SEI(SEIC) - 2022 Q1 - Quarterly Report

PART I - FINANCIAL INFORMATION This section provides the unaudited consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2022 Item 1. Financial Statements. This section presents the unaudited consolidated financial statements of SEI Investments Company for the three months ended March 31, 2022 and 2021, including balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with detailed notes explaining significant accounting policies, investments, and other financial captions Consolidated Balance Sheets (Unaudited) Presents the company's financial position, including assets, liabilities, and equity, as of March 31, 2022, and December 31, 2021 | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $2,372,606 | $2,354,702 | | Total Liabilities | $399,523 | $493,939 | | Total Shareholders' Equity | $1,973,083 | $1,860,763 | - Total assets increased by $17.9 million, and total shareholders' equity increased by $112.3 million from December 31, 2021, to March 31, 2022, while total liabilities decreased by $94.4 million[13][16] Consolidated Statements of Operations (Unaudited) Details the company's revenues, expenses, and net income for the three months ended March 31, 2022, and 2021 | Metric (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Total Revenues | $581,443 | $455,686 | | Total Expenses | $366,644 | $322,849 | | Income from Operations| $214,799 | $132,837 | | Net Income | $190,308 | $129,470 | | Basic EPS | $1.38 | $0.90 | | Diluted EPS | $1.36 | $0.89 | - Total revenues increased by 27.6% year-over-year, driven by higher asset management, administration, and distribution fees, and a significant increase in information processing and software servicing fees. Net income grew by 46.9% and diluted EPS by 52.8% compared to the prior year period[19] Consolidated Statements of Comprehensive Income (Unaudited) Reports net income and other comprehensive income/loss components for the three months ended March 31, 2022, and 2021 | Metric (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net Income | $190,308 | $129,470 | | Foreign currency translation adjustments | $(4,558) | $1,685 | | Unrealized loss on investments, net of tax | $(3,780) | $(290) | | Total other comprehensive (loss) income, net of tax | $(8,338) | $1,395 | | Comprehensive income | $181,970 | $130,865 | - Comprehensive income increased by 39.1% year-over-year, despite a total other comprehensive loss in 2022 primarily due to negative foreign currency translation adjustments and increased unrealized losses on investments[22] Consolidated Statements of Changes in Equity (Unaudited) Outlines changes in shareholders' equity, including net income, stock repurchases, and stock-based compensation, for the period | Metric (in thousands) | Balance, January 1, 2022 | Balance, March 31, 2022 | | :-------------------- | :----------------------- | :---------------------- | | Total Equity | $1,860,763 | $1,973,083 | | Net income | — | $190,308 | | Other comprehensive loss | — | $(8,338) | | Purchase and retirement of common stock | — | $(100,090) | | Issuance of common stock (employee plans/options) | — | $19,874 | | Stock-based compensation | — | $10,566 | - Total shareholders' equity increased by $112.3 million during the three months ended March 31, 2022, primarily driven by net income and stock-based compensation, partially offset by common stock repurchases and other comprehensive loss[25] Consolidated Condensed Statements of Cash Flows (Unaudited) Summarizes cash flows from operating, investing, and financing activities for the three months ended March 31, 2022, and 2021 | Metric (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $260,427 | $136,573 | | Net cash used in investing activities | $(31,760) | $(30,656) | | Net cash used in financing activities | $(146,652) | $(109,512) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $76,424 | $(2,044) | | Cash, cash equivalents and restricted cash, end of period | $908,182 | $785,683 | - Net cash provided by operating activities significantly increased to $260.4 million in Q1 2022 from $136.6 million in Q1 2021. The company experienced a net increase in cash, cash equivalents, and restricted cash of $76.4 million in Q1 2022, a reversal from a net decrease in the prior year[27] Notes to Consolidated Financial Statements Provides detailed explanations of significant accounting policies, financial captions, and other disclosures supporting the financial statements Note 1. Summary of Significant Accounting Policies Describes the company's business operations, revenue recognition, and key accounting principles, including software development costs and EPS calculation - SEI Investments Company provides comprehensive technology, operational, and investment management services to wealth managers, financial advisors, investment managers, family offices, and institutional/private