Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2011	Apr. 30, 2011
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q1
Entity Registrant Name	SEI INVESTMENTS CO
Entity Central Index Key	0000350894
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		185,210,227

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2011	Dec. 31, 2010
Current Assets:
Cash and cash equivalents	$ 498,039	$ 496,292
Restricted cash	4,000	4,000
Receivables from regulated investment companies	28,458	29,282
Receivables, net of allowance for doubtful accounts of $959 and $1,195 (Note 4)	133,728	136,490
Deferred income taxes	1,035	1,387
Securities owned (Note 6)	20,009	0
Other current assets	17,478	16,268
Total Current Assets	702,747	683,719
Property and Equipment, net of accumulated depreciation and amortization of $172,494 and $166,816 (Note 4)	142,333	140,568
Capitalized Software, net of accumulated amortization of $96,928 and $90,947	299,006	294,332
Investments Available for Sale (Note 6)	74,836	74,770
Trading Securities (Note 6)	73,548	104,594
Investment in Unconsolidated Affiliate (Note 2)	69,237	64,409
Other Assets, net	16,328	14,831
Total Assets	1,378,035	1,377,223
Current Liabilities:
Accounts payable	2,741	4,582
Accrued liabilities (Note 4)	121,239	121,410
Deferred revenue	1,086	1,608
Total Current Liabilities	125,066	127,600
Long-term Debt (Note 7)	60,000	95,000
Deferred Income Taxes	94,074	92,253
Other Long-term Liabilities (Note 11)	5,939	5,645
Liabilities, Total	285,079	320,498
Commitments and Contingencies (Note 12)
SEI Investments shareholders' equity:
Common stock, $.01 par value, 750,000 shares authorized; 185,059 and 186,141 shares issued and outstanding	1,851	1,861
Capital in excess of par value	576,280	565,393
Retained earnings	493,646	471,159
Accumulated other comprehensive income, net	5,292	3,157
Total SEI Investments shareholders' equity	1,077,069	1,041,570
Noncontrolling interest	15,887	15,155
Total Equity	1,092,956	1,056,725
Total Liabilities and Equity	$ 1,378,035	$ 1,377,223

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2011	Dec. 31, 2010
Consolidated Balance Sheets
Receivables, allowance for doubtful accounts	$ 959	$ 1,195
Property and Equipment, accumulated depreciation and amortization	172,494	166,816
Capitalized Software, accumulated amortization	$ 96,928	$ 90,947
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	750,000	750,000
Common stock, shares issued	185,059	186,141
Common stock, shares outstanding	185,059	186,141

Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
Revenues:
Asset management, administration and distribution fees	$ 167,504	$ 152,938
Information processing and software servicing fees	55,824	58,626
Transaction-based and trade execution fees	9,165	9,971
Total revenues	232,493	221,535
Expenses:
Subadvisory, distribution and other asset management costs	26,296	25,583
Software royalties and other information processing costs	7,017	6,074
Brokerage commissions	6,581	7,425
Compensation, benefits and other personnel	71,025	67,216
Stock-based compensation	3,732	6,657
Consulting, outsourcing and professional fees	25,998	20,707
Data processing and computer related	11,303	9,928
Facilities, supplies and other costs	14,102	13,494
Amortization	6,231	5,900
Depreciation	5,611	5,206
Total expenses	177,896	168,190
Income from operations	54,597	53,345
Net gain from investments	7,278	17,479
Interest and dividend income	1,544	1,700
Interest expense	(204)	(471)
Equity in earnings of unconsolidated affiliate	28,949	24,074
Net income before income taxes	92,164	96,127
Income taxes	34,124	36,269
Net income	58,040	59,858
Less: Net income attributable to the noncontrolling interest	(312)	(438)
Net income attributable to SEI Investments Company	$ 57,728	$ 59,420
Basic earnings per common share	$ 0.31	$ 0.31
Diluted earnings per common share	$ 0.31	$ 0.31

Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
Consolidated Statements of Comprehensive Income
Net income	$ 58,040	$ 59,858
Other comprehensive income, net of tax:
Foreign currency translation adjustments	2,828	777
Unrealized holding gain on investments:
Unrealized holding gains during the period, net of income tax expense of $112 and $345	(170)	0
Less: reclassification adjustment for losses realized in net income, net of income tax benefit of $60 and $15	(103)	27
Unrealized holding gain on investments, total	(273)	27
Total other comprehensive income, net of tax	2,555	804
Comprehensive income	60,595	60,662
Comprehensive income attributable to the noncontrolling interest	(732)	(931)
Comprehensive income attributable to SEI Investments Company	$ 59,863	$ 59,731

Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
Consolidated Statements of Comprehensive Income
Unrealized holding gains during the period, income tax expense	$ 112	$ 345
Reclassification adjustment for losses realized in net income, income tax (benefit) expense	$ 60	$ 15

Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2011

Mar. 31, 2010

Cash flows from operating activities:

Net income

$ 58,040

$ 59,858

Adjustments to reconcile net income to net cash provided by operating activities

296

(41,758)

Net cash provided by operating activities

58,336

18,100

Cash flows from investing activities:

Additions to restricted cash

(2,000)

Additions to property and equipment

(7,368)

(4,541)

Additions to capitalized software

(10,655)

(8,407)

Purchase of marketable securities

(27,307)

(13,987)

Prepayments and maturities of marketable securities

10,140

12,740

Sale of marketable securities

36,812

5,869

Sale of other investments

4,905

LSV and LSV Employee Group cash balances, net (A)

^[1]

(37,083)

^[1]

Net cash used in investing activities

6,527

(47,409)

Cash flows from financing activities:

Payments on long-term debt

(35,000)

(33,000)

Purchase and retirement of common stock

(39,501)

(17,313)

Proceeds from issuance of common stock

10,594

6,072

Tax benefit on stock options exercised

791

455

Payment of dividends

(17,121)

Net cash used in financing activities

(63,116)

(60,907)

Net increase (decrease) in cash and cash equivalents

1,747

(90,216)

Cash and cash equivalents, beginning of period

496,292

590,877

Cash and cash equivalents, end of period

$ 498,039

$ 500,661

[1]	Cash balances, net of the partnership distribution payment received in the three months ended March 31, 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.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2011

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 1.

