þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Bermuda (State or Other Jurisdiction of Incorporation or Organization) | 98-0557567 (I.R.S. Employer Identification No.) | |
1555 Peachtree Street, N.E., Suite 1800, Atlanta, GA (Address of Principal Executive Offices) | 30309 (Zip Code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Page | |
TABLE OF CONTENTS | |
EX-31.1 | |
EX-31.2 | |
EX-32.1 | |
EX-32.2 | |
EX-101 INSTANCE DOCUMENT | |
EX-101 SCHEMA DOCUMENT | |
EX-101 CALCULATION LINKBASE DOCUMENT | |
EX-101 LABELS LINKBASE DOCUMENT | |
EX-101 PRESENTATION LINKBASE DOCUMENT | |
EX-101 DEFINITION LINKBASE DOCUMENT |
As of | As of | |||||||||
$ in millions, except per share data | June 30, 2014 | December 31, 2013 | June 30, 2015 | December 31, 2014 | ||||||
ASSETS | ||||||||||
Cash and cash equivalents | 1,196.0 | 1,331.2 | 1,465.7 | 1,514.2 | ||||||
Unsettled fund receivables | 1,228.8 | 932.4 | 1,119.2 | 732.4 | ||||||
Accounts receivable | 517.8 | 500.8 | 527.6 | 545.9 | ||||||
Investments | 919.1 | 839.7 | 959.5 | 885.4 | ||||||
Assets of consolidated sponsored investment products (CSIP) | 326.8 | 108.5 | 321.5 | 305.8 | ||||||
Assets of consolidated investment products (CIP): | ||||||||||
Cash and cash equivalents of CIP | 292.4 | 583.6 | 314.8 | 404.0 | ||||||
Accounts receivable and other assets of CIP | 121.7 | 58.3 | 109.5 | 161.3 | ||||||
Investments of CIP | 4,971.4 | 4,734.7 | 6,185.1 | 5,762.8 | ||||||
Assets held for policyholders | 1,539.9 | 1,416.0 | 3,458.6 | 1,697.9 | ||||||
Prepaid assets | 108.2 | 101.4 | 133.7 | 132.1 | ||||||
Other assets | 144.2 | 182.1 | 83.2 | 92.0 | ||||||
Property and equipment, net | 354.8 | 350.8 | ||||||||
Property, equipment and software, net | 410.3 | 402.6 | ||||||||
Intangible assets, net | 1,258.3 | 1,263.7 | 1,360.5 | 1,246.7 | ||||||
Goodwill | 6,920.1 | 6,867.3 | 6,449.1 | 6,579.4 | ||||||
Total assets | 19,899.5 | 19,270.5 | 22,898.3 | 20,462.5 | ||||||
LIABILITIES | ||||||||||
Accrued compensation and benefits | 463.2 | 676.4 | 474.8 | 667.3 | ||||||
Accounts payable and accrued expenses | 755.6 | 763.1 | 881.3 | 757.3 | ||||||
Liabilities of CIP: | ||||||||||
Debt of CIP | 4,301.5 | 4,181.7 | 5,432.1 | 5,149.6 | ||||||
Other liabilities of CIP | 201.0 | 461.8 | 326.8 | 280.9 | ||||||
Policyholder payables | 1,539.9 | 1,416.0 | 3,458.6 | 1,697.9 | ||||||
Unsettled fund payables | 1,219.6 | 882.0 | 1,106.0 | 730.1 | ||||||
Long-term debt | 1,588.9 | 1,588.6 | 1,597.5 | 1,589.3 | ||||||
Deferred tax liabilities, net | 351.9 | 323.6 | 367.0 | 304.8 | ||||||
Total liabilities | 10,421.6 | 10,293.2 | 13,644.1 | 11,177.2 | ||||||
Commitments and contingencies (See Note 11) | ||||||||||
TEMPORARY EQUITY | ||||||||||
Redeemable noncontrolling interests in CSIP | 155.0 | — | 169.1 | 165.5 | ||||||
PERMANENT EQUITY | ||||||||||
Equity attributable to common shareholders: | ||||||||||
Common shares ($0.20 par value; 1,050.0 million authorized; 490.4 million shares issued as of June 30, 2014 and December 31, 2013) | 98.1 | 98.1 | ||||||||
Equity attributable to Invesco Ltd.: | ||||||||||
Common shares ($0.20 par value; 1,050.0 million authorized; 490.4 million shares issued as of June 30, 2015 and December 31, 2014) | 98.1 | 98.1 | ||||||||
Additional paid-in-capital | 6,068.8 | 6,100.8 | 6,131.0 | 6,133.6 | ||||||
Treasury shares | (1,807.5 | ) | (1,700.4 | ) | (2,024.3 | ) | (1,898.1 | ) | ||
Retained earnings | 3,617.1 | 3,361.9 | 4,218.3 | 3,926.0 | ||||||
Retained earnings appropriated for investors in CIP | 63.3 | 104.3 | — | 17.6 | ||||||
Accumulated other comprehensive income, net of tax | 509.9 | 427.9 | ||||||||
Total equity attributable to common shareholders | 8,549.7 | 8,392.6 | ||||||||
Accumulated other comprehensive income/(loss), net of tax | (94.8 | ) | 48.8 | |||||||
Total equity attributable to Invesco Ltd. | 8,328.3 | 8,326.0 | ||||||||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities | 773.2 | 584.7 | 756.8 | 793.8 | ||||||
Total permanent equity | 9,322.9 | 8,977.3 | 9,085.1 | 9,119.8 | ||||||
Total liabilities, temporary and permanent equity | 19,899.5 | 19,270.5 | 22,898.3 | 20,462.5 |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||
$ in millions, except per share data | 2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||||||||||
Investment management fees | 1,031.9 | 885.5 | 1,997.3 | 1,730.1 | 1,055.7 | 1,031.9 | 2,057.1 | 1,997.3 | ||||||||||||||||||||||
Service and distribution fees | 214.7 | 215.7 | 453.3 | 422.0 | 219.6 | 214.7 | 433.0 | 453.3 | ||||||||||||||||||||||
Performance fees | 5.0 | 6.0 | 36.1 | 42.1 | 6.7 | 5.0 | 53.5 | 36.1 | ||||||||||||||||||||||
Other | 38.3 | 28.3 | 72.7 | 53.5 | 36.1 | 38.3 | 66.1 | 72.7 | ||||||||||||||||||||||
Total operating revenues | 1,289.9 | 1,135.5 | 2,559.4 | 2,247.7 | 1,318.1 | 1,289.9 | 2,609.7 | 2,559.4 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||
Employee compensation | 342.9 | 324.1 | 705.0 | 665.6 | 347.2 | 342.9 | 708.1 | 705.0 | ||||||||||||||||||||||
Third-party distribution, service and advisory | 410.6 | 366.0 | 816.0 | 712.1 | 413.3 | 410.6 | 812.4 | 816.0 | ||||||||||||||||||||||
Marketing | 30.2 | 23.8 | 53.6 | 46.0 | 29.7 | 30.2 | 56.4 | 53.6 | ||||||||||||||||||||||
Property, office and technology | 75.3 | 68.6 | 188.0 | 135.1 | 74.8 | 75.3 | 151.7 | 188.0 | ||||||||||||||||||||||
General and administrative | 76.1 | 77.3 | 197.7 | 144.8 | 89.1 | 76.1 | 179.0 | 197.7 | ||||||||||||||||||||||
Transaction and integration | — | 1.8 | — | 3.2 | ||||||||||||||||||||||||||
Total operating expenses | 935.1 | 861.6 | 1,960.3 | 1,706.8 | 954.1 | 935.1 | 1,907.6 | 1,960.3 | ||||||||||||||||||||||
Operating income | 354.8 | 273.9 | 599.1 | 540.9 | 364.0 | 354.8 | 702.1 | 599.1 | ||||||||||||||||||||||
Other income/(expense): | ||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 5.5 | 6.9 | 15.5 | 15.0 | 12.0 | 5.5 | 23.8 | 15.5 | ||||||||||||||||||||||
Interest and dividend income | 3.1 | 2.1 | 6.0 | 4.3 | 2.6 | 3.1 | 5.1 | 6.0 | ||||||||||||||||||||||
Interest expense | (18.2 | ) | (10.0 | ) | (36.9 | ) | (19.7 | ) | (19.6 | ) | (18.2 | ) | (38.3 | ) | (36.9 | ) | ||||||||||||||
Other gains and losses, net | 16.2 | 0.4 | 22.8 | 18.1 | (8.8 | ) | 16.2 | (6.1 | ) | 22.8 | ||||||||||||||||||||
Other income/(loss) of CSIP, net | 7.7 | — | 15.9 | — | ||||||||||||||||||||||||||
Other income/(expense) of CSIP, net | 5.1 | 7.7 | 14.5 | 15.9 | ||||||||||||||||||||||||||
CIP: | ||||||||||||||||||||||||||||||
Interest and dividend income of CIP | 48.0 | 50.7 | 96.3 | 101.0 | 65.1 | 48.0 | 125.3 | 96.3 | ||||||||||||||||||||||
Interest expense of CIP | (30.3 | ) | (30.6 | ) | (60.6 | ) | (63.3 | ) | (47.3 | ) | (30.3 | ) | (92.4 | ) | (60.6 | ) | ||||||||||||||
Other gains/(losses) of CIP, net | 36.8 | (1.6 | ) | 63.3 | (22.7 | ) | (19.7 | ) | 36.8 | 4.7 | 63.3 | |||||||||||||||||||
Income from continuing operations before income taxes | 423.6 | 291.8 | 721.4 | 573.6 | 353.4 | 423.6 | 738.7 | 721.4 | ||||||||||||||||||||||
Income tax provision | (107.0 | ) | (83.5 | ) | (196.0 | ) | (169.8 | ) | (109.4 | ) | (107.0 | ) | (210.7 | ) | (196.0 | ) | ||||||||||||||
Income from continuing operations, net of taxes | 316.6 | 208.3 | 525.4 | 403.8 | 244.0 | 316.6 | 528.0 | 525.4 | ||||||||||||||||||||||
Income/(loss) from discontinued operations, net of taxes | 0.2 | (4.6 | ) | (1.8 | ) | (0.5 | ) | — | 0.2 | — | (1.8 | ) | ||||||||||||||||||
Net income | 316.8 | 203.7 | 523.6 | 403.3 | 244.0 | 316.8 | 528.0 | 523.6 | ||||||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (42.3 | ) | (1.1 | ) | (61.3 | ) | 21.5 | 13.3 | (42.3 | ) | (11.1 | ) | (61.3 | ) | ||||||||||||||||
Net income attributable to common shareholders | 274.5 | 202.6 | 462.3 | 424.8 | ||||||||||||||||||||||||||
Net income attributable to Invesco Ltd. | 257.3 | 274.5 | 516.9 | 462.3 | ||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||
Basic: | ||||||||||||||||||||||||||||||
Earnings per share from continuing operations | $0.63 | $0.46 | $1.06 | $0.95 | $0.60 | $0.63 | $1.20 | $1.06 | ||||||||||||||||||||||
Earnings per share from discontinued operations | $— | ($0.01 | ) | $— | $— | $— | $— | $— | $— | |||||||||||||||||||||
Basic earnings per share | $0.63 | $0.45 | $1.06 | $0.95 | $0.60 | $0.63 | $1.20 | $1.06 | ||||||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||||||
Earnings per share from continuing operations | $0.63 | $0.46 | $1.06 | $0.95 | $0.60 | $0.63 | $1.20 | $1.06 | ||||||||||||||||||||||
Earnings per share from discontinued operations | $— | ($0.01 | ) | $— | $— | $— | $— | $— | $— | |||||||||||||||||||||
Diluted earnings per share | $0.63 | $0.45 | $1.06 | $0.94 | $0.60 | $0.63 | $1.20 | $1.06 | ||||||||||||||||||||||
Dividends declared per share | $0.2500 | $0.2250 | $0.4750 | $0.3975 | $0.2700 | $0.2500 | $0.5200 | $0.4750 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
$ in millions | 2014 | 2013 | 2014 | 2013 | |||||||
Net income | 316.8 | 203.7 | 523.6 | 403.3 | |||||||
Other comprehensive income/(loss), before tax: | |||||||||||
Currency translation differences on investments in foreign subsidiaries | 130.5 | (94.3 | ) | 77.3 | (303.9 | ) | |||||
Actuarial (loss)/gain related to employee benefit plans | (2.2 | ) | 0.3 | (2.6 | ) | 6.8 | |||||
Reclassification of amortization of prior service cost/(credit) into employee compensation expense | (0.4 | ) | (0.5 | ) | (0.9 | ) | (1.0 | ) | |||
Reclassification of amortization of actuarial (gain)/loss into employee compensation expense | 0.6 | 0.7 | 1.2 | 1.4 | |||||||
Share of other comprehensive income/(loss) of equity method investments | 3.2 | (1.3 | ) | 7.2 | (1.6 | ) | |||||
Unrealized (losses)/gains on available-for-sale investments | 6.8 | (0.3 | ) | 11.0 | 4.0 | ||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net | (8.1 | ) | — | (10.8 | ) | (1.4 | ) | ||||
Other comprehensive income/(loss), before tax | 130.4 | (95.4 | ) | 82.4 | (295.7 | ) | |||||
Income tax related to items of other comprehensive income/(loss): | |||||||||||
Tax benefit/(expense) on foreign currency translation adjustments | — | (0.3 | ) | — | (1.1 | ) | |||||
Tax on actuarial (loss)/gain related to employee benefit plans | 0.4 | (0.1 | ) | 0.5 | (1.5 | ) | |||||
Reclassification of tax on amortization of prior service cost/(credit) into income tax provision | 0.1 | 0.1 | 0.2 | 0.2 | |||||||
Reclassification of tax on amortization of actuarial (gain)/loss into income tax provision | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.3 | ) | |||
Tax on net unrealized (losses)/gains on available-for-sale investments | 2.0 | (0.8 | ) | 2.2 | (0.6 | ) | |||||
Reclassification of tax on net (gains)/losses realized on available-for-sale investments included in income tax provision | (2.7 | ) | — | (3.4 | ) | (0.3 | ) | ||||
Total income tax benefit/(expense) related to items of other comprehensive income | (0.3 | ) | (1.2 | ) | (0.7 | ) | (3.6 | ) | |||
Other comprehensive income/(loss), net of tax | 130.1 | (96.6 | ) | 81.7 | (299.3 | ) | |||||
Total comprehensive income/(loss) | 446.9 | 107.1 | 605.3 | 104.0 | |||||||
Comprehensive loss/(income) attributable to noncontrolling interests in consolidated entities | (42.4 | ) | 4.9 | (61.0 | ) | 34.2 | |||||
Comprehensive income attributable to common shareholders | 404.5 | 112.0 | 544.3 | 138.2 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
$ in millions | 2015 | 2014 | 2015 | 2014 | |||||||
Net income | 244.0 | 316.8 | 528.0 | 523.6 | |||||||
Other comprehensive income/(loss), net of tax: | |||||||||||
Currency translation differences on investments in foreign subsidiaries, net of tax | 162.6 | 130.5 | (140.3 | ) | 77.3 | ||||||
Actuarial (loss)/gain related to employee benefit plans, net of tax | — | (1.8 | ) | — | (2.1 | ) | |||||
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax | (1.2 | ) | (0.3 | ) | (3.0 | ) | (0.7 | ) | |||
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax | 0.6 | 0.5 | 1.1 | 1.0 | |||||||
Share of other comprehensive income/(loss) of equity method investments, net of tax | 0.2 | 3.2 | 1.3 | 7.2 | |||||||
Unrealized (losses)/gains on available-for-sale investments, net of tax | (3.0 | ) | 8.8 | (1.8 | ) | 13.2 | |||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax | (0.4 | ) | (10.8 | ) | (0.9 | ) | (14.2 | ) | |||
Other comprehensive income/(loss), net of tax | 158.8 | 130.1 | (143.6 | ) | 81.7 | ||||||
Total comprehensive income/(loss) | 402.8 | 446.9 | 384.4 | 605.3 | |||||||
Comprehensive loss/(income) attributable to noncontrolling interests in consolidated entities | 13.3 | (42.4 | ) | (11.1 | ) | (61.0 | ) | ||||
Comprehensive income/(loss) attributable to Invesco Ltd. | 416.1 | 404.5 | 373.3 | 544.3 |
Six months ended June 30, | Six months ended June 30, | |||||||||
$ in millions | 2014 | 2013 | 2015 | 2014 | ||||||
Operating activities: | ||||||||||
Net income | 523.6 | 403.3 | 528.0 | 523.6 | ||||||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | ||||||||||
Amortization and depreciation | 45.8 | 44.2 | 46.0 | 45.8 | ||||||
Share-based compensation expense | 70.0 | 69.4 | 76.7 | 70.0 | ||||||
(Gain)/loss on disposal of business, property and equipment, net | — | 0.5 | ||||||||
Other (gains)/losses, net | (22.8 | ) | (18.1 | ) | 6.1 | (22.8 | ) | |||
Other (gains)/losses of CSIP, net | (11.5 | ) | — | (8.2 | ) | (11.5 | ) | |||
Other (gains)/losses of CIP, net | (63.3 | ) | 22.7 | (4.7 | ) | (63.3 | ) | |||
Equity in earnings of unconsolidated affiliates | (15.5 | ) | (15.0 | ) | (23.8 | ) | (15.5 | ) | ||
Dividends from unconsolidated affiliates | 15.4 | 1.9 | 1.4 | 15.4 | ||||||
Changes in operating assets and liabilities: | ||||||||||
(Increase)/decrease in cash held by CIP | 260.1 | (76.0 | ) | 88.3 | 260.1 | |||||
(Increase)/decrease in cash held by CSIP | (1.0 | ) | — | (4.9 | ) | (1.0 | ) | |||
(Purchase)/sale of trading investments, net | (10.4 | ) | 0.6 | (55.1 | ) | (10.4 | ) | |||
(Increase)/decrease in receivables | (402.7 | ) | (711.9 | ) | (2,049.9 | ) | (402.7 | ) | ||
Increase/(decrease) in payables | 162.6 | 534.0 | 1,858.6 | 162.6 | ||||||
Net cash provided by/(used in) operating activities | 550.3 | 255.6 | 458.5 | 550.3 | ||||||
Investing activities: | ||||||||||
Purchase of property and equipment | (49.8 | ) | (40.3 | ) | ||||||
Purchase of property, equipment and software | (50.4 | ) | (49.8 | ) | ||||||
Purchase of available-for-sale investments | (112.5 | ) | (25.2 | ) | (35.6 | ) | (112.5 | ) | ||
Sale of available-for-sale investments | 75.1 | 23.0 | 18.0 | 75.1 | ||||||
Purchase of investments by CIP | (2,848.8 | ) | (2,504.3 | ) | (1,927.1 | ) | (2,848.8 | ) | ||
Sale of investments by CIP | 2,108.5 | 2,584.6 | 1,591.1 | 2,108.5 | ||||||
Purchase of investments by CSIP | (476.1 | ) | — | (273.2 | ) | (476.1 | ) | |||
Sale of investments by CSIP | 274.3 | — | 274.7 | 274.3 | ||||||
Purchase of other investments | (67.5 | ) | (164.6 | ) | (89.4 | ) | (67.5 | ) | ||
Sale of other investments | 40.3 | 39.7 | 59.7 | 40.3 | ||||||
Returns of capital and distributions from unconsolidated partnership investments | 25.9 | 9.9 | 34.4 | 25.9 | ||||||
Acquisition earn-out payments | — | (1.2 | ) | |||||||
Sale of business | 60.8 | — | — | 60.8 | ||||||
Net cash provided by/(used in) investing activities | (969.8 | ) | (78.4 | ) | (397.8 | ) | (969.8 | ) | ||
Financing activities: | ||||||||||
Proceeds from exercises of share options | 5.2 | 10.8 | 1.2 | 5.2 | ||||||
Purchases of treasury shares | (169.6 | ) | (120.5 | ) | (158.1 | ) | (169.6 | ) | ||
Dividends paid | (207.1 | ) | (178.4 | ) | (224.6 | ) | (207.1 | ) | ||
Excess tax benefits from share-based compensation | 17.6 | 16.7 | 18.3 | 17.6 | ||||||
Repayment on unsettled fund account | (35.7 | ) | — | |||||||
Repayment of unsettled fund account | — | (35.7 | ) | |||||||
Third-party capital invested into CIP | 155.8 | 34.5 | 17.9 | 155.8 | ||||||
Third-party capital distributed by CIP | (68.0 | ) | (128.1 | ) | (64.1 | ) | (68.0 | ) | ||
Third-party capital invested into CSIP | 152.5 | — | 1.7 | 152.5 | ||||||
Third-party capital distributed by CSIP | (1.4 | ) | — | — | (1.4 | ) | ||||
Borrowings of debt by CIP | 715.0 | 409.4 | 945.9 | 715.0 | ||||||
Repayments of debt by CIP | (295.5 | ) | (364.7 | ) | (650.1 | ) | (295.5 | ) | ||
Net borrowings/(repayments) under credit facility | — | 259.5 | 7.9 | — | ||||||
Net cash provided by/(used in) financing activities | 268.8 | (60.8 | ) | (104.0 | ) | 268.8 | ||||
Increase/(decrease) in cash and cash equivalents | (150.7 | ) | 116.4 | (43.3 | ) | (150.7 | ) | |||
Foreign exchange movement on cash and cash equivalents | 15.5 | (35.7 | ) | (5.2 | ) | 15.5 | ||||
Cash and cash equivalents, beginning of period | 1,331.2 | 835.5 | 1,514.2 | 1,331.2 | ||||||
Cash and cash equivalents, end of period | 1,196.0 | 916.2 | 1,465.7 | 1,196.0 | ||||||
Supplemental Cash Flow Information: | ||||||||||
Interest paid | (23.6 | ) | (16.4 | ) | (33.8 | ) | (23.6 | ) | ||
Interest received | 3.2 | 2.0 | 4.4 | 3.2 | ||||||
Taxes paid | (155.1 | ) | (141.9 | ) | (140.1 | ) | (155.1 | ) |
Equity Attributable to Common Shareholders | Equity Attributable to Invesco Ltd. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions | Common Shares | Additional Paid-in-Capital | Treasury Shares | Retained Earnings | Retained Earnings Appropriated for Investors in CIP | Accumulated Other Comprehensive Income | Total Equity Attributable to Common Shareholders | Nonredeemable Noncontrolling Interests in Consolidated Entities | Total Permanent Equity | Redeemable Noncontrolling Interests in CSIP/Temporary Equity | Common Shares | Additional Paid-in-Capital | Treasury Shares | Retained Earnings | Retained Earnings Appropriated for Investors in CIP | Accumulated Other Comprehensive Income/(Loss) | Total Equity Attributable to Invesco Ltd. | Nonredeemable Noncontrolling Interests in Consolidated Entities | Total Permanent Equity | Redeemable Noncontrolling Interests in CSIP/Temporary Equity | ||||||||||||||||||||||||||||||||||||||
January 1, 2014 | 98.1 | 6,100.8 | (1,700.4 | ) | 3,361.9 | 104.3 | 427.9 | 8,392.6 | 584.7 | 8,977.3 | — | |||||||||||||||||||||||||||||||||||||||||||||||
January 1, 2015 | 98.1 | 6,133.6 | (1,898.1 | ) | 3,926.0 | 17.6 | 48.8 | 8,326.0 | 793.8 | 9,119.8 | 165.5 | |||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for adoption of ASU 2014-13 | — | — | — | — | (17.6 | ) | — | (17.6 | ) | — | (17.6 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
January 1, 2015, as adjusted | 98.1 | 6,133.6 | (1,898.1 | ) | 3,926.0 | — | 48.8 | 8,308.4 | 793.8 | 9,102.2 | 165.5 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 462.3 | — | — | 462.3 | 56.3 | 518.6 | 5.0 | — | — | — | 516.9 | — | — | 516.9 | 7.5 | 524.4 | 3.6 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | — | — | — | — | — | 82.0 | 82.0 | (0.3 | ) | 81.7 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net income/(loss) reclassified to appropriated retained earnings | — | — | — | — | (40.0 | ) | — | (40.0 | ) | 40.0 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation of CIP | — | — | — | — | (1.0 | ) | — | (1.0 | ) | — | (1.0 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | — | — | — | — | — | (143.6 | ) | (143.6 | ) | — | (143.6 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Change in noncontrolling interests in consolidated entities, net | — | — | — | — | — | — | — | 92.5 | 92.5 | 150.0 | — | — | — | — | — | — | — | (44.5 | ) | (44.5 | ) | — | ||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | (207.1 | ) | — | — | (207.1 | ) | — | (207.1 | ) | — | — | — | — | (224.6 | ) | — | — | (224.6 | ) | — | (224.6 | ) | — | ||||||||||||||||||||||||||||||||
Employee share plans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 70.0 | — | — | — | — | 70.0 | — | 70.0 | — | — | 76.7 | — | — | — | — | 76.7 | — | 76.7 | — | ||||||||||||||||||||||||||||||||||||||
Vested shares | — | (115.7 | ) | 115.7 | — | — | — | — | — | — | — | — | (97.5 | ) | 97.5 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Exercise of options | — | (3.9 | ) | 9.1 | — | — | — | 5.2 | — | 5.2 | — | — | (0.1 | ) | 1.3 | — | — | — | 1.2 | — | 1.2 | — | ||||||||||||||||||||||||||||||||||||
Settlement of ESPP purchases | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax impact of share-based payment | — | 17.6 | — | — | — | — | 17.6 | — | 17.6 | — | — | 18.3 | — | — | — | — | 18.3 | — | 18.3 | — | ||||||||||||||||||||||||||||||||||||||
Purchase of shares | — | — | (231.9 | ) | — | — | — | (231.9 | ) | — | (231.9 | ) | — | — | — | (225.0 | ) | — | — | — | (225.0 | ) | — | (225.0 | ) | — | ||||||||||||||||||||||||||||||||
June 30, 2014 | 98.1 | 6,068.8 | (1,807.5 | ) | 3,617.1 | 63.3 | 509.9 | 8,549.7 | 773.2 | 9,322.9 | 155.0 | |||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2015 | 98.1 | 6,131.0 | (2,024.3 | ) | 4,218.3 | — | (94.8 | ) | 8,328.3 | 756.8 | 9,085.1 | 169.1 |
Equity Attributable to Common Shareholders | Equity Attributable to Invesco Ltd. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions | Common Shares | Additional Paid-in-Capital | Treasury Shares | Retained Earnings | Retained Earnings Appropriated for Investors in CIP | Accumulated Other Comprehensive Income | Total Equity Attributable to Common Shareholders | Nonredeemable Noncontrolling Interests in Consolidated Entities | Total Permanent Equity | Common Shares | Additional Paid-in-Capital | Treasury Shares | Retained Earnings | Retained Earnings Appropriated for Investors in CIP | Accumulated Other Comprehensive Income | Total Equity Attributable to Invesco Ltd. | Nonredeemable Noncontrolling Interests in Consolidated Entities | Total Permanent Equity | Redeemable Noncontrolling Interests in CSIP/Temporary Equity | |||||||||||||||||||||||||||||||||||
January 1, 2013 | 98.1 | 6,141.0 | (1,382.9 | ) | 2,801.3 | 128.8 | 530.5 | 8,316.8 | 732.2 | 9,049.0 | ||||||||||||||||||||||||||||||||||||||||||||
January 1, 2014 | 98.1 | 6,100.8 | (1,700.4 | ) | 3,361.9 | 104.3 | 427.9 | 8,392.6 | 584.7 | 8,977.3 | — | |||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 424.8 | — | — | 424.8 | (21.5 | ) | 403.3 | — | — | — | 462.3 | — | — | 462.3 | 56.3 | 518.6 | 5.0 | ||||||||||||||||||||||||||||||||||
Other comprehensive income/(loss) | — | — | — | — | — | (286.6 | ) | (286.6 | ) | (12.7 | ) | (299.3 | ) | — | — | — | — | — | 82.0 | 82.0 | (0.3 | ) | 81.7 | — | ||||||||||||||||||||||||||||||
Net income/(loss) reclassified to appropriated retained earnings | — | — | — | — | (30.8 | ) | — | (30.8 | ) | 30.8 | — | — | — | — | — | (40.0 | ) | — | (40.0 | ) | 40.0 | — | — | |||||||||||||||||||||||||||||||
Deconsolidation of CIP | — | — | — | — | — | — | — | (27.7 | ) | (27.7 | ) | — | — | — | — | (1.0 | ) | — | (1.0 | ) | — | (1.0 | ) | — | ||||||||||||||||||||||||||||||
Change in noncontrolling interests in consolidated entities, net | — | — | — | — | — | — | — | (111.6 | ) | (111.6 | ) | — | — | — | — | — | — | — | 92.5 | 92.5 | 150.0 | |||||||||||||||||||||||||||||||||