investors. Revenues are primarily from asset management, administration, distribution fees, and information processing/software servicing fees[29][30][31][32] - The company capitalized $6.6 million in software development costs in Q1 2022, primarily for the SEI Wealth Platform (SWP), which has a net book value of $230.4 million and a weighted average remaining life of 10.2 years[41] Earnings Per Share Calculation | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net income | $190,308 | $129,470 | | Shares used for basic EPS | 137,935,000 | 143,201,000 | | Dilutive effect of stock options | 1,777,000 | 2,105,000 | | Shares used for diluted EPS | 139,712,000 | 145,306,000 | | Basic EPS | $1.38 | $0.90 | | Diluted EPS | $1.36 | $0.89 | Note 2. Investment in Unconsolidated Affiliate Details the company's equity method investment in LSV Asset Management, including its financial contribution and distributions - The Company holds a 38.7% partnership interest in LSV Asset Management, an investment advisor, accounted for using the equity method. The investment value was $52.8 million as of March 31, 2022[45][46] LSV Financials and SEI's Share | Metric (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------- | :-------------------------------- | :-------------------------------- | | LSV Revenues | $108,450 | $110,837 | | LSV Net Income | $83,791 | $85,920 | | SEI's Equity in Earnings of LSV | $32,459 | $33,350 | - SEI received $33.0 million in partnership distributions from LSV in Q1 2022, classified as operating cash flow. LSV's revenues and net income slightly decreased year-over-year[46][47] Note 3. Composition of Certain Financial Statement Captions Breaks down key balance sheet items such as receivables, property and equipment, deferred contract costs, and accrued liabilities Receivables Composition | Metric (in thousands) | March 31, 2022 | December 31, 2021 | | :-------------------- | :------------- | :---------------- | | Trade receivables | $101,117 | $111,209 | | Fees earned, not billed | $330,678 | $315,255 | | Other receivables | $7,437 | $16,747 | | Less: Allowance for doubtful accounts | $(1,388) | $(1,602) | | Total Receivables, net | $437,844 | $441,609 | Property and Equipment, Net | Metric (in thousands) | March 31, 2022 | December 31, 2021 | | :-------------------- | :------------- | :---------------- | | Total Property and Equipment, gross | $597,499 | $588,117 | | Less: Accumulated depreciation | $(417,041) | $(409,248) |\ | Property and Equipment, net | $180,458 | $178,869 | - Deferred contract costs, primarily sales commissions, were $35.8 million as of March 31, 2022. Amortization expense for these costs was $3.9 million in Q1 2022, including $1.8 million accelerated due to a client contract termination[52] Accrued Liabilities Composition | Metric (in thousands) | March 31, 2022 | December 31, 2021 | | :-------------------- | :------------- | :---------------- | | Accrued employee compensation | $42,053 | $107,933 | | Accrued income taxes | $55,278 | — | | Total accrued liabilities | $250,468 | $324,382 | Note 4. Fair Value Measurements Explains the valuation hierarchy for financial assets and liabilities, including Level 1, Level 2, and Level 3 instruments - The Company's financial assets are valued using a fair value hierarchy, with Level 1 assets (e.g., open-ended mutual funds) and Level 2 assets (e.g., GNMA mortgage-backed securities, U.S. government agency notes) comprising the majority. Investment funds sponsored by LSV are measured using NAV as a practical expedient[54][55][56] - Level 3 financial liabilities consist of estimated contingent consideration from an acquisition, valued using a Monte-Carlo simulation model. There were no Level 3 financial assets or transfers between levels during Q1 2022[57] Fair Value of Financial Assets | Asset Category (in thousands) | March 31, 2022 | December 31, 2021 | | :---------------------------- | :------------- | :---------------- | | Equity securities (Level 1) | $11,903 | $12,406 | | Available-for-sale debt securities (Level 2) | $122,814 | $117,135 | | Fixed-income securities owned (Level 2) | $31,258 | $28,267 | | Investment funds sponsored by LSV | $7,270 | $6,916 | | Total | $173,245 | $164,724 | Note 5. Marketable Securities Details the composition and fair value of cash equivalents, available-for-sale debt securities, and equity investments - Cash equivalents, primarily money market funds and commercial paper, had a fair value of $422.6 million at March 31, 2022, with no material unrealized or realized gains/losses[61] Available For Sale and Equity Securities | Metric (in thousands) | March 31, 2022 Fair Value | December 31, 2021 Fair Value | | :-------------------- | :------------------------ | :--------------------------- | | Available-for-sale debt securities | $122,814 | $117,135 | | SEI-sponsored mutual funds | $6,837 | $7,211 | | Equities and other mutual funds | $5,066 | $5,195 | | Total | $134,717 | $129,541 | - Net unrealized losses on available-for-sale debt securities increased to $3.8 million (net of tax) at March 31, 2022, primarily due to interest rate increases affecting GNMA mortgage-backed securities. The Company does not intend to sell these before recovery of cost[62] - The Company recognized unrealized gains of $354 thousand from investments in LSV-sponsored funds during Q1 2022[66] Note 6. Line of Credit Describes the company's credit facility, outstanding balance, and compliance with covenants as of March 31, 2022 - The Company has a $325 million five-year Credit Agreement expiring in April 2026. Borrowings accrue interest based on a base rate or LIBOR plus a premium, with a fallback to SOFR upon LIBOR cessation[68] - As of March 31, 2022, the outstanding balance on the credit facility was $30 million, following a $10 million principal payment in February 2022. The Company was in compliance with all covenants[71][73] - As of April 21, 2022, $288.7 million of the credit facility was available for general corporate purposes, after accounting for outstanding letters of credit[72] Note 7. Shareholders' Equity Covers stock-based compensation, stock option activity, and common stock repurchase programs impacting equity - Stock options have performance-based vesting tied to financial targets, with a minimum service condition. The Company recognized $10.6 million in stock-based compensation expense in Q1 2022, net of a $2.1 million deferred tax benefit[74][75][76] - As of March 31, 2022, $92.1 million of unrecognized compensation cost remained for unvested employee stock options. The total intrinsic value of exercisable options was $103.5 million[76][77] - The Company repurchased 1.7 million shares of common stock for $100.1 million in Q1 2022, reducing total shares outstanding. Approximately $131.2 million remained authorized for repurchases[78] Note 8. Accumulated Other Comprehensive Loss Details the components of accumulated other comprehensive loss, including foreign currency adjustments and unrealized investment losses Components of Accumulated Other Comprehensive Loss (net of tax) | Metric (in thousands) | Balance, January 1, 2022 | Net current-period other comprehensive loss | Balance, March 31, 2022 | | :-------------------- | :----------------------- | :---------------------------------------- | :---------------------- | | Foreign Currency Translation Adjustments | $(19,781) | $(4,558) | $(24,339) | | Unrealized Gains (Losses) on Investments | $(62) | $(3,780) | $(3,842) | | Total Accumulated Other Comprehensive Loss | $(19,843) | $(8,338) | $(28,181) | - Accumulated other comprehensive loss increased from $(19.8) million at January 1, 2022, to $(28.2) million at March 31, 2022, primarily due to foreign currency translation adjustments and unrealized losses on investments[80] Note 9. Business Segment Information Provides financial performance data for the company's five reportable business segments, including revenues and operating profit - SEI operates through five reportable business segments: Private Banks, Investment Advisors, Institutional Investors, Investment Managers, and Investments in New Businesses. Each segment provides distinct platforms and services to specific client types[81] Segment Revenues and Operating Profit (Three Months Ended March 31, 2022) | Segment | Revenues (in thousands) | Operating Profit (in thousands) | | :------------------------ | :---------------------- | :------------------------------ | | Private Banks | $213,548 | $91,593 | | Investment Advisors | $119,230 | $54,710 | | Institutional Investors | $86,839 | $41,481 | | Investment Managers | $156,901 | $58,064 | | Investments in New Businesses | $4,925 | $(7,025) | | Total Operating Profit from Segments | $581,443 | $238,823 | - Total operating profit from segments increased to $238.8 million in Q1 2022 from $154.4 million in Q1 2021. Corporate overhead expenses were $24.0 million in Q1 2022[83][84] Note 10. Income Taxes Discusses unrecognized tax benefits and reconciles the statutory income tax rate to the effective tax rate - The gross liability for unrecognized tax benefits was $15.8 million at March 31, 2022, with $1.4 million in accrued interest and penalties[86][87] Effective Income Tax Rate Reconciliation | Factor | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Statutory rate | 21.0 % | 21.0 % | | State taxes, net of federal tax benefit | 2.9 % | 3.1 % | | Foreign tax expense and tax rate differential | (0.1) % | (0.1) % | | Tax benefit from stock option exercises | (0.4) % | (1.1) % | | Other, net | (0.3) % | (0.3) % | | Effective tax rate | 23.1 % | 22.6 % | - The effective tax rate increased to 23.1% in Q1 2022 from 22.6% in Q1 2021, primarily due to decreased tax benefits from lower stock option exercises[88] Note 