| Business Segment Information |
Business Segment Information The Company’s reportable business segments are: Private Banks – provides investment processing and investment management programs to banks and trust institutions, independent wealth advisers and financial advisors worldwide; Investment Advisors – provides investment management programs to affluent investors through a network of independent registered investment advisors, financial planners and other investment professionals in the United States; Institutional Investors – provides investment management programs and administrative outsourcing solutions to retirement plan sponsors, hospitals and not-for-profit organizations worldwide; Investment Managers – provides investment operations outsourcing solutions to fund companies, banking institutions and both traditional and non-traditional investment managers worldwide; and Investments in New Businesses – focuses on providing investment management programs to ultra-high-net-worth families residing in the United States; developing internet-based investment services and advice solutions; entering new markets; and conducting other research and development activities. In 2016, 2015 and 2014, no single customer accounted for more than ten percent of revenues in any business segment. The following tables highlight certain financial information about each of the Company’s business segments for the years ended December 31, 2016, 2015 and 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Private Banks | | Investment Advisors | | Institutional Investors | | Investment Managers | | Investments In New Businesses | | Total | | | For the Year Ended December 31, 2016 | Revenues | | $ | 457,886 |
| | $ | 330,677 |
| | $ | 312,584 |
| | $ | 294,390 |
| | $ | 6,008 |
| | $ | 1,401,545 |
| Expenses | | 421,188 |
| | 180,140 |
| | 153,117 |
| | 191,127 |
| | 20,962 |
| | 966,534 |
| Operating profit (loss) | | $ | 36,698 |
| | $ | 150,537 |
| | $ | 159,467 |
| | $ | 103,263 |
| | $ | (14,954 | ) | | $ | 435,011 |
| Gain on sale of subsidiary | | 2,791 |
| | — |
| | — |
| | — |
| | — |
| | 2,791 |
| Total profit (loss) | | $ | 39,489 |
| | $ | 150,537 |
| | $ | 159,467 |
| | $ | 103,263 |
| | $ | (14,954 | ) | | $ | 437,802 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Private Banks | | Investment Advisors | | Institutional Investors | | Investment Managers | | Investments In New Businesses | | Total | | | For the Year Ended December 31, 2015 | Revenues | | $ | 456,516 |
| | $ | 306,620 |
| | $ | 297,568 |
| | $ | 267,963 |
| | $ | 5,541 |
| | $ | 1,334,208 |
| Expenses | | 410,975 |
| | 171,968 |
| | 145,851 |
| | 172,094 |
| | 20,656 |
| | 921,544 |
| Operating profit (loss) | | $ | 45,541 |
| | $ | 134,652 |
| | $ | 151,717 |
| | $ | 95,869 |
| | $ | (15,115 | ) | | $ | 412,664 |
| Gain on sale of subsidiary | | 2,791 |
| | — |
| | — |
| | — |
| | — |
| | 2,791 |
| Total profit (loss) | | $ | 48,332 |
| | $ | 134,652 |
| | $ | 151,717 |
| | $ | 95,869 |
| | $ | (15,115 | ) | | $ | 415,455 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Private Banks | | Investment Advisors | | Institutional Investors | | Investment Managers | | Investments In New Businesses | | Total | | | For the Year Ended December 31, 2014 | Revenues | | $ | 441,467 |
| | $ | 283,811 |
| | $ | 284,677 |
| | $ | 251,310 |
| | $ | 4,740 |
| | $ | 1,266,005 |
| Expenses | | 399,620 |
| | 146,500 |
| | 140,659 |
| | 159,176 |
| | 18,377 |
| | 864,332 |
| Operating profit (loss) | | $ | 41,847 |
| | $ | 137,311 |
| | $ | 144,018 |
| | $ | 92,134 |
| | $ | (13,637 | ) | | $ | 401,673 |
| Gain on sale of subsidiary | | 5,582 |
| | — |
| | — |
| | — |
| | — |
| | 5,582 |
| Total profit (loss) | | $ | 47,429 |
