Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2010	Jan. 31, 2011	Jun. 30, 2010
Document and Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Trading Symbol	seic
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		186,114,605
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 3,000,000,000

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Current Assets:
Cash and cash equivalents	$ 496,292	$ 590,877
Restricted cash	4,000	20,000
Receivables from regulated investment companies	29,282	28,134
Receivables, net of allowance for doubtful accounts of $1,195 and $3,348 (Note 4)	136,490	184,317
Deferred income taxes, net	1,387	2,283
Other current assets	16,268	15,792
Total Current Assets	683,719	841,403
Property and Equipment, net of accumulated depreciation of $166,816 and $158,113 (Note 4)	140,568	146,053
Capitalized Software, net of accumulated amortization of $90,947 and $67,894	294,332	278,656
Investments Available for Sale (Note 6)	74,770	55,701
Trading Securities (Note 6)	104,594	126,196
Investment in Unconsolidated Affiliate (Note 2)	64,409	0
Goodwill (Note 2)	0	22,842
Intangible Assets, net of accumulated amortization of $31,182 (Note 2)	0	44,859
Other Assets, net	14,831	18,098
Total Assets	1,377,223	1,533,808
Current Liabilities:
Current portion of long-term debt	0	6,400
Accounts payable	4,582	2,851
Accrued liabilities (Note 4)	121,410	152,944
Deferred revenue	1,608	860
Total Current Liabilities	127,600	163,055
Long-term Debt (Note 7)	95,000	247,152
Deferred Income Taxes	92,253	86,257
Other Long-term Liabilities (Note 12)	5,645	5,726
Total Liabilities	320,498	502,190
Commitments and Contingencies (Note 11)
SEI Investments shareholders' equity:
Series Preferred stock, $.05 par value, 50 shares authorized; no shares issued and outstanding	0	0
Common stock, $.01 par value, 750,000 shares authorized; 186,141 and 190,208 shares issued and outstanding	1,861	1,902
Capital in excess of par value	565,393	522,080
Retained earnings	471,159	384,483
Accumulated other comprehensive income, net	3,157	1,258
Total SEI Investments Shareholders' Equity	1,041,570	909,723
Noncontrolling interest	15,155	121,895
Total Equity	1,056,725	1,031,618
Total Liabilities and Equity	$ 1,377,223	$ 1,533,808

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Consolidated Balance Sheets
Receivables, allowance for doubtful accounts	$ 1,195	$ 3,348
Property and Equipment, accumulated depreciation	166,816	158,113
Capitalized Software, accumulated amortization	90,947	67,894
Intangible Assets, accumulated amortization		$ 31,182
Series Preferred stock, par value	$ 0.05	$ 0.05
Series Preferred stock, shares authorized	50	50
Series Preferred stock, shares issued	0	0
Series Preferred stock, share outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	750,000	750,000
Common stock, shares issued	186,141	190,208
Common stock, shares outstanding	186,141	190,208

Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Revenues:
Asset management, administration and distribution fees	$ 628,535	$ 773,186	$ 955,399
Information processing and software servicing fees	231,529	231,807	229,807
Transaction-based and trade execution fees	40,771	55,555	62,713
Total revenues	900,835	1,060,548	1,247,919
Expenses:
Subadvisory, distribution and other asset management costs	89,746	85,810	104,434
Brokerage commissions and royalties	52,609	61,735	67,538
Compensation, benefits and other personnel	269,165	274,675	293,860
Stock-based compensation	26,783	14,503	16,010
Consulting, outsourcing and professional fees	89,033	81,694	103,789
Data processing and computer related	41,064	45,403	44,602
Facilities, supplies and other costs	68,952	66,882	74,378
Amortization	24,048	44,608	24,927
Depreciation	21,902	21,531	22,032
Total expenses	683,302	696,841	751,570
Income from operations	217,533	363,707	496,349
Net gain (loss) from investments	48,533	(4,926)	(158,018)
Interest and dividend income	6,326	7,281	13,740
Interest expense	(1,478)	(3,744)	(3,418)
Other (expense) income, net	(590)	0	5,577
Equity in earnings of unconsolidated affiliate	99,457	0	0
Net income before income taxes	369,781	362,318	354,230
Income taxes	136,461	89,886	86,703
Net income	233,320	272,432	267,527
Less: Net income attributable to the noncontrolling interest	(1,633)	(98,097)	(128,273)
Net income attributable to SEI Investments Company	$ 231,687	$ 174,335	$ 139,254
Basic earnings per common share	$ 1.23	$ 0.91	$ 0.73
Diluted earnings per common share	$ 1.22	$ 0.91	$ 0.71

Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Statements of Comprehensive Income
Net income	$ 233,320	$ 272,432	$ 267,527
Other comprehensive gain (loss), net of tax:
Foreign currency translation adjustments	2,205	8,734	(18,961)
Unrealized holding gain (loss) on investments:
Unrealized holding gains (losses) during the period, net of income taxes of $(486), $(1,065) and $1,522	484	2,124	(2,484)
Less: reclassification adjustment for gains (losses) realized in net income, net of income taxes of $56, $(222) and $(107)	(105)	360	144
Total other comprehensive gain (loss), net of taxes	2,584	11,218	(21,301)
Comprehensive income	235,904	283,650	246,226
Less: Comprehensive income attributable to noncontrolling interest	(2,318)	(99,894)	(123,123)
Comprehensive income attributable to SEI Investments	$ 233,586	$ 183,756	$ 123,103

Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Statements of Comprehensive Income
Unrealized holding gains (losses) during the period, income tax	$ (486)	$ (1,065)	$ 1,522
Reclassification adjustment for gains (losses) realized in net income, income tax	$ 56	$ (222)	$ (107)

Consolidated Statements of Changes in Equity (USD $) In Thousands	Total	Common Stock [Member]	Capital In Excess of Par Value [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total SEI Investments Shareholders' Equity [Member]	Noncontrolling Interest [Member]
Beginning balance at Dec. 31, 2007		$ 1,944	$ 445,474	$ 298,975	$ 7,988
Beginning balance, shares at Dec. 31, 2007		194,375
Net income attributable to SEI Investments Company	139,254			139,254
Purchase and retirement of common stock		(58)	(11,666)	(117,911)
Purchase and retirement of common stock, shares		(5,778)
Issuance of common stock under the employee stock purchase plan		1	2,830
Issuance of common stock under the employee stock purchase plan, shares		144
Issuance of common stock upon exercise of stock options		25	25,601
Issuance of common stock upon exercise of stock options, shares		2,454
Stock-based compensation	16,010		16,010
Tax benefit on stock options exercised			7,472
Dividends declared				(30,636)
Other comprehensive income (loss)	(21,301)				(16,151)
Total SEI Investments Shareholders' Equity						769,152
Noncontrolling interest							109,722
Total Equity at Dec. 31, 2008	878,874	1,912	485,721	289,682	(8,163)
Ending balance, shares at Dec. 31, 2008		191,195
Net income attributable to SEI Investments Company	174,335			174,335
Purchase and retirement of common stock		(32)	(6,970)	(47,112)
Purchase and retirement of common stock, shares		(3,198)
Issuance of common stock under the employee stock purchase plan		2	2,035
Issuance of common stock under the employee stock purchase plan, shares		156
Issuance of common stock upon exercise of stock options		20	21,607
Issuance of common stock upon exercise of stock options, shares		2,055
Stock-based compensation	14,503		13,962
Tax benefit on stock options exercised			5,725
Dividends declared				(32,422)
Other comprehensive income (loss)	11,218				9,421
Total SEI Investments Shareholders' Equity	909,723					909,723
Noncontrolling interest	121,895						121,895
Total Equity at Dec. 31, 2009	1,031,618	1,902	522,080	384,483	1,258
Ending balance, shares at Dec. 31, 2009		190,208
Net income attributable to SEI Investments Company	231,687			231,687
Purchase and retirement of common stock		(58)	(13,426)	(107,498)
Purchase and retirement of common stock, shares		(5,814)
Issuance of common stock under the employee stock purchase plan		1	1,902
Issuance of common stock under the employee stock purchase plan, shares		114
Issuance of common stock upon exercise of stock options		16	26,177
Issuance of common stock upon exercise of stock options, shares		1,633
Stock-based compensation	26,783		26,783
Tax benefit on stock options exercised			1,877
Dividends declared				(37,513)
Other comprehensive income (loss)	2,584				1,899
Total SEI Investments Shareholders' Equity	1,041,570					1,041,570
Noncontrolling interest	15,155						15,155
Total Equity at Dec. 31, 2010	$ 1,056,725	$ 1,861	$ 565,393	$ 471,159	$ 3,157
Ending balance, shares at Dec. 31, 2010		186,141

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

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Cash flows from operating activities:

Net income

$ 233,320

$ 272,432

$ 267,527

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

Amortization

24,048

44,608

24,927

Depreciation

21,902

21,531

22,032

Equity in earnings of unconsolidated affiliate

(99,457)

Distributions received from unconsolidated affiliate

72,060

Payments to partners of LSV

(87,337)

(144,399)

Stock-based compensation

26,783

14,503

16,010

Provision for losses on receivables

(1,004)

692

(376)

Deferred income tax expense (benefit)

6,461

67,265

(34,727)

Net realized (gains) losses from investments

(48,533)

178,007

7,196

Capitalized interest

(5,577)

Other-than-temporary declines in market value

901

1,961

Change in other long-term liabilities

(81)

1,659

(7,828)

Other

2,473

3,508

(25,210)

Decrease (increase) in:

Restricted cash for broker-dealer operations

16,000

Receivables from regulated investment companies

(1,148)

230

9,834

Receivables

(11,032)

(3,885)

56,527

Other current assets

(1,101)

197

(1,422)

Increase (decrease) in:

Accounts payable

1,734

(9,457)

3,618

Capital Support Agreements

(173,983)

148,861

Payable to regulated investment companies

(97)

(504)

Accrued liabilities

(13,847)

15,367

(54,200)

Deferred revenue

748

(670)

478

Total adjustments

(3,994)

73,039

17,201

Net cash provided by operating activities

229,326

345,471

284,728

Cash flows from investing activities:

Reductions (additions) to restricted cash

(6,000)