11. Commitments and Contingencies Outlines ongoing legal proceedings, including the Stanford Trust Company and SS&C Advent litigations, and their potential impact - The Company is involved in various legal proceedings, including the Stanford Trust Company litigation and the SS&C Advent litigation. In the Stanford Trust cases, federal class actions have been dismissed, and the Company expects remaining ancillary litigations to be resolved in its favor[92][93][94][95] - In the SS&C Advent litigation, SEI Global Services, Inc. (SGSI) filed a complaint alleging breach of contract and other claims. A New York State Court judge granted SGSI's motion for injunctive relief, affirming SGSI's likely success on breach of contract claims and rejecting SS&C Advent's arguments regarding license termination[96][99][104][107] - SGSI's motion for partial summary judgment was granted on April 15, 2022, confirming the perpetual nature of the licenses and that SS&C Advent's termination attempt was a breach of contract. SEI expects the financial impact of this litigation to be immaterial[104][107][109] Note 12. Goodwill and Intangible Assets Reports goodwill by segment and details amortization expense for intangible assets, reflecting recent acquisitions Goodwill by Segment (in thousands) | Segment | Balance, December 31, 2021 | Balance, March 31, 2022 | | :------------------------ | :----------------------- | :---------------------- | | Institutional Investors | $48,911 | $48,911 | | Investment Managers | $56,822 | $57,024 | | Investments in New Businesses | $11,499 | $11,499 | | Total Goodwill | $117,232 | $117,434 | - Goodwill increased slightly due to measurement period adjustments and foreign currency translation. Recent acquisitions in Q4 2021, Finomial and Novus Partners, contributed $4.036 million and $48.911 million to goodwill, respectively[111][112] - Amortization expense for intangible assets acquired through acquisitions increased to $3.3 million in Q1 2022 from $0.9 million in Q1 2021, reflecting the impact of recent acquisitions[115] Note 13. Revenues from Contracts with Customers Disaggregates revenues by major product lines and primary geographic markets, including details on one-time termination fees - The Company's principal revenue sources are asset management, administration, and distribution fees (based on assets) and information processing and software servicing fees (recurring or project-oriented)[116] Disaggregated Revenues by Major Product Lines (Three Months Ended March 31, 2022) | Major Product Lines (in thousands) | Private Banks | Investment Advisors | Institutional Investors | Investment Managers | Investments in New Businesses | Total | | :--------------------------------- | :------------ | :------------------ | :---------------------- | :------------------ | :---------------------------- | :---- | | Investment management fees from pooled investment products | $33,118 | $71,993 | $13,866 | $84 | $367 | $119,428 | | Investment management fees from investment management agreements | $255 | $42,008 | $68,460 | — | $4,126 | $114,849 | | Investment operations fees | $360 | — | — | $145,379 | — | $145,739 | | Investment processing fees - PaaS | $56,455 | — | — | — | — | $56,455 | | Investment processing fees - SaaS | $29,559 | — | $3,110 | $3,658 | — | $36,327 | | Professional services fees | $92,729 | — | — | $389 | — | $93,118 | | Account fees and other | $1,072 | $5,229 | $1,403 | $7,391 | $432 | $15,527 | | Total Revenues | $213,548 | $119,230 | $86,839 | $156,901 | $4,925 | $581,443 | - Professional services fees in the Private Banks segment include $88.0 million in one-time early termination fees from a significant client, recognized entirely in Q1 2022 due to no future performance obligations[117] Disaggregated Revenues by Primary Geographic Markets (Three Months Ended March 31, 2022) | Primary Geographic Markets (in thousands) | Private Banks | Investment Advisors | Institutional Investors | Investment Managers | Investments in New Businesses | Total | | :---------------------------------------- | :------------ | :------------------ | :---------------------- | :------------------ | :---------------------------- | :---- | | United States | $80,886 | $119,230 | $70,563 | $144,025 | $4,925 | $419,629 | | United Kingdom | $116,663 | — | $12,749 | — | — | $129,412 | | Canada | $11,800 | — | $1,242 | — | — | $13,042 | | Ireland | $4,199 | — | $2,167 | $9,822 | — | $16,188 | | Luxembourg | — | — | — | $3,054 | — | $3,054 | | Other | — | — | $118 | — | — | $118 | | Total Revenues | $213,548 | $119,230 | $86,839 | $156,901 | $4,925 | $581,443 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. This section provides management's perspective on the Company's financial condition and results of operations for the three months ended March 31, 2022, compared to the prior year. It highlights key drivers of revenue