Summary of Significant Accounting Policies

Nature of Operations

SEI Investments Company (the Company), a Pennsylvania corporation, provides investment processing, fund processing, and investment management business outsourcing solutions to corporations, financial institutions, financial advisors, and ultra-high-net-worth families in the United States, Canada, the United Kingdom, continental Europe, and other various locations throughout the world. Investment processing solutions utilize the Company's proprietary software systems to track investment activities in multiple types of investment accounts, including personal trust, corporate trust, institutional trust, and non-trust investment accounts, thereby allowing banks and trust companies to outsource trust and investment related activities. Revenues from investment processing solutions are recognized in Information processing and software servicing fees on the accompanying Consolidated Statements of Operations, except for fees earned associated with trade execution services.

The fund processing solution offers a full range of administration and distribution support services to mutual funds, collective trust funds, single-manager hedge funds, funds of hedge funds, private equity funds and other types of investment funds. Administrative services include fund accounting, trustee and custodial support, legal support, transfer agency and shareholder servicing. Distribution support services range from market and industry insight and analysis to identifying distribution opportunities. Revenues from fund processing solutions are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Investment management programs consist of mutual funds, alternative investments and separate accounts. These include a series of money market, equity, fixed-income and alternative investment portfolios, primarily in the form of registered investment companies. The Company serves as the administrator and investment advisor for many of these products. Revenues from investment management programs are recognized in Asset management, administration and distribution fees on the accompanying Consolidated Statements of Operations.

Basis of Presentation

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain financial information and accompanying note disclosure normally included in the Company's Annual Report on Form 10-K has been condensed or omitted. The interim financial information is unaudited but reflects all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of financial position of the Company as of March 31, 2011, the results of operations for the three months ended March 31, 2011 and 2010, and cash flows for the three month periods ended March 31, 2011 and 2010. These interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2010.

Except as disclosed herein, there have been no significant changes in significant accounting policies during the three months ended March 31, 2011 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2010.

Cash and Cash Equivalents

Cash and cash equivalents includes $384,337 and $383,946 at March 31, 2011 and December 31, 2010, respectively, primarily invested in SEI-sponsored open-ended money market mutual funds.

Restricted Cash

Restricted cash includes $3,000 at March 31, 2011 and December 31, 2010 segregated for regulatory purposes related to trade-execution services conducted by SEI Investments (Europe) Limited. Restricted cash also includes $1,000 at March 31, 2011 and December 31, 2010 segregated in special reserve accounts for the benefit of customers of the Company's broker-dealer subsidiary, SEI Investments Distribution Co. (SIDCO), in accordance with certain rules established by the Securities and Exchange Commission for broker-dealers.

Capitalized Software

The Company capitalized $10,655 and $8,407 of software development costs during the three months ended March 31, 2011 and 2010, respectively. As of March 31, 2011, capitalized software placed into service included on the accompanying Consolidated Balance Sheet had a weighted average remaining life of approximately 11.2 years. Amortization expense related to capitalized software was $5,981 and $5,651 during the three months ended March 31, 2011 and 2010, respectively.

Software development costs capitalized during the three months ended March 31, 2011 and 2010 relates to the continued development of the Global Wealth Platform (GWP). As of March 31, 2011, the net book value of GWP was $284,775 (net of accumulated amortization of $67,992), including $12,936 of capitalized software development costs in-progress associated with future releases. GWP has an estimated useful life of 15 years and a weighted average remaining life of 11.3 years. Amortization expense for GWP was $5,840 and $5,510 during the three months ended March 31, 2011 and 2010, respectively.

Earnings per Share

The calculations of basic and diluted earnings per share for the three months ended March 31, 2011 and 2010 are:


	For the Three Month Period Ended March 31, 2011
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount

Basic earnings per common share	$	57,728		185,787	$	.31


Dilutive effect of stock options		0		2,708


Diluted earnings per common share	$	57,728		188,495	$	.31


	For the Three Month Period Ended March 31, 2010
	Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount

Basic earnings per common share	$	59,420		189,948	$	.31


Dilutive effect of stock options		0		1,114


Diluted earnings per common share	$	59,420		191,062	$	.31

Employee stock options to purchase 7,609,000 and 20,375,000 shares of common stock, with an average exercise price of $28.26 and $22.22, were outstanding during the three month periods ended March 31, 2011 and 2010, respectively, but not included in the computation of diluted earnings per common share because the effect on diluted earnings per common share would have been anti-dilutive.

New Accounting Pronouncements

There have been no new accounting pronouncements of significance to the Company during the three months ended March 31, 2011 as compared to the recent accounting pronouncements 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, 2010.

Statements of Cash Flows

For purposes of the Consolidated Statements of Cash Flows, the Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents.

The following table provides the details of the adjustments to reconcile net income to net cash provided by operating activities for the three months ended March 31:


	2011			2010

Net income	$	58,040		$	59,858

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation		5,611			5,206
Amortization Equity in earnings of unconsolidated affiliate		6,231 (28,949	)		5,900 (24,074	)
Distributions received from unconsolidated affiliate		23,802			0
Stock-based compensation		3,732			6,657
Provision for losses on receivables		(236	)		(753	)
Deferred income tax expense		2,345			3,204
Net realized gains from investments		(7,278	)		(17,479	)
Change in other long-term liabilities		294			(398	)
Change in other assets		(1,841	)		(805	)
Other		3,036			1,719
Change in current asset and liabilities
Decrease (increase) in
Receivables from regulated investment companies		824			(2,726	)
Receivables		(3,551	)		(8,271	)
Other current assets		(1,210	)		(3,315	)
Increase (decrease) in
Accounts payable		(1,841	)		4,413
Accrued liabilities		(151	)		(10,397	)
Deferred revenue		(522	)		(639	)

Total adjustments		296			(41,758	)

Net cash provided by operating activities	$	58,336		$	18,100

Reclassifications

Certain prior year amounts have been reclassified to conform to current year presentation.

