Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 18, 2014 | Jun. 28, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'AFFILIATED MANAGERS GROUP, INC. | ' | ' |
Entity Central Index Key | '0001004434 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $8,612,139,196 |
Entity Common Stock, Shares Outstanding | ' | 53,257,848 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Revenue | $2,188.80 | $1,805.50 | $1,704.80 |
Operating expenses: | ' | ' | ' |
Compensation and related expenses | 947.5 | 784.7 | 718.8 |
Selling, general and administrative | 427.2 | 366.9 | 350.8 |
Intangible amortization and impairments | 128.2 | 200 | 97.7 |
Depreciation and other amortization | 14 | 14.1 | 15 |
Other operating expenses | 37.8 | 39.4 | 36.4 |
Total operating expenses | 1,554.70 | 1,405.10 | 1,218.70 |
Operating income | 634.1 | 400.4 | 486.1 |
Income from equity method investments | 307.8 | 129.7 | 72.7 |
Other non-operating (income) and expenses: | ' | ' | ' |
Investment and other (income) loss | -40.8 | -22 | 5 |
Interest expense | 87.3 | 83 | 73.8 |
Imputed interest expense and contingent payment arrangements | 31.7 | -26.1 | 27.3 |
Total non-operating (income) and expenses | 78.2 | 34.9 | 106.1 |
Income before income taxes | 863.7 | 495.2 | 452.7 |
Income taxes | 194.1 | 83.8 | 93.1 |
Net income | 669.6 | 411.4 | 359.6 |
Net income (non-controlling interests) | -309.1 | -237.4 | -194.7 |
Net income (controlling interest) | $360.50 | $174 | $164.90 |
Earnings per share - basic (in dollars per share) | $6.79 | $3.36 | $3.18 |
Earnings per share - diluted (in dollars per share) | $6.55 | $3.28 | $3.11 |
Average shares outstanding - basic (in shares) | 53.1 | 51.7 | 51.8 |
Average shares outstanding - diluted (in shares) | 56.7 | 53 | 53 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $669.60 | $411.40 | $359.60 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustment | -19.6 | 18.5 | -10.2 |
Change in net realized and unrealized gain (loss) on derivative securities, net of tax | 1 | -0.7 | -5.9 |
Change in net unrealized gain (loss) on investment securities, net of tax | 11.5 | 13.5 | -34.4 |
Other comprehensive income (loss) | -7.1 | 31.3 | -50.5 |
Comprehensive income | 662.5 | 442.7 | 309.1 |
Comprehensive income (non-controlling interests) | -311.1 | -239.6 | -194.7 |
Comprehensive income (controlling interest) | $351.40 | $203.10 | $114.40 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $469.60 | $430.40 |
Receivables | 418.4 | 311 |
Investments in marketable securities | 157.9 | 128.9 |
Other investments | 164.3 | 155.4 |
Fixed assets, net | 92.3 | 81.5 |
Goodwill | 2,341.70 | 2,355.20 |
Acquired client relationships, net | 1,460.70 | 1,585.50 |
Equity investments in Affiliates | 1,123.30 | 1,031.30 |
Other assets | 90.6 | 107.9 |
Total assets | 6,318.80 | 6,187.10 |
Liabilities and Equity | ' | ' |
Payables and accrued liabilities | 514.7 | 363.3 |
Senior bank debt | 525 | 325 |
Senior notes | 340 | 340 |
Convertible securities | 518.7 | 965.6 |
Deferred income taxes | 456.9 | 497.1 |
Other liabilities | 177 | 177.2 |
Total liabilities | 2,532.30 | 2,668.20 |
Commitments and contingencies (Note 11) | ' | ' |
Redeemable non-controlling interests | 641.9 | 477.5 |
Equity: | ' | ' |
Common stock ($.01 par value, 153.0 shares authorized; 53.9 shares outstanding in 2012 and 2013) | 0.5 | 0.5 |
Additional paid-in capital | 479.9 | 868.5 |
Accumulated other comprehensive income | 74 | 79.1 |
Retained earnings | 1,711.20 | 1,350.70 |
Total stockholders' equity before treasury stock | 2,265.60 | 2,298.80 |
Less: treasury stock, at cost (1.7 shares in 2012 and 1.0 shares in 2013) | -131.4 | -214.6 |
Total stockholders' equity | 2,134.20 | 2,084.20 |
Non-controlling interests | 1,010.40 | 957.2 |
Total equity | 3,144.60 | 3,041.40 |
Total liabilities and equity | $6,318.80 | $6,187.10 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 153 | 153 |
Common stock, shares outstanding | 53.9 | 53.9 |
Treasury stock, shares | 1 | 1.7 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Treasury Stock at Cost [Member] | Non-controlling interests [Member] |
In Millions, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2010 | $2,375.30 | $0.50 | $980.50 | $100.50 | $1,011.80 | ($293.30) | $575.30 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Stock issued under option and other incentive plans | 28 | ' | -37.6 | ' | ' | 65.6 | ' |
Tax benefit of option exercises | 8.2 | ' | 8.2 | ' | ' | ' | ' |
Issuance costs | -0.3 | ' | -0.3 | ' | ' | ' | ' |
Changes in Affiliate equity value and other | -25.6 | ' | -63 | ' | ' | ' | 37.4 |
Share-based payment arrangements | 39.7 | ' | 39.7 | ' | ' | ' | ' |
Distributions to non-controlling interests | -173.8 | ' | ' | ' | ' | ' | -173.8 |
Repurchase of common shares | -61 | ' | ' | ' | ' | -61 | ' |
Net income | 359.6 | ' | ' | ' | 164.9 | ' | 194.7 |
Other comprehensive income | -50.5 | ' | ' | -50.5 | ' | ' | ' |
Ending Balance at Dec. 31, 2011 | 2,499.60 | 0.5 | 927.5 | 50 | 1,176.70 | -288.7 | 633.6 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Stock issued under option and other incentive plans | 73 | ' | -62 | ' | ' | 135 | ' |
Tax benefit of option exercises | 25.5 | ' | 25.5 | ' | ' | ' | ' |
Changes in Affiliate equity value and other | -50.2 | ' | -72.1 | ' | ' | ' | 21.9 |
Share-based payment arrangements | 49.6 | ' | 49.6 | ' | ' | ' | ' |
Distributions to non-controlling interests | -185.5 | ' | ' | ' | ' | ' | -185.5 |
Investments in Affiliates | 247.6 | ' | ' | ' | ' | ' | 247.6 |
Repurchase of common shares | -60.9 | ' | ' | ' | ' | -60.9 | ' |
Net income | 411.4 | ' | ' | ' | 174 | ' | 237.4 |
Other comprehensive income | 31.3 | ' | ' | 29.1 | ' | ' | 2.2 |
Ending Balance at Dec. 31, 2012 | 3,041.40 | 0.5 | 868.5 | 79.1 | 1,350.70 | -214.6 | 957.2 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Stock issued under option and other incentive plans | 45.7 | ' | -53.2 | ' | ' | 98.9 | 0 |
Tax benefit of option exercises | 20.7 | ' | 20.7 | ' | ' | ' | ' |
Changes in Affiliate equity value and other | -229.2 | ' | -242.4 | ' | ' | ' | 13.2 |
Share-based payment arrangements | 61 | ' | 61 | ' | ' | ' | ' |
Settlement of senior convertible securities | -130.7 | ' | -130.7 | ' | ' | ' | ' |
Distributions to non-controlling interests | -267.1 | ' | ' | ' | ' | ' | -267.1 |
Forward equity transactions | -44 | ' | -44 | ' | ' | ' | ' |
Repurchase of common shares | -15.7 | ' | ' | ' | ' | -15.7 | ' |
Net income | 669.6 | ' | ' | ' | 360.5 | ' | 309.1 |
Other comprehensive income | -7.1 | ' | ' | -5.1 | ' | ' | -2 |
Ending Balance at Dec. 31, 2013 | $3,144.60 | $0.50 | $479.90 | $74 | $1,711.20 | ($131.40) | $1,010.40 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flow from operating activities: | ' | ' | ' |
Net income | $669.60 | $411.40 | $359.60 |
Adjustments to reconcile Net income to net cash flow from operating activities: | ' | ' | ' |
Intangible amortization and impairments | 128.2 | 200 | 97.7 |
Depreciation and other amortization | 14 | 14.1 | 15 |
Deferred income tax provision | 27.7 | 11.1 | 35.2 |
Imputed interest expense and contingent payment arrangements | 31.7 | -26.1 | 27.3 |
Income from equity method investments, net of amortization | -307.8 | -129.7 | -72.7 |
Distributions received from equity method investments | 226.6 | 104.7 | 128.3 |
Share-based and Affiliate equity compensation | 84.1 | 69.3 | 52.4 |
Other non-cash items | 20 | 24.3 | 30.5 |
Changes in assets and liabilities: | ' | ' | ' |
(Increase) decrease in receivables | -101.8 | -41.6 | 22.6 |
(Increase) decrease in other assets | -12.8 | -4.7 | 1.5 |
Increase in payables, accrued liabilities and other liabilities | 177.6 | 0.4 | 11.1 |
Cash flow from operating activities | 957.1 | 633.2 | 708.5 |
Cash flow used in investing activities: | ' | ' | ' |
Investments in Affiliates | -26.3 | -797.4 | -13.3 |
Purchase of fixed assets | -24 | -20 | -16.1 |
Purchase of investment securities | -11.4 | -19.1 | -49.2 |
Sale of investment securities | 11.4 | 34.2 | 10.9 |
Cash flow used in investing activities | -50.3 | -802.3 | -67.7 |
Cash flow from (used in) financing activities: | ' | ' | ' |
Borrowings of senior debt | 760 | 970 | 360 |
Repayments of senior debt and convertible securities | -1,201.30 | -555 | -570 |
Issuance of common stock | 48.2 | 73.4 | 28 |
Repurchase of common stock | -15.7 | -60.9 | -61 |
Note and contingent payments | -41 | -3.6 | -72.5 |
Distributions to non-controlling interests | -267.1 | -181.4 | -167.6 |
Affiliate equity issuances and repurchases | -118.1 | -107.9 | -13.4 |
Other financing items | -34.1 | 11.6 | -7.3 |
Cash flow from (used in) financing activities | -869.1 | 146.2 | -503.8 |
Effect of foreign exchange rate changes on cash and cash equivalents | 1.5 | 3.8 | -0.8 |
Net increase (decrease) in cash and cash equivalents | 39.2 | -19.1 | 136.2 |
Cash and cash equivalents at beginning of period | 430.4 | 449.5 | 313.3 |
Cash and cash equivalents at end of period | 469.6 | 430.4 | 449.5 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Interest paid | 87.4 | 79.8 | 75.9 |
Income taxes paid | 82.8 | 51.6 | 46.6 |
Supplemental disclosure of non-cash financing activities: | ' | ' | ' |
Payables recorded for Affiliate equity repurchases | 4 | 10.6 | 32.1 |
Payables recorded under contingent payment arrangements | $0 | $28.90 | $0 |
Business_and_Summary_of_Signif
Business and Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Business and Summary of Significant Accounting Policies | ' | |
Business and Summary of Significant Accounting Policies | ||
(a) | Organization and Nature of Operations | |
Affiliated Managers Group, Inc. ("AMG" or the "Company") is a global asset management company with equity investments in a diverse group of boutique investment management firms ("Affiliates"). AMG's Affiliates provide investment management services globally to institutional clients, mutual funds and high net worth individuals. | ||
Affiliates are either organized as limited partnerships, limited liability partnerships, limited liability companies, or corporations. AMG generally has contractual arrangements ("revenue sharing arrangements") with its Affiliates. In many cases, a percentage of revenue is allocable to fund Affiliate operating expenses, including compensation (the "Operating Allocation"), while the remaining revenue (the "Owners' Allocation") is allocable to AMG and the other partners or members. In other revenue sharing arrangements, AMG owns a minority interest that allocates to AMG a percentage of the Affiliate's revenue, with the remaining revenue available to the Affiliate to pay operating expenses and profit distributions to the other owners. Under the revenue sharing arrangements, AMG's contractual share of revenue generally has priority over allocations to Affiliate management. In certain other cases, the Affiliate is not subject to a revenue sharing arrangement, but instead operates on a profit-based model. In these cases, AMG participates fully in any increase or decrease in the revenue or expenses of such firms. | ||
(b) | Basis of Presentation | |
The financial statements are prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"). All dollar amounts, except per share data in the text and tables herein, are stated in millions unless otherwise indicated. Certain reclassifications have been made to prior years' financial statements to conform to the current year's presentation. | ||
Effective December 31, 2013, the Company changed the presentation of its Consolidated Balance Sheets from a classified basis to a non-classified basis. Under the non-classified basis, balances are not separately presented as current or non-current. Management believes that this presentation is more meaningful because it aggregates assets and liabilities of the same nature, which is consistent with the manner in which management monitors its financial position. | ||
(c) | Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. | ||
(d) | Principles of Consolidation | |
Investments in Affiliates | ||
The Company evaluates the risk, rewards, and significant terms of each of its Affiliate and other investments to determine the appropriate method of accounting. Majority-owned or otherwise controlled investments are consolidated. AMG typically has control over its Affiliate investments, directly or indirectly, as the sole general partner (in the case of Affiliates which are limited partnerships), the managing partner (in the case of Affiliates which are limited liability partnerships), the sole manager member (in the case of Affiliates which are limited liability companies) or principal shareholder (in the case of Affiliates which are corporations). As a result, the Company generally consolidates its Affiliate investments and all material intercompany balances and transactions are eliminated. | ||
For its consolidated Affiliates, the portion of the Owners’ Allocation allocated to partners or members other than AMG is included in Net income (non-controlling interests) in the Consolidated Statements of Income. Non-controlling interests on the Consolidated Balance Sheets includes capital and undistributed Operating and Owners’ Allocation owned by partners or members of the consolidated Affiliates. The effect of any changes in the Company's equity interests in its consolidated Affiliates resulting from the issuance or repurchase of an Affiliate's equity by the Company or one of its Affiliates is included as a component of stockholders' equity, net of the related income tax effect in the period of the change. The current redemption value of non-controlling interests has been presented as Redeemable non-controlling interests on the Consolidated Balance Sheets. | ||
AMG applies the equity method of accounting to investments where AMG does not hold a controlling equity interest but has the ability to exercise significant influence over operating and financial matters. AMG also applies the equity method if unaffiliated minority shareholders or partners have certain rights to remove AMG or have rights to participate in substantive operating decisions (e.g. approval of annual operating budgets, major financings, selection of senior management, etc.). | ||
Other investments in which AMG owns less than a 20% interest and does not exercise significant influence are accounted for under the cost method. Under the cost method, income is recognized as dividends when, and if, declared. | ||
Affiliate Sponsored Investment Vehicles | ||
The Company's Affiliates sponsor various investment vehicles where they also act as the investment advisor. Certain of these investment vehicles are variable interest entities (“VIEs”) while others are voting rights entities ("VREs"). | ||
VIEs are consolidated if the Affiliate is determined to be the primary beneficiary (i.e. if it absorbs a majority of the expected losses, or receives a majority of the expected residual returns). In determining whether the Affiliate is the primary beneficiary, both qualitative and quantitative factors (such as the voting rights of the equity holders, economic participation of all parties, including how fees are earned and paid, related party ownership, guarantees and implied relationships) are considered. | ||
VREs are consolidated if the Affiliate is the managing member or general partner of the investment vehicle unless unaffiliated investors have certain rights to remove the Affiliate from such role or have substantive participating rights. | ||
(e) | Cash and Cash Equivalents | |
The Company considers all highly liquid investments, including money market mutual funds, with original maturities of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value due to the short-term maturity of these investments. | ||
(f) | Receivables | |
The Company’s Affiliates earn investment advisory and performance fees which are billed monthly, quarterly or annually based on the terms of the related contracts. Billed but uncollected advisory and performance fees are presented within Receivables on the Consolidated Balance Sheets and are generally short-term in nature. | ||
Certain of the Company’s Affiliates in the United Kingdom act as an intermediary between clients and their sponsored funds. Normal settlement periods on transactions initiated by these clients result in unsettled fund share receivables and payables that are presented on a gross basis within Receivables and Payables and accrued liabilities on the Consolidated Balance Sheets. The gross presentation of these receivables and offsetting payables reflect the legal relationship between the underlying investor and the Company’s Affiliates. | ||
(g) | Investments in Marketable Securities | |
Investments in marketable securities are classified as either trading or available-for-sale and carried at fair value. Unrealized gains or losses on investments classified as available-for-sale are reported, net of tax, as a separate component of Accumulated other comprehensive income in Equity until realized. Unrealized gains or losses related to trading securities are reported within Other operating expenses in the period they occur. If a decline in the fair value of an available-for-sale investment is determined to be other than temporary, the carrying amount of the asset is reduced to its fair value, and the difference is charged to income in the period incurred. | ||
(h) | Fixed Assets | |
Fixed assets are recorded at cost and depreciated using the straight-line method over their estimated useful lives. The estimated useful lives of office equipment and furniture and fixtures range from three to ten years. Computer software developed or obtained for internal use is amortized using the straight-line method over the estimated useful life of the software, generally three years or less. Leasehold improvements are amortized over the shorter of their estimated useful lives or the term of the lease, and the building is amortized over 39 years. The costs of improvements that extend the life of a fixed asset are capitalized, while the cost of repairs and maintenance are expensed as incurred. Land is not depreciated. | ||
(i) | Leases | |
The Company and its Affiliates currently lease office space and equipment under various leasing arrangements. As these leases expire, it can be expected that in the normal course of business they will be renewed or replaced. Leases are classified as either capital leases or operating leases, as appropriate. Most lease agreements classified as operating leases contain renewal options, rent escalation clauses or other inducements provided by the landlord. Rent expense is accrued to recognize lease escalation provisions and inducements provided by the landlord, if any, on a straight-line basis over the lease term. | ||
(j) | Equity Investments in Affiliates | |
For equity method investments, the Company's portion of income or loss before taxes is included in Income from equity method investments, net of any amortization of intangible assets related to the Company's investment. The Company's share of income taxes incurred directly by Affiliates accounted for under the equity method are recorded within current income taxes because these taxes generally represent the Company's share of the taxes incurred by the Affiliate. Deferred income taxes incurred as a direct result of the Company's investment in Affiliates accounted for under the equity method have been included in intangible-related deferred taxes. The associated deferred tax liabilities have been classified as a component of Deferred income taxes in the Consolidated Balance Sheet. | ||
The Company periodically evaluates its equity method investments for impairment. In such impairment evaluations, the Company assesses if the fair value of the investment has declined below its carrying value for a period considered to be other than temporary. If the Company determines that a decline in fair value below the carrying value of the investment is other than temporary, then the reduction in carrying value would be recognized in Income from equity method investments in the Consolidated Statements of Income. | ||
(k) | Acquired Client Relationships and Goodwill | |
Each acquired Affiliate has identifiable assets arising from contractual or other legal rights with their clients ("acquired client relationships"). In determining the value of acquired client relationships, the Company analyzes the net present value of each acquired Affiliate's existing client relationships based on a number of factors including: the Affiliate's historical and potential future operating performance; the Affiliate's historical and potential future rates of attrition among existing clients; the stability and longevity of existing client relationships; the Affiliate's recent, as well as long-term, investment performance; the characteristics of the firm's products and investment styles; the stability and depth of the Affiliate's management team and the Affiliate's history and perceived franchise or brand value. | ||
The Company has determined that certain of its mutual fund acquired client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and the cash flows generated by these assets to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred which indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company would assess whether the carrying value of the assets exceeds its fair value, an impairment loss would be recorded in an amount equal to any such excess and these assets would be reclassified to definite-lived. | ||
The expected useful lives of definite-lived acquired client relationships are analyzed each period and determined based on an analysis of the historical and projected attrition rates of each Affiliate's existing clients, and other factors that may influence the expected future economic benefit the Company will derive from the relationships. | ||
The Company tests for the possible impairment of indefinite and definite-lived intangible assets annually or more frequently whenever events or changes in circumstances indicate that the carrying amount of the asset is not recoverable. If such indicators exist, the Company compares the fair value of the asset to the carrying value of the asset. If the carrying value is greater than the fair value, an impairment loss may be recorded. | ||
Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized, and is reported within the segments in which the business operates. Goodwill is not amortized, but is instead reviewed for impairment. The Company assesses goodwill for impairment at least annually, or more frequently whenever events or circumstances occur indicating that the recorded goodwill may be impaired. If the carrying amount of goodwill exceeds the fair value, an impairment loss may be recorded. | ||
(l) | Issuance Costs | |
Issuance costs incurred in securing credit facility financing are amortized over the remaining term of the credit facility. Costs incurred to issue debt are amortized over the shorter of the period to the first investor put or the Company's estimate of the expected term of the security. Costs associated with financial instruments that are not required to be accounted for separately as derivative instruments are charged directly to stockholders' equity. | ||
(m) | Derivative Financial Instruments | |
The Company is exposed to interest rate risk inherent in its variable rate debt obligations. The Company's risk management strategy may utilize financial instruments, specifically interest rate derivative contracts to hedge certain interest rate exposures. In entering into these contracts, the Company intends to offset cash flow gains and losses that occur on its existing debt obligations with cash flow gains and losses on the contracts hedging these obligations. | ||
The Company records all derivatives on the balance sheet at fair value. If the Company's derivatives qualify as cash flow hedges, the effective portion of the unrealized gain or loss is recorded in Accumulated other comprehensive income as a separate component of stockholders' equity and reclassified into earnings when the hedged cash flows are recorded in earnings. Hedge effectiveness is generally measured by comparing the present value of the cumulative change in the expected future variable cash flows of the hedged contract with the present value of the cumulative change in the expected future variable cash flows of the hedged item. To the extent that the critical terms of the hedged item and the derivative are not identical, hedge ineffectiveness would be reported in earnings as Interest expense. If the Company's derivatives do not qualify as cash flow or fair value hedges, changes in the fair value of the derivatives are recognized as a gain or loss in Investment and other (income) loss. | ||
(n) | Contingent Payment Arrangements | |
The Company periodically enters into contingent payment arrangements in connection with its business combinations. In these arrangements, the Company agrees to pay additional consideration to the sellers to the extent that certain levels of revenue growth are achieved. For consolidated Affiliates, the Company estimates the fair value of these potential future obligations at the time a business combination is consummated and records a liability on its Consolidated Balance Sheet. The Company then accretes the obligation to its expected payment amount over the period until the arrangement is measured. If the Company's expected payment amount subsequently changes, the obligation is reduced or increased in the current period resulting in a gain or loss, respectively. Both gains and losses resulting from changes to expected payments and the accretion of these obligations to their expected payment amounts are reflected within Imputed interest expense and contingent payment arrangements in the Company's Consolidated Statements of Income. For Affiliates accounted for under the equity method, the Company records an obligation when a payment becomes probable with a corresponding increase to the carrying value of the Affiliate. | ||
(o) | Income Taxes | |
The Company accounts for income taxes using the liability method. Under this method, deferred taxes are recognized for the expected future tax consequences of temporary differences between the book carrying amounts and tax bases of the Company's assets and liabilities. Deferred tax liabilities are generally attributable to intangible assets, convertible securities and deferred revenue. Deferred tax assets are generally attributable to state and foreign loss carryforwards, deferred compensation and the benefit of uncertain tax positions. | ||
In measuring the amount of deferred taxes each period, the Company must project the impact on its future tax payments of any reversal of deferred tax liabilities (which would increase the Company's tax payments), and any use of its state and foreign loss carryforwards (which would decrease its tax payments). In forming these estimates, the Company uses enacted federal, state and foreign income tax rates and makes assumptions about the apportionment of future taxable income to jurisdictions in which the Company has operations. An increase or decrease in federal or state income tax rates could have a material impact on the Company's deferred income tax liabilities and assets and would result in a current income tax charge or benefit. | ||
The Company recognizes the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a "more-likely-than-not" threshold, the amount recognized in the financial statements is the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. The Company recognizes interest and other charges relating to unrecognized tax benefits as additional tax expense. | ||
In the case of the Company's deferred tax assets, the Company regularly assesses the need for valuation allowances, which would reduce these assets to their recoverable amounts. In forming these estimates, the Company makes assumptions of future taxable income that may be generated to utilize these assets, which have limited lives. If the Company determines that these assets will be realized, the Company records an adjustment to the valuation allowance, which would decrease tax expense in the period such determination was made. Likewise, should the Company determine that it would be unable to realize additional amounts of deferred tax assets, an adjustment to the valuation allowance would be charged to tax expense in the period such determination was made. | ||
(p) | Foreign Currency Translation | |
