracted for longer periods, lower transaction volumes and client losses occurring in 2010; and
|
•
|
Lower one-time project-related investment processing fees.
|
•
|
Increased amortization expense related to GWP due to continued releases and the discontinuation of specific functionality within the platform resulting in $2.7 million of expense recognized in the third quarter 2012 for the remaining net book value of the component;
|
•
|
Increased direct expenses associated with increased investment management fees from existing international clients;
|
•
|
Increased sales compensation expense due to new business activity and other personnel costs, mainly salary, benefits and incentive compensation;
|
•
|
Increased non-capitalized development costs, mainly personnel costs, relating to GWP; and
|
•
|
Increased operational costs, mainly personnel and third party service provider costs, for servicing new and existing clients implemented onto GWP; partially offset by
|
•
|
An increase in revenues; and
|
•
|
Decreased direct expenses associated with the decreased trade execution fees.
|
•
|
Increased non-capitalized development costs, mainly consulting fees, and amortization expense relating to GWP;
|
•
|
Increased operational costs, mainly personnel and data processing and computer-related expenses, for servicing new and existing clients implemented onto GWP; and
|
•
|
Increased direct expenses associated with increased investment management fees from existing international clients; partially offset by
|
•
|
Decreased stock-based compensation costs due to the acceleration in 2010, net of the reversal of stock-based compensation costs in the third quarter 2010;
|
•
|
Decreased one-time termination costs associated with a workforce reduction in first quarter 2010; and
|
•
|
An increase in revenues.
|
•
|
Increased investment management fees from existing clients due to higher average assets under management caused by market appreciation during 2012 and an increase in net cash flows from new and existing advisors in both our mutual fund and managed account solutions,
|
•
|
An increase in the average basis points earned on assets due to the increase in average assets under management; partially offset by
|
•
|
Lower fees earned from our collective trust fund offering due to the closing of the SEI Stable Asset Fund during 2012.
|
•
|
Increased investment management fees from existing clients due to higher average assets under management caused by improved capital markets during the latter half of 2010 and through the first half of 2011 and an increase in net cash flows in 2011 from new advisors.
|
•
|
An increase in revenues;
|
•
|
A decrease in direct costs associated with the closing of the SEI Stable Asset Fund; partially offset by
|
•
|
Increased amortization expense relating to GWP as well as spending associated with building the necessary functionality and infrastructure for servicing financial institutions and investment advisors in the United States; and
|
•
|
Increased sales compensation expense due to new business activity and other personnel costs, mainly salary, benefits and incentive compensation.
|
•
|
An increase in revenues;
|
•
|
Decreased stock-based compensation costs due to the acceleration in 2010, net of the reversal of stock-based compensation costs in the third quarter 2010; and
|
•
|
A charge of approximately $1.0 million related to a processing error in third quarter 2010; partially offset by
|
•
|
Increased non-capitalized development costs and amortization expense relating to GWP as well as spending associated with building the necessary functionality and infrastructure for servicing financial institutions and investment advisors in the United States; and
|
•
|
Increased compensation and other personnel expenses.
|
•
|
Increased investment management fees from existing clients due to higher average assets under management caused by improved capital markets as well as additional asset funding from existing clients; and
|
•
|
Asset funding from new sales of our retirement and not-for-profit solutions; partially offset by
|
•
|
Client losses and lower basis points earned on assets under management.
|
•
|
Increased investment management fees from existing clients due to higher average assets under management caused by improved capital markets during the latter half of 2010 and through the first half of 2011 as well as additional asset funding from existing clients; and
|
•
|
Asset funding from new sales of our retirement and not-for-profit solutions; partially offset by client losses.
|
•
|
An increase in revenues; partially offset by
|
•
|
Increased sales compensation expense due to new business activity and other personnel costs, mainly salary, benefits and incentive compensation; and
|
•
|
Increased direct expenses associated with higher investment management fees.
|
•
|
An increase in revenues;
|
•
|
Decreased stock-based compensation costs due to the acceleration in 2010, net of the reversal of stock-based compensation costs in the third quarter 2010; and
|
•
|
Decreased discretionary marketing and promotion expenses; partially offset by
|
•
|
Increased compensation and other personnel expenses; and
|
•
|
Increased direct expenses associated with higher investment management fees.
|
•
|
Cash flows from new clients of our hedge funds and collective trust fund solutions;
|
•
|
Net positive cash flows from existing hedge fund clients due to new funding along with higher valuations from capital market increases; and
|
•
|
Increased accounts from our separately managed account program due to new clients and existing clients involved in mergers; partially offset by client losses.
|
•
|
Cash flows from new clients of our hedge funds and collective trust fund solutions;
|
•
|
Net positive cash flows from existing hedge fund clients mainly due to higher valuations from capital market increases mostly during the first half of 2011; and
|
•
|
Increased accounts from our separately managed account program due to new clients and existing clients involved in mergers; partially offset by client losses.
|
•
|
An increase in revenues; partially offset by
|
•
|
Increased personnel expenses and other operational costs to service new clients of our hedge fund and separately managed accounts solutions.
|
•
|
An increase in revenues; and
|
•
|
Decreased stock-based compensation costs due to the acceleration in 2010, net of the reversal of stock-based compensation costs in the third quarter 2010; partially offset by
|
•
|
Increased personnel expenses, technology and other operational costs to service new clients of our hedge fund and separately managed accounts solutions.
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Net gain from investments
|
|
$
|
14,067
|
|
|
$
|
3,360
|
|
|
$
|
48,533
|
|
Interest and dividend income
|
|
5,696
|
|
|
5,829
|
|
|
6,326
|
|
|||
Interest expense
|
|
(504
|
)
|
|
(585
|
)
|
|
(1,478
|
)
|
|||
Other expense, net
|
|
—
|
|
|
—
|
|
|
(590
|
)
|
|||
Equity in earnings of unconsolidated affiliates
|
|
98,671
|
|
|
105,818
|
|
|
99,457
|
|
|||
Total other income and expense items, net
|
|
$
|
117,930
|
|
|
$
|
114,422
|
|
|
$
|
152,248
|
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Gains from SIV securities
|
|
$
|
13,240
|
|
|
$
|
3,390
|
|
|
$
|
44,247
|
|
Net realized and unrealized gains (losses) from marketable securities
|
|
1,123
|
|
|
(25
|
)
|
|
1,214
|
|
|||
Other (losses) gains
|
|
(296
|
)
|
|
(5
|
)
|
|
3,072
|
|
|||
Net gain from investments
|
|
$
|
14,067
|
|
|
$
|
3,360
|
|
|
$
|
48,533
|
|
|
Stock-Based
Compensation
Expense
|
||
|
|
||
2013
|
$
|
18,274
|
|
2014
|
17,978
|
|
|
2015
|
6,708
|
|
|
2016
|
3,711
|
|
|
2017
|
3,593
|
|
|
|
$
|
50,264
|
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Net cash provided by operating activities
|
|
$
|
257,490
|
|
|
$
|
256,962
|
|
|
$
|
229,326
|
|
Net cash provided by (used in) investing activities
|
|
16,627
|
|
|
(31,950
|
)
|
|
(41,475
|
)
|
|||
Net cash used in financing activities
|
|
(242,856
|
)
|
|
(300,318
|
)
|
|
(282,436
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
31,261
|
|
|
(75,306
|
)
|
|
(94,585
|
)
|
|||
Cash and cash equivalents, beginning of year
|
|
420,986
|
|
|
496,292
|
|
|
590,877
|
|
|||
Cash and cash equivalents, end of year
|
|
$
|
452,247
|
|
|
$
|
420,986
|
|
|
$
|
496,292
|
|
•
|
Purchases, sales and maturities of marketable securities.
We had cash outflows of
$33.7 million
for the purchase of marketable securities in
2012
as compared to
$74.0 million
in
2011
. Marketable securities purchased in
2012
primarily consisted of investments in short-term U.S. government agency and commercial paper securities through SIDCO's cash management program and investments for the start-up of new investment products. Marketable securities purchased in 2011 consisted of investments in short-term U.S. government agency and commercial paper securities by SIDCO, additional GNMA securities to satisfy applicable regulatory requirements of SPTC and investments for the start-up of new investment products. We had cash inflows of
$108.2 million
from sales and maturities of marketable securities, including principal prepayments received from our GNMA and SIV securities, in
2012
as compared to
$99.8 million
in
2011
. Marketable securities sold in
2012
and
2011
primarily include the proceeds from the sales of SIV securities.
|
•
|
The capitalization of costs incurred in developing computer software.
We will continue the development of GWP through a series of releases to expand the functionality of the platform. We capitalized
$31.0 million
of software development costs in
2012
as compared to
$41.0 million
in
2011
. Amounts capitalized in
2012
and
2011
include costs for significant enhancements and upgrades to the platform.
|
•
|
Capital expenditures.
Our capital expenditures in
2012
and
2011
primarily include purchased software and equipment for our data center operations.
|
•
|
The repurchase of our common stock.
Our Board of Directors has authorized the repurchase of our common stock through multiple authorizations. Currently, there is no expiration date for our common stock repurchase program. The following table lists information regarding repurchases of our common stock during
2012
,
2011
, and
2010
:
|
Year
|
|
Total Number of
Shares Repurchased
|
|
Average Price
Paid
per Share
|
|
Total Cost
|
|||||
2012
|
|
7,528,000
|
|
|
$
|
20.62
|
|
|
$
|
155,264
|
|
2011
|
|
11,109,000
|
|
|
19.01
|
|
|
211,165
|
|
||
2010
|
|
5,814,000
|
|
|
20.81
|
|
|
120,982
|
|
•
|
Principal payments of our debt.
Principal payments in 2011 include payments of $95.0 million to repay the remaining balance of our former credit facility. We fully repaid our former credit facility with the final payment of $20.0 million made in December 2011 and had no debt outstanding during 2012 (See Note 7).
|
•
|
Dividend payments.