Investment in Unconsolidated Affiliate

3 Months Ended

Mar. 31, 2011

Investment in Unconsolidated Affiliate

Investment in Unconsolidated Affiliate

Note 2.

Investment in Unconsolidated Affiliate

The Company has an investment in the general partnership LSV Asset Management (LSV). LSV is a registered investment advisor that provides investment advisory services to institutions, including pension plans and investment companies. LSV is currently an investment sub-advisor for a small number of SEI-sponsored mutual funds. The Company's total partnership interest in LSV was approximately 42 percent during 2011 and 2010. The Company accounts for its interest in LSV using the equity method because of its less than 50 percent ownership. The Company's interest in the net assets of LSV is reflected in Investment in unconsolidated affiliate on the accompanying Consolidated Balance Sheet and its interest in the earnings of LSV is reflected in Equity in earnings of unconsolidated affiliate on the accompanying Consolidated Statement of Operations.

At March 31, 2011, the Company's total investment in LSV was $69,237. The investment in LSV exceeded the underlying equity in the net assets of LSV by $4,045, of which $3,062 is considered goodwill embedded in the investment. The Company receives partnership distributions from LSV on a quarterly basis. The Company received partnership distribution payments from LSV for $23,802 and $21,242 in the three months ended March 31, 2011 and 2010, respectively. The partnership distribution payment of $21,242 received in the three months ended March 31, 2010 is reflected in LSV and LSV Employee Group cash balances, net on the accompanying Consolidated Statement of Cash Flows.

The Company's proportionate share in the earnings of LSV was $28,949 and $24,074 during the three months ended March 31, 2011 and 2010, respectively.

The following table contains the condensed statements of operations of LSV for the three months ended March 31, 2011 and 2010:


	Three Months Ended March 31,
	2011		2010
Revenues	$	79,402	$	66,009
Net income		69,946		57,972

Guaranty Agreements

In 2006, LSV Employee Group purchased an eight percent interest in LSV from two existing partners. In order to finance a portion of the purchase price, LSV Employee Group obtained financing from Bank of America, N.A. (Bank of America) and certain other lenders in the form of a term loan pursuant to the terms of a Credit Agreement. The principal amount of the term loan was $82,800. In January 2011, LSV Employee Group and Bank of America agreed to amend the Credit Agreement and extend the maturity date of the loan from January 2011 to July 2012. The Company's obligations under the Guaranty Agreement remain in full force and effect with respect to the amended Credit Agreement. The principal amount and interest of the term loan are paid in quarterly installments. LSV Employee Group made principal payments of $5,576 during 2011. As of April 30, 2011, the remaining unpaid principal balance of the term loan was $4,515. As of April 30, 2011, the Company, in its capacity as guarantor, currently has no obligation of payment relating to the term loan of LSV Employee Group and, furthermore, fully expects that LSV Employee Group will meet all of its future obligations regarding the term loan.

In April 2011, a group of existing employees of LSV agreed to purchase a partnership interest of an existing LSV employee for $4,300 of which $3,655 will be financed through a new term loan with Bank of America. The group of existing LSV employees will make up a new limited liability company called LSV Employee Group II, LLC. The Company provided an unsecured guaranty to the lenders of all the obligations of LSV Employee Group II, LLC. The lenders will have the right to seek payment from the Company in the event of a default by LSV Employee Group II, LLC. The term loan has a four year term and will be repaid from the quarterly distributions of LSV. The Company's direct interest in LSV is unchanged as a result of this transaction. The Company has determined that LSV Employee Group II is a variable interest entity (VIE); however, the Company is not considered the primary beneficiary because it does not have the power to direct the activities that most significantly impact the economic performance of LSV Employee Group II either directly or through any financial responsibility from the guaranty.

Variable Interest Entities - Investment Products

3 Months Ended

Mar. 31, 2011

Variable Interest Entities - Investment Products

Variable Interest Entities - Investment Products

Note 3.

Variable Interest Entities – Investment Products

The Company has created numerous investment products for its clients in various types of legal entity structures. The Company serves as the Manager, Administrator and Distributor for these investment products and may also serve as the Trustee for some of the investment products. Clients are the equity investors and participate in proportion to their ownership percentage in the net income and net capital gains of the products, and, on liquidation, will participate in proportion to their ownership percentage in the remaining net assets of the products after satisfaction of outstanding liabilities. Some of the Company's investment products have been determined to be VIEs at inception.

The Company does not have a significant equity investment in any of the VIEs and does not have an obligation to enter into any guarantee agreements with the VIEs. The Company is not the primary beneficiary of the VIEs because the expected fees and the expected return on any investment into the VIE by the Company relative to the expected returns of the VIE to the equity investor holders does not approach 50 percent of the expected losses or gains of the VIEs. Therefore, the Company is not required to consolidate any investment products that are VIEs into its financial statements. The Company's variable interest in the VIEs, which consists of management fees and in some situations, seed capital, is not considered a significant variable interest.

The risks to the Company associated with its involvement with any of the investment products that are VIEs are limited to the cash flows received from the revenue generated for asset management, administration and distribution services and any equity investments in the VIEs. Both of these items are not significant. The Company has no other financial obligation to the VIEs.

Amounts relating to fees received from the VIEs included in Receivables and amounts relating to equity investments in the VIEs included in Investments Available for Sale on the Company's Consolidated Balance Sheets are not significant to the total assets of the Company.

Composition of Certain Financial Statement Captions

3 Months Ended

Mar. 31, 2011

Composition of Certain Financial Statement Captions

Composition of Certain Financial Statement Captions

Note 4.