The assets and liabilities of Affiliates whose functional currency is not the U.S. dollar are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. The revenue and expenses of these Affiliates are translated into U.S. dollars using average exchange rates for the relevant period. Because of the permanent nature of the Company's investments, net translation exchange gains and losses are excluded from Net income but are recorded in Other comprehensive income. Foreign currency transaction gains and losses are reflected in Investment and other income. | ||
(q) | Revenue Recognition | |
The Company's consolidated revenue primarily represents advisory fees billed monthly, quarterly and annually by Affiliates for managing the assets of clients. Asset-based advisory fees are recognized as services are rendered and are based upon a percentage of the value of client assets managed. Any fees collected in advance are deferred and recognized as income over the period earned. Performance based advisory fees are generally assessed as a percentage of the investment performance realized on a client's account, generally over an annual period. Performance-based advisory fees are recognized when they are earned (i.e. when they become billable to customers and are not subject to contingent repayment) based on the contractual terms of agreements and when collection is reasonably assured. Carried interest is recognized upon the earlier of the termination of the investment product or when the likelihood of claw-back is improbable. Also included in revenue are commissions earned by broker dealers, recorded on a trade date basis, and other service fees recorded as earned. | ||
The Company's Affiliates have contractual arrangements with third parties to provide certain distribution-related services. These third parties are primarily compensated based on the value of client assets over time. Distribution related revenues are presented gross of any related expenses when the Affiliate is the principal in its role as primary obligor under its sales and distribution arrangements. Distribution-related expenses are presented within Selling, general and administrative expenses. | ||
(r) | Share-Based Compensation Plans | |
The Company recognizes expenses for all share-based payments based on their grant date fair values over the requisite service period. | ||
The Company reports any tax benefits realized upon the exercise of stock options that are in excess of the expense recognized for reporting purposes as a financing activity in the Company's Consolidated Statements of Cash Flows. If the tax benefit realized is less than the expense, the tax shortfall is recognized in stockholders' equity. To the extent the expense exceeds available windfall tax benefits, it is recognized in the Consolidated Statements of Income. The Company was permitted to calculate its cumulative windfall tax benefits for the purposes of accounting for future tax shortfalls. The Company elected to apply the long-form method for determining the pool of windfall tax benefits. | ||
(s) | Recent Accounting Developments | |
In February 2013, the Financial Accounting Standards Board issued an update to the guidance for reporting reclassifications out of accumulated other comprehensive income. The new guidance requires companies to present the impact of significant amounts reclassified from accumulated other comprehensive income and the income statement line items affected by the reclassification. The new guidance is effective for interim and fiscal periods beginning after December 15, 2012. The Company adopted this guidance in the first quarter of 2013. Adoption of this new guidance did not have a significant impact on the Company's Consolidated Financial Statements. | ||
In June 2013, the Financial Accounting Standards Board issued an update to the guidance for determining whether a public or private company is an investment company. The new guidance clarifies the characteristics of an investment company and amends certain disclosure and measurement requirements. The new guidance is effective for interim and fiscal periods beginning after December 15, 2013 (early application is prohibited). The Company is evaluating the impact of this guidance and does not expect it to have a significant impact on the Company's Consolidated Financial Statements. |
Investments_in_Marketable_Secu
Investments in Marketable Securities | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Marketable Securities [Abstract] | ' | |||||||||||||||
Investments in Marketable Securities | ' | |||||||||||||||
Investments in Marketable Securities | ||||||||||||||||
Investment in marketable securities at December 31, 2012 and 2013 were $128.9 million and $157.9 million, respectively. These investments are comprised of the Company's investment in Value Partners Group Limited ("Value Partners"), a publicly-traded asset management firm based in Hong Kong, and investments held by Affiliates. | ||||||||||||||||
The following is a summary of the cost, gross unrealized gains and losses and fair value of investments classified as available-for-sale and trading at December 31, 2012 and 2013: | ||||||||||||||||
Available-for-Sale | Trading | |||||||||||||||
31-Dec-12 | 31-Dec-13 | 31-Dec-12 | December 31, 2013 | |||||||||||||
Cost | $ | 103.2 | $ | 103.2 | $ | 10.3 | $ | 17.9 | ||||||||
Unrealized Gains | 15.3 | 33.3 | 6.5 | 4.6 | ||||||||||||
Unrealized Losses | (3.2 | ) | (1.1 | ) | (3.2 | ) | — | |||||||||
Fair Value | $ | 115.3 | $ | 135.4 | $ | 13.6 | $ | 22.5 | ||||||||
The Company had no significant realized gains and losses on investments for the periods presented. |
Other_Investments
Other Investments | 12 Months Ended |
Dec. 31, 2013 | |
Investments, All Other Investments [Abstract] | ' |
Other Investments | ' |
Other Investments | |
Other investments consist of investments in funds advised by Affiliates which are carried at fair value. The income or loss related to these investments is classified within investment and other income in the Consolidated Statements of Income. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Variable Interest Entities | ' | |||||||||||||||
Variable Interest Entities | ' | |||||||||||||||
Variable Interest Entities | ||||||||||||||||
Sponsored Investment Funds | ||||||||||||||||
The Company's Affiliates act as the investment manager for certain investment funds that are considered variable interest entities ("VIEs"). Affiliates are entitled to receive management fees and may be eligible, under certain circumstances, to receive incentive fees. The Affiliates' exposure to risk in these entities is generally limited to any equity investment and any uncollected management or incentive fees, neither of which were material at December 31, 2012 or 2013. The Affiliates do not have any investment performance guarantees to these VIEs. | ||||||||||||||||
The Affiliates are not the primary beneficiary of any of these VIEs as their involvement is limited to that of a service provider and their investment, if any, represents an insignificant interest in the fund's assets under management. Since the Affiliates' variable interests will not absorb the majority of the variability of the entity's net assets, these entities are not consolidated. | ||||||||||||||||
Trust Preferred Vehicles | ||||||||||||||||
The Company established wholly-owned trusts in connection with the 2006 and 2007 issuances of junior convertible trust preferred securities. These entities are considered VIEs because the Company's equity investment in the trusts is not at risk and therefore the Company is not the primary beneficiary. As a result, these entities are not consolidated in the Company's financial statements. | ||||||||||||||||
The net assets and liabilities of these unconsolidated VIEs and the Company's maximum risk of loss related thereto are as follows: | ||||||||||||||||
31-Dec-12 | 31-Dec-13 | |||||||||||||||
Category of Investment | Unconsolidated | Carrying Value and | Unconsolidated | Carrying Value and | ||||||||||||
VIE Net Assets | Maximum Exposure | VIE Net Assets | Maximum Exposure | |||||||||||||
to Loss | to Loss | |||||||||||||||
Sponsored investment funds | $ | 7,186.90 | $ | 0.8 | $ | 8,112.70 | $ | 1.7 | ||||||||
Trust preferred vehicles | 9 | 9 | 9 | 9 | ||||||||||||
Senior_Bank_Debt
Senior Bank Debt | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Senior Bank Debt | ' |
Senior Bank Debt | |
The Company has a $1.25 billion senior unsecured revolving credit facility (the "credit facility") which matures in April 2018. The Company pays interest on any outstanding obligations at specified rates (based either on the LIBOR rate or the prime rate as in effect from time to time). | |
As of December 31, 2012 and 2013, the Company had outstanding borrowings under the credit facility of $325.0 million and $525.0 million, respectively, and the weighted-average interest rate on outstanding borrowings was 2.77% and 1.95%, respectively. The Company pays commitment fees on the unused portion of its credit facility. In 2012 and 2013, these fees amounted to $3.7 million and $3.2 million, respectively. | |
The credit facility is unsecured and contains financial covenants with respect to leverage and interest coverage, as well as customary affirmative and negative covenants, including limitations on indebtedness, liens, cash dividends, asset dispositions and fundamental corporate changes. |
Senior_Notes
Senior Notes | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Senior Notes | ' | |||||||
Senior Notes | ||||||||
At December 31, 2013, the Company has two senior notes outstanding. The principal terms of these notes are summarized below. | ||||||||
2022 | 2042 | |||||||
Senior | Senior | |||||||
Notes | Notes | |||||||
Issue date | Oct-12 | Aug-12 | ||||||
Maturity date | Oct-22 | Aug-42 | ||||||
Potential Call Date | Oct-15 | Aug-17 | ||||||
Par value (in millions) | $ | 140 | $ | 200 | ||||
Call Price | At Par | At Par | ||||||
Stated coupon | 5.25 | % | 6.375 | % | ||||
Coupon frequency | Quarterly | Quarterly | ||||||
On February 11, 2014, The Company sold $400.0 million aggregate principal amount of 4.25% senior notes due 2024 (the “2024 senior notes”). The unsecured 2024 senior notes pay interest semi-annually and may be redeemed at any time, in whole or in part, at a make-whole redemption price plus accrued and unpaid interest. In addition to customary event of default provisions, the indenture limits the Company’s ability to consolidate, merge or sell all or substantially all of its assets, and to create certain liens. |
Convertible_Securities
Convertible Securities | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Convertible Securities | ' | |||||||||||||||
Convertible Securities | ||||||||||||||||
In 2013, the Company settled $460.0 million principal amount outstanding of our 3.95% senior convertible notes due 2038 (“2008 senior convertible notes”). In connection with the settlement, the Company paid an aggregate of $641.3 million and all of our 2008 senior convertible notes have been retired. | ||||||||||||||||
At December 31, 2013, the Company has two junior convertible trust preferred securities outstanding, one issued in 2006 (the "2006 junior convertible trust preferred securities") and a second issued in 2007 (the "2007 junior convertible trust preferred securities"). | ||||||||||||||||
The carrying values of the Company's convertible securities are as follows: | ||||||||||||||||
31-Dec-12 | 31-Dec-13 | |||||||||||||||
Carrying | Principal amount | Carrying | Principal amount | |||||||||||||
Value | at maturity | Value | at maturity | |||||||||||||
Senior convertible securities: | ||||||||||||||||
2008 senior convertible notes(1) | $ | 450.1 | $ | 460 | $ | — | $ | — | ||||||||
Junior convertible trust preferred securities: | ||||||||||||||||
2007 junior convertible trust preferred securities(1) | $ | 299.4 | $ | 430.8 | $ | 301.2 | $ | 430.8 | ||||||||
2006 junior convertible trust preferred securities(1) | 216.1 | 300 | 217.5 | 300 | ||||||||||||
Total junior convertible securities | $ | 515.5 | $ | 730.8 | $ | 518.7 | $ | 730.8 | ||||||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | Carrying value is accreted to the principal amount at maturity over an expected life of 30 years for each of the junior convertible trust preferred securities. | |||||||||||||||
The principal terms of these securities are summarized below. | ||||||||||||||||
2006 | 2007 | |||||||||||||||
Junior | Junior | |||||||||||||||
Convertible | Convertible | |||||||||||||||
Trust Preferred | Trust Preferred | |||||||||||||||
Securities(1) | Securities(2) | |||||||||||||||
Issue date | Apr-06 | Oct-07 | ||||||||||||||
Maturity date | Apr-36 | Oct-37 | ||||||||||||||
Par value (in millions) | $ | 300 | $ | 430.8 | ||||||||||||
Carrying value (in millions)(3) | $ | 217.5 | $ | 301.2 | ||||||||||||
Denomination | $ | 50 | $ | 50 | ||||||||||||
Current conversion rate | 0.333 | 0.25 | ||||||||||||||
Current conversion price | $ | 150 | $ | 200 | ||||||||||||
Stated coupon | 5.1 | % | 5.15 | % | ||||||||||||
Coupon frequency | Quarterly | Quarterly | ||||||||||||||
Tax deduction rate(4) | 7.5 | % | 8 | % | ||||||||||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | On February 13, 2014, we delivered a notice to redeem all of our outstanding 2006 convertible trust preferred securities. In lieu of redemption, holders of the 2006 junior convertible trust preferred securities may elect to convert their securities into a defined number of shares. Upon conversion, holders will receive cash or shares of our common stock, or a combination thereof, at our election. | |||||||||||||||
-2 | The Company may redeem the 2007 junior convertible trust preferred securities if the closing price of the Company's common stock exceeds $260 per share for 20 trading days in a period of 30 consecutive trading days. | |||||||||||||||
-3 | The carrying value is accreted to the principal amount at maturity over an expected life of 30 years for each of the junior convertible trust preferred securities. | |||||||||||||||
-4 | These convertible securities are considered contingent payment debt instruments under federal income tax regulations, which require the Company to deduct interest in an amount greater than its reported Interest expense. These deductions result in annual deferred tax liabilities of approximately $12.9 million ($8.1 million assuming the redemption of the 2006 convertible trust preferred securities). These deferred tax liabilities will be reclassified directly to stockholders' equity if the Company's common stock is trading above certain thresholds at the time of the conversion of the securities. In 2013 , $50.6 million was reclassified to stockholders' equity related to the repurchase of the 2008 senior convertible notes. |
Forward_Equity_Sale_Agreement
Forward Equity Sale Agreement | 12 Months Ended |
Dec. 31, 2013 | |
Forward Equity Sale Agreements | ' |
Forward Equity Sale Agreement | ' |
Forward Equity Sale Agreement | |
Under a forward equity agreement, the Company may sell shares of common stock up to an aggregate notional amount of $400.0 million. During 2012, the Company entered into contracts to sell a notional amount of $147.2 million at an average share price of $121.37. During 2013, the Company agreed to net settle $77.0 million notional amount of forward equity contracts for cash at an average share price of $185.56. As of December 31, 2013, the Company has $70.2 million notional amount outstanding. The Company has the ability to settle the outstanding contracts either by delivering shares of common stock and receiving cash or net settling for cash or shares of common stock. |
Financial_Instruments_and_Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2013 | |
Financial Instruments and Risk Management | ' |
Financial Instruments and Risk Management | ' |
Financial Instruments and Risk Management | |
The Company is exposed to market risks brought on by changes in interest and currency exchange rates. The Company has not entered into foreign currency transactions or derivative financial instruments to reduce risks associated with changes in currency exchange rates. The Company may use derivative financial instruments to reduce risks associated with changes in interest rates. | |
Notional amounts and credit exposures of derivatives | |
The notional amount of derivatives does not represent amounts that are exchanged by the parties, and thus are not a measure of the Company's exposure. The amounts exchanged are calculated on the basis of the notional or contract amounts, as well as on other terms of the interest rate derivatives and the volatility of these rates and prices. | |
The Company may be exposed to credit-related losses in the event of nonperformance by the counter parties that issued the financial instruments, although the Company does not expect that the counter parties to interest rate derivatives will fail to meet their obligations, given their typically high credit ratings. | |
Interest Rate Risk Management | |
From time to time, the Company enters into derivative financial instruments to reduce exposure to changing interest rates. The Company does not hold or issue derivative financial instruments for trading purposes. Derivative financial instruments are intended to enable the Company to achieve a level of variable-rate or fixed-rate debt that is acceptable to management and to limit interest rate exposure. The Company agrees with another party to exchange the difference between fixed-rate and floating rate interest amounts calculated by reference to an agreed notional principal amount. | |
Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash investments. The Company maintains cash and cash equivalents, investments and, at times, certain financial instruments with various high credit-quality financial institutions. These financial institutions are typically located in countries in which AMG and its Affiliates operate. For AMG and certain Affiliates, cash deposits at a financial institution may exceed Federal Deposit Insurance Corporation insurance limits. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
Derivative Financial Instruments | |||||||||||||
From time to time, the Company seeks to offset its exposure to changing interest rates under its debt financing arrangements by entering into interest rate hedging contracts. | |||||||||||||
In 2010, the Company entered into interest rate swap agreements as summarized in the table below: | |||||||||||||
Notional | Paying | Receiving | Start Date | Expiration Date | |||||||||
Amount | |||||||||||||
Counterparty A | $ | 25 | 1.67 | % | 3-Month LIBOR | Oct-10 | Oct-15 | ||||||
Counterparty A | $ | 25 | 1.65 | % | 3-Month LIBOR | Oct-10 | Oct-15 | ||||||
Counterparty B | $ | 25 | 1.59 | % | 3-Month LIBOR | Oct-10 | Oct-15 | ||||||
Counterparty B | $ | 25 | 2.14 | % | 3-Month LIBOR | Oct-10 | Oct-17 | ||||||
The Company’s derivative contracts contain provisions that may require the Company or the counterparties to post collateral based upon the current fair value of the derivative contracts. As of December 31, 2013, the Company had posted collateral of $3.6 million related to its interest rate swap contracts. | |||||||||||||
The following summarizes the amount of derivative instrument gains and losses reported in the Consolidated Statements of Comprehensive Income: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
Cash Flow Hedges | 2011 | 2012 | 2013 | ||||||||||
Interest rate swaps | $ | (5.4 | ) | $ | (1.1 | ) | $ | 1.5 | |||||
Treasury rate locks | (4.3 | ) | — | — | |||||||||
Total | $ | (9.7 | ) | $ | (1.1 | ) | $ | 1.5 | |||||
At December 31, 2012 and 2013, the fair values of the Company's interest rate swaps ($4.0 million and $2.5 million, respectively) are presented within Other liabilities. The Company does not generally hold or issue derivative financial instruments for trading purposes. Interest rate swaps are intended to enable the Company to achieve a level of variable-rate and fixed-rate debt that limits interest rate exposure. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
The Company and its Affiliates are subject to claims, legal proceedings and other contingencies in the ordinary course of their business activities. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved in a manner unfavorable to the Company or its Affiliates. The Company and its Affiliates establish accruals for matters for which the outcome is probable and the amount of the liability can be reasonably estimated. Management believes that any liability in excess of these accruals upon the ultimate resolution of these matters will not have a material adverse effect on the Company. | |
Certain Affiliates operate under regulatory authorities which require that they maintain minimum financial or capital requirements. Management is not aware of any significant violations of such financial requirements occurring during the period. | |
In connection with a past acquisition agreement, the Company has committed to co-invest in certain investment partnerships where it serves as the general partner. As of December 31, 2013, these unfunded commitments totaled approximately $62.9 million and may be called in future periods. The Company is contractually entitled to reimbursement from the prior owner for $29.0 million of these commitments if they are called. | |
Under past acquisition agreements, the Company is contingently liable, upon achievement by Affiliates of specified financial targets, to make payments of up to $474.1 million through 2017. As of December 31, 2013, the Company expects to make payments of $75.0 million (none in 2014) to settle obligations related to consolidated Affiliates and may make payments of up to $151.0 million related to the Company's equity method investments. The net present value of the expected payments for consolidated Affiliates totals $50.2 million as of December 31, 2013. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
The following table summarizes the Company's financial assets and liabilities that are measured at fair value on a recurring basis: | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
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 | $ | 13.5 | $ | 13.5 | $ | — | $ | — | |||||||||||||||||
Investments in marketable securities(1) | |||||||||||||||||||||||||
Trading securities | 13.6 | 13.6 | — | — | |||||||||||||||||||||
Available-for-sale securities | 115.3 | 115.3 | — | — | |||||||||||||||||||||
Other investments | 155.4 | 15.7 | 20.8 | 118.9 | |||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||
Contingent payment arrangements(2) | $ | 31 | $ | — | $ | — | $ | 31 | |||||||||||||||||
Obligations to related parties(3) | 77.8 | — | — | 77.8 | |||||||||||||||||||||
Interest rate derivatives(4) | 4 | — | 4 | — | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
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 | $ | 39 | $ | 39 | $ | — | $ | — | |||||||||||||||||
Investments in marketable securities(1) | |||||||||||||||||||||||||
Trading securities | 22.5 | 22.5 | — | — | |||||||||||||||||||||
Available for sale securities | 135.4 | 135.4 | — | — | |||||||||||||||||||||
Other investments | 164.3 | 14.1 | 18.4 | 131.8 | |||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||
Contingent payment arrangements(2) | $ | 50.2 | $ | — | $ | — | $ | 50.2 | |||||||||||||||||
Obligations to related parties(3) | 76.9 | — | — | 76.9 | |||||||||||||||||||||
Interest rate derivatives(4) | 2.5 | — | 2.5 | — | |||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-1 | Principally investments in equity securities. | ||||||||||||||||||||||||
-2 | Net present value of expected payments under contingent payment arrangements are reported in Other liabilities. | ||||||||||||||||||||||||
-3 | Obligations to related parties are presented within Other liabilities. | ||||||||||||||||||||||||
-4 | Interest rate derivatives are presented within Other liabilities. | ||||||||||||||||||||||||
The following is a description of the significant financial assets and liabilities measured at fair value and the fair value methodologies used. | |||||||||||||||||||||||||
Cash equivalents consist primarily of highly liquid investments in daily redeeming money market funds which are classified as Level 1. | |||||||||||||||||||||||||
Investments in marketable securities consist primarily of investments in publicly traded securities and in funds advised by Affiliates which are valued using net asset value ("NAV"). Publicly traded securities and investments in daily redeeming funds that calculate NAVs are classified as Level 1. | |||||||||||||||||||||||||
Other investments consist primarily of funds advised by Affiliates and are valued using NAV. Investments in daily redeeming funds that calculate NAVs are classified as Level 1. Investments in funds that permit redemptions monthly or quarterly are classified as Level 2. Investments in funds that are subject to longer redemption restrictions are classified as Level 3. The fair value of Level 3 assets is determined using NAV one quarter in arrears (adjusted for current period calls and distributions). | |||||||||||||||||||||||||
Contingent payment arrangements represent the present value of the expected future settlement of contingent payment arrangements related to the Company's investments in consolidated Affiliates. The significant unobservable inputs that are used in the fair value measurement of these obligations are growth and discount rates. Increases in the growth rate result in a higher obligation while an increase in the discount rate results in a lower obligation. | |||||||||||||||||||||||||
Obligations to related parties include agreements to repurchase Affiliate equity and liabilities offsetting certain investments which are held by the Company but economically attributable to a related party. The significant unobservable inputs that are used in the fair value measurement of the agreements to repurchase Affiliate equity are growth and discount rates. Increases in the growth rate result in a higher obligation while an increase in the discount rate results in a lower obligation. The liability to a related party is measured based upon certain investments held by the Company, the fair value of which is determined using NAV one quarter in arrears. | |||||||||||||||||||||||||
Interest rate derivatives include interest rate swaps. The fair value of these assets is determined by model-derived valuations in which all significant inputs are observable in active markets. | |||||||||||||||||||||||||
It is the Company's policy to value financial assets or liabilities transferred as of the beginning of the period in which the transfer occurs. There were no transfers of financial assets or liabilities from Level 1 to Level 2 in 2013. In 2012, financial assets valued at $2.0 million were transferred from Level 1 to Level 2. | |||||||||||||||||||||||||
Level 3 Financial Assets and Liabilities | |||||||||||||||||||||||||
The following table presents the changes in Level 3 assets and liabilities for the years ended December 31, 2012 and 2013: | |||||||||||||||||||||||||
For the Twelve Months Ended | |||||||||||||||||||||||||
31-Dec-12 | 31-Dec-13 | ||||||||||||||||||||||||
Other Investments | Contingent Payment Arrangements | Obligations to related parties | Other Investments | Contingent Payment Arrangements | Obligations to related parties | ||||||||||||||||||||
Balance, beginning of period | $ | 103.4 | $ | 87.1 | $ | 92 | $ | 118.9 | $ | 31 | $ | 77.8 | |||||||||||||
Net gains/losses | 7.8 | (1) | (40.8 | ) | (2) | 1.8 | (3) | 12.3 | (1) | 19.2 | (2) | 6.2 | (3) | ||||||||||||
Purchases and issuances | 18.8 | 24.8 | 32.1 | 18 | — | 62.9 | |||||||||||||||||||
Settlements and reductions | (11.1 | ) | (40.1 | ) | (48.1 | ) | (17.4 | ) | — | (70.0 | ) | ||||||||||||||
Net transfers in and/or out of Level 3 | — | — | — | — | — | — | |||||||||||||||||||
Balance, end of period | $ | 118.9 | $ | 31 | $ | 77.8 | $ | 131.8 | $ | 50.2 | $ | 76.9 | |||||||||||||
Net unrealized gains/losses relating to instruments still held at the reporting date | $ | 11 | $ | (13.5 | ) | $ | 0.8 | $ | 16.5 | $ | 19.2 | $ | 2.2 | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-1 | Gains and losses on Other investments are recorded in Investment and other income. | ||||||||||||||||||||||||
-2 | Accretion and changes to payment estimates under the Company's contingent payment arrangements are recorded in Imputed interest expense and contingent payment arrangements and foreign currency translation adjustments related to such arrangements are recorded as Other comprehensive income. | ||||||||||||||||||||||||