Dividends | — | — | — | (178.4 | ) | — | — | (178.4 | ) | — | (178.4 | ) | — | — | — | (207.1 | ) | — | — | (207.1 | ) | — | (207.1 | ) | — | |||||||||||||||||||||||||||||
Employee share plans: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 69.4 | — | — | — | — | 69.4 | — | 69.4 | — | 70.0 | — | — | — | — | 70.0 | — | 70.0 | — | |||||||||||||||||||||||||||||||||||
Vested shares | — | (167.7 | ) | 167.7 | — | — | — | — | — | — | — | (115.7 | ) | 115.7 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Exercise of options | — | (13.2 | ) | 24.0 | — | — | — | 10.8 | — | 10.8 | — | (3.9 | ) | 9.1 | — | — | — | 5.2 | — | 5.2 | — | |||||||||||||||||||||||||||||||||
Tax impact of share-based payment | — | 16.7 | — | — | — | — | 16.7 | — | 16.7 | — | 17.6 | — | — | — | — | 17.6 | — | 17.6 | — | |||||||||||||||||||||||||||||||||||
Purchase of shares | — | — | (178.2 | ) | — | — | — | (178.2 | ) | — | (178.2 | ) | — | — | (231.9 | ) | — | — | — | (231.9 | ) | — | (231.9 | ) | — | |||||||||||||||||||||||||||||
June 30, 2013 | 98.1 | 6,046.2 | (1,369.4 | ) | 3,047.7 | 98.0 | 243.9 | 8,164.5 | 589.5 | 8,754.0 | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2014 | 98.1 | 6,068.8 | (1,807.5 | ) | 3,617.1 | 63.3 | 509.9 | 8,549.7 | 773.2 | 9,322.9 | 155.0 |
June 30, 2014 | December 31, 2013 | June 30, 2015 | December 31, 2014 | |||||||||||||||||||||||
$ in millions | Footnote Reference | Carrying Value | Fair Value | Carrying Value | Fair Value | Footnote Reference | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||
Cash and cash equivalents | 1,196.0 | 1,196.0 | 1,331.2 | 1,331.2 | 1,465.7 | 1,465.7 | 1,514.2 | 1,514.2 | ||||||||||||||||||
Available-for-sale investments | 3 | 293.7 | 293.7 | 244.1 | 244.1 | 3 | 270.2 | 270.2 | 255.9 | 255.9 | ||||||||||||||||
Trading investments | 3 | 278.2 | 278.2 | 253.0 | 253.0 | 3 | 316.6 | 316.6 | 263.2 | 263.2 | ||||||||||||||||
Foreign time deposits * | 3 | 28.4 | 28.4 | 28.8 | 28.8 | 3 | 29.0 | 29.0 | 29.6 | 29.6 | ||||||||||||||||
Assets held for policyholders | 1,539.9 | 1,539.9 | 1,416.0 | 1,416.0 | 3,458.6 | 3,458.6 | 1,697.9 | 1,697.9 | ||||||||||||||||||
Policyholder payables * | (1,539.9 | ) | (1,539.9 | ) | (1,416.0 | ) | (1,416.0 | ) | (3,458.6 | ) | (3,458.6 | ) | (1,697.9 | ) | (1,697.9 | ) | ||||||||||
Put option contracts | 1.4 | 1.4 | — | — | ||||||||||||||||||||||
UIT-related financial instruments sold, not yet purchased | (1.9 | ) | (1.9 | ) | (1.7 | ) | (1.7 | ) | (1.4 | ) | (1.4 | ) | (1.4 | ) | (1.4 | ) | ||||||||||
Note payable | (0.3 | ) | (0.3 | ) | (0.3 | ) | (0.3 | ) | ||||||||||||||||||
Contingent consideration liability | (117.8 | ) | (117.8 | ) | — | — | ||||||||||||||||||||
Long-term debt * | 4 | (1,588.9 | ) | (1,666.4 | ) | (1,588.6 | ) | (1,544.7 | ) | 4 | (1,597.5 | ) | (1,642.4 | ) | (1,589.3 | ) | (1,695.8 | ) |
* | These financial instruments are not measured at fair value on a recurring basis. See the indicated footnotes or most recently filed Form 10-K for additional information about the carrying and fair values of these financial instruments. Foreign time deposits are measured at cost plus accrued interest, which approximates fair value, and are accordingly classified as Level 2 securities. |
As of June 30, 2014 | As of June 30, 2015 | |||||||||||||||||||||
$ in millions | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||
Money market funds | 408.5 | 408.5 | — | — | 253.5 | 253.5 | — | — | ||||||||||||||
Investments:* | ||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||
Seed money | 283.3 | 283.3 | — | — | 262.6 | 262.6 | — | — | ||||||||||||||
CLOs | 4.1 | — | — | 4.1 | 1.3 | — | — | 1.3 | ||||||||||||||
Other debt securities | 6.3 | — | — | 6.3 | 6.3 | — | — | 6.3 | ||||||||||||||
Trading investments: | ||||||||||||||||||||||
Investments related to deferred compensation plans | 246.9 | 246.9 | — | — | 176.3 | 176.3 | — | — | ||||||||||||||
Seed money | 97.1 | 97.1 | — | — | ||||||||||||||||||
Other equity securities | 25.8 | 25.8 | — | — | 36.2 | 36.2 | — | — | ||||||||||||||
UIT-related equity and debt securities: | ||||||||||||||||||||||
Corporate equities | 1.9 | 1.9 | — | — | 1.4 | 1.4 | — | — | ||||||||||||||
Corporate bonds | 0.5 | — | 0.5 | — | ||||||||||||||||||
UITs | 0.7 | 0.7 | — | — | 2.4 | 2.4 | — | — | ||||||||||||||
Municipal securities | 2.9 | — | 2.9 | — | 2.7 | — | 2.7 | — | ||||||||||||||
Assets held for policyholders | 1,539.9 | 1,539.9 | — | — | 3,458.6 | 3,458.6 | — | — | ||||||||||||||
Put option contracts | 1.4 | — | 1.4 | — | ||||||||||||||||||
Total | 2,520.3 | 2,507.0 | 2.9 | 10.4 | 4,300.3 | 4,288.1 | 4.6 | 7.6 | ||||||||||||||
Liabilities: | ||||||||||||||||||||||
UIT-related financial instruments sold, not yet purchased: | ||||||||||||||||||||||
Corporate equities | (1.9 | ) | (1.9 | ) | — | — | (1.3 | ) | (1.3 | ) | — | — | ||||||||||
Note payable | (0.3 | ) | — | — | (0.3 | ) | ||||||||||||||||
UITs | (0.1 | ) | (0.1 | ) | — | — | ||||||||||||||||
Contingent consideration liability | (117.8 | ) | — | — | (117.8 | ) | ||||||||||||||||
Total | (2.2 | ) | (1.9 | ) | — | (0.3 | ) | (119.2 | ) | (1.4 | ) | — | (117.8 | ) |
* | Foreign time deposits of |
As of December 31, 2013 | As of December 31, 2014 | |||||||||||||||||||||
$ in millions | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||
Money market funds | 447.8 | 447.8 | — | — | 474.9 | 474.9 | — | — | ||||||||||||||
Investments:* | ||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||
Seed money | 233.8 | 233.8 | — | — | 246.2 | 246.2 | — | — | ||||||||||||||
CLOs | 4.0 | — | — | 4.0 | 3.4 | — | — | 3.4 | ||||||||||||||
Other debt securities | 6.3 | — | — | 6.3 | 6.3 | — | — | 6.3 | ||||||||||||||
Trading investments: | ||||||||||||||||||||||
Investments related to deferred compensation plans | 249.7 | 249.7 | — | — | 162.6 | 162.6 | — | — | ||||||||||||||
Seed Money | 68.2 | 68.2 | — | — | ||||||||||||||||||
Other equity securities | 29.0 | 29.0 | — | — | ||||||||||||||||||
UIT-related equity and debt securities: | ||||||||||||||||||||||
Corporate equities | 2.1 | 2.1 | — | — | 1.4 | 1.4 | — | — | ||||||||||||||
UITs | 1.2 | 1.2 | — | — | 1.6 | 1.6 | — | — | ||||||||||||||
Municipal securities | 0.4 | — | 0.4 | — | ||||||||||||||||||
Assets held for policyholders | 1,416.0 | 1,416.0 | — | — | 1,697.9 | 1,697.9 | — | — | ||||||||||||||
Total | 2,360.9 | 2,350.6 | — | 10.3 | 2,691.9 | 2,681.8 | 0.4 | 9.7 | ||||||||||||||
Liabilities: | ||||||||||||||||||||||
UIT-related financial instruments sold, not yet purchased: | ||||||||||||||||||||||
Corporate equities | (1.7 | ) | (1.7 | ) | — | — | (1.4 | ) | (1.4 | ) | — | — | ||||||||||
Note payable | (0.3 | ) | — | — | (0.3 | ) | ||||||||||||||||
Total | (2.0 | ) | (1.7 | ) | — | (0.3 | ) | (1.4 | ) | (1.4 | ) | — | — |
* | Foreign time deposits of |
Three months ended June 30, 2014 | Six months ended June 30, 2014 | Three months ended June 30, 2015 | Six months ended June 30, 2015 | |||||||||||||||||||||||||||||||
$ in millions | CLOs | Other Debt Securities | Note Payable | CLOs | Other Debt Securities | Note Payable | Contingent Consideration Liability | CLOs | Other Debt Securities | Contingent Consideration Liability | CLOs | Other Debt Securities | ||||||||||||||||||||||
Beginning balance | 4.3 | 6.3 | (0.3 | ) | 4.0 | 6.3 | (0.3 | ) | (119.3 | ) | 2.5 | 6.3 | — | 3.4 | 6.3 | |||||||||||||||||||
Acquisition | — | — | — | (119.3 | ) | — | — | |||||||||||||||||||||||||||
Returns of capital | — | — | — | (0.2 | ) | — | — | — | — | — | — | (0.1 | ) | — | ||||||||||||||||||||
Net unrealized gains and losses included in other gains and losses* | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Net unrealized gains and losses included in other gains and losses | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)* | (0.2 | ) | — | — | 0.3 | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Disposition/settlements | 1.5 | (1.2 | ) | — | 1.5 | (2.0 | ) | — | ||||||||||||||||||||||||||
Ending balance | 4.1 | 6.3 | (0.3 | ) | 4.1 | 6.3 | (0.3 | ) | (117.8 | ) | 1.3 | 6.3 | (117.8 | ) | 1.3 | 6.3 |
Three months ended June 30, 2013 | Six months ended June 30, 2013 | ||||||||||||||||
$ in millions | CLOs | Other Debt Securities | Note Payable | CLOs | Other Debt Securities | Note Payable | |||||||||||
Beginning balance | 2.4 | 6.3 | (2.4 | ) | 2.4 | 6.3 | (3.4 | ) | |||||||||
Settlements | (0.1 | ) | — | 1.0 | (0.1 | ) | — | 1.7 | |||||||||
Net unrealized gains and losses included in other gains and losses* | — | — | — | — | — | 0.1 | |||||||||||
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)* | 0.1 | — | — | 0.1 | — | — | |||||||||||
Foreign exchange gains/(losses) | — | — | 0.2 | — | — | 0.4 | |||||||||||
Ending balance | 2.4 | 6.3 | (1.2 | ) | 2.4 | 6.3 | (1.2 | ) |
Three months ended June 30, 2014 | Six months ended June 30, 2014 | ||||||||||
$ in millions | CLOs | Other Debt Securities | CLOs | Other Debt Securities | |||||||
Beginning balance | 4.3 | 6.3 | 4.0 | 6.3 | |||||||
Returns of capital | — | — | (0.2 | ) | — | ||||||
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)* | (0.2 | ) | — | 0.3 | — | ||||||
Ending balance | 4.1 | 6.3 | 4.1 | 6.3 |
* | These unrealized gains and losses are attributable to balances still held at the respective period ends. |
$ in millions | June 30, 2014 | December 31, 2013 | June 30, 2015 | December 31, 2014 | ||||||
Available-for-sale investments: | ||||||||||
Seed money | 283.3 | 233.8 | 262.6 | 246.2 | ||||||
CLOs | 4.1 | 4.0 | 1.3 | 3.4 | ||||||
Other debt securities | 6.3 | 6.3 | 6.3 | 6.3 | ||||||
Trading investments: | ||||||||||
Investments related to deferred compensation plans | 246.9 | 249.7 | 176.3 | 162.6 | ||||||
Seed money | 97.1 | 68.2 | ||||||||
Other equity securities | 25.8 | — | 36.2 | 29.0 | ||||||
UIT-related equity and debt securities | 5.5 | 3.3 | 7.0 | 3.4 | ||||||
Equity method investments | 313.2 | 308.2 | 335.1 | 332.1 | ||||||
Foreign time deposits | 28.4 | 28.8 | 29.0 | 29.6 | ||||||
Other | 5.6 | 5.6 | 8.6 | 4.6 | ||||||
Total investments | 919.1 | 839.7 | 959.5 | 885.4 |
For the three months ended June 30, 2014 | For the six months ended June 30, 2014 | For the three months ended June 30, 2015 | For the six months ended June 30, 2015 | |||||||||||||||||||||||||||||||
$ in millions | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | ||||||||||||||||||||||
Seed money | 64.7 | 8.2 | (0.1 | ) | 74.9 | 11.0 | (0.2 | ) | 6.8 | 0.4 | — | 15.7 | 1.0 | — | ||||||||||||||||||||
CLOs | — | — | — | 0.2 | — | — | 1.4 | 0.1 | — | 2.3 | 0.2 | — |
For the three months ended June 30, 2013 | For the six months ended June 30, 2013 | For the three months ended June 30, 2014 | For the six months ended June 30, 2014 | |||||||||||||||||||||||||||||||
$ in millions | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | ||||||||||||||||||||||
Seed money | — | — | — | 22.9 | 1.7 | (0.3 | ) | 64.7 | 8.2 | (0.1 | ) | 74.9 | 11.0 | (0.2 | ) | |||||||||||||||||||
CLOs | — | — | — | 0.1 | — | — | — | — | — | 0.2 | — | — |
June 30, 2014 | December 31, 2013 | June 30, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||
$ in millions | Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Fair Value | Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Fair Value | Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Fair Value | Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Fair Value | ||||||||||||||||||||||||||||||
Seed money | 265.3 | 18.7 | (0.7 | ) | 283.3 | 215.7 | 19.0 | (0.9 | ) | 233.8 | 258.6 | 10.0 | (6.0 | ) | 262.6 | 237.7 | 12.8 | (4.3 | ) | 246.2 | ||||||||||||||||||||||||||
CLOs | 3.6 | 0.5 | — | 4.1 | 3.8 | 0.2 | — | 4.0 | 1.3 | — | — | 1.3 | 3.5 | — | (0.1 | ) | 3.4 | |||||||||||||||||||||||||||||
Other debt securities | 6.3 | — | — | 6.3 | 6.3 | — | — | 6.3 | 6.3 | — | — | 6.3 | 6.3 | — | — | 6.3 | ||||||||||||||||||||||||||||||
275.2 | 19.2 | (0.7 | ) | 293.7 | 225.8 | 19.2 | (0.9 | ) | 244.1 | 266.2 | 10.0 | (6.0 | ) | 270.2 | 247.5 | 12.8 | (4.4 | ) | 255.9 |
June 30, 2014 | December 31, 2013 | June 30, 2015 | December 31, 2014 | |||||||||||||||||||
$ in millions | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||
Less than 12 months | 13.9 | (0.3 | ) | 69.0 | (0.8 | ) | 119.8 | (4.7 | ) | 123.9 | (3.5 | ) | ||||||||||
12 months or greater | 3.2 | (0.4 | ) | 0.2 | (0.1 | ) | 4.3 | (1.3 | ) | 3.6 | (0.8 | ) | ||||||||||
Total | 17.1 | (0.7 | ) | 69.2 | (0.9 | ) | 124.1 | (6.0 | ) | 127.5 | (4.3 | ) |
June 30, 2014 | December 31, 2013 | June 30, 2015 | December 31, 2014 | |||||||||||||||||||
$ in millions | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||
Unsecured Senior Notes*: | ||||||||||||||||||||||
$600 million 3.125% - due November 30, 2022 | 599.6 | 593.5 | 599.6 | 551.5 | 599.6 | 591.4 | 599.6 | 596.8 | ||||||||||||||
$600 million 4.000% - due January 30, 2024 | 596.0 | 629.2 | 595.8 | 593.2 | 596.4 | 610.5 | 596.2 | 625.9 | ||||||||||||||
$400 million 5.375% - due November 30, 2043 | 393.3 | 443.7 | 393.2 | 400.0 | 393.6 | 432.6 | 393.5 | 473.1 | ||||||||||||||
Floating rate credit facility expiring December 17, 2018 | 7.9 | 7.9 | — | — | ||||||||||||||||||
Long-term debt | 1,588.9 | 1,666.4 | 1,588.6 | 1,544.7 | 1,597.5 | 1,642.4 | 1,589.3 | 1,695.8 |
* | The company's senior note indentures contain certain restrictions on mergers or consolidations. Beyond these items, there are no other restrictive covenants in the indentures. |
As of | ||||||||||
In millions | Six months ended June 30, 2014 | Six months ended June 30, 2013 | June 30, 2015 | December 31, 2014 | ||||||
Common shares issued | 490.4 | 490.4 | 490.4 | 490.4 | ||||||
Less: Treasury shares for which dividend and voting rights do not apply | (58.7 | ) | (47.6 | ) | (61.7 | ) | (60.5 | ) | ||
Common shares outstanding | 431.7 | 442.8 | 428.7 | 429.9 |
For the three months ended June 30, 2014 | ||||||||||||||
$ in millions | Foreign currency translation | Employee benefit plans | Equity method investments | Available-for-sale investments | Total | |||||||||
Other comprehensive income/(loss) before tax: | ||||||||||||||
Currency translation differences on investments in foreign subsidiaries | 130.5 | — | — | — | 130.5 | |||||||||
Actuarial (loss)/gain related to employee benefit plans | — | (2.2 | ) | — | — | (2.2 | ) | |||||||
Reclassification of amortization of prior service cost/(credit) into employee compensation expenses | — | (0.4 | ) | — | — | (0.4 | ) | |||||||
Reclassification of amortization of actuarial (gain)/loss into employee compensation expenses | — | 0.6 | — | — | 0.6 | |||||||||
Share of other comprehensive income/(loss) of equity method investments | — | — | 3.2 | — | 3.2 | |||||||||
Unrealized(losses)/gains on available-for-sale investments | — | — | — | 6.8 | 6.8 | |||||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net | — | — | — | (8.1 | ) | (8.1 | ) | |||||||
Other comprehensive income/(loss) before tax | 130.5 | (2.0 | ) | 3.2 | (1.3 | ) | 130.4 | |||||||
Income tax related to items of other comprehensive income/(loss): | ||||||||||||||
Tax on actuarial (loss)/gain related to employee benefit plans | — | 0.4 | — | — | 0.4 | |||||||||
Reclassification of tax on amortization of prior service cost/(credit) into income tax provision | — | 0.1 | — | — | 0.1 | |||||||||
Reclassification of tax on amortization of actuarial (loss)/gain into income tax provision | — | (0.1 | ) | — | — | (0.1 | ) | |||||||
Tax on net unrealized gains/(losses) on available-for-sale investments | — | — | — | 2.0 | 2.0 | |||||||||
Reclassification of tax on net (gains)/losses on available-for-sale investments | — | — | — | (2.7 | ) | (2.7 | ) | |||||||
Total income tax benefit(expense) related to items of other comprehensive income | — | 0.4 | — | (0.7 | ) | (0.3 | ) | |||||||
Accumulated other comprehensive income/(loss), net of tax: | ||||||||||||||
Beginning balance | 439.7 | (78.1 | ) | 2.2 | 16.1 | 379.9 | ||||||||
Other comprehensive income/(loss), net of tax: | 130.5 | (1.6 | ) | 3.2 | (2.0 | ) | 130.1 | |||||||
Other comprehensive (income)/loss attributable to noncontrolling interests | (0.1 | ) | — | — | — | (0.1 | ) | |||||||
Ending balance | 570.1 | (79.7 | ) | 5.4 | 14.1 | 509.9 |
For the three months ended June 30, 2015 | ||||||||||||||
$ in millions | Foreign currency translation | Employee benefit plans | Equity method investments | Available-for-sale investments | Total | |||||||||
Other comprehensive income/(loss) net of tax: | ||||||||||||||
Currency translation differences on investments in foreign subsidiaries, net of tax | 162.6 | — | — | — | 162.6 | |||||||||
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax | — | (1.2 | ) | — | — | (1.2 | ) | |||||||
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax | — | 0.6 | — | — | 0.6 | |||||||||
Share of other comprehensive income/(loss) of equity method investments, net of tax | — | — | 0.2 | — | 0.2 | |||||||||
Unrealized (losses)/gains on available-for-sale investments, net of tax | — | — | — | (3.0 | ) | (3.0 | ) | |||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax | — | — | — | (0.4 | ) | (0.4 | ) | |||||||
Other comprehensive income/(loss), net of tax | 162.6 | (0.6 | ) | 0.2 | (3.4 | ) | 158.8 | |||||||
Beginning balance | (174.8 | ) | (93.0 | ) | 7.6 | 6.6 | (253.6 | ) | ||||||
Other comprehensive income/(loss), net of tax | 162.6 | (0.6 | ) | 0.2 | (3.4 | ) | 158.8 | |||||||
Ending balance | (12.2 | ) | (93.6 | ) | 7.8 | 3.2 | (94.8 | ) |
For the six months ended June 30, 2014 | ||||||||||||||
$ in millions | Foreign currency translation | Employee benefit plans | Equity method investments | Available-for-sale investments | Total | |||||||||
Other comprehensive income/(loss) before tax: | ||||||||||||||
Currency translation differences on investments in foreign subsidiaries | 77.3 | — | — | — | 77.3 | |||||||||
Actuarial (loss)/gain related to employee benefit plans | — | (2.6 | ) | — | — | (2.6 | ) | |||||||
Reclassification of amortization of prior service cost/(credit) into employee compensation expenses | — | (0.9 | ) | — | — | (0.9 | ) | |||||||
Reclassification of amortization of actuarial (gain)/loss into employee compensation expenses | — | 1.2 | — | — | 1.2 | |||||||||
Share of other comprehensive income/(loss) of equity method investments | — | — | 7.2 | — | 7.2 | |||||||||
Unrealized(losses)/gains on available-for-sale investments | — | — | — | 11.0 | 11.0 | |||||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net | — | — | — | (10.8 | ) | (10.8 | ) | |||||||
Other comprehensive income/(loss) before tax | 77.3 | (2.3 | ) | 7.2 | 0.2 | 82.4 | ||||||||
Income tax related to items of other comprehensive income/(loss): | ||||||||||||||
Tax on actuarial (loss)/gain related to employee benefit plans | — | 0.5 | — | — | 0.5 | |||||||||
Reclassification of tax on amortization of prior service cost/(credit) into income tax provision | — | 0.2 | — | — | 0.2 | |||||||||
Reclassification of tax on amortization of actuarial (loss)/gain into income tax provision | — | (0.2 | ) | — | — | (0.2 | ) | |||||||
Tax on net unrealized gains/(losses) on available-for-sale investments | — | — | — | 2.2 | 2.2 | |||||||||
Reclassification of tax on net (gains)/losses on available-for-sale investments | — | — | — | (3.4 | ) | (3.4 | ) | |||||||
Total income tax benefit(expense) related to items of other comprehensive income | — | 0.5 | — | (1.2 | ) | (0.7 | ) | |||||||
Accumulated other comprehensive income/(loss), net of tax: | ||||||||||||||
Beginning balance | 492.5 | (77.9 | ) | (1.8 | ) | 15.1 | 427.9 | |||||||
Other comprehensive income/(loss), net of tax: | 77.3 | (1.8 | ) | 7.2 | (1.0 | ) | 81.7 | |||||||
Other comprehensive (income)/loss attributable to noncontrolling interests | 0.3 | — | — | — | 0.3 | |||||||||
Ending balance | 570.1 | (79.7 | ) | 5.4 | 14.1 | 509.9 |
For the six months ended June 30, 2015 | ||||||||||||||
$ in millions | Foreign currency translation | Employee benefit plans | Equity method investments | Available-for-sale investments | Total | |||||||||
Other comprehensive income/(loss) net of tax: | ||||||||||||||
Currency translation differences on investments in foreign subsidiaries, net of tax | (140.3 | ) | — | — | — | (140.3 | ) | |||||||
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax | — | (3.0 | ) | — | — | (3.0 | ) | |||||||
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax | — | 1.1 | — | — | 1.1 | |||||||||
Share of other comprehensive income/(loss) of equity method investments, net of tax | — | — | 1.3 | — | 1.3 | |||||||||
Unrealized (losses)/gains on available-for-sale investments, net of tax | — | — | — | (1.8 | ) | (1.8 | ) | |||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax | — | — | — | (0.9 | ) | (0.9 | ) | |||||||
Other comprehensive income/(loss), net of tax | (140.3 | ) | (1.9 | ) | 1.3 | (2.7 | ) | (143.6 | ) | |||||
Beginning balance | 128.1 | (91.7 | ) | 6.5 | 5.9 | 48.8 | ||||||||
Other comprehensive income/(loss), net of tax | (140.3 | ) | (1.9 | ) | 1.3 | (2.7 | ) | (143.6 | ) | |||||
Ending balance | (12.2 | ) | (93.6 | ) | 7.8 | 3.2 | (94.8 | ) |
For the three months ended June 30, 2013 | ||||||||||||||
$ in millions | Foreign currency translation | Employee benefit plans | Equity method investments | Available-for-sale investments | Total | |||||||||
Other comprehensive income/(loss) before tax: | ||||||||||||||
Currency translation differences on investments in foreign subsidiaries* | (94.3 | ) | — | — | — | (94.3 | ) | |||||||
Actuarial (loss)/gain related to employee benefit plans | — | 0.3 | — | — | 0.3 | |||||||||
Reclassification of amortization of prior service cost/(credit) into employee compensation expenses | — | (0.5 | ) | — | — | (0.5 | ) | |||||||
Reclassification of amortization of actuarial (gain)/loss into employee compensation expenses | — | 0.7 | — | — | 0.7 | |||||||||
Share of other comprehensive income/(loss) of equity method investments | — | — | (1.3 | ) | — | (1.3 | ) | |||||||
Unrealized(losses)/gains on available-for-sale investments | — | — | — | (0.3 | ) | (0.3 | ) | |||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net | — | — | — | — | — | |||||||||
Other comprehensive income/(loss) before tax | (94.3 | ) | 0.5 | (1.3 | ) | (0.3 | ) | (95.4 | ) | |||||
Income tax related to items of other comprehensive income/(loss): | ||||||||||||||
Tax benefit/(expenses) on foreign currency translation differences | (0.3 | ) | — | — | — | (0.3 | ) | |||||||
Tax on actuarial (loss)/gain related to employee benefit plans | — | (0.1 | ) | — | — | (0.1 | ) | |||||||
Reclassification of tax on amortization of prior service cost/(credit) into income tax provision | — | 0.1 | — | — | 0.1 | |||||||||
Reclassification of tax on amortization of actuarial (loss)/gain into income tax provision | — | (0.1 | ) | — | — | (0.1 | ) | |||||||
Tax on net unrealized gains/(losses) on available-for-sale investments | — | — | — | (0.8 | ) | (0.8 | ) | |||||||
Reclassification of tax on net (gains)/losses on available-for-sale investments | — | — | — | — | — | |||||||||