and expense changes, segment performance, asset balances, and liquidity, along with an overview of regulatory matters and forward-looking statements Overview Provides a high-level summary of the company's business, asset balances, and key financial performance metrics for the quarter - SEI is a global provider of technology-driven wealth and investment management solutions, managing, advising, or administering $1.3 trillion in assets as of March 31, 2022, including $385.3 billion in assets under management and $899.6 billion in client assets under administration[131] Consolidated Summary of Operations (Three Months Ended March 31) | Metric (in thousands) | 2022 | 2021 | Percent Change | | :-------------------- | :-------- | :-------- | :------------- | | Revenues | $581,443 | $455,686 | 28% | | Expenses | $366,644 | $322,849 | 14% | | Income from operations| $214,799 | $132,837 | 62% | | Net income | $190,308 | $129,470 | 47% | | Diluted EPS | $1.36 | $0.89 | 53% | - Key impacts include a 28% increase in revenues, driven by higher asset management/administration fees and a one-time $88.0 million early termination fee from a Private Banks segment client. Operating expenses increased by 14% due to direct costs, higher personnel costs, and acquisition-related expenses[133][134] Ending Asset Balances Presents the company's total assets under management and administration by segment as of March 31, 2022 Ending Asset Balances by Segment (as of March 31, 2022, in millions) | Segment | Total Assets Under Management | Client Assets Under Administration/Advisement | Total Assets | | :------------------------ | :---------------------------- | :-------------------------------------------- | :----------- | | Private Banks | $29,567 | $4,449 | $34,016 | | Investment Advisors | $82,224 | $14,151 (Platform-only) | $96,375 | | Institutional Investors | $89,514 | $4,778 (Advisement) | $94,292 | | Investment Managers | $85,695 | $895,181 | $980,876 | | Investments in New Businesses | $2,362 | $1,401 (Advisement) | $3,763 | | LSV | $95,962 | — | $95,962 | | Total | $385,324 | $919,960 | $1,305,284 | - Total assets increased by 5% to $1.3 trillion as of March 31, 2022, compared to March 31, 2021. Client assets under administration in the Investment Managers segment grew by 8% to $895.2 billion[136] Average Asset Balances Details the average assets under management and administration by segment for the three months ended March 31, 2022 Average Asset Balances by Segment (Three Months Ended March 31, 2022, in millions) | Segment | Total Average Assets Under Management | Average Client Assets Under Administration/Advisement | Total Average Assets | | :------------------------ | :------------------------------------ | :---------------------------------------------------- | :------------------- | | Private Banks | $30,046 | $4,500 | $34,546 |\ | Investment Advisors | $82,727 | $13,978 (Platform-only) | $96,705 |\ | Institutional Investors | $91,478 | $4,889 (Advisement) | $96,367 |\ | Investment Managers | $87,065 | $888,854 | $975,919 |\ | Investments in New Businesses | $2,311 | $1,397 (Advisement) | $3,708 |\ | LSV | $96,449 | — | $96,449 |\ | Total | $390,076 | $910,220 | $1,303,694 | - Total average assets increased by 7% to $1.3 trillion for the three months ended March 31, 2022, compared to the prior year. Average client assets under administration grew by 9% to $893.4 billion[139] Business Segments Analyzes the revenue and operating profit performance of each business segment, highlighting key drivers of change Segment Performance (Three Months Ended March 31, 2022 vs. 2021) | Segment | 2022 Revenues (in thousands) | 2021 Revenues (in thousands) | Revenue Change | 2022 Operating Profit (in thousands) | 2021 Operating Profit (in thousands) | Operating Profit Change | | :------------------------ | :--------------------------- | :--------------------------- | :------------- | :----------------------------------- | :----------------------------------- | :---------------------- | | Private Banks | $213,548 | $117,608 | 82% | $91,593 | $6,884 | NM | | Investment Advisors | $119,230 | $113,294 | 5% | $54,710 | $58,267 | (6)% | | Institutional Investors | $86,839 | $84,499 | 3% | $41,481 | $45,341 | (9)% | | Investment Managers | $156,901 | $136,419 | 15% | $58,064 | $53,399 | 9% | | Investments in New Businesses | $4,925 | $3,866 | 27% | $(7,025) | $(9,538) | NM | - Private Banks revenues surged 82% due to an $88.0 million early termination fee and increased investment processing fees. Investment Advisors saw a 5% revenue increase from separately managed account fees, despite decreased investment management fees[144][145] - Institutional Investors' revenues grew 3% from acquisitions (SEI Novus, Atlas Master Trust) and market appreciation, but operating profit declined 9% due to increased personnel and professional fees related to these