(Mark One) | ||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | ||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | ||
04-3218510 | ||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock ($0.01 par value) | AMG | New York Stock Exchange | ||
5.875% Junior Subordinated Notes due 2059 | MGR | New York Stock Exchange | ||
4.750% Junior Subordinated Notes due 2060 | MGRB | New York Stock Exchange | ||
4.200% Junior Subordinated Notes due 2061 | MGRD | New York Stock Exchange | ||
6.750% Junior Subordinated Notes due 2064 | MGRE | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
For the Three Months Ended March 31, | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | 2023 | 2024 | |||||||||||||||
Consolidated revenue | $517.4 | $499.9 | ||||||||||||||||
2016 | 2017 | 2016 | 2017 | |||||||||||||||
Revenue | $ | 544.7 | $ | 585.7 | $ | 1,644.2 | $ | 1,700.9 | ||||||||||
Operating expenses: | ||||||||||||||||||
Consolidated expenses: | ||||||||||||||||||
Compensation and related expenses | 244.2 | 238.7 | 702.9 | 722.9 | 222.3 | 240.4 | ||||||||||||
Selling, general and administrative | 94.2 | 91.9 | 286.7 | 269.7 | 97.1 | 91.7 | ||||||||||||
Intangible amortization and impairments | 26.9 | 21.2 | 82.2 | 65.1 | 12.5 | 7.3 | ||||||||||||
Interest expense | 30.5 | 29.9 | ||||||||||||||||
Depreciation and other amortization | 5.0 | 4.8 | 15.0 | 14.9 | 3.7 | 3.0 | ||||||||||||
Other operating expenses (net) | 3.4 | 10.3 | 25.9 | 32.0 | ||||||||||||||
Total operating expense (net) | 373.7 | 366.9 | 1,112.7 | 1,104.6 | ||||||||||||||
Other expenses (net) | 14.4 | 9.0 | ||||||||||||||||
Total consolidated expenses | 380.5 | 381.3 | ||||||||||||||||
171.0 | 218.8 | 531.5 | 596.3 | |||||||||||||||
Income from equity method investments | 67.5 | 70.7 | 200.7 | 231.6 | ||||||||||||||
Operating income | 238.5 | 289.5 | 732.2 | 827.9 | ||||||||||||||
Equity method income (net) | 58.6 | 117.5 | ||||||||||||||||
Non-operating (income) and expenses: | ||||||||||||||||||
Investment and other income | (11.0 | ) | (15.6 | ) | (26.7 | ) | (44.7 | ) | 38.0 | 18.0 | ||||||||
Interest expense | 22.4 | 21.5 | 66.4 | 65.8 | ||||||||||||||
Imputed interest expense and contingent payment arrangements | 0.9 | 0.7 | (0.2 | ) | 3.7 | |||||||||||||
Income before income taxes | 233.5 | 254.1 | ||||||||||||||||
12.3 | 6.6 | 39.5 | 24.8 | |||||||||||||||
Income before income taxes | 226.2 | 282.9 | 692.7 | 803.1 | ||||||||||||||
Income taxes | 50.3 | 66.1 | 159.7 | 188.2 | ||||||||||||||
Income tax expense | 45.0 | 55.4 | ||||||||||||||||
Net income | 175.9 | 216.8 | 533.0 | 614.9 | 188.5 | 198.7 | ||||||||||||
Net income (non-controlling interests) | (65.7 | ) | (91.4 | ) | (210.5 | ) | (240.7 | ) | (54.0) | (48.9) | ||||||||
Net income (controlling interest) | $ | 110.2 | $ | 125.4 | $ | 322.5 | $ | 374.2 | $134.5 | $149.8 | ||||||||
Average shares outstanding (basic) | 53.9 | 55.8 | 53.9 | 56.3 | 35.9 | 32.8 | ||||||||||||
Average shares outstanding (diluted) | 56.6 | 58.3 | 56.6 | 58.8 | 39.9 | 40.1 | ||||||||||||
Earnings per share (basic) | $ | 2.04 | $ | 2.25 | $ | 5.98 | $ | 6.65 | $3.74 | $4.56 | ||||||||
Earnings per share (diluted) | $ | 2.02 | $ | 2.22 | $ | 5.90 | $ | 6.57 | $3.47 | $4.14 | ||||||||
Dividends per share | $ | — | $ | 0.20 | $ | — | $ | 0.60 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||||
Net income | $ | 175.9 | $ | 216.8 | $ | 533.0 | $ | 614.9 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Controlling interest: | |||||||||||||||
Foreign currency translation gain (loss) | (7.4 | ) | 47.5 | (41.2 | ) | 79.0 | |||||||||
Change in net realized and unrealized gain (loss) on derivative securities, net of tax | 0.1 | 0.2 | 0.0 | (1.7 | ) | ||||||||||
Change in net unrealized gain (loss) on investment securities, net of tax | 2.8 | (4.4 | ) | (21.5 | ) | (5.5 | ) | ||||||||
Other comprehensive income (loss) (controlling interest) | (4.5 | ) | 43.3 | (62.7 | ) | 71.8 | |||||||||
Non-controlling interest: | |||||||||||||||
Foreign currency translation gain (loss) | (9.4 | ) | 5.5 | (31.5 | ) | 13.1 | |||||||||
Change in net realized and unrealized gain (loss) on derivative securities, net of tax | 0.0 | (0.1 | ) | (0.7 | ) | 0.9 | |||||||||
Change in net unrealized gain (loss) on investment securities, net of tax | 1.2 | 0.1 | 0.7 | 2.1 | |||||||||||
Other comprehensive income (loss) (non-controlling interest) | (8.2 | ) | 5.5 | (31.5 | ) | 16.1 | |||||||||
Other comprehensive income (loss) | (12.7 | ) | 48.8 | (94.2 | ) | 87.9 | |||||||||
Comprehensive income | 163.2 | 265.6 | 438.8 | 702.8 | |||||||||||
Comprehensive income (non-controlling interests) | (57.5 | ) | (96.9 | ) | (179.0 | ) | (256.8 | ) | |||||||
Comprehensive income (controlling interest) | $ | 105.7 | $ | 168.7 | $ | 259.8 | $ | 446.0 |
For the Three Months Ended March 31, | |||
2023 | 2024 | ||
Net income | $188.5 | $198.7 | |
Other comprehensive income, net of tax: | |||
Foreign currency translation gain | 26.8 | 5.6 | |
Change in net realized and unrealized gain (loss) on derivative financial instruments | 0.2 | 0.3 | |
Change in net unrealized gain (loss) on available-for-sale debt securities | 0.4 | 0.4 | |
Other comprehensive income, net of tax | 27.4 | 6.3 | |
Comprehensive income | 215.9 | 205.0 | |
Comprehensive income (non-controlling interests) | (56.3) | (45.4) | |
Comprehensive income (controlling interest) | $159.6 | $159.6 |
December 31, 2016 | September 30, 2017 | |||||||||
December 31, 2023 | March 31, 2024 | |||||||||
Assets | ||||||||||
Cash and cash equivalents | $ | 430.8 | $ | 374.7 | $813.6 | $793.4 | ||||
Receivables | 383.3 | 487.4 | 368.4 | 525.7 | ||||||
Investments in marketable securities | 122.4 | 92.4 | 461.0 | 348.9 | ||||||
Other investments | 147.5 | 160.5 | ||||||||
Fixed assets (net) | 110.1 | 111.7 | ||||||||
Goodwill | 2,628.1 | 2,661.8 | 2,523.6 | 2,517.5 | ||||||
Acquired client relationships (net) | 1,497.4 | 1,467.2 | 1,812.4 | 1,802.3 | ||||||
Equity method investments in Affiliates | 3,368.3 | 3,290.8 | ||||||||
Equity method investments in Affiliates (net) | 2,288.5 | 2,214.1 | ||||||||
Fixed assets (net) | 67.3 | 65.6 | ||||||||
Other investments | 480.9 | 522.9 | ||||||||
Other assets | 61.2 | 54.9 | 243.9 | 234.2 | ||||||
Total assets | $ | 8,749.1 | $ | 8,701.4 | $9,059.6 | $9,024.6 | ||||
Liabilities and Equity | ||||||||||
Payables and accrued liabilities | $ | 729.3 | $ | 698.3 | $628.5 | $634.1 | ||||
Senior bank debt | 868.6 | 868.9 | ||||||||
Senior notes | 939.4 | 741.0 | ||||||||
Convertible securities | 301.6 | 303.7 | ||||||||
Deferred income taxes | 660.8 | 702.3 | ||||||||
Debt | 2,537.5 | 2,524.9 | ||||||||
Deferred income tax liability (net) | 463.8 | 487.5 | ||||||||
Other liabilities | 149.4 | 178.3 | 466.3 | 464.6 | ||||||
Total liabilities | 3,649.1 | 3,492.5 | 4,096.1 | 4,111.1 | ||||||
Commitments and contingencies (Note 5) | ||||||||||
Commitments and contingencies (Note 8) | ||||||||||
Redeemable non-controlling interests | 673.5 | 804.6 | 393.4 | 393.0 | ||||||
Equity: | ||||||||||
Common stock ($0.01 par value, 153.0 shares authorized; 58.5 shares outstanding in 2016 and 2017) | 0.6 | 0.6 | ||||||||
Common stock ($0.01 par value, 153.0 shares authorized; 58.5 shares issued as of December 31, 2023 and March 31, 2024) | 0.6 | 0.6 | ||||||||
Additional paid-in capital | 1,073.5 | 849.7 | 741.4 | 712.1 | ||||||
Accumulated other comprehensive loss | (122.9 | ) | (51.1 | ) | (167.6) | (157.8) | ||||
Retained earnings | 3,054.4 | 3,394.4 | 6,389.6 | 6,539.1 | ||||||
4,005.6 | 4,193.6 | |||||||||
Less: Treasury stock, at cost (1.8 shares in 2016 and 2.9 shares in 2017) | (386.0 | ) | (566.1 | ) | ||||||
6,964.0 | 7,094.0 | |||||||||
Less: Treasury stock, at cost (25.3 shares and 26.0 shares as of December 31, 2023 and March 31, 2024, respectively) | (3,376.1) | (3,503.8) | ||||||||
Total stockholders' equity | 3,619.6 | 3,627.5 | 3,587.9 | 3,590.2 | ||||||
Non-controlling interests | 806.9 | 776.8 | 982.2 | 930.3 | ||||||
Total equity | 4,426.5 | 4,404.3 | 4,570.1 | 4,520.5 | ||||||
Total liabilities and equity | $ | 8,749.1 | $ | 8,701.4 | $9,059.6 | $9,024.6 |