Total income tax benefit(expense) related to items of other comprehensive income | (0.3 | ) | (0.1 | ) | — | (0.8 | ) | (1.2 | ) | |||||
Accumulated other comprehensive income/(loss), net of tax: | ||||||||||||||
Beginning balance | 398.0 | (74.2 | ) | 1.8 | 8.9 | 334.5 | ||||||||
Other comprehensive income/(loss), net of tax: | (94.6 | ) | 0.4 | (1.3 | ) | (1.1 | ) | (96.6 | ) | |||||
Other comprehensive (income)/loss attributable to noncontrolling interests | 6.0 | — | — | — | 6.0 | |||||||||
Ending balance | 309.4 | (73.8 | ) | 0.5 | 7.8 | 243.9 |
For the three months ended June 30, 2014 | ||||||||||||||
$ in millions | Foreign currency translation | Employee benefit plans | Equity method investments | Available-for-sale investments | Total | |||||||||
Other comprehensive income/(loss) net of tax: | ||||||||||||||
Currency translation differences on investments in foreign subsidiaries, net of tax | 130.5 | — | — | — | 130.5 | |||||||||
Actuarial (loss)/gain related to employee benefit plans, net of tax | — | (1.8 | ) | — | — | (1.8 | ) | |||||||
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax | — | (0.3 | ) | — | — | (0.3 | ) | |||||||
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax | — | 0.5 | — | — | 0.5 | |||||||||
Share of other comprehensive income/(loss) of equity method investments, net of tax | — | — | 3.2 | — | 3.2 | |||||||||
Unrealized (losses)/gains on available-for-sale investments, net of tax | — | — | — | 8.8 | 8.8 | |||||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax | — | — | — | (10.8 | ) | (10.8 | ) | |||||||
Other comprehensive income/(loss), net of tax | 130.5 | (1.6 | ) | 3.2 | (2.0 | ) | 130.1 | |||||||
Beginning balance | 439.7 | (78.1 | ) | 2.2 | 16.1 | 379.9 | ||||||||
Other comprehensive income/(loss), net of tax | 130.5 | (1.6 | ) | 3.2 | (2.0 | ) | 130.1 | |||||||
Other comprehensive (income)/loss attributable to noncontrolling interests | (0.1 | ) | — | — | — | (0.1 | ) | |||||||
Ending balance | 570.1 | (79.7 | ) | 5.4 | 14.1 | 509.9 |
|
For the six months ended June 30, 2013 | ||||||||||||||
$ in millions | Foreign currency translation | Employee benefit plans | Equity method investments | Available-for-sale investments | Total | |||||||||
Other comprehensive income/(loss) before tax: | ||||||||||||||
Currency translation differences on investments in foreign subsidiaries* | (303.9 | ) | — | — | — | (303.9 | ) | |||||||
Actuarial (loss)/gain related to employee benefit plans | — | 6.8 | — | — | 6.8 | |||||||||
Reclassification of amortization of prior service cost/(credit) into employee compensation expenses | — | (1.0 | ) | — | — | (1.0 | ) | |||||||
Reclassification of amortization of actuarial (gain)/loss into employee compensation expenses | — | 1.4 | — | — | 1.4 | |||||||||
Share of other comprehensive income/(loss) of equity method investments | — | — | (1.6 | ) | — | (1.6 | ) | |||||||
Unrealized(losses)/gains on available-for-sale investments | — | — | — | 4.0 | 4.0 | |||||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net | — | — | — | (1.4 | ) | (1.4 | ) | |||||||
Other comprehensive income/(loss) before tax | (303.9 | ) | 7.2 | (1.6 | ) | 2.6 | (295.7 | ) | ||||||
Income tax related to items of other comprehensive income/(loss): | ||||||||||||||
Tax benefit/(expenses) on foreign currency translation differences | (1.1 | ) | — | — | — | (1.1 | ) | |||||||
Tax on actuarial (loss)/gain related to employee benefit plans | — | (1.5 | ) | — | — | (1.5 | ) | |||||||
Reclassification of tax on amortization of prior service cost/(credit) into income tax provision | — | 0.2 | — | — | 0.2 | |||||||||
Reclassification of tax on amortization of actuarial (loss)/gain into income tax provision | — | (0.3 | ) | — | — | (0.3 | ) | |||||||
Tax on net unrealized gains/(losses) on available-for-sale investments | — | — | — | (0.6 | ) | (0.6 | ) | |||||||
Reclassification of tax on net (gains)/losses on available-for-sale investments | — | — | — | (0.3 | ) | (0.3 | ) | |||||||
Total income tax benefit(expense) related to items of other comprehensive income | (1.1 | ) | (1.6 | ) | — | (0.9 | ) | (3.6 | ) | |||||
Accumulated other comprehensive income/(loss), net of tax: | ||||||||||||||
Beginning balance | 601.7 | (79.4 | ) | 2.1 | 6.1 | 530.5 | ||||||||
Other comprehensive income/(loss), net of tax: | (305.0 | ) | 5.6 | (1.6 | ) | 1.7 | (299.3 | ) | ||||||
Other comprehensive (income)/loss attributable to noncontrolling interests | 12.7 | — | — | — | 12.7 | |||||||||
Ending balance | 309.4 | (73.8 | ) | 0.5 | 7.8 | 243.9 |
For the six months ended June 30, 2014 | For the six months ended June 30, 2013 | |||||||||||||
Millions of shares, except fair values | Time- Vested | Performance- Vested | Weighted Average Grant Date Fair Value ($) | Time- Vested | Performance- Vested | |||||||||
Unvested at the beginning of period | 13.9 | 0.4 | 25.00 | 16.5 | 0.3 | |||||||||
Granted during the period | 4.2 | 0.2 | 34.31 | 5.1 | 0.2 | |||||||||
Forfeited during the period | (0.9 | ) | — | 23.42 | (0.2 | ) | — | |||||||
Vested and distributed during the period | (5.2 | ) | (0.1 | ) | 24.14 | (6.5 | ) | (0.1 | ) | |||||
Unvested at the end of the period | 12.0 | 0.5 | 28.79 | 14.9 | 0.4 |
For the six months ended June 30, 2015 | For the six months ended June 30, 2014 | |||||||||||||
Millions of shares, except fair values | Time- Vested | Performance- Vested | Weighted Average Grant Date Fair Value ($) | Time- Vested | Performance- Vested | |||||||||
Unvested at the beginning of period | 11.5 | 0.5 | 29.00 | 13.9 | 0.4 | |||||||||
Granted during the period | 3.9 | 0.3 | 40.26 | 4.2 | 0.2 | |||||||||
Forfeited during the period | (0.1 | ) | — | 32.71 | (0.9 | ) | — | |||||||
Vested and distributed during the period | (4.4 | ) | (0.2 | ) | 28.08 | (5.2 | ) | (0.1 | ) | |||||
Unvested at the end of the period | 10.9 | 0.6 | 33.45 | 12.0 | 0.5 |
For the six months ended June 30, 2014 | For the six months ended June 30, 2013 | |||||||
Millions of shares, except fair values | Time-Vested | Weighted Average Grant Date Fair Value (£ Sterling) | Time-Vested | |||||
Unvested at the beginning of period | 0.1 | 12.90 | 0.3 | |||||
Forfeited during the period | — | — | — | |||||
Vested and distributed during the period | (0.1 | ) | 12.90 | (0.2 | ) | |||
Unvested at the end of the period | — | — | 0.1 |
For the six months ended June 30, 2014 | For the six months ended June 30, 2013 | ||||||||||
Millions of shares, except prices | Options | Weighted Average Exercise Price (£ Sterling) | Options | Weighted Average Exercise Price (£ Sterling) | |||||||
Outstanding at the beginning of period | 1.1 | 7.32 | 2.6 | 7.31 | |||||||
Exercised during the period | (0.4 | ) | 6.74 | (0.9 | ) | 7.27 | |||||
Outstanding at the end of the period | 0.7 | 7.64 | 1.7 | 7.33 | |||||||
Exercisable at the end of the period | 0.7 | 7.64 | 1.7 | 7.33 |
Retirement Plans | Medical Plan | Retirement Plans | Medical Plan | |||||||||||||||||||||||||||||||||||||||||||
For the three months ended June 30, | For the six months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||||||||||||||||||||
$ in millions | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Service cost | (1.1 | ) | (1.1 | ) | (2.2 | ) | (2.2 | ) | — | (0.1 | ) | (0.1 | ) | (0.2 | ) | 1.3 | 1.1 | 2.5 | �� | 2.2 | — | — | — | 0.1 | ||||||||||||||||||||||
Interest cost | (4.7 | ) | (4.9 | ) | (9.5 | ) | (9.8 | ) | (0.5 | ) | (0.5 | ) | (1.0 | ) | (1.0 | ) | 5.2 | 4.7 | 10.5 | 9.5 | — | 0.5 | — | 1.0 | ||||||||||||||||||||||
Expected return on plan assets | 4.7 | 4.4 | 9.3 | 8.8 | 0.1 | 0.1 | 0.3 | 0.2 | (6.1 | ) | (4.7 | ) | (12.3 | ) | (9.3 | ) | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.3 | ) | ||||||||||||||||||||||
Amortization of prior service cost/(credit) | (0.1 | ) | — | (0.1 | ) | — | 0.5 | 0.5 | 1.0 | 1.0 | 0.1 | 0.1 | 0.1 | 0.1 | (2.5 | ) | (0.5 | ) | (4.7 | ) | (1.0 | ) | ||||||||||||||||||||||||
Amortization of net actuarial gain/(loss) | (0.5 | ) | (0.6 | ) | (1.0 | ) | (1.2 | ) | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | ||||||||||||||||||||||||||||||
Net periodic benefit cost | (1.7 | ) | (2.2 | ) | (3.5 | ) | (4.4 | ) | — | (0.1 | ) | — | (0.2 | ) | ||||||||||||||||||||||||||||||||
Amortization of net actuarial (gain)/loss | 0.7 | 0.5 | 1.3 | 1.0 | — | 0.1 | — | 0.2 | ||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost/(benefit) | 1.2 | 1.7 | 2.1 | 3.5 | (2.6 | ) | — | (4.9 | ) | — |
For the three months ended June 30, | For the six months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||||||||
In millions, except per share data | 2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Income from continuing operations, net of taxes | $316.6 | $208.3 | $525.4 | $403.8 | $244.0 | $316.6 | $528.0 | $525.4 | ||||||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (42.3 | ) | (1.1 | ) | (61.3 | ) | 21.5 | 13.3 | (42.3 | ) | (11.1 | ) | (61.3 | ) | ||||||||||||||||
Income from continuing operations attributable to Invesco Ltd. for basic and diluted EPS calculations | 274.3 | 207.2 | 464.1 | 425.3 | 257.3 | 274.3 | 516.9 | 464.1 | ||||||||||||||||||||||
Income/(loss) from discontinued operations, net of taxes | 0.2 | (4.6 | ) | (1.8 | ) | (0.5 | ) | — | 0.2 | — | (1.8 | ) | ||||||||||||||||||
Net income attributable to Invesco Ltd. | 257.3 | 274.5 | 516.9 | 462.3 | ||||||||||||||||||||||||||
Less: Allocation of earnings to restricted shares | (6.6 | ) | (7.6 | ) | (13.3 | ) | (13.3 | ) | ||||||||||||||||||||||
Net income attributable to common shareholders | $274.5 | $202.6 | $462.3 | $424.8 | $250.7 | $266.9 | $503.6 | $449.0 | ||||||||||||||||||||||
Invesco Ltd: | ||||||||||||||||||||||||||||||
Weighted average shares outstanding - basic | 435.7 | 449.1 | 436.2 | 448.5 | 431.9 | 435.7 | 432.0 | 436.2 | ||||||||||||||||||||||
Dilutive effect of share-based awards | 0.7 | 1.0 | 0.7 | 1.1 | ||||||||||||||||||||||||||
Dilutive effect of non-participating share-based awards | 0.3 | 0.7 | 0.3 | 0.7 | ||||||||||||||||||||||||||
Weighted average shares outstanding - diluted | 436.4 | 450.1 | 436.9 | 449.6 | 432.2 | 436.4 | 432.3 | 436.9 | ||||||||||||||||||||||
Common shareholders: | ||||||||||||||||||||||||||||||
Weighted average shares outstanding - basic | 431.9 | 435.7 | 432.0 | 436.2 | ||||||||||||||||||||||||||
Less: Weighted average restricted shares | (11.0 | ) | (12.0 | ) | (11.1 | ) | (12.5 | ) | ||||||||||||||||||||||
Weighted average common shares outstanding - basic | 420.9 | 423.7 | 420.9 | 423.7 | ||||||||||||||||||||||||||
Dilutive effect of non-participating share-based awards | 0.3 | 0.7 | 0.3 | 0.7 | ||||||||||||||||||||||||||
Weighted average common shares outstanding - diluted | 421.2 | 424.4 | 421.2 | 424.4 | ||||||||||||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||||||||||
Earnings per share from continuing operations | $0.63 | $0.46 | $1.06 | $0.95 | $0.60 | $0.63 | $1.20 | $1.06 | ||||||||||||||||||||||
Earnings per share from discontinued operations | $— | ($0.01 | ) | $— | $— | $— | $— | $— | $— | |||||||||||||||||||||
Basic earnings per share | $0.63 | $0.45 | $1.06 | $0.95 | $0.60 | $0.63 | $1.20 | $1.06 | ||||||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||||||||
Earnings per share from continuing operations | $0.63 | $0.46 | $1.06 | $0.95 | $0.60 | $0.63 | $1.20 | $1.06 | ||||||||||||||||||||||
Earnings per share from discontinued operations | $— | ($0.01 | ) | $— | $— | $— | $— | $— | $— | |||||||||||||||||||||
Diluted earnings per share | $0.63 | $0.45 | $1.06 | $0.94 | $0.60 | $0.63 | $1.20 | $1.06 |
$ in millions | June 30, 2014 | December 31, 2013 | June 30, 2015 | December 31, 2014 | ||||||
Investments of CSIP | 306.4 | 93.2 | 297.1 | 288.5 | ||||||
Cash and cash equivalents of CSIP | 13.7 | 12.7 | 16.3 | 11.4 | ||||||
Accounts receivable and other assets of CSIP | 6.7 | 2.6 | 8.1 | 5.9 | ||||||
Assets of CSIP | 326.8 | 108.5 | 321.5 | 305.8 | ||||||
Other liabilities of CSIP | (7.7 | ) | (4.7 | ) | (9.9 | ) | (7.9 | ) | ||
Equity attributable to redeemable noncontrolling interests | (155.0 | ) | — | (169.1 | ) | (165.5 | ) | |||
Equity attributable to nonredeemable noncontrolling interests | (17.7 | ) | (12.0 | ) | (14.9 | ) | (10.6 | ) | ||
Invesco's net interests in CSIP | 146.4 | 91.8 | 127.6 | 121.8 | ||||||
Invesco's net economic interests as a percentage of investments of CSIP | 47.8 | % | 98.5 | % | 42.9 | % | 42.2 | % |
As of June 30, 2014 | As of June 30, 2015 | |||||||||||||||||||||
$ in millions | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Investments: | ||||||||||||||||||||||
Fixed income securities | 186.0 | 72.2 | 113.8 | — | 204.5 | — | 204.5 | — | ||||||||||||||
Equity securities | 29.6 | 29.6 | — | — | 1.6 | 1.6 | — | — | ||||||||||||||
Investments in fixed income funds* | 66.7 | 66.7 | — | — | 48.7 | 48.7 | — | — | ||||||||||||||
Investments in other private equity funds* | 24.1 | — | — | 24.1 | 42.3 | — | — | 42.3 | ||||||||||||||
Total investments at fair value | 306.4 | 168.5 | 113.8 | 24.1 | 297.1 | 50.3 | 204.5 | 42.3 |
As of December 31, 2013 | As of December 31, 2014 | |||||||||||||||||||||
$ in millions | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level2) | Significant Unobservable Inputs (Level 3) | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Investments: | ||||||||||||||||||||||
Fixed income securities | 43.2 | — | 43.2 | — | 200.3 | — | 200.3 | — | ||||||||||||||
Equity securities | 27.8 | 27.8 | — | — | ||||||||||||||||||
Investments in fixed income funds* | 6.0 | 6.0 | — | — | 58.0 | 58.0 | — | — | ||||||||||||||
Investments in other private equity funds* | 16.2 | — | — | 16.2 | 30.2 | — | — | 30.2 | ||||||||||||||
Total investments at fair value | 93.2 | 33.8 | 43.2 | 16.2 | 288.5 | 58.0 | 200.3 | 30.2 |
* | Investments in fixed income funds and other private equity funds are valued using the net asset value (NAV) as a practical expedient. The NAVs that have been provided are derived from the fair values of the underlying investments as of the consolidation date. Refer to Note 13, "Consolidated Investment Products," for additional discussion regarding the fair value of private equity funds. |
As of June 30, 2014 | As of June 30, 2015 | |||||||||||||||||||||||
Fair Value ($ in millions) | Total Unfunded Commitments ($ in millions) | Weighted Average Remaining Term (1) | Redemption Frequency | Redemption Notice Period | Fair Value ($ in millions) | Total Unfunded Commitments ($ in millions) | Weighted Average Remaining Term (1) | Redemption Frequency | Redemption Notice Period | |||||||||||||||
Fixed income funds | $66.7 | $— | n/a | Monthly | 10 days | 48.7 | — | n/a | Monthly | 10 days | ||||||||||||||
Private equity fund of funds | $24.1 | $30.8 | 7.6 years | n/a (2) | n/a(2) | 42.3 | 30.0 | 7.8 years | n/a (2) | n/a(2) | ||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
As of December 31, 2013 | Fair Value ($ in millions) | Total Unfunded Commitments ($ in millions) | Weighted Average Remaining Term (1) | Redemption Frequency | Redemption Notice Period | |||||||||||||||||||
Fair Value ($ in millions) | Total Unfunded Commitments ($ in millions) | Weighted Average Remaining Term (1) | Redemption Frequency | Redemption Notice Period | ||||||||||||||||||||
Fixed income funds | $6.0 | $— | n/a | Monthly | 10 days | 58.0 | — | n/a | Monthly | 10 days | ||||||||||||||
Private equity fund of funds | $16.2 | $35.6 | 8.5 years | n/a (2) | n/a (2) | 30.2 | 35.0 | 7.6 years | n/a (2) | n/a (2) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
$ in millions | Three months ended June 30, 2014 | Six months ended June 30, 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||
Beginning balance | 19.5 | 16.2 | 38.0 | 19.5 | 30.2 | 16.2 | ||||||||||
Purchases | 1.8 | 4.0 | 1.7 | 1.8 | 5.2 | 4.0 | ||||||||||
Sales | — | (0.4 | ) | — | — | (1.4 | ) | (0.4 | ) | |||||||
Gains and losses included in the Condensed Consolidated Statements of Income* | 2.8 | 4.3 | 2.6 | 2.8 | 8.3 | 4.3 | ||||||||||
Ending balance | 24.1 | 24.1 | 42.3 | 24.1 | 42.3 | 24.1 |
* | Included in other income/ |
As of | |||||
$ in millions | June 30, 2014 | December 31, 2013 | |||
Cash and cash equivalents of CIP | 292.4 | 583.6 | |||
Investments of CIP | 4,971.4 | 4,734.7 | |||
Accounts receivable and other assets of CIP | 121.7 | 58.3 | |||
Less: Debt of CIP | (4,301.5 | ) | (4,181.7 | ) | |
Less: Other liabilities of CIP | (201.0 | ) | (461.8 | ) | |
Less: Retained earnings (1) | (15.8 | ) | (12.5 | ) | |
Less: Retained earnings appropriated for investors in CIP | (63.3 | ) | (104.3 | ) | |
Less: Accumulated other comprehensive income, net of tax (1) | 15.7 | 12.7 | |||
Less: Equity attributable to nonredeemable noncontrolling interests | (753.2 | ) | (570.3 | ) | |
Invesco's net interests in CIP | 66.4 | 58.7 | |||
Invesco's net economic interests as a percentage of investments of CIP | 1.3 | % | 1.2 | % |
As of | |||||
$ in millions | June 30, 2015 | December 31, 2014 | |||
Cash and cash equivalents of CIP | 314.8 | 404.0 | |||
Accounts receivable and other assets of CIP | 109.5 | 161.3 | |||
Investments of CIP | 6,185.1 | 5,762.8 | |||
Less: Debt of CIP | (5,432.1 | ) | (5,149.6 | ) | |
Less: Other liabilities of CIP | (326.8 | ) | (280.9 | ) | |
Less: Retained earnings | (12.5 | ) | (20.3 | ) | |
Less: Retained earnings appropriated for investors in CIP | — | (17.6 | ) | ||
Less: Accumulated other comprehensive income, net of tax | 12.5 | 20.2 | |||
Less: Equity attributable to nonredeemable noncontrolling interests | (739.9 | ) | (781.2 | ) | |
Invesco's net interests in CIP | 110.6 | 98.7 | |||
Invesco's net economic interests as a percentage of investments of CIP | 1.8 | % | 1.7 | % |
$ in millions | Footnote Reference | Carrying Value | Company's Maximum Risk of Loss | Footnote Reference | Carrying Value | Company's Maximum Risk of Loss | ||||||||
CLO investments | 3 | 4.1 | 4.1 | 3 | 1.3 | 1.3 | ||||||||
Partnership and trust investments | 17.0 | 17.0 | 20.8 | 20.8 | ||||||||||
Investments in Invesco Mortgage Capital Inc. | 30.6 | 30.6 | 30.8 | 30.8 | ||||||||||
Total | 51.7 | 52.9 |
For the six months ended June 30, 2014 | For the six months ended June 30, 2015 | |||||||||
$ in millions | VIEs | VOEs | VIEs | VOEs | ||||||
Cash and cash equivalents of CIP | 576.5 | — | 209.2 | 10.0 | ||||||
Accounts receivable and other assets of CIP | 0.5 | 9.0 | 1.5 | — | ||||||
Investments of CIP | 538.0 | 40.1 | 567.0 | — | ||||||
Total assets | 1,115.0 | 49.1 | 777.7 | 10.0 | ||||||
Debt of CIP | 691.2 | — | 601.4 | — | ||||||
Other liabilities of CIP | 432.6 | 11.8 | 176.3 | — | ||||||
Total liabilities | 1,123.8 | 11.8 | 777.7 | — | ||||||
Total equity | (8.8 | ) | 37.3 | — | 10.0 | |||||
Total liabilities and equity | 1,115.0 | 49.1 | 777.7 | 10.0 |
As of June 30, 2014 | As of June 30, 2015 | |||||||||||||||||||||||||||
$ in millions | CLOs - VIEs | Other VIEs | VOEs | Adjustments(1) | Impact of CIP | CLOs - VIEs | Other VIEs | VOEs | Adjustments(1) | Impact of CIP | ||||||||||||||||||
Accounts receivable | — | — | — | (2.8 | ) | (2.8 | ) | — | — | — | (5.2 | ) | (5.2 | ) | ||||||||||||||
Investments | — | — | — | (63.6 | ) | (63.6 | ) | — | — | — | (105.4 | ) | (105.4 | ) | ||||||||||||||
Cash and cash equivalents of CIP | 247.1 | 5.4 | 39.9 | — | 292.4 | 275.2 | 4.5 | 34.7 | 0.4 | 314.8 | ||||||||||||||||||
Accounts receivable of CIP | 98.9 | 0.1 | 22.7 | — | 121.7 | 96.9 | 0.3 | 12.3 | — | 109.5 | ||||||||||||||||||
Investments of CIP | 4,325.2 | 42.4 | 671.2 | (67.4 | ) | 4,971.4 | 5,538.5 | 72.3 | 647.7 | (73.4 | ) | 6,185.1 | ||||||||||||||||
Total assets | 4,671.2 | 47.9 | 733.8 | (133.8 | ) | 5,319.1 | 5,910.6 | 77.1 | 694.7 | (183.6 | ) | 6,498.8 | ||||||||||||||||
Debt of CIP | 4,407.5 | — | — | (106.0 | ) | 4,301.5 | 5,583.4 | — | — | (151.3 | ) | 5,432.1 | ||||||||||||||||
Other liabilities of CIP | 200.3 | 1.0 | 2.5 | (2.8 | ) | 201.0 | 327.2 | 0.9 | 3.9 | (5.2 | ) | 326.8 | ||||||||||||||||
Total liabilities | 4,607.8 | 1.0 | 2.5 | (108.8 | ) | 4,502.5 | 5,910.6 | 0.9 | 3.9 | (156.5 | ) | 5,758.9 | ||||||||||||||||
Retained earnings | 15.8 | — | — | — | 15.8 | 12.5 | — | — | — | 12.5 | ||||||||||||||||||
Retained earnings appropriated for investors in CIP | 63.3 | — | — | — | 63.3 | |||||||||||||||||||||||
Accumulated other comprehensive income, net of tax | (15.7 | ) | — | — | — | (15.7 | ) | (12.5 | ) | — | — | — | (12.5 | ) | ||||||||||||||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities | — | 46.9 | 731.3 | (25.0 | ) | 753.2 | — | 76.2 | 690.8 | (27.1 | ) | 739.9 | ||||||||||||||||
Total liabilities and equity | 4,671.2 | 47.9 | 733.8 | (133.8 | ) | 5,319.1 | 5,910.6 | 77.1 | 694.7 | (183.6 | ) | 6,498.8 |
(1) | Adjustments include the elimination of intercompany transactions between the company and its CIP, primarily the elimination of the company's equity at risk recorded as investments by the company (before consolidation) against either equity (private equity funds) or subordinated debt (CLOs) of the funds. |
As of December 31, 2013 | ||||||||||||||
$ in millions | CLOs - VIEs | Other VIEs | VOEs | Adjustments(1) | Impact of CIP | |||||||||
Accounts receivable | — | — | — | (3.4 | ) | (3.4 | ) | |||||||
Investments | — | — | — | (55.3 | ) | (55.3 | ) | |||||||
Cash and cash equivalents of CIP | 542.3 | 5.6 | 35.7 | — | 583.6 | |||||||||
Accounts receivable of CIP | 56.3 | 0.2 | 1.8 | — | 58.3 | |||||||||
Investments of CIP | 4,237.3 | 40.4 | 512.2 | (55.2 | ) | 4,734.7 | ||||||||
Total assets | 4,835.9 | 46.2 | 549.7 | (113.9 | ) | 5,317.9 | ||||||||
Debt of CIP | 4,270.4 | — | — | (88.7 | ) | 4,181.7 | ||||||||
Other liabilities of CIP | 461.4 | 0.9 | 3.0 | (3.5 | ) | 461.8 | ||||||||
Total liabilities | 4,731.8 | 0.9 | 3.0 | (92.2 | ) | 4,643.5 | ||||||||
Retained earnings | 12.5 | — | — | — | 12.5 | |||||||||
Retained earnings appropriated for investors in CIP | 104.3 | — | — | — | 104.3 | |||||||||
Accumulated other comprehensive income, net of tax | (12.7 | ) | — | — | — | (12.7 | ) | |||||||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities | — | 45.3 | 546.7 | (21.7 | ) | 570.3 | ||||||||
Total liabilities and equity | 4,835.9 | 46.2 | 549.7 | (113.9 | ) | 5,317.9 |
As of December 31, 2014 | ||||||||||||||
$ in millions | CLOs - VIEs | Other VIEs | VOEs | Adjustments(1) | Impact of CIP | |||||||||
Accounts receivable | — | — | — | (3.8 | ) | (3.8 | ) | |||||||
Investments | — | — | — | (94.9 | ) | (94.9 | ) | |||||||
Cash and cash equivalents of CIP | 378.8 | 5.0 | 21.5 | (1.3 | ) | 404.0 | ||||||||
Accounts receivable of CIP | 155.7 | 0.1 | 5.5 | — | 161.3 | |||||||||
Investments of CIP | 5,063.5 | 53.4 | 730.2 | (84.3 | ) | 5,762.8 | ||||||||
Total assets | 5,598.0 | 58.5 | 757.2 | (184.3 | ) | 6,229.4 | ||||||||
Debt of CIP | 5,302.9 | — | — | (153.3 | ) | 5,149.6 | ||||||||
Other liabilities of CIP | 277.4 | 0.4 | 6.9 | (3.8 | ) | 280.9 | ||||||||
Total liabilities | 5,580.3 | 0.4 | 6.9 | (157.1 | ) | 5,430.5 | ||||||||
Retained earnings | 20.3 | — | — | — | 20.3 | |||||||||
Retained earnings appropriated for investors in CIP | 17.6 | — | — | — | 17.6 | |||||||||