-3 | Gains and losses associated with agreements to repurchase Affiliate equity are recorded in Imputed interest expense and contingent payment arrangements. Gains and losses related to liabilities offsetting certain investments are recorded in Investment and other income. | ||||||||||||||||||||||||
The following table presents certain quantitative information about the significant unobservable inputs used in valuing our Level 3 financial liabilities: | |||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||
Valuation | Unobservable Input | Fair Value at | Range at December 31, 2012 | Fair Value at | Range at December 31, 2013 | ||||||||||||||||||||
Techniques | December 31, 2012 | December 31, 2013 | |||||||||||||||||||||||
Contingent payment arrangements | Discounted cash flow | Growth rates | $ | 31 | 6.0% - 12.0% | $ | 50.2 | 3.0% - 11.0% | |||||||||||||||||
Discount rates | 14.0% - 18.0% | 14.0% - 18.0% | |||||||||||||||||||||||
Affiliate equity repurchase obligations | Discounted cash flow | Growth rates | 9.4 | (10.0)% - 17.0% | 4 | 8.00% | |||||||||||||||||||
Discount rates | 15.0% - 24.0% | 15.00% | |||||||||||||||||||||||
Investments in Certain Entities that Calculate Net Asset Value | |||||||||||||||||||||||||
The Company relies on the NAV of certain investments as their fair value. The NAVs that have been provided by the investees have been derived from the fair values of the underlying investments as of the measurement dates. The following table summarizes, as of December 31, 2012 and 2013, the nature of these investments and any related liquidation restrictions or other factors which may impact the ultimate value realized: | |||||||||||||||||||||||||
31-Dec-12 | 31-Dec-13 | ||||||||||||||||||||||||
Category of Investment | Fair Value | Unfunded | Fair Value | Unfunded | |||||||||||||||||||||
Commitments | Commitments | ||||||||||||||||||||||||
Private equity fund-of-funds(1) | $ | 118.9 | $ | 75.4 | $ | 131.8 | $ | 62.9 | |||||||||||||||||
Other funds(2) | 68.9 | — | 82.3 | — | |||||||||||||||||||||
$ | 187.8 | $ | 75.4 | $ | 214.1 | $ | 62.9 | ||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-1 | These funds primarily invest in a broad range of private equity funds, as well as making direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds. | ||||||||||||||||||||||||
-2 | These are multi-disciplinary funds that invest across various asset classes and strategies including long/short equity, credit and real estate. Investments are generally redeemable on a daily or quarterly basis. | ||||||||||||||||||||||||
There are no current plans to sell any of these investments. | |||||||||||||||||||||||||
Other Financial Assets and Liabilities Not Carried at Fair Value | |||||||||||||||||||||||||
The carrying amount of cash, cash equivalents, advisory fees receivable, short-term investments, unsettled fund shares receivable and payable, accounts payable and accrued liabilities approximates fair value because of the short-term nature of these instruments. The carrying value of notes receivable approximates fair value because interest rates and other terms are at market rates. The carrying value of senior bank debt approximates fair value because the debt is a credit facility with variable interest based on selected short-term rates. The following table summarizes the Company's other financial liabilities not carried at fair value: | |||||||||||||||||||||||||
31-Dec-12 | 31-Dec-13 | ||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Fair Value Hierarchy | |||||||||||||||||||||
Senior notes | $ | 340 | $ | 351.8 | $ | 340 | $ | 325 | Level 2 | ||||||||||||||||
Senior convertible securities | 450.1 | 510.6 | — | — | Level 2 | ||||||||||||||||||||
Junior convertible trust preferred securities | 515.5 | 719.9 | 518.7 | 963.9 | Level 2 | ||||||||||||||||||||
Business_Combinations
Business Combinations | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Business Combinations | ' | |||||||
Business Combinations | ||||||||
In 2012, the Company completed majority investments in two new Affiliates. The Company's purchase price allocations used financial models that included assumptions of market performance, net client cash flows and discount rates. The excess of the enterprise value over the net assets acquired was recorded as goodwill, of which 67.0%, 32.9% and 0.1% was attributed to the Company's Mutual Fund, High Net Worth and Institutional segments, respectively. The consideration paid (less net tangible assets acquired) is deductible for U.S. tax purposes over a 15-year life. | ||||||||
In connection with one of the investments, the Company is contingently liable to make payments of up to $75.0 million over the next three to five years upon the achievement of specified revenue targets. | ||||||||
The aggregate purchase price allocation for these investments is as follows: | ||||||||
Total | ||||||||
Consideration paid | $ | 417.8 | ||||||
Non-controlling interests | 247.6 | |||||||
Contingent payment obligations | 24.8 | |||||||
Enterprise value | $ | 690.2 | ||||||
Acquired client relationships | $ | 452.6 | ||||||
Tangible assets, net | 11.7 | |||||||
Goodwill | 225.9 | |||||||
$ | 690.2 | |||||||
Unaudited pro forma financial results are set forth below, giving consideration to the investments and acquisitions in 2012, as if such transactions occurred as of January 1, 2011, assuming the revenue sharing arrangements had been in effect for the entire period and after making certain other pro forma adjustments. | ||||||||
For the Years Ended December 31, | ||||||||
2011 | 2012 | |||||||
Revenue | $ | 1,810.90 | $ | 1,881.00 | ||||
Net income (controlling interest) | 179.6 | 186 | ||||||
Earnings per share—basic | $ | 3.47 | $ | 3.6 | ||||
Earnings per share—diluted | $ | 3.39 | $ | 3.51 | ||||
Investments in new Affiliates contributed $88.0 million and $14.5 million to the Company's revenue and earnings, respectively, during 2012 and contributed $227.9 million and $32.1 million, respectively, during 2013. |
Goodwill_and_Acquired_Client_R
Goodwill and Acquired Client Relationships | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Goodwill and Acquired Client Relationships | ' | |||||||||||||||||||
Goodwill and Acquired Client Relationships | ||||||||||||||||||||
The following table presents the change in Goodwill during 2012 and 2013: | ||||||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||||||
Balance, as of December 31, 2011 | $ | 1,071.40 | $ | 785 | $ | 260.9 | $ | 2,117.30 | ||||||||||||
Goodwill acquired | 0.3 | 151.3 | 74.3 | 225.9 | ||||||||||||||||
Foreign currency translation | 6.8 | 3.2 | 2 | 12 | ||||||||||||||||
Balance, as of December 31, 2012 | $ | 1,078.50 | $ | 939.5 | $ | 337.2 | $ | 2,355.20 | ||||||||||||
Goodwill acquired | — | — | — | — | ||||||||||||||||
Foreign currency translation | (2.2 | ) | (11.4 | ) | 0.1 | (13.5 | ) | |||||||||||||
Balance, as of December 31, 2013 | $ | 1,076.30 | $ | 928.1 | $ | 337.3 | $ | 2,341.70 | ||||||||||||
The following table reflects the components of intangible assets of the Company's Affiliates that are consolidated as of December 31, 2012 and 2013: | ||||||||||||||||||||
Acquired Client Relationships | ||||||||||||||||||||
Definite-lived | Indefinite-lived | Total | ||||||||||||||||||
Gross Book | Accumulated | Net Book | Net Book | Net Book | ||||||||||||||||
Value | Amortization | Value | Value | Value | ||||||||||||||||
Balance, as of December 31, 2011 | $ | 970.5 | $ | (317.0 | ) | $ | 653.5 | $ | 667.6 | $ | 1,321.10 | |||||||||
New Investments | 131.1 | — | 131.1 | 321.5 | 452.6 | |||||||||||||||
Amortization and impairments | — | (97.8 | ) | (97.8 | ) | (102.2 | ) | (200.0 | ) | |||||||||||
Foreign currency translation | 1.1 | — | 1.1 | 10.7 | 11.8 | |||||||||||||||
Transfers and other | 6.9 | 31.3 | 38.2 | (38.2 | ) | — | ||||||||||||||
Balance, as of December 31, 2012 | $ | 1,109.60 | $ | (383.5 | ) | $ | 726.1 | $ | 859.4 | $ | 1,585.50 | |||||||||
New Investments | — | — | — | — | — | |||||||||||||||
Amortization and impairments | — | (128.2 | ) | (128.2 | ) | — | (128.2 | ) | ||||||||||||
Foreign currency translation | (1.2 | ) | — | (1.2 | ) | 4.6 | 3.4 | |||||||||||||
Transfers and other | (68.9 | ) | 68.9 | — | — | — | ||||||||||||||
Balance, as of December 31, 2013 | $ | 1,039.50 | $ | (442.8 | ) | $ | 596.7 | $ | 864 | $ | 1,460.70 | |||||||||
During 2012, the Company completed impairment assessments on its goodwill and definite-lived acquired client relationships and no impairments were indicated. During 2012, the Company determined that the fair value of the indefinite-lived intangible asset at one of its Affiliates had declined below its carrying value and, accordingly, reduced its carrying value by $102.2 million. The fair value of this asset ($38.2 million) was calculated using a discounted cash flow analysis, a Level 3 fair value measurement. The significant assumptions used in the valuation were assets under management (declining approximately 10% annually) and a discount rate of 15%. | ||||||||||||||||||||
During 2013, the Company completed impairment assessments on its goodwill and definite-lived and indefinite-lived acquired client relationships and no impairments were indicated. | ||||||||||||||||||||
For the Company's Affiliates that are consolidated, definite-lived acquired client relationships are amortized over their expected useful lives. As of December 31, 2013, these relationships were being amortized over a weighted average life of approximately ten years. The Company estimates that its consolidated annual amortization expense will be approximately $100.0 million for the next five years, assuming no additional investments in new or existing Affiliates. |
Equity_Investments_in_Affiliat
Equity Investments in Affiliates | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Equity Investments in Affiliates | ' | |||||||||||
Equity Investments in Affiliates | ||||||||||||
For the Affiliates in which the Company holds a significant but non-controlling interest, the equity method of accounting is applied. The definite-lived acquired client relationships attributable to the Company's equity method investments are amortized over their expected useful lives. As of December 31, 2013, these relationships were being amortized over a weighted average life of approximately eleven years. The Company recognized amortization expense for these relationships of $36.9 million for twelve months ended December 31, 2012 as compared to $41.7 million and for the twelve months ended December 31, 2013. Assuming no additional investments in new or existing Affiliates, the Company estimates the annual amortization expense attributable to its current equity-method Affiliates for the next five years as follows: | ||||||||||||
Year Ending December 31, | Estimated | |||||||||||
Amortization | ||||||||||||
Expense | ||||||||||||
2014 | $ | 20.7 | ||||||||||
2015 | 12.4 | |||||||||||
2016 | 9.8 | |||||||||||
2017 | 9.8 | |||||||||||
2018 | 9.8 | |||||||||||
The following table presents summarized financial information for Affiliates accounted for under the equity method. | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Revenue(1) | $ | 581 | $ | 1,005.40 | $ | 1,589.60 | ||||||
Net income | 387.9 | 783.3 | 1,321.90 | |||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
Current assets(2) | $ | 11,957.80 | $ | 19,084.40 | ||||||||
Noncurrent assets | 34.7 | 55.3 | ||||||||||
Current liabilities | 1,361.50 | 1,674.50 | ||||||||||
Noncurrent liabilities and Non-controlling interest(2) | 9,857.60 | 16,089.00 | ||||||||||
_______________________________________________________________________________ | ||||||||||||
-1 | Revenue includes advisory fees for asset management services, investment income and dividends from consolidated investment partnerships. | |||||||||||
-2 | The Company is not entitled to assets held by investors that are unrelated to the Company including consolidated investment partnerships. | |||||||||||
The Company's share of undistributed earnings from equity method investments totaled $197.6 million as of December 31, 2013. |
Fixed_Assets_and_Lease_Commitm
Fixed Assets and Lease Commitments | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Fixed Assets and Lease Commitments | ' | |||||||
Fixed Assets and Lease Commitments | ' | |||||||
Fixed Assets and Lease Commitments | ||||||||
Fixed assets consisted of the following: | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Building and leasehold improvements | $ | 74.7 | $ | 78.5 | ||||
Equipment | 38.9 | 36.5 | ||||||
Furniture and fixtures | 16.3 | 15.4 | ||||||
Land and improvements | 18.1 | 18.9 | ||||||
Software | 21.4 | 30.6 | ||||||
Fixed assets, at cost | 169.4 | 179.9 | ||||||
Accumulated depreciation and amortization | (87.9 | ) | (87.6 | ) | ||||
Fixed assets, net | $ | 81.5 | $ | 92.3 | ||||
The Company and its Affiliates lease office space and equipment for their operations. At December 31, 2013, the Company's aggregate future minimum payments for operating leases having initial or non-cancelable lease terms greater than one year are payable as follows: | ||||||||
Required Minimum | ||||||||
Payments | ||||||||
2014 | $ | 30.1 | ||||||
2015 | 29.2 | |||||||
2016 | 23.5 | |||||||
2017 | 21.4 | |||||||
2018 | 19.8 | |||||||
Thereafter | 69.5 | |||||||
Consolidated rent expense for 2011, 2012 and 2013 was $29.9 million, $30.5 million and $30.3 million, respectively. |
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable and Accrued Liabilities | ' | |||||||
Accounts Payable and Accrued Liabilities | ||||||||
Accounts payable and accrued liabilities consisted of the following: | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Accrued compensation | $ | 138.8 | $ | 187.9 | ||||
Unsettled fund share payables | 39.8 | $ | 84.6 | |||||
Accrued income taxes | 13.7 | 73 | ||||||
Accrued professional fees | 28.7 | 33.4 | ||||||
Accrued interest | 19.3 | 11.8 | ||||||
Accrued distributions | 13.2 | 23.6 | ||||||
Accounts payable | 59.5 | 23.5 | ||||||
Other | 50.3 | 76.9 | ||||||
$ | 363.3 | $ | 514.7 | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
The Company's Affiliates pay quarterly distributions to Affiliate management owners. The accrued distributions included in Payables and accrued liabilities were $13.2 million and $23.6 million as of December 31, 2012 and 2013, respectively. | |
The Company periodically records amounts receivable and payable to Affiliate partners in connection with the transfer of Affiliate equity interests. The Company also has liabilities to related parties for deferred purchase price and contingent payment arrangements in connection with certain business combinations. The total receivable was $36.9 million and $21.8 million at December 31, 2012 and 2013, respectively, and is included in Other assets. The total payable was $133.6 million and $133.4 million as of December 31, 2012 and 2013, respectively, and is included in Other liabilities. | |
In certain cases, Affiliate management owners and Company officers may serve as trustees or directors of certain mutual funds from which the Affiliate earns advisory fee revenue. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||
Stockholders' Equity | ' | |||||||
Stockholders' Equity | ||||||||
Preferred Stock | ||||||||
The Company is authorized to issue up to 5.0 million shares of Preferred Stock. Any such Preferred Stock issued by the Company may rank prior to common stock as to dividend rights, liquidation preference or both, may have full or limited voting rights and may be convertible into shares of common stock. | ||||||||
Common Stock | ||||||||
The Company's Board of Directors has authorized the issuance of up to 150.0 million shares of Voting Common Stock and 3.0 million shares of Class B Non-Voting Common Stock. As more fully described in Note 8, the Company is party to a forward equity sale agreement to issue new shares of the Company's common stock. | ||||||||
The Company's Board of Directors has also authorized share repurchase programs in recent periods. The maximum number of shares that may yet be repurchased under outstanding programs is 2.2 million. The timing and amount of issuances and repurchases are determined at the discretion of AMG's management. | ||||||||
A summary of the Company's recent share repurchase activity is as follows: | ||||||||
Period | Shares | Average | ||||||
Repurchased | Price | |||||||
2011 | 0.7 | $ | 83.63 | |||||
2012 | 0.6 | $ | 107.44 | |||||
2013 | 0.1 | $ | 184.89 | |||||
Financial Instruments | ||||||||
The Company's junior convertible trust preferred securities contain an embedded right for holders to receive shares of the Company's common stock under certain conditions. These arrangements, as well as the forward equity sale agreement, meet the definition of equity and are not required to be accounted for separately as derivative instruments. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Share-Based Compensation | ' | ||||||||
Share-Based Compensation | |||||||||
Share-Based Incentive Plans | |||||||||
The Company has established various plans under which it is authorized to grant restricted stock, restricted stock units, stock options and stock appreciation rights. Compensation payable under these plans is intended to qualify as performance-based compensation within the meaning of Section 162(m) of the Internal Revenue Code. The Company may also grant cash awards that can be notionally invested in one or more specified measurement funds, including the Company’s common stock. | |||||||||
Stock Options | |||||||||
The Company granted stock options with fair values of $16.8 million, $2.5 million, and $1.0 million in 2011, 2012 and 2013, respectively. Stock options generally vest over a period of three to five years and expire seven to ten years after the grant date. All options have been granted with exercise prices equal to the fair market value of the Company's common stock on the date of grant. | |||||||||
The following table summarizes the transactions of the Company's stock options: | |||||||||
Stock Options | Weighted | Weighted | |||||||
Average | Average | ||||||||
Exercise | Remaining | ||||||||
Price | Contractual | ||||||||
Life (years) | |||||||||
Unexercised options outstanding—January 1, 2013 | 3.8 | $ | 74.04 | ||||||
Options granted | 0 | 191.75 | |||||||
Options exercised | (0.8 | ) | 62.59 | ||||||
Options forfeited | (0.0 | ) | 81.49 | ||||||
Unexercised options outstanding—December 31, 2013 | 3 | 77.71 | 3.4 | ||||||
Exercisable at December 31, 2013 | 2.4 | 73.56 | 3.2 | ||||||
The fair value of options granted is estimated using the Black-Scholes option pricing model. The weighted average fair value of options granted during the years ended December 31, 2011, 2012 and 2013 was $30.27, $40.43 and $61.82 per option, respectively, based on the weighted-average grant date assumptions stated below. | |||||||||
For the Years Ended December 31, | |||||||||
2011 | 2012 | 2013 | |||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||
Expected volatility(1) | 33.1 | % | 36.8 | % | 34.4 | % | |||
Risk-free interest rate(2) | 1.3 | % | 0.7 | % | 1.5 | % | |||
Expected life of options (in years)(3) | 4.8 | 5 | 5 | ||||||
Forfeiture rate(3) | 2.4 | % | 1.4 | % | 0 | % | |||
_______________________________________________________________________________ | |||||||||
-1 | Based on historical and implied volatility. | ||||||||
-2 | Based on the U.S. Treasury yield curve in effect at the date of grant. | ||||||||
-3 | Based on the Company's historical data and expected exercise behavior. | ||||||||
The Company generally uses treasury stock to settle stock option exercises. The total intrinsic value of options exercised during the years ended December 31, 2011, 2012 and 2013 was $35.4 million, $86.8 million and $77.4 million, respectively. As of December 31, 2013, the intrinsic value of exercisable options outstanding was $341.9 million and 3.4 million options are available for future grant under the Company's option plans. | |||||||||
Restricted Stock | |||||||||
The Company granted awards with fair values of $3.3 million, $18.1 million, and $53.5 million in 2011, 2012 and 2013, respectively. Awards contain service-based vesting conditions requiring service over a period of three to eight years. In certain circumstances, the Company may elect to settle the awards in shares of the Company's common stock or cash. | |||||||||
The following table summarizes the transactions of the Company's restricted stock: | |||||||||
Restricted | Weighted | ||||||||
Stock | Average | ||||||||
Grant Date | |||||||||
Value | |||||||||
Unvested units—January 1, 2013 | 0.4 | $ | 84.53 | ||||||
Units granted | 0.3 | 208.76 | |||||||
Units vested | (0.2 | ) | 50.46 | ||||||
Units forfeited | (0.0 | ) | 94.83 | ||||||
Unvested units—December 31, 2013 | 0.5 | 176.38 | |||||||
In 2013, 0.2 million of the units granted contained service-based vesting conditions and were valued based on the closing price of the Company's common stock on the date of grant. The remaining 0.1 million units vest when the required service period has been completed and if certain market conditions are satisfied. The market conditions require separate 15%, 25% and 35% increases in the price of the Company’s common stock to be achieved during the six-year term of the awards; however, shares underlying the awards are eligible to be delivered, assuming the service conditions have been satisfied, only on the fourth, fifth and sixth anniversaries of the grant date if the 15% market condition has been maintained. The awards were valued using a Monte Carlo simulation with grant date assumptions for expected volatility (31.6%), risk-free interest rate (2.0%) and dividend yield (0.0%). The weighted average fair value of the awards was $144.70. The fair value of the awards will be recognized as compensation over a service period of four years, which is the longer of the explicit service period or the period the market condition is expected to be met. | |||||||||
As of December 31, 2013, the Company has 1.8 million shares available for grant under its plans. | |||||||||
Share-Based Incentive Compensation | |||||||||
A summary of recent share-based compensation expense is as follows: | |||||||||
Period | Share-Based | Tax Benefit | |||||||
Compensation | |||||||||
Expense | |||||||||
2011 | $ | 21.2 | $ | 8.1 | |||||
2012 | 25.4 | 9.6 | |||||||
2013 | 27.5 | 10.6 | |||||||
The cash received and the actual tax benefit recognized for options exercised were $73.4 million and $25.5 million and $48.2 million and $20.7 million during the years ended December 31, 2012 and 2013, respectively. The excess tax benefit classified as a financing cash flow was $22.0 million and $17.3 million during the years ended December 31, 2012 and 2013, respectively, and is included in Other financing items. | |||||||||
There was $53.5 million and $79.3 million of unrecognized compensation expense related to share-based compensation arrangements as of December 31, 2012 and 2013, respectively. This expense will be recognized over a weighted average period of approximately three years (assuming no forfeitures). |
Affiliate_Equity
Affiliate Equity | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Affiliate Equity | ' | |||||||||||
Affiliate Equity | ' | |||||||||||
Affiliate Equity | ||||||||||||
Affiliate equity interests provide holders with a ratable portion of ownership in Affiliates. The Company periodically issues Affiliate equity interests to and repurchases Affiliate equity interests from its Affiliate partners and officers of AMG, with vesting, rights to cash flows and repurchase rights established at the time of grant or sale. Affiliate partners also transfer Affiliate equity interests amongst themselves. | ||||||||||||
Sales and repurchases of Affiliate equity generally occur at fair value; however, the Company also grants Affiliate equity to its Affiliate partners, employees and officers as a form of compensation. If the equity is issued for consideration below the fair value of the equity or repurchased for consideration above the fair value of the equity, then such difference is recorded as compensation expense over the requisite service period. | ||||||||||||
A summary of Affiliate equity compensation expense is as follows: | ||||||||||||
Period | Affiliate Equity Compensation Expense | Tax Benefit | ||||||||||
2011 | $ | 38.1 | $ | 12 | ||||||||
2012 | 60.4 | 17 | ||||||||||
2013 | 72.3 | 21.7 | ||||||||||
There was $6.8 million, $16.3 million and $15.9 million of Affiliate equity compensation attributable to the non-controlling interest in 2011, 2012 and 2013, respectively. There was $85.3 million and $68.2 million of unrecognized compensation expense related to Affiliate equity compensation arrangements as of December 31, 2012 and 2013, respectively. Of this unrecognized compensation expense, $33.0 million and $32.1 million is attributable to the non-controlling interest, respectively. These expenses will be recognized over a weighted average period of approximately four years (assuming no forfeitures). | ||||||||||||
The Company's Affiliate equity arrangements provide the Company a conditional right to call and holders the conditional right to put their retained equity interests at certain intervals. The purchase price of these conditional purchases are generally calculated based upon a multiple of cash flow distributions, which is intended to represent fair value. Holders are also permitted to sell their equity interests to other individuals or entities in certain cases, subject to the Company's approval or other restrictions. The Company, at its option, may pay for Affiliate equity purchases in cash, shares of its common stock or other forms of consideration and can consent to the transfer of these interests to other individuals or entities. | ||||||||||||
The current redemption value of these interests has been presented as Redeemable non-controlling interests on the Company's Consolidated Balance Sheets. Changes in the current redemption value are recorded to Additional paid-in capital. The following table presents the changes in Redeemable non-controlling interests during the period: | ||||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
Balance, as of January 1 | $ | 451.8 | $ | 477.5 | ||||||||
Transactions in Redeemable non-controlling interests | (17.2 | ) | (52.5 | ) | ||||||||
Changes in redemption value | 42.9 | 216.9 | ||||||||||
Balance, as of December 31 | $ | 477.5 | $ | 641.9 | ||||||||
During the years ended 2011, 2012 and 2013, the Company acquired interests from and transferred interests to holders. The following schedule discloses the effect of changes in the Company's ownership interests in its Affiliates on the controlling interest's equity: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Net income (controlling interest) | $ | 164.9 | $ | 174 | $ | 360.5 | ||||||
Increase (decrease) in controlling interest paid-in capital from the sale of Affiliate equity | (28.1 | ) | (44.0 | ) | (74.0 | ) | ||||||
Change from Net income (controlling interest) and net transfers with non-controlling interests | $ | 136.8 | $ | 130 | $ | 286.5 | ||||||
Benefit_Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Benefit Plans | ' |
Benefit Plans | |
The Company has three defined contribution plans consisting of a qualified employee profit-sharing plan covering substantially all of its full-time employees and several of its Affiliates, and non-qualified plans for certain senior employees. AMG's other Affiliates generally have separate defined contribution retirement plans. Under each of the qualified plans, AMG and each participating Affiliate, as the case may be, are able to make discretionary contributions for the benefit of qualified plan participants up to Internal Revenue Service limits. | |
The Company has established a Deferred Compensation Plan that provides officers and directors of the Company the opportunity to voluntarily defer base salary, bonus payments and director fees, as applicable, on a pre-tax basis, and invest such deferred amounts in one or more specified measurement funds. While the Company has no obligation to do so, the Deferred Compensation Plan also provides the Company the opportunity to make discretionary contributions; in the event any such contributions are made, contributed amounts will be subject to vesting and forfeiture provisions. | |
Consolidated expenses related to the Company's benefit plans in 2011, 2012 and 2013 were $12.0 million, $12.7 million and $14.1 million, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The consolidated income tax provision includes taxes attributable to the controlling interest and, to a lesser extent, taxes attributable to non-controlling interests as follows: | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Controlling Interests: | ||||||||||||