acquisitions. Investment Managers' revenues increased 15% from higher client asset valuations and positive cash flows[148] Other Financial Information Covers corporate overhead, other income/expense, amortization, tax rates, and cash flow activities for the period - Corporate overhead expenses increased to $24.0 million in Q1 2022, up from $21.5 million in Q1 2021, primarily due to higher personnel, consulting, and professional fees[149] Other Income and Expense Items (in thousands) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Net (loss) gain from investments | $(489) | $332 | | Interest and dividend income | $848 | $945 | | Interest expense | $(250) | $(123) | | Equity in earnings of unconsolidated affiliate | $32,459 | $33,350 | | Total other income and expense items, net | $32,568 | $34,504 | - Equity in earnings from LSV decreased by 3% to $32.5 million in Q1 2022, mainly due to negative cash flows and client losses offsetting market appreciation. Total amortization expense increased to $16.9 million, driven by acquisitions and SWP enhancements[152][153][155] - The effective income tax rate increased to 23.1% in Q1 2022, primarily due to decreased tax benefits from lower stock option exercises. Stock-based compensation expense was $10.6 million[156][157] - Net cash provided by operating activities increased by $123.9 million in Q1 2022. Net cash used in financing activities included $100.2 million for common stock repurchases and $55.5 million for dividend payments[161][167][168][172] Item 3. Quantitative and Qualitative Disclosures About Market Risk. This section refers to the Company's Annual Report on Form 10-K for the year ended December 31, 2021, for detailed information on quantitative and qualitative disclosures about market risk. No material changes to this information were reported for the current period - No material changes to market risk disclosures were reported from the Annual Report on Form 10-K for the year ended December 31, 2021[185] Item 4. Controls and Procedures. Management, including the CEO and CFO, evaluated the effectiveness of the Company's disclosure controls and procedures as of March 31, 2022, concluding they were effective. No material changes in internal control over financial reporting occurred during the quarter - Disclosure controls and procedures were evaluated as effective as of March 31, 2022[186] - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2022[187] PART II - OTHER INFORMATION This section provides additional information on legal proceedings, risk factors, equity sales, and exhibits Item 1. Legal Proceedings. The Company and its subsidiaries are involved in various legal proceedings in the ordinary course of business, which are not believed to be material. Details of these proceedings are summarized in Note 11 to the Consolidated Financial Statements - The Company is party to various legal proceedings, examinations, and investigations arising in the ordinary course of business, none of which are believed to have a material adverse effect on SEI as a whole[189] - Specific proceedings are detailed in Note 11, including the Stanford Trust Company litigation and SS&C Advent litigation[189] Item 1A. Risk Factors. This section refers to the Company's Annual Report on Form 10-K for the year ended December 31, 2021, for a comprehensive discussion of risk factors. No material changes to these risk factors were reported for the current period - No material changes in risk factors were reported from those disclosed in the Annual Report on Form 10-K for 2021[190] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. The Company's Board of Directors has authorized a common stock repurchase program. During the three months ended March 31, 2022, the Company repurchased 1.713 million shares for a total cost of $100.09 million - The Board of Directors has authorized the repurchase of up to $5.128 billion worth of common stock, with no expiration date[191] Common Stock Repurchases (Three Months Ended March 31, 2022) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program | | :---------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------------- | | January 2022| 163,000 | $56.12 | $222,163,000 | | February 2022| 764,000 | $58.87 | $177,187,000 | | March 2022 | 786,000 | $58.46 | $131,204,000 | | Total | 1,713,000 | $58.43 | — | Item 6. Exhibits. This section lists the exhibits filed as part of the Form 10-Q, including certifications (Rule 13a-15(e)/15d-15(e) and Section 1350) and XBRL-related documents - Exhibits include CEO and CFO certifications (Rule 13a-15(e)/15d-15(e) and Section 1350) and various XBRL taxonomy documents[193] Signatures The report is duly signed on behalf of SEI Investments Company by Dennis J. McGonigle, Chief Financial Officer, on April 25, 2022 - The report was signed by Dennis J. McGonigle, Chief Financial Officer, on April 25, 2022[195]