Composition of Certain Financial Statement Captions

Receivables

Receivables on the accompanying Consolidated Balance Sheets consist of:


	March 31, 2011			December 31, 2010

Trade receivables	$	33,463		$	34,528
Fees earned, not billed		97,240			93,506
Other receivables		3,984			9,651


		134,687			137,685
Less: Allowance for doubtful accounts		(959	)		(1,195	)


	$	133,728		$	136,490

Fees earned, not billed represents receivables earned but unbilled and results from timing differences between services provided and contractual billing schedules. These billing schedules generally provide for fees to be billed on a quarterly basis.

Receivables from regulated investment companies on the accompanying Consolidated Balance Sheets primarily represent fees receivable for distribution, investment advisory, and administration services to various regulated investment companies sponsored by SEI.

Property and Equipment

Property and Equipment on the accompanying Consolidated Balance Sheets consists of:


	March 31, 2011			December 31, 2010

Buildings	$	136,144		$	135,935
Equipment		66,233			63,902
Land		9,890			9,890
Purchased software		79,156			74,720
Furniture and fixtures		18,903			18,566
Leasehold improvements		4,337			4,250
Construction in progress		164			121


		314,827			307,384

Less: Accumulated depreciation		(172,494	)		(166,816	)


Property and Equipment, net	$	142,333		$	140,568

The Company recognized $5,611 and $5,206 in depreciation expense related to property and equipment for the three months ended March 31, 2011 and 2010, respectively.

Accrued Liabilities

Accrued liabilities on the accompanying Consolidated Balance Sheets consist of:


	March 31, 2011		December 31, 2010

Accrued employee compensation	$	17,642	$	43,747
Accrued employee benefits and other personnel		5,624		6,988
Accrued consulting, outsourcing and professional fees		18,140		16,390
Accrued brokerage fees		10,780		11,942
Accrued sub-advisory, distribution and other asset management fees		16,477		16,778
Accrued income taxes		30,418		2,077
Other accrued liabilities		22,158		23,488


Total accrued liabilities	$	121,239	$	121,410

Fair Value Measurements

3 Months Ended

Mar. 31, 2011

Fair Value Measurements

Fair Value Measurements

Note 5.

Fair Value Measurements

The fair value of the Company's financial assets and liabilities is determined in accordance with the fair value hierarchy. The fair value of the Company's financial assets, except for the fair value of senior notes issued by structured investment vehicles (SIVs), is determined using Level 1 or Level 2 inputs and consist mainly of investments in equity and fixed-income mutual funds that are quoted daily and Government National Mortgage Association (GNMA) and other U.S. government agency securities that are single issuer pools that are valued based on current market data for the specific issue owned or pools of similar securities. Level 3 financial assets consist of senior note obligations issued by SIVs. The Company did not have any Level 3 financial liabilities at March 31, 2011 or December 31, 2010. There were no transfers of financial assets between levels within the fair value hierarchy during the three months ended March 31, 2011.

Valuation of SIV Securities

The underlying collateral of the SIV securities is mainly comprised of asset-backed securities and collateralized debt obligations. The Company utilizes the services of a third party independent firm to assist in determining the fair value of the SIV security owned. Given the lack of any reliable market data on the SIV security, the firm utilized a valuation model that employs a net asset approach which considers the value of the underlying collateral of the SIV security to determine its fair value. Management evaluates the value received from the firm and considers other information, such as the existence of any current market activity, to determine the fair value of the SIV securities.

The model used by the independent valuation firm to determine the fair value of the SIV security attempts to value the underlying collateral of the SIV security through the use of industry accepted and proprietary valuation techniques and models. This approach combines advanced analytics with real-time market information that incorporate structural and fundamental analysis, collateral characteristics and recent market developments. Each security that makes up the underlying collateral is specifically identified by its CUSIP or ISIN number and is analyzed by using observable collateral characteristics and credit statistics in order to project future performance and expected cash flows for each individual security. The projected cash flows incorporate assumptions and expectations based upon the foregoing analysis of the collateral characteristics such as, but not limited to, default probabilities, recovery rates, prepayment speeds and loss severities. Expected future cash flows are discounted at an appropriate yield derived from the individual security, structural and collateral characteristics, trading levels and other available market data. Different modeling techniques and associated inputs and assumptions may be used to project future cash flows for each security depending upon the asset classification of that individual security (i.e. residential mortgage-backed security, commercial mortgage-backed security, collateralized debt obligations, etc.). The aggregate value of the discounted cash flows of the underlying collateral is compared to the total remaining par value of the collateral to determine the expected recovery price, or fair value, of the remaining note obligations. Other factors may be considered that are specific to the SIV security that may affect the fair value of the SIV security.

Management may also consider, when available, price quotes from brokers and dealers. If a price quote is available, management will compare this number to the fair value derived from the valuation model of the independent firm giving consideration to other market factors and risk premiums. Given the lack of any significant trading activity for the SIV security owned by the Company, management believes that market prices may not represent the implied fair value of the SIV security owned by the Company.

In the event a market transaction does exist for a SIV security, management evaluates the publicly available information surrounding the transaction in order to assess if the price used represents the fair value for the SIV security. In management's opinion, the current market for SIV securities does not represent any orderly and efficient market.