Current tax | $ | 45 | $ | 61 | $ | 153.1 | ||||||
Intangible related deferred taxes | 43.2 | 22.7 | 38.1 | |||||||||
Other deferred taxes | (4.0 | ) | (12.1 | ) | (6.2 | ) | ||||||
Total controlling interests | 84.2 | 71.6 | 185 | |||||||||
Non-controlling Interests: | ||||||||||||
Current tax | $ | 12.9 | $ | 11.7 | $ | 13.3 | ||||||
Deferred taxes | (4.0 | ) | 0.5 | (4.2 | ) | |||||||
Total non-controlling interests | 8.9 | 12.2 | 9.1 | |||||||||
Provision for income taxes | $ | 93.1 | $ | 83.8 | $ | 194.1 | ||||||
Income before income taxes (controlling interest) | $ | 249.1 | $ | 245.6 | $ | 545.5 | ||||||
Effective tax rate attributable to controlling interests(1) | 33.8 | % | 29.2 | % | 33.9 | % | ||||||
_______________________________________________________________________________ | ||||||||||||
-1 | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). | |||||||||||
A summary of the consolidated provision for income taxes is as follows: | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Current: | ||||||||||||
Federal | $ | 6.2 | $ | 14.5 | $ | 104.1 | ||||||
State | 11.2 | 14.2 | 21.1 | |||||||||
Foreign | 40.5 | 44 | 41.2 | |||||||||
Total current | 57.9 | 72.7 | 166.4 | |||||||||
Deferred: | ||||||||||||
Federal | 46.8 | 19.8 | 38.1 | |||||||||
State | 5 | 4.6 | 8.9 | |||||||||
Foreign | (16.6 | ) | (13.3 | ) | (19.3 | ) | ||||||
Total deferred | 35.2 | 11.1 | 27.7 | |||||||||
Provision for income taxes | $ | 93.1 | $ | 83.8 | $ | 194.1 | ||||||
The components of income before income taxes consisted of the following: | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Domestic | $ | 243.8 | $ | 238.6 | $ | 604 | ||||||
International | 208.9 | 256.6 | 259.7 | |||||||||
$ | 452.7 | $ | 495.2 | $ | 863.7 | |||||||
The Company's effective income tax rate differs from the amount computed by using income before income taxes and applying the U.S. federal income tax rate because of the effect of the following items: | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Tax at U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit | 1.4 | 3.5 | 2.8 | |||||||||
Non-deductible expenses | 0.5 | 0.7 | 0.3 | |||||||||
Valuation allowance | (0.1 | ) | (4.7 | ) | (0.3 | ) | ||||||
Effect of foreign operations | — | (2.9 | ) | (2.3 | ) | |||||||
Foreign basis differences | (0.9 | ) | (0.4 | ) | (0.2 | ) | ||||||
Effect of changes in tax law, rates | (2.1 | ) | (2.0 | ) | (1.4 | ) | ||||||
Effect of income from non-controlling interests | (13.2 | ) | (12.2 | ) | (11.4 | ) | ||||||
20.6 | % | 17 | % | 22.5 | % | |||||||
In 2012 and 2013, the Company reduced its valuation allowance $11.5 million and $1.6 million, respectively, for foreign tax credit carryforwards and benefits of uncertain tax positions from improved projections of taxes in the U.S. During 2011, 2012 and 2013, the Company also realized a deferred tax benefit of $7.6 million, $7.3 million, and $11.2 million, respectively, from the re-valuation of its deferred taxes from a change in enacted tax rates in the United Kingdom. Excluding the non-controlling interest tax benefits, the changes decreased the effective tax rate of the controlling interest 2.1%, 2.0% and 1.4% in 2011, 2012 and 2013, respectively. | ||||||||||||
The Company does not provide for deferred taxes on the excess of the financial reporting basis over the tax basis in its investments in foreign subsidiaries that are permanent in duration. This amount becomes taxable upon a repatriation of assets from a sale or liquidation of the subsidiary. As of December 31, 2013, the amount of such temporary difference was approximately $47.7 million. The deferred taxes not recognized at December 31, 2013 for this temporary difference are approximately $17.9 million. | ||||||||||||
The components of deferred tax assets and liabilities are as follows: | ||||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
Deferred Tax Assets | ||||||||||||
State net operating loss carryforwards | $ | 23.9 | $ | 29.3 | ||||||||
Deferred compensation | 23.9 | 29.1 | ||||||||||
Foreign tax credit carryforwards | 20.1 | — | ||||||||||
Tax benefit of uncertain tax positions | 17.6 | 16.2 | ||||||||||
Accrued expenses | 6 | 17.6 | ||||||||||
Foreign loss carryforwards | 1.5 | 9.1 | ||||||||||
Total deferred tax assets | 93 | 101.3 | ||||||||||
Valuation allowance | (21.3 | ) | (36.6 | ) | ||||||||
Deferred tax assets, net of valuation allowance | $ | 71.7 | $ | 64.7 | ||||||||
Deferred Tax Liabilities | ||||||||||||
Intangible asset amortization | $ | (238.2 | ) | $ | (241.3 | ) | ||||||
Convertible securities interest | (189.2 | ) | (144.7 | ) | ||||||||
Non-deductible intangible amortization | (120.1 | ) | (101.5 | ) | ||||||||
Deferred revenue | (18.5 | ) | (32.1 | ) | ||||||||
Other | (2.8 | ) | (2.0 | ) | ||||||||
Total deferred tax liabilities | (568.8 | ) | (521.6 | ) | ||||||||
Net deferred tax liability | $ | (497.1 | ) | $ | (456.9 | ) | ||||||
Deferred tax liabilities are primarily the result of tax deductions for the Company's intangible assets and convertible securities. The Company amortizes most of its intangible assets for tax purposes only, reducing its tax basis below its carrying value for financial statement purposes and generating deferred taxes each reporting period. The Company's convertible securities also generate deferred taxes because the Company's tax deductions are higher than the interest expense recorded for financial statement purposes. | ||||||||||||
At December 31, 2013, the Company has state net operating loss carryforwards which expire over a 15-year period beginning in 2014 and foreign loss carryforwards which expire over a five year period. At December 31, 2012 and December 31, 2013, the valuation allowance was principally related to the Company's projections of taxable income prior to the expiration of these carryforwards. | ||||||||||||
The Company carried a liability for uncertain tax positions of $21.2 million, $22.6 million and $20.4 million as of December 31, 2011, 2012 and 2013, respectively. These amounts included $1.6 million, $2.2 million and $1.7 million of interest and related charges, respectively. At December 31, 2011, 2012 and 2013, these liabilities also included $12.6 million, $19.4 million and $17.2 million, respectively, for tax positions that, if recognized, would affect the Company's effective tax rate. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Balance, as of January 1 | $ | 24.6 | $ | 21.2 | $ | 22.6 | ||||||
Additions based on current year tax positions | 4.8 | 5.9 | 4.1 | |||||||||
Additions based on prior years' tax positions | — | 5.2 | — | |||||||||
Reductions for prior years' tax provisions | — | (5.4 | ) | (0.1 | ) | |||||||
Settlements | (1.2 | ) | — | — | ||||||||
Reductions related to lapses of statutes of limitations | (6.7 | ) | (4.6 | ) | (5.4 | ) | ||||||
Additions (reductions) related to foreign exchange rates | (0.3 | ) | 0.3 | (0.8 | ) | |||||||
Balance, as of December 31 | $ | 21.2 | $ | 22.6 | $ | 20.4 | ||||||
During 2012, this liability decreased $5.4 million as a result of the recognition of tax benefits from the transfer of interests in an Affiliate. This decrease was offset by a $5.2 million provision for added foreign exposure for prior years. The Company does not anticipate that this liability will change significantly over the next twelve months. | ||||||||||||
The Company periodically has tax examinations in the U.S. and foreign jurisdictions. Examination outcomes, and any related settlements, are subject to significant uncertainty. The completion of examinations may result in the payment of additional taxes and/or the recognition of tax benefits. The Company is generally no longer subject to income tax examinations by any tax authorities for years before 2008. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
Earnings Per Share | ||||||||||||
The calculation of basic earnings per share is based on the weighted average number of shares of the Company's common stock outstanding during the period. Diluted earnings per share is similar to basic earnings per share, but adjusts for the dilutive effect of the potential issuance of incremental shares of the Company's common stock. The following is a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share available to common stockholders. | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Numerator | ||||||||||||
Net income (controlling interest) | $ | 164.9 | $ | 174 | $ | 360.5 | ||||||
Interest expense on convertible securities, net of taxes | — | — | 10.5 | |||||||||
Net income (controlling interest), as adjusted | $ | 164.9 | $ | 174 | $ | 371 | ||||||
Denominator | ||||||||||||
Average shares outstanding—basic | 51.8 | 51.7 | 53.1 | |||||||||
Effect of dilutive instruments: | ||||||||||||
Stock options and other awards | 1.2 | 1.3 | 1.3 | |||||||||
Forward sale | — | — | 0.3 | |||||||||
Junior convertible securities | — | — | 2 | |||||||||
Average shares outstanding—diluted | 53 | 53 | 56.7 | |||||||||
As more fully discussed in Note 7, the Company had convertible securities outstanding during the periods presented and is required to apply the if-converted method to these securities in its calculation of diluted earnings per share. Under the if-converted method, shares that are issuable upon conversion are deemed outstanding, regardless of whether the securities are contractually convertible into the Company's common stock at that time. For this calculation, the interest expense (net of tax) attributable to these dilutive securities is added back to Net income (controlling interest), reflecting the assumption that the securities have been converted. Issuable shares for these securities and related interest expense are excluded from the calculation if an assumed conversion would be anti-dilutive to diluted earnings per share. | ||||||||||||
During the years ended December 31, 2011, 2012 and 2013, the Company repurchased approximately 0.7 million, 0.6 million and 0.1 million shares of common stock, respectively, under the share repurchase programs approved by the Company's Board of Directors. | ||||||||||||
The diluted earnings per share calculations in the table above exclude the anti-dilutive effect of the following shares: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Stock options and other awards | 1.2 | 0.7 | 0.1 | |||||||||
Senior convertible securities | 3.6 | 3.6 | 2.1 | |||||||||
Junior convertible trust preferred securities | 4.2 | 4.2 | 2.2 | |||||||||
Forward equity sales | — | 0.2 | — | |||||||||
As discussed further in Note 21, the Company may settle portions of its Affiliate equity purchases in shares of its common stock. Because it is the Company's intent to settle these potential repurchases in cash, the calculation of diluted earnings per share excludes any potential dilutive effect from possible share settlements. |
Comprehensive_Income
Comprehensive Income | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Comprehensive Income | ' | |||||||||||||||
Comprehensive Income | ||||||||||||||||
The following table shows the tax effects allocated to each component of Other comprehensive income: | ||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||
Foreign currency translation adjustment | $ | (10.2 | ) | $ | — | $ | (10.2 | ) | ||||||||
Change in net realized and unrealized loss on derivative securities | (9.7 | ) | 3.8 | (5.9 | ) | |||||||||||
Change in net unrealized loss on investment securities | (56.6 | ) | 22.2 | (34.4 | ) | |||||||||||
Other comprehensive income | $ | (76.5 | ) | $ | 26 | $ | (50.5 | ) | ||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||
Foreign currency translation adjustment | $ | 18.5 | $ | — | $ | 18.5 | ||||||||||
Change in net realized and unrealized loss on derivative securities | (1.1 | ) | 0.4 | (0.7 | ) | |||||||||||
Change in net unrealized gain on investment securities | 21.6 | (8.1 | ) | 13.5 | ||||||||||||
Other comprehensive loss | $ | 39 | $ | (7.7 | ) | $ | 31.3 | |||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||
Foreign currency translation adjustment | $ | (19.6 | ) | $ | — | $ | (19.6 | ) | ||||||||
Change in net realized and unrealized loss on derivative securities | 1.5 | (0.5 | ) | 1 | ||||||||||||
Change in net unrealized gain on investment securities | 19.5 | (8.0 | ) | 11.5 | ||||||||||||
Other comprehensive income | $ | 1.4 | $ | (8.5 | ) | $ | (7.1 | ) | ||||||||
The components of Accumulated other comprehensive income, net of taxes, are as follows: | ||||||||||||||||
Foreign Currency Translation Adjustment | Realized and Unrealized Losses on Derivative Securities | Unrealized Gain (Loss) on Investment Securities | Total | |||||||||||||
Balance, as of December 31, 2012 | $ | 76.2 | $ | (2.9 | ) | $ | 8 | $ | 81.3 | |||||||
Other comprehensive income before reclassifications | (19.6 | ) | 1 | 13.3 | (5.3 | ) | ||||||||||
Amounts reclassified from other comprehensive income | — | 0 | (1.8 | ) | (1.8 | ) | ||||||||||
Net other comprehensive income | (19.6 | ) | 1 | 11.5 | (7.1 | ) | ||||||||||
Balance, as of December 31, 2013 | $ | 56.6 | $ | (1.9 | ) | $ | 19.5 | $ | 74.2 | |||||||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||
The following is a summary of the quarterly results of operations of the Company for the years ended December 31, 2012 and 2013. | ||||||||||||||||
2012 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Revenue | $ | 417.6 | $ | 429.6 | $ | 467.3 | $ | 491 | ||||||||
Operating income | 108.8 | 25 | 139.7 | 126.9 | ||||||||||||
Income before income taxes | 117.7 | 62.9 | 137.5 | 177.1 | ||||||||||||
Net income (controlling interest) | 37.5 | 6.6 | 54.9 | 75 | ||||||||||||
Earnings per share—diluted | $ | 0.71 | $ | 0.12 | $ | 1.04 | $ | 1.4 | ||||||||
2013 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Revenue | $ | 502.2 | $ | 541 | $ | 551.6 | $ | 594 | ||||||||
Operating income | 150.5 | 161.4 | 169.1 | 153.1 | ||||||||||||
Income before income taxes | 167.3 | 172.4 | 187.4 | 336.6 | ||||||||||||
Net income (controlling interest) | 62.4 | 64.7 | 75.2 | 158.2 | ||||||||||||
Earnings per share—diluted | $ | 1.15 | $ | 1.18 | $ | 1.37 | $ | 2.79 | ||||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
Management has assessed and determined that the Company operates in three business segments representing the Company's three principal distribution channels: Institutional, Mutual Fund and High Net Worth, each of which has different client relationships. | ||||||||||||||||
Revenue in the Institutional distribution channel is earned from relationships with public and private client entities, including pension plans, foundations, endowments and sovereign wealth funds. Revenue in the Mutual Fund distribution channel is earned from advisory and sub-advisory relationships with all domestically-registered investment products as well as non-institutional investment products that are registered abroad. Revenue in the High Net Worth distribution channel is earned from relationships with wealthy individuals, family trusts and managed account programs. | ||||||||||||||||
Revenue earned from client relationships managed by Affiliates accounted for under the equity method is not consolidated with the Company's reported Revenue but instead is included (net of operating expenses, including amortization) in Income from equity method investments, and reported in the distribution channel in which the Affiliate operates. Income tax attributable to the profits of the Company's equity method Affiliates is reported within the Company's consolidated income tax provision. | ||||||||||||||||
In consolidated Affiliates with revenue sharing arrangements, a certain percentage of revenue is allocated for use by management of an Affiliate in paying operating expenses of that Affiliate, including salaries and bonuses, and is called an "Operating Allocation." In reporting segment operating expenses, consolidated Affiliate expenses are allocated to a particular segment on a pro rata basis with respect to the revenue generated by that Affiliate in such segment. Generally, as revenue increases, additional compensation is typically paid to Affiliate management partners from the Operating Allocation. As a result, the contractual expense allocation pursuant to a revenue sharing arrangement may result in the characterization of any growth in profit margin beyond the Company's Owners' Allocation as an operating expense. All other operating expenses (excluding intangible amortization) and interest expense have been allocated to segments based on the proportion of cash flow distributions reported by Affiliates in each segment. | ||||||||||||||||
Statements of Income | ||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 841.4 | $ | 723.7 | $ | 139.7 | $ | 1,704.80 | ||||||||
Operating expenses: | ||||||||||||||||
Depreciation, intangible amortization and impairments | 76.9 | 28 | 7.8 | 112.7 | ||||||||||||
Other operating expenses | 524.9 | 492.4 | 88.7 | 1,106.00 | ||||||||||||
601.8 | 520.4 | 96.5 | 1,218.70 | |||||||||||||
Operating income | 239.6 | 203.3 | 43.2 | 486.1 | ||||||||||||
Income from equity method investments | 57.2 | 7.9 | 7.6 | 72.7 | ||||||||||||
Other non-operating (income) and expenses: | ||||||||||||||||
Investment and other (income) loss | (6.9 | ) | 0.6 | 11.3 | 5 | |||||||||||
Interest expense | 39.7 | 27.7 | 6.4 | 73.8 | ||||||||||||
Imputed interest and contingent payment arrangements | 15.1 | 9.9 | 2.3 | 27.3 | ||||||||||||
47.9 | 38.2 | 20 | 106.1 | |||||||||||||
Income before income taxes | 248.9 | 173 | 30.8 | 452.7 | ||||||||||||
Income taxes | 53.4 | 34.4 | 5.3 | 93.1 | ||||||||||||
Net income | 195.5 | 138.6 | 25.5 | 359.6 | ||||||||||||
Net income (non-controlling interests) | (105.3 | ) | (73.1 | ) | (16.3 | ) | (194.7 | ) | ||||||||
Net income (controlling interest) | $ | 90.2 | $ | 65.5 | $ | 9.2 | $ | 164.9 | ||||||||
Total assets | $ | 2,836.20 | $ | 1,920.60 | $ | 462.1 | $ | 5,218.90 | ||||||||
Goodwill | $ | 1,071.40 | $ | 785 | $ | 260.9 | $ | 2,117.30 | ||||||||
Equity method investments in Affiliates | $ | 490.6 | $ | 75.6 | $ | 49.6 | $ | 615.8 | ||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 861.3 | $ | 774.4 | $ | 169.8 | $ | 1,805.50 | ||||||||
Operating expenses: | ||||||||||||||||
Depreciation, intangible amortization and impairments | 75.4 | 128.9 | 9.8 | 214.1 | ||||||||||||
Other operating expenses | 554.2 | 526.5 | 110.3 | 1,191.00 | ||||||||||||
629.6 | 655.4 | 120.1 | 1,405.10 | |||||||||||||
Operating income | 231.7 | 119 | 49.7 | 400.4 | ||||||||||||
Income from equity method investments | 103.9 | 12.7 | 13.1 | 129.7 | ||||||||||||
Other non-operating (income) and expenses: | ||||||||||||||||
Investment and other (income) loss | (13.6 | ) | (6.6 | ) | (1.8 | ) | (22.0 | ) | ||||||||
Interest expense | 50.7 | 24 | 8.3 | 83 | ||||||||||||
Imputed interest and contingent payment arrangements | (8.1 | ) | (19.5 | ) | 1.5 | (26.1 | ) | |||||||||
29 | (2.1 | ) | 8 | 34.9 | ||||||||||||
Income before income taxes | 306.6 | 133.8 | 54.8 | 495.2 | ||||||||||||
Income taxes | 63.7 | 10.7 | 9.4 | 83.8 | ||||||||||||
Net income | 242.9 | 123.1 | 45.4 | 411.4 | ||||||||||||
Net income (non-controlling interests) | (116.9 | ) | (95.8 | ) | (24.7 | ) | (237.4 | ) | ||||||||
Net income (controlling interest) | $ | 126 | $ | 27.3 | $ | 20.7 | $ | 174 | ||||||||
Total assets | $ | 3,176.50 | $ | 2,354.80 | $ | 655.8 | $ | 6,187.10 | ||||||||
Goodwill | $ | 1,078.50 | $ | 939.5 | $ | 337.2 | $ | 2,355.20 | ||||||||
Equity method investments in Affiliates | $ | 879.6 | $ | 81.2 | $ | 70.5 | $ | 1,031.30 | ||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 948.7 | $ | 1,023.00 | $ | 217.1 | 2,188.80 | |||||||||
Operating expenses: | ||||||||||||||||
Depreciation, intangible amortization and impairments | 82.3 | 47.4 | 12.5 | 142.2 | ||||||||||||
Other operating expenses | 620.5 | 661.2 | 130.8 | 1,412.50 | ||||||||||||
702.8 | 708.6 | 143.3 | 1,554.70 | |||||||||||||
Operating income | 245.9 | 314.4 | 73.8 | 634.1 | ||||||||||||
Income from equity method investments | 263.9 | 16.6 | 27.3 | 307.8 | ||||||||||||
Other non-operating (income) and expenses: | ||||||||||||||||
Investment and other (income) loss | (23.9 | ) | (15.3 | ) | (1.6 | ) | (40.8 | ) | ||||||||
Interest expense | 51 | 27.7 | 8.6 | 87.3 | ||||||||||||
Imputed interest and contingent payment arrangements | 8.9 | 20.8 | 2 | 31.7 | ||||||||||||
36 | 33.2 | 9 | 78.2 | |||||||||||||
Income before income taxes | 473.8 | 297.8 | 92.1 | 863.7 | ||||||||||||
Income taxes | 117.5 | 56.3 | 20.3 | 194.1 | ||||||||||||
Net income | 356.3 | 241.5 | 71.8 | 669.6 | ||||||||||||
Net income (non-controlling interests) | (136.4 | ) | (138.1 | ) | (34.6 | ) | (309.1 | ) | ||||||||
Net income (controlling interest) | $ | 219.9 | $ | 103.4 | $ | 37.2 | $ | 360.5 | ||||||||
Total assets | $ | 3,196.50 | $ | 2,448.40 | $ | 673.9 | $ | 6,318.80 | ||||||||
Goodwill | $ | 1,076.30 | $ | 928.1 | $ | 337.3 | $ | 2,341.70 | ||||||||
Equity method investments in Affiliates | $ | 942.6 | $ | 77.7 | $ | 103 | $ | 1,123.30 | ||||||||
In 2011, 2012 and 2013, revenue attributable to clients domiciled outside the U.S. was approximately 39%, 41% and 38% of total revenue, respectively. |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||
Schedule II Valuation and Qualifying Accounts | ' | |||||||||||||||||||
Schedule II | ||||||||||||||||||||
Valuation and Qualifying Accounts | ||||||||||||||||||||
(in millions) | Balance | Additions | Additions | Deductions | Balance | |||||||||||||||
Beginning of | Charged to Costs | Charged to | End of Period | |||||||||||||||||
Period | and Expenses | Other Accounts | ||||||||||||||||||
Income Tax Valuation Allowance | ||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||
2013 | $ | 21.3 | $ | 16.9 | $ | — | $ | 1.6 | $ | 36.6 | ||||||||||
2012 | 35.6 | — | — | 14.3 | 21.3 | |||||||||||||||
2011 | 38.4 | — | — | 2.8 | 35.6 | |||||||||||||||
Other Allowances(1) | ||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||
2013 | $ | 8.4 | $ | 2.8 | $ | — | $ | 2.4 | $ | 8.8 | ||||||||||
2012 | 9.6 | 0.1 | — | 1.3 | 8.4 | |||||||||||||||
2011 | 8.5 | 1.2 | — | 0.1 | 9.6 | |||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||
-1 | Other Allowances represents reserves on notes received in connection with transfers of our interests in certain Affiliates as well as other receivable amounts, which we consider uncollectible. |
Business_and_Summary_of_Signif1
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
The financial statements are prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"). All dollar amounts, except per share data in the text and tables herein, are stated in millions unless otherwise indicated. Certain reclassifications have been made to prior years' financial statements to conform to the current year's presentation. | ||
Effective December 31, 2013, the Company changed the presentation of its Consolidated Balance Sheets from a classified basis to a non-classified basis. Under the non-classified basis, balances are not separately presented as current or non-current. Management believes that this presentation is more meaningful because it aggregates assets and liabilities of the same nature, which is consistent with the manner in which management monitors its financial position. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. | ||
Principles of Consolidation | ' | |
Principles of Consolidation | ||
Investments in Affiliates | ||
The Company evaluates the risk, rewards, and significant terms of each of its Affiliate and other investments to determine the appropriate method of accounting. Majority-owned or otherwise controlled investments are consolidated. AMG typically has control over its Affiliate investments, directly or indirectly, as the sole general partner (in the case of Affiliates which are limited partnerships), the managing partner (in the case of Affiliates which are limited liability partnerships), the sole manager member (in the case of Affiliates which are limited liability companies) or principal shareholder (in the case of Affiliates which are corporations). As a result, the Company generally consolidates its Affiliate investments and all material intercompany balances and transactions are eliminated. | ||
For its consolidated Affiliates, the portion of the Owners’ Allocation allocated to partners or members other than AMG is included in Net income (non-controlling interests) in the Consolidated Statements of Income. Non-controlling interests on the Consolidated Balance Sheets includes capital and undistributed Operating and Owners’ Allocation owned by partners or members of the consolidated Affiliates. The effect of any changes in the Company's equity interests in its consolidated Affiliates resulting from the issuance or repurchase of an Affiliate's equity by the Company or one of its Affiliates is included as a component of stockholders' equity, net of the related income tax effect in the period of the change. The current redemption value of non-controlling interests has been presented as Redeemable non-controlling interests on the Consolidated Balance Sheets. | ||
AMG applies the equity method of accounting to investments where AMG does not hold a controlling equity interest but has the ability to exercise significant influence over operating and financial matters. AMG also applies the equity method if unaffiliated minority shareholders or partners have certain rights to remove AMG or have rights to participate in substantive operating decisions (e.g. approval of annual operating budgets, major financings, selection of senior management, etc.). | ||
Other investments in which AMG owns less than a 20% interest and does not exercise significant influence are accounted for under the cost method. Under the cost method, income is recognized as dividends when, and if, declared. | ||
Affiliate Sponsored Investment Vehicles | ||
The Company's Affiliates sponsor various investment vehicles where they also act as the investment advisor. Certain of these investment vehicles are variable interest entities (“VIEs”) while others are voting rights entities ("VREs"). | ||
VIEs are consolidated if the Affiliate is determined to be the primary beneficiary (i.e. if it absorbs a majority of the expected losses, or receives a majority of the expected residual returns). In determining whether the Affiliate is the primary beneficiary, both qualitative and quantitative factors (such as the voting rights of the equity holders, economic participation of all parties, including how fees are earned and paid, related party ownership, guarantees and implied relationships) are considered. | ||
VREs are consolidated if the Affiliate is the managing member or general partner of the investment vehicle unless unaffiliated investors have certain rights to remove the Affiliate from such role or have substantive participating rights. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
The Company considers all highly liquid investments, including money market mutual funds, with original maturities of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value due to the short-term maturity of these investments. | ||
Receivables | ' | |
Receivables | ||
The Company’s Affiliates earn investment advisory and performance fees which are billed monthly, quarterly or annually based on the terms of the related contracts. Billed but uncollected advisory and performance fees are presented within Receivables on the Consolidated Balance Sheets and are generally short-term in nature. | ||
Certain of the Company’s Affiliates in the United Kingdom act as an intermediary between clients and their sponsored funds. Normal settlement periods on transactions initiated by these clients result in unsettled fund share receivables and payables that are presented on a gross basis within Receivables and Payables and accrued liabilities on the Consolidated Balance Sheets. The gross presentation of these receivables and offsetting payables reflect the legal relationship between the underlying investor and the Company’s Affiliates. | ||
Investments in Marketable Securities | ' | |
Investments in Marketable Securities | ||
Investments in marketable securities are classified as either trading or available-for-sale and carried at fair value. Unrealized gains or losses on investments classified as available-for-sale are reported, net of tax, as a separate component of Accumulated other comprehensive income in Equity until realized. Unrealized gains or losses related to trading securities are reported within Other operating expenses in the period they occur. If a decline in the fair value of an available-for-sale investment is determined to be other than temporary, the carrying amount of the asset is reduced to its fair value, and the difference is charged to income in the period incurred. | ||