Our Board of Directors declared a semi-annual cash dividend of
$0.16
per share as well as a one-time, special cash dividend of
$0.32
per share on
December 11, 2012
. The semi-annual and special dividends were paid on
December 28, 2012
for a total of
$82.7 million
. The following table lists information regarding cash dividends paid during
2012
,
2011
, and
2010
:
|
Year
|
|
Cash Dividends Paid
|
|
Cash Dividends
Paid
per Share
|
||||
2012
|
|
$
|
135,335
|
|
|
$
|
0.78
|
|
2011
|
|
22,041
|
|
|
0.12
|
|
||
2010
|
|
54,634
|
|
|
0.29
|
|
|
|
Total
|
|
2013
|
|
2014
|
|
2015 to 2016
|
|
2017 and thereafter
|
||||||||||
Line of credit (a)
|
|
$
|
1,862
|
|
|
$
|
456
|
|
|
$
|
456
|
|
|
$
|
912
|
|
|
$
|
38
|
|
Operating leases and maintenance agreements (b)
|
|
35,591
|
|
|
15,138
|
|
|
6,283
|
|
|
4,977
|
|
|
9,193
|
|
|||||
Other commitments (c)
|
|
5,291
|
|
|
5,291
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
42,744
|
|
|
$
|
20,885
|
|
|
$
|
6,739
|
|
|
$
|
5,889
|
|
|
$
|
9,231
|
|
(a)
|
Amounts include estimated commitment fees for our credit facility. See Note 7 to the Consolidated Financial Statements.
|
(b)
|
See Note 11 to the Consolidated Financial Statements.
|
(c)
|
Amount includes the portion of uncertain tax liabilities classified as a current liability. The actual cash payment associated with these commitments may differ. See Note 12 to the Consolidated Financial Statements.
|
|
Page
|
Index to Financial Statements:
|
|
|
|
Report of Independent Registered Public Accounting Firm
|
|
Consolidated Balance Sheets — December 31, 2012 and 2011
|
|
Consolidated Statements of Operations — For the years ended December 31, 2012, 2011 and 2010
|
|
Consolidated Statements of Comprehensive Income — For the years ended December 31, 2012, 2011 and 2010
|
|
Consolidated Statements of Changes in Equity — For the years ended December 31, 2012, 2011 and 2010
|
|
Consolidated Statements of Cash Flows — For the years ended December 31, 2012, 2011 and 2010
|
|
Notes to Consolidated Financial Statements
|
|
Schedule II — Valuation and Qualifying Accounts and Reserves - For the years ended December 31, 2012, 2011 and 2010
|
|
|
Consolidated Balance Sheets
(In thousands)
|
SEI Investments Company
and Subsidiaries
|
|
|||||
|
|
|
|
|
|
||||
|
|
December 31,
|
2012
|
|
2011
|
||||
Assets
|
|
Current Assets:
|
|
|
|
||||
|
|
Cash and cash equivalents
|
$
|
452,247
|
|
|
$
|
420,986
|
|
|
|
Restricted cash
|
6,000
|
|
|
6,000
|
|
||
|
|
Receivables from regulated investment companies
|
31,084
|
|
|
25,800
|
|
||
|
|
Receivables, net of allowance for doubtful accounts of $805 and $924 (Note 4)
|
171,734
|
|
|
142,109
|
|
||
|
|
Deferred income taxes, net
|
2,012
|
|
|
1,150
|
|
||
|
|
Securities owned
|
20,088
|
|
|
20,949
|
|
||
|
|
Other current assets
|
18,239
|
|
|
17,957
|
|
||
|
|
Total Current Assets
|
701,404
|
|
|
634,951
|
|
||
|
|
Property and Equipment
, net of accumulated depreciation of $201,418 and $182,453 (Note 4)
|
127,581
|
|
|
129,548
|
|
||
|
|
Capitalized Software,
net of accumulated amortization of $149,747 and $117,100
|
307,490
|
|
|
309,133
|
|
||
|
|
Investments Available for Sale
(Note 6)
|
75,869
|
|
|
83,008
|
|
||
|
|
Trading Securities
(Note 6)
|
5,909
|
|
|
56,325
|
|
||
|
|
Investment in Unconsolidated Affiliates
(Note 2)
|
77,398
|
|
|
68,454
|
|
||
|
|
Other Assets,
net
|
14,173
|
|
|
13,140
|
|
||
|
|
Total Assets
|
$
|
1,309,824
|
|
|
$
|
1,294,559
|
|
|
|
Consolidated Balance Sheets
(In thousands, except par value)
|
|
SEI Investments Company
and Subsidiaries
|
|
|||||
|
|
|
|
|
|
|
||||
|
|
December 31,
|
|
2012
|
|
2011
|
||||
Liabilities
and Equity
|
|
Current Liabilities:
|
|
|
|
|
||||
|
|
Accounts payable
|
|
$
|
11,248
|
|
|
$
|
1,999
|
|
|
|
Accrued liabilities (Note 4)
|
|
138,305
|
|
|
147,044
|
|
||
|
|
Deferred revenue
|
|
2,452
|
|
|
2,030
|
|
||
|
|
Total Current Liabilities
|
|
152,005
|
|
|
151,073
|
|
||
|
|
Deferred Income Taxes
|
|
93,458
|
|
|
93,751
|
|
||
|
|
Other Long-term Liabilities
(Note 12)
|
|
7,032
|
|
|
8,276
|
|
||
|
|
Total Liabilities
|
|
252,495
|
|
|
253,100
|
|
||
|
|
Commitments and Contingencies
(Note 11)
|
|
|
|
|
||||
|
|
Equity:
|
|
|
|
|
||||
|
|
SEI Investments Shareholders’ Equity:
|
|
|
|
|
||||
|
|
Series Preferred stock, $.05 par value, 50 shares authorized; no shares issued and outstanding
|
|
—
|
|
|
—
|
|
||
|
|
Common stock, $.01 par value, 750,000 shares authorized; 172,220 and 176,506 shares issued and outstanding
|
|
1,722
|
|
|
1,765
|
|
||
|
|
Capital in excess of par value
|
|
624,305
|
|
|
577,949
|
|
||
|
|
Retained earnings
|
|
405,914
|
|
|
443,702
|
|
||
|
|
Accumulated other comprehensive income, net
|
|
6,239
|
|
|
1,900
|
|
||
|
|
Total SEI Investments Shareholders’ Equity
|
|
1,038,180
|
|
|
1,025,316
|
|
||
|
|
Noncontrolling Interest
|
|
19,149
|
|
|
16,143
|
|
||
|
|
Total Equity
|
|
1,057,329
|
|
|
1,041,459
|
|
||
|
|
Total Liabilities and Equity
|
|
$
|
1,309,824
|
|
|
$
|
1,294,559
|
|
|
|
|
Consolidated Statements of Operations
|
|
SEI Investments Company
|
(In thousands, except per-share data)
|
|
and Subsidiaries
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Asset management, administration and distribution fees
|
|
$
|
723,630
|
|
|
$
|
669,788
|
|
|
$
|
628,535
|
|
Information processing and software servicing fees
|
|
236,190
|
|
|
222,417
|
|
|
231,529
|
|
|||
Transaction-based and trade execution fees
|
|
32,702
|
|
|
37,522
|
|
|
40,771
|
|
|||
Total revenues
|
|
992,522
|
|
|
929,727
|
|
|
900,835
|
|
|||
Expenses:
|
|
|
|
|
|
|
||||||
Subadvisory, distribution and other asset management costs
|
|
106,048
|
|
|
103,134
|
|
|
101,722
|
|
|||
Software royalties and other information processing costs
|
|
26,722
|
|
|
27,437
|
|
|
24,419
|
|
|||
Brokerage commissions
|
|
23,889
|
|
|
27,022
|
|
|
28,882
|
|
|||
Compensation, benefits and other personnel
|
|
335,296
|
|
|
289,445
|
|
|
269,165
|
|
|||
Stock-based compensation
|
|
15,736
|
|
|
14,112
|
|
|
26,783
|
|
|||
Consulting, outsourcing and professional fees
|
|
109,828
|
|
|
113,171
|
|
|
89,033
|
|
|||
Data processing and computer related
|
|
46,617
|
|
|
47,003
|
|
|
41,064
|
|
|||
Facilities, supplies and other costs
|
|
60,976
|
|
|
55,579
|
|
|
56,284
|
|
|||
Amortization
|
|
33,258
|
|
|
27,288
|
|
|
24,048
|
|
|||
Depreciation
|
|
22,586
|
|
|
21,471
|
|
|
21,902
|
|
|||
Total expenses
|
|
780,956
|
|
|
725,662
|
|
|
683,302
|
|
|||
Income from operations
|
|
211,566
|
|
|
204,065
|
|
|
217,533
|
|
|||
Net gain from investments
|
|
14,067
|
|
|
3,360
|
|
|
48,533
|
|
|||
Interest and dividend income
|
|
5,696
|
|
|
5,829
|
|
|
6,326
|
|
|||
Interest expense
|
|
(504
|
)
|
|
(585
|
)
|
|
(1,478
|
)
|
|||
Other expense, net
|
|
—
|
|
|
—
|
|
|
(590
|
)
|
|||
Equity in earnings of unconsolidated affiliates
|
|
98,671
|
|
|
105,818
|
|
|
99,457
|
|
|||
Net income before income taxes
|
|
329,496
|
|
|
318,487
|
|
|
369,781
|
|
|||
Income taxes
|
|
121,462
|
|
|
111,837
|
|
|
136,461
|
|
|||
Net income
|
|
$
|
208,034
|
|
|
$
|
206,650
|
|
|
$
|
233,320
|
|
Less: Net income attributable to the noncontrolling interest
|
|
(1,186
|
)
|
|
(1,691
|
)
|
|
(1,633
|
)
|
|||
Net income attributable to SEI Investments Company
|
|
$
|
206,848
|
|
|
$
|
204,959
|
|
|
$
|
231,687
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per common share
|
|
$
|
1.19
|
|
|
$
|
1.12
|
|
|
$
|
1.23
|
|
Shares used to compute basic earnings per share
|
|
174,295
|
|
|
182,547
|
|
|
188,468
|
|
|||
Diluted earnings per common share
|
|
$
|
1.18
|
|
|
$
|
1.11
|
|
|
$
|
1.22
|
|
Shares used to compute diluted earnings per share
|
|
175,872
|
|
|
184,127
|
|
|
190,321
|
|
|||
Dividends declared per common share
|
|
$
|
0.63
|
|
|
$
|
0.27
|
|
|
$
|
0.20
|
|
|
|
|
Consolidated Statements of Comprehensive Income
|
|
SEI Investments Company
|
(In thousands)
|
|
and Subsidiaries
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Net income
|
|
$
|
208,034
|
|
|
$
|
206,650
|
|
|
$
|
233,320
|
|
Other comprehensive gain (loss), net of tax:
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
|
5,904
|
|
|
(3,195
|
)
|
|
2,205
|
|
|||
Unrealized holding gain on investments:
|
|
|
|
|
|
|
||||||
Unrealized holding gains during the period, net of income taxes of $86, $811 and $486
|
|
341
|
|
|
1,369
|
|
|
484
|
|
|||
Less: reclassification adjustment for gains realized in net income, net of income taxes of $50, $77 and $56
|
|
(86
|
)
|
|
(134
|
)
|
|
(105
|
)
|
|||
Total other comprehensive gain (loss), net of taxes
|
|
6,159
|
|
|
(1,960
|
)
|
|
2,584
|
|
|||
Comprehensive income
|
|
214,193
|
|
|
204,690
|
|
|
235,904
|
|
|||
Less: Comprehensive income attributable to noncontrolling interest
|
|
(3,006
|
)
|
|
(988
|
)
|
|
(2,318
|
)
|
|||
Comprehensive income attributable to SEI Investments
|
|
$
|
211,187
|
|
|
$
|
203,702
|
|
|
$
|
233,586
|
|
|
|
|
Consolidated Statements of Changes in Equity
|
|
SEI Investments Company
|
(In thousands)
|
|
and Subsidiaries
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Shares of Common Stock
|
|
|
|
|
|
|
||||||
Beginning balance
|
|
176,506
|
|
|
186,141
|
|
|
190,208
|
|
|||
Purchase and retirement of common stock
|
|
(7,528
|
)
|
|
(11,109
|
)
|
|
(5,814
|
)
|
|||
Issuance of common stock under the employee stock purchase plan
|
|
105
|
|
|
110
|
|
|
114
|
|
|||
Issuance of common stock upon exercise of stock options
|
|
3,137
|
|
|
1,364
|
|
|
1,633
|
|
|||
Ending balance
|
|
172,220
|
|
|
176,506
|
|
|
186,141
|
|
|||
|
|
|
|
|
|
|
||||||
Common Stock
|
|
|
|
|
|
|
||||||
Beginning balance
|
|
$
|
1,765
|
|
|
$
|
1,861
|
|
|
$
|
1,902
|
|
Purchase and retirement of common stock
|
|
(75
|
)
|
|
(111
|
)
|
|
(58
|
)
|
|||
Issuance of common stock under the employee stock purchase plan
|
|
1
|
|
|
1
|
|
|
1
|
|
|||
Issuance of common stock upon exercise of stock options
|
|
31
|
|
|
14
|
|
|
16
|
|
|||
Ending balance
|
|
$
|
1,722
|
|
|
$
|
1,765
|
|
|
$
|
1,861
|
|
|
|
|
|
|
|
|
||||||
Capital In Excess of Par Value
|
|
|
|
|
|
|
||||||
Beginning balance
|
|
$
|
577,949
|
|
|
$
|
565,393
|
|
|
$
|
522,080
|
|
Purchase and retirement of common stock
|
|
(19,370
|
)
|
|
(27,196
|
)
|
|
(13,426
|
)
|
|||
Issuance of common stock under the employee stock purchase plan
|
|
1,794
|
|
|
1,892
|
|
|
1,902
|
|
|||
Issuance of common stock upon exercise of stock options
|
|
47,613
|
|
|
22,314
|
|
|
26,177
|
|
|||
Stock-based compensation
|
|
15,736
|
|
|
14,112
|
|
|
26,783
|
|
|||
Tax benefit on stock options exercised
|
|
583
|
|
|
1,434
|
|
|
1,877
|
|
|||
Ending balance
|
|
$
|
624,305
|
|
|
$
|
577,949
|
|
|
$
|
565,393
|
|
|
|
|
|
|
|
|
||||||
Retained Earnings
|
|
|
|
|
|
|
||||||
Beginning balance
|
|
$
|
443,702
|
|
|
$
|
471,159
|
|
|
$
|
384,483
|
|
Net income attributable to SEI Investments Company
|
|
206,848
|
|
|
204,959
|
|
|
231,687
|
|
|||
Purchase and retirement of common stock
|
|
(135,819
|
)
|
|
(183,858
|
)
|
|
(107,498
|
)
|
|||
Dividends declared
|
|
(108,817
|
)
|
|
(48,558
|
)
|
|
(37,513
|
)
|
|||
Ending balance
|
|
$
|
405,914
|
|
|
$
|
443,702
|
|
|
$
|
471,159
|
|
|
|
|
|
|
|
|
||||||
Accumulated Other Comprehensive Income
|
|
|
|
|
|
|
||||||
Beginning balance
|
|
$
|
1,900
|
|
|
$
|
3,157
|
|
|
$
|
1,258
|
|
Other comprehensive income (loss)
|
|
4,339
|
|
|
(1,257
|
)
|
|
1,899
|
|
|||
Ending balance
|
|
$
|
6,239
|
|
|
$
|
1,900
|
|
|
$
|
3,157
|
|
|
|
|
|
|
|
|
||||||
Total SEI Investments Shareholders’ Equity
|
|
$
|
1,038,180
|
|
|
$
|
1,025,316
|
|
|
$
|
1,041,570
|
|
|
|
|
|
|
|
|
||||||
Noncontrolling interest
|
|
$
|
19,149
|
|
|
$
|
16,143
|
|
|
$
|
15,155
|
|
|
|
|
|
|
|
|
||||||
Total Equity
|
|
$
|
1,057,329
|
|
|
$
|
1,041,459
|
|
|
$
|
1,056,725
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
SEI Investments Company
|
(In thousands)
|
|
and Subsidiaries
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
208,034
|
|
|
$
|
206,650
|
|
|
$
|
233,320
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Depreciation
|
|
22,586
|
|
|
21,471
|
|
|
21,902
|
|
|||
Amortization
|
|
33,258
|
|
|
27,288
|
|
|
24,048
|
|
|||
Equity in earnings of unconsolidated affiliates
|
|
(98,671
|
)
|
|
(105,818
|
)
|
|
(99,457
|
)
|
|||
Distributions received from unconsolidated affiliate
|
|
92,227
|
|
|
109,273
|
|
|
72,060
|
|
|||
Stock-based compensation
|
|
15,736
|
|
|
14,112
|
|
|
26,783
|
|
|||
Provision for losses on receivables
|
|
(119
|
)
|
|
(271
|
)
|
|
(1,004
|
)
|
|||
Deferred income tax expense
|
|
(1,191
|
)
|
|
1,001
|
|
|
6,461
|
|
|||
Net realized gains from investments
|
|
(14,067
|
)
|
|
(3,360
|
)
|
|
(48,533
|
)
|
|||
Change in other long-term liabilities
|
|
(1,244
|
)
|
|
2,631
|
|
|
(81
|
)
|
|||
Change in other assets
|
|
(619
|
)
|
|
315
|
|
|
(379
|
)
|
|||
Other
|
|
6,680
|
|
|
(3,148
|
)
|
|
2,852
|
|
|||
Change in current assets and liabilities:
|
|
|
|
|
|
|
||||||
Decrease (increase) in:
|
|
|
|
|
|
|
||||||
Restricted cash for broker-dealer operations
|
|
—
|
|
|
—
|
|
|
16,000
|
|
|||
Receivables from regulated investment companies
|
|
(5,284
|
)
|
|
3,482
|
|
|
(1,148
|
)
|
|||
Receivables
|
|
(30,852
|
)
|
|
(11,474
|
)
|
|
(11,032
|
)
|
|||
Other current assets
|
|
(282
|
)
|
|
(1,689
|
)
|
|
(1,101
|
)
|
|||
Increase (decrease) in:
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
9,249
|
|
|
(2,583
|
)
|
|
1,734
|
|
|||
Accrued liabilities
|
|
21,627
|
|
|
(1,340
|
)
|
|
(13,847
|
)
|
|||
Deferred revenue
|
|
422
|
|
|
422
|
|
|
748
|
|
|||
Total adjustments
|
|
49,456
|
|
|
50,312
|
|
|
(3,994
|
)
|
|||
Net cash provided by operating activities
|
|
$
|
257,490
|
|
|
$
|
256,962
|
|
|
$
|
229,326
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
SEI Investments Company
|
(In thousands)
|
|
and Subsidiaries
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
||||||
Additions to restricted cash
|
|
—
|
|
|
(2,000
|
)
|
|
—
|
|
|||
Additions to property and equipment
|
|
(23,070
|
)
|
|
(12,271
|
)
|
|
(13,611
|
)
|
|||
Additions to capitalized software
|
|
(31,004
|
)
|
|
(40,954
|
)
|
|
(38,729
|
)
|
|||
Purchases of marketable securities
|
|
(33,662
|
)
|
|
(73,960
|
)
|
|
(39,085
|
)
|
|||
Prepayments and maturities of marketable securities
|
|
53,352
|
|
|
61,582
|
|
|
58,174
|
|
|||
Sales of marketable securities
|
|
54,830
|
|
|
38,247
|
|
|
28,859
|
|
|||
Purchases of other investments
|
|
(3,819
|
)
|
|
(7,500
|
)
|
|
—
|
|
|||
Sales of other investments
|
|
—
|
|
|
4,906
|
|
|
—
|
|
|||
LSV and LSV Employee Group cash balances, net (A)
|
|
—
|
|
|
—
|
|
|
(37,083
|
)
|
|||
Net cash provided by (used in) investing activities
|
|
16,627
|
|
|
(31,950
|
)
|
|
(41,475
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Payments on long-term debt
|
|
—
|
|
|
(95,000
|
)
|
|
(138,000
|
)
|
|||
Purchase and retirement of common stock
|
|
(157,543
|
)
|
|
(208,932
|
)
|
|
(119,775
|
)
|
|||
Proceeds from issuance of common stock
|
|
49,439
|
|
|
24,221
|
|
|
28,096
|
|
|||
Tax benefit on stock options exercised
|
|
583
|
|
|
1,434
|
|
|
1,877
|
|
|||
Payment of dividends
|
|
(135,335
|
)
|
|
(22,041
|
)
|
|
(54,634
|
)
|
|||
Net cash used in financing activities
|
|
(242,856
|
)
|
|
(300,318
|
)
|
|
(282,436
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
|
31,261
|
|
|
(75,306
|
)
|
|
(94,585
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cash and cash equivalents, beginning of year
|
|
420,986
|
|
|
496,292
|
|
|
590,877
|
|
|||
|
|
|
|
|
|
|
||||||
Cash and cash equivalents, end of year
|
|
$
|
452,247
|
|
|
$
|
420,986
|
|
|
$
|
496,292
|
|
|
|
|
|
|
|
|
||||||
Interest paid
|
|
$
|
367
|
|
|
$
|
559
|
|
|
$
|
1,488
|
|
Income taxes paid
|
|
$
|
113,160
|
|
|
$
|
116,483
|
|
|
$
|
145,553
|
|
|
|
|
|
|
|
|
||||||
Non-cash financing activities
|
|
|
|
|
|
|
||||||
Dividends declared but not paid
|
|
$
|
—
|
|
|
$
|
26,518
|
|
|
$
|
—
|
|
(A)
|
Cash balances, net of the partnership distribution payment received in January 2010, of LSV and LSV Employee Group at December 31, 2009 removed due to the deconsolidation of the accounts and operations of LSV and LSV Employee Group in January 2010.