(3,750)

Additions to property and equipment

(13,611)

(19,272)

(26,326)

Additions to capitalized software

(38,729)

(43,944)

(51,976)

Purchases of marketable securities

(39,085)

(322,528)

(61,648)

Prepayments and maturities of marketable securities

58,174

32,002

33,779

Sales of marketable securities

28,859

20,830

26,924

Cash paid for purchase of joint venture

(3,302)

LSV and LSV Employee Group cash balances, net

(37,083)

^[1]

Net cash used in investing activities

(41,475)

(338,912)

(86,299)

Cash flows from financing activities:

Proceeds from borrowings on long-term debt

254,000

Payments on long-term debt

(138,000)

(31,980)

(20,439)

Purchase and retirement of common stock

(119,775)

(53,136)

(129,251)

Proceeds from issuance of common stock

28,096

23,664

28,457

Tax benefit on stock options exercised

1,877

5,725

7,472

Payment of dividends

(54,634)

(30,598)

(28,946)

Net cash (used in) provided by financing activities

(282,436)

167,675

(142,707)

Net (decrease) increase in cash and cash equivalents

(94,585)

174,234

55,722

Cash and cash equivalents, beginning of year

590,877

416,643

360,921

Cash and cash equivalents, end of year

496,292

590,877

416,643

Interest paid

1,488

4,676

3,629

Income taxes paid

145,553

9,052

126,269

Non-cash financing activities

Dividends declared but not paid

$ 0

$ 17,121

$ 15,297

[1]	Cash balances, net of the partnership distribution payment received in January 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 (See Note 2).

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

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 system 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.

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries and entities in which it holds a controlling financial interest. The Company determines whether it has a controlling financial interest either by its decision-making ability through voting interests or by the extent of the Company's participation in the economic risks and rewards of the entity through variable interests. The Company accounts for noncontrolling interests in consolidated entities for which the Company's controlling financial interest is less than 100 percent. The Company's principal subsidiaries are SEI Investments Distribution Co. (SIDCO), SEI Investments Management Corporation (SIMC), SEI Private Trust Company (SPTC), SEI Trust Company (STC), SEI Global Services, Inc. (SGSI) and SEI Investments (Europe) Limited (SIEL). All intercompany accounts and transactions have been eliminated.

In January 2010, new accounting guidance pertaining to the consolidation of VIEs became effective. Under the new guidance, the Company was not considered the primary beneficiary of LSV Employee Group. The Company, therefore, discontinued consolidating the accounts and operations of LSV Asset Management (LSV) and LSV Employee Group in its financial statements. 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. The deconsolidation of LSV had no effect on Net income attributable to SEI. Prior period financial statements are not reclassified for the new accounting guidance.

Noncontrolling interest on the accompanying Consolidated Balance Sheets includes the interest of other shareholders in a joint venture of the Company in an asset management firm located in South Korea. At December 31, 2009, Noncontrolling interest also included the amount owned by other partners of LSV and LSV Employee Group.

Variable Interest Entities

The Company has involvement with various variable interest entities (VIE or VIEs). These VIEs consist of LSV Employee Group and investment products established for clients created in the form of various types of legal entity structures. In June 2009, the Financial Accounting Standards Board (FASB) issued new guidance related to the consolidation of VIEs. This guidance changed how a company determines when an entity that is insufficiently capitalized or is not controlled through voting common stock should be consolidated. The determination of whether a company is required to consolidate an entity is based on, among other things, an entity's purpose and design, a company's ability to direct the activities of the entity that most significantly impact the entity's economic performance, and whether a company is obligated to absorb losses or receive benefits that could be potentially significant to the entity. The new guidance requires ongoing reassessments of whether an enterprise is the primary beneficiary of a VIE and requires additional disclosures about an enterprises involvement in VIEs. The new guidance became effective January 1, 2010.

Under the new guidance, LSV Employee Group remains a 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 either directly or through any financial responsibility from the Guaranty Agreement. As of January 1, 2010, the Company discontinued consolidating the accounts of LSV Employee Group. The Company does not have any direct equity interest in LSV Employee Group (See Note 2).

In January 2010, the FASB deferred the new guidance for certain types of investment entities. The deferral allows asset managers that have no obligation to fund potentially significant losses of an investment entity to continue to apply the previous guidance to investment entities that have attributes of entities defined in the "Investment Company Guide." The deferral applies to many mutual funds, hedge funds, private equity funds, venture capital and certain other types of entities. Also, money market funds subject to rule 2a-7 of the Investment Company Act of 1940 qualify for deferral. However, the deferral does not apply to the new disclosure requirements. All of the Company's investment products where the Company is the sponsor and/or investment manager that are VIEs qualify for the deferral; therefore, the Company will continue to apply the previous guidance for the consolidation of VIEs (See Note 3).

Management's Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition

The Company's principal sources of revenues are: (1) asset management, administration and distribution fees earned based upon a contractual percentage of net assets under management or administration; (2) information processing and software servicing fees that are either recurring and primarily earned based upon the number of trust accounts being serviced or non-recurring and based upon project-oriented contractual agreements related to client implementations; and (3) transaction-based fees for providing trade-execution services. The majority of the Company's revenues are based on contractual arrangements. Revenues are recognized in the periods in which the related services are performed provided that persuasive evidence of an agreement exists, the fee is fixed or determinable, and collectibility is reasonably assured. Cash received by the Company in advance of the performance of services is deferred and recognized as revenue when earned. Reimbursements received for out-of-pocket expenses incurred are recorded as revenue. Certain portions of the Company's revenues require management's consideration of the nature of the client relationship in determining whether to recognize as revenue the gross amount billed or net amount retained after payments are made to suppliers for certain services related to the product or service offering.

Cash and Cash Equivalents

The Company considers investment instruments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents include $383,946 and $438,690 at December 31, 2010 and 2009, respectively, primarily invested in SEI-sponsored open-ended money market mutual funds. Cash and cash equivalents at December 31, 2009 includes $57,061 from LSV (See Note 2).

Restricted Cash

Restricted cash at December 31, 2010 and 2009 includes $3,000 segregated for regulatory purposes related to trade-execution services conducted by SIEL. Restricted cash also includes $1,000 and $17,000 at December 31, 2010 and 2009, respectively, segregated in special reserve accounts for the benefit of SIDCO customers in accordance with certain rules established by the Securities and Exchange Commission for broker-dealers.

Allowances for Doubtful Accounts

The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company's estimate is based on historical collection experience and a review of the current status of trade accounts receivable.

Concentration of Credit Risk

Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash equivalents and trade receivables. Cash equivalents are principally invested in short-term money market funds or placed with major banks and high-credit qualified financial institutions. Cash deposits maintained with institutions are in excess of federally insured limits. Concentrations of credit risk with respect to our receivables are limited due to the large number of clients and their dispersion across geographic areas. No single group or customer represents greater than ten percent of total accounts receivable.

Property and Equipment

Property and Equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. Construction in progress includes the cost of construction and other direct costs attributable to the construction. When property and equipment are retired or disposed of, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives using the straight line method for financial statement purposes. No provision for depreciation is made for construction in progress until such time as the relevant assets are completed and put into service. The Company uses other depreciation methods, generally accelerated, for tax purposes where appropriate. Buildings and building improvements are depreciated over 25 to 39 years. Equipment, purchased software and furniture and fixtures have useful lives ranging from three to five years. Amortization of leasehold improvements is computed using the straight line method over the shorter of the remaining lease term or the estimated useful lives of the improvements.

Marketable Securities

The classification of investments in marketable securities is determined at the time of purchase and reevaluated at each balance sheet date. Debt and equity securities classified as available-for-sale are reported at fair value as determined by the most recently traded price of each security at the balance sheet date. Unrealized gains and losses, net of income taxes, are reported as a separate component of comprehensive income. 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 current period earnings. The specific identification method is used to compute the realized gains and losses on all of the Company's marketable securities (See Note 6).

The Company evaluates the realizable value of its marketable securities on a quarterly basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis for the investment is established. Some of the factors considered in determining other-than-temporary impairment for equity securities include, but are not limited to, significant or prolonged declines in the fair value of the investments, the Company's ability and intent to retain the investment for a period sufficient to allow the value to recover, and the financial condition of the investment. Some of the factors considered in determining other-than-temporary impairment for debt securities include, but are not limited to, the intent of management to sell the security, the likelihood that the Company will be required to sell the security before recovering its cost, and management's expectation to recover the entire amortized cost basis of the security even if there is no intent to sell the security.

Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value hierarchy describes three levels of inputs that may be used by the Company to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities without adjustment. The Company's Level 1 assets primarily include investments in mutual funds sponsored by SEI and LSV that are quoted daily.

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company's Level 2 assets primarily include securities issued by GNMA with quoted prices that are traded less frequently than exchange-traded instruments. The Company uses a pricing vendor to value its GNMA securities. The pricing vendor uses a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data for similar pools of GNMA securities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment by management. The Company's Level 3 financial assets include SIV securities and any change in fair value for these securities is recognized in the current period.

The fair value of an asset or liability may include inputs from more than one level in the fair value hierarchy. The lowest level of significant inputs used to value the asset or liability determines which level the asset or liability is classified in its entirety.

See Note 5 for information on related disclosures regarding fair value measurements.

Capitalized Software

Costs incurred for the development of internal use software to be offered in a hosting arrangement is capitalized during the development stage of the software application. These costs include direct external and internal costs to design the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary and post-implementation stages of the software application are expensed as incurred. Costs associated with significant enhancements to a software application are capitalized while costs incurred to maintain existing software applications are expensed as incurred. The capitalization of software development costs requires considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility, and estimated economic life. Capitalized software development costs during these past several years relates to the further development of the Global Wealth Platform (GWP). GWP provides the technology platform underpinning many of our business solutions. The initial version of GWP was placed into service in July 2007. Further enhancements and upgrades will continue to occur through a series of releases that will eventually provide the full functionality of GWP servicing clients across multiple jurisdictions. As of December 31, 2010, the net book value of GWP was $268,647 (net of accumulated amortization of $62,152), including $24,248 of capitalized software development costs in-progress associated with future releases to GWP. The Company capitalized $38,729, $43,944, and $56,162 of software development costs during 2010, 2009, and 2008, respectively. The amount capitalized in 2008 includes $4,186, net of $382 in accumulated amortization, consisting of an out-of-period adjustment for interest costs on outstanding borrowings of the Company for the years 2002 through 2007.