Accumulated other comprehensive income, net of tax | (20.2 | ) | — | — | — | (20.2 | ) | |||||||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities | — | 58.1 | 750.3 | (27.2 | ) | 781.2 | ||||||||
Total liabilities and equity | 5,598.0 | 58.5 | 757.2 | (184.3 | ) | 6,229.4 |
(1) | Adjustments include the elimination of intercompany transactions between the company and its CIP, primarily the elimination of the company's equity at risk recorded as investments by the company (before consolidation) against either equity (private equity and real estate partnership funds) or subordinated debt (CLOs) of the funds. |
Three months ended June 30, 2014 | Three months ended June 30, 2015 | |||||||||||||||||||||||||||
$ in millions | CLOs - VIEs | Other VIEs | VOEs | Adjustments(1) | Impact of CIP | CLOs - VIEs | Other VIEs | VOEs | Adjustments(2) | Impact of CIP | ||||||||||||||||||
Total operating revenues | — | 0.1 | — | (8.7 | ) | (8.6 | ) | — | — | — | (10.4 | ) | (10.4 | ) | ||||||||||||||
Total operating expenses | 8.9 | 0.2 | 1.3 | (8.7 | ) | 1.7 | 9.8 | 0.4 | 1.7 | (10.4 | ) | 1.5 | ||||||||||||||||
Operating income | (8.9 | ) | (0.1 | ) | (1.3 | ) | — | (10.3 | ) | (9.8 | ) | (0.4 | ) | (1.7 | ) | — | (11.9 | ) | ||||||||||
Equity in earnings of unconsolidated affiliates | — | — | — | (2.2 | ) | (2.2 | ) | — | — | — | 0.5 | 0.5 | ||||||||||||||||
Interest and dividend income | — | — | — | (0.6 | ) | (0.6 | ) | — | — | — | (0.8 | ) | (0.8 | ) | ||||||||||||||
Other gains and losses, net | — | — | — | (4.7 | ) | (4.7 | ) | — | — | — | (1.2 | ) | (1.2 | ) | ||||||||||||||
Interest and dividend income of CIP | 50.1 | — | — | (2.1 | ) | 48.0 | 71.4 | — | 0.3 | (6.6 | ) | 65.1 | ||||||||||||||||
Interest expense of CIP | (33.1 | ) | — | — | 2.8 | (30.3 | ) | (54.7 | ) | — | — | 7.4 | (47.3 | ) | ||||||||||||||
Other gains/(losses) of CIP, net | (18.1 | ) | (0.2 | ) | 52.3 | 2.8 | 36.8 | (6.9 | ) | 0.6 | (15.0 | ) | 1.6 | (19.7 | ) | |||||||||||||
Income from continuing operations before income taxes | (10.0 | ) | (0.3 | ) | 51.0 | (4.0 | ) | 36.7 | — | 0.2 | (16.4 | ) | 0.9 | (15.3 | ) | |||||||||||||
Income tax provision | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Income from continuing operations, net of income taxes | (10.0 | ) | (0.3 | ) | 51.0 | (4.0 | ) | 36.7 | — | 0.2 | (16.4 | ) | 0.9 | (15.3 | ) | |||||||||||||
Income from discontinued operations, net of income taxes | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Net income | (10.0 | ) | (0.3 | ) | 51.0 | (4.0 | ) | 36.7 | — | 0.2 | (16.4 | ) | 0.9 | (15.3 | ) | |||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 9.8 | 0.3 | (48.8 | ) | — | (38.7 | ) | — | (0.2 | ) | 15.9 | — | 15.7 | |||||||||||||||
Net income attributable to common shareholders | (0.2 | ) | — | 2.2 | (4.0 | ) | (2.0 | ) | ||||||||||||||||||||
Net income attributable to Invesco Ltd. | — | — | (0.5 | ) | 0.9 | 0.4 |
Three months ended June 30 , 2013 | Three months ended June 30, 2014 | |||||||||||||||||||||||||||
$ in millions | CLOs - VIEs | Other VIEs | VOEs | Adjustments(1) | Impact of CIP | CLOs - VIEs | Other VIEs | VOEs | Adjustments(2) | Impact of CIP | ||||||||||||||||||
Total operating revenues | — | — | 0.4 | (9.4 | ) | (9.0 | ) | — | 0.1 | — | (8.7 | ) | (8.6 | ) | ||||||||||||||
Total operating expenses | 17.0 | 0.2 | 1.5 | (9.4 | ) | 9.3 | 8.9 | 0.2 | 1.3 | (8.7 | ) | 1.7 | ||||||||||||||||
Operating income | (17.0 | ) | (0.2 | ) | (1.1 | ) | — | (18.3 | ) | (8.9 | ) | (0.1 | ) | (1.3 | ) | — | (10.3 | ) | ||||||||||
Equity in earnings of unconsolidated affiliates | — | — | — | (0.8 | ) | (0.8 | ) | — | — | — | (2.2 | ) | (2.2 | ) | ||||||||||||||
Interest and dividend income | — | — | — | (1.8 | ) | (1.8 | ) | — | — | — | (0.6 | ) | (0.6 | ) | ||||||||||||||
Other gains and losses, net | — | — | — | (4.7 | ) | (4.7 | ) | |||||||||||||||||||||
Interest and dividend income of CIP | 53.1 | — | — | (2.4 | ) | 50.7 | 50.1 | — | — | (2.1 | ) | 48.0 | ||||||||||||||||
Interest expense of CIP | (34.8 | ) | — | — | 4.2 | (30.6 | ) | (33.1 | ) | — | — | 2.8 | (30.3 | ) | ||||||||||||||
Other gains/ (losses) of CIP, net | (10.7 | ) | 0.5 | 12.6 | (4.0 | ) | (1.6 | ) | (18.1 | ) | (0.2 | ) | 52.3 | 2.8 | 36.8 | |||||||||||||
Income from continuing operations before income taxes | (9.4 | ) | 0.3 | 11.5 | (4.8 | ) | (2.4 | ) | (10.0 | ) | (0.3 | ) | 51.0 | (4.0 | ) | 36.7 | ||||||||||||
Income tax provision | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Income from continuing operations, net of income taxes | (9.4 | ) | 0.3 | 11.5 | (4.8 | ) | (2.4 | ) | (10.0 | ) | (0.3 | ) | 51.0 | (4.0 | ) | 36.7 | ||||||||||||
Income from discontinued operations, net of income taxes | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Net income | (9.4 | ) | 0.3 | 11.5 | (4.8 | ) | (2.4 | ) | (10.0 | ) | (0.3 | ) | 51.0 | (4.0 | ) | 36.7 | ||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 9.4 | (0.3 | ) | (10.2 | ) | — | (1.1 | ) | 9.8 | 0.3 | (48.8 | ) | — | (38.7 | ) | |||||||||||||
Net income attributable to common shareholders | — | — | 1.3 | (4.8 | ) | (3.5 | ) | |||||||||||||||||||||
Net income attributable to Invesco Ltd. | (0.2 | ) | — | 2.2 | (4.0 | ) | (2.0 | ) |
Six months ended June 30, 2014 | Six months ended June 30, 2015 | |||||||||||||||||||||||||||
$ in millions | CLOs - VIEs | Other VIEs | VOEs | Adjustments(1) | Impact of CIP | CLOs - VIEs | Other VIEs | VOEs | Adjustments(2) | Impact of CIP | ||||||||||||||||||
Total operating revenues | — | 0.1 | — | (17.1 | ) | (17.0 | ) | — | — | — | (19.7 | ) | (19.7 | ) | ||||||||||||||
Total operating expenses | 26.8 | 0.5 | 4.1 | (17.1 | ) | 14.3 | 30.1 | 0.6 | 2.7 | (19.7 | ) | 13.7 | ||||||||||||||||
Operating income | (26.8 | ) | (0.4 | ) | (4.1 | ) | — | (31.3 | ) | (30.1 | ) | (0.6 | ) | (2.7 | ) | — | (33.4 | ) | ||||||||||
Equity in earnings of unconsolidated affiliates | — | — | — | (3.4 | ) | (3.4 | ) | — | — | — | (1.2 | ) | (1.2 | ) | ||||||||||||||
Interest and dividend income | — | — | — | (1.5 | ) | (1.5 | ) | — | — | — | (2.2 | ) | (2.2 | ) | ||||||||||||||
Other gains and losses, net | — | — | — | (4.7 | ) | (4.7 | ) | — | — | — | (3.9 | ) | (3.9 | ) | ||||||||||||||
Interest and dividend income of CIP | 102.0 | — | — | (5.7 | ) | 96.3 | 134.9 | — | 0.9 | (10.5 | ) | 125.3 | ||||||||||||||||
Interest expense of CIP | (67.9 | ) | — | — | 7.3 | (60.6 | ) | (105.1 | ) | — | — | 12.7 | (92.4 | ) | ||||||||||||||
Other gains/(losses) of CIP, net | (47.3 | ) | (1.2 | ) | 103.9 | 7.9 | 63.3 | 0.3 | 4.8 | 3.1 | (3.5 | ) | 4.7 | |||||||||||||||
Income from continuing operations before income taxes | (40.0 | ) | (1.6 | ) | 99.8 | (0.1 | ) | 58.1 | — | 4.2 | 1.3 | (8.6 | ) | (3.1 | ) | |||||||||||||
Income tax provision | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Income from continuing operations, net of income taxes | (40.0 | ) | (1.6 | ) | 99.8 | (0.1 | ) | 58.1 | — | 4.2 | 1.3 | (8.6 | ) | (3.1 | ) | |||||||||||||
Income from discontinued operations, net of income taxes | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Net income | (40.0 | ) | (1.6 | ) | 99.8 | (0.1 | ) | 58.1 | — | 4.2 | 1.3 | (8.6 | ) | (3.1 | ) | |||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 40.0 | 1.6 | (96.5 | ) | 0.1 | (54.8 | ) | — | (4.1 | ) | (0.6 | ) | — | (4.7 | ) | |||||||||||||
Net income attributable to common shareholders | — | — | 3.3 | — | 3.3 | |||||||||||||||||||||||
Net income attributable to Invesco Ltd. | — | 0.1 | 0.7 | (8.6 | ) | (7.8 | ) |
Six months ended June 30, 2013 | Six months ended June 30, 2014 | |||||||||||||||||||||||||||
$ in millions | CLOs - VIEs | Other VIEs | VOEs | Adjustments(1) | Impact of CIP | CLOs - VIEs | Other VIEs | VOEs | Adjustments(2) | Impact of CIP | ||||||||||||||||||
Total operating revenues | — | — | 0.4 | (18.2 | ) | (17.8 | ) | — | 0.1 | — | (17.1 | ) | (17.0 | ) | ||||||||||||||
Total operating expenses | 25.5 | 0.5 | 4.0 | (18.2 | ) | 11.8 | 26.8 | 0.5 | 4.1 | (17.1 | ) | 14.3 | ||||||||||||||||
Operating income | (25.5 | ) | (0.5 | ) | (3.6 | ) | — | (29.6 | ) | (26.8 | ) | (0.4 | ) | (4.1 | ) | — | (31.3 | ) | ||||||||||
Equity in earnings of unconsolidated affiliates | — | — | — | (1.2 | ) | (1.2 | ) | — | — | — | (3.4 | ) | (3.4 | ) | ||||||||||||||
Interest and dividend income | — | — | — | (3.7 | ) | (3.7 | ) | — | — | — | (1.5 | ) | (1.5 | ) | ||||||||||||||
Other gains and losses, net | — | — | — | (4.7 | ) | (4.7 | ) | |||||||||||||||||||||
Interest and dividend income of CIP | 106.7 | — | — | (5.7 | ) | 101.0 | 102.0 | — | — | (5.7 | ) | 96.3 | ||||||||||||||||
Interest expense of CIP | (72.7 | ) | — | — | 9.4 | (63.3 | ) | (67.9 | ) | — | — | 7.3 | (60.6 | ) | ||||||||||||||
Other gains/ (losses) of CIP, net | (39.2 | ) | 0.2 | 17.3 | (1.0 | ) | (22.7 | ) | (47.3 | ) | (1.2 | ) | 103.9 | 7.9 | 63.3 | |||||||||||||
Income from continuing operations before income taxes | (30.7 | ) | (0.3 | ) | 13.7 | (2.2 | ) | (19.5 | ) | (40.0 | ) | (1.6 | ) | 99.8 | (0.1 | ) | 58.1 | |||||||||||
Income tax provision | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Income from continuing operations, net of income taxes | (30.7 | ) | (0.3 | ) | 13.7 | (2.2 | ) | (19.5 | ) | (40.0 | ) | (1.6 | ) | 99.8 | (0.1 | ) | 58.1 | |||||||||||
Income from discontinued operations, net of income taxes | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Net income | (30.7 | ) | (0.3 | ) | 13.7 | (2.2 | ) | (19.5 | ) | (40.0 | ) | (1.6 | ) | 99.8 | (0.1 | ) | 58.1 | |||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 30.8 | 0.3 | (12.0 | ) | — | 19.1 | 40.0 | 1.6 | (96.5 | ) | 0.1 | (54.8 | ) | |||||||||||||||
Net income attributable to common shareholders | 0.1 | — | 1.7 | (2.2 | ) | (0.4 | ) | |||||||||||||||||||||
Net income attributable to Invesco Ltd. | — | — | 3.3 | — | 3.3 |
Adjustments include the elimination of intercompany transactions between the company and its CIP, primarily the elimination of management and performance fees expensed by the funds and recorded as operating revenues (before consolidation) by the company. These also include the reclassification of the company's gain or loss (representing the changes in the |
As of June 30, 2014 | As of June 30, 2015 | |||||||||||||||||||||
$ in millions | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||||||||
CLO collateral assets: | ||||||||||||||||||||||
Bank loans | 4,142.4 | — | 4,142.4 | — | 5,388.3 | — | 5,388.3 | — | ||||||||||||||
Bonds | 106.2 | — | 106.2 | — | 74.8 | — | 74.8 | — | ||||||||||||||
Equity securities | 9.2 | — | 9.2 | — | 1.9 | — | 1.9 | — | ||||||||||||||
Private equity fund assets: | ||||||||||||||||||||||
Equity securities | 248.8 | 22.5 | — | 226.3 | 288.7 | 1.1 | 7.3 | 280.3 | ||||||||||||||
Debt securities | 0.8 | — | — | 0.8 | 27.8 | — | — | 27.8 | ||||||||||||||
Investments in other private equity funds | 464.0 | — | — | 464.0 | 403.6 | — | — | 403.6 | ||||||||||||||
Total assets at fair value | 4,971.4 | 22.5 | 4,257.8 | 691.1 | 6,185.1 | 1.1 | 5,472.3 | 711.7 | ||||||||||||||
Liabilities: | ||||||||||||||||||||||
CLO notes | (4,301.5 | ) | — | — | (4,301.5 | ) | ||||||||||||||||
Total liabilities at fair value | (4,301.5 | ) | — | — | (4,301.5 | ) |
As of December 31, 2013 | As of December 31, 2014 | |||||||||||||||||||||
$ in millions | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||||||||
CLO collateral assets: | ||||||||||||||||||||||
Bank loans | 4,035.8 | — | 4,035.8 | — | 4,883.9 | — | 4,883.9 | — | ||||||||||||||
Bonds | 133.1 | — | 133.1 | — | 88.9 | — | 88.9 | — | ||||||||||||||
Equity securities | 14.1 | — | 14.1 | — | 6.4 | — | 6.4 | — | ||||||||||||||
Private equity fund assets: | ||||||||||||||||||||||
Equity securities | 106.0 | 47.3 | — | 58.7 | 337.9 | 9.7 | — | 328.2 | ||||||||||||||
Debt Securities | 35.7 | — | — | 35.7 | ||||||||||||||||||
Investments in other private equity funds | 442.2 | — | — | 442.2 | 410.0 | — | — | 410.0 | ||||||||||||||
Debt securities issued by the U.S. Treasury | 3.5 | 3.5 | — | — | ||||||||||||||||||
Total assets at fair value | 4,734.7 | 50.8 | 4,183.0 | 500.9 | 5,762.8 | 9.7 | 4,979.2 | 773.9 | ||||||||||||||
Liabilities: | ||||||||||||||||||||||
CLO notes | (4,181.7 | ) | — | — | (4,181.7 | ) | (5,149.6 | ) | — | — | (5,149.6 | ) | ||||||||||
Total liabilities at fair value | (4,181.7 | ) | — | — | (4,181.7 | ) | (5,149.6 | ) | — | — | (5,149.6 | ) |
Three months ended June 30, 2014 | Six months ended June 30, 2014 | Three months ended June 30, 2015 | Six months ended June 30, 2015 | |||||||||||||||||||
$ in millions | Level 3 Assets | Level 3 Liabilities | Level 3 Assets | Level 3 Liabilities | Level 3 Assets | Level 3 Liabilities | Level 3 Assets | Level 3 Liabilities | ||||||||||||||
Beginning balance | 560.7 | (4,762.7 | ) | 500.9 | (4,181.7 | ) | 759.0 | — | 773.9 | (5,149.6 | ) | |||||||||||
Adjustment for adoption of ASU 2014-13 | — | — | — | 5,149.6 | ||||||||||||||||||
Purchases | 96.9 | — | 139.6 | — | 0.5 | — | 34.1 | — | ||||||||||||||
Sales | (18.9 | ) | — | (50.4 | ) | — | (35.1 | ) | — | (96.9 | ) | — | ||||||||||
Issuances | — | — | 1.8 | (714.1 | ) | — | — | — | — | |||||||||||||
Settlements | — | 136.3 | — | 297.7 | — | — | — | — | ||||||||||||||
Deconsolidation of CIP | — | 339.0 | — | 339.0 | ||||||||||||||||||
Gains and losses included in the Condensed Consolidated Statements of Income* | 52.4 | (14.1 | ) | 99.2 | (42.4 | ) | (12.7 | ) | — | 9.0 | — | |||||||||||
Transfers to Levels 1 and 2** | — | — | (8.4 | ) | — | |||||||||||||||||
Ending balance | 691.1 | (4,301.5 | ) | 691.1 | (4,301.5 | ) | 711.7 | — | 711.7 | — |
Three months ended June 30, 2013 | Six months ended June 30, 2013 | Three months ended June 30, 2014 | Six months ended June 30, 2014 | |||||||||||||||||||
$ in millions | Level 3 Assets | Level 3 Liabilities | Level 3 Assets | Level 3 Liabilities | Level 3 Assets | Level 3 Liabilities | Level 3 Assets | Level 3 Liabilities | ||||||||||||||
Beginning balance | 535.1 | (4,221.4 | ) | 602.9 | (3,899.4 | ) | 560.7 | (4,762.7 | ) | 500.9 | (4,181.7 | ) | ||||||||||
Purchases | 1.6 | — | 13.3 | — | 96.9 | — | 139.6 | — | ||||||||||||||
Sales | (29.1 | ) | — | (91.1 | ) | — | (18.9 | ) | — | (50.4 | ) | — | ||||||||||
Issuances | 3.8 | — | 3.8 | (405.0 | ) | — | — | 1.8 | (714.1 | ) | ||||||||||||
Settlements | — | 208.9 | — | 361.7 | — | 136.3 | — | 297.7 | ||||||||||||||
Deconsolidation of CIP | (0.1 | ) | — | (18.4 | ) | — | — | 339.0 | — | 339.0 | ||||||||||||
Gains and losses included in the Condensed Consolidated Statements of Income* | 3.2 | (32.5 | ) | 4.4 | (101.5 | ) | 52.4 | (14.1 | ) | 99.2 | (42.4 | ) | ||||||||||
Transfers to Level 2** | (6.1 | ) | — | (6.1 | ) | — | ||||||||||||||||
Foreign exchange | (0.1 | ) | 0.7 | (0.5 | ) | (0.1 | ) | |||||||||||||||
Ending balance | 508.3 | (4,044.3 | ) | 508.3 | (4,044.3 | ) | 691.1 | (4,301.5 | ) | 691.1 | (4,301.5 | ) |
* | Included in gains/(losses) of CIP, net in the Condensed Consolidated Statements of Income for the three and six months ended June 30, |
** | During the six months ended June 30, |
Assets and Liabilities * | Fair Value at June 30, 2015 ($ in millions) | Valuation Technique | Unobservable Inputs | Range | Weighted Average (by fair value) | |||||
Private Equity Funds --Equity Securities | 256.1 | Market Comparable | Revenue Multiple | 2 - 4x | 3.1x | |||||
Discount | 25% | 25.0% | ||||||||
Published valuation and/or broker quotes for similar types of assets | $26-100 million | $49.3 million |
Assets and Liabilities * | Fair Value at ($ in millions) | Valuation Technique | Unobservable Inputs | Range | Weighted Average (by fair value) | |||||
Private Equity Funds --Equity Securities | Market Comparable | Revenue Multiple | ||||||||
Discount | 25% - 36% | 30.9% | ||||||||
Published valuation and/or broker quotes for similar types of assets | $27-104 million | $45.9 million | ||||||||
CLO | Discounted Cash Flow- USD | Assumed Default Rate*** | <1yr: | |||||||
Spread over Libor ** |
* | Excluded from the table above are certain equity and debt securities held by consolidated private equity funds valued using recent private market transactions |
** | Lower spreads relate to the more senior tranches in the CLO note structure; higher spreads relate to the less senior tranches. |
*** | Assumed default rates listed in the table above apply to CLOs established prior to 2012. A default rate of |
June 30, 2014 | December 31, 2013 | June 30, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
in millions, except term data | Fair Value | Total Unfunded Commitments | Weighted Average Remaining Term (2) | Fair Value | Total Unfunded Commitments | Weighted Average Remaining Term (2) | Fair Value | Total Unfunded Commitments | Weighted Average Remaining Term (2) | Fair Value | Total Unfunded Commitments | Weighted Average Remaining Term (2) | ||||||||||||||||||||
Private equity fund of funds (1) | $464.0 | $196.8 | 2.0 years | $426.3 | $71.6 | 2.6 years | ||||||||||||||||||||||||||
Private equity funds (1) | $159.8 | $501.7 | 9.0 years | $15.9 | $80.6 | 8.5 years | $403.6 | $201.9 | 2.4 years | $410.0 | $196.3 | 2.6 years |
(1) | These investments are not subject to redemption; however, for certain funds, the investors may sell or transfer their interest, which may require approval by the general partner of the underlying funds. |
(2) | These investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over the weighted average periods indicated. |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||
$ in millions | 2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Affiliated operating revenues: | ||||||||||||||||||||||
Investment management fees | 922.7 | 785.8 | 1,779.0 | 1,531.8 | 927.7 | 922.7 | 1,809.1 | 1,779.0 | ||||||||||||||
Service and distribution fees | 211.3 | 211.6 | 446.7 | 413.3 | 219.6 | 211.3 | 431.6 | 446.7 | ||||||||||||||
Performance fees | 2.2 | 2.5 | 28.1 | 34.0 | 1.5 | 2.2 | 12.3 | 28.1 | ||||||||||||||
Other | 28.3 | 27.7 | 61.3 | 52.8 | 30.4 | 28.3 | 58.0 | 61.3 | ||||||||||||||
Total affiliated operating revenues | 1,164.5 | 1,027.6 | 2,315.1 | 2,031.9 | 1,179.2 | 1,164.5 | 2,311.0 | 2,315.1 |
$ in millions | June 30, 2014 | December 31, 2013 | June 30, 2015 | December 31, 2014 | ||||||
Affiliated asset balances: | ||||||||||
Cash and cash equivalents | 408.5 | 447.8 | 253.5 | 474.9 | ||||||
Unsettled fund receivables | 273.9 | 315.5 | 470.1 | 254.2 | ||||||
Accounts receivable | 304.9 | 298.5 | 332.1 | 332.9 | ||||||
Investments | 878.4 | 789.8 | 912.5 | 848.8 | ||||||
Assets held for policyholders | 1,539.4 | 1,415.7 | 3,458.2 | 1,697.5 | ||||||
Other assets | 5.5 | 5.4 | 4.9 | 7.9 | ||||||
Total affiliated asset balances | 3,410.6 | 3,272.7 | 5,431.3 | 3,616.2 | ||||||
Affiliated liability balances: | ||||||||||
Accrued compensation and benefits | 128.2 | 151.6 | 120.4 | 138.8 | ||||||
Accounts payable and accrued expenses | 19.5 | 19.5 | 66.5 | 61.9 | ||||||
Unsettled fund payables | 504.0 | 389.9 | 505.0 | 322.1 | ||||||
Total affiliated liability balances | 651.7 | 561.0 | 691.9 | 522.8 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
$ in millions | 2014 | 2013 | 2014 | 2013 | |||||||
Income (loss) from discontinued operations before income taxes | 0.3 | (7.2 | ) | (2.8 | ) | (0.8 | ) | ||||
Income tax (provision) benefit | (0.1 | ) | 2.6 | 1.0 | 0.3 | ||||||
Income (loss) from discontinued operations, net of taxes | 0.2 | (4.6 | ) | (1.8 | ) | (0.5 | ) |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||
Equity Index | 2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
S&P 500 | 4.7 | % | 2.4 | % | 6.5 | % | 12.6 | % | (0.2 | )% | 4.7 | % | 0.2 | % | 6.5 | % | ||||||
FTSE 100 | 2.2 | % | (3.1 | )% | (0.1 | )% | 5.4 | % | (3.7 | )% | 2.2 | % | (0.7 | )% | (0.1 | )% | ||||||
Nikkei 225 | 2.3 | % | 10.3 | % | (6.9 | )% | 31.6 | % | 5.4 | % | 2.3 | % | 16.0 | % | (6.9 | )% | ||||||
MSCI Emerging Markets | 5.6 | % | (9.1 | )% | 4.8 | % | (10.9 | )% | (0.2 | )% | 5.6 | % | 1.7 | % | 4.8 | % | ||||||
Bond Index | ||||||||||||||||||||||
Barclays U.S. Aggregate Bond | 2.0 | % | (2.3 | )% | 3.9 | % | (2.4 | )% | (1.7 | )% | 2.0 | % | (0.1 | )% | 3.9 | % |
$ in millions, other than per share amounts, operating margins, ratios and AUM | Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
U.S. GAAP Financial Measures Summary (1) | 2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Operating revenues | 1,289.9 | 1,135.5 | 2,559.4 | 2,247.7 | 1,318.1 | 1,289.9 | 2,609.7 | 2,559.4 | ||||||||||||||
Operating income | 354.8 | 273.9 | 599.1 | 540.9 | 364.0 | 354.8 | 702.1 | 599.1 | ||||||||||||||
Operating margin | 27.5 | % | 24.1 | % | 23.4 | % | 24.1 | % | 27.6 | % | 27.5 | % | 26.9 | % | 23.4 | % | ||||||
Net income attributable to common shareholders | 274.5 | 202.6 | 462.3 | 424.8 | ||||||||||||||||||
Net income attributable to Invesco Ltd. | 257.3 | 274.5 | 516.9 | 462.3 | ||||||||||||||||||
Diluted EPS | 0.63 | 0.45 | 1.06 | 0.94 | 0.60 | 0.63 | 1.20 | 1.06 | ||||||||||||||
Debt/equity ratio including CIP (%) | 63.2 | % | 62.7 | % | 63.2 | % | 62.7 | % | 77.4 | % | 63.2 | % | 77.4 | % | 63.2 | % | ||||||
Non-GAAP Financial Measures Summary | ||||||||||||||||||||||
Net revenues (2) | 901.0 | 790.3 | 1,788.8 | 1,578.3 | 936.6 | 901.0 | 1,854.1 | 1,788.8 | ||||||||||||||
Adjusted operating income (3) | 377.0 | 310.6 | 740.0 | 616.8 | 390.2 | 377.0 | 764.5 | 740.0 | ||||||||||||||
Adjusted operating margin (3) | 41.8 | % | 39.3 | % | 41.4 | % | 39.1 | % | 41.7 | % | 41.8 | % | 41.2 | % | 41.4 | % | ||||||
Adjusted net income attributable to common shareholders (4) | 282.4 | 223.7 | 544.0 | 449.2 | ||||||||||||||||||
Adjusted net income attributable to Invesco Ltd. (4) | 271.4 | 282.4 | 543.5 | 544.0 | ||||||||||||||||||
Adjusted diluted EPS (4) | 0.65 | 0.50 | 1.25 | 1.00 | 0.63 | 0.65 | 1.26 | 1.25 | ||||||||||||||
Debt/equity ratio excluding CIP (%) (5) | 18.7 | % | 17.9 | % | 18.7 | % | 17.9 | % | 19.1 | % | 18.7 | % | 19.1 | % | 18.7 | % | ||||||
Assets Under Management | ||||||||||||||||||||||
Ending AUM (billions) | 802.4 | 705.6 | 802.4 | 705.6 | 803.6 | 802.4 | 803.6 | 802.4 | ||||||||||||||
Average AUM (billions) | 790.1 | 719.8 | 784.9 | 705.7 | 810.9 | 790.1 | 803.2 | 784.9 |
(1) | On December 31, 2013, the company completed the sale of Atlantic Trust. The company has adopted a discontinued operations presentation for the disposed business. Amounts presented represent continuing operations and exclude Atlantic Trust, with the exception of net income attributable to |
(2) | Net revenues is a non-GAAP financial measure. Net revenues are operating revenues plus our proportional share of the net revenues of our joint venture investments, less third-party distribution, service and advisory expenses, plus management and performance fees earned from CIP, less other revenue recorded by |