|
|
|
|
Notes to Consolidated Financial Statements
|
|
SEI Investments Company
|
(all figures are in thousands except per-share data)
|
|
and Subsidiaries
|
|
|
For the Year Ended December 31, 2012
|
|||||||||
|
|
Net income
attributable
to SEI
(Numerator)
|
|
Shares
(Denominator)
|
|
Per-Share
Amount
|
|||||
Basic earnings per common share
|
|
$
|
206,848
|
|
|
174,295
|
|
|
$
|
1.19
|
|
Dilutive effect of stock options
|
|
—
|
|
|
1,577
|
|
|
|
|||
Diluted earnings per common share
|
|
$
|
206,848
|
|
|
175,872
|
|
|
$
|
1.18
|
|
|
|
For the Year Ended December 31, 2011
|
|||||||||
|
|
Net income
attributable
to SEI
(Numerator)
|
|
Shares
(Denominator)
|
|
Per-Share
Amount
|
|||||
Basic earnings per common share
|
|
$
|
204,959
|
|
|
182,547
|
|
|
$
|
1.12
|
|
Dilutive effect of stock options
|
|
—
|
|
|
1,580
|
|
|
|
|||
Diluted earnings per common share
|
|
$
|
204,959
|
|
|
184,127
|
|
|
$
|
1.11
|
|
|
|
For the Year Ended December 31, 2010
|
|||||||||
|
|
Net income
attributable
to SEI
(Numerator)
|
|
Shares
(Denominator)
|
|
Per-Share
Amount
|
|||||
Basic earnings per common share
|
|
$
|
231,687
|
|
|
188,468
|
|
|
$
|
1.23
|
|
Dilutive effect of stock options
|
|
—
|
|
|
1,853
|
|
|
|
|||
Diluted earnings per common share
|
|
$
|
231,687
|
|
|
190,321
|
|
|
$
|
1.22
|
|
Condensed Balance Sheets
December 31,
|
|
2012
|
|
2011
|
||||
Current assets
|
|
$
|
145,367
|
|
|
$
|
136,601
|
|
Non-current assets
|
|
3,120
|
|
|
3,880
|
|
||
Total assets
|
|
$
|
148,487
|
|
|
$
|
140,481
|
|
|
|
|
|
|
||||
Current liabilities
|
|
$
|
17,869
|
|
|
$
|
13,933
|
|
Partners’ capital
|
|
130,618
|
|
|
126,548
|
|
||
Total liabilities and partners’ capital
|
|
$
|
148,487
|
|
|
$
|
140,481
|
|
|
|
2012
|
|
2011
|
||||
Trade receivables
|
|
$
|
46,650
|
|
|
$
|
37,822
|
|
Fees earned, not billed
|
|
116,019
|
|
|
92,916
|
|
||
Other receivables
|
|
9,870
|
|
|
12,295
|
|
||
|
|
172,539
|
|
|
143,033
|
|
||
Less: Allowance for doubtful accounts
|
|
(805
|
)
|
|
(924
|
)
|
||
Receivables, net
|
|
$
|
171,734
|
|
|
$
|
142,109
|
|
|
|
2012
|
|
2011
|
||||
Buildings
|
|
$
|
137,751
|
|
|
$
|
136,949
|
|
Equipment
|
|
66,167
|
|
|
64,256
|
|
||
Land
|
|
9,929
|
|
|
9,929
|
|
||
Purchased software
|
|
91,468
|
|
|
77,971
|
|
||
Furniture and fixtures
|
|
18,535
|
|
|
17,999
|
|
||
Leasehold improvements
|
|
5,037
|
|
|
4,558
|
|
||
Construction in progress
|
|
112
|
|
|
339
|
|
||
|
|
328,999
|
|
|
312,001
|
|
||
Less: Accumulated depreciation
|
|
(201,418
|
)
|
|
(182,453
|
)
|
||
Property and Equipment, net
|
|
$
|
127,581
|
|
|
$
|
129,548
|
|
|
|
2012
|
|
2011
|
||||
Accrued employee compensation
|
|
$
|
63,996
|
|
|
$
|
48,112
|
|
Accrued employee benefits and other personnel
|
|
7,299
|
|
|
5,408
|
|
||
Accrued consulting, outsourcing and professional fees
|
|
16,676
|
|
|
17,477
|
|
||
Accrued brokerage fees
|
|
5,733
|
|
|
8,665
|
|
||
Accrued sub-advisory, distribution and other asset management fees
|
|
17,548
|
|
|
17,091
|
|
||
Accrued dividend payable
|
|
—
|
|
|
26,518
|
|
||
Other accrued liabilities
|
|
27,053
|
|
|
23,773
|
|
||
Accrued liabilities
|
|
$
|
138,305
|
|
|
$
|
147,044
|
|
|
|
|
|
December 31, 2012
|
||||||||||||
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
|
Total
|
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Equity available-for-sale securities
|
|
$
|
15,926
|
|
|
$
|
15,926
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fixed-income available-for-sale securities
|
|
59,943
|
|
|
—
|
|
|
59,943
|
|
|
—
|
|
||||
Fixed income securities owned
|
|
20,088
|
|
|
—
|
|
|
20,088
|
|
|
—
|
|
||||
Trading securities
|
|
5,909
|
|
|
4,706
|
|
|
—
|
|
|
1,203
|
|
||||
|
|
$
|
101,866
|
|
|
$
|
20,632
|
|
|
$
|
80,031
|
|
|
$
|
1,203
|
|
|
|
|
|
December 31, 2011
|
||||||||||||
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
|
Total
|
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Equity available-for-sale securities
|
|
$
|
8,010
|
|
|
$
|
8,010
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fixed-income available-for-sale securities
|
|
74,998
|
|
|
—
|
|
|
74,998
|
|
|
—
|
|
||||
Fixed income securities owned
|
|
20,949
|
|
|
—
|
|
|
20,949
|
|
|
—
|
|
||||
Trading securities
|
|
56,325
|
|
|
3,702
|
|
|
—
|
|
|
52,623
|
|
||||
|
|
$
|
160,282
|
|
|
$
|
11,712
|
|
|
$
|
95,947
|
|
|
$
|
52,623
|
|
|
Trading Securities
|
||
Balance, January 1, 2011
|
$
|
100,645
|
|
Purchases
|
1,215
|
|
|
Issuances
|
—
|
|
|
Principal prepayments and settlements
|
(17,921
|
)
|
|
Sales
|
(34,706
|
)
|
|
Total gains or (losses) (realized/unrealized):
|
|
||
Included in earnings
|
3,390
|
|
|
Included in other comprehensive income
|
—
|
|
|
Transfers in and out of Level 3
|
—
|
|
|
Balance, December 31, 2011
|
$
|
52,623
|
|
Purchases
|
13
|
|
|
Issuances
|
—
|
|
|
Principal prepayments and settlements
|
(10,728
|
)
|
|
Sales
|
(53,920
|
)
|
|
Total gains or (losses) (realized/unrealized):
|
|
||
Included in earnings
|
13,215
|
|
|
Included in other comprehensive income
|
—
|
|
|
Transfers in and out of Level 3
|
—
|
|
|
Balance, December 31, 2012
|
$
|
1,203
|
|
|
|
At December 31, 2012
|
||||||||||||||
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
(Losses)
|
|
Fair
Value
|
||||||||
SEI-sponsored mutual funds
|
|
$
|
12,953
|
|
|
$
|
376
|
|
|
$
|
(13
|
)
|
|
$
|
13,316
|
|
Equities and other mutual funds
|
|
2,610
|
|
|
—
|
|
|
—
|
|
|
2,610
|
|
||||
Debt securities
|
|
55,923
|
|
|
4,020
|
|
|
—
|
|
|
59,943
|
|
||||
|
|
$
|
71,486
|
|
|
$
|
4,396
|
|
|
$
|
(13
|
)
|
|
$
|
75,869
|
|
|
|
At December 31, 2011
|
||||||||||||||
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
(Losses)
|
|
Fair
Value
|
||||||||
SEI-sponsored mutual funds
|
|
$
|
8,243
|
|
|
$
|
48
|
|
|
$
|
(360
|
)
|
|
$
|
7,931
|
|
Other mutual funds
|
|
69
|
|
|
10
|
|
|
—
|
|
|
79
|
|
||||
Debt securities
|
|
70,604
|
|
|
4,394
|
|
|
—
|
|
|
74,998
|
|
||||
|
|
$
|
78,916
|
|
|
$
|
4,452
|
|
|
$
|
(360
|
)
|
|
$
|
83,008
|
|
|
|
At December 31, 2012
|
||||||||||||||
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
(Losses)
|
|
Fair
Value
|
||||||||
LSV-sponsored mutual funds
|
|
$
|
2,049
|
|
|
$
|
2,657
|
|
|
$
|
—
|
|
|
$
|
4,706
|
|
Other investments
|
|
1,228
|
|
|
—
|
|
|
(25
|
)
|
|
1,203
|
|
||||
|
|
$
|
3,277
|
|
|
$
|
2,657
|
|
|
$
|
(25
|
)
|
|
$
|
5,909
|
|
|
|
At December 31, 2011
|
||||||||||||||
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
(Losses)
|
|
Fair
Value
|
||||||||
SIV securities
|
|
$
|
146,363
|
|
|
$
|
—
|
|
|
$
|
(94,955
|
)
|
|
$
|
51,408
|
|
LSV-sponsored mutual funds
|
|
2,049
|
|
|
1,653
|
|
|
—
|
|
|
3,702
|
|
||||
Other investments
|
|
1,215
|
|
|
—
|
|
|
—
|
|
|
1,215
|
|
||||
|
|
$
|
149,627
|
|
|
$
|
1,653
|
|
|
$
|
(94,955
|
)
|
|
$
|
56,325
|
|
|
|
2012
|
|
2011
|
|
2010
|
|||
Expected term (in years)
|
|
6.75
|
|
|
7.65
|
|
|
7.45
|
|
Expected volatility
|
|
34.90
|
%
|
|
40.43
|
%
|
|
36.35
|
%
|
Expected dividend yield
|
|
1.46
|
%
|
|
1.90
|
%
|
|
0.84
|
%
|
Risk-free interest rate
|
|
1.03
|
%
|
|
1.66
|
%
|
|
3.01
|
%
|
|
|
2012
|
|
2011
|
|
2010
|
||||||
Stock-based compensation expense
|
|
$
|
15,736
|
|
|
$
|
14,112
|
|
|
$
|
26,783
|
|
Less: Deferred tax benefit
|
|
(5,650
|
)
|
|
(5,332
|
)
|
|
(10,068
|
)
|
|||
Stock-based compensation expense, net of tax
|
|
$
|
10,086
|
|
|
$
|
8,780
|
|
|
$
|
16,715
|
|
|
|
Number of
Shares
|
|
Weighted
Avg. Price
|
|||
Balance as of December 31, 2009
|
|
28,964,000
|
|
|
$
|
20.09
|
|
Granted
|
|
2,883,000
|
|
|
23.84
|
|
|
Exercised
|
|
(1,633,000
|
)
|
|
16.04
|
|
|
Expired or canceled
|
|
(2,333,000
|
)
|
|
23.68
|
|
|
Balance as of December 31, 2010
|
|
27,881,000
|
|
|
$
|
20.42
|
|
Granted
|
|
2,534,000
|
|
|
15.77
|
|
|
Exercised
|
|
(1,364,000
|
)
|
|
16.37
|
|
|
Expired or canceled
|
|
(2,008,000
|
)
|
|
22.07
|
|
|
Balance as of December 31, 2011
|
|
27,043,000
|
|
|
$
|
20.06
|
|
Granted
|
|
2,470,000
|
|
|
22.40
|
|
|
Exercised
|
|
(3,136,000
|
)
|
|
15.19
|
|
|
Expired or canceled
|
|
(767,000
|
)
|
|
22.61
|
|
|
Balance as of December 31, 2012
|
|
25,610,000
|
|
|
$
|
20.81
|
|
|
|
|
|
|
|||
Exercisable as of December 31, 2012
|
|
9,760,000
|
|
|
$
|
18.11
|
|
Available for future grant as of December 31, 2012
|
|
2,569,000
|
|
|
|
|
|
|
|
Options Outstanding at December 31, 2012
|
|
Options Exercisable at December 31, 2012
|
|||||||||||||||||
Range of
Exercise
Prices
(Per Share)
|
|
Number
of
Shares
|
|
Weighted
Average
Exercise
Price
(Per Share)
|
|
Weighted
Average
Remaining
Contractual
Life
