Revenue (Notes)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Advisory Fee Revenues

Our advisory fees are generated by Westwood Management and Westwood International, which manage client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of AUM and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on AUM on the last day of the preceding quarter, quarterly in arrears based on AUM on the last day of the quarter just ended or are based on a daily or monthly analysis of AUM for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts.

Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including the UCITS Fund and collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers.

Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts.

Arrangements with Performance Based Obligations

A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time, and a limited number of our mutual fund offerings have fees that generate additional revenues if we outperform specified indices over specific periods of time.

The revenue is based on future market performance and is subject to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied.

Trust Fee Revenues

Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of AUM. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of AUM for the quarter, or monthly, based on the month-end value of AUM. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Consolidated Financial Statements contain no deferred advisory fee revenues.

Disaggregated Revenues

Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands):

	Year Ended December 31,
	2019		2018		2017
Advisory Fees:
Institutional	$	37,289	$	59,345	$	69,029
Mutual Funds	19,288		29,792		30,172
Wealth Management	456		230		—
Performance-based	764		2,984		1,411
Trust Fees	25,483		28,953		31,621
Other	799		996		1,552
Total revenues	$	84,079	$	122,300	$	133,785

We have clients in various locations around the world. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands):

Year Ended December 31, 2019	Advisory		Trust		Performance-based		Other		Total
Asia	$	1,639	$	—	$	—	$	—	$	1,639
Australia	591		—		—		—		591
Canada	2,740		—		—		282		3,022
Europe	3,703		—		764		—		4,467
U.S.	48,360		25,483		—		517		74,360
Total	$	57,033	$	25,483	$	764	$	799	$	84,079
Year Ended December 31, 2018	Advisory		Trust		Performance-based		Other		Total
Asia	$	4,305	$	—	$	—	$	—	$	4,305
Australia	3,783		—		—		—		3,783
Canada	6,605		—		—		163		6,768
Europe	4,860		—		—		—		4,860
U.S.	69,814		28,953		2,984		833		102,584
Total	$	89,367	$	28,953	$	2,984	$	996	$	122,300

Year Ended December 31, 2017	Advisory		Trust		Performance-based		Other		Total
Asia	$	6,312	$	—	$	—	$	—	$	6,312
Australia	3,334		—		—		—		3,334
Canada	8,737		—		—		432		9,169
Europe	3,873		—		—		—		3,873
U.S.	76,945		31,621		1,411		1,120		111,097
Total	$	99,201	$	31,621	$	1,411	$	1,552	$	133,785