| | $ | 137,311 |
| | $ | 144,018 |
| | $ | 92,134 |
| | $ | (13,637 | ) | | $ | 407,255 |
|
A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of Operations for the years ended December 31, 2016, 2015 and 2014 is as follows: | | | | | | | | | | | | | | Year Ended December 31, | | 2016 | | 2015 | | 2014 | Total operating profit from segments above | | $ | 435,011 |
| | $ | 412,664 |
| | $ | 401,673 |
| Corporate overhead expenses | | (59,317 | ) | | (54,451 | ) | | (48,889 | ) | Income from operations | | $ | 375,694 |
| | $ | 358,213 |
| | $ | 352,784 |
|
The following tables provide additional information for the years ended December 31, 2016, 2015 and 2014 pertaining to our business segments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Capital Expenditures (1) | | Depreciation | Year Ended December 31, | | 2016 | | 2015 | | 2014 | | 2016 | | 2015 | | 2014 | Private Banks | | $ | 45,940 |
| | $ | 41,972 |
| | $ | 30,883 |
| | $ | 13,222 |
| | $ | 12,348 |
| | $ | 13,393 |
| Investment Advisors | | 17,610 |
| | 13,206 |
| | 13,783 |
| | 3,880 |
| | 3,410 |
| | 2,507 |
| Institutional Investors | | 4,319 |
| | 5,301 |
| | 4,575 |
| | 1,367 |
| | 1,200 |
| | 1,041 |
| Investment Managers | | 11,209 |
| | 10,119 |
| | 9,505 |
| | 4,877 |
| | 4,040 |
| | 2,917 |
| Investments in New Businesses | | 726 |
| | 736 |
| | 2,547 |
| | 2,197 |
| | 2,278 |
| | 1,983 |
| Total from business segments | | $ | 79,804 |
| | $ | 71,334 |
| | $ | 61,293 |
| | $ | 25,543 |
| | $ | 23,276 |
| | $ | 21,841 |
| Corporate Overhead | | 1,985 |
| | 2,547 |
| | 2,053 |
| | 897 |
| | 768 |
| | 607 |
| | | $ | 81,789 |
| | $ | 73,881 |
| | $ | 63,346 |
| | $ | 26,440 |
| | $ | 24,044 |
| | $ | 22,448 |
|
(1) Capital expenditures include additions to property and equipment and capitalized software. | | | | | | | | | | | | | | | | Amortization | Year Ended December 31, | | 2016 | | 2015 | | 2014 | Private Banks | | $ | 31,675 |
| | $ | 29,819 |
| | $ | 24,993 |
| Investment Advisors | | 10,458 |
| | 9,880 |
| | 9,228 |
| Institutional Investors | | 1,674 |
| | 1,558 |
| | 1,430 |
| Investment Managers | | 1,092 |
| | 1,029 |
| | 954 |
| Investments in New Businesses | | 146 |
| | 116 |
| | 1,846 |
| Total from business segments | | $ | 45,045 |
| | $ | 42,402 |
| | $ | 38,451 |
| Corporate Overhead | | 347 |
| | 228 |
| | 228 |
| | | $ | 45,392 |
| | $ | 42,630 |
| | $ | 38,679 |
|
| | | | | | | | | | | | Total Assets | | | 2016 | | 2015 | Private Banks | | $ | 471,435 |
| | $ | 451,079 |
| Investment Advisors | | 160,717 |
| | 138,459 |
| Institutional Investors | | 109,879 |
| | 105,443 |
| Investment Managers | | 158,621 |
| | 154,432 |
| Investments in New Businesses | | 4,910 |
| | 5,355 |
| Total from business segments | | $ | 905,562 |
| | $ | 854,768 |
| Corporate Overhead (2) | | 731,261 |
| | 733,860 |
| | | $ | 1,636,823 |
| | $ | 1,588,628 |
|
(2) Unallocated assets primarily consist of cash and cash equivalents, marketable securities, and certain other shared services assets. The following table presents revenues based on the location of the use of the products or services: | | | | | | | | | | | | | | For the Year Ended December 31, | | 2016 | | 2015 | | 2014 | United States | | $ | 1,191,640 |
| | $ | 1,123,165 |
| | $ | 1,063,223 |
| International operations | | 209,905 |
| | 211,043 |
| | 202,782 |
| | | $ | 1,401,545 |
| | $ | 1,334,208 |
| | $ | 1,266,005 |
|
The following table presents assets based on their location: | | | | | | | | | | | | 2016 | | 2015 | United States | | $ | 1,317,235 |
| | $ | 1,330,738 |
| International operations | | 319,588 |
| | 257,890 |
| | | $ | 1,636,823 |
| | $ | 1,588,628 |
|
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