(Years)
|
|
Number
of
Shares
|
|
Weighted
Average
Exercise
Price
(Per Share)
|
|
Weighted
Average
Remaining
Contractual
Life
(Years)
|
|||||||||||
$
|
14.62
|
|
-
|
15.52
|
|
5,065,000
|
|
|
$
|
14.69
|
|
|
4.36
|
|
3,153,000
|
|
|
$
|
14.73
|
|
|
3.36
|
|
15.77
|
|
-
|
17.65
|
|
5,999,000
|
|
|
16.87
|
|
|
7.81
|
|
1,647,000
|
|
|
17.63
|
|
|
6.92
|
|
|||
18.00
|
|
-
|
21.55
|
|
4,981,000
|
|
|
20.37
|
|
|
2.57
|
|
4,945,000
|
|
|
20.39
|
|
|
2.51
|
|
|||
22.45
|
|
-
|
23.86
|
|
5,143,000
|
|
|
23.19
|
|
|
8.94
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
27.03
|
|
-
|
32.49
|
|
4,422,000
|
|
|
30.88
|
|
|
4.46
|
|
15,000
|
|
|
27.03
|
|
|
4.00
|
|
|||
|
|
|
|
25,610,000
|
|
|
|
|
|
|
9,760,000
|
|
|
|
|
|
Year
|
|
Total Number of
Shares Repurchased
|
|
Total Cost
|
|||
2012
|
|
7,528,000
|
|
|
$
|
155,264
|
|
2011
|
|
11,109,000
|
|
|
211,165
|
|
|
2010
|
|
5,814,000
|
|
|
120,982
|
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Noncontrolling interest
|
|
|
|
|
|
|
||||||
Beginning balance
|
|
$
|
16,143
|
|
|
$
|
15,155
|
|
|
$
|
121,895
|
|
Net income attributable to noncontrolling interest
|
|
1,186
|
|
|
1,691
|
|
|
1,633
|
|
|||
Foreign currency translation adjustments
|
|
1,820
|
|
|
(703
|
)
|
|
685
|
|
|||
Deconsolidation of LSV
|
|
—
|
|
|
—
|
|
|
(65,522
|
)
|
|||
Deconsolidation of LSV Employee Group
|
|
—
|
|
|
—
|
|
|
(43,536
|
)
|
|||
Ending balance
|
|
$
|
19,149
|
|
|
$
|
16,143
|
|
|
$
|
15,155
|
|
|
|
Foreign
Currency
Translation
Adjustments
|
|
Unrealized
Holding
Gains (Losses)
on Investments
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||
Total accumulated comprehensive income (loss) at January 1, 2010
|
|
(1,053
|
)
|
|
960
|
|
|
(93
|
)
|
|||
Less: Total accumulated comprehensive loss attributable to noncontrolling interest at January 1, 2010
|
|
1,351
|
|
|
—
|
|
|
1,351
|
|
|||
Total accumulated comprehensive income attributable to SEI Investments Company at January 1, 2010
|
|
$
|
298
|
|
|
$
|
960
|
|
|
$
|
1,258
|
|
|
|
|
|
|
|
|
||||||
Total comprehensive income
|
|
2,205
|
|
|
379
|
|
|
2,584
|
|
|||
Less: Total comprehensive income attributable to noncontrolling interest
|
|
(685
|
)
|
|
—
|
|
|
(685
|
)
|
|||
Total comprehensive income attributable to SEI Investments Company
|
|
$
|
1,520
|
|
|
$
|
379
|
|
|
$
|
1,899
|
|
|
|
|
|
|
|
|
||||||
Total accumulated comprehensive income at December 31, 2010
|
|
1,152
|
|
|
1,339
|
|
|
2,491
|
|
|||
Less: Total accumulated comprehensive loss attributable to noncontrolling interest at December 31, 2010
|
|
666
|
|
|
—
|
|
|
666
|
|
|||
Total accumulated comprehensive income attributable to SEI Investments Company at December 31, 2010
|
|
$
|
1,818
|
|
|
$
|
1,339
|
|
|
$
|
3,157
|
|
|
|
|
|
|
|
|
||||||
Total comprehensive loss
|
|
(3,195
|
)
|
|
1,235
|
|
|
(1,960
|
)
|
|||
Less: Total comprehensive loss attributable to noncontrolling interest
|
|
703
|
|
|
—
|
|
|
703
|
|
|||
Total comprehensive loss attributable to SEI Investments Company
|
|
$
|
(2,492
|
)
|
|
$
|
1,235
|
|
|
$
|
(1,257
|
)
|
|
|
|
|
|
|
|
||||||
Total accumulated comprehensive income at December 31, 2011
|
|
(2,043
|
)
|
|
2,574
|
|
|
531
|
|
|||
Less: Total accumulated comprehensive loss attributable to noncontrolling interest at December 31, 2011
|
|
1,369
|
|
|
—
|
|
|
1,369
|
|
|||
Total accumulated comprehensive income attributable to SEI Investments Company at December 31, 2011
|
|
$
|
(674
|
)
|
|
$
|
2,574
|
|
|
$
|
1,900
|
|
|
|
|
|
|
|
|
||||||
Total comprehensive income
|
|
5,904
|
|
|
255
|
|
|
6,159
|
|
|||
Less: Total comprehensive income attributable to noncontrolling interest
|
|
(1,820
|
)
|
|
—
|
|
|
(1,820
|
)
|
|||
Total comprehensive income attributable to SEI Investments Company
|
|
$
|
4,084
|
|
|
$
|
255
|
|
|
$
|
4,339
|
|
|
|
|
|
|
|
|
||||||
Total accumulated comprehensive income at December 31, 2012
|
|
3,861
|
|
|
2,829
|
|
|
6,690
|
|
|||
Less: Total accumulated comprehensive income attributable to noncontrolling interest at December 31, 2012
|
|
(451
|
)
|
|
—
|
|
|
(451
|
)
|
|||
Total accumulated comprehensive income attributable to SEI Investments Company at December 31, 2012
|
|
$
|
3,410
|
|
|
$
|
2,829
|
|
|
$
|
6,239
|
|
2013
|
$
|
15,138
|
|
2014
|
6,283
|
|
|
2015
|
2,807
|
|
|
2016
|
2,170
|
|
|
2017 and thereafter
|
9,193
|
|
|
|
$
|
35,591
|
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Current
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
112,247
|
|
|
$
|
99,448
|
|
|
$
|
116,388
|
|
State
|
|
5,284
|
|
|
7,067
|
|
|
8,698
|
|
|||
Foreign
|
|
4,511
|
|
|
4,603
|
|
|
3,365
|
|
|||
|
|
122,042
|
|
|
111,118
|
|
|
128,451
|
|
|||
Deferred, including current deferred
|
|
|
|
|
|
|
||||||
Federal
|
|
(2,708
|
)
|
|
(2,317
|
)
|
|
6,085
|
|
|||
State
|
|
(2,199
|
)
|
|
2,477
|
|
|
1,509
|
|
|||
Foreign
|
|
3,970
|
|
|
6
|
|
|
—
|
|
|||
|
|
(937
|
)
|
|
166
|
|
|
7,594
|
|
|||
Income taxes attributable to the Noncontrolling interest
|
|
357
|
|
|
553
|
|
|
416
|
|
|||
Total income taxes
|
|
$
|
121,462
|
|
|
$
|
111,837
|
|
|
$
|
136,461
|
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Domestic
|
|
$
|
319,907
|
|
|
$
|
309,391
|
|
|
$
|
360,937
|
|
Foreign
|
|
8,046
|
|
|
6,852
|
|
|
6,795
|
|
|||
|
|
$
|
327,953
|
|
|
$
|
316,243
|
|
|
$
|
367,732
|
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
|||
Statutory rate
|
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State taxes, net of Federal tax benefit
|
|
1.0
|
|
|
2.0
|
|
|
2.0
|
|
Foreign tax expense and tax rate differential
|
|
1.6
|
|
|
0.6
|
|
|
0.4
|
|
Research and development tax credit
|
|
—
|
|
|
(0.7
|
)
|
|
(0.5
|
)
|
Domestic Production Activities Deduction
|
|
(0.6
|
)
|
|
(0.7
|
)
|
|
—
|
|
Valuation allowance on PA loss carryforwards
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
Domestic Production Activities Deduction, prior years, net
|
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
Net change in uncertain tax positions (1)
|
|
0.5
|
|
|
0.4
|
|
|
0.2
|
|
Other, net
|
|
(0.3
|
)
|
|
0.1
|
|
|
(0.1
|
)
|
|
|
36.9
|
%
|
|
35.2
|
%
|
|
37.0
|
%
|
Year Ended December 31,
|
|
2012
|
|
2011
|
||||
Current deferred income taxes:
|
|
|
|
|
||||
Gross assets
|
|
$
|
2,012
|
|
|
$
|
1,151
|
|
Gross liabilities
|
|
—
|
|
|
(1
|
)
|
||
|
|
2,012
|
|
|
1,150
|
|
||
Valuation allowance
|
|
—
|
|
|
—
|
|
||
|
|
2,012
|
|
|
1,150
|
|
||
Long-term deferred income taxes:
|
|
|
|
|
||||
Gross assets
|
|
63,129
|
|
|
63,374
|
|
||
Gross liabilities
|
|
(149,708
|
)
|
|
(148,540
|
)
|
||
|
|
(86,579
|
)
|
|
(85,166
|
)
|
||
Valuation allowance
|
|
(6,879
|
)
|
|
(8,585
|
)
|
||
|
|
(93,458
|
)
|
|
(93,751
|
)
|
||
Net deferred income tax liability
|
|
$
|
(91,446
|
)
|
|
$
|
(92,601
|
)
|
Year Ended December 31,
|
|
2012
|
|
2011
|
||||
Difference in financial reporting and income tax depreciation methods
|
|
$
|
(10,104
|
)
|
|
$
|
(13,600
|
)
|
Reserves not currently deductible
|
|
325
|
|
|
374
|
|
||
Capitalized software currently deductible for tax purposes, net of amortization
|
|
(137,467
|
)
|
|
(139,455
|
)
|
||
State deferred income taxes
|
|
5,943
|
|
|
6,717
|
|
||
Revenue and expense recognized in different periods for financial reporting and income tax purposes
|
|
4,397
|
|
|
3,149
|
|
||
Unrealized holding gain on investments
|
|
(1,428
|
)
|
|
(927
|
)
|
||
Stock-based compensation expense
|
|
42,133
|
|
|
43,879
|
|
||
State net operating loss carryforward
|
|
13,883
|
|
|
14,485
|
|
||
Valuation allowance on deferred tax assets
|
|
(6,879
|
)
|
|
(8,585
|
)
|
||
Federal benefit of state tax deduction for uncertain tax positions
|
|
2,359
|
|
|
1,725
|
|
||
Foreign currency exchange
|
|
(39
|
)
|
|
(363
|
)
|
||
Foreign deferred including taxes on cumulative undistributed earnings of SEI AK
|
(4,569
|
)
|
|
—
|
|
|||
Net deferred income tax liability
|
|
$
|
(91,446
|
)
|
|
$
|
(92,601
|
)
|
|
|
2012
|
|
2011
|
|
2010
|
||||||
Balance as of January 1
|
|
$
|
9,410
|
|
|
$
|
5,723
|
|
|
$
|
4,989
|
|
Tax positions related to current year:
|
|
|
|
|
|
|
||||||
Gross additions
|
|
2,196
|
|
|
2,392
|
|
|
1,372
|
|
|||
Gross reductions
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
2,196
|
|
|
2,392
|
|
|
1,372
|
|
|||
Tax positions related to prior years:
|
|
|
|
|
|
|
||||||
Gross additions
|
|
1,990
|
|
|
1,992
|
|
|
—
|
|
|||
Gross reductions
|
|
—
|
|
|
—
|
|
|
(104
|
)
|
|||
|
|
1,990
|
|
|
1,992
|
|
|
(104
|
)
|
|||
Settlements
|
|
(99
|
)
|
|
—
|
|
|
(102
|
)
|
|||
Lapses on statute of limitations