The fair value of certain financial assets and liabilities of the Company was determined using the following inputs:


	At March 31, 2011
	Fair Value Measurements at Reporting Date Using
Assets	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Equity available-for-sale securities	$	9,316	$	9,316	$	0	$	0
Fixed income available-for-sale securities		65,520		0		65,520		0
Fixed income securities owned		20,009		0		20,009		0
Trading securities issued by SIVs		69,362		0		0		69,362
Other trading securities		4,186		4,186		0		0


	$	168,393	$	13,502	$	85,529	$	69,362


	At December 31, 2010

	Fair Value Measurements at Reporting Date Using
Assets	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Equity available-for-sale securities	$	5,853	$	5,853	$	0	$	0
Fixed income available-for-sale securities		68,917		0		68,917		0
Trading securities issued by SIVs		100,645		0		0		100,645
Other trading securities		3,949		3,949		0		0


	$	179,364	$	9,802	$	68,917	$	100,645

The table below presents a reconciliation for all assets and liabilities of the Company measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period from January 1, 2011 to March 31, 2011:


	Trading Securities Issued by SIVs

Balance, January 1, 2011	$	100,645
Purchases		0
Issuances		0
Principal prepayments		(3,441	)
Sales		(34,706	)
Total gains or (losses) (realized/unrealized):
Included in earnings		6,864
Included in other comprehensive income		0
Transfers in and out of Level 3		0


Balance March 31, 2011	$	69,362


	Trading Securities Issued by SIVs

Balance, January 1, 2010	$	120,714
Purchases		0
Issuances		0
Principal prepayments		(17,239	)
Sales		(4,306	)
Total gains or (losses) (realized/unrealized):
Included in earnings		17,349
Included in other comprehensive income		0
Transfers in and out of Level 3		0


Balance March 31, 2010	$	116,518

- Definition

This element represents the disclosure related to the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods.

+ References+ Details

Marketable Securities

3 Months Ended

Mar. 31, 2011

Marketable Securities

Marketable Securities

Note 6.

Marketable Securities

Investments Available for Sale

Investments available for sale classified as non-current assets consist of:


	As of March 31, 2011
	Cost Amount		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value

SEI-sponsored mutual funds	$	8,628	$	267	$	(7	)	$	8,888
Other mutual funds		371		57		0			428
Debt securities		64,159		1,361		0			65,520


	$	73,158	$	1,685	$	(7	)	$	74,836


	As of December 31, 2010
	Cost Amount		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value

SEI-sponsored mutual funds	$	5,086	$	279	$	(14	)	$	5,351
Other mutual funds		443		59		0			502
Debt securities		67,118		1,799		0			68,917


	$	72,647	$	2,137	$	(14	)	$	74,770

Net unrealized holding gains at March 31, 2011 and December 31, 2010 were $1,066 (net of income tax expense of $612) and $1,339 (net of income tax expense of $784), respectively. These net unrealized gains are reported as a separate component of Accumulated other comprehensive income on the accompanying Consolidated Balance Sheets.

Gross realized gains and losses from available-for-sale securities during the three months ended March 31, 2011 and 2010 were minimal. Gains and losses from available-for-sale securities are reflected in Net gain from investments on the accompanying Consolidated Statements of Operations.

The Company's debt securities classified as available-for-sale securities are issued by GNMA and are backed by the full faith and credit of the U.S. government. These securities were purchased to satisfy applicable regulatory requirements of SEI Private Trust Company (SPTC) and have maturity dates which range from 2020 to 2040.

Trading Securities

Trading securities of the Company consist of:


	As of March 31, 2011
	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value

SIV securities	$	160,842	$	0	$	(91,480	)	$	69,362
LSV-sponsored mutual funds		2,049		2,137		0			4,186


	$	162,891	$	2,137	$	(91,480	)	$	73,548


	As of December 31, 2010
	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value

SIV securities	$	231,026	$	0	$	(130,381	)	$	100,645
LSV-sponsored mutual funds		2,049		1,900		0			3,949


	$	233,075	$	1,900	$	(130,381	)	$	104,594

The Company records all of its trading securities on the accompanying Consolidated Balance Sheets at fair value. Unrealized gains and losses from the change in fair value of these securities are recognized in Net gain from investments on the accompanying Consolidated Statements of Operations.

Through March 31, 2011, the Company recognized $137,971 in cumulative losses from SIV securities and SIV-related issues. During the three months ended March 31, 2011 and 2010, the Company recognized gains from SIV securities of $6,864 and $17,349, respectively. Of the gains recognized during the three months ended March 31, 2011, $2,049 resulted from cash payments received from the SIV securities and $4,815 was from an increase in fair value at March 31, 2011. Of the gains recognized during the three months ended March 31, 2010, $10,662 resulted from cash payments received from the SIV securities and $7,165 was from an increase in fair value at March 31, 2010. The net gains from the SIV securities are reflected in Net gain from investments on the accompanying Consolidated Statements of Operations.

In January 2011, the Company sold the senior note obligation originally issued by Stanfield Victoria. There was no gain or loss recognized by the Company from the sale of the note in 2011 as the fair value of the Stanfield Victoria note at December 31, 2010 was not different than the sale price received. The Company sold one of its SIV securities in January 2010 and recognized a loss of $478 in the three months ended March 31, 2010 from this sale.

The Company has an investment related to the startup of mutual funds sponsored by LSV. These are U.S. dollar denominated funds that invests primarily in securities of Canadian and Australian companies as well as various other global securities. The underlying securities held by the funds are translated into U.S. dollars within the funds. The net gains(losses) from the change in fair value of the funds during the three months ended March 31, 2011 and 2010 were minimal.

Securities Owned

During the three months ended March 31, 2011, the Company's broker-dealer subsidiary, SIDCO, made investments in U.S. government agency and commercial paper securities with maturity dates less than one year. These investments are reflected as Securities owned on the accompanying Consolidated Balance Sheets. Due to specialized accounting practices applicable to investments by broker-dealers, the securities are reported at fair value and changes in fair value are recorded in current period earnings. The securities had a fair value of $20,009 at March 31, 2011. The change in fair value recognized in the first quarter of 2011 was minimal.

Lines of Credit

3 Months Ended

Mar. 31, 2011

Lines of Credit

Lines of Credit

Note 7.