Total Stockholders’ Equity | ||||||||||||||||||||||||||||||
Shares Outstanding | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock at Cost | Non- controlling Interests | Total Equity | |||||||||||||||||||||||
December 31, 2015 | 55.8 | $ | 0.6 | $ | 694.9 | $ | (18.1 | ) | $ | 2,581.6 | $ | (421.9 | ) | $ | 932.0 | $ | 3,769.1 | |||||||||||||
Net income | — | — | — | — | 322.5 | — | 210.5 | 533.0 | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | (62.7 | ) | — | — | (31.5 | ) | (94.2 | ) | |||||||||||||||||||
Share-based compensation | — | — | 30.7 | — | — | — | — | 30.7 | ||||||||||||||||||||||
Common stock issued under share-based incentive plans | — | — | (35.6 | ) | — | — | 41.8 | — | 6.2 | |||||||||||||||||||||
Share repurchases | — | — | — | — | — | (33.4 | ) | — | (33.4 | ) | ||||||||||||||||||||
Issuance costs and other | — | — | (2.3 | ) | — | — | — | — | (2.3 | ) | ||||||||||||||||||||
Common stock issued under forward equity agreement | 0.9 | 0.0 | 150.3 | — | — | — | — | 150.3 | ||||||||||||||||||||||
Affiliate equity activity: | ||||||||||||||||||||||||||||||
Affiliate equity expense | — | — | 7.7 | — | — | — | 27.2 | 34.9 | ||||||||||||||||||||||
Issuances | — | — | (2.5 | ) | — | — | — | 14.2 | 11.7 | |||||||||||||||||||||
Repurchases | — | — | 14.0 | — | — | — | 0.4 | 14.4 | ||||||||||||||||||||||
Changes in redemption value of Redeemable non-controlling interests | — | — | (84.9 | ) | — | — | — | — | (84.9 | ) | ||||||||||||||||||||
Transfers to Redeemable non-controlling interests | — | — | — | — | — | — | (38.3 | ) | (38.3 | ) | ||||||||||||||||||||
Capital contributions by Affiliate equity holders | — | — | — | — | — | — | 2.7 | 2.7 | ||||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | — | (270.1 | ) | (270.1 | ) | ||||||||||||||||||||
September 30, 2016 | 56.7 | $ | 0.6 | $ | 772.3 | $ | (80.8 | ) | $ | 2,904.1 | $ | (413.5 | ) | $ | 847.1 | $ | 4,029.8 |
Three Months Ended March 31, 2023 | Total Stockholders’ Equity | |||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock at Cost | Non- controlling Interests | Total Equity | ||||||||
December 31, 2022 | $0.6 | $695.5 | $(203.4) | $5,718.2 | $(2,980.6) | $945.3 | $4,175.6 | |||||||
Net income | — | — | — | 134.5 | — | 54.0 | 188.5 | |||||||
Other comprehensive income, net of tax | — | — | 25.1 | — | — | 2.3 | 27.4 | |||||||
Share-based compensation | — | 14.7 | — | — | — | — | 14.7 | |||||||
Common stock issued under share-based incentive plans | — | (39.1) | — | — | 14.0 | — | (25.1) | |||||||
Dividends ($0.01 per share) | — | — | — | (0.4) | — | — | (0.4) | |||||||
Affiliate equity activity: | ||||||||||||||
Affiliate equity compensation | — | (0.9) | — | — | — | 11.3 | 10.4 | |||||||
Issuances | — | (3.8) | — | — | — | 17.1 | 13.3 | |||||||
Purchases | — | (0.8) | — | — | — | 0.3 | (0.5) | |||||||
Changes in redemption value of Redeemable non- controlling interests | — | (101.7) | — | — | — | — | (101.7) | |||||||
Capital contributions and other | — | — | — | — | — | (3.3) | (3.3) | |||||||
Distributions to non-controlling interests | — | — | — | — | — | (79.5) | (79.5) | |||||||
March 31, 2023 | $0.6 | $563.9 | $(178.3) | $5,852.3 | $(2,966.6) | $947.5 | $4,219.4 |
Total Stockholders’ Equity | ||||||||||||||||||||||||||||||
Shares Outstanding | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock at Cost | Non- controlling Interests | Total Equity | |||||||||||||||||||||||
December 31, 2016 | 58.5 | $ | 0.6 | $ | 1,073.5 | $ | (122.9 | ) | $ | 3,054.4 | $ | (386.0 | ) | $ | 806.9 | $ | 4,426.5 | |||||||||||||
Net income | — | — | — | — | 374.2 | — | 240.7 | 614.9 | ||||||||||||||||||||||
Other comprehensive income | — | — | — | 71.8 | — | — | 16.1 | 87.9 | ||||||||||||||||||||||
Share-based compensation | — | — | 30.0 | — | — | — | — | 30.0 | ||||||||||||||||||||||
Common stock issued under share-based incentive plans | — | — | (81.8 | ) | — | — | 96.3 | — | 14.5 | |||||||||||||||||||||
Share repurchases | — | — | — | — | — | (276.4 | ) | — | (276.4 | ) | ||||||||||||||||||||
Dividends | — | — | — | — | (34.2 | ) | — | — | (34.2 | ) | ||||||||||||||||||||
Issuance costs and other | — | — | 0.6 | — | — | — | — | 0.6 | ||||||||||||||||||||||
Affiliate equity activity: | ||||||||||||||||||||||||||||||
Affiliate equity expense | — | — | 9.4 | — | — | — | 29.2 | 38.6 | ||||||||||||||||||||||
Issuances | — | — | (0.2 | ) | — | — | — | 3.0 | 2.8 | |||||||||||||||||||||
Repurchases | — | — | 34.6 | — | — | — | — | 34.6 | ||||||||||||||||||||||
Changes in redemption value of Redeemable non-controlling interests | — | — | (216.4 | ) | — | — | — | — | (216.4 | ) | ||||||||||||||||||||
Transfers to Redeemable non-controlling interests | — | — | — | — | — | — | (56.8 | ) | (56.8 | ) | ||||||||||||||||||||
Capital contributions by Affiliate equity holders | — | — | — | — | — | — | 4.5 | 4.5 | ||||||||||||||||||||||
Distributions to non-controlling interests | — | — | — | — | — | — | (266.8 | ) | (266.8 | ) | ||||||||||||||||||||
September 30, 2017 | 58.5 | $ | 0.6 | $ | 849.7 | $ | (51.1 | ) | $ | 3,394.4 | $ | (566.1 | ) | $ | 776.8 | $ | 4,404.3 |
Three Months Ended March 31, 2024 | Total Stockholders’ Equity | |||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock at Cost | Non- controlling Interests | Total Equity | ||||||||
December 31, 2023 | $0.6 | $741.4 | $(167.6) | $6,389.6 | $(3,376.1) | $982.2 | $4,570.1 | |||||||
Net income | — | — | — | 149.8 | — | 48.9 | 198.7 | |||||||
Other comprehensive income (loss), net of tax | — | — | 9.8 | — | — | (3.5) | 6.3 | |||||||
Share-based compensation | — | 21.1 | — | — | — | — | 21.1 | |||||||
Common stock issued under share-based incentive plans | — | (42.4) | — | — | 23.5 | — | (18.9) | |||||||
Share repurchases | — | — | — | — | (151.2) | — | (151.2) | |||||||
Dividends ($0.01 per share) | — | — | — | (0.3) | — | — | (0.3) | |||||||
Affiliate equity activity: | ||||||||||||||
Affiliate equity compensation | — | 5.6 | — | — | — | 11.4 | 17.0 | |||||||
Issuances | — | (3.0) | — | — | — | 10.3 | 7.3 | |||||||
Purchases | — | 7.5 | — | — | — | (17.1) | (9.6) | |||||||
Changes in redemption value of Redeemable non- controlling interests | — | (18.1) | — | — | — | — | (18.1) | |||||||
Capital contributions and other | — | — | — | — | — | (20.1) | (20.1) | |||||||
Distributions to non-controlling interests | — | — | — | — | — | (81.8) | (81.8) | |||||||
March 31, 2024 | $0.6 | $712.1 | $(157.8) | $6,539.1 | $(3,503.8) | $930.3 | $4,520.5 |
For the Nine Months Ended September 30, | |||||||
2016 | 2017 | ||||||
Cash flow from (used in) operating activities: | |||||||
Net income | $ | 533.0 | $ | 614.9 | |||
Adjustments to reconcile Net income to net Cash flow from operating activities: | |||||||
Intangible amortization and impairments | 82.2 | 65.1 | |||||
Depreciation and other amortization | 15.0 | 14.9 | |||||
Deferred income tax provision | 69.8 | 80.3 | |||||
Income from equity method investments, net of amortization | (200.7 | ) | (231.6 | ) | |||
Distributions of earnings received from equity method investments | 287.0 | 368.0 | |||||
Amortization of issuance costs | 3.6 | 3.3 | |||||
Share-based compensation and Affiliate equity expense | 65.6 | 68.6 | |||||
Other non-cash items | (14.3 | ) | (30.7 | ) | |||
Changes in assets and liabilities: | |||||||
Purchases of trading securities by Affiliate sponsored consolidated products | (62.5 | ) | (24.1 | ) | |||
Sales of trading securities by Affiliate sponsored consolidated products | 59.1 | 23.2 | |||||
(Increase) decrease in receivables | 37.7 | (131.7 | ) | ||||
Increase in other assets | (3.9 | ) | (3.6 | ) | |||
Decrease in payables, accrued liabilities and other liabilities | (187.1 | ) | (16.1 | ) | |||
Cash flow from operating activities | 684.5 | 800.5 | |||||
Cash flow from (used in) investing activities: | |||||||
Investments in Affiliates | (884.9 | ) | (30.3 | ) | |||
Purchase of fixed assets | (15.1 | ) | (13.9 | ) | |||
Purchase of investment securities | (10.2 | ) | (22.2 | ) | |||
Sale of investment securities | 41.5 | 71.3 | |||||
Cash flow from (used in) investing activities | (868.7 | ) | 4.9 | ||||