Amortization of capitalized software development costs begins when the product is ready for its intended use. Capitalized software development costs are amortized on a product-by-product basis using the straight-line method over the estimated economic life of the product or enhancement, which is primarily 3 to 15 years, with a weighted average remaining life of approximately 11.5 years. Amortization expense was $23,053, $35,894, and $16,980 in 2010, 2009, and 2008, respectively, and is included in Amortization expense on the accompanying Consolidated Statements of Operations. GWP has an estimated useful life of 15 years and a weighted average remaining life of 11.5 years. The Company abandoned certain components within GWP that were replaced in late 2009. The useful life of these components was shortened so that the remaining net book value of $15,502 was fully amortized commensurate with the new release. Amortization expense in 2009 on the Consolidated Statements of Operations includes $15,502 of accelerated amortization for these components.

The Company evaluates the carrying value of capitalized software development costs when circumstances indicate the carrying value may not be recoverable. The review of capitalized software development costs for impairment requires significant assumptions about operating strategies, underlying technologies utilized, and external market factors. External market factors include, but are not limited to, expected levels of competition, barriers to entry by potential competitors, stability in the target market and governmental regulations. In 2010 and 2009, the Company determined that no events or change in circumstances had occurred that would indicate that capitalized software development costs were impaired. Therefore, the Company did not recognize any impairment charges for any of its capitalized software development costs in 2010 or 2009.

Goodwill and Other Intangible Asset

Goodwill is not amortized but is reviewed for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The provisions of accounting guidance require that a two-step, fair value based test be performed to assess goodwill for impairment. In the first step, the fair value of each reporting unit is compared with its carrying value, including goodwill. If the fair value exceeds the carrying value, goodwill is not impaired and no further testing is performed. The second step is performed if the carrying value exceeds the fair value. The second step requires an allocation of fair value to the individual assets and liabilities using a purchase price allocation in order to determine the implied fair value of goodwill. If the implied fair value of goodwill is less than the carrying amount, an impairment loss is recognized. The Company estimates the fair value of the LSV reporting unit primarily based upon an earnings multiple approach. This approach requires an estimate of future expected cash flows from the LSV reporting unit which involves significant assumptions by management.

The Company reviews long-lived assets and identifiable definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. For purposes of recognizing and measuring an impairment loss, a long-lived asset is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent. It is impossible to distinguish between the cash flows generated by goodwill and intangible assets and, therefore, the LSV other intangible asset is grouped with all of the other assets of LSV, including Goodwill, for purposes of recognizing and measuring an impairment loss. To date, the Company has not recognized any impairment loss for any of its Goodwill or Other Intangible Assets.

Income Taxes

The Company applies the asset and liability approach to account for income taxes whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics.

Foreign Currency Translation

The assets and liabilities and results of operations of the Company's foreign subsidiaries are measured using the foreign subsidiary's local currency as the functional currency. Assets and liabilities have been translated into U.S. dollars using the rates of exchange at the balance sheet dates. The results of operations have been translated into U.S. dollars at average exchange rates prevailing during the period. The resulting translation gain and loss adjustments are recorded as a separate component of comprehensive income.

Transaction gains and losses that arise from exchange rate fluctuations are included in the results of operations in the periods in which they occur, and are immaterial for each of the years in the three year period ended December 31, 2010.

Earnings Per Common Share

Basic earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income attributable to SEI Investments common shareholders by the combination of the weighted average number of common shares outstanding and the dilutive potential common shares, such as stock options, outstanding during the period. The calculations of basic and diluted earnings per share for 2010, 2009, and 2008 are:


	For the Year ended December 31, 2010
	Net income attributable to SEI (Numerator)		Shares (Denominator)		Per-Share Amount

Basic earnings per common share	$	231,687		188,468	$	1.23
Dilutive effect of stock options		0		1,853


Diluted earnings per common share	$	231,687		190,321	$	1.22

	For the Year ended December 31, 2009
	Net income attributable to SEI (Numerator)		Shares (Denominator)		Per-Share Amount

Basic earnings per common share	$	174,335		190,821	$	0.91
Dilutive effect of stock options		0		962


Diluted earnings per common share	$	174,335		191,783	$	0.91

	For the Year ended December 31, 2008
	Net income attributable to SEI (Numerator)		Shares (Denominator)		Per-Share Amount

Basic earnings per common share	$	139,254		192,057	$	0.73
Dilutive effect of stock options		0		3,176


Diluted earnings per common share	$	139,254		195,233	$	0.71

Employee stock options to purchase approximately 13,181,000, 22,997,000, and 13,654,000 shares of common stock, with an average exercise price per share of $23.79, $21.47, and $23.26, were outstanding during 2010, 2009, and 2008, respectively, but not included in the computation of diluted earnings per common share because the option's exercise price was greater than the average market price of the Company's common stock and the effect on diluted earnings per common share would have been anti-dilutive (See Note 8).

Stock-Based Compensation

Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is the vesting period. The Company uses historical data to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest. The amount of stock-based compensation expense that is recognized in a given period is dependent upon management's estimate of when the vesting targets are expected to be achieved. If this estimate proves to be inaccurate, the remaining amount of stock-based compensation expense could be accelerated, spread out over a longer period, or reversed (See Note 8).

Out of Period Adjustments

During the three month period ended December 31, 2008, the Company recorded an adjustment related to interest costs associated with borrowings in prior years when the Company was involved with various capital projects. Prior to that quarter, the Company incorrectly expensed all interest costs rather than capitalizing a portion of these costs as part of the cost basis of these capital projects. The Company did not have any interest costs in 2008 eligible for capitalization. The Company does not believe these prior period adjustments were quantitatively or qualitatively material to the financial results for any of its previously issued annual or interim financial statements through September 30, 2008. Had these errors been recorded in the proper periods, Net income would increase by $3,740 in 2007 and years prior. Retained earnings on January 1, 2006 would increase by $3,265. As a result, the Company did not restate any previously issued annual or interim financial statements. The net impact of the adjustments was an increase in Net income before taxes of $5,577 and an increase in Net income of $3,453 ($.02 diluted earnings per share) in the fourth quarter 2008. These non-cash adjustments were recognized in Other (expense) income on the accompanying Consolidated Statements of Operations and did not have any effect on any of the Company's business segments.

New Accounting Pronouncements

In February 2010, the FASB issued a final Accounting Standards Update that sets forth additional requirements and guidance regarding disclosures of fair value measurements. The new standard requires the gross presentation of activity within the Level 3 fair value measurement roll forward and details of transfers in and out of Level 1 and 2 fair value measurements. It also clarifies two existing disclosure requirements on the level of disaggregation of fair value measurements and disclosures on inputs and valuation techniques. The new requirements and guidance are effective for interim and annual periods beginning in the first quarter 2010 except that the Level 3 rollforward is effective in the first quarter 2011. The adoption of the new requirements and guidance effective in the first quarter 2010 did not have a material impact on the Company's consolidated financial statements. The Company does not expect the adoption of the guidance pertaining to the Level 3 rollforward to have a material impact on its consolidated financial statements.

Reclassifications

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

LSV and LSV Employee Group

12 Months Ended

Dec. 31, 2010

LSV and LSV Employee Group

LSV and LSV Employee Group

Note 2 – LSV and LSV Employee Group

The Company has an investment in LSV, a general partnership and 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 number of SEI-sponsored mutual funds. The Company's total partnership interest in LSV was approximately 42 percent during 2010 and 2009.

LSV Employee Group is owned by several current employees of LSV and was formed for the sole purpose of owning a partnership interest in LSV. The Company does not own any interest in LSV Employee Group. In 2006, LSV Employee Group purchased an eight percent interest in LSV from two existing partners. LSV Employee Group obtained financing in the form of a term loan pursuant to the terms of a Credit Agreement to purchase the eight percent interest in LSV. The Company agreed to provide a Guaranty Agreement to the lenders of all obligations of LSV Employee Group under the Credit Agreement. The lenders have the right to seek payment from the Company of all obligations of LSV Employee Group under the Credit Agreement in the event of default. The Company's direct interest in LSV was unchanged as a result of this transaction.

As a result of providing the Guaranty Agreement, LSV Employee Group became a VIE and the Company was considered the primary beneficiary. Also, given the Company's direct ownership of 43 percent in LSV at the time of this transaction in 2006 and its controlling interest in LSV Employee Group through the Guaranty Agreement, the Company was required to consolidate the assets, liabilities and operations of LSV and LSV Employee Group. The partnership interest of the other existing partners of LSV was included in Noncontrolling interest.

In January 2010, new accounting guidance pertaining to the consolidation of VIEs became effective. Under the new guidance, the Company was not considered the primary beneficiary of LSV Employee Group. The Company, therefore, discontinued consolidating the accounts and operations of LSV and LSV Employee Group in its financial statements. 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. The deconsolidation of LSV had no effect on Net income attributable to SEI. Prior period financial statements are not reclassified for the new accounting guidance.

LSV Asset Management

At December 31, 2010, the Company's total investment in LSV was $64,409. The investment in LSV exceeded the underlying equity in the net assets of LSV by $4,154, 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 $93,302, $73,518 and $123,086 in 2010, 2009 and 2008, respectively. The partnership distribution payment of $21,242 received in January 2010 is reflected in LSV and LSV Employee Group cash balances, net on the accompanying Consolidated Statement of Cash Flows.