(3) | Adjusted operating income and adjusted operating margin are non-GAAP financial measures. Adjusted operating margin is adjusted operating income divided by net revenues. Adjusted operating income includes operating income plus our proportional share of the net operating income of our joint venture investments, the operating income impact of the consolidation of investment products, acquisition/disposition-related adjustments, compensation expense related to market valuation changes in deferred compensation plans, and other reconciling items. See "Schedule of Non-GAAP Information," for the reconciliation of operating income to adjusted operating income. |
(4) | Adjusted net income attributable to |
(5) | The debt-to-equity ratio excluding CIP is a non-GAAP financial measure. See the "Liquidity and Capital Resources" section for a recalculation of this ratio and other important disclosures. |
Benchmark Comparison | Peer Group Comparison | Benchmark Comparison | Peer Group Comparison | |||||||||||||||||||||||
% of AUM Ahead of Benchmark | % of AUM In Top Half of Peer Group | % of AUM Ahead of Benchmark | % of AUM In Top Half of Peer Group | |||||||||||||||||||||||
1yr | 3yr | 5yr | 1yr | 3yr | 5yr | 1yr | 3yr | 5yr | 1yr | 3yr | 5yr | |||||||||||||||
Equities | ||||||||||||||||||||||||||
U.S. Core | 34 | % | 40 | % | 24 | % | 30 | % | 42 | % | 39 | % | 15 | % | 33 | % | 36 | % | 15 | % | 21 | % | 32 | % | ||
U.S. Growth | 95 | % | 24 | % | 24 | % | 95 | % | 24 | % | 73 | % | 52 | % | 100 | % | 26 | % | 53 | % | 52 | % | 26 | % | ||
U.S. Value | 54 | % | 57 | % | 54 | % | 45 | % | 57 | % | 79 | % | 98 | % | 98 | % | 77 | % | 60 | % | 77 | % | 77 | % | ||
Sector Funds | 81 | % | 55 | % | 64 | % | 35 | % | 21 | % | 50 | % | 68 | % | 81 | % | 74 | % | 8 | % | 10 | % | 10 | % | ||
U.K. | 94 | % | 100 | % | 98 | % | 98 | % | 98 | % | 98 | % | 100 | % | 100 | % | 100 | % | 99 | % | 100 | % | 98 | % | ||
Canadian | 70 | % | 100 | % | 100 | % | 80 | % | 100 | % | 100 | % | 17 | % | 55 | % | 52 | % | 20 | % | 38 | % | 52 | % | ||
Asian | 79 | % | 86 | % | 84 | % | 68 | % | 75 | % | 72 | % | 21 | % | 95 | % | 86 | % | 28 | % | 76 | % | 70 | % | ||
European | 95 | % | 100 | % | 100 | % | 65 | % | 99 | % | 92 | % | 97 | % | 98 | % | 100 | % | 88 | % | 91 | % | 100 | % | ||
Global | 67 | % | 87 | % | 82 | % | 81 | % | 92 | % | 87 | % | 44 | % | 74 | % | 86 | % | 68 | % | 82 | % | 85 | % | ||
Global Ex U.S. and Emerging Markets | 80 | % | 99 | % | 99 | % | 82 | % | 96 | % | 97 | % | 86 | % | 86 | % | 99 | % | 8 | % | 7 | % | 87 | % | ||
Fixed Income | ||||||||||||||||||||||||||
Money Market | 65 | % | 65 | % | 35 | % | 95 | % | 95 | % | 96 | % | 70 | % | 70 | % | 70 | % | 92 | % | 93 | % | 94 | % | ||
U.S. Fixed Income | 86 | % | 89 | % | 100 | % | 69 | % | 95 | % | 95 | % | 92 | % | 92 | % | 92 | % | 79 | % | 81 | % | 96 | % | ||
Global Fixed Income | 89 | % | 87 | % | 98 | % | 86 | % | 87 | % | 84 | % | 55 | % | 96 | % | 96 | % | 52 | % | 91 | % | 66 | % | ||
Stable Value | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||
Other | ||||||||||||||||||||||||||
Alternatives | 40 | % | 64 | % | 24 | % | 32 | % | 54 | % | 28 | % | 72 | % | 47 | % | 57 | % | 49 | % | 62 | % | 60 | % | ||
Balanced | 44 | % | 73 | % | 70 | % | 70 | % | 98 | % | 70 | % | 71 | % | 43 | % | 45 | % | 89 | % | 90 | % | 99 | % |
(1) | AUM measured in the one-, three-, and five-year peer group rankings represents |
For the three months ended June 30, | For the three months ended June 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2015 | 2014 | |||||||||||||||||||||||||||||||
$ in billions | Total AUM | Active | Passive | Total AUM | Active | Passive | Total AUM | Active | Passive | Total AUM | Active | Passive | ||||||||||||||||||||||
March 31 | 787.3 | 644.4 | 142.9 | 707.7 | 584.6 | 123.1 | 798.3 | 655.3 | 143.0 | 787.3 | 644.4 | 142.9 | ||||||||||||||||||||||
Long-term inflows | 42.5 | 36.1 | 6.4 | 44.4 | 32.6 | 11.8 | 52.1 | 43.1 | 9.0 | 42.5 | 36.1 | 6.4 | ||||||||||||||||||||||
Long-term outflows | (49.4 | ) | (44.1 | ) | (5.3 | ) | (43.0 | ) | (32.5 | ) | (10.5 | ) | (46.2 | ) | (37.7 | ) | (8.5 | ) | (49.4 | ) | (44.1 | ) | (5.3 | ) | ||||||||||
Long-term net flows | (6.9 | ) | (8.0 | ) | 1.1 | 1.4 | 0.1 | 1.3 | 5.9 | 5.4 | 0.5 | (6.9 | ) | (8.0 | ) | 1.1 | ||||||||||||||||||
Net flows in Invesco Powershares QQQ fund | (3.0 | ) | — | (3.0 | ) | 0.7 | — | 0.7 | (0.3 | ) | — | (0.3 | ) | (3.0 | ) | — | (3.0 | ) | ||||||||||||||||
Net flows in institutional money market funds | 1.1 | 1.1 | — | (0.7 | ) | (0.7 | ) | — | (2.6 | ) | (2.6 | ) | — | 1.1 | 1.1 | — | ||||||||||||||||||
Total net flows | (8.8 | ) | (6.9 | ) | (1.9 | ) | 1.4 | (0.6 | ) | 2.0 | 3.0 | 2.8 | 0.2 | (8.8 | ) | (6.9 | ) | (1.9 | ) | |||||||||||||||
Market gains and losses/reinvestment | 19.9 | 15.1 | 4.8 | (1.3 | ) | (0.3 | ) | (1.0 | ) | (6.2 | ) | (4.6 | ) | (1.6 | ) | 19.9 | 15.1 | 4.8 | ||||||||||||||||
Acquisitions/dispositions, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Foreign currency translation | 4.0 | 4.0 | — | (2.2 | ) | (1.8 | ) | (0.4 | ) | 8.5 | 8.5 | — | 4.0 | 4.0 | — | |||||||||||||||||||
June 30 | 802.4 | 656.6 | 145.8 | 705.6 | 581.9 | 123.7 | 803.6 | 662.0 | 141.6 | 802.4 | 656.6 | 145.8 | ||||||||||||||||||||||
Average AUM | ||||||||||||||||||||||||||||||||||
Average long-term AUM | 674.7 | 574.9 | 99.8 | 609.1 | 517.1 | 92.0 | 706.1 | 601.2 | 104.9 | 674.7 | 574.9 | 99.8 | ||||||||||||||||||||||
Average short-term AUM | 115.4 | 73.3 | 42.1 | 110.7 | 76.8 | 33.9 | ||||||||||||||||||||||||||||
Average AUM | 790.1 | 648.2 | 141.9 | 719.8 | 593.9 | 125.9 | 810.9 | 666.7 | 144.2 | 790.1 | 648.2 | 141.9 | ||||||||||||||||||||||
Revenue yield | ||||||||||||||||||||||||||||||||||
Gross revenue yield on AUM (1) | 65.7 | 77.3 | 13.2 | 63.4 | 74.5 | 11.6 | 65.6 | 76.6 | 15.3 | 65.7 | 77.3 | 13.2 | ||||||||||||||||||||||
Gross revenue yield on AUM before performance fees (1) | 65.4 | 77.0 | 13.2 | 63.1 | 74.1 | 11.6 | 65.2 | 76.2 | 15.3 | 65.4 | 77.0 | 13.2 | ||||||||||||||||||||||
Net revenue yield on AUM (2) | 45.6 | 52.7 | 13.2 | 43.9 | 50.8 | 11.6 | 46.2 | 52.9 | 15.3 | 45.6 | 52.7 | 13.2 | ||||||||||||||||||||||
Net revenue yield on AUM before performance fees (2) | 45.2 | 52.3 | 13.2 | 43.4 | 50.2 | 11.6 | 45.6 | 52.1 | 15.3 | 45.2 | 52.3 | 13.2 |
For the six months ended June 30, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
$ in billions | Total AUM | Active | Passive | Total AUM | Active | Passive | |||||||||||
January 1 | 792.4 | 651.0 | 141.4 | 778.7 | 639.0 | 139.7 | |||||||||||
Long-term inflows | 102.6 | 83.7 | 18.9 | 92.7 | 77.7 | 15.0 | |||||||||||
Long-term outflows | (86.4 | ) | (71.5 | ) | (14.9 | ) | (93.1 | ) | (82.5 | ) | (10.6 | ) | |||||
Long-term net flows | 16.2 | 12.2 | 4.0 | (0.4 | ) | (4.8 | ) | 4.4 | |||||||||
Net flows in Invesco Powershares QQQ fund | (2.9 | ) | — | (2.9 | ) | (4.3 | ) | — | (4.3 | ) | |||||||
Net flows in institutional money market funds | (8.6 | ) | (8.6 | ) | — | (5.0 | ) | (5.0 | ) | — | |||||||
Total net flows | 4.7 | 3.6 | 1.1 | (9.7 | ) | (9.8 | ) | 0.1 | |||||||||
Market gains and losses/reinvestment | 12.0 | 12.2 | (0.2 | ) | 29.3 | 23.3 | 6.0 | ||||||||||
Acquisitions/dispositions, net | (0.7 | ) | — | (0.7 | ) | — | — | — | |||||||||
Foreign currency translation | (4.8 | ) | (4.8 | ) | — | 4.1 | 4.1 | — | |||||||||
June 30 | 803.6 | 662.0 | 141.6 | 802.4 | 656.6 | 145.8 | |||||||||||
Average AUM | |||||||||||||||||
Average long-term AUM | 695.5 | 591.4 | 104.1 | 667.2 | 569.7 | 97.5 | |||||||||||
Average AUM | 803.2 | 659.7 | 143.5 | 784.9 | 643.6 | 141.3 | |||||||||||
Revenue yield | |||||||||||||||||
Gross revenue yield on AUM (1) | 65.5 | 76.7 | 14.3 | 65.6 | 77.3 | 13.0 | |||||||||||
Gross revenue yield on AUM before performance fees (1) | 64.1 | 75.1 | 14.3 | 64.7 | 76.1 | 13.0 | |||||||||||
Net revenue yield on AUM (2) | 46.2 | 53.1 | 14.3 | 45.6 | 52.7 | 13.0 | |||||||||||
Net revenue yield on AUM before performance fees (2) | 44.6 | 51.1 | 14.3 | 44.5 | 51.5 | 13.0 |
(1) | Gross revenue yield on AUM is equal to annualized total operating revenues divided by average AUM, excluding joint venture (JV) AUM. Our share of the average AUM in the three months ended June 30, |
(2) | Net revenue yield on AUM is equal to annualized net revenues divided by average AUM. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues. |
Foreign Exchange Rates | June 30, 2014 | March 31, 2014 | June 30, 2013 | March 31, 2013 | June 30, 2015 | March 31, 2015 | December 31, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | ||||||||||||||||||
Pound Sterling ($ per £) | 1.710 | 1.667 | 1.518 | 1.520 | 1.572 | 1.485 | 1.559 | 1.710 | 1.667 | 1.655 | ||||||||||||||||||
Canadian Dollar (CAD per $) | 1.066 | 1.104 | 1.054 | 1.018 | 1.247 | 1.267 | 1.158 | 1.066 | 1.104 | 1.063 | ||||||||||||||||||
Japan (¥ per $) | 101.310 | 102.980 | 99.320 | 94.160 | 122.145 | 119.905 | 119.880 | 101.310 | 102.980 | 105.080 | ||||||||||||||||||
Euro ($ per Euro) | 1.369 | 1.378 | 1.300 | 1.282 | 1.115 | 1.074 | 1.210 | 1.369 | 1.378 | 1.378 |
$ in billions | Total | Retail | Institutional | |||||
March 31, 2014 AUM | 787.3 | 534.6 | 252.7 | |||||
Long-term inflows | 42.5 | 36.3 | 6.2 | |||||
Long-term outflows | (49.4 | ) | (44.5 | ) | (4.9 | ) | ||
Long-term net flows | (6.9 | ) | (8.2 | ) | 1.3 | |||
Net flows in Invesco PowerShares QQQ fund | (3.0 | ) | (3.0 | ) | — | |||
Net flows in institutional money market funds | 1.1 | — | 1.1 | |||||
Total net flows | (8.8 | ) | (11.2 | ) | 2.4 | |||
Market gains and losses/reinvestment | 19.9 | 17.7 | 2.2 | |||||
Foreign currency translation | 4.0 | 3.7 | 0.3 | |||||
June 30, 2014 AUM | 802.4 | 544.8 | 257.6 | |||||
March 31, 2013 AUM | 707.7 | 454.9 | 252.8 | |||||
Long-term inflows | 44.4 | 37.7 | 6.7 | |||||
Long-term outflows | (43.0 | ) | (32.8 | ) | (10.2 | ) | ||
Long-term net flows | 1.4 | 4.9 | (3.5 | ) | ||||
Net flows in Invesco PowerShares QQQ fund | 0.7 | 0.7 | — | |||||
Net flows in institutional money market funds | (0.7 | ) | — | (0.7 | ) | |||
Total net flows | 1.4 | 5.6 | (4.2 | ) | ||||
Market gains and losses/reinvestment | (1.3 | ) | (1.6 | ) | 0.3 | |||
Foreign currency translation | (2.2 | ) | (1.2 | ) | (1.0 | ) | ||
June 30, 2013 AUM | 705.6 | 457.7 | 247.9 |
$ in billions | Total | Retail | Institutional | |||||
March 31, 2015 | 798.3 | 540.7 | 257.6 | |||||
Long-term inflows | 52.1 | 34.2 | 17.9 | |||||
Long-term outflows | (46.2 | ) | (34.7 | ) | (11.5 | ) | ||
Long-term net flows | 5.9 | (0.5 | ) | 6.4 | ||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | |||
Net flows in institutional money market funds | (2.6 | ) | — | (2.6 | ) | |||
Total net flows | 3.0 | (0.8 | ) | 3.8 | ||||
Market gains and losses/reinvestment | (6.2 | ) | (6.1 | ) | (0.1 | ) | ||
Acquisitions/dispositions, net | — | — | — | |||||
Foreign currency translation | 8.5 | 7.5 | 1.0 | |||||
June 30, 2015 | 803.6 | 541.3 | 262.3 | |||||
March 31, 2014 | 787.3 | 534.6 | 252.7 | |||||
Long-term inflows | 42.5 | 36.3 | 6.2 | |||||
Long-term outflows | (49.4 | ) | (44.5 | ) | (4.9 | ) | ||
Long-term net flows | (6.9 | ) | (8.2 | ) | 1.3 | |||
Net flows in Invesco PowerShares QQQ fund | (3.0 | ) | (3.0 | ) | — | |||
Net flows in institutional money market funds | 1.1 | — | 1.1 | |||||
Total net flows | (8.8 | ) | (11.2 | ) | 2.4 | |||
Market gains and losses/reinvestment | 19.9 | 17.7 | 2.2 | |||||
Foreign currency translation | 4.0 | 3.7 | 0.3 | |||||
June 30, 2014 | 802.4 | 544.8 | 257.6 |
$ in billions | Total | Retail | Institutional | |||||
December 31, 2014 | 792.4 | 532.5 | 259.9 | |||||
Long-term inflows | 102.6 | 74.5 | 28.1 | |||||
Long-term outflows | (86.4 | ) | (67.5 | ) | (18.9 | ) | ||
Long-term net flows | 16.2 | 7.0 | 9.2 | |||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | |||
Net flows in institutional money market funds | (8.6 | ) | — | (8.6 | ) | |||
Total net flows | 4.7 | 4.1 | 0.6 | |||||
Market gains and losses/reinvestment | 12.0 | 8.8 | 3.2 | |||||
Acquisitions/dispositions, net (6) | (0.7 | ) | (0.7 | ) | — | |||
Foreign currency translation | (4.8 | ) | (3.4 | ) | (1.4 | ) | ||
June 30, 2015 | 803.6 | 541.3 | 262.3 | |||||
December 31, 2013 | 778.7 | 519.6 | 259.1 | |||||
Long-term inflows | 92.7 | 75.9 | 16.8 | |||||
Long-term outflows | (93.1 | ) | (76.5 | ) | (16.6 | ) | ||
Long-term net flows | (0.4 | ) | (0.6 | ) | 0.2 | |||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | |||
Net flows in institutional money market funds | (5.0 | ) | — | (5.0 | ) | |||
Total net flows | (9.7 | ) | (4.9 | ) | (4.8 | ) | ||
Market gains and losses/reinvestment | 29.3 | 26.5 | 2.8 | |||||
Foreign currency translation | 4.1 | 3.6 | 0.5 | |||||
June 30, 2014 | 802.4 | 544.8 | 257.6 |
$ in billions | Total | Retail | Institutional | |||||
March 31, 2015 | 143.0 | 120.8 | 22.2 | |||||
Long-term inflows | 9.0 | 7.6 | 1.4 | |||||
Long-term outflows | (8.5 | ) | (7.6 | ) | (0.9 | ) | ||
Long-term net flows | 0.5 | — | 0.5 | |||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | |||
Net flows in institutional money market funds | — | — | — | |||||
Total net flows | 0.2 | (0.3 | ) | 0.5 | ||||
Market gains and losses/reinvestment | (1.6 | ) | (0.8 | ) | (0.8 | ) | ||
Acquisitions/dispositions, net | — | — | — | |||||
Foreign currency translation | — | — | — | |||||
June 30, 2015 | 141.6 | 119.7 | 21.9 | |||||
March 31, 2014 | 142.9 | 121.5 | 21.4 | |||||
Long-term inflows | 6.4 | 5.6 | 0.8 | |||||
Long-term outflows | (5.3 | ) | (5.0 | ) | (0.3 | ) | ||
Long-term net flows | 1.1 | 0.6 | 0.5 | |||||
Net flows in Invesco PowerShares QQQ fund | (3.0 | ) | (3.0 | ) | — | |||
Net flows in institutional money market funds | — | — | — | |||||
Total net flows | (1.9 | ) | (2.4 | ) | 0.5 | |||
Market gains and losses/reinvestment | 4.8 | 4.8 | — | |||||
Foreign currency translation | — | — | — | |||||
June 30, 2014 | 145.8 | 123.9 | 21.9 |
$ in billions | Total | Retail | Institutional | |||||
December 31, 2014 | 141.4 | 119.7 | 21.7 | |||||
Long-term inflows | 18.9 | 16.5 | 2.4 | |||||
Long-term outflows | (14.9 | ) | (13.4 | ) | (1.5 | ) | ||
Long-term net flows | 4.0 | 3.1 | 0.9 | |||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | |||
Net flows in institutional money market funds | — | — | — | |||||
Total net flows | 1.1 | 0.2 | 0.9 | |||||
Market gains and losses/reinvestment | (0.2 | ) | 0.5 | (0.7 | ) | |||
Acquisitions/dispositions, net | (0.7 | ) | (0.7 | ) | — | |||
Foreign currency translation | — | — | — | |||||
June 30, 2015 | 141.6 | 119.7 | 21.9 | |||||
December 31, 2013 | 139.7 | 118.2 | 21.5 | |||||
Long-term inflows | 15.0 | 13.5 | 1.5 | |||||
Long-term outflows | (10.6 | ) | (9.5 | ) | (1.1 | ) | ||
Long-term net flows | 4.4 | 4.0 | 0.4 | |||||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | |||
Net flows in institutional money market funds | — | — | — | |||||
Total net flows | 0.1 | (0.3 | ) | 0.4 | ||||
Market gains and losses/reinvestment | 6.0 | 6.0 | — | |||||
Foreign currency translation | — | — | — | |||||
June 30, 2014 | 145.8 | 123.9 | 21.9 |
$ in billions | Total | Retail | Institutional | |||||
March 31, 2014 AUM | 142.9 | 121.5 | 21.4 | |||||
Long-term inflows | 6.4 | 5.6 | 0.8 | |||||
Long-term outflows | (5.3 | ) | (5.0 | ) | (0.3 | ) | ||
Long-term net flows | 1.1 | 0.6 | 0.5 | |||||
Net flows in Invesco PowerShares QQQ fund | (3.0 | ) | (3.0 | ) | — | |||
Net flows in institutional money market funds | — | — | — | |||||
Total net flows | (1.9 | ) | (2.4 | ) | 0.5 | |||
Market gains and losses/reinvestment | 4.8 | 4.8 | — | |||||
Foreign currency translation | — | — | — | |||||
June 30, 2014 AUM | 145.8 | 123.9 | 21.9 | |||||
March 31, 2013 AUM | 123.1 | 98.5 | 24.6 | |||||
Long-term inflows | 11.8 | 10.1 | 1.7 | |||||
Long-term outflows | (10.5 | ) | (8.2 | ) | (2.3 | ) | ||
Long-term net flows | 1.3 | 1.9 | (0.6 | ) | ||||
Net flows in Invesco PowerShares QQQ fund | 0.7 | 0.7 | — | |||||
Net flows in institutional money market funds | — | — | — | |||||
Total net flows | 2.0 | 2.6 | (0.6 | ) | ||||
Market gains and losses/reinvestment | (1.0 | ) | (1.1 | ) | 0.1 | |||
Foreign currency translation | (0.4 | ) | — | (0.4 | ) | |||
June 30, 2013 AUM | 123.7 | 100.0 | 23.7 |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
March 31, 2015 | 798.3 | 392.8 | 184.4 | 50.6 | 70.2 | 100.3 | |||||||||||
Long-term inflows | 52.1 | 23.8 | 13.2 | 6.0 | 1.0 | 8.1 | |||||||||||
Long-term outflows | (46.2 | ) | (26.4 | ) | (8.7 | ) | (3.1 | ) | (1.0 | ) | (7.0 | ) | |||||
Long-term net flows | 5.9 | (2.6 | ) | 4.5 | 2.9 | — | 1.1 | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (2.6 | ) | — | — | — | (2.6 | ) | — | |||||||||
Total net flows | 3.0 | (2.9 | ) | 4.5 | 2.9 | (2.6 | ) | 1.1 | |||||||||
Market gains and losses/reinvestment | (6.2 | ) | (0.3 | ) | (3.0 | ) | (1.2 | ) | 0.3 | (2.0 | ) | ||||||
Acquisitions/dispositions, net | — | — | — | — | — | — | |||||||||||
Foreign currency translation | 8.5 | 5.1 | 1.6 | 1.3 | — | 0.5 | |||||||||||
June 30, 2015 | 803.6 | 394.7 | 187.5 | 53.6 | 67.9 | (4) | 99.9 | ||||||||||
Average AUM | 810.9 | 403.7 | 184.7 | 53.3 | 69.5 | 99.7 | |||||||||||
% of total average AUM | 100.0 | % | 49.8 | % | 22.8 | % | 6.6 | % | 8.6 | % | 12.3 | % | |||||
March 31, 2014 | 787.3 | 388.0 | 177.0 | 54.6 | 76.1 | 91.6 | |||||||||||
Long-term inflows | 42.5 | 21.4 | 8.4 | 4.3 | 0.6 | 7.8 | |||||||||||
Long-term outflows | (49.4 | ) | (29.3 | ) | (6.2 | ) | (8.4 | ) | (0.7 | ) | (4.8 | ) | |||||
Long-term net flows | (6.9 | ) | (7.9 | ) | 2.2 | (4.1 | ) | (0.1 | ) | 3.0 | |||||||
Net flows in Invesco PowerShares QQQ fund | (3.0 | ) | (3.0 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | 1.1 | — | — | — | 1.1 | — | |||||||||||
Total net flows | (8.8 | ) | (10.9 | ) | 2.2 | (4.1 | ) | 1.0 | 3.0 | ||||||||
Market gains and losses/reinvestment | 19.9 | 14.4 | 2.1 | 1.5 | — | 1.9 | |||||||||||
Foreign currency translation | 4.0 | 2.7 | 0.6 | 0.6 | — | 0.1 | |||||||||||
June 30, 2014 | 802.4 | 394.2 | 181.9 | 52.6 | 77.1 | (4) | 96.6 | ||||||||||
Average AUM | 790.1 | 385.9 | 179.7 | 52.2 | 77.3 | 95.0 | |||||||||||
% of total average AUM | 100.0 | % | 48.8 | % | 22.7 | % | 6.6 | % | 9.8 | % | 12.0 | % |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
March 31, 2014 AUM | 787.3 | 388.0 | 177.0 | 54.6 | 76.1 | 91.6 | |||||||||||
Long-term inflows | 42.5 | 21.4 | 8.4 | 4.3 | 0.6 | 7.8 | |||||||||||
Long-term outflows | (49.4 | ) | (29.3 | ) | (6.2 | ) | (8.4 | ) | (0.7 | ) | (4.8 | ) | |||||
Long-term net flows | (6.9 | ) | (7.9 | ) | 2.2 | (4.1 | ) | (0.1 | ) | 3.0 | |||||||
Net flows in Invesco PowerShares QQQ fund | (3.0 | ) | (3.0 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | 1.1 | — | — | — | 1.1 | — | |||||||||||
Total net flows | (8.8 | ) | (10.9 | ) | 2.2 | (4.1 | ) | 1.0 | 3.0 | ||||||||
Market gains and losses/reinvestment | 19.9 | 14.4 | 2.1 | 1.5 | — | 1.9 | |||||||||||
Foreign currency translation | 4.0 | 2.7 | 0.6 | 0.6 | — | 0.1 | |||||||||||
June 30, 2014 AUM | 802.4 | 394.2 | 181.9 | 52.6 | 77.1 | (4) | 96.6 | ||||||||||
Average AUM | 790.1 | 385.9 | 179.7 | 52.2 | 77.3 | 95.0 | |||||||||||
% of total average AUM | 100.0 | % | 48.8 | % | 22.7 | % | 6.6 | % | 9.8 | % | 12.0 | % | |||||
March 31, 2013 AUM | 707.7 | 319.1 | 175.9 | 49.3 | 77.8 | 85.6 | |||||||||||
Long-term inflows | 44.4 | 21.0 | 9.6 | 5.6 | 1.2 | 7.0 | |||||||||||
Long-term outflows | (43.0 | ) | (22.4 | ) | (9.5 | ) | (3.5 | ) | (0.7 | ) | (6.9 | ) | |||||
Long-term net flows | 1.4 | (1.4 | ) | 0.1 | 2.1 | 0.5 | 0.1 | ||||||||||
Net flows in Invesco PowerShares QQQ fund | 0.7 | 0.7 | — | — | — | — | |||||||||||
Net flows in institutional money market funds | (0.7 | ) | — | — | — | (0.7 | ) | — | |||||||||
Total net flows | 1.4 | (0.7 | ) | 0.1 | 2.1 | (0.2 | ) | 0.1 | |||||||||
Market gains and losses/reinvestment | (1.3 | ) | 4.3 | (2.7 | ) | (1.5 | ) | 0.2 | (1.6 | ) | |||||||
Foreign currency translation | (2.2 | ) | (1.3 | ) | (0.2 | ) | (0.2 | ) | — | (0.5 | ) | ||||||
June 30, 2013 AUM | 705.6 | 321.4 | 173.1 | 49.7 | 77.8 | 83.6 | |||||||||||
Average AUM | 719.8 | 324.4 | 177.4 | 51.3 | 81.3 | 85.4 | |||||||||||
% of total average AUM | 100.0 | % | 45.1 | % | 24.6 | % | 7.1 | % | 11.3 | % | 11.9 | % |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
December 31, 2014 | 792.4 | 384.4 | 181.6 | 50.6 | 76.5 | 99.3 | |||||||||||
Long-term inflows | 102.6 | 48.3 | 24.0 | 10.1 | 1.7 | 18.5 | |||||||||||
Long-term outflows | (86.4 | ) | (47.9 | ) | (15.9 | ) | (6.3 | ) | (1.9 | ) | (14.4 | ) | |||||
Long-term net flows | 16.2 | 0.4 | 8.1 | 3.8 | (0.2 | ) | 4.1 | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (8.6 | ) | — | — | — | (8.6 | ) | — | |||||||||
Total net flows | 4.7 | (2.5 | ) | 8.1 | 3.8 | (8.8 | ) | 4.1 | |||||||||
Market gains and losses/reinvestment | 12.0 | 14.6 | (1.4 | ) | 0.7 | 0.2 | (2.1 | ) | |||||||||
Acquisitions/dispositions, net (6) | (0.7 | ) | — | — | — | — | (0.7 | ) | |||||||||
Foreign currency translation | (4.8 | ) | (1.8 | ) | (0.8 | ) | (1.5 | ) | — | (0.7 | ) | ||||||
June 30, 2015 | 803.6 | 394.7 | 187.5 | 53.6 | 67.9 | (4) | 99.9 | ||||||||||
Average AUM | 803.2 | 395.9 | 183.8 | 51.5 | 72.3 | 99.7 | |||||||||||
% of total average AUM | 100.0 | % | 49.3 | % | 22.9 | % | 6.4 | % | 9.0 | % | 12.4 | % | |||||
December 31, 2013 | 778.7 | 383.1 | 171.7 | 53.3 | 82.7 | 87.9 | |||||||||||
Long-term inflows | 92.7 | 48.8 | 18.0 | 9.3 | 1.4 | 15.2 | |||||||||||
Long-term outflows | (93.1 | ) | (55.5 | ) | (12.9 | ) | (12.8 | ) | (1.7 | ) | (10.2 | ) | |||||
Long-term net flows | (0.4 | ) | (6.7 | ) | 5.1 | (3.5 | ) | (0.3 | ) | 5.0 | |||||||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (5.0 | ) | — | — | — | (5.0 | ) | — | |||||||||
Total net flows | (9.7 | ) | (11.0 | ) | 5.1 | (3.5 | ) | (5.3 | ) | 5.0 | |||||||
Market gains and losses/reinvestment | 29.3 | 19.4 | 4.4 | 2.3 | (0.3 | ) | 3.5 | ||||||||||
Foreign currency translation | 4.1 | 2.7 | 0.7 | 0.5 | — | 0.2 | |||||||||||
June 30, 2014 | 802.4 | 394.2 | 181.9 | 52.6 | 77.1 | 96.6 | |||||||||||
Average AUM | 784.9 | 384.5 | 177.1 | 52.9 | 78.2 | 92.2 | |||||||||||
% of total average AUM | 100.0 | % | 49.0 | % | 22.6 | % | 6.7 | % | 10.0 | % | 11.7 | % |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
March 31, 2014 AUM | 142.9 | 87.0 | 40.9 | — | — | 15.0 | |||||||||||
Long-term inflows | 6.4 | 4.3 | 1.4 | — | — | 0.7 | |||||||||||
Long-term outflows | (5.3 | ) | (3.6 | ) | (0.6 | ) | �� | — | (1.1 | ) | |||||||
Long-term net flows | 1.1 | 0.7 | 0.8 | — | — | (0.4 | ) | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (3.0 | ) | (3.0 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | (1.9 | ) | (2.3 | ) | 0.8 | — | — | (0.4 | ) | ||||||||
Market gains and losses/reinvestment | 4.8 | 4.3 | 0.3 | — | — | 0.2 | |||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2014 AUM | 145.8 | 89.0 | 42.0 | — | — | 14.8 | |||||||||||
Average AUM | 141.9 | 85.4 | 41.6 | — | — | 14.9 | |||||||||||
% of total average AUM | 100.0 | % | 60.2 | % | 29.3 | % | — | % | — | % | 10.5 | % | |||||
March 31, 2013 AUM | 123.1 | 62.0 | 41.9 | — | — | 19.2 | |||||||||||
Long-term inflows | 11.8 | 6.8 | 4.0 | — | — | 1.0 | |||||||||||