|
|
(1,944
|
)
|
|
(697
|
)
|
|
(432
|
)
|
|||
Balance as of December 31
|
|
$
|
11,553
|
|
|
$
|
9,410
|
|
|
$
|
5,723
|
|
|
|
Private
Banks
|
|
Investment
Advisors
|
|
Institutional
Investors
|
|
Investment
Managers
|
|
Investments
In New
Businesses
|
|
Total
|
||||||||||||
|
|
For the Year Ended December 31, 2012
|
||||||||||||||||||||||
Revenues
|
|
$
|
364,788
|
|
|
$
|
202,703
|
|
|
$
|
227,889
|
|
|
$
|
193,484
|
|
|
$
|
3,658
|
|
|
$
|
992,522
|
|
Expenses
|
|
357,001
|
|
|
120,146
|
|
|
116,546
|
|
|
127,525
|
|
|
14,954
|
|
|
736,172
|
|
||||||
Operating profit (loss)
|
|
$
|
7,787
|
|
|
$
|
82,557
|
|
|
$
|
111,343
|
|
|
$
|
65,959
|
|
|
$
|
(11,296
|
)
|
|
$
|
256,350
|
|
Profit margin
|
|
2
|
%
|
|
41
|
%
|
|
49
|
%
|
|
34
|
%
|
|
N/A
|
|
|
26
|
%
|
|
|
Private
Banks
|
|
Investment
Advisors
|
|
Institutional
Investors
|
|
Investment
Managers
|
|
Investments
In New
Businesses
|
|
Total
|
||||||||||||
|
|
For the Year Ended December 31, 2011
|
||||||||||||||||||||||
Revenues
|
|
$
|
348,122
|
|
|
$
|
189,780
|
|
|
$
|
210,027
|
|
|
$
|
177,975
|
|
|
$
|
3,823
|
|
|
$
|
929,727
|
|
Expenses
|
|
339,339
|
|
|
110,438
|
|
|
106,585
|
|
|
115,963
|
|
|
11,559
|
|
|
683,884
|
|
||||||
Operating profit (loss)
|
|
$
|
8,783
|
|
|
$
|
79,342
|
|
|
$
|
103,442
|
|
|
$
|
62,012
|
|
|
$
|
(7,736
|
)
|
|
$
|
245,843
|
|
Profit margin
|
|
3
|
%
|
|
42
|
%
|
|
49
|
%
|
|
35
|
%
|
|
N/A
|
|
|
26
|
%
|
|
|
Private
Banks
|
|
Investment
Advisors
|
|
Institutional
Investors
|
|
Investment
Managers
|
|
Investments
In New
Businesses
|
|
Total
|
||||||||||||
|
|
For the Year Ended December 31, 2010
|
||||||||||||||||||||||
Revenues
|
|
$
|
346,668
|
|
|
$
|
183,378
|
|
|
$
|
206,531
|
|
|
$
|
160,159
|
|
|
$
|
4,099
|
|
|
$
|
900,835
|
|
Expenses
|
|
310,633
|
|
|
110,388
|
|
|
106,934
|
|
|
103,421
|
|
|
12,676
|
|
|
644,052
|
|
||||||
Operating profit (loss)
|
|
$
|
36,035
|
|
|
$
|
72,990
|
|
|
$
|
99,597
|
|
|
$
|
56,738
|
|
|
$
|
(8,577
|
)
|
|
$
|
256,783
|
|
Profit margin
|
|
10
|
%
|
|
40
|
%
|
|
48
|
%
|
|
35
|
%
|
|
N/A
|
|
|
29
|
%
|
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Total operating profit from segments above
|
|
$
|
256,350
|
|
|
$
|
245,843
|
|
|
$
|
256,783
|
|
Corporate overhead expenses
|
|
(45,759
|
)
|
|
(43,398
|
)
|
|
(40,715
|
)
|
|||
Noncontrolling interest reflected in segments
|
|
975
|
|
|
1,620
|
|
|
1,465
|
|
|||
Income from operations
|
|
$
|
211,566
|
|
|
$
|
204,065
|
|
|
$
|
217,533
|
|
|
|
Capital Expenditures
|
|
Depreciation
|
||||||||||||||||||||
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Private Banks
|
|
$
|
32,509
|
|
|
$
|
35,045
|
|
|
$
|
32,982
|
|
|
$
|
15,226
|
|
|
$
|
15,648
|
|
|
$
|
15,704
|
|
Investment Advisors
|
|
11,193
|
|
|
11,933
|
|
|
11,691
|
|
|
1,981
|
|
|
2,251
|
|
|
2,384
|
|
||||||
Institutional Investors
|
|
2,781
|
|
|
2,059
|
|
|
2,601
|
|
|
1,012
|
|
|
1,079
|
|
|
1,170
|
|
||||||
Investment Managers
|
|
5,494
|
|
|
3,081
|
|
|
3,659
|
|
|
1,914
|
|
|
1,809
|
|
|
1,891
|
|
||||||
Investments in New Businesses
|
|
632
|
|
|
577
|
|
|
608
|
|
|
1,716
|
|
|
114
|
|
|
148
|
|
||||||
Total from business segments
|
|
$
|
52,609
|
|
|
$
|
52,695
|
|
|
$
|
51,541
|
|
|
$
|
21,849
|
|
|
$
|
20,901
|
|
|
$
|
21,297
|
|
Corporate Overhead
|
|
1,465
|
|
|
530
|
|
|
799
|
|
|
737
|
|
|
570
|
|
|
605
|
|
||||||
|
|
$
|
54,074
|
|
|
$
|
53,225
|
|
|
$
|
52,340
|
|
|
$
|
22,586
|
|
|
$
|
21,471
|
|
|
$
|
21,902
|
|
|
|
Amortization
|
||||||||||
Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
Private Banks
|
|
$
|
22,218
|
|
|
$
|
18,081
|
|
|
$
|
15,100
|
|
Investment Advisors
|
|
7,167
|
|
|
6,201
|
|
|
5,467
|
|
|||
Institutional Investors
|
|
1,208
|
|
|
864
|
|
|
1,213
|
|
|||
Investment Managers
|
|
804
|
|
|
580
|
|
|
820
|
|
|||
Investments in New Businesses
|
|
1,249
|
|
|
433
|
|
|
477
|
|
|||
Total from business segments
|
|
$
|
32,646
|
|
|
$
|
26,159
|
|
|
$
|
23,077
|
|
Corporate Overhead
|
|
612
|
|
|
1,129
|
|
|
971
|
|
|||
|
|
$
|
33,258
|
|
|
$
|
27,288
|
|
|
$
|
24,048
|
|
|
|
Total Assets
|
||||||
|
|
2012
|
|
2011
|
||||
Private Banks
|
|
$
|
481,602
|
|
|
$
|
457,333
|
|
Investment Advisors
|
|
120,255
|
|
|
119,053
|
|
||
Institutional Investors
|
|
99,461
|
|
|
80,133
|
|
||
Investment Managers
|
|
118,221
|
|
|
95,760
|
|
||
Investments in New Businesses
|
|
5,846
|
|
|
5,962
|
|
||
Total from business segments
|
|
$
|
825,385
|
|
|
$
|
758,241
|
|
Corporate Overhead (1)
|
|
484,439
|
|
|
536,318
|
|
||
|
|
$
|
1,309,824
|
|
|
$
|
1,294,559
|
|
For the Year Ended December 31,
|
|
2012
|
|
2011
|
|
2010
|
||||||
United States
|
|
$
|
843,407
|
|
|
$
|
785,506
|
|
|
$
|
767,068
|
|
International operations
|
|
149,115
|
|
|
144,221
|
|
|
133,767
|
|
|||
|
|
$
|
992,522
|
|
|
$
|
929,727
|
|
|
$
|
900,835
|
|
|
|
2012
|
|
2011
|
||||
United States
|
|
$
|
1,066,451
|
|
|
$
|
1,098,643
|
|
International operations
|
|
243,373
|
|
|
195,916
|
|
||
|
|
$
|
1,309,824
|
|
|
$
|
1,294,559
|
|
|
|
For the Three Months Ended
|
||||||||||||||
2012
|
|
March 31
|
|
June 30
|
|
Sept. 30
|
|
Dec. 31
|
||||||||
Revenues
|
|
$
|
237,898
|
|
|
$
|
241,237
|
|
|
$
|
251,752
|
|
|
$
|
261,635
|
|
Income before income taxes
|
|
$
|
79,950
|
|
|
$
|
78,501
|
|
|
$
|
83,501
|
|
|
$
|
87,544
|
|
Net income attributable to SEI
|
|
$
|
49,965
|
|
|
$
|
49,555
|
|
|
$
|
50,743
|
|
|
$
|
56,585
|
|
Basic earnings per share
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
0.29
|
|
|
$
|
0.33
|
|
Diluted earnings per share
|
|
$
|
0.28
|
|
|
$
|
0.28
|
|
|
$
|
0.29
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
||||||||
Effective income tax rate
|
|
37.2
|
%
|
|
36.6
|
%
|
|
39.0
|
%
|
|
35.0
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total SIV-related gains
|
|
$
|
2,882
|
|
|
$
|
1,072
|
|
|
$
|
3,389
|
|
|
$
|
5,897
|
|
Diluted earnings per share (1)
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
0.02
|
|
|
|
For the Three Months Ended
|
||||||||||||||
2011
|
|
March 31
|
|
June 30
|
|
Sept. 30
|
|
Dec. 31
|
||||||||
Revenues
|
|
$
|
232,493
|
|
|
$
|
237,760
|
|
|
$
|
233,227
|
|
|
$
|
226,247
|
|
Income before income taxes
|
|
$
|
92,164
|
|
|
$
|
82,820
|
|
|
$
|
74,900
|
|
|
$
|
68,603
|
|
Net income attributable to SEI
|
|
$
|
57,728
|
|
|
$
|
53,603
|
|
|
$
|
49,232
|
|
|
$
|
44,396
|
|
Basic earnings per share
|
|
$
|
0.31
|
|
|
$
|
0.29
|
|
|
$
|
0.27
|
|
|
$
|
0.25
|
|
Diluted earnings per share
|
|
$
|
0.31
|
|
|
$
|
0.29
|
|
|
$
|
0.27
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
||||||||
Effective income tax rate
|
|
37.1
|
%
|
|
34.7
|
%
|
|
33.8
|
%
|
|
34.7
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total SIV-related gains (losses)
|
|
$
|
6,864
|
|
|
$
|
(1,944
|
)
|
|
$
|
(792
|
)
|
|
$
|
(738
|
)
|
Diluted earnings per share (2)
|
|
$
|
0.02
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Schedule II - Valuation and Qualifying Accounts and Reserves
|
|
|
|
SEI Investments Company
and Subsidiaries |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31,
|
|
|
Additions
|
|
|
|
|
|||||||||||||
Description
|
|
Balance at
Beginning
of Year
|
|
Charged to
Costs and
Expenses
|
|
Charged
to Other
Accounts
|
|
(Deductions)
|
|
Balance
at End
of Year
|
||||||||||
Allowance for doubtful accounts:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2012
|
|
$
|
924
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(119
|
)
|
|
$
|
805
|
|
2011
|
|
1,195
|
|
|
—
|
|
|
—
|
|
|
(271
|
)
|
|
924
|
|
|||||
2010
|
|
3,348
|
|
|
—
|
|
|
—
|
|
|
(2,153
|
)
|
|
1,195
|
|
|||||
Deferred income tax valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2012
|
|
$
|
8,585
|
|
|
$
|
(1,706
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,879
|
|
2011
|
|
9,008
|
|
|
(423
|
)
|
|
—
|
|
|
—
|
|
|
8,585
|
|
|||||
2010
|
|
6,217
|
|
|
1,443
|
|
|
1,348
|
|
|
—
|
|
|
9,008
|
|
|
|
Number of
securities to be
issued upon
exercise of
outstanding options,
warrants and rights
(a)
|
|
Weighted –average
exercise price of
outstanding options,
warrants and rights
(b)
|
|
Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding
securities reflected in
column (a))
(c)
|
||||
Equity compensation plans approved by security holders (1)
|
|
25,609,619
|
|
|
$
|
20.81
|
|
|
2,568,545
|
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
25,609,619
|
|
|
$
|
20.81
|
|
|
2,568,545
|
|
(1)
|
Consists of: (i) the 2007 Equity Compensation Plan, and (ii) the Amended and Restated 1998 Equity Compensation Plan.