These tables contain condensed financial information of LSV:


Condensed Statement of Operations Year ended December 31,	2010

Revenues	$	273,381

Net income	$	239,981

Condensed Balance Sheet December 31,	2010

Cash and cash equivalents	$	64,464
Accounts receivable, net of allowance for doubtful accounts of $369		75,056
Prepaid expenses and other current assets		848
Non-current assets		4,159


Total assets	$	144,527

Current liabilities	$	11,199
Partners' capital		133,328

Total liabilities and partners' capital	$	144,527

LSV Employee Group

At the time of LSV Employee Group's purchase of an eight percent interest in LSV, it was determined that $72,220 of the purchase price related to identifiable intangible assets and $19,780 was goodwill. The identifiable intangible assets have an estimated useful life of ten years and were amortized on a straight-line basis. Goodwill of $19,780 and intangible assets of $43,332 (net of accumulated amortization of $28,888) are included in the Company's Consolidated Balance Sheet at December 31, 2009 but were the assets of LSV Employee Group. These amounts were eliminated through Noncontrolling interest. Amortization expense in 2009 and 2008 on the accompanying Consolidated Statement of Operations includes $7,222 pertaining to the amortization of the intangible assets, but was eliminated through Noncontrolling interest and had no impact on net income.

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. As of December 31, 2010, the remaining unpaid principal balance of the term loan was $10,091. This amount is not reflected, nor is it required to be reflected, in the Company's Consolidated Balance Sheet at December 31, 2010. LSV Employee Group made principal payments of $10,461 during 2010. The deconsolidation of LSV Employee Group did not relinquish the Company's obligation under the Guaranty Agreement. In the event of default by LSV Employee Group, the Company would still be obligated under the Guaranty Agreement to make any required payments to the lenders according to the term loan.

At December 31, 2009, prior to the deconsolidation of LSV Employee Group, the unpaid principal balance of the term loan was $20,552, of which $6,400 was classified as current and included in Current portion of long-term debt and the remaining $14,152 was included in Long-term debt on the accompanying Consolidated Balance Sheet.

Interest expense in 2009 and 2008 on the Consolidated Statement of Operations includes $1,510 and $2,285, respectively, in interest costs associated with the borrowings of LSV Employee Group which was eliminated through Noncontrolling interest and had no impact on net income.

In January 2011, LSV Employee Group made a principal payment of $2,511. As of January 31, 2011, the remaining unpaid principal balance of the term loan was $7,580. Due to the fact that LSV Employee Group has satisfied all payment requirements relating to the term loan, the Company, in its capacity as guarantor, currently has no obligation to make any payments under the Guaranty Agreement. Furthermore, the Company fully expects that LSV Employee Group will meet all of its future obligations regarding the term loan.

Proforma Financial Information (Unaudited)

The unaudited proforma financial information as of December 31, 2009 and for the years ended December 31, 2009 and 2008 presents the financial position and historical results of the Company as if the accounts and operations of LSV and LSV Employee Group had not been consolidated and LSV had been accounted for under the equity method. Net income attributable to SEI and diluted earnings per share were unchanged due to this transaction but are presented for the purpose of clarification.


Proforma Unaudited Condensed Balance Sheets December 31,	2009

Cash and cash equivalents	$	532,552
Restricted cash		20,000
Receivables from regulated investment companies		28,134
Receivables, net		117,925
Other current assets		17,450


Total Current Assets		716,061

Property and Equipment, net		144,252
Capitalized software, net		278,656
Investments available for sale		55,671
Trading securities		126,196
Equity in unconsolidated affiliate		56,698
Other assets, net		18,023


Total Assets	$	1,395,557
Current liabilities		148,014
Long-term debt		233,000
Deferred income taxes		86,257
Other long-term liabilities		5,726

Total SEI Investments Shareholders' Equity		909,723
Noncontrolling interest		12,837

Total Equity		922,560

Total Liabilities and Equity	$	1,395,557


Proforma Unaudited Condensed Statement of Operations Year ended December 31,	2009			2008

Revenues	$	848,587		$	984,651
Expenses		(658,434	)		(714,758	)


Income from operations		190,153			269,893

Other income (expense), net		87			(140,320	)
Equity in the earnings of unconsolidated affiliate		75,415			98,971


Net income before income taxes		265,655			228,544
Income taxes		89,886			86,703


Net income		175,769			141,841


Less: Net income attributable to the noncontrolling interest		(1,434	)		(2,587	)


Net income attributable to SEI Investments	$	174,335		$	139,254


Diluted earnings per common share	$	0.91		$	0.71

Variable Interest Entities - Investment Products	12 Months Ended
Variable Interest Entities - Investment Products	Dec. 31, 2010
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. An entity that lacks decision-making rights is a VIE. In some circumstances, the Manager or Trustee of the Company's investment products controls the governing decisions about the investment activities with respect to the ongoing operations of the investment products without the equity investors possessing the right to remove the Manager or Trustee. Therefore, the equity investors, as a group, do not have the ability to make decisions that have an impact on the ongoing activities of such investment products. Consequently, some of the Company's investment products have been determined to be VIEs at inception. The VIEs are marketed with investment objectives to generate positive returns; however, the nature of such investments exposes the investors to the risk that the value of the VIEs may increase or decrease. The purpose and design of the VIEs are to achieve the investment objective by implementing strategies which are designed to minimize potential losses; however, there is no assurance given that these strategies will be successful. 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 fees paid to the decision maker of a VIE are considered to be variable interests if the decision maker is not subject to substantive kick-out rights. The fees paid to the Company represent a variable interest when the decision maker is not subject to substantive kick-out rights. 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, would not be 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 immaterial. 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 immaterial to the total current assets of the Company.

Composition of Certain Financial Statement Captions

12 Months Ended

Dec. 31, 2010

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:


	2010			2009
Trade receivables	$	34,528		$	40,499
Fees earned, not billed		93,506			144,325
Other receivables		9,651			2,841


		137,685			187,665

Less: Allowance for doubtful accounts		(1,195	)		(3,348	)


Receivables, net	$	136,490		$	184,317

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 (See Note 14).

Receivables at December 31, 2009 include $66,392, net of $1,149 of allowance for doubtful accounts, of receivables of LSV, of which $59,241 was included in Fees earned, not billed.

Property and Equipment

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


	2010			2009

Buildings	$	135,935		$	131,376
Equipment		63,902			62,634
Land		9,890			9,719
Purchased software		74,720			70,035
Furniture and fixtures		18,566			19,817
Leasehold improvements		4,250			5,739
Construction in progress		121			4,846


		307,384			304,166

Less: Accumulated depreciation		(166,816	)		(158,113	)


Property and Equipment, net	$	140,568		$	146,053

Depreciation expense related to property and equipment for 2010, 2009, and 2008 was $21,902, $21,531, and $22,032, respectively.

Other Assets

Other assets consist of long-term prepaid expenses, deposits and various other assets. Amortization expense for certain other assets for 2010, 2009, and 2008 was $995, $1,055 and $340, respectively.

The Company recognized gains of $3,072 in 2010 due to the sale of its entire ownership interest in a small, private company that was involved in a merger. The Company's investment in the firm had been accounted for under the cost basis. The gain is reflected in Net gain (loss) on investments on the accompanying Consolidated Statements of Operations.

Accrued Liabilities

Accrued Liabilities on the accompanying Consolidated Balance Sheets consist of:


	2010		2009

Accrued employee compensation	$	43,747	$	41,897
Accrued employee benefits and other personnel		6,988		6,241
Accrued consulting, outsourcing and professional fees		16,390		16,123
Accrued brokerage fees		11,756		15,840
Accrued other brokerage and royalties		2,718		2,214
Accrued subadvisory and investment officer fees		8,935		8,458
Accrued other asset management fees		6,185		6,923
Accrued income taxes		2,077		20,561
Accrued dividend payable		0		17,121
Other accrued liabilities		22,614		17,566


Accrued liabilities	$	121,410	$	152,944

Fair Value Measurements

12 Months Ended

Dec. 31, 2010

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) securities that are single issuer pools that are valued based on current market data for the specific issue owned or pools of similar GNMA securities. Level 3 financial assets consist of senior note obligations issued by SIVs. The Company did not have any Level 3 financial liabilities at December 31, 2010 or 2009. The Company provided support to two of its money market mutual funds that held SIV securities during 2009 and 2008 in the form of Capital Support Agreements; however, these agreements were terminated upon the Company's purchase of the remaining SIV securities from the funds in 2009. The Capital Support Agreements were considered derivative securities, for which the fair value was determined using the same model to value the SIV securities. There were no transfers of financial assets between levels within the fair value hierarchy during 2010.

Valuation of SIV Securities

The underlying collateral of the SIV securities is mainly comprised of asset-backed securities and collateralized debt obligations. The Company received prices for all of its SIV securities from two independent third party firms. Given the lack of any reliable market data on the SIV securities, the firms utilized a valuation model that employs a net asset approach which considers the value of the underlying collateral of the SIV securities to determine the fair value of the SIV securities. Management evaluates the prices received from these firms and considers other information, such as the existence of any current market activity, to determine the fair value of the SIV securities. The underlying collateral is specifically identified by its CUSIP or ISIN number.

The valuation model maintained by the third party firm to value the SIV securities (except the Stanfield Victoria note) attempts to obtain price quotes for each security that comprises the underlying collateral of the SIV securities. Price quotes are primarily obtained from two pricing vendors that are independent entities of the firm that maintains the valuation model. Other pricing vendors may be used in limited situations when a security quote cannot be obtained from either of the two primary pricing vendors. The average of the two quotes received is used to value each security. A portion of the securities that comprise the underlying collateral of the SIV securities are not priced by the pricing vendors. For these securities that lack price quotes, the last price quote received will be adjusted by the weighted average percentage movement of securities held as collateral within the same sector classification or based upon the weighted average movement of all priced securities. For example, a residential mortgage-backed security that has not received a quote for an extended period of time will be adjusted by the weighted average percentage movement of all quoted residential mortgage-backed securities held as collateral by the SIV security. Additionally, the securities are aggregated by type or sector (i.e. home equity line of credit, sub-prime 1^st liens, residential mortgage-backed securities, etc.) and the weighted average quote of all securities within a sector held by the SIV is compared with the range of quotes received for similar securities within the same sector from the trading desk of an affiliate of the third party firm that maintains the SIV valuation model. The weighted average quote of all securities within a sector held by the SIV must be within the range of quotes received from the trading desk within that same sector. If the weighted average quote for all securities within a sector held by the SIV is outside that range, the average quote received from the pricing vendors may be adjusted. In any event, the value assigned to each security held by the SIV will be the lower of (i) the average of the quotes received from the pricing vendors or (ii) the lowest quote received from the trading desk for a similar security.