Fixed Assets | ' | |
Fixed Assets | ||
Fixed assets are recorded at cost and depreciated using the straight-line method over their estimated useful lives. The estimated useful lives of office equipment and furniture and fixtures range from three to ten years. Computer software developed or obtained for internal use is amortized using the straight-line method over the estimated useful life of the software, generally three years or less. Leasehold improvements are amortized over the shorter of their estimated useful lives or the term of the lease, and the building is amortized over 39 years. The costs of improvements that extend the life of a fixed asset are capitalized, while the cost of repairs and maintenance are expensed as incurred. Land is not depreciated. | ||
Leases | ' | |
Leases | ||
The Company and its Affiliates currently lease office space and equipment under various leasing arrangements. As these leases expire, it can be expected that in the normal course of business they will be renewed or replaced. Leases are classified as either capital leases or operating leases, as appropriate. Most lease agreements classified as operating leases contain renewal options, rent escalation clauses or other inducements provided by the landlord. Rent expense is accrued to recognize lease escalation provisions and inducements provided by the landlord, if any, on a straight-line basis over the lease term. | ||
Equity Investments in Affiliates | ' | |
Equity Investments in Affiliates | ||
For equity method investments, the Company's portion of income or loss before taxes is included in Income from equity method investments, net of any amortization of intangible assets related to the Company's investment. The Company's share of income taxes incurred directly by Affiliates accounted for under the equity method are recorded within current income taxes because these taxes generally represent the Company's share of the taxes incurred by the Affiliate. Deferred income taxes incurred as a direct result of the Company's investment in Affiliates accounted for under the equity method have been included in intangible-related deferred taxes. The associated deferred tax liabilities have been classified as a component of Deferred income taxes in the Consolidated Balance Sheet. | ||
The Company periodically evaluates its equity method investments for impairment. In such impairment evaluations, the Company assesses if the fair value of the investment has declined below its carrying value for a period considered to be other than temporary. If the Company determines that a decline in fair value below the carrying value of the investment is other than temporary, then the reduction in carrying value would be recognized in Income from equity method investments in the Consolidated Statements of Income. | ||
Acquired Client Relationships and Goodwill | ' | |
Acquired Client Relationships and Goodwill | ||
Each acquired Affiliate has identifiable assets arising from contractual or other legal rights with their clients ("acquired client relationships"). In determining the value of acquired client relationships, the Company analyzes the net present value of each acquired Affiliate's existing client relationships based on a number of factors including: the Affiliate's historical and potential future operating performance; the Affiliate's historical and potential future rates of attrition among existing clients; the stability and longevity of existing client relationships; the Affiliate's recent, as well as long-term, investment performance; the characteristics of the firm's products and investment styles; the stability and depth of the Affiliate's management team and the Affiliate's history and perceived franchise or brand value. | ||
The Company has determined that certain of its mutual fund acquired client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and the cash flows generated by these assets to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred which indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company would assess whether the carrying value of the assets exceeds its fair value, an impairment loss would be recorded in an amount equal to any such excess and these assets would be reclassified to definite-lived. | ||
The expected useful lives of definite-lived acquired client relationships are analyzed each period and determined based on an analysis of the historical and projected attrition rates of each Affiliate's existing clients, and other factors that may influence the expected future economic benefit the Company will derive from the relationships. | ||
The Company tests for the possible impairment of indefinite and definite-lived intangible assets annually or more frequently whenever events or changes in circumstances indicate that the carrying amount of the asset is not recoverable. If such indicators exist, the Company compares the fair value of the asset to the carrying value of the asset. If the carrying value is greater than the fair value, an impairment loss may be recorded. | ||
Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized, and is reported within the segments in which the business operates. Goodwill is not amortized, but is instead reviewed for impairment. The Company assesses goodwill for impairment at least annually, or more frequently whenever events or circumstances occur indicating that the recorded goodwill may be impaired. If the carrying amount of goodwill exceeds the fair value, an impairment loss may be recorded. | ||
Issuance Costs | ' | |
Issuance Costs | ||
Issuance costs incurred in securing credit facility financing are amortized over the remaining term of the credit facility. Costs incurred to issue debt are amortized over the shorter of the period to the first investor put or the Company's estimate of the expected term of the security. Costs associated with financial instruments that are not required to be accounted for separately as derivative instruments are charged directly to stockholders' equity. | ||
Derivative Financial Instruments | ' | |
Derivative Financial Instruments | ||
The Company is exposed to interest rate risk inherent in its variable rate debt obligations. The Company's risk management strategy may utilize financial instruments, specifically interest rate derivative contracts to hedge certain interest rate exposures. In entering into these contracts, the Company intends to offset cash flow gains and losses that occur on its existing debt obligations with cash flow gains and losses on the contracts hedging these obligations. | ||
The Company records all derivatives on the balance sheet at fair value. If the Company's derivatives qualify as cash flow hedges, the effective portion of the unrealized gain or loss is recorded in Accumulated other comprehensive income as a separate component of stockholders' equity and reclassified into earnings when the hedged cash flows are recorded in earnings. Hedge effectiveness is generally measured by comparing the present value of the cumulative change in the expected future variable cash flows of the hedged contract with the present value of the cumulative change in the expected future variable cash flows of the hedged item. To the extent that the critical terms of the hedged item and the derivative are not identical, hedge ineffectiveness would be reported in earnings as Interest expense. If the Company's derivatives do not qualify as cash flow or fair value hedges, changes in the fair value of the derivatives are recognized as a gain or loss in Investment and other (income) loss. | ||
Contingent Payment Arrangements | ' | |
Contingent Payment Arrangements | ||
The Company periodically enters into contingent payment arrangements in connection with its business combinations. In these arrangements, the Company agrees to pay additional consideration to the sellers to the extent that certain levels of revenue growth are achieved. For consolidated Affiliates, the Company estimates the fair value of these potential future obligations at the time a business combination is consummated and records a liability on its Consolidated Balance Sheet. The Company then accretes the obligation to its expected payment amount over the period until the arrangement is measured. If the Company's expected payment amount subsequently changes, the obligation is reduced or increased in the current period resulting in a gain or loss, respectively. Both gains and losses resulting from changes to expected payments and the accretion of these obligations to their expected payment amounts are reflected within Imputed interest expense and contingent payment arrangements in the Company's Consolidated Statements of Income. For Affiliates accounted for under the equity method, the Company records an obligation when a payment becomes probable with a corresponding increase to the carrying value of the Affiliate. | ||
Income Taxes | ' | |
Income Taxes | ||
The Company accounts for income taxes using the liability method. Under this method, deferred taxes are recognized for the expected future tax consequences of temporary differences between the book carrying amounts and tax bases of the Company's assets and liabilities. Deferred tax liabilities are generally attributable to intangible assets, convertible securities and deferred revenue. Deferred tax assets are generally attributable to state and foreign loss carryforwards, deferred compensation and the benefit of uncertain tax positions. | ||
In measuring the amount of deferred taxes each period, the Company must project the impact on its future tax payments of any reversal of deferred tax liabilities (which would increase the Company's tax payments), and any use of its state and foreign loss carryforwards (which would decrease its tax payments). In forming these estimates, the Company uses enacted federal, state and foreign income tax rates and makes assumptions about the apportionment of future taxable income to jurisdictions in which the Company has operations. An increase or decrease in federal or state income tax rates could have a material impact on the Company's deferred income tax liabilities and assets and would result in a current income tax charge or benefit. | ||
The Company recognizes the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a "more-likely-than-not" threshold, the amount recognized in the financial statements is the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. The Company recognizes interest and other charges relating to unrecognized tax benefits as additional tax expense. | ||
In the case of the Company's deferred tax assets, the Company regularly assesses the need for valuation allowances, which would reduce these assets to their recoverable amounts. In forming these estimates, the Company makes assumptions of future taxable income that may be generated to utilize these assets, which have limited lives. If the Company determines that these assets will be realized, the Company records an adjustment to the valuation allowance, which would decrease tax expense in the period such determination was made. Likewise, should the Company determine that it would be unable to realize additional amounts of deferred tax assets, an adjustment to the valuation allowance would be charged to tax expense in the period such determination was made. | ||
Foreign Currency Translation | ' | |
Foreign Currency Translation | ||
The assets and liabilities of Affiliates whose functional currency is not the U.S. dollar are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. The revenue and expenses of these Affiliates are translated into U.S. dollars using average exchange rates for the relevant period. Because of the permanent nature of the Company's investments, net translation exchange gains and losses are excluded from Net income but are recorded in Other comprehensive income. Foreign currency transaction gains and losses are reflected in Investment and other income. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
The Company's consolidated revenue primarily represents advisory fees billed monthly, quarterly and annually by Affiliates for managing the assets of clients. Asset-based advisory fees are recognized as services are rendered and are based upon a percentage of the value of client assets managed. Any fees collected in advance are deferred and recognized as income over the period earned. Performance based advisory fees are generally assessed as a percentage of the investment performance realized on a client's account, generally over an annual period. Performance-based advisory fees are recognized when they are earned (i.e. when they become billable to customers and are not subject to contingent repayment) based on the contractual terms of agreements and when collection is reasonably assured. Carried interest is recognized upon the earlier of the termination of the investment product or when the likelihood of claw-back is improbable. Also included in revenue are commissions earned by broker dealers, recorded on a trade date basis, and other service fees recorded as earned. | ||
The Company's Affiliates have contractual arrangements with third parties to provide certain distribution-related services. These third parties are primarily compensated based on the value of client assets over time. Distribution related revenues are presented gross of any related expenses when the Affiliate is the principal in its role as primary obligor under its sales and distribution arrangements. Distribution-related expenses are presented within Selling, general and administrative expenses. | ||
Share-Based Compensation Plans | ' | |
Share-Based Compensation Plans | ||
The Company recognizes expenses for all share-based payments based on their grant date fair values over the requisite service period. | ||
The Company reports any tax benefits realized upon the exercise of stock options that are in excess of the expense recognized for reporting purposes as a financing activity in the Company's Consolidated Statements of Cash Flows. If the tax benefit realized is less than the expense, the tax shortfall is recognized in stockholders' equity. To the extent the expense exceeds available windfall tax benefits, it is recognized in the Consolidated Statements of Income. The Company was permitted to calculate its cumulative windfall tax benefits for the purposes of accounting for future tax shortfalls. The Company elected to apply the long-form method for determining the pool of windfall tax benefits. | ||
Recent Accounting Developments | ' | |
Recent Accounting Developments | ||
In February 2013, the Financial Accounting Standards Board issued an update to the guidance for reporting reclassifications out of accumulated other comprehensive income. The new guidance requires companies to present the impact of significant amounts reclassified from accumulated other comprehensive income and the income statement line items affected by the reclassification. The new guidance is effective for interim and fiscal periods beginning after December 15, 2012. The Company adopted this guidance in the first quarter of 2013. Adoption of this new guidance did not have a significant impact on the Company's Consolidated Financial Statements. | ||
In June 2013, the Financial Accounting Standards Board issued an update to the guidance for determining whether a public or private company is an investment company. The new guidance clarifies the characteristics of an investment company and amends certain disclosure and measurement requirements. The new guidance is effective for interim and fiscal periods beginning after December 15, 2013 (early application is prohibited). The Company is evaluating the impact of this guidance and does not expect it to have a significant impact on the Company's Consolidated Financial Statements. |
Investments_in_Marketable_Secu1
Investments in Marketable Securities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Marketable Securities [Abstract] | ' | |||||||||||||||
Summary of the cost, gross unrealized gains and losses and fair value of investments | ' | |||||||||||||||
The following is a summary of the cost, gross unrealized gains and losses and fair value of investments classified as available-for-sale and trading at December 31, 2012 and 2013: | ||||||||||||||||
Available-for-Sale | Trading | |||||||||||||||
31-Dec-12 | 31-Dec-13 | 31-Dec-12 | December 31, 2013 | |||||||||||||
Cost | $ | 103.2 | $ | 103.2 | $ | 10.3 | $ | 17.9 | ||||||||
Unrealized Gains | 15.3 | 33.3 | 6.5 | 4.6 | ||||||||||||
Unrealized Losses | (3.2 | ) | (1.1 | ) | (3.2 | ) | — | |||||||||
Fair Value | $ | 115.3 | $ | 135.4 | $ | 13.6 | $ | 22.5 | ||||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Variable Interest Entities | ' | |||||||||||||||
Schedule of net assets and liabilities and maximum risk of losses related to unconsolidated VIEs | ' | |||||||||||||||
The net assets and liabilities of these unconsolidated VIEs and the Company's maximum risk of loss related thereto are as follows: | ||||||||||||||||
31-Dec-12 | 31-Dec-13 | |||||||||||||||
Category of Investment | Unconsolidated | Carrying Value and | Unconsolidated | Carrying Value and | ||||||||||||
VIE Net Assets | Maximum Exposure | VIE Net Assets | Maximum Exposure | |||||||||||||
to Loss | to Loss | |||||||||||||||
Sponsored investment funds | $ | 7,186.90 | $ | 0.8 | $ | 8,112.70 | $ | 1.7 | ||||||||
Trust preferred vehicles | 9 | 9 | 9 | 9 | ||||||||||||
Senior_Notes_Tables
Senior Notes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Summary of principal terms of senior notes | ' | |||||||
At December 31, 2013, the Company has two senior notes outstanding. The principal terms of these notes are summarized below. | ||||||||
2022 | 2042 | |||||||
Senior | Senior | |||||||
Notes | Notes | |||||||
Issue date | Oct-12 | Aug-12 | ||||||
Maturity date | Oct-22 | Aug-42 | ||||||
Potential Call Date | Oct-15 | Aug-17 | ||||||
Par value (in millions) | $ | 140 | $ | 200 | ||||
Call Price | At Par | At Par | ||||||
Stated coupon | 5.25 | % | 6.375 | % | ||||
Coupon frequency | Quarterly | Quarterly | ||||||
Convertible_Securities_Tables
Convertible Securities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Schedule of carrying amount and fair value of convertible notes | ' | |||||||||||||||
The carrying values of the Company's convertible securities are as follows: | ||||||||||||||||
31-Dec-12 | 31-Dec-13 | |||||||||||||||
Carrying | Principal amount | Carrying | Principal amount | |||||||||||||
Value | at maturity | Value | at maturity | |||||||||||||
Senior convertible securities: | ||||||||||||||||
2008 senior convertible notes(1) | $ | 450.1 | $ | 460 | $ | — | $ | — | ||||||||
Junior convertible trust preferred securities: | ||||||||||||||||
2007 junior convertible trust preferred securities(1) | $ | 299.4 | $ | 430.8 | $ | 301.2 | $ | 430.8 | ||||||||
2006 junior convertible trust preferred securities(1) | 216.1 | 300 | 217.5 | 300 | ||||||||||||
Total junior convertible securities | $ | 515.5 | $ | 730.8 | $ | 518.7 | $ | 730.8 | ||||||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | Carrying value is accreted to the principal amount at maturity over an expected life of 30 years for each of the junior convertible trust preferred securities. | |||||||||||||||
Schedule of principal terms of convertible notes | ' | |||||||||||||||
The principal terms of these securities are summarized below. | ||||||||||||||||
2006 | 2007 | |||||||||||||||
Junior | Junior | |||||||||||||||
Convertible | Convertible | |||||||||||||||
Trust Preferred | Trust Preferred | |||||||||||||||
Securities(1) | Securities(2) | |||||||||||||||
Issue date | Apr-06 | Oct-07 | ||||||||||||||
Maturity date | Apr-36 | Oct-37 | ||||||||||||||
Par value (in millions) | $ | 300 | $ | 430.8 | ||||||||||||
Carrying value (in millions)(3) | $ | 217.5 | $ | 301.2 | ||||||||||||
Denomination | $ | 50 | $ | 50 | ||||||||||||
Current conversion rate | 0.333 | 0.25 | ||||||||||||||
Current conversion price | $ | 150 | $ | 200 | ||||||||||||
Stated coupon | 5.1 | % | 5.15 | % | ||||||||||||
Coupon frequency | Quarterly | Quarterly | ||||||||||||||
Tax deduction rate(4) | 7.5 | % | 8 | % | ||||||||||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | On February 13, 2014, we delivered a notice to redeem all of our outstanding 2006 convertible trust preferred securities. In lieu of redemption, holders of the 2006 junior convertible trust preferred securities may elect to convert their securities into a defined number of shares. Upon conversion, holders will receive cash or shares of our common stock, or a combination thereof, at our election. | |||||||||||||||
-2 | The Company may redeem the 2007 junior convertible trust preferred securities if the closing price of the Company's common stock exceeds $260 per share for 20 trading days in a period of 30 consecutive trading days. | |||||||||||||||
-3 | The carrying value is accreted to the principal amount at maturity over an expected life of 30 years for each of the junior convertible trust preferred securities. | |||||||||||||||
-4 | These convertible securities are considered contingent payment debt instruments under federal income tax regulations, which require the Company to deduct interest in an amount greater than its reported Interest expense. These deductions result in annual deferred tax liabilities of approximately $12.9 million ($8.1 million assuming the redemption of the 2006 convertible trust preferred securities). These deferred tax liabilities will be reclassified directly to stockholders' equity if the Company's common stock is trading above certain thresholds at the time of the conversion of the securities. In 2013 , $50.6 million was reclassified to stockholders' equity related to the repurchase of the 2008 senior convertible notes. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Schedule of interest rate swap agreements | ' | ||||||||||||
In 2010, the Company entered into interest rate swap agreements as summarized in the table below: | |||||||||||||
Notional | Paying | Receiving | Start Date | Expiration Date | |||||||||
Amount | |||||||||||||
Counterparty A | $ | 25 | 1.67 | % | 3-Month LIBOR | Oct-10 | Oct-15 | ||||||
Counterparty A | $ | 25 | 1.65 | % | 3-Month LIBOR | Oct-10 | Oct-15 | ||||||
Counterparty B | $ | 25 | 1.59 | % | 3-Month LIBOR | Oct-10 | Oct-15 | ||||||
Counterparty B | $ | 25 | 2.14 | % | 3-Month LIBOR | Oct-10 | Oct-17 | ||||||
Schedule of amount of derivative instrument gains and (losses) before taxes | ' | ||||||||||||
The following summarizes the amount of derivative instrument gains and losses reported in the Consolidated Statements of Comprehensive Income: | |||||||||||||
For the Years Ended December 31, | |||||||||||||
Cash Flow Hedges | 2011 | 2012 | 2013 | ||||||||||
Interest rate swaps | $ | (5.4 | ) | $ | (1.1 | ) | $ | 1.5 | |||||
Treasury rate locks | (4.3 | ) | — | — | |||||||||
Total | $ | (9.7 | ) | $ | (1.1 | ) | $ | 1.5 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Schedule of fair value of financial assets and financial liabilities measured on a recurring basis | ' | ||||||||||||||||||||||||
The following table summarizes the Company's financial assets and liabilities that are measured at fair value on a recurring basis: | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
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 | $ | 13.5 | $ | 13.5 | $ | — | $ | — | |||||||||||||||||
Investments in marketable securities(1) | |||||||||||||||||||||||||
Trading securities | 13.6 | 13.6 | — | — | |||||||||||||||||||||
Available-for-sale securities | 115.3 | 115.3 | — | — | |||||||||||||||||||||
Other investments | 155.4 | 15.7 | 20.8 | 118.9 | |||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||
Contingent payment arrangements(2) | $ | 31 | $ | — | $ | — | $ | 31 | |||||||||||||||||
Obligations to related parties(3) | 77.8 | — | — | 77.8 | |||||||||||||||||||||
Interest rate derivatives(4) | 4 | — | 4 | — | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
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 | $ | 39 | $ | 39 | $ | — | $ | — | |||||||||||||||||
Investments in marketable securities(1) | |||||||||||||||||||||||||
Trading securities | 22.5 | 22.5 | — | — | |||||||||||||||||||||
Available for sale securities | 135.4 | 135.4 | — | — | |||||||||||||||||||||
Other investments | 164.3 | 14.1 | 18.4 | 131.8 | |||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||
Contingent payment arrangements(2) | $ | 50.2 | $ | — | $ | — | $ | 50.2 | |||||||||||||||||
Obligations to related parties(3) | 76.9 | — | — | 76.9 | |||||||||||||||||||||
Interest rate derivatives(4) | 2.5 | — | 2.5 | — | |||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-1 | Principally investments in equity securities. | ||||||||||||||||||||||||
-2 | Net present value of expected payments under contingent payment arrangements are reported in Other liabilities. | ||||||||||||||||||||||||
-3 | Obligations to related parties are presented within Other liabilities. | ||||||||||||||||||||||||
-4 | Interest rate derivatives are presented within Other liabilities. | ||||||||||||||||||||||||
Schedule of changes in Level 3 financial assets and financial liabilities | ' | ||||||||||||||||||||||||
The following table presents the changes in Level 3 assets and liabilities for the years ended December 31, 2012 and 2013: | |||||||||||||||||||||||||
For the Twelve Months Ended | |||||||||||||||||||||||||
31-Dec-12 | 31-Dec-13 | ||||||||||||||||||||||||
Other Investments | Contingent Payment Arrangements | Obligations to related parties | Other Investments | Contingent Payment Arrangements | Obligations to related parties | ||||||||||||||||||||
Balance, beginning of period | $ | 103.4 | $ | 87.1 | $ | 92 | $ | 118.9 | $ | 31 | $ | 77.8 | |||||||||||||
Net gains/losses | 7.8 | (1) | (40.8 | ) | (2) | 1.8 | (3) | 12.3 | (1) | 19.2 | (2) | 6.2 | (3) | ||||||||||||
Purchases and issuances | 18.8 | 24.8 | 32.1 | 18 | — | 62.9 | |||||||||||||||||||
Settlements and reductions | (11.1 | ) | (40.1 | ) | (48.1 | ) | (17.4 | ) | — | (70.0 | ) | ||||||||||||||
Net transfers in and/or out of Level 3 | — | — | — | — | — | — | |||||||||||||||||||
Balance, end of period | $ | 118.9 | $ | 31 | $ | 77.8 | $ | 131.8 | $ | 50.2 | $ | 76.9 | |||||||||||||
Net unrealized gains/losses relating to instruments still held at the reporting date | $ | 11 | $ | (13.5 | ) | $ | 0.8 | $ | 16.5 | $ | 19.2 | $ | 2.2 | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-1 | Gains and losses on Other investments are recorded in Investment and other income. | ||||||||||||||||||||||||
-2 | Accretion and changes to payment estimates under the Company's contingent payment arrangements are recorded in Imputed interest expense and contingent payment arrangements and foreign currency translation adjustments related to such arrangements are recorded as Other comprehensive income. | ||||||||||||||||||||||||
-3 | Gains and losses associated with agreements to repurchase Affiliate equity are recorded in Imputed interest expense and contingent payment arrangements. Gains and losses related to liabilities offsetting certain investments are recorded in Investment and other income. | ||||||||||||||||||||||||
Schedule of quantitative information | ' | ||||||||||||||||||||||||
The following table presents certain quantitative information about the significant unobservable inputs used in valuing our Level 3 financial liabilities: | |||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||
Valuation | Unobservable Input | Fair Value at | Range at December 31, 2012 | Fair Value at | Range at December 31, 2013 | ||||||||||||||||||||
Techniques | December 31, 2012 | December 31, 2013 | |||||||||||||||||||||||
Contingent payment arrangements | Discounted cash flow | Growth rates | $ | 31 | 6.0% - 12.0% | $ | 50.2 | 3.0% - 11.0% | |||||||||||||||||
Discount rates | 14.0% - 18.0% | 14.0% - 18.0% | |||||||||||||||||||||||
Affiliate equity repurchase obligations | Discounted cash flow | Growth rates | 9.4 | (10.0)% - 17.0% | 4 | 8.00% | |||||||||||||||||||
Discount rates | 15.0% - 24.0% | 15.00% | |||||||||||||||||||||||
Schedule of investments | ' | ||||||||||||||||||||||||
The following table summarizes, as of December 31, 2012 and 2013, the nature of these investments and any related liquidation restrictions or other factors which may impact the ultimate value realized: | |||||||||||||||||||||||||