Cash flow from (used in) financing activities: | |||||||
Borrowings of senior debt | 900.0 | 445.0 | |||||
Repayments of senior debt | (670.0 | ) | (645.0 | ) | |||
Issuance of common stock | 163.2 | 33.7 | |||||
Dividends paid on common stock | — | (33.8 | ) | ||||
Repurchase of common stock | (33.4 | ) | (276.4 | ) | |||
Distributions to non-controlling interests | (270.1 | ) | (266.8 | ) | |||
Affiliate equity issuances and repurchases | (70.3 | ) | (112.5 | ) | |||
Settlement of forward equity sale agreement | — | 5.2 | |||||
Other financing items | 17.2 | (20.9 | ) | ||||
Cash flow from (used in) financing activities | 36.6 | (871.5 | ) | ||||
Effect of foreign exchange rate changes on cash and cash equivalents | (19.7 | ) | 10.0 | ||||
Net decrease in cash and cash equivalents | (167.3 | ) | (56.1 | ) | |||
Cash and cash equivalents at beginning of period | 563.8 | 430.8 | |||||
Net cash inflows upon the consolidation and deconsolidation of Affiliate sponsored products | 25.5 | — | |||||
Cash and cash equivalents at end of period | $ | 422.0 | $ | 374.7 |
For the Three Months Ended March 31, | |||
2023 | 2024 | ||
Cash flow from (used in) operating activities: | |||
Net income | $188.5 | $198.7 | |
Adjustments to reconcile Net income to cash flow from (used in) operating activities: | |||
Intangible amortization and impairments | 12.5 | 7.3 | |
Depreciation and other amortization | 3.7 | 3.0 | |
Deferred income tax expense | 11.3 | 23.5 | |
Equity method income (net) | (58.6) | (117.5) | |
Distributions received from equity method investments | 305.5 | 211.5 | |
Share-based compensation and Affiliate equity compensation expense | 25.3 | 38.8 | |
Net realized and unrealized gains on investment securities | (32.9) | (9.1) | |
Other non-cash items | 8.0 | (3.3) | |
Changes in assets and liabilities: | |||
Purchases of securities by consolidated Affiliate sponsored investment products | (9.8) | (12.7) | |
Sales of securities by consolidated Affiliate sponsored investment products | 12.4 | 21.5 | |
Increase in receivables | (92.2) | (159.5) | |
Decrease in other assets | 2.9 | 6.1 | |
(Decrease) increase in payables, accrued liabilities, and other liabilities | (141.8) | 0.9 | |
Cash flow from operating activities | 234.8 | 209.2 | |
Cash flow from (used in) investing activities: | |||
Purchase of fixed assets | (1.9) | (1.0) | |
Purchase of investment securities | (109.8) | (359.1) | |
Maturities and sales of investment securities | 399.7 | 434.6 | |
Cash flow from investing activities | 288.0 | 74.5 | |
Cash flow from (used in) financing activities: | |||
Borrowings of senior bank debt and junior subordinated notes | 25.0 | 450.0 | |
Repayments of senior bank debt and senior notes | (25.0) | (450.0) | |
Repurchases of common stock (net) | — | (152.5) | |
Dividends paid on common stock | (0.4) | (0.3) | |
Distributions to non-controlling interests | (79.5) | (81.8) | |
Affiliate equity issuances (purchases) (net) | 7.3 | (33.0) | |
Redemptions of consolidated Affiliate sponsored investment products (net) | (2.7) | (8.6) | |
Other financing items | (41.6) | (26.1) | |
Cash flow used in financing activities | (116.9) | (302.3) | |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 2.6 | (1.6) | |
Net increase (decrease) in cash and cash equivalents | 408.5 | (20.2) | |
Cash and cash equivalents at beginning of period | 429.2 | 813.6 | |
Effect of deconsolidation of Affiliates | (4.9) | — | |
Cash and cash equivalents at end of period | $832.8 | $793.4 |
December 31, 2023 | March 31, 2024 | |||
Cost | $35.3 | $30.6 | ||
Unrealized gains | 2.6 | 3.6 | ||
Unrealized losses | (0.0) | (0.1) | ||
Fair value | $37.9 | $34.1 |
Available-for-Sale | Trading | ||||||||||||||
December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | ||||||||||||
Cost | $ | 66.1 | $ | 30.5 | $ | 34.4 | $ | 44.2 | |||||||
Unrealized gains | 17.6 | 10.8 | 6.6 | 8.5 | |||||||||||
Unrealized losses | (1.8 | ) | — | (0.5 | ) | (1.6 | ) | ||||||||
Fair Value | $ | 81.9 | $ | 41.3 | $ | 40.5 | $ | 51.1 |
Available-for-sale | Trading | |||||||
December 31, 2023 | March 31, 2024 | December 31, 2023 | March 31, 2024 | |||||
Cost | $405.4 | $296.5 | $17.9 | $18.5 | ||||
Unrealized gains | 0.0 | 0.0 | — | — | ||||
Unrealized losses | (0.1) | — | (0.1) | (0.2) | ||||
Fair value | $405.3 | $296.5 | $17.8 | $18.3 |
December 31, 2023 | March 31, 2024 | |||||||
Fair Value | Unfunded Commitments | Fair Value | Unfunded Commitments | |||||
Private equity funds(1) | $424.4 | $187.2 | $465.7 | $195.3 | ||||
Investments in other strategies(2) | 6.1 | — | 6.8 | — | ||||
Total(3) | $430.5 | $187.2 | $472.5 | $195.3 |
December 31, 2023 | March 31, 2024 | |||
Cost | $8.5 | $8.5 | ||
Cumulative unrealized gains | 41.9 | 41.9 | ||
Carrying amount | $50.4 | $50.4 |
For the Three Months Ended March 31, | ||||||||||||
2023 | 2024 | |||||||||||
Measured at NAV as a Practical Expedient | Without Readily Determinable Fair Values | Total | Measured at NAV as a Practical Expedient | Without Readily Determinable Fair Values | Total | |||||||
Balance, beginning of period | $371.2 | $50.4 | $421.6 | $430.5 | $50.4 | $480.9 | ||||||
Purchases and commitments | 9.8 | — | 9.8 | 46.8 | — | 46.8 | ||||||
Sales and distributions | (11.5) | — | (11.5) | (9.0) | — | (9.0) | ||||||
Net realized and unrealized gains | 6.1 | — | 6.1 | 4.2 | — | 4.2 | ||||||
Balance, end of period | $375.6 | $50.4 | $426.0 | $472.5 | $50.4 | $522.9 |
Fair Value Measurements | ||||||||
December 31, 2023 | ||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||
Financial Assets | ||||||||
Investments in equity securities(1) | $37.9 | $37.9 | $— | $— | ||||
Investments in debt securities(1) | 423.1 | — | 423.1 | — | ||||
Financial Liabilities(2) | ||||||||
Contingent payment obligations | $14.7 | $— | $— | $14.7 | ||||
Affiliate equity purchase obligations | 53.9 | — | — | 53.9 |
Fair Value Measurements | ||||||||
March 31, 2024 | ||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||
Financial Assets | ||||||||
Investments in equity securities(1) | $34.1 | $34.1 | $— | $— | ||||
Investments in debt securities(1) | 314.8 | — | 314.8 | — | ||||
Financial Liabilities(2) | ||||||||
Contingent payment obligations | $9.6 | $— | $— | $9.6 | ||||
Affiliate equity purchase obligations | 37.7 | — | — | 37.7 |
For the Three Months Ended March 31, | ||||||||
2023 | 2024 | |||||||
Contingent Payment Obligations | Affiliate Equity Purchase Obligations | Contingent Payment Obligations | Affiliate Equity Purchase Obligations | |||||
Balance, beginning of period | $21.0 | $24.5 | $14.7 | $53.9 | ||||
Purchases and issuances(1) | — | 44.2 | — | 24.9 | ||||
Settlements and reductions | — | (7.5) | — | (40.5) | ||||
Net realized and unrealized (gains) losses(2) | 1.9 | (0.3) | (5.1) | (0.6) | ||||
Balance, end of period | $22.9 | $60.9 | $9.6 | $37.7 | ||||
Net change in unrealized (gains) losses relating to instruments still held at the reporting date(1) | $1.9 | $(0.3) | $(5.1) | $(0.6) |
Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||||||
December 31, 2023 | March 31, 2024 | |||||||||||||||
Valuation Techniques | Unobservable Input | Fair Value | Range | Weighted Average(1) | Fair Value | Range | Weighted Average(1) | |||||||||
Contingent payment obligations | Monte Carlo simulation | Volatility | $14.7 | 19% - 25% | 21% | $9.6 | 10% - 19% | 13% | ||||||||
Discount rates | 6% | 6% | 6% | 6% | ||||||||||||
Affiliate equity purchase obligations | Discounted cash flow | Growth rates(2) | $53.9 | (6)% - 7% | 1% | $37.7 | (5)% - 8% | 1% | ||||||||
Discount rates | 14% - 17% | 14% | 14% - 18% | 15% |
December 31, 2023 | March 31, 2024 | |||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | Fair Value Hierarchy | ||||||
Senior notes | $1,099.4 | $1,049.8 | $699.5 | $652.0 | Level 2 | |||||
Junior subordinated notes | 765.9 | 612.0 | 1,216.0 | 1,092.2 | Level 2 | |||||
Junior convertible securities | 341.7 | 340.9 | 341.7 | 350.1 | Level 2 |
December 31, 2016 | September 30, 2017 | ||||||||||||||
Unconsolidated VIE Net Assets | Carrying Value and Maximum Exposure to Loss | Unconsolidated VIE Net Assets | Carrying Value and Maximum Exposure to Loss | ||||||||||||