The pricing vendors used by the firm that maintains the valuation model utilize widely-accepted pricing models, which are evaluated by the pricing vendor, that vary by asset class and incorporate available trade, bid, and other market information. The market inputs that these pricing vendors seek for their evaluation of securities include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and other available market data. Broker quotes may be binding or non-binding. For certain security types, additional inputs may be used. The pricing vendors may prioritize inputs differently from time to time for any security based on current market conditions. For each asset class, the pricing vendor has a team of evaluators that gather information from market sources and integrate relevant credit information, perceived market movements and sector news into the evaluated pricing models. For a structured security evaluation, including mortgage-backed securities, these evaluators would consider various characteristics including issuer, vintage, purpose of loan, collateral attributes, prepayment speeds and credit ratings in order to properly identify trades and quotes for similar securities which are gathered for use in the evaluation process. Evaluators follow multiple review processes throughout each month that assess the available market, credit and deal level information in support of the evaluation process. If it is determined that sufficient objectively verifiable information does not exist to support a security's valuation, the pricing vendor will discontinue providing a quote on that security. As previously stated, securities that lack a quote from a pricing vendor are valued using the most recent quoted price and adjusting that price by the weighted average percentage change in the respective sector of all other similar securities that are held by the SIV.

The model used by the second independent valuation firm to determine the fair value of the Stanfield Victoria note also utilized a net asset approach that attempts to value the underlying collateral of the SIV securities 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 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.

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 models of the two independent firms giving consideration to other market factors and risk premiums. Given the lack of any significant trading activity for any of the SIV securities owned by the Company, management believes that market prices for any SIV securities may not represent the implied fair value of the SIV securities owned by the Company.

Management evaluates current market transactions, if any, for each of the SIV securities. 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 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


			At December 31, 2009
			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	$	3,511	$	3,511	$	0	$	0
Fixed-income available-for-sale securities		52,190		0		52,190		0
Trading securities issued by SIVs		120,714		0		0		120,714
Other trading securities		5,482		5,482		0		0


	$	181,897	$	8,993	$	52,190	$	120,714

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, 2009 to December 31, 2010:


	Trading Securities Issued by SIVs			Other Trading Securities			Capital Support Agreements

Balance, January 1, 2009	$	5,713		$	1,697		$	(173,983	)

Purchases, issuances and settlements, net		294,762			(1,536	)		0
Transfer of Capital Support Agreement at purchase		(179,654	)		0			179,654
Total gains or (losses) (realized/unrealized):
Included in earnings		(107	)		(161	)		(5,671	)
Included in other comprehensive income		0			0			0
Transfers in and out of Level 3		0			0			0


Balance, December 31, 2009	$	120,714		$	0		$	0

Purchases, issuances and settlements, net		(64,316	)		0			0
Total gains or (losses) (realized/unrealized):
Included in earnings		44,247			0			0
Included in other comprehensive income		0			0			0
Transfers in and out of Level 3		0			0			0


Balance, December 31, 2010	$	100,645		$	0		$	0

- 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

12 Months Ended

Dec. 31, 2010

Marketable Securities

Marketable Securities

Note 6 – Marketable Securities

Investments Available For Sale

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


	For the Year ended December 31, 2010
	Cost		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

	For the Year Ended December 31, 2009
	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value

SEI-sponsored mutual funds	$	580	$	0	$	(40	)	$	540
Other mutual funds		3,111		0		(140	)		2,971
Debt securities		50,696		1,494		0			52,190


	$	54,387	$	1,494	$	(180	)	$	55,701

Net unrealized holding gains were $1,339 (net of income tax expense of $784) at December 31, 2010. Net unrealized holding gains were $960 (net of income tax expense of $354) at December 31, 2009. These unrealized gains and losses are reported as separate components of Accumulated other comprehensive income on the accompanying Consolidated Balance Sheets.

The Company recognized gross realized gains from available-for-sale securities of $184, $440 and $1,806 in 2010, 2009 and 2008, respectively. Gross realized losses in 2009 were $123. Gross realized losses in 2010 were minimal. There were no realized losses from available-for-sale securities in 2008.

The Company had investments in two SEI-sponsored mutual funds which primarily invest in fixed-income securities, including debt securities issued by municipalities and mortgage-backed securities. In 2008, management determined the decline in market value for these mutual funds was other-than-temporary and recorded an impairment charge of $1,961. In 2009, management determined that the further decline in market value for one of these mutual funds was other-than-temporary and, therefore, recorded another impairment charge for $901. The other-than-temporary impairment charges in 2009 and 2008 are included in Net gain (loss) on investments on the Consolidated Statements of Operations.

Derivatives held by the Company were in the form of equity contracts for the purpose of hedging market risk of certain available for sale securities and held only for the purpose of hedging such risk and not for speculation. The Company did not own any derivative financial instruments to hedge market risk of available for sale securities in 2010 or 2009. Net gain (loss) from investments on the accompanying Consolidated Statements of Operations includes net gains of $676 in 2008 from changes in the fair value of derivative instruments.

The Company's debt securities are issued by the Government National Mortgage Association and are backed by the full faith and credit of the U.S. government. These securities were purchased to satisfy applicable regulatory requirements of SPTC and have maturity dates which range from 2020 to 2040.

Trading Securities

Trading securities of the Company consist of:


	For the Year ended 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

	For the Year ended December 31, 2009
	Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value

SIV securities	$	309,796	$	0	$	(189,082	)	$	120,714
LSV-sponsored mutual funds		4,000		1,482		0			5,482


	$	313,796	$	1,482	$	(189,082	)	$	126,196

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 (loss) from investments on the accompanying Consolidated Statements of Operations.

Through December 31, 2010, the Company recognized $144,835 in cumulative losses from SIV securities. During 2010, the Company recognized gains from SIV securities of $44,247, of which $27,510 resulted from cash payments received from the SIV securities and $16,460 was from a net increase in fair value at December 31, 2010. In addition, the Company recognized a net gain of $277 from sales of three SIV securities during 2010. The cumulative loss recognized by the Company pertaining to these SIV securities sold in 2010 was $17,944. During 2009, the Company recognized losses of $5,778 from SIV securities and SIV-related issues. The net gains (losses) from the SIV securities and SIV-related issues are reflected in Net gain (loss) 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 as the fair value of the Stanfield Victoria note at December 31, 2010 was not different than the sale price received. Currently, the Company's remaining SIV security consists of the senior note obligation issued by Gryphon.

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. During the three months ended June 30, 2010, the Company sold a portion of its investment in the LSV-sponsored funds. Additionally, the Company sold all of the equity and currency futures contracts originally purchased as part of an economic strategy to minimize exposure to price and currency risk related to the investment. The net gains recognized from the partial sale of the LSV-sponsored funds and the equity and futures contracts were minimal. As of December 31, 2010, the Company's remaining investment in the LSV-sponsored funds had a cost value of $2,049 and a fair value of $3,949.

Lines of Credit	12 Months Ended
Lines of Credit	Dec. 31, 2010
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. In 2009, the Company borrowed $254,000 from the Credit Facility to finance the purchase of SIV securities from SEI-sponsored money market mutual funds (See Note 6). The Company made principal payments of $138,000 and $21,000 during 2010 and 2009, respectively. As of December 31, 2010, the outstanding balance of the Credit Facility was $95,000 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 during 2010. As of December 31, 2010, 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 continue to include the outstanding debt of LSV Employee Group in the calculation of consolidated indebtedness. 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 December 31, 2010, the Company's leverage ratio was 0.24 times EBITDA. The average rates applied to the Credit Facility during 2010 and 2009 were 0.77 percent and 1.05 percent, respectively. The Company incurred $1,478, $2,491, and $1,019 in interest charges and commitment fees relating to all lines of credit during 2010, 2009, and 2008, respectively, and is reflected in Interest expense on the accompanying Consolidated Statements of Operations. 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 2010.

Shareholders' Equity

12 Months Ended

Dec. 31, 2010

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 2010 or 2009.

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.

All outstanding stock options have performance-based vesting provisions that tie the vesting of stock options to the Company's financial performance. The Company's stock options vest at a rate of 50 percent when a specified diluted earning per share target is achieved, and the remaining 50 percent when a second, higher specified diluted earnings per share target is achieved. Stock options granted prior to 2006 fully vest after seven years from the date of grant. Beginning in 2006, the seven year vesting trigger was eliminated and, as a result, options do not vest due to the passage of time but solely as a result of achievement of the financial vesting targets. Earnings per share targets are calculated exclusive of stock-based compensation expense, net of tax. The diluted earnings per share targets are established at time of grant and are measured annually on December 31. The amount of stock-based compensation expense is based upon management's estimate of when the earnings per share targets may be achieved. If management's estimate of the attainment of the earnings per share targets proves to be inaccurate, the remaining amount of stock-based compensation expense could be accelerated, spread out over a longer period, or reversed. This may cause volatility in the recognition of stock-based compensation expense in future periods and could materially affect the Company's net income and net income per share.

The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair value of stock options on the date of grant using an option-pricing model is affected by the price of the Company's common stock as well as other variables. These variables include expected stock price volatility over the term of the awards, actual and projected employee stock exercise behaviors, risk-free interest rate and expected dividends. The Company primarily uses historical data to estimate the variables used in the option-pricing model except expected volatility. The Company uses a combination of historical and implied volatility. The Company estimates forfeitures at the time of grant and may revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest. Stock-based compensation is amortized over the requisite service periods of the awards, which are generally the vesting periods.

The weighted average fair value of the Company's stock options granted during 2010, 2009 and 2008 were $9.65, $7.24 and $7.35, respectively, using the following assumptions:


	2010			2009			2008

Expected term (in years)		7.45			7.49			7.28
Expected volatility		36.35	%		37.44	%		52.66	%
Expected dividend yield		0.84	%		1.02	%		1.02	%
Risk-free interest rate		3.01	%		3.31	%		2.27	%

The Company recognized stock-based compensation expense in its Consolidated Financial Statements in 2010, 2009 and 2008 as follows:


	2010			2009			2008

Stock-based compensation expense	$	26,783		$	14,503		$	16,010
Less: Deferred tax benefit		(10,068	)		(4,636	)		(4,972	)


Stock-based compensation expense, net of tax	$	16,715		$	9,867		$	11,038

During 2010, the Company revised its estimates of when some vesting targets are expected to be achieved. These changes in management's estimates resulted in an increase of $11,663 in stock-based compensation expense in 2010. Additionally, during the three months ended September 30, 2010, the Company reversed $6,375 of previously-recognized stock-based compensation costs pertaining to option grants which management does not expect to vest. Management does not expect to recognize any compensation cost associated with these option grants. As of December 31, 2010, these option grants have an unrecognized compensation cost of $27,460.