Lines of Credit

The Company has a five-year $300,000 Credit Agreement (the Credit Facility) which expires in July 2012, at which time any aggregate principal amount of loans outstanding becomes payable in full. Any borrowings made under the Credit Facility will accrue interest at 0.450 percent above the London Interbank Offer Rate ("LIBOR"). There is also a commitment fee equal to 0.09 percent per annum on the daily unused portion of the facility. The aggregate amount of the Credit Facility may be increased by an additional $100,000 under certain conditions set forth in the agreement. The Credit Facility, as amended, contains covenants that restrict the ability of the Company to engage in mergers, consolidations, asset sales, investments, transactions with affiliates, or to incur liens, as defined in the agreement. In the event of a default under the Credit Facility, the Company would also be restricted from paying dividends on, or repurchasing, its common stock without the approval of the lenders. None of the covenants of the Credit Facility negatively affect the Company's liquidity or capital resources. Both the interest rate and commitment fee prices may increase if the Company's leverage ratio reaches certain levels. Upon the occurrence of certain financial or economic events, significant corporate events, or certain other events of default constituting an event of default under the Credit Facility, all loans outstanding may be declared immediately due and payable and all commitments under the Credit Facility may be terminated.

The Company made a principal payment of $35,000 in February 2011. As of March 31, 2011, the outstanding balance of the Credit Facility was $60,000 and is included in Long-term debt on the accompanying Consolidated Balance Sheet. The Company was in compliance with all covenants of the Credit Facility at March 31, 2011.

As of March 31, 2011, the Company's ability to borrow from the Credit Facility is not limited by any covenant of the agreement. In management's opinion, the leverage ratio is the most restrictive of all of the covenants contained in the Credit Facility. The leverage ratio is calculated as consolidated indebtedness divided by earnings before interest, taxes, depreciation, amortization and other items as defined by the covenant during the last four quarters (EBITDA). According to the terms of the agreement, the Company must include the outstanding debt of LSV Employee Group in the calculation of consolidated indebtedness (See Note 2). The Company must maintain at all times a ratio of consolidated indebtedness of not more than 1.75 times the amount of EBITDA. As of March 31, 2011, the Company's leverage ratio is 0.15 times EBITDA.

The Company considers the book value of long-term debt related to the borrowings through the Credit Facility to be representative of its fair value.

The Company's Canadian subsidiary has a credit facility agreement (the Canadian Credit Facility) for the purpose of facilitating the settlement of mutual fund transactions. The Canadian Credit Facility has no stated expiration date. The amount of the facility is generally limited to $2,000 Canadian dollars or the equivalent amount in U.S. dollars. The Canadian Credit Facility does not contain any covenants which restrict the liquidity or capital resources of the Company. The Company had no borrowings under the Canadian Credit Facility and was in compliance with all covenants during the three months ended March 31, 2011.

Shareholders' Equity

3 Months Ended

Mar. 31, 2011

Shareholders' Equity

Shareholders' Equity

Note 8.

Shareholders' Equity

Stock-Based Compensation

The Company currently has one active equity compensation plan, the 2007 Equity Compensation Plan (the 2007 Plan), which provides for the grant of incentive stock options, non-qualified stock options and stock appreciation rights with respect to up to 20 million shares of common stock of the Company, subject to adjustment for stock splits, reclassifications, mergers and other events. Permitted grantees under the 2007 Plan include employees, non-employee directors and consultants who perform services for the Company. The plan is administered by the Compensation Committee of the Board of Directors of the Company. There were no grants of incentive stock options or stock appreciation rights made under the plan in 2011 or 2010. All outstanding stock options have performance-based vesting provisions specific to each option grant that tie the vesting of the applicable stock options to the Company's financial performance. The Company's stock options vest at a rate of 50 percent when specified diluted earnings per share targets are achieved, and the remaining 50 percent when secondary, higher specified diluted earnings per share targets are achieved. The amount of stock-based compensation expense is based upon management's estimate of when the earnings per share targets may be achieved.

The Company discontinued any further grants under the Company's 1998 Equity Compensation Plan (the 1998 Plan) as a result of the approval of the 2007 Plan. No options are available for grant from this plan. Grants made from the 1998 Plan continue in effect under the terms of the grant.

The Company recognized stock-based compensation expense in its Consolidated Financial Statements in the three months ended March 31, 2011 and 2010, respectively, as follows:


	Three Months Ended March 31,
	2011			2010

Stock-based compensation expense	$	3,732		$	6,657
Less: Deferred tax benefit		(1,398	)		(2,506	)


Stock-based compensation expense, net of tax	$	2,334		$	4,151


Basic and diluted earnings per share	$	.01		$	.02

As of March 31, 2011, there was approximately $48,374 of unrecognized compensation cost remaining, adjusted for estimated forfeitures, related to unvested employee stock options that management expects will vest and is being amortized. The Company estimates that compensation cost will be recognized according to the following schedule:


Period	Stock-Based Compensation Expense

Remainder of 2011	$	10,895
2012		14,422
2013		12,527
2014		5,550
2015		3,286
2016		1,694


	$	48,374

During the three months ended March 31, 2010, the Company revised its previous estimate made as of December 31, 2009 of when certain vesting targets are expected to be achieved. This change in management's estimate resulted in an increase of $1,984 in stock-based compensation expense in the three months ended March 31, 2010. There was no change in management's estimate for the achievement of vesting targets during the three months ended March 31, 2011.

The Company issues new common shares associated with the exercise of stock options. The total intrinsic value of options exercised during the three months ended March 31, 2011 was $4,429. The total options exercisable as of March 31, 2011 had an intrinsic value of $85,163. The total intrinsic value for options exercisable is calculated as the difference between the market value of the Company's common stock as of March 31, 2011 and the exercise price of the shares. The market value of the Company's common stock as of March 31, 2011 was $23.88 as reported by the Nasdaq Stock Market, LLC. The weighted average exercise price of the options exercisable as of March 31, 2011 was $17.63. Total options that were outstanding as of March 31, 2011 was 27,085,000.

Common Stock Buyback

The Company's Board of Directors has authorized the repurchase of the Company's common stock on the open market or through private transactions of up to an aggregate of $1.728 billion. Through March 31, 2011, a total of 265,538,000 shares at an aggregate cost of $1.660 billion have been purchased and retired. The Company purchased 1,725,000 shares at a total cost of $39,480 during the three months ended March 31, 2011.