Affiliates accounted for under the equity method | $ | 1,047.6 | $ | 2,846.8 | $ | 1,019.4 | $ | 2,749.7 |
December 31, 2023 | March 31, 2024 | |||||||
Unconsolidated VIE Net Assets | Carrying Value and Maximum Exposure to Loss | Unconsolidated VIE Net Assets | Carrying Value and Maximum Exposure to Loss | |||||
Affiliates accounted for under the equity method | $1,492.4 | $2,198.2 | $1,436.4 | $2,120.5 |
December 31, 2016 | September 30, 2017 | ||||||||||||||
Unconsolidated VIE Net Assets | Carrying Value and Maximum Exposure to Loss | Unconsolidated VIE Net Assets | Carrying Value and Maximum Exposure to Loss | ||||||||||||
Affiliate sponsored investment products | $ | 1,756.6 | $ | 9.4 | $ | 1,961.5 | $ | 9.9 |
December 31, 2023 | March 31, 2024 | |||||||
Unconsolidated VIE Net Assets | Carrying Value and Maximum Exposure to Loss | Unconsolidated VIE Net Assets | Carrying Value and Maximum Exposure to Loss | |||||
Affiliate sponsored investment products | $5,788.3 | $29.8 | $5,016.5 | $21.7 |
December 31, 2023 | March 31, 2024 | |||
Senior bank debt | $349.9 | $299.9 | ||
Senior notes | 1,096.9 | 697.2 | ||
Junior subordinated notes | 751.8 | 1,188.9 | ||
Junior convertible securities | 338.9 | 338.9 | ||
Debt | $2,537.5 | $2,524.9 |
2025 Senior Notes | 2030 Senior Notes | |||
Issue date | February 2015 | June 2020 | ||
Maturity date | August 2025 | June 2030 | ||
Par value (in millions) | $350.0 | $350.0 | ||
Stated coupon | 3.50% | 3.30% | ||
Coupon frequency | Semi-annually | Semi-annually | ||
Call price | As defined | As defined |
2059 Junior Subordinated Notes | 2060 Junior Subordinated Notes | 2061 Junior Subordinated Notes | 2064 Junior Subordinated Notes | |||||
Issue date | March 2019 | September 2020 | July 2021 | March 2024 | ||||
Maturity date | March 2059 | September 2060 | September 2061 | March 2064 | ||||
Par value (in millions) | $300.0 | $275.0 | $200.0 | $450.0 | ||||
Stated coupon | 5.875% | 4.75% | 4.20% | 6.75% | ||||
Coupon frequency | Quarterly | Quarterly | Quarterly | Quarterly | ||||
Call price | As defined | As defined | As defined | As defined | ||||
NYSE Symbol | MGR | MGRB | MGRD | MGRE |
For the Three Months Ended March 31, | ||||
2023 | 2024 | |||
Contractual interest expense | $4.4 | $4.4 | ||
Amortization of debt issuance costs | 0.1 | 0.1 | ||
Total | $4.5 | $4.5 | ||
Effective interest rate | 5.21% | 5.21% |
Earliest Payable | ||||||||||
Controlling Interest | Co-Investor | Total | 2024 | 2025 | ||||||
Deferred payment obligations | $43.3 | $— | $43.3 | $21.7 | $21.6 | |||||
Contingent payment obligations(1) | 8.8 | 0.8 | 9.6 | 3.1 | 6.5 |
Fair Value Measurements | |||||||||||||||
December 31, 2016 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||
Financial Assets | |||||||||||||||
Cash equivalents | $ | 64.1 | $ | 64.1 | $ | — | $ | — | |||||||
Investments in marketable securities(1) | |||||||||||||||
Trading securities | 40.5 | 40.5 | — | — | |||||||||||
Available-for-sale securities | 81.9 | 81.9 | — | — | |||||||||||
Other investments | 3.4 | 3.4 | — | — | |||||||||||
Foreign currency forward contracts(2) | 0.6 | — | 0.6 | — | |||||||||||
Financial Liabilities(2) | |||||||||||||||
Contingent payment arrangements | $ | 8.6 | $ | — | $ | — | $ | 8.6 | |||||||
Affiliate equity obligations | 12.1 | — | — | 12.1 | |||||||||||
Foreign currency forward contracts | 0.5 | — | 0.5 | — |
Fair Value Measurements | |||||||||||||||
September 30, 2017 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||
Financial Assets | |||||||||||||||
Cash equivalents | $ | 35.1 | $ | 35.1 | $ | — | $ | — | |||||||
Investments in marketable securities(1) | |||||||||||||||
Trading securities | 51.1 | 51.1 | — | — | |||||||||||
Available-for-sale securities | 41.3 | 41.3 | — | — | |||||||||||
Foreign currency forward contracts(2) | 0.7 | — | 0.7 | — | |||||||||||
Financial Liabilities(2) | |||||||||||||||
Contingent payment arrangements | $ | 8.1 | $ | — | $ | — | $ | 8.1 | |||||||
Affiliate equity obligations | 45.7 | — | — | 45.7 | |||||||||||
Foreign currency forward contracts | 1.0 | — | 1.0 | — |
For the Three Months Ended September 30, | ||||||||||||||||
2016 | 2017 | |||||||||||||||
Contingent Payment Arrangements | Affiliate Equity Obligations | Contingent Payment Arrangements | Affiliate Equity Obligations | |||||||||||||
Balance, beginning of period | $ | 8.0 | $ | 27.0 | $ | 7.8 | $ | 70.7 | ||||||||
Net realized and unrealized (gains) losses | 0.2 | (1) | 0.1 | 0.3 | (1) | (0.2 | ) | |||||||||
Purchases and issuances | — | 8.4 | — | 11.1 | ||||||||||||
Settlements and reductions | — | (8.8 | ) | — | (35.9 | ) | ||||||||||
Balance, end of period | $ | 8.2 | $ | 26.7 | $ | 8.1 | $ | 45.7 | ||||||||
Net change in unrealized (gains) losses relating to instruments still held at the reporting date | $ | 0.2 | (1) | $ | — | $ | 0.3 | (1) | $ | — |
For the Nine Months Ended September 30, | ||||||||||||||||
2016 | 2017 | |||||||||||||||
Contingent Payment Arrangements | Affiliate Equity Obligations | Contingent Payment Arrangements | Affiliate Equity Obligations | |||||||||||||
Balance, beginning of period | $ | 10.2 | $ | 62.3 | $ | 8.6 | $ | 12.1 | ||||||||
Net realized and unrealized (gains) losses | (2.0 | ) | (1) | 0.1 | 2.3 | (1) | (0.2 | ) | ||||||||
Purchases and issuances | — | 48.2 | — | 161.5 | ||||||||||||
Settlements and reductions | — | (83.9 | ) | (2.8 | ) | (127.7 | ) | |||||||||
Balance, end of period | $ | 8.2 | $ | 26.7 | $ | 8.1 | $ | 45.7 | ||||||||
Net change in unrealized (gains) losses relating to instruments still held at the reporting date | $ | (2.0 | ) | (1) | $ | — | 2.3 | (1) | $ | — |
Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||
Valuation Techniques | Unobservable Input | Fair Value at December 31, 2016 | Range at December 31, 2016 | Fair Value at September 30, 2017 | Range at September 30, 2017 | ||||||||||
Contingent payment arrangements | Discounted cash flow | Growth rates | $ | 8.6 | 3% - 8% | $ | 8.1 | 8% - 9% | |||||||
Discount rates | 14% - 15% | 14% - 15% | |||||||||||||
Affiliate equity obligations | Discounted cash flow | Growth rates | 12.1 | 4% - 10% | 45.7 | 5% - 9% | |||||||||
Discount rates | 15% - 16% | 12% - 16% |
December 31, 2016 | September 30, 2017 | ||||||||||||||
Category of Investment | Fair Value | Unfunded Commitments | Fair Value | Unfunded Commitments | |||||||||||
Private equity funds(1) | $ | 137.8 | $ | 92.2 | $ | 151.9 | $ | 94.9 | |||||||
Other funds(2) | 9.7 | — | 8.6 | — | |||||||||||
Other investments(3) | $ | 147.5 | $ | 92.2 | $ | 160.5 | $ | 94.9 |
December 31, 2016 | September 30, 2017 | ||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | Fair Value Hierarchy | |||||||||||||
Senior notes | $ | 945.1 | $ | 936.0 | $ | 745.5 | $ | 779.6 | Level 2 | ||||||||
Convertible securities | 307.5 | 466.9 | 309.3 | 527.8 | Level 2 |
Goodwill | ||||
Total | ||||
Balance, as of December 31, 2016 | $ | 2,628.1 | ||
Foreign currency translation | 33.7 | |||
Balance, as of September 30, 2017 | $ | 2,661.8 |
Acquired Client Relationships | |||||||||||||||||||
Definite-lived | Indefinite-lived | Total | |||||||||||||||||
Gross Book Value | Accumulated Amortization | Net Book Value | Net Book Value | Net Book Value | |||||||||||||||
Balance, as of December 31, 2016 | $ | 1,290.0 | $ | (788.1 | ) | $ | 501.9 | $ | 995.5 | $ | 1,497.4 | ||||||||
Intangible amortization and impairments | — | (65.1 | ) | (65.1 | ) | — | (65.1 | ) | |||||||||||
Foreign currency translation | 5.0 | — | 5.0 | 29.9 | 34.9 | ||||||||||||||
Balance, as of September 30, 2017 | $ | 1,295.0 | $ | (853.2 | ) | $ | 441.8 | $ | 1,025.4 | $ | 1,467.2 |
Goodwill | ||
Balance, as of December 31, 2023 | $2,523.6 | |
Foreign currency translation | (6.1) | |
Balance, as of March 31, 2024 | $2,517.5 |
Acquired Client Relationships (Net) | ||||||||||
Definite-lived | Indefinite-lived | Total | ||||||||
Gross Book Value | Accumulated Amortization | Net Book Value | Net Book Value | Net Book Value | ||||||
Balance, as of December 31, 2023 | $1,260.5 | $(1,051.2) | $209.3 | $1,603.1 | $1,812.4 | |||||