The Company reduced the amount of stock-based compensation expense recognized in 2009 and 2008 by $8,223 and $6,023 due to a change in management's estimate of when certain vesting targets are expected to be achieved.

As of December 31, 2010, there was approximately $52,049 of unrecognized compensation cost remaining, adjusted for estimated forfeitures, related to unvested employee stock options that the Company expects will vest. The Company estimates that compensation cost will be recognized according to the following schedule:


Period	Stock-Based Compensation Expense

2011	$	14,560
2012		14,427
2013		12,533
2014		5,550
2015		3,286
2016		1,693


	$	52,049

This table presents certain information relating to the Company's stock option plans for 2010, 2009, and 2008:


	Number of Shares			Weighted Avg. Price

Balance as of December 31, 2007		27,767,000		$	20.02
Granted		4,539,000			14.65
Exercised		(2,454,000	)		10.44
Expired or canceled		(969,000	)		22.92


Balance as of December 31, 2008		28,883,000		$	19.90
Granted		4,222,000			17.66
Exercised		(2,055,000	)		10.53
Expired or canceled		(2,086,000	)		21.87


Balance as of December 31, 2009		28,964,000		$	20.09
Granted		2,883,000			23.84
Exercised		(1,633,000	)		16.04
Expired or canceled		(2,333,000	)		23.68


Balance as of December 31, 2010		27,881,000		$	20.42

Exercisable as of December 31, 2010		14,247,000		$	17.58

Available for future grant as of December 31, 2010		6,741,000

As of December 31, 2009 and 2008, there were 11,801,000 and 13,245,000 shares exercisable, respectively. The expiration dates for options outstanding at December 31, 2010 range from May 29, 2011 to December 14, 2020 with a weighted average remaining contractual life of 6.1 years.

Upon exercise of stock options, the Company will issue new shares of its common shares. The Company does not hold any shares in treasury. The total intrinsic value of options exercised during 2010 and 2009 was $9,961 and $14,015, respectively. The aggregate intrinsic value of options outstanding and options exercisable as of December 31, 2010 was $94,032 and $88,538, respectively. The total intrinsic value for options outstanding and options exercisable is calculated as the difference between the market value of the Company's common stock as of December 31, 2010 and the exercise price of the shares. The market value of the Company's common stock as of December 31, 2010 was $23.79 as reported by the Nasdaq Stock Market, LLC.

This table summarizes information relating to all options outstanding and exercisable at December 31, 2010:


		Options Outstanding at December 31, 2010						Options Exercisable at December 31, 2010
Range of Exercise Prices (Per Share)		Number of Shares		Weighted Average Exercise Price (Per Share)		Weighted Average Remaining Contractual Life (Years)		Number of Shares		Weighted Average Exercise Price (Per Share)		Weighted Average Remaining Contractual Life (Years)
$	14.05 – 14.62		4,156,000	$	14.62		7.99		2,081,000	$	14.62		7.98
	14.71 – 16.61		4,821,000		14.79		2.70		4,592,000		14.77		2.64
	17.35 – 19.28		6,907,000		18.32		7.36		3,371,000		18.30		7.42
	19.53 – 23.86		7,110,000		22.47		5.82		4,188,000		21.50		2.95
	27.03 – 32.49		4,887,000		30.88		6.46		15,000		27.03		6.00


			27,881,000						14,247,000

As of December 31, 2010 and 2009, there was $141,438 and $139,561 available in the pool of windfall tax benefits.

Employee Stock Purchase Plan

The Company has an employee stock purchase plan that provides for offerings of common stock to eligible employees at a price equal to 85 percent of the fair market value of the stock at the end of the stock purchase period, as defined. The Company has reserved 15,600,000 shares for issuance under this plan. At December 31, 2010, 11,364,000 cumulative shares have been issued. Costs incurred by the Company related to the employee stock purchase plan were immaterial in 2010, 2009 and 2008.

Common Stock Buyback

The Board of Directors has authorized the purchase of the Company's common stock on the open market or through private transactions of up to an aggregate of $1.728 billion. Through December 31, 2010, a total of 263,813,439 shares at an aggregate cost of $1.621 billion have been purchased and retired. The Company purchased 5,814,083 shares at a cost of $120,982 during 2010.

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.

Rights Agreement

In December 2008, the Company's Board of Directors declared a dividend distribution pursuant to a Rights Agreement (the Rights Agreement) which became effective on January 6, 2009. The purpose of the Rights Agreement is to deter coercive or unfair takeover tactics and to prevent a person or group (an Acquiring Person) from acquiring control of the Company without offering a fair price to all shareholders. Under the Rights Agreement, all common shareholders receive one Right for each common share outstanding. Each Right entitles the registered holder to purchase from the Company a unit consisting of one twenty-thousandths of a share of Series A Junior Participating Preferred Shares, $.05 par value per share, or a combination of securities and assets of equivalent value, at a purchase price of $150.00 per unit, subject to adjustment. The Rights will become exercisable and trade separately from the common stock ten days following a public announcement that an Acquiring Person has beneficial ownership of more than 20 percent of the outstanding common stock of the Company or the commencement of a tender or exchange offer that would result in an Acquiring Person owning 20 percent or more of the outstanding common stock of the Company. Upon exercise, holders, other than an Acquiring Person, will have the right to purchase the common stock of the Company equal to twice the value of the exercise price of the Rights. In lieu of requiring payment of the purchase price upon exercise of the Rights following certain events, the Company may permit the holders simply to surrender the Rights, in which event they will be entitled to receive common shares and other property, as the case may be, with a value of 50 percent of what could be purchased by payment of the full purchase price. The Rights, which do not have voting rights, will expire on January 6, 2019, and may be redeemed by the Company any time until ten days following the announcement of an Acquiring Person at a price of $.01 per Right.

Cash Dividends

On May 25, 2010, the Board of Directors declared a cash dividend of $.10 per share on the Company's common stock, which was paid on June 28, 2010, to shareholders of record on June 23, 2010. On December 14, 2010, the Board of Directors declared a cash dividend of $.10 per share on the Company's common stock, which was paid on December 30, 2010, to shareholders of record on December 23, 2010.

The cash dividends declared in 2010, 2009, and 2008 were $37,513, $32,422, and $30,636, respectively. The Board of Directors has indicated its intention to declare future cash dividends on a semiannual basis.

Noncontrolling Interest

The following table provides a reconciliation of Noncontrolling interest on the Consolidated Statements of Changes in Equity:


Year Ended December 31,	2010			2009			2008

Noncontrolling interest
Beginning balance	$	121,895		$	109,722		$	138,151
Net income attributable to noncontrolling interest		1,633			98,097			128,273
Foreign currency translation adjustments		685			1,797			(5,150	)
Deconsolidation of LSV		(65,522	)		0			0
Deconsolidation of LSV Employee Group		(43,536	)		0			0
Distributions to noncontrolling interests		0			(87,337	)		(144,399	)
Other		0			(384	)		(7,153	)

Ending balance	$	15,155		$	121,895		$	109,722

- 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)

12 Months Ended

Dec. 31, 2010

Accumulated Comprehensive Income (Loss)

Accumulated Comprehensive Income (Loss)

Note 9 – Accumulated Comprehensive Income (Loss)

Comprehensive income consists of net income and other gains and losses affecting shareholders' equity that are excluded from net income. For the Company, comprehensive income includes unrealized gains and losses on available for sale securities and foreign currency translation adjustments. The Company presents comprehensive income in its Consolidated Statements of Comprehensive Income. Components of Accumulated other comprehensive income (loss) consisted of:


	Foreign Currency Translation Adjustments			Unrealized Holding Gains (Losses) On Investments			Accumulated Other Comprehensive Income (Loss)
Total accumulated comprehensive income at January 1, 2008	$	9,174		$	816		$	9,990

Less: Total accumulated comprehensive income attributable to noncontrolling interest at January 1, 2008		(2,002	)		0			(2,002	)


Total accumulated comprehensive income attributable to SEI Investments Company at January 1, 2008	$	7,172		$	816		$	7,988

Total comprehensive loss		(18,961	)		(2,340	)		(21,301	)

Less: Total comprehensive loss attributable to noncontrolling interest		5,150			0			5,150


Total comprehensive income attributable to SEI Investments Company	$	(13,811	)	$	(2,340	)	$	(16,151	)

Total accumulated comprehensive loss at December 31, 2008		(9,787	)		(1,524	)		(11,311	)

Less: Total accumulated comprehensive loss attributable to noncontrolling interest at December 31, 2008		3,148			0			3,148


Total accumulated comprehensive loss attributable to SEI Investments Company at December 31, 2008	$	(6,639	)	$	(1,524	)	$	(8,163	)

Total comprehensive income		8,734			2,484			11,218

Less: Total comprehensive income attributable to noncontrolling interest		(1,797	)		0			(1,797	)


Total comprehensive income attributable to SEI Investments Company	$	6,937		$	2,484		$	9,421

Total accumulated comprehensive income (loss) at December 31, 2009		(1,053	)		960			(93	)

Less: Total accumulated comprehensive loss attributable to noncontrolling interest at December 31, 2009		1,351			0			1,351


Total accumulated comprehensive income attributable to SEI Investments Company at December 31, 2009	$	298		$	960		$	1,258
Total comprehensive income		2,205			379			2,584

Less: Total comprehensive income attributable to noncontrolling interest		(685	)		0			(685	)


Total comprehensive income attributable to SEI Investments Company	$	1,520		$	379		$	1,899

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

- 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

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 31, 2010
Employee Benefit Plan
Employee Benefit Plan	Note 10 - Employee Benefit Plan: The Company has a tax-qualified defined contribution plan (the Plan). The Plan provides retirement benefits, including provisions for early retirement and disability benefits, as well as a tax-deferred savings feature. After satisfying certain requirements, participants are vested in employer contributions at the time the contributions are made. All Company contributions are discretionary and are made from available profits. The Company contributed $4,496, $4,327, and $4,844 to the Plan in 2010, 2009, and 2008, respectively.