Long-term outflows | (10.5 | ) | (4.8 | ) | (2.2 | ) | — | — | (3.5 | ) | |||||||
Long-term net flows | 1.3 | 2.0 | 1.8 | — | — | (2.5 | ) | ||||||||||
Net flows in Invesco PowerShares QQQ fund | 0.7 | 0.7 | — | — | — | — | |||||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 2.0 | 2.7 | 1.8 | — | — | (2.5 | ) | ||||||||||
Market gains and losses/reinvestment | (1.0 | ) | 1.0 | (1.2 | ) | — | — | (0.8 | ) | ||||||||
Foreign currency translation | (0.4 | ) | — | — | — | — | (0.4 | ) | |||||||||
June 30, 2013 AUM | 123.7 | 65.7 | 42.5 | — | — | 15.5 | |||||||||||
Average AUM | 125.9 | 65.5 | 43.7 | — | — | 16.7 | |||||||||||
% of total average AUM | 100.0 | % | 52.0 | % | 34.7 | % | — | % | — | % | 13.3 | % |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
March 31, 2015 | 143.0 | 90.0 | 42.0 | — | — | 11.0 | |||||||||||
Long-term inflows | 9.0 | 6.3 | 1.6 | — | — | 1.1 | |||||||||||
Long-term outflows | (8.5 | ) | (6.2 | ) | (1.0 | ) | — | — | (1.3 | ) | |||||||
Long-term net flows | 0.5 | 0.1 | 0.6 | — | — | (0.2 | ) | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 0.2 | (0.2 | ) | 0.6 | — | — | (0.2 | ) | |||||||||
Market gains and losses/reinvestment | (1.6 | ) | (0.4 | ) | (1.4 | ) | — | — | 0.2 | ||||||||
Acquisitions/dispositions, net | — | — | — | — | — | — | |||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2015 | 141.6 | 89.4 | 41.2 | — | — | 11.0 | |||||||||||
Average AUM | 144.2 | 90.9 | 42.1 | — | — | 11.2 | |||||||||||
% of total average AUM | 100.0 | % | 63.0 | % | 29.2 | % | — | % | — | % | 7.8 | % | |||||
March 31, 2014 | 142.9 | 87.0 | 40.9 | — | — | 15.0 | |||||||||||
Long-term inflows | 6.4 | 4.3 | 1.4 | — | — | 0.7 | |||||||||||
Long-term outflows | (5.3 | ) | (3.6 | ) | (0.6 | ) | — | — | (1.1 | ) | |||||||
Long-term net flows | 1.1 | 0.7 | 0.8 | — | — | (0.4 | ) | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (3.0 | ) | (3.0 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | (1.9 | ) | (2.3 | ) | 0.8 | — | — | (0.4 | ) | ||||||||
Market gains and losses/reinvestment | 4.8 | 4.3 | 0.3 | — | — | 0.2 | |||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2014 | 145.8 | 89.0 | 42.0 | — | — | 14.8 | |||||||||||
Average AUM | 141.9 | 85.4 | 41.6 | — | — | 14.9 | |||||||||||
% of total average AUM | 100.0 | % | 60.2 | % | 29.3 | % | — | % | — | % | 10.5 | % |
$ in billions | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||
March 31, 2014 AUM | 787.3 | 526.1 | 27.1 | 115.9 | 63.4 | 54.8 | |||||||||||
Long-term inflows | 42.5 | 19.7 | 0.9 | 6.1 | 10.4 | 5.4 | |||||||||||
Long-term outflows | (49.4 | ) | (19.5 | ) | (1.1 | ) | (19.9 | ) | (5.3 | ) | (3.6 | ) | |||||
Long-term net flows | (6.9 | ) | 0.2 | (0.2 | ) | (13.8 | ) | 5.1 | 1.8 | ||||||||
Net flows in Invesco PowerShares QQQ fund | (3.0 | ) | (3.0 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | 1.1 | (0.7 | ) | 0.1 | 1.5 | 0.1 | 0.1 | ||||||||||
Total net flows | (8.8 | ) | (3.5 | ) | (0.1 | ) | (12.3 | ) | 5.2 | 1.9 | |||||||
Market gains and losses/reinvestment | 19.9 | 14.9 | 0.7 | 1.3 | 1.8 | 1.2 | |||||||||||
Foreign currency translation | 4.0 | — | 1.0 | 2.7 | — | 0.3 | |||||||||||
June 30, 2014 AUM | 802.4 | 537.5 | 28.7 | 107.6 | 70.4 | 58.2 | |||||||||||
March 31, 2013 AUM | 707.7 | 482.4 | 26.0 | 104.6 | 44.3 | 50.4 | |||||||||||
Long-term inflows | 44.4 | 25.6 | 0.9 | 4.4 | 7.5 | 6.0 | |||||||||||
Long-term outflows | (43.0 | ) | (25.9 | ) | (1.3 | ) | (5.0 | ) | (5.0 | ) | (5.8 | ) | |||||
Long-term net flows | 1.4 | (0.3 | ) | (0.4 | ) | (0.6 | ) | 2.5 | 0.2 | ||||||||
Net flows in Invesco PowerShares QQQ fund | 0.7 | 0.7 | — | — | — | — | |||||||||||
Net flows in institutional money market funds | (0.7 | ) | (0.4 | ) | — | 0.1 | (0.1 | ) | (0.3 | ) | |||||||
Total net flows | 1.4 | — | (0.4 | ) | (0.5 | ) | 2.4 | (0.1 | ) | ||||||||
Market gains and losses/reinvestment | (1.3 | ) | (0.9 | ) | 0.1 | 0.3 | (0.4 | ) | (0.4 | ) | |||||||
Foreign currency translation | (2.2 | ) | — | (0.9 | ) | (0.1 | ) | 0.1 | (1.3 | ) | |||||||
June 30, 2013 AUM | 705.6 | 481.5 | 24.8 | 104.3 | 46.4 | 48.6 |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
December 31, 2014 | 141.4 | 88.2 | 41.1 | — | — | 12.1 | |||||||||||
Long-term inflows | 18.9 | 12.8 | 3.6 | — | — | 2.5 | |||||||||||
Long-term outflows | (14.9 | ) | (9.7 | ) | (2.2 | ) | — | — | (3.0 | ) | |||||||
Long-term net flows | 4.0 | 3.1 | 1.4 | — | — | (0.5 | ) | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 1.1 | 0.2 | 1.4 | — | — | (0.5 | ) | ||||||||||
Market gains and losses/reinvestment | (0.2 | ) | 1.0 | (1.3 | ) | — | — | 0.1 | |||||||||
Acquisitions/dispositions, net (6) | (0.7 | ) | — | — | — | — | (0.7 | ) | |||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2015 | 141.6 | 89.4 | 41.2 | — | — | 11.0 | |||||||||||
Average AUM | 143.5 | 90.0 | 42.1 | — | — | 11.4 | |||||||||||
% of total average AUM | 100.0 | % | 62.7 | % | 29.3 | % | — | % | — | % | 7.9 | % | |||||
December 31, 2013 | 139.7 | 85.6 | 39.5 | — | — | 14.6 | |||||||||||
Long-term inflows | 15.0 | 9.7 | 3.6 | — | — | 1.7 | |||||||||||
Long-term outflows | (10.6 | ) | (6.8 | ) | (1.8 | ) | — | — | (2.0 | ) | |||||||
Long-term net flows | 4.4 | 2.9 | 1.8 | — | — | (0.3 | ) | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 0.1 | (1.4 | ) | 1.8 | — | — | (0.3 | ) | |||||||||
Market gains and losses/reinvestment | 6.0 | 4.8 | 0.7 | — | — | 0.5 | |||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2014 | 145.8 | 89.0 | 42.0 | — | — | 14.8 | |||||||||||
Average AUM | 141.3 | 85.9 | 40.9 | — | — | 14.5 | |||||||||||
% of total average AUM | 100.0 | % | 60.8 | % | 28.9 | % | — | % | — | % | 10.3 | % |
$ in billions | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||
March 31, 2015 | 798.3 | 532.6 | 24.9 | 106.3 | 74.2 | 60.3 | |||||||||||
Long-term inflows | 52.1 | 27.4 | 1.0 | 4.5 | 9.7 | 9.5 | |||||||||||
Long-term outflows | (46.2 | ) | (24.5 | ) | (1.1 | ) | (4.3 | ) | (8.1 | ) | (8.2 | ) | |||||
Long-term net flows | 5.9 | 2.9 | (0.1 | ) | 0.2 | 1.6 | 1.3 | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (2.6 | ) | (3.4 | ) | — | 0.9 | (0.2 | ) | 0.1 | ||||||||
Total net flows | 3.0 | (0.8 | ) | (0.1 | ) | 1.1 | 1.4 | 1.4 | |||||||||
Market gains and losses/reinvestment | (6.2 | ) | (1.0 | ) | (0.3 | ) | (2.7 | ) | (0.7 | ) | (1.5 | ) | |||||
Acquisitions/dispositions, net | — | — | — | — | — | — | |||||||||||
Foreign currency translation | 8.5 | — | 0.4 | 6.0 | 2.1 | — | |||||||||||
June 30, 2015 | 803.6 | 530.8 | 24.9 | 110.7 | 77.0 | 60.2 | |||||||||||
March 31, 2014 | 787.3 | 526.1 | 27.1 | 115.9 | 63.4 | 54.8 | |||||||||||
Long-term inflows | 42.5 | 19.7 | 0.9 | 6.1 | 10.4 | 5.4 | |||||||||||
Long-term outflows | (49.4 | ) | (19.5 | ) | (1.1 | ) | (19.9 | ) | (5.3 | ) | (3.6 | ) | |||||
Long-term net flows | (6.9 | ) | 0.2 | (0.2 | ) | (13.8 | ) | 5.1 | 1.8 | ||||||||
Net flows in Invesco PowerShares QQQ fund | (3.0 | ) | (3.0 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | 1.1 | (0.7 | ) | 0.1 | 1.5 | 0.1 | 0.1 | ||||||||||
Total net flows | (8.8 | ) | (3.5 | ) | (0.1 | ) | (12.3 | ) | 5.2 | 1.9 | |||||||
Market gains and losses/reinvestment | 19.9 | 14.9 | 0.7 | 1.3 | 1.8 | 1.2 | |||||||||||
Foreign currency translation | 4.0 | — | 1.0 | 2.7 | — | 0.3 | |||||||||||
June 30, 2014 | 802.4 | 537.5 | 28.7 | 107.6 | 70.4 | 58.2 |
$ in billions | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||
December 31, 2014 | 792.4 | 532.1 | 25.8 | 105.1 | 71.1 | 58.3 | |||||||||||
Long-term inflows | 102.6 | 53.5 | 2.0 | 9.4 | 21.9 | 15.8 | |||||||||||
Long-term outflows | (86.4 | ) | (46.5 | ) | (2.1 | ) | (8.6 | ) | (15.3 | ) | (13.9 | ) | |||||
Long-term net flows | 16.2 | 7.0 | (0.1 | ) | 0.8 | 6.6 | 1.9 | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (8.6 | ) | (9.0 | ) | (0.1 | ) | 0.8 | (0.2 | ) | (0.1 | ) | ||||||
Total net flows | 4.7 | (4.9 | ) | (0.2 | ) | 1.6 | 6.4 | 1.8 | |||||||||
Market gains and losses/reinvestment | 12.0 | 4.3 | 1.2 | 2.9 | 3.0 | 0.6 | |||||||||||
Acquisitions/dispositions, net (6) | (0.7 | ) | (0.7 | ) | — | — | — | — | |||||||||
Foreign currency translation | (4.8 | ) | — | (1.9 | ) | 1.1 | (3.5 | ) | (0.5 | ) | |||||||
June 30, 2015 | 803.6 | 530.8 | 24.9 | 110.7 | 77.0 | 60.2 | |||||||||||
December 31, 2013 | 778.7 | 521.3 | 27.1 | 114.8 | 60.9 | 54.6 | |||||||||||
Long-term inflows | 92.7 | 44.4 | 2.0 | 11.2 | 21.7 | 13.4 | |||||||||||
Long-term outflows | (93.1 | ) | (40.6 | ) | (2.3 | ) | (26.8 | ) | (11.8 | ) | (11.6 | ) | |||||
Long-term net flows | (0.4 | ) | 3.8 | (0.3 | ) | (15.6 | ) | 9.9 | 1.8 | ||||||||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (5.0 | ) | (4.1 | ) | — | 2.0 | (3.0 | ) | 0.1 | ||||||||
Total net flows | (9.7 | ) | (4.6 | ) | (0.3 | ) | (13.6 | ) | 6.9 | 1.9 | |||||||
Market gains and losses/reinvestment | 29.3 | 20.8 | 1.9 | 2.9 | 2.6 | 1.1 | |||||||||||
Foreign currency translation | 4.1 | — | — | 3.5 | — | 0.6 | |||||||||||
June 30, 2014 | 802.4 | 537.5 | 28.7 | 107.6 | 70.4 | 58.2 |
$ in billions | Total | U.S. | Canada | U.K. | Continental Europe | Asia | Total | U.S. | Canada | U.K. | Continental Europe | Asia | ||||||||||||||||||||||
March 31, 2014 AUM | 142.9 | 138.5 | 0.1 | — | 1.8 | 2.5 | ||||||||||||||||||||||||||||
March 31, 2015 | 143.0 | 139.0 | 0.3 | — | 1.8 | 1.9 | ||||||||||||||||||||||||||||
Long-term inflows | 9.0 | 8.1 | 0.1 | — | 0.1 | 0.7 | ||||||||||||||||||||||||||||
Long-term outflows | (8.5 | ) | (7.7 | ) | — | — | (0.1 | ) | (0.7 | ) | ||||||||||||||||||||||||
Long-term net flows | 0.5 | 0.4 | 0.1 | — | — | — | ||||||||||||||||||||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | — | — | — | ||||||||||||||||||||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Total net flows | 0.2 | 0.1 | 0.1 | — | — | — | ||||||||||||||||||||||||||||
Market gains and losses/reinvestment | (1.6 | ) | (1.7 | ) | — | — | — | 0.1 | ||||||||||||||||||||||||||
Acquisitions/dispositions, net | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | ||||||||||||||||||||||||||||
June 30, 2015 | 141.6 | 137.4 | 0.4 | — | 1.8 | 2.0 | ||||||||||||||||||||||||||||
March 31, 2014 | 142.9 | 138.5 | 0.1 | — | 1.8 | 2.5 | ||||||||||||||||||||||||||||
Long-term inflows | 6.4 | 6.3 | — | — | 0.1 | — | 6.4 | 6.3 | — | — | 0.1 | — | ||||||||||||||||||||||
Long-term outflows | (5.3 | ) | (4.8 | ) | — | — | (0.2 | ) | (0.3 | ) | (5.3 | ) | (4.8 | ) | — | — | (0.2 | ) | (0.3 | ) | ||||||||||||||
Long-term net flows | 1.1 | 1.5 | — | — | (0.1 | ) | (0.3 | ) | 1.1 | 1.5 | — | — | (0.1 | ) | (0.3 | ) | ||||||||||||||||||
Net flows in Invesco PowerShares QQQ fund | (3.0 | ) | (3.0 | ) | — | — | — | — | (3.0 | ) | (3.0 | ) | — | — | — | — | ||||||||||||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total net flows | (1.9 | ) | (1.5 | ) | — | — | (0.1 | ) | (0.3 | ) | (1.9 | ) | (1.5 | ) | — | — | (0.1 | ) | (0.3 | ) | ||||||||||||||
Market gains and losses/reinvestment | 4.8 | 4.7 | — | — | 0.1 | — | 4.8 | 4.7 | — | — | 0.1 | — | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
June 30, 2014 AUM | 145.8 | 141.7 | 0.1 | — | 1.8 | 2.2 | ||||||||||||||||||||||||||||
March 31, 2013 AUM | 123.1 | 116.9 | 0.1 | — | 1.2 | 4.9 | ||||||||||||||||||||||||||||
Long-term inflows | 11.8 | 11.5 | — | — | 0.2 | 0.1 | ||||||||||||||||||||||||||||
Long-term outflows | (10.5 | ) | (8.3 | ) | — | — | (0.1 | ) | (2.1 | ) | ||||||||||||||||||||||||
Long-term net flows | 1.3 | 3.2 | — | — | 0.1 | (2.0 | ) | |||||||||||||||||||||||||||
Net flows in Invesco PowerShares QQQ fund | 0.7 | 0.7 | — | — | — | — | ||||||||||||||||||||||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Total net flows | 2.0 | 3.9 | — | — | 0.1 | (2.0 | ) | |||||||||||||||||||||||||||
Market gains and losses/reinvestment | (1.0 | ) | (1.1 | ) | — | — | — | 0.1 | ||||||||||||||||||||||||||
Foreign currency translation | (0.4 | ) | — | — | — | — | (0.4 | ) | ||||||||||||||||||||||||||
June 30, 2013 AUM | 123.7 | 119.7 | 0.1 | — | 1.3 | 2.6 | ||||||||||||||||||||||||||||
June 30, 2014 | 145.8 | 141.7 | 0.1 | — | 1.8 | 2.2 |
$ in billions | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||
December 31, 2014 | 141.4 | 137.6 | 0.2 | — | 1.8 | 1.8 | |||||||||||
Long-term inflows | 18.9 | 17.7 | 0.1 | — | 0.3 | 0.8 | |||||||||||
Long-term outflows | (14.9 | ) | (13.8 | ) | — | — | (0.3 | ) | (0.8 | ) | |||||||
Long-term net flows | 4.0 | 3.9 | 0.1 | — | — | — | |||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 1.1 | 1.0 | 0.1 | — | — | — | |||||||||||
Market gains and losses/reinvestment | (0.2 | ) | (0.5 | ) | 0.1 | — | — | 0.2 | |||||||||
Acquisitions/dispositions, net (6) | (0.7 | ) | (0.7 | ) | — | — | — | — | |||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2015 | 141.6 | 137.4 | 0.4 | — | 1.8 | 2.0 | |||||||||||
December 31, 2013 | 139.7 | 135.2 | 0.1 | — | 1.8 | 2.6 | |||||||||||
Long-term inflows | 15.0 | 14.8 | — | — | 0.2 | — | |||||||||||
Long-term outflows | (10.6 | ) | (9.9 | ) | — | — | (0.3 | ) | (0.4 | ) | |||||||
Long-term net flows | 4.4 | 4.9 | — | — | (0.1 | ) | (0.4 | ) | |||||||||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 0.1 | 0.6 | — | — | (0.1 | ) | (0.4 | ) | |||||||||
Market gains and losses/reinvestment | 6.0 | 5.9 | — | — | 0.1 | — | |||||||||||
Acquisitions/dispositions, net | — | — | — | — | — | — | |||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2014 | 145.8 | 141.7 | 0.1 | — | 1.8 | 2.2 |
Channel refers to the internal distribution channel from which the AUM originated. Retail AUM represents AUM distributed by the company's retail sales team. Institutional AUM represents AUM distributed by our institutional sales team. This aggregation is viewed as a proxy for presenting AUM in the retail and institutional markets in which the company operates. |
(2) | Asset classes are descriptive groupings of AUM by common type of underlying investments. |
(3) | There have been no significant changes to the managed objectives under the Alternatives asset class, which are disclosed in our most recent Form 10-K for the year ended December 31, |
(4) | Ending Money Market AUM includes |
(5) | Client domicile disclosure groups AUM by the domicile of the underlying clients. |
Three months ended June 30, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||||||
$ in millions | Impact of CIP | Invesco Ltd. Consolidated | Impact of CIP | Invesco Ltd. Consolidated | Impact of CIP | Invesco Ltd. Consolidated | Impact of CIP | Invesco Ltd. Consolidated | Impact of CIP | Invesco Ltd. Consolidated | Impact of CIP | Invesco Ltd. Consolidated | ||||||||||||||||||||||
Total operating revenues | (8.6 | ) | 1,289.9 | (9.0 | ) | 1,135.5 | (10.4 | ) | 1,318.1 | (8.6 | ) | 1,289.9 | (19.7 | ) | 2,609.7 | (17.0 | ) | 2,559.4 | ||||||||||||||||
Total operating expenses | 1.7 | 935.1 | 9.3 | 861.6 | 1.5 | 954.1 | 1.7 | 935.1 | 13.7 | 1,907.6 | 14.3 | 1,960.3 | ||||||||||||||||||||||
Operating income | (10.3 | ) | 354.8 | (18.3 | ) | 273.9 | (11.9 | ) | 364.0 | (10.3 | ) | 354.8 | (33.4 | ) | 702.1 | (31.3 | ) | 599.1 | ||||||||||||||||
Equity in earnings of unconsolidated affiliates | (2.2 | ) | 5.5 | (0.8 | ) | 6.9 | 0.5 | 12.0 | (2.2 | ) | 5.5 | (1.2 | ) | 23.8 | (3.4 | ) | 15.5 | |||||||||||||||||
Interest and dividend income | (0.6 | ) | 3.1 | (1.8 | ) | 2.1 | (0.8 | ) | 2.6 | (0.6 | ) | 3.1 | (2.2 | ) | 5.1 | (1.5 | ) | 6.0 | ||||||||||||||||
Interest expense | — | (18.2 | ) | — | (10.0 | ) | — | (19.6 | ) | — | (18.2 | ) | — | (38.3 | ) | — | (36.9 | ) | ||||||||||||||||
Other gains and losses, net | (4.7 | ) | 16.2 | — | 0.4 | (1.2 | ) | (8.8 | ) | (4.7 | ) | 16.2 | (3.9 | ) | (6.1 | ) | (4.7 | ) | 22.8 | |||||||||||||||
Other income/(loss) of CSIP, net | — | 7.7 | — | — | ||||||||||||||||||||||||||||||
Other income/(expense) of CSIP, net | — | 5.1 | — | 7.7 | — | 14.5 | — | 15.9 | ||||||||||||||||||||||||||
Interest and dividend income of CIP | 48.0 | 48.0 | 50.7 | 50.7 | 65.1 | 65.1 | 48.0 | 48.0 | 125.3 | 125.3 | 96.3 | 96.3 | ||||||||||||||||||||||
Interest expense of CIP | (30.3 | ) | (30.3 | ) | (30.6 | ) | (30.6 | ) | (47.3 | ) | (47.3 | ) | (30.3 | ) | (30.3 | ) | (92.4 | ) | (92.4 | ) | (60.6 | ) | (60.6 | ) | ||||||||||
Other gains/(losses) of CIP, net | 36.8 | 36.8 | (1.6 | ) | (1.6 | ) | (19.7 | ) | (19.7 | ) | 36.8 | 36.8 | 4.7 | 4.7 | 63.3 | 63.3 | ||||||||||||||||||
Income from continuing operations before taxes | 36.7 | 423.6 | (2.4 | ) | 291.8 | (15.3 | ) | 353.4 | 36.7 | 423.6 | (3.1 | ) | 738.7 | 58.1 | 721.4 | |||||||||||||||||||
Income tax provision | — | (107.0 | ) | — | (83.5 | ) | — | (109.4 | ) | — | (107.0 | ) | — | (210.7 | ) | — | (196.0 | ) | ||||||||||||||||
Income from continuing operations, net of taxes | 36.7 | 316.6 | (2.4 | ) | 208.3 | (15.3 | ) | 244.0 | 36.7 | 316.6 | (3.1 | ) | 528.0 | 58.1 | 525.4 | |||||||||||||||||||
Income/(loss) from discontinued operations, net of taxes | — | 0.2 | — | (4.6 | ) | — | — | — | 0.2 | — | — | — | (1.8 | ) | ||||||||||||||||||||
Net income | 36.7 | 316.8 | (2.4 | ) | 203.7 | (15.3 | ) | 244.0 | 36.7 | 316.8 | (3.1 | ) | 528.0 | 58.1 | 523.6 | |||||||||||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (38.7 | ) | (42.3 | ) | (1.1 | ) | (1.1 | ) | 15.7 | 13.3 | (38.7 | ) | (42.3 | ) | (4.7 | ) | (11.1 | ) | (54.8 | ) | (61.3 | ) | ||||||||||||
Net income attributable to common shareholders | (2.0 | ) | 274.5 | (3.5 | ) | 202.6 | ||||||||||||||||||||||||||||
Net income attributable to Invesco Ltd. | 0.4 | 257.3 | (2.0 | ) | 274.5 | (7.8 | ) | 516.9 | 3.3 | 462.3 |
Variance | Variance | Variance | ||||||||||||||||||||||||||||||||
Three months ended June 30, | 2014 vs 2013 | Three months ended June 30, | 2015 vs 2014 | Six months ended June 30, | 2015 vs 2014 | |||||||||||||||||||||||||||||
$ in millions | 2014 | 2013 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | ||||||||||||||||||||||
Investment management fees | 1,031.9 | 885.5 | 146.4 | 16.5 | % | 1,055.7 | 1,031.9 | 23.8 | 2.3 | % | 2,057.1 | 1,997.3 | 59.8 | 3.0 | % | |||||||||||||||||||
Service and distribution fees | 214.7 | 215.7 | (1.0 | ) | (0.5 | )% | 219.6 | 214.7 | 4.9 | 2.3 | % | 433.0 | 453.3 | (20.3 | ) | (4.5 | )% | |||||||||||||||||
Performance fees | 5.0 | 6.0 | (1.0 | ) | (16.7 | )% | 6.7 | 5.0 | 1.7 | 34.0 | % | 53.5 | 36.1 | 17.4 | 48.2 | % | ||||||||||||||||||
Other | 38.3 | 28.3 | 10.0 | 35.3 | % | 36.1 | 38.3 | (2.2 | ) | (5.7 | )% | 66.1 | 72.7 | (6.6 | ) | (9.1 | )% | |||||||||||||||||
Total operating revenues | 1,289.9 | 1,135.5 | 154.4 | 13.6 | % | 1,318.1 | 1,289.9 | 28.2 | 2.2 | % | 2,609.7 | 2,559.4 | 50.3 | 2.0 | % | |||||||||||||||||||
Third-party distribution, service and advisory expenses | (410.6 | ) | (366.0 | ) | (44.6 | ) | 12.2 | % | (413.3 | ) | (410.6 | ) | (2.7 | ) | 0.7 | % | (812.4 | ) | (816.0 | ) | 3.6 | (0.4 | )% | |||||||||||
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments | 13.1 | 11.8 | 1.3 | 11.0 | % | 21.4 | 13.1 | 8.3 | 63.4 | % | 37.1 | 28.4 | 8.7 | 30.6 | % | |||||||||||||||||||
CIP | 8.6 | 9.0 | (0.4 | ) | (4.4 | )% | 10.4 | 8.6 | 1.8 | 20.9 | % | 19.7 | 17.0 | 2.7 | 15.9 | % | ||||||||||||||||||
Net revenues | 901.0 | 790.3 | 110.7 | 14.0 | % | 936.6 | 901.0 | 35.6 | 4.0 | % | 1,854.1 | 1,788.8 | 65.3 | 3.7 | % |
Variance | Variance | Variance | ||||||||||||||||||||||||||||||||
Three months ended June 30, | 2014 vs 2013 | Three months ended June 30, | 2015 vs 2014 | Six months ended June 30, | 2015 vs 2014 | |||||||||||||||||||||||||||||
$ in millions | 2014 | 2013 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | ||||||||||||||||||||||
Employee compensation | 342.9 | 324.1 | 18.8 | 5.8 | % | 347.2 | 342.9 | 4.3 | 1.3 | % | 708.1 | 705.0 | 3.1 | 0.4 | % | |||||||||||||||||||
Third-party distribution, service and advisory | 410.6 | 366.0 | 44.6 | 12.2 | % | 413.3 | 410.6 | 2.7 | 0.7 | % | 812.4 | 816.0 | (3.6 | ) | (0.4 | )% | ||||||||||||||||||
Marketing | 30.2 | 23.8 | 6.4 | 26.9 | % | 29.7 | 30.2 | (0.5 | ) | (1.7 | )% | 56.4 | 53.6 | 2.8 | 5.2 | % | ||||||||||||||||||
Property, office and technology | 75.3 | 68.6 | 6.7 | 9.8 | % | 74.8 | 75.3 | (0.5 | ) | (0.7 | )% | 151.7 | 188.0 | (36.3 | ) | (19.3 | )% | |||||||||||||||||
General and administrative | 76.1 | 77.3 | (1.2 | ) | (1.6 | )% | 89.1 | 76.1 | 13.0 | 17.1 | % | 179.0 | 197.7 | (18.7 | ) | (9.5 | )% | |||||||||||||||||
Transaction and integration | — | 1.8 | (1.8 | ) | (100.0 | )% | ||||||||||||||||||||||||||||
Total operating expenses | 935.1 | 861.6 | 73.5 | 8.5 | % | 954.1 | 935.1 | 19.0 | 2.0 | % | 1,907.6 | 1,960.3 | (52.7 | ) | (2.7 | )% |
$ in millions | June 30, 2014 | % of Total Operating Expenses | % of Operating Revenues | June 30, 2013 | % of Total Operating Expenses | % of Operating Revenues | Three months ended June 30, 2015 | % of Total Operating Expenses | % of Operating Revenues | Three months ended June 30, 2014 | % of Total Operating Expenses | % of Operating Revenues | ||||||||||||||||||||||
Employee compensation | 342.9 | 36.7 | % | 26.6 | % | 324.1 | 37.6 | % | 28.6 | % | 347.2 | 36.4 | % | 26.3 | % | 342.9 | 36.7 | % | 26.6 | % | ||||||||||||||
Third-party distribution, service and advisory | 410.6 | 43.9 | % | 31.8 | % | 366.0 | 42.5 | % | 32.2 | % | 413.3 | 43.3 | % | 31.4 | % | 410.6 | 43.9 | % | 31.8 | % | ||||||||||||||
Marketing | 30.2 | 3.2 | % | 2.3 | % | 23.8 | 2.7 | % | 2.1 | % | 29.7 | 3.1 | % | 2.2 | % | 30.2 | 3.2 | % | 2.3 | % | ||||||||||||||
Property, office and technology | 75.3 | 8.1 | % | 5.8 | % | 68.6 | 8.0 | % | 6.0 | % | 74.8 | 7.9 | % | 5.7 | % | 75.3 | 8.1 | % | 5.8 | % | ||||||||||||||
General and administrative | 76.1 | 8.1 | % | 5.9 | % | 77.3 | 9.0 | % | 6.8 | % | 89.1 | 9.3 | % | 6.8 | % | 76.1 | 8.1 | % | 5.9 | % | ||||||||||||||
Transaction and integration | — | — | % | — | % | 1.8 | 0.2 | % | 0.2 | % | ||||||||||||||||||||||||
Total operating expenses | 935.1 | 100.0 | % | 72.5 | % | 861.6 | 100.0 | % | 75.9 | % | 954.1 | 100.0 | % | 72.4 | % | 935.1 | 100.0 | % | 72.5 | % | ||||||||||||||
$ in millions | Six months ended June 30, 2015 | % of Total Operating Expenses | % of Operating Revenues | Six months ended June 30, 2014 | % of Total Operating Expenses | % of Operating Revenues | ||||||||||||||||||||||||||||
Employee compensation | 708.1 | 37.1 | % | 27.1 | % | 705.0 | 36.0 | % | 27.5 | % | ||||||||||||||||||||||||
Third-party distribution, service and advisory | 812.4 | 42.6 | % | 31.1 | % | 816.0 | 41.6 | % | 31.9 | % | ||||||||||||||||||||||||
Marketing | 56.4 | 3.0 | % | 2.2 | % | 53.6 | 2.7 | % | 2.1 | % | ||||||||||||||||||||||||
Property, office and technology | 151.7 | 7.9 | % | 5.8 | % | 188.0 | 9.6 | % | 7.3 | % | ||||||||||||||||||||||||
General and administrative | 179.0 | 9.4 | % | 6.9 | % | 197.7 | 10.1 | % | 7.7 | % | ||||||||||||||||||||||||
Total operating expenses | 1,907.6 | 100.0 | % | 73.1 | % | 1,960.3 | 100.0 | % | 76.6 | % |
Variance | Variance | Variance | ||||||||||||||||||||||||||||||||
Three months ended June 30, | 2014 vs 2013 | Three months ended June 30, | 2015 vs 2014 | Six months ended June 30, | 2015 vs 2014 | |||||||||||||||||||||||||||||