Intangible amortization and impairments | — | (7.3) | (7.3) | — | (7.3) | |||||
Foreign currency translation | (1.5) | 1.4 | (0.1) | (2.7) | (2.8) | |||||
Balance, as of March 31, 2024 | $1,259.0 | $(1,057.1) | $201.9 | $1,600.4 | $1,802.3 |
Total | |||
Consideration paid | $ | 1,362.3 | |
Definite-lived acquired client relationships | $ | 560.8 | |
Indefinite-lived acquired client relationships | 36.9 | ||
Tangible assets | 2.0 | ||
Deferred tax liability | (91.8 | ) | |
Goodwill | 854.4 | ||
$ | 1,362.3 |
December 31, 2023 | March 31, 2024 | |||
Goodwill | $1,323.3 | $1,369.3 | ||
Definite-lived acquired client relationships (net) | 652.5 | 617.7 | ||
Indefinite-lived acquired client relationships (net) | 122.6 | 122.6 | ||
Undistributed earnings and tangible capital | 190.1 | 104.5 | ||
Equity method investments in Affiliates (net) | $2,288.5 | $2,214.1 |
Total | |||
Balance, as of December 31, 2016 | $ | 3,368.3 | |
Equity method earnings | 303.3 | ||
Equity method intangible amortization | (71.7 | ) | |
Distributions of earnings from equity method investments | (368.0 | ) | |
Investments | 29.8 | ||
Foreign currency translation | 32.1 | ||
Other | (3.0 | ) | |
Balance, as of September 30, 2017 | $ | 3,290.8 |
Equity Method Investments in Affiliates | ||
Balance, as of December 31, 2023 | $2,288.5 | |
Earnings | 138.3 | |
Intangible amortization and impairments | (20.8) | |
Distributions of earnings | (211.5) | |
Foreign currency translation | 19.6 | |
Balance, as of March 31, 2024 | $2,214.1 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||||
Share-based compensation | $ | 10.7 | $ | 10.3 | $ | 30.7 | $ | 30.0 | |||||||
Tax benefit | 4.1 | 4.0 | 11.8 | 11.5 |
For the Three Months Ended March 31, | ||||
2023 | 2024 | |||
Share-based compensation expense | $14.7 | $21.1 | ||
Tax benefit | 1.7 | 2.3 |
Restricted Stock Units | Weighted Average Grant Date Value | |||
Unvested units—December 31, 2023 | 0.9 | $138.51 | ||
Units granted | 0.2 | 158.51 | ||
Units vested | (0.3) | 129.42 | ||
Units forfeited | (0.0) | 147.04 | ||
Performance condition changes | 0.0 | 157.42 | ||
Unvested units—March 31, 2024 | 0.8 | 147.14 |
Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (years) | ||||||||||||
Unexercised options outstanding - December 31, 2016 | 1.4 | $ | 108.53 | |||||||||||
Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | ||||||||||||
Unexercised options outstanding—December 31, 2023 | 3.2 | $76.74 | ||||||||||||
Options granted | 0.0 | 168.60 | ||||||||||||
Options exercised | (0.6 | ) | 96.86 | |||||||||||
Options forfeited | (0.1 | ) | 140.26 | — | — | |||||||||
Unexercised options outstanding - September 30, 2017 | 0.7 | 118.35 | 3.5 | |||||||||||
Exercisable at September 30, 2017 | 0.3 | 108.55 | 1.5 | |||||||||||
Options expired | ||||||||||||||
Performance condition changes | ||||||||||||||
Unexercised options outstanding—March 31, 2024 | 3.2 | 76.77 | 2.5 | |||||||||||
Exercisable at March 31, 2024 | 0.0 | 123.38 | 2.7 |
For the Nine Months Ended September 30, | ||||||
2016 | 2017 | |||||
Dividend yield | — | 0.5 | % | |||
Expected volatility | 30.7 | % | 28.0 | % | ||
Risk-free interest rate | 1.6 | % | 2.1 | % | ||
Expected life of options (in years) | 5.7 | 5.7 | ||||
Forfeiture rate | — | — |
Restricted Stock Units | Weighted Average Grant Date Value | |||||
Unvested units - December 31, 2016 | 0.6 | $ | 168.84 | |||
Units granted | 0.2 | 153.09 | ||||
Units vested | (0.2 | ) | 167.72 | |||
Units forfeited | (0.0 | ) | 170.52 | |||
Unvested units - September 30, 2017 | 0.6 | 162.97 |
Redeemable Non-controlling interests | ||||
Balance, as of December 31, 2016 | $ | 673.5 | ||
Changes attributable to consolidated products | 9.5 | |||
Repurchases of redeemable Affiliate equity | (151.6 | ) | ||
Transfers from non-controlling interests | 56.8 | |||
Changes in redemption value | 216.4 | |||
Balance, as of September 30, 2017 | $ | 804.6 |
Redeemable Non-controlling Interests | ||
Balance, as of December 31, 2023(1) | $393.4 | |
Decrease attributable to consolidated Affiliate | (8.2) | |
Transfers to Other liabilities | (10.3) | |
Changes in redemption value | 18.1 | |
Balance, as of March 31, 2024(1) | $393.0 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||||||||
For the Three Months Ended March 31, | For the Three Months Ended March 31, | ||||||||||||||||||
2023 | 2024 | ||||||||||||||||||
Controlling interest | $ | 3.2 | $ | 2.3 | $ | 7.7 | $ | 9.4 | $(0.7) | $6.3 | |||||||||
Non-controlling interests | 18.5 | 7.7 | 27.2 | 29.2 | 11.3 | 11.4 | |||||||||||||
Total | $ | 21.7 | $ | 10.0 | $ | 34.9 | $ | 38.6 | $10.6 | $17.7 |
Controlling Interest | Remaining Life | Non-controlling Interests | Remaining Life | ||||||||
December 31, 2016 | $ | 31.3 | 4 years | $ | 70.7 | 5 years | |||||
September 30, 2017 | 33.0 | 4 years | 82.5 | 5 years |
Controlling Interest | Remaining Life | Non-controlling Interests | Remaining Life | |||||
December 31, 2023 | $30.6 | 5 years | $235.7 | 6 years | ||||
March 31, 2024 | 33.6 | 5 years | 237.6 | 6 years |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||||
Net income (controlling interest) | $ | 110.2 | $ | 125.4 | $ | 322.5 | $ | 374.2 | |||||||
Increase / (decrease) in controlling interest paid-in capital from purchases and sales of Affiliate equity issuances | 5.3 | (0.3 | ) | 1.9 | (0.6 | ) | |||||||||
Decrease in controlling interest paid-in capital related to Affiliate equity repurchases | (2.1 | ) | (12.7 | ) | (23.4 | ) | (81.8 | ) | |||||||
Net income attributable to controlling interest and transfers from Non-controlling interests | $ | 113.4 | $ | 112.4 | $ | 301.0 | $ | 291.8 |
For the Three Months Ended March 31, | ||||
2023 | 2024 | |||
Net income (controlling interest) | $134.5 | $149.8 | ||
Decrease in controlling interest paid-in capital from Affiliate equity issuances | (3.6) | (1.8) | ||
Decrease in controlling interest paid-in capital from Affiliate equity purchases | (27.5) | (7.2) | ||
Net income (controlling interest) including the net impact of Affiliate equity transactions | $103.4 | $140.8 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||||||
Controlling interest: | |||||||||||||||
Current tax | $ | 29.5 | $ | 39.6 | $ | 84.2 | $ | 102.0 | |||||||
Intangible-related deferred taxes | 19.5 | 22.9 | 63.0 | 61.8 | |||||||||||
Other deferred taxes | 1.1 | 1.6 | 8.4 | 18.7 | |||||||||||
Total controlling interest | 50.1 | 64.1 | 155.6 | 182.5 | |||||||||||
Non-controlling interests: | |||||||||||||||
Current tax | $ | 1.5 | $ | 2.1 | $ | 5.7 | $ | 5.9 | |||||||
Deferred taxes | (1.3 | ) | (0.1 | ) | (1.6 | ) | (0.2 | ) | |||||||
Total non-controlling interests | 0.2 | 2.0 | 4.1 | 5.7 | |||||||||||
Provision for income taxes | $ | 50.3 | $ | 66.1 | $ | 159.7 | $ | 188.2 | |||||||
Income before income taxes (controlling interest) | $ | 160.3 | $ | 189.5 | $ | 478.1 | $ | 556.7 | |||||||
Effective tax rate attributable to controlling interest(1) | 31.3 | % | 33.8 | % | 32.5 | % | 32.8 | % |
For the Three Months Ended March 31, | ||||
2023 | 2024 | |||
Controlling interest(1) | $42.5 | $53.3 | ||
Non-controlling interests | 2.5 | 2.1 | ||
Income tax expense | $45.0 | $55.4 | ||
Income before income taxes (controlling interest) | $177.0 | $203.1 | ||
Effective tax rate (controlling interest)(2) | 24.0% | 26.2% |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | For the Three Months Ended March 31, | For the Three Months Ended March 31, | ||||||||||||||||
2016 | 2017 | 2016 | 2017 | 2023 | 2024 | ||||||||||||||
Numerator | |||||||||||||||||||
Net income (controlling interest) | $ | 110.2 | $ | 125.4 | $ | 322.5 | $ | 374.2 | $134.5 | $149.8 | |||||||||
Interest expense on convertible securities, net of taxes | 3.9 | 3.9 | 11.6 | 11.6 | |||||||||||||||
Income from hypothetical settlement of Redeemable non-controlling interests, net of taxes | 0.7 | 13.0 | |||||||||||||||||
Interest expense on junior convertible securities, net of taxes | 3.4 | 3.4 | |||||||||||||||||
Net income (controlling interest), as adjusted | $ | 114.1 | $ | 129.3 | $ | 334.1 | $ | 385.8 | $138.6 | $166.2 | |||||||||
Denominator | |||||||||||||||||||