- Definition

Description containing the entire pension and other postretirement benefits disclosure as a single block of text.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2010

Commitments and Contingencies

Commitments and Contingencies

Note 11 - Commitments and Contingencies:

The Company leases certain of its facilities, data processing equipment, and software under non-cancelable operating leases, some which contain escalation clauses for increased taxes and operating expenses. The Company has entered into maintenance agreements primarily for its data processing equipment. Rent expense was $17,210, $19,022, and $21,535 in 2010, 2009, and 2008, respectively.

The aggregate noncancellable minimum commitments at December 31, 2010, other than those related to the lines of credit, are:


2011	$	15,254
2012		14,719
2013		10,278
2014		3,661
2015 and thereafter		11,092


	$	55,004

In the ordinary course of business, the Company from time to time enters into contracts containing indemnification obligations of the Company. These obligations may require the Company to make payments to another party upon the occurrence of certain events including the failure by the Company to meet its performance obligations under the contract. These contractual indemnification provisions are often standard contractual terms of the nature customarily found in the type of contracts entered into by the Company. In many cases, there are no stated or notional amounts included in the indemnification provisions. There are no amounts reflected on the Consolidated Balance Sheets as of December 31, 2010 and 2009 related to these indemnifications.

In the normal course of business, the Company is party to various claims and legal proceedings. One of the Company's 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, which is a client of the Company. 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 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 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 supposedly failed adequately to 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 Complaints were consolidated, and an Amended Consolidated Class Action Complaint (Amended Complaint) was filed on September 24, 2010, which asserted the same claims and added a few individuals who alleged served as "Attorney-in-fact" as defendants. Defendants filed a Motion to Dismiss the Amended Complaint on November 15, 2010. On December 15, 2010, lead plaintiff informed the Court and defendants that he intends to file a second amended consolidated complaint. While the outcome of this litigation is uncertain given its early phase, the Company believes that it has valid defenses to plaintiffs' claims and intends to defend the lawsuits vigorously.

The Company 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 the Company, and, in all five actions, the plaintiffs purport to bring a cause of action against the Company under the Louisiana Securities Act. The putative class action originally included a claim against the Company 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 the Company 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 the Company 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. The Company 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. The Company and SPTC filed an answer to the East Baton Rouge putative class action, and plaintiffs filed a motion for class certification. Class discovery has commenced, and a hearing on the motion for class certification is scheduled for March 2011. The response of the Company and SPTC to the petitions filed in the two non-class action cases remaining in East Baton Rouge is due in February 2011. While the outcome of this litigation is uncertain given its early phase, the Company and SPTC believe that they have valid defenses to plaintiffs' claims and intend to defend the lawsuits vigorously.

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes

Income Taxes

Note 12 - Income Taxes:

The federal and state and foreign income tax provision is summarized as follows:


Year Ended December 31,	2010		2009		2008

Current
Federal	$	116,388	$	16,012	$	104,984
State		8,698		664		9,023
Foreign		3,365		5,412		6,440


		128,451		22,088		120,447

Deferred, including current deferred
Federal		6,085		61,443		(37,180	)
State		1,509		5,822		2,453


		7,594		67,265		(34,727	)


Income taxes attributable to the Noncontrolling interest (1)		416		533		983

Total income taxes	$	136,461	$	89,886	$	86,703

(1)	There is no income tax provision for LSV due to its partnership structure.

Annual tax provisions include amounts considered sufficient to pay assessments that may result from examination of prior year tax returns; however, the amount ultimately paid upon resolution of issues raised may differ materially from the amount accrued. The examination and the resolution process may last longer than one year.

The components of Net income before income taxes are summarized as follows:


Year Ended December 31,	2010		2009		2008

Domestic	$	360,937	$	255,390	$	340,991
Foreign		6,795		8,300		13,241


	$	367,732	$	263,690	$	354,232

The effective income tax rate differs from the federal income tax statutory rate due to the following:


Year Ended December 31,	2010			2009			2008

Statutory rate		35.0	%		35.0	%		35.0	%
State taxes, net of Federal tax benefit		2.0			1.5			3.3
Foreign tax expense and tax rate differential		0.4			1.1			0.7
Research and development tax credit		(0.5	)		(0.8	)		(1.3	)
Valuation allowance on capital losses, PA loss carryforwards and other, net		0			0			(0.2	)
Net reduction of uncertain tax positions(2)		0.2			(2.7	)		0
Other, net		(0.1	)		(0.2	)		0.6


		37.0	%		33.9	%		38.1	%

(2)

For 2010, 0.14 percent relates to federal issues and the remaining balance 0.06 percent relates to state tax issues. For 2009, 2.0 percent relates to research and development tax credit settled with the Internal Revenue Service (IRS), 0.5 percent relates to federal issues settled with the IRS and the remaining 0.2 percent relates to state tax issues.

Undistributed earnings of the Company's foreign subsidiaries amounted to approximately $58,178 at December 31, 2010. Those earnings are considered to be indefinitely reinvested and, accordingly, no U.S. federal and state income taxes have been provided thereon. Upon distribution of those earnings, in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes, subject to an adjustment for foreign tax credits, and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable because of the complexities associated with its hypothetical calculation, including the availability, or lack thereof, of foreign tax credits to reduce a portion of the U.S. liability.

Deferred income taxes for 2010, 2009, and 2008 reflect the impact of temporary differences between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. Principal items comprising the deferred income tax provision are:


Year Ended December 31,	2010			2009			2008

Difference in financial reporting and income tax depreciation methods	$	1,381		$	(86	)	$	2,792
Reserves not currently deductible		774			394			2,800
Reserves for Capital Support Agreements and basis difference in SIV securities		4,822			60,491			(49,792	)
Capitalized software currently deductible for tax purposes, net of amortization		5,734			2,876			12,220
State deferred income taxes		1,519			2,394			1,595
Revenue and expense recognized in different periods for financial reporting and income tax purposes		(562	)		(122	)		1,599
Stock-based compensation expense		(7,457	)		(4,386	)		(4,567	)
Uncertain tax positions		(106	)		2,861			(297	)
Other, net		1,489			2,843			(1,077	)


	$	7,594		$	67,265		$	(34,727	)

The net deferred income tax liability is comprised of:


Year Ended December 31,	2010			2009

Current deferred income taxes:
Gross assets	$	1,388		$	2,333
Gross liabilities		(1	)		(50	)

		1,387			2,283
Valuation allowance		0			0

		1,387			2,283

Long-term deferred income taxes:
Gross assets		59,892			50,810
Gross liabilities		(143,137	)		(130,850	)

		(83,245	)		(80,040	)
Valuation allowance		(9,008	)		(6,217	)

		(92,253	)		(86,257	)


Net deferred income tax liability	$	(90,866	)	$	(83,974	)

The valuation allowances against deferred tax assets at December 31, 2010 and 2009 are related to state net operating losses from certain domestic subsidiaries. Certain state tax statutes significantly limit the utilization of net operating losses for domestic subsidiaries. Furthermore, these net operating losses cannot be used to offset the net income of other subsidiaries. As of December 31, 2010, the Company fully utilized its capital loss carryforward in the amount of $4,256.

The tax effect of significant temporary differences representing deferred tax liabilities is:


Year Ended December 31,	2010			2009

Difference in financial reporting and income tax depreciation methods	$	(11,402	)	$	(10,879	)
Reserves not currently deductible		472			905
Capitalized software currently deductible for tax purposes, net of amortization		(132,030	)		(123,693	)
State deferred income taxes		5,337			4,565
Revenue and expense recognized in different periods for financial reporting and income tax purposes		3,015			2,300
Unrealized holding loss (gain) on investments		(5,292	)		(338	)
Stock-based compensation expense		40,096			31,052
State net operating loss carryforward		16,634			15,518
Valuation allowance on deferred tax assets		(9,008	)		(6,217	)
Federal benefit of state tax deduction for uncertain tax positions		1,542			1,518
Capital loss, net of valuation allowance		0			1,527
Other, net		(230	)		(232	)


Net deferred income tax liability	$	(90,866	)	$	(83,974	)

The Company recognizes tax liabilities in accordance with the applicable accounting guidance and adjusts these liabilities when management's judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different than from our current estimate of the tax liabilities. The Company's total unrecognized tax benefit, not including interest and penalties, as of December 31, 2010 was $5,723, of which $4,870 would affect the effective tax rate if the Company were to recognize the tax benefit. The gross amount of uncertain tax liability of $767 which is expected to be paid within one year is included in Current liabilities while the remaining amount of $5,645 is included in Other long-term liabilities on the accompanying Consolidated Balance Sheets. During the year ended December 31, 2010, the Company recognized $432 of previously unrecognized tax benefits relating to the lapse of the statute of limitation for certain state filings.

The Company files a consolidated federal income tax return and separate income tax returns with various states. Certain subsidiaries of the Company file tax returns in foreign jurisdictions. 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 2001.

A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows:


	2010			2009			2008

Balance as of January 1	$	4,989		$	13,453		$	13,329

Tax positions related to current year:
Gross additions		1,372			1,905			1,288
Gross reductions		0			0			0

		1,372			1,905			1,288

Tax positions related to prior years:
Gross additions		0			0			468
Gross reductions		(104	)		0			(273	)

		(104	)		0			195

Settlements		(102	)		(9,888	)		0
Lapses on statute of limitations		(432	)		(481	)		(1,359	)


Balance as of December 31	$	5,723		$	4,989		$	13,453

The above reconciliation of the gross unrecognized tax benefit will differ from the amount which would affect the effective tax rate because of the recognition of the federal and state tax benefits.

The Company classifies all interest and penalties as income tax expense. The Company has recorded $690, $864 and $2,337 in liabilities for tax related interest and penalties in 2010, 2009, and 2008, respectively.