$ in millions | 2014 | 2013 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | 2015 | 2014 | $ Change | % Change | ||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | 5.5 | 6.9 | (1.4 | ) | (20.3 | )% | 12.0 | 5.5 | 6.5 | 118.2 | % | 23.8 | 15.5 | 8.3 | 53.5 | % | ||||||||||||||||||
Interest and dividend income | 3.1 | 2.1 | 1.0 | 47.6 | % | 2.6 | 3.1 | (0.5 | ) | (16.1 | )% | 5.1 | 6.0 | (0.9 | ) | (15.0 | )% | |||||||||||||||||
Interest expense | (18.2 | ) | (10.0 | ) | (8.2 | ) | 82.0 | % | (19.6 | ) | (18.2 | ) | (1.4 | ) | 7.7 | % | (38.3 | ) | (36.9 | ) | (1.4 | ) | 3.8 | % | ||||||||||
Other gains and losses, net | 16.2 | 0.4 | 15.8 | N/A | (8.8 | ) | 16.2 | (25.0 | ) | N/A | (6.1 | ) | 22.8 | (28.9 | ) | N/A | ||||||||||||||||||
Other income/(loss) of CSIP, net | 7.7 | — | 7.7 | N/A | ||||||||||||||||||||||||||||||
Other income/(expense) of CSIP, net | 5.1 | 7.7 | (2.6 | ) | (33.8 | )% | 14.5 | 15.9 | (1.4 | ) | (8.8 | )% | ||||||||||||||||||||||
Other income and expenses of CIP: | ||||||||||||||||||||||||||||||||||
Interest and dividend income of CIP | 48.0 | 50.7 | (2.7 | ) | (5.3 | )% | 65.1 | 48.0 | 17.1 | 35.6 | % | 125.3 | 96.3 | 29.0 | 30.1 | % | ||||||||||||||||||
Interest expense of CIP | (30.3 | ) | (30.6 | ) | 0.3 | (1.0 | )% | (47.3 | ) | (30.3 | ) | (17.0 | ) | 56.1 | % | (92.4 | ) | (60.6 | ) | (31.8 | ) | 52.5 | % | |||||||||||
Other gains/(losses) of CIP, net | 36.8 | (1.6 | ) | 38.4 | N/A | (19.7 | ) | 36.8 | (56.5 | ) | N/A | 4.7 | 63.3 | (58.6 | ) | (92.6 | )% | |||||||||||||||||
Total other income and expenses | 68.8 | 17.9 | 50.9 | 284.4 | % | (10.6 | ) | 68.8 | (79.4 | ) | N/A | 36.6 | 122.3 | (85.7 | ) | (70.1 | )% |
For the six months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
$ in billions | Total AUM | Active | Passive | Total AUM | Active | Passive | |||||||||||
January 1 | 778.7 | 639.0 | 139.7 | 667.4 | 553.4 | 114.0 | |||||||||||
Long-term inflows | 92.7 | 77.7 | 15.0 | 92.0 | 66.7 | 25.3 | |||||||||||
Long-term outflows | (93.1 | ) | (82.5 | ) | (10.6 | ) | (76.3 | ) | (58.7 | ) | (17.6 | ) | |||||
Long-term net flows | (0.4 | ) | (4.8 | ) | 4.4 | 15.7 | 8.0 | 7.7 | |||||||||
Net flows in Invesco Powershares QQQ fund | (4.3 | ) | — | (4.3 | ) | 0.3 | — | 0.3 | |||||||||
Net flows in institutional money market funds | (5.0 | ) | (5.0 | ) | — | 4.1 | 4.1 | — | |||||||||
Total net flows | (9.7 | ) | (9.8 | ) | 0.1 | 20.1 | 12.1 | 8.0 | |||||||||
Market gains and losses/reinvestment | 29.3 | 23.3 | 6.0 | 29.2 | 26.8 | 2.4 | |||||||||||
Foreign currency translation | 4.1 | 4.1 | — | (11.1 | ) | (10.4 | ) | (0.7 | ) | ||||||||
June 30 | 802.4 | 656.6 | 145.8 | 705.6 | 581.9 | 123.7 | |||||||||||
Average AUM | |||||||||||||||||
Average long-term AUM | 667.2 | 569.7 | 97.5 | 597.5 | 507.7 | 89.8 | |||||||||||
Average short-term AUM | 117.7 | 73.9 | 43.8 | 108.2 | 75.0 | 33.2 | |||||||||||
Average AUM | 784.9 | 643.6 | 141.3 | 705.7 | 582.7 | 123.0 | |||||||||||
Revenue yield | |||||||||||||||||
Gross revenue yield on AUM (1) | 65.6 | 77.3 | 13.0 | 64.0 | 75.2 | 11.1 | |||||||||||
Gross revenue yield on AUM before performance fees (1) | 64.7 | 76.1 | 13.0 | 62.8 | 73.6 | 11.1 | |||||||||||
Net revenue yield on AUM (2) | 45.6 | 52.7 | 13.0 | 44.7 | 51.8 | 11.1 | |||||||||||
Net revenue yield on AUM before performance fees (2) | 44.5 | 51.5 | 13.0 | 43.4 | 50.2 | 11.1 |
Foreign Exchange Rates | June 30, 2014 | December 31, 2013 | June 30, 2013 | December 31, 2012 | |||||||
Pound Sterling ($ per £) | 1.710 | 1.655 | 1.518 | 1.625 | |||||||
Canadian Dollar (CAD per $) | 1.066 | 1.063 | 1.054 | 0.996 | |||||||
Japan (¥ per $) | 101.310 | 105.080 | 99.320 | 86.520 | |||||||
Euro ($ per Euro) | 1.369 | 1.378 | 1.300 | 1.319 |
$ in billions | Total | Retail | Institutional | |||||
December 31, 2013 AUM | 778.7 | 519.6 | 259.1 | |||||
Long-term inflows | 92.7 | 75.9 | 16.8 | |||||
Long-term outflows | (93.1 | ) | (76.5 | ) | (16.6 | ) | ||
Long-term net flows | (0.4 | ) | (0.6 | ) | 0.2 | |||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | |||
Net flows in institutional money market funds | (5.0 | ) | — | (5.0 | ) | |||
Total net flows | (9.7 | ) | (4.9 | ) | (4.8 | ) | ||
Market gains and losses/reinvestment | 29.3 | 26.5 | 2.8 | |||||
Foreign currency translation | 4.1 | 3.6 | 0.5 | |||||
June 30, 2014 AUM | 802.4 | 544.8 | 257.6 | |||||
December 31, 2012 AUM | 667.4 | 425.8 | 241.6 | |||||
Long-term inflows | 92.0 | 73.9 | 18.1 | |||||
Long-term outflows | (76.3 | ) | (58.7 | ) | (17.6 | ) | ||
Long-term net flows | 15.7 | 15.2 | 0.5 | |||||
Net flows in Invesco PowerShares QQQ fund | 0.3 | 0.3 | — | |||||
Net flows in institutional money market funds | 4.1 | — | 4.1 | |||||
Total net flows | 20.1 | 15.5 | 4.6 | |||||
Market gains and losses/reinvestment | 29.2 | 24.5 | 4.7 | |||||
Foreign currency translation | (11.1 | ) | (8.1 | ) | (3.0 | ) | ||
June 30, 2013 AUM | 705.6 | 457.7 | 247.9 |
$ in billions | Total | Retail | Institutional | |||||
December 31, 2013 AUM | 139.7 | 118.2 | 21.5 | |||||
Long-term inflows | 15.0 | 13.5 | 1.5 | |||||
Long-term outflows | (10.6 | ) | (9.5 | ) | (1.1 | ) | ||
Long-term net flows | 4.4 | 4.0 | 0.4 | |||||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | |||
Net flows in institutional money market funds | — | — | — | |||||
Total net flows | 0.1 | (0.3 | ) | 0.4 | ||||
Market gains and losses/reinvestment | 6.0 | 6.0 | — | |||||
Foreign currency translation | — | — | — | |||||
June 30, 2014 AUM | 145.8 | 123.9 | 21.9 | |||||
December 31, 2012 AUM | 114.0 | 91.2 | 22.8 | |||||
Long-term inflows | 25.3 | 20.4 | 4.9 | |||||
Long-term outflows | (17.6 | ) | (13.9 | ) | (3.7 | ) | ||
Long-term net flows | 7.7 | 6.5 | 1.2 | |||||
Net flows in Invesco PowerShares QQQ fund | 0.3 | 0.3 | — | |||||
Net flows in institutional money market funds | — | — | — | |||||
Total net flows | 8.0 | 6.8 | 1.2 | |||||
Market gains and losses/reinvestment | 2.4 | 2.0 | 0.4 | |||||
Foreign currency translation | (0.7 | ) | — | (0.7 | ) | |||
June 30, 2013 AUM | 123.7 | 100.0 | 23.7 |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
December 31, 2013 AUM | 778.7 | 383.1 | 171.7 | 53.3 | 82.7 | 87.9 | |||||||||||
Long-term inflows | 92.7 | 48.8 | 18.0 | 9.3 | 1.4 | 15.2 | |||||||||||
Long-term outflows | (93.1 | ) | (55.5 | ) | (12.9 | ) | (12.8 | ) | (1.7 | ) | (10.2 | ) | |||||
Long-term net flows | (0.4 | ) | (6.7 | ) | 5.1 | (3.5 | ) | (0.3 | ) | 5.0 | |||||||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (5.0 | ) | — | — | — | (5.0 | ) | — | |||||||||
Total net flows | (9.7 | ) | (11.0 | ) | 5.1 | (3.5 | ) | (5.3 | ) | 5.0 | |||||||
Market gains and losses/reinvestment | 29.3 | 19.4 | 4.4 | 2.3 | (0.3 | ) | 3.5 | ||||||||||
Foreign currency translation | 4.1 | 2.7 | 0.7 | 0.5 | — | 0.2 | |||||||||||
June 30, 2014 AUM | 802.4 | 394.2 | 181.9 | 52.6 | 77.1 | (4) | 96.6 | ||||||||||
Average AUM | 784.9 | 384.5 | 177.1 | 52.9 | 78.2 | 92.2 | |||||||||||
% of total average AUM | 100.0 | % | 49.0 | % | 22.6 | % | 6.7 | % | 10.0 | % | 11.7 | % | |||||
December 31, 2012 AUM | 667.4 | 295.6 | 171.9 | 43.6 | 73.3 | 83.0 | |||||||||||
Long-term inflows | 92.0 | 39.5 | 23.7 | 12.6 | 1.9 | 14.3 | |||||||||||
Long-term outflows | (76.3 | ) | (38.6 | ) | (18.6 | ) | (5.5 | ) | (1.5 | ) | (12.1 | ) | |||||
Long-term net flows | 15.7 | 0.9 | 5.1 | 7.1 | 0.4 | 2.2 | |||||||||||
Net flows in Invesco PowerShares QQQ fund | 0.3 | 0.3 | — | — | — | — | |||||||||||
Net flows in institutional money market funds | 4.1 | — | — | — | 4.1 | — | |||||||||||
Total net flows | 20.1 | 1.2 | 5.1 | 7.1 | 4.5 | 2.2 | |||||||||||
Market gains and losses/reinvestment | 29.2 | 31.6 | (2.4 | ) | 0.4 | — | (0.4 | ) | |||||||||
Foreign currency translation | (11.1 | ) | (7.0 | ) | (1.5 | ) | (1.4 | ) | — | (1.2 | ) | ||||||
June 30, 2013 AUM | 705.6 | 321.4 | 173.1 | 49.7 | 77.8 | 83.6 | |||||||||||
Average AUM | 705.7 | 317.2 | 175.6 | 49.3 | 79.1 | 84.5 | |||||||||||
% of total average AUM | 100.0 | % | 44.9 | % | 24.9 | % | 7.0 | % | 11.2 | % | 12.0 | % |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
December 31, 2013 AUM | 139.7 | 85.6 | 39.5 | — | — | 14.6 | |||||||||||
Long-term inflows | 15.0 | 9.7 | 3.6 | — | — | 1.7 | |||||||||||
Long-term outflows | (10.6 | ) | (6.8 | ) | (1.8 | ) | — | — | (2.0 | ) | |||||||
Long-term net flows | 4.4 | 2.9 | 1.8 | — | — | (0.3 | ) | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | — | — | — | |||||||||
Total net flows | 0.1 | (1.4 | ) | 1.8 | — | — | (0.3 | ) | |||||||||
Market gains and losses/reinvestment | 6.0 | 4.8 | 0.7 | — | — | 0.5 | |||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2014 AUM | 145.8 | 89.0 | 42.0 | — | — | 14.8 | |||||||||||
Average AUM | 141.3 | 85.9 | 40.9 | — | — | 14.5 | |||||||||||
% of total average AUM | 100.0 | % | 60.8 | % | 28.9 | % | — | % | — | % | 10.3 | % | |||||
December 31, 2012 AUM | 114.0 | 55.5 | 39.0 | — | — | 19.5 | |||||||||||
Long-term inflows | 25.3 | 13.1 | 9.7 | — | — | 2.5 | |||||||||||
Long-term outflows | (17.6 | ) | (8.0 | ) | (4.6 | ) | — | — | (5.0 | ) | |||||||
Long-term net flows | 7.7 | 5.1 | 5.1 | — | — | (2.5 | ) | ||||||||||
Net flows in Invesco PowerShares QQQ fund | 0.3 | 0.3 | — | — | — | — | |||||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 8.0 | 5.4 | 5.1 | — | — | (2.5 | ) | ||||||||||
Market gains and losses/reinvestment | 2.4 | 4.8 | (1.6 | ) | — | — | (0.8 | ) | |||||||||
Foreign currency translation | (0.7 | ) | — | — | — | — | (0.7 | ) | |||||||||
June 30, 2013 AUM | 123.7 | 65.7 | 42.5 | — | — | 15.5 | |||||||||||
Average AUM | 123.0 | 62.6 | 42.8 | — | — | 17.6 | |||||||||||
% of total average AUM | 100.0 | % | 50.9 | % | 34.8 | % | — | % | — | % | 14.3 | % |
$ in billions | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||
December 31, 2013 AUM | 778.7 | 521.3 | 27.1 | 114.8 | 60.9 | 54.6 | |||||||||||
Long-term inflows | 92.7 | 44.4 | 2.0 | 11.2 | 21.7 | 13.4 | |||||||||||
Long-term outflows | (93.1 | ) | (40.6 | ) | (2.3 | ) | (26.8 | ) | (11.8 | ) | (11.6 | ) | |||||
Long-term net flows | (0.4 | ) | 3.8 | (0.3 | ) | (15.6 | ) | 9.9 | 1.8 | ||||||||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (5.0 | ) | (4.1 | ) | — | 2.0 | (3.0 | ) | 0.1 | ||||||||
Total net flows | (9.7 | ) | (4.6 | ) | (0.3 | ) | (13.6 | ) | 6.9 | 1.9 | |||||||
Market gains and losses/reinvestment | 29.3 | 20.8 | 1.9 | 2.9 | 2.6 | 1.1 | |||||||||||
Foreign currency translation | 4.1 | — | — | 3.5 | — | 0.6 | |||||||||||
June 30, 2014 AUM | 802.4 | 537.5 | 28.7 | 107.6 | 70.4 | 58.2 | |||||||||||
December 31, 2012 AUM | 667.4 | 452.5 | 25.2 | 101.9 | 38.8 | 49.0 | |||||||||||
Long-term inflows | 92.0 | 55.7 | 2.1 | 8.1 | 16.4 | 9.7 | |||||||||||
Long-term outflows | (76.3 | ) | (46.0 | ) | (2.6 | ) | (9.3 | ) | (8.9 | ) | (9.5 | ) | |||||
Long-term net flows | 15.7 | 9.7 | (0.5 | ) | (1.2 | ) | 7.5 | 0.2 | |||||||||
Net flows in Invesco PowerShares QQQ fund | 0.3 | 0.3 | — | — | — | — | |||||||||||
Net flows in institutional money market funds | 4.1 | 4.2 | — | 0.3 | (0.1 | ) | (0.3 | ) | |||||||||
Total net flows | 20.1 | 14.2 | (0.5 | ) | (0.9 | ) | 7.4 | (0.1 | ) | ||||||||
Market gains and losses/reinvestment | 29.2 | 14.7 | 1.6 | 9.8 | 0.5 | 2.6 | |||||||||||
Foreign currency translation | (11.1 | ) | 0.1 | (1.5 | ) | (6.5 | ) | (0.3 | ) | (2.9 | ) | ||||||
June 30, 2013 AUM | 705.6 | 481.5 | 24.8 | 104.3 | 46.4 | 48.6 |
$ in billions | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||
December 31, 2013 AUM | 139.7 | 135.2 | 0.1 | — | 1.8 | 2.6 | |||||||||||
Long-term inflows | 15.0 | 14.8 | — | — | 0.2 | — | |||||||||||
Long-term outflows | (10.6 | ) | (9.9 | ) | — | — | (0.3 | ) | (0.4 | ) | |||||||
Long-term net flows | 4.4 | 4.9 | — | — | (0.1 | ) | (0.4 | ) | |||||||||
Net flows in Invesco PowerShares QQQ fund | (4.3 | ) | (4.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 0.1 | 0.6 | — | — | (0.1 | ) | (0.4 | ) | |||||||||
Market gains and losses/reinvestment | 6.0 | 5.9 | — | — | 0.1 | — | |||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2014 AUM | 145.8 | 141.7 | 0.1 | — | 1.8 | 2.2 | |||||||||||
December 31, 2012 AUM | 114.0 | 107.8 | 0.1 | — | 1.1 | 5.0 | |||||||||||
Long-term inflows | 25.3 | 24.8 | — | — | 0.4 | 0.1 | |||||||||||
Long-term outflows | (17.6 | ) | (15.2 | ) | — | — | (0.2 | ) | (2.2 | ) | |||||||
Long-term net flows | 7.7 | 9.6 | — | — | 0.2 | (2.1 | ) | ||||||||||
Net flows in Invesco PowerShares QQQ fund | 0.3 | 0.3 | — | — | — | — | |||||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 8.0 | 9.9 | — | — | 0.2 | (2.1 | ) | ||||||||||
Market gains and losses/reinvestment | 2.4 | 2.0 | — | — | — | 0.4 | |||||||||||
Foreign currency translation | (0.7 | ) | — | — | — | — | (0.7 | ) | |||||||||
June 30, 2013 AUM | 123.7 | 119.7 | 0.1 | — | 1.3 | 2.6 |
Six months ended June 30, | |||||||||||
2014 | 2013 | ||||||||||
$ in millions | Impact of CIP | Invesco Ltd. Consolidated | Impact of CIP | Invesco Ltd. Consolidated | |||||||
Total operating revenues | (17.0 | ) | 2,559.4 | (17.8 | ) | 2,247.7 | |||||
Total operating expenses | 14.3 | 1,960.3 | 11.8 | 1,706.8 | |||||||
Operating income | (31.3 | ) | 599.1 | (29.6 | ) | 540.9 | |||||
Equity in earnings of unconsolidated affiliates | (3.4 | ) | 15.5 | (1.2 | ) | 15.0 | |||||
Interest and dividend income | (1.5 | ) | 6.0 | (3.7 | ) | 4.3 | |||||
Interest expense | — | (36.9 | ) | — | (19.7 | ) | |||||
Other gains and losses, net | (4.7 | ) | 22.8 | — | 18.1 | ||||||
Other income/(loss) of CSIP, net | — | 15.9 | — | — | |||||||
Interest and dividend income of CIP | 96.3 | 96.3 | 101.0 | 101.0 | |||||||
Interest expense of CIP | (60.6 | ) | (60.6 | ) | (63.3 | ) | (63.3 | ) | |||
Other gains/(losses) of CIP, net | 63.3 | 63.3 | (22.7 | ) | (22.7 | ) | |||||
Income from continuing operations before taxes | 58.1 | 721.4 | (19.5 | ) | 573.6 | ||||||
Income tax provision | — | (196.0 | ) | — | (169.8 | ) | |||||
Income from continuing operations, net of taxes | 58.1 | 525.4 | (19.5 | ) | 403.8 | ||||||
Income/(loss) from discontinued operations, net of taxes | — | (1.8 | ) | — | (0.5 | ) | |||||
Net income | 58.1 | 523.6 | (19.5 | ) | 403.3 | ||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (54.8 | ) | (61.3 | ) | 19.1 | 21.5 | |||||
Net income attributable to common shareholders | 3.3 | 462.3 | (0.4 | ) | 424.8 |
Variance | |||||||||||
Six months ended June 30, | 2014 vs 2013 | ||||||||||
$ in millions | 2014 | 2013 | $ Change | % Change | |||||||
Investment management fees | 1,997.3 | 1,730.1 | 267.2 | 15.4 | % | ||||||
Service and distribution fees | 453.3 | 422.0 | 31.3 | 7.4 | % | ||||||
Performance fees | 36.1 | 42.1 | (6.0 | ) | (14.3 | )% | |||||
Other | 72.7 | 53.5 | 19.2 | 35.9 | % | ||||||
Total operating revenues | 2,559.4 | 2,247.7 | 311.7 | 13.9 | % | ||||||
Third-party distribution, service and advisory expenses | (816.0 | ) | (712.1 | ) | (103.9 | ) | 14.6 | % | |||
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments | 28.4 | 22.2 | 6.2 | 27.9 | % | ||||||
CIP | 17.0 | 17.8 | (0.8 | ) | (4.5 | )% | |||||
Other reconciling items | — | 2.7 | (2.7 | ) | (100.0 | )% | |||||
Net revenues | 1,788.8 | 1,578.3 | 210.5 | 13.3 | % |
Six months ended June 30, | Variance | ||||||||||
$ in millions | 2014 | 2013 | $ Change | % Change | |||||||
Employee compensation | 705.0 | 665.6 | 39.4 | 5.9 | % | ||||||
Third-party distribution, service and advisory | 816.0 | 712.1 | 103.9 | 14.6 | % | ||||||
Marketing | 53.6 | 46.0 | 7.6 | 16.5 | % | ||||||
Property, office and technology | 188.0 | 135.1 | 52.9 | 39.2 | % | ||||||
General and administrative | 197.7 | 144.8 | 52.9 | 36.5 | % | ||||||
Transaction and integration | — | 3.2 | (3.2 | ) | (100.0 | )% | |||||
Total operating expenses | 1,960.3 | 1,706.8 | 253.5 | 14.9 | % |
$ in millions | Six months ended June 30, 2014 | % of Total Operating Expenses | % of Operating Revenues | Six months ended June 30, 2013 | % of Total Operating Expenses | % of Operating Revenues | |||||||||||
Employee compensation | 705.0 | 36.0 | % | 27.5 | % | 665.6 | 39.0 | % | 29.6 | % | |||||||
Third-party distribution, service and advisory | 816.0 | 41.6 | % | 31.9 | % | 712.1 | 41.7 | % | 31.7 | % | |||||||
Marketing | 53.6 | 2.7 | % | 2.1 | % | 46.0 | 2.7 | % | 2.0 | % | |||||||
Property, office and technology | 188.0 | 9.6 | % | 7.3 | % | 135.1 | 7.9 | % | 6.0 | % | |||||||
General and administrative | 197.7 | 10.1 | % | 7.7 | % | 144.8 | 8.5 | % | 6.5 | % | |||||||
Transaction and integration | — | — | % | — | % | 3.2 | 0.2 | % | 0.1 | % | |||||||
Total operating expenses | 1,960.3 | 100.0 | % | 76.6 | % | 1,706.8 | 100.0 | % | 75.9 | % |
Variance | |||||||||||
Six months ended June 30, | 2014 vs 2013 | ||||||||||
$ in millions | 2014 | 2013 | $ Change | % Change | |||||||
Equity in earnings of unconsolidated affiliates | 15.5 | 15.0 | 0.5 | 3.3 | % | ||||||
Interest and dividend income | 6.0 | 4.3 | 1.7 | 39.5 | % | ||||||
Interest expense | (36.9 | ) | (19.7 | ) | (17.2 | ) | 87.3 | % | |||
Other gains and losses, net | 22.8 | 18.1 | 4.7 | 26.0 | % | ||||||
Other income/(loss) of CSIP, net | 15.9 | — | 15.9 | N/A | |||||||
Other income and expenses of CIP: | |||||||||||
Interest and dividend income of CIP | 96.3 | 101.0 | (4.7 | ) | (4.7 | )% | |||||
Interest expense of CIP | (60.6 | ) | (63.3 | ) | 2.7 | (4.3 | )% | ||||
Other gains/(losses) of CIP, net | 63.3 | (22.7 | ) | 86.0 | N/A | ||||||
Total other income and expenses | 122.3 | 32.7 | 89.6 | 274.0 | % |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||
$ in millions | 2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Operating revenues, U.S. GAAP basis | 1,289.9 | 1,135.5 | 2,559.4 | 2,247.7 | 1,318.1 | 1,289.9 | 2,609.7 | 2,559.4 | ||||||||||||||
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments (1) | 13.1 | 11.8 | 28.4 | 22.2 | 21.4 | 13.1 | 37.1 | 28.4 | ||||||||||||||
Third party distribution, service and advisory expenses (2) | (410.6 | ) | (366.0 | ) | (816.0 | ) | (712.1 | ) | (413.3 | ) | (410.6 | ) | (812.4 | ) | (816.0 | ) | ||||||
CIP (3) | 8.6 | 9.0 | 17.0 | 17.8 | 10.4 | 8.6 | 19.7 | 17.0 | ||||||||||||||
Other reconciling items (6) | — | — | — | 2.7 | ||||||||||||||||||
Net revenues | 901.0 | 790.3 | 1,788.8 | 1,578.3 | 936.6 | 901.0 | 1,854.1 | 1,788.8 |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||
$ in millions | 2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Operating income, U.S. GAAP basis | 354.8 | 273.9 | 599.1 | 540.9 | 364.0 | 354.8 | 702.1 | 599.1 | ||||||||||||||
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments (1) | 4.8 | 6.5 | 14.4 | 10.4 | ||||||||||||||||||
Proportional share of net operating income from joint venture investments (1) | 12.1 | 4.8 | 19.1 | 14.4 | ||||||||||||||||||
CIP (3) | 10.3 | 18.3 | 31.3 | 29.6 | 11.9 | 10.3 | 33.4 | 31.3 | ||||||||||||||
Acquisition/disposition related adjustments (4) | 3.4 | 5.6 | 7.2 | 13.4 | 2.6 | 3.4 | 6.5 | 7.2 | ||||||||||||||
Compensation expense related to market valuation changes in deferred compensation plans (5) | 3.7 | 3.0 | 8.1 | 10.5 | 1.3 | 3.7 | 5.1 | 8.1 | ||||||||||||||
Other reconciling items (6) | — | 3.3 | 79.9 | 12.0 | (1.7 | ) | — | (1.7 | ) | 79.9 | ||||||||||||
Adjusted operating income | 377.0 | 310.6 | 740.0 | 616.8 | 390.2 | 377.0 | 764.5 | 740.0 | ||||||||||||||
Operating margin* | 27.5 | % | 24.1 | % | 23.4 | % | 24.1 | % | 27.6 | % | 27.5 | % | 26.9 | % | 23.4 | % | ||||||
Adjusted operating margin** | 41.8 | % | 39.3 | % | 41.4 | % | 39.1 | % | 41.7 | % | 41.8 | % | 41.2 | % | 41.4 | % |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||
$ in millions, except per share data | 2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Net income attributable to common shareholders, U.S. GAAP basis | 274.5 | 202.6 | 462.3 | 424.8 | ||||||||||||||||||||||||||
Net income attributable to Invesco Ltd., U.S. GAAP basis | 257.3 | 274.5 | 516.9 | 462.3 | ||||||||||||||||||||||||||
CIP, eliminated upon consolidation (3) | 2.0 | 3.5 | (3.3 | ) | 0.4 | (0.4 | ) | 2.0 | 7.8 | (3.3 | ) | |||||||||||||||||||
Acquisition/disposition related adjustments, net of tax (4) | 8.2 | 14.4 | 19.1 | 22.6 | 7.4 | 8.2 | 15.7 | 19.1 | ||||||||||||||||||||||
Deferred compensation plan market valuation changes and dividend income less compensation expense, net of tax (5) | (2.3 | ) | 1.0 | (2.6 | ) | (7.5 | ) | 3.1 | (2.3 | ) | 2.2 | (2.6 | ) | |||||||||||||||||
Other reconciling items, net of tax (6) | — | 2.2 | 68.5 | 8.9 | 4.0 | — | 0.9 | 68.5 | ||||||||||||||||||||||
Adjusted net income attributable to common shareholders | 282.4 | 223.7 | 544.0 | 449.2 | ||||||||||||||||||||||||||
Adjusted net income attributable to Invesco Ltd. | 271.4 | 282.4 | 543.5 | 544.0 | ||||||||||||||||||||||||||
Average shares outstanding - diluted | 436.4 | 450.1 | 436.9 | 449.6 | 432.2 | 436.4 | 432.3 | 436.9 | ||||||||||||||||||||||
Diluted EPS | $0.63 | $0.45 | $1.06 | $0.94 | $0.60 | $0.63 | $1.20 | $1.06 | ||||||||||||||||||||||
Adjusted diluted EPS*** | $0.65 | $0.50 | $1.25 | $1.00 | $0.63 | $0.65 | $1.26 | $1.25 |
* | Operating margin is equal to operating income divided by operating revenues. |
** | Adjusted operating margin is equal to adjusted operating income divided by net revenues. |
*** | Adjusted diluted EPS is equal to adjusted net income attributable to |
(1) | Proportional share of net revenues and operating income from joint venture investments |
(2) | Third-party distribution, service and advisory expenses |
(3) | CIP |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||
$ in millions, except per share data | 2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Management fees earned from CIP, eliminated upon consolidation | 6.4 | 6.4 | 12.3 | 12.7 | 8.0 | 6.4 | 14.9 | 12.3 | ||||||||||||||
Performance fees earned from CIP, eliminated upon consolidation | 2.3 | 3.0 | 4.8 | 5.5 | 2.4 | 2.3 | 4.8 | 4.8 | ||||||||||||||
Other revenues recorded by CIP | (0.1 | ) | (0.4 | ) | (0.1 | ) | (0.4 | ) | — | (0.1 | ) | — | (0.1 | ) | ||||||||
CIP related adjustments in arriving at net revenues | 8.6 | 9.0 | 17.0 | 17.8 | 10.4 | 8.6 | 19.7 | 17.0 |
(4) | Acquisition/disposition related adjustments |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||
$ in millions | 2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Acquisition/disposition related: | ||||||||||||||||||||||
Intangible amortization expense | 3.4 | 3.8 | 7.2 | 7.8 | 2.6 | 3.4 | 5.3 | 7.2 | ||||||||||||||
Employee compensation expense | — | — | — | 2.4 | ||||||||||||||||||
Transaction and integration expense | — | 1.8 | — | 3.2 | ||||||||||||||||||
Other acquisition-related item | — | — | 1.2 | — | ||||||||||||||||||
Adjustments to operating income | 3.4 | 5.6 | 7.2 | 13.4 | 2.6 | 3.4 | 6.5 | 7.2 | ||||||||||||||
Taxation: | ||||||||||||||||||||||
Taxation on amortization | (0.4 | ) | (0.4 | ) | (0.8 | ) | (0.8 | ) | (0.3 | ) | (0.4 | ) | 4.4 | (0.8 | ) | |||||||
Deferred taxation | 5.4 | 5.4 | 10.9 | 10.8 | 5.1 | 5.4 | 5.3 | 10.9 | ||||||||||||||
Taxation on transaction and integration | — | (0.8 | ) | — | (1.3 | ) | ||||||||||||||||