31-Dec-12 | 31-Dec-13 | ||||||||||||||||||||||||
Category of Investment | Fair Value | Unfunded | Fair Value | Unfunded | |||||||||||||||||||||
Commitments | Commitments | ||||||||||||||||||||||||
Private equity fund-of-funds(1) | $ | 118.9 | $ | 75.4 | $ | 131.8 | $ | 62.9 | |||||||||||||||||
Other funds(2) | 68.9 | — | 82.3 | — | |||||||||||||||||||||
$ | 187.8 | $ | 75.4 | $ | 214.1 | $ | 62.9 | ||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-1 | These funds primarily invest in a broad range of private equity funds, as well as making direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds. | ||||||||||||||||||||||||
-2 | These are multi-disciplinary funds that invest across various asset classes and strategies including long/short equity, credit and real estate. Investments are generally redeemable on a daily or quarterly basis. | ||||||||||||||||||||||||
Summary of other financial liabilities not carried at fair value | ' | ||||||||||||||||||||||||
The following table summarizes the Company's other financial liabilities not carried at fair value: | |||||||||||||||||||||||||
31-Dec-12 | 31-Dec-13 | ||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Fair Value Hierarchy | |||||||||||||||||||||
Senior notes | $ | 340 | $ | 351.8 | $ | 340 | $ | 325 | Level 2 | ||||||||||||||||
Senior convertible securities | 450.1 | 510.6 | — | — | Level 2 | ||||||||||||||||||||
Junior convertible trust preferred securities | 515.5 | 719.9 | 518.7 | 963.9 | Level 2 | ||||||||||||||||||||
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Schedule of purchase price allocation for investments | ' | |||||||
The aggregate purchase price allocation for these investments is as follows: | ||||||||
Total | ||||||||
Consideration paid | $ | 417.8 | ||||||
Non-controlling interests | 247.6 | |||||||
Contingent payment obligations | 24.8 | |||||||
Enterprise value | $ | 690.2 | ||||||
Acquired client relationships | $ | 452.6 | ||||||
Tangible assets, net | 11.7 | |||||||
Goodwill | 225.9 | |||||||
$ | 690.2 | |||||||
Schedule of unaudited pro forma financial results | ' | |||||||
Unaudited pro forma financial results are set forth below, giving consideration to the investments and acquisitions in 2012, as if such transactions occurred as of January 1, 2011, assuming the revenue sharing arrangements had been in effect for the entire period and after making certain other pro forma adjustments. | ||||||||
For the Years Ended December 31, | ||||||||
2011 | 2012 | |||||||
Revenue | $ | 1,810.90 | $ | 1,881.00 | ||||
Net income (controlling interest) | 179.6 | 186 | ||||||
Earnings per share—basic | $ | 3.47 | $ | 3.6 | ||||
Earnings per share—diluted | $ | 3.39 | $ | 3.51 | ||||
Goodwill_and_Acquired_Client_R1
Goodwill and Acquired Client Relationships (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of changes in goodwill | ' | |||||||||||||||||||
The following table presents the change in Goodwill during 2012 and 2013: | ||||||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||||||
Balance, as of December 31, 2011 | $ | 1,071.40 | $ | 785 | $ | 260.9 | $ | 2,117.30 | ||||||||||||
Goodwill acquired | 0.3 | 151.3 | 74.3 | 225.9 | ||||||||||||||||
Foreign currency translation | 6.8 | 3.2 | 2 | 12 | ||||||||||||||||
Balance, as of December 31, 2012 | $ | 1,078.50 | $ | 939.5 | $ | 337.2 | $ | 2,355.20 | ||||||||||||
Goodwill acquired | — | — | — | — | ||||||||||||||||
Foreign currency translation | (2.2 | ) | (11.4 | ) | 0.1 | (13.5 | ) | |||||||||||||
Balance, as of December 31, 2013 | $ | 1,076.30 | $ | 928.1 | $ | 337.3 | $ | 2,341.70 | ||||||||||||
Schedule of changes in and the components of acquired client relationships | ' | |||||||||||||||||||
The following table reflects the components of intangible assets of the Company's Affiliates that are consolidated as of December 31, 2012 and 2013: | ||||||||||||||||||||
Acquired Client Relationships | ||||||||||||||||||||
Definite-lived | Indefinite-lived | Total | ||||||||||||||||||
Gross Book | Accumulated | Net Book | Net Book | Net Book | ||||||||||||||||
Value | Amortization | Value | Value | Value | ||||||||||||||||
Balance, as of December 31, 2011 | $ | 970.5 | $ | (317.0 | ) | $ | 653.5 | $ | 667.6 | $ | 1,321.10 | |||||||||
New Investments | 131.1 | — | 131.1 | 321.5 | 452.6 | |||||||||||||||
Amortization and impairments | — | (97.8 | ) | (97.8 | ) | (102.2 | ) | (200.0 | ) | |||||||||||
Foreign currency translation | 1.1 | — | 1.1 | 10.7 | 11.8 | |||||||||||||||
Transfers and other | 6.9 | 31.3 | 38.2 | (38.2 | ) | — | ||||||||||||||
Balance, as of December 31, 2012 | $ | 1,109.60 | $ | (383.5 | ) | $ | 726.1 | $ | 859.4 | $ | 1,585.50 | |||||||||
New Investments | — | — | — | — | — | |||||||||||||||
Amortization and impairments | — | (128.2 | ) | (128.2 | ) | — | (128.2 | ) | ||||||||||||
Foreign currency translation | (1.2 | ) | — | (1.2 | ) | 4.6 | 3.4 | |||||||||||||
Transfers and other | (68.9 | ) | 68.9 | — | — | — | ||||||||||||||
Balance, as of December 31, 2013 | $ | 1,039.50 | $ | (442.8 | ) | $ | 596.7 | $ | 864 | $ | 1,460.70 | |||||||||
Equity_Investments_in_Affiliat1
Equity Investments in Affiliates (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Schedule of annual amortization expense attributable to current equity method Affiliates for next five years | ' | |||||||||||
Assuming no additional investments in new or existing Affiliates, the Company estimates the annual amortization expense attributable to its current equity-method Affiliates for the next five years as follows: | ||||||||||||
Year Ending December 31, | Estimated | |||||||||||
Amortization | ||||||||||||
Expense | ||||||||||||
2014 | $ | 20.7 | ||||||||||
2015 | 12.4 | |||||||||||
2016 | 9.8 | |||||||||||
2017 | 9.8 | |||||||||||
2018 | 9.8 | |||||||||||
Schedule of financial information for Affiliates accounted for under the equity method | ' | |||||||||||
The following table presents summarized financial information for Affiliates accounted for under the equity method. | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Revenue(1) | $ | 581 | $ | 1,005.40 | $ | 1,589.60 | ||||||
Net income | 387.9 | 783.3 | 1,321.90 | |||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
Current assets(2) | $ | 11,957.80 | $ | 19,084.40 | ||||||||
Noncurrent assets | 34.7 | 55.3 | ||||||||||
Current liabilities | 1,361.50 | 1,674.50 | ||||||||||
Noncurrent liabilities and Non-controlling interest(2) | 9,857.60 | 16,089.00 | ||||||||||
_______________________________________________________________________________ | ||||||||||||
-1 | Revenue includes advisory fees for asset management services, investment income and dividends from consolidated investment partnerships. | |||||||||||
-2 | The Company is not entitled to assets held by investors that are unrelated to the Company including consolidated investment partnerships. |
Fixed_Assets_and_Lease_Commitm1
Fixed Assets and Lease Commitments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Fixed Assets and Lease Commitments | ' | |||||||
Schedule of fixed assets | ' | |||||||
Fixed assets consisted of the following: | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Building and leasehold improvements | $ | 74.7 | $ | 78.5 | ||||
Equipment | 38.9 | 36.5 | ||||||
Furniture and fixtures | 16.3 | 15.4 | ||||||
Land and improvements | 18.1 | 18.9 | ||||||
Software | 21.4 | 30.6 | ||||||
Fixed assets, at cost | 169.4 | 179.9 | ||||||
Accumulated depreciation and amortization | (87.9 | ) | (87.6 | ) | ||||
Fixed assets, net | $ | 81.5 | $ | 92.3 | ||||
Schedule of aggregate future minimum payments for operating leases | ' | |||||||
At December 31, 2013, the Company's aggregate future minimum payments for operating leases having initial or non-cancelable lease terms greater than one year are payable as follows: | ||||||||
Required Minimum | ||||||||
Payments | ||||||||
2014 | $ | 30.1 | ||||||
2015 | 29.2 | |||||||
2016 | 23.5 | |||||||
2017 | 21.4 | |||||||
2018 | 19.8 | |||||||
Thereafter | 69.5 | |||||||
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of accounts payable and accrued liabilities | ' | |||||||
Accounts payable and accrued liabilities consisted of the following: | ||||||||
December 31, | ||||||||
2012 | 2013 | |||||||
Accrued compensation | $ | 138.8 | $ | 187.9 | ||||
Unsettled fund share payables | 39.8 | $ | 84.6 | |||||
Accrued income taxes | 13.7 | 73 | ||||||
Accrued professional fees | 28.7 | 33.4 | ||||||
Accrued interest | 19.3 | 11.8 | ||||||
Accrued distributions | 13.2 | 23.6 | ||||||
Accounts payable | 59.5 | 23.5 | ||||||
Other | 50.3 | 76.9 | ||||||
$ | 363.3 | $ | 514.7 | |||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||
Schedule of recent share repurchase activity | ' | |||||||
A summary of the Company's recent share repurchase activity is as follows: | ||||||||
Period | Shares | Average | ||||||
Repurchased | Price | |||||||
2011 | 0.7 | $ | 83.63 | |||||
2012 | 0.6 | $ | 107.44 | |||||
2013 | 0.1 | $ | 184.89 | |||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Schedule of transactions of the Company's stock options | ' | ||||||||
The following table summarizes the transactions of the Company's stock options: | |||||||||
Stock Options | Weighted | Weighted | |||||||
Average | Average | ||||||||
Exercise | Remaining | ||||||||
Price | Contractual | ||||||||
Life (years) | |||||||||
Unexercised options outstanding—January 1, 2013 | 3.8 | $ | 74.04 | ||||||
Options granted | 0 | 191.75 | |||||||
Options exercised | (0.8 | ) | 62.59 | ||||||
Options forfeited | (0.0 | ) | 81.49 | ||||||
Unexercised options outstanding—December 31, 2013 | 3 | 77.71 | 3.4 | ||||||
Exercisable at December 31, 2013 | 2.4 | 73.56 | 3.2 | ||||||
Schedule of assumptions used to determine fair value of options granted | ' | ||||||||
The weighted average fair value of options granted during the years ended December 31, 2011, 2012 and 2013 was $30.27, $40.43 and $61.82 per option, respectively, based on the weighted-average grant date assumptions stated below. | |||||||||
For the Years Ended December 31, | |||||||||
2011 | 2012 | 2013 | |||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||
Expected volatility(1) | 33.1 | % | 36.8 | % | 34.4 | % | |||
Risk-free interest rate(2) | 1.3 | % | 0.7 | % | 1.5 | % | |||
Expected life of options (in years)(3) | 4.8 | 5 | 5 | ||||||
Forfeiture rate(3) | 2.4 | % | 1.4 | % | 0 | % | |||
_______________________________________________________________________________ | |||||||||
-1 | Based on historical and implied volatility. | ||||||||
-2 | Based on the U.S. Treasury yield curve in effect at the date of grant. | ||||||||
-3 | Based on the Company's historical data and expected exercise behavior. | ||||||||
Summary of transactions of the Company's restricted stock | ' | ||||||||
The following table summarizes the transactions of the Company's restricted stock: | |||||||||
Restricted | Weighted | ||||||||
Stock | Average | ||||||||
Grant Date | |||||||||
Value | |||||||||
Unvested units—January 1, 2013 | 0.4 | $ | 84.53 | ||||||
Units granted | 0.3 | 208.76 | |||||||
Units vested | (0.2 | ) | 50.46 | ||||||
Units forfeited | (0.0 | ) | 94.83 | ||||||
Unvested units—December 31, 2013 | 0.5 | 176.38 | |||||||
Summary of recent share based compensation expense | ' | ||||||||
A summary of recent share-based compensation expense is as follows: | |||||||||
Period | Share-Based | Tax Benefit | |||||||
Compensation | |||||||||
Expense | |||||||||
2011 | $ | 21.2 | $ | 8.1 | |||||
2012 | 25.4 | 9.6 | |||||||
2013 | 27.5 | 10.6 | |||||||
Affiliate_Equity_Tables
Affiliate Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Affiliate Equity | ' | |||||||||||
Summary of affiliate equity compensation expense | ' | |||||||||||
A summary of Affiliate equity compensation expense is as follows: | ||||||||||||
Period | Affiliate Equity Compensation Expense | Tax Benefit | ||||||||||
2011 | $ | 38.1 | $ | 12 | ||||||||
2012 | 60.4 | 17 | ||||||||||
2013 | 72.3 | 21.7 | ||||||||||
Schedule of the changes in redeemable non-controlling interests | ' | |||||||||||
The following table presents the changes in Redeemable non-controlling interests during the period: | ||||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
Balance, as of January 1 | $ | 451.8 | $ | 477.5 | ||||||||
Transactions in Redeemable non-controlling interests | (17.2 | ) | (52.5 | ) | ||||||||
Changes in redemption value | 42.9 | 216.9 | ||||||||||
Balance, as of December 31 | $ | 477.5 | $ | 641.9 | ||||||||
Schedule of the effect of changes in the entity's ownership interest in its affiliates on the controlling interest's equity | ' | |||||||||||
The following schedule discloses the effect of changes in the Company's ownership interests in its Affiliates on the controlling interest's equity: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Net income (controlling interest) | $ | 164.9 | $ | 174 | $ | 360.5 | ||||||
Increase (decrease) in controlling interest paid-in capital from the sale of Affiliate equity | (28.1 | ) | (44.0 | ) | (74.0 | ) | ||||||
Change from Net income (controlling interest) and net transfers with non-controlling interests | $ | 136.8 | $ | 130 | $ | 286.5 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of income tax provision attributable to controlling interests and to non-controlling interests | ' | |||||||||||
The consolidated income tax provision includes taxes attributable to the controlling interest and, to a lesser extent, taxes attributable to non-controlling interests as follows: | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Controlling Interests: | ||||||||||||
Current tax | $ | 45 | $ | 61 | $ | 153.1 | ||||||
Intangible related deferred taxes | 43.2 | 22.7 | 38.1 | |||||||||
Other deferred taxes | (4.0 | ) | (12.1 | ) | (6.2 | ) | ||||||
Total controlling interests | 84.2 | 71.6 | 185 | |||||||||
Non-controlling Interests: | ||||||||||||
Current tax | $ | 12.9 | $ | 11.7 | $ | 13.3 | ||||||
Deferred taxes | (4.0 | ) | 0.5 | (4.2 | ) | |||||||
Total non-controlling interests | 8.9 | 12.2 | 9.1 | |||||||||
Provision for income taxes | $ | 93.1 | $ | 83.8 | $ | 194.1 | ||||||
Income before income taxes (controlling interest) | $ | 249.1 | $ | 245.6 | $ | 545.5 | ||||||
Effective tax rate attributable to controlling interests(1) | 33.8 | % | 29.2 | % | 33.9 | % | ||||||
_______________________________________________________________________________ | ||||||||||||
-1 | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). | |||||||||||
Schedule of consolidated provision for income taxes | ' | |||||||||||
A summary of the consolidated provision for income taxes is as follows: | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Current: | ||||||||||||
Federal | $ | 6.2 | $ | 14.5 | $ | 104.1 | ||||||
State | 11.2 | 14.2 | 21.1 | |||||||||
Foreign | 40.5 | 44 | 41.2 | |||||||||
Total current | 57.9 | 72.7 | 166.4 | |||||||||
Deferred: | ||||||||||||
Federal | 46.8 | 19.8 | 38.1 | |||||||||
State | 5 | 4.6 | 8.9 | |||||||||
Foreign | (16.6 | ) | (13.3 | ) | (19.3 | ) | ||||||
Total deferred | 35.2 | 11.1 | 27.7 | |||||||||
Provision for income taxes | $ | 93.1 | $ | 83.8 | $ | 194.1 | ||||||
Schedule of components of income before income taxes | ' | |||||||||||
The components of income before income taxes consisted of the following: | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Domestic | $ | 243.8 | $ | 238.6 | $ | 604 | ||||||
International | 208.9 | 256.6 | 259.7 | |||||||||
$ | 452.7 | $ | 495.2 | $ | 863.7 | |||||||
Schedule of effective income tax rate computed by using income before income taxes and applying U.S. federal income tax rate | ' | |||||||||||
The Company's effective income tax rate differs from the amount computed by using income before income taxes and applying the U.S. federal income tax rate because of the effect of the following items: | ||||||||||||
For the Years Ended | ||||||||||||
December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Tax at U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit | 1.4 | 3.5 | 2.8 | |||||||||
Non-deductible expenses | 0.5 | 0.7 | 0.3 | |||||||||
Valuation allowance | (0.1 | ) | (4.7 | ) | (0.3 | ) | ||||||
Effect of foreign operations | — | (2.9 | ) | (2.3 | ) | |||||||
Foreign basis differences | (0.9 | ) | (0.4 | ) | (0.2 | ) | ||||||
Effect of changes in tax law, rates | (2.1 | ) | (2.0 | ) | (1.4 | ) | ||||||
Effect of income from non-controlling interests | (13.2 | ) | (12.2 | ) | (11.4 | ) | ||||||
20.6 | % | 17 | % | 22.5 | % | |||||||
Schedule of components of deferred tax assets and liabilities | ' | |||||||||||
The components of deferred tax assets and liabilities are as follows: | ||||||||||||
December 31, | ||||||||||||
2012 | 2013 | |||||||||||
Deferred Tax Assets | ||||||||||||
State net operating loss carryforwards | $ | 23.9 | $ | 29.3 | ||||||||
Deferred compensation | 23.9 | 29.1 | ||||||||||
Foreign tax credit carryforwards | 20.1 | — | ||||||||||
Tax benefit of uncertain tax positions | 17.6 | 16.2 | ||||||||||
Accrued expenses | 6 | 17.6 | ||||||||||
Foreign loss carryforwards | 1.5 | 9.1 | ||||||||||
Total deferred tax assets | 93 | 101.3 | ||||||||||
Valuation allowance | (21.3 | ) | (36.6 | ) | ||||||||
Deferred tax assets, net of valuation allowance | $ | 71.7 | $ | 64.7 | ||||||||
Deferred Tax Liabilities | ||||||||||||
Intangible asset amortization | $ | (238.2 | ) | $ | (241.3 | ) | ||||||
Convertible securities interest | (189.2 | ) | (144.7 | ) | ||||||||
Non-deductible intangible amortization | (120.1 | ) | (101.5 | ) | ||||||||
Deferred revenue | (18.5 | ) | (32.1 | ) | ||||||||
Other | (2.8 | ) | (2.0 | ) | ||||||||
Total deferred tax liabilities | (568.8 | ) | (521.6 | ) | ||||||||
Net deferred tax liability | $ | (497.1 | ) | $ | (456.9 | ) | ||||||
Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Balance, as of January 1 | $ | 24.6 | $ | 21.2 | $ | 22.6 | ||||||
Additions based on current year tax positions | 4.8 | 5.9 | 4.1 | |||||||||
Additions based on prior years' tax positions | — | 5.2 | — | |||||||||
Reductions for prior years' tax provisions | — | (5.4 | ) | (0.1 | ) | |||||||
Settlements | (1.2 | ) | — | — | ||||||||
Reductions related to lapses of statutes of limitations | (6.7 | ) | (4.6 | ) | (5.4 | ) | ||||||
Additions (reductions) related to foreign exchange rates | (0.3 | ) | 0.3 | (0.8 | ) | |||||||
Balance, as of December 31 | $ | 21.2 | $ | 22.6 | $ | 20.4 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share | ' | |||||||||||
The following is a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share available to common stockholders. | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Numerator | ||||||||||||
Net income (controlling interest) | $ | 164.9 | $ | 174 | $ | 360.5 | ||||||
Interest expense on convertible securities, net of taxes | — | — | 10.5 | |||||||||
Net income (controlling interest), as adjusted | $ | 164.9 | $ | 174 | $ | 371 | ||||||
Denominator | ||||||||||||
Average shares outstanding—basic | 51.8 | 51.7 | 53.1 | |||||||||
Effect of dilutive instruments: | ||||||||||||
Stock options and other awards | 1.2 | 1.3 | 1.3 | |||||||||
Forward sale | — | — | 0.3 | |||||||||
Junior convertible securities | — | — | 2 | |||||||||
Average shares outstanding—diluted | 53 | 53 | 56.7 | |||||||||
Diluted earnings per share calculations excluding the anti-dilutive effect of shares | ' | |||||||||||
The diluted earnings per share calculations in the table above exclude the anti-dilutive effect of the following shares: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
Stock options and other awards | 1.2 | 0.7 | 0.1 | |||||||||
Senior convertible securities | 3.6 | 3.6 | 2.1 | |||||||||
Junior convertible trust preferred securities | 4.2 | 4.2 | 2.2 | |||||||||
Forward equity sales | — | 0.2 | — | |||||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Summary of the tax effects allocated to each component of other comprehensive income | ' | |||||||||||||||
The following table shows the tax effects allocated to each component of Other comprehensive income: | ||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||
Foreign currency translation adjustment | $ | (10.2 | ) | $ | — | $ | (10.2 | ) | ||||||||
Change in net realized and unrealized loss on derivative securities | (9.7 | ) | 3.8 | (5.9 | ) | |||||||||||
Change in net unrealized loss on investment securities | (56.6 | ) | 22.2 | (34.4 | ) | |||||||||||
Other comprehensive income | $ | (76.5 | ) | $ | 26 | $ | (50.5 | ) | ||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||
Foreign currency translation adjustment | $ | 18.5 | $ | — | $ | 18.5 | ||||||||||
Change in net realized and unrealized loss on derivative securities | (1.1 | ) | 0.4 | (0.7 | ) | |||||||||||
Change in net unrealized gain on investment securities | 21.6 | (8.1 | ) | 13.5 | ||||||||||||
Other comprehensive loss | $ | 39 | $ | (7.7 | ) | $ | 31.3 | |||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||
Foreign currency translation adjustment | $ | (19.6 | ) | $ | — | $ | (19.6 | ) | ||||||||
Change in net realized and unrealized loss on derivative securities | 1.5 | (0.5 | ) | 1 | ||||||||||||
Change in net unrealized gain on investment securities | 19.5 | (8.0 | ) | 11.5 | ||||||||||||
Other comprehensive income | $ | 1.4 | $ | (8.5 | ) | $ | (7.1 | ) | ||||||||
Schedule of components of accumulated other comprehensive income, net of taxes | ' | |||||||||||||||
The components of Accumulated other comprehensive income, net of taxes, are as follows: | ||||||||||||||||
Foreign Currency Translation Adjustment | Realized and Unrealized Losses on Derivative Securities | Unrealized Gain (Loss) on Investment Securities | Total | |||||||||||||
Balance, as of December 31, 2012 | $ | 76.2 | $ | (2.9 | ) | $ | 8 | $ | 81.3 | |||||||
Other comprehensive income before reclassifications | (19.6 | ) | 1 | 13.3 | (5.3 | ) | ||||||||||
Amounts reclassified from other comprehensive income | — | 0 | (1.8 | ) | (1.8 | ) | ||||||||||
Net other comprehensive income | (19.6 | ) | 1 | 11.5 | (7.1 | ) | ||||||||||
Balance, as of December 31, 2013 | $ | 56.6 | $ | (1.9 | ) | $ | 19.5 | $ | 74.2 | |||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of quarterly results of operations | ' | |||||||||||||||
The following is a summary of the quarterly results of operations of the Company for the years ended December 31, 2012 and 2013. | ||||||||||||||||
2012 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Revenue | $ | 417.6 | $ | 429.6 | $ | 467.3 | $ | 491 | ||||||||
Operating income | 108.8 | 25 | 139.7 | 126.9 | ||||||||||||
Income before income taxes | 117.7 | 62.9 | 137.5 | 177.1 | ||||||||||||
Net income (controlling interest) | 37.5 | 6.6 | 54.9 | 75 | ||||||||||||
Earnings per share—diluted | $ | 0.71 | $ | 0.12 | $ | 1.04 | $ | 1.4 | ||||||||
2013 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Revenue | $ | 502.2 | $ | 541 | $ | 551.6 | $ | 594 | ||||||||
Operating income | 150.5 | 161.4 | 169.1 | 153.1 | ||||||||||||
Income before income taxes | 167.3 | 172.4 | 187.4 | 336.6 | ||||||||||||
Net income (controlling interest) | 62.4 | 64.7 | 75.2 | 158.2 | ||||||||||||
Earnings per share—diluted | $ | 1.15 | $ | 1.18 | $ | 1.37 | $ | 2.79 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of segment information | ' | |||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 841.4 | $ | 723.7 | $ | 139.7 | $ | 1,704.80 | ||||||||
Operating expenses: | ||||||||||||||||
Depreciation, intangible amortization and impairments | 76.9 | 28 | 7.8 | 112.7 | ||||||||||||
Other operating expenses | 524.9 | 492.4 | 88.7 | 1,106.00 | ||||||||||||
601.8 | 520.4 | 96.5 | 1,218.70 | |||||||||||||
Operating income | 239.6 | 203.3 | 43.2 | 486.1 | ||||||||||||
Income from equity method investments | 57.2 | 7.9 | 7.6 | 72.7 | ||||||||||||
Other non-operating (income) and expenses: | ||||||||||||||||
Investment and other (income) loss | (6.9 | ) | 0.6 | 11.3 | 5 | |||||||||||
Interest expense | 39.7 | 27.7 | 6.4 | 73.8 | ||||||||||||
Imputed interest and contingent payment arrangements | 15.1 | 9.9 | 2.3 | 27.3 | ||||||||||||
47.9 | 38.2 | 20 | 106.1 | |||||||||||||
Income before income taxes | 248.9 | 173 | 30.8 | 452.7 | ||||||||||||
Income taxes | 53.4 | 34.4 | 5.3 | 93.1 | ||||||||||||
Net income | 195.5 | 138.6 | 25.5 | 359.6 | ||||||||||||
Net income (non-controlling interests) | (105.3 | ) | (73.1 | ) | (16.3 | ) | (194.7 | ) | ||||||||
Net income (controlling interest) | $ | 90.2 | $ | 65.5 | $ | 9.2 | $ | 164.9 | ||||||||
Total assets | $ | 2,836.20 | $ | 1,920.60 | $ | 462.1 | $ | 5,218.90 | ||||||||
Goodwill | $ | 1,071.40 | $ | 785 | $ | 260.9 | $ | 2,117.30 | ||||||||
Equity method investments in Affiliates | $ | 490.6 | $ | 75.6 | $ | 49.6 | $ | 615.8 | ||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 861.3 | $ | 774.4 | $ | 169.8 | $ | 1,805.50 | ||||||||
Operating expenses: | ||||||||||||||||
Depreciation, intangible amortization and impairments | 75.4 | 128.9 | 9.8 | 214.1 | ||||||||||||
Other operating expenses | 554.2 | 526.5 | 110.3 | 1,191.00 | ||||||||||||
629.6 | 655.4 | 120.1 | 1,405.10 | |||||||||||||
Operating income | 231.7 | 119 | 49.7 | 400.4 | ||||||||||||
Income from equity method investments | 103.9 | 12.7 | 13.1 | 129.7 | ||||||||||||
Other non-operating (income) and expenses: | ||||||||||||||||
Investment and other (income) loss | (13.6 | ) | (6.6 | ) | (1.8 | ) | (22.0 | ) | ||||||||
Interest expense | 50.7 | 24 | 8.3 | 83 | ||||||||||||
Imputed interest and contingent payment arrangements | (8.1 | ) | (19.5 | ) | 1.5 | (26.1 | ) | |||||||||
29 | (2.1 | ) | 8 | 34.9 | ||||||||||||
Income before income taxes | 306.6 | 133.8 | 54.8 | 495.2 | ||||||||||||
Income taxes | 63.7 | 10.7 | 9.4 | 83.8 | ||||||||||||
Net income | 242.9 | 123.1 | 45.4 | 411.4 | ||||||||||||
Net income (non-controlling interests) | (116.9 | ) | (95.8 | ) | (24.7 | ) | (237.4 | ) | ||||||||
Net income (controlling interest) | $ | 126 | $ | 27.3 | $ | 20.7 | $ | 174 | ||||||||
Total assets | $ | 3,176.50 | $ | 2,354.80 | $ | 655.8 | $ | 6,187.10 | ||||||||
Goodwill | $ | 1,078.50 | $ | 939.5 | $ | 337.2 | $ | 2,355.20 | ||||||||
Equity method investments in Affiliates | $ | 879.6 | $ | 81.2 | $ | 70.5 | $ | 1,031.30 | ||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 948.7 | $ | 1,023.00 | $ | 217.1 | 2,188.80 | |||||||||
Operating expenses: | ||||||||||||||||
Depreciation, intangible amortization and impairments | 82.3 | 47.4 | 12.5 | 142.2 | ||||||||||||
Other operating expenses | 620.5 | 661.2 | 130.8 | 1,412.50 | ||||||||||||
702.8 | 708.6 | 143.3 | 1,554.70 | |||||||||||||
Operating income | 245.9 | 314.4 | 73.8 | 634.1 | ||||||||||||
Income from equity method investments | 263.9 | 16.6 | 27.3 | 307.8 | ||||||||||||
Other non-operating (income) and expenses: | ||||||||||||||||
Investment and other (income) loss | (23.9 | ) | (15.3 | ) | (1.6 | ) | (40.8 | ) | ||||||||
Interest expense | 51 | 27.7 | 8.6 | 87.3 | ||||||||||||
Imputed interest and contingent payment arrangements | 8.9 | 20.8 | 2 | 31.7 | ||||||||||||
36 | 33.2 | 9 | 78.2 | |||||||||||||
Income before income taxes | 473.8 | 297.8 | 92.1 | 863.7 | ||||||||||||
Income taxes | 117.5 | 56.3 | 20.3 | 194.1 | ||||||||||||
Net income | 356.3 | 241.5 | 71.8 | 669.6 | ||||||||||||
Net income (non-controlling interests) | (136.4 | ) | (138.1 | ) | (34.6 | ) | (309.1 | ) | ||||||||
Net income (controlling interest) | $ | 219.9 | $ | 103.4 | $ | 37.2 | $ | 360.5 | ||||||||
Total assets | $ | 3,196.50 | $ | 2,448.40 | $ | 673.9 | $ | 6,318.80 | ||||||||
Goodwill | $ | 1,076.30 | $ | 928.1 | $ | 337.3 | $ | 2,341.70 | ||||||||
Equity method investments in Affiliates | $ | 942.6 | $ | 77.7 | $ | 103 | $ | 1,123.30 | ||||||||
Business_and_Summary_of_Signif2
Business and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Office equipment and furniture and fixtures [Member] | Minimum [Member] | ' |
Fixed Assets | ' |
Estimated useful life | '3 years |
Office equipment and furniture and fixtures [Member] | Maximum [Member] | ' |
Fixed Assets | ' |
Estimated useful life | '10 years |
Computer software [Member] | Maximum [Member] | ' |
Fixed Assets | ' |
Estimated useful life | '3 years |
Building [Member] | ' |
Fixed Assets | ' |
Estimated useful life | '39 years |
Investments_in_Marketable_Secu2
Investments in Marketable Securities - Narrative (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Cost of investments in marketable securities, gross unrealized gains and losses | ' | ' |
Total investment | $157.90 | $128.90 |
Investments_in_Marketable_Secu3