The Company estimates it will recognize $499 of unrecognized tax benefits within the next twelve months due to lapses on the statute of limitation.

The Company includes its direct and indirect subsidiaries in its U.S. consolidated federal income tax return. The Company's tax sharing allocation agreement provides that any subsidiary having taxable income will pay a tax liability equivalent to what that subsidiary would have paid if it filed a separate income tax return. If the separately calculated federal income tax provision for any subsidiary results in a tax loss, the current benefit resulting from such loss, to the extent utilizable on a separate return basis, is accrued and paid to that subsidiary.

Business Segment Information

12 Months Ended

Dec. 31, 2010

Business Segment Information

Business Segment Information

Note 13 - 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®.

In January 2010, the Company deconsolidated the assets, liabilities and operations of LSV Asset Management. As a result, LSV is no longer considered a reportable business segment in 2010.

In 2010 and 2009, no single customer accounted for more than ten percent of revenues in any business segment.

The following tables highlight certain financial information about each of the Company's business segments for the years ended December 31, 2010, 2009, and 2008:


2010	Private Banks			Investment Advisors			Institutional Investors			Investment Managers			Investments In New Businesses			Total

Revenues	$	346,668		$	183,378		$	206,531		$	160,159		$	4,099		$	900,835
Expenses		310,633			110,388			106,934			103,421			12,676			644,052

Operating profit (loss)	$	36,035		$	72,990		$	99,597		$	56,738		$	(8,577	)	$	256,783

Profit margin		10	%		40	%		48	%		35	%		N/A			29	%


2009	Private Banks			Investment Advisors			Institutional Investors			Investment Managers			Investments In New Businesses			LSV			Total

Revenues	$	361,273		$	166,097		$	177,721		$	139,004		$	4,492		$	211,961		$	1,060,548
Expenses (1)		309,300			109,418			99,924			93,074			11,625			136,580			759,921

Operating profit (loss)	$	51,973		$	56,679		$	77,797		$	45,930		$	(7,133	)	$	75,381		$	300,627

Profit margin		14	%		34	%		44	%		33	%		N/A			36	%		28	%


2008	Private Banks			Investment Advisors			Institutional Investors			Investment Managers			Investments In New Businesses			LSV			Total

Revenues	$	408,500		$	223,164		$	198,154		$	147,968		$	6,865		$	263,268		$	1,247,919
Expenses (1)		326,661			122,231			112,866			101,078			15,795			164,783			843,414

Operating profit (loss)	$	81,839		$	100,933		$	85,288		$	46,890		$	(8,930	)	$	98,485		$	404,505

Profit margin		20	%		45	%		43	%		32	%		N/A			37	%		32	%

(1)	For the years ended December 31, 2009 and 2008, LSV includes $105,471 and $135,251, respectively, of noncontrolling interest of the other partners of LSV.

A reconciliation of the total reported for the business segments to income from operations in the Consolidated Statements of Operations for the years ended December 31, 2010, 2009, and 2008 is as follows:


Year Ended December 31,	2010			2009			2008

Total operating profit from segments above	$	256,783		$	300,627		$	404,505

Corporate overhead expenses		(40,715	)		(36,529	)		(38,955	)
Noncontrolling interest reflected in segments		1,465			106,905			138,079
LSV Employee Group expenses (2)		0			(7,296	)		(7,280	)


Income from operations	$	217,533		$	363,707		$	496,349

(2)	Includes $7,222 in 2009 and 2008 of amortization expense related to intangible assets.

The following tables provide additional information for the years ended December 31, 2010, 2009, and 2008 pertaining to our business segments:


Year Ended December 31,	Capital Expenditures						Depreciation
Year Ended December 31,	2010		2009		2008		2010		2009		2008

Private Banks	$	32,982	$	39,364	$	48,467	$	15,704	$	15,415	$	15,088
Investment Advisors		11,691		13,607		17,005		2,384		2,286		2,609
Institutional Investors		2,601		2,665		4,434		1,170		1,108		1,251
Investment Managers		3,659		4,306		5,467		1,891		1,580		1,805
Investments in New Businesses		608		831		1,166		148		176		253
LSV		0		1,358		156		0		395		382

Total from business segments	$	51,541	$	62,131	$	76,695	$	21,297	$	20,960	$	21,388

LSV Employee Group		0		0		0		0		0		0
Corporate Overhead (A)		799		1,085		7,184		605		571		644


	$	52,340	$	63,216	$	83,879	$	21,902	$	21,531	$	22,032

(A)	Includes an Out of period adjustment related to capitalized interest for $5,777 in 2008 (See Note 1).


	Amortization
Year Ended December 31,	2010		2009		2008

Private Banks	$	15,100	$	24,058	$	11,324
Investment Advisors		5,467		8,550		3,985
Institutional Investors		1,213		927		406
Investment Managers		820		688		359
Investments in New Businesses		477		1,897		1,140
LSV		0		436		437

Total from business segments	$	23,077	$	36,556	$	17,651

LSV Employee Group		0		7,280		7,001
Corporate Overhead		971		772		275


	$	24,048	$	44,608	$	24,927


	Total Assets
	2010		2009

Private Banks	$	460,261	$	428,367
Investment Advisors		113,111		108,426
Institutional Investors		72,867		68,101
Investment Managers		96,378		102,682
Investments in New Businesses		6,801		9,669
LSV		0		127,152

Total from business segments	$	749,418	$	844,397

LSV Employee Group		0		63,117
Corporate Overhead (3)		627,805		626,294


	$	1,377,223	$	1,533,808

(3)	Unallocated assets primarily consist of cash and cash equivalents, marketable securities, and certain other shared services assets.

The following table presents revenues based on the location of the use of the products or services:


For the Year Ended December 31,	2010		2009		2008

United States	$	767,068	$	950,891	$	1,103,727
International operations		133,767		109,657		144,192


	$	900,835	$	1,060,548	$	1,247,919

The following table presents assets based on their location:


	2010		2009

United States	$	1,193,775	$	1,380,038
International operations		183,448		153,770


	$	1,377,223	$	1,533,808

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2010
Related Party Transactions
Related Party Transactions	Note 14 - Related Party Transactions: The Company, either by itself or through its wholly-owned subsidiaries, is a party to Investment Advisory and Administration Agreements with regulated investment companies (RICs) and other investment products which are administered by the Company. These investment products are offered to clients of the Company and its subsidiaries. Under the Investment Advisory and Administration Agreements, the Company receives a fee for providing investment advisory, administrative, and accounting services. The investment advisory and administration fee is a fixed percentage, referred to as basis points, of the average daily net assets, subject to certain limitations. Investment advisory and administration fees received by the Company totaled $354,341, $334,084, and $425,136, in 2010, 2009, and 2008, respectively. The Company is also a party to various agreements with several RICs which are advised and/or administered by the Company. The Company receives a fee for providing shareholder, administrative and distribution services pursuant to the provisions of various shareholder service, administrative service, and distribution plans adopted by the RICs. These fees totaled $36,007, $33,008, and $50,689 in 2010, 2009, and 2008, respectively. A portion of the transaction costs incurred by the RICs for securities transactions are directed to the Company's broker-dealer subsidiary in its capacity as an introducing broker-dealer. The Company recognized $4,875, $4,300, and $2,891 in commissions during 2010, 2009, and 2008, respectively.

- Definition

This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2010

Quarterly Financial Data (Unaudited)

Quarterly Financial Data (Unaudited)

Note 15 - Quarterly Financial Data (Unaudited):


	For the Three Months Ended
2010	March 31			June 30			Sept. 30			Dec. 31

Revenues	$	221,535		$	228,388		$	219,513		$	231,399
Income before income taxes	$	96,127		$	86,442		$	91,032		$	96,180
Net income attributable to SEI	$	59,420		$	53,478		$	56,389		$	62,400
Basic earnings per share	$	.31		$	.28		$	.30		$	.33
Diluted earnings per share	$	.31		$	.28		$	.30		$	.33

Effective income tax rate		37.9	%		37.8	%		37.8	%		37.0	%

Total SIV-related gains	$	17,349		$	3,913		$	8,728		$	14,257
Diluted earnings per share (1)	$	.06		$	.01		$	.03		$	.05

(1)	Attributable to SIV-related gains.


	For the Three Months Ended
2009	March 31			June 30			Sept. 30			Dec. 31

Revenues	$	248,611		$	252,009		$	275,933		$	283,995
Income before income taxes	$	59,992		$	88,339		$	111,782		$	102,205
Net income attributable to SEI	$	34,200		$	41,571		$	52,727		$	45,837
Basic earnings per share	$	.18		$	.22		$	.28		$	.24
Diluted earnings per share	$	.18		$	.22		$	.27		$	.24

Effective income tax rate		20.5	%		36.8	%		37.0	%		35.7	%

Total SIV-related gains (losses)	$	(14,442	)	$	(2,260	)	$	14,912		$	(3,989	)
Diluted earnings per share (2)	$	(.05	)	$	(.01	)	$	.05		$	(.01	)

(2)	Attributable to SIV-related gains (losses).

Our effective tax rate in the first quarter of 2009 was favorably impacted by the recognition of certain tax benefits related to the conclusion of federal and state income tax audits.

- Definition

This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document.

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Schedule II - Valuation and Qualifying Accounts and Reserves

12 Months Ended

Dec. 31, 2010

Schedule II - Valuation and Qualifying Accounts and Reserves

Schedule II - Valuation and Qualifying Accounts and Reserves

SEI INVESTMENTS COMPANY AND SUBSIDIARIES

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

FOR THE THREE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008


			Additions
Description	Balance at Beginning of Year		Charged to Costs and Expenses			Charged to Other Accounts		(Deductions)			Balance at End of Year

Allowance for doubtful accounts:

2010	$	3,348	$	0		$	0	$	(2,153	)	$	1,195
2009		2,656		692			0		0			3,348
2008		3,032		0			0		(376	)		2,656

Deferred income tax valuation allowance:

2010	$	6,217	$	1,443		$	1,348	$	0		$	9,008
2009		13,897		(32	)		0		(7,648	)		6,217
2008		13,315		0			6,821		(6,239	)		13,897