Average shares outstanding (basic) | 53.9 | 55.8 | 53.9 | 56.3 | 35.9 | 32.8 | |||||||||||||
Effect of dilutive instruments: | |||||||||||||||||||
Stock options and restricted stock units | 0.5 | 0.3 | 0.5 | 0.3 | 2.0 | 2.0 | |||||||||||||
Hypothetical issuance of shares to settle Redeemable non-controlling interests | 0.3 | 3.6 | |||||||||||||||||
Junior convertible securities | 2.2 | 2.2 | 2.2 | 2.2 | 1.7 | 1.7 | |||||||||||||
Average shares outstanding (diluted) | 56.6 | 58.3 | 56.6 | 58.8 | 39.9 | 40.1 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||
2016 | 2017 | 2016 | 2017 | ||||||||
Stock options and restricted stock units | 0.5 | 0.0 | 0.7 | 0.1 | |||||||
Shares subject to forward sale agreement | 2.0 | — | 2.0 | — |
For the Three Months Ended March 31, | ||||
2023 | 2024 | |||
Stock options and restricted stock units | 0.4 | 0.4 | ||
Shares issuable to settle Redeemable non-controlling interests | 4.2 | 0.5 |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2016 | 2017 | ||||||||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||||||
Foreign currency translation adjustment | $ | (16.8 | ) | $ | — | $ | (16.8 | ) | $ | 53.0 | $ | — | $ | 53.0 | |||||||||
Change in net realized and unrealized gain (loss) on derivative securities | 0.1 | (0.0 | ) | 0.1 | 0.2 | (0.1 | ) | 0.1 | |||||||||||||||
Change in net unrealized gain (loss) on investment securities | 5.8 | (1.8 | ) | 4.0 | (6.8 | ) | 2.5 | (4.3 | ) | ||||||||||||||
Other comprehensive income (loss) | $ | (10.9 | ) | $ | (1.8 | ) | $ | (12.7 | ) | $ | 46.4 | $ | 2.4 | $ | 48.8 |
For the Three Months Ended March 31, | ||||||||||||
2023 | 2024 | |||||||||||
Pre-Tax | Tax (Expense) Benefit | Net of Tax | Pre-Tax | Tax (Expense) Benefit | Net of Tax | |||||||
Foreign currency translation gain | $29.5 | $(2.7) | $26.8 | $9.3 | $(3.7) | $5.6 | ||||||
Change in net realized and unrealized gain (loss) on derivative financial instruments | 0.2 | 0.0 | 0.2 | 0.3 | 0.0 | 0.3 | ||||||
Change in net unrealized gain (loss) on available-for-sale debt securities | 0.5 | (0.1) | 0.4 | 0.5 | (0.1) | 0.4 | ||||||
Other comprehensive income | $30.2 | $(2.8) | $27.4 | $10.1 | $(3.8) | $6.3 |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2016 | 2017 | ||||||||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||||||
Foreign currency translation adjustment | $ | (72.7 | ) | $ | — | $ | (72.7 | ) | $ | 92.1 | $ | — | $ | 92.1 | |||||||||
Change in net realized and unrealized gain (loss) on derivative securities | (0.6 | ) | (0.1 | ) | (0.7 | ) | (0.7 | ) | (0.1 | ) | (0.8 | ) | |||||||||||
Change in net unrealized gain (loss) on investment securities | (34.6 | ) | 13.8 | (20.8 | ) | (6.6 | ) | 3.2 | (3.4 | ) | |||||||||||||
Other comprehensive income (loss) | $ | (107.9 | ) | $ | 13.7 | $ | (94.2 | ) | $ | 84.8 | $ | 3.1 | $ | 87.9 |
Foreign Currency Translation Adjustment | Realized and Unrealized Gains (Losses) on Derivative Securities | Unrealized Gains (Losses) on Investment Securities (1) | Total | ||||||||||||
Balance, as of December 31, 2016 | $ | (213.9 | ) | $ | 0.4 | $ | 9.8 | $ | (203.7 | ) | |||||
Other comprehensive gain (loss) before reclassifications | 92.1 | (0.4 | ) | 13.8 | 105.5 | ||||||||||
Amounts reclassified | — | (0.4 | ) | (17.2 | ) | (17.6 | ) | ||||||||
Net other comprehensive gain (loss) | 92.1 | (0.8 | ) | (3.4 | ) | 87.9 | |||||||||
Balance, as of September 30, 2017 | $ | (121.8 | ) | $ | (0.4 | ) | $ | 6.4 | $ | (115.8 | ) |
Foreign Currency Translation Adjustment | Realized and Unrealized Gains (Losses) on Derivative Financial Instruments | Unrealized Gains (Losses) on Investment Available- for-Sale Debt Securities | Total | |||||
Balance, as of December 31, 2023 | $(255.3) | $(0.1) | $(0.5) | $(255.9) | ||||
Other comprehensive income before reclassifications | 5.6 | 0.2 | 0.4 | 6.2 | ||||
Amounts reclassified | — | 0.1 | — | 0.1 | ||||
Net other comprehensive income | 5.6 | 0.3 | 0.4 | 6.3 | ||||
Balance, as of March 31, 2024 | $(249.7) | $0.2 | $(0.1) | $(249.6) |
As of and for the Three Months Ended March 31, | ||||||
(in billions, except as noted) | 2023 | 2024 | % Change | |||
Assets under management | $668.0 | $699.4 | 5% | |||
Average assets under management | 660.4 | 680.0 | 3% | |||
Aggregate fees (in millions) | 1,505.1 | 1,471.6 | (2)% |
As of and for the Three Months Ended September 30, | As of and for the Nine Months Ended September 30, | |||||||||||||||||||||
(in billions, except as noted) | 2016 | 2017 | % Change | 2016 | 2017 | % Change | ||||||||||||||||
Assets under management(1) | ||||||||||||||||||||||
Consolidated Affiliate assets under management | $ | 378.8 | $ | 416.3 | 10 | % | $ | 378.8 | $ | 416.3 | 10 | % | ||||||||||
Equity method Affiliate assets under management | 293.6 | 387.4 | 32 | % | 293.6 | 387.4 | 32 | % | ||||||||||||||
Total | $ | 672.4 | $ | 803.7 | 20 | % | $ | 672.4 | $ | 803.7 | 20 | % | ||||||||||
Average assets under management(1) | ||||||||||||||||||||||
Consolidated Affiliate average assets under management | $ | 378.0 | $ | 414.5 | 10 | % | $ | 371.9 | $ | 400.9 | 8 | % | ||||||||||
Equity method Affiliate average assets under management | 285.5 | 376.1 | 32 | % | 273.6 | 365.6 | 34 | % | ||||||||||||||
Total | $ | 663.5 | $ | 790.6 | 19 | % | $ | 645.5 | $ | 766.5 | 19 | % | ||||||||||
Revenue (in millions) | $ | 544.7 | $ | 585.7 | 8 | % | $ | 1,644.2 | $ | 1,700.9 | 3 | % | ||||||||||
Equity method revenue (in millions)(2) | 456.4 | 686.6 | 50 | % | 1,350.5 | 2,159.8 | 60 | % |
consolidated and equity method Affiliates. Assets under management is presented |
(in billions) | Alternatives | Global Equities | U.S. Equities | Multi-asset & Other | Total | ||||||||||||||
June 30, 2017 | $ | 296.3 | $ | 267.9 | $ | 110.7 | $ | 97.2 | $ | 772.1 | |||||||||
Client cash inflows and commitments | 20.7 | 7.3 | 3.8 | 3.9 | 35.7 | ||||||||||||||
Client cash outflows and realizations | (10.4 | ) | (11.9 | ) | (7.0 | ) | (3.3 | ) | (32.6 | ) | |||||||||
Net client cash flows | 10.3 | (4.6 | ) | (3.2 | ) | 0.6 | 3.1 | ||||||||||||
Market changes | 5.6 | 13.6 | 4.1 | 0.9 | 24.2 | ||||||||||||||
Foreign exchange(1) | 1.4 | 2.4 | 0.2 | 0.5 | 4.5 | ||||||||||||||
Other | (0.2 | ) | — | — | — | (0.2 | ) | ||||||||||||
September 30, 2017 | $ | 313.4 | $ | 279.3 | $ | 111.8 | $ | 99.2 | $ | 803.7 |
(in billions) | Institutional | Retail | High Net Worth | Total | |||||||||||
June 30, 2017 | $ | 457.4 | $ | 207.1 | $ | 107.6 | $ | 772.1 | |||||||
Client cash inflows and commitments | 16.3 | 15.5 | 3.9 | 35.7 | |||||||||||
Client cash outflows and realizations | (20.1 | ) | (9.3 | ) | (3.2 | ) | (32.6 | ) | |||||||
Net client cash flows | (3.8 | ) | 6.2 | 0.7 | 3.1 | ||||||||||
Market changes | 14.8 | 7.0 | 2.4 | 24.2 | |||||||||||
Foreign exchange(1) | 2.7 | 1.4 | 0.4 | 4.5 | |||||||||||
Other | (0.2 | ) | — | — | (0.2 | ) | |||||||||
September 30, 2017 | $ | 470.9 | $ | 221.7 | $ | 111.1 | $ | 803.7 |
(in billions) | Alternatives | Global Equities | U.S. Equities | Multi-asset & Other | Total | ||||||||||||||
December 31, 2016 | $ | 252.4 | $ | 233.9 | $ | 110.1 | $ | 92.3 | $ | 688.7 | |||||||||
Client cash inflows and commitments | 47.3 | 25.1 | 10.6 | 12.8 | 95.8 | ||||||||||||||
Client cash outflows and realizations | (27.9 | ) | (30.6 | ) | (21.6 | ) | (12.0 | ) | (92.1 | ) | |||||||||
Net client cash flows | 19.4 | (5.5 | ) | (11.0 | ) | 0.8 | 3.7 | ||||||||||||
New investments | 30.6 | 1.5 | — | 3.3 | 35.4 | ||||||||||||||
Market changes | 8.3 | 43.8 | 12.5 | 5.0 | 69.6 | ||||||||||||||
Foreign exchange(1) | 4.0 | 6.0 | 0.3 | 1.4 | 11.7 | ||||||||||||||
Other | (1.3 | ) | (0.4 | ) | (0.1 | ) | (3.6 | ) | (5.4 | ) | |||||||||
September 30, 2017 | $ | 313.4 | $ | 279.3 | $ | 111.8 | $ | 99.2 | $ | 803.7 |
(in billions) | Institutional | Retail | High Net Worth | Total | |||||||||||
December 31, 2016 | $ | 401.2 | $ | 188.3 | $ | 99.2 | $ | 688.7 | |||||||
Client cash inflows and commitments | 44.2 | 39.3 | 12.3 | 95.8 | |||||||||||
Client cash outflows and realizations | (50.5 | ) | (31.4 | ) | (10.2 | ) | (92.1 | ) | |||||||
Net client cash flows | (6.3 | ) | 7.9 | 2.1 | 3.7 | ||||||||||