The Company immediately retires its common stock when purchased. Upon retirement, the Company reduces Capital in excess of par value for the average capital per share outstanding and the remainder is charged against Retained earnings. If the Company reduces its Retained earnings to zero, any subsequent purchases of common stock will be charged entirely to Capital in excess of par value.

Noncontrolling Interest

The following table provides a reconciliation of Noncontrolling interest on the Consolidated Balance Sheet for the period from January 1, 2011 to March 31, 2011:


	Noncontrolling interest

Balance, January 1, 2011	$	15,155
Net income attributable to noncontrolling interest		312
Foreign currency translation adjustments		420


Balance, March 31, 2011	$	15,887

The following table provides a reconciliation of Noncontrolling interest on the Consolidated Balance Sheet for the period from January 1, 2010 to March 31, 2010:


	Noncontrolling interest

Balance, January 1, 2010	$	121,895
Net income attributable to noncontrolling interest		438
Foreign currency translation adjustments		493
Deconsolidation of LSV		(65,522	)
Deconsolidation of LSV Employee Group		(43,536	)


Balance, March 31, 2010	$	13,768

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References+ Details

Accumulated Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2011

Accumulated Comprehensive Income (Loss)

Accumulated Comprehensive Income (Loss)

Note 9.

Accumulated Comprehensive Income (Loss)

Accumulated other comprehensive income (loss), net of tax, consists of:


	Foreign Currency Translation Adjustments			Unrealized Holding Gains (Losses) on Investments			Accumulated Other Comprehensive Income (Loss)

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			0			666


Total accumulated comprehensive income attributable to SEI Investments Company at December 31, 2010	$	1,818		$	1,339		$	3,157


Total comprehensive income for the three months ended March 31, 2011	$	2,828		$	(273	)	$	2,555

Less: Total comprehensive income attributable to noncontrolling interest for the three months ended March 31, 2011		(420	)		0			(420	)


Total comprehensive income attributable to SEI Investments Company for the three months ended March 31, 2011	$	2,408		$	(273	)	$	2,135

Total accumulated comprehensive income at March 31, 2011	$	3,980		$	1,066		$	5,046

Less: Total accumulated comprehensive loss attributable to noncontrolling interest at March 31, 2011		246			0			246


Total accumulated comprehensive income attributable to SEI Investments Company at March 31, 2011	$	4,226		$	1,066		$	5,292

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References+ Details

Business Segment Information

3 Months Ended

Mar. 31, 2011

Business Segment Information

Business Segment Information

Note 10.

Business Segment Information

The Company's reportable business segments are:

Private Banks – provides investment processing and investment management programs to banks and trust institutions worldwide, independent wealth advisers located in the United Kingdom, and financial advisors in Canada;

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 processing, fund processing, and operational outsourcing solutions to investment managers, fund companies and banking institutions located in the United States, and to investment managers worldwide of alternative asset classes such as hedge funds, funds of hedge funds, and private equity funds across both registered and partnership structures; and

Investments in New Businesses – provides investment management programs to ultra-high-net-worth families residing in the United States through the SEI Wealth Network^®.

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 months ended March 31, 2011 and 2010. 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, 2010.

The following tables highlight certain unaudited financial information about each of the Company's business segments for the three months ended March 31, 2011 and 2010.


	Private Banks			Investment Advisors			Institutional Investors			Investment Managers			Investments In New Businesses			Total

	For the Three Months Ended March 31, 2011

Revenues	$	86,709		$	48,108		$	53,185		$	43,441		$	1,050		$	232,493
Expenses		82,403			27,040			26,953			27,999			3,125			167,520

Operating profit (loss)	$	4,306		$	21,068		$	26,232		$	15,442		$	(2,075	)	$	64,973

Operating margin		5	%		44	%		49	%		36	%		N/A			28	%


	Private Banks		Investment Advisors		Institutional Investors		Investment Managers		Investments In New Businesses			Total

	For the Three Months Ended March 31, 2010

Revenues	$	87,121	$	45,463	$	50,339	$	37,610	$	1,002		$	221,535
Expenses		77,599		27,583		26,380		24,559		2,661			158,782

Operating profit (loss)	$	9,522	$	17,880	$	23,959	$	13,051	$	(1,659	)	$	62,753

Operating margin		11%		39%		48%		35%		N/A			28%

A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of Operations for the quarters ended March 31, 2011 and 2010 is as follows:


	2011			2010

Total operating profit from segments above	$	64,973		$	62,753

Corporate overhead expenses		(10,648	)		(9,717	)
Noncontrolling interest reflected in segments		272			309


Income from operations	$	54,597		$	53,345

The following tables provide additional information for the three months ended March 31, 2011 and 2010 pertaining to our business segments:


	Capital Expenditures				Depreciation

	2011		2010		2011		2010

Private Banks	$	11,030	$	7,877	$	4,038	$	3,708
Investment Advisors		3,742		2,825		591		564
Institutional Investors		881		702		292		276
Investment Managers		1,784		1,119		503		470
Investments in New Businesses		212		156		30		37

Total from business segments	$	17,649	$	12,679	$	5,454	$	5,055

Corporate Overhead		374		269		157		151


	$	18,023	$	12,948	$	5,611	$	5,206


	Amortization

	2011		2010

Private Banks	$	4,229	$	3,701
Investment Advisors		1,418		1,340
Institutional Investors		167		304
Investment Managers		115		205
Investments in New Businesses		59		107

Total from business segments	$	5,988	$	5,657

Corporate Overhead		243		243


	$	6,231	$	5,900

Income Taxes

3 Months Ended

Mar. 31, 2011

Income Taxes

Income Taxes

Note 11.

Income Taxes

The gross liability for unrecognized tax benefits at March 31, 2011 and December 31, 2010 was $5,989 and $5,723, respectively, exclusive of interest and penalties, of which $5,024 and $4,870 would affect the effective tax rate if the Company were to recognize the tax benefit.

