Revenues from Contracts with Customers

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

The Company’s principal sources of revenues are: (1) asset management, administration and distribution fees primarily earned based upon a contractual percentage of net assets under management or administration; and (2) information processing and software servicing fees that are either recurring and primarily earned based upon the number of trust accounts being serviced or a percentage of the total average daily market value of the clients' assets processed on the Company's platforms, or non-recurring and based upon project-oriented contractual agreements related to client implementations.

Disaggregation of Revenue

The following tables provide additional information pertaining to our revenues disaggregated by major product line and primary geographic market based on the location of the use of the products or services for each of the Company’s business segments for the three and nine months ended September 30, 2018:



	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
Major Product Lines:	For the Three Months Ended September 30, 2018
Investment management fees from pooled investment products	$	34,897	$	73,663	$	14,614	$	206	$	267	$	123,647
Investment management fees from investment management agreements	197		24,525		68,318		79		2,641		95,760
Investment operations fees	381		—		—		92,185		—		92,566
Investment processing fees - PaaS	44,836		—		—		624		—		45,460
Investment processing fees - SaaS	32,925		—		—		2,417		—		35,342
Professional services fees	3,408		—		—		1,792		—		5,200
Account fees and other	1,805		4,362		534		3,972		34		10,707
Total revenues	$	118,449	$	102,550	$	83,466	$	101,275	$	2,942	$	408,682

Primary Geographic Markets:
United States	$	73,188	$	102,550	$	64,601	$	95,132	$	2,942	$	338,413
United Kingdom	28,647		—		13,817		—		—		42,464
Canada	11,730		—		1,895		—		—		13,625
Ireland	4,884		—		2,828		6,143		—		13,855
Other	—		—		325		—		—		325
Total revenues	$	118,449	$	102,550	$	83,466	$	101,275	$	2,942	$	408,682



	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
Major Product Lines:	For the Nine Months Ended September 30, 2018
Investment management fees from pooled investment products	$	105,251	$	218,562	$	45,819	$	445	$	729	$	370,806
Investment management fees from investment management agreements	609		70,678		205,202		242		6,824		283,555
Investment operations fees	1,138		—		—		267,951		—		269,089
Investment processing fees - PaaS	133,336		—		—		1,749		—		135,085
Investment processing fees - SaaS	102,980		—		—		7,152		—		110,132
Professional services fees	13,022		—		—		5,660		—		18,682
Account fees and other	5,403		12,392		1,370		12,497		99		31,761
Total revenues	$	361,739	$	301,632	$	252,391	$	295,696	$	7,652	$	1,219,110

Primary Geographic Markets:
United States	$	226,990	$	301,632	$	193,417	$	279,736	$	7,652	$	1,009,427
United Kingdom	85,177		—		42,498		—		—		127,675
Canada	34,847		—		6,700		—		—		41,547
Ireland	14,725		—		8,282		15,960		—		38,967
Other	—		—		1,494		—		—		1,494
Total revenues	$	361,739	$	301,632	$	252,391	$	295,696	$	7,652	$	1,219,110

Investment management fees from pooled investment products - Revenues associated with clients' assets invested in Company-sponsored pooled investment products. Contractual fees are stated as a percentage of the average market value of assets under management and collected on a monthly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Investment management fees from investment management agreements - Revenues based on assets of clients of the Institutional Investors segment primarily invested in Company-sponsored products. Each client is charged an investment management fee that is stated as a percentage of the average market value of all assets under management. The client is billed directly on a quarterly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Revenues associated with the separately managed account program offered through registered investment advisors located throughout the United States. The contractual fee is stated as a percentage of the average market value of all assets invested in the separately managed account and collected on a quarterly basis. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Investment operations fees - Revenues earned from accounting and administrative services, distribution support services and regulatory and compliance services to investment management firms and family offices. The Company contracts directly with the investment management firm or family office. The contractual fees are stated as a percentage of net assets under administration and billed when asset valuations are finalized. Revenues are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Investment processing fees - Software as a Service - Revenues associated with clients that outsource investment processing technology software and computer processing by accessing our proprietary software and data center remotely but retain responsibility for all investment operations, client administration and other back-office trust operations. The contractual fee is based on a monthly fee plus additional fees determined on a per-account or per-transaction basis. The client is billed directly on a monthly basis. Revenues are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations.

Investment processing fees - Platform as a Service - Revenues associated with clients that outsource their entire investment operation and back-office processing functions. Through the use of the Company's proprietary platforms, the Company assumes all back-office investment processing services including investment processing, custody and safekeeping of assets, income collections, securities settlement and other related trust activities. The contractual fee is based on a monthly fee plus additional fees determined on a per-account or per-transaction basis. Contractual fees can also be stated as a percentage of the value of assets processed on the Company's platforms each month as long as the fee is in excess of a monthly contractual minimum. The client is billed directly on a monthly basis. Revenues are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations.

Professional services fees - Revenues associated with the business services migration for investment processing clients of the Private Banks segment and investment operations clients of the Investment Managers segment. In addition, Professional services include other services such as business transformation consulting. Typically, fees are stated as a contractual fixed fee. The client is billed directly and fees are collected according to the terms of the agreement.

Other - Revenues associated with custody account servicing, account terminations, reimbursements received for out-of-pocket expenses, and other fees for the provision of ancillary services.

Revenue is recognized by the Company when the performance obligations are satisfied and transfer of control to the client is completed. The majority of the Company’s performance obligations are satisfied and control is transferred to the client continuously. Therefore, revenue is recognized on a monthly basis. The amount of revenue recognized reflects the amount of consideration expected to be received by the Company in exchange for satisfied performance obligations.

Deferred Contract Costs

Deferred contract costs, which primarily consist of deferred sales commissions, were $22,104 as of September 30, 2018. The Company recorded a cumulative effect adjustment on January 1, 2018 of $18,641 associated with the capitalization of contract costs upon the adoption of ASC 606 (See Note 1). The Company deferred expenses related to contract costs of $1,400 and $5,483 during the three and nine months ended September 30, 2018, respectively. Amortization expense related to deferred contract costs were $819 and $2,020 during the three and nine months ended September 30, 2018, respectively. There was no impairment loss in relation to deferred contract costs during the nine months ended September 30, 2018.