|
|
|
|
|
|
|
|
|
|
|
|
SEI INVESTMENTS COMPANY
|
||
|
|
|
|
|||
Date
|
|
February 22, 2013
|
|
By
|
|
/s/ Dennis J. McGonigle
|
|
|
|
|
|
|
Dennis J. McGonigle
|
|
|
|
|
|
|
Chief Financial Officer
|
Date
|
|
February 22, 2013
|
|
By
|
|
/s/ Alfred P. West, Jr.
|
|
|
|
|
|
|
Alfred P. West, Jr.
|
|
|
|
|
|
|
Chairman of the Board, Chief Executive Officer, and
|
|
|
|
|
|
|
Director
|
|
|
|
|
|||
Date
|
|
February 22, 2013
|
|
By
|
|
/s/ Carmen V. Romeo
|
|
|
|
|
|
|
Carmen V. Romeo
|
|
|
|
|
|
|
Director
|
|
|
|
|
|||
Date
|
|
February 22, 2013
|
|
By
|
|
/s/ Richard B. Lieb
|
|
|
|
|
|
|
Richard B. Lieb
|
|
|
|
|
|
|
Director
|
|
|
|
|
|||
Date
|
|
February 22, 2013
|
|
By
|
|
/s/ William M. Doran
|
|
|
|
|
|
|
William M. Doran
|
|
|
|
|
|
|
Director
|
|
|
|
|
|||
Date
|
|
February 22, 2013
|
|
By
|
|
/s/ Kathryn M. McCarthy
|
|
|
|
|
|
|
Kathryn M. McCarthy
|
|
|
|
|
|
|
Director
|
|
|
|
|
|||
Date
|
|
February 22, 2013
|
|
By
|
|
/s/ Sarah W. Blumenstein
|
|
|
|
|
|
|
Sarah W. Blumenstein
|
|
|
|
|
|
|
Director
|
3.1
|
|
|
|
Articles of Incorporation of the Registrant as amended on January 21, 1983. (Incorporated by reference to exhibit 3.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1982.)
|
3.1.2
|
|
|
|
Amendment to Articles of Incorporation of the Registrant, dated May 21, 1992. (Incorporated by reference to exhibit 3.1.2 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1992.)
|
3.1.3
|
|
|
|
Amendment to Articles of Incorporation of the Registrant, dated May 26, 1994. (Incorporated by reference to exhibit 3.1.3 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1994.)
|
3.1.4
|
|
|
|
Amendment to Articles of Incorporation of the Registrant, dated November 21, 1996. (Incorporated by reference to exhibit 3.1.4 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1996.)
|
3.1.5
|
|
|
|
Amendment to Articles of Incorporation of the Registrant, dated February 14, 2001. (Incorporated by reference to exhibit 3.1.4 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2000.)
|
3.2
|
|
|
|
Amended and Restated By-Laws. (Incorporated by reference to exhibit 3.2 to the Registrant’s Current Report on Form 8-K dated January 6, 2009.)
|
3.2.1
|
|
|
|
Amendment of Section 3.02 of the Amended and Restated Bylaws. (Incorporated by reference to exhibit 3.2.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010.)
|
4.1
|
|
|
|
Rights Agreement dated January 6, 2009. (Incorporated by reference to exhibit 4.1 to the Registrant’s Current Report on Form 8-K dated January 6, 2009.)
|
4.2
|
|
|
|
Statement with Respect to Shares of a Domestic Corporation amending the designations of Series A Junior Participating Preferred Shares as a series of the Series Preferred Stock of the Company, dated January 6, 2009. (Incorporated by reference to exhibit 4.1 to the Registrant’s Current Report on Form 8-K dated January 6, 2009.)
|
|
|
|
||
|
|
|
Note: Exhibits 10.4 through 10.11 constitute the management contracts and executive compensatory plans or arrangements in which certain of the directors and executive officers of the Registrant participate.
|
|
|
|
|
||
10.4
|
|
|
|
1998 Equity Compensation Plan, Amended and Restated as of April 8, 2003. (Incorporated by reference to exhibit 99.1 to the Registrant’s Registration Statement on Form S-8 (No. 333-111224) filed December 16, 2003.)
|
10.4.1
|
|
|
|
Amendment 2006-1 to the 1998 Equity Compensation Plan, Amended and Restated as of April 8, 2003. (Incorporated by reference to exhibit 10.4.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006.)
|
10.5
|
|
|
|
Employee Stock Purchase Plan as Amended and Restated on May 20, 2008. (Incorporated by reference to the Registrant’s Current Report on Form 8-K dated May 20, 2008.)
|
10.6
|
|
|
|
SEI Capital Accumulation Plan. (Incorporated by reference to exhibit 99(e) to the Registrant’s Registration Statement on Form S-8 (No. 333-41343) filed December 2, 1997.)
|
10.9
|
|
|
|
Employment Agreement, dated June 25, 2004, between N. Jeffrey Klauder and the Registrant. (Incorporated by reference to exhibit 10.9 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006.)
|
10.10
|
|
|
|
2007 Equity Compensation Plan. (Incorporated by reference to exhibit 10.10 to the Registrant’s Current Report on Form 8-K dated April 11, 2007.)
|
10.22
|
|
|
|
Credit Facility, dated January 14, 2003 between Royal Bank of Canada and SEI Investments Canada Company, a subsidiary of SEI Investments Company. (Incorporated by reference to exhibit 10.22 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005.)
|
10.22.1
|
|
|
|
First Amendment, dated June 15, 2005 to Credit Facility, dated January 14, 2003 between Royal Bank of Canada and SEI Investments Canada Company, a subsidiary of SEI Investments Company. (Incorporated by reference to exhibit 10.22.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005.)
|
10.22.2
|
|
|
|
Second Amendment, dated February 20, 2006 to Credit Facility, dated January 14, 2003 between Royal Bank of Canada and SEI Investments Canada Company, a subsidiary of SEI Investments Company. (Incorporated by reference to exhibit 10.22.2 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005.)
|
10.24
|
|
|
|
$300,000 Credit Agreement, dated February 2, 2012, among SEI Investments Company, the Lenders Party thereto, U.S. Bank National Association, as Syndication Agent, Citizens Bank of Pennsylvania and Manufacturers and Traders Trust Company, each as Documentation Agent, and Wells Fargo Bank, National Association, as Administrative Agent (Incorporated by reference to exhibit 10.24 to the Registrant’s Current Report on Form 8-K/A dated February 2, 2012.)
|
10.25
|
|
|
|
Guaranty and Collateral Agreement dated as of October 1, 2012 among SEI Investments Company, LSV Employee Group III, LLC, and The PrivateBank and Trust Company. (Incorporated by reference to exhibit 10.25 to the Registrant’s Current Report on Form 8-K dated October 1, 2012.)
|
14
|
|
|
|
Code of Ethics for Senior Financial Officers. (Incorporated by reference to exhibit 14 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2003.)
|
21
|
|
*
|
|
Subsidiaries of the Registrant.
|
23.1
|
|
*
|
|
Consent of Independent Registered Public Accounting Firm.
|
23.2
|
|
*
|
|
Consent of Independent Registered Public Accounting Firm relating to the financial statements of LSV Asset Management.
|
31.1
|
|
*
|
|
Rule 13a-15(e)/15d-15(e) Certification of Chief Executive Officer.
|
31.2
|
|
*
|
|
Rule 13a-15(e)/15d-15(e) Certification of Chief Financial Officer.
|
32
|
|
*
|
|
Section 1350 Certifications.
|
99
|
|
|
|
Financial Statements of LSV Asset Management dated December 31, 2005 and 2004. (Incorporated by reference to exhibit 99.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005.)
|
99.1
|
|
|
|
Financial Statements of LSV Asset Management dated December 31, 2010 and 2009. (Incorporated by reference to exhibit 99.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010.)