Investments in Marketable Securities - Summary of cost, gross unrealized gains, gross unrealized losses and fair value (Details) (Equity securities [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Equity securities [Member] | ' | ' |
Available-for-Sale | ' | ' |
Cost | $103.20 | $103.20 |
Unrealized Gains | 33.3 | 15.3 |
Unrealized Losses | -1.1 | -3.2 |
Fair Value | 135.4 | 115.3 |
Trading | ' | ' |
Cost | 17.9 | 10.3 |
Unrealized Gains | 4.6 | 6.5 |
Unrealized Losses | 0 | -3.2 |
Fair Value | $22.50 | $13.60 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Sponsored investment funds [Member] | ' | ' |
Variable Interest Entities | ' | ' |
Unconsolidated VIE Net Assets | $8,112.70 | $7,186.90 |
Carrying Value and Maximum Exposure to Loss | 1.7 | 0.8 |
Trust preferred vehicles [Member] | ' | ' |
Variable Interest Entities | ' | ' |
Unconsolidated VIE Net Assets | 9 | 9 |
Carrying Value and Maximum Exposure to Loss | $9 | $9 |
Senior_Bank_Debt_Details
Senior Bank Debt (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2013 | |
Line of Credit [Member] | Line of Credit [Member] | Senior unsecured revolving credit facility [Member] | |||
Deb Instrument [Line Items] | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | $1,250,000,000 |
Line of credit facility amount outstanding | ' | ' | 525,000,000 | 325,000,000 | ' |
Weighted average interest rate | 1.95% | 2.77% | ' | ' | ' |
Commitment fee amount | $3,200,000 | $3,700,000 | ' | ' | ' |
Senior_Notes_Details
Senior Notes (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 11, 2014 | |
senior_note | 2022 Senior Notes [Member] | 2042 Senior Notes [Member] | 2024 Senior Notes [Member] | ||
Subsequent Event [Member] | |||||
Debt Disclosure [Abstract] | ' | ' | ' | ' | ' |
Number of senior notes outstanding | 2 | ' | ' | ' | ' |
Deb Instrument [Line Items] | ' | ' | ' | ' | ' |
Par value | $730,800,000 | $730,800,000 | $140,000,000 | $200,000,000 | $400,000,000 |
Interest rate | ' | ' | 5.25% | 6.38% | 4.25% |
Convertible_Securities_Schedul
Convertible Securities - Schedule of carrying amount and fair value of convertible notes (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||
2008 senior convertible notes [Member] | 2008 senior convertible notes [Member] | Junior convertible trust preferred securities [Member] | 2007 junior convertible trust preferred securities [Member] | 2007 junior convertible trust preferred securities [Member] | 2006 junior convertible trust preferred securities [Member] | 2006 junior convertible trust preferred securities [Member] | |||||||||
junior_note | |||||||||||||||
Deb Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Repurchased face amount | ' | ' | $460,000,000 | ' | ' | ' | ' | ' | ' | ||||||
Interest rate | ' | ' | 3.95% | ' | ' | 5.15% | [1] | ' | 5.10% | [2] | ' | ||||
Repurchase amount | ' | ' | 641,300,000 | ' | ' | ' | ' | ' | ' | ||||||
Number of securities outstanding | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ||||||
Senior convertible securities, Carrying Value | ' | ' | 0 | [3] | 450,100,000 | [3] | ' | ' | ' | ' | ' | ||||
Junior convertible trust preferred securities, Carrying Value | 518,700,000 | 515,500,000 | ' | ' | ' | 301,200,000 | [1],[3],[4] | 299,400,000 | [3] | 217,500,000 | [2],[3],[4] | 216,100,000 | [3] | ||
Principal amount at maturity | $730,800,000 | $730,800,000 | $0 | [3] | $460,000,000 | [3] | ' | $430,800,000 | [1],[3] | $430,800,000 | [3] | $300,000,000 | [2],[3] | $300,000,000 | [3] |
Debt instrument term | ' | ' | ' | ' | '30 years | ' | ' | ' | ' | ||||||
[1] | The Company may redeem the 2007 junior convertible trust preferred securities if the closing price of the Company's common stock exceeds $260 per share for 20 trading days in a period of 30 consecutive trading days. | ||||||||||||||
[2] | On February 13, 2014, we delivered a notice to redeem all of our outstanding 2006 convertible trust preferred securities. In lieu of redemption, holders of the 2006 junior convertible trust preferred securities may elect to convert their securities into a defined number of shares. Upon conversion, holders will receive cash or shares of our common stock, or a combination thereof, at our election. | ||||||||||||||
[3] | Carrying value is accreted to the principal amount at maturity over an expected life of 30B years for each of the junior convertible trust preferred securities. | ||||||||||||||
[4] | The carrying value is accreted to the principal amount at maturity over an expected life of 30 years for each of the junior convertible trust preferred securities. |
Convertible_Securities_Schedul1
Convertible Securities- Schedule of principal terms of convertible notes (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Debt Instrument [Line Items] | ' | ' | ||
Par value | $730,800,000 | $730,800,000 | ||
Junior convertible trust preferred securities, Carrying Value | 518,700,000 | 515,500,000 | ||
Deferred tax liability from excess interest expense calculation | 12,900,000 | ' | ||
Junior convertible trust preferred securities [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt instrument term | '30 years | ' | ||
2006 Junior Convertible Trust Preferred Securities [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Par value | 300,000,000 | [1],[2] | 300,000,000 | [1] |
Junior convertible trust preferred securities, Carrying Value | 217,500,000 | [1],[2],[3] | 216,100,000 | [1] |
Denomination | 50 | [2] | ' | |
Current conversion rate | 0.333 | [2] | ' | |
Current conversion price | $150 | [2] | ' | |
Stated coupon | 5.10% | [2] | ' | |
Tax deduction rate(4) | 7.50% | [2],[4] | ' | |
Redemption of debt | 8,100,000 | ' | ||
2007 Junior Convertible Trust Preferred Securities [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Par value | 430,800,000 | [1],[5] | 430,800,000 | [1] |
Junior convertible trust preferred securities, Carrying Value | 301,200,000 | [1],[3],[5] | 299,400,000 | [1] |
Denomination | 50 | [5] | ' | |
Current conversion rate | 0.25 | [5] | ' | |
Current conversion price | $200 | [5] | ' | |
Stated coupon | 5.15% | [5] | ' | |
Tax deduction rate(4) | 8.00% | [4],[5] | ' | |
Price per share that must be exceeded for conversion | $260 | ' | ||
Trading days | 20 | ' | ||
Consecutive trading days | '30 days | ' | ||
2008 senior convertible notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Par value | 0 | [1] | 460,000,000 | [1] |
Stated coupon | 3.95% | ' | ||
Deferred tax liability from excess interest expense calculation reclassified to stockholders' equity | $50,600,000 | ' | ||
[1] | Carrying value is accreted to the principal amount at maturity over an expected life of 30B years for each of the junior convertible trust preferred securities. | |||
[2] | On February 13, 2014, we delivered a notice to redeem all of our outstanding 2006 convertible trust preferred securities. In lieu of redemption, holders of the 2006 junior convertible trust preferred securities may elect to convert their securities into a defined number of shares. Upon conversion, holders will receive cash or shares of our common stock, or a combination thereof, at our election. | |||
[3] | The carrying value is accreted to the principal amount at maturity over an expected life of 30 years for each of the junior convertible trust preferred securities. | |||
[4] | These convertible securities are considered contingent payment debt instruments under federal income tax regulations, which require the Company to deduct interest in an amount greater than its reported Interest expense. These deductions result in annual deferred tax liabilities of approximately $12.9 million ($8.1 million assuming the redemption of the 2006 convertible trust preferred securities). These deferred tax liabilities will be reclassified directly to stockholders' equity if the Company's common stock is trading above certain thresholds at the time of the conversion of the securities. In 2013 , $50.6 million was reclassified to stockholders' equity related to the repurchase of the 2008 senior convertible notes. | |||
[5] | The Company may redeem the 2007 junior convertible trust preferred securities if the closing price of the Company's common stock exceeds $260 per share for 20 trading days in a period of 30 consecutive trading days. |
Forward_Equity_Sale_Agreement_
Forward Equity Sale Agreement (Details) (USD $) | 12 Months Ended | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity Contract [Member] | Amended and restated forward equity sale agreement [Member] | ||
Forward equity sale agreement | ' | ' | ' |
Value of common stock to sell under each agreement, maximum | ' | ' | $400 |
Notional amount sold | 77 | ' | 147.2 |
Average share price (in dollars per share) | $185.56 | ' | $121.37 |
Notional Amount | ' | $70.20 | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Schedule of interest rate swap agreements (Details) (Interest rate swaps [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2010 |
Counterparty A paying 1.67% interest [Member] | ' |
Derivative financial instruments | ' |
Notional Amount | $25 |
Paying | 1.67% |
Receiving | '3-Month LIBOR |
Counterparty A paying 1.65% interest [Member] | ' |
Derivative financial instruments | ' |
Notional Amount | 25 |
Paying | 1.65% |
Receiving | '3-Month LIBOR |
Counterparty B paying 1.59% interest [Member] | ' |
Derivative financial instruments | ' |
Notional Amount | 25 |
Paying | 1.59% |
Receiving | '3-Month LIBOR |
Counterparty B paying 2.14% interest [Member] | ' |
Derivative financial instruments | ' |
Notional Amount | $25 |
Paying | 2.14% |
Receiving | '3-Month LIBOR |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Schedule of amount of derivative instrument gains and (losses) before taxes (Details) (Cash Flow Hedges [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of the location and amount of derivative instrument gains and losses (before taxes) reported in the Consolidated Statements of Income | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income | $1.50 | ($1.10) | ($9.70) |
Interest rate swaps [Member] | ' | ' | ' |
Summary of the location and amount of derivative instrument gains and losses (before taxes) reported in the Consolidated Statements of Income | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 1.5 | -1.1 | -5.4 |
Treasury rate locks [Member] | ' | ' | ' |
Summary of the location and amount of derivative instrument gains and losses (before taxes) reported in the Consolidated Statements of Income | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income | $0 | $0 | ($4.30) |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Narrative (Details) (Interest rate swaps [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Interest rate swaps [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Collateral posted | $3.60 | ' |
Fair value of derivative assets | $2.50 | $4 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Scenario, Forecast [Member] | Pantheon's prior owner [Member] | ||
Commitments and Contingencies | ' | ' | ' |
Co-investment commitments in partnership | $62.90 | ' | ' |
Reimbursable amount of investment commitments | ' | ' | 29 |
Acquisition agreements contingency liability | 474.1 | ' | ' |
Expected payments to settle contingent obligations | 75 | 0 | ' |
Expected payments related to equity method investments | 151 | ' | ' |
Net present value of expected payments to settle contingent obligations | $50.20 | ' | ' |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of fair value of financial assets and liabilities measured on a recurring basis (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Financial Assets | ' | ' | ||
Other investments | $214.10 | $187.80 | ||
Financial Liabilities | ' | ' | ||
Level 1 to Level 2 transfers | 0 | 2 | ||
Fair value measured on a recurring basis [Member] | Fair value [Member] | ' | ' | ||
Financial Assets | ' | ' | ||
Cash equivalents | 39 | 13.5 | ||
Trading securities | 22.5 | [1] | 13.6 | [1] |
Available-for-sale securities | 135.4 | [1] | 115.3 | [1] |
Other investments | 164.3 | 155.4 | ||
Financial Liabilities | ' | ' | ||
Contingent payment arrangements | 50.2 | [2] | 31 | [2] |
Obligations to related parties | 76.9 | [3] | 77.8 | [3] |
Interest rate derivatives | 2.5 | [4] | 4 | [4] |
Fair value measured on a recurring basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Financial Assets | ' | ' | ||
Cash equivalents | 39 | 13.5 | ||
Trading securities | 22.5 | [1] | 13.6 | [1] |
Available-for-sale securities | 135.4 | [1] | 115.3 | [1] |
Other investments | 14.1 | 15.7 | ||
Financial Liabilities | ' | ' | ||
Contingent payment arrangements | 0 | [2] | 0 | [2] |
Obligations to related parties | 0 | [3] | 0 | [3] |
Interest rate derivatives | 0 | [4] | 0 | [4] |
Fair value measured on a recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Financial Assets | ' | ' | ||
Cash equivalents | 0 | 0 | ||
Trading securities | 0 | [1] | 0 | [1] |
Available-for-sale securities | 0 | [1] | 0 | [1] |
Other investments | 18.4 | 20.8 | ||
Financial Liabilities | ' | ' | ||
Contingent payment arrangements | 0 | [2] | 0 | [2] |
Obligations to related parties | 0 | [3] | 0 | [3] |
Interest rate derivatives | 2.5 | [4] | 4 | [4] |
Fair value measured on a recurring basis [Member] | Significant Other Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Financial Assets | ' | ' | ||
Cash equivalents | 0 | 0 | ||
Trading securities | 0 | [1] | 0 | [1] |
Available-for-sale securities | 0 | [1] | 0 | [1] |
Other investments | 131.8 | 118.9 | ||
Financial Liabilities | ' | ' | ||
Contingent payment arrangements | 50.2 | [2] | 31 | [2] |
Obligations to related parties | 76.9 | [3] | 77.8 | [3] |
Interest rate derivatives | $0 | [4] | $0 | [4] |
[1] | Principally investments in equity securities. | |||
[2] | Net present value of expected payments under contingent payment arrangements are reported in Other liabilities. | |||
[3] | Obligations to related parties are presented within Other liabilities. | |||
[4] | Interest rate derivatives are presented within Other liabilities. |
Fair_Value_Measurements_Schedu1
Fair Value Measurements - Schedule of changes in Level 3 financial assets and liabilities (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Other Investments [Member] | ' | ' | ||
Changes in level 3 assets and liabilities | ' | ' | ||
Balance, beginning of period | $118.90 | $103.40 | ||
Net gains/losses | 12.3 | [1] | 7.8 | [1] |
Purchases and issuances | 18 | 18.8 | ||
Settlements and reductions | -17.4 | -11.1 | ||
Net transfers in and/or out of Level 3 | 0 | 0 | ||
Balance, end of period | 131.8 | 118.9 | ||
Net unrealized gains/losses relating to instruments still held at the reporting date | 16.5 | 11 | ||
Contingent Payment Arrangements [Member] | ' | ' | ||
Changes in level 3 assets and liabilities | ' | ' | ||
Balance, beginning of period | 31 | 87.1 | ||
Net gains/losses | 19.2 | [2] | -40.8 | [2] |
Purchases and issuances | 0 | 24.8 | ||
Settlements and reductions | 0 | -40.1 | ||
Net transfers in and/or out of Level 3 | 0 | 0 | ||
Balance, end of period | 50.2 | 31 | ||
Net unrealized gains/losses relating to instruments still held at the reporting date | 19.2 | -13.5 | ||
Obligations to related parties [Member] | ' | ' | ||
Changes in level 3 assets and liabilities | ' | ' | ||
Balance, beginning of period | 77.8 | 92 | ||
Net gains/losses | 6.2 | [3] | 1.8 | [3] |
Purchases and issuances | 62.9 | 32.1 | ||
Settlements and reductions | -70 | -48.1 | ||
Net transfers in and/or out of Level 3 | 0 | 0 | ||
Balance, end of period | 76.9 | 77.8 | ||
Net unrealized gains/losses relating to instruments still held at the reporting date | $2.20 | $0.80 | ||
[1] | Gains and losses on Other investments are recorded in Investment and other income. | |||
[2] | Accretion and changes to payment estimates under the Company's contingent payment arrangements are recorded in Imputed interest expense and contingent payment arrangements and foreign currency translation adjustments related to such arrangements are recorded as Other comprehensive income. | |||
[3] | Gains and losses associated with agreements to repurchase Affiliate equity are recorded in Imputed interest expense and contingent payment arrangements. Gains and losses related to liabilities offsetting certain investments are recorded in Investment and other income. |
Fair_Value_Measurements_Schedu2
Fair Value Measurements - Schedule of quantitative information (Details) (Discounted cash flow, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Contingent Payment Arrangements [Member] | ' | ' |
Quantitative information for Level 3 Fair Value Measurements Liabilities | ' | ' |
Fair value Liabilities | 50.2 | 31 |
Contingent Payment Arrangements [Member] | Minimum [Member] | ' | ' |
Quantitative information for Level 3 Fair Value Measurements Liabilities | ' | ' |
Growth rate (as a percent) | 3.00% | 6.00% |
Discount rate (as a percent) | 14.00% | 14.00% |
Contingent Payment Arrangements [Member] | Maximum [Member] | ' | ' |
Quantitative information for Level 3 Fair Value Measurements Liabilities | ' | ' |
Growth rate (as a percent) | 11.00% | 12.00% |
Discount rate (as a percent) | 18.00% | 18.00% |
Affiliate equity repurchase obligations [Member] | ' | ' |
Quantitative information for Level 3 Fair Value Measurements Liabilities | ' | ' |
Fair value Liabilities | 4 | 9.4 |
Growth rate (as a percent) | 8.00% | ' |
Discount rate (as a percent) | 15.00% | ' |
Affiliate equity repurchase obligations [Member] | Minimum [Member] | ' | ' |
Quantitative information for Level 3 Fair Value Measurements Liabilities | ' | ' |
Growth rate (as a percent) | ' | -10.00% |
Discount rate (as a percent) | ' | 15.00% |
Affiliate equity repurchase obligations [Member] | Maximum [Member] | ' | ' |
Quantitative information for Level 3 Fair Value Measurements Liabilities | ' | ' |
Growth rate (as a percent) | ' | 17.00% |
Discount rate (as a percent) | ' | 24.00% |
Fair_Value_Measurements_Schedu3
Fair Value Measurements - Schedule of investments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
NAV of investments at fair value | ' | ' | ||
Fair Value | $214.10 | $187.80 | ||
Unfunded Commitments | 62.9 | 75.4 | ||
Private equity fund-of-funds [Member] | ' | ' | ||
NAV of investments at fair value | ' | ' | ||
Fair Value | 131.8 | [1] | 118.9 | [1] |
Unfunded Commitments | 62.9 | [1] | 75.4 | [1] |
Other funds [Member] | ' | ' | ||
NAV of investments at fair value | ' | ' | ||
Fair Value | 82.3 | [2] | 68.9 | [2] |
Unfunded Commitments | $0 | [2] | $0 | [2] |
[1] | These funds primarily invest in a broad range of private equity funds, as well as making direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds. | |||
[2] | These are multi-disciplinary funds that invest across various asset classes and strategies including long/short equity, credit and real estate. Investments are generally redeemable on a daily or quarterly basis. |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of other financial liabilities not carried at fair value (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Junior convertible trust preferred securities | $518.70 | $515.50 |
Carrying Amount [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior notes | 340 | 340 |
Convertible securities | 0 | 450.1 |
Junior convertible trust preferred securities | 518.7 | 515.5 |
Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior notes | 325 | 351.8 |
Convertible securities | 0 | 510.6 |
Junior convertible trust preferred securities | $963.90 | $719.90 |
Business_Combinations_Narrativ
Business Combinations Narrative (Details) (New Affiliates [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
affiliate | ||
Business Acquisition [Line Items] | ' | ' |
Number of businesses acquired | ' | 2 |
Tax deduction period for goodwill and client relationships amortization expense | ' | '15 years |
Maximum contingent payments to be made | ' | $75,000,000 |
Contingencies amount to be recognized after period of acquisition, minimum | ' | '3 years |
Contingencies amount to be recognized after period of acquisition, maximum | ' | '5 years |
New affiliate investments contributed revenue | 227,900,000 | 88,000,000 |
New affiliate investments contributed earnings | $32,100,000 | $14,500,000 |
Mutual Fund [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Goodwill percentage attributable to segments | ' | 67.00% |
High Net Worth [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Goodwill percentage attributable to segments | ' | 32.90% |
Institutional [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Goodwill percentage attributable to segments | ' | 0.10% |
Business_Combinations_Schedule
Business Combinations Schedule of purchase price allocation for investments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 |
In Millions, unless otherwise specified | New Affiliates [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Consideration paid | ' | ' | ' | $417.80 |
Non-controlling interests | ' | ' | ' | 247.6 |
Contingent payment obligations | ' | ' | ' | 24.8 |
Enterprise value | ' | ' | ' | 690.2 |
Acquired client relationships | ' | ' | ' | 452.6 |
Tangible assets, net | ' | ' | ' | 11.7 |
Goodwill | 2,341.70 | 2,355.20 | 2,117.30 | 225.9 |
Total | ' | ' | ' | $690.20 |
Business_Combinations_Schedule1
Business Combinations Schedule of unaudited pro forma financial results (Details) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Business Combinations [Abstract] | ' | ' |
Revenue | $1,881 | $1,810.90 |
Net income (controlling interest) | $186 | $179.60 |
Earnings per sharebbasic (in dollars per share) | $3.60 | $3.47 |
Earnings per sharebdiluted (in dollars per share) | $3.51 | $3.39 |
Goodwill_and_Acquired_Client_R2
Goodwill and Acquired Client Relationships - Schedule of changes in goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in goodwill | ' | ' |
Balance at the beginning of the period | $2,355.20 | $2,117.30 |
Goodwill acquired | 0 | 225.9 |
Foreign currency translation | -13.5 | 12 |
Balance at the end of the period | 2,341.70 | 2,355.20 |
Institutional [Member] | ' | ' |
Changes in goodwill | ' | ' |
Balance at the beginning of the period | 1,078.50 | 1,071.40 |
Goodwill acquired | 0 | 0.3 |
Foreign currency translation | -2.2 | 6.8 |
Balance at the end of the period | 1,076.30 | 1,078.50 |
Mutual Fund [Member] | ' | ' |
Changes in goodwill | ' | ' |
Balance at the beginning of the period | 939.5 | 785 |
Goodwill acquired | 0 | 151.3 |
Foreign currency translation | -11.4 | 3.2 |
Balance at the end of the period | 928.1 | 939.5 |
High Net Worth [Member] | ' | ' |
Changes in goodwill | ' | ' |
Balance at the beginning of the period | 337.2 | 260.9 |
Goodwill acquired | 0 | 74.3 |
Foreign currency translation | 0.1 | 2 |
Balance at the end of the period | $337.30 | $337.20 |
Goodwill_and_Acquired_Client_R3
Goodwill and Acquired Client Relationships - Schedule of changes in and the components of acquired client relationships (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Net Book Value | ' | ' |
Total, Net book value balance at the beginning of the period | $1,585.50 | $1,321.10 |
Total, New investments | 0 | 452.6 |
Total, Amortization and Impairment | -128.2 | -200 |
Total, Foreign currency translation | 3.4 | 11.8 |
Total, Transfers and other | 0 | 0 |
Total, Net book value balance at the end of the period | 1,460.70 | 1,585.50 |
Acquired client relationships [Member] | ' | ' |
Definite-lived | ' | ' |
Gross book value balance at the beginning of the period | 1,109.60 | 970.5 |
Accumulated amortization balance at the beginning of the period | -383.5 | -317 |
Net book value balance at the beginning of the period | 726.1 | 653.5 |
New Investments | 0 | 131.1 |
Amortization and impairments | -128.2 | -97.8 |
Foreign currency translation | -1.2 | 1.1 |
Gross Book Value, Definite-lived, Transfers and other | -68.9 | 6.9 |
Accumulated Amortization, Definite-lived, Transfers and other | 68.9 | 31.3 |
Net Book Value, Definite-lived, Transfers and other | 0 | 38.2 |
Gross book value balance at the end of the period | 1,039.50 | 1,109.60 |
Accumulated amortization balance at the end of the period | -442.8 | -383.5 |
Net book value balance at the end of the period | 596.7 | 726.1 |
Indefinite-lived | ' | ' |
Net book value balance at the beginning of the period | 859.4 | 667.6 |
New investments | 0 | 321.5 |
Amortization and Impairment | 0 | -102.2 |
Foreign currency translation | 4.6 | 10.7 |
Transfers and other | 0 | -38.2 |
Net book value balance at the end of the period | $864 | $859.40 |
Goodwill_and_Acquired_Client_R4
Goodwill and Acquired Client Relationships - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Acquired client relationships [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Impairment | $0 | $102.20 | ' |
Fair value | 864 | 859.4 | 667.6 |
Weighted average life | '10 years | ' | ' |
Future annual amortization expense | 100 | ' | ' |
Number of future annual periods of amortization expense presented | '5 years | ' | ' |
Acquired Client Relationships Mutual Fund Management Contract [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Impairment | 0 | 102.2 | ' |
Fair value | ' | $38.20 | ' |
Weighted average annual growth rate | ' | 10.00% | ' |
Discount rate | ' | 15.00% | ' |
Equity_Investments_in_Affiliat2
Equity Investments in Affiliates - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Equity Method Investments | ' | ' | ' |
Amortization expense during the period | $128.20 | $200 | $97.70 |
Undistributed earnings from equity method investments | 197.6 | ' | ' |
Acquired client relationships under equity method investments | ' | ' | ' |
Schedule of Equity Method Investments | ' | ' | ' |
Weighted average life | '11 years | ' | ' |
Amortization expense during the period | $41.70 | $36.90 | ' |
Equity_Investments_in_Affiliat3
Equity Investments in Affiliates - Schedule of annual amortization expense attributable to current equity method Affiliates for next five years (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
2014 | $20.70 |
2015 | 12.4 |
2016 | 9.8 |
2017 | 9.8 |
2018 | $9.80 |
Equity_Investments_in_Affiliat4
Equity Investments in Affiliates - Schedule of financial information for Affiliates accounted for under the equity method (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Equity Method Investments and Joint Ventures [Abstract] | ' | ' | ' | |||
Revenue | $1,589.60 | [1] | $1,005.40 | [1] | $581 | [1] |
Net income | 1,321.90 | 783.3 | 387.9 | |||
Current assets | 19,084.40 | [2] | 11,957.80 | [2] | ' | |
Noncurrent assets | 55.3 | 34.7 | ' | |||
Current liabilities | 1,674.50 | 1,361.50 | ' | |||
Noncurrent liabilities and Non-controlling interest | $16,089 | $9,857.60 | ' | |||
[1] | Revenue includes advisory fees for asset management services, investment income and dividends from consolidated investment partnerships. | |||||
[2] | The Company is not entitled to assets held by investors that are unrelated to the Company including consolidated investment partnerships. |
Fixed_Assets_and_Lease_Commitm2
Fixed Assets and Lease Commitments - Schedule of fixed assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fixed assets | ' | ' |
Fixed assets, at cost | $179.90 | $169.40 |
Accumulated depreciation and amortization | -87.6 | -87.9 |
Fixed assets, net | 92.3 | 81.5 |
Building and leasehold improvements [Member] | ' | ' |
Fixed assets | ' | ' |
Fixed assets, at cost | 78.5 | 74.7 |
Equipment [Member] | ' | ' |
Fixed assets | ' | ' |
Fixed assets, at cost | 36.5 | 38.9 |
Furniture and fixtures [Member] | ' | ' |
Fixed assets | ' | ' |
Fixed assets, at cost | 15.4 | 16.3 |
Land and improvements [Member] | ' | ' |
Fixed assets | ' | ' |
Fixed assets, at cost | 18.9 | 18.1 |
Software [Member] | ' | ' |
Fixed assets | ' | ' |
Fixed assets, at cost | $30.60 | $21.40 |
Fixed_Assets_and_Lease_Commitm3
Fixed Assets and Lease Commitments - Schedule of aggregate future minimum payments for operating leases (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Fixed Assets and Lease Commitments [Abstract] | ' |
2014 | $30.10 |
2015 | 29.2 |
2016 | 23.5 |
2017 | 21.4 |
2018 | 19.8 |
Thereafter | $69.50 |
Fixed_Assets_and_Lease_Commitm4
Fixed Assets and Lease Commitments - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fixed Assets and Lease Commitments [Abstract] | ' | ' | ' |
Consolidated rent expense | $30.30 | $30.50 | $29.90 |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued compensation | $187.90 | $138.80 |
Unsettled fund share payables | 84.6 | 39.8 |
Accrued income taxes | 73 | 13.7 |
Accrued professional fees | 33.4 | 28.7 |
Accrued interest | 11.8 | 19.3 |
Accrued distributions | 23.6 | 13.2 |
Accounts payable | 23.5 | 59.5 |
Other | 76.9 | 50.3 |