The Company classifies interest and penalties on unrecognized tax benefits as income tax expense. As of March 31, 2011 and December 31, 2010, the combined amount of accrued interest and penalties related to tax positions taken on tax returns was $710 and $689, respectively.


	March 31, 2011		December 31, 2010

Gross liability for unrecognized tax benefits, exclusive of interest and penalties	$	5,989	$	5,723
Interest and penalties on unrecognized benefits		710		689


Total gross uncertain tax positions	$	6,699	$	6,412


Amount included in Current liabilities	$	760	$	767
Amount included in Other long-term liabilities		5,939		5,645


	$	6,699	$	6,412

The Company's effective tax rates were 37.1 percent and 37.9 percent for the three months ended March 31, 2011 and 2010, respectively. In December 2010, the research and development tax credit was reinstated for calendar year 2010 and 2011. The 2011 tax rate reflects a benefit for research and development tax credit whereas the 2010 tax rate did not reflect any benefit. The Company files income tax returns in the United States on a consolidated basis and in many U.S. state and foreign jurisdictions. The Company is subject to examination of income tax returns by the Internal Revenue Service (IRS) and other domestic and foreign tax authorities. The Company is no longer subject to U.S. federal income tax examination for years before 2008 and is no longer subject to state, local or foreign income tax examinations by authorities for years before 2000.

The Company estimates it will recognize $760 of unrecognized tax benefits within the next twelve months due to the expiration of the statute of limitations and resolution of income tax audits. These unrecognized tax benefits are related to tax positions taken on certain federal, state, and foreign tax returns. However, the timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. While it is reasonably possible that some issues under examination could be resolved in the next twelve months, based upon the current facts and circumstances, the Company cannot reasonably estimate the timing of such resolution or total range of potential changes as it relates to the current unrecognized tax benefits that are recorded as part of the Company's financial statements.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2011

Commitments and Contingencies

Commitments and Contingencies

Note 12.

Commitments and Contingencies

In the normal course of business, the Company is party to various claims and legal proceedings. One of SEI's principal subsidiaries, SIDCO, has been named as a defendant in certain putative class action complaints (the Complaints) related to leveraged exchange traded funds (ETFs) advised by ProShares Advisors, LLC. To date, the Complaints have been filed in the United States District Court for the Southern District of New York and in the United States District Court for the District of Maryland although the three complaints filed in the District of Maryland have been voluntarily dismissed by the plaintiffs. Two of them were subsequently re-filed in the Southern District of New York. Two of the complaints filed in the Southern District of New York have been voluntarily dismissed by plaintiffs. The first complaint was filed on August 5, 2009. The Complaints are purportedly made on behalf of all persons that purchased or otherwise acquired shares in various ProShares leveraged ETFs pursuant or traceable to allegedly false and misleading registration statements, prospectuses and statements of additional information. The Complaints name as defendants ProShares Advisors, LLC; ProShares Trust; ProShares Trust II, SIDCO, and various officers and trustees to ProShares Advisors, LLC; ProShares Trust and ProShares Trust II. The Complaints allege that SIDCO was the distributor and principal underwriter for the various ProShares leveraged ETFs that were distributed to authorized participants and ultimately shareholders. The complaints allege that the registration statements for the ProShares ETFs were materially false and misleading because they failed to adequately describe the nature and risks of the investments. The Complaints allege that SIDCO is liable for these purportedly material misstatements and omissions under Section 11 of the Securities Act of 1933. The Complaints seek unspecified compensatory and other damages, reasonable costs and other relief. The cases are in the early stage, and the court has not yet appointed lead plaintiff(s). Defendants have moved to consolidate the complaints, which motion has been granted. While the outcome of this litigation is uncertain given its early phase, SEI believes that it has valid defenses to plaintiffs' claims and intends to defend the lawsuits vigorously.

SEI has been named in five lawsuits that were filed in the 19th Judicial District Court for the Parish of East Baton Rouge, State of Louisiana. One of the five actions purports to set forth claims on behalf of a class and also names SPTC as a defendant. Two of the other actions also name SPTC as a defendant. All five actions name various defendants in addition to SEI, and, in all five actions, the plaintiffs purport to bring a cause of action against SEI and SPTC under the Louisiana Securities Act. The putative class action originally included a claim against SEI and SPTC for an alleged violation of the Louisiana Unfair Trade Practices Act. Two of the other five actions include claims for violations of the Louisiana Racketeering Act and possibly conspiracy. In addition, another group of plaintiffs have filed a lawsuit in the 23rd Judicial District Court for the Parish of Ascension, State of Louisiana, against SEI and SPTC and other defendants asserting claims of negligence, breach of contract, breach of fiduciary duty, violations of the uniform fiduciaries law, negligent misrepresentation, detrimental reliance, violations of the Louisiana Securities Act and Louisiana Racketeering Act and conspiracy. The underlying allegations in all the actions are purportedly related to the role of SPTC in providing back-office services to Stanford Trust Company. The petitions in the lawsuits allege that SEI and SPTC aided and abetted or otherwise participated in the sale of "certificates of deposit" issued by Stanford International Bank. Two of the five actions filed in East Baton Rouge have been removed to federal court, and plaintiffs' motions to remand are pending. These two cases have been transferred by the Judicial Panel on Multidistrict Litigation to United States District Court for the Northern District of Texas. The case filed in Ascension was also removed to federal court and transferred by the Judicial Panel on Multidistrict Litigation to the Northern District of Texas. The schedule for responding to that complaint has not yet been established. SEI and SPTC filed exceptions in the putative class action pending in East Baton Rouge, which the Court granted in part and dismissed the claims under the Louisiana Unfair Trade Practices Act and denied in part as to the other exceptions. SEI and SPTC filed an answer to the East Baton Rouge putative class action; plaintiffs filed a motion for class certification which is pending; and SEI and SPTC have filed a motion for summary judgment against certain named plaintiffs which is pending. While the outcome of this litigation is uncertain given its early phase, SEI and SPTC believe that they have valid defenses to plaintiffs' claims and intend to defend the lawsuits vigorously.