New Investments | 31.0 | 1.2 | 3.2 | 35.4 | |||||||||||
Market changes | 39.6 | 20.5 | 9.5 | 69.6 | |||||||||||
Foreign exchange(1) | 7.0 | 4.0 | 0.7 | 11.7 | |||||||||||
Other | (1.6 | ) | (0.2 | ) | (3.6 | ) | (5.4 | ) | |||||||
September 30, 2017 | $ | 470.9 | $ | 221.7 | $ | 111.1 | $ | 803.7 |
Assets Under Management |
(in billions) | Alternatives | Global Equities | U.S. Equities | Multi-Asset & Fixed Income | Total | |||||
December 31, 2023 | $238.8 | $186.6 | $142.8 | $104.5 | $672.7 | |||||
Client cash inflows and commitments | 9.3 | 4.7 | 4.8 | 6.5 | 25.3 | |||||
Client cash outflows | (4.6) | (9.4) | (10.3) | (4.7) | (29.0) | |||||
Net client cash flows | 4.7 | (4.7) | (5.5) | 1.8 | (3.7) | |||||
Market changes | 7.4 | 11.1 | 13.0 | 3.0 | 34.5 | |||||
Foreign exchange(1) | (0.5) | (1.1) | (0.3) | (0.3) | (2.2) | |||||
Realizations and distributions (net) | (1.9) | (0.0) | (0.0) | (0.1) | (2.0) | |||||
Other(2) | 0.2 | 0.1 | (0.2) | (0.0) | 0.1 | |||||
March 31, 2024 | $248.7 | $192.0 | $149.8 | $108.9 | $699.4 |
(in billions) | Institutional | Retail | High Net Worth | Total | ||||
December 31, 2023 | $354.9 | $196.0 | $121.8 | $672.7 | ||||
Client cash inflows and commitments | 10.3 | 8.5 | 6.5 | 25.3 | ||||
Client cash outflows | (9.3) | (14.6) | (5.1) | (29.0) | ||||
Net client cash flows | 1.0 | (6.1) | 1.4 | (3.7) | ||||
Market changes | 16.9 | 13.5 | 4.1 | 34.5 | ||||
Foreign exchange(1) | (1.3) | (0.6) | (0.3) | (2.2) | ||||
Realizations and distributions (net) | (1.9) | (0.1) | (0.0) | (2.0) | ||||
Other(2) | 0.0 | 0.1 | 0.0 | 0.1 | ||||
March 31, 2024 | $369.6 | $202.8 | $127.0 | $699.4 |
AUM Weight | % of AUM Ahead of Benchmark(1) | |||||||
3-year | 5-year | 10-year | ||||||
Liquid alternatives(2) | 19% | 83% | 96% | 85% | ||||
Global equity(2) | 27% | 46% | 48% | 63% | ||||
U.S. equity(2) | 21% | 47% | 81% | 79% | ||||
Multi-asset and fixed income(3) | 16% | N/A | N/A | N/A |
AUM Weight | % of AUM Ahead of Benchmark(1) | |||||
IRR Latest Vintage | IRR Last Three Vintages | |||||
Private markets(4) | 17% | 86% | 86% |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
(in millions) | 2016 | 2017 | % Change | 2016 | 2017 | % Change | ||||||||||||||||
Revenue | $ | 544.7 | $ | 585.7 | 8 | % | $ | 1,644.2 | $ | 1,700.9 | 3 | % | ||||||||||
Equity method revenue | 456.4 | 686.6 | 50 | % | 1,350.5 | 2,159.8 | 60 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
(in millions) | 2016 | 2017 | % Change | 2016 | 2017 | % Change | ||||||||||||||||
Net income (controlling interest) | $ | 110.2 | $ | 125.4 | 14 | % | $ | 322.5 | $ | 374.2 | 16 | % | ||||||||||
Adjusted EBITDA (controlling interest)(1) | 219.8 | 256.3 | 17 | % | 655.8 | 754.8 | 15 | % | ||||||||||||||
Economic net income (controlling interest)(1) | 165.5 | 191.3 | 16 | % | 492.3 | 563.2 | 14 | % |
For the Three Months Ended March 31, | ||||||
(in millions) | 2023 | 2024 | % Change | |||
Net income (controlling interest) | $134.5 | $149.8 | 11% | |||
Adjusted EBITDA (controlling interest)(1) | 216.8 | 259.8 | 20% | |||
Economic net income (controlling interest)(1) | 158.1 | 186.7 | 18% |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
(in millions, except as noted) | 2016 | 2017 | % Change | 2016 | 2017 | % Change | |||||||||||||||
Consolidated Affiliates average assets under management (in billions) | $ | 378.0 | $ | 414.5 | 10 | % | $ | 371.9 | $ | 400.9 | 8 | % | |||||||||
Revenue | $ | 544.7 | $ | 585.7 | 8 | % | $ | 1,644.2 | $ | 1,700.9 | 3 | % |
For the Three Months Ended March 31, | ||||||
(in millions, expect as noted) | 2023 | 2024 | % Change | |||
Consolidated Affiliate average assets under management (in billions) | $399.0 | $393.7 | (1)% | |||
Consolidated revenue | $517.4 | $499.9 | (3)% |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||
% Change | % Change | |||||||||||||||||||
(in millions) | 2016 | 2017 | 2016 | 2017 | ||||||||||||||||
Compensation and related expenses | $ | 244.2 | $ | 238.7 | (2 | )% | $ | 702.9 | $ | 722.9 | 3% | |||||||||
Selling, general and administrative | 94.2 | 91.9 | (2 | )% | 286.7 | 269.7 | (6)% | |||||||||||||
Intangible amortization and impairments | 26.9 | 21.2 | (21 | )% | 82.2 | 65.1 | (21)% | |||||||||||||
Depreciation and other amortization | 5.0 | 4.8 | (4 | )% | 15.0 | 14.9 | (1)% | |||||||||||||
Other operating expenses (net) | 3.4 | 10.3 | N.M.(1) | 25.9 | 32.0 | 24% | ||||||||||||||
Total operating expenses | $ | 373.7 | $ | 366.9 | (2 | )% | $ | 1,112.7 | $ | 1,104.6 | (1)% |
For the Three Months Ended March 31, | ||||||
% Change | ||||||
(in millions) | 2023 | 2024 | ||||
Compensation and related expenses | $222.3 | $240.4 | 8% | |||
Selling, general and administrative | 97.1 | 91.7 | (6)% | |||
Intangible amortization and impairments | 12.5 | 7.3 | (42)% | |||
Interest expense | 30.5 | 29.9 | (2)% | |||
Depreciation and other amortization | 3.7 | 3.0 | (19)% | |||
Other expenses (net) | 14.4 | 9.0 | (38)% | |||
Total consolidated expenses | $380.5 | $381.3 | 0% |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | For the Three Months Ended March 31, | For the Three Months Ended March 31, | ||||||||||||||||||||||||
(in millions, except as noted) | 2016 | 2017 | % Change | 2016 | 2017 | % Change | 2023 | 2024 | % Change | ||||||||||||||||||
Operating Performance Measures | |||||||||||||||||||||||||||
Equity method Affiliate average assets under management (in billions) | $261.4 | $286.3 | 10% | ||||||||||||||||||||||||
Equity method revenue | $987.7 | $971.7 | (2)% | ||||||||||||||||||||||||
Financial Performance Measures | |||||||||||||||||||||||||||
Equity method earnings | $ | 81.5 | $ | 96.6 | 19 | % | $ | 243.7 | $ | 303.3 | 24 | % | $79.5 | $138.3 | 74% | ||||||||||||
Equity method intangible amortization | (14.0 | ) | (25.9 | ) | 85 | % | (43.0 | ) | (71.7 | ) | 67 | % | (20.9) | (20.8) | (0)% | ||||||||||||
Income from equity method investments | $ | 67.5 | $ | 70.7 | 5 | % | $ | 200.7 | $ | 231.6 | 15 | % | |||||||||||||||
Operating Measures | |||||||||||||||||||||||||||
Equity method Affiliates average assets under management (in billions) | $ | 285.5 | $ | 376.1 | 32 | % | $ | 273.6 | $ | 365.6 | 34 | % | |||||||||||||||
Equity method revenue | $ | 456.4 | $ | 686.6 | 50 | % | $ | 1,350.5 | $ | 2,159.8 | 60 | % | |||||||||||||||
Equity method income (net) | $58.6 | $117.5 | N.M.(1) |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
(in millions) | 2016 | 2017 | % Change | 2016 | 2017 | % Change | |||||||||||||||
Investment and other income | $ | (11.0 | ) | $ | (15.6 | ) | 42 | % | $ | (26.7 | ) | $ | (44.7 | ) | 67 | % | |||||
Interest expense | 22.4 | 21.5 | (4 | )% | 66.4 | 65.8 | (1 | )% | |||||||||||||
Imputed interest expense and contingent payment arrangements | 0.9 | 0.7 | (22 | )% | (0.2 | ) | 3.7 | N.M.(1) | |||||||||||||
Income taxes | 50.3 | 66.1 | 31 | % | 159.7 | 188.2 | 18 | % |
For the Three Months Ended March 31, | ||||||
(in millions) | 2023 | 2024 | % Change | |||
Investment and other income | $38.0 | $18.0 | (53)% |
For the Three Months Ended March 31, | ||||||
(in millions) | 2023 | 2024 | % Change | |||
Income tax expense | $45.0 | $55.4 | 23% |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | For the Three Months Ended March 31, | For the Three Months Ended March 31, | ||||||||||||||||||||||||
(in millions) | 2016 | 2017 | % Change | 2016 | 2017 | % Change | 2023 | 2024 | % Change | ||||||||||||||||||
Net income | $ | 175.9 | $ | 216.8 | 23 | % | $ | 533.0 | $ | 614.9 | 15 | % | $188.5 | $198.7 | 5% | ||||||||||||
Net income (non-controlling interests) | 65.7 | 91.4 | 39 | % | 210.5 | 240.7 | 14 | % | 54.0 | 48.9 | (9)% | ||||||||||||||||
Net income (controlling interest) | 110.2 | 125.4 | 14 | % | 322.5 | 374.2 | 16 | % | 134.5 | 149.8 | 11% |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2016 | 2017 | 2016 | 2017 | |||||||||||
Net income (controlling interest) | $ | 110.2 | $ | 125.4 | $ | 322.5 | $ | 374.2 | |||||||
Interest expense | 22.4 | 21.5 | 66.4 | 65.8 | |||||||||||
Imputed interest expense and contingent payment arrangements(1) | 0.9 | 0.7 | (0.2 | ) | 3.7 | ||||||||||
