Business Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company’s reportable business segments are:

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

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

Institutional Investors – provides investment management and administrative outsourcing platforms to retirement plan sponsors, healthcare systems, higher education and other not-for-profit organizations worldwide;

Investment Managers – provides investment operations outsourcing platforms to fund companies, banking institutions, traditional and non-traditional investment managers worldwide and family offices in the United States; and

Investments in New Businesses – focuses on providing investment management solutions to ultra-high-net-worth families residing in the United States; developing internet-based investment services; developing network and data protection services; modularizing larger technology platforms into stand-alone components; entering new markets; and conducting other research and development activities.

The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes. There are no inter-segment revenues for the three and nine months ended September 30, 2020 and 2019. Management evaluates Company assets on a consolidated basis during interim periods. The accounting policies of the reportable business segments are the same as those described in Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

The following tables highlight certain financial information about each of the Company’s business segments for the three months ended September 30, 2020 and 2019:

	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
	For the Three Months Ended September 30, 2020
Revenues	$	114,792	$	103,189	$	79,583	$	123,846	$	3,517	$	424,927
Expenses	113,066		51,519		37,812		79,838		13,315		295,550
Operating profit (loss)	$	1,726	$	51,670	$	41,771	$	44,008	$	(9,798)	$	129,377

	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
	For the Three Months Ended September 30, 2019
Revenues	$	117,250	$	103,033	$	80,337	$	112,186	$	3,448	$	416,254
Expenses	110,788		51,509		37,268		71,889		7,926		279,380
Operating profit (loss)	$	6,462	$	51,524	$	43,069	$	40,297	$	(4,478)	$	136,874

A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the three months ended September 30, 2020 and 2019 is as follows:

	2020		2019
Total operating profit from segments	$	129,377	$	136,874
Corporate overhead expenses	(18,040)		(16,237)
Income from operations	$	111,337	$	120,637

The following tables provide additional information for the three months ended September 30, 2020 and 2019 pertaining to our business segments:

	Capital Expenditures (1)				Depreciation
	2020		2019		2020		2019
Private Banks	$	7,652	$	8,018	$	4,222	$	3,640
Investment Advisors	3,234		4,468		1,255		1,162
Institutional Investors	698		1,070		298		393
Investment Managers	2,776		5,311		1,818		1,793
Investments in New Businesses	144		379		97		101
Total from business segments	$	14,504	$	19,246	$	7,690	$	7,089
Corporate overhead	274		663		255		320
	$	14,778	$	19,909	$	7,945	$	7,409

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

	Amortization
	2020		2019
Private Banks	$	7,505	$	7,322
Investment Advisors	2,683		2,609
Institutional Investors	426		440
Investment Managers	2,343		2,334
Investments in New Businesses	186		185
Total from business segments	$	13,143	$	12,890
Corporate overhead	57		57
	$	13,200	$	12,947

The following tables highlight certain financial information about each of the Company’s business segments for the nine months ended September 30, 2020 and 2019:

	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
	For the Nine Months Ended September 30, 2020
Revenues	$	335,739	$	299,218	$	235,309	$	359,815	$	10,254	$	1,240,335
Expenses	331,442		154,100		113,016		228,795		37,691		865,044
Operating profit (loss)	$	4,297	$	145,118	$	122,293	$	131,020	$	(27,437)	$	375,291

	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses		Total
	For the Nine Months Ended September 30, 2019
Revenues	$	351,601	$	297,916	$	241,559	$	326,037	$	9,547	$	1,226,660
Expenses	329,540		154,569		115,383		209,326		20,663		829,481
Operating profit (loss)	$	22,061	$	143,347	$	126,176	$	116,711	$	(11,116)	$	397,179

A reconciliation of the total operating profit reported for the business segments to income from operations in the Consolidated Statements of Operations for the nine months ended September 30, 2020 and 2019 is as follows:

	2020		2019
Total operating profit from segments	$	375,291	$	397,179
Corporate overhead expenses	(53,414)		(52,845)
Income from operations	$	321,877	$	344,334

The following tables provide additional information for the nine months ended September 30, 2020 and 2019 pertaining to our business segments:

	Capital Expenditures (1)				Depreciation
	2020		2019		2020		2019
Private Banks	$	24,211	$	25,240	$	12,069	$	10,774
Investment Advisors	12,427		12,973		3,578		3,506
Institutional Investors	3,085		2,990		901		1,212
Investment Managers	19,067		13,535		5,499		5,384
Investments in New Businesses	894		964		243		302
Total from business segments	$	59,684	$	55,702	$	22,290	$	21,178
Corporate Overhead	2,069		1,634		768		984
	$	61,753	$	57,336	$	23,058	$	22,162

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

	Amortization
	2020		2019
Private Banks	$	22,390	$	21,680
Investment Advisors	7,999		7,682
Institutional Investors	1,280		1,300
Investment Managers	7,020		7,019
Investments in New Businesses	556		555
Total from business segments	$	39,245	$	38,236
Corporate Overhead	172		171
	$	39,417	$	38,407