Accounts payable and accrued liabilities | $514.70 | $363.30 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Affiliate partners [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accounts Payable and Accrued Liabilities [Member] | ' | ' |
Related Party Transactions | ' | ' |
Payable to related parties | $23.60 | $13.20 |
Other Assets [Member] | ' | ' |
Related Party Transactions | ' | ' |
Receivables from related parties | 21.8 | 36.9 |
Other Liabilities [Member] | ' | ' |
Related Party Transactions | ' | ' |
Payable to related parties | $133.40 | $133.60 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stockholders' equity | ' | ' | ' |
Common stock, shares authorized | 153 | 153 | ' |
Share repurchase activity | ' | ' | ' |
Shares Repurchase (in shares) | 0.1 | 0.6 | 0.7 |
Preferred Stock [Member] | ' | ' | ' |
Stockholders' equity | ' | ' | ' |
Preferred stock, shares authorized | 5 | ' | ' |
Common Stock [Member] | ' | ' | ' |
Stockholders' equity | ' | ' | ' |
Maximum number of shares yet to be repurchased | 2.2 | ' | ' |
Share repurchase activity | ' | ' | ' |
Shares Repurchase (in shares) | 0.1 | 0.6 | 0.7 |
Average Price (in dollars per share) | 184.89 | 107.44 | 83.63 |
Voting Common Stock [Member] | ' | ' | ' |
Stockholders' equity | ' | ' | ' |
Common stock, shares authorized | 150 | ' | ' |
Class B Non-Voting Common Stock [Member] | ' | ' | ' |
Stockholders' equity | ' | ' | ' |
Common stock, shares authorized | 3 | ' | ' |
ShareBased_Compensation_Stock_
Share-Based Compensation - Stock Options Narrative (Details) (Stock Option and Incentive Plan [Member], USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Fair value | $1 | $2.50 | $16.80 |
Weighted average fair value of options granted (in dollars per share) | $61.82 | $40.43 | $30.27 |
Exercises in period total intrinsic value | 77.4 | 86.8 | 35.4 |
Intrinsic value of exercisable options | $341.90 | ' | ' |
Options available for future grant under the Company's option plans (in shares) | 3.4 | ' | ' |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Expiration term | '7 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Expiration term | '10 years | ' | ' |
ShareBased_Compensation_Schedu
Share-Based Compensation - Schedule of transactions of the Company's stock options (Details) (Stock Option and Incentive Plan [Member], USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Stock Option and Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Stock Options, Unexercised options outstanding, Beginning balance | 3.8 |
Weighted Average Exercise Price, Unexercised options outstanding, Beginning balance | $74.04 |
Stock Options, Options granted | 0 |
Weighted Average Exercise Price, Options granted | $191.75 |
Stock Options, Options exercised | -0.8 |
Weighted Average Exercise Price, Options exercised | $62.59 |
Stock Options, Options forfeited | 0 |
Weighted average Exercise Price, Options forfeited | $81.49 |
Stock Options, Unexercised options outstanding, Ending balance | 3 |
Weighted Average Exercise Price, Unexercised options outstanding, Ending balance | $77.71 |
Weighted Average Remaining Contractual Life (years), Unexercised options outstanding, Ending balance | '3 years 4 months 24 days |
Stock Options, Exercisable, Ending balance | 2.4 |
Weighted Average Exercise Price, Exercisable, Ending balance | $73.56 |
Weighted Average Remaining Contractual Life (years), Exerciable, Ending balance | '3 years 2 months 12 days |
ShareBased_Compensation_Schedu1
Share-Based Compensation - Schedule of assumptions used to determine fair value of options granted (Details) (Stock Option and Incentive Plan [Member]) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Stock Option and Incentive Plan [Member] | ' | ' | ' | |||
Assumptions used to determine fair value of options granted | ' | ' | ' | |||
Dividend yield | 0.00% | 0.00% | 0.00% | |||
Expected volatility | 34.40% | [1] | 36.80% | [1] | 33.10% | [1] |
Risk-free interest rate | 1.50% | [2] | 0.70% | [2] | 1.30% | [2] |
Expected life of options | '5 years | [3] | '5 years | [3] | '4 years 9 months 18 days | [3] |
Forfeiture rate | 0.00% | [3] | 1.40% | [3] | 2.40% | [3] |
[1] | Based on historical and implied volatility. | |||||
[2] | Based on the U.S.B Treasury yield curve in effect at the date of grant. | |||||
[3] | Based on the Company's historical data and expected exercise behavior. |
ShareBased_Compensation_Restri
Share-Based Compensation - Restricted Stock Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total compensation cost not yet recognized period for recognition | ' | '3 years | ' |
Restricted stock | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award fair value | $53.50 | $18.10 | $3.30 |
Vesting period | '6 years | ' | ' |
Units granted | 300,000 | ' | ' |
Market condition 1 | 15.00% | ' | ' |
Market condition 2 | 25.00% | ' | ' |
Market condition 3 | 35.00% | ' | ' |
Expected volatility | 31.60% | ' | ' |
Risk-free interest rate | 2.00% | ' | ' |
Dividend yield | 0.00% | ' | ' |
Weighted average fair value (in dollars per share) | $144.70 | ' | ' |
Total compensation cost not yet recognized period for recognition | '4 years | ' | ' |
Options available for future grant under the Company's option plans (in shares) | 1,800,000 | ' | ' |
Restricted stock | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Restricted stock | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '8 years | ' | ' |
Restricted stock | Vesting Period 1 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Units granted | 200,000 | ' | ' |
Restricted stock | Vesting Period 2 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Units granted | 100,000 | ' | ' |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of transactions of the Company's restricted stock (Details) (Restricted stock, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted stock | ' |
Restricted Stock | ' |
Units outstanding at the beginning of the period | 400,000 |
Units granted | 300,000 |
Units vested | -200,000 |
Units forfeitured | 0 |
Units outstanding at the end of the period | 500,000 |
Weighted Average Grant Date Value | ' |
Units outstanding at the beginning of the period (in dollars per share) | $84.53 |
Units granted (in dollars per share) | $208.76 |
Units vested (in dollars per share) | $50.46 |
Units forfeitured (in dollars per share) | $94.83 |
Units outstanding at the end of the period (in dollars per share) | $176.38 |
ShareBased_Compensation_ShareB
Share-Based Compensation - Share-Based Incentive Compensation Narrative (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total compensation cost not yet recognized | $79.30 | $53.50 |
Total compensation cost not yet recognized period for recognition | ' | '3 years |
Stock Option and Incentive Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Cash received from exercise of stock options | 48.2 | 73.4 |
Tax benefit realized from exercise of stock options | 20.7 | 25.5 |
Excess tax benefit from exercise of stock options | $17.30 | $22 |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of recent share based compensation expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Share-Based Compensation Expense | $27.50 | $25.40 | $21.20 |
Tax Benefit | $10.60 | $9.60 | $8.10 |
Affiliate_Equity_Summary_of_af
Affiliate Equity Summary of affiliate equity compensation expense (Details) (Affiliated Entity [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Affiliated Entity [Member] | ' | ' | ' |
Affiliate Equity [Line Items] | ' | ' | ' |
Tax Benefit | $21.70 | $17 | $12 |
Affiliate Equity Compensation Expense | $72.30 | $60.40 | $38.10 |
Affiliate_Equity_Details
Affiliate Equity (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Affiliate Equity | ' | ' | ' |
Affiliate equity compensation expense attributable to noncontrolling interest | $15.90 | $16.30 | $6.80 |
Compensation expenses related to Affiliate equity | 68.2 | 85.3 | ' |
Compensation expenses related to Affiliate equity, attributable to controlling interest | $32.10 | $33 | ' |
Weighted average period of recognition | '4 years | ' | ' |
Affiliate_Equity_Schedule_of_t
Affiliate Equity - Schedule of the changes in redeemable non-controlling interests (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in redeemable non-controlling interests during the period | ' | ' |
Beginning balance | $477.50 | $451.80 |
Transactions in Redeemable non-controlling interests | -52.5 | -17.2 |
Changes in redemption value | 216.9 | 42.9 |
Ending balance | $641.90 | $477.50 |
Afilliate_Equity_Schedule_of_t
Afilliate Equity - Schedule of the effect of changes in the entity's ownership interest in its affiliates on the controlling interest's equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Affiliate Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (controlling interest) | $158.20 | $75.20 | $64.70 | $62.40 | $75 | $54.90 | $6.60 | $37.50 | $360.50 | $174 | $164.90 |
Increase (decrease) in controlling interest paid-in capital from the sale of Affiliate equity | ' | ' | ' | ' | ' | ' | ' | ' | -74 | -44 | -28.1 |
Change from Net income (controlling interest) and net transfers with non-controlling interests | ' | ' | ' | ' | ' | ' | ' | ' | $286.50 | $130 | $136.80 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
plan | |||
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Number of defined contribution plans | 3 | ' | ' |
Consolidated expenses related to benefit plans | $14.10 | $12.70 | $12 |
Income_Taxes_Schedule_of_incom
Income Taxes - Schedule of income tax provision attributable to controlling interests and to non-controlling interests (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Income tax provision | ' | ' | ' | |||
Current tax | $166.40 | $72.70 | $57.90 | |||
Deferred taxes | 27.7 | 11.1 | 35.2 | |||
Provision for income taxes | 194.1 | 83.8 | 93.1 | |||
Controlling Interests [Member] | ' | ' | ' | |||
Income tax provision | ' | ' | ' | |||
Current tax | 153.1 | 61 | 45 | |||
Intangible related deferred taxes | 38.1 | 22.7 | 43.2 | |||
Other deferred taxes | -6.2 | -12.1 | -4 | |||
Provision for income taxes | 185 | 71.6 | 84.2 | |||
Income before income taxes (controlling interest) | 545.5 | 245.6 | 249.1 | |||
Effective tax rate attributable to controlling interests | 33.90% | [1] | 29.20% | [1] | 33.80% | [1] |
Non-controlling interests [Member] | ' | ' | ' | |||
Income tax provision | ' | ' | ' | |||
Current tax | 13.3 | 11.7 | 12.9 | |||
Deferred taxes | -4.2 | 0.5 | -4 | |||
Provision for income taxes | $9.10 | $12.20 | $8.90 | |||
[1] | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Income_Taxes_Schedule_of_conso
Income Taxes - Schedule of consolidated provision for income taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $104.10 | $14.50 | $6.20 |
State | 21.1 | 14.2 | 11.2 |
Foreign | 41.2 | 44 | 40.5 |
Total current | 166.4 | 72.7 | 57.9 |
Deferred: | ' | ' | ' |
Federal | 38.1 | 19.8 | 46.8 |
State | 8.9 | 4.6 | 5 |
Foreign | -19.3 | -13.3 | -16.6 |
Total deferred | 27.7 | 11.1 | 35.2 |
Provision for income taxes | $194.10 | $83.80 | $93.10 |
Income_Taxes_Schedule_of_compo
Income Taxes - Schedule of components before income taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic | $604 | $238.60 | $243.80 |
International | 259.7 | 256.6 | 208.9 |
Total | $863.70 | $495.20 | $452.70 |
Income_Taxes_Schedule_of_effec
Income Taxes - Schedule of effective tax rate reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Tax at U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 2.80% | 3.50% | 1.40% |
Non-deductible expenses | 0.30% | 0.70% | 0.50% |
Valuation allowance | -0.30% | -4.70% | -0.10% |
Effect of foreign operations | -2.30% | -2.90% | 0.00% |
Foreign basis differences | -0.20% | -0.40% | -0.90% |
Effect of changes in tax law, rates | -1.40% | -2.00% | -2.10% |
Effect of income from non-controlling interests | -11.40% | -12.20% | -13.20% |
Total effective income tax rate | 22.50% | 17.00% | 20.60% |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Reduction in valuation allowance due to foreign tax credit carryforwards | ($1.60) | ($11.50) | ' |
Deferred tax benefit due to re-valuation of deferred taxes from a change in enacted tax rates in the United Kingdom | 11.2 | 7.3 | 7.6 |
Effect of changes in tax law, rates | 1.40% | 2.00% | 2.10% |
Temporary difference due to repatriation of assets from a sale or liquidation of the subsidiary | 47.7 | ' | ' |
Amount of deferred taxes not recognized | 17.9 | ' | ' |
State net operating loss carryforwards, expiration period | '15 years | ' | ' |
Foreign tax credit carryforwards, expiration period | '5 years | ' | ' |
Liability for uncertain tax positions including interest and related charges | 20.4 | 22.6 | 21.2 |
Accrued income tax interest and related charges | 1.7 | 2.2 | 1.6 |
Unrecognized tax benefits that, if recognized, would affect effective tax rate | 17.2 | 19.4 | 12.6 |
Reductions for prior years' tax provisions | 0.1 | 5.4 | 0 |
Additions based on prior years' tax positions | $0 | $5.20 | $0 |
Income_Taxes_Schedule_of_compo1
Income Taxes - Schedule of componenets of deferred tax assets and liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets | ' | ' |
State net operating loss carryforwards | $29.30 | $23.90 |
Deferred compensation | 29.1 | 23.9 |
Foreign tax credit carryforwards | 0 | 20.1 |
Tax benefit of uncertain tax positions | 16.2 | 17.6 |
Accrued expenses | 17.6 | 6 |
Foreign loss carryforwards | 9.1 | 1.5 |
Total deferred tax assets | 101.3 | 93 |
Valuation allowance | -36.6 | -21.3 |
Deferred tax assets, net of valuation allowance | 64.7 | 71.7 |
Deferred Tax Liabilities | ' | ' |
Intangible asset amortization | -241.3 | -238.2 |
Convertible securities interest | -144.7 | -189.2 |
Non-deductible intangible amortization | -101.5 | -120.1 |
Deferred revenue | -32.1 | -18.5 |
Other | -2 | -2.8 |
Total deferred tax liabilities | -521.6 | -568.8 |
Net deferred tax liability | ($456.90) | ($497.10) |
Income_Taxes_Schedule_of_recon
Income Taxes - Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of beginning and ending amount of unrecognized tax benefits | ' | ' | ' |
Beginning balance | $22.60 | $21.20 | $24.60 |
Additions based on current year tax positions | 4.1 | 5.9 | 4.8 |
Additions based on prior years' tax positions | 0 | 5.2 | 0 |
Reductions for prior years' tax provisions | -0.1 | -5.4 | 0 |
Settlements | 0 | 0 | -1.2 |
Reductions related to lapses of statutes of limitations | -5.4 | -4.6 | -6.7 |
Additions (reductions) related to foreign exchange rates | -0.8 | 0.3 | -0.3 |
Ending balance | $20.40 | $22.60 | $21.20 |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (controlling interest) | $158.20 | $75.20 | $64.70 | $62.40 | $75 | $54.90 | $6.60 | $37.50 | $360.50 | $174 | $164.90 |
Interest expense on convertible securities, net of taxes | ' | ' | ' | ' | ' | ' | ' | ' | 10.5 | 0 | 0 |
Net income (controlling interest), as adjusted | ' | ' | ' | ' | ' | ' | ' | ' | $371 | $174 | $164.90 |
Denominator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average shares outstanding - basic (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 53.1 | 51.7 | 51.8 |
Effect of dilutive instruments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options and other awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1.3 | 1.3 | 1.2 |
Forward sale (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0.3 | 0 | 0 |
Junior convertible securities (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 0 | 0 |
Average shares outstanding - diluted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 56.7 | 53 | 53 |
Earnings_Per_Share_Narrative_D
Earnings Per Share - Narrative (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Shares Repurchase (in shares) | 0.1 | 0.6 | 0.7 |
Earnings_Per_Share_Diluted_ear
Earnings Per Share - Diluted earnings per share calculations excluding the anti-dilutive effect of shares (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock options and other awards [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.1 | 0.7 | 1.2 |
Senior convertible securities [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2.1 | 3.6 | 3.6 |
Junior convertible trust preferred securities [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2.2 | 4.2 | 4.2 |
Forward equity sales [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0.2 | 0 |
Comprehensive_Income_Summary_o
Comprehensive Income - Summary of the tax effects allocated to each component of other comprehensive income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Comprehensive Income (Loss), Pre-Tax | ' | ' | ' |
Foreign currency translation adjustment, Pre-Tax | ($19.60) | $18.50 | ($10.20) |
Change in net realized and unrealized gain (loss) on derivative securities, Pre-Tax | 1.5 | -1.1 | -9.7 |
Change in net unrealized gain (loss) on investment securities, Pre-Tax | 19.5 | 21.6 | -56.6 |
Other comprehensive income (loss), Pre-Tax | 1.4 | 39 | -76.5 |
Other Comprehensive Income (Loss), Tax Expenses | ' | ' | ' |
Change in net realized and unrealized gain (loss) on derivative securities, Tax Benefit (Expense) | -0.5 | 0.4 | 3.8 |
Change in net unrealized gain (loss) on investment securities, Tax Benefit (Expense) | -8 | -8.1 | 22.2 |
Other comprehensive income (loss), Tax Benefit (Expense) | -8.5 | -7.7 | 26 |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | ' |
Foreign currency translation adjustment, Net of Tax | -19.6 | 18.5 | -10.2 |
Change in net realized and unrealized gain (loss) on derivative securities, net of tax | 1 | -0.7 | -5.9 |
Change in net unrealized gain (loss) on investment securities, Net of Tax | 11.5 | 13.5 | -34.4 |
Other comprehensive income (loss), Net of Tax | ($7.10) | $31.30 | ($50.50) |
Comprehensive_Income_Schedule_
Comprehensive Income - Schedule of components of accumulated other comprehensive income, net of taxes (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ' |
Beginning balance | $81.30 |
Other comprehensive income before reclassifications | -5.3 |
Amounts reclassified from other comprehensive income | -1.8 |
Net other comprehensive income | -7.1 |
Ending balance | 74.2 |
Foreign Currency Translation Adjustment [Member] | ' |
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ' |
Beginning balance | 76.2 |
Other comprehensive income before reclassifications | -19.6 |
Amounts reclassified from other comprehensive income | 0 |
Net other comprehensive income | -19.6 |
Ending balance | 56.6 |
Realized and Unrealized Losses on Derivative Securities [Member] | ' |
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ' |
Beginning balance | -2.9 |
Other comprehensive income before reclassifications | 1 |
Amounts reclassified from other comprehensive income | 0 |
Net other comprehensive income | 1 |
Ending balance | -1.9 |
Unrealized Gain (Loss) on Investment Securities [Member] | ' |
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ' |
Beginning balance | 8 |
Other comprehensive income before reclassifications | 13.3 |
Amounts reclassified from other comprehensive income | -1.8 |
Net other comprehensive income | 11.5 |
Ending balance | $19.50 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $594 | $551.60 | $541 | $502.20 | $491 | $467.30 | $429.60 | $417.60 | $2,188.80 | $1,805.50 | $1,704.80 |
Operating income | 153.1 | 169.1 | 161.4 | 150.5 | 126.9 | 139.7 | 25 | 108.8 | 634.1 | 400.4 | 486.1 |
Income before income taxes | 336.6 | 187.4 | 172.4 | 167.3 | 177.1 | 137.5 | 62.9 | 117.7 | 863.7 | 495.2 | 452.7 |
Net income (controlling interest) | $158.20 | $75.20 | $64.70 | $62.40 | $75 | $54.90 | $6.60 | $37.50 | $360.50 | $174 | $164.90 |
Earnings per share - diluted (in dollars per share) | $2.79 | $1.37 | $1.18 | $1.15 | $1.40 | $1.04 | $0.12 | $0.71 | $6.55 | $3.28 | $3.11 |
Segment_Information_Narrative_
Segment Information - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Channel | |||
Segment | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of operating segments | 3 | ' | ' |
Number of principal distribution channels | 3 | ' | ' |
Revenue attributable to clients domiciled outside the United States (as a percent) | 38.00% | 41.00% | 39.00% |
Segment_Information_Schedule_o
Segment Information - Schedule of segment information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statements of Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $594 | $551.60 | $541 | $502.20 | $491 | $467.30 | $429.60 | $417.60 | $2,188.80 | $1,805.50 | $1,704.80 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation, intangible amortization and impairments | ' | ' | ' | ' | ' | ' | ' | ' | 142.2 | 214.1 | 112.7 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,412.50 | 1,191 | 1,106 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,554.70 | 1,405.10 | 1,218.70 |
Operating income | 153.1 | 169.1 | 161.4 | 150.5 | 126.9 | 139.7 | 25 | 108.8 | 634.1 | 400.4 | 486.1 |
Income from equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | 307.8 | 129.7 | 72.7 |
Other non-operating (income) and expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment and other (income) loss | ' | ' | ' | ' | ' | ' | ' | ' | -40.8 | -22 | 5 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 87.3 | 83 | 73.8 |
Imputed interest and contingent payment arrangements | ' | ' | ' | ' | ' | ' | ' | ' | 31.7 | -26.1 | 27.3 |
Total non-operating (income) and expenses | ' | ' | ' | ' | ' | ' | ' | ' | 78.2 | 34.9 | 106.1 |
Income before income taxes | 336.6 | 187.4 | 172.4 | 167.3 | 177.1 | 137.5 | 62.9 | 117.7 | 863.7 | 495.2 | 452.7 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 194.1 | 83.8 | 93.1 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 669.6 | 411.4 | 359.6 |
Net income (non-controlling interests) | ' | ' | ' | ' | ' | ' | ' | ' | -309.1 | -237.4 | -194.7 |
Net income (controlling interest) | 158.2 | 75.2 | 64.7 | 62.4 | 75 | 54.9 | 6.6 | 37.5 | 360.5 | 174 | 164.9 |
Balance Sheet Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | 6,318.80 | ' | ' | ' | 6,187.10 | ' | ' | ' | 6,318.80 | 6,187.10 | 5,218.90 |
Goodwill | 2,341.70 | ' | ' | ' | 2,355.20 | ' | ' | ' | 2,341.70 | 2,355.20 | 2,117.30 |
Equity method investments in Affiliates | 615.8 | ' | ' | ' | 1,031.30 | ' | ' | ' | 615.8 | 1,031.30 | 1,123.30 |
Institutional [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statements of Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 948.7 | 861.3 | 841.4 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation, intangible amortization and impairments | ' | ' | ' | ' | ' | ' | ' | ' | 82.3 | 75.4 | 76.9 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 620.5 | 554.2 | 524.9 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 702.8 | 629.6 | 601.8 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 245.9 | 231.7 | 239.6 |
Income from equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | 263.9 | 103.9 | 57.2 |
Other non-operating (income) and expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment and other (income) loss | ' | ' | ' | ' | ' | ' | ' | ' | -23.9 | -13.6 | -6.9 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 51 | 50.7 | 39.7 |
Imputed interest and contingent payment arrangements | ' | ' | ' | ' | ' | ' | ' | ' | 8.9 | -8.1 | 15.1 |
Total non-operating (income) and expenses | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 29 | 47.9 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 473.8 | 306.6 | 248.9 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 117.5 | 63.7 | 53.4 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 356.3 | 242.9 | 195.5 |
Net income (non-controlling interests) | ' | ' | ' | ' | ' | ' | ' | ' | -136.4 | -116.9 | -105.3 |
Net income (controlling interest) | ' | ' | ' | ' | ' | ' | ' | ' | 219.9 | 126 | 90.2 |
Balance Sheet Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | 3,196.50 | ' | ' | ' | 3,176.50 | ' | ' | ' | 3,196.50 | 3,176.50 | 2,836.20 |
Goodwill | 1,076.30 | ' | ' | ' | 1,078.50 | ' | ' | ' | 1,076.30 | 1,078.50 | 1,071.40 |
Equity method investments in Affiliates | 490.6 | ' | ' | ' | 879.6 | ' | ' | ' | 490.6 | 879.6 | 942.6 |
Mutual Fund [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statements of Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,023 | 774.4 | 723.7 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation, intangible amortization and impairments | ' | ' | ' | ' | ' | ' | ' | ' | 47.4 | 128.9 | 28 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 661.2 | 526.5 | 492.4 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 708.6 | 655.4 | 520.4 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 314.4 | 119 | 203.3 |
Income from equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | 16.6 | 12.7 | 7.9 |
Other non-operating (income) and expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment and other (income) loss | ' | ' | ' | ' | ' | ' | ' | ' | -15.3 | -6.6 | 0.6 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 27.7 | 24 | 27.7 |
Imputed interest and contingent payment arrangements | ' | ' | ' | ' | ' | ' | ' | ' | 20.8 | -19.5 | 9.9 |
Total non-operating (income) and expenses | ' | ' | ' | ' | ' | ' | ' | ' | 33.2 | -2.1 | 38.2 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 297.8 | 133.8 | 173 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 56.3 | 10.7 | 34.4 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 241.5 | 123.1 | 138.6 |
Net income (non-controlling interests) | ' | ' | ' | ' | ' | ' | ' | ' | -138.1 | -95.8 | -73.1 |
Net income (controlling interest) | ' | ' | ' | ' | ' | ' | ' | ' | 103.4 | 27.3 | 65.5 |
Balance Sheet Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | 2,448.40 | ' | ' | ' | 2,354.80 | ' | ' | ' | 2,448.40 | 2,354.80 | 1,920.60 |
Goodwill | 928.1 | ' | ' | ' | 939.5 | ' | ' | ' | 928.1 | 939.5 | 785 |
Equity method investments in Affiliates | 75.6 | ' | ' | ' | 81.2 | ' | ' | ' | 75.6 | 81.2 | 77.7 |
High Net Worth [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statements of Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 217.1 | 169.8 | 139.7 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation, intangible amortization and impairments | ' | ' | ' | ' | ' | ' | ' | ' | 12.5 | 9.8 | 7.8 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 130.8 | 110.3 | 88.7 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 143.3 | 120.1 | 96.5 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 73.8 | 49.7 | 43.2 |
Income from equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | 27.3 | 13.1 | 7.6 |
Other non-operating (income) and expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment and other (income) loss | ' | ' | ' | ' | ' | ' | ' | ' | -1.6 | -1.8 | 11.3 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 8.6 | 8.3 | 6.4 |
Imputed interest and contingent payment arrangements | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 1.5 | 2.3 |
Total non-operating (income) and expenses | ' | ' | ' | ' | ' | ' | ' | ' | 9 | 8 | 20 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 92.1 | 54.8 | 30.8 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 20.3 | 9.4 | 5.3 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 71.8 | 45.4 | 25.5 |
Net income (non-controlling interests) | ' | ' | ' | ' | ' | ' | ' | ' | -34.6 | -24.7 | -16.3 |
Net income (controlling interest) | ' | ' | ' | ' | ' | ' | ' | ' | 37.2 | 20.7 | 9.2 |
Balance Sheet Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | 673.9 | ' | ' | ' | 655.8 | ' | ' | ' | 673.9 | 655.8 | 462.1 |
Goodwill | 337.3 | ' | ' | ' | 337.2 | ' | ' | ' | 337.3 | 337.2 | 260.9 |
Equity method investments in Affiliates | $49.60 | ' | ' | ' | $70.50 | ' | ' | ' | $49.60 | $70.50 | $103 |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Income Tax Valuation Allowance [Member] | ' | ' | ' | |||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | ' | ' | ' | |||
Balance Beginning of Period | $21.30 | $35.60 | $38.40 | |||
Additions Charged to Costs and Expenses | 16.9 | 0 | 0 | |||
Additions Charged to Other Accounts | 0 | 0 | 0 | |||
Deductions | 1.6 | 14.3 | 2.8 | |||
Balance End of Period | 36.6 | 21.3 | 35.6 | |||
Other Allowances [Member] | ' | ' | ' | |||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | ' | ' | ' | |||
Balance Beginning of Period | 8.4 | [1] | 9.6 | [1] | 8.5 | [1] |
Additions Charged to Costs and Expenses | 2.8 | [1] | 0.1 | [1] | 1.2 | [1] |
Additions Charged to Other Accounts | 0 | [1] | 0 | [1] | 0 | [1] |
Deductions | 2.4 | [1] | 1.3 | [1] | 0.1 | [1] |
Balance End of Period | $8.80 | [1] | $8.40 | [1] | $9.60 | [1] |
[1] | Other Allowances represents reserves on notes received in connection with transfers of our interests in certain Affiliates as well as other receivable amounts, which we consider uncollectible. |