Income taxes | 50.1 | 64.1 | 155.6 | 182.5 | |||||||||||
Depreciation and other amortization | 2.0 | 2.4 | 5.9 | 7.1 | |||||||||||
Intangible amortization and impairments(2) | 34.2 | 42.2 | 105.6 | 121.5 | |||||||||||
Adjusted EBITDA (controlling interest) | $ | 219.8 | $ | 256.3 | $ | 655.8 | $ | 754.8 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
(in millions) | 2016 | 2017 | 2016 | 2017 | |||||||||||
Reported Intangible amortization and impairments | $ | 26.9 | $ | 21.2 | $ | 82.2 | $ | 65.1 | |||||||
Intangible amortization (non-controlling interests) | (6.7 | ) | (4.9 | ) | (19.6 | ) | (15.3 | ) | |||||||
Equity method intangible amortization | 14.0 | 25.9 | 43.0 | 71.7 | |||||||||||
Total | $ | 34.2 | $ | 42.2 | $ | 105.6 | $ | 121.5 |
For the Three Months Ended March 31, | ||||
(in millions) | 2023 | 2024 | ||
Net income (controlling interest) | $134.5 | $149.8 | ||
Interest expense | 30.5 | 29.9 | ||
Income taxes | 42.5 | 57.4 | ||
Intangible amortization and impairments(1) | 29.4 | 25.6 | ||
Affiliate Transactions(2) | (21.6) | — | ||
Other items(3) | 1.5 | (2.9) | ||
Adjusted EBITDA (controlling interest) | $216.8 | $259.8 |
For the Three Months Ended March 31, | ||||
(in millions) | 2023 | 2024 | ||
Consolidated intangible amortization and impairments | $12.5 | $7.3 | ||
Consolidated intangible amortization and impairments (non-controlling interests) | (4.0) | (2.5) | ||
Equity method intangible amortization and impairments | 20.9 | 20.8 | ||
Total | $29.4 | $25.6 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
(in millions, except per share data) | 2016 | 2017 | 2016 | 2017 | |||||||||||
Net income (controlling interest) | $ | 110.2 | $ | 125.4 | $ | 322.5 | $ | 374.2 | |||||||
Intangible amortization and impairments(1) | 34.2 | 42.2 | 105.6 | 121.5 | |||||||||||
Intangible-related deferred taxes | 19.5 | 22.9 | 63.0 | 61.8 | |||||||||||
Other economic items(2)(3) | 1.6 | 0.8 | 1.2 | 5.7 | |||||||||||
Economic net income (controlling interest) | $ | 165.5 | $ | 191.3 | $ | 492.3 | $ | 563.2 | |||||||
Average shares outstanding (diluted) | 56.6 | 58.3 | 56.6 | 58.8 | |||||||||||
Assumed issuance of junior convertible securities shares | (2.2 | ) | (2.2 | ) | (2.2 | ) | (2.2 | ) | |||||||
Average shares outstanding (adjusted diluted) | 54.4 | 56.1 | 54.4 | 56.6 | |||||||||||
Economic earnings per share | $ | 3.04 | $ | 3.41 | $ | 9.04 | $ | 9.95 |
For the Three Months Ended March 31, | ||||
(in millions, except per share data) | 2023 | 2024 | ||
Net income (controlling interest) | $134.5 | $149.8 | ||
Intangible amortization and impairments(1) | 29.4 | 25.6 | ||
Intangible-related deferred taxes | 14.8 | 16.3 | ||
Affiliate Transactions(2) | (16.3) | — | ||
Other economic items(3) | (4.3) | (5.0) | ||
Economic net income (controlling interest) | $158.1 | $186.7 | ||
Average shares outstanding (diluted) | 39.9 | 40.1 | ||
Hypothetical issuance of shares to settle Redeemable non-controlling interests | (0.3) | (3.6) | ||
Assumed issuance of junior convertible securities shares | (1.7) | (1.7) | ||
Average shares outstanding (adjusted diluted) | 37.9 | 34.8 | ||
Economic earnings per share | $4.18 | $5.37 |
For the Nine Months Ended September 30, | |||||||
(in millions) | 2016 | 2017 | |||||
Operating cash flow | $ | 684.5 | $ | 800.5 | |||
Investing cash flow | (868.7 | ) | 4.9 | ||||
Financing cash flow | 36.6 | (871.5 | ) |
(in millions) | December 31, 2016 | September 30, 2017 | |||||
Senior bank debt | $ | 870.0 | $ | 870.0 | |||
Senior notes | 945.1 | 745.5 | |||||
Convertible securities | 307.5 | 309.3 |
For the Three Months Ended March 31, | ||||
(in millions) | 2023 | 2024 | ||
Operating cash flow | $234.8 | $209.2 | ||
Investing cash flow | 288.0 | 74.5 | ||
Financing cash flow | (116.9) | (302.3) |
(in millions) | December 31, 2023 | March 31, 2024 | ||
Senior bank debt | $350.0 | $300.0 | ||
Senior notes | 1,099.4 | 699.5 | ||
Junior subordinated notes | 765.9 | 1,216.0 | ||
Junior convertible securities | 341.7 | 341.7 |
2025 Senior Notes | 2030 Senior Notes | |||
Issue date | February 2015 | June 2020 | ||
Maturity date | August 2025 | June 2030 | ||
Par value (in millions) | $350.0 | $350.0 | ||
Stated coupon | 3.50% | 3.30% | ||
Coupon frequency | Semi-annually | Semi-annually |
2059 Junior Subordinated Notes | 2060 Junior Subordinated Notes | 2061 Junior Subordinated Notes | 2064 Junior Subordinated Notes | |||||
Issue date | March 2019 | September 2020 | July 2021 | March 2024 | ||||
Maturity date | March 2059 | September 2060 | September 2061 | March 2064 | ||||
Par value (in millions) | $300.0 | $275.0 | $200.0 | $450.0 | ||||
Stated coupon | 5.875% | 4.75% | 4.20% | 6.75% | ||||
Coupon frequency | Quarterly | Quarterly | Quarterly | Quarterly | ||||
NYSE Symbol | MGR | MGRB | MGRD | MGRE |
Payments Due | |||||||||||||||||||
(in millions) | Total | Remainder of 2017 | 2018-2019 | 2020-2021 | Thereafter | ||||||||||||||
Contractual Obligations(1) | |||||||||||||||||||
Senior bank debt | $ | 870.0 | $ | — | $ | — | $ | 870.0 | $ | — | |||||||||
Senior notes | 958.5 | — | 58.5 | 58.5 | 841.5 | ||||||||||||||
Junior convertible securities | 880.1 | 5.5 | 44.4 | 44.4 | 785.8 | ||||||||||||||
Leases(2) | 199.4 | 9.6 | 67.9 | 59.2 | 62.7 | ||||||||||||||
Affiliate equity | 45.7 | 44.3 | 1.4 | — | — | ||||||||||||||
Total contractual obligations | $ | 2,953.7 | $ | 59.4 | $ | 172.2 | $ | 1,032.1 | $ | 1,690.0 | |||||||||
Contingent Obligations | |||||||||||||||||||
Contingent payment obligations(3) | $ | 8.9 | $ | 1.6 | $ | 7.3 | $ | — | $ | — |
Period | Total Number of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Average Price Paid Per Share | Maximum Number of Shares that May Yet Be Purchased Under Outstanding Plans or Programs(2) | ||||||||||||
July 1-31, 2017(3) | 1,838 | $ | 175.14 | 1,838 | $ | 175.14 | 2,718,174 | ||||||||||
August 1-31, 2017 | 339,128 | 176.91 | 339,128 | 176.91 | 2,379,046 | ||||||||||||
September 1-30, 2017 | 81,774 | 174.56 | 81,774 | 174.56 | 2,297,272 | ||||||||||||
Total | 422,740 | 175.68 | 422,740 | 175.68 |
__________________________ (1)Includes shares surrendered to the Company to satisfy tax withholding and/or option exercise price obligations in connection with stock swap and option exercise transactions, if any. (2)Our Board of Directors authorized share repurchase programs in October 2022 and October 2023 to repurchase up to 3.0 million and 3.3 million shares of our common stock, respectively, and these authorizations have no expiry. Purchases may be made from time to time, at management’s discretion, in the open market or in privately negotiated transactions, including through the use of trading plans, as well as pursuant to accelerated share repurchase programs or other share repurchase strategies that may include derivative financial instruments. As of March 31, 2024, we had repurchased all of the shares in the repurchase program authorized in October 2022, and there were a total of 3.2 million shares available for repurchase under our October 2023 share repurchase program. |
Exhibit No. | Description | |
4.1 | ||
10.1† | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101 | The following financial statements from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 are filed herewith, formatted in XBRL (Inline eXtensible Business Reporting Language): (i) the Consolidated Statements of Income for the three-month periods ended March 31, 2024 and 2023, (ii) the Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2024 and 2023, (iii) the Consolidated Balance Sheets at March 31, 2024 and December 31, 2023, (iv) the Consolidated Statements of Changes in Equity for the three-month periods ended March 31, 2024 and 2023, (v) the Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2024 and 2023, and (vi) the Notes to the Consolidated Financial Statements | |
104 | The cover page from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in XBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101 |
AFFILIATED MANAGERS GROUP, INC. (Registrant) | |
May 7, 2024 | /s/ |
Dava E. Ritchea on behalf of the Registrant as Chief Financial Officer (and Officer) |