Taxation on other acquisition-related items | — | — | (0.5 | ) | — | |||||||||||||||||
(Income)/loss from discontinued operations, net of taxes | (0.2 | ) | 4.6 | 1.8 | 0.5 | — | (0.2 | ) | — | 1.8 | ||||||||||||
Adjustments to net income attributable to common shareholders | 8.2 | 14.4 | 19.1 | 22.6 | ||||||||||||||||||
Adjustments to net income attributable to Invesco Ltd. | 7.4 | 8.2 | 15.7 | 19.1 |
(5) | Market movement on deferred compensation plan liabilities |
(6) | Other reconciling items |
Three months ended June 30, | Six months ended June 30, | ||||||||||
$ in millions | 2014 | 2013 | 2014 | 2013 | |||||||
Other non-GAAP adjustments: | |||||||||||
Third party distribution, service and advisory expenses - European infrastructure initiative (a) | — | — | — | 2.7 | |||||||
Adjustment to net revenues | — | — | — | 2.7 | |||||||
Business optimization charges: (b) | |||||||||||
Employee compensation | — | — | 7.2 | — | |||||||
Property, office and technology | — | — | 35.8 | — | |||||||
Regulatory charge (c) | — | — | 31.1 | — | |||||||
Legal fees for regulatory charge (c) | — | — | 0.5 | — | |||||||
Fund reimbursement settlement costs (d) | — | — | 5.3 | — | |||||||
European infrastructure initiative (a) | — | 3.3 | — | 6.3 | |||||||
U.K. FSCS levy true-up (e) | — | — | — | 3.0 | |||||||
Adjustments to operating income | — | 3.3 | 79.9 | 12.0 | |||||||
Foreign exchange hedge amortization (f) | — | (0.6 | ) | (0.2 | ) | (0.8 | ) | ||||
Taxation: | |||||||||||
Taxation on European infrastructure initiative (a) | — | (0.6 | ) | — | (1.7 | ) | |||||
Taxation on business optimization charges (b) | — | — | (9.0 | ) | — | ||||||
Taxation on regulatory charges (c) | — | — | (0.1 | ) | — | ||||||
Taxation on fund reimbursement settlement costs (d) | — | — | (2.1 | ) | — | ||||||
Taxation on U.K. FSCS levy true-up (e) | — | — | — | (0.7 | ) | ||||||
Taxation on foreign exchange hedge amortization (f) | — | 0.1 | — | 0.1 | |||||||
Adjustments to net income attributable to common shareholders | — | 2.2 | 68.5 | 8.9 |
Three months ended June 30, | Six months ended June 30, | |||||||||||
$ in millions | 2015 | 2014 | 2015 | 2014 | ||||||||
Other non-GAAP adjustments: | ||||||||||||
Business optimization charges: (a) | ||||||||||||
Employee compensation | — | — | — | 7.2 | ||||||||
Property, office and technology | (6.4 | ) | — | (6.4 | ) | 35.8 | ||||||
Regulatory charge (b) | — | — | — | 31.1 | ||||||||
Legal fees for regulatory charge (b) | — | — | — | 0.5 | ||||||||
Fund reimbursement settlement costs (c) | 4.7 | — | 4.7 | 5.3 | ||||||||
Adjustments to operating income | (1.7 | ) | — | (1.7 | ) | 79.9 | ||||||
Foreign exchange hedge (gain)/loss (d) | 6.2 | — | 3.1 | (0.2 | ) | |||||||
Taxation: | ||||||||||||
Taxation on business optimization charges (a) | 1.3 | — | 1.3 | (9.0 | ) | |||||||
Taxation on regulatory charges (b) | — | — | — | (0.1 | ) | |||||||
Taxation on fund reimbursement settlement costs (c) | (1.8 | ) | — | (1.8 | ) | (2.1 | ) | |||||
Adjustments to net income attributable to Invesco Ltd. | 4.0 | — | 0.9 | — | 68.5 |
Business optimization: Operating expenses for |
Operating expenses for the six months ended June 30, 2014 include a charge of £18.6 million ($31.1 million) |
General and administrative expenses for the |
Included within other gains and losses, net is the mark-to-market of foreign exchange put option contracts intended to provide protection against the impact of a significant decline in the Pound Sterling/U.S. Dollar foreign exchange rate. These contracts |
June 30, 2014 | December 31, 2013 | June 30, 2013 | June 30, 2015 | December 31, 2014 | June 30, 2014 | |||||||||||||||||||||||||||||||
$ in millions | Impact of CIP | Consolidated Total | Impact of CIP | Consolidated Total | Impact of CIP | Consolidated Total | Impact of CIP | Consolidated Total | Impact of CIP | Consolidated Total | Impact of CIP | Consolidated Total | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | — | 1,196.0 | — | 1,331.2 | — | 916.2 | — | 1,465.7 | — | 1,514.2 | — | 1,196.0 | ||||||||||||||||||||||||
Unsettled fund receivables | — | 1,228.8 | — | 932.4 | — | 1,058.7 | — | 1,119.2 | — | 732.4 | — | 1,228.8 | ||||||||||||||||||||||||
Accounts receivable | (2.8 | ) | 517.8 | (3.4 | ) | 500.8 | (5.9 | ) | 457.6 | (5.2 | ) | 527.6 | (3.8 | ) | 545.9 | (2.8 | ) | 517.8 | ||||||||||||||||||
Investments | (63.6 | ) | 919.1 | (55.3 | ) | 839.7 | (92.8 | ) | 723.4 | (105.4 | ) | 959.5 | (94.9 | ) | 885.4 | (63.6 | ) | 919.1 | ||||||||||||||||||
Assets of CSIP | — | 326.8 | — | 108.5 | — | — | — | 321.5 | — | 305.8 | — | 326.8 | ||||||||||||||||||||||||
Assets of CIP: | ||||||||||||||||||||||||||||||||||||
Cash and cash equivalents of CIP | 292.4 | 292.4 | 583.6 | 583.6 | 360.6 | 360.6 | 314.8 | 314.8 | 404.0 | 404.0 | 292.4 | 292.4 | ||||||||||||||||||||||||
Accounts receivable of CIP | 121.7 | 121.7 | 58.3 | 58.3 | 140.4 | 140.4 | 109.5 | 109.5 | 161.3 | 161.3 | 121.7 | 121.7 | ||||||||||||||||||||||||
Investments of CIP | 4,971.4 | 4,971.4 | 4,734.7 | 4,734.7 | 4,531.3 | 4,531.3 | 6,185.1 | 6,185.1 | 5,762.8 | 5,762.8 | 4,971.4 | 4,971.4 | ||||||||||||||||||||||||
Assets held for policyholders | — | 1,539.9 | — | 1,416.0 | — | 1,229.4 | — | 3,458.6 | — | 1,697.9 | — | 1,539.9 | ||||||||||||||||||||||||
Prepaid assets | — | 108.2 | — | 101.4 | — | 102.1 | — | 133.7 | — | 132.1 | — | 108.2 | ||||||||||||||||||||||||
Other assets | — | 144.2 | — | 182.1 | — | 178.7 | — | 83.2 | — | 92.0 | — | 144.2 | ||||||||||||||||||||||||
Property and equipment, net | — | 354.8 | — | 350.8 | — | 328.8 | ||||||||||||||||||||||||||||||
Property, equipment and software, net | — | 410.3 | — | 402.6 | — | 354.8 | ||||||||||||||||||||||||||||||
Intangible assets, net | — | 1,258.3 | — | 1,263.7 | — | 1,270.4 | — | 1,360.5 | — | 1,246.7 | — | 1,258.3 | ||||||||||||||||||||||||
Goodwill | — | 6,920.1 | — | 6,867.3 | — | 6,739.8 | — | 6,449.1 | — | 6,579.4 | — | 6,920.1 | ||||||||||||||||||||||||
Total assets | 5,319.1 | 19,899.5 | 5,317.9 | 19,270.5 | 4,933.6 | 18,138.6 | 6,498.8 | 22,898.3 | 6,229.4 | 20,462.5 | 5,319.1 | 19,899.5 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||
Accrued compensation and benefits | — | 463.2 | — | 676.4 | — | 442.5 | — | 474.8 | — | 667.3 | — | 463.2 | ||||||||||||||||||||||||
Accounts payable and accrued expenses | — | 755.6 | — | 763.1 | — | 594.2 | — | 881.3 | — | 757.3 | — | 755.6 | ||||||||||||||||||||||||
Liabilities of CIP: | ||||||||||||||||||||||||||||||||||||
Debt of CIP | 4,301.5 | 4,301.5 | 4,181.7 | 4,181.7 | 4,044.3 | 4,044.3 | 5,432.1 | 5,432.1 | 5,149.6 | 5,149.6 | 4,301.5 | 4,301.5 | ||||||||||||||||||||||||
Other liabilities of CIP | 201.0 | 201.0 | 461.8 | 461.8 | 208.2 | 208.2 | 326.8 | 326.8 | 280.9 | 280.9 | 201.0 | 201.0 | ||||||||||||||||||||||||
Policyholder payables | — | 1,539.9 | — | 1,416.0 | — | 1,229.4 | — | 3,458.6 | — | 1,697.9 | — | 1,539.9 | ||||||||||||||||||||||||
Unsettled fund payables | — | 1,219.6 | — | 882.0 | — | 1,060.1 | — | 1,106.0 | — | 730.1 | — | 1,219.6 | ||||||||||||||||||||||||
Long-term debt | — | 1,588.9 | — | 1,588.6 | — | 1,445.6 | — | 1,597.5 | — | 1,589.3 | — | 1,588.9 | ||||||||||||||||||||||||
Deferred tax liabilities, net | — | 351.9 | — | 323.6 | — | 360.3 | — | 367.0 | — | 304.8 | — | 351.9 | ||||||||||||||||||||||||
Total liabilities | 4,502.5 | 10,421.6 | 4,643.5 | 10,293.2 | 4,252.5 | 9,384.6 | 5,758.9 | 13,644.1 | 5,430.5 | 11,177.2 | 4,502.5 | 10,421.6 | ||||||||||||||||||||||||
TEMPORARY EQUITY | ||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests in CSIP | — | 155.0 | — | — | — | — | — | 169.1 | — | 165.5 | — | 155.0 | ||||||||||||||||||||||||
PERMANENT EQUITY | ||||||||||||||||||||||||||||||||||||
Equity attributable to common shareholders: | ||||||||||||||||||||||||||||||||||||
Equity attributable to Invesco Ltd.: | ||||||||||||||||||||||||||||||||||||
Common shares | — | 98.1 | — | 98.1 | — | 98.1 | — | 98.1 | — | 98.1 | — | 98.1 | ||||||||||||||||||||||||
Additional paid-in-capital | — | 6,068.8 | — | 6,100.8 | — | 6,046.2 | — | 6,131.0 | — | 6,133.6 | — | 6,068.8 | ||||||||||||||||||||||||
Treasury shares | — | (1,807.5 | ) | — | (1,700.4 | ) | — | (1,369.4 | ) | — | (2,024.3 | ) | — | (1,898.1 | ) | — | (1,807.5 | ) | ||||||||||||||||||
Retained earnings | 15.8 | 3,617.1 | 12.5 | 3,361.9 | 20.7 | 3,047.7 | 12.5 | 4,218.3 | 20.3 | 3,926.0 | 15.8 | 3,617.1 | ||||||||||||||||||||||||
Retained earnings appropriated for investors in CIP | 63.3 | 63.3 | 104.3 | 104.3 | 98.0 | 98.0 | — | — | 17.6 | 17.6 | 63.3 | 63.3 | ||||||||||||||||||||||||
Accumulated other comprehensive income, net of tax | (15.7 | ) | 509.9 | (12.7 | ) | 427.9 | (25.0 | ) | 243.9 | |||||||||||||||||||||||||||
Total equity attributable to common shareholders | 63.4 | 8,549.7 | 104.1 | 8,392.6 | 93.7 | 8,164.5 | ||||||||||||||||||||||||||||||
Accumulated other comprehensive income/(loss), net of tax | (12.5 | ) | (94.8 | ) | (20.2 | ) | 48.8 | (15.7 | ) | 509.9 | ||||||||||||||||||||||||||
Total equity attributable to Invesco Ltd. | — | 8,328.3 | 17.7 | 8,326.0 | 63.4 | 8,549.7 | ||||||||||||||||||||||||||||||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities | 753.2 | 773.2 | 570.3 | 584.7 | 587.4 | 589.5 | 739.9 | 756.8 | 781.2 | 793.8 | 753.2 | 773.2 | ||||||||||||||||||||||||
Total permanent equity | 816.6 | 9,322.9 | 674.4 | 8,977.3 | 681.1 | 8,754.0 | 739.9 | 9,085.1 | 798.9 | 9,119.8 | 816.6 | 9,322.9 | ||||||||||||||||||||||||
Total liabilities, temporary and permanent equity | 5,319.1 | 19,899.5 | 5,317.9 | 19,270.5 | 4,933.6 | 18,138.6 | 6,498.8 | 22,898.3 | 6,229.4 | 20,462.5 | 5,319.1 | 19,899.5 |
Excluding CIP (Non-GAAP) (1) | Including CIP (U.S. GAAP) | Excluding CIP (Non-GAAP) (1) | Including CIP (U.S. GAAP) | |||||||||||||||||||||||||||||||
$ in millions | June 30, 2014 | December 31, 2013 | June 30, 2013 | June 30, 2014 | December 31, 2013 | June 30, 2013 | June 30, 2015 | December 31, 2014 | June 30, 2014 | June 30, 2015 | December 31, 2014 | June 30, 2014 | ||||||||||||||||||||||
Cash and cash equivalents | 1,196.0 | 1,331.2 | 916.2 | 1,196.0 | 1,331.2 | 916.2 | 1,465.7 | 1,514.2 | 1,196.0 | 1,465.7 | 1,514.2 | 1,196.0 | ||||||||||||||||||||||
Investments of CIP | — | — | — | 4,971.4 | 4,734.7 | 4,531.3 | — | — | — | 6,185.1 | 5,762.8 | 4,971.4 | ||||||||||||||||||||||
Total assets (1) | 14,580.4 | 13,952.6 | 13,205.0 | 19,899.5 | 19,270.5 | 18,138.6 | 16,399.5 | 14,233.1 | 14,580.4 | 22,898.3 | 20,462.5 | 19,899.5 | ||||||||||||||||||||||
Long-term debt | 1,588.9 | 1,588.6 | 1,445.6 | 1,588.9 | 1,588.6 | 1,445.6 | 1,597.5 | 1,589.3 | 1,588.9 | 1,597.5 | 1,589.3 | 1,588.9 | ||||||||||||||||||||||
Long-term debt of CIP | — | — | — | 4,301.5 | 4,181.7 | 4,044.3 | — | — | — | 5,432.1 | 5,149.6 | 4,301.5 | ||||||||||||||||||||||
Long-term debt / Long-term debt plus CIP debt | 1,588.9 | 1,588.6 | 1,445.6 | 5,890.4 | 5,770.3 | 5,489.9 | 1,597.5 | 1,589.3 | 1,588.9 | 7,029.6 | 6,738.9 | 5,890.4 | ||||||||||||||||||||||
Total liabilities (1) | 5,919.1 | 5,649.7 | 5,132.1 | 10,421.6 | 10,293.2 | 9,384.6 | 7,885.2 | 5,746.7 | 5,919.1 | 13,644.1 | 11,177.2 | 10,421.6 | ||||||||||||||||||||||
Total permanent equity (1) | 8,506.3 | 8,302.9 | 8,072.9 | 9,322.9 | 8,977.3 | 8,754.0 | 8,345.2 | 8,320.9 | 8,506.3 | 9,085.1 | 9,119.8 | 9,322.9 | ||||||||||||||||||||||
Debt/Equity % (1,2) | 18.7 | % | 19.1 | % | 17.9 | % | 63.2 | % | 64.3 | % | 62.7 | % | 19.1 | % | 19.1 | % | 18.7 | % | 77.4 | % | 73.9 | % | 63.2 | % |
(1) | The balance sheet line items excluding CIP are non-GAAP financial measures. To calculate total assets excluding CIP at June 30, |
(2) | The debt-to-equity ratio excluding CIP is a non-GAAP financial measure. The debt-to-equity ratio is calculated as long-term debt divided by total permanent equity for the balance sheet excluding CIP and long-term debt plus long-term debt of CIP divided by total permanent equity for the balance sheet including CIP. Management believes that it is important to illustrate for users of our Condensed Consolidated Financial Statements that calculating a balance sheet measure, such as the debt-to-equity ratio, including the impact of CIP causes the company to appear far more indebted than is the case. As disclosed above, the debt of CIP is not the company's debt, nor do the noteholders of the CIP debt have any recourse to the company. |
Six months ended June 30, 2014 | Six months ended June 30, 2013 | Six months ended June 30, 2015 | Six months ended June 30, 2014 | |||||||||||||||||||
$ in millions | Impact of CIP | Invesco Ltd. Consolidated | Impact of CIP | Invesco Ltd. Consolidated | Impact of CIP | Invesco Ltd. Consolidated | Impact of CIP | Invesco Ltd. Consolidated | ||||||||||||||
Operating activities: | ||||||||||||||||||||||
Net income | 58.1 | 523.6 | (19.5 | ) | 403.3 | (3.1 | ) | 528.0 | 58.1 | 523.6 | ||||||||||||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | ||||||||||||||||||||||
Amortization and depreciation | — | 45.8 | — | 44.2 | — | 46.0 | — | 45.8 | ||||||||||||||
Share-based compensation expense | — | 70.0 | — | 69.4 | — | 76.7 | — | 70.0 | ||||||||||||||
(Gain)/loss on disposal of business, property and equipment, net | — | — | — | 0.5 | ||||||||||||||||||
Other (gains)/losses, net | 4.7 | (22.8 | ) | — | (18.1 | ) | 3.9 | 6.1 | 4.7 | (22.8 | ) | |||||||||||
Other (gains)/losses of CSIP, net | — | (11.5 | ) | — | — | — | (8.2 | ) | — | (11.5 | ) | |||||||||||
Other (gains)/losses of CIP, net | (63.3 | ) | (63.3 | ) | 22.7 | 22.7 | (4.7 | ) | (4.7 | ) | (63.3 | ) | (63.3 | ) | ||||||||
Equity in earnings of unconsolidated affiliates | 3.4 | (15.5 | ) | 1.3 | (15.0 | ) | 1.2 | (23.8 | ) | 3.4 | (15.5 | ) | ||||||||||
Dividends from unconsolidated affiliates | — | 15.4 | — | 1.9 | — | 1.4 | — | 15.4 | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||
(Increase)/decrease in cash held by CIP | 260.1 | 260.1 | (76.0 | ) | (76.0 | ) | 88.3 | 88.3 | 260.1 | 260.1 | ||||||||||||
(Increase)/decrease in cash held by CSIP | — | (1.0 | ) | — | — | — | (4.9 | ) | — | (1.0 | ) | |||||||||||
(Purchase)/sale of trading investments, net | — | (10.4 | ) | — | 0.6 | — | (55.1 | ) | — | (10.4 | ) | |||||||||||
(Increase)/decrease in receivables | (17.0 | ) | (402.7 | ) | 4.9 | (711.9 | ) | (18.1 | ) | (2,049.9 | ) | (17.0 | ) | (402.7 | ) | |||||||
Increase/(decrease) in payables | (9.4 | ) | 162.6 | 33.5 | 534.0 | 5.9 | 1,858.6 | (9.4 | ) | 162.6 | ||||||||||||
Net cash provided by/(used in) operating activities | 236.6 | 550.3 | (33.1 | ) | 255.6 | 73.4 | 458.5 | 236.6 | 550.3 | |||||||||||||
Investing activities: | ||||||||||||||||||||||
Purchase of property and equipment | — | (49.8 | ) | — | (40.3 | ) | ||||||||||||||||
Purchase of property, equipment and software | — | (50.4 | ) | — | (49.8 | ) | ||||||||||||||||
Purchase of available-for-sale investments | 33.7 | (112.5 | ) | 6.6 | (25.2 | ) | 45.1 | (35.6 | ) | 33.7 | (112.5 | ) | ||||||||||
Sale of available-for-sale investments | (37.5 | ) | 75.1 | (3.1 | ) | 23.0 | (32.5 | ) | 18.0 | (37.5 | ) | 75.1 | ||||||||||
Purchase of investments by CIP | (2,848.8 | ) | (2,848.8 | ) | (2,504.3 | ) | (2,504.3 | ) | (1,927.1 | ) | (1,927.1 | ) | (2,848.8 | ) | (2,848.8 | ) | ||||||
Sale of investments by CIP | 2,108.5 | 2,108.5 | 2,584.6 | 2,584.6 | 1,591.1 | 1,591.1 | 2,108.5 | 2,108.5 | ||||||||||||||
Purchase of investments by CSIP | — | (476.1 | ) | — | — | — | (273.2 | ) | — | (476.1 | ) | |||||||||||
Sale of investments by CSIP | — | 274.3 | — | — | — | 274.7 | — | 274.3 | ||||||||||||||
Purchase of other investments | 2.2 | (67.5 | ) | — | (164.6 | ) | 0.5 | (89.4 | ) | 2.2 | (67.5 | ) | ||||||||||
Sale of other investments | — | 40.3 | — | 39.7 | — | 59.7 | — | 40.3 | ||||||||||||||
Returns of capital and distributions from unconsolidated partnership investments | (2.0 | ) | 25.9 | (1.8 | ) | 9.9 | (0.1 | ) | 34.4 | (2.0 | ) | 25.9 | ||||||||||
Acquisition earn-out payments | — | — | — | (1.2 | ) | |||||||||||||||||
Sale of business | — | 60.8 | — | — | — | — | — | 60.8 | ||||||||||||||
Net cash provided by/(used in) investing activities | (743.9 | ) | (969.8 | ) | 82.0 | (78.4 | ) | (323.0 | ) | (397.8 | ) | (743.9 | ) | (969.8 | ) | |||||||
Financing activities: | ||||||||||||||||||||||
Proceeds from exercises of share options | — | 5.2 | — | 10.8 | — | 1.2 | — | 5.2 | ||||||||||||||
Purchases of treasury shares | — | (169.6 | ) | — | (120.5 | ) | — | (158.1 | ) | — | (169.6 | ) | ||||||||||
Dividends paid | — | (207.1 | ) | — | (178.4 | ) | — | (224.6 | ) | — | (207.1 | ) | ||||||||||
Excess tax benefits from share-based compensation | — | 17.6 | — | 16.7 | — | 18.3 | — | 17.6 | ||||||||||||||
Repayment on unsettled fund account | — | (35.7 | ) | — | — | |||||||||||||||||
Repayment of unsettled fund account | — | — | — | (35.7 | ) | |||||||||||||||||
Third-party capital invested into CIP | 155.8 | 155.8 | 34.5 | 34.5 | 17.9 | 17.9 | 155.8 | 155.8 | ||||||||||||||
Third-party capital distributed by CIP | (68.0 | ) | (68.0 | ) | (128.1 | ) | (128.1 | ) | (64.1 | ) | (64.1 | ) | (68.0 | ) | (68.0 | ) | ||||||
Third-party capital invested into CSIP | — | 152.5 | — | — | — | 1.7 | — | 152.5 | ||||||||||||||
Third-party capital distributed by CSIP | — | (1.4 | ) | — | — | — | — | — | (1.4 | ) | ||||||||||||
Borrowings of debt by CIP | 715.0 | 715.0 | 409.4 | 409.4 | 945.9 | 945.9 | 715.0 | 715.0 | ||||||||||||||
Repayments of debt by CIP | (295.5 | ) | (295.5 | ) | (364.7 | ) | (364.7 | ) | (650.1 | ) | (650.1 | ) | (295.5 | ) | (295.5 | ) | ||||||
Net borrowings/(repayments) under credit facility | — | — | — | 259.5 | — | 7.9 | — | — | ||||||||||||||
Net cash provided by/(used in) financing activities | 507.3 | 268.8 | (48.9 | ) | (60.8 | ) | 249.6 | (104.0 | ) | 507.3 | 268.8 | |||||||||||
Increase/(decrease) in cash and cash equivalents | — | (150.7 | ) | — | 116.4 | — | (43.3 | ) | — | (150.7 | ) | |||||||||||
Foreign exchange movement on cash and cash equivalents | — | 15.5 | — | (35.7 | ) | — | (5.2 | ) | — | 15.5 | ||||||||||||
Cash and cash equivalents, beginning of period | — | 1,331.2 | — | 835.5 | — | 1,514.2 | — | 1,331.2 | ||||||||||||||
Cash and cash equivalents, end of period | — | 1,196.0 | — | 916.2 | — | 1,465.7 | — | 1,196.0 |
$ in millions | June 30, 2014 | December 31, 2013 | June 30, 2015 | December 31, 2014 | ||||||
Unsecured Senior Notes: | ||||||||||
$600 million 3.125% - due November 30, 2022 | 599.6 | 599.6 | 599.6 | 599.6 | ||||||
$600 million 4.000% - due January 30, 2024 | 596.0 | 595.8 | 596.4 | 596.2 | ||||||
$400 million 5.375% - due November 30, 2043 | 393.3 | 393.2 | 393.6 | 393.5 | ||||||
Floating rate credit facility expiring December 17, 2018 | 7.9 | — | ||||||||
Long-term debt | 1,588.9 | 1,588.6 | 1,597.5 | 1,589.3 |
$ millions | Total | Q2 2014 | Q1 2014 | Q4 2013 | Q3 2013 | Total | Q2 2015 | Q1 2015 | Q4 2014 | Q3 2014 | ||||||||||||||||||||
Net income attributable to common shareholders | 977.8 | 274.5 | 187.8 | 287.4 | 228.1 | |||||||||||||||||||||||||
Net (income)/loss attributable to common shareholders arising from CIP | 5.0 | 2.0 | (5.3 | ) | (1.1 | ) | 9.4 | |||||||||||||||||||||||
Net income attributable to Invesco Ltd. | 1,042.7 | 257.3 | 259.6 | 269.8 | 256.0 | |||||||||||||||||||||||||
Impact of CIP on net income attributable to Invesco Ltd. | 3.3 | (0.4 | ) | 8.2 | (2.1 | ) | (2.4 | ) | ||||||||||||||||||||||
Tax expense | 398.7 | 107.1 | 87.8 | 111.7 | 92.1 | 404.5 | 109.4 | 101.3 | 99.3 | 94.5 | ||||||||||||||||||||
Amortization/depreciation/impairment | 101.7 | 22.4 | 23.4 | 34.1 | 21.8 | 89.6 | 23.3 | 22.7 | 22.0 | 21.6 | ||||||||||||||||||||
Interest expense | 61.8 | 18.2 | 18.7 | 15.2 | 9.7 | 74.5 | 19.6 | 18.7 | 18.1 | 18.1 | ||||||||||||||||||||
Share-based compensation expense | 133.7 | 33.5 | 36.5 | 30.1 | 33.6 | 144.7 | 36.0 | 40.7 | 33.7 | 34.3 | ||||||||||||||||||||
Unrealized gains and losses from investments, net* | (12.5 | ) | (4.8 | ) | (0.3 | ) | (3.7 | ) | (3.7 | ) | 1.5 | 2.3 | 1.4 | (4.1 | ) | 1.9 | ||||||||||||||
EBITDA** | 1,666.2 | 452.9 | 348.6 | 473.7 | 391.0 | 1,760.8 | 447.5 | 452.6 | 436.7 | 424.0 | ||||||||||||||||||||
Adjusted debt** | $1,625.0 | $1,630.9 | ||||||||||||||||||||||||||||
Leverage ratio (Debt/EBITDA - maximum 3.25:1.00) | 0.98 | 0.93 | ||||||||||||||||||||||||||||
Interest coverage (EBITDA/Interest Expense - minimum 4.00:1.00) | 26.96 | 23.63 |
* | Adjustments for unrealized gains and losses from investments, as defined in our credit facility, may also include non-cash gains and losses on investments to the extent that they do not represent anticipated future cash receipts or expenditures. |
** | EBITDA and Adjusted debt are non-GAAP financial measures; however management does not use these measures for anything other than these debt covenant calculations. The calculation of EBITDA above (a reconciliation from net income attributable to |
Month | Total Number of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Maximum Number at end of period (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs(2) (millions) | ||||||||
April 1-30, 2014 | 3,289 | $ | 36.35 | — | 1,376.8 | |||||||
May 1-31, 2014 | 762,801 | $ | 36.01 | 690,200 | 1,352.0 | |||||||
June 1-30, 2014 | 752,116 | $ | 37.57 | 670,700 | 1,326.8 | |||||||
Total | 1,518,206 | 1,360,900 |
Month | Total Number of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Maximum Number at end of period (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs(2) (millions) | |||||||||
April 1-30, 2015 | 718,814 | $ | 40.22 | 686,440 | $1,122.7 | ||||||||
May 1-31, 2015 | 632,187 | $ | 40.91 | 627,800 | $1,097.0 | ||||||||
June 1-30, 2015 | 736,875 | $ | 39.45 | 717,700 | $1,068.7 | ||||||||
Total | 2,087,876 | 2,031,940 |
(1) | An aggregate of |
(2) |
3.1 | Memorandum of Association of Invesco Ltd., incorporating amendments up to and including December 4, 2007, incorporated by reference to exhibit 3.1 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2007 |
3.2 | Second Amended and Restated Bye-Laws of Invesco Ltd., incorporating amendments up to and including May 15, 2014, incorporated by reference to Exhibit 3.2 to Invesco’s Quarterly Report of Form 10-Q, filed with the Securities and Exchange Commission on July 31, 2014 |
31.1 | Certification of Martin L. Flanagan pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
31.2 | Certification of Loren M. Starr pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
32.1 | Certification of Martin L. Flanagan pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to |
32.2 | Certification of Loren M. Starr pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB | XBRL Taxonomy Extension Definition Linkbase Document |
101.PRE | XBRL Taxonomy Extension Labels Linkbase Document |
101.DEF | XBRL Taxonomy Extension Presentation Linkbase Document |
INVESCO LTD. | |
July | /s/ MARTIN L. FLANAGAN |
Martin L. Flanagan | |
President and Chief Executive Officer | |
July | /s/ LOREN M. STARR |
Loren M. Starr | |
Senior Managing Director and Chief Financial Officer |