|
99.2
|
|
|
|
Financial Statements of LSV Asset Management dated December 31, 2011 and 2010. (Incorporated1 by reference to exhibit 99.2 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011.)
|
99.3
|
|
*
|
|
Financial Statements of LSV Asset Management dated December 31, 2012 and 2011.
|
101.INS
|
|
*
|
|
XBRL Instance Document
|
101.SCH
|
|
*
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
|
*
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
|
*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.DEF
|
|
*
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
*
|
Filed herewith as an exhibit to this Annual Report on Form 10-K.
|
SUBSIDIARIES OF THE REGISTRANT
|
||
|
|
|
NAME
|
|
JURISDICTION OF ORGANIZATION
OR INCORPORATION
|
|
|
|
SEI Investments Distribution Co.
|
|
Pennsylvania
|
SEI Investments Management Corporation
|
|
Delaware
|
SEI Investments Developments, Inc.
|
|
Delaware
|
SEI Investments Global Funds Services
|
|
Delaware
|
SEI Custodial Operations Company, LLC
|
|
Delaware
|
SEI Trust Company
|
|
Pennsylvania
|
SEI Funds, Inc.
|
|
Delaware
|
SEI Investments, Inc.
|
|
Delaware
|
SEI Global Investments Corporation
|
|
Delaware
|
SEI Investments Canada Company
|
|
Canada (Federal)
|
SEI Advanced Capital Management, Inc.
|
|
Delaware
|
SEI Global Capital Investments, Inc.
|
|
Delaware
|
SEI Investments Global (Cayman), Ltd.
|
|
Cayman Islands, B. W. I.
|
SEI Investments Global, Limited
|
|
Ireland
|
SEI Investments Global Fund Services, Ltd.
|
|
Ireland
|
SEI Global Holdings (Cayman) Inc.
|
|
Cayman Islands, B. W. I.
|
SEI Investments (South Africa) Limited
|
|
South Africa
|
SEI Primus Holding Corporation
|
|
Delaware
|
SEI Investments Trustee & Custodial Services (Ireland) Limited
|
|
Ireland
|
SEI Private Trust Company
|
|
Pennsylvania
|
SEI Ventures, Inc.
|
|
Delaware
|
SEI Asset Korea Co., Ltd.
|
|
South Korea
|
SEI Investments Europe Limited
|
|
United Kingdom
|
SEI SIMC Holdings, LLC
|
|
Delaware
|
SIMC Subsidiary, LLC
|
|
Delaware
|
SEI Global Nominee Ltd.
|
|
United Kingdom
|
SEI Insurance Group, Inc.
|
|
Pennsylvania
|
SEI Global Services, Inc.
|
|
Delaware
|
SEI Franchise, Inc.
|
|
Delaware
|
SEI Investments (Asia), Limited
|
|
Hong Kong
|
SEI European Services Limited
|
|
United Kingdom
|
SEI Trustees Limited
|
|
United Kingdom
|
SEI Investment Strategies, LLC
|
|
Delaware
|
LSV Asset Management
|
|
Delaware
|
SEI Institutional Transfer Agent, Inc.
|
|
Delaware
|
SEI Investments - Guernsey Limited
|
|
Guernsey
|
/s/ Alfred P. West, Jr.
|
Alfred P. West, Jr.
|
Chairman and Chief Executive Officer
|
/s/ Dennis J. McGonigle
|
Dennis J. McGonigle
|
Chief Financial Officer
|
Date:
|
February 22, 2013
|
|
Date:
|
February 22, 2013
|
|
|
|
|
|
/s/ Alfred P. West, Jr.
|
|
/s/ Dennis J. McGonigle
|
||
Alfred P. West, Jr.
|
|
Dennis J. McGonigle
|
||
Chairman and Chief Executive Officer
|
|
Chief Financial Officer
|
|
2012
|
|
2011
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash
|
$
|
65,318
|
|
|
$
|
60,728
|
|
Management fee receivables, net of allowance for
|
|
|
|
||||
doubtful accounts of $645 and $804 (Note 2)
|
79,153
|
|
|
74,951
|
|
||
Prepaid expenses and other current assets
|
896
|
|
|
922
|
|
||
Total current assets
|
145,367
|
|
|
136,601
|
|
||
Fixed assets, net of accumulated
|
|
|
|
||||
depreciation of $2,979 and $2,164 (Note 2)
|
3,120
|
|
|
3,880
|
|
||
Total assets
|
$
|
148,487
|
|
|
$
|
140,481
|
|
Liabilities and Partners' Capital
|
|
|
|
||||
Accrued compensation
|
$
|
7,977
|
|
|
$
|
10,937
|
|
Accrued other
|
1,316
|
|
|
1,555
|
|
||
Total accrued liabilities
|
9,293
|
|
|
12,492
|
|
||
Due to SEI Funds, Inc. (Note 5)
|
8,576
|
|
|
1,441
|
|
||
Total current liabilities
|
17,869
|
|
|
13,933
|
|
||
Commitments and contingencies (Note 3)
|
—
|
|
|
—
|
|
||
Partners' capital
|
130,618
|
|
|
126,548
|
|
||
Total liabilities and partners' capital
|
$
|
148,487
|
|
|
$
|
140,481
|
|
|
2012
|
|
2011
|
|
2010
|
||||||
Revenue
|
|
|
|
|
|
||||||
Management fees
|
$
|
296,261
|
|
|
$
|
296,361
|
|
|
$
|
273,337
|
|
Interest income
|
31
|
|
|
36
|
|
|
44
|
|
|||
Total revenue
|
296,292
|
|
|
296,397
|
|
|
273,381
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Compensation, benefits & other personnel
|
29,759
|
|
|
24,626
|
|
|
22,295
|
|
|||
Stock based compensation
|
3,348
|
|
|
1,954
|
|
|
1,275
|
|
|||
Consulting & professional fees
|
2,685
|
|
|
2,705
|
|
|
2,606
|
|
|||
Data processing and computer related
|
5,639
|
|
|
5,039
|
|
|
4,272
|
|
|||
Facilities, supplies and other costs
|
3,838
|
|
|
3,608
|
|
|
2,195
|
|
|||
Depreciation
|
858
|
|
|
946
|
|
|
757
|
|
|||
Total expenses
|
46,127
|
|
|
38,878
|
|
|
33,400
|
|
|||
Net income
|
$
|
250,165
|
|
|
$
|
257,519
|
|
|
$
|
239,981
|
|
|
Partnership
Capital
|
||
Balance, December 31, 2009
|
$
|
117,629
|
|
Net income
|
239,981
|
|
|
Partnership distributions
|
(224,282
|
)
|
|
Balance, December 31, 2010
|
133,328
|
|
|
Net income
|
257,519
|
|
|
Partnership distributions
|
(264,299
|
)
|
|
Balance, December 31, 2011
|
126,548
|
|
|
Net income
|
250,165
|
|
|
Partnership distributions
|
(246,095
|
)
|
|
Balance, December 31, 2012
|
$
|
130,618
|
|
|
2012
|
|
2011
|
|
2010
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
250,165
|
|
|
$
|
257,519
|
|
|
$
|
239,981
|
|
Adjustments to reconcile net income to cash provided
|
|
|
|
|
|
||||||
by operating activities
|
|
|
|
|
|
||||||
Depreciation
|
858
|
|
|
946
|
|
|
757
|
|
|||
Provision for losses on receivables
|
(159
|
)
|
|
435
|
|
|
(779
|
)
|
|||
Change in assets and liabilities
|
|
|
|
|
|
||||||
Decrease (increase)
|
|
|
|
|
|
||||||
Management fee receivables
|
(4,043
|
)
|
|
(330
|
)
|
|
(8,276
|
)
|
|||
Prepaid expenses and other current assets
|
26
|
|
|
(74
|
)
|
|
168
|
|
|||
Increase (decrease)
|
|
|
|
|
|
||||||
Accrued compensation
|
(2,960
|
)
|
|
2,953
|
|
|
2,173
|
|
|||
Accrued other
|
(239
|
)
|
|
(104
|
)
|
|
719
|
|
|||
Due to SEI Funds, Inc.
|
7,135
|
|
|
(115
|
)
|
|
15
|
|
|||
Net cash provided by operating activities
|
250,783
|
|
|
261,230
|
|
|
234,758
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Purchases of fixed assets
|
(156
|
)
|
|
(667
|
)
|
|
(3,115
|
)
|
|||
Proceeds from fixed assets
|
58
|
|
|
—
|
|
|
—
|
|
|||
Sale of marketable securities
|
—
|
|
|
—
|
|
|
42
|
|
|||
Net cash used in investing activities
|
(98
|
)
|
|
(667
|
)
|
|
(3,073
|
)
|
|||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Partnership distributions
|
(246,095
|
)
|
|
(264,299
|
)
|
|
(224,282
|
)
|
|||
Net cash used in financing activities
|
(246,095
|
)
|
|
(264,299
|
)
|
|
(224,282
|
)
|
|||
Net increase (decrease) in cash
|
4,590
|
|
|
(3,736
|
)
|
|
7,403
|
|
|||
Cash
|
|
|
|
|
|
||||||
Beginning of year
|
60,728
|
|
|
64,464
|
|
|
57,061
|
|
|||
End of year
|
$
|
65,318
|
|
|
$
|
60,728
|
|
|
$
|
64,464
|
|
1.
|
Background
|
2.
|
Summary of Significant Accounting Policies
|
|
2012
|
|
2011
|
||||
Management fee receivables
|
$
|
7,519
|
|
|
$
|
12,445
|
|
Unbilled management fee receivables
|
72,279
|
|
|
63,310
|
|
||
|
79,798
|
|
|
75,755
|
|
||
Less: Allowance for doubtful accounts
|
(645
|
)
|
|
(804
|
)
|
||
Total management fee receivables
|
$
|
79,153
|
|
|
$
|
74,951
|
|
|
|
|
|
|
Estimated Useful Lives
|
||||
|
2012
|
|
2011
|
|
|||||
|
|
|
|
|
|
||||
Equipment
|
$
|
1,838
|
|
|
$
|
1,732
|
|
|
3 to 5 years
|
Leasehold improvements
|
3,031
|
|
|
3,102
|
|
|
Lease Term
|
||
Furniture and fixtures
|
1,230
|
|
|
1,210
|
|
|
5 years
|
||
|
6,099
|
|
|
6,044
|
|
|
|
||
Less: Accumulated depreciation
|
(2,979
|
)
|
|
(2,164
|
)
|
|
|
||
|
$
|
3,120
|
|
|
$
|
3,880
|
|
|
|
3.
|
Commitments and Contingencies
|
2013
|
$
|
1,012
|
|
2014
|
1,029
|
|
|
2015
|
1,047
|
|
|
2016
|
1,064
|
|
|
2017 and thereafter
|
3,586
|
|
|
|
$
|
7,738
|
|
4.
|
Income Taxes
|
5.
|
Related Party Transactions
|
6.
|
Accrued stock based compensation
|
7.
|
Subsequent Events
|